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 DJIA 23516.26 À 81.25 0.3% NASDAQ 6714.94 g 0.02% STOXX 600 394.94 g 0.5% 10-YR. TREAS. À 9/32 , yield 2.347% OIL $54.54 À $0.24 GOLD $1,274.90 À $0.80 Republicans propose collapsing seven tax brackets into four brackets, with new rates and thresholds for where higher marginal tax rates kick in. Unmarried Individuals Business & Finance CURRENT 2017 rump nominated Powell to become the Fed’s 16th chairman. The nominee is viewed as likely to be a consensus-driven leader. A1, A7 T PROPOSED 2018 CURRENT 2017 39.6% 39.6% Over $418,400 Over $500,000 35% PROPOSED 2018 35% 35% Up to $1 million 33% $416,700 $416,700 28% 28% $191,650 $233,350 25% 25% 25% 25% Up to $200,000 $91,900 Venezuela’s leader said the nation will seek a debt restructuring, raising the prospect of a showdown with creditors. B1 Over $1 million $470,700 Up to $500,000 33% 39.6% 39.6% Over $470,700 35% $418,400 Apple delivered its best quarterly growth in two years, with strong sales in all of its key products and a rebound in the China market. B1 T-Mobile and Sprint are working to salvage a potential merger, days after talks appeared to be called off. B1 Married, Filing Jointly Circle size = income threshold The Justice Department is preparing for a potential lawsuit to block AT&T’s deal for Time Warner if the sides can’t reach an agreement. A1 Up to $260,000 $153,100 15% 15% $37,950 $75,900 12% 12% Up to $45,000 10% Up to $9,325 Up to $90,000 10% Up to $18,650 BY RICHARD RUBIN YEN 114.08 Heirs,SomeFamilies AreWinnersinPlan Corporate income-tax rates for selected countries Key provisions BY LAURA SAUNDERS 50% u Deduction for state and local income and sales taxes repealed The Bank of England raised its benchmark interest rate to 0.5% from 0.25%, the first increase in a decade. A8, B12 30 The heirs of wealthy people and business owners in low-tax states are among those most likely ANALYSIS to benefit from the tax overhaul proposed Thursday by Republicans in the House of Representatives. Many families who have children and few deductions are also expected to benefit. Who loses? Highly paid employees in high-tax states; future buyers of large homes or second homes; high-earning Shell said profit at the energy giant nearly tripled in the third quarter. B6 Global insurer AIG swung to a $1.74 billion third-quarter loss. B10 Alibaba’s profit more than doubled as the firm mined consumer data to get ads. B3 Discovery reported an accelerating decline in its channel subscribers. B5 World-Wide House Republicans unveiled details of their taxcode overhaul. The plan calls for cutting the corporate rate from 35% to 20%, compressing individual brackets and eventually repealing the estate tax. A1 Republicans cheered the bill, though fault lines quickly emerged over some of its components. A4 The GOP proposal would reduce or eliminate virtually all of the tax incentives of homeownership. A5 The Justice Department has identified more than six members of the Russian government involved in hacking the DNC’s computers. A1 Senate Republicans signaled they are in no hurry to pass legislation on legal protections for “Dreamers.” A3 An Interior Department official urged Congress to approve oil drilling in the Arctic wildlife refuge. A3 The U.S. flew two bombers on a mission near North Korea together with Japanese and South Korean jets, angering Pyongyang. A9 A Spanish prosecutor asked a court to issue an arrest warrant for the Catalan secessionist leader who fled to Belgium. A8 U.S. France Proposed rate 20% 0 2000 ’02 ’04 ’06 ’08 U.S. Mulls Charges for Russians in DNC Hack BY ARUNA VISWANATHA AND DEL QUENTIN WILBER The Justice Department has identified more than six members of the Russian government involved in hacking the Democratic National Committee’s computers and swiping sensitive information that became public during the 2016 presidential election, according to people familiar with the investigation. Prosecutors and agents have assembled evidence to charge the Russian officials and could bring a case next year, these people said. Discussions about the case are in the early stages, they said. If filed, the case would provide the clearest picture yet of the actors behind the DNC intrusion. U.S. intelligence agencies have attributed the attack to Russian intelligence services, but haven't provided detailed information about how they concluded those services were responsible, or any details about the individuals allegedly involved. The high-profile hack of the DNC’s computers played a central role in the U.S. intelligence community’s assessment in JanPlease see HACK page A2 TOMORROW ’12 ’14 ’16 u Alternative minimum tax repealed THE WALL STREET JOURNAL. BY NICK TIMIRAOS AND DAVID HARRISON WASHINGTON—There have been two kinds of Federal Reserve chairmen in recent years: commanding personalities such as Paul Volcker and Alan Greenspan, and consensusdriven leaders such as Ben Bernanke and Janet Yellen. Jerome Powell, nominated by President Donald Trump on Thursday to become the Fed’s 16th chairman, is likely to fall into the latter group, judging by his nearly 40-year career in government, law and banking. In remarks at the White House, Mr. Powell praised the leadership of Mr. Bernanke and Ms. Yellen, who he said had moved “monetary policy toward greater transparency and predictability.” Continuity in monetary and regulatory policy would be welcome in the markets, which Jerome Powell, after a nearly 40-year career in government, law and banking, is President Trump’s pick to become Fed chairman. don’t like uncertainty, and at the Fed itself, one of the world’s most powerful economic policy-making bodies. It also could please Mr. Trump, who has spoken approvingly of record stock prices and declining unemployment. Mr. Powell’s appointment could also cause friction within the Republican Party, where many rank-and-file members want to see the Fed roll back a decade of central-bank activism sparked by the financial crisis. Victims in New York’s Terror Attack Remembered A cyclist stopped Thursday at a memorial for victims of this week’s attack on a bike path in lower Manhattan. Law-enforcement officers face a growing challenge of preventing terrorist attacks carried out not with explosives or firearms, but with vehicles—a tactic that has become more widespread. A3 the innovators issue TOKYO—It’s 6 p.m. and the music playing in the Tokyo headquarters of home builder Mitsui Home Co. suddenly switches to the theme from “Rocky.” As the familiar trumpet opening plays, typing and conversations stop. The workers all rise at their desks. “I will finish up writing emails and go home at 6:20,” Greg Ip: Choice for Fed chairman is safe gamble..... A7 Bank of England raises key interest rate............................... A8 BY BRENT KENDALL AND DREW FITZGERALD ANDRES KUDACKI/ASSOCIATED PRESS i i Loud music, surprise calls signal day’s end; hiding in a show home BY GEORGE NISHIYAMA AND MEGUMI FUJIKAWA In the weeks leading up to the selection, Sen. Pat Toomey (R., Pa.) said he thought the Fed should “move in a different direction.” The president opted against offering the job to two candidates more popular with the Republican establishment—former Fed governor Kevin Warsh and Stanford University economist John Taylor—after advisers raised concerns that their past support for higher interest rates could unsettle Wall Street, according to two people familiar with the deliberations. “I would be surprised if [Mr. Powell] walked away at the end of his term with a huge stamp of reshaping the Fed,” says Charles Plosser, who as Please see FED page A6 AT&T Faces A New Test In Pursuit of Time Warner i WSJ. MAGAZINE Banks sidestep tax-plan pitfall.............................................. A4 Proposal cuts incentives to homeowners............................... A5 Trump Fed Pick: Pragmatic, Low-Key Japan, Home of Overwork, Wants Employees to Stop Newly released files from the compound where bin Laden was killed provide new insight into al Qaeda’s relationship with Iran. A9 > ’10 Note: Head of household ﬁling status retained but not shown Sources: House Ways and Means Committee and Organization for Economic Cooperation and Development (tax changes); Organization for Economic Cooperation and Development (world rates) House Democrats filed a lawsuit seeking to force the administration to release records from Trump’s signature Washington, D.C., hotel. A3 Opinion.............. A13-15 Sports........................ A12 Streetwise................. B1 Technology............... B4 U.S. News............. A2-7 Weather.................. A10 World News....... A8-9 u Mortgage interest deduction limited Japan u Personal exemptions repealed U.K. Germany u Estate tax reduced, then repealed in 2024 20 10 u Property tax deduction capped home sellers; people who take medical deductions; and future alimony payers, among others. The plan fills in crucial blanks missing from earlier proposals, such as brackets and rates. The top rate would remain 39.6%, although the threshold rises to $1 million for married couples from $470,700 now. The bottom rate would Please see RATES page A5 DREW ANGERER/GETTY IMAGES The Dow rebounded from an early fall to close up 81.25 points at 23516.26, as investors weighed the tax plan. B11 40 tions individuals take for state and local tax payments and mortgage interest and the ones businesses get for the interest they pay on debt. The proposal also repeals personal exemptions, which filers take based on family size to reduce their taxable income. That combination creates winners and losers, and people and businesses whose tax bills might rise began mobilizing to block or alter the bill. Many House Republicans rallied around the plan, but it also ran into immediate opposition and skepticism, including wariness from some usual GOP allies. The National Federation of Independent Business, the influPlease see TAXES page A4 WASHINGTON—House Republicans unveiled the details of the biggest transformation of the U.S. tax code in more than 30 years, calling for deep cuts in business-tax rates and starting a race to pass the complex legislation by year’s end. The plan calls for chopping the corporate tax rate to 20% from 35%, compressing individual income-tax brackets, and eventually repealing the estate tax. The bill’s ambitions—along with the slim Republican margins in the House and Senate— could also be what stop it. To partly offset that lost revenue from rate cuts, Republicans plan to curtail the deduc- Mercer is resigning as co-CEO of Renaissance. The hedge-fund billionaire gained attention outside Wall Street for backing Trump. B10 s Copyright 2017 Dow Jones & Company. All Rights Reserved EURO $1.1658 House GOP Readies for Tax Battle What’s News CONTENTS Business News.. B3,6 Crossword.............. A10 Heard on Street. B12 Life & Arts....... A10-11 Mansion.............. M1-12 Markets............. B11-12 HHHH $4.00 WSJ.com FRIDAY, NOVEMBER 3, 2017 ~ VOL. CCLXX NO. 106 * * * * * a woman declares. “I will work on internship admissions and then leave at 6:30,” a male colleague says. Around the room, employees take turns in a formal closing ceremony meant to cut overtime and raise productivity. The company is hoping that the up-tempo music will encourage workers to “go into higher gear” and get the job done, said company spokesman Nobumasa Tanaka. In a country where dedication to the job was once unquestioned dogma—Japan created its own word, karoshi, for “death by overwork”—executives are now obsessed with stopping workers from working too long. At Daiwa House, a rival to Mitsui Home, the company installed software in workers’ computers so that when they were logged on for too long, Please see WORK page A6 WASHINGTON—AT&T Inc.’s planned acquisition of Time Warner Inc. faces an emerging challenge as the Justice Department is laying the groundwork for a potential lawsuit challenging the $85 billion merger. The department’s antitrust division is preparing for litigation in case it decides to sue to block the deal, these people said. Simultaneously, the department and the companies are discussing possible settlement terms that would lead to the deal winning government approval with conditions attached. The two sides, however, aren’t close to an agreement, the people said. The outcome could go either way, and the timing of any decision remains uncertain, the people said. The ongoing review has been the subject of intense political interest because Mr. Trump, even as he touted a pro-business agenda last year Please see DEAL page A2 T-Mobile, Sprint revive merger talks................................ B1 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 | Friday, November 3, 2017 * * THE WALL STREET JOURNAL. U.S. NEWS BY WILLIAM MAULDIN Nebraska cattle rancher Craig Uden is taking President Donald Trump at his word. Mr. Trump’s threat to withdraw from the North American Free Trade Agreement strikes some as tough talk aimed at winning concessions from Canada and Mexico. But the 56year-old Mr. Uden, who heads the National Cattlemen’s Beef Association, has decided to freeze his own cow herd at 1,500 head. A Nafta breakup and tariffs that could follow, he said, could curtail Mexico’s demand for American beef, valued at around $700 million a year—in part because Mexican consumers like cuts, such as oxtail and tripe, that Americans generally pass up. Mr. Uden’s caution underscores a new reality: Nobody with business interests that span North American borders can afford to ignore the possibility of an end to the 23-year-old agreement, under which $1 trillion in goods flows across U.S. borders each year. The U.S., Canada and Mexico are set to resume Nafta renegotiations, instigated by Mr. Trump, on Nov. 17 in Mexico City with the goal of wrapping up by March. The most contentious issues include the Trump administration’s proposals to add a “sunset provision” that would force Nafta’s expiration in five years unless all three countries act to renew it, to weaken the pact’s dispute-resolution system, and to require even higher levels of North American or U.S.-specific content in vehicles and car parts traded duty-free in the bloc. Should the U.S. fail to achieve these goals, which trade and business groups see as extreme, the U.S. has said it may withdraw from the treaty. In recent weeks, as the Trump administration’s efforts to renegotiate Nafta have grown contentious, concerns of a withdrawal have clouded the outlook for a range of businesses, including Midwest farms, Detroit auto makers, vegetable importers and more. The Trump administration defends its approach by saying the pact has hurt American workers and that its proposals—which would weaken key elements of Nafta—have wide support from U.S. workers and domestically focused businesses. Asked about the withdrawal warnings, Commerce Secretary Wilbur Ross said in New York last week that Mr. Trump is “not a bluffer.” Yet some businesses say it is too early to change their plans. Railway operator Kan- BRYAN WOOLSTON/REUTERS Trump’s Nafta Threat Jars Business Plans A Ford plant in Louisville, Ky., above. Nafta’s collapse or reshaping could result in billions in auto tariffs. sas City Southern, which is heavily reliant on U.S. corn exports, is proceeding with efforts to diversify with construction of a new oil-products terminal in Mexico. Kansas City Southern Chief Executive Patrick J. Ottensmeyer said his customers aren’t ready to alter their plans just yet, but he is warning investors that some freight customers likely are rethinking their Nafta-related investments. “What about investment decisions that were thought about and talked about behind closed doors that were never public? Have some of those been delayed? My sense is yes,” Mr. Ottensmeyer said. Some businesses, after 23 years of investing in supply chains predicated on Nafta’s low tariffs, would have diffi- Continued from Page One uary that “Russian President Vladimir Putin ordered an influence campaign in 2016 aimed at the U.S. presidential election.” Mr. Putin and the Russian government have denied meddling in the U.S. election. Thousands of the DNC’s emails and other data, as well as emails from the personal account of John Podesta, who served as campaign chairman to 2016 Democratic presidential nominee Hillary Clinton, were made public by WikiLeaks last year. The pinpointing of particular Russian military and intelligence hackers highlights the exhaustive nature of the government’s probe. It also suggests the eagerness of some federal prosecutors and Federal Bureau of Investigation agents to file charges against those responsible, even if the result is naming the alleged perpetrators publicly and making it difficult for them to travel, rather than incarcerating them. Arresting Russian operatives is highly unlikely, people familiar with the probe said. People familiar with the investigation drew the parallel to the Justice Department’s decision in March to charge two Russian operatives and two others with hacking into Yahoo’s computers starting in 2014 and pilfering information about 500 million accounts, one of the largest data breaches in U.S. history. One of the defendants in the Yahoo case, a Canadian national, was arrested and has DEAL Continued from Page One on the presidential-campaign trail, said AT&T shouldn’t be allowed to buy Time Warner because it would give too much power to one company. In addition, the review is being overseen by Mr. Trump’s pick to lead the antitrust division, Makan Delrahim, who was confirmed by the Senate in September after Mr. Trump nominated him in April. Most outside observers have believed the deal was likely headed for government approval. The recent developments aren’t necessarily an indication the deal is in trouble, but they do suggest more regulatory uncertainty for the companies than many analysts anticipated. Shares of Time Warner fell 3.75% Thursday to $94.70. AT&T’s shares were down 1.13% at $33.17 after spiking as high as $33.98 immediately after The Wall Street Journal reported a lawsuit was being considered. “When the DOJ reviews any transaction, it is common and expected for both sides to prepare for all possible scenarios,” an AT&T spokesman J. SCOTT APPLEWHITE/ASSOCIATED PRESS HACK Emails from John Podesta, who served as campaign chairman to 2016 Democratic presidential nominee Hillary Clinton, were hacked. pleaded not guilty; the other defendants are believed to be in Russia. Last December, the Democratic administration of thenPresident Barack Obama imposed sanctions on Russia’s military-intelligence agency, which uses the acronym GRU, and Russia’s Federal Security Service, the successor agency to Russia’s KGB, in response to the DNC and other hacks. It also named several individuals, including one who was later charged in the Yahoo case. Federal prosecutors and federal agents working in Washington, Pittsburgh, San Francisco and Philadelphia have been collaborating on the DNC probe. The inquiry is being conducted separately from Special Counsel Robert Mueller’s investigation of alleged Russian meddling in the 2016 election and any possible collusion by President Donald Trump’s associates. Mr. Trump, a Republican, has said. “For over 40 years, vertical mergers like this one have always been approved because they benefit consumers without removing any competitors from the market. While we won’t comment on our discussions with DOJ, we see no reason in the law or the facts why this transaction should be an exception.” A Time Warner spokesman declined to comment. AT&T executives have continued to say the deal is on track to close by the end of the year, with financing lined up and all government authorities on board except for the Justice Department. A department spokesman declined to comment. It is common during major government merger investigations for antitrust officials to work on two tracks: One prepares for litigation, and another works toward a settlement allowing the merger. The antitrust division in recent years has placed renewed emphasis on being ready for a lawsuit in case settlement talks break down. If the Justice Department were to sue to block the deal, that wouldn’t be the end of the matter—unless the companies abandoned their plans. The department would have to denied that he or his campaign colluded with Moscow. Mr. Mueller’s investigation resulted this week in moneylaundering and tax-related charges against Paul Manafort, former chairman of Mr. Trump’s campaign, and Richard Gates, Mr. Manafort’s business associate who also worked on the campaign. George Papadopoulos, who served as a foreign-policy adviser on Mr. Trump’s campaign, pleaded guilty last month to lying to FBI agents about his dealings with Russian go-betweens during the campaign. Messrs. Manafort and Gates pleaded not guilty. A Justice Department spokesman and an FBI spokeswoman declined to comment on the identification of the Russian government officials allegedly behind the DNC hack. The Russian Embassy didn’t respond to a request for comment. Mr. Trump has cast doubts Divergent Share performance since the deal was announced 25% 20 15 Time Warner 10 $94.70 s14% 5 0 –5 –10 AT&T $33.17 t14% –15 2016 2017 Source: FactSet THE WALL STREET JOURNAL. present its case to a judge and prove the deal would likely harm competition. The department has spent a year investigating whether allowing AT&T to buy Time Warner would hurt competition in the media and telecommunications businesses. The deal would merge AT&T’s communications infrastructure, including its cable service and DirecTV, with Time Warner’s media portfolio, including channels such as CNN, TBS and HBO as well as the Warner Bros. studios. The company argues the on Russia’s role in the hack. In a series of tweets this past June, the president called the idea that Russia hacked the DNC a “big Dem HOAX.” He added that it was “a big Dem scam and excuse for losing the election!” High-ranking U.S. intelligence and law-enforcement officials have consistently stood by the intelligence community’s January assessment. In that document, the intelligence community said GRU, “probably began cyber operations aimed at the U.S. election by March 2016.” It said the GRU had exfiltrated “large volumes of data” from the DNC by May. In a statement, the DNC said: “It is irrefutable that Russia hacked the DNC and interfered in our election to help elect President Trump. The Kremlin must be held accountable for its attack on our country.” The Justice Department and FBI investigation into the DNC hack had been under way for nearly a year, by prosecutors and agents with cyber expertise, before Mr. Mueller was appointed in May. Rather than take over the relatively technical cyber investigation, Mr. Mueller and the Justice Department agreed that it would be better for the original prosecutors and agents to retain that aspect of the case, the people familiar with the Justice Department-FBI probe said. It is unclear if prosecutors will hold back filing charges until Mr. Mueller completes his investigation or wait to identify others who may have played a role in the DNC hack. Investigators believe dozens of others may have played a role in the cyberattack, the people said. deal would help consumers by making film and TV more affordable. AT&T points to its current moves to lower prices for video content TV programmers are among those who voice concern about the deal, arguing that AT&T’s reach—more than 90 million wireless customers and 20 million satellite subscribers—if added to control some of the most sought-after programming, would greatly disadvantage rival media. Some consumer advocates argue that giving AT&T that much control over both content and its distribution could lead to higher prices and fewer options for viewers. Because he was only confirmed in September, Mr. Delrahim had been left on the sidelines while other antitrust staffers scrutinized the AT&T—Time Warner transaction. Now he is involved in the deliberations, people familiar with the matter said. AT&T officials have met with Justice Department officials in recent weeks, and the department separately has been talking to third parties who are concerned about the deal, such as some rival content providers, according to people familiar with the discussions. culty reshaping their operations should the U.S. withdraw. Auto makers, the parts producers who supply them and the dealers who sell their vehicles would bear the cost of $10 billion in tariffs should Nafta collapse, or the Trump administration succeeds in inserting new provisions to penalize vehicles with foreign content, according to auto-industry estimates. Some recent moves among car makers would mitigate these risks. General Motors Co., whose Arlington, Texas, plant relies heavily on Mexican parts, in June announced it would build a supplier park near the main plant where it assembles Cadillac Escalades, Chevrolet Suburbans and other large sport-utility vehicles. In agriculture, Mexico is looking to buy wheat from Argentina and limit dependence on grain from U.S. Midwestern states. Meantime, U.S. produce importers who agree to sell avocados and tomatoes to U.S. food-service companies up to a year in advance are writing new contingency clauses into contracts that allow them to avoid delivery if Nafta is altered or canceled, according to Lance Jungmeyer, president of the Fresh Produce Association of the Americas. “Everybody’s watching trade very, very closely,” said Mr. Uden, the Nebraska rancher. “If trade gets disrupted, there’s going to be a drop in price, and everybody liquidates their cows.” —Dudley Althaus in Mexico City contributed to this article. U.S. financial firms seek Nafta data rule......................... B2 U.S. WATCH CALIFORNIA IRS Utility Pressed on Liability in Wildfires Record Number Renounce Citizenship PG&E Corp. had few answers Thursday as analysts pressed the utility to address its potential liability in the wildfires that killed more than 40 people in California last month. State fire officials and utility regulators are investigating the cause of the wildfires, including whether some were sparked by power lines maintained by PG&E arm Pacific Gas & Electric Co., California’s largest investorowned utility. Chief Executive Geisha Williams pushed back at analysts seeking to pin down how the utility would respond if its equipment was found to have caused some of the more than a dozen fires, and what that might mean for the company and its investors. —Erin Ailworth The U.S. is on pace to see a record number of Americans shed their citizenship for the fifth year in a row, as the Internal Revenue Service expands its reach overseas. More than 4,400 Americans renounced their citizenship in the first three quarters of 2017, according to an IRS report. The consecutive records follow a 2010 law that requires foreign banks to report their U.S. account holders to the IRS. If Americans continue to forfeit their citizenship at their current pace, the total for 2017 will set another one, surpassing the 5,411 expatriations in 2016 by about 500, a 10% increase. The U.S. taxes the assets and income of its citizens, wherever they are. —Joe Palazzolo RUSSIA PROBE COLORADO Manafort Trial Could Start in April Suspect Arrested in Wal-Mart Shooting Paul Manafort, President Donald Trump’s former campaign chairman, may go to trial as early as April on money-laundering and conspiracy charges stemming from accusations that he and an associate failed to pay taxes on millions of dollars they earned overseas. During a brief hearing Thursday at U.S. District Court in Washington, Mr. Manafort’s lawyer, Kevin Downing, proposed an April trial date, and Judge Amy Jackson signaled the trial could start around that time. She also set a hearing for Monday to reevaluate the conditions under which Mr. Manafort and business associate Richard Gates Jr. were released pending trial. During their arraignment Monday, a magistrate judge set unsecured bonds for Mr. Manafort and Mr. Gates at $10 million and $5 million, respectively, and ordered them confined to home detention. Mr. Downing and Shanlon Wu, an attorney for Mr. Gates, are seeking to loosen the restrictions. The case against Messrs. Manafort and Gates doesn’t touch on the campaign itself. Instead, it alleges a wide-ranging scheme, involving foreign companies and bank accounts in countries including Cyprus and the Seychelles, to use millions of dollars in income from Ukraine in the U.S. without reporting it. Messrs. Gates and Manafort have pleaded not guilty. —Del Quentin Wilber Police arrested a man in the Wednesday evening shooting that left three dead at a Colorado Wal-Mart. Scott Ostrem, 47 years old, allegedly walked into the Thornton, Colo., Wal-Mart and opened fire with a handgun, killing two men and one woman, police said Mr. Ostrem is accused of leaving the scene after the shooting, setting off an overnight manhunt. Police said they tracked him down early Thursday in Thornton, just north of Denver. Police don’t know what motivated the suspect to open fire or whether he knew the victims. —Zusha Elinson CORRECTIONS AMPLIFICATIONS Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. 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. 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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. Friday, November 3, 2017 | A3 * * U.S. NEWS Low-cost and deadly ISIS tactic employed in New York attack is difficult to prevent used similar methods and left scores dead. “It’s a horrible situation. We have this methodology that is becoming more widespread and not a whole lot of ways to defeat it,” said Mike Sena, director of the Northern California Regional Intelligence Center, a fusion center, which identifies threats in the region and shares information with local law enforcement. Law-enforcement experts say the low-cost, high-impact nature of such attacks make them hard to foresee and stave off. Renting vehicles takes only a driver’s license and a credit card, and securing every public space where people are walking is impossible, said Mr. Sena, who is the president of the national association for fusion centers. “You can’t cordon off all the walkways, the bike lanes, the crosswalks,” he said. Law-enforcement officials try to stop these types of attacks by encouraging rental agencies to report suspicious behavior to police, he said. False identification and documents or any overheard threats can be tipoffs. When outdoor festivities are planned in the region, the fusion center sends out alerts to local police agencies, asking if there are any reports of stolen heavy-duty vehicles that could be used as weapons, Mr. Sena said. Predicting which individuals could be preparing to rent a truck to carry out an attack is also a major challenge for law enforcement. BY ZUSHA ELINSON AND NICOLE HONG The attack in New York City on Tuesday afternoon highlights the growing law-enforcement challenge of preventing terrorist attacks carried out not with explosives or firearms, but with vehicles. Sayfullo Saipov allegedly drove a truck Tuesday afternoon into pedestrians and cyclists on a lower Manhattan bike path, killing eight people. Mr. Saipov “appears to have followed almost exactly to a T the instructions that ISIS has put out on its social-media channels,” said John Miller, the New York Police Department’s deputy commissioner for counterterrorism and intelligence. Mr. Saipov appeared in a courtroom in downtown Manhattan Wednesday after being charged with one count of providing material support to a foreign terrorist organization and one count of violence and destruction of motor vehicles. He didn’t enter a plea. The November 2016 issue of Rumiyah, an ISIS, or Islamic State, propaganda magazine, called vehicles one of the “safest and easiest weapons one could employ” to carry out a lethal attack because vehicles, unlike knives and other weapons, arouse little suspicion. Recent attacks in Barcelona; London; and Nice, France, all ANDRES KUDACKI/ASSOCIATED PRESS Use of Trucks By Terrorists Vexes Police Police stand guard at a lower Manhattan bike path where eight people were killed in a terrorist attack by a man driving a truck. Tourist Spots Act To Counter Threat Tourist destinations such as Las Vegas and New Orleans have recently taken measures to protect crowded pedestrian areas, prompted in part by vehicle attacks around the world. Work has begun to install 800 steel posts between the street and sidewalks along the Las Vegas Strip where masses of people stroll between casi- nos. The plan was approved this summer after police officials there cited the attacks around the world as well as the danger of drunken drivers. In New Orleans, the city has sought this year to improve safety for revelers along Bourbon Street with different types of barriers that block cars. “They are part of a larger effort to keep New Orleans residents and visitors safe and are designed to impede attacks similar to the one that took place Tuesday in New York City,” said Gary Scheets, a police spokesman. On Wednesday, New York lawmakers called for the installation of traffic barriers— including bollards, posts about the size of fire hydrants—to keep vehicles away from bike paths and walkways. In May, when a driver plowed into a Times Square sidewalk, killing a woman, the car was stopped by a bollard in the square. The posts likely helped prevent more deaths, analysts have said. In New York alone, hundreds of individuals are likely on the FBI’s radar for possible terrorist activity, and many of these investigations begin with social-media postings that support Islamic State or other groups, according to former law-enforcement officials. Sharing pro-ISIS posts online is generally protected by the First Amendment. Law enforcement is often forced to monitor these postings from afar, which requires signifi- cant resources and can go on for years before the individual takes steps in real life to warrant criminal charges, counterterrorism experts said. For many Islamic State sympathizers, investigators may introduce an informant or undercover agent to help prompt an arrest. Some law-enforcement offices have tried to intervene early on before an arrest is warranted, especially with children and teenagers who support ISIS on social media. The time it takes for someone to switch from social-media posts to actual violence can be quick. “You have this individual who may be radicalizing by consuming content themselves, and they may not have direct orders from terrorists overseas,” said Nate Snyder, a former counterterrorism official at the Department of Homeland Security. “It’s very hard to detect if an individual gets inspired and suddenly decides to do a DIY terrorist attack.” —Rebecca Davis O’Brien contributed to this article. GOP Won’t Include ‘Dreamers’ in Spending Bill BY LAURA MECKLER AND BYRON TAU But on Thursday, a group of Senate Republicans met on the issue with President Donald Trump and some of them emerged to say that they don’t want to include the issue in the spending bill, which lawmakers must pass to keep the government running. Rather, they suggested punting the matter into next year, giving lawmakers a tight time frame ahead of the expiration of the Obama-era program in March. This group of young immigrants is now protected by the Deferred Action for Childhood Arrivals, or DACA, program, which Mr. Trump acted in September to end, announcing a six-month wind-down period. “There was…consensus that anyone on the other side of the aisle who thinks that WASHINGTON—With the clock ticking and so-called Dreamers in limbo, Senate Republicans signaled Thursday they are in no hurry ahead of a March deadline to pass legislation giving legal protections to young immigrants brought to the U.S. illegally as children. Democrats and their allies have been laying the groundwork to try to include these protections in a year-end spending bill, a moment when their votes will be needed and they will have power to make demands. These must-pass bills are often used as a vehicle to push through contentious legislation while minimizing political fallout. they’re just going to codify DACA in the year-end appropriations bill won’t be very well received,” said Sen. Thom Tillis (R., N.C.), one of seven GOP senators in the meeting. During the meeting to dis- GOP senators suggested legislation on Dreamers could wait until next year. cuss the Dreamer issue, people familiar with the discussion say, the president pressed lawmakers on a different immigration issue: his opposition to the Diversity Visa Lottery, which awards visas to 50,000 people from countries that are underrepresented in immigration to the U.S. After the meeting, Mr. Trump called on Congress to “immediately terminate” the program. “It’s a disaster for our country,” he said. In 2010, one of the winners was a young man from Uzbekistan who authorities say went on to commit a deadly terror attack in New York this week. A White House official said Thursday that ending the lottery program has become a “priority” for the president and one legislative option would be to pair ending it with extending Dreamer legislation. Democrats have been willing to jettison the program before, as part of larger com- prehensive bills, and passions around the matter are much cooler than other Trump immigration priorities, such as his desire for a southern border wall. The program enjoys strongest support from the Congressional Black Caucus, which sees the lottery as one of the few paths to the U.S. for many people from African and Caribbean nations. Democratic leaders have been careful not to threaten a government shutdown over the Dreamers matter, but they also have signaled that they will insist on legislation protecting Dreamers this year, rather than letting the matter spill into 2018. Democratic votes will be needed to pass the spending bills necessary to keep the government open, which gives them leverage even though they are in the minority in both houses of Congress. “We’re going to do everything we can to pass the bill,” Senate Minority Leader Chuck Schumer (D., N.Y.) said Thursday when asked about the Dream Act. He didn’t offer any details about his strategy. White House officials declined to comment on Mr. Trump’s views about including Dreamer legislation in the year-end spending bill. Immigrant advocates reacted with alarm at the suggestion that Republicans might try to pass the spending bill that doesn’t protect Dreamers, seeing it as their only realistic chance for action. Interior Official Urges Arctic Drilling Democrats’ Suit Seeks Trump Hotel Records BY JIM CARLTON BY BYRON TAU JIM LO SCALZO/EPA/SHUTTERSTOCK A Trump administration official urged Congress to approve drilling in Alaska’s Arctic National Wildlife Refuge, saying Thursday that it would boost the nation’s energy independence and help the Alaskan economy. “If production is authorized by Congress, the administration believes this will bolster our nation’s energy independence and national security, provide economic opportunity for Alaskans and provide much-needed revenue to both the state of Alaska and federal government,” said Greg Sheehan, acting director of the U.S. Fish and Wildlife Service, part of the Interior Department, said in testimony on Capitol Hill. In an interview before his testimony—the first by an administration official on the Arctic refuge—Mr. Sheehan said the agency would take steps such as restricting the use of drilling pads and imposing seasonal-work shutdowns to limit the environmental impact. “Should Congress pass legislation to move forward with oil exploration in the…area, we will work to balance our nation’s real and ongoing energy needs with our commitment to preserving the beauty and diversity of this unique natural area,” he said. Alaska’s Arctic National Wildlife Refuge, with more than 19 million acres, is the largest in the U.S. The interview came ahead of his testimony before the Senate Energy and Natural Resources Committee, a panel led by Sen. Lisa Murkowski (R., Alaska), a longtime proponent of opening the refuge to oil and gas exploration. Opponents of opening the Arctic refuge to drilling said the only way to protect the refuge fully is to keep it off limits to drilling. Both the House and Senate versions of the budget bill contain pro-drilling provisions, as does President Donald Trump’s fiscal plan. The refuge was created by Congress in 1980, under an act that deferred a decision on potential oil and gas development of the 1.5-million-acre area. Environmentalists said that land on a coastal plain is important to wildlife including migrating birds, caribou and polar bears. “Opening the Arctic refuge coastal plain to oil leasing, exploration and production unacceptably threatens the Arctic refuge’s globally significant wilderness and wildlife values,” said Lois Epstein, Arctic program director for the Wilderness Society, a land-conservation group, in her testimony before Congress. Mr. Sheehan was appointed his agency’s principal deputy director in June after serving as director of the Utah Division of Wildlife Resources. In his interview with the Journal, he said only Congress has the authority to open the area, which encompasses 1.5 million of the refuge’s 19.6 million acres. He said oil and gas development in the refuge “could have some impact on the wildlife.” With the refuge believed to contain immense oil reserves, administration officials and many Republicans in Congress said drilling there could generate badly needed new revenue for both the U.S. and Alaska. WASHINGTON—A group of House Democrats filed a lawsuit seeking to force the Trump administration to release records from President Donald Trump’s signature Washington, D.C., hotel. The suit, based on a 1928 statute that enables any seven members of the House Oversight Committee to seek documents from the executive branch, was signed on Thursday by Democrats on the panel, which is charged with investigating waste, fraud and abuse in the federal government. It seeks a wide range of documents from the Trump International Hotel located in downtown Washington in the Old Post Office building, a facility leased to Mr. Trump’s company by the federal agency that manages government real-estate holdings. The documents sought include hotel profit and expense statements and correspondence within the Trump administration about the hotel. Since Mr. Trump was inaugurated in January, his critics have questioned the validity of the lease, citing a provision in it that appears to bar officeholders from profiting from a government contract. The U.S. General Services Administra- tion has upheld the lease, ruling that Mr. Trump has sufficiently distanced himself from his business interests. In the new lawsuit, 17 House Democrats cite the 1928 “Seven Member Rule,” a law that enables any seven members of the House Committee on Oversight and Government Reform to request and receive documents from the federal government. Typically, document requests from Congress are negotiated between the executive branch and Congress. Congress also can subpoena records from the administration, but that usually requires members of the majority party to sign off. Spokespersons for the White House and the GSA didn’t respond to a request to comment. Federal courts customarily try to avoid intervening in political disputes between branches of government, and have been skeptical about House members’ ability to sue the federal government in their individual capacity, preferring litigation authorized by one or both chambers of Congress. The Trump International Hotel generated about $18 million in revenue in the first four months of 2017, according to documents released by the GSA in August. 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 | Friday, November 3, 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. ** THE HOUSE GOP TAX BILL Measuring the Measure The House GOP tax bill cuts about $1.5 trillion in taxes over a decade. Revenue estimates for key provisions for a 10-year period. Cuts Corporate rate cut –$1.46 trillion Individual bracket changes –1.1 –921 billion Standard deduction increase Individual alternative minimum tax repeal –696 –640 Child and family credit expansion –448 Special rate for pass-through business –205 –172 Let U.S. companies earn future foreign proﬁt tax-free Estate tax changes, repeal Increases Repeal personal exemptions $1.6 trillion Changes to various deductions 1.3 223 billion ALEX WONG/GETTY IMAGES One-time tax on foreign proﬁts 172 Limits on corporate interest deduction 10% tax on high-proﬁt foreign subsidiaries Repeal tax credit for research into drugs for rare diseases End of deduction on FDIC premiums Rep. Paul Ryan said middle-class families ‘deserve a break,’ but some Republicans criticized the bill. Source: House Ways and Means Committee 77 54 14 THE WALL STREET JOURNAL. Measure Exposes GOP Fissures BY KRISTINA PETERSON AND SIOBHAN HUGHES WASHINGTON—Republicans cheered the unveiling of their long-awaited tax-overhaul bill, though fault lines quickly emerged over some of its components. “This plan is for the middle-class families in this country who deserve a break,” House Speaker Paul Ryan (R., Wis.) told reporters Thursday. Yet the 400-page measure also drew quick rebuffs from some of the Republicans’ reliable allies outside of Congress, including the Club for Growth and the National Federation of Independent Business, which represents small businesses. The divisions reflect some of the trade-offs GOP leaders had to make to lower the corporate tax rate and reduce income-tax rates for many households. The fissures also illustrate the Republicans’ struggle to accommodate President Donald Trump’s populist leanings as they pursue the longstanding conservative goal of rewriting the tax code. Epitomizing this battle was GOP leaders’ decision to leave the top individual income-tax rate at 39.6%, though the income threshold for the rate rose to $1 million for married couples, from $480,050. Many Republicans had hoped to lower the top rate as well, arguing that reducing it would boost job creation and the economy. “If you’re going to have tax reform, it needs to be for everybody,” said Rep. Roger Williams (R., Texas), David McIntosh, president of the Club for Growth, a conservative advocacy group, praised the bill overall, but criticized the retention of the 39.6% rate, saying it “effectively punishes success and caves to the Demo- crats’ class warfare rhetoric.” Other Republicans said they embraced the decision to leave the wealthiest Americans paying more of certain taxes so lawmakers could broaden relief for the middle class, which they hope will insulate them from some Democratic attacks. ‘If you’re going to have tax reform, it needs to be for everybody.’ “It’s awfully hard to have sympathy for someone making seven figures,” said Rep. Bill Huizenga (R., Mich.). Republicans’ effort this year to dismantle the Affordable Care Act came up short in part because Democrats painted their legislation as tax breaks for the most affluent at the expense of health-care coverage for older and poorer Americans. And Mr. Trump has made clear that he wants to deliver a middle-class tax cut, a message that has shaped how GOP leaders have pitched their bill. They also needed to find revenue to offset the cost of big tax cuts in order for the bill to clear procedural hurdles in the Senate. Democrats said they weren’t surprised by the GOP tension over the issue. “I imagine it is divisive,” House Minority Whip Steny Hoyer (D., Md.) said Thursday. “I imagine the GOP would prefer to give everybody at the very top a very large tax cut.” Other GOP divides emerged on issues critical to specific regions and industries that would see their tax breaks curbed under the House proposal. One of the biggest hurdles remains the bill’s limits on deducting state and local taxes, a blow especially to many wealthier residents of high-tax states including New York and New Jersey. Rep. Dan Donovan (R., N.Y.) said his delegation would press to retain more of the state and local tax deduction. “We’re still in the process of fighting for it,” he said. Republicans also signaled that other fights are likely to intensify over many of the decisions GOP leaders made to find enough money to pay for the tax cuts. For instance, the House GOP bill would curtail the deduction that businesses can take for interest paid on debt. And many Republicans said they would scrutinize the bill’s rules on pass-through businesses, which could leave some companies with a lower rate than others. —Richard Rubin contributed to this article. Tax Credit for Electric Vehicles Would Disappear BY MIKE SPECTOR AND JOHN D. MCKINNON The House Republican tax plan would eliminate the electric vehicle’s tax credit, a proposal that would effectively end thousands of dollars of built-in discounts for buyers and threaten to further damp sales of battery-powered automobiles in the U.S. just as car companies increase investments in them. TAXES Continued from Page One ential lobbying group for small businesses, said it couldn’t back a bill that “leaves too many small businesses behind.” The U.S. Chamber of Commerce applauded the measure but said “a lot of work remains to be done.” Manufacturers, retailers, wholesalers and conservatives largely backed the plan, while home builders and real-estate agents prepared to fight proposals that reduce benefits for homeownership. Democrats panned the bill, and some GOP lawmakers from high-tax states said they were opposed. “The special interests will distort the facts, the lobbyists will try to save their special deals, and some in the media will unfairly report on our efforts,” President Donald Trump said in a statement. “But my administration will work tirelessly to make good on our promise to the working people who built our nation and deliver historic tax cuts and reforms—the rocket fuel our economy needs to soar higher than ever before.” The Tax Cuts and Jobs Act calls for leaving the top individual tax rate at 39.6%, but pushing the income threshold for that rate to $1 million for married couples from $480,050. The House Ways and Means Committee plans to consider the bill next week with the aim of turning it into law by Christmas and having most of it take effect in 2018 and be reflected on tax returns filed in 2019. Republicans view the tax bill as essential to their political futures and their best chance for a legislative victory in Mr. Trump’s first year in office. Taken altogether it amounts to The federal income-tax credit, as high as $7,500, has served as a lure to consumers to buy electric or plug-in hybrid vehicles that are more expensive than their gasolinepowered counterparts. The electric vehicles are already in low demand because low gasoline prices are sending consumers flocking to fuel-thirsty pickup trucks and sport-utility vehicles. Many analysts believe in- centives are necessary until well into the next decade as engineers need much more time to bring battery costs more in line with conventional gasoline engines. Car companies are investing billions of dollars in electrification technologies in an effort to better meet U.S. emissions standards set through 2025. A trade association representing the electric-vehicle industry expressed “strong dis- appointment” with the House GOP’s proposal in a letter to Ways and Means Chairman Kevin Brady (R., Texas). “China and other nations are seeking dominance in electrification,” the group said. “Promoting investment in electric drive helps ensure that the U.S. does not lose its [competitiveness] in a market that we built.” Tesla Inc. has outsize exposure to any tax-credit elimina- native minimum tax, and eliminates many tax credits, deductions, and exclusions, such as breaks for moving expenses and employee achievement awards. The Corporate Code Republicans propose to chop the corporate tax rate and impose a one-time tax on U.S. companies’ stockpiled foreign proﬁts. Top rates Current Other features Business interest Current Deductible as business expense Proposed Up to 30% of cash ﬂow deductible. Special rules for real estate and small business. Capital investments Depreciable over time with bonus in ﬁrst year Immediately deductible. Expires after 5 years. Proposed 39.6% 35% 25% 20% Corporate Pass-through Domestic Special deduction manufacturing just over $300 billion in tax reductions for individuals, a $172 billion estate tax cut and about $1 trillion for businesses, a mix Republicans say will improve an archaic business tax code and put money in the pockets of households. Yet, it faces a challenging path. The tax bill already bears the marks of political compromises, in addition to budgetary contortions needed to avoid creating larger and long-lasting budget deficits. Those moves were necessary because a budget blueprint agreed upon by the Senate and the House constrains the tax overhaul to a cost of $1.5 trillion over a decade. They need to hit that target and avoid larger budget deficits beyond that to qualify for legislative rules that allow them to pass a bill by a simple majority in the Senate without votes from Democrats. They are also constrained by the party’s desire to set the corporate tax rate at 20% and make it permanent, a provision that by itself lowers revenue by $1.46 trillion over a Repealed Foreign income US companies pay foreign No taxes on active foreign proﬁts but a 10% tax on high taxes; defer US taxes. proﬁt foreign subsidiaries. Repatriation Companies pay up to 35% to bring back foreign proﬁts; foreign tax credit available. One-time tax on existing proﬁt stockpiles regardless of whether repatriated; 12% on cash; 5% on illiquid assets. THE WALL STREET JOURNAL. Source: House Ways and Means Committee decade. Mr. Trump is hoping to win over some Democrats in the Senate, but lawmakers in the opposition party largely criticized the plan Thursday. Senate Minority Leader Charles Schumer (D., N.Y.), said Democrats will focus on issues like the loss of deductions for Democrats panned the bill, and some GOP lawmakers said they were opposed. state and local taxes, medical expenses and student loan interest. “The more the public sees this bill, the less they will like it. And I think that’s the reason our Republican colleagues are rushing this bill,” he said in an interview. Republican leaders began the hard work of selling their plan, starting with a meeting of law- tion, as the company exclusively makes electric vehicles. Chief Executive Elon Musk is attempting to turn the luxury auto maker into a more mainstream manufacturer with a more affordable Model 3 car starting at about $35,000 before the tax credit. Losing the tax credit could crimp those plans and hurt sales of other Tesla vehicles. A Tesla spokeswoman declined to comment. makers Thursday morning and a White House event in the afternoon. They are soliciting reaction from business groups, particularly on complicated and novel changes to the taxation of corporate foreign income and pass-through businesses such as partnerships. Those areas contain huge potential problems and some Republicans were already asking for changes on Thursday. They intend to work quickly. The first crucible is the House Ways and Means Committee, which will begin considering the plan Monday. “We’ll be in listening mode all throughout the code,” said the bill’s author, Ways and Means Chairman Kevin Brady (R., Texas). “We are following the Reagan example here. Go bold. Listen. Make adjustments, but keep the process going forward.” The plan hits many Republican goals. It nearly doubles the standard deduction, pushes people away from itemizing their deductions, lowers business tax rates, repeals the alter- Income-Tax Rates The bill collapses the current seven individual tax brackets into four: 12%, 25%, 35% and 39.6%. The new bottom tax rate covers more income than the current 10% and 15% brackets do, meaning lower taxes for many middle-income households. Many upper-income households could face a higher marginal tax rate under the House bill, which pushes some from a 33% bracket into 35%. Political Land Mines Meanwhile, there are political land mines scattered in the plan. For example, the proposal repeals an itemized deduction for medical expenses, a crucial provision to households with extraordinary health-care costs. The bill also limits the home mortgage-interest deduction. For new home purchases, interest would be deductible only on loans up to $500,000, down from $1 million in the current tax structure. If enacted, that rule would apply retroactively to mortgages on home purchases starting Friday. Existing loans, including refinancings, would be grandfathered under the $1 million limit. Fewer Deductions The bill eliminates other deductions, including the ability of businesses to deduct certain executive compensation above $1 million, which they can now take for performance-based pay. Life insurers would lose some tax breaks. Banks Sidestep Tax-Plan Pitfall BY RACHEL LOUISE ENSIGN AND TELIS DEMOS Banks do pretty well under the tax bill unveiled Thursday: It puts them on track for big tax cuts yet lets the firms avoid some of the biggest potential downsides of the overhaul. At a 20% corporate tax rate, banks stand to be among the biggest winners from tax reform, according to S&P Global Market Intelligence. The five biggest diversified U.S. banks alone might have had tax savings of $11.5 billion in 2016 at that rate, the biggest sum for any sub-industry group tracked by S&P. That is because those big banks, such as Wells Fargo & Co., typically pay higher effective tax rates than companies that are much more profitable, such as Apple Inc. Banks in the S&P 500 pay an effective 25% rate, versus an 18% rate for information technology firms, the data provider said. Aside from the overall corporate tax rate, bank investors were also concerned with how legislators would limit the deductibility of interest costs. On the face of it, that could upend the banking model since financial firms are highly leveraged, deploying huge amounts of debt themselves to make loans or buy instruments like bonds. Given that, interest expense for banks is akin to nonfinancial companies’ cost of goods sold. The legislation proposed by the House Ways and Means Committee appears to let banks sidestep that issue, though. It does so by limiting the deductibility for companies that spend more money on interest than they take in, said Mark Roe, a professor at Harvard Law School. Banks by and large bring in far more in interest than they pay out. The upshot is that the change shouldn’t affect banks or result in them paying more for debt that ranges from deposits to long-term bonds. The bill’s clampdown on interest expense deductibility also spares some of banks’ important borrowers—commercial real-estate firms. They were excluded from the provision, a relief for banks and the companies themselves since they are already under pressure as their retail tenants get squeezed by online competitors. Tax-exempt bonds could no longer be used to build professional sports stadiums. Businesses would no longer be able to deduct entertainment expenses, though rules for business meals would remain. Multinationals Meanwhile, there are big changes in store for multinational companies. U.S. companies would, generally, no longer pay taxes on their active foreign income, a move corporations and Republicans say is important to stay competitive with companies from lower tax countries. To prevent companies from shifting profits abroad, the bill creates a new 10% tax on U.S. companies’ high-profit foreign subsidiaries, calculated on a global basis. Many companies would face a new limit on their interest deductions, which would be capped at 30% of earnings before interest, taxes, depreciation and amortization, which is a measure of cash flow. Child-Tax Credit For individuals, one potential flashpoint is an expanded child tax credit. The child credit, along with the larger 12% bracket, is crucial to limiting the number of low-income and middle-income families who see tax increases due to the bill. One reason they might still see higher bills is because the bill eliminates personal exemptions. The House bill takes the child credit from $1,000 to $1,600. The estate-tax exemption, set for $5.6 million per person and $11.2 million per married couple, would double immediately. The tax would get repealed starting in 2024. —Louise Radnofsky 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. * * * * * * Friday, November 3, 2017 | A5 THE HOUSE GOP TAX BILL Tax Plan Cuts Incentives to Homeowners House Republicans unveiled a tax bill that would reduce or eliminate virtually all of the tax incentives of homeownership, promising to reshape an industry that accounts for nearly one-sixth of the U.S. economy and drives the biggest financial transaction most Americans make in their lifetimes. By Laura Kusisto, Christina Rexrode and Chris Kirkham The legislation would cut in half the size of loans that qualify for deductions of mortgage interest, to $500,000 from $1 million. At the same time, it would nearly double the standard tax deduction, to $24,400 for married couples in 2018, ensuring that only a tiny sliver of homeowners, primarily in the priciest housing markets, will continue to itemize their returns to capture the break. The bill also appears to eliminate the mortgage interest deduction for second homes and further limits, for top earners, a break on capital gains from real-estate sales. “It’s one step removed from the worst-case scenario, and that’s a small step,” said Isaac Boltansky, director of policy research at Compass Point Research & Trading, a Washington-based investment bank. “It is basically the sum of all [the industry’s] realistic fears.” Shares of home builders and residential real-estate brokerages fell after the bill was unveiled Thursday. The S&P Homebuilders ETF ended the day down 2.5%, while shares of luxury builder Toll Brothers Inc. lost about 6% and shares of Realogy Holdings Corp., a residential brokerage company, shed about 7%. Mortgage lenders worried the bill could hurt their business and weren’t clear on how the loan refinancing market might be affected. Housing-industry groups such as the National Association of Realtors and National Association of Home Builders came out in opposition to the bill. “The corporations are getting a major tax cut, and it’s getting paid for by the equity in American homes,” said Jerry Howard, chief executive of the NAHB. The legislation “threatens home values and takes money straight from the pockets of homeowners,” said NAR President William E. Brown, a California Realtor. “Tax hikes and falling home prices are a onetwo punch that homeowners simply can’t afford.” One silver lining for the housing industry: the bill would retain a deduction for property taxes, albeit with an annual cap of $10,000, which is a blow to homeowners in high-tax states like New York and New Jersey. In all, roughly 3.7 million U.S. households paid more than $10,000 a year in property taxes in 2016, including 30.5% of owner-occupied homes in New Jersey, according to an analysis of census data by the NAHB. Even without the $500,000 cap, the mortgage interest deduction already was hobbled by a plan to increase the standard deduction. The Tax Policy Center, a nonpartisan group headed by a former Obama administration tax official, previously estimated that the blueprint released earlier this fall could reduce the share of taxpayers who claim the deduction to 4% from 21% currently. Nationally just 2.8% of mortgage loans have a balance greater than $500,000, according to CoreLogic Inc. Of the 7.7 million single-family-home mortgages made last year, 548,000—or 7%—were over $500,000, according to the trade publication Inside Mort- LUKE SHARRETT FOR THE WALL STREET JOURNAL Builders, lenders and brokers say it will harm their businesses and the middle class The housing industry says it will push back against provisions of the tax plan that could harm home sales and the mortgage business. gage Finance. Mr. Howard of the NAHB said the tax overhaul could cause a housing recession because of a potential drop in home values. States with high housing costs, including California, where more than a third of homes are valued above $500,000, would be particularly hard hit, he said. “Republicans have always claimed that they don’t want to pick winners and losers in the economy,” he said. “They are clearly picking large corporations over small businesses, and they are clearly picking wealthy Americans over the middle class.” To be sure, the $500,000 cap on the mortgage interest deduction would apply only to loans made after Nov. 2, which pro- tects existing homeowners. But experts said that is likely to exacerbate the current stagnation in the housing market. Homeowners in high-cost cities like New York, Boston, Los Angeles, San Francisco and parts of Miami are less likely to trade up to larger, more-expensive homes if they know that means losing the protection on the mortgage interest deduction, which in turn makes it difficult for younger buyers to enter the market. Mortgage lenders, meanwhile, worried the tax bill could weaken their businesses by taking away some of the incentives of homeownership. The bill also could have an impact on the refinancing market. Lenders said it appeared that the lower, $500,000 de- duction would also apply when existing mortgages were refinanced, which could discourage borrowers from refinancing even if they have a relatively high interest rate. Some lenders said the bill also appeared to curb the tax benefits of cash-out refinances by eliminating the deductibility of the portion of the mortgage that exceeds the value of the debt being rolled over. For high-income households, the bill phases out a rule in existing tax law that excludes the first $250,000 in profits from a home sale, or $500,000 for a married couple, from capital-gains taxes. The change would affect home sellers with incomes exceeding $250,000 for individuals or $500,000 for married couples. High-Dollar Homes Metro areas with the most homes valued over $500,000 and the percent of homes over that amount: San Jose, Calif. 94% 81 San Francisco 72 Los Angeles 63 San Diego 45 Seattle Boston 41 New York 37 Washington 33 Sacramento, Calif. 26 Denver 25 Source: Zillow THE WALL STREET JOURNAL. Business Splits as GOP Proposal Targets Deductions BETH J. HARPAZ/ASSOCIATED PRESS BY SHARON NUNN Industry groups for small businesses argue that the pass-through rules for lower rates were written too narrowly to help them. RATES Continued from Page One move up to 12% from 10%. The proposals outlined in the current bill could change significantly during the legislative process, but here is a rundown of changes that explains why certain groups would—and wouldn’t—benefit. Many owners of partnerships, limited-liability companies and S Corporations—who currently pay tax on income at the owner’s personal rate— would get a tax cut as a result of the Republican plan. The top tax rate on a portion of that income, known as “pass-through income,” would drop to 25% from 39.6%. The very wealthy get a tax break on their estates. The bill would double an estate-tax exemption to $10 million from $5 million per person, plus inflation adjustments. This change wouldn’t take effect until Jan. 1, 2018. Roberton Williams, an economist with the Tax Policy Center, estimates that the number of taxable estates could fall from about 5,000 a year to fewer than 2,000. The bill also ends the estate tax completely, starting in 2024. Residents of some states are hurt by the loss of deduc- tions. The plan eliminates virtually all itemized deductions other than for mortgage interest, some property taxes, and charitable gifts. It also eliminates other write-offs, such as for moving expenses and alimony for divorce decrees after 2017. The loss of the deduction for state and local income or sales taxes would hit hardest in the six states that account for half the value of these deductions: California, New York, New Jersey, Maryland, Massachusetts and Illinois, according to the Tax Foundation. The deduction for property taxes would be capped at $10,000. Six states also get more than half the value of this deduction: California, New York, New Jersey, Texas, Illinois and Florida, according to the Tax Foundation. The deduction for medical expenses would also be repealed. Medical-expense writeoffs are currently allowed only if they exceed 10% of annual income, so it is most useful to taxpayers with large unreimbursed costs—such as for a nursing home or homehealth aides. Home buyers and sellers face new restrictions. Under current law, taxpayers can deduct interest on up to $1 million mortgage debt for a first and second home. The House Republican taxreform proposal divided the business community, with small business, housing advocates and higher education lining up against the plan while manufacturing and chief executives came out in favor. The fault lines ran in part along deductions that party leaders proposed to take away to pay for the tax cuts. By raising the standard deduction and reducing loan limits for claiming mortgage-interest deductions, for example, the bill reduces the incentive of households to borrow and buy homes. “The bill eviscerates existing housing tax benefits by drastically reducing the number of homeowners who can take advantage of mortgageinterest and property-tax inFor mortgages taken out after Nov. 2, other than refinancings, interest would only be deductible on $500,000 of debt, and only for a first home. The $1 million limit would continue to apply to existing mortgages. The bill would also restrict an exemption useful to many home sellers. Under current law, sellers who have lived in a home for two of the last five years don’t owe capital-gains tax on $250,000 of profit if they are single or $500,000 for married couples. For example, if a married couple buys a home for $200,000 and sells it for $500,000, the $300,000 gain isn’t taxable. The plan requires sellers to live in a home for five of the previous eight years to get this break. It would also limit the exemption for higher-earning home sellers, reducing it by one dollar for every dollar that a couple’s income exceeds $500,000 ($250,000 for singles). Families with few deductions could be in better shape. The “standard” deduction for filers who don’t break out their deductions would roughly double, to $12,200 for single filers and $24,400 for married couples in 2018. But the exemption of about $4,000 that every person gets under the current law would be repealed. The loss of the personal exemption would be a centives,” said Granger MacDonald, chairman of the National Association of Home Builders. Realtor and real-estate groups also lined up against the bill because it could leave people living in more-expensive areas paying more for new homes. Other tax benefits currently on the chopping block, including renewable energy credits, drew sharp criticism. The American Wind Energy Association denounced the proposal because it takes away financial incentives consumers have to use renewable-energy products. Another, student-loan interest deductions, was resisted by the Association of American Universities. “The legislation, as currently proposed, will make higher education less affordable and less accessible to middle- and lowincome Americans,” said Mary Sue Coleman, Association of American Universities president. New rules for taxation of pass-through businesses, such as S corporations and partnerships, many of which are smaller enterprises, also faced opposition from groups that traditionally have tended to support Republican efforts to push down tax rates. The National Federation of Independent Business, along with other industry groups composed of smaller enterprises, argued the passthrough rules for lower rates were written too narrowly to help many small businesses. “This is a pretty serious problem for the Republican leadership in Congress—to face immediate blowback from those who are traditionally supportive of Republican tax plans,” said Vanessa Williamson, a Brookings Institution tax-policy expert. Despite widespread disagreement over the deductions and other issues, the plan to lower the corporate tax rate was applauded widely among manufacturers and the country’s largest businesses, many of which could see their tax bills shrink. 3M, the National Association of Manufacturers and the Business Roundtable, an association of chief executives, are among those who came out in support of the bill first. “Today’s release of tax-reform legislation demonstrates Congress’s commitment to boosting American jobs, American wages and American competitiveness,” said Mark A. Weinberger, a chair on the Business Roundtable. Education Benefits Face a Revamping The House Republicans’ tax plan would affect benefits for Americans who enroll in higher education, boosting a popular tax break, eliminating two others and repealing a deduction for student-loan interest. The plan also calls for taxing large endowments of private universities, which have faced criticism in recent years after a run-up in tuition. It wasn’t clear how the GOP plan would affect students on an individual basis. Overall, the plan calls for about $65 billion less in tax benefits for postsecondary students and borrowers over the next decade, according to the congressional Joint Com- mittee on Taxation. But many of those taxpayers would benefit from broader provisions of the plan, including a near-doubling of the individual standard deduction. The tax plan would increase aid available under the American Opportunity Tax Credit, or AOTC, which helps defray such higher-education costs as tuition, fees and course materials. The plan would eliminate two other credits for students, the Hope Scholarship Credit and the Lifetime Learning Credit, that cover similar expenses. The biggest effect would likely be less aid for graduate students, said Jason Delisle of the American Enterprise Institute, a conservative think tank. Grad students are the most likely to use the Lifetime Learning Credit, which provides up to $2,000 a year. The plan would also mean no more deducting from taxable income the interest paid on student loans. Currently, borrowers with a modified gross income of $65,000, or $135,000 for couples, can deduct up to $2,500 a year in student-loan interest. The GOP plan also wouldn’t renew a recently expired provision that allows taxpayers to deduct up to $4,000 a year in tuition and related expenses if they earn less than $65,000 in adjusted gross income. And it would repeal certain workplace benefits for higher education. A 1.4% excise tax on net investment income would be applied to private colleges or universities with at least 500 students and assets of at least $100,000 per full-time student. —Josh Mitchell blow, but expanded credits could turn some losers into winners. The credit for children under 17 would increase from $1,000 to $1,600 for many. And a “family flexibility credit” of $300 for each family member who isn’t a child would be in effect until 2023. Some owners of partnerships, limited-liability companies, S corporations, and sole proprietorships, stand to benefit under the new plan. Such entities currently bypass corporate taxes and pay tax on income at the owner’s personal rate, which is why they are called “pass-throughs.” These pass-through entities have surged in popularity in recent decades and now account for more than 40% of all business income. They include some large private companies as well as smaller ones like car dealerships, manufacturers, and professional-service firms. The top tax rate on a portion of pass-through income— typically 30%—would drop from 39.6% to 25%. That won’t help business owners earning less than $200,000 (singles) or $260,000 (married couples). But it would reduce the effective top tax rate for many passthrough owners earning more. “Service” providers such as doctors, lawyers or architects are generally excluded from getting the lower rate. 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 | Friday, November 3, 2017 THE WALL STREET JOURNAL. * *** CHANGE AT THE FED Continued from Page One president of the Federal Reserve Bank of Philadelphia until 2015 worked closely with Mr. Powell. “He’s not likely to lead Federal Reserve reform and innovation on monetary policy, but that does not mean he won’t be a good chair.” Unlike Ms. Yellen and Mr. Bernanke, Mr. Powell doesn’t hold a degree in economics— which would make him the first chairman since the late 1970s without such a credential. Although he has worked as an investor, lawyer and bank regulator, he has no experience leading a large organization. As a result, he might be more likely to rely on Fed economists. He also might be less dug in and more flexible than Ph.D.s on some intense economics debates, such as whether low unemployment is a precursor to rising inflation. Mr. Powell, who is known as Jay, declined to comment for this article. The Fed is no simple bureaucracy. It has a seven-member board, 12 regional banks, a secretive decision-making process and 2,700 employees involved in interest-rate decisions, bank regulation and managing the nation’s currency circulation. It also serves as the Treasury’s fiscal agent in managing the nation’s debt. It is in the process of raising short-term interest rates from near-zero levels and of gradually winding down a $4.2 trillion portfolio of mortgage and Treasury securities built up during and after the financial crisis. Mr. Powell was part of a group in 2013 that pressed Mr. Bernanke to wind down the bond-purchase programs, although he has never dissented in 44 meetings on the Fed board. Bond phase out Mr. Powell’s most notable mark on monetary policy at the Fed was his involvement in bond-buying phase out. Worried that investors believed the programs would continue indefinitely, he joined with two other Fed governors, Betsy Duke and Jeremy Stein, to persuade Mr. Bernanke to scale the program back. The effort was typical of Mr. Powell’s style—conducted almost entirely behind the scenes and with little fanfare. The initial effort was rocky. Bond investors grew frightened, sparking a selloff known in markets as the “taper tantrum.” Mr. Powell later conceded his concerns had been overblown when he declared the bond-buying programs a success, and he has said the Fed should return to such bond-buying if needed to fight future crises. Mr. Powell’s views on economic and monetary policy sync up with Ms. Yellen and Mr. Bernanke. He has supported a slightly lighter touch on financial regulation but hasn’t backed wholesale efforts Federal Reserve governor Jerome Powell, a lawyer, would be the ﬁrst Fed chief in three decades without a Ph.D. in economics if conﬁrmed by the Senate. Here’s a look at how his career and academic history compare with previous Fed chairmen. Jerome Powell Janet Yellen Ben Bernanke Alan Greenspan Paul Volcker G. William Miller Arthur Burns (nominee) (2014-18) (2006-14) (1987-2006) (1979-87) (1978-79) (1970-78) William McChesney Martin Jr. Thomas McCabe (1948-51) (1951-70) Has a Ph.D. Has an economics degree Prior career(s) Government Corporate Academic Sources: Federal Reserve History; Federal Reserve; staff reports; Photos: Bloomberg News; Reuters; Getty Images (4); Associated Press (2); Zuma Press U.S. FEDERAL RESERVE/REUTERS (LEFT); PRINCETON UNIVERSITY FED In a closed-door meeting with House Republicans in July 2011, he challenged his own party over its standoff with President Barack Obama about authorizing an increase in the national-debt ceiling. He warned Republican lawmakers about the harm that would fall on retirees, veterans and other Americans if Congress didn’t authorize an increase in government borrowing, according to two people who attended. Obama Treasury Secretary Timothy Geithner heard about his take-your-medicine stand and asked colleagues if Mr. Powell might solve another problem they were having, according to several people involved in the deliberations. The administration had been unable to get Senate Republicans to confirm its pick for a vacancy on the Fed’s sevenmember board of governors, and officials were struggling to come up with names of a Republican who might help break the impasse. Impressed after their meetings with Mr. Powell, officials in the White House recommended his nomination for the job. The Senate confirmed his nomination in 2012, and he was reappointed two years later. Many Republicans weren’t thrilled, with 20 voting against him in 2012 and 23 voting against him in 2014. Some GOP lawmakers have been ruffled by Mr. Powell’s unwillingness to publicly criticize the Fed’s regulatory agenda, which included implementing substantial provisions of the 2010 Dodd-Frank Act. That reluctance “just left some people flat,” says Rep. French Hill (R., Ark.), who remains friends with Mr. Powell after they worked together in the Bush administration during the early 1990s. Mr. Hill says he can understand why some colleagues wish Mr. Powell had been more outspoken, but adds it isn’t Mr. Powell’s style to air his concerns publicly. “It’s not fair to assume what Jay Powell said or didn’t say in private,” he says. “He kept those views to himself.” One person who has worked with several Fed officials in recent years says he often heard about petty personal rivalries or feuds between board members, but these people never had a bad word for Mr. Powell. “He is remarkably undogmatic,” says Jeremy Stein, a Harvard University economics professor, Democrat and former Fed governor whose office was adjacent to Mr. Powell’s. “He listens more than he talks.” Mr. Powell has held several different roles on a board that has been plagued with vacancies in several years. He earned respect from colleagues for tackling unheralded operational tasks and technical issues, including managing payment-processing systems. He also boosted morale this summer when he oversaw the implementation of a relaxed summer dress code. —Harriet Torry contributed to this article. Leading the Fed to dismantle overhauls implemented following the 2008 financial crisis. In testimony before lawmakers this summer, he said those rules made the financial system “substantially stronger and more stable.” “Jay is certainly not going to change course in any radical way, but he’s very smart. He will react to whatever shifts are out there,” says Glenn Hubbard, dean of the Columbia Business School and an occasional adviser to Republican presidential candidates, who has known Mr. Powell for 25 years. A Washington native, Mr. Powell, 64 years old, grew up the second of six children in suburban Chevy Chase, Md., where he still lives. His father was a lawyer; his mother worked part time for the Republican National Committee. Like his father, he attended the Georgetown Preparatory School, a Jesuit high school. His parents were active in civic and charitable causes, many centered around their church. Mr. Powell also has served on the boards of educational and environmental groups. Matthew McCormick, an economist who has worked for several federal agencies, recalls seeing Mr. Powell last year carrying a car seat and luggage for someone else’s family trying to make a tight THE WALL STREET JOURNAL. Janet Yellen, left, with Mr. Powell at his 2014 swearing in to the Fed’s board. Mr. Powell, above, in 1975, the year he graduated from Princeton. connection at Reagan National Airport in Arlington, Va. When a business-school student sought him out several years ago for career advice, Mr. Powell offered his philosophy on getting ahead: Keep your head down and work hard, according to the student, Sean Gillispie, today a software product director in the Washington area. Mr. Powell told him he would be surprised “how many otherwise competent people self-sabotage with poor behavior,” Mr. Gillispie recalls. Mr. Powell has a somewhat conventional Washington résumé. He went to Princeton University and Georgetown Law School. He worked for several years as a lawyer in New York before joining investment bank Dillon, Read & Co. In 1990, he returned to Washington to become assistant secretary for domestic finance in President George H.W. Bush’s Treasury Department, following the bank’s former chairman, Nicholas Brady, who was Treasury secretary. He later was promoted to undersecretary for domestic finance, charged with untangling a wave of bank failures. One Sunday morning in January 1991, Mr. Powell joined other regulators in a conference room to hash out how to deal with the collapse of the Bank of New England, at the time one of the region’s largest banks. To prevent a bank run, the group decided to guarantee all deposits, no matter how large they were, Mr. Powell recalled in a 2013 speech. Later that year, Mr. Powell helmed the government’s response to the Treasury auction bid-rigging scandal by Salomon Brothers, a major investment bank. Mr. Powell ironed out an agreement that im- His most notable mark on policy was his role in bondbuying phase out. posed severe penalties against the bank, which had admitted making unauthorized bids, without forcing it into bankruptcy, and arranged for investor Warren Buffett to become the firm’s chairman. “It was a very ticklish, tricky thing, and it was exceptionally well handled at the end,” says John Dugan, who served under Mr. Powell at Treasury. The episodes of the early 1990s, which showed Mr. Powell to be relatively pragmatic, shaped his regulatory world- view, says Mr. Dugan. “He understands there’s a role for regulation, and he’s not at one extreme or the other,” says Mr. Dugan, who was U.S. comptroller of the currency from 2005 to 2010. Lucrative work After Mr. Bush left office, Mr. Powell returned to banking in New York. In 1997, he moved back to Washington and joined the Carlyle Group, a privateequity investment firm, where he founded and led the firm’s industrial group within its U.S. buyout fund. It was lucrative work. In financial disclosures earlier this year, Mr. Powell, who drives a Tesla, reported assets worth between $19.7 million and $55 million. After nearly two decades in the private sector, colleagues say, Mr. Powell was eager to return to public service but wasn’t sure how or where to make his mark. He went to work at the centrist Bipartisan Policy Center, where he didn’t draw a salary. “This was getting his feet back into the water and figuring out where he wanted to get engaged,” says Shai Akabas, an economist at the center who worked closely with Mr. Powell. He landed at the Fed almost by accident. WORK Continued from Page One they saw a picture of the CEO warning them to cut it out. After that, the software locked the computer. Despite a 9 p.m. curfew, Daiwa House found diligent scofflaws hanging around, said Moritaka Nohmura, a company executive. Some stayed in the office and didn’t answer calls to the switchboard number, hoping to avoid detection. Others hid out and worked in the model houses built to show to customers. Managers initiated “Operation SC” for “surprise call.” They called the direct office numbers of employees and the model homes, ordering whoever answered to leave. Japan is turning into a laboratory for an experiment into whether a nation can get more output with fewer people working fewer hours. Up until now, its legendary work ethic hasn’t helped the economy much. Japan barely grew for most of the past quarter-century, and the average worker is only two-thirds as productive as the average American, a gap that has stayed persistently wide. Just as important, the sup- ply of people willing and able to work until they drop is drying up. With its population shrinking, Japan has had to turn more to mothers of young children, the elderly and some foreigners to fill labor gaps. “There’s already a shortage of workers,” said Mr. Nohmura, the Daiwa House executive. “The survival of our company is at stake.” Prime Minister Shinzo Abe has made “work-style reform” a pillar of his ruling party’s platform. He says companies need to reorganize their workplaces so employees can be more productive during the day and go home at night. He is trying to boost day-care slots by 500,000 by the end of this fiscal year to get more women working. Already the growing number of working women has helped the economy reach its longest growth streak in more than a decade. The direction is clear. But companies are finding it takes a lot of hard work to prevent hard work. Still widespread is the idea embedded in a popular TV commercial for an energy drink from the late 1980s: “Can you fight 24 hours, Japanese businessmen?” Takaaki Nishii, the chief executive of Ajinomoto Co., the company that invented SHIHO FUKADA FOR THE WALL STREET JOURNAL FROM PAGE ONE Tomonori Tsukahara, a Mitsui Home employee, and his wife, Haruna, have dinner. monosodium glutamate in 1908, often found himself sitting through three-hour meetings where some 80 managers would gather to hear each other deliver scripted remarks. “There are a lot of meaningless meetings,” he said. “Meetings should be where discussions are held to make decisions, not just to listen to people reading out reports.” The company reduced the standard workday by 20 minutes, to seven hours and 15 minutes, and told staff to go home at 4:30 p.m. “Performance hasn’t fallen,” says Mr. Nishii. Yuusuke Suzuki, a 40-yearold Ajinomoto salesman, says he now has more time to look after his two boys. “I used to eat dinner at home only a day or two during week, and the rest alone or with clients. But that has completely reversed.” One benefit, Mr. Nishii says, is keeping more women at the company. He used to think the company’s programs for maternity leave and reduced hours for working mothers were enough. However, he says, “many women said they would rather resign than put additional burden on their colleagues by leaving early. So that’s why we decided to have everyone leave early.” At Mitsui Home, the Rocky theme at 6 p.m. is just part of an all-day efficiency push. The company puts on different tunes at 9 a.m., noon and 3 p.m. “So they will know that, for instance, they have another three hours left when they hear the music at 3 p.m.,” said Makoto Machiyama, a manager in the personnel department. One employee in that department, Tomonori Tsukahara, 32, says he used to work until 9 p.m. or 10 p.m. but now tries to leave shortly after the Rocky music so he can help his wife, who just had their first baby. “When the baby gets fussy, he holds her for me and also helps me bathe her,” said his wife, Haruna, describing behavior that would have been alien to many a corporate warrior of previous generations. Fixing Japan’s problem in the workplace might be disrupting its family life, especially when husbands come home early. “My friends say they don’t need their husbands at home because they hardly do any housework,” says Megumi Kitagaito, a homemaker with two boys. Her husband, Keiichi Kitagaito, a real-estate businessman, doesn’t disagree. “I know that for women, having husbands at home is bothersome,” he says. He is already working long hours and he won’t change. “I cannot live the way Abe expects,” Mr. Kitagaito 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. Friday, November 3, 2017 | A7 * * * * CHANGE AT THE FED CAPITAL ACCOUNT | By Greg Ip Choice for Fed Chairman Is a Safe Gamble President Donald Trump’s selection of Federal Reserve governor Jerome Powell to succeed Janet Yellen as chairman of the central bank is something of a gamble. Unemployment is at a 16year low, economic growth is picking up, the stock market is setting records, and yet he’s changing leaders at the institution most responsible for all of that. As gambles go, it looks like a safe one. Of all the candidates Mr. Trump considered after deciding not to keep on Ms. Yellen, Mr. Powell’s temperament and views come closest to hers. He believes the Fed should use all available tools to get unemployment down and keep inflation at its target of 2%. He backs the regulatory framework put in place under President Barack Obama, albeit with less strict implementation. C ANDREW HARRER/BLOOMBERG NEWS M r. Powell’s job will be turning those beliefs into effective policy. Heading the Fed’s policy committee is harder than being a member: It means not just voting but deciding what will be voted on. If confirmed by the Senate, as is likely, he will at some point face second guessing from colleagues, Congress and perhaps the mercurial man who picked him. Mr. Powell, a lawyer and banker, would be the first Fed chair in three decades without a Ph.D. in economics. He served at the Treasury under George H.W. Bush, pursued a career in investment banking that a monetary policy that succeeds at getting inflation back up may also stoke an asset bubble whose ultimate demise brings on a recession. Another challenge is to establish his own leadership. From 1979 to 2006 Paul Volcker and Alan Greenspan enjoyed the reflexive deference of most of their colleagues. That deference ended with the financial crisis. Finally, he faces a treacherous political landscape. Monetary policy is no longer nonpartisan. Republicans regularly disparaged Mr. Bernanke and Ms. Yellen and many think Mr. Powell isn’t much better. Jerome Powell, above at the White House on Thursday, stands to become the first Fed chair in three decades without an economics Ph.D. and private equity, then landed at the Bipartisan Policy Center, a think tank. Mr. Obama, whose staff appreciated Mr. Powell’s work explaining to Republicans in Congress the dangers of not raising the debt ceiling, made him a Fed governor in 2012. Having served with two accomplished professors of macroeconomics—Ms. Yellen and her predecessor, Ben Bernanke—he has ended up seeing the world as they do. In a 2015 interview, he was asked if the Fed’s unconventional monetary stimulus was actually holding back growth. He answered, “I don’t understand what model of the economy would require substantially higher interest rates right now, which would mean a vastly higher dollar, higher mortgage costs and higher costs for consumers, and probably lower asset prices.” Asked if the Fed’s low interest rates had encouraged Congress to run up more debt, he noted its mandate is full employment and price stability. “We’re not supposed to sacrifice those two goals [to] punish Congress for not doing the right fiscal policy,” he said. To a modern central banker those views are unremarkable, yet they aren’t shared by two competing candidates to succeed Ms. Yellen, former Fed governor Kevin Warsh and Stanford Univer- sity economist John Taylor. Nonetheless, Mr. Powell will face challenges that vex even trained economists. The first is the same one Ms. Yellen is now struggling with: deciding how far to raise interest rates when the economy has no slack but inflation is falling further below the central bank’s 2% target. Another front is the upward march of stock and property prices. More than Ms. Yellen, Mr. Powell worries entral banks embody the technocratic expertise that many of Mr. Trump’s populist supporters despise. Having discarded the tradition that presidents reappoint the incumbent Fed chairman regardless of party, Mr. Trump may also discard the practice of keeping criticism of the Fed to himself. Past Fed chiefs have needed political skills to head off threats to their leadership and the central bank. On that, Mr. Powell is untested. Mr. Trump faces pressure to nominate conservative skeptics of the Fed’s easy-money policies to fill its board vacancies, which would narrow Mr. Powell’s room to maneuver from the start. Ms. Yellen could be an ally of Mr. Powell’s on that front. Though her term as chairwoman ends in February, she could stay on as a governor until that term ends in 2024. In December, she said that would be a “a decision for another day.” A Usually Staid Process Was Infused With Suspense As he cast about for someone to lead the world’s most powerful central bank, President Donald Trump kept everyone guessing. By Peter Nicholas, Kate Davidson and Michael C. Bender The fortunes of different candidates rose, fell and rose again as Mr. Trump brought them in for interviews and peppered friends and advisers with questions about whom to nominate. At times he seemed torn. After the White House spent months winnowing the field to five finalists, aides worried that Mr. Trump might scrap the whole lot and nominate someone else entirely. In the end, Mr. Trump opted for Fed governor Jerome Powell, a choice that is both historic and, at the same time, conventional, spurning conservative candidates more apt to upend Fed policies. In putting his imprint on the central bank, Mr. Trump provided a glimpse into an executive style that relies heavily on instinct and improvisation. He infused the search with suspense and showmanship seldom seen in the normally staid business of picking a central-bank leader. He quizzed a TV personality about his preference, consulted a casino magnate, polled senators about their preferences, and teased the public about the outcome. “People are anxiously awaiting my decision as to who the next head of the Fed will be,” Mr. Trump said last week in a video posted on Instagram. “I have somebody very specific in mind. I think everybody will be very impressed.” The decision also underscored the influence of Treasury Secretary Steven Mnuchin, who helped lead the search. Mr. Mnuchin was the biggest “cheerleader” for Mr. Powell, one White House official said. For his part, Vice President Mike Pence liked the more conservative-minded Stanford professor, John Taylor, though people familiar with the matter said he was also comfortable with Mr. Powell. This account is based on interviews with lawmakers, White House aides, lobbyists and Trump advisers and confidants. The Powell nomination breaks with tradition by marking the first time in nearly 40 years that a new president didn’t offer another term to the incumbent Fed chair—in this case, Janet Yellen. Mr. Powell was in some ways the last candidate standing after months of twists and turns in the process. Nearly a year ago, Mr. Trump’s surprising presidential victory made it likely Ms. Yellen would be a one-term Fed leader. In the final weeks of the presidential campaign, he frequently criticized her. Once in office, however, Mr. Trump began to warm to her and said he might give her a second term after all. By September, White House aides had presented the president with three other possible options: Mr. Powell, Mr. Taylor and former Fed governor Kevin Warsh. Mr. Trump had also been considering his top economic adviser, Gary Cohn. Mr. Trump began to interview candidates at the end of How Fed Chairs Have Fared Various Fed regimes have used interest rates to manage inﬂation, unemployment and the economy Inﬂation* William McChesney Martin Arthur Burns G. William Miller Paul Volcker Alan Greenspan Ben Bernanke Janet Yellen 10% 8 6 4 2 0 1960 1970 1980 1990 2000 2010 1970 1980 1990 2000 2010 1980 1990 2000 2010 Unemployment rate† 10% 8 6 4 2 0 –2 1960 Effective Federal Funds Rate 20% 15 10 5 0 1960 1970 *Change from a year earlier in the price index for personal-consumption expenditures †Seasonally adjusted THE WALL STREET JOURNAL. Source: Federal Reserve Bank of St. Louis September. Mr. Trump sought advice from unexpected places, even talking with casino mogul Steve Wynn, one administration official said. He would interrupt meet- ings in the Oval Office to go around the room asking aides what they thought of the various candidates. Mr. Trump placed great stock in the interviews. Mr. Powell aced his inter- view with the president. When it was over, Mr. Trump remarked that Mr. Powell “had good values.” Mr. Powell “sounded pragmatic, like Trump,” according to a person briefed on the conversation. The interview with Mr. Warsh didn’t go as well. Mr. Trump came away underwhelmed. Messrs. Taylor, Warsh and Cohn didn’t respond to requests seeking comment. A Fed spokeswoman said Mr. Powell and Ms. Yellen each declined to comment. In an interview he gave with Fox Business on Oct. 20, Mr. Trump suggested that the finalists were down to two: Messrs. Powell and Taylor. Talking to Republican senators on Oct. 24, he polled the room. Mr. Trump asked for a show of hands on whether the senators preferred Mr. Powell or Mr. Taylor. The next day, the president spoke to Lou Dobbs on Fox Business Network and asked the TV host who he would like to see win the job. Mr. Dobbs answered that Ms. Yellen “might be worth keeping.” “I would certainly think about it,” the president said. But Mr. Trump added that, “you like to make your own mark, which is maybe one of the things she’s got a little bit against her.” As late as Friday, Oct. 27, Mr. Trump was still asking questions about different candidates, White House officials said Thursday. On the evening of Oct. 27, the White House released the Instagram video teasing viewers about the coming announcement. Mr. Trump called Mr. Powell on Tuesday to tell him he was nominating him for the post. He phoned Ms. Yellen on Thursday—before the formal announcement—to tell her she wouldn’t be getting the job, a White House official said. Yellen’s Exit as Fed Chief to Break With Recent Precedent BY JOSH ZUMBRUN Janet Yellen’s leadership at the Federal Reserve is ending after just one four-year term, the shortest tenure at the helm of the central bank in nearly four decades, and a break from recent precedent: The previous three Fed chairmen all were reappointed by presidents from the opposite party that put them in office. On Thursday, President Donald Trump nominated Jerome Powell to succeed Ms. Yellen when her term as central bank chief ends in February. Given her predisposition to plot moves well in advance, she likely will make no more major decisions at the central bank beyond the next quarter-point interest-rate increase, which many market participants expect to come in December. Ms. Yellen, the Fed’s first female chief, led her colleagues to slowly and cautiously reverse the central bank’s extraordinary stimulus programs adopted during the financial crisis, the subsequent recession and the sluggish recovery. She built consensus within the central bank to move in well-telegraphed, measured steps to avoid roiling markets and disrupting the economy’s slow progress. Mr. Trump’s decision comes as the economy is growing steadily and the labor market is at or near full strength. The Fed, however, failed on her watch to achieve its goal of 2% inflation. During the first 16 months of her leadership, the Fed held its benchmark short-term interest rate near zero as the unemploy- ment rate fell and economic growth strengthened. In December 2015, she guided the central bank to its first rate increase in seven years. The Fed has raised rates three times since then and in October began shrinking the $4.2 trillion portfolio of bonds it purchased during and after the financial crisis to stabilize markets and boost the economy. “She had to walk, and is still walking, a very fine line between a still fragile economy and risks of leaving too much accommodation in place for too long,” said Roberto Perli, a partner at Cornerstone Macro and a former Fed economist. “I think she managed to strike the right balance.” It wasn’t a foregone conclusion that the first postcrisis tightening of monetary policy would go so smoothly. In 2011, for example, the European Central Bank raised rates, but set its economy reeling, exacerbated the continent’s debt crisis and swiftly reversed course. In 2013, Fed Chairman Ben Bernanke sent the Trea- sury market into a tailspin with remarks—catching many investors off guard—that the Fed would soon wind down its bond buying. But under Ms. Yellen, U.S. financial markets have taken the Fed’s moves in stride. “Janet Yellen hasn’t gotten enough credit for being right about the economy,” said Russell Price, senior economist for Ameriprise Financial, adding that despite public debates around her moves, there have been no large and obvious policy screw-ups during her tenure. 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 A8 | Friday, November 3, 2017 * * THE WALL STREET JOURNAL. WORLD NEWS Bank of England Raises Key Interest Rate First increase in a decade comes amid global trend toward ending stimulus steps Bottom's Up Bank of England policy rate 6% 5 BY JASON DOUGLAS AND PAUL HANNON 4 3 STEFAN ROUSSEAU/AGENCE FRANCE-PRESSE/GETTY IMAGES The Bank of England raised its benchmark interest rate for the first time in a decade, a telegraphed move that represents the latest step by the world’s major central banks to withdraw crisis-era stimulus. The BOE lifted its policy rate to 0.5% on Thursday, from 0.25%, and signaled that further tightening would be gradual and limited, indicating just two more quarter-point increases by the end of 2020. The cautious tone resulted in sharp falls for the British pound and U.K. government bond yields. The move is aimed at restraining inflation in an economy that is struggling to grow as fast as its peers as a result of a long period of weak productivity growth, which has been worsened by the uncertainties that have followed the June 2016 vote to leave the European Union. “The pace at which the economy can grow without generating inflationary pressures has fallen relative to precrisis norms,” said Mark Carney, the BOE’s governor. “Over the next few years, modest demand growth is expected to use up the little spare capacity remaining in the economy. Domestic inflationary pressures are likely to build.” Inflation was 3% in September, above the bank’s 2% target. The U.K. central bank’s move comes a day after the U.S. Federal Reserve signaled that it is poised to raise shortterm interest rates for the fifth time since 2015 in December, and a week after the European 2 1 0 2007 Bank of England Gov. Mark Carney in London on Thursday said the U.K. economy needs more-measured growth to temper inflation. BOE Signals Plans For More Measures, But With Restraint Five takeaways from the bank’s interest-rate decision CLEARLY FLAGGED The BOE has signaled for months that it was likely to raise its key interest rate this year, and ever more clearly, given the reluctance of market participants to believe it would do so while the economy adjusted to Brexit. Central Bank confirmed that it will begin to dial back the pace of its bond-buying program in January. Also on Thursday, the Czech National Bank raised its key interest rate for the second time since August. The U.S. and eurozone economies are growing at their healthiest rates for years, part of a synchronized upswing that A LITTLE MORE TO COME The big question for market participants was how quickly and sharply rates might rise after the first move. The BOE answered that by pointing to the need for just two more increases of the same magnitude by end-2020. likely weigh on the economy for years as Britain reorders its economic and commercial ties to the bloc and the wider world. It said uncertainty around Brexit is weighing on investment and putting off would-be immigrants, reducing the speed at which the economy can grow without pushing up prices. “Any resolution of the uncertainty about the nature of, and transition to, the U.K.’s future relationship with the EU insofar as it affects the behavior of households, businesses and financial-market participants would prompt a reassessment of the economic outlook,” Mr. Carney said. In their quarterly set of economic forecasts published Thursday, officials estimated the U.K.’s potential growth rate at around 1.5% a year— sharply lower than the 2%-2.25% growth rate the economy tended to enjoy before the global financial crisis. Brexit proponents say the BREXIT Gov. Mark Carney said the global economy was “firing on most cylinders,” and that the withdrawal of stimulus by leading central banks was therefore to be expected. But he added that the U.K. isn’t getting as much out of that pickup, thanks to Brexit. SPEED LIMITS Its rationale for the move is that the speed with which the economy can grow without generating too much inflation has fallen since the global financial crisis, a trend exacerbated by the Brexit vote. THE IMPACT Mr. Carney said bringing inflation down from 3% now to the central bank’s 2% target would help end the squeeze on real incomes, as will an expected pickup in wages. has taken hold for the first time since the global financial crisis. “The global economy is firing on most cylinders. It’s doing very well,” Mr. Carney told a press conference. “It’s not surprising that the stance of policy is changing. The U.K. is participating a little less in this global upswing. We are going through a relatively unusual period of underperformance.” BOE officials say that is a consequence of the uncertainty generated by the Brexit vote. Negotiators from London and Brussels are due to meet for fresh divorce talks next week. The U.K. is scheduled to leave the EU in March 2019. BOE officials reiterated their view that Brexit will DAVID RAMOS/GETTY IMAGES By Jeannette Neumann in Barcelona and Valentina Pop in Brussels Catalans protest in Barcelona on Thursday against a judge’s order to jail nine separatist leaders. aratist leaders, deciding they should be held without bail because of the risk they could destroy evidence or flee Spain. Her concerns about their flight risk, Ms. Lamela wrote in court documents published Thursday evening, stem in part from Mr. Puigdemont’s flight to Belgium. “The defendants have played an active role in propelling the carefully-designed secessionist process and skirting any kind of barrier that could have deviated them from their ultimate goal,” Ms. Lamela wrote in court documents. She said public funds had been spent to organize and carry out an Oct. 1 referendum on independence Using extraordinary constitutional powers, Prime Minister Mariano Rajoy ousted Mr. Puigdemont and his officials over the weekend after lawmakers there declared Catalonia an independent republic. In a televised statement aired on Catalan regional television, Mr. Puigdemont said he was the legitimate president of Catalonia despite being ousted by Madrid, and he called on Spanish authorities to release his ex-cabinet ministers. The detentions, he said, “were an attack on democracy.” The deposed Catalan leader said Spanish authorities were seeking a purely legal response to a political problem. Madrid says it would be un- constitutional to negotiate Catalonia’s independence. Tens of thousands of prosecession Catalans took to the streets throughout the region Thursday night after the judge’s decision was announced. Mr. Puigdemont’s extradition to Spain wouldn’t be automatic. If Spanish courts issue an order to detain Mr. Puigdemont, a Belgian judge would have to decide within 15 days whether to execute a European arrest warrant. If Mr. Puigdemont agrees to be extradited, his return to Spain would take place within 10 days. If he refuses, Belgian authorities would have two months to repatriate him. The Belgian judge can refuse to extradite in certain cases, if for instance there are serious reasons to believe the person’s fundamental rights would be violated. Mr. Puigdemont said Tuesday he feared for his safety if he returned to Spain. Mr. Puigdemont’s Belgian lawyer, Paul Bekaert, told Flemish broadcaster VRT Thursday that he expects a final decision on the extradition to take up to two months. “In my view this is not about a serious crime, this is not about terrorism, and there is also nothing pressing about it. So it will take its regular course in the justice system,” Mr. Bekaert said. European Union Struggles to Contain Separatist Strife Ousted Catalan leader Carles Puigdemont’s surprise flight to the European Union’s capital this week underlined in dramatic fashion ANALYSIS that Europe, try as it might, cannot brush separatist tensions under the carpet. In a regional bloc dotted by separatist claims but which prides itself on peaceful, democratic responses to political crises, the clash in Spain—the latest echo of a centuries-old rivalry—was never likely to be easily navigated. During the past 15 years, the EU has evolved a set of responses to separatist aspirations that side pretty squarely ’17 THE WALL STREET JOURNAL. A prosecutor asked a Spanish court on Thursday to issue an arrest warrant for Carles Puigdemont, the leader of Catalonia’s secessionist movement who fled to Belgium to escape authorities in Spain. BY LAURENCE NORMAN 2010 Source: Bank of England Spain Prosecutor Seeks Catalan Chief’s Arrest Mr. Puigdemont, who with four other officials fled to Belgium in recent days, defied an order to appear before Spanish judge Carmen Lamela on Thursday, calling the inquiry politically motivated and raising the possibility of a legal battle to force him to return home. Ms. Lamela must decide whether to grant the prosecutor’s request to issue an arrest warrant for Mr. Puigdemont, who is also the Catalan president, and the four other separatist leaders and deliver it to the Belgian authorities. Spain’s state prosecutor earlier this week announced he was seeking charges of rebellion, sedition and misappropriation of public funds against 20 ousted Catalan leaders, including Mr. Puigdemont. The decision came after lawmakers in Catalonia declared the northeastern region independent last Friday. Ms. Lamela ordered the imprisonment of nine other sep- Thursday 0.5% with national governments. While the bloc has encouraged capitals to create political space and show respect for regional movements, it has taken a firm line on the one issue Brussels directs: EU membership. That position—known as the Prodi doctrine after former European Commission President Romano Prodi—states that any region breaking away from a member state would automatically find itself outside the EU. If it wished to join, it would need to apply from scratch, a process that can take years. The EU stayed out of the way of the 2014 Scottish independence referendum, with its officials repeating the Prodi doctrine ad nauseam and avoiding comment on anything else. The Catalan crisis has proved different, principally because Catalonia’s independence bid has defied Madrid’s wishes, in contrast with London’s green light for the Scottish vote. In effect, the line in Brussels and most European capitals was to support Madrid’s attack on Catalan leaders being in breach of Spain’s constitutional and legal order, hope for a solution and keep out of the way. That approach has failed to circumvent tensions. The first conflict emerged between Spain and Belgium after Prime Minister Charles Michel criticized Madrid’s handling of the outlawed Oct. 1 referendum vote that saw clashes between police and voters. Mr. Michel faced political pressures of his own. He leads a four-party coalition government that includes the N-VA, the Flemish nationalist party that came first in the last Belgian federal election. The N-VA has old ties with Catalan leaders. In the past, Belgium has also clashed with Spain by failing to extradite asylum seekers Spain accused of being linked to Basque terror group ETA. When EU leaders met in Brussels in mid-October, concerns were growing in some capitals that Spain seemed to be closing the door on dialogue and escalating the standoff. Yet ahead of the summit, European Council President Donald Tusk, who himself had urged Madrid not to resort to “the argument of force,” made it clear Catalonia would be off the agenda. He had spoken with Spanish Prime Minister Mariano Rajoy, who didn’t want the issue discussed. However, at the summit’s dinner discussions, German Chancellor Angela Merkel asked Mr. Rajoy if he would say a word on the Catalan situation. When Mr. Tusk later invited Mr. Rajoy to respond, he waved his hands in a gesture indicating he had nothing to say, one of the officials said. Mr. Puigdemont’s Brussels sojourn could now keep the Catalan crisis front and center. The Catalan leader told journalists Tuesday that he wasn’t in Brussels to apply for asylum but had come to Europe’s capital to keep the debate alive. U.K. will flourish after it exits the EU and can pursue its own policies on trade and regulation. Thursday’s rate increase reverses a cut implemented as part of a package of stimulus measures implemented in August 2016 in the wake of the EU referendum. The last time the BOE raised its benchmark rate was in July 2007, a decision that was soon reversed as the global financial crisis swept over the U.K. The BOE’s move was opposed by two of the central bank’s nine rate-setters. Their dissent wasn’t a surprise: Jon Cunliffe and David Ramsden, deputy governors of the central bank, had in recent weeks signaled they felt a rate rise would be premature while wage growth remained weak. “The increase in the bank rate is difficult to justify given the ongoing political uncertainty that surrounds Brexit and the slow progress of negotiations between the U.K. and the EU,” said Anthony Doyle, a money manager at M&G Investments. —Brian Blackstone contributed to this article. Rate increase batters pound, U.K. yields.................................. B12 WORLD WATCH BRAZIL American Family Hid In Jungle After Attack An American couple and their two young children who were rescued after their barge was attacked by pirates on a remote Amazon River tributary were transferred to a hospital for treatment after hiding in the jungle for three days, police said. The couple, Adam and Emily Harteau, 39 and 36 years old, and their daughters Colette, 6, and Sierra, 3, have been roaming Latin America in a Volkswagen van since leaving California in 2012. Police said they took the Harteaus to the hospital in the port city of Breves in the northern state of Pará. The family wasn’t available for comment. They had embarked from Belém with their van on the barge and had planned to travel upriver to Macapá, Ms. Harteau’s father, Warren Brandle, said. But the barge was attacked Sunday by pirates, who brought the vessel and a tugboat to an area called Porto dos Dias, the Belém police chief, said. There, the attackers took goods off the barge, stole the Harteaus’ cellphones and abandoned the vessels, leaving the passengers and crew stranded, he said. —Paulo Trevisani and Paul Kiernan MYANMAR Suu Kyi Goes to Ethnic Conflict Zone Myanmar leader Aung San Suu Kyi on Thursday made her first visit to violence-torn Rakhine State since the military cracked down on minority Rohingya Muslims and drove hundreds of thousands of people into neighboring Bangladesh. The trip follows growing pressure by Western countries for her to address a crisis the U.N. has called ethnic cleansing in the Buddhist-majority country. The military says it targeted only Rohingya Muslim militants who attacked security outposts. An official said the visit was connected with a plan to rehabilitate the state, which has been racked by conflict. A Western diplomat said the plan is hard to understand “because the local environment is still so hostile to the Rohingya, there is little chance they will return right now.” —Niharika Mandhana and Myo Myo 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 Friday, November 3, 2017 | A8A EYE NATIONAL VISION Making quality eye care and eyewear more affordable and accessible. National Vision Holdings, Inc. now lists on Nasdaq. The National Vision family of brands includes: 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 A8B | Friday, November 3, 2017 THE WALL STREET JOURNAL. NY We Deliver. Meals. Nutrition. Dignity. Hope. Love. #FoodIsMedicine godslovewedeliver godslovenyc godslovenyc God’s Love We Deliver is the New York City metropolitan area’s leading provider of nutritious, individually tailored meals to people who are too sick to shop or cook for themselves. All meals are provided free of charge, without regard to income, and we have never had a waiting list. To donate or volunteer your time, visit us at godslovewedeliver.org. If you are in the NYC metropolitan area and would like to become a client, please email firstname.lastname@example.org or call 212.294.8102. 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. Friday, November 3, 2017 | A9 * * * * WORLD NEWS Mysterious Votes Flip an Election In Venezuela BY ANATOLY KURMANAEV North Korea Criticizes U.S. Sortie Caracas VENEZUELA BO L ÍVAR Ciudad Bolivar El Casabe COLOMBIA ANATOLY KURMANAEV/THE WALL STREET JOURNAL EL CASABE, Venezuela—Aires Pérez Rodríguez traveled by canoe for three hours to deliver the paper receipts showing a total of 225 votes cast for state governor in this hamlet. Then he passed them to his aunt, who drove them a further 150 miles to the Bolívar state capital. When the official count was released days after the Oct. 15 election, however, there were an extra 471 votes for the government’s candidate. It wasn’t just Mr. Pérez, the opposition party’s election monitor, who noticed. The ruling Socialist Party’s own election supervisor in El Casabe realized it, too. “This is illegal,” said Luciano Mendoza, the election supervisor, who showed The Wall Street Journal the votingmachine receipts that counted just a third as many votes from the hamlet as reported by electoral authorities later. “They say they bring justice, but instead they commit fraud.” Mr. Pérez’s evidence prompted opposition officials in Ciudad Bolívar to make more comparisons of voting receipts to an official tally on the National Electoral Council’s website. All told, in records reviewed by the Journal, they discovered that more than 2,500 votes were added statewide, flipping the winner of the Bolívar state election from the opposition candidate— 200 miles 200 km BRAZIL THE WALL STREET JOURNAL. briefly listed as the winner on the Electoral Council’s website—to the government choice. The declared winner, Justo Noguera, a National Guard general from outside the state who never held political office, took office two days later in a surprise midnight ceremony. “There’s clear manipulation here,” said Luis Lander, director of the Venezuelan Electoral Observatory, a nonpartisan group in Caracas that tracks elections after he examined voting-machine receipts that the opposition alliance posted online. “The results were altered to allow the losing candidate to be declared the winner.” Bolívar was one of 18 of 23 Venezuelan states the ruling party won in elections last month and the only one where evidence of vote fraud has surfaced. A coalition of opposition parties is contesting some of those results, alleging unfair voting procedures. The sequence in El Casabe provides a rare look at how Luciano Mendoza, an election supervisor in El Casabe, held up a voting-machine receipt at odds with the government’s accounting. President Nicolás Maduro’s government is trying to ensure its political survival amid an unprecedented economic crisis defined by hyperinflation, food scarcity and the collapse of public services, say rights groups and opposition activists. They say it bodes ill for an election next month to pick 335 mayors across Venezuela. The U.S. government, which has levied sanctions against his administration, says Mr. Maduro is dismantling democratic institutions and yielding more power to the military. Officials from Bolívar’s governor’s office and the Maduro administration didn’t respond to requests to comments. Nor have they commented publicly on the matter. They haven’t questioned the authenticity of 13 state voting-machine receipts that showed a discrepancy. Aldrin Torres, the Socialist Party’s vice president of Bolívar’s state Congress, said in an interview that “If there was fraud, they have proper channels of appeal to turn to.” On Thursday, Bolívar state’s opposition contender Andrés Velásquez, a nationally known trade-union activist, published a copy of a letter from the Electoral Council admitting his complaint over the vote. The council would now have until mid-December to investigate and decide on the complaint, according to electoral law. Daniel Prieto, the Electoral sions to gold wildcatters and traffic in scarce gasoline, miners and local officials say. Gen. Noguera succeeded a Socialist Party governor, another retired general. Mr. Velásquez threatened the continuity represented by Gen. Noguera’s election, some critics say. “A probing opposition candidate like Velásquez threatened the military’s business interests,” said retired Gen. Cliver Alcalá, who ran Bolívar’s military district until 2013 but has since broken with Mr. Maduro. “That’s why the fraud to maintain status quo there was so obvious, so desperate.” Council’s top Bolívar state official declined to comment and referred questions to the council’s Caracas headquarters, which didn’t comment. Gen. Noguera didn’t respond to requests to comment. Bolívar state is an economic powerhouse where the military is taking a leading role. It is home to the country’s major steel and aluminum plants, hydroelectric power and big deposits of gold and diamonds, making it a vital source of foreign currency for the cashstrapped government. Mr. Maduro has appointed generals to run most of the state’s steel and mining companies. Many lower-level military officers charge commis- Venezuela courts showdown on bonds........................................ B1 Kurds Face Setbacks Across the Middle East BY JONATHAN CHENG MIDDLE EAST CROSSROADS By Yaroslav Trofimov With Islamic State on the wane, the West no longer needs Kurdish help—and the Kurds face a historic calamity once again, in part due to their own leaders’ mistakes. In Turkey and Iraq, Kurdish achievements of recent years have already been rolled back. In Syria, too, Kurdish gains are confronting new perils as the region’s nation-states work together to squelch the possibility of an independent Kurdish homeland in the Middle East. F or a short moment over two years ago, many of the 30 million Kurds, one of the world’s largest ethnic groups without a state of their own, believed that history was finally on their side after decades of massacres, persecution, and war. In Iraq, Turkey and Syria—three of the four nations (alongside Iran) that include the main Kurdishpopulated territories—they had secured unprecedented ALAA AL-MARJANI/REUTERS SEOUL — The U.S. flew two B-1B bombers on a mission near North Korea on Thursday together with Japanese and South Korean jet fighters, provoking anger from North Korea just days before President Donald Trump departs for a closely watched trip to the region. The flyover, which U.S. Pacific Command said in a statement was planned in advance and not in response to any current event, comes as the U.S. operates three carrier strike groups in the Western Pacific Ocean for the first time in a decade. As it has done earlier this year, North Korea reported on what it described as a stealth B-1B flyover even before the U.S. military publicly acknowledged the mission. In North Korea’s account, published early Friday morning through its state media, the exercise included a bombing drill on a firing range in South Korea that was meant to simulate a nuclear strike on North Korea. Pacific Command didn’t immediately respond to a request for comment on the timing of the announcement, or on the inclusion of a bombing drill. North Korea, in its statement, said that the mission underlined what it said was the U.S. “aggravating the situation of the Korean Peninsula and seeking to ignite a nuclear war.” An Iraqi flag appeared on a military vehicle at an oil field on the outskirts of Kirkuk last month. power and influence. The Kurdistan region in northern Iraq took advantage of the Iraqi army’s 2014 rout by Islamic State to seize the oil-rich area of Kirkuk. Elections in Turkey had deprived the ruling AKP party of President Recep Tayyip Erdogan of a parliamentary majority and turned the main pro-Kurdish party, HDP, into the country’s third largest—with a real chance to influence national politics. And in Syria, the dogged defense of the Kurdish town of Kobani against Islamic State attracted international sympathy—and U.S. military assistance—to the SyrianKurdish YPG militia. Within months, the Syrian Kurds became America’s indispensable partner against Islamic State, seizing a significant part of Syrian territory. Now, these Kurdish gains in Turkey and Iraq have been lost, possibly for decades, and the fate of Syrian Kurds looks increasingly precarious as the Syrian war enters its endgame. “We are going through a very difficult moment, even though we have seen worse in the 1980s and 1990s,” said Kendal Nezan, head of the Kurdish Institute of Paris, a think tank formed in 1983 to rally Western support for the Kurdish cause. In Turkey, a July 2015 move by the Kurdistan Workers’ Party, or PKK, to resume its armed struggle against the Turkish state after a two-year peace process allowed Mr. Erdogan to win a rerun of elections later that year amid nationalist fer- vor. Subsequently, the PKK’s disastrous decision to launch an urban guerrilla campaign resulted in the near-destruction of several Kurdish cities and towns in the country’s southeast. Both the U.S. and Turkey consider the PKK a terrorist organization. Mr. Erdogan followed up on the military campaign against PKK by imprisoning most of the leadership of HDP, which he accused of being a PKK front, by removing the elected HDP mayors across Kurdish-populated parts of Turkey, and by eliminating many other concessions to the Kurds. I n Iraq, meanwhile, the Kurdistan Regional Government’s then-president, Masoud Barzani, called a September independence referen- dum despite international advice to the contrary and deepseated internal opposition to his 25-year rule. The move backfired astoundingly: within days, the Kurdistan government lost Kirkuk and many of its privileges, with internal conflict threatening its very existence as a selfruled entity. Mr. Barzani himself had to step down. “From the perspective of most Kurds, the present predicament is largely due to incompetence, corruption and nepotism afflicting the Kurdish ruling elite,” said one of Mr. Barzani’s leading political opponents, Barham Salih, a former Kurdistan prime minister and former Iraqi deputy prime minister. Across the border in Syria, the momentum—for now—is still with the Kurds. Backed by the U.S., the Kurdish-led forces recently seized Islamic State’s stronghold of Raqqa, and are pushing down the Euphrates Valley. But there, too, many Kurds fear that once YPG is no longer useful against Islamic State, Washington will end up making a deal with Russia, Turkey and even the Syrian regime at the Kurds’ expense. “Any one of these powers can betray the Kurds anytime and Damascus will be very happy if the Kurds lose their ground after having devastated Islamic State’s military positions,” said Turkish lawmaker Ertugrul Kurkcu, one of the few senior HDP leaders who still remain free. “The Kurds have fulfilled their duty and can vanish now.” CIA’s bin Laden Files Shed New Light on Iran-al Qaeda Alliance A newly released trove of documents the U.S. found in the compound where Osama bin Laden was killed provides new insights into al Qaeda’s By Margherita Stancati in Beirut and Asa Fitch in Dubai relationship with Iran, suggesting a pragmatic alliance that emerged out of shared hatred of the U.S. and Saudi Arabia. After the U.S. toppled the Taliban regime in Afghanistan in 2001, members of al Qaeda, which was based there, scrambled to escape. Most of them crossed the border into Pakistan. But others moved to Iran, an al Qaeda official who appeared to be a senior member of the militant group wrote in a lengthy 2007 account in one of the documents. Both sides were willing to overlook profound ideological and religious differences to combat common enemies. The terror group practices an extreme interpretation of Sunni Islam that considers Shiite Islam—Iran’s state religion—a rejection of the true faith. “In my experience, the Iranian regime is the best example…of pragmatism in politics,” the al Qaeda official wrote in the document. “Anyone who wants to strike America, Iran is ready to support them and help them with money and arms and all that is required as long as they are not directly and clearly implicated.” An official at Iran’s United Nations mission didn’t re- spond to a request to comment. The release comes as President Donald Trump pursues a hard line on Iran, refusing last month to certify that Tehran was complying with a nuclear deal it reached in 2015 with six world powers including the U.S. The revelation of deeper ties between Iran and al Qaeda than many had understood could further embolden American proponents of tough new sanctions on Iran. Many of the harshest international sanctions against the country were removed under the nuclear deal, in exchange for Iran’s agreement to scale back its disputed nuclear program. A U.N. monitoring body has repeatedly certified Iran’s compliance with the accord. “These documents reveal the complexities of al Qaeda’s relationship with Iran in much greater detail than ever before,” said Bruce Riedel, a former career CIA official who is currently a senior fellow at the Brookings Institution. Tehran had offered Qaeda fighters shelter, money and weapons to fight the U.S. The U.S. placed sanctions on three senior al Qaeda figures based in Iran last year. “There is every reason to believe that the two remain in contact today, working collaboratively when it suits mutual interests,” Mr. Riedel added. Strategic links between Iran and al Qaeda stretch back decades. But nearly 470,000 files released Wednesday by the Central Intelligence Agency reveal the contours of a relationship that was both close but at times fraught. Iran welcomed al Qaeda fighters as they fled Afghanistan. Tehran offered the fighters shelter, money and weapons as well as training in camps run by its proxy Hezbollah in Lebanon. The author said he didn’t know whether any al Qaeda fighters ultimately ended up in Hezbollah training camps. A priority for Iran, wrote the author, was to encourage the jihadists to target the U.S., particularly in Saudi Arabia. “They offered some of our Saudi brothers…money and arms and everything they needed,” the al Qaeda official wrote. The Iranians gave them strict instructions to keep a low profile, banning them from using phones or gathering in groups, according to the document. But the jihadists broke those rules, angering their Iranian hosts and leading to an unraveling of the relationship. Iranian authorities rounded up the al Qaeda fighters and told them that the Americans recorded many of their calls and accused Iran of harboring terrorists, the document’s author said. After that, Iran tightly restricted the movement of the Qaeda fighters, imprisoning some of them and forcing others to leave. 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 A9A | Friday, November 3, 2017 NY * * THE WALL STREET JOURNAL. GREATER NEW YORK Barriers Are Installed to Help Protect Bikeway Two Ernst & Young executives take in the view, including the Empire State Building, during a tour of the Manhattan West site. EY Plans to Relocate in Manhattan BY KEIKO MORRIS Global professional-services company Ernst & Young LLP, enticed in part by a state incentive package that could be worth as much as $12 million, is relocating its U.S. headquarters within the city to Manhattan’s far West Side. The company said it has signed a lease for 17 floors at One Manhattan West, an office tower rising on an 8-acre development in the Hudson Yards District. EY’s lease at 5 Times Square, where its U.S. headquarters is now located, will expire in 2022. It hasn’t decided whether it will retain some presence there. EY, which has been expand- ing its presence in the metropolitan area, is part of a wave of big tenants, including Amazon.com Inc., that have committed to taking space at the Manhattan West complex. The company liked Manhattan West’s location near Penn Station and subway lines as well as the modern construction and building systems offered by the complex and the 2.1 million square-foot office tower where it will reside, said Richard Jeanneret, vice chair and northeast managing partner at the company. Another important component, he said: the tax-incentive package New York state is offering. EY will receive tax credits if it creates 1,152 jobs in New York City over the next seven years. The company has about 10,000 employees in the metropolitan area. “At the end of the day, with our analysis of space needs and costs to lease that space, the incentives helped us to keep the concentration we planned to have in the city,” said Mr. Jeanneret. In September, the state announced a $20 million taxcredit package for Amazon.com to add more than 2,000 jobs over 10 years in New York City. Amazon signed a 15-year lease for space at Five Manhattan West. “Our investments to attract and retain the world’s leading companies are creating highpaying jobs and leveraging new investment to help strengthen and grow our economy,” said Gov. Andrew Cuomo in a statement. EY’s workforce has been growing as the company provides more services to clients in sectors including digital technology, life sciences, consumer products and the media and entertainment fields, said Mr. Jeanneret. The company this year opened offices in Chelsea and Union Square. Another office in Hoboken, N.J., is expected to open later this year. Brookfield Property Partners LP, the developer behind Manhattan West, has been on a roll, signing leases for almost 1.6 million square feet at the complex since May, the company said. Brownstone Plays Role in Manafort Case It hasn’t been lost on Paul Manafort’s Brooklyn neighbors that their ultraliberal enclave may help spell the downfall of the veteran Republican operative who helped propel Donald Trump to the White House. On Tuesday night, amid Halloween celebrations, a carved pumpkin bearing the face of Special Counsel Robert Mueller sat at the entrance of Mr. Manafort’s uninhabited home, a property cited in an indictment against him. A plaque reading “The House That Brought Down A President” was affixed to the gate. Lisa Mendoza, a 52-year-old neighbor, said she was relieved that Mr. Manafort has never lived in the Union Street home. “It was really alarming to find out Manafort had this house,” she said. Carroll Gardens and its surrounding neighborhoods voted overwhelmingly for Democratic AMY FINKEL BY ERICA ORDEN AND LAURA KUSISTO A pumpkin placed outside Paul Manafort’s Brooklyn brownstone. presidential candidate Hillary Clinton over Mr. Manafort’s onetime boss, Mr. Trump. The Brooklyn brownstone is a key part of the charges that allege Mr. Manafort laundered more than $18 million between 2006 and 2016 to pay for what prosecutors described as a “lavish lifestyle”—including rugs, landscaping, cars and clothing— without reporting the income to the Internal Revenue Service. The former Trump campaign manager has pleaded not guilty and his attorney has called the case “ridiculous.” A spokesman for Mr. Manafort declined to comment for this article. According to the indictment, the Brooklyn property was purchased by Mr. Manafort in 2012 with $3 million in cash, all of which came from an account he held in Cyprus. Mr. Manafort took out a $5 million loan against the home in early 2016, promising that $1.4 million of that would be used for construction, according to the indictment. Instead, the indictment says, he used much of the loan as a down payment on a property in California. The townhouse has sat abandoned and dilapidated for years, with plywood and a padlock on the front door in the past several months. About six weeks ago, however, construction workers began showing up every morning, according to neighbors. Ms. Mendoza said the house has been renovated in fits-andstarts since Mr. Manafort’s purchase. Jonathan Miller, president of the real-estate firm Miller Samuel Inc., said the controversy surrounding the property is unlikely to hurt its resale value. If anything, the added back story and media attention are essentially free publicity. “That is a marketer’s dream if you’re selling it, because you have a lot of eyeballs on the property,” he said. Mr. Manafort, however, may not be able to retain ownership of the property. If he is convicted, the home would be seized by the government, the indictment says. Mr. Manafort transferred the deed for the property from a limited liability corporation to himself and his wife earlier this year, according to property records. Steven L. Kessler, a New York asset-forfeiture attorney, said in that case the government may be able only to put a lien on the property, not force a sale, and would be entitled to Mr. Manafort’s share of the proceeds of an eventual sale. Concrete barriers are being deployed along the Hudson River Greenway in Manhattan where a truck killed eight people and injured 12 in a terrorist attack this week. A spokesman for New York City Mayor Bill de Blasio said Thursday that six rectangular barriers will be placed at each of the 31 points where vehicles intersect with the bike path between 59th Street and the Battery. The spokesman, Ben Sarle, added that two cube-shaped barriers will be placed at each of 26 pedestrian intersections on the Hudson River side of the cycle path. The work began on Thursday, Mr. Sarle said. The deployment of the barriers follows Tuesday’s terrorist attack in which, police say, Sayfullo Saipov, 29 years old, drove a truck for nearly a mile down the bike path, south from Pier 40, before crashing into a school bus. The bike path is separated from traffic for miles. Even so, Transportation Alternatives, a nonprofit advocacy group, has called for better protection from vehicles for almost a decade. In 2006, cyclist Eric Ng was killed by a drunken driver who entered the bike path at Chelsea Piers. Paul Steely White, executive director of Transportation Alternatives, cautiously welcomed the barriers on Thursday. But he said that he was concerned they could create a safety hazard for cyclists. “The city and state should move quickly to replace these concrete blocks with strategically placed metal bollards and other robust yet contextsensitive barriers,” Mr. Steely White said. Bollards, which are tall and thin, take up less physical space. “We look forward to working with the city to ensure that the barriers do not create unnecessary hazards for greenway users.” Shin-pei Tsay, executive director of Gehl Institute, an urban design research nonprofit based in New York, said there was a risk that the barriers could create pinch points along the greenway where cyclists will bunch as they attempt to navigate them. Deployment of the concrete barriers follows the terrorist attack on Tuesday. “I understand the impetus to do it, but it will reduce accessibility,” she said. The rectangular barriers will be installed by New York State Department of Transportation, while the city and NYPD will install the cube barriers. “We began installing Jersey barriers on the path this morning to ensure that all entry points are secure and will continue to evaluate all necessary steps to protect pedestrian safety,” said Jennifer Post, a spokeswoman for the state Transportation Department. She didn’t address concerns about the barriers creating bottlenecks on the path. JOEL CADMAN/THE WALL STREET JOURNAL MARK KAUZLARICH FOR THE WALL STREET JOURNAL BY PAUL BERGER A concrete barrier is installed along the Hudson River Greenway on Thursday to protect bikers from vehicles. Closing Arguments Begin in U.S. Sen. Menendez’s Corruption Trial BY THOMAS MACMILLAN In closing arguments Thursday in the corruption trial of U.S. Sen. Bob Menendez, a defense lawyer accused prosecutors of lying to jury members to secure a conviction. “They’re lying to you,” attorney Kirk Ogrosky said in Newark federal court. “They’re making up a story and trying to make the evidence fit the story.” Mr. Ogrosky represents Mr. Menendez’s friend and co-defendant, Florida eye doctor Salomon Melgen. Prosecutors say the two men were for years involved in a scheme in which Dr. Melgen plied the senator with gifts and campaign contributions in exchange for political favors. Their lawyers have said the government is trying to criminalize a simple friendship. Closing arguments began Thursday after eight weeks of testimony. They will continue Monday, after which the jury is expected to begin deliberations. If Mr. Menendez, a Democrat, is convicted, he could be expelled from the Senate by a two-thirds majority vote of his colleagues. If he resigns or is forced out, his successor could be appointed by exiting Republican Gov. Chris Christie. Mr. Menendez served for years as “Dr. Melgen’s own personal United States senator,” prosecutor Joseph Cooney told the jury. The doctor essentially kept the senator on retainer with years of gifts, including flights on his private jet, Carib- bean vacations, and a $4,900 stay in a fancy Paris hotel, Mr. Cooney said. He also made hundreds of thousands of dollars of campaign contributions to benefit the senator, Mr. Cooney said. In return, Mr. Menendez helped secure visas for three female friends of Dr. Melgen, sought to intervene on a port security contract dispute involving the doctor and tried to help Dr. Melgen with a Medicare billing dispute that was costing him millions of dollars, Mr. Cooney said. Don’t be swayed by the friendship defense, he warned jurors. “Friends can bribe each other.” Mr. Menendez’s attorney, Abbe Lowell, is expected to make his closing argument on Monday. 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. Friday, November 3, 2017 | A9B NY * * ®ROBERTOCOIN GREATER NEW YORK Broadway Royal Hits a Milestone Disney-Produced Musical ‘The Lion King’ Celebrates 20 Years BY CHARLES PASSY Local News Websites Are Shut Down BY AUSTEN HUFFORD A suite of local news websites, including one launched by TD Ameritrade founder Joe Ricketts, abruptly shut down Thursday, a week after its New York journalists voted to unionize. The decision to abruptly close highlights the struggles local media players have faced in gaining audiences and maintaining a profit. Local news websites DNAinfo and Gothamist redirected readers to a letter Thursday evening, saying the operations had shut down for financial reasons. “DNAinfo is, at the end of the day, a business, and businesses need to be economically successful if they are to endure,” said Mr. Ricketts, chief executive of DNAinfo. “I’m hopeful that in time, someone will crack the code on a business that can support exceptional neighborhood storytelling.” AFL-CIO affiliate Writers Guild of America, East said last week on its website that 25 of 27 editorial employees from Gothamist and DNAinfo in New York voted for the Writers Guild to be their bargaining representative. A union representative said in a statement Thursday the union is “deeply concerned” about the decision and is looking for “areas of recourse.” In a statement, DNAinfo said “the decision by the NY editorial team to unionize is simply another competitive obstacle making it harder for the business to be financially successful.” “This is an act of direct retaliation for our successful union effort,” DNAinfo reporter Noah Hurowitz wrote on Twitter. DNAinfo, which also had a chapter in Chicago, was founded in 2009 and focused on hyperlocal coverage of neighborhoods. Gothamist, founded in 2003 with a focus on arts and culture, had a number of other sites around the world. DNAinfo bought Gothamist earlier this year. MARK KAUZLARICH FOR THE WALL STREET JOURNAL W hen Lindiwe Dlamini joined the original Broadway cast of “The Lion King” in 1997, she hoped the musical might be her home for a stretch of time. “I could tell it was going to be a long-running show, but I never thought it was going to be 20 years,” she said. “The Lion King,” the Disney-produced musical based on the movie of the same name, marks that very milestone this month. And Ms. Dlamini, a 49-year-old South African native who is part of the show’s vocal ensemble, remains the only performer to have been with it the entire time. It amounts to a stint of roughly 7,500 appearances, making Ms. Dlamini one of the longest-tenured artists in Broadway history. To put it in perspective, Ms. Dlamini’s run equates to about 3,000 more performances than the late Yul Brynner, celebrated as a theatrical iron man, gave as the king of Siam in various productions of “The King and I.” During Ms. Dlamini’s tenure, the show has seen no fewer than four performers come and go in the lead role of Mufasa. She has also outlasted seven actors who have played Pumbaa and seven who have played Timon, two other key roles. Ms. Dlamini said there is no secret as to why she has stayed with the Tony Awardwinning musical for so long. “I haven’t thought of going to another show because this is the best show on Broadway,” she said. At the very least, it is one of the biggest financial successes on Broadway. Over its 20-year run, the Julie Taymor-directed show, which incorporates African folk elements to tell its set-in-the- Lindiwe Dlamini has been with “The Lion King” musical since it opened in 1997. The South African native, part of the show’s vocal ensemble, is the only performer to have been with it from the start. jungle coming-of-age story, has grossed $1.4 billion and continues to play to capacity audiences week after week. The show has also spawned more than 20 productions world-wide. Ms. Dlamini says boredom has never been an issue, largely because of the dy- 7,500 The number of appearances by Lindiwe Dlamini in “The Lion King.” namic nature of the musical, where performers often parade around in larger-thanlife, puppet-style costumes. “It’s not like a show where you can just be sleeping…It requires your attention fully all the time,” she said. It also doesn’t hurt that an occasional boldface name is in the audience. Ms. Dlamini recalls performing for everyone from President Bill Clinton to Michael Jackson. T o some extent, the real appeal of “The Lion King” for Ms. Dlamini is what happens behind the scenes. The cast, which includes other performers recruited from South Africa, is known for being one of the most tightly knit on Broadway. Ms. Dlamini met her future husband, Bongi Duma, while performing together in the show. He remains a part of the cast and the couple now travels together from their home in New Jersey for every performance. Not that every one of Ms. Dlamini’s 7,500 performances has gone so smoothly. She recalls the time she once tripped on her costume and fell. “All these 1,700 people saw me,” she said. Ms. Dlamini’s fellow cast members credit her with im- buing the production with a festive spirit, both onstage and off. “Whenever you walk past her, she’s always got a massive smile on her face,” said Stephen Carlile, the actor who has played the lead role of Scar for almost the past year. Ms. Dlamini is far from the only veteran presence on Broadway. Other long-running shows, from “Kinky Boots” to “The Phantom of the Opera,” retain their share of cast members. Still, a 20-year run is another matter. “I think that’s unbelievable,” said Daniel Stewart Sherman, a “Kinky Boots” cast member who has been with the show since its 2013 opening. Ms. Dlamini has never sought a more prominent role during her time with “The Lion King.” And for the present time, she has no plans to leave the show. “As long as I’m still capable of doing it, I will do it,” she said. ROBERTO COIN BOUTIQUE Westfield World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 PRINCESS FLOWER COLLECTION | robertocoin.com GREATER NEW YORK WATCH NEW JERSEY POLITICS OBITUARY Democrat Reported $4.6 Million Income Philanthropist Joan Tisch Dies Phil Murphy, the Democratic candidate for New Jersey governor, released a federal tax return document Thursday showing reported adjusted gross income of more than $4.6 million last year. A summary provided by his campaign showed Mr. Murphy, a former Goldman Sachs executive, and his wife paid nearly $1.5 million in combined federal and New Jersey state taxes last year, an effective tax rate of about 32%. —Kate King Joan Tisch, a noted philanthropist and the widow of former New York Giants co-owner Bob Tisch, died Thursday, the team said. She was 90 years old. Mrs. Tisch served as a Museum of Modern Art trustee and was on the board of Citymeals on Wheels, a nonprofit that delivers food to the elderly. She was co-chair of the Tisch Center for the Arts at the 92nd Street Y in Manhattan. —Associated Press Our handcrafted necklace is a sterling find There is a timeless beauty in the intricate craftsmanship of this sleek sterling necklace. Braided and woven links are polished to a mirror-bright finish for a look that’s simply elegant. $ 99 Plus Free Shipping Graduated Sterling Silver Wheat-Link Necklace 18" length. 1⁄4"-3⁄8" wide. Polished finish. Lobster clasp. Shown actual size. Also available in 20" $119 Ross-Simons Item #887449 To receive this special offer, use offer code: DASH42 1.800.556.7376 or visit www.ross-simons.com/DASH 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 A10 | Friday, November 3, 2017 THE WALL STREET JOURNAL. LIFE&ARTS TELEVISION REVIEW By Dorothy Rabinowitz Hunting For Justice ACORN TV Ida Engvoll in the title role. LIONSGATE (2) FROM THE DAY Rebecka Martinsson (Ida Engvoll) receives news of an old friend’s death, her life is transformed. It’s a life to envy, it would seem, with the best of everything within reach if not yet entirely hers—she’s already the object of unstinting, if not outright blind, devotion of a highly desirable man. A work-driven lawyer considered a star of her Stockholm law firm, she’s come a long way from the small-town world of her childhood in Northern Sweden, to which she now reluctantly returns. It’s there that she learns that the dear friend reportedly killed in an accident was in fact murdered, and where the first of these spine-chilling mysteries begins. All (they come with subtitles) are based on the novels of Asa Larsson, a busy tax lawyer herself before settling into a career as a popular crime novelist. Intent on finding the killer who ended the life of her old friend and protector, Rebecka effectively abandons her job at the law firm for detective work. It will be her role throughout this eight-part series—a heroine fearless in her pursuit of answers and also an emotionally vulnerable one in ways that define her character. Put another way, in a television world now awash in female coppers there aren’t many as interesting and human as Rebecka. That will be clear when the first case concludes with a sudden horrific act of violence—precisely the sort of thing to expect from a murder mystery. But this act has something of the unbearable about it, which says much about the skill of the writing here, about characters so vividly created that the snuffing out of their lives can’t be borne. There’s not another scene like it in the rest of the series, but the script, and performances, shine throughout, as does the arctic background, both beautiful and menacing. It’s therefore no surprise when a search for bodies in a lake dredges up a Nazi warplane, its huge black swastika looming up as it’s pulled from the waters. With it comes all necessary material leading to a hunt for a former Nazi collaborator, with a quietly intrusive Rebecka on the case. FILM REVIEW | By Joe Morgenstern Surrendering To the Conventional Richard Linklater has created a sequel of sorts to ‘The Last Detail’ IN “LAST FLAG FLYING” Richard Linklater, one of the most adventurous of contemporary American directors, has done a resolutely conventional sequel of sorts—different names for essentially the same characters—to “The Last Detail.” That’s the fondly remembered 1973 comedy, based on a novel by Darryl Ponicsan, with Jack Nicholson and Otis Young as Navy men escorting a hapless young thief played by Randy Quaid to a brig in Portsmouth, N.H. On the strength of what’s on screen, Mr. Linklater’s sequel was never a good idea. The story starts when a man walks into a bar in Norfolk, Va., in 2003, 30 years after the original film, which was directed with bawdy exuberance by Hal Ashby. For a while the barkeep, Sal (Bryan Cranston), doesn’t recognize the man, who is eerily withdrawn. Eventually, though, the plot quickens. Sal sees that it’s his old Navy buddy, a former corpsman called Doc, and we see that Doc is played by Steve Carell behind wire-rimmed specs and a mournful demeanor. Doc, who’s been living in Portsmouth after spending eight years in the brig, reveals that his son, a young Marine, has just died a hero’s death in Iraq, and he asks Sal to accompany him to Arlington National Cemetery, where the boy is to be buried with full military honors. Rebecka Martinsson Acorn TV, Monday Weather 10s d t Edmonton 10s V Vancouver <0 30s 20s 0s C garyy Calgary Seattle P d Portland Eugene Montreal Billings Bismarckk 30s Boise 50s 20s 50s l Helena 40s 10s p Winnipeg 20s Ottawa Pau Mpls./St.. Paul 40s T Toronto A bany bany Albany Buffalo 30s 60s A g t Augusta 40s t Boston 50s 60s rtford Hartford k Milwaukee t Detroit ew Y New Yorkk 70s Cl l d Cleve Cleveland Ch g Chic Chicago 40s Salt LLake ake City es Moines Des Reno Pittsburgh Ch y Che Cheyenne Ph hil d lphi 80s h Omaha 70s Philadelphia di p Indianapolis Sacramento Denver Kansas 90s hington hi gton D.C. DC Washington an Francisco San p Springfield 50s Topeka City 50s Charles h Charleston 100+ h d Richmond Colo C l d Colorado Las Lou L St.. Louis Lou Louisville 60s hit Wichita p g Springs Veg Vegas l igh h Raleigh 50s 50s Santa h ill Nashville Los A Angeles Ange l anta Fe C h l tt Charlotte 70s 60s Mem phi h Memphis C b Columbia Albuquerque Ph Phoenix k homa City Cit C y Oklahoma Warm Rain San Diego A Atlanta Little Rock 70s 70s 80s gh Birmingham J k Jackson T cson Tucson D Dallas Cold 80s T-storms F Worth Worth Ft. El Paso Jacksonville bil Mobile 80s 90s Austin A ti Stationary Snow Houston 20s l d Orlando ew Orleans New Tampa an Antonio A t i San 80s 30s 40s 40s oux FFalls ll Pierre Sioux 40s Honolulu l l A h Anchora Anchorage Miami 90s Showers 70s U.S. Forecasts City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. Tomorrow Hi Lo W 60 42 c 83 66 pc 60 54 pc 85 59 pc 59 52 r 53 39 pc 48 40 r 61 38 c 70 64 c 62 42 r 60 47 r 68 42 pc 44 38 r 53 39 c 61 55 sh International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 54 68 86 90 55 52 55 77 92 51 50 Today Lo W 44 pc 55 pc 60 pc 73 pc 29 s 41 pc 47 pc 52 pc 76 s 41 c 44 c Tomorrow Hi Lo W 58 45 c 66 54 sh 81 61 s 87 71 pc 57 34 s 53 45 pc 59 43 c 75 55 s 92 75 s 48 36 pc 49 36 pc City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Soon the two men seek out and draft a third aging buddy for the journey, Laurence Fishburne’s once-raunchy Mueller, who has gained gravitas, and a fleshly dimension, as the Rev. Richard Mueller. Unlike the screenplay for the original film, a zestful adaptation by Robert Towne, this script is credited to Mr. Linklater and Mr. Ponicsan. It’s often entertaining, and the actors do what they can to keep the energy flowing; Mr. Cranston works particularly hard to make Sal funny and not just insuf- Today Hi Lo W 55 40 pc 62 41 s 83 68 pc 79 70 c 61 52 pc 92 77 pc 65 52 s 86 57 s 58 51 c 66 49 pc 89 77 pc 61 43 pc 78 53 pc 61 46 s 35 27 pc 95 77 s 62 49 pc 83 70 s 89 63 s 66 50 pc 86 76 s 59 39 pc 72 49 s 86 78 c 80 60 pc 76 68 r 69 58 pc 53 35 pc 42 28 s 52 42 c 60 40 pc Tomorrow Hi Lo W 58 48 pc 61 46 sh 81 68 pc 76 68 c 59 51 r 93 77 t 64 53 s 89 58 s 54 38 r 61 45 t 87 79 c 60 42 pc 78 50 pc 58 51 sh 36 29 pc 95 77 s 60 43 c 89 73 pc 90 62 s 68 54 pc 87 76 pc 54 36 s 60 50 c 85 77 t 67 61 sh 70 66 r 68 50 pc 47 42 c 40 30 c 52 40 pc 59 41 pc 1 2 3 4 5 6 7 8 9 10 11 14 15 16 17 18 19 20 21 22 24 27 28 25 29 26 37 39 33 34 35 50 51 52 38 40 41 42 45 13 23 32 36 44 12 30 31 43 46 47 48 49 53 54 59 60 61 62 63 64 55 56 57 58 HEAD IN THE CLOUDS | By Marie Kelly The answer to this week’s contest crossword is a weather phenomenon. Across 1 Backsplash material 5 Take testimony from 11 Number of reps 14 Responsibility 15 Future seeds 16 “Mars Attacks!” sight 17 Containers with taps 18 Ruler’s stand-in 19 Foul up 20 Entertain 22 Balance precariously 24 Dish often accompanying turkey 26 “What could I have been thinking?” 27 Singer/ songwriter of 42-Across 31 Make blank 32 Simple dress style 33 Glad item 36 Fledgling’s home 37 Main impact 38 Brought into the world 39 Powdery residue 40 Attacked an attacker, say 41 Pat’s colleague 42 Popular song also called “Clouds” 44 Protection from prosecution 47 “The Assault on Reason” author 48 Napkin art 49 Warmed in the microwave 53 Primitive 54 Ferret’s cousin 58 Choral voice Email your answer—in the subject line—to email@example.com by 11:59 p.m. Eastern Time Sunday, Nov. 5. A solver selected at random will win a WSJ mug. Last week’s winner: Jay Miller, Pasadena, CA. Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. Void where prohibited. U.S. residents 18 and over only.) s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 39 29 s 38 32 pc Atlanta 79 60 pc 79 60 pc Austin 85 67 pc 84 67 pc Baltimore 76 44 pc 61 52 r Boise 55 34 sh 46 29 r Boston 70 44 c 52 47 pc Burlington 61 36 sh 49 41 c Charlotte 81 57 pc 74 57 pc Chicago 50 43 c 52 48 r Cleveland 55 39 pc 59 53 r Dallas 83 63 s 90 68 s Denver 67 46 pc 71 38 pc Detroit 53 38 pc 53 48 r Honolulu 87 77 pc 87 75 sh Houston 86 68 pc 86 69 pc Indianapolis 59 44 c 62 58 r Kansas City 54 45 c 64 53 c Las Vegas 74 57 pc 74 56 c Little Rock 79 60 t 81 65 c Los Angeles 67 60 c 67 60 c Miami 84 72 pc 85 72 s Milwaukee 47 43 pc 50 47 r Minneapolis 39 33 sn 44 40 c Nashville 75 59 sh 77 62 sh New Orleans 82 64 sh 81 63 pc New York City 72 48 pc 57 53 pc Oklahoma City 65 48 pc 81 63 pc Flurries Ice Today Hi Lo W 50 39 pc 82 65 pc 74 50 pc 83 62 pc 59 38 c 66 36 sh 50 37 sh 62 52 r 62 55 c 66 50 pc 64 54 r 66 40 s 45 34 sh 43 33 c 78 51 pc ferable, which he tends to be with his wiseguy cynicism. But the effort shows in all three performances. Spontaneity is in short supply. The comedy seems willed, the solemnity mechanical, the dialogue rhythms awkward and self-conscious. A more serious flaw emerges when Doc learns that the circumstances of his son’s heroism were not what they seemed. “Last Flag Flying” launches into denunciations of American foreign policy that are ill-advised, whether or not you agree with them, because they’re ill-dramatized—clumsily in the case of Doc, who briefly morphs into a soapbox orator, and crudely in the person of Col. Wilits (Yul Vazquez), a funeral-arrangements officer who counters Doc’s attacks with hollow slogans. What’s more, and worse, the movie addresses a good subject—the value of sustaining illusions in the face of anguishing truths—but can’t figure out where to come out on it, since the last few minutes seem to be saying that patriotic rituals can still comfort us even though we know they’re utterly hollow. After “The Last Detail” and “Last Flag Flying,” that’s the last straw. 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. 30s Steve Carell and Bryan Cranston, above, and J. Quinton Johnson, left. PUZZLE CONTEST 59 60 61 62 63 Player’s protector Irish stew staple Play group Have a go at Sudden spells of activity 64 Tony of “Veep” Down 1 White House visit 2 About 3 Alveolus site 4 Lamb, for one 5 Scratch 6 WALL-E’s love 7 Flat-nosed pooch 8 Cheer for capework 9 Conscious 10 Parsons of “Bonnie and Clyde” 11 Like mincemeat 12 Violinist Zimbalist 13 Yankees manager before Girardi 21 Hardly convincing 23 Architect’s add-on 25 Like 24-Across 26 Lively do 27 Malone of the “Hunger Games” movies 28 They need refinement 29 “I don’t mind eels/Except as meals” writer 30 What are you looking at? 33 City on the Rhine 34 River to the Ligurian Sea 35 Use one’s incisors 37 Call at home 38 Diamond edge 40 Hajjis, e.g. 41 Designer Wang 42 Foundation 43 Doughnut shop buys 44 Take on 45 Wisdom tooth, e.g. 46 Tropical tern 50 Solicitation 51 Bibliographer’s abbr. 52 Mosque feature 55 MetroCard seller 56 “___ love’s illusions I recall...” 57 Monique ou Michel Previous Puzzle’s Solution A T O P C O R E T O W N S E R I F A R E N A E T A T A R E A C O N C U S S I O N S P E T A L E L L I P A L S N O B G R I S G T C A A O P L K N E L I T I N E S O S H N T O S S E R O S S S O B E R S A R A T H O U H A A F N T D D E MA R H A MM O D A L E T D H U D A P E R U A C C WT H O A H N R S N B L A N K E D O U T B U L L A B L Y T A I G A T Y L E R O R E O S N A P T E T E 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. Friday, November 3, 2017 | A11 NY LIFE & ARTS THEATER REVIEW | By Terry Teachout Sarah Gadon as Grace. TELEVISION REVIEW | By Dorothy Rabinowitz THE ACCUSED HAS MANY FACES JEREMY DANIEL New York ZOE KAZAN, one of New York’s finest under-40 actors, is also a playwright and screenwriter of uncommon talent. “Ruby Sparks,” her first screenplay, was a romcom with a feminist edge that had something exceedingly thoughtful to say about the tendency of men to idealize women instead of accepting them as they really are. “After the Blast,” Ms. Kazan’s fourth stage play, is as thoughtful and wellmade as “Ruby Sparks,” and it pulls off the bedazzling feat of taking a hyper-politicized topic—climate change—and using it as the occasion for a taut, sermon-free drama whose true subject is, once again, the inability of men and women to see each other plain. “After the Blast” is a sciencefiction play, a dystopian fantasy set in “the near future” whose eight characters include a robot. The premise, which Ms. Kazan leaves suggestively vague, is that the surface of the earth has been laid waste by a nuclear exchange that punched more holes in the ozone layer, thus forcing a saving remnant of highly intelligent men and women to move underground while everyone else is left to starve. The male survivors, most of whom are scientists, then devote themselves to fixing the environment, while the women mostly look after them and bear their children—but only if the Council, a deceptively soft technological tyranny, decides that they should be allowed to reproduce. You get five chances to pass the motherhood test, after which your permit (so to speak) is revoked permanently. After laying out the “rules” of the play with incisive economy in a cunningly elliptical prefatory dialogue scene, Ms. Kazan introduces us to her principal characters, a married couple named Anna (Cristin Milioti) and Oliver (William Jackson Harper) who are, as he explains in the first scene, “still waiting to receive Fertility.” They have only one chance left to pass the test and become parents, for Anna suffers from a potentially disqualifying case of depression caused by JAN THIJS/NETFLIX Post-Apocalyptic Politics Cristin Milioti as Anna with the robot ‘Helper.' her inability to cope with the stresses of underground life. In order to coax Anna back to emotional health, Oliver brings home a “Helper,” a home-assistance robot that must, he tells her, be trained to interact with humans so that it can be placed in the homes of older people who are no longer capable of living alone. In the process of teaching the robot how to talk, Anna bonds with it, eventually coming to see it as a kind of foster child. I can’t say much more without giving away the secret that triggers the climax of “After the Blast,” so I’ll tell you only that in Ms. Kazan’s cramped underground world, nothing is exactly as it seems—including the marriage of Anna and Oliver. Ms. Milioti is now best known as a TV actor, but her heart-stopping performance in “Once” made it clear that she had and has the stuff of full-fledged stage stardom. She brings to “After the Blast” a disciplined yet utterly natural intensity that makes it impossible for you to look at anyone else whenever she’s on stage—although her robotic companion, who resembles a warm, fuzzy first cousin of R2-D2, is al- 75 YEARS OF AUCTIONS most as good as a flesh-and-blood child actor at stealing scenes. The rest of the cast is top-notch, and Lila Neugebauer, the director, has staged “After the Blast” with her now-familiar blend of emotional delicacy and technical deftness. Daniel Zimmerman’s set design is suitably sterile (everyone in the underground world seems to shop at IKEA). The true star of “After the Blast,” however, is its creator. At 34, Ms. Kazan has emerged as a writer of real individuality, one to whom the word “promising” no longer applies. Her youthful promise is now well and truly realized, and while I selfishly hope that she never stops acting, “After the Blast,” like “Ruby Sparks” before it, is the stuff full-time literary careers are made of. After the Blast Lincoln Center Theater, Claire Tow Theater, 150 W. 65th St. ($30), 212-239-6200, closes Nov. 19 Mr. Teachout is the Journal’s drama critic. “Billy and Me,” his new play, opens at Palm Beach Dramaworks on Dec. 8. Write to him at firstname.lastname@example.org. ‘ALIAS GRACE,” was adapted from a Margaret Atwood novel inspired by the actual story of Grace Marks, a 19th-century servant girl charged, and convicted in a famous Toronto trial, of murdering her employer and his housekeeper lover. These few facts about the case are worth keeping in mind. For there’s not much else certain about what happened to Grace, or how, in this saga, whose strengths, such as they are, include an impressive performance by Sarah Gadon, in the role of Grace, an Irish immigrant who has known only hard work and subservience in her life. Even better, there’s the sumptuous period detail of Victorian-age Toronto. These aside, it’s fairly soon clear that this is script-writing captivated by its own ambiguity—a condition in no danger of being infectious to huge numbers of the film’s viewers. Who Grace is—a victim or murderer, a conniver or traumatized innocent, a person hardened by the experience of life as a woman and a servant, or a combination of all or many of these possibilities—is a question given multiple and changing answers. The portrait of Grace that consequently emerges is, in its perverse way, that of a woman who is all. Which would work nicely as a thrust at the society that has so cruelly misused her, judged her, never seen her as other than an inferior—an immigrant, a female, a servant—capable of any evil. But it doesn’t suffice for drama or the rendering of character, whose heart an audience can sense. That capacity is left to the kindly, handsome and vulnerable Dr. Jordan (Edward Holcroft), who interviews Grace with the intention of helping her recall the events that had led to her being charged with murder. Though the doctor has treated her with exquisite sensitivity, Grace pointedly observes that he harbors strong feelings for her—sexual feelings. That recognition is a charge, sneered in silken tones. The doctor has been brought in by the justice-minded civic group working for Grace’s pardon. His job is to write a report, as a psychiatrist, that would support their efforts. But the doctor is an earnest professional, intent on extracting the facts, despite his clear feelings for Grace. His exchanges with her, his occasional jolts of shock at some unexpected detail in Grace’s soft-spoken recollections—bespeaking anything but innocence—are genuine high points in a work otherwise buried in its showy vagueness. Alias Grace Netflix, Friday IMPRESSIONIST & MODERN ART PREVIEW November 3-14, 2017 Tuesday November 14, 2017 at 5pm New York INQUIRIES +1 (212) 644 9135 email@example.com ALBERTO GIACOMETTI (1901-1966) Figurine [Femme debout au chignon] bronze with grey and brown patination 8 7/8 in (height) $500,000 - 700,000 © 2017 Alberto Giacometti Estate /Licensed by VAGA and ARS, New York International Auctioneers & Appraisers – bonhams.com/impressionist © 2017 Bonhams & Butterfields Auctioneers Corp. All rights reserved. Principal Auctioneer: Matthew Girling, NYC License No. 1236798-DCA 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 | Friday, November 3, 2017 SPORTS WORLD SERIES Chemistry Experiment Leads to Title Houston was already the most analytically driven club in baseball. And then it started paying attention to the team’s culture. “It’s a different type of game now than it was when they first came up,” McCullers said. “The younger guys have [different] personalities.” But these additions fit right in, and by the end of the season, virtually everybody could tell a story about them. It explains why McCullers called McCann “the heartbeat of the team.” Or why Luhnow said that without the presence of Beltran and McCann during a difficult slump in August, “I’m not sure we get through the same way.” In Game 3 of the World Series, Astros first baseman Yuli Gurriel made an offensive gesture after hitting a home run off Dodgers pitcher Yu Darvish, who hails from Japan. The incident sparked a controversy and threatened to fracture the team. Beltran calmed the tide, first advising Gurriel on how to handle the aftermath and then texting Darvish to smooth things over. Some Astros even credited Beltran for helping them survive the New York Yankees in the American League Championship Series. In the clubhouse after Game 5, following their third consecutive loss in the Bronx, Beltran stood up in front of his teammates and delivered an impassioned speech reminding them of their ability. Afterward, Reddick said, “I knew we were going to come back and do special things.” They did just that. “Those guys came in here and said, ‘Everyone be who you are. We’re going to support you,’” McCullers said. “You cannot put a price tag on how much those guys really meant to this team.” That influence trickled down to some of the less experienced players, resulting in a culture that almost certainly factored into the Astros’ success. For example, 23year-old third baseman Alex Bregman worked hard to learn Spanish, allowing him to communicate fluently with all of his teammates, not just the English-speaking ones. In a sport where clubhouses often divide down racial lines, Bregman’s commitment to a second language goes a long way. “He’s a bridge,” said Astros bench coach Alex Cora, who in 2018 will take over as the Boston Red Sox manager. “That’s an important thing in the clubhouse.” For sure, the Astros didn’t revolutionize the concept of caring about chemistry. The Chicago Cubs, the World Series champions in 2016, also prioritized traits they could not measure in players. Few expected the Astros to do the same. Now, however, they will parade down the streets of downtown Houston as champions. “Culture is a hard thing to really quantify,” Luhnow said. “But when you see it you know it’s there.” BY JARED DIAMOND Above, Houston third baseman Alex Bregman lifts teammate Jose Altuve after Game 7. Left, catcher Brian McCann gets high-fives. T-B: HARRY HOW, KEVORK DJANSEZIAN (GETTY IMAGES) Los Angeles DALLAS KEUCHEL debuted with the Houston Astros in 2012, the same season Jeff Luhnow assumed the role of general manager and transformed them into a team unlike any other in the major leagues. Keuchel didn’t immediately warm up to the new approach. Under Luhnow’s stewardship, the Astros developed into the industry’s most analytically driven organization, relying almost entirely on data to navigate through a full-blown rebuild. They assembled one of the largest and most sophisticated research departments in the game, filled with talent from the worlds of economics, physics and engineering. Their early adoption of the infield shift helped turn the strategy from a rarely deployed gimmick into a ubiquitous practice. They popularized the concept of “tanking”—essentially losing on purpose to stockpile prospects for the future. But for all of their bold ideas, the Astros too often forgot about one important aspect: their players. “There was a disconnect,” said Keuchel, Houston’s ace pitcher. “Every player was a number instead of a person.” This winter, Keuchel felt a change. Luhnow and his staff, who seemed to care only about quantitative elements, appeared to put genuine effort into connecting with the athletes in the clubhouse. That willingness to defy their reputation by embracing the value of chemistry and culture paid enormous dividends in 2017: The Astros won the World Series, their first since the franchise’s creation in 1962, defeating the Los Angeles Dodgers in Wednesday night’s decisive Game 7. Now, Keuchel says, “Every player is a person.” It represented a subtle, but crucial shift in the Astros’ thinking. Though numbers remain their focus, the driving force that propelled them from the bottom of the standings to the pinnacle of the baseball universe, Luhnow learned a lesson along the way: To deny the significance of chemistry ignores a critical component of the equation that equals a championship roster. “The human element of baseball is always going to be important, but so is all the science and technology,” Luhnow said. “It’s the teams that are able to appropriately blend all of that together that are going to have success. We’ve done our best to try to blend it all in a way that leads to better decisions.” Luhnow admits the Astros didn’t always do a particularly good job in that area, perhaps believing that the players would ac- cept information they didn’t necessarily understand or agree with when they saw the results. That didn’t happen, forcing Luhnow to alter his messaging. Consider the shift, for example. The Astros began using it in earnest in 2012 and 2013 but failed to explain their reasoning for leaning so heavily on such a radical tactic. “The players started to push back,” Luhnow said. So during spring training in 2014, the front office delivered a presentation to the players outlining all the statistics that justified the defensive alignment. Sharing that data bothered Luhnow. He worried about players leaving the Astros for other teams and sharing proprietary research. Ultimately, though, the desire to generate a little more harmony in the clubhouse superseded that concern. “We’re more of an open book with our players,” Luhnow said. “We tell them why as opposed to just how.” In the last offseason, Luhnow took another key step by acquiring three veteran players to join their young team: He signed Carlos Beltran and Josh Reddick as free agents, and traded for catcher Brian McCann. The moves cost money— $16 million for Beltran in 2017 and $52 million for Reddick over four seasons—and two minor-leaguers. The Astros hoped all three players would contribute on the field, of course. But just as important, they were targeted to serve as leaders and mentors for the homegrown stars. At first, the incumbent Astros didn’t know how to react to a bunch of older guys entering their locker room. Lance McCullers, a 24-year-old right-hander selected in the first round of the 2012 draft, said that, “Sometimes when you bring in veterans, it can be a terrible thing, honestly.” WORLD SERIES | By Jason Gay FOR BASEBALL, LOVE IS IN THE AIR gizing than you’d think.) We’ve seen versions of the Live Sports Proposal before, of course. Two summers ago, Chinese divers Qin Kai and He Zi got engaged right after competing at the Rio Olympics, as did Brazilian rugby player Isadora Cerulla and her girlfriend, Marjorie Enya. Probably the most famous onfield proposal was Boise State run- The Live Sports Proposal is romantic— but like any pitch, it carries some risk. ning back Ian Johnson, who popped the question to Broncos cheerleader Chrissy Popadics moments after pulling off a game-winning 2-point conversion at the Fiesta Bowl. And my pro wrestling nut editor at the Journal, Jim Chairusmi, will be furious at me if I don’t mention that John Cena successfully proposed to Nikki Bella at WrestleMania this past April. The Sports Proposal is romantic—but like any pitch, it carries some risk. A rejection would have likely put a damper on Correa’s World Series party. Imagine putting on those champagne goggles after getting a “no” on live TV. JAE C. HONG/ASSOCIATED PRESS Aw, come on, Carlos Correa, you’re making the rest of us humans look like schmucks. True story: I proposed to my wife nine years ago, on Halloween. Not exactly a romantic evening, unless you’re Dracula. I fumbled for a fake plastic diamond ring I bought for $6 bucks on St. Mark’s Place. She said yes—and has regretted it ever since. But Correa? Did you see the heart-stirring stunt he pulled Wednesday night after the Astros won the World Series? Houston was on the field at Dodger Stadium celebrating its first title in team history, when the 23-year-old shortstop turned to his girlfriend, Daniella Rodriguez, and proposed to her on live television. “Daniella Rodriguez, you make me the happiest man in the world,” Correa said. “Will you marry me?” “Oh my God!” Rodriguez exclaimed. Then they kissed the type of long kiss I only thought happened in Reese Witherspoon movies. I’m not crying! You’re crying! It was an adorable moment, clandestinely coordinated by Correa and Fox Sports reporter Ken Rosenthal. (Rosenthal has a hilarious account of the behind-thescenes of the proposal at The Athletic. Short version: Correa came to Rosenthal with the idea after Game 5—and it took more strate- Houston shortstop Carlos Correa proposed to Daniella Rodriguez after Game 7. But pro athletes are confident beings. A lot of them think they’re going to play forever. The Astros helpfully took some of the stress out of Correa’s plan, jumping to an early advantage in Game 7. In the ninth inning, Houston simply needed to hang onto a four-run lead. The groom-to-be gave Fox’s postgame panel a run-down of his final prep. “In the 9th inning, I go in the clubhouse, and I talk to the [clubhouse attendant]: ‘I don’t want to jinx it, but if we get these three outs, I need you to bring me this,’” Correa told Alex Rodriguez— whose own romantic tale with Jennifer Lopez is currently the cover story on Vanity Fair. And what if the Astros had lost? “I didn’t have a Plan B,” Correa said. What is Plan B? A sad couples dinner at the Cheesecake Factory? A weekend trip to go buy couch pillows and bath mats? Browns tickets? Love abounds with these likable Astros, who seem built to contend for years. The Houston Chronicle reported that ace pitcher Justin Verlander is set to marry his finance, the model Kate Upton, in Tuscany later this month. Tuscany! Now that’s a romantic place to get married. And the food and wine over there isn’t so bad, either. It’s wild to see all this good will and viral excitement circulating around baseball. The aging game has enjoyed a stirring renaissance lately, capped by a World Series with great teams, compelling story lines, and beefy TV ratings. Game 7 may have been anti-climactic, but it was a doozy of a Series overall, with epics in Game 2 and Game 5. Baseball’s been easy to pick on in recent years, for being too old, too stubborn, too slow. But last year the Cubs—and now the Houston Astros? This feels like a honeymoon. 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 Friday, November 3, 2017 | A13 THE WALL STREET JOURNAL. OPINION A Tale of Two Republicans Jeff Flake last week took to the Senate floor to proclaim that since he would not be POTOMAC “complicit or WATCH silent” in the By Kimberley Trump presiA. Strassel dency, he will not seek reelection. The first-term Arizona senator bemoaned that as a “traditional Republican,” he had a “narrower and narrow path” to office in this Trump world. The speech earned Mr. Flake all the plaudits you’d expect, from all the usual suspects. Conservative Never Trumpers and the media “resistance” believe the president is destroying the Republican Party, the country, democracy and the universe— in that order. Those who join in their daily denouncements of Mr. Trump receive standing ovations. Those who don’t are falsely accused, to quote Mr. Flake in his speech, of “complete and unquestioning loyalty” and duly excommunicated from “moral” conservative society. Yes, Mr. Trump is a wrecking ball; and yes, conservatives have a right and a duty to worry about the damage he may do to the Republican Party and its principles. Where the Never Trumpers err is in insisting that the only response is full-on resistance, shaming and utter denunciation. Not only is that approach simplistic, it is a proven loser. Mr. Flake is a case in point. Among elected officials, he is rivaled perhaps only by Ohio Gov. John Kasich as loudest Never Trumper. The senator doesn’t like the president’s views on trade or immigration (join the club). But like Mr. Kasich, he has rarely bothered to spell out specific areas where he disagreed with Mr. Trump, or to note the significant points of agreement (deregulation, judges, etc.). His is a blanket condemnation. In Mr. Flake’s new book, “Conscience of a Conservative,” he compares Mr. Trump’s politics to a “late-night infomercial.” This sweeping reproof was a sign to Trump supporters in Arizona that Mr. Flake either didn’t know or didn’t care why they support this president. So they wrote him off— much as he wrote off Mr. Trump. Mr. Flake was never going to get Democratic support, and once he alienated half of his state’s Republican voters, of course his path to re-election was narrow. Mr. Flake blew himself out of office, and he is now in a much poorer position to make any difference in the shape of Washington policies or the future of his party. Contrast this approach to that of Ed Gillespie, whom the Never Trumpers are branding a sellout. The longtime (traditional) Republican nearly won a Senate seat in Virginia three years ago and now is running for governor in the only Southern state Hillary Clinton carried last year. Virginia is a swing state for Republicans— much tougher than Arizona. Its voters are down on Mr. Trump, and Mr. Gillespie faces a well-funded Democratic candidate in Lt. Gov. Ralph Northam. Yet the latest polls suggest Mr. Gillespie could pull this off. He’s broadened his path to office by employing the very Ed Gillespie takes a far more constructive approach to Trump than Jeff Flake does. different strategy of attempting to navigate—and where possible, unite—the GOP’s Trump and non-Trump factions. Consider his dual approach to immigration and crime. Mr. Gillespie’s Senate campaign was a model in 2014 for its outreach to immigrants, and he is building on that now with a heavy pitch of inclusivity to minority communities. He’s released ads in Spanish and Korean and is stressing his pro-jobs agenda to the state’s growing Asian-American community. All this is crucial to the GOP’s future, reassuring to moderate voters, and utterly un-Trumpian. On the flip side, Mr. Gillespie has taken a strong line against illegal and criminal aliens. His ads accusing Mr. Northam of being soft on the international MS-13 crime gang prompted Never Trumpers to accuse him of catering to a nativist Trump base. But MS-13 has engaged in brutal murders, and is of concern to Trump voters and Northern Virginia suburbanites alike. And it is true that Mr. Northam cast a tie-breaking Virginia Senate vote in favor of sanctuary cities. On both policy and political grounds, this is a smart and reasonable way to straddle the party’s different factions. And the recognition of Trump voter concerns about illegalalien crime is likely the best means by which (traditional) Republicans give themselves the running room to push for more compassionate immigration reform for folks like the Dreamers. Which is what Mr. Flake claims he wants. The Never Trumpers are also accusing Mr. Gillespie of cowardice for failing to disown the president. Why should he? Mr. Gillespie has diligently focused his campaign on the local jobs-and-economy issues that matter most to Virginians. Beyond that, he has offered criticism of specific Trump actions and praise of others. Call them as you see them. That’s a fair approach in the age of Trump. The important part: It gives Mr. Gillespie a fighting chance—and, should he win, a powerful perch from which he can help navigate his party through the Trumpian gales. It all might not be as cathartic as an emotional Senate speech. But it will go a lot further to help conservatism survive this presidency. Write to firstname.lastname@example.org. The Real Story of the Reformation HOUSES OF This WORSHIP the week world By Eric celebrates Metaxas the 500th anniversary of an event that never happened. Well, something did happen, and it altered the course of history. But what actually took place is astoundingly different from how it is portrayed today. As the story is told, on Oct. 31, 1517, an Augustinian monk named Martin Luther socked the European church establishment in the kisser by defiantly nailing his “95 Theses” on indulgences to the door of the Castle Church in Wittenberg, Germany. The thunder of his hammer resounded throughout the world. It was as though he had stuck his finger in the pope’s eye. The document brazenly charged the Catholic Church with corruption. The corrupt powers-that-be were put on notice that the vile practice of indulgences—whereby the faithful could throw a coin in the coffer to buy their way out of purgatory or worse—must end forever. Except it never happened, at least not that way. Luther probably didn’t post his theses on the famous date celebrated each year, though he likely did within a month of the designated day. And they might never have been posted by Luther, despite five centuries of paintings depicting him doing just that. As it happens, he may have handed the document to a church custodian to post. And if Luther did post it himself, he may even have unheroically affixed it with paste. More important, posting the document on the door of the Wittenberg Castle Church was not an act of calculated defiance. That door had long served as the community bulletin board for anything and everything. For context, imagine the fabled document posted next to a flyer for a missing cat. The most important difference between how most people remember the event and what actually happened is that the 30-something monk never dreamt that history would notice what he was doing. He did not intend to be defiant or to cause trouble. And he certainly did not plan to shake the foundations of the church he loved and obediently served. The idea that this all might lead to a sundering of the church was unthinkable. If he had thought of it, it would have utterly horrified him. And the theses were written in Latin, which no one but cultural elites could understand. If there was anything provocative in what he wrote, it was only because such documents typically contained an edgy thesis or two in the hopes of instigating a robust debate. The brainy Saxon monk merely wanted to coax his fellow theologians into an academic debate on indulgences, thinking that something might be done about the troubling practice through the proper and customary channels. What happened shocked Luther more than anyone. A copy of the document was promptly delivered to Rome, where it furrowed Vatican brows and upset the papal stomach. Far worse, Luther’s well-meaning Saxon colleagues Martin Luther expected a debate on indulgences—not a reset of Christianity. quickly translated the document into German. Then they duplicated it endlessly without his permission, courtesy of a relatively new technology invented by a fellow German, Johannes Gutenberg. Suddenly everyone was reading it across Europe and debating its points. Before Luther could say “sola scriptura,” the horse had slipped out of the barn and was wildly trampling the status quo that had existed for centuries. Within four years, Luther’s written and oral responses to the growing conflagration had taken the world by storm and he arguably had become the first genuine celebrity in world history. The frothy torrent of writings that poured from his pen would make printers and publishers rich, with no royalties ever paid to him for his troubles. And his woodcut portraits reproduced like rabbits across the German landscape. The powerful ideas Luther’s writings conveyed would in time lead to virtually everything we now take for granted in the modern world. By prompting the end of Vatican hegemony, Luther opened the door for the creation of thousands of new churches under dozens of denominations, Lutheran among them. In the coming centuries, this attitude would help elevate the concepts of religious pluralism, tolerance, democracy and freedom. Who knew? Certainly not Martin Luther, whose grotesque pronouncements against the Jews near the end of his life proved that he simply did not comprehend the ramifications of what he had loosed upon the world. But by humbly raising the questions he had in 1517, and then by responding to the attacks that followed as truthfully and carefully as he could, Luther ended up cracking the great edifice of medieval Christendom in twain. And for good and for ill both, out of that opening the future itself seemed to fly. Mr. Metaxas is the author of “Martin Luther: The Man Who Rediscovered God and Changed the World,” just out from Viking Press. The Pentagon’s Vital African Mission By James Inhofe I t will take many weeks to resolve the unanswered questions about the loss of four American soldiers in Niger. But having studied U.S.Africa policy, I think one thing is abundantly clear: Our military engagements in Africa, while dangerous, are critical to national security. I’ll always remember speaking with the president of Niger shortly after 9/11, when he warned me about the extremism spreading across the continent. After meeting with the president of Uganda a few years later, I saw the brutality of the Lord’s Resistance Army long before splashy advocacy campaigns made Joseph Kony a household name. The U.S. military has aided regional forces in hunting the LRA, but Africa still has many more violent extremist groups, which makes American partnership critical. In 2007 the Pentagon created the U.S. Africa Command, better known as Africom. Its mission: to train and assist regional partners so that they will be capable of handling security threats before they become global crises. The worst possible scenario would be for multiple African countries to turn into failed states, giving terrorists a place to take root, as they did in Afghanistan before 2001. The worst scenario is failed states where terror can take root. This strategy is working. In Somalia a consortium of troops from Ethiopia, Uganda and Burundi (among others) is helping to bring stability. In the fledgling democracy of South Sudan, mired in conflict since its creation, an African Unionled regional force has joined United Nations peacekeepers, using strategies learned in a previous U.S. partnership. Mali’s instability makes American assistance to neighboring Niger a strategic imperative. But the four American deaths in Niger also underscore weaknesses that must be addressed at Africom. It is the only combatant command without dedicated troop resources. It lacks basing and strategic access: Africom’s headquarters are in Germany, and the U.S. has just one base on the entire continent, in Djibouti, limiting its ability to respond to crises in a timely manner. For years, Africom’s requests for additional resources—specifically, intelligence, surveillance and reconnaissance assets—have been repeatedly denied. While such denials aren’t unique to Africom, that its resources are already limited makes the effect on its long-term mission more severe. The troops in Niger had to rely on French jets for air support, and then the U.S. had to contract with a private company to airlift the wounded to a military hospital in Germany. Until Africom is provided stable and dedicated resources, it will continue to fall short of its potential. Still, stability on the continent has improved since Africom was established. Ethiopia, Tanzania and Ghana have enjoyed democratic transfers of power. Rwanda, which I visited two weeks ago, has experienced a renaissance under the tenure of President Paul Kagame, who led the nation out of genocide. Great progress like this will only be enhanced by President Trump. He understands that the chronic underfunding of the U.S. military during the Obama years degraded readiness and left America unprepared to fully address the most dangerous global landscape in modern history. As chairman of the Senate’s Armed Services Readiness Subcommittee, I am working with the president to get the military—including Africom— the funding it needs. Africom is vital to America’s national security, which is why legislators must make it a priority. Mr. Inhofe, a Republican, is a U.S. senator from Oklahoma. BOOKSHELF | By Melanie Kirkpatrick Disturber Of the Peace The Trials of a Scold By Jeff Biggers (Thomas Dunne, 260 pages, $26.99) A nne Royall is extolled as the first female journalist to interview a president of the United States. According to the usual telling of the story, she perched herself atop the clothes of John Quincy Adams while he was skinny dipping in the Potomac, refusing to return them until he agreed to talk to her. Adams supposedly answered Royall’s questions while treading water in the river. The tale is almost certainly apocryphal, and Royall’s biographer, Jeff Biggers, neatly debunks it in “The Trials of a Scold.” True or not, the story captures the spirit of this unconventional woman, who took up journalism late in life and then contended with some of the most powerful political and religious figures of her day. In 1891, nearly a half-century after Royall’s death, a headline in the Washington Post proclaimed: “She was a Holy Terror: Her Pen was as Venomous as a Rattlesnake’s Fangs.” What journalist, now or then, would not want to be remembered as a holy terror? Royall’s beginnings were humble. Born in Maryland in 1769, she moved with her family to the backwoods frontier of southwestern Pennsylvania. In 1782, she survived an attack by British and Seneca forces on the settlement of Hanna’s Town, Pa. She later wrote that “the present generation have scarcely any idea of the privations and trouble of settling the country. . . . I suffered all that human nature could bear, both with cold and hunger.” By the time she was 18, her family had moved to what is now West Virginia. There her mother got a job as a maid working for William Royall, a member of the gentry. William took a liking to his maid’s intelligent daughter and opened his library to her. Anne soon moved in with the much older man, and the couple eventually married. After William’s death in 1812, Anne lost most of her inheritance in a legal dispute with William’s family that left her penniless. Mr. Biggers speculates that she spent time in debtors’ prison. It was at this point in her life—widowed and destitute— that Royall set out to reinvent herself as a writer. She became an “itinerant storyteller,” Mr. Biggers writes, traveling first to the new state of Alabama, where she wrote the initial of her series of “Black Books.” These popular volumes were “informative but sardonic portraits of the elite and their denizens from Mississippi to Maine.” In an expanding nation, Royall’s incisive descriptions of American life and individual Americans from many walks of life were popular reading and a sharp contrast to the sentimental literature penned by other female writers. Her shabby demeanor, foul mouth and fearless attitude set her apart from the “respectable” women of the day and added to her notoriety. Anne Royall’s sharp tongue, shabby demeanor, fearless attitude and venomous pen set her apart from the ‘respectable’ women of her day. This was the time of the Second Great Awakening, and one of Royall’s favorite targets were evangelicals, whom she dubbed “blue skins” and “blackcoats.” Politicians were in her sights too, and she “rattled the bones of Capitol Hill,” Mr. Biggers writes, as a “whistleblower of political corruption, fraudulent land schemes, and banking scandals.” Royall’s biting portraits of public figures helped establish her reputation, but she also wrote sympathetically about the American underclass. In a dispatch from Baltimore, she described the public hanging of a black woman, excoriating the observers for their “eagerness.” “Who is said to have a soul at all,” she asked, “who can calmly stand by, and view the struggles of a fellow mortal in the pangs of such an exit?” Mr. Biggers devotes a big chunk of his book to a chapter in Royall’s life that he oversells as “The Last American Witch Trial.” In the late 1820s, Royall moved to Washington, where she took up residence on Capitol Hill. Her windows overlooked a fire station where a Presbyterian congregation held nightly prayer meetings—a violation of the separation of church and state, she believed, since the fire station was a public building. She could hear the sermons and hymn singing next door, and she shouted profanity-laced catcalls out her window. One Presbyterian complained that she called him a “damned old bald headed son of a bitch.” Royall soon found herself arrested under a federal indictment that charged her with being “an evil-disposed person and a common scold and disturber of the peace and happiness of her quiet and honest neighbors.” As the judge would explain, a common scold—communis rixatrix in Latin—was a common-law offense dating back to medieval times in England. It applied only to women, and the punishment was dunking. Royall was convicted, though spared a dunking, which the judge deemed barbaric. The trial sparked a media circus that only enhanced Royall’s celebrity. Mr. Biggers provides a detailed (if sometimes confusing) examination of the trial along with an interesting history of American women accused of being “scolds.” After the trial, Royall went back on the road and then returned to Washington to launch a newspaper. Its mission statement read: “We shall expose all and every species of political evil, and religious fraud, without fear or affection.” Mr. Biggers clearly admires his subject and can be forgiven for overstating Royall’s literary ability and political influence. He says that she offers “timely and timeless lessons” about freedom of speech and the separation of church and state. She was, he writes, a “bulwark against the entry of religious extremists into the corridors of power and education.” Perhaps so, but such claims feel a bit too grand. Royall is better understood as a minor literary figure—and a first-class American eccentric. Ms. Kirkpatrick, a former deputy editor of the Journal’s editorial page, is the author of “Thanksgiving: The Holiday at the Heart of the American Experience.” Coming in BOOKS this weekend The Mystery of President McKinley • Molly Keane’s Irish revival • When Hume met Smith • John Banville revisits Henry James • Is DNA really destiny? • Clifton Fadiman and Co. • New Sherlock Holmes adventures • & more 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. A14 | Friday, November 3, 2017 OPINION REVIEW & OUTLOOK H Half a Tax Reform ouse Republicans released their tax bill at each parent and another $300 for each “nonlong last Thursday, and we wish we could child dependent.” The credits would phase out say it repeats the Reagan reform of 1986. for married couples at $230,000 of income. Does It isn’t close. The Ways and anyone think a mid-level manA pro-growth business ager at J.P. Morgan deserves a Means draft is instead a muchneeded and pro-growth reform to raise children? plan but no growth on subsidy of business taxes marred by a The House also gradually the individual side. mess on individual taxes that makes more of the $1,600 makes that part of the code credit refundable. In other even worse than it is now. words, this will be a check in i i i the mail for those who owe nothing in taxes, The good news is that the House finally which discourages work. The family credits cost grasps the nettle of corporate-tax reform that $640 billion over 10 years in lost revenue with Barack Obama ducked and has hurt the U.S. zero growth payoff. To make up the difference, economy for years. Ways and Means cuts the top the House keeps the top personal rate at 39.6%, corporate rate to 20% from 35%, which would on top of the 3.8% ObamaCare surcharge that Remake the U.S. more competitive across the globe publicans failed to repeal. This would become (Ireland’s rate: 12.5%). The U.S. would move to the fourth tax bracket and kick in at $1 million a territorial system that taxes income where it for couples—half that for individuals—with 12%, is earned, and profits already earned overseas 25% and 35% brackets below. would be invited back at a discount: 12% for cash, This top rate is a surrender to Democratic 5% for illiquid assets. class warriors, though Republicans also fear that This should stop the run of U.S. business “in- President Trump would sandbag them. No Memversions” overseas, while making America more bers want to vote for a lower top rate and then welcoming to investment. The rate cuts would have Mr. Trump tweet that they’re “mean,” as be permanent, which means more certainty for he did on health care. This is where presidential business. Another growth boon is 100% business flightiness and lack of principle have a policy expensing for five years, which Congress would cost. Ideological surrender also gets Republicans face pressure to continue in 2023. nothing politically as Democrats are still attackThe bill also reduces the top rate to 25% on ing the House plan as a sop to the rich. “pass through” businesses that now pay at the Here and there the House plan includes some individual rate of 39.6%. This is an enormous tax good news on individual loopholes, such as elimcut, but one large wrinkle is who qualifies to pay inating the state and local deduction. The bill this rate. The draft includes complex rules to carves out an exception for property taxes, sort that out, and the trick is to treat all busi- capped at $10,000, to win over New York and nesses fairly without creating a loophole that California Republicans, if the House can hold lets doctors and consultants pay the lower rate. that cap. Another good move is a $500,000 cap Republicans should not want to defend Wall on mortgage interest for new homes, and no Street lawyers paying a lower rate than wage more tax breaks for second residences. The Realearners in Omaha. tors will go thermonuclear, but then they refused The House business cuts take place immedi- to support the House blueprint that left the deately, but one danger is that the Senate may duction untouched. phase-in the rate cuts as a way to “save” money. The overall impact of the individual tax This would give companies an incentive to delay changes is little reform but more income redisinvestment until lower rates kick in, as George tribution. The long-term damage to the tax-cutW. Bush learned the hard way in 2001 before he ting cause will also be considerable. Adding was able to fix the blunder in 2003. credits and deductions for individuals makes And speaking of phase-ins, the House would rate-cutting that much harder since the affluent repeal the death tax—six years from now. The pay the vast bulk of all income taxes. The divorce bill would immediately double the exclusion to of “pass through” and personal income rates will $10 million. But a 40% fee for kicking the bucket also make it even harder to reduce individual tax is double taxation and barely raises revenue— rates below 39.6%—ever. i i i less than 1% of Treasury’s annual haul—in part Kevin Brady and Paul Ryan, the chief House because the megarich like George Soros put their money in family foundations that let them es- tax writers, understand the weaknesses in their cape tax. Death tax repeal is among the bill’s im- plan. But the GOP is trapped in an iron cage of portant pro-growth planks, and we hope the Beltway process. The party has bowed to the class-warfare crowd that says the bill cannot Senate retains it. i i i change the distribution of who pays taxes. The The dispiriting news is on the individual side. Senate’s budget procedure allows the GOP to The House would double the standard deduction pass the package with 51 votes, but the Byrd Rule to $12,000 for individuals and $24,000 for mar- says a bill can’t add to the deficit after 10 years. ried couples. This would improve simplicity for These twin realities mean the GOP has compromillions, and it compensates for the bill’s elimi- mised with itself to water down reform. nation of the personal exemption. But nearly The pro-growth business reform is still worth half of American filers already owe no income the effort, but this assumes the plan doesn’t get taxes, and the larger deduction would make the worse as it moves through the House floor and federal fisc even more dependent on a smaller Senate. If Republicans in the upper chamber pool of taxpayers. erode the growth elements with phase-ins and This is far better than the House bill’s new more redistribution, they’ll reduce the bill’s eco“family credit,” which increases the child credit nomic impact, which will mute the political bento $1,600 from $1,000 in a forlorn attempt to ap- efits. If the GOP passes something called tax repease the income redistributionists of the right form and there are no benefits to growth and like Senators Mike Lee and Marco Rubio. The incomes, Republicans will pay the political price credit would also offer an additional $300 for in 2018 and 2020. P Mnuchin Gets His Man resident Trump on Thursday chose JeYet Mr. Trump has been telling everyone that rome Powell to run the Federal Reserve, he chose Mr. Powell over Kevin Warsh and John but the other big winner is Steven Taylor because he likes lower interest rates. Mnuchin. The Treasury SecreThis won’t help Mr. Powell’s The Senate needs to tary lobbied hard for Mr. Powtask at the Fed, especially if ell on grounds that he was markets test his fortitude. The do some vetting of more open to Administration paradox of a hawkish moneFed nominee Powell. influence than the other leadtary reputation is that it can ing candidates. This may be buy market credibility that unfair to Mr. Powell, but it sometimes allows a chairman does raise questions about Mr. Powell’s inde- to influence policy with “open mouth” operapendence and capacity for the job. tions rather than raising rates. Mr. Powell will Mr. Powell has spent more than five years on start out with a credibility deficit. the Fed’s Board of Governors, so he knows how Mr. Powell might have a more deregulatory the place works. He has few enemies, but he has bent toward financial markets than Ms. Yellen left barely a policy footprint. His speeches are has, but how much more isn’t clear. On Capitol notable for endorsing whatever official Fed pol- Hill he recently called Treasury’s white paper icy was at the time. He’s never dissented at the on financial regulation “a mixed bag.” He wants Open Market Committee (FOMC), which can be to ease the Volcker rule, which bars certain seen as loyalty to the chairman or a lack of per- trading at banks and needs a rewrite. It isn’t sonal conviction. This is especially notable in clear where Mr. Powell stands on bank capital a period when other governors and regional or regulating nonbanks. bank presidents opine on everything. Our bigger concern is Mr. Powell’s capacity This suggests that Mr. Powell’s views reflect to manage in the next financial crisis. Mr. Powthose of the monetary status quo under current ell’s years on the board have been relatively Chair Janet Yellen, and perhaps this is what calm as markets repaired themselves after the Messrs. Mnuchin and Trump want. But in that panic and recession. He missed the 2008 panic case Mr. Trump should have continued with Ms. and the quantitative-easing debates, and his Yellen, who at least has been in charge. Mr. views by all accounts mattered little to the Fed’s Powell will have to establish his authority with major decision-makers. the other FOMC Members and the Fed staff, One certainty is that the next four years will which is dominated by economists with a mone- be more volatile, especially if growth accelertary policy model that requires a firm hand to ates, interest rates rise and as the Fed shrinks supersede. its balance sheet. Mr. Powell has some experiThis means Mr. Trump is buying monetary ence in domestic financial markets but not in policy rooted in the Phillips Curve trade-off be- international currency and emerging markets. tween inflation and unemployment. Once the The combination of Mr. Powell at the Fed and economy hits full employment, in this view, the Mr. Mnuchin at Treasury isn’t exactly the finanthreat of inflation invariably looms and interest cial equivalent of SEAL Team 6. rates must rise. Sometimes people rise above their résumés, The Fed’s median view in September pro- but Mr. Powell’s blank intellectual slate warjected growth of merely 2.1%% in 2018, 2% in rants thorough Senate vetting. While a Presi2019 and 1.8% beyond. The Fed models give lit- dent deserves significant deference on his Cabitle growth credit to tax-cutting and deregula- net choices, the Fed chairman’s growing power tion. If growth surprises on the upside, the Fed over finance and even fiscal policy requires staff will want to raise rates faster than now an- more scrutiny. The markets need to see if Mr. ticipated. Powell is up to the job. LETTERS TO THE EDITOR What Should the Top Income-Tax Rate Be? Regarding your editorial “A Million-Dollar Mistake” (Oct. 28): I think the potential adverse effects on investment and risk-taking from a potential fourth income-tax bracket materially higher than 35% on adjusted gross income above $1 million could be easily mitigated by an “Alternative Maximum Tax.” The new AMT would limit combined federal income and payroll taxes to 33% of gross income with no deductions for anything. For taxpayers who actually pay a 33% effective federal tax rate, their top marginal income-tax rate would then be limited to 33%. Any added complexity can be easily handled by tax preparation software. BARRY CAROL Aberdeen, N.J. Your editorial pages ushered along the call to eliminate the deduction for state and local taxes. This will increase the effective tax rate for millions of working families who never come close to making a million dollars in a single year. And it won’t just be in blue states. Will their incentive to work harder be harmed? Eliminating this single deduction won’t generate near enough revenue to fund more “credits.” STEVE WALDE Rancho Santa Fe, Calif. Will the GOP ever learn that trying to placate the Democrats on tax reform, or any other issue, is a fool’s errand? The Democrats never will be satisfied, so why even try? If the middle class believes it is getting beneYou advocate eliminating the mort- fits from tax reform, only middlegage interest and state/local tax declass and wealthier class warriors ductions as “the better way to soak will whine that there is no millionthe rich.” To avoid hurting the middle aires’ tax. class I suggest not eliminating the When will the GOP and the presiloopholes but capping the deductions dent finally demonstrate the courage at $15,000 a year for local/state taxes of their convictions? Tax reform will and $15,000 a year for mortgage inlikely make or break the GOP in the terest. Caps would both protect the 2018 elections. Tax reform presents middle class and generate sufficient the perfect opportunity to demontax revenue to partially offset cuts in strate why the GOP is not just Demothe corporate tax. crats light. ALAN FRIEDMAN GERALD KATZ Margate, N.J. Edwards, Colo. Morningstar Ratings: A Guide, Not a Promise I strongly disagree with the assertions made in “Mutual-Fund Ratings Are Not What They Seem” (page one, Oct. 26). Your own analysis found that 5-star funds outperform 4-star funds, which outperform 3-star funds, which outperform 2-star funds, which beat 1-star funds. Similarly, your own findings on the Analyst Rating support the same conclusion—that it pointed investors toward a universe of funds that have a probability of better performance. That’s not a mirage. That’s tilting the odds of choosing a good fund in investors’ favor. The Journal also said that “while funds rated highly by the Morningstar analysts did better, the differences among the funds weren’t large.” The fact is that small differences matter over time. Our ratings don’t guarantee success—no ratings system does—but again, they tilt the odds in investors’ favor. That adds value and creates meaningful gains for investors over time. We have always said the star rating is a starting point for research and shouldn’t be the sole basis for assessing a fund. Nevertheless, some investors (or the advisers who represent them) still take a shortcut approach, which denies them the benefit of a more thorough research and fund-selection process. Our goal is to help investors achieve their financial goals. If we had reason to believe a rating wouldn’t further that mission, we wouldn’t publish it—period. If we had reason to believe investors couldn’t effectively apply a rating in practice, no matter how well intended, we wouldn’t make it available—period. We will continue to serve the interests of investors in a transparent, independent manner. KUNAL KAPOOR Chief Executive Morningstar Inc. Chicago One Generation Subsidizes Another’s Health-Care Bill Regarding Allysia Finley’s “How Democrats Learned to Love Insurance Companies” (op-ed, Oct. 31): Hidden taxes, cost shifting and federal subsidies have totally distorted the free marketplace. The Affordable Care Act narrowed the actuarial tables of the ratio in the cost of insuring a 64-yearold to a 21-year-old from six-and-ahalf (in some markets eight) to a maximum of three, creating a hidden tax on everyone under the age of 35. Perhaps this was because millennials don’t vote as often as baby boomers or maybe it was the only way that the architects of the plan could subsidize unhealthy 55- to 64-year-olds of moderate or poor income. Baby boomers don’t subsidize the higher cost of automobile insurance for young people, why should they subsidize us? As Ms. Finley points out, we make much more money than they do. We also, on average, have saved more and have greater assets. Can anyone in Washington explain to me why our kids and grandkids are subsidizing my and every other baby boomers’ health insurance? HOWARD C. MANDEL, M.D., FACOG Los Angeles Dr. Mandel is a member (unpaid) of the Los Angeles City Health Commission. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. Morningstar provides a tool for investors, not a recipe for success. Yes, there are many individual examples of 5-star funds that crash and burn. Top-performing funds are more likely to adopt investment strategies that test the limits of their style category. This results in volatility and mean reversion in performance. Advisers with overreliance on Morningstar ratings to cover their backsides could avoid adverse results with more careful research or more effective diversification of client portfolios. However, the Journal’s analysis also suggests that the best way to increase the odds of buying a fund that will generate above-average performance in the coming three years is to buy a fund rated 5 stars today; 39% of the 5-star funds in your sample were rated 4 or 5 stars three years later. PROF. PAUL BOLSTER Northeastern University Boston Rather than stargazing, I suggest a simpler approach—choose diversified index funds with low fees. That’s what I do, and all of the funds in my portfolio receive 3 and 4 stars from Morningstar. It’s elementary: Lowcost index funds outperform their peers over time due to their lower fees. CASEY MCCLINTOCK, CFA Walnut Creek, Calif. The best way for a high-performing stock or mutual fund to become a middle-performing stock or mutual fund is for a lot of people to invest in it. STEVEN MARTIN, CPA Richardson, Texas E Pluribus Unum: It’s Past Time to Drop the Hyphens Thank you, Michael Meyer, for pointing out what should be obvious (“‘What Are You?’ They Ask My Son,” op-ed, Oct. 31). Continuing to identify people as Korean-American, AfricanAmerican, Italian-American, etc., weakens what has historically been one of this country’s greatest strengths: the fact that we are all Americans. My wife and I immigrated here from the U.K. over 40 years ago and are now U.S. citizens. Our U.S.born son, who was also a U.K. citizen through his parents, gave up his U.K. citizenship when he was commissioned as a second lieutenant in the U.S. Army in 2002. I held our Colombian-born daughter in my arms at her naturalization ceremony. We do not regard ourselves as English-Americans or Colombian-Americans but simply as four proud Americans. Period. CHARLES C.J. PLATT Mattapoisett, Mass. Pepper ... And Salt THE WALL STREET JOURNAL “I’m thinking about getting the band back together.” 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. Friday, November 3, 2017 | A15 OPINION Prepare Yourself for Jihad 3.0 By Husain Haqqani JEWEL SAMAD/AFP/GETTY IMAGES T uesday’s terrorist attack in New York City, committed by an immigrant from Uzbekistan, is a reminder that radical political Islam won’t end with the recent defeat of Islamic State in Raqqa. Just as the fall of the Taliban in Afghanistan soon after 9/11 did not mark the end of al Qaeda, extremist forces in the Muslim world will continue to resuscitate themselves in other forms, in other theaters. If al Qaeda was Jihad 1.0 in our era, and ISIS was Jihad 2.0, we should now prepare for Jihad 3.0. Islamism will continue to be a U.S. national-security concern for years to come. The New York attacker, Sayfullo Saipov, did not match the standard profile of a jihadi terrorist. He was likely self-radicalized, did not overtly belong to a major terrorist group, and would not have been denied entry under President Trump’s “travel ban” due to his country of origin. In trying to re-create an Islamic state, radical Islamists draw inspiration from 14 centuries of history. It is important to understand the various Muslim “revivalist” movements, involving various degrees of violence and challenges to the global order of the time. Contemporary radicals often reach into the past to find models for organization and mobilization It is not a coincidence that al Qaeda (literally “the base”) tried to establish itself first in Sudan before finding a home in Afghanistan. Both Sudan and the Afghanistan-Pakistan border region had experienced jihad against European powers resulting in short-lived Islamic states in relatively recent times. ISIS’ choice of Syria and Iraq to declare a caliphate was also a function of the Islamist reverence for historic precedents. Damascus was the capital of the Umayyad Caliphate (661-750), The rental truck used in Tuesday’s New York attack. and Baghdad was the base of the Abbasid Caliphate (750-1258). In Sudan, Muhammad Ahmad declared himself Mahdi (“the reviver”) and established an unrecognized state from 1885-99 before being defeated by the British. The Mahdists terrorized locals, persecuted religious Radical Islamic terrorists will revive their movement. The U.S. needs to focus on defeating the ideology. minorities (notably Coptic Christians), revived the slave trade, and challenged Egypt and its protector, Britain. The death of the movement’s founder in 1885 did not mark the end of jihad. Eventually, the British defeated the Mahdists militarily with an Anglo-Egyptian force. They also used traditional religious and tribal structures and institutions to challenge Mahdist ideology. Today the Mahdists exist as a Sufi order rather than an extremist group. Similarly, the Afghanistan-Pakistan border area became the base for the jihad movement of Syed Ahmed Barelvi in 1826. Just as Osama bin Laden moved from Saudi Arabia, giving up a comfortable life, Syed Ahmed came from northeastern Indian nobility. He mobilized funds throughout the subcontinent, moved it through the hawala system, and bought arms to use against the British-aligned Sikh empire along the border of modernday Afghanistan. Although he was killed in 1831, ending his short-lived Islamic state, Syed Ahmed’s followers continued their random stabbing campaign against the British for another 70 years. Driving cars or trucks into crowds is today’s equivalent of that terrorist campaign. Eventually, the British deployed military and intelligence means to defeat the jihadists. They also discredited the terrorists’ beliefs by supporting Muslim leaders who opposed radical ideas. In the Middle East, the Ottoman Empire had less success in dealing with the Wahhabis, who fought the empire for control over the Arabian Peninsula through much of the 19th century. After creating the modern state of Saudi Arabia in 1932, the Wahhabis modified their approach to international relations, though not their theology. Al Qaeda and ISIS manifest the more radical beliefs of the Wahhabis and, though opposed by the modern state of Saudi Arabia, can be construed as a continuation of their Wahhabi teaching. The U.S. is not capable of wholescale changes to Islamic theology, nor is it in America’s purview. And portraying the contemporary struggle as a battle with Islam risks making the world’s Muslim population—1.8 billion people—Islamic State’s recruiting pool. Islam means different things to different people and has been practiced in many ways among various sects across the world and throughout time. The doctrine of jihad is open to interpretation, much like the Christian notion of “just war.” Muslims who consider Islam a religion, not a political ideology, and who pursue piety, not conquest, remain important partners for the U.S. The U.S. must re-evaluate its alliances in the Muslim world based on whether or not partners encourage extremism. Saudi Arabia’s recent avowal to teach moderation in religion, emulating the United Arab Emirates’ campaign against radical Islamism, deserves American support, as does Morocco’s decision to work with the Holocaust Memorial Museum to educate its people about the Holocaust and teach tolerance. On the other hand, Qatar’s support of the Muslim Brotherhood and Turkey’s decision to include jihadi teachings in its school curriculum indicate their support of radicalism. Above all, the U.S. must focus on defeating radical Islamist ideology, not just its periodic manifestation in terrorist attacks. Mr. Haqqani, director for South and Central Asia at the Hudson Institute in Washington, D.C., was Pakistan’s ambassador to the U.S., 2008-11. Once a Rising Star, Flint’s Mayor Faces a Recall By Jillian Kay Melchior K aren Weaver became mayor of Flint, Mich., two years ago, in the midst of the city’s water crisis. Within months she was a rising star in the Democratic Party. She hosted Hillary Clinton on a campaign visit to Flint in February 2016. President Obama came to see her that May, and in July the mayor delivered an early-evening address at the Democratic National Convention in Philadelphia. Local residents came to a town hall to complain about tainted water. Six of them ended up in jail. Back home, however, her tenure has proved controversial. Arthur Woodson, who supported her in 2015, began collecting signatures in April for a recall effort. He is one of 17 candidates running against Ms. Weaver in next Tuesday’s election. The outcome is hard to predict: The winner will be whoever gets a plurality, including the incumbent. Ms. Weaver’s administration has faced allegations—all of which she denies—of unethical behavior and police abuse. Two of her former staffers filed federal whistleblower lawsuits. Former City Administrator Natasha Henderson alleged she was fired shortly after another mayoral assistant came to her in tears and said Mayor Weaver had asked her to divert Flint’s water-crisis donations to the mayor’s own tax-exempt political fund, Caring for Flint. Former City Attorney Stacy Erwin Oakes claims the mayor fired her after “she became aware and spoke out against perceived illegal and actual illegal acts” in the mayor’s office. A judge summarily dismissed Ms. Henderson’s lawsuit; she has appealed the ruling. Another judge ordered the parties in Ms. Oakes’s case to try to negotiate a settlement. Ms. Weaver told me the accusations are false: “I have not done anything dishonest.” Last spring at a mayoral town hall on the water crisis, Flint police arrested six residents of the city, including 56-year-old Tony Palladeno Jr. and his wife. “We spoke up, we spoke out, and we got arrested for it,” Mr. Palladeno told me. He is also among Ms. Weaver’s challengers on next week’s ballot. Flint police said the arrests were for disorderly behavior and attempts to interfere with law enforcement. But no charges have been filed. “I wasn’t going to criminalize that conduct,” Genesee County’s prosecuting attorney, David Leyton, told me. “Folks came out to voice their displeasure with the water situation, and I didn’t find anything overly egregious that would lead to criminal charges.” Ms. Weaver’s critics also allege both bribery and police abuse in connection with the recall effort itself. This past summer, the mayor filed a lawsuit seeking to call off the recall and claiming petitions might have been forged or doctored. In testimony and news interviews, some Flint residents said police had come to their homes and questioned them about their pro-recall signatures. The judge in Ms. Weaver’s case asked the mayor’s attorney why Flint police officers had also been serving subpoenas in the civil suit—a task that, under Michigan statute, is the purview of either the county sheriff or civil process servers. “I can’t speak to that, judge,” the lawyer answered. “Wow,” the judge replied. “That may affect credibility issues on this case.” Two petition circulators, Lakeshia Williams and Nancy Burgher, testified amid the mayor’s case that City Administrator Sylvester Jones tried to bribe them to stop collecting signatures in support of a recall election. Mr. Jones declined my interview request, referring me to an article that quoted him as saying the claims were “just not true.” He resigned Oct. 20, citing job stress. 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 Ms. Williams told me that Flint police also tried to intimidate her. She called to complain that cops were questioning neighbors who had signed the recall petition. She was invited to the station, where an officer led her to an interrogation room, read a Miranda warning, and accused her of falsifying petitions, Ms. Williams said. “He said he was going to lock me up, and I was so scared,” Ms. Williams said, adding that she did nothing wrong. Mayor Weaver eventually dropped her lawsuit, but the Flint Police Department said it is still actively investigating whether the recall effort involved criminal fraud. A police spokesman told me Ms. Williams was read her Miranda rights “for her own protection” after she “began to say things that may ultimately implicate her in a crime for which the penalty was jail.” The spokesman added that the department has since submitted paperwork asking the county prosecutor to issue a warrant for Ms. Williams. Genesee County Clerk John Gleason told me he believes the police department’s visits to petition signers amounted to voter intimidation and harassment. “I really am beseeching the state attorney’s office to come in and give a complete and thorough review of the police department, whether their first concern was public safety or saving a political office.” Ms. Weaver would not answer specific questions about the police department. “I haven’t had the police do anything,” she told me. “There’s been nothing inappropriate that’s gone on between my office and their office.” She said under her watch Flint has improved water quality and replaced thousands of lead-tainted service pipes, put more nurses in the schools, and hired new firefighters. The recall drama is “a distraction at best,” she said. How does she explain the opposition? “I think it’s because I’m a woman, and I think it’s because I’m black.” Ms. Melchior is an editorial page writer for the Journal. William Coleman’s Legacy By Stephen Breyer A t the National Cathedral Saturday, many gathered—civil rights leaders, members of Congress, cabinet members, generals, judges, three Supreme Court justices, lawyers young and old—to celebrate the life of our friend William T. Coleman Jr. who died in March at 96. Among others, Colin Powell, Vernon Jordan and I spoke; Denyce Graves sang “Amazing Grace.” Bill Coleman was truly a “man for all seasons.” His enormous natural talents and hard work helped him become a member of the Harvard Law Review; graduate from Harvard Law School with its top award, the Fay Diploma; and become a law clerk to Justice Felix Frankfurter. Those qualities later made him a leading lawyer, a wise counselor, President Ford’s transportation secretary, a recipient of the Medal of Freedom. Yet to describe Bill simply as a lawyer and public servant would be misleading. He was an American of color who grew up at a time when that meant hardship and humiliation at the hands of a society that embraced invidious discrimination and legalized segregation. It was a world where his Philadelphia high school would disband the swim team rather than have him as a member; where he could not enter a U.S. Army officers club because of his race; where in our nation’s capital he struggled to find a restaurant where he could have lunch with his fellow Supreme Court law clerks; where, despite his prodigious abilities, he had difficulty finding an initial job—and more and much worse beside. What was Bill Coleman’s reaction? Don’t agonize, just get down to work to rid our nation of this malignant disease. His method? Use what is best about America, its commitment to equal justice under law, to end what was worst about America, its blatant racial discrimination. Bill worked directly. He helped integrate that officers club and end legal segregation in America. In a 1949 memo to Justice Frankfurter, Bill explained clearly why and how legal segregation was unconstitutional. And on the cover of Thurgood Marshall’s brief in Brown v. Board of Education, a brief that changed the course of history, is the name, among others, of William T. Coleman Jr. He also worked indirectly through his powerful example. Those who saw Bill Coleman in action would understand that racial prejudice is not simply evil but absurd. As a cabinet member, as wise counselor to many presidents and countless young lawyers, as a lawyer-statesman, who, like Henry L. Stimson, saw law as a profession “imbued with a spirit of public service,” Bill was a nonprejudiced “first.” He was dedicated to cultivating what he called in 2010 “a new generation of leaders”—leaders who both are pragmatic problem-solvers and “are firmly rooted in strong principles that underlie the greatness of the American experiment.” Bill’s life shows the new generation the way. “It is our duty,” Cicero tells us, “to honor and revere those whose lives are conspicuous for conduct in keeping with their high ethical standards and who, as true patriots, have rendered . . . efficient service to their country.” So let us contemplate the life of William T. Coleman Jr., the life of a true patriot, a good citizen, a great American. Justice Breyer is an associate justice of the U.S. Supreme Court. This article is adapted from his eulogy at the National Cathedral Oct. 28. A Deceptive New Report On Climate By Steven E. Koonin T he world’s response to climate changing under natural and human influences is best founded upon a complete portrayal of the science. The U.S. government’s Climate Science Special Report, to be released Friday, does not provide that foundation. Instead, it reinforces alarm with incomplete information and highlights the need for more-rigorous review of climate assessments. A team of some 30 authors chartered by the U.S. Global Change Research Program began work in spring 2016 on the report, “designed to be an authoritative assessment of the science of climate change.” An early draft was released for public comment in January and reviewed by the National Academies this spring. I, together with thousands of other scientists, had the opportunity to scrutinize and discuss the final draft when it was publicized in August by the New York Times. While much is right in the report, it is misleading in more than a few important places. True, the U.S. has had more heat waves in recent years—but no more than a century ago. One notable example of alarmraising is the description of sea-level rise, one of the greatest climate concerns. The report ominously notes that while global sea level rose an average 0.05 inch a year during most of the 20th century, it has risen at about twice that rate since 1993. But it fails to mention that the rate fluctuated by comparable amounts several times during the 20th century. The same research papers the report cites show that recent rates are statistically indistinguishable from peak rates earlier in the 20th century, when human influences on the climate were much smaller. The report thus misleads by omission. This isn’t the only example of highlighting a recent trend but failing to place it in complete historical context. The report’s executive summary declares that U.S. heat waves have become more common since the mid-1960s, although acknowledging the 1930s Dust Bowl as the peak period for extreme heat. Yet buried deep in the report is a figure showing that heat waves are no more frequent today than in 1900. This artifice also appeared in the government’s 2014 National Climate Assessment, which emphasized a post-1980 increase in hurricane power without discussing the longer-term record. The National Oceanic and Atmospheric Administration recently stated that it has been unable to detect any human impact on hurricanes. Such data misrepresentations violate basic scientific norms. In his celebrated 1974 “Cargo Cult” lecture, the late Richard Feynman admonished scientists to discuss objectively all the relevant evidence, even that which does not support the narrative. That’s the difference between science and advocacy. These deficiencies in the new climate report are typical of many others that set the report’s tone. Consider the different perception that results from “sea level is rising no more rapidly than it did in 1940” instead of “sea level rise has accelerated in recent decades,” or from “heat waves are no more common now than they were in 1900” versus “heat waves have become more frequent since 1960.” Both statements in each pair are true, but each alone fails to tell the full story. Several actions are warranted. First, the report should be amended to describe the history of sea-level rise, heat waves and other trends fully and accurately. Second, the government should convene a “Red/Blue” adversarial review to stress-test the entire report, as I urged in April. Critics argue such an exercise would be superfluous given the conventional review processes, and others have questioned even the minimal time and expense that would be involved. But the report’s deficiencies demonstrate why such a review is necessary. Finally, the institutions involved in the report should figure out how and why such shortcomings survived multiple rounds of review. How, for example, did the National Academies’ review committee conclude that the chapter on sea level rise “accurately reflects the current scientific literature on this topic”? The Academies building prominently displays Einstein’s dictum “one must not conceal any part of what one has recognized to be true.” Mr. Koonin was undersecretary of energy for science during President Obama’s first term and is director of the Center for Urban Science and Progress at New York University. 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 | Friday, November 3, 2017 Annual Meeting November 13–14, 2017 Washington, D.C. In a time of political tumult, the new administration in Washington is already recasting trade relations, health-care policy, tax rates, regulation and America’s role in the world. Join The Wall Street Journal as we explore these topics with key officials, industry leaders and global CEOs. Speakers include: Anne Case Kevin Hassett Mike Pence Professor, Economics and Public Affairs Chairman, White House Council Vice President of the United States Emeritus, Princeton University of Economic Advisers Wilbur L. Ross, Jr. Angus Deaton Jerry Kaplan Nobel Laureate in Economics; Adjunct Professor, Stanford University; Senior Scholar, Princeton University Author, “Humans Need Not Apply: Lawrence H. Summers A Guide to Wealth and Work in the Age President Emeritus, Harvard University; of Artificial Intelligence” U.S. Secretary of the Treasury Betsy DeVos U.S. Secretary of Education U.S. Secretary of Commerce (1999-2001) Amy Klobuchar John Ferriola U.S. Senator (D., Minn.) Chairman, President and CEO Nucor Corporation Jay Walker Founder and CEO, Upside; Chris Liddell Founder, Priceline.com; Assistant to the President and Director Founder, Library of the History of Strategic Initiatives of Human Imagination Technology and the Threat Steven Mnuchin Mark Warner of a Jobless Future" U.S. Secretary of the Treasury U.S. Senator (D., Va.) Martin Ford Author, "Rise of the Robots: CEO Council membership is by invitation. Learn more at CEOCouncil.wsj.com Proudly supported by: © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5125 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: SILICON VALLEY AT CRITICAL POINT IN CHINA B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2579.85 À 0.02% S&P FIN À 0.86% THE WALL STREET JOURNAL. * * * ** S&P IT À 0.11% DJ TRANS g 0.06% WSJ $ IDX g 0.04% Friday, November 3, 2017 | B1 LIBOR 3M 1.391 NIKKEI 22539.12 À 0.53% See more at WSJMarkets.com Apple Shows Greatest Strength in Years China, iPhone demand drive profit up 19%; revenue advances for fourth straight period BY TRIPP MICKLE Apple Inc. delivered its best quarterly growth in two years with strong sales in all of its key products and a rebound in the critical China market as it prepares to start shipping its most important new iPhone model in a decade. Demand for the iPhone, which accounts for about twothirds of total sales, along with an upturn in sales of Mac computers and iPad tablets helped Apple deliver its fourth-consecutive quarterly increase in revenue and third quarterly increase in profit, which rose 19% to $10.71 billion. Shipments of the iPhone rose 2.6% from a year earlier to 46.7 million units, and China sales rose for the first time since early 2016. Consistent revenue gains, combined with anticipation for a jump in iPhone sales in 2018, have helped send Apple’s stock up about 50% over the past year through Thursday’s close and pushed its market value to over $860 billion, after a steep decline in 2016 because of weak China revenue and iPhone 6s sales. Shares rose about 3% in after-hours trading. Questions remain about Apple’s immediate future. The iPhone 8 and 8 Plus, which started shipping to customers Sept. 22, had the weakest initial sales of any new iPhone in years, according to estimates by market-research firms. The iPhone X, which ships Friday and features facial recognition and an edge-to-edge display, has been dogged by production challenges that delayed manufacturing at least one month and hounded by questions about its $999 price tag. Customers who ordered iPhone Xs online in advance of Friday were told there would be long shipping delays. Apple Chief Executive Tim Cook said the two iPhone 8s have outsold other models since shipping but added that he never expected sales to exceed initial sales of last year’s iPhone 7 and 7 Plus because it is releasing three phones this year. He said that Apple had earlier planned to release the iPhone X even later than Nov. 2, but decided to “be very bold and do it sooner.” He declined to offer specifics. Mr. Cook acknowledged Please see APPLE page B2 –20 Heard on the Street: iPad and Mac also supply help............B12 Note: Fiscal year ended Sept. 30 Source: the company Comeback Trail After a downturn in 2016, Apple reported its fourth straight quarter of revenue growth. Change from previous year: 30% 4th quarter $52.58B ▲12% 20 10 0 –10 FY2014 ’15 ’16 ’17 THE WALL STREET JOURNAL. ELAINE THOMPSON/ASSOCIATED PRESS; COLIN E. BRALEY/ASSOCIATED PRESS (INSET) Venezuela Courts Showdown On Bonds BY JULIE WERNAU AND ANATOLY KURMANAEV A backlash over player protests doesn’t appear to have hurt TV ratings. NFL Ratings Culprit: Too Much Football Media executives are rallying around an explanation for the National Football League’s declining TV ratings: too much football available in too many places. By Joe Flint, Alexandra Bruell and Amol Sharma Total NFL ratings through the first seven weeks have declined 5% compared with last year and about 15% versus the same stretch in 2015, which was a very strong season for the league. The league’s aggressive media strategy in recent years has led to a flurry of new offerings: an increase of Thursday night games; games available on Verizon mobile phones and Amazon’s streaming service; highlights on the NFL-owned cable channel RedZone and socialmedia platforms; and full-game replays on an NFL subscription service called GamePass. The fear among TV executives is that this has backfired, devaluing the programming. “I think there’s a question mark for the NFL, which is just to think hard about how they are licensing,” James Murdoch, chief executive officer of 21st Century Fox, said at a confer- Anthem Effect (or Noneffect) Except for a blip in Week 2, viewership of NFL games in ‘red states’ hasn't declined more than in ‘blue states.’ Both categories of states have retained about the same audience from Week 1 of this year. Change from a year earlier in share of TVs tuning to NFL games for minimum of 10 minutes a week Red states 0% –5 Percentage of Week 1 audience* retained (2017) 100% 95 –10 90 –15 September 23-24 Trump tweeted for Americans to refuse to attend NFL games –20 –25 Week 1 2 3 4 5 6 7 85 80 Week 1 2 3 4 5 6 7 *Audience is TV screens tuned to NFL for at least 10 min per week. Note: Red states are deﬁned as those carried by President THE WALL STREET JOURNAL. Donald Trump in the 2016 election. Source: Samba TV ence last week. The Fox network carries Sunday afternoon games. 21st Century Fox shares common ownership with Wall Street Journal parent News Corp. If the ratings erosion continues, media executives could pressure the league for better economic terms, but they won’t get a shot for a while. Most of the league’s major TV contracts don’t come up for renewal for four or five years. Collectively, major media part- STREETWISE | By James Mackintosh What Martin Luther Says About Capitalism Five centuries ago this week, Martin Luther started the Protestant Reformation by hammering his 95 theses to a church door in Wittenberg, Germany. His legacy raises questions that resonate for investors today: Can Communist China become a rich country? And does the political swing toward populism threaten economic growth? Luther matters to investors not because of the religion he founded, but because of the cultural impact of chal- Blue states lenging the Catholic Church’s grip on society. By ushering in what Edmund Phelps, the Nobel-winning director of Columbia University’s Center on Capitalism and Society, calls “the age of the individual,” Luther laid the groundwork for capitalism. The question is, does capitalism needs individualism? Sociologist Max Weber popularized a supposed link between Protestantism and “the spirit of capitalism” at the start of the 20th century, noting that after the Reformation, Protestant countries in Northern Europe grew Please see STREET page B10 ners spend about $7.3 billion a year on NFL rights. Other theories abound about what could be contributing to the decline, from frustration with the pace of games and the lack of compelling story lines to the overall pressure on traditional TV viewing as consumers drop cable packages in favor of digital services. Another theory is that the controversy over players pro- INSIDE testing during the national anthem has turned off viewers. That is the argument of NFL sponsor Papa John’s, for example, which said Wednesday that the league’s lower ratings have reduced the T-Mobile, Sprint Revive Talks BY RYAN KNUTSON AND DANA MATTIOLI TRUMP-BACKER MERCER QUITS HELM AT FUND FINANCE, B10 TWITTER LOSES TRUMP FOR 11 MINUTES SOCIAL MEDIA, B4 pizza chain’s advertising exposure and hurt its sales. Industry executives expect that a boycott of NFL games by fans upset over the protests would show up as a larger viewing decline in “red states”—those carried in the 2016 election by President Donald Trump, who has lambasted players on social media for kneeling during the anthem to protest racial and social injustice. A recent HBO Real Sports/ Marist poll showed that 84% of Trump supporters believe the NFL should require players to stand for the anthem; only 27% of Democrats hold that view. Yet there is no evidence of a significant red-state boycott, according to data compiled for The Wall Street Journal by measurement firm Samba TV, which analyzes data from 13.5 m i l l i o n smart TVs across the country. Through seven weeks, the share of TVs tuning in to NFL games was down 8.7%, on averPlease see NFL page B2 Venezuela’s president said the cash-strapped South American country will seek to restructure its debt, raising the prospect of a showdown with bondholders that could be complicated by U.S. sanctions on key members of the Venezuelan administration. In a televised address late Thursday, President Nicolás Maduro announced plans to make a $1.1 billion principal payment Friday for a bond issued by state-owned oil company Petróleos de Venezuela, SA that was due Nov. 2. “We will continue to meet our obligations,” Mr. Maduro said. He added that following Friday’s payment, he would seek a voluntary restructuring of the country’s remaining debt. Estimates of Venezuela’s total outstanding debt vary, with some analysts putting the figure between $100 billion and $150 billion. The development follows years of increasingly restricted financing options for Venezuela. In August, President Donald Trump issued an executive order prohibiting U.S. institutions from trading new bonds that would serve to help finance Mr. Maduro’s government, a move aimed at punishing the regime for what the Trump administration called human-rights abuses and state-led corruption. The sanctions also could make a debt restructuring difficult or even impossible, according to some sovereign debt restructuring attorneys, because they restrict bondholders’ dealings with Venezuelan officials. Venezuela has many and varied creditors who are likely to scramble for limited assets in complicated legal battles in the event of a restructuring or default, some of the attorneys said. T-Mobile US Inc. and Sprint Corp. are working to salvage their potential blockbuster merger, people familiar with the matter said, days after Sprint Chairman Masayoshi Son appeared to call off the talks. T-Mobile made a revised offer, which Sprint is considering, some of the people said. Terms of the new offer were unclear. The two sides could reach a deal within weeks, the people said, but the companies could still fail to agree on deal terms. T-Mobile Chief Executive John Legere spoke with Sprint chief Marcelo Claure on Wednesday, after a T-Mobile board meeting in New York where directors agreed to re- new their overtures to Sprint to keep the deal alive, one of the people said. Mr. Legere conveyed to Mr. Claure that TMobile and its parent company, Germany’s Deutsche Telekom Key to discussions is how much clout Sprint’s Masayoshi Son would have. AG, didn’t want the deal to fall apart, this person said. Sprint’s board discussed the situation at a meeting Thursday, the people said. Key to the discussions are Sprint’s valuation and how much influ- ence Mr. Son would have over the direction of the combined company. Under the previous deal structure, Deutsche Telekom would have fully controlled the merged firm, and Mr. Son’s influence would have been commensurate with SoftBank Group Corp.’s minority stake. Mr. Son runs Japan’s SoftBank, Sprint’s parent company. Last Friday, Mr. Son decided to call off the talks after determining that Sprint is too important of a strategic asset to give up control. Mr. Son believes millions of devices, including robots, will one day be connected to wireless networks. On Thursday, Sprint shares closed at $6.43 a share, giving the company a market value of $25.7 billion. T-Mobile has a nearly $50 billion market value. 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 | Friday, November 3, 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. B Baidu ........................... B3 Blue Apron Holdings ............................. B5,B11 Boeing ......................... B6 Bombardier..................B6 BP................................B6 British American Tobacco ................... B12 C Carlyle Group..............A6 Charter Communications .....................................B5 China Hualian International Trade B10 CHMT Peaceful Development Asia Property..................B10 Citigroup......................B2 CK Asset Holdings....B10 CK Hutchison Holdings ...................................B10 Coca-Cola...................B12 Condé Nast..................B3 Credit Suisse.............B10 DHL..............................B4 Discovery Communications.......B5 Dow Chemical.............B6 DowDuPont.................B6 P Papa John's International.............B1 PG&E...........................A2 PulteGroup................B11 E Q Elliott Management ... B3 Qualcomm...................B3 F R Facebook..............B4,B11 Fiat Chrysler Automobiles ............. B4 Forrester Research.....B4 Royal Bank of Scotland Group.......................B12 Royal Dutch Shell.......B6 H HNA Group................B11 Home Depot..............B11 I Inspire Investing.......B12 Interpublic Group........B2 J Jarden..........................B3 JPMorgan Chase.........B2 K Krishna Memani ....... B11 L Lennar ....................... B11 Lloyds Banking Group ...................................B12 Lowe's.......................B11 M Marsh & McLennan ..B10 MetLife........................B2 Microsoft ............. B4,B12 Mitsui Home...............A1 D N Deutsche Post.............B4 Deutsche Telekom......B1 Newell Brands.....B3,B11 NXP Semiconductors..B3 S Samsung Electronics..B2 Scripps Networks Interactive.................B5 Shire..........................B12 SoftBank Group..........B1 Spencer Stuart............B3 Sprint .......................... B1 Starbucks....................B6 State Street................B3 T Tencent Holdings........B3 Tesla............................B3 Teva Pharmaceutical .. B6 The9.............................B3 T-Mobile US................B1 Total ............................ B6 21st Century Fox........B1 Twitter ........................ B4 U UBS Group...........B3,B10 Unilever.......................B6 W Waymo........................B4 Wells Fargo.................A4 WPP.............................B2 INDEX TO PEOPLE A G Abbasi, Yousef..........B11 Grant, R.J..................B11 S B H Salzberg, Matt............B5 Breen, Ed.....................B6 Brenner, Andrew.......B11 Howie, Fraser............B10 C Kipman, Alex...............B4 Cheng, Raymond.......B10 Chin, Henry...............B10 Cook, Tim....................B1 Corbat, Michael...........B2 L V Lazarus, Mark.............B2 Vogel, Jim.................B11 D Dell, Michael..............M2 Drinkwater, Carrie......B2 Duperreault, Brian ........................... B10,B12 Ryvicker, Marci...........B5 K T Thiam, Tidjane..........B10 Tsai, Joe......................B3 M-N W McManus, Sean..........B2 Mercer, Robert..........B10 Mulvihill, Michael.......B2 Murdoch, James ......... B1 Musk, Elon..................B3 Noto, Anthony............B4 Wada, Takashi ............ B4 F P-R Frazier, Michael .......... B2 Pathak, Tarun..............B2 APPLE Z Zhang, Daniel..............B3 Zhang, Wenbin..........B10 Zuckerberg, Mark ....... B4 said increased unit shipments by a double-digit percentage. Tarun Pathak, Counterpoint’s associate director, said he expects demand for the X model among China’s 100 million iPhone users to be strong enough to lift volumes and sales in the quarters ahead. Supply-chain issues have caused analysts to slash iPhone X sales projections for the critical holiday sales period this year. Market-research firm Strategy Analytics cut its projections to fewer than 30 million units from 60 million earlier this year. While some investors worry the delay could lead some Apple customers to buy a lesscostly $699 iPhone 8 or $549 iPhone 7, few said they fear Apple will lose sales to rivals such as Samsung Electronics Co. About 95% of iPhone owners who plan to buy a new device say they will buy another iPhone, according to UBS. Apple’s services business— which includes the App Store and its music and payment services—delivered another strong quarter of double-digit growth, surging 34% to $8.5 billion. Mr. Cook said the company now has 210 million subscriptions to Apple and thirdparty services, an increase of 25 million over the past 90 days. Apple typically collects a 15% fee on subscriptions for products such as Netflix and HBO if users sign up through its App Store. For its fiscal fourth quarter ended Sept. 30, Apple’s revenue rose 12% to $52.58 billion, and per-share profit jumped 24% to $2.07 a share from $1.67 a share in the same period a year earlier. Analysts polled by Thomson Reuters had expected earnings of $1.87 a share. Annual revenue rose 6% in the latest fiscal year to $229.23 billion. RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS Continued from the prior page that Apple’s approach this year has brought challenges. “Having three models is new,” he said in an interview. “The staggered launch is new. There’s a lot of firsts here. So yes, it is complex [to forecast] and we don’t profess to be able to do it perfectly.” Still, he said orders for the iPhone X are “very strong” and that Apple is making headway on production. “The ramp, especially considering how advanced the product is, is going well,” Mr. Cook said. “Obviously, if it wasn’t, we wouldn’t be able to guide” for record revenue for the current quarter. Apple expects revenue of $84 billion to $87 billion in the current quarter, far above the company’s previous record of $78.35 billion in the final three months of 2016. “Apple has moved past that funk,” said Michael Frazier, president of Bedell Frazier Investment Counselling, which manages about $500 million and counts Apple among its largest holdings. “Things are back on track.” China has posed the biggest test for Apple. The iPhone, which surged in sales in 2015 and 2016 behind the iPhone 6, declined in market share during the September quarter to 8.5% from 10% a year earlier as low-cost Chinese smartphone makers gained, according to Counterpoint Research. Still, revenue from Greater China—which had declined each of the previous six quarters—rose 12% in the latest period to $9.8 billion. Mr. Cook said Apple increased its market share for products including the iPhone, which he Y York, Jed ..................... B2 Shipments of the iPhone rose 2.6% in the most recent quarter. YURI GRIPAS/REUTERS A Advance Publications.B3 Airbus..........................B6 Alibaba Group Holding .....................................B3 Alphabet......................B4 American International Group...............B10,B12 Apple.........A4,B1,B4,B12 AutoNation ................. B4 Avis Budget Group.....B4 From left, Canada’s Chrystia Freeland, the U.S.’s Robert Lighthizer and Mexico’s Guajardo Villarreal at a Nafta press event in October. U.S. Banks Seek Nafta Data Rule BY VIPAL MONGA AND TELIS DEMOS As talks on a new North American Free Trade Agreement heat up over auto parts and agriculture, U.S. financial firms are quietly pushing for another, less tangible change: the free movement of data across borders. A proposal, presented by the U.S. at Nafta renegotiations in September, would keep any government in the new trade pact from demanding banks or insurers store customer data on local servers, say people familiar with the text. It is a long-coveted goal for financial firms, who say this could potentially save them millions of dollars in technology-storage costs. Firms such as Citigroup Inc., J.P. Morgan Chase & Co. and MetLife Inc. are among those behind the push. They say it is pricey to comply with data rules in countries where they operate because of requirements to maintain servers within each country’s borders for privacy and other reasons. They also worry about potential risks in countries where protection against hacking might be less robust, firms say. “For the financial services industries, data flow commitments really are a must-have in NFL Continued from the prior page age, in the “red states” while in blue states viewing was down 10%. In Week 2, the red-state decline outstripped the blue-state decline considerably. But when Mr. Trump started tweeting his displeasure about the protests in Week 3, the NFL had its best year-over-year ratings performance of the season, and the red states were down just 1%. In the ensuing weeks the red and blue-state declines were generally even. “The anthem protests have been less a factor than some people have claimed,” said Michael Mulvihill, executive vice president of research at Fox. “Even though [Mr. Trump] elevated the issue, you haven’t seen a negative impact.” The ratings declines haven’t hurt all networks equally. The Sunday afternoon packages on Fox and CBS are taking the biggest hit while NBC’s Sunday night package is down slightly. Monday Night Football on ESPN and Thursday Night Football, which is shared by CBS, NBC and the NFL Network, are both up. Fox and CBS executives believe the Thursday night games have diminished interest in Sunday contests. “I do think it’s clear that adding 10 games to the Thursday night package and two additional Sunday morning London games has clearly diluted the Sunday afternoon packages and affected the ratings. It’s just simple mathematics,” said CBS Sports Chairman Sean McManus. ESPN pushed the NFL for better games and this season its audience is up about 5% year-over-year. NBC Sports Chairman Mark Lazarus said the NFL’s rush to get highlights online is equivalent to providing “Cliffs Notes” to the games. “We’re enabling fans to keep up and follow the game without watching the Privacy Differences Cause Confusion Currently, the rules that govern privacy in the Nafta countries diverge widely, causing confusion among some financial services firms. Some parts of Canada’s Bank Act, which regulates the industry, and guidelines issued by the Office of the Superintendent of Financial Institutions could be interpreted to require firms to keep their books and records in the country. Laws in some Mexican states say customers have the right to block access to data by third parties, which banks say can inhibit movement of information within organizations. The push for free data flows goes back to the Trans-Pacific Partnership trade deal, negotiated by the Obama administration, which excluded financial services from a provision allow- ing U.S. companies to store their data anywhere they pleased. Following an intense push by banking groups, Obama administration trade officials agreed to try to include banks in future agreements. After President Donald Trump abandoned the TPP, administration officials have told industry groups that they would continue the push for unrestricted data movement in its new trade negotiations. —Vipal Monga and Telis Demos Nafta,” said Steve Simchak, director of international affairs for the American Insurance Association, a trade group that represents 320 U.S. insurers. Getting free flow of data enshrined in the pact would not only affect data between the U.S., Canada and Mexico, it would create a template for future trade deals that could include more jurisdictions. The Trump administration has backed bilateral trade agreements with Asia-Pacific countries and with the U.K. when the country completes a planned separation from the European Union. Banks and insurers today operate data centers in dozens of countries, and often must call on local offices even when deals are being negotiated in hubs such as New York, London and Singapore, slowing down transactions. “These are global companies,” said Peter Matheson, managing director at the U.S. Securities Industry and Financial Markets Association trade group. He said negotiators today need to consider technological advances that didn’t exist when Nafta went into effect: “There were no such things as clouds in 1994.” For Citigroup, which already operates 20 regional data centers, guaranteeing free flow of cross-border data means the bank could avoid building more. Indonesia, for example, has sought to require banks to onshore both their data centers and backups, Citigroup said in a letter to the U.S. Trade Representative on a separate matter. Citigroup Chief Executive Michael Corbat has been outspoken on data issues, and has in the past discussed localization requirements with Indonesian officials, people familiar with those talks said. “The movement of data is no less important to the global economy than the movement of money,” Mr. Corbat said in 2014 speech in Barcelona. Banks say local data storage can cost them millions of dollars in hardware and software costs and the labor required for local offices, say people familiar with the industry. —William Mauldin contributed to this article. Losing Streak Overall NFL ratings are down, and some networks have fared worse than others Change in viewership for football telecasts –20% –15 –10 –5 0 5 2016 NBC Sunday Night 2017 CBS Sunday afternoon Fox Sunday afternoon Thursday night* ESPN Monday Night Football –20% –15 –10 –5 0 5 *Thursday games are split up among CBS, NBC and NFL Network Source: Nielsen data from networks THE WALL STREET JOURNAL. telecast,” Mr. Lazarus said. Brian Rolapp, the NFL’s chief media and business officer, said, “We are always looking at how do you strike that balance between availability of games and exposure of teams to a national audience and a scarcity of windows.” Mr. Rolapp disputed the notion that the NFL was hurting its TV partners by putting more highlights online and through its RedZone channel. “We try not to let the conventional way of thinking limit the innovation we need for the long term,” he said. Mr. Lazarus of NBC said he doesn’t rule out the anthem protests playing a role in the viewership decline. NBC has begun its own red-state and blue-state ratings analysis. “If you see the divisiveness and the public debate, it’s hard to discount that some people have said, ‘I’m frustrated with this and I’m turning away.’ It’s unfortunate,” he said. While the NFL is still prime real estate for advertisers, property values aren’t rising as fast as before. The cost of NFL commercial space increased about 6% to 7% this year in the “upfront” marketplace, the spring bazaar when the lion’s share of ad space is sold, according to media buyers. Typi- cally, NFL ad prices jump closer to 10% each year in the upfront. “They definitely priced it to make it more advertiserfriendly than they have in years past,” said Carrie Drinkwater, a senior executive at Interpublic Group of Cos.’ Mediahub. Ad spending on the NFL was still up 2% year-over-year in September to $513 million, according to research firm Standard Media Index. That is below the mark of $527 million in 2015. Lyle Schwartz, North America president of investment at WPP-owned media buyer GroupM, said he is concerned about the political nature of the anthem controversy. There is also “far more content than ever before across more devices,” which could be creating a general “malaise” around live sports content, he said. The NFL also counters that while ratings are down, the sport still is the strongest programming on television. NFL games account for 18 of the 20 most-watched television shows this season. “The NFL is holding much stronger than anything else,” said San Francisco 49ers Chief Executive Jed York. “We’re in the middle of a shift of how people consume media.” —Andrew Beaton and Keach Hagey contributed to this article. BY THE TIME TOMORROW’S PAPER COMES OUT, YOUR DONATIONS WILL HAVE HELPED PEOPLE EARN NEW JOBS. DONATE STUFF. CREATE JOBS. TO FIND YOUR NEAREST DONATION CENTER, GO TO GOODWILL.ORG 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. Friday, November 3, 2017 | B3 BUSINESS NEWS Tesla Sets Timeline For Plant In China BY TIM HIGGINS Tesla Inc. indicated that it plans to make cars and sportutility vehicles in China in about three years as part of a bid to make the pricey electric vehicles more appealing to local buyers. Chief Executive Elon Musk laid out the timeline Wednesday during a conference call with analysts, saying he doesn’t expect significant investment in a China factory until 2019. The Silicon Valley auto maker has been vague about its efforts to set up a factory in China beyond a statement that it was exploring the possibility with the city of Shanghai and aimed to announce its plans by year’s end. The Wall Street Journal reported last month that the car maker had reached an agreement to set up its own manufacturing facility in the city’s free-trade zone. Such an agreement would be a milestone for a U.S. company operating in China, giving Tesla a first-of-its-kind arrangement and a way around forming a partnership with a local company. Foreign auto makers that Alibaba’s Profit Climbs Sharply E-commerce company mines consumer data to more than double its quarterly earnings BY LIZA LIN AND MARIA ARMENTAL Alibaba Group Holding Ltd.’s profit more than doubled in a blockbuster second quarter, as the Chinese e-commerce company leveraged its trove of consumer data to drive spending and attract more online advertising. The company, whose Taobao and Tmall websites are China’s most popular e-commerce sites, said revenue in the fiscal quarter ended Sept. 30 surged 61% from a year earlier to 55.1 billion yuan ($8.3 billion). Higher consumer spending and online advertising on the company’s internet retail platforms helped drive revenue higher, Alibaba said. Revenue from the core commerce unit rose 63% to 46.5 billion yuan, as Alibaba used its consumer databank to personalize buyer home pages to encourage purchases. Having started as an internet marketplace 18 years ago to connect buyers and sellers, Alibaba has since moved beyond its traditional e-commerce business into areas such as digital content, cloud computing and logistics as it taps into rising incomes among China’s consumers. The company also expanded further into consumer categories such as groceries in the past year, helping the firm’s sales growth outstrip an overall e-commerce sales boom in China. Alibaba said net income rose 132% to 17.7 billion yuan, compared with 7.6 billion yuan a year earlier. “I’m very optimistic that China will continue to experience real income growth for years to come,” said Joe Tsai, vice chairman, in a call with investors Thursday. “This long-term secular trend bodes well for Alibaba.” Alibaba, which owns stakes in several brick-and-mortar store chains, is seeking to expand its physical store business in China at the same time American retailers have been closing stores at a record pace. It has introduced franchised convenience stores and supermarkets that allow customers to order through their mobile phones and receive deliveries within the hour. “Our goal is to help the whole retail world be upgraded into a whole digital operation,” said Daniel Zhang, the chief executive. Alibaba said last month it would spend more than $15 billion on research and development in areas such as data analytics, quantum computing and machine learning. On Thursday, Alibaba raised its revenue-growth guidance for the fiscal year to between Sales Boost Alibaba’s quarterly revenue 55.1B ▲61% 60 billion Chinese yuan 50 40 30 20 10 0 2015 ’16 ’17 55.1 billion yuan = $8.3 billion Source: S&P Capital IQ THE WALL STREET JOURNAL. 49% and 53%. The increase, up from a previous forecast of 45% to 49%, takes into account sales by former affiliate Cainiao Smart Logistics Network Ltd., of which Alibaba gained majority control at the end of Minorities, Women Advance in Boardroom BY JOANN S. LUBLIN RON ANTONELLI/BLOOMBERG NEWS CEO Elon Musk said big investment in a China factory isn’t likely until 2019. currently build vehicles in China do so through joint ventures with local manufacturers, allowing the foreign companies to avoid a 25% tariff on autos while also forcing them to share profits and technology. Tesla has been reluctant to forge a local partnership. It is unclear whether Tesla’s plans will allow it to avoid the tariffs. Local analysts are skeptical that China will give Tesla a break on the tax. But by building a wholly owned factory in a free-trade zone, Tesla could significantly cut its production costs—and lofty sales prices. It could also help the company build goodwill among government officials, analysts say. It generally takes several years for auto makers to build a large manufacturing plant. Even with tariffs that make the least-costly Model S roughly 50% more expensive in China than in the U.S., Tesla’s sales in the country have surged in recent years. The auto maker’s revenue in China rose to more than $1 billion last year, from $319 million in 2015, representing about 15% of total revenue and making the country the company’s second-largest market. Mr. Musk said that a China factory, with a capacity of at least 200,000 vehicles, would build the Model 3, a $35,000 sedan aimed at a broader market than the more expensive Model S and coming Model Y compact sport-utility vehicle. “It’s really the only way to make the cars affordable in China,” he said. On Wednesday, Tesla reported its worst financial quarter to date and warned of delays in building the company’s Model 3 car. September. Alibaba said its cloud-computing business revenue increased 99% to three billion yuan. The unit, which is expanding its presence this year in international markets such as Malaysia and India, is currently unprofitable. Sales from Alibaba’s digitalmedia and entertainment division, which includes mobile browser UCWeb, videostreaming site Youku Tudou and Alibaba Pictures Group, rose 33% to 4.8 billion yuan. Still, the unit might experience wider losses in the near term as Tencent Holdings Ltd. and Baidu Inc. intensify competition for viewers, according to analysts at Morgan Stanley. In a separate statement Thursday, game developer The9 Ltd. said Alibaba would exclusively publish its mobile version of online shooting game “CrossFire” in China, marking Alibaba’s first significant entry into Tencent’s games stronghold. Doctors perform a stent procedure. About 500,000 stents are implanted for stable angina each year world-wide, U.K. researchers say. Study Questions Some Stent Use BY PETER LOFTUS A new study raised questions about the benefits of a relatively common procedure for heart patients—implanting tiny devices that prop open clogged arteries to relieve chest pain. The 200-patient study conducted by U.K. researchers found that patients with stable chest pain, or angina, who received stent devices experienced no significant improvement in exercise time on a treadmill, compared with similar patients who received no stents during sham procedures. All patients had received intensive treatment with heart drugs for six weeks before the real or fake procedures. “Symptoms didn’t improve as much as expected” in the patients who received stents, Rasha Al-Lamee, an interventional cardiologist at Imperial College London and one of the study’s lead investigators, said in an interview. She presented results of the study at the Transcatheter Cardiovascular Therapeutics medical conference in Denver; results were simultaneously published online Thursday by the Lancet. Dr. Al-Lamee cautioned that the findings apply to a minority of the population of patients who now receive stents, those with narrowing of only one artery and certain other characteristics. She said the study doesn’t apply to patients having heart attacks, who may benefit from stents, and to patients with chest pain who have disease in more than one artery. The study also found that stents improved blood supply to the heart versus placebo, she said. Still, the study could affect a portion of a multibillion business for stent manufacturers including Medtronic PLC, Abbott Laboratories and Boston Scientific Corp. About 500,000 stents are implanted for stable angina each year world-wide, the study’s researchers wrote in the Lancet. Abbott spokesman Jonathon Hamilton said the new study had patients with mild disease “who weren’t reflective of patients who typically undergo stenting procedures,” and that some patients received stents in the trial who wouldn’t have gotten them otherwise because of the study design. Medtronic and Boston Scientific referred questions about the study to a statement issued Thursday by the Society for Cardiovascular Angiography and Interventions, whose members include cardiologists who perform stent procedures. The SCAI said it questioned the study’s conclusions, and that SCAI believes stents are the preferred treatment for cardiac patients who need more than medicines to improve health and quality of life. But some doctors said the study’s outcome should discourage use of stents in many patients. Newell Cuts Forecast, Shares Sink 27% BY SHARON TERLEP Newell Brands Inc. blamed misfires in the back-to-school season for a weak quarterly report, but an uncertain outlook spooked investors, sending its shares down 27%. Newell lost more than $5 billion in market value Thursday as the maker of Sharpie markers and Rubbermaid containers cut its 2017 forecast and declined to offer any predictions for 2018. “We clearly have not had a quarter like this before,” CEO Michael Polk said in a call with analysts. Newell said its third-quarter profit rose to $234 million from $187 million a year earlier. Revenue fell 7% to $3.7 billion, though excluding divestitures core sales increased 0.4%, the company said. The results come about 18 months after Newell completed its $15.4 billion acquisition of Jarden Corp., which added Rawlings baseball gloves and Mr. Coffee machines, among other products, to Newell’s already wide-rang- ing portfolio. During Thursday’s call, an analyst noted the company’s results since the Jarden deal have been less consistent, and asked Mr. Polk if he had any thoughts “with the benefit of hindsight.” Mr. Polk didn’t directly respond to the question. A company spokeswoman said Newell’s strategy is working and the company believes it has “a high-quality portfolio of differentiated, leading brands.” Mr. Polk partly blamed the disappointing results on retail- ers making last-minute cancellations to orders for back-toschool products, throwing off the company’s inventory. Newell’s high-margin writing business was particularly weak in the quarter, as were sales in appliances and cookware. A bigger issue, Mr. Polk said, is shoppers’ fundamental shift away from brick-andmortar retailers. “There are certain retail channels where foot traffic is down and their business models are not well positioned yet to deal with the shift to e-commerce,” he said. White men are starting to lose their boardroom dominance at the biggest U.S. businesses. Women and minorities account for half of the 397 newest independent directors at S&P 500 companies, according to an analysis of 2017 proxy statements by Spencer Stuart, an executive recruitment firm. That is the highest level since the firm began tracking the data in 1998. The shift partly reflects shareholder pressure. Institutional investors “keep raising the issue of board diversity,’’ said Julie Hembrock Daum, head of Spencer Stuart’s North American board practice. For instance, giant money manager State Street Global Advisors voted this year against the re-election of certain directors at about 400 companies that it said failed to address gender diversity in a meaningful way. And the business environment is changing so fast that boards increasingly “recognize the need to add directors with experience in emerging areas critical to the company’s future success,’’ Ms. Daum added. Spencer Stuart found other signs of boards’ greater willingness to enlarge their membership pool. A record 45% of the new S&P 500 directors lacked experience on a public company board. Less than half of these board novices are female, the analysis showed. In seeking independent directors, companies have long favored current chief executives, who typically are white men. But fewer business bosses have time for outside board service. The percentage of S&P 500 CEOs with at least one external director role hit a record low of 37% this year, Spencer Stuart found. That is down from 52% a decade ago. Despite the expanded ranks of new female and nonwhite directors, the proportion of women on S&P 500 boards only rose slightly to 22% from 21% in 2016. Spencer Stuart blamed modest director turnover. In another first, more than half of S&P 500 companies now have split the roles of chairman and CEO, the search firm said. QUALCOMM Elliott Steps Up Effort on NXP Deal Hedge fund Elliott Management Corp. has enlisted investment bank UBS Group AG for help in its effort to secure a higher price in Qualcomm Inc.’s planned purchase of NXP Semiconductors NV or bring in a new bidder, according to people familiar with the matter. In October of last year, Qualcomm agreed to buy NXP for $110 a share, or about $39 billion. The companies still are seeking regulatory approvals. Elliott has argued that the price should be higher. That has helped push NXP shares well above the offer price; they closed above $117 on Thursday, even after NXP said last week it is supportive of the deal at $110 a share. As part of its mandate, UBS has sounded out other potential bidders for NXP and is helping to figure out the proper valuation for the Netherlands company, some of the people said. It is far from certain another bidder would step forward. —Dana Mattioli and David Benoit CONDÉ NAST Teen Vogue to End Its Print Edition Condé Nast is ending the print edition of Teen Vogue and continuing the brand as a digitalonly publication, part of a broader restructuring to reduce costs. Like many magazines, Teen Vogue has struggled on the print advertising side as marketers shift spending to digital. “We’re cutting the print edition because the audience is resonating digitally,” Bob Sauerberg, Condé Nast’s chief executive, said in an interview. A Condé Nast spokeswoman said the print magazine will cease publication in 2018. The decision is part of a broader effort at Condé Nast, owned by Advance Publications Inc. The spokeswoman said the publisher is cutting the frequency of a number of titles, with GQ and Glamour shifting to 11 issues from 12, and Bon Appétit to 10 from 11. Condé Nast also plans to lay off an estimated 80 employees, according to a person familiar with the situation. Condé Nast employs just under 3,000 in the U.S. —Jeffrey A. Trachtenberg NEILSON BARNARD/GETTY IMAGES BUSINESS WATCH Teen Vogue has struggled on the print advertising side. 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 B4 | Friday, November 3, 2017 * **** THE WALL STREET JOURNAL. TECHNOLOGY WSJ.com/Tech CHINA CIRCUIT | By Li Yuan U.S. Tech Giants Need to Rethink China Ties other than to point to remarks Mr. Cook made during a teleconference with analysts in August when China’s censorship policies came up: “We believe in engaging with governments even when we disagree.” A Facebook spokeswoman also didn’t directly comment, instead reiterating a statement that the company remains interested in China and is focused on getting Chinese businesses to use its ad platform. M essrs. Cook and Zuckerberg weren’t the only ones who spoke during the meeting. Former Treasury Secretary Henry Paulson, Blackstone Group Chairman Stephen Schwarzman, and Jim Breyer, an early Facebook investor and chairman of the advisory board, also praised Mr. Xi’s leadership of China. China hasn’t been an easy market for foreign companies in many sectors. Technology is particularly fraught because it influences the way people think and thus is being brought under ever tighter control by Mr. Xi’s government. Mr. Zuckerberg and the other American technology leaders should recognize that China is entering a “new era”—a phrase used in the title of Mr. Xi’s speech to the congress. In this era, according to Mr. Xi’s policy blueprint, the Communist Party will be supreme. The bargaining power of foreign tech companies, never high, is likely to dwindle. “Zuckerberg and so forth have many illusions about China,” says Chen Zhiwu, director of the Asia Global Institute and professor of economics at the University of Hong Kong. Chief among them, he said, is a tendency to see Chinese leaders as economic pragmatists and play down political statements. “They should understand it’s really different this time,” he says. China’s tech leaders, Alibaba Group Holding Ltd.’s Jack Ma and Tencent Holdings Ltd.’s Pony Ma, were also at the meeting with Mr. Xi, sitting in the second row. Microsoft Corp. CEO Satya Nadella and iPhone manufacturer Foxconn Technology Group’s founder, Terry Gou, were there, too, two of the roughly two dozen advisory board members to attend. A five-minute report shown on national television’s prime-time newscast featured 10 seconds of applause for Mr. Xi from the executives. That was after he told them that the goal of orities have shifted under Mr. Xi from economic growth to political control and what that might mean for their businesses. According to his newly endorsed policy program, Mr. Xi sees a strategic opportunity to make China a rich superpower, and that only the party can provide the leadership— and maintain the firm control—necessary to do that. TPG/ZUMA PRESS American tech giants need to rethink their relationship with China. Now. The need to do so was evident on Monday when Facebook Inc.’s Mark Zuckerberg, Apple Inc.’s Tim Cook and a bevy of other leaders in the worlds of technology, finance and industry were whisked to the Great Hall of the People to meet Chinese President Xi Jinping. Mr. Xi was fresh off a Communist Party congress that anointed him as China’s paramount leader. The business chieftains, members of an advisory board to Tsinghua University’s School of Economics and Management, were the first foreigners to congratulate Mr. Xi in person on his success. Congratulate, they did. According to the official People’s Daily, Mr. Cook expressed his admiration for Mr. Xi’s leadership in global governance. Mr. Zuckerberg borrowed a phrase from Mr. Xi’s speech to the congress, “Never forget where you started,” and said he hoped China would develop as fast as it has the past 30 years. Asked about the meeting, Apple declined to comment Mark Zuckerberg attended a meeting with Xi Jinping on Monday. education is to “train the builders and successors of socialism with Chinese characteristics, not bystanders and opponents.” Social-media users cackled about the event. Some referred to Mr. Zuckerberg and Mr. Cook as “comrades.” Others said the executives looked like representatives of the toothless government advisory body, the Chinese People’s Political Consultative Conference, reporting to Mr. Xi. Some publications closed off their social-media posts’ comment function. During Mr. Xi’s first five years in power, censorship has grown more severe, taking aim at critical remarks and foreign content. That trend looks likely to worsen. “The party leads everything” is a sentence that the recent congress added to the party constitution at Mr. Xi’s behest. Mr. Zuckerberg, who shed his usual casual wardrobe for a suit and a tie to see Mr. Xi, should have seen this coming. When Mr. Xi took power in 2012, only Facebook was blocked. Now Facebook’s Instagram is blocked and WhatsApp is partially blocked. Apple has had to police its app offerings in China, removing applications that circumvent censorship. Especially challenging for the foreign tech leaders to understand is that the party’s pri- T hat means that as they pursue greater access to China’s huge market, the foreign tech firms are going to have to accept a bigger role for the party. The government is already seeking a say in management decisions by some tech firms. It is demanding access to user data and investing heavily in surveillance technologies. Facebook is drawing heat in the U.S. and Europe about Russia’s use of its platform to meddle with elections. In his remarks to Mr. Xi, Mr. Zuckerberg said, “If billions in the world could hear China’s voice, the world will become a better place.” A question is what will Facebook do when it is the Communist Party’s voice that demands to be heard? Follow Li Yuan on Twitter @LiYuan6 or write to firstname.lastname@example.org. AutoNation Gears Up To Provide Repairs For Waymo’s Fleet Microsoft believes its HoloLens augmented-reality headset will find a niche with corporate trainers, designers and repair technicians. Microsoft Flips Script on Headsets BY JAY GREENE TOKYO—When Japan Airlines Co. sent Takashi Wada to Microsoft Corp.’s headquarters two years ago to try its HoloLens augmented-reality headset, the pilot grudgingly wondered why he needed to travel nearly 5,000 miles to Redmond, Wash., to examine a gadget seemingly built for videogamers. Today, Mr. Wada guides HoloLens-wearing trainees as they flip holographic switches as if they were sitting in a cockpit. His conversion explains why Microsoft believes its headset initially will find a niche not with zombie-hunting gamers but with corporate trainers, designers and repair technicians. Microsoft’s bid for commanding position in the budding market for augmented and virtual reality is critical, analysts say, as the devices usher in new ways for people to interact with software through gestures, voice and even the direction they gaze. Apple Inc., Alphabet Inc., Facebook Inc. and others also are racing to define what could emerge as the next major computing interface. “I have no doubt in my mind that this is the future,” said Alex Kipman, a top executive on Microsoft’s HoloLens team. Last year, U.S. businesses used about 400,000 “smart glasses,” according to Forrester Research Inc., including eyewear with tiny screens such as Alphabet’s Google Glass and devices such as HoloLens, which overlays holographic elements on a person’s view of the real world. Forrester expects the number to climb to 6.4 million by 2020 and 14.4 million by 2025. Microsoft has been an early mover before, such as in smartphone software, only to see ri- vals swoop in and dominate. While Google Glass initially sputtered, Alphabet released a version for corporate customers in July, counting Deutsche Post AG’s DHL among its adopters. In June, Apple released software to help developers build augmented-reality applications on its platform. The market for headmounted displays includes augmented-reality devices such as HoloLens, and virtual-reality gear such as Facebook’s Oculus Rift that occludes a person’s vision, immersing them in digitally generated sights and sounds. That Microsoft came to steer HoloLens to the workplace runs counter to how technology often evolves. Consumers brought iPhones to work, for example, often forcing employers to allow corporate-email use on personal devices. HoloLens emerged from an engineering team working on what is arguably Microsoft’s most consumer-focused business—its Xbox game division. But the market for higher-end virtual-reality devices, steered heavily toward gamers, has been slow to develop. “You have to pay attention to signals,” said Microsoft’s Mr. Kipman. Businesses expressed early enthusiasm for HoloLens, he said, but acknowledged “it’s still too expensive” for consumers. HoloLens costs $3,000 to $5,000 apiece. Japan Airlines says the device makes up for the cost by helping it more efficiently use its flight simulators, which run roughly $880 an hour to use. The airline acquired 10 HoloLens units and may add more, in part because would-be pilots who train first with the headset end up being much more productive in the simulator, said Mr. Wada. Twitter Worker Cuts Off Trump on Last Day BY GEORGIA WELLS Twitter Inc. blamed an employee’s error for an 11-minute outage of President Donald Trump’s account on Thursday evening that quickly became one of the messaging platform’s buzziest topics. Twitter said the error was made by a customer-support employee on his or her last day of work at Twitter. “We are conducting a full internal review,” Twitter said in a statement. Twitter earlier had said that @realdon- aldtrump was “inadvertently deactivated due to human error by a Twitter employee.” In an official tweet, Twitter said it would be “taking steps to prevent this from happening again.” The glitch, which raised questions about how Twitter employees can access users’ accounts, demonstrates the vulnerabilities of the platform that has become one of Mr. Trump’s preferred ways of communicating with constituents. Twitter was infamous in its early years for its frequent service interruptions, known for the “fail whale” icon. At the South by Southwest conference in 2014, Twitter suffered an outage when the company’s co-founder Biz Stone was speaking on stage. In recent years however, Twitter has taken steps to improve its reliability. Some Twitter employees and users took the error as an opportunity to crack jokes. Twitter Chief Operating Officer Anthony Noto retweeted a parody account pretending to be him that claimed responsi- bility for the error. “That’s the last time I try to code,” the fake posting said. “Seriously who is this person? I am unbelievable at ‘code,’ ” the real Mr. Noto’s account tweeted. “I’ll file a JIRA ticket,” tweeted another user. Mr. Trump returned to Twitter not long after his account was restored, tweeting about tax cuts and the Democratic National Committee. The topic “Trump’s Twitter,” referring to the outage, had more than 200,000 tweets. Autonomous cars may not need a driver, but they still need a good mechanic. Waymo LLC, the driverlesscar unit of Google parent Alphabet Inc., signed up AutoNation Inc. to service robovans that are being tested in Arizona and California. The agreement, announced Thursday, shows the Silicon Valley tech giant is getting closer to deploying vehicles on public roadways without humans behind the wheel. The agreement is separate from a June deal in which Avis Budget Group Inc. agreed to park Waymo vehicles at rental lots and do routine maintenance, including oil changes, tire rotations and cleaning. AutoNation, the largest dealership chain in the U.S., will provide mechanical and cosmetic repairs to Waymo’s fleet. Waymo is considered a leader in autonomous-car research and has been transitioning to operating a fleet of hundreds of Pacifica minivans built by Fiat Chrysler Automobiles NV that are retrofitted with extensive software and other gear so the vehicles can drive themselves. Waymo, which is competing with several auto makers in the driverless car race, showed off new demonstrations of its technology on Tuesday. Auto dealers sell new and used cars but book a big chunk of their profits on financing and servicing vehicles. Many of them, including AutoNation, have been experimenting with ways to become more relevant if car usage becomes more of a shared service. AutoNation has begun servicing self-driving vehicles in the Phoenix area, where Waymo has launched a program that gives hundreds residents free rides in the selfdriving cars. Mike Jackson, AutoNation’s chief executive, said he has been making regular visits to Waymo headquarters and realized his dealer- ship group could have a role in the commercialization of selfdriving vehicles. “We’re able to put in place the strategic maintenance and care program for each vehicle that will proactively make sure it’s always operating at the highest safety levels and will optimize the life cycle of the vehicle,” Mr. Jackson said. In a statement, Waymo Chief Executive John Krafcik said the two companies have “a shared vision of enhancing the in-car experience” and AutoNation would help to ensure “Waymo vehicles are always in top condition as we bring fully self-driving cars to the public.” “This is additional business for us,” said Mr. Jackson. “I believe Waymo is going to grow—I think they have the right approach and we’re going to grow with them.” AutoNation said its technicians have the expertise to maintain and repair the vehi- Tech giant gets closer to deploying its autonomous vehicles on public roadways. cles but as the partnership grows, they will hire more technicians to meet demand. The Waymo deal is a part of a broader AutoNation effort to reduce its dependence on lowmargin new-car sales. In the last quarter, it opened “AutoNation USA” used-car centers and expanded into branded car parts, auctions and collision centers. Separately, AutoNation said quarterly net income from continuing operations fell 9.5% from a year earlier to $1.00 a share, beating analysts’ expectations by 16 cents. Revenue fell 2.7% to $3.2 billion. Same-store used-vehicle gross profit was up 9% from a year earlier. WAYMO BRITTA PEDERSEN/DPA/ZUMA PRESS BY ADRIENNE ROBERTS AutoNation will service robovans being tested in Arizona, California. 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. Friday, November 3, 2017 | B5 BUSINESS NEWS More Subscribers Flee Discovery Smaller channels see the most defections but U.S. distribution revenue rises 6% BY HEATHER HADDON Discovery Communications Inc. reported an accelerating decline in subscribers to its channels in the U.S., a sign that the unraveling of the cable-television bundle is picking up speed. The media company lost 5% of its U.S. channel subscribers in the third quarter, an increase from the second quarter and up from 2% in the period a year earlier. The subscriber losses have been concentrated among Discovery’s smaller channels, while its flagship channels like Discovery channel, TLC and Animal Planet have held relatively steady. As a result, despite the subscriber decline, Discovery was able to increase its domestic distribution revenue in the third quarter by a healthy 6% and reaffirm its guidance for the year of “midsingle-digit growth” in distribution revenue. But the company’s results revealed just how rapidly cordcutting and cord-shaving are reshaping the television ecosystems, particularly for media companies that lack sports within the U.S. market. Discovery shares were down 7.5% in midday trading. “As subscriber declines continue across the pay-television landscape, we continue to pursue our strategic pivot, to take our content to consumers across every screen and service,” said Discovery Communications Chief Executive David Zaslav in a call with analysts Thursday. Distributors also have been reporting accelerating declines in their pay-TV subscribers in the latest quarter as customers turn to more-affordable bundles of online channels and streaming services. Last week, Comcast Corp. reported its DISCOVERY CHANNEL/EVERETT COLLECTION BY KEACH HAGEY BlueApron Posts Loss, Drop in Customers Discovery’s ‘Deadliest Catch.’ CEO David Zaslav said Discovery has been hurt by its absence from some of the new ‘skinny’ bundles. largest quarterly loss of cableTV subscribers in three years, while AT&T and Charter Communications also recently reported continuing pay-TV subscriber declines. Discovery has been positioning itself to beat these trends by investing in digital, buying a stake in Facebookfeeding short-form video company Group Nine and beefing up its direct-to-consumer Results showed just how rapidly cordcutting is reshaping television landscape. streaming business in Europe with its Eurosport Player. Mr. Zaslav pinned blame for the subscriber declines racking the pay-TV industry on sports programming and the rising fees that pay-TV distributors must pay to carry broadcast networks. Echoing arguments long made by major Discovery shareholder John Malone, he argued that the inclusion of sports and broadcast networks in essentially all pay-TV bundles prices young people out of the market, driving them to cheaper options like Netflix. Mr. Zaslav said Discovery’s subscriber picture also has been hurt by its absence from some of the new generation of so-called “skinny” bundles put together by YouTube and Hulu, and that talks with those companies continue. Like Viacom Inc., another company lacking sports in its channel portfolio, Discovery said it is in talks with distributors and its fellow programmers to create a new, sports-free skinny bundle. The Wall Street Journal has reported that the entertainmentfocused bundle is in the works and could cost about $20 a month. The other unpleasant surprise for investors came from deal to acquire Scripps Networks Interactive would close early next year. But Marci Ryvicker, an analyst at Wells Fargo, said she was “watching headlines” on the fate of the pending merger between AT&T and Time Warner Inc. The Wall Street Journal reported Thursday that the Justice Department was weighing blocking the Time Warner acquisition if the companies and the government can’t agree on terms to satisfy antitrust concerns. Overall, Discovery’s net income in the third quarter was flat at $218 million, as better operating results were offset by $142 million in charges tied to its pending merger with Scripps Networks Interactive. Earnings per share increased to 38 cents, due to buybacks. Revenue grew 6% to $1.65 billion, driven by an 11% rise in the company’s international business and a 4% rise domestically. Analysts had expected revenue of $1.64 billion, according to FactSet. Tuning Out Discovery Communications share price this year $30 a share 25 20 15 Thursday Reported a decline in subscribers $17.31 ▼9.7% 10 5 0 2017 Source: FactSet THE WALL STREET JOURNAL. the company’s international division, where the distribution revenue outlook was lowered, in part due to power outages in Mexico. Discovery executives reiterated their expectation that its Blue Apron Holdings Inc. posted a loss and shed customers in the third quarter, straining to retain its edge in the saturated meal-kit market just months after an initial public offering of stock. Shares in the company fell 19% on Thursday to a new low after Blue Apron reported a loss of 47 cents a share. It now expects a net loss of $131 million to $138 million for the second half of the year, rather than a previously forecast net loss in the range of $121 million to $128 million. The stock closed off 87 cents at $3.80. Blue Apron’s profitability and customer count suffered from declines in advertising, and the company expects severance costs associated with recent layoffs to take a toll in the current quarter. The company also dropped plans to build a new fulfillment center in California, focusing on one in New Jersey instead. “We did a lot in a short period of time and it was a pretty ambitious plan,” Chief Executive Matt Salzberg said about the company’s facility changes. The company reported $210.6 million in revenue for the September-ended quarter, higher than the $191.5 million analysts expected. Blue Apron is still the largest U.S. maker of meal kits, which provide preapportioned ingredients for customers to assemble at their homes. But competitors have started to introduce products marketed as more flexible and faster to cook than Blue Apron’s. Blue Apron’s customer count fell to 860,000 in the third quarter, a 9% drop from the second quarter and down from a peak of just over one million earlier this year. 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TO FIND A LOCAL DOCTOR OF CHIROPRACTIC, VISIT www.f4cp.com/findadoctor PROUD ASSOCIATION SPONSORS Alaska Chiropractic Society American Chiropractic Association Arkansas Chiropractic Physicians Association Association of New Jersey Chiropractors Brown County Chiropractic Society California Chiropractic Association Chiropractic Association of Louisiana Chiropractic Society of Rhode Island Colorado Chiropractic Association Florida Chiropractic Association Georgia Chiropractic Association Hawaii State Chiropractic Association Idaho Association of Chiropractic Physicians Illinois Chiropractic Society Indiana State Chiropractic Association Nevada Chiropractic Association International Chiropractors Association Iowa Chiropractic Society Macomb County Chiropractic Association Maryland Chiropractic Association Massachusetts Chiropractic Society New Mexico Chiropractic Association New York Chiropractic Council New York State Chiropractic Association North Carolina Chiropractic Association North Dakota Chiropractic Association Mercer County Chiropractic Society Michigan Association of Chiropractors Michigan Chiropractic Foundation Minnesota Chiropractic Association, Inc. Mississippi Chiropractic Association Oregon Chiropractic Association Pennsylvania Chiropractic Association South Dakota Chiropractors Association Tennessee Chiropractic Association Texas Chiropractic Association Unified Virginia Chiropractic Association Missouri State Chiropractors Association Utah Chiropractic Physicians Association National Board of Chiropractic Examiners Nebraska Chiropractic Physicians Association PROUD COLLEGIATE SPONSORS Canadian Memorial Chiropractic College Cleveland College of Chiropractic D’Youville College Life University Life Chiropractic College West Logan College of Chiropractic New York Chiropractic College Northwestern Health Sciences University Palmer College of Chiropractic Parker University Southern California University of Health Sciences THE WALL STREET JOURNAL. B6 | Friday, November 3, 2017 EARNINGS WATCH U.S. Price Pressures Weigh on Drugmaker The world’s biggest seller of generic drugs, Israel’s Teva Pharmaceutical Industries Ltd., cut its full-year outlook for the second time this year, blaming price pressure in its U.S. business and greater competition. Third-quarter adjusted net profit was $1 billion, compared with $1.4 billion a year ago, while revenue rose slightly to $5.6 billion. Teva said it expects adjusted earnings per share of $3.77 to $3.87 for 2017, down by roughly 30 cents from earlier guidance. Teva’s American depositary receipts were down 20% to $11.23 in New York Stock Exchange composite trading at 4 p.m. Thursday. Teva’s stock is down more 60% since the end of 2016. —Rory Jones STARBUCKS Unilever to Buy Tazo Tea Brand Starbucks Corp. said it would sell its Tazo brand of teas in the coffee seller’s latest move to focus on its core operations. Unilever PLC is paying $384 million for the brand, which Starbucks bought for $8.1 mil- lion in 1991. For the quarter, revenue was $5.7 billion, down 0.2% from a year ago. Profit was $788.5 million, or 54 cents a share, compared with $801 million, or 54 cents a share, a year ago. On an adjusted basis, earnings per share came in at 55 cents. Analysts polled by Thomson Reuters had expected revenue of $5.8 billion and adjusted earnings per share of 55 cents. —Austen Hufford BOMBARDIER Plane Maker Touts Airbus Partnership Bombardier Inc. missed analysts’ revenue estimates in its latest quarter as the plane and train maker touted its new partnership with Airbus SE as a “game-changing” step. The Montreal company’s third-quarter revenue of $3.8 billion was less than the $4.1 billion expected by analysts polled by Thomson Reuters. In the yearearlier quarter, the company had revenue of $3.7 billion. Bombardier last month announced it would team with Airbus to accelerate production of its CSeries, dealing a blow to longtime Airbus rival Boeing Co. —Cara Lombardo and Jacquie McNish Shell’s Profit Nearly Triples Recovering oil prices, increased production and cost cutting help lift quarterly results BY SARAH KENT LONDON—Royal Dutch Shell PLC said its profit nearly tripled in the third quarter compared with a year earlier, helped by recovering oil prices, better conditions for its refineries and an increase in oil-and-gas production. The British-Dutch giant said its quarterly profit on a current cost-of-supplies basis—a number similar to the net income that U.S. oil companies report—was $3.7 billion, up from $1.4 billion a year earlier. Shell’s earnings were lifted by conditions that have boosted the fortunes of most giant oil companies, which have regained a level of equilibrium after years of scrambling to adapt to the sharp drop in oil prices since 2014. Last week, Exxon Mobil Corp and Chevron Corp. both reported increases in thirdquarter profit of about 50% compared with the prior year. French oil major Total SA saw its earnings jump 40%. On Tuesday, British oil ALEJANDRO CEGARRA/BLOOMBERG NEWS TEVA PHARMACEUTICAL EARNINGS Shell’s share price has climbed to levels not seen since before prices crashed three years ago. giant BP PLC said it could cover its spending and dividends with cash, with oil at $49 a barrel. Driving the results are modestly recovered oil prices and a raft of cost cuts that Shell and others say have changed how they do business. The international oil price benchmark, known as Brent, averaged around $52 a barrel in the third quarter, up since dipping below $30 a barrel in early 2016 but much below a 2014 peak of $114 a barrel. This week, Brent climbed above $60 a barrel for the first time in two years. Shell said it was able to cover its shareholder payouts with cash at current oil prices—a newly important metric for investors worried about the safety of their dividends in a low-oil-price world. The company’s chief executive, Ben van Beurden, has vowed that the company’s mind-set on oil prices is that they will be “lower forever.” Shell’s share price has climbed to levels not seen since before prices crashed three years ago. It rose 2.4% in London, on a day when other energy shares and Brent crude prices were down. Strong performance in Shell’s refining and chemicals division helped underpin earnings in the third quarter. The company’s exploration and production arm also returned to profit in the quarter. DowDuPont Expects Delay in Breakup CHRISTOPHER JUE/GETTY IMAGES BY JACOB BUNGE AND ALLISON PRANG For the quarter, Starbucks revenue was $5.7 billion, down 0.2%. New Highs and Lows | WSJ.com/newhighs Stock 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. Thursday, November 2, 2017 Stock 52-Wk % Sym Hi/Lo Chg Stock NYSE highs - 155 AerCap AER AirLease AL AlamoGroup ALG Albemarle ALB AlexandriaRealEst ARE Alibaba BABA AlleghenyTechs ATI Allstate ALL AllyFinancial ALLY AlonUSAPartners ALDW Ameren AEE AEP AEP AmerWaterWorks AWK Andeavor ANDV AsiaPacificFund APB AutoNation AN AveryDennison AVY 54.50 45.15 112.00 143.69 125.99 191.22 26.59 98.21 26.77 13.28 62.49 74.92 90.22 111.27 14.68 55.77 108.58 0.3 1.5 0.4 -3.8 -0.5 -0.7 2.2 3.8 0.7 4.1 0.8 -0.4 2.6 0.5 -0.5 14.8 1.3 52-Wk % Sym Hi/Lo Chg Stock BkNovaScotia BNS Bard CR BCR BectonDickinsonPfA BDXA BectonDickinson BDX BrightHorizons BFAM Brown&Brown BRO CF Industries CF CNOOC CEO CVR Energy CVI CVR Refining CVRR CabotOil COG CadenceBancorp CADE CAE CAE Calpine CPN CanNaturalRes CNQ Care.com CRCM CatchMarkTimber CTT CenturyComm CCS CharlesRiverLabs CRL Cigna CI 65.40 335.57 59.88 224.73 93.13 50.81 39.04 141.11 30.92 12.85 28.29 25.14 18.18 15.11 35.55 17.10 13.20 29.20 119.05 205.75 1.1 2.7 5.5 7.7 2.4 0.6 1.3 3.6 1.2 -0.8 1.3 2.3 0.2 -0.2 0.7 13.8 1.0 -4.5 -0.5 0.3 ConEd CreditSuisse CubeSmart CurtissWright Dana Danaher DaqoNewEnergy Deere DelekUS DukeEnergy EMCOR EPAM Systems Ecopetrol EmployersHldgs EntergyMS Bds Exelon ExtraSpaceSt FangHoldings FederalSignal FidelityNatlFin DowDuPont Inc. could take longer than expected to split into three new companies after the newly merged chemical giant revamped its separation strategy, Chief Executive Ed Breen said. DowDuPont now projects the three-way split to take up to two years as some businesses are shifted among the 52-Wk % Sym Hi/Lo Chg ED CS CUBE CW DAN DHR DQ DE DK DUK EME EPAM EC EIG EMP EXC EXR SFUN FSS FNF 86.82 1.2 16.46 4.9 28.21 2.5 120.13 1.7 31.41 1.6 93.14 -0.2 40.51 0.3 135.04 0.1 28.35 0.8 88.73 0.8 81.61 0.8 99.16 9.4 11.56 -1.1 49.60 1.3 25.10 0.3 40.81 1.4 85.92 1.9 4.77 2.6 23.64 9.1 38.07 -0.1 ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds BANKRUPTCIES !"#$ %&""% !" # $% &'("'% !%)%* !*+ $% "&(&!&* (%+%' '# ( ") *) + , -"% (.)$ . / . "") / 0 ( 1.2 % % 1".% #")"" *%2 ."3"4 5$ ) % " /6#"% % % % " " )##)"5#$ 12 #")" ))) / &%"6% &%% .#&% /& "& "& 1'#2 7 5"4 .#& 1")#. & .#&2 ! 1")#. &2 , 4 0" ")#. & )""4 1%8. "/&"2 .. )" ,9 / ( .)$ %7 ) 5"4 .#&# #")"" &"# % %).& ")#.%% " .#&# #")"" )(47 % % 5"4 )%. / )".% #")""4 )"5"4 % .#"4 5 '# % / 6#"4 :)" '# , *-)!&* %!&*. '# ( /. 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DowDuPont, formed in September from the merger of Dow Chemical Co. and DuPont Co., had previously aimed to execute the breakup within 18 months. The conglomerate plans to cut jobs and close or sell some facilities to save $3 billion in annual costs. DowDuPont aims to streamline operations before forming three new companies focused on agriculture, 52-Wk % Sym Hi/Lo Chg Stock PublicStoragePfX PSApX QTS Realty QTS Q2Holdings QTWO RPC RES Rayonier RYN ResoluteForest RFP RockwellCollins COL RoyalDutchA RDS.A RoyalDutchB RDS.B Seacor CKH SabineRoyalty SBR SantanderConUSA SC SiteOneLandscape SITE SocialCapHed IPOA.U Southern SO Spire SR SpiritAeroSys SPR StellusCap5.75Nt22 SCA Strats GSG GJS GJS SunCommunities SUI TableauSoftware DATA TaiwanFund TWN TelecomArgentina TEO TeledyneTech TDY Teleflex TFX Teradata TDC TerrenoRealty TRNO Total TOT TowerIntl TOWR ToyotaMotor TM Travelers TRV TwoHarborsPfdB TWOpB VailResorts MTN ValeroEnergy VLO VirtusGlbDiv&Incm ZTR VishayPrecision VPG WNS WNS Wal-Mart WMT WellCareHealth WCG Winnebago WGO XPO Logistics XPO YumBrands YUM Zendesk ZEN Zoetis ZTS 25.79 59.48 43.65 25.56 30.98 7.40 136.50 64.24 66.06 51.59 42.85 17.02 64.67 10.97 53.27 79.60 83.05 25.63 20.39 92.22 82.32 21.68 34.20 179.01 263.97 38.08 38.06 56.60 33.15 125.49 135.71 26.70 233.77 82.19 13.47 24.95 39.21 89.17 204.06 49.90 72.46 80.66 35.00 67.85 0.1 0.1 -2.3 1.1 1.4 23.1 0.1 1.9 1.3 8.8 -2.5 0.7 1.5 -1.1 2.2 -0.1 4.3 0.3 2.4 0.1 1.7 -0.1 1.0 4.8 5.4 11.3 1.3 0.6 4.4 0.7 0.9 0.8 0.6 1.1 0.1 1.2 1.4 1.0 ... -3.3 2.7 6.5 12.2 4.3 NYSE lows - 92 AES AES AK Steel AKS ARCDocumentSolns ARC AT&T T AdvanceAuto AAP AlaskaAir ALK AmericanRenal ARA 10.46 4.21 3.01 32.93 80.21 63.56 11.08 2.1 -2.8 -21.6 -1.1 1.2 -3.2 -1.2 52-Wk % Sym Hi/Lo Chg Stock AndeavorLog ANDX AnteroMidstream AMGP ArlingtonAsset AI BT Group BT BlueApron APRN CBS B CBS CBS A CBS.A Cabco JCP PFH PFH CapitolInvIV A CIC CapsteadMtg CMO CardinalHealth CAH CircorIntl CIR ClearBridgeEnMLPFd CEM CobaltIntlEner CIE ContainerStore TCS Corts JCPen JBS JBN Corts JC KTP KTP Coty COTY CushingTotRetFd SRV DeanFoods DF DeutscheStratMuni KSM EP Energy EPE EastmanKodak KODK EastmanKodakWt KODK.WS.A EdgewellPersonal EPC Enbridge ENB EvolentHealth EVH FS Investment FSIC FT SrFR Incm FCT FivePoint FPH GameStop GME GeneralElec GE GenieEnergy GNE GlaxoSmithKline GSK GranitePointMtg GPMT HeclaMining HL Interpublic IPG Intrexon XON KKRIncomeOppsRt KIOr KayneAnderson KED KayneAnMLPInv KYN KinderMorgan KMI KinderMorganPfdA KMIpA Luby's LUB MSG Networks MSGN MacquarieInfr MIC MedleyMgmt MDLY Mednax MD NCR NCR NOW DNOW NewellBrands NWL NielsenHoldings NLSN Nordstrom JWN NuSTAREnergy NS 43.21 17.60 11.11 16.63 3.75 54.00 55.34 11.09 9.60 8.63 60.33 42.51 13.17 0.62 3.59 9.92 11.08 14.43 10.79 9.36 11.84 2.23 4.99 0.02 61.91 36.62 14.45 7.65 13.03 12.00 18.22 19.63 5.02 35.86 17.70 4.57 18.92 15.62 0.28 15.09 15.28 17.73 37.02 2.40 16.45 65.57 5.55 40.56 30.43 10.54 29.70 35.84 39.28 31.97 -1.9 -5.1 -1.8 -4.5 -18.6 -3.1 -2.8 -4.2 -0.1 -1.9 -1.8 ... -1.8 -37.9 -1.4 -4.2 -6.2 -5.6 -2.5 -3.0 ... -7.0 -1.9 -55.4 -3.9 -4.2 -2.6 -1.9 -0.2 -4.4 -0.5 -0.4 0.6 -0.7 -5.4 -1.1 -2.7 -0.4 18.5 -2.0 -2.8 -1.8 -1.2 0.4 1.8 -3.6 -0.9 0.7 -3.1 -0.6 -26.8 1.8 -1.5 -3.8 Mutual Funds | WSJ.com/fundresearch 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. 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. Thursday, November 2, 2017 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund American Century Inv 44.61 Ultra American Funds Cl A 31.83 AmcpA p 41.04 AMutlA p BalA p 27.44 BondA p 12.96 CapIBA p 62.86 CapWGrA 52.41 EupacA p 57.36 63.59 FdInvA p 51.48 GwthA p 10.47 HI TrA p 41.13 ICAA p 23.48 IncoA p 45.01 N PerA p 47.49 NEcoA p 66.54 NwWrldA 56.43 SmCpA p 13.00 TxExA p 45.41 WshA p Baird Funds 10.91 AggBdInst 11.26 CorBdInst BlackRock Funds A 20.31 GlblAlloc p BlackRock Funds Inst EqtyDivd 23.14 GlblAlloc 20.44 HiYldBd 7.85 StratIncOpptyIns 9.97 Bridge Builder Trust NA CoreBond Dimensional Fds 11.04 5GlbFxdInc NA EmgMktVa EmMktCorEq 22.56 14.30 IntlCoreEq 20.15 IntlVal NA IntSmCo 23.58 IntSmVa US CoreEq1 -0.07 27.9 US CoreEq2 US Small ... 18.6 US SmCpVal -0.02 13.1 US TgdVal -0.04 12.3 USLgVa +0.01 +0.02 -0.06 -0.10 -0.08 -0.06 -0.01 -0.09 +0.01 -0.08 -0.04 -0.05 -0.07 ... -0.04 3.4 11.8 21.4 29.8 19.0 22.5 6.7 14.8 10.7 27.4 32.1 29.3 22.7 4.7 15.1 +0.02 +0.01 4.1 4.4 +0.02 11.7 +0.08 13.3 +0.02 12.0 -0.01 7.7 ... 4.3 ... NA +0.01 ... +0.05 +0.03 +0.12 ... +0.02 2.4 NA 31.9 24.8 23.0 NA 24.7 NA NA NA NA NA NA ... ... ... ... ... ... NA NA NA NA NA NA Dodge & Cox Balanced GblStock Income Intl Stk Stock 109.29 +0.01 14.01 ... 13.84 +0.01 46.82 +0.06 202.15 ... DoubleLine Funds TotRetBdI 10.68 +0.01 Edgewood Growth Instituti EdgewoodGrInst 29.42 +0.02 Federated Instl 6.37 +0.01 StraValDivIS Fidelity 500IdxInst 90.30 +0.02 500IdxInstPrem 90.30 +0.03 500IdxPrem 90.30 +0.03 ExtMktIdxPrem r 62.55 +0.06 IntlIdxPrem r 43.42 +0.06 ... SAIUSLgCpIndxFd 13.84 TMktIdxF r 74.88 +0.03 TMktIdxPrem 74.87 +0.03 USBdIdxInstPrem 11.62 +0.01 Fidelity Advisor I 33.46 ... NwInsghtI Fidelity Freedom FF2020 16.73 ... 14.48 ... FF2025 18.13 ... FF2030 ... Freedom2020 K 16.73 ... Freedom2025 K 14.48 ... Freedom2030 K 18.14 Freedom2035 K 15.21 -0.01 ... Freedom2040 K 10.69 Fidelity Invest 23.67 ... Balanc 9.2 17.6 4.1 22.9 12.8 3.7 32.5 10.9 17.1 17.1 17.1 14.0 23.0 17.1 16.6 16.5 3.3 25.3 13.4 14.4 16.8 NS NS NS NS NS 14.1 Net YTD NAV Chg % Ret 87.11 BluCh 127.05 Contra 127.05 ContraK 10.33 CpInc r 41.43 DivIntl GroCo 181.48 181.44 GrowCoK 7.94 InvGB 11.30 InvGrBd 52.77 LowP r LowPriStkK r 52.74 105.73 MagIn 107.70 OTC Puritn 23.17 SrsEmrgMkt 21.57 SrsGroCoRetail 17.83 SrsIntlGrw 16.20 10.89 SrsIntlVal TotalBond 10.69 -0.18 ... ... -0.01 -0.03 -0.25 -0.25 +0.01 +0.01 +0.14 +0.15 +0.05 -0.35 -0.01 +0.02 -0.02 -0.04 ... +0.01 Fidelity Selects 218.07 +1.22 First Eagle Funds 60.49 -0.03 GlbA FPA Funds FPACres 35.24 -0.03 FrankTemp/Frank Adv IncomeAdv NA ... FrankTemp/Franklin A 7.44 +0.01 CA TF A p Fed TF A p 11.95 +0.01 NA ... IncomeA p 60.59 +0.07 RisDv A p FrankTemp/Franklin C NA ... Income C t FrankTemp/Temp A NA ... GlBond A p NA ... Growth A p FrankTemp/Temp Adv NA ... GlBondAdv p Harbor Funds 75.58 +0.09 CapApInst Biotech r 32.0 29.9 30.0 11.0 24.4 32.7 32.8 3.7 4.1 15.1 15.3 22.5 35.2 16.1 37.4 33.5 26.6 18.9 4.0 25.3 11.5 9.3 NA 5.1 3.0 NA 16.1 NA NA NA NA 33.4 27.32 65.94 18.64 2.46 11.09 43.23 24.01 24.42 24.08 23.56 23.62 0.41 17.80 10.00 41.15 1.55 98.11 42.66 10.85 10.55 40.50 23.99 8.91 24.09 15.60 10.42 11.45 5.11 45.34 12.65 4.07 -0.6 -2.1 -10.9 -4.1 -1.8 -6.7 -3.3 -3.6 -1.9 -1.4 -3.5 -26.3 -0.3 -2.9 -1.5 -3.1 -6.9 0.3 -19.9 -4.5 -35.2 -0.9 -21.0 -1.6 59.3 -4.0 -2.2 -0.2 -2.0 0.9 -6.0 NYSE Arca highs - 54 ALPSIntlDivDogs IDOG CSOPFTSEChinaA50 AFTY ColumbiaEMCoreXCh XCEM DirexFinlBull3 FAS E-TRACS Lvstk UBC FinSelSectorSPDR XLF FT Dow30EW EDOW FT FinlsAlpDx FXO FT GlbEngg FLM FrankUSLowVol FLLV GlbXSciBetaAsiaXJ SCIX GlbXSciBetaJapan SCIJ GraniteS&P Comm COMG IQ HedMacrTrac MCRO IQMergerArbitrage MNA iPathBlmIndMetalTR JJM iPathLgRus1000 ROLA iShCoreMSCIPacific IPAC iShCurrHdgNikk400 HJPX iShUSFinlServices IYG iShUS Finls IYF Fund Data provided by 52-Wk % Sym Hi/Lo Chg Stock OmegaHealthcare OHI Omnicom OMC Owens&Minor OMI PenneyJC JCP PitneyBowes PBI PrestigeBrands PBH QwestNts2054 CTV Qwest7%Nts2056 CTAA QwestNts2052 CTX QwestNts2052 CTU QwestNts2057 CTDD RAIT Financial RAS SafetyIncome SAFE Satrn JCPen HJV Scana SCG SocialCapHedWt IPOA.WS SpectrumBrands SPB StandardMotor SMP TevaPharm TEVA TimeInc. TIME TreeHouseFoods THS TriangleNts22 TCCB TriangleCap TCAP TriangleNts TCCA TwoHarbors TWO UnderArmour C UA UnderArmour A UAA VoyaPrimeRate PPR WesternGasPtrs WES WideOpenWest WOW XeriumTech XRM IntlInst r Explanatory Notes Fund materials and specialty products, executives said Thursday after the company reported better-than-anticipated profits in its first quarterly report since the merger closed. In its latest quarter, DowDuPont reported pro forma net income of $232 million, down 53% from a year ago. Excluding items including restructuring, pro forma net income rose 14% to $1.29 billion, or 55 cents a share. Almost all segments re- 28.65 18.07 28.96 62.05 21.19 26.93 21.14 30.53 58.48 29.20 26.13 32.06 26.32 26.52 31.13 29.62 285.20 59.10 30.30 124.90 115.86 AIPoweredEquity AIEQ DBCommodityDblLong DYY DirexFinlBear3 FAZ ETRACSMthPay2xLev DVHL ETRACSWFBusDev BDCZ GlbXSuperIncPfd SPFF GuggBS2025HYCpBd BSJP Inspire100ETF BIBL ProShShtBasicMat SBM ProShShtDow30 DOG ProShShtFinls SEF ProShUltShtDow30 SDOW ProShUltShDow30 DXD ProShrUSFnl SKF ProShrUS MSCI EAFE EFU ProShrUS MSCI Jpn EWV ProShrUSSemi SSG 2xLevLgETRACSWF LBDC 11.6 9.0 3.7 24.4 7.0 2.2 2.5 3.0 3.1 3.3 13.5 25.6 NA 11.5 17.3 28.5 16.2 32.4 24.8 13.0 11.6 5.0 7.7 7.7 8.0 7.9 33.7 13.5 12.1 16.9 31.4 25.7 35.2 20.29 -1.4 66.69 0.7 UBSWellsFargoETN BDCS 15.50 -5.0 30.18 -0.1 ETRACS2xBDC BDCL 16.53 -1.9 91.65 0.3 VanEckBDCIncome BIZD 86.72 -1.8 VOX 42.40 0.7 VangdTelecom 24.21 1.3 31.50 0.4 33.50 0.4 121.70 -1.2 CCF 30.34 0.4 Chase 3.16 4.6 31.78 2.2 LadenburgThalmann LTS 30.74 0.3 26.38 0.3 26.01 0.2 2.25 -2.1 AsteriasBiotherap AST 38.32 0.3 0.16 -3.5 BioPharmX BPMX 32.62 0.5 2.27 3.9 Biotime BTX 33.34 0.3 2.10 -6.4 CRH Medical CRHM 24.80 0.7 0.09 -6.1 ComstockMining LODE 119.07 0.8 GoldStandrdVntr GSV 1.27 2.3 120.27 1.5 IsoRay 0.38 -11.3 ISR 126.09 0.3 PacGE pfB 27.06 -4.1 PCGpB 80.74 1.0 RegionalHlthProp RHE 0.41 56.3 99.41 0.1 TelInstrElec 2.40 1.3 TIK 235.17 0.3 41.92 0.3 25.15 0.6 50.25 ... ACI Worldwide ACIW 25.00 -3.1 32.12 2.4 ALPS/DorseyMom SWIN 29.41 0.1 63.77 0.7 Ansys 155.14 9.6 ANSS 29.20 0.9 AdobeSystems ADBE 181.48 2.7 27.36 0.3 AlliedMotionTech AMOT 30.50 7.2 28.21 0.1 AlnylamPharm 147.63 10.3 ALNY 26.85 0.4 Altaba 72.47 -0.1 AABA 25.41 ... AndinaAcqnIIUn ANDAU 12.00 17.6 29.13 0.4 AtlanticaYield 24.13 3.1 ABY 108.27 4.4 AveXis AVXS 23.80 10.4 AxoGen AXGN 5.64 10.5 BallardPower BLDP 24.62 -0.7 Biomerica 3.18 6.2 BMRA 2.08 9.5 BlueprintMed 73.22 0.7 BPMC 13.06 -1.9 Bruker 32.09 -1.9 BRKR 19.75 -0.8 CB FinSvcs 30.50 0.2 CBFV 20.38 -3.1 CH Robinson 81.35 0.3 CHRW 12.30 -0.2 CME Group 140.57 3.1 CME 43.73 1.6 CRAI 24.96 ... CRA Intl 43.84 1.8 25.02 -0.1 CadenceDesign CDNS 9.40 4.5 18.24 -0.4 CalumetSpecialty CLMT 18.68 4.2 CSIQ 15.76 -0.4 CanadianSolar 13.20 -1.3 11.97 -0.8 CanterburyPark CPHC 20.90 13.1 CWST 22.99 -0.9 CasellaWaste 157.80 -1.8 9.70 -0.6 CavcoIndustries CVCO 115.74 2.6 22.44 -1.5 CboeGlobalMkts CBOE 19.49 -0.2 CELC 23.60 -0.8 Celcuity 48.49 2.4 CHMG 27.62 -0.5 ChemungFinl 1.39 1.5 CNIT 10.32 -1.1 ChinaInfoTech 15.80 -5.7 Continues on Page B9 NYSE American highs - 2 NYSE American lows - 10 Nasdaq highs - 128 Net YTD NAV Chg % Ret Fund 19.30 +0.02 15.35 +0.01 91.79 +0.20 31.08 +0.09 MCapVal N Horiz 55.73 +0.34 9.51 +0.01 N Inc OverS SF r 11.41 +0.03 23.24 +0.03 R2020 17.92 +0.02 R2025 R2030 26.41 +0.04 19.31 +0.03 R2035 R2040 27.75 +0.05 38.80 +0.10 Value PRIMECAP Odyssey Fds Growth r 35.59 +0.08 Principal Investors DivIntlInst NA ... Prudential Cl Z & I 14.56 +0.02 TRBdZ Schwab Funds 40.30 +0.01 S&P Sel TIAA/CREF Funds 19.33 +0.01 EqIdxInst IntlEqIdxInst 20.39 +0.05 Tweedy Browne Fds 28.48 +0.02 GblValue VANGUARD ADMIRAL 238.44 +0.07 500Adml 34.07 +0.02 BalAdml 11.81 +0.01 CAITAdml CapOpAdml r 154.58 -0.03 37.27 +0.13 EMAdmr 76.46 +0.19 EqIncAdml ExtndAdml 82.18 +0.08 GNMAAdml 10.53 +0.02 70.14 -0.16 GrwthAdml HlthCareAdml r 88.30 -0.39 ... HYCorAdml r 5.97 InfProAd 25.80 +0.04 94.76 +0.07 IntlGrAdml ITBondAdml 11.44 +0.01 ... ITIGradeAdml 9.82 LTGradeAdml 10.66 +0.03 MidCpAdml 184.06 -0.38 11.38 +0.01 MuHYAdml MuIntAdml 14.18 +0.01 11.66 +0.01 MuLTAdml 10.97 +0.01 MuLtdAdml MuShtAdml 15.78 ... PrmcpAdml r 135.37 +0.11 REITAdml r 118.07 +0.99 SmCapAdml 68.63 +0.12 STBondAdml 10.44 +0.01 STIGradeAdml 10.68 ... 10.78 +0.01 TotBdAdml TotIntBdIdxAdm 21.94 +0.03 TotIntlAdmIdx r 30.11 +0.07 64.49 +0.03 TotStAdml 14.25 +0.03 TxMIn r 39.85 +0.09 ValAdml WdsrllAdml 69.06 -0.05 65.39 +0.10 WellsIAdml IntlValEq NA MCapGro 13.1 16.6 52-Wk % Sym Hi/Lo Chg NYSE Arca lows - 22 19.6 IntlStk 8.1 52-Wk % Sym Hi/Lo Chg Stock iShU.S.Insurance IAK iShEdgeMSCIMultif ACWF iShGlobal100 IOO iShMSCIAllPeruCap EPU iShMSCIAustriaCap EWO iShMSCIFranceETF EWQ iShMSCIGermanyETF EWG JPM DivRetIntl JPIH OShFTSEAsiaPacQlty OASI OppGlbESGRevenue ESGF PIMCO DynMultIn MFDX PwrShIndia PIN PwrShRussTop200Val PXLV PwrShS&P500xRate XRLV PwrShS&P500Mom SPMO PwrShWldrClean PBW ProShrUltraDow30 DDM ProShrUltraFnl UYG ProShrUltraJapan EZJ ProShUltDow30 UDOW SPDRS&P1500ValTilt VLU SPDR DJIA Tr DIA SPDR EurSTOXX FEZ SpinFieldUVAUncons FFIU USAACoreInterBd UITB USGasolineFd UGA VanEckIndiaSC SCIF VanEckOilRefin CRAK WisdTrIndiaEarn EPI XtrkrsMSCIAWxUS DBAW XtrkrsMSCIAWxUSHi HDAW XtrkrsMSCIHiDiv HDEF XtrkrsMSCIEurope DBEU Net YTD NAV Chg % Ret Fund 69.87 -0.08 Harding Loevner NA ... Invesco Funds A EqIncA 11.29 +0.02 John Hancock Class 1 15.97 +0.01 LSBalncd 17.14 +0.01 LSGwth John Hancock Instl 23.97 ... DispValMCI JPMorgan Funds MdCpVal L 39.69 -0.20 JPMorgan R Class CoreBond 11.65 +0.01 Lazard Instl 19.75 +0.06 EmgMktEq Loomis Sayles Fds 14.18 +0.01 LSBondI Lord Abbett A ShtDurIncmA p 4.27 ... Lord Abbett F ShtDurIncm 4.27 ... Metropolitan West 10.68 +0.02 TotRetBd 10.67 +0.01 TotRetBdI 10.05 +0.02 TRBdPlan MFS Funds Class I ValueI 40.67 -0.07 MFS Funds Instl IntlEq 25.45 +0.01 Mutual Series NA ... GlbDiscA Oakmark Funds Invest 33.93 +0.01 EqtyInc r 85.00 +0.17 Oakmark OakmrkInt 29.18 +0.07 Old Westbury Fds LrgCpStr 14.91 +0.04 Oppenheimer Y 42.34 +0.07 DevMktY 43.29 -0.12 IntGrowY Parnassus Fds 44.04 +0.01 ParnEqFd PIMCO Fds Instl AllAsset 12.15 ... TotRt 10.30 +0.02 PIMCO Funds A 12.45 ... IncomeFd PIMCO Funds D 12.45 ... IncomeFd PIMCO Funds Instl IncomeFd 12.45 ... PIMCO Funds P IncomeP 12.45 ... Price Funds 97.10 +0.15 BlChip 29.73 +0.10 CapApp 34.80 +0.07 EqInc 69.34 +0.02 EqIndex 69.97 +0.02 Growth HelSci 74.29 +0.78 InstlCapG 39.52 +0.12 IntlEq 0.5 0.1 0.4 2.1 4.0 0.9 0.2 0.3 0.3 0.1 0.3 0.1 0.3 0.2 0.2 0.4 1.6 0.4 0.2 0.8 0.7 ported sales increases except for agriculture. Dow and DuPont in 2015 pitched their blockbuster combination as a way to unite respective strengths ranging from farm pesticides to silicone and bulletproof fibers. Some activist investors contested the breakup strategy, arguing that the split as originally proposed wouldn’t create the most competitive spinoffs. In September DowDuPont revised the plan. 26.2 19.8 21.8 7.0 28.7 3.8 25.8 13.9 15.6 17.2 18.5 19.6 15.3 24.3 NA 6.0 17.1 16.5 23.2 13.7 17.1 11.2 4.7 24.4 27.6 14.1 14.0 2.2 23.5 16.5 7.1 2.2 40.7 4.0 4.3 9.7 14.1 6.7 4.5 5.6 2.6 1.3 24.4 3.8 12.1 1.5 2.2 3.4 2.1 24.6 16.5 23.8 12.0 11.9 8.3 WelltnAdml WndsrAdml Net YTD NAV Chg % Ret 73.94 +0.09 78.97 -0.15 VANGUARD FDS 26.26 +0.05 DivdGro 209.30 -0.94 HlthCare r INSTTRF2020 22.56 +0.03 INSTTRF2025 22.83 +0.03 INSTTRF2030 23.02 +0.03 INSTTRF2035 23.22 +0.03 INSTTRF2040 23.41 +0.03 INSTTRF2045 23.55 +0.03 39.45 +0.02 IntlVal LifeGro 33.19 +0.04 26.97 +0.04 LifeMod 26.83 ... PrmcpCor 33.17 ... SelValu r STAR 27.19 +0.01 10.68 ... STIGrade 15.94 +0.02 TgtRe2015 TgtRe2020 31.65 +0.04 18.55 +0.02 TgtRe2025 33.51 +0.04 TgtRe2030 20.59 +0.03 TgtRe2035 TgtRe2040 35.45 +0.04 22.27 +0.02 TgtRe2045 35.83 +0.04 TgtRe2050 TgtRetInc 13.59 +0.01 TotIntBdIxInv 10.97 +0.01 26.99 +0.04 WellsI Welltn 42.82 +0.06 38.91 -0.03 WndsrII VANGUARD INDEX FDS 238.41 +0.07 500 ExtndIstPl 202.80 +0.19 55.43 +0.19 SmValAdml 10.75 +0.02 TotBd2 TotIntl 18.00 +0.04 64.46 +0.02 TotSt VANGUARD INSTL FDS 34.08 +0.03 BalInst DevMktsIndInst 14.27 +0.03 DevMktsInxInst 22.31 +0.05 82.18 +0.08 ExtndInst GrwthInst 70.15 -0.16 10.51 +0.02 InPrSeIn 235.25 +0.07 InstIdx InstPlus 235.27 +0.08 57.84 +0.02 InstTStPlus 40.66 -0.08 MidCpInst MidCpIstPl 200.53 -0.41 SmCapInst 68.63 +0.12 ... STIGradeInst 10.68 10.78 +0.01 TotBdInst TotBdInst2 10.75 +0.02 10.78 +0.01 TotBdInstPl TotIntBdIdxInst 32.92 +0.04 TotIntlInstIdx r 120.42 +0.29 TotItlInstPlId r 120.44 +0.29 64.50 +0.03 TotStInst 39.85 +0.09 ValueInst Western Asset CorePlusBdI NA ... 11.7 15.0 13.8 16.4 12.0 13.5 14.8 16.1 17.4 17.9 24.3 16.1 12.8 21.0 15.3 15.6 2.2 9.9 12.0 13.5 14.8 16.1 17.3 17.9 17.9 7.3 2.1 8.2 11.7 11.8 17.0 14.0 8.0 3.4 24.5 16.4 11.1 23.9 23.9 14.0 23.5 2.2 17.1 17.1 16.5 14.1 14.1 12.1 2.3 3.4 3.4 3.4 2.2 24.7 24.7 16.6 12.0 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. Friday, November 3, 2017 | B7 MARKETS DIGEST EQUITIES Dow Jones Industrial Average S&P 500 Index Last Year ago 23516.26 s 81.25, or 0.35% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.31 19.61 P/E estimate * 19.54 17.19 Dividend yield 2.18 2.62 All-time high 23516.26, 11/02/17 Nasdaq Composite Index Last 2579.85 s 0.49, or 0.02% 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 6714.94 t 1.59, or 0.02% 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 Session high t DOWN Session open t Close UP Close Open Session low 21500 65-day moving average 2450 65-day moving average 6300 65-day moving average 21000 6200 2420 Bars measure the point change from session's open 20500 July Aug. Sept. 6100 2390 July Oct. Aug. Sept. Aug. Oct. 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 Industrial Average Transportation Avg Utility Average Total Stock Market Barron's 400 23531.38 23350.98 23516.26 81.25 0.35 9811.87 9679.28 9778.33 -5.48 755.25 746.54 750.97 2.02 0.27 26728.99 26581.63 26714.24 687.22 682.97 685.37 8.02 -2.11 0.03 Nasdaq Stock Market Nasdaq Composite 6719.97 Nasdaq 100 6243.74 6677.55 6194.58 -0.06 -0.31 6714.94 -1.59 6236.39 -12.25 23516.26 17888.28 31.2 19.0 10038.13 8053.09 21.4 8.1 3.8 754.80 625.44 14.3 13.9 8.0 26743.96 21514.15 691.56 521.59 24.1 31.4 14.8 13.9 8.4 8.5 6727.67 6248.65 -0.02 -0.20 5046.37 4660.46 32.7 33.3 10.6 24.7 28.2 13.2 14.5 Standard & Poor's 500 Index 2581.11 2566.17 2579.85 0.49 0.02 2581.07 2085.18 23.5 15.2 8.5 MidCap 400 SmallCap 600 1837.71 909.58 1826.18 900.74 1831.34 906.67 1.24 0.25 0.07 0.03 1839.12 918.72 1476.68 703.64 24.0 28.9 10.3 8.2 8.9 10.1 Other Indexes Russell 2000 1499.94 1487.73 1496.55 3.77 0.25 1512.09 1156.89 29.4 10.3 8.4 12377.09 12316.77 12372.96 10.08 12430.52 10289.35 NYSE Composite 541.72 538.80 540.25 -0.71 NYSE Arca Biotech 4166.31 4088.29 4145.28 59.50 NYSE Arca Pharma 535.88 532.25 533.85 -2.36 KBW Bank 102.49 100.81 0.62 PHLX§ Gold/Silver 102.31 82.28 81.00 0.02 PHLX§ Oil Service 81.30 135.05 131.80 132.89 -0.63 1280.60 10.89 1263.76 9.67 1277.34 9.93 Value Line PHLX§ Semiconductor CBOE Volatility 0.08 -0.13 1.46 -0.44 0.61 0.03 -0.47 5.83 -0.27 -2.65 0.46 Philadelphia Stock Exchange 11.9 4.5 455.65 18.6 6.7 3.0 4304.77 2834.14 46.3 34.8 7.3 560.52 463.78 15.0 10.9 0.2 102.31 73.36 39.3 11.5 12.4 96.72 73.03 -9.0 3.1 7.8 192.66 117.79 -11.9 802.88 58.1 9.19 -55.0 1277.34 22.51 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. Volume, Advancers, Decliners Region/Country Index Close Most-active issues in late trading Company Volume (000) Symbol Last Apple AAPL 8,306.9 172.08 Intel INTC 8,232.6 SPDR S&P 500 SPY Net chg After Hours % chg High EMEA Eurozone Belgium France Germany Israel Italy Netherlands Russia Spain Sweden Switzerland U.K. 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 5931.70 Shanghai Composite 3383.31 Hang Seng 28518.64 S&P BSE Sensex 33573.22 Nikkei Stock Avg 22539.12 Straits Times 3380.50 Kospi 2546.36 Weighted 10788.51 394.94 399.80 4102.26 5510.50 13440.93 1427.62 23046.05 553.83 1118.66 10457.80 597.41 9279.65 7555.32 Latest % chg YTD % chg 0.17 0.08 0.14 17.8 18.2 21.7 0.05 0.29 Closed … –0.09 –14.34 Closed … –57.68 –1.36 14.8 22.6 4.8 5.9 29.8 –1.83 –0.46 –0.16 –0.64 –0.35 –14.24 –0.07 –3.79 –0.18 –24.58 –15.28 –1.06 0.24 54.06 –0.12 –0.66 –7.77 –0.69 –48.90 –0.47 –0.03 –0.19 0.13 11.83 0.90 67.36 9.3 14.1 13.8 13.3 17.1 –2.9 19.8 14.6 –2.9 11.8 11.8 12.9 5.8 –6.10 –12.60 –75.42 –27.05 119.04 –11.11 –10.11 –17.85 4.7 9.0 29.6 26.1 17.9 17.3 25.7 16.6 5.03 0.30 0.36 2981.65 385.54 260.43 The Global Dow DJ Global Index DJ Global ex U.S. DJ Americas 620.17 Sao Paulo Bovespa 73823.74 S&P/TSX Comp 16014.99 S&P/BMV IPC 48334.45 Santiago IPSA 4182.63 2.36 174.35 166.68 47.25 0.15 0.32 7,331.9 257.69 0.10 0.04 257.77 257.17 47.33 46.41 6,475.9 25.06 -0.04 -0.16 25.10 25.06 5,573.2 12.43 0.01 0.08 12.45 12.31 iShares MSCI Emg Markets EEM 5,057.2 46.76 0.18 0.39 46.76 46.55 Starbucks SBUX 4,376.7 53.05 -1.82 -3.32 55.27 50.75 General Electric GE 3,869.9 19.93 -0.01 -0.05 19.95 19.82 iShares MSCI Hong Kong EWH F Ford Motor Percentage gainers… Diana Containerships DCIX 28.2 3.45 0.95 38.00 3.90 2.70 Boot Barn Holdings BOOT 6.7 9.89 1.49 17.74 10.10 8.40 Cardtronics Cl A CATM 77.1 21.45 2.98 16.13 25.99 18.47 Floor Decor Cl A FND 15.4 42.20 4.43 11.73 42.20 38.84 Entravision Commun EVC 7.9 5.75 0.60 11.55 6.01 5.10 CBL Assocs Properties CBL ...And losers 228.8 6.95 -1.04 -13.02 7.99 6.90 Clean Energy Fuels CLNE 67.9 2.10 -0.29 -12.13 2.39 1.90 -27.7 -18.9 Bovie Medical BVX 8.4 3.50 -0.47 -11.84 3.95 3.50 40.9 25.8 -29.3 -10.9 Pandora Media P 714.4 6.56 -0.85 -11.47 7.70 6.56 Tableau Software DATA 307.0 73.00 -9.17 -11.16 82.20 70.76 –0.10 –0.37 –0.26 –0.08 0.53 –0.33 –0.40 –0.17 Company Symbol ION Geophysical Payment Data Systems AAC Holdings Electro Scientific Inds Dicerna Pharmaceuticals IO Almost Family Xenetic Biosciences China Internet Nationwide U.S. Global Investors A Juno Therapeutics AFAM Resolute Forest Products Med Transcription Billing Lantheus Holdings ZAGG Inc Alliance One Intl RFP High 52-Week Low % chg 11.95 4.10 13.06 21.98 7.89 3.20 1.17 5.99 4.54 2.42 86.7 86.7 28.5 355.8 162.0 Funko Cl A Kemet TreeHouse Foods Impinj Allena Pharmaceuticals FNKO 51.30 10.90 XBIO 2.80 0.59 CIFS 37.89 7.69 GROW 3.27 0.66 JUNO 59.91 11.60 26.98 26.70 25.46 25.29 24.01 62.95 38.05 5.90 1.75 43.30 10.81 3.32 1.25 60.00 17.52 25.9 -30.0 ... 124.0 163.7 OraSure Technologies Nuvectra Newell Brands Oclaro Inc MicroVision OSUR 7.20 4.09 22.60 18.85 13.20 23.08 21.36 20.86 20.06 20.00 7.40 5.44 22.75 19.38 19.50 80.0 381.8 162.8 201.6 -8.3 Habit Restaurants Cl A ARC Document Solutions BioScrip Teva Pharmaceutical ADR AMAG Pharmaceuticals HABT AAC ESIO DRNA MTBC LNTH ZAGG AOI 1.35 0.72 3.90 3.15 2.20 3.70 0.29 7.95 5.65 9.85 Most Active Stocks Company Symbol Teva Pharmaceutical ADR General Electric AT&T Bank of America Brocade Comms Sys TEVA Finl Select Sector SPDR SPDR S&P 500 Advanced Micro Devices Newell Brands Chesapeake Energy XLF Volume % chg from Latest Session (000) 65-day avg Close % chg 117,209 77,656 T 71,531 BAC 58,726 BRCD 57,519 346.1 43.6 158.2 -9.3 628.7 11.23 -19.90 19.94 -0.40 33.17 -1.13 27.87 1.24 12.58 7.16 50,238 49,064 47,438 47,303 42,963 -1.4 -23.4 -18.3 852.2 45.9 26.89 0.94 257.59 0.04 10.85 0.46 30.01 -26.80 3.66 -7.58 GE SPY AMD NWL CHK A consumer rate against its benchmark over the past year Home Equity Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, 6.00% Home equity loan t 5.00 4.00 t 3.00 2.00 N D J FMAM J J A S ON 2017 1.95% 414-258-5880 Cambridge Savings Bank 2.99% Cambridge, MA 888-418-5626 Thursday City National Bank of West Virginia 2.99% Charleston, WV 304-925-6611 Third Federal S&LA Cleveland, OH 3.24% 888-THIRDFED Dollar Bank, a Federal Savings Bank 3.74% Pittsburgh, PA 800-828-5527 t Prime rate WaterStone Bank, SSB Wauwatosa, WI 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 1.38 1.39 Money market, annual yield 0.32 0.32 Five-year CD, annual yield 1.47 1.47 30-year mortgage, fixed† 4.00 3.95 15-year mortgage, fixed† 3.30 3.24 Jumbo mortgages, $424,100-plus† 4.31 4.38 Five-year adj mortgage (ARM)† 3.48 3.53 New-car loan, 48-month 3.02 3.01 HELOC, $30,000 5.19 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 1.39 0.36 1.47 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.16 -0.10 -0.06 -0.12 0.01 -0.01 -0.29 -0.23 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 BIOS TEVA AMAG Nasdaq NYSE Arca Total volume*2,236,529,092 216,607,084 Adv. volume*1,063,478,414 140,194,810 Decl. volume*1,133,760,449 67,467,149 Issues traded 3,042 1,289 Advances 1,639 728 Declines 1,265 531 Unchanged 138 30 New highs 128 54 New lows 76 22 Closing tick 608 59 Closing Arms† 1.38 0.71 Block trades* 8,012 1,116 * 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. 5 2.25 0 1.50 –5 0.75 –10 0.00 –15 30 Latest Session Close Net chg % chg High 7.07 -4.93 -41.08 15.98 -8.84 -35.62 43.03 -23.33 -35.16 21.55 -11.25 -34.30 9.98 -4.02 -28.71 ... ... 27.35 3.60 90.42 40.50 60.85 19.97 ... ... ... 335.4 -38.3 -14.8 ... 13.76 -5.26 -27.66 10.06 -3.74 -27.10 30.01 -10.99 -26.80 5.96 -2.06 -25.69 1.66 -0.55 -24.89 23.01 7.09 15.00 4.63 55.08 29.70 11.30 5.93 3.25 1.01 88.2 104.3 -37.0 -25.9 58.1 -24.70 -21.62 -20.42 -19.90 -19.75 19.75 9.05 5.55 3.01 3.39 0.98 43.46 10.85 36.83 11.93 -34.5 0.6 -26.0 -71.4 -46.2 9.30 3.48 1.91 11.23 12.80 -3.05 -0.96 -0.49 -2.79 -3.15 52-Week Low % chg Ranked by change from 65-day average* SYLD GBF AMRB GPMT CFCO ATTU IGN THS Volume % chg from Latest Session (000) 65-day avg Close % chg 11215 29.35 3047 36.13 2656 114.21 2048 14.93 1966 17.76 5,270 217 602 170 3,515 1936 1856 1677 1627 1581 7,244 8,391 464 224 13,844 0.38 0.35 0.13 -1.13 -5.43 21.00 -17.55 9.68 -11.76 7.65 16.44 45.40 -2.18 43.03 -35.16 52-Week High Low 29.71 36.40 115.82 15.99 19.30 22.75 29.04 111.23 12.00 17.70 33.34 10.83 12.25 9.55 9.54 4.15 47.91 39.94 90.42 40.50 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days Currencies U.S.-dollar foreign-exchange rates in late New York trading WSJ Dollar index s Euro s Yen Country/currency US$vs, YTDchg Thurs in US$ per US$ (%) Americas Argentina peso .0571 17.5210 Brazil real .3060 3.2681 Canada dollar .7808 1.2808 Chile peso .001590 629.00 Colombia peso .0003303 3028.00 Ecuador US dollar 1 1 Mexico peso .0527 18.9826 Peru new sol .2942 3.399 Uruguay peso .03431 29.1500 Venezuela b. fuerte .090905 11.0006 10.4 0.4 –4.7 –6.1 0.9 unch –8.5 1.4 –0.7 10.1 Asia-Pacific 2017 Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 2.117 2.191 2.237 1.482 –1.142 2.051 2.347 3.047 2.610 5.233 2.870 1.991 2.452 3.085 2.660 5.157 2.950 1.978 2.609 3.390 2.790 6.448 3.120 2.516 1.783 2.730 2.100 4.948 2.270 1.677 1.993 3.169 0.927 9.084 0.554 1.745 807.661 5.431 5.544 6.290 5.279 6.463 5.656 1.902 3.991 2.442 4.136 2.122 2.630 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7714 1.2963 China yuan .1513 6.6102 Hong Kong dollar .1282 7.8012 India rupee .01550 64.505 Indonesia rupiah .0000741 13493 Japan yen .008766 114.08 Kazakhstan tenge .002987 334.74 Macau pataca .1244 8.0391 Malaysia ringgit .2362 4.2345 New Zealand dollar .6914 1.4463 Pakistan rupee .00950 105.255 Philippines peso .0195 51.386 Singapore dollar .7359 1.3589 South Korea won .0008990 1112.35 Sri Lanka rupee .0065104 153.60 Taiwan dollar .03313 30.180 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets –6.6 –4.8 0.6 –5.1 –0.2 –2.5 0.3 1.6 –5.6 0.2 0.8 3.6 –6.1 –7.9 3.5 –7.0 US$vs, YTDchg Thurs in US$ per US$ (%) Country/currency .03022 33.090 –7.6 .00004403 22713 –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 .04538 22.037 –14.2 .1567 6.3836 –9.7 1.1658 .8578 –9.8 .003750 266.64 –9.4 .009428 106.07 –6.1 .1229 8.1356 –5.9 .2753 3.6323 –13.2 .01718 58.197 –5.0 .1191 8.3946 –7.8 1.0006 .9994 –1.9 .2634 3.7972 7.8 .0371 26.9396 –0.5 1.3058 .7658 –5.5 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6472 .3778 0.2 .0566 17.6535 –2.6 .2851 3.5076 –8.9 3.3033 .3027 –0.9 2.5950 .3854 0.1 .2746 3.642 0.04 .2666 3.7504 –0.01 .0715 13.9783 2.1 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.72 –0.03–0.04 –5.62 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Thursday 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 ARC NTLA 1461.370 EMBI Global, J.P. Morgan MVIS Intellia Therapeutics CF Cl A Attunity iShares NA Tech-Mult TreeHouse Foods 26.93 19.40 258.43 208.38 15.65 6.22 55.08 29.70 8.20 3.41 10-yr Treasury, Ryan ALM 1734.358 DJ Corporate 380.087 Aggregate, Barclays Capital 1942.220 High Yield 100, Merrill Lynch 2866.043 Fixed-Rate MBS, Barclays 1987.230 Muni Master, Merrill 521.467 Treasury, Ryan ALM OCLR SPSM 10% 3.00 Close NWL SPDR Portfolio Small Cap Cambria Shareholder Yield iShares Govt/Credit Bond American River Bankshares Granite Point Mtg Trust 10.85 19.63 32.93 16.35 11.43 Corporate Borrowing Rates and Yields Bond total return index NVTR 43.46 32.38 43.03 27.98 12.72 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago ALNA Symbol Yen, euro vs. dollar; dollar vs. major U.S. trading partners 3.75% 5.19% PI Company Forex Race notes and bonds Bankrate.com avg†: THS 52-Week High Low * Volumes of 100,000 shares or more are rounded to the nearest thousand t Selected rates KEM Volume Movers s U.S. consumer rates Symbol 53.21 40.25 32.72 29.12 28.19 CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor Company 4.15 0.97 2.47 4.75 1.59 11.95 3.38 10.02 21.06 7.23 PYDS Total volume* 909,187,337 10,586,396 Adv. volume* 393,291,239 5,056,672 Decl. volume* 502,395,269 5,382,762 Issues traded 3,065 332 Advances 1,468 149 Declines 1,492 167 Unchanged 105 16 New highs 155 2 New lows 92 10 Closing tick 156 46 Closing Arms† 1.40 1.06 Block trades* 6,494 103 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group WSJ .COM Low 3.97 Percentage Gainers... Net chg Americas Brazil Canada Mexico Chile Interest rate NYSE NYSE Amer. Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes World 20.0 545.98 Late Trading TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 604.29 1.05 188.13 54.54 2.935 1274.90 0.18 0.24 0.042 0.80 0.17 604.29 527.06 0.10 195.14 54.54 0.44 3.93 1.45 0.06 1346.00 166.50 42.53 2.56 1127.80 % Chg 14.27 YTD % chg 6.53 2.59 -2.28 1.53 22.12 5.99 -21.19 -2.09 10.86 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 | Friday, November 3, 2017 COMMODITIES Futures Contracts Open Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. 3.1300 3.1470 3.1275 3.1355 0.0025 Nov Dec 3.1370 3.1710 3.1145 3.1435 0.0010 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1272.20 1274.80 1270.30 1274.90 0.80 Dec 1275.20 1285.10 1274.00 1278.10 0.80 Feb'18 1279.70 1289.20 1278.30 1282.40 0.80 April 1285.00 1292.90 1283.00 1286.40 0.90 June 1290.40 1297.00 1286.60 1290.20 0.80 Dec 1304.30 1307.60 1298.90 1302.40 0.80 Palladium (NYM) - 50 troy oz.; $ per troy oz. 1001.55 1003.80 985.35 994.00 –4.15 Dec March'18 986.00 995.15 s 980.05 985.90 –4.15 Platinum (NYM)-50 troy oz.; $ per troy oz. 914.40 917.20 914.00 924.10 –8.90 Nov Jan'18 935.40 937.90 926.10 927.80 –8.90 Silver (CMX)-5,000 troy oz.; $ per troy oz. 17.065 17.065 17.060 17.094 –0.038 Nov Dec 17.150 17.255 17.050 17.137 –0.039 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 54.28 54.84 53.99 54.54 0.24 Dec Jan'18 54.52 55.04 54.19 54.77 0.26 Feb 54.59 55.15 54.29 54.89 0.27 March 54.60 55.17 54.32 54.93 0.27 June 54.15 54.79 53.96 54.58 0.31 Dec 52.66 53.16 52.51 52.98 0.24 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.8632 1.8673 1.8380 1.8539 –.0086 Dec Jan'18 1.8637 1.8680 1.8400 1.8555 –.0078 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1.7460 1.7874 s 1.7340 1.7697 .0287 Dec Jan'18 1.7188 1.7478 s 1.7081 1.7347 .0198 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 2.900 2.957 2.881 2.935 .042 Dec Jan'18 3.019 3.076 3.005 3.051 .034 Feb 3.025 3.083 3.011 3.058 .034 March 2.984 3.051 2.980 3.025 .033 April 2.850 2.894 2.844 2.875 .022 May 2.836 2.877 2.836 2.861 .020 Contract High hilo Low Settle Open interest Chg Corn (CBT)-5,000 bu.; cents per bu. 347.75 352.00 347.50 350.50 Dec March'18 361.25 365.25 360.75 364.00 Oats (CBT)-5,000 bu.; cents per bu. 272.00 272.75 264.25 264.50 Dec March'18 274.00 274.00 269.00 269.50 Soybeans (CBT)-5,000 bu.; cents per bu. 979.50 989.50 979.50 989.00 Nov Jan'18 990.25 1000.50 990.00 999.25 Soybean Meal (CBT)-100 tons; $ per ton. 313.50 317.80 313.30 317.40 Dec Jan'18 315.60 319.80 315.40 319.40 Soybean Oil (CBT)-60,000 lbs.; cents per lb. 34.83 35.10 34.59 34.86 Dec Jan'18 35.01 35.25 34.75 35.02 Rough Rice (CBT)-2,000 cwt.; $ per cwt. 1125.00 1125.00 1115.00 1115.00 Nov Jan'18 1155.50 1155.50 1143.50 1143.50 Wheat (CBT)-5,000 bu.; cents per bu. 417.50 426.75 417.50 426.00 Dec March'18 436.00 445.50 435.75 444.50 Wheat (KC)-5,000 bu.; cents per bu. 415.25 426.75 415.25 425.75 Dec March'18 433.50 444.25 433.25 443.50 Wheat (MPLS)-5,000 bu.; cents per bu. 613.50 624.00 613.50 622.75 Dec March'18 627.75 638.25 627.75 636.50 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 159.725 160.550 s 157.500 157.925 Nov Jan'18 160.725 161.550 s 157.375 158.225 Cattle-Live (CME)-40,000 lbs.; cents per lb. 126.325 127.875 s 123.900 124.325 Dec Feb'18 129.650 130.625 s 128.000 128.750 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 66.475 66.475 65.300 65.800 Dec Feb'18 71.950 72.225 71.000 72.050 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 468.60 471.00 438.00 449.00 Nov Jan'18 454.20 456.50 s 443.60 443.60 Milk (CME)-200,000 lbs., cents per lb. 1,317 152,545 135 372,240 97,120 16,779 14,750 10,552 29,746 5,041 9 70,521 264 143,592 560,089 337,388 146,764 249,437 217,512 269,670 138,611 84,275 161,419 87,562 323,458 228,433 83,911 171,023 123,120 78,235 2.25 770,705 2.25 356,368 –7.00 –5.50 4,830 2,693 8.00 9,125 8.00 322,388 3.80 125,179 3.70 95,489 –.04 142,972 –.04 105,874 –5.00 –7.00 161 9,155 8.00 286,564 8.50 140,503 10.00 158,677 10.00 93,309 8.75 8.75 34,725 25,997 –1.775 –2.425 8,794 28,844 –2.275 129,993 –1.300 97,199 –.800 105,328 –.100 63,426 –17.40 –10.00 757 5,017 Thursday, November 2, 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. Thursday Thursday 17.0800 12917 (U.S.$ equivalent) Coins,wholesale $1,000 face-a 0.9573 1.0416 2.690 2.700 1.990 2.480 2.610 0.930 2.650 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 Other metals LBMA Platinum Price PM *931.0 Platinum,Engelhard industrial 938.0 Platinum,Engelhard fabricated 1038.0 Palladium,Engelhard industrial 1013.0 Palladium,Engelhard fabricated 1113.0 Aluminum, LME, $ per metric ton *2188.0 Copper,Comex spot 3.1355 Iron Ore, 62% Fe CFR China-s 59.3 Shredded Scrap, US Midwest-s,w 286 Steel, HRC USA, FOB Midwest Mill-s 620 Fibers and Textiles Gold, per troy oz 1279.82 1375.81 1279.20 1419.91 *1279.25 *1277.05 1328.50 1341.27 1341.27 1548.16 1255.11 1341.27 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. 17.1700 20.6040 17.1250 21.4060 £12.9800 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 0.6100 0.6833 *79.25 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. 74 3.5050 93.2 473.0 230 88 220 2.9450 372.00 24.00 7.7313 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 16.65 15.88 16.74 15.99 Settle 16.46 15.69 Cocoa (ICE-US)-10 metric tons; $ per ton. Cash Prices | WSJ.com/commodities Energy Contract High hilo Low Open Nov Dec Agriculture Futures Open interest WSJ.com/commodities Thursday 313.90 9.4950 7.5775 4.3450 3.5775 5.2750 SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u Food 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 185.29 172.59 0.8481 2.2225 171.50 174.00 72.50 2344 1.2209 1.4179 0.8950 15.60 0.78 67.08 n.a. 0.9316 n.a. 165.75 Fats and Oils 34.5500 n.a. 0.3600 0.3349 0.2550 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 Chg 16.56 15.73 Open interest –.07 –.16 4,661 4,079 Dec March'18 2,127 2,120 2,127 2,120 2,048 2,051 2,052 2,055 –71 86,529 –64 112,932 Dec March'18 123.35 126.80 127.60 130.95 122.55 126.10 126.40 129.85 3.45 118,155 3.40 67,821 March May 14.65 14.70 14.65 14.70 14.15 14.26 14.23 14.36 –.38 419,204 –.33 136,130 March 27.29 27.29 27.29 27.28 .03 Dec March'18 68.40 68.35 69.30 69.00 68.11 68.06 69.08 68.97 .91 103,148 .82 88,636 151.90 152.05 152.80 155.40 151.90 151.25 155.75 154.90 Coffee (ICE-US)-37,500 lbs.; cents per lb. Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Cotton (ICE-US)-50,000 lbs.; cents per lb. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Nov Jan'18 2,743 2.85 2.85 51 5,694 Interest Rate Futures Dec 152-290 153-220 152-220 153-150 23.0 732,276 March'18 152-000 152-150 151-210 152-110 24.0 9,659 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 124-310 125-085 124-285 125-045 7.5 3,201,191 March'18 124-240 124-295 124-190 124-265 8.0 27,899 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 117-055 117-102 117-040 117-072 3.2 3,078,271 March'18 116-292 117-025 116-287 117-002 3.7 37,822 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-207 107-220 107-202 107-210 .7 1,645,329 March'18 107-157 107-167 107-155 107-160 1.0 34,753 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Nov 98.843 98.843 98.843 98.843 … 212,829 Jan'18 98.625 98.630 t 98.620 98.630 … 355,393 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 100.953 101.203 100.938 101.063 .219 28,607 1 Month Libor (CME)-$3,000,000; pts of 100% Dec 98.5575 98.5575 t 98.5575 98.5525 –.0075 2,264 Eurodollar (CME)-$1,000,000; pts of 100% Nov 98.5850 98.5875 98.5825 98.5850 –.0025 96,341 Dec 98.4800 98.4900 98.4750 98.4850 … 1,709,356 March'18 98.3350 98.3450 98.3300 98.3400 .0050 1,270,831 Dec 98.0600 98.0800 98.0500 98.0750 .0200 1,578,604 Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ .8765 .8806 .8759 .8775 .0017 Settle Chg Open interest Dec .8777 .8824 .8771 .8788 .0017 268,235 Nov Dec .7779 .7776 .7808 .7816 .7776 .7769 .7807 .7809 .0042 1,433 .0043 152,485 Nov Dec 1.3294 1.3266 1.3294 1.3316 1.3051 1.3057 1.3066 –.0188 1,166 1.3078 –.0188 173,981 Dec March'18 1.0001 1.0102 1.0078 1.0144 .9994 1.0091 1.0036 1.0104 .7674 .7675 .7697 .7695 .7669 .7727 .7726 .7723 .7721 .7722 .7674 .7669 .7693 .7691 .7669 .7715 .7713 .7711 .7710 .7709 Nov Dec .05218 .05202 .05226 .05246 .05202 .05189 .05270 .00053 29 .05238 .00053 176,479 Nov Dec 1.1639 1.1651 1.1690 1.1715 1.1633 1.1640 1.1667 1.1688 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 Mexican Peso (CME)-MXN 500,000; $ per MXN Euro (CME)-€125,000; $ per € Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Nov Contract High hilo Low Open .0042 .0042 76,077 172 .0048 1,291 .0049 127,800 .0049 732 .0049 494 .0050 743 .0041 5,457 .0041 424,276 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 23472 s 23459 s 23359 23358 23289 23280 23444 23436 2563.00 2576.70 S&P 500 Index (CME)-$250 x index 2571.90 Dec 2578.20 Mini S&P 500 (CME)-$50 x index 2571.50 2578.50 2562.25 2576.75 Dec March'18 2572.50 2578.50 2562.75 2577.00 Mini S&P Midcap 400 (CME)-$100 x index 1824.80 1837.30 1818.60 1830.30 Dec Mini Nasdaq 100 (CME)-$20 x index 6230.0 6263.0 s 6192.5 6235.8 Dec March'18 6240.0 6275.0 s 6206.0 6248.8 Mini Russell 2000 (ICE-US)-$100 x index 1490.40 1501.70 1482.50 1496.20 Dec March'18 1494.50 1499.30 1492.90 1497.20 Mini Russell 1000 (ICE-US)-$100 x index 1426.90 1428.50 1420.90 1427.90 Dec U.S. Dollar Index (ICE-US)-$1,000 x index 94.67 94.70 94.31 94.59 Dec March'18 94.32 94.40 94.09 94.30 2,675 72 156,890 72 1,644 1.90 59,360 2.00 3,131,769 2.00 71,058 1.30 91,921 –5.0 269,121 –5.0 1,672 4.30 4.30 66,219 78 1.40 254 –.12 –.12 46,633 2,209 Source: SIX Financial Information Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return close YTD total return (%) Yield (%) Latest Low High Index 3.3 YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1942.22 Total return close 2.610 2.100 2.790 U.S. Aggregate U.S. Corporate Indexes Bloomberg Barclays 1987.23 2.3 Mortgage-Backed 1954.37 1.8 Ginnie Mae (GNMA) 2.830 2.170 3.090 2.870 2.270 3.120 3.160 2.950 3.520 1165.41 2.5 Fannie mae (FNMA) 2.890 2.300 3.120 2623.69 4.0 Intermediate 2.710 2.360 3.010 1794.91 2.6 Freddie Mac (FHLMC) 2.900 2.310 3.130 3859.91 9.8 Long term 4.120 4.110 4.710 521.47 4.5 Muni Master 1.991 1.677 2.516 568.24 4.3 Double-A-rated 2.640 2.290 2.870 364.97 5.1 7-12 year 1.998 1.674 2.618 3.440 3.320 3.870 409.08 6.0 12-22 year 2.444 2.114 3.047 394.19 6.2 22-plus year 2.930 2.592 3.622 5.8 2784.09 U.S. Corporate 6.4 718.96 Triple-B-rated High Yield Bonds Merrill Lynch 7.5 417.56 8.7 417.93 6.8 2866.04 High Yield Constrained 5.532 5.373 6.858 Global Government J.P. Morgan† Triple-C-rated 10.517 9.584 13.189 544.17 1.3 Global Government 1.420 1.080 1.560 High Yield 100 5.233 4.948 6.448 756.42 0.4 Canada 2.010 1.390 2.190 379.64 7.8 Global High Yield Constrained 5.022 4.934 6.450 372.39 0.9 EMU§ 1.048 0.835 1.363 308.26 7.4 Europe High Yield Constrained 1.993 1.993 3.814 712.66 0.9 France 0.810 0.540 1.210 U.S Agency Bloomberg Barclays 509.94 -0.9 Germany 0.430 0.170 0.620 1640.13 2.2 U.S Agency 1.980 1.330 2.010 287.79 -0.1 Japan 0.410 0.170 0.460 1466.60 1.4 10-20 years 1.820 1.140 1.840 562.53 -0.7 Netherlands 0.560 0.290 0.760 3361.78 7.5 20-plus years 2.930 2.670 3.460 920.93 U.K. 1.580 1.340 1.790 2.820 2.470 3.090 807.66 4.9 Yankee 2458.55 0.8 9.3 Emerging Markets ** 5.431 5.279 6.290 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 11/1 Source: WSJ Market Data Group *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds Borrowing Benchmarks | WSJ.com/bonds Global Government Bonds: Mapping Yields Money Rates 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 November 2, 2017 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Inflation Sept. index level Chg From (%) Aug. '17 Sept. '16 0.53 0.19 246.819 252.941 2.2 1.7 International rates Latest Week ago Secondary market 30-year mortgage yields 30 days 60 days 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 Week Latest ago 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 1.38 0.15 Overnight repurchase 1.23 U.S. 1.10 U.S. government rates 1.75 1.75 1.75 1.00 1.1700 1.3125 1.0000 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 0.3500 0.5625 0.2500 0.3000 0.3200 Federal funds 1.1700 1.3125 1.0500 1.1600 1.1700 Treasury bill auction 4 weeks 13 weeks 26 weeks 52-Week high low Call money 3.00 3.00 3.00 2.25 90 days 1.28 1.30 1.31 0.62 Libor One month Three month Six month One year 1.24212 1.39139 1.58907 1.86317 1.24166 1.37796 1.56447 1.84289 1.24333 1.39139 1.58907 1.86317 0.53256 0.88094 1.24267 1.55622 1.020 1.005 1.300 0.240 1.130 1.105 1.180 0.350 1.260 1.245 1.260 0.500 One month Three month Six month One year -0.399 -0.378 -0.316 -0.233 -0.371 -0.331 -0.274 -0.183 Value Traded -0.403 -0.381 -0.322 -0.233 -0.376 -0.322 -0.212 -0.075 —52-WEEK— High Low -0.405 -0.381 -0.322 -0.233 -0.366 -0.311 -0.210 -0.069 -0.375 -0.332 -0.276 -0.189 52-Week High Low Treasury MBS ETF 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 iShMSCI EAFE iShMSCIEAFESC 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 EFA SCZ 10.68 91.33 53.13 24.07 5.59 68.48 26.89 96.59 80.94 71.90 109.74 105.04 123.06 65.48 56.17 62.45 259.37 182.61 74.42 59.02 109.35 94.85 71.65 51.40 12.27 120.99 87.97 116.15 106.74 70.52 69.91 63.06 –2.02 –15.2 –0.75 12.2 2.7 –0.24 0.25 19.6 –0.15 –18.4 –0.29 –9.1 0.94 15.7 –0.02 11.5 –0.46 17.4 0.57 15.6 1.4 0.03 0.1 ... 0.4 0.07 0.20 22.1 0.14 32.3 0.16 23.7 0.05 15.3 0.04 10.4 8.2 0.12 0.05 15.1 1.2 0.05 7.1 0.26 –0.01 17.0 0.25 13.7 0.16 10.7 3.3 –0.02 1.6 –0.06 5.4 0.28 0.4 0.01 0.14 19.2 0.30 21.1 –0.22 26.5 ETF Open Implied Settle Change Interest Rate 2.750 Treasury Nov Treasury Dec Treasury Jan 98.840 -0.005 8062 1.160 98.705 -0.010 2038 1.295 98.610 -0.010 450 1.390 Weekly survey Week ago Year ago iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth 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 EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA 46.58 44.11 59.05 312.06 110.58 129.97 143.36 119.81 180.11 148.71 124.25 152.65 200.33 85.63 208.98 148.23 109.52 38.29 113.87 84.23 106.20 125.30 116.18 101.71 151.81 46.75 23.11 37.02 121.19 34.26 62.28 61.55 234.96 0.13 0.39 0.12 –0.04 0.05 0.07 0.04 0.01 0.01 0.30 0.50 0.03 0.04 –0.10 0.24 0.04 0.05 0.03 0.15 0.02 0.13 0.44 0.12 –0.03 –0.19 0.26 ... –0.05 0.07 0.29 ... 0.02 0.33 33.0 27.5 20.9 17.6 2.2 23.9 15.2 6.9 17.0 10.3 4.5 14.8 12.0 6.5 14.7 21.7 8.0 2.9 0.6 –0.3 1.3 5.2 19.3 0.4 28.1 12.4 –1.1 1.6 10.6 23.8 15.0 15.6 19.0 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 XtrkrsMSCIEAFE 1.491 2.343 0.821 1.805 1.827 t 2.664 t l 1.846 1.968 1.650 20.7 23.0 l 2.712 2.857 2.356 31.8 33.9 55.2 France 2 -0.590 s 10 0.629 t l -0.590 -0.490 -220.6 -142.1 l 0.630 0.739 -0.600 -221.0 0.446 -171.6 -174.3 -135.9 Germany 2 -0.743 s 10 0.376 s l -0.745 -0.693 -236.1 -145.4 l 0.375 0.454 -0.633 -236.3 0.133 -196.9 -199.8 -167.1 Italy 2 -0.212 t 10 1.804 s l -0.209 -0.109 0.007 -183.2 -182.5 -81.4 l 1.803 2.144 1.598 -54.1 -57.0 -20.7 Japan 2 -0.161 s 10 0.053 t l -0.162 -0.113 -0.252 -107.4 0.061 0.071 -178.1 -0.058 -229.2 -177.7 l -231.2 -186.3 Spain 2 -0.374 t 10 1.483 s l -0.363 -0.282 -0.179 -199.4 -197.9 -100.0 l 1.475 1.677 1.198 -86.2 -89.8 -60.7 0.407 t 1.265 t l 0.484 0.432 0.183 -121.4 -113.2 -63.8 l 1.346 1.329 1.068 -108.1 -102.8 -73.7 1.750 U.K. 2 4.250 10 82.8 Source: Tullett Prebon Corporate Debt in that same company’s share price. Investment-grade spreads that tightened the most… Freddie Mac 30-year fixed 15-year fixed Five-year ARM 0.100 1.450 DTCC GCF Repo Index Futures ETF Closing Chg YTD Symbol Price (%) (%) 2.050 0.100 3.94 3.27 3.23 3.94 3.25 3.21 3.54 2.84 2.87 Exchange-Traded Portfolios | WSJ.com/ETFresearch Thursday, November 2, 2017 Closing Chg YTD Symbol Price (%) (%) 0.500 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago 1.616 2.373 10 0.000 Year ago l Australia 2 2.750 Month ago l 2.750 0.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous U.S. 2 1.620 s 10 2.345 t 2.750 1.210 24.100 1.366 0.244 1.205 115.750 1.506 0.257 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. Largest 100 exchange-traded funds, latest session 1.500 2.250 † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Country/ Coupon (%) Maturity, in years 0.050 DTCC GCF Repo Index Latest Euro Libor Discount Effective rate High Low Bid Offer Latest Commercial paper (AA financial) Policy Rates Euro zone Switzerland Britain Australia 3.467 3.508 3.865 3.032 3.488 3.540 3.899 3.063 -0.372 -0.329 -0.276 -0.189 One month Three month Six month One year Other short-term rates 52-Week High Low Prime rates U.S. Canada Japan Week Latest ago Euro interbank offered rate (Euribor) Fannie Mae U.S. consumer price index All items Core —52-WEEK— High Low ** EMBI Global Index Closing Chg YTD Symbol Price (%) (%) 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 DBEF 333.02 257.59 92.60 62.99 55.01 22.58 163.29 129.05 97.10 44.37 44.88 58.69 54.04 136.24 150.73 82.79 84.42 87.78 118.30 148.62 106.12 83.30 236.64 79.55 79.81 143.22 81.73 54.93 56.14 132.47 72.45 102.18 66.64 58.55 32.22 0.08 0.04 0.16 0.05 0.36 0.44 0.07 0.36 0.36 0.20 0.31 0.26 0.32 –0.25 –0.23 0.13 0.08 0.06 0.01 –0.22 –0.42 0.85 0.04 ... –0.03 0.19 0.10 0.09 0.21 0.02 0.11 0.23 –0.09 –0.20 0.19 10.4 15.2 8.2 30.3 13.3 7.9 34.4 6.7 14.0 21.4 25.4 22.4 22.3 22.2 18.9 9.3 1.6 2.4 15.6 12.9 9.2 0.9 15.3 0.1 0.6 11.1 1.2 1.2 22.4 14.9 18.8 9.9 16.1 18.2 14.8 Spread*, in basis points One-day change Stock Performance Close ($) % chg Issuer Symbol Coupon (%) Select Income REIT Delphi Automotive Prudential Financial Intel SIR DLPH PRU INTC 3.600 3.150 4.500 4.000 Feb. 1, ’20 Nov. 19, ’20 Nov. 15, ’20 Dec. 15, ’32 69 31 42 81 –52 –27 –15 –10 n.a. n.a. n.a. 77 24.58 99.31 112.94 47.10 1.53 –0.07 2.13 0.83 Hershey Macy's Retail Holdings Apple Bnp Paribas HSY M AAPL BNP 2.300 4.500 2.850 5.000 Aug. 15, ’26 Dec. 15, ’34 May 6, ’21 Jan. 15, ’21 66 357 5 23 –9 –8 –7 –7 71 321 8 24 106.59 … 168.11 ... –0.13 … 0.73 ... n.a. 139 101 48 … 35.34 ... 88.79 … –4.10 ... 0.58 40 157 n.a. 64 30.01 42.60 11.19 19.94 –26.80 –1.23 –1.84 –0.40 Maturity Current Last week …And spreads that widened the most Teva Pharmaceutical Finance Mylan NV Bnp Paribas S.A. Canadian Imperial Bank of Commerce TEVA MYL BNP CM 6.150 Feb. 1, ’36 3.950 June 15, ’26 7.625 March 30, ’49 2.100 Oct. 5, ’20 387 174 106 46 19 18 18 Newell Brands* General Motors Pitney Bowes General Electric NWL GM PBI GE 3.150 April 1, ’21 4.200 Oct. 1, ’27 3.625 Sept. 15, ’20 5.000 Jan. 21, ’49 58 164 265 84 15 14 13 12 76 High-yield issues with the biggest price increases… Issuer Symbol Alliance One International Murray Energy Mattel Resolute Forest Products AOI 9.875 MURREN 11.250 MAT 5.450 RFP 5.875 PBF Holding Seagate HDD Cayman CF Industries USG PBFENE STX CF USG Coupon (%) Maturity Bond Price as % of face value Current One-day change July 15, ’21 April 15, ’21 Nov. 1, ’41 May 15, ’23 92.500 57.500 91.945 102.875 7.000 Nov. 15, ’23 4.875 June 1, ’27 5.150 March 15, ’34 4.875 June 1, ’27 105.500 98.000 101.563 104.000 2.50 2.50 2.18 1.63 1.38 1.38 1.19 1.08 Last week Stock Performance Close ($) % chg 88.750 58.938 n.a. 101.063 13.20 ... 13.04 7.20 20.00 ... –3.76 23.08 n.a. 97.500 100.000 104.281 ... … 38.55 33.95 ... … 1.34 –1.45 97.625 110.640 72.750 n.a. … … ... 43.03 … … ... –35.16 97.563 76.750 83.750 83.500 299.26 9.18 ... … –6.80 3.61 ... … …And with the biggest price decreases CHS Com Hlth Sys Qwest EP Energy Treehouse Foods CYH CTL EPENEG THS 5.125 Aug. 1, ’21 6.750 Dec. 1, ’21 8.000 Feb. 15, ’25 4.875 March 15, ’22 Tesla Frontier Communications Valeant Pharmaceuticals International Endo Dac TSLA FTR VRXCN ENDP 5.300 7.125 6.125 6.000 Aug. 15, ’25 Jan. 15, ’23 April 15, ’25 July 15, ’23 93.905 –3.10 –2.59 108.000 –2.50 72.000 –2.26 101.125 94.875 74.125 82.750 77.870 –1.88 –1.63 –1.50 –1.38 *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. Friday, November 3, 2017 | B9 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. Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters. FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies. Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Thursday, November 2, 2017 Net Sym Close Chg Stock NYSE ABB ABB 26.09 -0.15 t AES AES 10.79 0.22 Aflac AFL 84.41 0.12 t AT&T T 33.17 -0.38 AbbottLabs ABT 54.37 0.37 AbbVie ABBV 91.02 -1.42 Accenture ACN 143.43 0.47 AcuityBrands AYI 161.23 -4.49 Adient ADNT 81.08 -3.85 t AdvanceAuto AAP 81.69 0.94 AdvSemiEngg ASX 6.20 0.10 Aegon AEG 6.00 0.05 s AerCap AER 53.01 0.15 Aetna AET 172.32 0.52 AffiliatedMgrs AMG 185.34 -0.77 AgilentTechs A 68.13 0.11 AgnicoEagle AEM 44.05 -0.21 Agrium AGU 108.32 -1.19 AirProducts APD 159.41 -0.51 t AlaskaAir ALK 63.65 -2.13 s Albemarle ALB 136.91 -5.42 Alcoa AA 47.46 -0.24 s AlexandriaRealEst ARE 124.56 -0.65 s Alibaba BABA184.81 -1.27 Alleghany Y 567.00 2.43 Allegion ALLE 82.23 -0.50 Allergan AGN 175.38 -9.20 AllianceData ADS 226.24 0.04 AllianceBernstein AB 26.05 0.15 AlliantEnergy LNT 43.06 -0.01 AllisonTransm ALSN 44.08 0.32 s Allstate ALL 97.85 3.60 s AllyFinancial ALLY 26.54 0.19 AlticeUSA ATUS 24.50 -0.44 Altria MO 63.90 -0.80 AlumofChina ACH 19.65 0.32 Ambev ABEV 6.28 -0.01 s Ameren AEE 62.32 0.52 AmericaMovil AMX 17.21 0.10 AmericaMovil A AMOV 17.10 0.10 AmCampus ACC 41.73 -0.47 s AEP AEP 73.72 -0.29 AmericanExpress AXP 95.98 0.19 AmericanFin AFG 103.00 1.19 AIG AIG 64.98 0.32 AmerTowerREIT AMT 142.44 1.63 s AmerWaterWorks AWK 89.45 2.24 Amerigas APU 45.00 -0.35 Ameriprise AMP 160.56 3.18 AmerisourceBrgn ABC 73.23 -3.39 Ametek AME 68.38 1.13 Amphenol APH 87.59 0.72 AnadarkoPetrol APC 49.39 -0.75 s Andeavor ANDV 109.73 0.52 AB InBev BUD 120.93 -1.21 AnnalyCap NLY 11.29 -0.23 AnteroResources AR 18.90 -0.78 Anthem ANTM 210.59 1.06 Aon AON138.96 -3.88 Apache APA 41.68 -0.55 ApartmtInv AIV 43.60 -0.74 ApolloGlobalMgmt APO 30.64 -0.99 AquaAmerica WTR 35.93 0.50 Aramark ARMK 43.50 0.24 ArcelorMittal MT 29.53 0.10 ArcherDaniels ADM 40.16 -0.46 Arconic ARNC 25.24 0.18 AristaNetworks ANET 181.17-16.09 ArrowElec ARW 79.10 -3.05 AstraZeneca AZN 34.11 -0.45 Athene ATH 47.58 -3.56 AtmosEnergy ATO 86.52 -0.45 Autohome ATHM 58.35 0.90 Autoliv ALV 126.73 1.37 AutoZone AZO 602.70 17.82 Avalonbay AVB 180.35 -3.05 Avangrid AGR 50.45 -0.82 s AveryDennison AVY 108.44 1.41 AxaltaCoating AXTA 32.77 -0.65 BB&T BBT 49.59 0.04 BCE BCE 47.14 0.89 Net Sym Close Chg Stock BHPBilliton BHP 42.80 0.77 BHPBilliton BBL 37.86 0.72 BP BP 40.67 -0.09 BRF BRFS 13.27 -0.11 t BT Group BT 16.76 -0.79 BWX Tech BWXT 61.35 0.99 BakerHughes BHGE 31.28 -0.57 Ball BLL 41.80 -0.90 BancoBilbaoViz BBVA 8.71 0.02 BancodeChile BCH 92.61 1.31 BancoMacro BMA 119.73 -0.97 BcoSantChile BSAC 31.18 0.22 BancoSantander SAN 6.77 ... BanColombia CIB 37.52 -0.22 BankofAmerica BAC 27.87 0.34 BankofMontreal BMO 77.39 0.71 BankNY Mellon BK 51.40 -0.25 s BkNovaScotia BNS 65.33 0.74 Barclays BCS 9.71 0.02 s Bard CR BCR 335.57 8.79 BarrickGold ABX 14.10 -0.12 BaxterIntl BAX 64.07 -0.13 s BectonDickinson BDX 224.02 15.96 Berkley WRB 69.18 0.64 BerkHathwy A BRK.A 2834343433.99 BerkHathwy B BRK.B 188.61 1.44 BerryGlobal BERY 58.52 -0.65 BestBuy BBY 57.34 1.33 Bio-RadLab A BIO 216.94 -0.92 BlackKnight BKI 45.95 0.85 BlackBerry BB 10.71 -0.07 BlackRock BLK 474.92 5.63 BlackstoneGroup BX 32.51 -0.38 BoardwalkPipe BWP 14.16 -0.02 Boeing BA 262.63 4.13 BorgWarner BWA 52.90 0.20 BostonProperties BXP 122.77 0.79 BostonScientific BSX 27.44 -0.41 Braskem BAK 31.17 0.17 Bristol-Myers BMY 62.23 0.07 BritishAmTob BTI 64.71 -0.08 BroadridgeFinl BR 86.26 -0.16 BrookfieldMgt BAM 41.61 0.08 BrookfieldInfr BIP 42.22 -0.26 s Brown&Brown BRO 50.40 0.31 Brown-Forman A BF.A 56.24 0.07 Brown-Forman B BF.B 55.93 0.50 BuckeyePtrs BPL 52.70 -0.96 Bunge BG 69.13 -0.43 BurlingtonStores BURL 98.12 2.77 CBD Pao CBD 22.79 -0.15 CBRE Group CBG 39.21 -0.04 t CBS A CBS.A 55.34 -1.59 t CBS B CBS 54.46 -1.73 s CF Industries CF 38.55 0.51 CGI Group GIB 52.75 0.15 CIT Group CIT 46.33 0.05 CMS Energy CMS 48.12 0.38 CNA Fin CNA 54.48 0.02 s CNOOC CEO 141.04 4.93 CPFLEnergia CPL 16.77 ... CRH CRH 36.56 -0.23 CVS Health CVS 69.38 0.38 s CabotOil COG 28.26 0.35 CamdenProperty CPT 90.80 -0.62 CampbellSoup CPB 46.85 -0.68 CIBC CM 88.79 0.51 CanNtlRlwy CNI 80.33 0.31 s CanNaturalRes CNQ 35.28 0.26 CanPacRlwy CP 175.21 1.88 Canon CAJ 37.73 0.04 CapitalOne COF 92.45 0.55 t CardinalHealth CAH 61.07 -1.11 Carlisle CSL 109.97 0.14 CarMax KMX 75.98 1.52 Carnival CCL 65.20 0.63 Carnival CUK 65.60 0.61 Caterpillar CAT 136.47 0.18 Celanese A CE 106.77 1.41 Cemex CX 8.08 0.12 CenovusEnergy CVE 10.41 0.32 Centene CNC 95.81 -0.84 CenterPointEner CNP 29.74 0.03 CentraisElBras EBR 6.21 -0.08 CenturyLink CTL 17.46 -0.39 Stock Chemours CC 55.83 Chevron CVX 115.33 ChinaEastrnAir CEA 26.21 ChinaLifeIns LFC 17.60 ChinaMobile CHL 50.76 ChinaPetrol SNP 74.55 ChinaSoAirlines ZNH 39.47 ChinaTelecom CHA 50.59 ChinaUnicom CHU 14.83 Chipotle CMG 279.46 Chubb CB 149.26 ChunghwaTelecom CHT 33.79 Church&Dwight CHD 45.43 s Cigna CI 198.39 CimarexEnergy XEC 120.87 Citigroup C 74.74 CitizensFin CFG 38.74 Clorox CLX 129.28 Coca-Cola KO 45.88 Coca-Cola Euro CCE 39.61 Coca-Cola Femsa KOF 67.48 Colgate-Palmolive CL 70.94 ColonyNorthStar CLNS 12.37 Comerica CMA 79.44 SABESP SBS 9.18 ConagraBrands CAG 33.86 ConchoRscs CXO 139.98 ConocoPhillips COP 52.48 s ConEd ED 86.80 ConstBrands A STZ 214.32 ContinentalRscs CLR 41.14 Cooper COO 226.90 Corning GLW 31.58 t Coty COTY 14.46 Credicorp BAP 207.04 s CreditSuisse CS 16.38 CrestwoodEquity CEQP 25.00 CrownCastle CCI 106.37 CrownHoldings CCK 59.88 Cullen/Frost CFR 98.99 Cummins CMI 173.29 DTE Energy DTE 110.80 DXC Tech DXC 90.69 s Danaher DHR 92.71 Darden DRI 81.81 DaVita DVA 59.52 s Deere DE 134.44 DellTechnologies DVMT 81.86 DelphiAutomotive DLPH 99.31 DeltaAir DAL 50.34 DeutscheBank DB 17.06 DevonEnergy DVN 38.83 Diageo DEO 134.99 DigitalRealty DLR 118.77 DiscoverFinSvcs DFS 66.93 Disney DIS 98.35 DolbyLab DLB 58.65 DollarGeneral DG 82.51 DominionEner D 80.84 Domino's DPZ 178.09 Donaldson DCI 47.89 DouglasEmmett DEI 39.71 Dover DOV 95.04 DowDuPont DWDP 72.04 DrPepperSnap DPS 85.34 DrReddy'sLab RDY 37.62 s DukeEnergy DUK 88.56 DukeRealty DRE 28.71 ENI E 33.37 EOG Rscs EOG 102.95 EQT EQT 62.03 EQT Midstream EQM 71.93 EastmanChem EMN 91.13 Eaton ETN 79.38 EatonVance EV 51.04 Ecolab ECL 131.24 s Ecopetrol EC 11.27 EdisonInt EIX 79.07 EdwardsLife EW 101.38 EmersonElectric EMR 63.62 EnbridgeEnPtrs EEP 14.77 t Enbridge ENB 36.71 Encana ECA 12.05 EnelAmericas ENIA 10.75 EnelChile ENIC 5.80 Dividend Changes Symbol Amount Yld % New/Old Frq Payable / Record Increased Cantel Medical CDW Corp. Estee Lauder Cl A Lincoln National Macquarie Infrastructure Natural Health Trends Rockwell Automation Schweitzer-Mauduit Intl Shore Bancshares Simulations Plus Spectra Energy Partners Westlake Chem Partners CMD CDW EL LNC MIC NHTC ROK SWM SHBI SLP SEP WLKP 0.2 1.2 1.3 1.7 8.4 2.5 1.7 3.8 1.7 1.5 6.7 6.7 APO EFC TCAP 5.1 10.7 12.4 .085 /.07 SA .21 /.16 Q .38 /.34 Q .33 /.29 Q 1.42 /1.38 Q .12 /.11 Q .835 /.76 Q .43 /.42 Q .07 /.05 Q .06 /.05 Q .7263 /.71375 Q .3756 /.365 Q Jan31 /Jan17 Dec11 /Nov24 Dec15 /Nov30 Feb01 /Jan10 Nov16 /Nov13 Nov24 /Nov14 Dec11 /Nov13 Dec22 /Dec01 Nov30 /Nov15 Nov20 /Nov13 Nov29 /Nov13 Nov29 /Nov14 Reduced Apollo Global Mgmt A Ellington Financial Triangle Capital .39 /.52 .41 /.45 .30 /.45 Q Q Q Nov30 /Nov21 Dec15 /Dec01 Dec20 /Dec06 Initial Guggenheim BS 2025 HY Guggenheim BulletShs 2027 XAI Octagon FR & Alt Incm .1145 .0543 .069 BSJP BSCR XFLT Nov07 /Nov03 Nov07 /Nov03 Dec01 /Nov15 Funds and investment companies AllianzGI Conv & Inc 2024 AllianzGI Conv & Incm AllianzGI Conv & Incm II AllianzGI Div Incm Avenue Incm Cr Strat Fd BlackRck Rscs Comm Str Tr BlackRock 2022 Glbl Incm BlackRock CA Municipal Tr Blackrock Core Bond Tr BlackRock Corp Hi Yd Fd BlackRock Enh Eq Div Tr BlackRock Enh Gl Div Tr BlackRock FR Incm Strat BlackRock Income Trust Blackrock Invest BlackRock Long-Term Muni BlackRock MA Tax-Exempt BlackRock MD Muni BlackRock Multi-Sector IT BlackRock Mun BlackRock Mun 2030 Target BlackRock Mun Inco BlackRock Muni BlackRock Municipal Trust BlackRock NJ Muni BlackRock NJ Municipal Tr BlackRock NY Municipal Tr BlackRock Science & Tech Blackrock Strategic Muni BlackRock Taxable Mun Bd BlackRock Utility & Infr BlackRock VA Muni BlackRockDurInco Tr BlackRockFL Muni 2020 BlackRockMuni BlackRockMuni 2020 BlackRockMuni Tr BlackRockNY TrII Blkrck MunHl NJ Qlty BlkrckNYMuni Qlty BlkRk Credit Alloc Incm BlkRk Debt Strat Fd BlkRk Engy Res Tr BlkRk Enh Cap Inco BlkRk Enhncd Govt Fd Blkrk FltRt InTr CBH NCV NCZ ACV ACP BCX BGIO BFZ BHK HYT BDJ BOE FRA BKT BKN BTA MHE BZM BIT BAF BTT BBF BBK BFK BLJ BNJ BNY BST BSD BBN BUI BHV BLW BFO BLE BKK BYM BFY MUJ BSE BTZ DSU BGR CII EGF BGT 5.8 11.0 11.0 9.0 10.0 6.9 6.0 5.0 5.5 7.5 6.1 6.9 5.2 5.1 5.1 5.5 4.7 4.1 7.6 5.4 3.9 5.9 5.0 5.5 5.0 5.4 4.9 5.0 5.6 6.8 7.0 4.2 6.0 2.5 5.4 3.1 5.0 4.6 5.7 4.7 6.0 7.0 6.8 6.2 3.6 4.9 -1.14 -0.57 -0.21 -0.02 -0.01 0.74 0.60 0.31 0.29 9.26 -2.05 0.02 -0.75 0.55 -0.34 0.71 0.37 1.26 0.08 -0.79 -0.02 0.38 0.03 0.99 -0.09 -0.27 -0.28 0.38 1.00 -1.68 -0.60 -7.07 -0.05 -0.85 -1.56 0.77 -0.20 1.23 -0.69 0.25 0.46 0.52 -0.81 -0.20 -0.27 -0.31 0.17 -0.54 -0.07 -0.01 0.50 -0.25 0.56 1.83 0.03 -0.68 0.30 1.28 0.35 0.84 0.28 -0.18 0.50 -1.28 -0.55 1.95 0.70 ... 0.38 0.66 -0.03 -1.19 0.15 -1.53 0.37 -0.03 -0.12 -0.01 -0.44 -0.45 -0.64 -1.61 -0.08 0.11 0.17 EnelGenChile EOCC 26.06 0.60 EnergyTrfrEquity ETE 17.51 -0.41 EnergyTransfer ETP 17.46 -0.20 Entergy ETR 86.64 0.97 EnterpriseProd EPD 24.55 -0.47 Equifax EFX 108.92 -0.88 EquityLife ELS 89.10 0.15 EquityResdntl EQR 66.85 -0.96 EssexProp ESS 253.84 -8.69 EsteeLauder EL 120.15 -1.97 EverestRe RE 227.44 -7.35 EversourceEner ES 63.23 0.55 s Exelon EXC 40.72 0.57 s ExtraSpaceSt EXR 83.12 1.52 ExxonMobil XOM 83.53 -0.34 FMC FMC 90.15 -1.75 FactSet FDS 189.98 4.59 FederalRealty FRT 128.10 6.40 FedEx FDX 225.30 -0.16 Ferrari RACE117.11 -2.89 FiatChrysler FCAU 17.86 0.28 FibriaCelulose FBR 16.19 0.07 s FidelityNatlFin FNF 37.74 -0.04 FNFV Group FNFV 17.85 0.35 FidelityNtlInfo FIS 93.36 0.25 58.com WUBA 67.37 -0.10 FirstAmerFin FAF 54.25 -0.26 FirstData FDC 17.06 -0.28 FirstRepBank FRC 93.89 -2.97 FirstEnergy FE 32.60 0.04 s FleetCorTech FLT 182.31 18.00 Flowserve FLS 39.14 -4.85 Fluor FLR 44.46 0.52 FomentoEconMex FMX 86.09 -0.85 FordMotor F 12.42 0.07 ForestCIty A FCE.A 24.90 -0.06 Fortis FTS 36.57 -0.12 Fortive FTV 73.31 0.45 FortBrandsHome FBHS 64.56 -0.64 Franco-Nevada FNV 80.30 0.48 FranklinRscs BEN 43.03 0.62 Freeport-McMoRan FCX 14.23 -0.15 FreseniusMed FMS 47.84 -0.65 GGP GGP 19.67 0.23 s Gallagher AJG 63.88 0.28 Gap GPS 26.45 0.47 GardnerDenver GDI 29.31 0.37 Gartner IT 120.34 -5.26 Gazit-Globe GZT 9.48 0.02 GeneralDynamics GD 203.82 2.20 t GeneralElec GE 19.94 -0.08 GeneralMills GIS 51.76 -0.27 GeneralMotors GM 42.60 -0.53 Genpact G 30.27 0.05 GenuineParts GPC 88.53 1.10 Gildan GIL 29.19 -0.11 t GlaxoSmithKline GSK 35.95 -0.25 GlobalPayments GPN 102.81 0.26 GoDaddy GDDY 46.72 -0.11 Goldcorp GG 13.06 -0.11 GoldmanSachs GS 246.88 2.62 Graco GGG 131.06 0.57 Grainger GWW 199.03 3.45 GreatPlainsEner GXP 32.82 0.33 GpoAvalAcciones AVAL 8.42 -0.01 GpFinSantandMex BSMX 8.28 0.03 GrupoTelevisa TV 21.11 -0.51 GuidewireSoftware GWRE 80.41 2.48 HCA Healthcare HCA 76.43 -0.40 HCP HCP 26.95 0.93 HDFC Bank HDB 94.96 1.66 HP HPQ 21.44 -0.03 HSBC HSBC 48.35 -0.33 Halliburton HAL 42.69 -0.36 Hanesbrands HBI 20.08 -1.93 HarleyDavidson HOG 48.32 0.52 Harris HRS 137.10 -0.05 HartfordFinl HIG 55.71 0.46 HealthcareAmer HTA 29.87 0.10 Heico HEI 91.19 1.30 Heico A HEI.A 76.60 1.30 Helmerich&Payne HP 54.88 0.29 Herbalife HLF 70.47 -0.37 Hershey HSY 106.59 -0.14 Hess HES 44.41 0.11 HewlettPackard HPE 13.63 0.03 s Hilton HLT 72.44 ... s HollyFrontier HFC 40.25 0.60 HomeDepot HD 162.71 -2.67 s HondaMotor HMC 32.80 0.93 Honeywell HON 145.41 0.48 HormelFoods HRL 31.51 0.30 DR Horton DHI 44.63 -0.10 HostHotels HST 19.46 -0.27 HuanengPower HNP 26.53 0.14 Hubbell HUBB 126.19 0.03 Humana HUM 256.35 0.87 HuntingtonIngalls HII 234.57 0.91 Huntsman HUN 31.66 -0.17 s HyattHotels H 66.71 3.89 ICICI Bank IBN 9.63 0.12 ING Groep ING 18.50 -0.02 Invesco IVZ 36.16 0.40 IDEX IEX 128.48 0.45 IllinoisToolWks ITW 156.98 1.86 Infosys INFY 14.59 -0.06 Ingersoll-Rand IR 87.60 0.07 Company Dividend announcements from November 2. Company Net Sym Close Chg .046 .065 .0575 .167 .12 .0516 .05 .0595 .065 .07 .0467 .078 .061 .0265 .062 .0545 .053 .0474 .1167 .0685 .0718 .07238 .0635 .065 .0615 .0696 .06 .11 .065 .1318 .121 .063 .0795 .031 .065 .0395 .06 .061 .0675 .052 .067 .0685 .0776 .0828 .041 .0583 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Dec01 /Nov13 Dec01 /Nov13 Dec01 /Nov13 Dec01 /Nov13 Nov30 /Nov13 Nov30 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Symbol BlkRk Health Sci BlkRk Intl Grwth&Inco BlkRk Muni Inter Dur BlkRk Muni NY Inter Dur BlkRk MuniAssets Fd BlkRk Munienhanced BlkRk MuniHldgs BlkRk MuniHldgs CA Qlty BlkRk MuniHldgs II BlkRk MuniHldgs Inv BlkRk MuniHldgs Qlty II BlkRk MuniHldgs Quality BlkRk MuniVest BlkRk MuniVest II BlkRk MuniYield BlkRk MuniYld Arizona BlkRk MuniYld CA Fd BlkRk MuniYld CA Quality BlkRk MuniYld Ins Qlty BlkRk MuniYld Inv BlkRk MuniYld MI Qlty BlkRk MuniYld NJ Fd BlkRk MuniYld PA Quality BlkRk MuniYld Qlty II BlkRk MuniYld Quality BlkRk NY Muni BlRk MuHldg NY Qlty BlRk Muyld NY Qlty BlRkMunyldQltyIII BulletShares 2017 CB CS X-Links Multi-Asset Hi Cushing Energy Incm Fd Cushing Renaissance Fund CushingMLPTotalReturnFd DoubleLine Incm Solutions Doubleline Oppor Credit Duff & Phelps Sel Energy Eatn Vnc MI Muni Eatn Vnc NJ Muni Eatn Vnc NY Muni Eatn Vnc OH Muni Eatn Vnc PA Muni Eaton CA Trust Eaton MA Trust Eaton MI Trust Eaton NJ Eaton NY Trust Eaton OH Trsut Eaton PA Trust Eaton Vance BuyWrite Opp Eaton Vance CA Mun Bd Eaton Vance Eqty Inco Fd Eaton Vance Eqty Inco II Eaton Vance FR 2022 Eaton Vance FR Incm Plus Eaton Vance FR Incm Tr Eaton Vance Hi Incm 2021 Eaton Vance Mun Bd Fd Eaton Vance Mun Bd Fd II Eaton Vance Mun Incm 2028 Eaton Vance Mun Income Eaton Vance Sr Incm Tr Eaton Vance Tax-Mng Div Eaton Vance Tax-Mngd Opp Eaton Vnce NY Eaton Vnce CA2 Eaton Vnce Ins MA EatonVance TxAdv Opport EatonVnc SrFltRate Etn Vnc Short Dur Fd Etn Vnc Tax Mgd Buy-Write EtnVnc TaxAdvDiv EtnVncLtdFd EtnVncRskMngd EtnVncTxAdvGblDiv New Highs and Lows | WSJ.com/newhighs Stock 52-Wk % 52-Wk % Sym Hi/Lo Chg Stock Sym Hi/Lo Chg 52-Wk % Stock Sym Hi/Lo Chg FT DevMktsXUS FDTS 42.81 1.0 HaymakerAcqnUn HYACU 10.08 0.3 218.05 121.06 17.70 3.00 22.80 7.77 23.44 25.41 7.89 94.80 68.90 21.98 491.80 57.00 29.39 61.27 0.6 7.4 2.1 -11.9 2.5 4.7 0.3 -0.2 28.2 1.6 1.9 29.1 4.6 0.1 1.0 0.5 FTEurozoneAlpha FEUZ FT GerAlpha FGM FT GlbNatRscs FTRI FT JapanAlpha FJP FT NasdGlblAuto CARZ FlexShUSQualLC QLC ForresterResearch FORR FoundationMed FMI GilatSatellite GILT GlacierBancorp GBCI GladstoneInvt GAIN GlbPartnerAcqnWt GPACW GoldenEnt GDEN GrandCanyonEduc LOPE HMN Fin HMNF HailiangEduc HLG Hardinge HDNG 43.72 0.2 HorizDAXGermany 49.42 0.2 IAC/InterActive 12.21 0.2 ILG 58.44 0.3 Immucell 42.13 -0.1 Intel 32.09 0.3 InteractiveBrkrs 45.70 1.6 IntuitiveSurgical 50.45 19.5 iShGlbCleanEnergy 7.50 0.5 iShGlbTimber 38.49 1.4 JackHenry 10.61 1.9 JunoTherap 1.05 19.2 KLX 28.66 6.7 KellyServices B 95.51 3.7 LGI Homes 19.10 3.8 LakelandFin 28.96 8.2 Lantheus 17.41 4.1 LimelightNetworks BME BGY MUI MNE MUA MEN MHD MUC MUH MFL MUE MUS MVF MVT MYD MZA MYC MCA MFT MYF MIY MYJ MPA MQT MQY BQH MHN MYN MYI BSCH MLTI SRF SZC SRV DSL DBL DSE MIW EMJ NYH EIO EIP CEV MMV EMI EVJ EVY EVO EVP ETV EVM EOI EOS EFL EFF EFT EHT EIM EIV ETX EVN EVF ETY ETW ENX EIA MAB ETO EFR EVG ETB EVT EVV ETJ ETG Stock Continued From Page B6 ChurchillDowns CHDN Cimpress CMPR CliftonBancorp CSBK CounterPath CPAH Cresud CRESY CumberlandPharm CPIX DavisFinl DFNL DavisWorldwide DWLD DicernaPharma DRNA DollarTree DLTR Ebix EBIX ElectroScientific ESIO Equinix EQIX FS Bancorp FSBW FifthThirdBncp FITB FT DevMkts FDT Net Sym Close Chg Stock DAX IAC ILG ICCC INTC IBKR ISRG ICLN WOOD JKHY JUNO KLXI KELYB LGIH LKFN LNTH LLNW 31.91 131.11 30.15 8.49 47.23 55.66 384.20 9.38 70.69 111.60 60.00 56.69 28.00 61.66 50.00 22.75 5.42 0.5 0.9 1.4 4.6 0.8 2.1 1.0 0.3 0.3 1.1 24.0 1.7 21.7 -2.2 1.9 20.9 -1.5 Net Sym Close Chg Stock Ingredion INGR 129.28 1.49 ICE ICE 68.67 2.45 InterContinentl IHG 56.27 0.14 IBM IBM 153.35 -0.68 IntlFlavors IFF 148.20 -0.12 IntlPaper IP 57.50 -0.22 t Interpublic IPG 18.93 -0.52 InvitationHomes INVH 23.21 0.56 IronMountain IRM 39.89 0.08 IsraelChemicals ICL 4.24 0.06 ItauUnibanco ITUB 12.68 0.03 JPMorganChase JPM 101.59 0.67 JacobsEngineering JEC 58.74 0.45 JamesHardie JHX 15.07 -0.05 JanusHenderson JHG 34.93 0.40 J&J JNJ 139.93 -0.05 JohnsonControls JCI 40.65 -0.55 JonesLangLaSalle JLL 129.11 -1.69 JuniperNetworks JNPR 24.40 -0.46 KAR Auction KAR 48.35 0.95 KB Fin KB 53.38 0.43 KKR KKR 19.90 -0.01 KT KT 14.06 -0.07 KSCitySouthern KSU 105.75 0.29 Kellogg K 62.38 -0.63 KeyCorp KEY 18.44 0.16 KeysightTechs KEYS 44.36 -0.21 KilroyRealty KRC 72.12 0.43 KimberlyClark KMB 111.55 -0.50 KimcoRealty KIM 18.96 0.41 t KinderMorgan KMI 17.80 -0.33 Knight-Swift KNX 41.47 0.38 Kohl's KSS 42.24 0.34 KoninklijkePhil PHG 41.12 -0.12 KoreaElcPwr KEP 17.36 -0.03 Kroger KR 21.18 0.28 s Kyocera KYO 69.73 0.34 LATAMAirlines LTM 13.52 0.08 L Brands LB 47.10 3.49 LG Display LPL 13.19 0.06 LINE LN 41.90 -0.18 L3 Tech LLL 187.56 2.01 LabCpAm LH 151.81 0.50 LambWeston LW 51.80 0.64 LasVegasSands LVS 64.90 0.53 Lazard LAZ 46.87 -0.53 Lear LEA 176.83 -0.32 Leggett&Platt LEG 46.11 -0.39 s Leidos LDOS 62.82 -0.01 Lennar A LEN 55.10 -1.86 Lennar B LEN.B 46.74 -2.36 LennoxIntl LII 189.83 -0.04 LeucadiaNatl LUK 25.45 0.12 s LibertyProperty LPT 43.79 0.37 EliLilly LLY 83.13 0.24 s LincolnNational LNC 76.72 1.16 LionsGate A LGF.A 28.49 -0.76 LionsGate B LGF.B 27.34 -0.50 LiveNationEnt LYV 40.92 -1.55 LloydsBanking LYG 3.63 -0.07 LockheedMartin LMT 310.86 4.26 s Loews L 49.50 -0.04 Lowe's LOW 76.65 -3.27 LyondellBasell LYB 103.54 0.11 M&T Bank MTB 169.03 1.75 MGM Resorts MGM 30.71 -0.11 MPLX MPLX 34.84 -0.44 s MSCI MSCI 125.42 7.83 Macerich MAC 55.65 0.68 t MacquarieInfr MIC 67.56 -2.51 Macy's M 18.78 -0.17 MagellanMid MMP 66.86 -1.41 MagnaIntl MGA 55.23 0.10 s Manpower MAN 125.43 1.59 ManulifeFin MFC 20.70 0.28 MarathonOil MRO 15.44 0.57 s MarathonPetrol MPC 62.17 1.28 Markel MKL 1090.39 10.32 Marsh&McLennan MMC 83.66 1.24 MartinMarietta MLM208.96 -8.34 Masco MAS 38.89 -0.48 Mastercard MA 148.25 -0.64 McCormick MKC 98.05 -1.80 McCormickVtg MKC.V 97.51 -2.54 s McDonalds MCD 168.10 1.73 McKesson MCK 137.06 -2.61 Medtronic MDT 77.87 -2.44 Merck MRK 55.37 0.03 s MetLife MET 55.73 1.86 MettlerToledo MTD 671.60-17.51 MichaelKors KORS 47.93 -0.55 MicroFocus MFGP 34.86 -0.52 MidAmApt MAA 102.17 -0.94 MitsubishiUFJ MTU 6.84 0.04 MizuhoFin MFG 3.68 ... MobileTeleSys MBT 10.82 -0.22 MohawkIndustries MHK 257.79 -4.66 MolsonCoors B TAP 79.08 -1.96 Monsanto MON 120.43 -0.71 Moody's MCO 143.53 0.04 MorganStanley MS 50.42 0.79 Mosaic MOS 22.47 -0.17 MotorolaSolutions MSI 90.02 -0.54 s NRG Energy NRG 25.97 1.13 NTTDoCoMo DCM 24.22 -0.06 NVR NVR 3199.93-62.36 NationalGrid NGG 60.78 0.23 Amount Yld % New/Old Frq 6.7 6.9 4.2 3.9 4.6 5.7 5.4 5.0 5.4 5.7 5.6 5.7 5.7 5.7 5.6 4.9 4.9 4.7 5.7 6.1 5.5 5.6 5.3 5.0 5.7 4.8 5.1 5.0 5.8 1.0 3.2 5.6 8.9 9.9 8.6 8.7 15.3 4.3 4.7 4.5 4.4 4.6 3.6 3.5 3.6 4.6 4.6 4.0 4.2 8.8 4.9 7.3 7.0 4.8 5.5 5.8 5.9 5.0 4.7 4.2 5.2 5.7 8.7 9.2 4.9 4.5 3.9 8.7 6.0 6.5 7.8 7.7 6.9 10.0 7.1 .20 .038 .0495 .0445 .0575 .0565 .0745 .0615 .0675 .0715 .064 .0635 .046 .073 .067 .062 .062 .0585 .067 .078 .064 .075 .0623 .054 .0725 .059 .058 .054 .068 .0181 .0755 .04 .1367 .0903 .15 .167 .22 .0475 .0491 .0439 .0469 .0486 .0371 .0388 .0391 .0457 .05 .0451 .0421 .1108 .0487 .0864 .0875 .0396 .075 .07 .05 .0521 .048 .0709 .0541 .031 .0843 .091 .0515 .0442 .0434 .18 .072 .0765 .108 .145 .0806 .076 .1025 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Q M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Payable / Record Nov30 /Nov15 Nov30 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Nov07 /Nov03 Nov21 /Nov13 Nov30 /Nov16 Nov30 /Nov16 Nov30 /Nov16 Nov30 /Nov16 Nov30 /Nov16 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov20 /Nov13 Nov20 /Nov13 Nov20 /Nov13 Nov20 /Nov13 Nov20 /Nov13 Nov20 /Nov13 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov20 /Nov13 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov30 /Nov22 Nov20 /Nov13 Nov30 /Nov22 Nov30 /Nov22 52-Wk % Sym Hi/Lo Chg Stock 78.36 6.7 PaymentDataSys LivaNova LIVN 70.75 11.2 PinnacleEnt MGPIngredients MGPI 51.56 11.1 PwrShDynFinl ManTechIntl MANT 121.25 -0.4 QAD B Marriott MAR 27.64 2.9 QAD A MatchGroup MTCH 15.00 5.3 Qualys MercerIntl MERC 18.50 3.3 Radware MerchantsBancorp MBIN 45.80 -1.1 ScientificGames MonarchCasino MCRI 84.61 2.2 SelectiveIns NICE NICE 17.08 14.6 Sigmatron NMI Holdings NMIH 88.38 2.5 SilvercrestAsset NVE NVEC 74.96 19.4 SinovacBiotech Neurocrine NBIX 15.28 1.0 SunHydraulics NewaterTech NEWA 52.35 11.9 TechTarget Novanta NOVT 23.78 0.8 TillCapital NuvNasd100Dyn QQQX Orbotech 49.23 5.6 TransActTechs ORBK 0.58 7.0 US GlobalInv OrigoAcqnRt OACQR 47.45 2.2 UniversalForest OtterTail OTTR 19.25 2.7 UroGenPharma PCSB Fin PCSB 67.12 1.0 UTStarcom PTC PTC 47.80 3.0 ViperEnergyPtrs Park-Ohio PKOH Stock Net Sym Close Chg NatlOilwell NOV 33.36 -0.70 NatlRetailProp NNN 41.13 0.89 NewOrientalEduc EDU 81.67 -0.79 NY CmntyBcp NYCB 12.60 0.11 t NewellBrands NWL 30.01-10.99 NewfieldExpln NFX 29.49 -1.41 NewmontMining NEM 36.48 0.79 NextEraEnergy NEE 149.86 -3.52 t NielsenHoldings NLSN 36.81 0.65 Nike NKE 55.12 0.05 NiSource NI 26.94 0.36 NobleEnergy NBL 27.85 -0.70 Nokia NOK 5.03 0.09 NomuraHoldings NMR 5.71 -0.05 t Nordstrom JWN 39.35 -0.59 NorfolkSouthern NSC 132.15 0.92 NorthropGrumman NOC 301.36 7.19 Novartis NVS 82.78 0.01 NovoNordisk NVO 49.64 -0.05 Nucor NUE 58.45 -0.35 t NuSTAREnergy NS 32.08 -1.27 OGE Energy OGE 36.06 -0.54 ONEOK OKE 53.35 -1.18 OccidentalPetrol OXY 67.90 2.44 Och-Ziff OZM 3.50 -0.31 Olin OLN 35.78 -0.42 t Omnicom OMC 66.19 -1.44 Oracle ORCL 50.28 -0.36 Orange ORAN 16.61 0.14 OrbitalATK OA 132.70 -0.07 s Orix IX 89.37 1.28 Oshkosh OSK 87.03 -0.63 s OwensCorning OC 81.50 -0.79 PG&E PCG 56.65 -0.59 PLDT PHI 33.25 0.19 PNC Fin PNC 138.40 1.46 POSCO PKX 73.00 -0.04 PPG Ind PPG 116.16 0.24 PPL PPL 36.90 -0.04 PVH PVH 127.56 -0.35 PackagingCpAm PKG 116.21 -0.36 PaloAltoNtwks PANW 143.23 -0.76 ParkHotels PK 29.05 0.12 s ParkerHannifin PH 187.12 5.13 ParsleyEnergy PE 26.73 -0.36 Pearson PSO 9.08 -0.17 PembinaPipeline PBA 33.55 -0.11 Pentair PNR 69.93 0.67 PepsiCo PEP 110.05 -0.08 PerkinElmer PKI 72.07 -0.20 Perrigo PRGO 81.27 -1.28 PetroChina PTR 68.82 2.78 PetroleoBrasil PBR 10.80 -0.03 PetroleoBrasilA PBR.A 10.36 ... Pfizer PFE 35.46 0.20 PhilipMorris PM 102.80 -0.95 Phillips66 PSX 93.46 1.16 PinnacleFoods PF 54.10 -0.52 PinnacleWest PNW 87.92 0.46 PioneerNatRscs PXD 147.80 -6.17 PlainsAllAmPipe PAA 20.21 -0.39 PlainsGP PAGP 20.25 -0.47 PolarisIndustries PII 118.40 -0.24 Potash POT 19.42 -0.21 Praxair PX 147.90 -0.02 s PrincipalFin PFG 68.89 1.76 Procter&Gamble PG 86.51 -0.38 s Progressive PGR 49.31 0.51 s Prologis PLD 65.94 0.94 PrudentialFin PRU 112.94 2.36 Prudential PUK 48.90 -0.05 PublicServiceEnt PEG 49.79 0.28 PublicStorage PSA 208.33 1.81 PulteGroup PHM 30.09 -0.32 QuantaServices PWR 36.56 -0.78 Qudian QD 25.27 -1.78 QuestDiag DGX 93.75 0.65 QuintilesIMS Q 107.30 -1.13 RELX RENX 22.13 -0.20 RELX RELX 22.88 -0.19 RPM RPM 52.68 -0.18 RalphLauren RL 91.73 2.28 RaymondJames RJF 86.02 2.21 Raytheon RTN 184.02 3.76 RealtyIncome O 54.92 0.99 RedHat RHT 120.99 -0.27 RegencyCtrs REG 65.28 3.16 RegionsFin RF 15.71 0.15 ReinsuranceGrp RGA 149.07 -1.43 RelianceSteel RS 78.50 0.75 RepublicServices RSG 64.80 0.25 ResMed RMD 82.86 -2.91 RestaurantBrands QSR 65.51 0.85 RiceEnergy RICE 28.27 0.06 RioTinto RIO 49.48 0.45 RobertHalf RHI 51.85 0.30 Rockwell ROK 199.22 4.06 s RockwellCollins COL 136.02 0.17 RogersComm B RCI 51.65 -0.03 Rollins ROL 44.70 1.00 RoperTech ROP 256.68 -1.53 RoyalBkCanada RY 79.10 0.79 RoyalBkScotland RBS 7.47 -0.14 RoyalCaribbean RCL 123.09 2.23 s RoyalDutchA RDS.A 64.22 1.18 s RoyalDutchB RDS.B 66.03 0.83 SAP SAP 115.52 -0.75 Company 52-Wk % Sym Hi/Lo Chg Stock PYDS PNK PFI QADB QADA QLYS RDWR SGMS SIGI SGMA SAMG SVA SNHY TTGT TIL TACT GROW UFPI URGN UTSI VNOM 4.10 26.74 34.27 31.40 38.80 57.40 19.31 49.70 60.50 9.88 16.80 7.32 58.94 12.60 5.11 12.05 3.32 114.28 33.98 3.22 20.24 S&P Global SPGI 155.50 -1.06 SINOPECShanghai SHI 59.42 -1.69 SK Telecom SKM 26.23 0.11 SLGreenRealty SLG 95.19 ... Salesforce.com CRM 102.60 0.65 Sanofi SNY 46.22 -0.26 s SantanderConUSA SC 16.94 0.12 Sasol SSL 29.66 -0.15 t Scana SCG 42.01 -0.62 Schlumberger SLB 63.25 -1.03 SchwabC SCHW 45.06 0.82 ScottsMiracleGro SMG 99.84 -0.26 SealedAir SEE 43.89 -0.07 SemicondctrMfg SMI 7.96 -0.27 SempraEnergy SRE 117.81 1.18 SensataTech ST 48.09 -0.16 ServiceCorp SCI 35.24 0.18 ServiceMaster SERV 46.99 -0.17 ServiceNow NOW 124.34 -0.17 ShawComm B SJR 23.14 0.21 SherwinWilliams SHW 392.11 -3.66 ShinhanFin SHG 45.42 0.18 Shopify SHOP 99.89 3.69 SimonProperty SPG 159.36 2.27 SmithAO AOS 60.08 0.16 Smith&Nephew SNN 36.42 -0.49 Smucker SJM 103.13 -2.09 Snap SNAP 14.55 0.04 SnapOn SNA 158.50 0.14 SOQUIMICH SQM 58.05 -3.23 Sony SNE 44.89 1.35 s Southern SO 53.25 1.17 SoCopper SCCO 42.94 -0.06 SouthwestAirlines LUV 53.99 ... SpectraEnerPtrs SEP 43.29 -0.38 t SpectrumBrands SPB 102.30 -7.54 s SpiritAeroSys SPR 82.62 3.41 Sprint S 6.43 -0.03 Square SQ 36.07 -0.40 StanleyBlackDck SWK 161.81 0.77 StarwoodProp STWD 21.67 0.04 StateStreet STT 92.51 0.26 Statoil STO 20.34 -0.08 Steris STE 87.72 -1.53 STMicroelec STM 23.97 0.19 Stryker SYK 155.02 0.59 SumitomoMits SMFG 8.11 0.04 s SunCommunities SUI 91.23 0.12 SunLifeFinancial SLF 39.18 0.21 SuncorEnergy SU 34.86 0.45 SunTrustBanks STI 60.64 0.11 SynchronyFin SYF 33.22 0.39 Syngenta SYT 92.30 -0.04 Sysco SYY 55.84 0.28 TAL Education TAL 27.40 0.36 TE Connectivity TEL 91.57 -0.30 Telus TU 36.34 -0.07 Ternium TX 29.84 -0.09 TIM Part TSU 18.38 0.02 TJX TJX 70.21 0.49 s TableauSoftware DATA 82.17 1.41 TaiwanSemi TSM 42.15 0.05 Tapestry TPR 41.35 0.67 TargaResources TRGP 42.82 0.81 Target TGT 59.79 0.93 TataMotors TTM 33.21 0.22 TechnipFMC FTI 28.25 0.49 TeckRscsB TECK 20.98 -0.12 s TelecomArgentina TEO 34.11 0.34 TelecomItalia TI 8.95 0.26 TelecomItalia A TI.A 7.30 0.14 s TeledyneTech TDY 178.09 8.23 s Teleflex TFX 254.80 13.09 TelefonicaBras VIV 15.34 -0.07 Telefonica TEF 10.47 0.01 TelekmIndonesia TLK 29.89 0.47 Tenaris TS 30.58 3.21 Teradyne TER 42.55 0.01 t TevaPharm TEVA 11.23 -2.79 Textron TXT 54.28 0.88 ThermoFisherSci TMO 191.28 -2.91 ThomsonReuters TRI 44.46 0.23 ThorIndustries THO 136.72 -0.10 3M MMM 232.23 2.05 Tiffany TIF 93.01 -0.97 TimeWarner TWX 94.70 -3.69 Toll Bros TOL 43.79 -2.84 Torchmark TMK 85.54 0.78 Toro TTC 62.76 -0.38 TorontoDomBk TD 57.32 0.45 s Total TOT 56.57 0.35 TotalSystem TSS 72.17 0.03 s ToyotaMotor TM 125.31 0.88 TransCanada TRP 47.84 -0.14 TransDigm TDG 282.55 1.60 TransUnion TRU 53.44 -0.04 s Travelers TRV 134.69 1.22 TurkcellIletism TKC 9.45 -0.32 TurquoiseHill TRQ 3.05 -0.04 Twitter TWTR 19.71 -0.90 TylerTech TYL 174.64 -1.08 TysonFoods TSN 73.15 -0.16 UBS Group UBS 17.26 0.36 UDR UDR 38.13 -0.97 UGI UGI 47.56 -0.30 US Foods USFD 27.59 0.10 UltraparPart UGP 23.58 0.10 Unilever UN 57.14 ... Symbol EtnVncTxMngGlDvEqInc EV National Municipal Opp Genl American Investors Genl American Investors Guggenheim BS 2017 HY Guggenheim BS 2018 HY Guggenheim BS 2019 HY Guggenheim BS 2020 HY Guggenheim BS 2021 HY Guggenheim BS 2022 HY Guggenheim BS 2023 HY Guggenheim BS 2024 HY Guggenheim BulletShr 2018 Guggenheim BulletShr 2019 Guggenheim BulletShs 2020 Guggenheim Bulletshs 2021 Guggenheim BulletShs 2022 Guggenheim BulletShs 2023 Guggenheim BulletShs 2024 Guggenheim BulletShs 2025 Guggenheim BulletShs 2026 Guggenheim TR Bd Guggenheim Ultra Shrt Dur HnckJohn TxAdv Invesco Adv Mun Incm II Invesco Bond Fund Invesco CA Value Mun Incm Invesco Credit Opps Fund Invesco High Incm 2023 Invesco High Income Tr II Invesco Inv Grade Muni Invesco Inv Grade NY Muni Invesco Mun Incm Opps Tr Invesco Mun Opportunity Invesco Municipal Trust Invesco PA Value Mun Incm Invesco Qlty Mun Inco Invesco Senior Income Tr Invesco Value Mun Incm Tr iSh Conservative Allocat iSh Int Rate Hdgd Corp Bd iSh Int Rate Hi Yield Bd iSh Interest Rate Hdg 10+ iSh Interest Rate Hdg EM iSh Yield Optimized Bd iShrs Mrnngstr Multi Asst Ivy High Income Opps Fund JHancock Pr Div John Hancock Pfd II John Hancock Pfd Inc III John Hancock Pfd Income Mangd Durtn InvGr Mun Fd MFS California Muni Fund MFS Charter MFS Govt Mkts Income Tr MFS Hi Inc Muni MFS Hi Yld Muni MFS Inc Tr MFS Intermed Hi Inc MFS Invest Grade Muni MFS Multimkt MFS Munl Inco MFS Special Value NewAmFd Nuv Float Rte Opp Fd Nuv Inter Duration Qlty Nuveen AMT-Free Mun Nuveen AMT-Free Mun Value Nuveen AMT-Free Quality Nuveen AZ Quality Muni Nuveen Build Am Bd Fd Nuveen Build Am Bd Opp Fd Nuveen CA AMT-Free Qual Nuveen CA Mun Value Fd 2 Nuveen CA Muni Value 40.2 1.0 0.5 2.1 2.8 2.7 ... 1.4 1.4 1.6 3.4 0.1 2.2 0.9 9.1 19.4 25.3 ... 5.3 0.6 -0.9 Net Sym Close Chg Stock EXG EOT GAM GAM BSJH BSJI BSJJ BSJK BSJL BSJM BSJN BSJO BSCI BSCJ BSCK BSCL BSCM BSCN BSCO BSCP BSCQ GTO GSY HTD VKI VBF VCV VTA IHIT VLT VGM VTN OIA VMO VKQ VPV IQI VVR IIM AOK LQDH HYGH CLYH EMBH BYLD IYLD IVH PDT HPF HPS HPI MZF CCA MCR MGF CXE CMU MIN CIF CXH MMT MFM MFV HYB JRO NIQ NVG NUW NEA NAZ NBB NBD NKX NCB NCA Unilever UL 55.71 -0.05 UnionPacific UNP 118.39 1.39 UnitedContinental UAL 58.27 -0.37 UnitedMicro UMC 2.56 -0.02 UPS B UPS 116.87 -0.59 UnitedRentals URI 145.58 1.91 US Bancorp USB 54.88 0.40 US Steel X 27.59 0.29 UnitedTech UTX 121.46 1.34 UnitedHealth UNH 211.10 1.57 UniversalHealthB UHS 102.40 0.28 UnumGroup UNM 52.91 0.91 VEREIT VER 7.92 0.05 VF VFC 69.91 -0.24 Visa V 110.98 -0.09 s VailResorts MTN 231.80 1.33 Vale VALE 10.26 0.22 s ValeroEnergy VLO 81.59 0.88 Vantiv VNTV 68.80 -1.05 VarianMed VAR 104.67 0.45 Vedanta VEDL 21.30 0.08 VeevaSystems VEEV 60.95 0.40 Ventas VTR 63.84 0.77 Verizon VZ 47.46 -0.37 VistraEnergy VST 19.12 -0.09 VMware VMW118.90 -0.22 VornadoRealty VNO 74.03 -0.57 VoyaFinancial VOYA 42.51 1.21 VulcanMaterials VMC124.27 3.25 WABCO WBC 148.99 1.73 WEC Energy WEC 67.61 0.66 W.P.Carey WPC 68.55 0.32 Wabtec WAB 76.43 -0.21 s Wal-Mart WMT 88.80 0.86 WasteConnections WCN 69.75 -0.12 WasteMgt WM 81.65 0.55 Waters WAT 197.91 -0.14 Watsco WSO 166.05 0.62 Wayfair W 62.84-11.57 s WellCareHealth WCG 200.93 0.02 WellsFargo WFC 56.48 0.66 Welltower HCN 67.72 0.70 WestPharmSvcs WST 100.00 -0.89 WestarEnergy WR 53.31 0.46 WestAllianceBcp WAL 56.51 0.48 WesternGasEquity WGP 38.16 -0.70 t WesternGasPtrs WES 46.39 -0.93 WesternUnion WU 20.08 0.10 WestlakeChem WLK 85.62 -0.31 WestpacBanking WBK 25.65 0.13 WestRock WRK 59.82 -1.51 Weyerhaeuser WY 35.61 -0.20 WheatonPrecMetals WPM 20.68 -0.05 Whirlpool WHR 163.41 -1.01 Williams WMB 28.11 -0.68 WilliamsPartners WPZ 36.51 -0.64 Wipro WIT 5.18 -0.03 WooriBank WF 43.97 -0.51 Wyndham WYN 107.46 0.24 s XPO Logistics XPO 71.56 1.86 XcelEnergy XEL 49.26 0.03 Xerox XRX 29.48 -0.81 Xylem XYL 67.06 0.91 YPF YPF 24.66 0.16 s YumBrands YUM 79.15 4.84 YumChina YUMC 40.17 0.28 ZTO Express ZTO 16.71 -0.21 ZayoGroup ZAYO 35.62 0.04 ZimmerBiomet ZBH 112.32 -2.77 s Zoetis ZTS 67.31 2.80 NASDAQ AGNC Invt AGNC 19.85 -0.35 s Ansys ANSS 148.68 13.08 ASML ASML 182.25 0.85 Abiomed ABMD 190.05 1.16 ActivisionBliz ATVI 65.45 0.12 s AdobeSystems ADBE 180.94 4.69 AkamaiTech AKAM 52.29 -0.40 AlexionPharm ALXN 115.63 -0.43 AlignTech ALGN 233.47 -1.48 Alkermes ALKS 48.84 0.19 s AlnylamPharm ALNY 133.59 12.50 Alphabet A GOOGL 1042.97 0.38 Alphabet C GOOG 1025.58 0.08 s Altaba AABA 70.51 -0.08 Amazon.com AMZN 1094.22 -9.46 Amdocs DOX 63.25 -1.12 Amerco UHAL 393.18 -2.99 AmericanAirlines AAL 47.36 -0.48 Amgen AMGN 172.41 -3.01 AnalogDevices ADI 90.79 -0.20 Apple AAPL 168.11 1.22 AppliedMaterials AMAT 56.26 0.55 ArchCapital ACGL 95.38 -2.47 Atlassian TEAM 49.43 0.74 Autodesk ADSK 124.72 -0.06 ADP ADP 114.34 -1.06 BOK Fin BOKF 86.55 0.57 Baidu BIDU 242.09 -3.34 BankofOzarks OZRK 46.45 0.36 Biogen BIIB 309.40 -6.33 BioMarinPharm BMRN 82.74 1.82 Bioverativ BIVV 53.65 -1.00 bluebirdbio BLUE 154.05 11.10 BrighthouseFin BHF 59.23 -2.82 Broadcom AVGO259.50 0.21 Amount Yld % New/Old Frq 9.8 4.7 1.3 1.3 1.1 3.2 4.1 4.4 4.5 5.2 5.2 4.9 1.5 1.7 1.9 2.2 2.4 2.4 2.8 2.8 2.9 1.9 1.3 6.4 5.8 4.2 5.0 6.8 6.0 6.8 5.8 5.1 5.2 5.3 5.8 5.2 5.3 5.6 5.1 1.4 2.7 4.8 3.2 4.0 3.3 2.5 9.3 6.9 7.8 7.9 7.7 4.0 4.4 8.7 7.6 5.8 5.7 9.1 9.4 4.7 8.7 5.5 9.1 7.3 7.4 3.6 5.7 4.2 5.1 4.4 5.7 5.1 4.8 4.2 3.9 .076 .0859 .48 2.61 .0245 .0668 .0842 .0909 .0946 .1086 .1153 .1059 .0257 .0296 .0344 .0384 .0419 .042 .0481 .0486 .0478 .0857 .055 .138 .0547 .069 .0535 .066 .05 .084 .0636 .0583 .0344 .0554 .0591 .0521 .0546 .0205 .062 .04134 .21449 .36452 .06855 .0868 .06936 .05403 .12 .0975 .14 .1222 .14 .045 .043 .06225 .03101 .0255 .0225 .03169 .02245 .038 .04457 .0315 .05035 .06 .0705 .039 .0725 .06 .058 .054 .103 .0955 .062 .059 .034 M M A A M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Payable / Record Nov30 /Nov22 Nov30 /Nov22 Dec29 /Nov13 Dec29 /Nov13 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov07 /Nov03 Nov30 /Nov13 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov08 /Nov03 Nov08 /Nov03 Nov08 /Nov03 Nov08 /Nov03 Nov08 /Nov03 Nov08 /Nov03 Nov08 /Nov03 Nov30 /Nov15 Nov30 /Nov13 Nov30 /Nov13 Nov30 /Nov13 Nov30 /Nov13 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov15 Nov30 /Nov16 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 52-Wk % Sym Hi/Lo Chg Stock WillisTwrsWatson WLTW WisdTrEM CpBd EMCB Xunlei XNET ZAGG ZAGG Zogenix ZGNX 165.00 -2.1 Caesarstone 73.96 0.9 CaladriusBiosci 13.28 -4.3 CapitalaFinance 19.38 20.1 Cardtronics 42.50 7.8 Cartesian Net Sym Close Chg Stock CA CA 32.41 -0.52 CDK Global CDK 63.39 0.40 CDW CDW 70.00 1.08 s CH Robinson CHRW 79.55 0.22 s CME Group CME 140.30 4.16 CSX CSX 51.62 1.47 s CadenceDesign CDNS 43.79 0.78 Carlyle CG 22.50 0.40 s CboeGlobalMkts CBOE 115.57 2.94 Celgene CELG 98.20 -2.33 Cerner CERN 65.47 -0.02 CharterComms CHTR 337.66 -0.56 CheckPointSftw CHKP106.62 3.61 ChinaLodging HTHT123.68 -3.91 CincinnatiFin CINF 72.56 1.85 Cintas CTAS 147.55 0.43 CiscoSystems CSCO 34.21 -0.41 CitrixSystems CTXS 82.36 0.13 Cognex CGNX 127.42 2.46 CognizantTech CTSH 74.36 0.82 Coherent COHR 254.47 -2.30 Comcast A CMCSA 35.15 -0.93 CommerceBcshrs CBSH 58.11 0.33 CommScope COMM 33.49 -0.74 Copart CPRT 36.50 0.66 CoStarGroup CSGP 293.62 -1.51 Costco COST 164.95 2.26 Ctrip.com CTRP 46.46 -1.09 DISH Network DISH 48.27 -0.50 DentsplySirona XRAY 61.16 ... DiamondbackEner FANG 108.97 -0.81 t DiscoveryComm A DISCA 17.31 -1.85 t DiscoveryComm C DISCK 16.26 -1.83 s DollarTree DLTR 92.55 1.43 E*TRADE ETFC 44.45 0.91 EastWestBancorp EWBC 59.89 0.16 eBay EBAY 37.40 -0.14 ElbitSystems ESLT 149.70 1.84 ElectronicArts EA 112.69 -1.78 s Equinix EQIX 488.68 21.62 Ericsson ERIC 6.33 0.05 ErieIndemnity A ERIE 122.70 0.52 Exelixis EXEL 25.52 1.29 Expedia EXPE 123.51 1.46 ExpeditorsIntl EXPD 58.16 -0.31 ExpressScripts ESRX 60.32 -2.00 F5Networks FFIV 121.01 0.41 Facebook FB 178.92 -3.74 Fastenal FAST 47.58 0.80 s FifthThirdBncp FITB 29.26 0.30 FirstSolar FSLR 57.87 0.66 Fiserv FISV 126.58 1.06 Flex FLEX 18.00 -0.03 FlirSystems FLIR 46.72 0.17 Fortinet FTNT 38.61 -0.16 Gaming&Leisure GLPI 36.36 0.04 Garmin GRMN 58.86 -0.94 GileadSciences GILD 73.81 -1.02 Goodyear GT 29.94 -0.29 Grifols GRFS 23.24 0.04 HD Supply HDS 35.77 0.31 Hasbro HAS 89.61 -0.86 HenrySchein HSIC 76.30 -0.94 Hologic HOLX 38.42 0.22 JBHunt JBHT 107.38 1.43 HuntingtonBcshs HBAN 13.87 0.06 s IAC/InterActive IAC 129.50 1.11 IdexxLab IDXX151.83 -7.41 IHSMarkit INFO 42.93 0.23 INC Research INCR 57.05 -0.15 IPG Photonics IPGP 207.34 0.90 IRSA Prop IRCP 55.50 -0.50 IcahnEnterprises IEP 55.75 -0.19 Icon ICLR 120.47 -0.46 Illumina ILMN 208.82 1.08 Incyte INCY 106.51 -1.45 s Intel INTC 47.10 0.39 s InteractiveBrkrs IBKR 54.99 1.14 Intuit INTU 152.15 0.79 s IntuitiveSurgical ISRG 379.75 3.71 IonisPharma IONS 51.82 -5.94 JD.com JD 37.88 0.02 s JackHenry JKHY 110.97 1.21 JazzPharma JAZZ 136.94 -4.53 JetBlue JBLU 18.92 -0.03 KLA Tencor KLAC 106.38 1.23 KraftHeinz KHC 78.03 0.33 LKQ LKQ 37.74 0.32 LamResearch LRCX 206.82 3.90 LamarAdvertising LAMR 69.74 0.50 LibertyBroadbandA LBRDA 87.29 0.08 LibertyBroadbandC LBRDK 88.00 0.02 LibertyGlobal A LBTYA 31.62 0.28 LibertyGlobal C LBTYK 30.49 0.20 LibertyLiLAC A LILA 22.44 -0.17 LibertyLiLAC C LILAK 22.56 -0.17 LibertyQVC A QVCA 22.50 -0.10 LibertyVenturesA LVNTA 57.22 0.67 LibertyFormOne A FWONA 36.38 -0.35 LibertyFormOne C FWONK 38.05 -0.41 LibertyBraves A BATRA 22.76 -0.29 LibertyBraves C BATRK 23.00 -0.27 LibertySirius A LSXMA 41.06 -0.54 LibertySirius C LSXMK 41.09 -0.54 LincolnElectric LECO 91.35 0.32 LogitechIntl LOGI 35.53 -0.45 LogMeIn LOGM 122.90 -0.80 Company Symbol Nuveen CA Quality Muni Nuveen Credit Opps 2022 Nuveen Credit Strt Inc Fd Nuveen CT Qual Muni Nuveen Enhncd Mun Val Fd Nuveen GA Qual Muni Nuveen Gl Hi Incm Fd Nuveen Hi Incm 2020 Nuveen Hi Incm Nov 2021 Nuveen High Incm Dec18 Nuveen High Incm Dec19 Nuveen Ins CA Nuveen Insured NY Select Nuveen Intermed Dur Mun Nuveen MA Qual Muni Nuveen MD Qual Muni Nuveen MI Qual Muni Nuveen MN Qual Muni Nuveen MO Qual Muni Nuveen Mtg Opp Term Fd Nuveen Mtg Opp Term Fd 2 Nuveen Multi-Market Incm Nuveen Mun Credit Incm Fd Nuveen Muni 2021 Target Nuveen Muni Income Fund Nuveen Muni Value Fund Nuveen NC Qual Muni Nuveen NJ Munl Value Fund Nuveen NJ Qual Muni Nuveen NY AMT-Free Nuveen NY Mun Value 2 Nuveen NY Muni Value Fund Nuveen NY Qual Muni Nuveen OH Qual Muni Nuveen PA Mun Value Fund Nuveen PA Qual Muni Nuveen Pfd & Incm 2022 Nuveen Pfd & Incm Opps Fd Nuveen Pfd & Incm Secs Fd Nuveen Preferred & Incm Nuveen Qual Mun Incm Fd Nuveen Real Asset Income Nuveen Sel 3 Nuveen Sel Tax Free Nuveen Sel TF Nuveen Select Maturities Nuveen Senior Income Fund Nuveen Shrt Dur Cr Opp Fd Nuveen TX Qual Muni Nuveen VA Qual Muni NuveenMuniIncoOpp Fd NuvFloatRteInco Fd Templeton Global NAC JCO JQC NTC NEV NKG JGH JHY JHB JHA JHD NXC NXN NID NMT NMY NUM NMS NOM JLS JMT JMM NZF NHA NMI NUV NNC NJV NXJ NRK NYV NNY NAN NUO NPN NQP JPT JPC JPS JPI NAD JRI NXR NXP NXQ NIM NSL JSD NTX NPV NMZ JFR GIM Net Sym Close Chg Stock lululemon LULU 60.76 -0.73 MKS Instrum MKSI 107.15 1.55 MarketAxess MKTX 176.50 0.77 s Marriott MAR 119.64 -0.52 MarvellTech MRVL 18.28 -0.01 s MatchGroup MTCH 27.57 0.77 MaximIntProducts MXIM 52.34 0.01 MelcoResorts MLCO 25.54 -0.98 MercadoLibre MELI 236.00 -3.02 MicrochipTech MCHP 93.46 0.47 MicronTech MU 44.34 -0.04 Microsemi MSCC 53.74 0.58 Microsoft MSFT 84.05 0.87 Middleby MIDD 116.62 0.83 Momo MOMO 30.28 -0.08 Mondelez MDLZ 41.16 -0.11 MonsterBeverage MNST 57.45 -0.35 Mylan MYL 35.34 -1.51 NXP Semi NXPI 117.46 0.16 Nasdaq NDAQ 73.17 0.76 NatlInstruments NATI 44.79 -0.20 NetApp NTAP 44.25 -0.28 Netease NTES 276.10 0.13 Netflix NFLX 199.32 1.32 NewsCorp A NWSA 13.80 0.09 NewsCorp B NWS 14.05 ... Nordson NDSN 126.46 0.08 NorthernTrust NTRS 94.01 0.60 NorwegianCruise NCLH 54.91 0.71 NVIDIA NVDA 205.94 -1.26 OReillyAuto ORLY 214.52 6.96 OldDomFreight ODFL 121.43 1.46 ON Semi ON 21.24 0.07 OpenText OTEX 34.20 -0.06 s PTC PTC 66.45 0.64 Paccar PCAR 71.96 0.98 PacWestBancorp PACW 47.63 0.09 Paychex PAYX 64.54 0.40 PayPal PYPL 72.25 -0.13 People'sUtdFin PBCT 18.62 0.09 PilgrimPride PPC 31.62 0.03 Priceline PCLN 1911.14 -1.92 Qiagen QGEN 33.74 -0.52 Qorvo QRVO 74.30 -0.16 Qualcomm QCOM 54.84 1.38 RandgoldRscs GOLD 90.58 -7.61 RegenPharm REGN 397.45 0.45 RossStores ROST 64.36 0.88 Ryanair RYAAY 112.33 -0.82 SBA Comm SBAC 156.10 3.52 SEI Investments SEIC 64.60 0.22 Sina SINA 108.34 -4.79 SS&C Tech SSNC 40.48 0.55 SVB Fin SIVB 218.92 0.19 ScrippsNetworks SNI 80.97 -2.55 Seagate STX 36.77 -0.19 SeattleGenetics SGEN 60.78 0.49 Shire SHPG 145.44 -0.31 SignatureBank SBNY 130.47 0.77 SiriusXM SIRI 5.34 -0.10 Skyworks SWKS 111.76 0.44 Splunk SPLK 66.55 -0.44 Starbucks SBUX 54.87 -0.26 SteelDynamics STLD 37.50 -0.48 t Stericycle SRCL 67.92 -0.79 Symantec SYMC 29.38 -2.78 Synopsys SNPS 86.95 0.83 TD Ameritrade AMTD 49.87 0.57 TESARO TSRO 110.87 -3.08 T-MobileUS TMUS 58.30 -1.45 TRowePrice TROW 94.63 2.06 TakeTwoSoftware TTWO 108.50 -2.06 Tesla TSLA 299.26-21.82 TexasInstruments TXN 96.79 0.44 TractorSupply TSCO 59.66 0.38 Trimble TRMB 39.79 -0.58 21stCenturyFoxA FOXA 25.81 -0.17 21stCenturyFoxB FOX 25.15 -0.23 UltaBeauty ULTA 202.90 -1.93 UltimateSoftware ULTI 210.84 7.72 UniversalDisplay OLED 144.35 1.65 VEON VEON 3.82 -0.11 VeriSign VRSN 109.38 0.52 VeriskAnalytics VRSK 91.02 1.14 VertxPharm VRTX 144.90 2.27 t Viacom A VIA 28.65 -2.00 t Viacom B VIAB 23.40 -1.38 Vodafone VOD 29.34 0.02 WPP WPPGY 86.32 -1.01 WalgreensBoots WBA 66.78 -0.23 Weibo WB 94.68 -1.92 WesternDigital WDC 88.60 -0.64 s WillisTwrsWatson WLTW 157.48 -3.43 Workday WDAY 110.60 0.33 WynnResorts WYNN 150.05 -1.50 Xilinx XLNX 72.48 -0.56 Yandex YNDX 33.44 -0.59 ZebraTech ZBRA 112.70 -1.07 Zillow A ZG 39.67 -0.86 Zillow C Z 39.51 -0.79 ZionsBancorp ZION 46.85 0.63 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO Amount Yld % New/Old Frq 5.1 5.6 6.9 4.5 5.7 4.0 8.4 5.8 5.9 4.2 5.2 3.8 4.1 4.9 4.5 4.7 4.8 4.8 4.0 5.2 5.5 5.7 5.9 2.1 4.3 3.8 4.0 3.9 5.1 4.7 3.8 3.8 5.0 4.5 3.7 5.2 6.0 7.4 7.2 6.7 5.2 7.1 3.5 3.7 3.6 3.1 7.0 7.3 4.4 4.2 5.7 7.0 2.4 .062 .047 .0475 .045 .068 .044 .12 .049 .05 .035 .044 .048 .046 .053 .0545 .05 .0535 .06 .053 .1135 .1125 .036 .074 .0175 .0405 .0325 .044 .0475 .058 .051 .046 .0315 .058 .0555 .047 .0585 .1275 .065 .062 .1415 .06 .106 .0435 .0455 .042 .026 .0395 .106 .053 .046 .065 .0675 .0133 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M 47.34 27.75 25.36 30.57 -0.21 -0.01 -0.02 -1.66 Payable / Record Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Dec01 /Nov15 Nov30 /Nov15 Stocks Comstock Mining 1:5 LODE /Nov10 Foreign Cresud ADR CS XLinks Month Pay 2xLev Domtar IRSA Propiedades Com ADR IRSA-Inversions GDR Thomson Reuters Validus Hldgs Pfd. A Validus Holdings Pfd. B CRESY REML UFS IRCP IRS TRI VRpA VRpB 2.0 6.2 3.5 4.4 9.3 3.1 5.7 5.7 CVRR NHTC 2.5 .44861 A .1469 M Q .415 1.22397 SA 1.38001 SA Q .345 .36719 Q .3625 Q /Nov13 Nov21 /Nov13 Jan15 /Jan02 /Nov13 /Nov13 Dec15 /Nov16 Dec15 /Dec01 Dec15 /Dec01 Special CVR Refining Natural Health Trends .94 .15 Nov17 /Nov10 Nov24 /Nov14 Suspended FreightCar America Nov23 / Q RAIL KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. 52-Wk % Sym Hi/Lo Chg Stock CSTE CLBS CPTA CATM CRTN Cherokee CHKE ChinaBiologic CBPO Criteo CRTO 2.18 -9.6 Curis CRIS 11.93 -19.7 DepoMed DEPO 9.08 -5.2 DiscoveryComm A DISCA 7.60 -8.1 DiscoveryComm C DISCK 10.60 -2.7 DragonVictory LYL 0.13 -3.8 Egalet EGLT 2.88 -4.7 Energous WATT 19.38 -3.0 Essendant ESND 11.60 4.5 Evogene EVGN 1.80 3.8 FTD FTD 2.62 1.5 Finisar FNSR 9.55 -11.8 Fred's FRED 5.79 -8.4 FrontierCommPfA FTRPR Nasdaq lows - 76 ADMA Biologics ADMA AMAG Pharm AMAG Aceto ACET Airgain AIRG AmCapSeniorFloat ACSF ArgosTherap ARGS Atomera ATOM BedBath BBBY Bojangles' BOJA BravoBrioRestr BBRG BroadwindEnergy BWEN CF CFCO CHF Solutions CHFS Net Sym Close Chg Stock 23.28 2.63 7.94 18.26 0.26 2.00 74.38 36.63 1.45 4.31 17.00 16.01 4.53 0.91 8.51 9.15 3.60 10.42 18.88 4.35 15.00 -8.2 -8.3 -3.6 -18.2 -40.4 5.0 -3.3 -2.3 -1.3 -11.5 -9.7 -10.1 -7.2 2.3 -7.5 -1.7 -4.5 -0.5 -14.2 -3.3 2.3 52-Wk % Sym Hi/Lo Chg Stock GenMarkDiagn GNMK GenoceaBiosci GNCA GlobalEagle ENT GreenPlains GPRE HabitRestaurants HABT HalladorEnergy HNRG HawaiianHoldings HA Impinj PI ImprimisPharm IMMY iShESG1-5YCpBd SUSB KalaPharm KALA KayneAnAcqnUn KAACU LexiconPharm LXRX LifePointHealth LPNT MeetGroup MEET Net1UEPS UEPS NY Mortgage NYMT NuCana NCNA Oclaro OCLR OxfordImmunotec OXFD Patterson PDCO 7.13 1.05 1.92 16.25 9.05 5.00 32.50 19.97 1.35 25.07 13.51 9.90 9.88 45.60 3.29 8.91 5.90 10.25 5.93 12.40 35.69 -0.5 ... -8.1 -7.6 -24.7 -1.4 -1.6 -34.3 -3.4 ... -9.0 -0.1 0.6 -1.0 -1.8 -1.5 -2.1 -12.1 -25.7 -5.2 -0.4 52-Wk % Sym Hi/Lo Chg Precipio PRPO ProspectCapital PSEC RMG Networks RMGN RadiusHealth RDUS SearsHoldingsWt SHLDW SearsHometown SHOS SonusNetworks SONS Stericycle SRCL TICC Capital TICC Teligent TLGT The9 NCTY Travelzoo TZOO Tuniu TOUR US Gold USAU VeecoInstr VECO VeraBradley VRA Viacom B VIAB Viacom A VIA WestwaterRscs WWR WheelerREITPfdB WHLRP Ziopharm ZIOP 1.40 5.51 1.18 29.54 0.83 1.45 7.02 67.46 5.17 5.29 0.82 6.50 6.69 1.08 17.10 7.01 23.39 28.65 0.78 17.69 4.34 -3.6 -5.3 ... -2.3 -8.1 -7.6 4.6 -1.1 -10.1 -2.4 -7.8 -0.8 1.6 -5.2 2.0 -0.3 -5.6 -6.5 -4.0 0.8 -1.6 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 B10 | Friday, November 3, 2017 * *** THE WALL STREET JOURNAL. BANKING & FINANCE Insurer swings to loss totaling $1.74 billion; separate claim reserve surprises investors BY LESLIE SCISM American International Group Inc. swung to a $1.74 billion third-quarter loss as it absorbed one of the insurance industry’s single biggest hits from hurricanes and also boosted unrelated claims reserves. The results reflect the first full quarter under the leadership of Brian Duperreault, who was named CEO in May as the global insurance conglomerate was struggling to improve its profitability. The industry veteran has begun putting his stamp on the company with new hires. But the quarter also included an unusual back-to-back string of hurricanes that flooded Houston for days and left much of Puerto Rico devastated. AIG’s pretax catastrophe losses totaled $3 billion, primarily from the hurricanes Harvey, Irma and Maria. AIG had estimated the catastrophe cost last month at up to $3.1 billion. Across the global insurance industry, insurers are facing a bill of $68 billion to $148 billion based on estimates by risk-modeling firms. The separate pretax reserve boost of $836 million in AIG’s commercial-insurance unit came as a surprise. Reserve boosts at AIG—a leading world-wide seller of often complicated property and casualty policies to multinationals and other large companies—had plagued the tenure of Mr. Duperreault’s predecessor, and many investors are hoping the worst is behind. A string of hurricanes resulted in pretax catastrophe losses of about $3 billion. The increase, which amounts to just under 2% of reserves as of June 30, primarily relates to policies sold in 2016, the company said. In Thursday’s news release, Mr. Duperreault said the strengthening was “based on additional information that became available in the third quarter.” Mr. Duperreault said AIG is “laser focused [on] taking actions to enhance underwriting tools and, more importantly, our talent base—so much so that I have declared 2018 the ‘Year of the Underwriter.’” The reserve boost meant AIG’s results didn’t meet analysts’ consensus expectation of a loss of 79 cents a share on an operating basis. Instead, AIG posted an operating loss of $1.11 billion, or $1.22 a share, compared with profit of $1.12 billion, or $1.01 a share, in the year-earlier period. Insurers’ operating results exclude realized capital gains and losses in their investment portfolios and some other items considered nonrecurring. AIG’s net loss of $1.74 billion compares with a profit of $462 million in the yearearlier period. AIG’s shares fell 2.7% in after-hours trading. Since arriving, Mr. Duperreault has shuffled the company’s structure and top leadership, and hired numerous senior executives from brokerage and consulting firm Marsh & McLennan Cos., which he ran from 2008 to 2012, and other insurance companies. He has pledged to halt the retrenchment that began when AIG accepted a U.S. government bailout in 2008. Heard on the Street: AIG needs refresher in risk....... B12 China’s Ruling Party Tied to Hot Property STREET Continued from page B1 richer than the continent’s Catholic South. Studies since have debunked Weber’s ideas, showing that it is education and openness to ideas that matter, not Protestantism itself. Hans-Joachim Voth, a professor at the University of Zurich, points to higher literacy levels in Protestant countries as recently as 1900, a hangover from when early Protestants, unlike early Catholics, read the Bible for themselves. These same countries remain among the world’s richest. If it is education that matters to economic development, rather than a tradition of challenging authority, that is good news for China. The country has a better education system than most middle-income countries, and students in four of its wealthy provinces produce some of the world’s best results in tests administered by the Paris-based Organization for Economic Cooperation and Development. Yet, research suggests a lingering positive effect from individualism, not merely from education. Mr. Phelps and collaborators Saifedean Ammous, Raicho Bojilov and China’s Communist Party has links to the buyer of a stake in The Center, a Hong Kong tower seen on right in ‘The Dark Knight.’ filings show. Mr. Zhang confirmed this. China Hualian, in turn, is ultimately owned by the International Department of the Central Committee of the Communist Party of China, the filings show. The department represents the Communist Party in its overseas affairs and deals with foreign parties and political organizations in more than 160 countries, according to its website. The department’s link to this huge property transaction is unusual: It doesn’t appear to have a direct stake in any other businesses in China, based on a review of the nation’s company registry database. Other big state-owned Chinese companies have bought property in Hong Kong in recent years, but those companies are owned by the state, rather than the Communist Party. With this deal, “the party seems to be taking on a role traditionally reserved for state-owned companies and private business,” said Fraser Howie, co-author of the book “Red Capitalism: The Fragile Financial Foundation of Individualism and Economic Growth The more individualistic a country is, the better it has used its labor and capital. 1.0% U.S. Sweden 0.9 Finland 0.8 Annual average TFP growth rate* HONG KONG—Hong Kong’s richest person has just reached one of the world’s largest-ever property deals, and it involves the Communist Party of China. Billionaire Li Ka-shing’s CK Asset Holdings Ltd. sold its stake in a skyscraper, The Center, for 40.2 billion Hong Kong dollars (US$5.15 billion) to CHMT Peaceful Development Asia Property Ltd., a British Virgin Islands-incorporated vehicle set up specifically for the purchase, CK Asset said late Wednesday. CHMT appears to stand for China, Hong Kong, Macau, and Taiwan, based on its name in Chinese characters. The transaction is the world’s largest ever commercial property deal for a single building, according to data from CBRE, a real-estate services firm. About 55% of CHMT’s shares are owned by a Hong Kong unit of China Energy Reserve & Chemicals Group, a Beijing-based conglomerate that specializes in the oil-andgas industry, the group confirmed to The Wall Street Journal on Thursday. “We’re responding to China’s call to explore the overseas market,” says Zhang Wenbin, a China Energy Reserve & Chemicals executive. In a telephone interview, he confirmed he is also a director at two of its Hong Kong affiliates. “Our wish is to own a few floors in some of Hong Kong’s hallmark office buildings and maybe put our logo on the top.” “The price isn’t high,” he added. Unlike other Chinese companies that have grabbed overseas assets in recent years, a piece of the conglomerate is owned by China’s sole ruling party, corporate filings show. One of China Energy Reserve & Chemicals’ four owners is an entity called China Hualian International Trade Co., which holds a 15% stake, the WARNER BROS/EVERETT COLLECTION BY WENXIN FAN AND NATASHA KHAN Denmark 0.7 Trend U.K. Ireland 0.6 0.5 Austria Netherlands 0.4 Canada 0.3 Portugal 0.2 0.1 0 Norway Spain Japan 0.40 0.45 Belgium France 0.50 Italy 0.55 Germany 0.60 0.65 0.70 Index of modernism/individualism *TFP=total factor productivity, 1990-2013 Source: Phelps, Ammous, Bojilov, Zoega (forthcoming) Gylfi Zoega show that even in recent years, countries with more individualistic cultures have more innovative economies. They demonstrate a link between countries that surveys show are more individualistic and total factor productivity, a proxy for innovation measuring growth due to more-efficient THE WALL STREET JOURNAL. use of labor and capital. Less-individualistic cultures, such as France, Spain and Japan, showed less innovation than the individualistic U.S. As Mr. Bojilov points out, correlation doesn’t prove causation, so they looked at the effects of country of origin on the success of second, third- and fourth-genera- OLIVER CONTRERAS/WASHINGTON POST/GETTY AIG Absorbs Shocks From Storms Robert Mercer Mercer Quits As Fund Leader BY GREGORY ZUCKERMAN Hedge-fund billionaire Robert Mercer, who gained attention outside Wall Street for backing President Donald Trump, is resigning as co-CEO of Renaissance Technologies LLC. For over two decades, Mr. Mercer helped Renaissance generate gains that few rivals could match. But over the past year both Renaissance and Mr. Mercer have grown uncomfortable with the public focus on his political activities. Mr. Mercer wasn’t happy that the firm recently received negative attention, according to someone close to the matter. In recent weeks, some organizations have publicly tried to pressure universities, retirement funds and other institutional clients to pull money from the firm. One investor who called the firm Wednesday was told by a firm representative that negative publicity surrounding Mr. Mercer’s political activities was a key reason behind his resignation, according to someone familiar with the call. The former computer programmer has long expressed distrust for the political establishment and in recent years was a backer of conservative media company Breitbart News. He was little known outside the investing world until he provided crucial financial support for Mr. Trump as the Republican’s candidacy lagged in the summer of 2016. Mr. Mercer and his daughter Rebekah advised the Trump campaign and suggested the installation of two family confidants, Steve Bannon and Kellyanne Conway. In a letter to employees sent Thursday morning, Mr. Mercer, 71, said that the media has unfairly linked him to Mr. Bannon: “I have great respect for Mr. Bannon, and from time to time I do discuss politics with him. However, I make my own decisions with respect to whom I support politically.” Mr. Mercer said in the letter that he had also decided to sell his stake in Breitbart to his daughters. Mr. Mercer declined to comment through a spokesman. Representatives for Breitbart and Mr. Bannon couldn’t be reached immediately to comment. China’s Extraordinary Rise.” The Communist Party “is putting itself front and center of China going abroad, which fits into the narrative of the absolute role the party has for all things China—that it’s the future and there’s no room for anyone else,” he said. Mr. Zhang declined to comment on the nature of his company’s link to the party department and its involvement in the property deal. The Center, at 73 stories, is an instantly recognizable part of Hong Kong’s skyline. It was featured in the second install- ment of filmmaker Christopher Nolan’s Dark Knight Trilogy, “The Dark Knight,” in a scene where Batman plunges through a window to capture a villain. It is the fifth-tallest building in Hong Kong, according to the Skyscraper Center, a database. Rumors that Mr. Li was seeking a buyer have been circulating for months. Office rents in Hong Kong’s Central district, where The Center is located, are the world’s most expensive, according to CBRE, which tracked prices in 121 districts for the first half of the year. tion Americans as entrepreneurs. The effects turn out to be significant but leave room for debate about how important individualistic attitudes are to financial and economic success. China’s model allows for freedom within the business world even as it permits little or no freedom of expression in politics, arts or culture. As it moves toward domestically focused growth, it will be a natural experiment: Is freedom within the financial and business realms enough, or does a successful economy require broader freedom of speech? China’s economy had a good run and produced plenty of technical and financial innovation recently. But as the regime grows increasingly authoritarian, can innovation continue? Liberty is an end in itself, and human rights alone argue for more personal freedom in China. But the argument is much easier to make if individual freedoms make people richer too. Luther himself merely wanted to grow closer to God, and would surely be horrified to find he was one of the sources of capitalism. Yet the argument about how to balance individual and community rages still. Will the individualism of the West continue to triumph? Credit Suisse’s Focus On Wealthy Pays Off BY BRIAN BLACKSTONE ZURICH—Credit Suisse Group AG reported a sharp rise in third-quarter profit on strong growth at its wealthmanagement division, indicating the Swiss banking giant’s strategic shift toward managing wealthy clients’ money is paying off. The results—which come after crosstown rival UBS Group AG reported strong profit growth last week—provide relief for the Swiss banking sector, which has been beset for years by negative interest rates, hefty legal settlements and regulatory changes to bring its rules in line with global norms on the automatic exchange of client information. “I think in Switzerland people can take comfort from the joint success of Credit Suisse and UBS,” Credit Suisse Chief Executive Tidjane Thiam told a press conference. Credit Suisse said quarterly net profit was 244 million francs ($243.2 million), up from 41 million francs in the year-earlier period. The increase was driven by improvement at its international wealth-management unit, where pretax income grew 59% to 382 million francs, boosted by strong growth in Asia. Net new assets rose 8% to 10.4 billion francs, pushing assets under management to a record 751 billion francs. Credit Suisse shares jumped 4.5% to 16.34 Swiss francs, for their highest close since January 2016. Credit Suisse is two years into an overhaul under Mr. Thiam. The bank is reorienting away from profitable, but volatile, investment banking toward the more stable business of managing money for wellheeled clients. However, restructuring hasn’t been without costs. The bank’s shares are still down about 30% since the turnaround program began. That is partly because of two capital increases, in 2015 and this year, which increased the number of shares, diluting their value. Mr. Thiam noted that Credit Suisse’s 40 billion franc market capitalization is back to where it was in early 2015. Credit Suisse said it generated cost savings of about 400 million francs in the third quarter, taking nine-month cumulative cost savings to about one billion francs. 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. Friday, November 3, 2017 | B11 * * * * * * MARKETS Uploading How many dollars one bitcoin buys $7,400 Traders Digest Tax-Code Plan Blue chips recover to set another high; lower corporate rate would boost banks 7,300 7,200 7,100 6,800 Thursday *Price through 6 p.m. EDT Source: CoinDesk THE WALL STREET JOURNAL. Bitcoin Price Exceeds $7,000 for First Time BY PAUL VIGNA The price of the digital currency bitcoin smashed through the $7,000 mark for the first time on Thursday, a new milestone for the surging asset. Bitcoin quickly slipped back below that mark before resuming its ascent. Late Thursday, the digital currency was trading at $7,051, according to CoinDesk. It had traded as high as $7,355 earlier in the day. The advance was just the latest plateau for the currency, which has surged this year despite several setbacks. Those have included a near-total ban in China and a bitter fight within the bitcoin industry over how best to expand the network. Bitcoin’s ability to shrug off those developments shows that its trading community, which is still relatively small and insular, remains bullish. Based on the morning high, bitcoin was up as much as 658% on the year. Thursday’s jump also came amid selling in most of the other big cryptocurrencies. Ether was down 2.9% at $289 on Thursday, ripple was down 0.7% at 20 cents, and litecoin was down 0.7% at $54. On the other hand, Bitcoin Cash, itself a near-identical copy of bitcoin, was up 16% at $588. Bitcoin’s latest surge occurred just days after CME Group Inc. announced plans to begin offering a bitcoin futures contract, a potentially significant development that would for the first time give Wall Street traders an avenue to bet on bitcoin prices and hedge against volatility. That kind of market, which exists for more-mature assets, is believed to be a crucial ingredient in bitcoin’s move into institutional and retail markets. First unveiled in 2008, bitcoin is a digital asset that exists across a network of linked computers that all run an identical version of the same program. The heart of that program is an open ledger of transactions. Every bitcoin trade goes into the ledger, and each computer on the network maintains an identical, constantly updated copy of the ledger, which makes counterfeiting bitcoins impossible. A Lowe’s in Burbank, Calif. Its stock fell 4.1% as home-improvement shares were dragged down. mally announced that he would nominate Federal Reserve governor Jerome Powell to be the next chairman of the central bank, as expected. The Dow industrials gained 81.25 points, or 0.3%, to 23516.26, its third consecutive day of gains and 55th record close of the year. The S&P 500 rose 0.49 point, or less than 0.1%, to 2579.85 and the Nasdaq Composite shed 1.59 points, or less than 0.1%, to 6714.94. The tax plan—long anticipated by investors as a potential boost for profits at U.S. companies—aims to permanently chop the corporate-tax rate, compress the number of individual income-tax brackets and eventually repeal the taxes paid by large estates. Components for individual taxpayers, such as limits on the home mortgage-interest deduction and caps on property-tax deductions, contributed to moves among consumer stocks, specifically home builders, analysts said. “There’s a general disappointment in the individual side of things,” said Yousef Abbasi, global market strategist at JonesTrading. “The biggest tax cut went to the corporations.” Shares of consumer-discretionary stocks in the S&P 500 slid 0.8%. Home builder Lennar fell $1.86, or 3.3%, to $55.10, while PulteGroup declined 32 cents, or 1.1%, to 30.09. Home-improvement companies were dragged down too, with Home Depot shares falling 2.67, or 1.6%, to 162.71 and Lowe’s declining 3.27, or 4.1%, to 76.65. Investors and analysts cautioned to not read too deeply into Thursday’s market moves since the tax plan could change as Republicans work to push it through the House and the Senate. And if the plan falters, similar to Republicans’ earlier attempts to overhaul the Affordable Care Act, ana- HNA Group Returns to Debt Market Oil Climbs to Highest in Two Years BY ANJANI TRIVEDI LUKE SHARRETT/BLOOMBERG NEWS 6,900 The Dow Jones Industrial Average recovered from early losses to close at a fresh high, as investors assessed House Republicans’ proposal for the biggest tax-code overhaul in decades. The Dow THURSDAY’S i n d u s t r i a l s MARKETS fell more than 80 points after a detailed summary of the tax plan was reported, but the blue-chip index rallied later in the session. Declines in shares of home builders and other consumer-discretionary stocks kept pressure on the S&P 500, which eked out a slight gain for the day. Shares of financial companies extended gains toward the close, helping major indexes recoup earlier losses. A lower corporate-tax rate, a key item in Republicans’ tax plan, would immediately boost banks’ profits if passed, analysts said. “A lot of financial companies pay quite close to the full [tax] rate, so we’d expect that positive sentiment to keep lifting that space,” said R.J. Grant, director of equity trading at KBW Inc. Financial stocks in the S&P 500 rose 0.9%. Also late in the session, President Donald Trump for- PATRICK T. FALLON/BLOOMBERG NEWS BY MICHAEL WURSTHORN 7,000 lysts expect a muted reaction. “If taxes don’t get done, it won’t have a meaningful impact on markets,” said Krishna Memani, chief investment officer of OppenheimerFunds. “Markets have rallied this year because of global growth and earnings.” Other moves followed mixed quarterly results from U.S. companies. Shares of Newell Brands, the maker of Sharpie markers and Rubbermaid containers, slumped 10.99, or 27%, to 30.01 after the company cut earnings guidance for the year. Facebook, which remains under scrutiny over alleged Russian propagandists’ activity during the election, fell 3.74, or 2%, to 178.92 after reporting a jump in profit. Shares of Blue Apron dropped 87 cents, or 19%, to 3.80—an all-time low—after the meal-kit company posted a loss and shed customers in the third quarter. The company went public in June at $10 a share. Elsewhere, the Stoxx Europe 600 fell 0.5%. Asia-Pacific stocks struggled for direction early Friday. Australian stocks stood out, hitting fresh 2017 highs amid commodity-price gains. The S&P/ASX 200 was up 0.5% at 5964. But Korea’s Kospi was flat and most benchmarks in the region were within 0.2% of Thursday’s closing levels as Japan’s markets were closed Friday for a holiday. —Akane Otani and Lucy Craymer contributed to this article. Classic cars under a rainbow at a gas station in Burton, Mich. Stronger demand plus reduced supplies have lifted oil prices. Oil prices hit a two-year high amid growing optimism that the crude glut is shrinking. U.S. crude futures rose 24 cents, or 0.4%, to $54.54 a barrel, the highest since July 2, 2015. The U.S. benchmark has gained in 15 of the past 19 sessions. Brent, the global benchmark, rose 13 cents, or 0.2%, to $60.62 a barrel. Brent prices broke above $60 a barrel last week for the first time since July 2015, supported by expectations that an agreement to cut output between the Organization of the Petroleum Exporting Countries and other major producers including Russia would be extended beyond its current time frame of March 2018. Analysts said oil remains underpinned by falling U.S. inventories, which is helping to drain the buildup of global stocks, accumulated over several years of surplus supply. The U.S. Energy Information Administration published data Wednesday showing crude stockpiles fell by 2.4 million barrels in the week ended Oct. 27. Stronger-than-expected demand plus reduced supplies have converged to lift prices in recent weeks, analysts said. “On a global basis, betterthan-expected oil demand is likely developing off of strong world economies,” Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a research note. “This demand strength is crisscrossing against continued downsized OPEC production where compliance to this year’s agreement remains much stronger than generally expected.” Still, the rally may be slowing as market participants wait to see whether OPEC will extend its cuts when it meets Nov. 30. —Alison Sider and Sarah McFarlane Acquisitive Chinese conglomerate HNA Group Co. tapped the short-term debt markets for the second time in a week, as a unit offered on Thursday to pay sharply higher interest rates to woo investors, according to people familiar with the matter. An HNA subsidiary agreed to pay 8.875% interest on new U.S. dollar bonds that mature in slightly under a year, the people said. That is nearly 3 percentage points more than what the same company agreed to pay on three-year debt it sold in May, which had a 6% coupon. Those bonds mature in 2020 and were recently yielding 6.7%. The issuer, HNA Group (International) Co. Ltd., a Hong Kong-based investment and foreign-capital subsidiary of the parent company, is issuing bonds that mature in 363 days, according to an initial term sheet for the offering. The bonds are guaranteed by Hainan-based HNA Group. The company didn’t disclose how much it is hoping to raise. The high interest rate indicates investors are becoming more concerned about HNA’s leverage and liquidity, and see significant default risk. The latest deal comes less than a week after a separate unit of HNA sold $300 million in 364-day debt at a 6.35% coupon, an offering that drew tepid investor demand. GOP Measure, Weaker Than Expected, Hurts Yields BY DANIEL KRUGER U.S. government bonds gained Thursday as investors assessed the impact of a Republican plan to overhaul the U.S. tax code. The yield on CREDIT the benchmark MARKETS 10-year U.S. Treasury note fell to 2.347%, the lowest close in two weeks, from 2.378% Wednesday. Bond yields fall as prices rise. Bond yields had risen last week as investors speculated that Republicans would propose measures that were stimulative to the economy and which would lead to significantly larger budget deficits. The plan, as detailed Thursday, would slice the top corporate-tax rate to 20% from 35%. Many investors, however, were surprised that the plan Taxed The yield on the 10-year Treasury note slipped as Republicans detailed tax-overhaul plans. 2.38% 2.37 2.36 2.35 2.34 2.33 Nov. 2 Source: Thomson Reuters left the top bracket for individuals at 39.6%, as they had expected a lower top rate to provide more economic stimulus. The proposal also included curbs on some popular individual deductions, including THE WALL STREET JOURNAL. on mortgage interest, which may restrain growth of the budget deficit. “The tax package is a lot weaker than people expected,” said Andrew Brenner, head of global fixed income at Na- tional Alliance Capital Markets. “They’re trying to get the out-year deficits down, and the Treasury market is responding positively.” Yields were also pushed lower as U.K. government bonds rallied after the Bank of England raised interest rates for the first time since the financial crisis and as investors assessed the impact of the nomination of Federal Reserve Board governor Jerome Powell to become the central bank’s next chairman. Mr. Powell is viewed by investors as representing a continuation of Fed Chairwoman Janet Yellen’s gradual approach to raising interest rates and returning monetary policy to its precrisis norms. The market is relieved that “it’s the Powell Fed and not the somebody-else Fed,” said Jim Vogel, head of interestrate strategy at FTN Financial. Treasury Sets Sales of $160 Billion in Debt The Treasury Department will auction $160 billion in securities next week, comprising $118 billion in new debt and $42 billion in previously sold debt. Details (all with minimum denominations of $100): Monday: $42 billion in 13week bills, a reopening of an issue first sold on Aug. 10, 2017, maturing Feb. 8, 2018. Cusip number: 912796NR6. Also, $36 billion in 26-week bills, dated Nov. 9, 2017, maturing May 10, 2018. Cusip number: 912796PF0. Noncompetitive tenders for both issues must be received by 11 a.m. EST Monday and competitive tenders, by 11:30 a.m. Tuesday: $20 billion in 52week bills, dated Nov. 9, 2017, maturing Nov. 8, 2018. Cusip number: 912796PD5. Also, $24 billion in three-year notes, dated Nov. 15, 2017, maturing Nov. 15, 2020. Cusip number: 9128283G3. Noncompetitive tenders for the bills must be received by 11 a.m. EST Tuesday and competitive tenders, by 11:30 a.m. For the three-year notes, they are due by noon and 1 p.m., respectively. Wednesday: $23 billion in 10-year notes, dated Nov. 15, 2017, maturing Nov. 15, 2027. Cusip number: 9128283F5. Noncompetitive tenders must be received by noon EST Wednesday; competitive tenders, by 1 p.m. Thursday: $15 billion in 30year bonds, dated Nov. 15, 2017, maturing Nov. 15, 2047. Cusip number: 912810RZ3. Noncompetitive tenders must be received by noon EST Thursday; competitive tenders, by 1 p.m. 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 B12 | Friday, November 3, 2017 THE WALL STREET JOURNAL. MARKETS Rate Increase Batters Pound, U.K. Yields The British pound slid sharply and bond yields fell Thursday after the Bank of England raised interest rates for the first time in over a decade but signaled that further increases weren’t imminent. The BOE’s rate-setting committee voted 7-2 to raise its main policy rate to 0.5% from 0.25%. Market Reactions The British pound depreciated and government-bond yields fell even as the U.K. tightened monetary policy. While the U.K. stock market rose, some lenders could be hurt by a slower pace of rate increases. How many dollars one British pound buys U.K. gilt yields $1.34 1.4% 1.3 10 year 1.2 By Christopher Whittall, Mike Bird and Riva Gold 1.33 Though widely expected, the move triggered a sharp market reaction, spurring sterling’s biggest one-day drop against the euro in more than a year and driving bond yields lower—shifts that are usually consistent with expectations that the central bank won’t rush to raise interest rates further. “The market response to the U.K. rate increase has been relief that the bank expects a very gradual hiking cycle,” Mike Amey, head of sterling portfolios at Pacific Investment Management Co., said in a note. The pound was down by 1.7% against the euro at €1.121 at the end of the European trading day. It fell 1.4% on the day against the dollar in both Europe and New York sessions and was trading at $1.3058 late Thursday in New York. The yield on 10-year U.K. government debt fell around 0.09 percentage point to 1.26%, according to Tradeweb. Yields fall as prices rise. Currencies typically decline when investors expect interest rates to remain low, as they shift their investments toward those that offer higher yields. Moves in bond yields tend to be heavily linked to short-term interest rates. In its new statement, the Bank of England didn’t reiterate its guidance from September that interest rates might need to rise by more than 1.32 1.1 1.0 0.9 0.8 0.7 1.31 0.6 2 year 0.5 1.30 0.4 Monday Tuesday Wednesday FTSE 100 Index Thursday Monday Share-price performance 7560 Wednesday Thursday U.K. consumer-price index 1.0% 3.5% 3.0 0 7540 Tuesday Royal Bank of Scotland 2.5 2.0 –1.0 7520 1.5 –2.0 7500 1.0 0.5 –3.0 Lloyds Banking Group 7480 –4.0 Mon. Tues. Wed. Thurs. 0 –0.5 Mon. Tues. Wed. Thurs. 2015 Note: £1 = $1.3058 All times GMT Sources: Thomson Reuters (currencies, gilts, FTSE); FactSet (shares); Ofﬁce for National Statistics (CPI) market participants expect. However, it said its outlook for inflation and economic activity were broadly similar to its last projections in August. “The BOE has displayed quite a conservative outlook for the U.K. economy,” said Viraj Patel, foreign-exchange strategist at ING Bank. He added that the pound was more likely to appreciate than fall from here. “It doesn’t seem like they’re giving a ‘one and done’ signal on interest rates,” Mr. Patel said. “From my point of view, I’ll be buying this dip, basically.” Jordan Rochester, foreignexchange strategist at Nomura, also saw Thursday’s decline in sterling as a shortterm reaction. The U.K.’s negotiations over its exit from the European Union are seen as key across British markets. “I don’t really think this can be a new trend in sterling. I don’t see how the Brexit negotiations can actually get worse than they were at the October meeting,” he said. The pound has been under pressure since the June 2016 Brexit vote, and analysts believe Britain’s negotiations and the political uncertainty around them have held sterling back. ’16 ’17 THE WALL STREET JOURNAL. Many investors believe those negotiations remain the pivotal factor, rather than BOE officials, for whom Brexit has been key when making their decisions. “There’s so much uncertainty around where Brexit negotiations are going,” said Andrew Mulliner, a portfolio manager at Janus Henderson Investors. “That’s the dominant driver for U.K. risk at the HEARD ON THE STREET Email: email@example.com FINANCIAL ANALYSIS & COMMENTARY Tax Plan’s Happy Surprises for Investors Buy the rumor, but don’t sell the “cut, cut, cut.” The Republican tax plan had few surprises for the market, which has been rising in anticipation of a big reduction in corporate taxes. The increases that legislators proposed to fill the revenue gap were a mixed bag for companies, but none serious enough to rattle investors. The headline figure in the Tax Cuts and Jobs Act is a permanent cut in the corporate tax rate to 20%—higher than the 15% that President Donald Trump had pined for, but the number that most were expecting. But this bag of goodies for corporate America has a few sour bits too. One is the slightly higher-than-expected proposed tax rate of 12% for a one-time repatriation of cash held by foreign subsidiaries of U.S. companies. This mostly affects large multinationals such as Apple, Microsoft and Coca-Cola. Those cash-rich companies Creditworthy Ebitda* to net debt of S&P 500 companies 13 12 11 10 9 8 7 2000 ’05 ’10 ’15 *Earnings before interest, taxes, depreciation and amortization Source: FactSet THE WALL STREET JOURNAL. wouldn’t, on the other hand, be affected by a wrinkle that would limit the deductibility of interest to 30% of a modified measure of cash flow called earnings before interest, taxes, depreciation and amortization. It is noteworthy that the market prices of high-yield bonds barely moved Thursday. That seems odd since they tend to be is- sued by companies that could get pinched, but it actually makes sense since the future supply of high-yield bonds would be reduced, making the existing crop scarcer. Looking at the S&P 500 as a whole, interest expense was less than onetenth of Ebitda, so the overall impact of limiting the taxdeductibility of interest Apple Gets Some Help From iPad, Mac Amid all of the stunning numbers Apple usually produces on earnings day, the most important data point— future iPhone sales—remains unclear. Apple’s fiscal fourth-quarter results Thursday confirmed this year’s iPhone cycle is getting stretched. Unit sales of the iPhone rose only 3% despite the launch of the 8 and 8 Plus models late in the quarter. Apple also projected that overall revenue for the December quarter would rise 7% to 11% year over year. That was within the range projected by analysts who expect rather limited supply of the iPhone X that hits stores Friday. So investors hoping for sure signs of an iPhone “supercycle” still have to wait Booting Up Stock and index performance 50% 40 Apple 30 20 S&P 500 10 0 2017 Source: WSJ Market Data Group awhile. Wall Street expects growth from the iPhone X to have a bigger impact on Apple’s results next year. In the meantime, the company’s supporting cast is taking a turn in the spotlight. Unit sales of the iPad and Mac jumped 11% and 10%, respectively. Services revenue, which include Apple’s App Store and content offerings, jumped 24% to $7.9 billion excluding the effect of a onetime adjustment. That should soothe investors who have been solely focused on the iPhone of late. And financial performance remains strong. Operations generated about $63.6 billion in cash in the quarter, bringing the company’s total cash balance to nearly $269 billion—nearly all of which rests offshore. That could make Apple a big beneficiary of the tax package circulating through Washington. And at the very least, it will give investors something new to ponder while waiting to see if iPhone X will make a strong connection. —Dan Gallagher would be small. The corporate tax change that may have the biggest short-term impact on the economy is the immediate deductibility of capital investments such as factories and machinery. Currently companies depreciate these expenses. While shares of large-capitalization stocks have done well recently—particularly technology giants—they would benefit less from the overall cut in the tax rate. Many already are paying effective tax rates not far above 20%. Smaller, domestically focused companies tend to have fewer methods to shield themselves from high taxes and benefit more. That likely explains why, despite the rally in big tech companies, the S&P 500 has lagged behind the small-capitalization-focused Russell 2000 index by about 4 percentage points since the election. Of course, the entire stock-market rally can’t be boiled down to a calculation about lower taxes and the resulting higher net profit. The whole package—including the substantial changes to individual taxes and deductions—is meant to unlock higher economic growth. On the corporate side of the ledger that appears to be the case as net profits would rise and more of those profits are likely to be invested domestically. But the milder measures on individual taxes appear to be a missed opportunity to remove distortions that affect how the American public saves and invests. Aside from some tweaks to tax credits for health expenses, education and mortgage interest, the largest impact would be felt by residents of high-tax coastal states. However the wrangling over legislation plays out, the gains from tax reform already are priced into the market. —Spencer Jakab and Ken Brown moment.” In stock markets, the FTSE 100 index—which generates roughly 68% of its revenues outside the U.K., according to FactSet—rose 0.9% Thursday, as many other major developed equity markets declined and the wider Stoxx Europe 600 index fell 0.5%. A weaker currency tends to benefit multinational companies as they translate revenue from overseas. Some of the FTSE 100 companies that generate the greatest share of foreign revenues climbed after the BOE announcement as the pound fell, with shares of British American Tobacco and pharmaceutical company Shire up 1.6% and 2%, respectively. Some analysts remain skeptical, however, that a weaker currency will continue to support the FTSE 100 index for much longer. “A recent return of U.K. inflation and, importantly, the onset of the first hiking cycle in 10 years, will likely lead to a dislocation in the negative relationship between sterling and U.K. equities,” strategists at UBS wrote, noting currencylinked inflation can add to costs and hit local demand. Smaller companies in the U.K. showed a more muted reaction to the BOE’s announcement, with the FTSE 250 index adding just 0.3% and the FTSE SmallCap index up 0.2%. Shares of U.K.-focused lenders Royal Bank of Scotland Group and Lloyds Banking Group lagged behind despite gains in their more globally oriented counterparts, both falling 1% on Thursday. A slower pace of interest-rate increases could hurt banks’ lending revenues. U.K. stocks remain unloved by international investors last month. The U.K. was the top underweight position held by global fund managers surveyed by Bank of America Merrill Lynch in October. WSJ.com/Heard OVERHEARD Give and you shall receive? That seems to be the idea at Inspire Investing, which just launched its fourth biblically driven exchange-traded fund with a reduced expense ratio, the Inspire 100 ETF. Inspire’s three existing exchange-traded funds, all launched this year, have racked up $107.2 million in assets between them. It has pledged to donate half of its net profits made on management fees to Christian causes. The rapid asset growth is noteworthy, and may owe something to mainstream media coverage of the tiny firm for the wrong reasons— policies considered by some to be outright discriminatory. In the end, what matters to many prospective clients is results and costs. With fees 10 times as high as the cheapest plain vanilla U.S. stock ETF, divine intervention may be needed for winning results. AIG Needs Refresher in Insurance Basics Brian Duperreault’s turnaround job at American International Group will be harder and take longer than it first seemed. AIG reported earnings on Thursday that fell fall short of analyst estimates due to yet another charge on its property-and-casualty book. The $3 billion of catastrophic hurricane damages was expected, but a separate $836 million increase in reserves for commercial insurance lines wasn’t. This marks the third year in a row that AIG has taken a surprise charge on this business, following a $3.6 billion increase in reserves in the fourth quarter of 2015 and a $5.6 billion charge in the fourth quarter of 2016. A reinsurance deal struck with Berkshire Hathaway earlier this year was meant to put a cap on losses from these troubled commercial lines, but it covered only U.S. policies written through 2015. AIG’s charge this time around relates to business written in 2016, or outside the U.S. Clearly, something went badly wrong with underwriting practices at AIG. Policies were underpriced and risks not properly anticipated. The good news is that Mr. Duperreault, who joined in May after his predecessor was ousted, seems to recognize the cause of the problem. In a recent post on LinkedIn, he stressed the limits of technology and the continued human role in judging risks, especially for the very large companies that AIG specializes in insuring. In a statement, he said he would hire new staff to improve its analysis of risks, and even declared 2018 to be the “year of the underwriter” at AIG. Shareholders and analysts won’t take him at his word that the situation will be resolved. Hiring underwriters and reworking the company’s risk analysis are complicated tasks that will take time to bear fruit. It won’t be clear if the new policies being written are more resilient until they have been in force for some time. Mr. Duperreault is probably the right man for this job. That doesn’t mean it will be easy or quick. —Aaron Back MALIKA FAVRE 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 HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES THE WALL STREET JOURNAL. FIXTURES | BROKERS Friday, November 3, 2017 | M1 WHITNEY KAMMAN FOR THE WALL STREET JOURNAL (3) © 2017 Dow Jones & Company. All Rights Reserved. | WIDE-OPEN SKY John Thompson and his fiancée, Cody Goettle, below right, at their $3.5 million contemporary home in Big Sky, Mont. Advances in glass technology make it easier to use large sheets of glass. The living room, above, has full-height sliding doors that completely open up to the outside deck. The home, below left, is located in a ski and golf community called Spanish Peaks. SKI & MOUNTAIN HOMES The Quest For Transparency Affluent buyers say the best ski homes offer wide-open views of the slopes from the cozy indoors. BY CECILIE ROHWEDDER THE TEMPERATURE OUTSIDE was 23-degrees below zero the day Michael and Shelia Alessandro bought their modern mountain home for $3.4 million in Wyoming’s Jackson Hole. The frigid weather briefly gave them pause, since the five-bedroom, 6,800-square-foot home had walls of glass—a design that can be less en- ergy-efficient than insulated walls. Still, the Wilson, Wyo., house, designed by Jackson-based Dynia Architects, offered sweeping views of the Teton Range. After the sale closed, the Alessandros installed even more glass in the living room to further enlarge the view. Mr. Alessandro says the home is still warm and cozy, with monthly heating bills averaging $538 in the 12 months through September. “You couldn’t have done this 100 years ago,” says Mr. Alessandro, 74, a retired managing director of Hambrecht & Quist, a San Francisco-based investment bank now part of J.P. Morgan Chase & Co. “Glass technology has evolved so that people can have a house like this. It’s amazing that people still want to build those old-style log cabins.” Many affluent buyers say that the best ski homes are ones where you can see the snow and slopes while staying snug inside. Recent advances Please turn to page M6 SPEND THE SUMMER IN SKI COUNTRY INSIDE More second-home buyers are seeking out ski-resort towns for their summer amenities, from high-altitude golf courses to outdoor pools and food festivals; using the lift for mountain bikes. BY KATY MCLAUGHLIN JUMBO JUNGLE Don’t get burned by a credit freeze M8 KIM RAFF FOR THE WALL STREET JOURNAL WHEN MIKE AND PEGGY Grubbs first visited Victory Ranch, a new development about 10 miles from the ski slopes of Park City and Deer Valley in Utah, they immediately put a deposit on a lot. The location was perfect, they said, for enjoying everything the season has to offer. The season in question, for the Grubbses and a growing number of buyers in mountain communities, is summer. While the Grubbses ski and engage in other winter sports, they get the most use out of their home in the summer, when Ms. Grubbs lives there full time and Mr. Grubbs visits weekly from their home in Newport Beach, Calif. Mountain towns, ski resorts and developers in these areas are making a big push to create more reasons for people to visit in the summer. It is part of a several-decades effort to diversify the economy in places traditionally dependent on ski revenues. For the real-estate industry, a healthy roster of summer activities can SLOPE-SIDE STYLE Luxury ski homes on the market M10 FAIR WEATHER BUYERS Mike and Peggy Grubbs, at Victory Ranch in Utah, get most use out of their home in the summer. create value for land that doesn’t lie at the base of the slopes. In some locations—partic- ularly in California and lowaltitude resorts—there is a concern that climate change is gradually eroding the length of the ski season, and may eliminate it in some areas by the middle of the century, according to Daniel Scott, research chair in Climate and Society at the University of Waterloo in OnPlease turn to page M4 BODE MILLER The skier on growing up in the wild M12 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 M2 | Friday, November 3, 2017 THE WALL STREET JOURNAL. NY MANSION BEVERLY HILLS ESTATE WITH MINI TRAINS ASKS $58.88 MILLION PRIVATE-EQUITY EXECUTIVE PAYS $52 MILLION FOR NEW YORK HOME A Beverly Hills, Calif., estate with a mansion, two guesthouses and miniature trains that can squire riders around the property is seeking $58.88 million. The nearly 1¾-acre property has a 26,800-square-foot house with eight bedrooms and 15 bathrooms, according to listing agent Christophe Choo of Coldwell Banker Global Luxury. The house includes 12 antique marble fireplaces imported from France, Italy and England, and a two-story wood paneled library with his-and-hers offices. There is also a 5,000-square-foot master wing on the second floor, Mr. Choo said. The grounds include a large lawn, croquet court, tennis court and pool with a waterslide and waterfalls. Both guesthouses have their own two-car garages. Train tracks meander through the property and accommodate both steam and diesel locomotives, both rideable and both built to 1/8th the scale of the real thing. The sellers are retired real-estate developer Alan Casden and his wife, Susan. Mr. Casden said the trains were inspired in part by his visits to the railroad museum in Griffith Park. The trains provided entertainment for his children’s birthday parties, Mr. Casden said. The couple is selling because the house is “just way too big for us now,” said Mr. Casden, 70, who added that he retired last year. They plan to downsize, he said. —Katy McLaughlin Joshua Harris, co-founder of private equity firm Apollo Global Management, has purchased a 100year-old mansion on Manhattan’s Upper East Side for $52 million. Though the property first listed for $72 million in 2016, the sale still represents the second-highest price ever paid for a New York City residential townhouse, according to agent Paula Del Nunzio of Brown Harris Stevens. Financier J. Christopher Flowers paid $53 million for the Harkness mansion in 2006, setting the current record, according to public records. And earlier this year, art heir David Wildenstein sold his Upper East Side town- PRIVATE PROPERTIES Dell Technologies founder and CEO Michael Dell is in contract to buy an under-construction penthouse at One Dalton, which will be Boston’s tallest residential tower when completed, according to people with knowledge of the deal. The penthouse is in the Four Seasons Private Residences One Dalton Street, shown in a rendering above. It is one of three penthouses, all on the 60th and 61st floors of the building. One penthouse went into contract for about $40 million last year, developer Carpenter & Company said at the time, and another went on the market in August for $40 million. The price Mr. Dell has agreed to pay for the third penthouse isn’t known. Any one of the units could set a record price for a Boston condominium. The previous record was set last year by the $35 million sale of a penthouse at the city’s Millennium Tower, according to public records. The exact size of Mr. Dell’s unit isn’t known; people familiar with the building said it is very similar to the other two penthouses. The penthouse that is on the market for $40 million is expected to be roughly 7,300 square feet with a 570-squarefoot terrace. All of the penthouses include soaring ceilings and doubleheight terraces with outdoor fireplaces, according to the project’s website. Residents of the building will have access to a private resi- dents’ club, restaurant and lap pool. The building was designed by Henry N. Cobb of Pei Cobb Freed & Partners along with Gary Johnson of Cambridge Seven Associates. Tracy Campion of Boston brokerage Campion & Co. is leading sales. The penthouse wouldn’t be Mr. Dell’s first big purchase in Boston. A limited-liability company controlled by MSD Capital, an investment vehicle controlled by Mr. Dell and his family, bought a $10.9 million condo at Millennium Tower last year, records show, following a $60 billion deal by his company to acquire EMC Corp., based in Hopkinton, Mass. A spokesperson for Mr. Dell declined to comment. —Katherine Clarke RECORD TERRITORY: PALM BEACH ESTATE ON THE MARKET FOR $105 MILLION A massive Palm Beach, Fla., estate is going on the market for $105 million. If it sells for that price, it would be one of the most expensive homes ever sold in the area, according to data from appraiser Jonathan Miller. The record price paid for a Palm Beach property was set in 2012 by hedge-fund manager Ken Griffin’s purchase of four adjacent lots on nearby Blossom Way for about $130 million, Mr. Miller said. According to listing agent John O. Pickett of Brown Harris Stevens, the house is owned by Edward G. Watkins II and his wife, Karen Watkins. Mr. Watkins was president and principal owner of the Simplex Time Recorder Co. until its $1.15 billion sale to Tyco International in 2001. Founded in the late 1800s, Simplex manufactured, sold and serviced fire-alarm systems, security systems and time-equipment products. Mr. Watkins declined to be interviewed. The home is located on South Ocean Boulevard, a street lined with the vacation houses of business heavyweights like Blackstone Group CEO Stephen Schwarzman. The Watkins bought the more than 2-acre site for just over $21.5 million in 2001, Mr. Pickett said, and then tore down the existing house. They built the 28,399-square-foot home from scratch, completing it in 2004. The home was designed by architect Jeff Smith, with interiors by Bunny Williams, according to Mr. Pickett. The interior is configured around a central courtyard, with two symmetrical wings stretching out from the main axis. The courtyard has a pool, landscaped gardens and shaded col- umned seating areas, according to Mr. Pickett. Inside, the home features an imported 18th-century fireplace from Italy, hand-carved coffered ceilings, walls clad in carved shell stone and a two-story winding marble staircase. There are seven bedrooms, eight full bathrooms and four half-bathrooms. The home is in very good condition, Mr. Pickett said. — Katherine Clarke THE MOST COLORADO PLACE ON EARTH. A Lifestyle As Unique As You. 14 Sunrise Cay Drive • $15,500,000 (1033) Custom Built Home with Unique Architecture in a private club community. •Six Bedroom Suites, Five Full and One Half Bathrooms •Spectacular Water Views with 101’ of Ocean Frontage •Beautiful, Custom-Tiled Inﬁnity Pool and Spa •A Private Family Retreat From slips to beautiful oceanfront estates, Ocean Reef Club offers an array of residential choices to compliment your lifestyle. To receive a copy of our Real Estate Guide and learn more about this private club community, call 305.367.6600 or visit OceanReefClubLiving.com FLY DIRECT FROM 12 MAJOR HUBS VisitTelluride.com 844.422.6817 NEW HOMES • VILLAS • CONDOMINIUMS M A R I N A D O C K S • V I L L A & H O M E R E N TA L S Equal Housing Opportunity house for $79.5 million to an affiliate of Chinese conglomerate HNA Holdings Group, records show; that property is being used for commercial purposes, Ms. Del Nunzio said. Until recently, the 21,000square-foot Dommerich Mansion was occupied by the Center for Specialty Care, an outpatient facility for plastic surgery. The facility has since closed, and the property is ready to be returned to its original purpose as a single family mansion, Ms. Del Nunzio said. The sellers are the family of James W. Smith Jr., a plastic surgeon who bought the property in 1980 and later converted it to the care facility. They could not be reached for comment. Ms. Del Nunzio said Mr. Harris fell in love with the scale of the property, which is 44 feet wide and has seven stories plus a basement and three elevators. The home was built in 1917 for Otto Dommerich, an heir to a cotton empire and one of Manhattan’s wealthiest men at the time, according to the listing. It has 14 marble fireplaces, a staircase topped with a stained-glass dome and a rooftop terrace with views of Park Avenue to the east and Fifth Avenue and Central Park to the west. Mr. Harris declined to comment. —Katherine Clarke See more photos of notable homes at WSJ.com/Mansion. Email: firstname.lastname@example.org CLOCKWISE FROM TOP: FOUR SEASONS HOTEL & PRIVATE RESIDENCES (RENDERING); CARY HOROWITZ; GILES BRADFORD; NICK SPRINGETT Michael Dell Buys Large Boston Penthouse 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. Friday, November 3, 2017 | M3 SKI & MOUNTAIN HOMES INSIDE STORY A Home With a Hint of Monastery A Colorado couple with a passion for Japan and climbing builds a quiet home BY CANDACE JACKSON AND THEN CARMEL ZUCKER FOR THE WALL STREET JOURNAL (5) NORIE KIZAKI AND DAVID WOLF knew just what they wanted for the house they were building in Colorado: a home that reflected Ms. Kizaki’s childhood in a Buddhist monastery in rural Japan, where her father was a monk. But they also wanted a light touch: a relatively modest size and an exterior that wouldn’t stand out too much in their Boulder neighborhood, with its mix of 1950s-era ranch houses and colonial bungalows. “We wanted to incorporate the stuff we liked about Japanese houses, but we didn’t want people to say, ‘turn left at the Japanese house,’ ” says Mr. Wolf. The result is a 1,800-squarefoot, two-story, three-bedroom, 2½-bathroom modern minimalist home. It has a typical gable roof but with an enameled-steel wrapper that folds onto the flat top surface. A contemporary porch swing sits out front. “I think porch swings feel really neighborly,” says Mr. Wolf. The Japanese element is visible, but subtle. The front door and part of the facade is shou-sugi-ban cypress, a Japanese charred-wood technique that preserves the wood. The home was completed in 2015 at a cost of $750,000 to $800,000. Ms. Kizaki, a ski and climbing guide, and Mr. Wolf, an avid climber who runs a wealth-advisory firm, hired architect E.J. Meade of Denver- and Boulderbased Arch11 to handle the design. As it happened, Mr. Meade was familiar with many of the principles of Japanese design. The couple reused the foundation of the original home they had purchased in 2010 and torn down. They bought the 1/3-acre property for about $600,000. The home’s interior has many traditional Japanese elements. The small entry room is inspired by a traditional genkan, where guests can slip off their shoes and change into house slippers. The main living space is set up around a tatami room, surrounded by sliding shoji screen doors. With no furniture except for the rice straw mats on the ground, the couple uses the space for meditation, dining or watching TV on a set tucked behind a door, along with silk pillows for sitting. Ms. Kizaki’s mother sleeps in the tatami room when she visits, using a trifold Japanese futon. To fit three bedrooms and two bathrooms into the 700-squarefoot upper level, Mr. Meade says they kept hallways and corridors to a minimum and ceilings high to create a feeling of space. Off the master bedroom is a cantilevered bathroom that holds a wet room, or Japanese ofuru, with a shower and a deep Japanese soaking tub. A window placed above the tub allows a view of the Flatiron Mountains. “It’s the Japanese sense of a privileged view of nature, versus a wall of windows,” says Mr. Meade. The same is true of a front garden visible through a pair of low windows in the tatami room. The home has white oak floors and white walls throughout. Furniture and decoration are kept to a minimum, and include a couple of paintings by friend Craig Muderlak. One, in the kitchen, shows Mount Yotei, where Ms. Kizaki spends three months a year as a backcountry ski guide. Ms. Kizaki moved to Colorado about 20 years ago to attend graduate school at Denver University for international communications. She took up mountain climbing as a weekend hobby and soon left a consulting job to pursue guiding full time. Mr. Wolf, IT OCCURS TO SUBTLE Norie Kizaki and David Wolf, inset, built a home with subtle Japanese style on the facade, top, and rich traditions inside, above and below. WOODWORK The kitchen, left, has a painting of Japan by the couple’s friend Craig Muderlak. The wood facade and door are made of shou-sugi-ban cypress. who grew up on the border between Iowa and Illinois, also moved to Colorado for school, earning a master’s in business and a law degree at the University of Colorado in Boulder. The two met in 2002 through a mutual friend with whom they traveled to Ecuador for a monthlong climbing trip. They married in 2008 in a ceremony at the monastery where Ms. Kizaki grew up. They say they were drawn to the Boulder property by its proximity to the mountains, to Mr. Wolf’s office downtown, and to a favorite market. In addition to the 1950s teardown ranch house, the lot had a 575-square-foot guest cottage, where they lived during construction of their home. Today, they use the second floor of the cottage as a guest space. The ground floor also holds their Volkswagen RV camper, and all their ski and climbing gear. A central design element of the home is the floating staircase of plate steel and tension wires in the living room. The room also has big glass doors that open to a deck and a large backyard. Outside, is a lawn, vegetable garden and Concord grape orchard that has been on the property since the 1950s. Mr. Wolf also planted Japanese kabocha squash and, out front, there is a large rose bush that the couple liked so much they insisted Mr. Meade take it into account when designing the house. With a baby due early next year, the two plan to stay put this winter. They have yet to decorate the nursery, across the hall from a bedroom used as a home gym. Mr. Wolf says the Japanese sensibility in their home design is also related to their passion for climbing, where “fast and light” is the name of the game. “It’s everything you need but nothing more,” he says. YOU This is the Kiawah Island you’ve been looking for all along. And it’s yours to keep. 2 1 B E AC H F R O N T R E S I D E N C E S P R I VAT E B E AC H C L U B WORLD-CL ASS GOLF EFFORTLESS OWNERSHIP T I M B E R S K I AWA H Kiawah Island, SC | TimbersKiawah.com/beachfront | 843.628.7554 TIMBERS COLLECTION Bachelor Gulch Aspen Cabo San Lucas Jupiter Kaua‘i Kiawah Island Maui Napa Scottsdale OCEAN CLUB & RESIDENCES Snowmass Sonoma Southern California Steamboat Tuscany U.S. Virgin Islands Vail This advertisement does not constitute an offer to sell nor the solicitation of an offer to purchase made in any jurisdiction nor made to residents of any jurisdiction, including New York, where registration is required and applicable registration requirements are not fully satisfied. Timbers Kiawah Acquisition Partner, LLC uses the Timbers Resort,® Timbers Collection® and certain other Timbers brand names under a limited non-transferable license in connection with the sales and marketing of the Timbers Kiawah Ocean Club & Residences (the “Project”). If this license is terminated or expires without renewal, the Project will no longer be identified with nor have any right to use the Timbers® marks and names. All renderings depicted in this advertisement are illustrative only and may be changed at any time. All rights reserved. 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. M4 | Friday, November 3, 2017 FROM TOP: KIM RAFF FOR THE WALL STREET JOURNAL (3); REBECCA STUMPF FOR THE WALL STREET JOURNAL (2) SKI & MOUNTAIN HOMES NO SNOW HERE Mike and Peggy Grubbs’s cabin, top, which they plan on selling once their home is completed; skeet shooting, above; an outdoor area, right. SPEND SUMMER IN SKI COUNTRY Continued from page M1 tario, Canada. By building communities with facilities such as high-altitude golf courses, rock-climbing walls, outdoor pools and mountain-biking paths, and by generating cultural programming, developers and municipalities are aiming to create destinations with a raison d’être beyond snow. Summer is contributing more to mountain town economies. Tax revenue this past summer was over 50% higher than it was four years ago in Telluride and Mountain Village, Colo., according to data collected by Michael Martelon, president of the Telluride Tourism Board. In Vail, summer tax revenue in 2016 was 34% higher compared with the same period four years prior, according to data provided by the town of Vail. “The typical summer buyer in Vail is from Texas or Florida. They come for four weeks over the winter season, and then around June 15th or so and they stay until the kids go back to school,” said Barbara Scrivens of LIV Sotheby’s International Realty. In warm months, some resorts convert ski-equipment shops into bike shops, and use lifts to transport mountain bikers to maintained trails. Others offer zip lines and alpine slides—long chutes navigated by carts. Many communities stage film, food, wine or beer festivals and put on elaborate July 4 parades and fireworks. But for many buyers, an array of sophisticated cultural offerings in a lowkey environment is the real draw. After years of renting, Bill and Sudie Kirkman, who live in Fort Worth, Texas, bought a nearly 4,600-square-foot house in 2011 in Snowmass Village, Colo., about 8 miles from Aspen. “If we were only skiers, we would not have bought this house,” which has a backyard, said Mr. Kirkman, a 64-year-old attorney. “This is a summer house.” The Kirkmans paid $3.75 million for the home, according to public records. Ms. Kirkman stays from late May to mid-October; Mr. Kirkman travels back and forth, working from a home office in Snowmass. This summer, the Kirkmans hiked a lot, Mr. Kirkman said, and shopped for fruits, vegetables, cheese and bread at Aspen’s farmers market. They took in shows by Maroon 5, Keith Urban and Hall & Oates, Mr. Kirkman said. Aspen also hosts a high-profile food-and-wine festival in the summer, and 400 classical music events. The Aspen Institute, a think tank, began hosting the Aspen Ideas Festival each June in 2005; this season included presentations by former U.S. deputy attorney general Sally Yates and film producer Brian Grazer, among others. On their first visit to Victory Ranch, the Grubbses put in a deposit on a $750,000, 1.2-acre lot. They are now building a 6,700square-foot house that will cost roughly around $3 million when it is finished next summer, said Mr. Grubbs, co-founder of a home building company. Less than a year after deciding to buy the lot, the couple paid $1.6 million for a cabin on a different lot, which they plan on selling once their home is com- SEASONAL LIVING Bill and Sudie Kirkman, of Ft. Worth, Texas, and their home in Snowmass Village, Colo.; Ms. Kirkman lives here from May to October. pleted, Ms. Grubbs said. This summer, Mr. Grubbs and some family members competed in a golfing-shooting-fishing contest, and Ms. Grubbs attended various sports clinics. They threw a 59th birthday party for Mr. Grubbs, Ms. Grubbs said. Victory Ranch is a 6,700-acre community that Chicago-based developer Sterling Bay bought in 2012, said Jim Moran, the community’s director of sales. The development includes an 18-hole golf course, club houses, a shooting facility, mountain-biking trails and a restaurant. It also offers a lounge at the base of the town ski lift in Park City. While residents have a drink or rest, a valet readies ski equipment at the foot of the lift or returns it to Victory Ranch. In Stowe, Vt., the popularity of mountain biking and craft beer is drawing interest in the summer, said McKee Macdonald of Coldwell Banker Carlson Real Estate in Stowe. Two years ago, he sold a home in Stowe to Peter Harris, a 51-year-old investor who lives with his wife and three children in Brookline, Mass. Mr. Harris said he was considering buying a beach property on the island of Nantucket but was turned off by high prices and concerns that the family wouldn’t be able to use the house much. In Stowe, the family paid $1 million for a house with a view of the Worcester Range mountains and spent roughly $500,000 renovating. This summer they spent a month in the home, plus various weekends. In the winter, they use the home on weekends for skiing. Mr. Harris said they were surprised by how full Stowe is in the summer. “We were waiting just as long for tables at our favorite restaurants as we did in the winter,” he said. Micro Trends, Macro Context. In Minutes. THE DAILY SHOT Speed-read the markets Every morning, get a complete look at the trends moving global markets with The Daily Shot. Exclusive to members, WSJ’s latest newsletter delivers a sophisticated, impartial view of the markets in 30-plus charts, from credit to currencies to commodities. It’s the essential insight you need to start your day. Sign up at WSJ.com/dailyshot © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5150 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 Friday, November 3, 2017 | M4A 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 M4B | Friday, November 3, 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. Friday, November 3, 2017 | M5 MANSION SPREAD SHEET | ADAM BONISLAWSKI LEAVING LAS VEGAS For highincome renters, the odds of eviction are higher in Las Vegas than in San Francisco. A recent report from rental-listings site Apartment List found that locales with higher rents, like New York, Los Angeles and the Silicon Valley area, have among the lowest eviction rates in the country. Some of the highest rates were found in more modestly priced spots like Memphis and Las Vegas, according to survey data the company collected from 8 million users over the last three years. The survey found similar results for renters across the annual income spectrum. For instance, higher-income renters—defined here as PING ZHU Cities with the highest eviction rates for high-earning renters those with incomes above $60,000—had eviction rates of 2.9% in Las Vegas and 2.8% in Memphis, cities where the overall eviction rates were 5.5% and 6.1%, respectively. Renters in the same income bracket had eviction rates of 0.8% in Boston and 0.9% in San Francisco, areas with Eviction rates among higher-income renters in selected top U.S. metro areas. overall eviction rates of 2% and HIGHMETRO AREA OVERALL INCOME 1.6%, respectively. Las Vegas 5.5% 2.9% While the metrolevel data used in Dallas-Fort Worth 5.6% 2.8% the company’s analMemphis 6.1% 2.8% ysis could mask Atlanta 5.7% 2.7% higher rates of Phoenix 5.9% 2.6% renter displacement in specific rapidly Miami 3.5% 1.6% gentrifying neighWashington, D.C. 2.4% 1.4% borhoods, in general Chicago 3.1% 1.3% the numbers indiMinneapolis 3.1% 1.2% cate that a strong Los Angeles 1.9% 1.2% local economy keeps eviction rates low New York 2.2% 1.1% even in the face of Seattle 2.3% 1.1% lofty rents, says Denver 2.5% 1.1% Christopher Salviati, San Francisco 1.6% 0.9% housing economist Boston 2.0% 0.8% at Apartment List. Also possible, he Exit Strategy Source: Apartment List notes, is that tight rental markets in these cities make it difficult for borderline renters to get a lease in the first place. In these markets, “Landlords have more discretion in terms of who they are renting to,” he says. “So if you are a renter whose history might suggest you would have more difficulty paying rent, you would probably have a harder time even getting your foot in the door.” Another factor could be strong tenant protections in certain high-rent spots like New York, Mr. Salviati adds. Real-estate lawyer Steve Wagner, partner with Manhattan-based firm Wagner Berkow, recalls a pair of cases involving high-income New York clients: “I was able to keep two different tenants in their apartments for over six years without paying rent.” He attributes the feat to both legal acumen and luck, adding that recent changes to the city’s housing laws make such an outcome less likely today. KAYA SURVIVED! She was born 4 months early and spent more than 5 months in the hospital. Sign up at marchforbabies.org © 2017 March of Dimes Foundation WSJ TALK / E XPERIENCE / OFFER / G ETAWAY Win a Mountain Escape to Montage Deer Valley* Discover inspiring mountain views with a luxurious three-night retreat to one of America’s best ski resorts. Enjoy a massage at Utah’s largest spa after taking on the dramatic slopes, or soar to sensational heights on a hot-air balloon adventure. E XCLUSIVE TO WSJ MEMBER S ENTER TO WIN AT WSJPLUS.COM/MONTAGE-UTAH *No purchase necessary. Void where prohibited. If you subscribed to The Wall Street Journal after November 3, 2017 you will not be eligible to win. Open only to legal residents of the 50 United States (and D.C.), or Canada (excluding the Province of Quebec), age 18 and over. Any resident of Canada whose entry is selected in the random draw must correctly answer, unaided, a time-limited mathematical skill testing question to qualify as a winner of the prize. For ofﬁcial rules, including prize description and odds, visit wsjplus.com/ofﬁcialrules. Sponsor: Dow Jones & Company, 1211 6th Avenue, New York, NY 10036. © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6050 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 M6 | Friday, November 3, 2017 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. SKI & MOUNTAIN HOMES Friday, November 3, 2017 | M7 SKI & MOUNTAIN HOMES WARM AND COZY Michael and Shelia Alessandro, top center, bought their modern mountain home for $3.4 million in Wilson, Wyo. Top left, the open-plan kitchen and dining area; top right, the living room, where the Alessandros added even more glass after they bought the home. Mr. Alessandro says the home, above, is still cozy despite all the windows. Heating bills average $538 a month. SEE-THROUGH Steve Brint and Mark Brown’s $3 million, 4,100square-foot house in Aspen, Colo. The living room has sliding glass doors that open onto a deck. “We have 360-degree views,” says homeowner Tasha Atchison, a 44-year-old mother of two and retired transportation engineer. “Why ruin that with walls?” Ms. Atchison and her husband, Shane, a 44-year-old chief marketing officer of Utah-based software firm Domo, completed the house in 2012 and now spend weekends and vacations there with their children, Keegan, 13, and Frances, 11. Sitting on 20 acres, the property is composed of four separate buildings that are placed to frame views of the valley, Pearrygin Lake and the Studhorse Ridge. The separate structures, built like pioneer wagons circling a campfire, give those inside DAVID O. MARLOW (2) Continued from page M1 in glassmaking and engineering mean homes can have larger panes of architectural glass with higher levels of insulation. Two or three panes, with sophisticated coatings and argon gas between layers to displace cold air, allow homeowners to manage extreme climates without inflated utility bills. Extra-clear glass, low in iron, eliminates the green tint that thick glass had in the past. For safety, glass is laminated like car windshields. To manage sunlight, it comes in versions that darken like sunglasses, either automatically or at the flick of a switch. In contemporary mountain homes, windows have narrow steel, aluminum or fiberglass frames. “The goal is for the window frame to go away,” says Alan Pickett, resident architect at Pella Corp., a window and door manufacturer in Pella, Iowa. “Clients want more glass, less frame, less wall.” Such transparency can be costly. At Agnora, a company in Collingwood, Ontario, that makes large architectural glass, prices rise with the size of the panel and level of insulation. Double-pane, high-performance glass with low emissivity and argon gas costs three times as much as single-pane glass. Triplepane, triple-coated glass with argon costs more than five times as much. “In mountain areas, almost all houses have double-pane glass, some have triple-pane,” says Richard Wilson, Agnora’s founder and president. Some homeowners reduce building costs by using premium glass on the main panoramic windows and less-expensive varieties in less-prominent spaces. Others opt for smaller, more affordable window panes with a grid of muntins, even though it interferes with the view. Architect Tom Kundig designed a nearly translucent retreat in Washington’s remote Methow Valley. The communal area of the 3,200square-foot, four-bedroom compound near Winthrop, Wash., has glass on three sides. Walls open up, further blurring the boundaries between inside and outside. DAVID AGNELLO FOR THE WALL STREET JOURNAL (4) SKI HOMES SEEK FULL TRANSPARENCY a closer connection to the landscape than one larger house would, says Mr. Kundig, owner and design principal at Seattle-based architectural firm Olson Kundig. Public spaces, such as the living, dining and kitchen areas, are in one building; private spaces, including the master bedroom, children’s room and den are a short walk away in another. One challenge homeowners face with contemporary mountain homes: making them look cozy. To offset the stark look of glass, steel and straight lines, they ask for earthy, textured materials for nonglass walls, as well as soft fabrics and warm colors for furnishings. At the Atchisons’ house, Olson Kundig designed a small kitchen area with a low ceiling made of reclaimed barnwood. Living-room armchairs are upholstered in homey tartan. Red dining chairs provide a pop of color to the industrial black, brown and gray. Floors are made of brushed concrete that “really grounds you,” says Ms. Atchison. At John Thompson’s contemporary home in Big Sky, Mont., the living room walls are full-height sliding doors that completely open up to the outside deck. Glass walls on the sides make the view even larger. Floor-to-ceiling windows in the master bedroom create a sense of immersion in the outdoors. “When you’re in the house, it feels like you are in nature,” says Mr. Thompson, who sells real estate at Big Sky’s Yellowstone Club and completed his house at Spanish Peaks, a nearby ski and golf community, in 2015. “You just get lost in the view.” The home uses highly insulated, triple-pane performance glass that keeps out both cold and heat from the sun and fends off ultraviolet rays. And it is clear enough to make Mr. Thompson and his fiancée, Cody Goettle, feel one with the landscape. Ms. Goettle, a kinesiologist and recent graduate of Montana State University, and Mr. Thompson, who has traveled extensively in Australia, say the house was inspired by that country’s contemporary coastal architecture, with clean lines, natural materials and emphasis on views. “Glass technology is changing quickly,” says Reid Smith, a Bozeman, Mont., architect who designed the $3.5 million house. “There is a world of innovation out there that is making it easier to use those large sheets of glass.” At Steve Brint and Mark Brown’s 4,100-square-foot house on the Roaring Fork River in Aspen, Colo., visitors are greeted by a shimmering, two-story glass wall exposing a floating staircase. Next to it is a glass front door that opens a view through a corridor, to pine trees behind. The living room has sliding glass doors that open to a 900square-foot deck with a glass railing. The master suite also has floor-to-ceiling windows. For Mr. Brint, 71, the main goal in building the modern-mountain house was a seamless transition to the outdoors. At the same time, Mr. Brint and his husband, 65-year-old Mr. Brown, wanted the four-bedroom home to feel warm and welcoming. To create that sense of sense of comfort, Aspen-based architect Charles Cunniffe matched the glass with textured sandstone walls. The roof has wide eaves that shade outdoor living space. And he designed a lighting system that creates a warm atmosphere and prevents the glass panes from becoming large mirrors at night. The glass itself is highly insulated, preserving the heat in Colorado’s cold winters. “We can enjoy the view of the snow without feeling the cold of the snow,” says Mr. Brint, a retired ophthalmologist. With Mr. Brown, a retired accountant, Mr. Brint is in Aspen six weeks in the winter and four months in the summer, which the pair spends hiking, biking and horseback riding. They spent around $600 per square foot building the house—around $3 million, including outdoor space and garage—and moved in 2015. Mr. Cunniffe, the architect, says the more glass there is on a house, the more expensive it is—and modern mountain architecture needs a lot of it. “The clients that contact us are usually looking for a maximum amount of nature and minimal separation between them and nature,” he says. “As much glass as possible—that’s our No. 1 request.” Our Reality in Waiting From defeating superbugs and hurricanes to understanding the Bitcoin enigma, season 2 of The Future of Everything series explores the challenges and possibilities of our impending way of life. ApplePodcasts.com/FOE © 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6052 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. M8 | Friday, November 3, 2017 MANSION JUMBO JUNGLE | ROBYN A. FRIEDMAN DON’T GET BURNED BY A CREDIT FREEZE CHRIS GASH If you put a freeze on your credit and then apply for a mortgage, you will need to allow the lender access to your report Baby, it’s cold outside. With Equifax and other companies reporting massive data breaches this year, more consumers are putting a freeze on their credit reports. And while a credit freeze won’t affect a borrower’s ability to qualify for a mortgage, it does require the borrower to take additional steps during the application process. A credit freeze blocks anyone—including lenders and employers—from accessing your credit report. Requests for a credit freeze must be submitted by mail, online or over the phone to the three major credit bureaus individually (Equifax, TransUnion and Experian). You’ll need to provide your name, address, date of birth and Social Security number. The fees vary by state but run from free to $10 each time you place or lift the freeze, and payments can be made using a personal check, money order or credit card. (Fees may be waived for victims of identity theft.) Once placed, a credit freeze stays on your credit report until you lift or remove it. But remember: It can affect your ability to get a new cellphone, apply for a store credit card or even get a job. And existing creditors or debt collectors acting on their behalf will still have access. “Freezing your credit can prevent others from opening new lines of credit in your name, but it also prevents you from opening an account yourself,” says Sam Mischner, chief sales officer and head of mortgage at Charlotte, N.C.-based LendingTree. “If you’ve instituted a freeze on your credit but now want to apply for a loan, you will need to take the extra step of allowing the lender access to your credit. You will have to contact each credit bureau to temporarily lift the freeze.” For borrowers applying for a mortgage, that freeze will probably only have to be lifted once, because the credit report would be good for the typical 30- to 45-day period from contract to closing, says Josh Moffitt, founder and president of Silverton Mortgage Specialists, a direct-mortgage lender in Atlanta. But there are certain situations where another report needs to be pulled by the lender nearer to the closing. In that case, the borrower may have to lift the freeze—and pay for it—multiple times. In addition, borrowers might run into problems in competitive housing markets where they need to close quickly. In those instances, it might be tricky to unfreeze the credit in time for the lender to pull credit reports and complete the underwriting and pre-closing process. Here are a few considerations if you’re applying for a mortgage with frozen credit. • Watch yourself. While freezing your credit protects you from the time the freeze becomes effective, it does nothing to correct existing credit issues. Get a copy of your credit report from each of the three reporting agencies, check them carefully and correct any errors before you apply for a mortgage. • Get alerts. While a credit freeze “locks down” your credit, a fraud alert still allows creditors to pull your credit report as long as they verify your identity first, according to the Federal Trade Commission. For example, a business may call you to verify that you are the person requesting new credit. However, while fraud alerts may make it more difficult for others to open new credit accounts in your name, they may not prevent misuse of your existing accounts. Placing a fraud alert is easier than with a freeze. You need only to contact one of the reporting agencies, which in turn is required to notify the others. A fraud alert is free. • Know how the freeze works. Understand the logistics of lifting the freeze—and make sure you allow enough time for the lender to pull credit reports. Consumers who deal directly with the three credit-reporting agencies are given a personal identification number to provide, either by phone, online or mail, every time they want to lift or remove the freeze, according to David M. Blumberg, a spokesman for TransUnion. Alternatively, consumers can lock or unlock their credit using a third-party service like TransUnion’s TrueIdentity, which is available online or in an app. Here is contact information for fraud and identitytheft issues. Equifax: 888-349-9960, www.equifax.com Experian: 888-397-3742, www.experian.com TransUnion: 888-909-8872 www.transunion.com ADVERTISEMENT JOHN’S ISLAND – VERO BEACH, FLORIDA HEBER VALLEY, UTAH - PARK CITY DOWNTOWN ST. PETERSBURG FLORIDA One Of The Last Buildable Lots In JI, this pristine 2.36± acre homesite offers 188’ water frontage, unmatched views & deep water river access. Located in the most renowned club community on the east coast offering 3 miles of pristine beach, 3 championship golf courses, 17 Har-tru tennis courts, pickleball, squash & a spectacular oceanfront Beach Club. Overlooking the Jack Nicklaus Signature course (Golf Magazine’s “Best New Private” in 2009), 2215 Signal Peak Court is a luxurious 6,333 sf home with 5 BRs. As the most successful private community in the Park City area, Red Ledges has great access to world class mountain, valley, water and trail activities, all just 45 minutes from a major hub airport. Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3 blocks from the water, artfully designed townhomes now under construction on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2 car garage, private elevator, and amazing rooftop terrace. Low HOA fees. Walking distance to world-class restaurants, museums, shopping, parks, marina, and Tampa Bay. $6,900,000 $2,500,000 From the $800’s to $900’s JohnsIslandRealEstate.com www.RedLedges.com John’s Island Real Estate Company Red Ledges Realty Chris Beardsley phone: 772.231.0900 phone: 877.733.5334 email: email@example.com www.RegentLane.com NJR Property Investments LLC info@RedLedges.com phone: 727.515.5556 email: firstname.lastname@example.org NEWPORT, RHODE ISLAND - CASA DEL SOLE KIAWAH ISLAND, SOUTH CAROLINA GREAT LIFESTYLE IN NAPLES, FLORIDA Stunning Palladian-style villa, originally built in early 20th century, completely renovated with state-of-the-art systems. Set on almost two acres, the estate is located just off Ocean Drive. Masterfully reinvented with dramatic entry hall and grand staircase balanced by separate formal living & dining rooms leading to covered loggias. Two master suites with balconies, chef’s kitchen, and neoclassical pool with patio and firepit. Nestled in a highly walkable, gated community with a dock, kayak launch, pool, and curving lane of new coastal Lowcountry homes, the newly built home at 117 Bobcat Lane offers marsh views in two directions. With 2,641 square feet, 4 bedrooms, and 4 ½ baths, it charms all who enter with an open floor plan filled with natural light. A Kiawah Island Club Membership is available. Live the lifestyle of your dreams in Naples, Florida! Gorgeous singlefamily residences up to 4,879 a/c sq. ft. Amazing six-acre recreation area with 13,000 sq. ft. clubhouse, resort pool, fitness, tennis, indoor sports court and much more - all included in low HOA fees. This is an incredible opportunity in a great Naples, Florida location – call today! $4,395,000 $1,548,000 From the $400’s to the $700’s GustaveWhite.com kiawahisland.com/real-estate Gustave White Sotheby’s International Realty Kiawah Island Real Estate phone: 401.849.3000 phone: 866.312.1780 email@example.com To Advertise Call: 800-366-3975 GL HOMES phone: 800.281.9239 www.glhomes.com THE WALL STREET JOURNAL. Friday, November 3, 2017 | M9 NY North Palm Beach, Fl | $11,400,000 North Palm Beach, Fl | $9,975,000 Purchase, NY | $9,950,000 orleaNs, caPe cod, ma | $9,950,000 JohNs IslaNd, sc | $8,875,000 WEB ID: QTTQ4 WEB ID: QVPV4 WEB ID: FEDV4 WEB ID: ALXB4 WEB ID: MEHQ4 Unmatched views, deep water dockage, 120’ Contemporary masterpiece w/ endless water Built-for-entertaining estate on 7.23 acres frontage. Once in a lifetime opportunity. views/dock; 11,071 total sf on one+ acres. with unrivaled sports complex. Lost Tree Realty Lost Tree Realty Houlihan Lawrence Magnificent 4.4 acre Pleasant Bay waterfront One of the great early Georgian homes – estate w/private beach, boathouse, pool. 52-acre plantation. 7 miles from Charleston. Robert Paul Properties Carriage Properties Peter Erdmann — 561.329.2383 Denice Sexton — 561.662.8344 Pollena Forsman — 914.420.8665 R. Kinlin / F. Schofield — 508.648.2739 Thomas Bennett — 843.906.0247 Falmouth, caPe cod, ma | $8,400,000 ostervIlle, caPe cod, ma | $6,900,000 ostervIlle, caPe cod, ma | $6,495,000 Palm Beach, Fl | $5,500,000 chIcago, Il | $4,925,000 WEB ID: CPZD4 WEB ID: HCAW4 WEB ID: KNSB4 WEB ID: XFDD4 WEB ID: OKRD4 Quaint waterfront living on Chapoquoit Exclusive waterfront residence in Oyster Beachfront on Nantucket Sound with sweepIsland with assoc docks, beaches and tennis. Harbors w/ inground pool & deep water dock. ing views, spacious well-appointed interior. Robert Paul Properties Robert Paul Properties Robert Paul Properties AD Editor’s Selection – Timeless masterpiece – Corner top floor – Intracoastal, city views. Illustrated Properties-Luxury Collection Iconic Park Tower. 4,200sf. Chef’s kitchen. Sumptuous master suite overlooking lake. Baird & Warner R. Kinlin/B.Hussey — 508.648.2739 Robert Kinlin — 508.648.2739 Paul Grover — 508.364.3500 Shelly Newman — 612.860.4599 Sharon Glickman — 312.758.0718 savaNNah, ga | $4,500,000 North Palm Beach, Fl | $4,299,000 hIltoN head, sc | PrIce uPoN request ostervIlle, caPe cod, ma | $3,999,000 chIcago, Il | $3,995,000 WEB ID: LIBJ4 WEB ID: LUVC4 WEB ID: VEEJ4 WEB ID: RBUB4 WEB ID: AJJD4 C.1847 family compound,dockhouse,porches/ Contemporary 5 BR Smart Home, ocean historic appointments, stunning & glamorus. access, 1-acre lot, first class details. Cora Bett Thomas Realty & Associates Lost Tree Realty MidCentury Sea Pines OceanFront, orig floorplan, excellent condition, lg lot, pool. Cora Bett Thomas Realty & Associates Estate style residence with beautiful water views, in-ground pool and private dock. Robert Paul Properties Classic recently renovated Georgian home has open floor plan & 2-car garage w/deck. Baird & Warner Cora Bett Thomas — 912.313.4200 Peter Erdmann — 561.329.2383 Cora Bett Thomas — 912.313.4200 Robert Kinlin — 508.648.2739 Jane Shawkey-Nye — 312.504.5055 sarasota, Fl | $3,600,000 e. Falmouth, caPe cod, ma | $3,195,000 vaNcouver, Wa | $2,888,600 North Palm Beach, Fl | $2,495,000 savaNNah, ga | $2,450,000 WEB ID: LJTD4 WEB ID: ENYQ4 WEB ID: VWVD4 WEB ID: ICJQ4 WEB ID: COHD4 The Ritz-Carlton Residences, Sarasota offers unrivaled views & services. Michael Saunders & Company Waterfront with incredible views and a substantial dock on Green Pond, Assoc beach. Robert Paul Properties Stately Georgian home. South facing “Sum Light filled 4BR 4BA garden home with pool 6,000+ sqft. estate/deep water, gated, pool, of 10” Feng Shui with Columbia River views. in prestigious gated golf community. guest quarters, private dock, sunsets. Hasson Company Realtors Lost Tree Realty Cora Bett Thomas Realty & Associates Julia DeCastro — 941.702.2300 R. Kinlin/B. Hussey — 508.648.2739 Steve Studley — 360.606.8816 Peter Erdmann — 561.329.2383 Bradford Moody — 912.844.4663 xypfi. mequoN, WI | $2,147,000 savaNNah, ga | $1,750,000 hudsoN valleY, NY | $1,395,000 North Palm Beach, Fl | $1,395,000 tequesta, Fl | $1,275,000 WEB ID: BHFD4 WEB ID: RZQD4 WEB ID: GTWJ4 WEB ID: HKYU4 WEB ID: PTTQ4 Classic style, beautiful sunrises and breathtaking views of Lake Michigan. Shorewest, REALTORS® Sophisticated, contemporary design, marshfront, abundant light, 3 beds/baths. Cora Bett Thomas Realty & Associates Stunning legacy compound: 3 dazzling homes 2 BR Water Club Condo 20th fl. South Tower. 4BR 5½BA Villa in prestigious Jupiter Hills + pond on 17 private acres near Reservoir. Spectacular water views, dock available. Village. Large pool, screened lanai. Westwood Metes & Bounds Realty Lost Tree Realty Lost Tree Realty Bridget Behrens — 414.339.7685 Cora Bett Thomas — 912.313.4200 Hayes Clement — 917.568.5226 Denice Sexton — 561.662.8344 Denice Sexton — 561.662.8344 Follow us on: sarasota, Fl | $1,229,000 savaNNah, ga | $1,100,000 rIchmoNd, va | $998,000 hudsoN valleY, NY | $829,000 WEB ID: VXOD4 WEB ID: NTHC4 WEB ID: KMYD4 WEB ID: BXGC4 The Mark offers a walkable, luxurious urban lifestyle in downtown Sarasota. Michael Saunders & Company Historic Dist - restored 12’ ceilings, 7 frplcs, crtyard, side porches, hardwoods. Cora Bett Thomas Realty & Associates Reminiscent of the Cotswold in England and nestled on 7.42 acres of land. Long & Foster® Real Estate, Inc. Modern-art masterpiece on 24 acres, host to B-52s’ “Love Shack.” 90 minutes from UWS. Westwood Metes & Bounds Realty Georgia Kopelousos — 941.234.4323 Bradford Moody — 912.844.4663 Sylvia Burch — 804.301.5952 Hayes Clement — 917.568.5226 LUXURY HOMES FROM © 2017 Luxury Portfolio International.® Offering is subject to errors, omissions, change of price, or withdrawal without notice. All information considered reliable; however, it has been supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity. M10 | Friday, November 3, 2017 THE WALL STREET JOURNAL. * * SKI & MOUNTAIN HOMES RELATIVE VALUES LUXURY HOMES MADE FOR THE SLOPES GIBEON PHOTOGRAPHY MICHAEL BRANDS (LEFT); DEER VALLEY REAL ESTATE GUIDE Properties for sale in Colorado, Utah and Wyoming that were built for skiing enthusiasts $50 million $17.9 million $16.95 million Aspen, Colo. Seven bedrooms, seven full bathrooms, three half-baths Park City, Utah Nine bedrooms, 15 bathrooms Jackson Hole, Wyo. Four bedrooms, six bathrooms This 15,664-square-foot, ski-in/ski-out home was built in 2006 on 60 acres. The main home has a theater, pub and wine room, and is on a private ski run. An outdoor area has a heated dining area, fireplace and sunken hot tub. A caretaker home has another three bedrooms and three baths. The property also has a 7,500-squarefoot barn with heated vehicle-care center. Agents: Eric Cohen and Craig Morris, Aspen Snowmass/Sotheby’s International Realty This Park City ski-in/ski-out contemporary home has views of the mountains and forest, and sits between Boogeyman and Pipe Dream ski runs at Park City Resort. The home, built in 2011, has a heated saltwater pool, fireplace, indoor grill and sliding walls. There are 14 fireplaces and 272 windows. A three-bedroom, fourbath guesthouse is connected to the main house by a walkway. Agent: Erik Asarian, KW Park City Keller Williams This 7,302-square-foot home, built in 2016, is a cross-country ski property on 35 acres. Floor-to-ceiling sliding glass walls connect the outside. It has two wings with guest suites. The owner’s level has an office, library, and master suite with his-and-hers baths. There are fishing tributaries, and horse and cross-country trails. Agent: David A. NeVille, Jackson Hole Real Estate Associates —Stacey Altherr ADVERTISEMENT Distinctive Properties & Estates To advertise: 800-366-3975 or WSJ.com/classiﬁeds FLORIDA FLORIDA MULTI STATE OFFERINGS !" # $% &'' %( )' **** +' !" # ! " ) ,( - . /'#0 * 1'#0 !" # ALABAMA NEW HAMPSHIRE ,"-%$" (%)- " # $%& '"( # ) *+ ! NEW YORK ! " #$% % & ' " () *%+ ,$ " -,. /01203 244205!6 78 ,,,&' '&$)&' 9 +: * ! " # ! ! ! # $%! ! FLORIDA - . ! " # $% $ %% ! && %'$ '() & + , , ! " # $ % & ' ( " ' # ' () &+,,, & % % &%' % ( & % ) % % ) ( & ) % %% ( % % * ' ()! *+,,,,, ! ! ! % """ $% """# !! !!#$% & && !"# "$" !!" !#% " #& # ! $ %& '( )(* % )+ , !" % % MONTANA NEW YORK NEW YORK ! ! FLORIDA VERMONT !" ## $ FLORIDA ! " # " $ ! " #$%& %& ' ( ( !"! NOTABLECOMMERCIAL PROPERTIES (800) 366-3975 firstname.lastname@example.org © 2017 Dow Jones & Company, Inc. All Rights Reserved. THE WALL STREET JOURNAL. Friday, November 3, 2017 |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or 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. M12 | Friday, November 3, 2017 SKI & MOUNTAIN HOMES HOUSE CALL | BODE MILLER The ‘Naked Boy’ From the Woods The former Olympic skier grew up in a wilderness home; today, golfing in Orange County, Calif. My parents built our home themselves, a mile’s hike from the nearest road. From the start, I had a lot of freedom and spent much of my time on my own figuring how the world around me worked. I come from a long line of pioneering types. My grandparents met near Lake Tahoe just after World War II. My grandmother, Peg, was a ski bunny there, and my grandfather, Jack, was on leave from the Navy. After they married in the late 1940s, he convinced her to move to the White Mountains to start a ski lodge. He didn’t have to ask twice. My grandmother was brash and an adventurous, fast-driving, gambling type. My grandfather was more introverted, but he had a dynamic personality. When they settled in New Hampshire in the late 1940s, the White Mountains Region wasn’t very populated. They bought a farmhouse on 150 acres in Easton. By the early ’50s, they started Tamarack Ski Lodge, and in 1962 they opened a tennis camp. My love of sports came from my time spent at that tennis camp in the 1980s. Every summer, a large number of kids stayed there. I didn’t wear much, and everyone knew me as “the naked boy.” My mother’s brother Mike also was a big influence. He had been a professional skier. He appreciated EDGE Bode Miller, left, competing in Switzerland, 2014; below, with media in Austria in January; bottom, at about 3 at his New Hampshire home. FROM TOP: ALEXIS BOICHARD/AGENCE ZOOM/GETTY IMAGES; JURE MAKOVEC/AFP/GETTY IMAGES; BODE MILLER My childhood was pretty unorthodox. I grew up in the woods of Franconia, N.H., next to the White Mountain National Forest. The wilderness was my playground. that I shared his passion for sports. My family first took me skiing when I was 2. From the start, the sport felt natural. I was middle-ofthe-road, but I tried harder than everyone else and I took more risks and managed them differently. My father’s family was from Burlington, Vt. His father was a surgeon, and his two brothers were doctors. My dad, Woody, was a gifted athlete and loved to play tennis. He played in a few tournaments at Tamarack and liked beating my mother’s younger brothers. At first, my mother, Jo, moved to Burlington to join him while he was in med school. But after they married, he dropped out against the wishes of his parents, and they moved to Tamarack. One day, while picking raspberries on a hike, my parents came to a clearing on a rugged corner of my grandparents’ property. With the help of family and friends, they built a house using the trees they had cut down to clear the site. After I was born in 1977, they built a three-story addition. Our house was too far off the grid for electricity and phone lines. So we had two wood stoves, and our bathroom was an outhouse on the other side of a stream. Crossing that stream at night and weathering the winters bred self-sufficiency and independence. We had a utilitarian lifestyle, and that’s all I knew. My father didn’t have a fixed occupation. He and my mom made maple syrup and sold it in town. Over time, all of those struggles— building a house, trying to make ends meet—took a toll on their marriage. They separated when I was 6, and I wasn’t happy when my father left. The years that followed were tough. My mother made crafts to sell. Her largest annual income was about $20,000. When I was 8, she moved me, my older sister Kyla, my younger sister Wren and our little brother Chelone down to my grandmother’s old house. My grandmother had built a smaller house for herself on the property. My grandmother was a huge REMARKABLE. STRIKING. ELEGANT. AND THAT’S JUST THE BATHROOM. Luxury homes that aren’t everything to everyone. But everything to a select few. Browse our collection at berkshirehathawayhs.com ©2017 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not veriﬁed or guaranteed. If your property is currently listed with a broker, this is not intended as a solicitation. Equal Housing Opportunity. part of my life. When we watched the 1984 Winter Olympics together on TV, I asked her how the skiers learned to do what they were doing. She told me they were born just like me, but they had the drive and the right opportunity and stuck with it. She helped me understand what it took to be great. Today, my wife, Morgan, and I live with our four children in Orange County, Calif., near a national park and mountains. We recently had a house on 11 acres on a hill, but it was too large for us. Now we live in a whiteand-redbrick, 5,000square-foot Cape Cod. The five-bedroom house is near a golf course. I love golf—not because I like hitting the ball. I just love being outside. Living in a warm climate isn’t a problem for me. I had enough of the snow, and I’m done with professional skiing. When I was little, my brother, Chelone, and I used to hunt in the wilderness for rock crystals by going through rockslides. I keep a few of those rocks in my office. Chelone died in 2013 of a seizure, and the rocks are important to me. They remind me of my childhood. —As told to Marc Myers Bode Miller, 40, is a former Olympic alpine ski racer and winner of six Olympic medals, including a gold. He will be a commentator for NBC during the Winter Games in February.