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The Wall Street Journal November 07 2017

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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 23548.42 À 9.23 0.04%
NASDAQ 6786.44 À 0.3%
STOXX 600 396.59 À 0.1%
10-YR. TREAS. À 7/32 , yield 2.318%
HHHH $4.00
WSJ.com
TUESDAY, NOVEMBER 7, 2017 ~ VOL. CCLXX NO. 109
* * * * * *
OIL $57.35 À $1.71
GOLD $1,279.40 À $12.90
Business & Finance
roadcom made an unsolicited $105 billion bid for
Qualcomm, the chip industry’s boldest bet yet that size
will equal strength at a time
of technological upheaval. A1
B
BY TED GREENWALD
Broadcom Ltd. made an unsolicited $105 billion takeover
bid for Qualcomm Inc., the chip
industry’s boldest bet yet that
size will equal strength at a
time of technological upheaval.
The approach, which would
mark the biggest technology
takeover ever, shows how tech
companies are positioning
themselves for a world where
a range of chip-driven devices—from phones to cars to
factory robots—are transmitting, receiving and processing
evermore information.
Broadcom Chief Executive
Hock Tan already has used acquisitions to build the company
into the fourth-biggest chip
maker by market value, part of
a wave of industry consolidation as profits on some chips,
such as those used in personal
computers, are squeezed by
sluggish sales and rising costs.
A combination with Qualcomm would create a behemoth
whose chips manage communications among consumer devices and appliances, phone service providers, and data centers
that are becoming the workhorses in artificial intelligence.
The deal is far from certain.
San Diego-based Qualcomm,
which said it would consider
the proposal, is expected ultimately to rebuff it on the
grounds that the price isn’t
high enough, especially given
the significant risk that regulators would block it, accordPlease see DEAL page A5
Disney recently held talks
to purchase a large chunk of
Fox’s entertainment businesses, but the discussions
ran into an impasse over
price and other key terms. A1
Qatar Airways is buying a
9.6% stake in Cathay Pacific
for $661 million, its latest investment in a global rival. B3
Valeant will sell Sprout to
Sprout ex-shareholders after
they said Valeant botched
the marketing of a drug. B6
CVS will offer next-day
delivery of prescription
drugs as it faces potential
competition by Amazon. B6
Goldman and CIC are
joining on a fund to help the
Chinese sovereign-wealth
fund invest in the U.S. B12
Intel and AMD are teaming up on a laptop chip to
compete with Nvidia. B4
ERIC GAY/ASSOCIATED PRESS
Saudi Arabia’s high-profile
arrests have raised the stakes
for global investors just as the
country embarks on a drive
to lure foreign capital. B1
Sprint said it would increase spending on its network after merger talks
with T-Mobile collapsed. B1
A law-enforcement officer helps put a flag at half-staff near the scene of the shooting at the First Baptist Church of Sutherland Springs, Texas.
Gunman Had Violent Past
Military failed to
submit attacker’s
domestic-assault
conviction to FBI
By Zusha Elinson,
Russell Gold
and Erin Ailworth
NEW BRAUNFELS, Texas—
The gunman who killed 26 people at a Texas church on Sunday morning had a history of
domestic abuse, animal abuse
and trouble holding down a
job, as well as a failed marriage, records show.
But 26-year-old Devin Patrick Kelley’s history of violence
didn’t prevent him from purchasing weapons.
One reason, an Air Force
spokeswoman said, is because
the service failed to submit
Kelley’s record to the Federal
Bureau of Investigation following a court-martial conviction,
including for slamming his
baby’s head. The military’s
lapse apparently explains why
Kelley passed an FBI back-
Investors Eye Saudi Crackdown
World-Wide
The gunman who killed
26 people at a Texas church
was able to buy weapons despite a history of violence in
part because the Air Force
failed to submit his record
to the FBI following a courtmartial conviction. A1, A2
Trump urged Japan to
buy massive amounts of U.S.
military equipment, saying it
would help protect the country from North Korea. A6
Saudi Arabia said a missile attack on Riyadh by Yemeni rebels, which was intercepted, could be considered
an Iranian act of war. A8
Saudi Arabia’s main stock index held steady Monday in the wake
of a government crackdown, but shares in a firm owned by a Saudi
billionaire who was detained fell sharply. B1, B14
Tadawul All Shares Index
Kingdom Holding’s share price
7600
13.0 Saudi riyals
7400
12.5
11.5
7000
Monday
6984.87
10.5
10.0
6400
6200
9.0
Comey called Clinton’s use
of a private email server
“grossly negligent” in an
early draft of a statement. A5
6000
8.5
Sen. Paul faces an extended absence from the
Senate after he was injured
in an attack by a neighbor. A4
Trump’s campaign team
was briefed before and after
adviser Page’s trip to Moscow
last year, testimony reveals. A4
Gubernatorial races in
Virginia and New Jersey will
be closely watched for
broader political signals. A3
Spain’s government and
Catalan independence forces
have begun maneuvering
ahead of December votes. A9
CONTENTS
Banking, Finance.. B12
Business News.. B3,6,7
Capital Journal...... A4
Crossword............... A11
Heard on Street.. B13
Life & Arts....... A11-13
Markets.................... B13
Opinion.............. A15-17
Sports....................... A14
U.S. News............. A2-5
Technology............... B4
Weather Watch.. A11
World News... A6,8-9
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
9.5
2016 ’17
Source: FactSet
Monday
9 riyals
2016 ’17
Note: 1 Saudi riyal = $0.27
THE WALL STREET JOURNAL.
Amazon Studios
Boss Left Long
Trail of Allegations
wasn’t at church Sunday, authorities said. A woman at the
home of Kelley’s in-laws said
the family didn’t want to speak.
After firing on the church,
Kelley fled the scene, pursued
by an armed neighbor who
grabbed his own weapon and
shot at him.
During the car chase, Kelley
called his father to say he had
been shot and didn’t expect to
survive, said Freeman MarPlease see ATTACK page A2
Families are left with
unspeakable losses................... A2
operations and that media mogul Rupert Murdoch is open to
a surprising restructuring of
his empire.
Disney approached Fox in recent weeks about buying its cable TV networks such as FX and
National Geographic Channel,
the Twentieth Century Fox studio and international distribution operations, the people said.
Such a deal would have left 21st
INSIDE
Amazon.com Inc. is legendary for trying to know everything about its customers.
When it came to its entertainment unit and the executive in
charge there, though, the company appears to have fallen
down on the job.
By Joe Flint,
Ben Fritz
and Laura Stevens
Amazon Studios Chairman
Roy Price abruptly resigned in
mid-October after details
emerged publicly of an alleged
incident of sexual harassment. Since then, Amazon
has made a series of management changes at the studio to
address a range of concerns.
Three of Mr. Price’s top lieutenants have been fired or left.
Interviews with current and
former executives, as well as
with producers who have
worked with Amazon Studios,
paint a picture of alleged misconduct by Mr. Price that goes
well beyond the public allegations that appear to have
played a role in his departure.
In addition, business troubles
were allowed to fester, some
of these people said.
Mr. Price appeared inebriated at a number of professional functions, people who
worked with him said, and
Amazon executives had to
Please see STUDIO page A10
prized assets would help Disney upgrade its struggling
television business, which has
been hit by ratings troubles
and subscriber declines at networks such as Disney Channel
and ESPN. A deal would also
give Disney more content for
streaming services it plans to
launch in the next two years
and would significantly increase Disney’s exposure to
foreign markets in which Fox
has a stronger presence.
Fox wasn’t happy with the
terms Disney proposed, but is
open to the idea of selling the
assets, people familiar with
the matter said. Fox for years
hasn’t been viewed on Wall
Street or in the media industry as an acquisition target because it was run by Mr. MurPlease see DISNEY page A8
Century Fox focused on sports,
news and broadcast TV.
The talks, first reported by
CNBC, ran into an impasse
over price and other key terms
and have cooled substantially,
though they could be restarted, one of the people said.
Traditional media companies are racing to adapt to
sweeping industry changes
that threaten their business,
including the rise of streaming-media services that are siphoning away cable TV subscribers and mergers that have
given tremendous clout to a
handful of distributors such as
Comcast Corp., Charter Communications and AT&T Inc.
Fox shares rose 10% on
news of the talks, while Disney
stock was up 2%.
Acquiring some of Fox’s
Can a Ticklebox Have Fuzzywogs?
Now We May Never Know
i
i
i
Cash-strapped dialect dictionary shuts
down, despite thriving U.S. regional lingo
BY DOUGLAS BELKIN
Executives now wonder if the company’s
hands-off approach gave Roy Price leeway
Intel and AMD team up to
offer laptop chip...................... B4
Heard on the Street:
Broadcom’s big gamble...... B13
Disney Approached Fox
For Entertainment Assets
By Ben Fritz,
Joe Flint
and Keach Hagey
11.0
6800
6600
ground check and was allowed
to purchase guns.
Kelley was able to enter the
First Baptist Church of Sutherland Springs on Sunday armed
with an assault-style rifle. Clad
in black, a ballistic vest and a
skeleton mask, he was angry
with his mother-in-law, authorities said. He fired on the
small congregation, wiping out
families at worship together,
including a pregnant mother
and her children. His youngest
victim was 18 months old; the
oldest 77.
Kelley’s
mother-in-law
Walt Disney Co. recently
held talks to purchase a large
chunk of 21st Century Fox’s entertainment businesses, people
close to the discussions said,
signaling that Disney is serious
about bolstering its laggard TV
12.0
7200
Russian-backed support
for Trump on social media
began much earlier than previously known, a new analysis of Twitter data shows. A5
A House panel began considering the GOP tax plan,
but rifts over deductions,
child tax credits and deficits
could force changes. A4
YEN 113.71
Broadcom
Bid Marks
Upheaval
In Chips
What’s
News
Oil prices surged to
more than two-year highs
on rising tensions in the
Mideast. U.S. crude rose
3.1% to $57.35 a barrel. B1
Rallying energy shares
lifted U.S. stocks to new records. The Dow rose 9.23
points to 23548.42. B13
EURO $1.1610
LINK BETWEEN
SLEEP, ADHD
DRAWS FOCUS
LIFE & ARTS, A12
BANKS’ CRISIS
WARRANTS
PAY OFF
BUSINESS & FINANCE, B1
It begins with “aa” (rough
lava in Hawaii) and moves
After 55 years, 60,000 words steadily through “fuzzywog” (a
and at least $25 million in re- roll of dust under the furniture
search grants, the Dictionary of in Wisconsin) and “rap jacket”
American Regional English has (a contest of endurance in
rung the knell, sugared off, fin- which people beat one another
ished out the row.
with switches in the South).
The reason: the
For 15 years, the
small tribe of lexiproject’s
motto
cographers ran
was “On to Z.”
out of cash. No
When it finally got
more chink, boothere in 2012 with
dle or do-re-mi.
“zippy stick” (a
University of
cricket in Ohio),
Wisconsin English
“zune” (a go-getter
Professor Frederic
in Georgia) and
Cassidy launched
zydeco (a music
Shopping cart
the project in
style in Louisiana),
or buggy?
1962. Lauded as
federal grants and
“the greatest American lexico- private gifts began to dry up.
graphical project of the latter In 2013, it launched a webhalf of 20th century” by the based version.
American Dialect Society, it
“People were happy to help
aimed to capture the nation’s us get to Z, but once we did,
regional words, pronunciation there was little or no incentive
Please see WORDS page A10
and syntax.
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 | Tuesday, November 7, 2017
* ****
THE WALL STREET JOURNAL.
LOUIS DELUCA/THE DALLAS MORNING NEWS/ASSOCIATED PRESS
THE TEXAS CHURCH SHOOTING
Irene and Kenneth Hernandez and their daughter Miranda said a prayer Monday in front of crosses placed in a field in Sutherland Springs, Texas, to honor the victims of Sunday’s mass shooting.
Families Left With Unspeakable Losses
SUTHERLAND
SPRINGS,
Texas—At 18 months old, Noah
Holcombe was the youngest of
the 26 people shot to death in
the First Baptist Church here
Sunday. Her father, Marc Daniel
Holcombe, died with her.
So did her grandparents,
By Alejandro Lazo,
Nour Malas and
Tawnell D. Hobbs
Karla and Bryan Holcombe. So
did Noah’s aunt, Crystal Holcombe, who was pregnant, and
her three children from a previous marriage, Emily, Megan and
Greg Hill, friends and family
say.
The people of Sutherland
Springs knew the Holcombes as
a family who raised goats, made
cheese at home and loved to
bake together. In one cruel mo-
ATTACK
Continued from Page One
tin, a spokesman for the Texas
Department of Public Safety.
His car ran off the road, and
police found him dead inside.
Mr. Martin said the shooter
died from a gunshot wound to
the head consistent with a
self-inflicted wound. He also
sustained two wounds from
the neighbor, in his leg and
torso.
Authorities are still piecing
together the motive. Leading
up to the shooting, Kelley sent
threatening text messages to
his mother-in-law, Michelle
Shields, in what authorities
called a “domestic situation
going on with the family.”
Family strife was a recurring theme in Kelley’s life in
recent years.
Kelley married Tessa Loge
in April 2011 in Comal County,
Texas, a few days before he
started as a traffic-management apprentice at Holloman
Air Force Base in New Mexico,
according to county clerk and
military records. He was 20
and she 18, according to state
records. His ex-wife couldn’t
be reached for comment.
A year and a half later, in
October 2012, his then-wife
filed for divorce in New Mexico, according to court records.
In 2013, Kelley was convicted in a general court-martial on two counts of domestic
assault on his spouse and
child. The military sentenced
the then-airman first class to
one year in a military jail, a
demotion to airman basic and
a bad-conduct discharge.
He pleaded guilty to two
specifications against his wife,
according to the court-martial.
ment, eight people from that
one family were gone.
Somehow, Crystal’s husband,
John Holcombe, who led Sunday school prayer groups, survived the carnage. The town
and the families of 18 others
killed and 20 others wounded
are left to pick up the pieces
from a shattered Sunday in
their church sanctuary.
“That church was about all
we had in Sutherland Springs,”
said a family member via text
message. John Holcombe “just
lost everyone in his family that
was there with him—only one
daughter survived,” the family
member said. He “watched his
parents get shot to death, too.”
“They are wonderful, wonderful people, the salt of the
earth,” D’Ann Shippty, 49 years
old, of Victoria, Texas, said of
the Holcombe family she has
known for decades. She said
Bryan and Karla Holcombe were
high school sweethearts and
their world revolved around
their devotion to church.
“Clearly, they maintained their
faith. That is the core of who
they are.”
In one cruel moment,
eight people from one
Sutherland Springs
family were gone.
Freeman Martin, a spokesman for the Texas Department
of Public Safety, said Monday
that all of the victims’ bodies
had been removed from the
church but that officials
Shooting in Close Quarters
The small First Baptist Church
of Sutherland Springs, Texas, is
a one-story building with a
low-pitched roof that the
church has occupied
since 1949.
Pu
Pulpit
N
Exit door
Front door
Devin Patrick Kelley
started firing outside the
church on Sunday during
services, then entered
and kept shooting.
Note: Drawing is schematic
Source: Staff reports
Over the period of a year, he
was accused of striking, choking and kicking her. He also
pleaded guilty to striking a
child on the head and body
with force, “likely to produce
death or grievous bodily
harm.”
Kelley appealed the courtmartial, but it was upheld on
March 10, 2014, according to
court documents.
Kelley purchased one gun in
2016 and another this year at
two different Academy Sports
+ Outdoors shops in San Antonio, according to a spokeswoman for the retailer.
In each instance, Kelley’s request to purchase the guns
sailed through the FBI’s national background check system, known as NICS, according
to the FBI.
Kelley would likely be disqualified from possessing a
weapon under a 1996 amend-
situation,” another relative said.
Mrs. Ward loved her children
“more than life,” said Isabelle
Sanchez, who met Mrs. Ward
over Facebook. Mrs. Ward was
trying to get together a group
of women to help the elderly in
the community clean their
yards free of charge, she said.
“She was excited and overwhelmed from the number of
responses she received,” Ms.
Sanchez said.
Rihanna Garza, the eldest of
Mrs. Ward’s children, survived
the shooting by rolling under a
pew. Her 5-year-old stepbrother, Ryland Ward, survived
multiple shots to different areas
of his body, according to the
relative.
Ryland was in his fourth or
fifth surgery Monday afternoon
at a hospital where relatives
and friends have gathered since
Sunday night, the relative said.
“It’s a lot to take in,” said
Mr. Lookingbill, who lives in a
nearby Texas city and added he
was too distraught to say more.
Dr. Brian Eastridge, chief of
trauma and emergency surgery
at University Hospital in San
Antonio, said the hospital received nine patients from Sunday’s church shooting. Four of
those patients were children
and five were adults. One of the
children died as did two of
those adults.
The child who died was 8
years old and had been shot
multiple times, including an injury to a blood vessel in the abdomen, Dr. Eastridge said. “The
efforts to save that child were
heroic,” he said. “Seeing an injured kid, particularly when it’s
an injured child in your community, it’s gut wrenching.”
SUTHERLAND SPRINGS,
Texas—The First Baptist Church
of Sutherland Springs has long
been the social and spiritual
hub of this town. Tucked a
half-block from U.S. Highway
87, the church—along with two
convenience stores, the post office and the Dollar General—
was home to what bustle there
is in this once-anonymous dot
on a map 35 miles southeast
of San Antonio.
The church, which was established in 1926, dates back to
the town’s glory days, when it
was a resort destination dotted
with mineral springs, said Richard B. McCaslin, a history pro-
fessor at the University of
North Texas who wrote a book
about Sutherland Springs. It is
housed in the same one-story
building, with a low-pitched
metal roof, that it has occupied
since 1949, according to a history of Sutherland Springs.
“This man came and shattered one of the last symbols
that there was ever a town of
Sutherland Springs or that the
town was hanging on,” Mr. McCaslin said.
These days, about 50 people showed up for services every Sunday.
“When I heard, I thought immediately, ‘That’s the whole
church,’ ” said Mitch Kolenovsky,
a field ministry strategist for the
Southern Baptists of Texas Convention, who had occasionally
attended and preached there.
Residents said it is known
as an inclusive place, where
anyone who dropped by for Bible study on Thursday night
was welcome, and could help
themselves to free dinner. Last
week, on Halloween, the congregation threw a fall festival,
complete with hay rides and
ring-toss games with 2-liter
bottles of soda as prizes.
Nick Uhlig, a 34-year-old oilfield worker who often attends
the church, described its message as, “Come to God and love
everybody.”
The church is part of the
theologically conservative
Southern Baptists of Texas
Convention, which has a focus
on parishioners personally accepting Christ as their savior.
—Erin Ailworth
and Ian Lovett
across the services into how
the U.S. military ensures such
cases reach NICS.
Federally licensed firearm
dealers must check the credentials of potential gun buyers
through the NICS system, a
clearinghouse of millions of
criminal history records.
States and the federal government populate the NICS
system with periodic updates
on criminal convictions. Those
convicted of violent crimes,
like murder, rape or assault
are under federal law banned
from purchasing guns.
Altogether, Kelley purchased weapons in 2014, 2015,
2016 and 2017, records show.
Kelley bought a total of four
firearms in those years—two
in Colorado and two in Texas,
records show.
Three weapons were recovered after the shooting, according to Fred Milanowski,
special agent in charge of the
Houston ATF. One was a Ruger
556 rifle recovered at the
scene of the church. Two
handguns were found in his
vehicle—a Glock 9mm and a
Ruger 22.
In April 2014, a month before he left the Air Force for
good, Kelley was married
again to Danielle Shields in
Comal County, according to
county documents. Ms. Shields
was 19, Kelley was 23.
On her Facebook page,
which lists her work as a
singer and teacher, Ms. Shields
said she studied at Texas A&M
University in Kingsville—
where Kelley once volunteered
at a Baptist church.
That same year, he volunteered one night as a helper
during the 2014 Vacation Bible
School at First Baptist Church
in Kingsville, according to the
church and his LinkedIn page.
“He was not a member of
the First Baptist Church of
Kingsville, nor did he serve in
any other capacity,” the church
said in a statement.
For a time, after he married, Kelley briefly lived in Colorado. By August 2014, Kelley
was in trouble again. He was
charged with one count of animal cruelty involving a Siberian husky in El Paso County,
Colo., according to a court official. He was given a deferred
sentence, and the misdemeanor was dismissed after 18
months, the court official said.
Kelley appears to have recently been living in New
Braunfels with his parents, according to public records.
The Kelleys couldn’t be
reached for comment.
—Nancy A. Youssef,
Lynn Cook, Jim Oberman
and Lisa Schwartz
contributed to this article.
A Town’s Spiritual
And Social Hub
Exit door
Typically
50 people
attend
couldn’t yet release their names.
He said law enforcement had
recovered hundreds of shell casings and 15 30-round clips from
the church, all of them emptied.
Other victims included 30year-old Joann Ward and her
daughters Brooke, 5, and Emily
Garza, 7, according to the
woman’s brother, Paul Lookingbill. The children are two of
four in the family of Mrs. Ward
and her husband, Chris. The
couple celebrated their sixth
wedding anniversary this weekend. On Sunday, Mrs. Ward took
their four children to church—
as they did most Sundays—but
only two of them made it out of
the service alive.
Emily was taken to a hospital
and died of her injuries, a relative said. Brooke died inside the
church. Mr. Ward is “doing as
well as expected in this kind of
THE WALL STREET JOURNAL.
ment to the Federal Gun Control Act that restricts guns
from anyone convicted of a
crime of domestic violence, according to Eric Carpenter, a
former Army prosecutor and
defense counsel. The gun law
applies to military personnel
convicted through a courtmartial.
The Department of Defense
is supposed to feed court-martial information into the NICS
database, which is then used
to keep individuals with certain criminal histories or mental health problems from purchasing firearms.
But the U.S. military hadn’t
submitted Kelley’s name to
NICS, according to a review
conducted Monday, an administration official said. The reason for the lapse wasn’t immediately clear.
The Defense Department is
expected to announce a review
CORRECTIONS AMPLIFICATIONS
The first names of Karla and
Bryan Holcombe were misspelled
as Carla and Brian in a Page One
article Monday about the mass
shooting at a church in Texas.
Also, Ian Lovett contributed to
the article’s reporting. Some editions Monday incorrectly said
Ian Talley was a contributor.
Investor Jeremy Grantham
says both emerging and developed markets outside the U.S.
probably will deliver better re-
turns than stocks of the largest,
most profitable U.S. companies.
The word developed was incorrectly given as developing in the
Monthly Monitor column in
Monday’s Investing in Funds &
ETFs report.
Donald Ellenberger, co-manager of Federated Total Return
Bond Fund, said he doesn’t think
yield spreads, or difference between corporate bond and U.S.
Treasury bond yields, “will
tighten much.” The word much
was incorrectly omitted from Mr.
Ellenberger’s quotation and the
word Bond was omitted from the
fund’s name in an article about
bond funds in the Investing in
Funds & ETFs report on Monday.
Sayfullo Saipov, the man accused of killing eight people and
injuring at least a dozen others
last week by driving a rented
truck down a New York City bike
path, once lived in Cuyahoga
THE WALL STREET JOURNAL
Falls, Ohio. A Page One article
Saturday about him in one instance incorrectly referred to
Cuyahoga County.
A Park City luxury home featured Friday in Mansion’s Relative Values article is at the Park
City Mountain Resort. In some
editions, its former name, Canyons Resort, was used and was
misspelled as Canyon’s. In other
editions, it was misidentified as
Park City Resort.
Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL.
All Eyes on Governor Races
ERICA YOON/THE ROANOKE TIMES/ASSOCIATED PRESS (PHOTOS)
In New Jersey and
Virginia, parties look
for clues to next year’s
midterm elections
BY DANTE CHINNI
Virginia
This is the race that gives
Republicans
their
best
chance for a win. Many polls
show Democrat Ralph Northam
with a slight edge, but Republican Ed Gillespie’s numbers
have climbed.
Fairfax County: Democrats
likely will win here, and by a
lot. The question is how many
votes come from this suburban
county near Washington,
D.C. Higher turnout is likely to
be a good sign for Democrats.
In 2009, when Republican
Republicans might have their best chance in Virginia, where GOP
candidate Ed Gillespie, left, faces Democrat Ralph Northam.
Bob McDonnell won the governor’s mansion, the county produced about 273,000 votes.
When Democrat Terry McAuliffe won four years later, more
than 306,000 gubernatorial
votes came from Fairfax.
The vote is unlikely to increase by that much this year.
But if it’s up by an additional
10,000 votes, with the Democrat winning 58% to 60% of
them, that would be a sign that
upper-income, suburban Democrats are revved up—a good
sign for Mr. Northam.
Loudoun County: This
county on the outer edge of
the Washington suburbs may
be the one to watch for Mr.
Gillespie’s prospects. In his unsuccessful 2014 Senate race, he
narrowly won Loudoun. If he
wins here again Tuesday night,
the Gillespie team may start
preparing for victory.
A win here probably won’t
come easily. Loudoun’s population growth is high—up 24%
since 2010—and the influx of
people could be creating a
more Democratic electorate.
City of Richmond: The capital is also a good place to
measure the African-American
vote in Virginia, as about half
the city’s population is black.
The number of votes cast in
Richmond can swing substantially. In the 2005 election, the
city produced 51,000 votes. In
2009, only 45,000. But in 2013,
it produced 58,000 votes.
Democrats won the city in
every election. But those differences in turnout were important to the state outcome.
Virginia Beach: The Tidewater region traditionally favors Republicans, but Mr.
© Verdura. All rights reserved.
U.S. NEWS
Tuesday’s
gubernatorial
races in Virginia and New Jersey are the first big, statewide
elections since Donald Trump
won the presidency. Both parties will be looking at the results for signals about the
broader political landscape
ahead of next year’s elections
for the House and Senate.
For Republicans, a victory in
Virginia would show that the
party has power in a state that
backed Democrats in the past
three
presidential
elections. Democrats, having lost
several special House elections
this year, want to show that
they can stay on top in Virginia
and gain ground in New Jersey.
As the returns come in, the
cities and counties below will
give clues as to how these
races might turn out.
Tuesday, November 7, 2017 | A3
* *
Northam is from this area. His
career as an Army doctor may
carry weight with the area’s
most important employer, the
military. That makes the vote
margin important to watch:
The GOP may win, but the
question will be by how much.
New Jersey
By most measures, this race
looks to be a walk for Democratic diplomat Phil Murphy
over Lt. Gov. Kim Guadagno.
Not a single poll in the Real
Clear Politics average has the
race in single digits.
A big reason for this is current GOP Gov. Chris Christie,
who never recovered from the
Bridgegate scandal.
Middlesex and Somerset
Counties: These largely suburban counties between Trenton
and Newark went for Mr.
Christie twice, in 2009 and
2013. But they both also went
for Hillary Clinton in 2016.
These counties have diverse
populations with high educational attainment, characteristics that signal Democratic
strength. If Mrs. Guadagno
wins here, it’s a sign she may
do better than expected.
Essex, Union and Camden
Counties: These counties on
the east and west borders of
the state all lean Democratic
and have populations that are
20% or more African-American. They will offer a sense of
black turnout in the state.
Salem and Gloucester
Counties: These counties will
offer a measure of turnout
among Mr. Trump’s base in the
state. Both supported Mr.
Christie twice, and both
backed Mr. Trump in 2016.
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Yellow gol d , $18 ,0 0 0 • White or rose gol d , $18 ,950
74 5 F I F T H AV E N U E , 12 T H F LO O R
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Original gouache by Duke Fulco di Verdura
Northeast States Bet on Gambling
BY JON KAMP
AND SCOTT CALVERT
The proliferation of legalized gambling in the Northeast
is showing no signs of abating
with states and developers
continuing to push more casinos, in some cases to help
fund state budgets and ward
off competition.
In Maine on Tuesday, voters
will decide via a ballot measure whether to create the
state’s third casino.
In Pennsylvania, which already has the second-biggest
gambling market in the U.S. after Nevada, the governor
signed a bill last week that will
significantly expand ways the
Keystone State residents can
wager. The bill allows for online gambling, new machines
at airports and truck stops,
and up to 10 new satellite casinos with as many as 750 slot
machines and 30 tables. “Pennsylvania really went for broke
on this one,” said Joe Weinert,
executive vice president at
Spectrum Gaming Group, an
Leveling Off
Pennsylvania’s gambling revenue
flowing to various state and
local entities
$1.75 billion
1.50
1.25
1.00
0.75
0.50
0.25
0
2006 ’08 ’10
’12
’14
’16
Note: 2017 figures through Oct. 31
Source: Pennsylvania Gaming Control Board
THE WALL STREET JOURNAL.
industry consultant. “Pennsylvania’s action is going to cause
a lot of legislators’ eyes in
other states to pop open.”
The region’s older casino
markets in states such as Connecticut, New Jersey and Delaware have reported declining
revenue from casino taxes, due
to rising competition from
neighboring states, such as
New York and Pennsylvania.
The response, typically, has
been to approve yet-more ways
to gamble as a way to keep the
money flowing and fend off
cross-border competition.
Earlier this year in cashstrapped Connecticut, legislators passed a law allowing the
tribes behind the state’s two
existing casinos to open a third.
That was done in part to defend against an expected revenue hit from an MGM Resorts
International casino under construction in Springfield, Mass.
Standard & Poor’s analysts
said the Northeast’s casino
boom could yield short-term
gains, but with potential longterm credit risks. Atlantic City,
N.J., which once held an East
Coast casino monopoly, remains a prime example of what
competition can do. The New
Jersey gambling market produced revenue last year of
roughly $2.5 billion, a 50% drop
from a decade earlier, and five
casinos have closed since 2014.
Revenue flowing to Pennsylvania has leveled off for the
last several years and neighboring states—Maryland, Ohio and
New York—have rapidly built
up their own gambling markets.
New Jersey and Delaware have
each added internet gambling.
In Maine, the developer behind Tuesday’s controversial
ballot measure to license the
state’s third casino has pitched
the proposal as a way to keep
gambling dollars from flowing
south to a large casino rising
just outside Boston.
Republican Gov. Paul LePage has opposed the casino
plan, saying in a recent radio
address that he believes the
venue would saturate the market without helping the state.
On Friday, a Maine ethics
commission
imposed
a
$500,000 fine on several committees that backed the casino
measure for failing to disclose
sources of millions of dollars
in funding, including a company co-owned by developer
Shawn Scott.
CLASSIMA
Collection
Starting at
$990
Styles for Him & Her / Free Engraving
www.baume-et-mercier.com
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A4 | Tuesday, November 7, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Trump Trip Is Last Best Shot on North Korea
CAPITAL JOURNAL
By Gerald F. Seib
already be too late to fully reverse the nuclear ambitions
of its 33-year-old leader, Kim
Jong Un. But if those ambitions are to be reined in at
all, these three men are the
only ones who can accomplish
that, and now may be the last
time to do so. The stakes, in
short, are very high.
President Donald Trump
will meet this week with the
two other most powerful men
in the world, the leaders of
China and Russia. There will
be much to discuss, but far
and away the most important
item is this:
Can they
together stop
a man half
their age, who
leads a country smaller
than Mississippi, with a per
capita gross domestic product
that ranks just below that of
Guinea-Bissau, from disrupting the world order on which
their prosperity depends?
That other country is, of
course, North Korea. It may
n meeting Chinese President Xi Jinping and Russian President Vladimir
Putin at separate stops on his
current Asian tour, Mr.
Trump will be seeing leaders
at the top of their powers.
The 64-year-old Mr. Xi just
finished a Communist Party
congress in which he consolidated power, marginalized
potential rivals and fostered a
cult of personality unlike any
seen since Mao Zedong. The
65-year-old Mr. Putin has
been either president or
prime minister of Russia
since 2000, and is about to
announce that he’ll seek another six-year term, which he
doubtless will win.
Both may be on their way
to being leaders for life.
I
They feel few constraints at
home that limit what they
can do abroad.
Moreover, China and Russia bear as much responsibility as any nation for the
North Korean nuclear and
missile threat. Both have
provided military help over
the years, and have been
Pyongyang’s trading partners. The Central Intelligence Agency estimates that
North Korea sends 85% of its
exports to China, and receives 90% of its imports
from there. And when China
began squeezing down its oil
exports to North Korea recently, Russia stepped up to
help fill the gap.
So the 71-year-old Mr.
Trump this week will be seeing the elder statesmen with
the power to do something
about North Korea. But what
is that something?
Mr. Trump’s strategy appears to be to scare the
world into believing he is capable of doing just about
anything to stop North Korea, including a military invasion, while also helping
put into place an onerous set
of United Nations economic
sanctions designed to exert a
much more painful economic
squeeze on Mr. Kim.
It may be working, to an
extent. China appears, perhaps for the first time, to be
truly clamping down on trade
with North Korea to increase
the economic price Mr. Kim
The danger now is
that North Korea
turns to its friends in
Russia for relief.
pays for his nuclear brinkmanship. Certainly China has
ample reasons to do so. Mr.
Xi has expansive visions of
spreading China’s economic
primacy across Asia with investments in infrastructure
and friendships, and a Korean
crisis could lay waste to
much of that dream.
The danger now is that
North Korea turns to its
friends in Russia for relief. “The more China squeezes
North Korea, the more potential there is that the North Koreans turn toward Russia,”
says Stephen Hadley, national
security adviser for President
George W. Bush. “I don’t think
[Russia and the Trump administration] are on the
same page at this point, and
that is why I think it is important for Trump to see
both Xi and Putin.”
S
o let’s say this week’s
talks produce agreement on exerting more
real and sustained economic
pressure on North Korea.
What’s the broader goal?
So far, the main, joint Chinese and Russian proposal
has been an unhelpful “freeze
for freeze” plan, in which
North Korea would freeze its
nuclear program in return for
the U.S. and South Korea
freezing any joint military exercises. That proposal seems
to equate world-defying nuclear misbehavior with routine military exercises conducted by longtime allies.
Tax Overhaul Faces Significant Obstacles
BY RICHARD RUBIN
AND SIOBHAN HUGHES
WASHINGTON—A House
committee began considering
a bill that would reduce taxes
by $1.4 trillion over 10 years,
but disagreements over key
pieces of the measure could
force the GOP to make changes
and slow down plans to pass it
by year’s end.
House Republicans are at
odds over plans to eliminate
deductions for state and local
taxes. Senate Republicans disagree on child tax credits and
whether to accept significantly
bigger budget deficits. Narrow
margins in both chambers
leave the party little room to
maneuver.
Here’s a look at the most
significant fault lines:
The tax breaks for mortgage interest, state and local
taxes and medical expenses
are among the most popular in
the tax code, and the House
plan hits all of them.
State and local income and
sales taxes and medical costs
would no longer be deductible.
Property-tax deductions would
be capped at $10,000. The
mortgage-interest deduction
would no longer apply to interest
on
debt
above
$500,000, home-equity loans,
or second homes.
The homeownership breaks
have powerful defenders in
real-estate agents and home
builders. And lawmakers have
been hearing from the influential AARP about losing medical
A stack of the current income-tax regulations sits on the dais during Monday’s House committee markup of the GOP tax plan.
expense deductions.
The changes to the state
and local tax breaks will cost
Republicans at least several
House votes from New York
and New Jersey.
Child tax credit
The House plan bumps the
per-child credit from $1,000 to
$1,600 and moves it up the income scale. The credit would
start phasing out for individu-
als at $115,000 and married
couples at $230,000, up from
$75,000 and $110,000 today.
For many families, that is
enough to offset the loss of the
personal exemption, which subtracts more than $4,000 from
taxable income for filers, their
spouses and dependents. But
the credits expire over time,
which could leave many households worse off by 2027 than if
Congress had done nothing.
Another issue is that the
credit might not be big enough
in the Senate. Sens. Marco Rubio (R., Fla.) and Mike Lee (R.,
Utah) want a credit of $1,800
to $2,000 per child.
Debt and deficits
Fiscal constraints are another barrier. Some lawmakers
don’t want to increase deficits.
Republicans have set a cap
on the size of the tax cuts over
the first decade at $1.5 trillion.
That constraint means they either need to find revenue-raising provisions or set tax cuts
to start later than 2018 or be
set to expire.
The bill also can’t increase
deficits at all beyond those
first 10 years. That encourages
the GOP to set tax breaks to
expire. Expirations, sunsets
and offsets are making the bill
unappealing to some.
Majority Leader Regains Sway
BY KRISTINA PETERSON
AND LOUISE RADNOFSKY
Sen. Paul’s
Absence
Poses Risk
To GOP
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WASHINGTON—Sen. Rand
Paul faces an extended absence from the Senate as he
recovers from serious injuries
he suffered on Friday after police said he was attacked at
his Kentucky home by his
longtime neighbor.
The altercation between the
two men was sparked by what
an attorney for the alleged assailant described as a “trivial”
dispute between the neighbors
of 17 years.
A protracted convalescence
away from Washington for the
Kentucky Republican could
hinder the GOP legislative
agenda just as the party’s effort to advance an ambitious
tax bill gets under way. The
party controls 52 seats in the
Senate, already a slim majority, and GOP leaders are trying
to pass the tax measure without Democratic votes.
In a statement, Mr. Paul’s
chief political strategist, Doug
Stafford, revealed that the
second-term Republican had
five rib fractures including
three displaced fractures, in
which a bone separated into
pieces and went out of alignment from its typical position.
The senator is also suffering
from lung contusions, Mr.
Stafford said.
Adviser Told
Campaign of
Moscow Visit
BY BYRON TAU
JOSHUA ROBERTS/REUTERS
WASHINGTON—When President Donald Trump hosted
leaders of a communications
company moving their headquarters from Singapore to the
U.S. in the Oval Office on Thursday, a single lawmaker was
present: House Majority Leader
Kevin McCarthy.
Mr. Trump later hosted
other Republican leaders to officially congratulate them on
the release of the House GOP
tax bill. But he celebrated early
with Mr. McCarthy.
“He’s working very hard on
tax cuts, in fact, so hard, I’m
surprised to see you here,” Mr.
Trump said, praising the California Republican for zipping
over from a “great press conference.”
Two years ago, Mr. McCarthy’s political career appeared
to be flatlining. In the wake of a
television interview in which he
Levenger.com
Trump urges Japan to buy
U.S. military equipment....... A6
BY BYRON TAU
TOM WILLIAMS/CQ/ZUMA PRESS
Individual Deductions
Technically, at least, the
U.S., China and Russia share
the same long-term goal,
which is a Korean Peninsula
without nuclear weapons. It’s
increasingly questionable
whether that is realistic. Still,
let’s assume it is. There’s only
one way to start down the
path toward it: diplomatic engagement to discuss the goal.
Though it’s little appreciated, the Trump administration has repeatedly signaled
its willingness to talk with
North Korea. Mr. Trump did
so again over the weekend,
reiterating that he’d actually
be willing to meet Mr. Kim
personally at some point.
North Korea is refusing. It
apparently wants to wait until it has proven it has a nuclear warhead that can fit on
a missile capable of reaching, say, Chicago, before
agreeing to talk. That’s the
obstacle to diplomacy—and
the one that Messrs. Trump,
Xi and Putin can try this
week to knock down.
House Majority Leader Kevin McCarthy on Capitol Hill last week
implied political motives in the
House hearings into an attack
on a U.S. compound in Libya,
Mr. McCarthy pulled out of the
race to succeed Rep. John Boehner as speaker.
These days, Mr. McCarthy
has regained his influence,
buoyed by what many Republicans describe as the strongest
personal connection with Mr.
Trump and his top advisers of
any GOP leader.
And while the GOP tax plan
unveiled Thursday was crafted
by House Speaker Paul Ryan
(R., Wis.) and Ways and Means
Committee Chairman Kevin
Brady (R., Texas), its passage
will depend in large part on Mr.
McCarthy.
“We lean on Kevin constantly for understanding
where his conference is,” including on the coming tax-overhaul debate, as well as an immi-
gration policy fight to come,
said Marc Short, the White
House director of legislative affairs.
The six-term congressman
has carved out a niche on Capitol Hill by capitalizing on his interpersonal skills. His ability to
take the temperature of the
House GOP has helped defuse
some of its tensest moments,
even if the group is still searching for a major legislative win
this year. While he has never
been considered a policy heavyweight, the less-scrutinized,
second-in-command post is
turning out to be the best position to maximize his other
strengths.
“He feels to some degree
empowered and freed by his determination not to run for
speaker,” said House Minority
Whip Steny Hoyer (D., Md.), his
Democratic counterpart.
WASHINGTON—President
Donald Trump’s campaign
team was briefed before and
after foreign-policy adviser
Carter Page’s trip to Moscow
last year, with Mr. Page saying
upon his return that he had
gotten “incredible insights and
outreach” from senior members of Russian President
Vladimir Putin’s administration, newly released testimony
reveals.
Mr. Page, an unpaid adviser
to the Trump campaign, acknowledged under questioning
last Thursday in front of the
House Permanent Select Intelligence Committee that he had
met with Russian Deputy Prime
Minister Arkady Dvorkovich
last July at an event in Moscow.
In a brief conversation, Mr.
Dvorkovich had “expressed
strong support for Mr. Trump
and a desire to work together
towards devising better solutions in response to the vast
range of current international
problems,” according to a
memo that Mr. Page sent to
campaign officials following
his trip.
The White House has denied any wrongdoing, and
Moscow has said it didn’t interfere in the 2016 presidential campaign or collude with
Trump campaign officials.
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.
Tuesday, November 7, 2017 | A5
* *
U.S. NEWS
BY BYRON TAU
WASHINGTON—Former FBI
Director James Comey’s early
draft of a statement concerning allegations that Hillary
Clinton and her top aides mishandled classified information
called the former secretary of
state’s actions “grossly negligent,” according to records described Monday in a letter
from a top-ranking Republican
senator.
According to documents received by Senate Judiciary
Chairman Chuck Grassley (R.,
Iowa), that language was included twice in a draft of Mr.
Comey’s statement in May
2016. His final statement, delivered on July 5, 2016, used
the phrase “extremely careless” in describing Mrs. Clinton’s use of a private server.
The phrase “gross negligence” appears in a federal
law governing the handling of
classified information as the
standard that makes the loss
or removal of such information a federal crime. In the initial drafts, Mr. Comey still recommended against prosecution.
“There is evidence to support a conclusion that Secretary Clinton, and others, used
the private email server in a
manner that was grossly negligent with respect to the handling of classified material,”
Mr. Comey wrote in one section of the draft.
Mr. Grassley received the
records from the Federal Bureau of Investigation last
week.
He made the revelations
public in a new letter to the
FBI Monday, seeking additional information from the
bureau about who made the
changes and when. His office
declined to make the underlying documents from the FBI
available.
DEAL
Continued from Page One
ing to some analysts. Under
typical circumstances, unfriendly bids like this are difficult to pull off; given the sheer
size and complexity of Qualcomm, this one could be especially challenging, analysts
said Monday.
Broadcom’s preference is to
strike a friendly deal, but if it
fails to do so, it would consider nominating Qualcomm
directors who may be more
amenable to a transaction, a
person familiar with the matter said. The nomination deadline is Dec. 8 and the annual
meeting at which the director
vote would take place is likely
be around March.
Broadcom offered $70 a
share for Qualcomm, representing a 28% premium from
its closing price on Thursday—
before news reports on the expected approach.
Qualcomm shares ended
trading Monday up 1.2% to
$62.52,
while
Broadcom
shares were 1.4% higher at
$277.52.
Mr. Tan said he has been
talking with Qualcomm for
over a year about a possible
tie-up. “Our strategy has been
consistent,” Mr. Tan said in an
interview. “When a business is
No. 1 in technology and No. 1 in
market position, we acquire it
and put it on our Broadcom
platform and grow through
that strategy. Qualcomm has a
very large sustainable franchise
that meets those criteria.”
Should the deal be completed, Broadcom would take
on Qualcomm’s leadership in
developing the next wave of
cellular technology, known as
5G, which is expected to roll
out over the coming two years.
That could give Broadcom a
new growth engine, as 5G is expected to dramatically accelerate the speed and responsiveness of cellular communications
necessary for applications like
self-driving cars.
Broadcom was formed
when Avago Technologies Ltd.
bought the former Broadcom
in 2015 for $39 billion and
kept the name, and Mr. Tan
has continued growing by acquisition. The company sells a
diverse line of equipment for
networking and communications. Its products include
Russians Supported Trump Early
Tweet history shows
social-media backing
started months before
U.S officials have said
BY MARK MAREMONT
AND ROB BARRY
Kremlin-backed support for
Donald Trump’s candidacy
over social media began much
earlier than previously known,
a new analysis of Twitter data
shows.
Russian Twitter accounts
posing as Americans began
lavishing praise on Mr. Trump
and attacking his rivals within
weeks after he announced his
bid for the presidency in June
2015, according to the analysis
by The Wall Street Journal.
A U.S. intelligence assessment released this year concluded the Kremlin developed
a “clear preference” for Mr.
Trump over his Democratic
opponent Hillary Clinton, but
cited December 2015 as the
earliest suspected time that
Russian social-media accounts
advocated for Mr. Trump.
The earlier starting point of
pro-Trump tweets highlights
the breadth of the Russian effort to manipulate social media during the 2016 election.
Kremlin-paid actors sowed division among Americans with
fake pages and accounts, inflammatory posts and thousands of paid ads aimed at
both liberal and conservative
audiences, according to testimony before Congress last
week.
The
Journal
analyzed
159,000 deleted tweets from
accounts that Twitter identified to congressional investigators as operated by the
Kremlin-backed Internet Research Agency.
Twitter said it has suspended all 2,752 of the accounts, which removes their
tweets from its platform. Congress released the names of
the accounts on Nov. 1, during
hearings on Russian interference in the 2016 elections.
In the three months after
Chipping In
Global semiconductor
M&A deal value
2017 $167B*
$175 billion
150
125
100
75
50
25
0
1995 2000
’05
’10
’15
*Year-to-date; Includes Broadcom's
Qualcomm bid
Source: Dealogic
THE WALL STREET JOURNAL.
chips for Wi-Fi and Bluetooth
technology that connect devices that are closer together—technologies
that
some analysts say are likely to
grow less quickly than 5G.
“People will continue to use
short-proximity wireless like
Wi-Fi and Bluetooth, but the
growth and money is clearly in
5G,” said analyst Patrick
Moorhead of Moor Insights &
Strategy.
Overall, Broadcom and Qualcomm have largely complementary product lines. But the
Broadcom would
prefer to strike a
friendly deal with
Qualcomm.
possible Broadcom takeover is
likely to face intense regulatory scrutiny, given the companies’ combined scale and the
fact that they are both leaders
in Wi-Fi and Bluetooth technology. The companies share customers including Apple Inc.,
whose iPhones and iPads include components from both
Qualcomm and Broadcom.
Qualcomm already has been
under pressure from antitrust
agencies in several jurisdictions, including the U.S. The
company has paid hefty regulatory fines in China, South
Korea and Taiwan.
Qualcomm was riding high
as recently as a year ago after
ANDREW HARRER/BLOOMBERG NEWS
Comey
Originally
Tougher
On Clinton
At a Nov. 1 hearing, the House Intelligence Committee viewed Russian-backed social-media posts.
Accounts Tweeted
During GOP Debate
Between the time Donald
Trump entered the 2016 presidential race and Election Day,
about five months later, at least
104 Russian-controlled Twitter
accounts, including many of those
with tens of thousands of followers, posted hashtags supporting
Mr. Trump, including variations of
the campaign catchphrase Make
America Great Again.
More than 90 accounts
posted negative messages
about Hillary Clinton’s health,
emails and alleged corruption.
The Russian accounts posted
only a handful of pro-Clinton
hashtags.
For the GOP debate on
Dec. 15, 2015, in Las Vegas,
dozens of the accounts livetweeted using the hashtag
#VegasGOPDebate. Many
showed a clear preference for
Mr. Trump.
“Trump is a real leader, I
believe debates will help to see
it,” six of the accounts wrote.
“Only Trump can deal with
#ISIS,” wrote @MarissaImStrong to its 413 followers.
On Election Day, the accounts warned of rigged voting
machines and called for an indictment of Mrs. Clinton.
As voting wound down
that day, @JacquelinIsBest
tweeted to its 2,100 followers:
“I can’t believe I was able to
experience our potential president speak at his very last
rally. #HillaryForPrison2016
#TrumpForPresident.”
Mr. Trump announced his candidacy on June 16, 2015, tweets
from Russian accounts reviewed by the Journal offered
far more praise for him than
criticism—by nearly a 10-to-1
ratio. At the same time, the accounts generally were hostile
to Mrs. Clinton and the early
GOP front-runner, Jeb Bush, by
equal or greater ratios.
The Journal pieced together
the deleted tweets from data
it has collected as well as that
provided to it by several researchers. The records contain
at least one tweet from more
than 2,000 of the accounts.
A Twitter Inc. spokeswoman declined to comment.
In Senate testimony last week,
a Twitter attorney said the
company takes seriously “that
the power of our service was
misused by a foreign actor for
the purpose of influencing the
U.S. presidential election,” and
said Twitter is beefing up its
efforts against such activities.
Mr. Trump, a regular user
of Twitter himself, has called
claims that the Russians manipulated the 2016 election via
social media “a hoax.”
“BOOM! DOWN GOES @jebbush,” wrote @DorothieBell,
three weeks after Mr. Trump
entered the race. The account,
claiming to be run by an
American “Conservative wife,
mother” who wanted to “take
this once great country
back!!!,” linked to a Breitbart
News article about Mr. Trump
attacking Mr. Bush for being
soft on immigration.
The numerous Russian
Twitter attacks on Mrs. Clinton during this three-month
period included a tweet comparing her treatment of the
unveiling the chip industry’s
largest-ever acquisition: a $39
billion proposed deal for NXP
Semiconductors NV. The deal
hasn’t closed yet, and Broadcom said Monday that its proposal would stand regardless
of whether Qualcomm’s proposed acquisition of NXP is
consummated under the current terms.
Since then, a string of hits
by regulators, competitors and
customers including Apple has
left the industry titan in a vulnerable position. Qualcomm’s
profit in the fiscal year that
ended Sept. 24 plummeted
57%, and its share price declined 18% in the 12 months
through Thursday’s close compared with a 58% rise in the
PHLX Semiconductor Sector
Index. That was before news
of Broadcom’s interest sent
Qualcomm shares up nearly
13% on Friday.
Funding for the deal would
come in the form of loans
from a gaggle of banks, with
additional cash from Silver
Lake Management LLC. The
private-equity firm, which already owns a stake in Broadcom, provided a commitment
letter for $5 billion in convertible debt. Silver Lake said a
substantial portion of that
capital would come in the
form of an equity investment
from its Silver Lake Partners
fund, with the remainder from
other sources.
Broadcom’s bid came days
after the Singapore-based
company announced plans to
relocate its headquarters to
the U.S., a move that could
make it easier to pursue acquisitions of U.S. targets.
Broadcom’s earlier $5.5 billion offer to buy Brocade Communication Systems, based in
San Jose, Calif., has been delayed due to a review by the
Committee on Foreign Investment in the United States,
which reviews international
deals that raise concerns
about national security.
Any deal to acquire Qualcomm would also receive close
scrutiny, experts say. “Anything that has the word semiconductor in it gets rapt attention from CFIUS,” said James
Lewis of the Center for Strategic and International Studies,
a policy think tank. “The move
to the U.S. is an effort to tamp
down CFIUS concerns.”
—Dana Cimilluca
contributed to this article.
press to Adolf Hitler’s, adding:
“Heil Hillary.”
Many political messages
were sent out word-for word
by multiple Russian-backed
accounts, often within minutes
of each other, suggesting a coordinated campaign.
Of the Russian-backed accounts that tweeted about Mr.
Trump in the summer of 2015,
at least 40 served up positive
sentiment; just one account
captured by the Journal data
expressed strong negative
opinions.
As the 2016 election
neared, the Kremlin preference for Mr. Trump became
even more pronounced. ProTrump tweets—either favoring
him or attacking his opponent—outnumbered those for
Mrs. Clinton by a 30-to-1 ratio
in the two weeks before the
election, the Journal analysis
found. There were about 236
pro-Trump or anti-Clinton
tweets captured in the Journal
data during those two weeks
compared with seven that
were pro-Clinton or antiTrump.
Much of the Russian socialmedia disinformation campaign has been linked to the
St. Petersburg-based Internet
Research Agency, a shadowy,
so-called troll farm that
spread Russian propaganda
across the Internet.
The Russian-backed Twitter
accounts were so successful at
imitating Americans that they
were frequently followed and
retweeted by prominent people, including Trump campaign insiders, and quoted in
mainstream media.
One such account, @Pamela_Moore13, which claimed
to be run by a Texan who was
“Conservative. Pro God. Anti
Racism,” amassed an impressive 70,000 followers—including retired Lt. Gen. Michael
Flynn and Fox News commentator Sean Hannity—before
being suspended by Twitter in
the purge of Russian accounts.
An attorney for Mr. Flynn
and a spokeswoman for Fox
didn’t respond to requests to
comment.
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THE WALL STREET JOURNAL.
A6 | Tuesday, November 7, 2017
WORLD NEWS
Trump Urges Japanese Military Purchases
President says deals
would raise security in
region, add jobs in U.S.;
Abe plans upgrades
TOKYO—President Donald
Trump pushed for Japan to buy
massive amounts of military
equipment from the U.S., saying
it would help the country shoot
down missiles like the pair that
nearby North Korea has fired
overhead in recent months.
“It’s a lot of jobs for us, and
a lot of safety for Japan,” Mr.
Trump said on Monday during a
press conference with Japanese
Prime Minister Shinzo Abe.
Mr. Abe, in turn, anticipated
buying more military equipment from the U.S., and mentioned plans for more-advanced
fighter jets and upgrades to
missile-defense systems. “We
believe that we must bolster
Japan’s defensive strength qualitatively and quantitatively,” he
said. “We will be buying more
from the United States.”
The two leaders spoke to reporters at the Akasaka Palace,
the site of several meetings between U.S. and Japanese leaders, as their two days together
drew to a close. The men shared
several meals and a round of
golf and held formal meetings.
They opened the press conference by lavishing praise on
one another. Mr. Abe referred
SHIZUO KAMBAYASHI/PRESS POOL/AFP/GETTY IMAGES
BY MICHAEL C. BENDER
President Donald Trump and Japanese Prime Minister Shinzo Abe, left, shared toasts at a dinner in Tokyo on Monday.
to the two countries’ “unshakable” alliance and said he “forgot how time flies” when he is
with Mr. Trump. The U.S. president referred to their “extraordinary” relationship, adding
that there has “never been such
a close relationship between
the leaders of two countries.”
Still, there were clear differences between the two, par-
ticularly on trade. While Mr.
Abe said they agreed to step
up negotiations on bilateral
trade issues, he also hinted at
his hope that the Trans-Pacific
Partnership or something like
it could be revived under U.S.
and Japanese leadership.
The TPP would have opened
Japanese agricultural markets
to the U.S. and tightened intel-
lectual property rules to benefit drug and technology companies, while attempting to
establish an economic bloc to
challenge China’s influence.
But critics worried that the
deal would have done little to
protect vulnerable U.S. industries or promote job creation.
Mr. Trump withdrew the
U.S. from the proposed multi-
national trade agreement at the
start of his presidency, and has
expressed interest in bilateral
deals in place of wider ones.
“President Trump and I will
lead the way not only on trade
between our two countries but
also in setting high standards
for trade and investment
through the Asia-Pacific region,” Mr. Abe said.
Uncertainty Dulls India’s Business Appetite
BY ANANT VIJAY KALA
NEW DELHI—India will
likely lose its title as the
fastest-expanding large economy this year, as a recent
growth spurt sputtered after
failing to spur new corporate
investment.
This was supposed to be the
year Asia’s third-largest economy could at last emerge from
China’s shadow. Instead, it is
struggling with a slowdown.
Executives say Prime Minister Narendra Modi’s heavyhanded attempts to improve
the economy in the past 12
months have sapped them of
confidence. They have been
putting off investment plans,
which is hurting growth and
dousing job creation.
Krishna Kumar Jindal, a textile company owner, used to
have 48 looms running 24
hours a day, when Mr. Modi’s
rollout of a new national tax
left customers confused and resulted in sales being slashed in
half. Now he worries whether
he can pay his loans and 150
employees.
Gross domestic product
growth slowed to a three-year
low of 5.7% in the quarter that
Weakening Growth
A slowdown in loans given by banks and falling spending of
companies have pulled down India's GDP growth to a three-year low.
Growth in
bank credit
Gross fixed capital formation
as a percentage of GDP
Quarterly GDP
growth rates
40%
40%
9%
35
35
8
30
30
25
25
20
20
15
15
10
10
5
5
0
7
6
5
4
3
2
1
0
FY1992
2000
2010
0
FY’05 ’07 ’09
’11
’13
’15
’17
Source: Reserve Bank of India (Bank credit); Ministry of Statistics and
Programme Implementation (GDP growth, gross fixed capital)
ended in June, well behind
China’s 6.9% for the period. In
the first half, India grew an
average of 5.9% while China
grew 6.9%. Last year, Indian
growth beat China’s but is
now expected to fall behind
for all of 2017.
While growth of almost 6%
is nothing to sniff at, and optimists expect growth to improve in the last quarter, it
needs growth closer to 10% to
provide good jobs for the
roughly one million people entering the workforce every
month.
Many blame Mr. Modi’s
FY’13 ’14
’15
’16
’17
’18
Note: fiscal year ends March 31
THE WALL STREET JOURNAL.
most aggressive economic adjustments: The surprise crackdown on cash late last year and
the implementation of a nationwide goods and services
tax this year. The double shock
treatment, aimed at bringing
more Indians into the tax net,
has chilled new investing by
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small and large companies and
exacerbated anemic private investment and lending.
Companies have scaled back
investing because they still
have capacity left over from
better times, economists say.
And banks aren’t making it
easy to borrow.
In the past quarter, private
and state company investment
plans fell 66% from a year earlier to a 13-year low, according
to estimates from Mumbai
think tank Centre for Monitoring Indian Economy. Indian factories are operating at only 71%
of capacity, according to latest
Reserve Bank of India data,
well below their peak of more
than 80% just five years ago.
A shoe factory owner, Rafeeque Ahmed, says he has put
expansion plans on hold until
he has more confidence about
New Delhi’s policy plans, particularly about minimum
wages. The $16 million he was
going to invest to boost his
production capacity by 20%
may now go to setting up facilities in Myanmar or Bangladesh.
“We are afraid to invest,”
because the government could
suddenly change policies and
thus our costs, he said.
The two leaders are much
closer in their views on North
Korea. Mr. Trump called North
Korea a “threat to the civilized
world,” again not ruling out
military action. “Look what
happened with very weak rhetoric over the last 25 years—
look where we are right now.”
The president called on
North Korean leader Kim Jong
Un to return Japanese citizens
his country abducted.
“It would be a tremendous
signal if Kim Jong Un would
send them back,” Mr. Trump
said. “That would be the start
of something very special.”
In 2014, during a rapprochement with Japan, North Korea
said it would set up a committee to look into the abduction
issue. But Pyongyang disbanded
the committee in 2016, blaming
Japan’s “sinister intention.”
Mr. Abe called on the international community to exert
the “maximum level of pressure” on North Korea.
“No one likes a conflict—I
don’t like it, Mr. Trump neither,” Mr. Abe said. “But North
Korea continues its provocation
against the international community. So we need to cooperate, so they change their policy.”
Mr. Trump travels to South
Korea on Tuesday as he continues a five-country Asian tour
that will also include China,
Vietnam and the Philippines.
China aircraft exports are set
for takeoff.................................... B3
Censors Were
Busy a Year
Before China
Party Meeting
BY ALYSSA ABKOWITZ
BEIJING—Online censorship
of comments about last
month’s Communist Party congress began more than a year
in advance—showing a new
level of forethought by censors, according to a new study.
The report by the University
of Toronto’s Citizen Lab, released Monday, was based on a
review of censorship on the
messaging app, WeChat, which
has more than 960 million
monthly active users and is
run by Tencent Holdings Ltd.
“It is not surprising to see a
concentrated effort to block
keywords related to the 19th
Party Congress,” said Citizen
Lab research manager Masashi
Nishihata in an email. “What
was surprising is to see keywords were being blocked
over a year prior to the Congress and the wide scope of
censorship.”
Tencent didn’t respond to
requests to comment.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | A7
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A8 | Tuesday, November 7, 2017
THE WALL STREET JOURNAL.
* *
WORLD NEWS
Saudis Fault Iran for Rebel Missile Attack
SAUDI PRESS AGENCY/ASSOCIATED PRESS; REUTERS TV/REUTERS (LEFT)
Houthis’ assault on
capital was Iranian ‘act
of military aggression’;
Tehran dismisses claim
BY ASA FITCH
A missile attack by Yemeni
rebels on the Saudi capital
Saturday could be considered
an Iranian act of war, Saudi
Arabia said, in a statement
likely to intensify tensions between the archrivals.
Saudi Arabia intercepted
the ballistic missile east of Riyadh’s main airport after it
flew more than 500 miles from
Yemen. It was fired by Houthi
rebels, who are seen by Saudi
Arabia as proxies of Iran.
The Saudi-led military coalition that has been at war
with the Houthis in Yemen for
more than 2½ years “considers this a blatant act of military aggression by the Iranian
regime and could rise to be
considered as an act of war
against the Kingdom of Saudi
Arabia,” according to a statement carried by the official
Saudi Press Agency.
Debris from the missile
showed it was made in Iran,
the statement said, adding
that the coalition “reserves its
right to respond to Iran in the
appropriate time and manner,
A video image shows Saturday’s missile launch by rebels Riyadh sees as Iran’s proxies. Lebanon’s Saad Hariri, at left with Saudi King Salman, says Iran has unsettled the region.
in accordance with international law and based on the
right of self-defense.”
Maj. Gen. Mohammad Ali
Jafari, the commander of
Iran’s Islamic Revolutionary
Guard Corps, dismissed the
claim.
“We are not basically capable of transferring missiles to
Yemen,” he said Sunday, according to the official Islamic
Republic News Agency. Houthi
missiles, he said, are homegrown.
Iran’s foreign ministry
spokesman, Bahram Ghasemi,
on Monday called Saudi accusations against Iran “unfair, irresponsible, destructive and
provocative,” according to a
state television news website.
He advised the kingdom to
stop its assault on Yemen to
pave the way for peace talks.
Iranian Foreign Minister Javad Zarif tweeted that Saudi
Arabia was bombing Yemen
and killing thousands of innocent people and spreading
famine.
The kingdom “is engaged in
wars of aggression, regional
bullying, destabilizing behav-
ior and risky provocations,” he
said. “It blames Iran for the
consequences.”
Saudi foreign minister Adel
al-Jubeir tweeted that Iranian
intervention in the region was
undermining security and repeated that Saudi Arabia had
the right to respond.
The Houthis, who in the
past have presented missiles
as domestically sourced, have
fired dozens at Saudi Arabia
since the coalition began a
campaign to oust them from
Yemen’s capital, San’a, in 2015.
The range of some, like the
“Volcano H2” the group fired
Saturday, has increased markedly in 2017, putting significant Saudi population centers
and energy infrastructure
within range.
Saudi Arabia, which controls
Yemeni airspace and oversees
shipping traffic through its
ports, said all land, sea and air
borders with the country
would be closed temporarily to
address the missile threat, although humanitarian supplies
would still be allowed in.
Tensions between Saudi
Arabia, the leading Sunni Mus-
lim power in the region, and
Iran, its main Shiite rival, have
risen in recent days. Lebanese
Prime Minister Saad Hariri, a
close Saudi ally, resigned Saturday, blaming Iran for destabilizing the region and saying
his life was under threat.
Saudi Arabia has more aggressively confronted Iran under 32-year-old Crown Prince
Mohammed bin Salman, who
orchestrated Saudi involvement in Yemen.
Global investors measure
risks of Saudi crackdown.... B1
Echoes of Putin and Xi in Kingdom’s Purge of Power Brokers
In a country with endemic
corruption, going after fat
cats has always generated
popular support, no matter
the actual reasons for the
crackdown.
Russia’s President Vladimir Putin cemented his authority in the early years of
the century by
jailing, dispossessing or
driving into
exile many of
his nation’s
oligarchs, particularly those with political
ambitions. China’s leader Xi
Jinping harnessed a wideranging anticorruption campaign launched in 2012 in a
similar fashion, eliminating
potential rivals and consolidating power for the foreseeable future.
By having much of the
kingdom’s ancien regime detained on Saturday, Saudi
Arabia’s Crown Prince Mohammed bin Salman seems to
be using the same playbook.
The 32-year-old heir to the
throne is, among other
T
his weekend’s purge,
which follows an earlier wave of arrests and
the dismissal of Prince Mohammed’s predecessor as
crown prince, former interior
minister Mohammed bin
Nayef, is unprecedented in
modern Saudi history. Those
detained include leading
business and media tycoons,
senior princes and the main
policy makers of previous
Saudi administrations.
While corruption is widespread at the top rungs of
the Saudi royal family and
business elite, the reasons
for targeting these individuals—just as was the case in
Russia’s and China’s antigraft campaigns—have more
to do with Prince Mohammed’s consolidation of
power than administering
AGENCE FRANCE-PRESSE/GETTY IMAGES
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
things, appealing to Saudi
youths who are disgusted by
decades of unpunished graft
at a time when the general
population is being asked to
accept relative austerity.
“His base are the mostly
young Saudis under 30 years
old who have seen a great
deal of turmoil, and who feel
there is a great deal of corruption and decadence,” said
Fawaz Gerges, chair of contemporary Middle East studies at the London School of
Economics. “Mohammed bin
Salman is sending a very
clear message to the kingdom’s power elites: he will
not tolerate any opposition to
his worldview.”
Crown Prince Mohammed bin Salman’s crackdown shows he ‘will
not tolerate any opposition to his worldview,’ one observer says.
justice, according to analysts
and diplomats.
“It is very selective. Right
now, there is corruption happening around him,” said Jamal Khashoggi, a prominent
Saudi commentator and former TV and newspaper executive who left the kingdom
ahead of the crackdown and
now lives in the U.S. “The
royal family used to be partners: you steal and I steal,
you take a cut and I take a
cut. Now he has ultimate
power. It’s a game-changer.”
The question now is
whether Prince Mohammed,
who is Saudi Arabia’s dayto-day ruler and the designated successor to King Salman, will be able to carry
out this campaign without
sparking an exodus by the
remaining business elites—
and without spooking foreign investors whose money
he needs for his ambitious
transformation plans.
That’s a particularly sensitive issue as Saudi Arabia
plans the initial public offering of a minority stake in its
giant state-owned oil firm,
known as Aramco. In Russia’s
case, after all, Mr. Putin’s selective crackdown on oligarchs had precisely that
chilling effect, hampering the
development of non-oil industries and denting overall
investor interest.
This crackdown played “a
vital role in helping Saudi
Arabia to realize its dream of
a happy and prosperous society,” Khalid al Mehaisen,
president of the national anticorruption commission,
which is part of the new supreme committee alongside
other government agencies,
said Monday. “This will only
be possible when we completely weed out the cancer
of corruption, which is one of
the biggest stumbling blocks
to progress.”
No charges or evidence
against the detainees have
been made public, and they
all remain in custody—many
of them in the commandeered Ritz-Carlton hotel in
Riyadh. The new supreme
committee, according to Mr.
Mehaisen, has the authority
to seize the suspects’ assets
and freeze their bank accounts.
“This weekend’s purge
demonstrates that there is no
transparent predictable rule
of law in Saudi Arabia, there
is no due process, there is no
accountable government. So
if you’re a business that cares
about the rule of law, this
should concern you,” said Tamara Cofman Wittes, a senior
fellow at the Brookings Institution and a former deputy
assistant U.S. secretary of
state for near eastern affairs.
P
rince Mohammed may
have more immediate
priorities as he seeks
the repatriation of vast fortunes that some of the detained princes and businessmen—and others not yet
touched by the purge—have
amassed overseas, said Andrew Bowen, a specialist on
Saudi Arabia at the American
Enterprise Institute, a Washington think tank.
“For Xi and Putin, there is
a lot of domestic popularity
in going after corruption, and
this is also popular with
Saudi youth,” Mr. Bowen said.
“But Mohammed bin Salman
is also facing a fiscal hole in
Saudi Arabia. A lot of these
corrupt Saudi princes who
have taken money out of the
country are easy sitting targets to bring money back into
the kingdom, regardless of
the value of the Aramco IPO.”
FROM PAGE ONE
DISNEY
Continued from Page One
doch, who it was thought
wanted to hand over the business to his sons, James and
Lachlan Murdoch. The Murdochs have a 39% voting stake
in 21st Century Fox.
Mr. Murdoch had spent the
past several years setting up
his sons to take the helm. In
2013, he split his media empire
into News Corp, owner of The
Wall Street Journal and other
publishing businesses, and 21st
Century Fox, home to the major entertainment assets.
Two years later, the elder
Mr. Murdoch stepped aside as
chief executive of 21st Century
Fox and handed the title to his
son James, while Lachlan was
named executive co-chairman
at Fox. The elder Mr. Murdoch
remains executive co-chairman.
A deal like the one contemplated with Disney would
throw into question that succession planning.
These days, the elder Mr.
Murdoch, who has spent decades building his interests in
entertainment, has much of his
attention focused on Fox News,
which would remain in the fold
of 21st Century Fox under the
deal considered with Disney,
the people say. Fox News has
been dealing with the fallout of
sexual-harassment scandals
and adjusting to a prime-time
lineup with new faces after
high-profile departures, though
it has maintained its No. 1 position in the cable-news ratings. The elder Mr. Murdoch
took the reins at Fox News last
year after longtime boss Roger
Ailes was forced out over sexual-harassment allegations,
over which the company has
paid out tens of millions of
dollars in settlements. Mr.
Ailes, who died this year, had
denied the allegations.
Fox felt that if it sold off
entertainment assets to Disney, the slimmed-down news
and sports-focused media
company that remained could
be successful, just as CBS
Corp. has been a top performer despite not being
among the largest media conglomerates, one person familiar with the situation said.
In 2014, the Murdochs attempted to purchase Time
Warner Inc., the owner of CNN,
HBO and Warner Bros. But Fox
abandoned its pursuit after
Time Warner rebuffed its advances and Fox’s stock price
declined. AT&T Inc. is now in
the process of acquiring Time
Warner, pending regulatory approval. Since the failed pursuit
of Time Warner, Fox shares
had fallen 17% before Monday’s
news as the broader market
climbed.
Under the deal that was
discussed, Disney would have
acquired Fox’s 39% stake in
U.K. pay-TV company Sky. Fox
has bid $15.5 billion to buy the
rest of Sky to help expand its
global media empire, but the
deal has been held up by the
U.K. government as it continues to review whether the acquisition would put too much
power in the hands of one media company.
The talks with Disney could
“put a question mark” over
Fox’s Sky acquisition proposal,
according to Credit Suisse analyst Omar Sheikh. One of the
people familiar with the situation said in light of the stalled
talks, the company will continue
to pursue the Sky transaction.
Disney’s TV unit, driven by
ESPN and to a lesser extent by
the Disney Channel and ABC
broadcast network, reported
an 11% drop in profit in the
nine months ended July 1. The
company has been hit hard by
cord-cutting and viewership is
down at its family-targeted
channels.
Disney also has less TV
business in developing markets than competitors like Fox,
making it more vulnerable to
U.S. trends like declining subscriptions to traditional cable
and satellite TV packages.
Disney Chief Executive Robert Iger in July announced plans
to launch a pair of subscription
streaming services to help bat-
tle rivals like Netflix Inc., from
which it is pulling its new movies at the end of next year.
While the purchase of Fox assets under discussion wouldn’t
have affected a planned ESPN
streaming offering in 2018, it
Entertaining a Deal
The talks between Disney and 21st Century Fox centered on the
acquisition of some of Fox's cable networks and its studio.
A breakdown of the company's current divisions:
$16.6
$17.0
REVENUE*
$8.2
$16.1
$30.0B
$55.6B
$5.6
$5.5
$9.4
$7.1
CABLE NETWORKS
PARKS/RESORTS
BROADCASTING
FILM STUDIO
CONSUMER PRODUCTS/INTERACTIVE MEDIA
MARKET CAP, in billions
$155.3
$50.2
*Latest fiscal year. Rev. excludes intracompany adjustments. Sum may not equal total due to
rounding. Note: market caps as of Nov. 6.
Sources: S&P Capital IQ; the companies;
FactSet (market cap)
THE WALL STREET JOURNAL.
could have bolstered a familyentertainment offering planned
for 2019. A deal would also give
Disney majority control of the
streaming service Hulu, which
could be positioned as an adulttargeted streaming service. Disney and Fox each owns 30% of
Hulu. Comcast Corp.’s NBCUniversal and Time Warner Inc.
own the rest.
“We see the real strategy here
as Fox content helping Disney
build out its direct-to-consumer
strategy,” said RBC Capital Markets analyst Steven Cahill.
The assets Disney was looking to acquire include Twentieth Century Fox Television,
which produces content for the
Fox network and rival networks,
including the NBC hit “This Is
Us,” ABC’s “Modern Family”
and CBS’s “Life in Pieces.”
Fox’s cable channels such as
FX, known for edgy fare with
adult language and content,
contrast with Disney’s sweet
spot of family-oriented fare.
The international business
could be a key attraction for
Disney. Fox says its international holdings help it reach
more than one billion subscribers in roughly 50 languages in
more than 170 countries, spanning Europe, Asia, the Middle
East and Latin America.
—Dana Mattioli
contributed to this article.
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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.
WORLD WATCH
Report Fuels Criticism
Of Trudeau Tax Plan
ber trust, Mr. Bronfman said, involved a single loan made over a
quarter-century ago, and was repaid five months later “in full compliance with all legal requirements.”
The use of offshore trusts by
Canadians is legal, although legislation over the past two decades
has tried to limit their tax benefits.
Mr. Trudeau “has accused
small-business owners of using
tax loopholes of saving money on
taxes, but what will he do now
that close Liberal advisers are the
ones that allegedly used tax loopholes to shelter their fortunes?”
asked Andrew Scheer, leader of
Canada’s Conservative Party.
Mr. Trudeau told Parliament
the government “is fully committed to fighting tax avoidance
and tax evasion, and we will
continue to ensure [authorities]
pursue all [tax] infringes.”
—Paul Vieira
and Jacquie McNish
MYANMAR
U.N. Security Council
Presses on Rohingya
The United Nations Security
Council stepped up pressure on
Myanmar by unanimously adopting a presidential statement demanding an end to the violent
treatment of the country’s Rohingya Muslim community.
Diplomats hailed the move as
a unified international stand
against a humanitarian crisis that
has been called “ethnic cleansing.”
Myanmar’s U.N. ambassador,
Hau Do Suan, said the statement
would “lead to further polarization and escalation of tensions.”
—Farnaz Fassihi
CHRIS JACKSON/PA WIRE/ZUMA PRESS
The government of Canadian
Prime Minister Justin Trudeau
was under fire after leaked documents showed a close Trudeau
confidant and Liberal Party fundraiser had ties to an offshore trust
established in the Cayman Islands.
The link has fueled criticism
of Mr. Trudeau as he pushes a
new tax policy that would crack
down on loopholes used by small
businesses and the self-employed to reduce their tax bills.
The link between the fundraiser, Stephen Bronfman, and
the trust was revealed over the
weekend in a trove of internal
documents from Appleby, a Bermuda firm specializing in offshore
legal advice.
According the International
Consortium of Investigative
Journalists, and a person familiar
with the documents, the Bronfman family lent millions of dollars to help fund the offshore
trust, set up in 1991 by Leo Kolber for the benefit of Mr. Kolber’s son, Jonathan. At the time,
Mr. Kolber was chairman of the
Bronfman family’s investment
arm, Claridge Inc. Mr. Kolber is a
longstanding Liberal Party supporter and former senator.
In a statement Monday, Mr.
Bronfman denied wrongdoing.
He said he has “always fully
complied” with tax laws, and he
has “never funded nor used offshore trusts.” Any trusts “have
paid all taxes on all their income
to the Canadian government.”
The money moved to the Kol-
WORLD NEWS
LA SEXTA TV/REUTERS
CANADA
Tuesday, November 7, 2017 | A9
NY
* *
ROYAL GREETING: The Prince of Wales fed an orangutan during a
visit Monday to a wildlife rehabilitation center in Kuching, Malaysia.
A video still shows former Catalan leader Carles Puigdemont, right, with his Belgian lawyer Paul Bekaert during a meeting in Brussels.
Catalonia, Madrid Gird for Election
BY JEANNETTE NEUMANN
MADRID — Pro-independence forces in Catalonia and
the Rajoy government have begun maneuvering ahead of regional elections in December
that will determine the nearterm fate of a secessionist
movement that has riven Spain.
With leaders of the independence drive now in jail or having fled abroad, and the secessionist movement weakened
following the imposition of direct rule from Madrid, the Rajoy
government is pressing its case
ahead of the Dec. 21 vote that
will seat a new government for
Catalonia and return control of
the region to Catalan officials.
“The independence of Catalonia is not possible,” Spanish
Finance Minister Luis de Guindos said in an interview. The
future of a Catalonia that remains part of Spain “could be
much better, could be much
more brilliant and could bring
much more prosperity to Catalan society.”
A victory by pro-union
forces could take the wind out
of a separatist movement that
felt in recent weeks as if it had
independence
within
its
grasp. By contrast, the election
of a pro-independence government in Catalonia could keep
secession on the table for years.
Prime Minister Mariano
Rajoy’s decision to call regional elections so quickly left
Catalan separatist parties
somewhat flat-footed after
their declaration of independence in late October failed to
achieve secession for the
northeastern region.
“What are the pro-independence parties going to sell in
the next elections? Are they
going to sell the idea that
they’re going to declare a republic if they’ve already done
so and it didn’t amount to
anything?” Inés Arrimadas,
head of the opposition in Cat-
alonia’s
regional
parliament, said in an interview.
“Are they going to sell international recognition from
many different countries? No
one has recognized the declaration of independence.”
Former Catalan leader Car-
Regional polls next
month will determine
the near-term fate of
the push for secession.
les Puigdemont’s flight to Belgium has also divided separatists, with some saying he
should have remained in Barcelona and continued to lead
the independence movement,
even if it were from jail.
But his decision to leave
Spain hasn’t turned off as
many separatist voters as
might have been expected,
said Oriol Molas, director of
Barcelona-based
pollster
GAPS, which focuses on proindependence parties.
Indeed, a poll published on
Sunday suggested that Catalonia’s three pro-independence
parties could win a parliamentary majority in December,
taking as many as 69 of the
135 seats in the regional legislature. The survey by Madridbased GAD3 for La Vanguardia
newspaper was conducted
from Oct. 30 to Nov. 3 and
suggests a record voter turnout of more than 80%.
In the interview, Mr. de
Guindos warned that a protracted independence drive
could dent the economic
health of Catalonia, one of
Spain’s richest regions.
The
finance
minister
cracked open the door to the
possibility of talks that could
grant more fiscal autonomy to
Catalonia.
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THE WALL STREET JOURNAL.
A10 | Tuesday, November 7, 2017
IN DEPTH
Amazon Studios isn’t a big
revenue generator but plays an
important role in attracting
members to Amazon’s Prime
service. It has become one of
the most prominent studios in
Hollywood due to its big budget
and record of critical success in
a short time. It produces the
Emmy-winning comedy “Transparent,” crime drama “Bosch”
and reality show “The Grand
Tour.” Earlier this year it won
two Academy Awards for its
film “Manchester by the Sea.”
Mr. Price arrived there with
Hollywood credentials. The son
of a former Columbia Pictures
chairman, he spent about five
years in the 1990s at Walt Disney Co., where he supervised
Amazon made a big push into television and movies—such as ‘The
Lost City of Z,’ above—under its studio’s chairman, Roy Price.
WORDS
Continued from Page One
to continue the support,” said
Joan Houston Hall, a former
chief editor. “Fundraising began to get really difficult because it’s not sexy to say we
need more money to update
the digital version.”
Purchases—mostly by libraries—didn’t generate enough
funds. The web version, which
costs $49 a year for individuals
and about $5,000 for institutions, will continue to operate
and occasionally be updated by
volunteer editors, DARE said.
The dictionary closes shop
even as the evolution of American English forges energetically,
and
chaotically,
ahead, lexicographers say. Despite the influence of mass
communications and social media, new words and pronunciations rise up in one region as
others fade away.
“Dialects are changing but
they’re not disappearing,” said
Laurel MacKenzie, a linguist at
New York University. “Someone who grew up in New York
today doesn’t sound like someone who grew up in New York
50 or 100 years ago, but they
don’t sound like someone from
Alabama.”
In recent years, locals of
eastern Vermont have found
long lost R’s they had been
dropping for 200 years—but
they still hold fast to Vermon-
tisms like “griddle” (a cooking
surface), “leaf peeper” (a tourist looking at foliage) and “frog
run” (the last run of the maple
sugar sap).
Most Philadelphians still call
submarine sandwiches “hoagies,” but the pronunciation of
“path” as pee-ath is disappearing. The word “days,” though,
is morphing into “deeze.”
Words for objects that
didn’t exist a century ago are
also diverging. In California, Northerners and Southerners giving directions on driving
routes disagree about whether
to take “5” or “the 5.” In the
Midwest, a supermarket cart is
a “buggy” south of Ohio and
Pennsylvania.
Research for the Dictionary
of American Regional English
began in 1965 and the team
grew to 80 field workers.
They carried surveys with
more than 1,600 questions such
as, “What’s another word for a
person’s mouth?” Among the
77 answers: maw, clam, jug,
flytrap, boose and bugle.
Over the next five years, the
crew interviewed 2,777 mostly
older residents of 1,002 communities from Hawaii to Maine.
After that, researchers added
words they found in books,
magazines and newspapers.
The troop blew past the initial 1976 completion target but
managed to publish the first
volume—A to C—in 1985. Progress slowed with the advent of
the internet because there was
that much more to examine
After Weinstein
Allegations of misconduct going beyond previous reports simmered inside Amazon Studios regarding
its chief, Roy Price, who resigned last month. Mr. Price, right, with Amazon CEO Jeff Bezos in 2016.
development of animated television series. He joined Amazon in
2004 and oversaw the company’s video-on-demand service
from its Seattle headquarters.
He returned to Southern California in 2014 as Amazon expanded its foray into original
movie and TV production.
Mr. Price enjoyed a close relationship with Messrs. Blackburn and Bezos, several current
and former executives said. He
sometimes watched movies with
Mr. Bezos at the CEO’s boathouse, one said.
Some former executives of
Amazon Studios said what they
saw as Mr. Price’s troubling behavior, including heavy drinking
and inappropriate remarks, was
apparent when he began spending more time in Hollywood and
New York as Amazon ramped up
its studio unit.
In 2013, at a dinner for the
cast and producers of the political comedy “Alpha House,” Mr.
Price drank excessively and
made raunchy remarks to one of
the show’s female co-stars, according to some attendees.
Mr. Price slurred his words
and crudely propositioned the
young actress, one attendee
said. Another said Amazon executives tried to move the target
of Mr. Price’s come-ons—Yara
Martinez—away from him. At
the end of the evening, he had
to be helped to a cab by two
Amazon executives, this person
said. A spokesman for Ms. Martinez didn’t respond to a request for comment.
At another party later that
year for the talent in Amazon’s
shows, Mr. Price appeared inebriated and told a group of executives he was looking for a
young actress to sleep with that
night, said a person present.
Mr. Price disputes the two
accounts of his behavior at the
events, said a person close to
him.
In July 2015, at a dinner with
the cast and producers of the
and record, said Dr. Hall.
The final six-volume set has
come in handy for police examining ransom notes, actors
mastering dialects and historians deciphering old letters,
DARE said. John P. Kaminski,
director of the Center for the
Study of the American Constitution at the University of Wisconsin, has asked Dr. Hall to
help decipher words in newspapers used to describe celebrations following the document’s ratification in the 1780s.
A “bumper,” he learned, was a
tankard from which to drink
rum.
Douglas Kelling, a medical
doctor from rural Missouri who
practices in North Carolina, has
been flummoxed by the Southern dialect several times
throughout his career. An 80year-old woman asked him after a recent examination how
her “ticklebox” was faring. She
was referring to her heart.
Another man complained of
“having lost his nature,” Dr.
Kelling said. He was suffering
from erectile dysfunction.
Allan Metcalf, a professor of
English at MacMurray College
in Jacksonville, Ill., and executive secretary of the American
Dialect Society, said language,
no less than people and events,
is an important record of history.
The dialect dictionary is significant because it is designed
to capture not how people
should speak, but how they do
speak, said William Kretz-
Business Picture
Amazon Studios, which has quickly become a major player
in Hollywood, is still a small piece of its Seattle parent's business.
Amazon
sales
Amazon operating
expenses
$117.41 billion
$115.43 billion
Amazon Studios'
annual spending
on original and
licensed content
$4.5 billion*
*According to people familiar with Amazon’s spending
Note: Sales and expenses are for nine months ended Sept. 30, 2017; Amazon Studios' spending
is an estimate for all of 2017.
Source: the company
Amazon drama “Man in the
High Castle,” Mr. Price was introduced to Ms. Hackett, a producer on the show and daughter
of Philip K. Dick, author of the
book on which the series is
based. During that evening, Mr.
Price suggested he and Ms.
Hackett “have an affair” to help
promote the series. He then also
bragged about his sexual prowess and grilled her about her
lifestyle and made vulgar propositions, according to people who
were present. Ms. Hackett confirmed this account.
Later Mr. Price told others at
the party he thought Ms. Hackett liked him, people who were
there said.
The morning after the incident, Ms. Hackett complained to
two senior Amazon Studios programming executives, said one
of the people familiar with the
episode. Ajay Patel, the studio’s
associate general counsel, was
made aware of the incident, this
person said. Mr. Patel declined
to comment, Amazon said.
Amazon executives in Seattle
brought in an outside investigator, Public Interest Investigations Inc., a few weeks later,
people who took part in the
probe said. Public Interest declined to comment.
THE WALL STREET JOURNAL.
Initially, Ms. Hackett wasn’t
provided details about the investigation’s conclusion, said
one of the people familiar with
the episode. This past summer,
Ms. Hackett again inquired and
was told by Mr. Patel that Mr.
Price was “counseled.” No other
specific reprimands were described to her, this person said.
Some people familiar with
the episode said Mr. Price was
told to steer clear of Ms. Hackett and events involving the
show, and to watch his drinking
at events.
At last year’s Edinburgh Television Festival, where Mr. Price
was a speaker, he repeatedly expressed interest in pursuing the
actress Anna Friel, said a person
present. At events with other industry executives, he asked multiple times where she was and
whether she was attending. People close to Ms. Friel worked to
keep the two of them separate
because she was uncomfortable
with his interest, this person
said. A spokesman for Ms. Friel
declined to comment. The person close to Mr. Price said he
disputed that account.
Frustration with Mr. Price extended to his demeanor in business. He often struck colleagues
as aloof and disengaged, said
Ms. Hackett told the Hollywood Reporter she was spurred
to go public with her story by
the public allegations of sexual
misconduct against movie mogul Harvey Weinstein.
That week, actress Rose
McGowan criticized Mr. Price on
Twitter for his ties to Mr. Weinstein, also directing complaints
at Mr. Bezos. Amazon and Weinstein Co. were working together
on two television shows.
Amazon canceled one series
it was producing with Weinstein
Co. that would have been directed by David O. Russell and
featured Robert De Niro and Julianne Moore. It is seeking to
end a relationship on another in
which the independent studio
had foreign rights, said people
familiar with the discussions.
Some current and former executives and top creative talent
said they had been frustrated
for years with other problems at
Amazon Studios, including what
they described as low viewership for its television series,
abrupt changes in strategy and
lax oversight of its productions.
In the wake of Mr. Price’s departure, Amazon has made
changes in the studio’s leadership. Another top executive,
head of drama and comedy-TV
series Joe Lewis, has left his
post and is negotiating for a
producing deal with the company, an Amazon spokesman
said. Head of reality television
Conrad Riggs was fired, said
people familiar with the matter.
Head of international productions Morgan Wandell left for a
similar job at Apple Inc.
Senior Amazon executives,
including Mr. Blackburn, are
now getting a clear-eyed look at
the studio’s business problems,
said another person close to the
company. Among issues they
have identified are a lack of a
consistent strategy and cost
overruns on series.
A number of Amazon programs including “The Tick” and
“Goliath” have shut down production due to disputes about
the shows’ directions, in some
cases multiple times, costing
millions of dollars, said people
close to the series.
“We’re going to start acting a
lot more like Amazon” when it
comes to strategic focus and
keeping a lid on costs, the person close to Amazon said.
Since Mr. Price’s departure,
Amazon has promoted women
to top roles in the television division.
At a recent town-hall meeting at Amazon Studios, Brad
Beale, Amazon’s Seattle-based
head of digital-video-content acquisition, told employees, “We
broke your trust and we’re very
sorry,” said a person present.
Mr. Beale promised Amazon was
embarking on a “cultural shift”
at its studio.
TODD BERKEY/THE TRIBUNE-DEMOCRAT/ASSOCIATED PRESS
Hollywood cred
AMAZON STUDIOS/ASSOCIATED PRESS
Continued from Page One
help him into a cab on one occasion. He once suggested to a
producer that they have an affair to help promote her series,
and on two occasions made actresses so uncomfortable with
his advances that colleagues had
to move them away from him,
said people who witnessed the
events.
Some people in Hollywood
also said they came to know Mr.
Price as appearing aloof and often uninterested in the details of
the multibillion-dollar business
he ran for Amazon.
People who work at Amazon
are now asking how the Seattle
giant let those issues build for
so long. The issues raise questions about the role of a core
feature of Amazon’s business
model, current and former executives said. The company gives
divisions tremendous autonomy
to maintain an innovative startup culture. Because entertainment is so different from the
rest of Amazon’s operations,
some of these executives said,
Mr. Price enjoyed particularly
wide leeway.
That allowed Amazon Studios—based near Los Angeles,
far from headquarters—not only
to run its business in a way that
didn’t always hew to Amazon’s
trademark obsession with controlling costs, but also to be
tainted by a Hollywood culture
in which norms of professional
behavior are often ignored,
some of these executives said.
In one case, when an allegation of misconduct against Mr.
Price was brought to the attention of the parent company by
producer Isa Hackett in 2015,
Amazon conducted an investigation but didn’t appear to seriously discipline Mr. Price, people who worked with him at the
time said. That led some inside
the unit to believe complaints
about the studio chairman
wouldn’t lead to changes.
On Oct. 12, Ms. Hackett went
public with allegations Mr. Price
had sexually harassed her. Amazon placed the 51-year-old Mr.
Price on leave that day. The next
week, he resigned.
Amazon declined to make executives available for interviews.
In a recent letter to studio employees, Mr. Price’s boss, Jeffrey
some executives and producers
who worked with him. It wasn’t
unusual for him to come late to
meetings and to scowl at whoever was speaking, even a top
producer. Dana Calvo, creator of
the 2016 Amazon series “Good
Girls Revolt,” said Mr. Price
didn’t know names of the characters or many other details
about her show.
GREG DOHERTY/GETTY IMAGES
STUDIO
Blackburn, wrote that “Roy’s
resignation followed new information that surfaced last week”
and that “we will use these
events as an opportunity to review our sexual harassment policy and processes to ensure they
are doing their job to provide a
harassment-free workplace. And
if they are not, we will make the
necessary changes.”
Mr. Price’s lawyer, Eric
George, said: “In a career spanning three decades, Roy Price
has never once been accused of
engaging in unwanted physical
contact. Nor has he ever been
accused of sexual harassment—
with the sole exception of the
incident alleged by Ms. Hackett,
the portrayal of which he vigorously contests. Any attempt to
equate Roy with other stories
that have emerged recently in
Hollywood is false and misleading.”
Just a week before Mr.
Price’s exit, Mr. Blackburn, a Seattle-based Amazon senior vice
president close to Chief Executive Jeff Bezos, said at a conference that the company had a
“fantastic team” in Hollywood.
Two weeks later, visiting Amazon Studios following Mr.
Price’s departure, Mr. Blackburn
said, “We have to do better,”
said a person present. People
who have spoken to Mr. Blackburn said he appeared shocked
by the revelations and disappointed that the trust he placed
in the studio chief was violated.
Mr. Blackburn was aware of
the 2015 investigation into Mr.
Price’s conduct, said a person
with knowledge of the probe.
Regional dialects still thrive in the U.S. Above, a merry-go-round, or spinning jenny, or flying Dutchman.
schmar, a professor at the University of Georgia and editor of
the Linguistic Atlas Project,
which studies language as it is
spoken in the U.S.
Contrary to conventional
wisdom, American English is
growing less homogenized, not
more, he said.
That may appear counterintuitive to professionals, who
tend to speak mostly to others
like them, he said. But at a local level, American English is
more regional than ever. This
complexity is fueled by people’s
movement from one region of
the country to another, where
they introduce their own quirks
into new communities. These
are absorbed into an everchanging local dialect, he said.
“People are endlessly creative,” Dr. Kretzschmar said.
There are dozens of words for
a heavy rain, from “toad-strangler” in the Gulf states to
“turd-floater” in Texas and
“gully washer” out West.
Country singer Mark Leach
grew up outside Cleveland and
learned to sing country songs
listening to artists from the
Deep South. Now he speaks like
he’s from Cleveland but sings
like he’s from Georgia. “When I
sing it’s like a different part of
my brain takes over,” he said.
The dropped R that Bostonians imported from southeast
England in the 17th and
18th centuries and exported
into New Hampshire and Vermont has been in retreat.
For 200 years, the Green
Mountains, a north-south range
splitting the state, marked the
line between dropped R’s in
words like “car” and “park”
and pronounced R’s. But a 2012
Dartmouth College study
showed the line of demarcation
has moved about 50 miles east
as New Yorkers invaded Vermont and the younger generation began to favor harder R’s
to sound less “backwoods.”
Other New England stalwarts hold strong, said James
Stanford, the Dartmouth paper’s co-author. Rotaries are
still New Englandese for traffic
circles, packies are places that
sell liquor and something that
is exceptionally good is, of
course, a “wicked pissah.”
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.
Tuesday, November 7, 2017 | A10A
NY
* *
GREATER NEW YORK
BY MARA GAY
New York City Mayor Bill de
Blasio is expected to win a second term on Tuesday, but the
margin of victory is important.
Polls show the Democratic
mayor coasting to victory
over GOP state Assemblywoman
Nicole Malliotakis, in a city
where Democrats outnumber
Republicans more than 6 to 1.
More difficult for Mr. de
Blasio will be getting his voters to the polls in large numbers, a show of strength that
would carry him into his second term with momentum. But
that kind of big win may be
difficult to achieve after a noncompetitive race that has
largely been a snooze.
“There are people who go
out to vote every Election Day,
just as there are people who go
to religious services every
week. There are devoted partisans,” said Kenneth Sherrill, a
professor emeritus of political
science at Hunter College. “But
for normal people, in a race
where there is no race, there’s
no reason to come out other
than civic duty.”
Mr. Sherrill said the mayor’s
significant lead in the polls
was at least in part due to a
city that had become solidly
Democratic in recent years. But
Mr. Sherrill said voters were
also won over by initiatives
like the mayor’s prekindergarten program, as well as a sense
that the city is continuing to
enjoy a period of record-low
crime. Other than the subway,
which isn’t under the mayor’s
control, Mr. Sherrill said New
Yorkers feel the city is overall
running smoothly.
De Blasio campaign spokesman Dan Levitan said the
mayor was confident his voters
would make it to the polls.
“The mayor knows he and
New York City do best the
more people who turn out to
vote, and that is why we have a
vigorous turnout operation in
the field to encourage every
New Yorker we can to vote,”
Mr. Levitan said in a statement.
Ms. Malliotakis, who is from
Staten Island, has cast herself
as a common-sense alternative
to the mayor. She has assumed
a traditional Republican mantle and argued that quality of
life has declined under Mr. de
Blasio.
Ms. Malliotakis has spoken
frequently on the campaign
trail of the rise in homelessness on the mayor’s watch,
and lamented reduced penalties for minor infractions like
public urination. She has also
criticized the mayor as corrupt, a line of attack drawn
from federal and state investigations into the fundraising
activities of his administration
and its allies. Prosecutors declined to bring charges earlier
this year. The mayor denied
any wrongdoing.
Governor’s Race Focuses on Taxes
BY KATE KING
New Jersey’s voters will decide Tuesday who will take over
running the state from outgoing Republican Gov. Chris
Christie, who, afELECTION ter two terms in
2018
office, is leaving
Trenton with one
of the lowest job-approval ratings of any U.S. governor.
The winner of the election
will inherit a state facing large
and expensive problems, from
underfunded public pensions to
crumbling transportation infrastructure, at a time when the
electorate is loath to accept
more tax increases. The average
residential property-tax bill in
New Jersey has increased 32%
during the past decade, reaching $8,200 in 2016, and public
polls consistently have found
that the state’s voters list taxes
as their top concern.
Tuesday’s election pits Democratic nominee Phil Murphy, a
former Wall Street executive
who has never held elected office, against Republican Kim
Guadagno, a former county
sheriff who has been Mr. Christie’s lieutenant governor since
2010. Five other third-party
candidates also are on the ballot.
Public polls have shown Mr.
Murphy leading Ms. Guadagno
throughout the campaign, and
a survey of likely voters conducted last week by Quinnipiac
University found the Democrat
with a 12-point lead.
Mr. Christie, dogged by the
George Washington Bridge
lane-closure scandal and his
JULIO CORTEZ/PRESS POOL
Mayor Likely to Win,
But Voter Turnout Is
Critical to His Margin
Democratic nominee Phil Murphy, left, and Republican Kim
Guadagno are vying to succeed New Jersey Gov. Chris Christie.
unsuccessful run for the GOP
presidential nomination, has a
job approval rating of about
15% among New Jersey voters.
He is prevented by term limits
from running for a third term.
New Jersey average
residential propertytaxes have increased
32% in past decade.
The gubernatorial contests
in New Jersey and Virginia are
the first major statewide elections since Republican Donald
Trump won the presidency. The
results could indicate the
broader political landscape
ahead of next year’s midterm
elections.
New Jersey’s financial problems are significant: Its $88.8
billion public-pension liability
is 41% unfunded, and that $36.5
billion deficit will weigh on future state budgets. State funding for K-12 public schools
hasn’t kept pace with a funding
formula outlined in state law,
infuriating education activists
and putting pressure on local
property taxes.
And a host of transportation
challenges will require significant investment by New Jersey’s next governor.
At the same time, New Jersey’s real gross domestic product, a measure of economic
strength, saw a compound annual growth rate of only 0.2%
between 2006 and 2016 compared with 1.1% nationwide, according to the Department of
Commerce. And weighed down
by pension woes, general-obligation bonds have been downgraded 11 times across three
credit-rating firms since Mr.
Christie took office in 2010.
Brigid Harrison, a professor
of political science and law at
Montclair State University, said
the winner likely would seek to
stimulate economic growth to
boost revenues without raising
taxes to pay for the funding
needs.
Ms. Guadagno, 58 years old,
has staked her political future
on her promise to lower property taxes, saying she won’t run
for reelection if she’s unsuccessful. She has proposed implementing a “circuit breaker”
that would cap the school portion of residents’ property tax
bills at 5% of their household
income. She estimates her plan
would cost the state $1.5 billion. She has said she would address the deficit with savings
from an audit of state departments and services and by reworking New Jersey’s schoolfunding formula.
Mr. Murphy, 60, has run on a
progressive platform that
promises higher spending for
state employee-retirement benefits, public schools and higher
education. Throughout the
campaign, he has been critical
of Mr. Christie’s record and
sought to link Ms. Guadagno to
what he describes as Mr. Christie’s “failed administration.”
Mr. Murphy, who was endorsed early on by New Jersey’s teachers union, has
pledged to fully fund the state’s
pension payments “as fast as
possible.” He said he would pay
for the increased contributions
and other priorities by growing
the economy, legalizing marijuana and closing loopholes for
corporations.
Convention Is a Hot Issue
Delrawn Small’s family and his supporters exited Brooklyn Supreme Court on Monday after an off-duty officer was acquitted in his death.
Police Officer Acquitted in Road-Rage Killing
BY ZOLAN KANNO-YOUNGS
A Brooklyn jury acquitted a
New York City police officer
Monday in the fatal shooting
of a motorist after a road rage
incident.
The case centered on
whether Officer Wayne Isaacs,
who was off-duty, acted in
self-defense when he shot Delrawn Small, 37 years old, on
July 4, 2016.
Officer Isaacs, who is currently suspended with pay
from the NYPD, was charged
with second-degree murder
and first-degree manslaughter.
Stephen Worth, the attorney for Officer Isaacs, credited
testimony by medical professionals who said they treated
the officer after the shooting
as crucial in convincing the
jury of the self-defense argu-
ment. He also pointed to a 911
call Officer Isaacs, 38, made in
which he said he was injured.
“Those are not the actions of a
guilty man,” Mr. Worth said.
The trial in Brooklyn Supreme Court was the first case
prosecuted by New York Attorney General Eric Schneiderman
‘We are disappointed
by the verdict. But we
respect the jury’s
determination.’
under a 2015 executive order
Gov. Andrew Cuomo signed in
the wake of protests sparked
by the 2014 case of Eric Garner, who died after a police of-
ficer placed him in a chokehold
during an arrest on Staten Island. The governor gave Mr.
Schneiderman the authority to
prosecute cases in which an
unarmed civilian was killed by
police or there is a question as
to whether the civilian was
armed and dangerous.
Those questions surfaced in
the trial when surveillance
video was discovered in the
days after the shooting that
appeared to show Officer
Isaacs shoot Mr. Small almost
immediately when the motorist came up to his car.
Mr. Small, driving with his
girlfriend and two children,
believed the officer had cut
him off as he was trying to
turn on Atlantic Avenue just
after midnight, law-enforcement officials said. He then
followed Officer Isaacs for a
couple blocks before approaching the vehicle. Mr.
Small is then shown on the
video stumbling back from the
car and falling down.
Prosecutors used that video,
and testimony from Mr. Small’s
relatives who were in the car
in an attempt to sway the jury.
“We are disappointed by the
verdict,” Mr. Schneiderman
said in a statement. “But we respect the jury’s determination.”
The courtroom erupted
when the verdict was read.
One activist shouted that the
jury were murderers and criticized the justice system.
Victor Dempsey and Victoria Davis, Mr. Small’s siblings,
issued a joint statement saying they felt an independent
prosecutor was still valuable
for cases in which civilians are
killed by police.
Supporters and opponents
of a New York state constitutional convention made their
closing cases Monday, ahead
of a ballot referendum on one
of the most heated issues of
this year’s campaign season.
Voters on Tuesday will get
their say on whether to hold the
event, where specially elected
delegates could amend the
state’s constitution. Supporters
have argued that the convention
is a way to bypass the bureaucracy and political barriers in
Albany and implement sweeping government reforms. Opponents have said the convention
is vulnerable to special-interest
spending and would risk rolling
back hard-fought protections
enshrined in state law.
Gov. Andrew Cuomo said
Monday he will vote against
the event. “The current delegate system does not offer
enough protections to prevent
the status quo and special interests from governing,” his
spokeswoman said.
Meanwhile, Mr. Cuomo’s exwife, Kerry Kennedy, president
of Robert F. Kennedy Human
Rights, an advocacy group, issued a statement of support.
“A convention can solve many
of our most intractable problems around political corruption and transparency in Albany,” she said.
At City Hall on Monday, the
League of Women Voters held
an event arguing that a convention would give women
more of a say in the constitution. New Yorkers Against Corruption, an opposition group,
is planning to attend a town
hall in Brooklyn on Monday
evening to make its case about
the risks of a convention.
Polling has swung on the issue during the past few
months, with the “no” vote
strengthening as online and
TV advertising on both sides
has amped up. In a recent Siena College poll, 57% of New
Yorkers surveyed said they
would vote no.
Terror-Attack Victims Mourned
JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGES
JOHN TAGGART FOR THE WALL STREET JOURNAL
BY MIKE VILENSKY
TRIBUTE: Argentina’s President Mauricio Macri on Monday laid
flowers at the Manhattan bike path where eight people, including
five Argentines, were killed by a man driving a rented truck.
Elegance is an attitude
Longines Symphonette
Kate Winslet
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A10B | Tuesday, November 7, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
BY JEANETTE SETTEMBRE
Newark has long catered to
the business-lunch crowd. Now,
it is aiming to get commuters
to hang around for dinner.
New York City restaurateurs
are devouring New Jersey’s largest city with plans to transform
the nine-to-five culture into a
late-night hub as Newark’s oncestruggling downtown continues
to undergo a renaissance.
For newcomers such as Barcade, a craft beer, videogame
lounge and gastropub with locations in Manhattan and
Brooklyn, that means staying
open until 2 a.m. on weekdays
and 4 a.m. on weekends.
Restaurateurs move to
transform Newark’s
nine-to-five culture
into a late-night hub.
“We looked at is as a great
opportunity to get in while the
city was in a comeback period
and hopefully to recreate a
nightlife scene,” co-owner Paul
Kermizian said.
A restaurant-sized retail
space under 5,000 square feet
in Newark costs about
$100,000 annually. That is a
fraction of the cost in Manhattan, where the same space
would average $550,000 a year,
or Brooklyn, where it could run
$350,000 a year, according to
real-estate firm CoStar.
About 36 new restaurants
have opened in the downtown
area alone in the past year, according to a representative
with the mayor’s office. They
are keeping up with an influx
of people moving in. More than
1,000 multifamily units have
been built in Newark since
2014, and another 900 units
are under construction, according to CoStar. Total investment
for residential, commercial and
industrial projects is $1.7 billion since 2015, said Newark’s
Department of Economic and
Housing Development.
Newark got its first Whole
Foods on the ground floor of
the Hahne & Co. building in
March. The former department-store building underwent
a $174 million renovation and
will house celebrity chef Marcus Samuelsson’s new restaurant Marcus B&P in November.
The Ethiopian-born chef,
who got diners to travel above
96th Street in Harlem to his
high-end soul-food restaurants
Red Rooster and Streetbird
Rotisserie, sees Newark as a
similar opportunity. “We’re
not a restaurant that’s going to
close once the businesses are
closing,” Mr. Samuelsson said.
Newark has come a long way.
In 2015, WalletHub released a
list of its 150 best and worst cities to start a business and Newark ranked as one of the worst
due to its limited employee
availability and high local cost
of living. In 2013, it had the
third-highest murder rate in the
nation. The city’s overall crime
rate decreased by 13% in 2016,
according to Newark officials.
“When I was back in school,
Halsey Street was empty.
There was nothing there,” said
Luis
Valls-Amabile,
who
opened his first restaurant
Ono Grinds Poke, a fast-casual
spot on Newark’s Raymond
Boulevard serving Hawaiianinspired bowls of sushi-grade
tuna, salmon and tofu.
“Everybody was saying,
‘You’ve got to open up in Jersey City or Hoboken.’ Those
places are saturated. We’d
rather be a part of something
MARK BONIFACIO FOR THE WALL STREET JOURNAL (2)
New Restaurants
Are Spicing Up
Newark Nightlife
Barcade, above, is among the new establishments in Newark. Below, Ferry Street is a melting pot of cultures in the Ironbound district.
Old-School Enclave
Attracts Millennials
that’s on its way up,” he said.
Some lunch spots are beginning to extend their hours,
too. Middle Eastern eatery
Green Chicpea, serving fastcasual kosher falafel and shawarma, will stay open until 7
p.m. on weekdays starting
next month. Newly opened
Playa Bowls on Bleeker Street
in Newark serves as a latenight healthy-food hangout offering smoothie and açaí
bowls until 10 p.m. And the
Ainsworth, a luxury sports bar
with locations in Manhattan
GREATER NEW YORK WATCH
A Camel Crossing in Midtown
MENENDEZ TRIAL
JOHN TAGGART FOR THE WALL STREET JOURNAL
Jurors Deliberating
In Senator’s Case
ANIMAL ATTRACTION: Camels, sheep and donkeys arrived at
Radio City Music Hall on Monday for their first day of rehearsals
for the 2017 ‘Christmas Spectacular,’ starring the Rockettes.
and Hoboken serves halfpriced steaks on Monday
nights at its newly opened
space in the Hotel Indigo.
Newark’s downtown, however, is a long way from becoming an evening dining destination. Many restaurants
still close at about 5 p.m. on
weekdays and shutter entirely
on weekends. “It’s mostly
commuters. There’s really not
a lot of business,” said Manny
Beovides, owner of Cuban buffet-style restaurant La Cocina
on New Street.
Newark’s Ironbound district
is known for two things: Its
hard-working immigrant community and no-frills, good food.
The city’s culinary crownjewel neighborhood east of
downtown and Penn Station is
rich in diversity and economic
activity, with about 200 restaurants and markets reflecting a melting pot of Portuguese, Spanish, Brazilian,
Ecuadorean and Mexican cultures. The enclave that often is
overlooked, is preserving the
old despite new development.
“There’s a gentrification that’s
happening because all of the
companies coming into downtown Newark,” said Tony Martinez, owner of Mompou, a Spanish-style tapas restaurant that
has been around for more than a
decade. “We have a modern, yet
rustic feel. We tend to appeal
more to millennials these days
that are working in the area and
coming to us for happy hour.”
The main drag of Ferry
Street is a feast for the eyes.
Portuguese flags hang inside
windows of tiny markets with
terra-cotta style rooftops in
the neighborhood that feels a
bit like Lisbon. Fare such as
Mexican tortilla soup, seafood
paella, calamari and spicy
chorizo entice patrons all
within a one-block radius.
In the early 19th century,
the Ironbound became a powerhouse for urban development, amid an industrial boom
that shaped the neighborhood
as a result of the completion
of the first railroads. With
more job opportunities came
an influx of European immigrants who brought culinary
traditions with them.
Today, 72 percent of Ironbound residents are foreign
born, according to a report by
East Ward councilman Augusto
Amador. A new wave of people are discovering it—mostly
Brooklyn and Manhattan transplants. “It’s a good investment
because it’s trending up,” said
Seth Grossman, director of the
Ironbound Business Improvement District.
After final arguments in a
Newark federal courtroom, a jury
on Monday afternoon began to
decide the fate of U.S. Sen. Bob
Menendez.
Mr. Menendez, a New Jersey
Democrat, faces 18 counts including fraud, bribery, conspiracy,
and making false statements.
Prosecutors allege the senator was part of a yearslong arrangement in which he traded
political favors for gifts from a
wealthy Florida eye doctor, Salomon Melgen. Dr. Melgen, a codefendant in the trial, is accused
of bribing Mr. Menendez with
flights on his private jet, luxury
Caribbean vacations, and a stay
in a fancy Paris hotel, plus hundreds of thousands of dollars in
campaign contributions.
In exchange, prosecutors say,
Mr. Menendez helped secure visas for several of the doctor’s
girlfriends and sought to inter-
vene on a port-security matter
and a Medicare billing dispute involving Dr. Melgen.
Defense attorneys have said
the government is misconstruing
a longstanding and genuine
friendship between the doctor
and the senator. Any gifts given
and advocacy action stemmed
from that friendship, not a bribery scheme, they argued.
—Thomas MacMillan
ANTHONY WEINER
Former Congressman
Reports to Prison
Former U.S. Rep. Anthony
Weiner began a 21-month prison
sentence Monday for exchanging
sexually explicit text messages
with a 15-year-old girl.
Mr. Weiner, 53 years old, entered the Federal Medical Center,
Devens, in Massachusetts, said
the Federal Bureau of Prisons.
The case intersected with the
2016 presidential campaign
when, two weeks before the
election, James Comey, then di-
rector of the Federal Bureau of
Investigation, announced that
emails found on Mr. Weiner’s
laptop might be relevant to the
agency’s probe into Democratic
candidate Hillary Clinton’s use of
a private-email server while she
was secretary of state. Mr. Weiner’s wife, Huma Abedin, was a
top aide to Mrs. Clinton. Mr.
Comey later said there was
nothing new in the emails. Mrs.
Clinton has said Mr. Comey’s actions played a role in her defeat.
Mr. Weiner and Ms. Abedin
are in divorce proceedings.
In 2011, Mr. Weiner, then a
Democratic congressman representing Brooklyn and Queens, resigned after he posted a suggestive photo of himself online and
admitted to exchanging lewd
messages with women. In 2013,
he ran for New York City mayor
but that campaign was derailed
by another sexting scandal.
At his sentencing in September, Mr. Weiner said he was a
“sick” person. “I have a disease
but I have no excuse,” he said.
—Mike Vilensky
CRIME
Detectives Accused
Of Rape Quit NYPD
Two New York City Police
Department detectives accused
of sexually assaulting a handcuffed 18-year-old woman in a
van have quit the force.
Eddie Martins, 37 years old,
and Richard Hall, 32, resigned
on Monday before they were to
face an administrative proceeding that could have resulted in
their firing.
They were arraigned last
week on kidnapping, rape and
other criminal charges in Brooklyn Supreme Court.
Prosecutors say the detectives stopped the woman in
September for suspicion of drug
possession and then handcuffed
her, drove her around and raped
her. DNA evidence matches the
detectives, they say.
The detectives’ lawyers have
said the woman’s account isn’t
credible.
—Associated Press
Grammy Winner Boosts ‘Waitress’ Ticket Sales
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
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“Waitress” has found a new
recipe for box-office success.
The Broadway musical,
which chronicles the trials of
a pie-obsessed waitress, saw
its grosses climb by 23% to
$900,167 this past week with
the arrival of Grammy Awardwinning singer and songwriter
Jason Mraz to the cast.
The figures come from the
Broadway League, a trade
group that monitors the industry.
Mr. Mraz, who is known for
such hits as “I’m Yours” and “I
Won’t Give Up,” joined the
show this past Friday for a 10week run. He plays Dr. Pomatter, the love interest of Jenna,
the waitress.
Casting a pop star in a
long-running show is hardly a
new formula for boosting
sales.
Earlier this year, “Kinky
Boots” welcomed Brendon
Urie, lead singer for the group
Panic! at the Disco, and saw its
grosses increase significantly
during the 10-week stretch.
“Waitress” also has gone the
star-casting route before.
Sara Bareilles, the singer-
NICHOLAS HUNT/GETTY IMAGES
BY CHARLES PASSY
David Josefsberg, left, Sara Bareilles and Jason Mraz at the curtain call of Broadway's ‘Waitress.’
songwriter who wrote the
show’s music and lyrics, took
on the role of Jenna for a
stretch this spring. During that
time, weekly grosses climbed as
high as $1.3 million.
Barry Weissler, a “Waitress” lead producer, said that
while it costs more to book a
name talent, the payoffs often
are significant. He wouldn’t
disclose details of what Mr.
Mraz is earning for his run.
In any case, “it’s a calculated risk,” Mr. Weissler said.
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | A11
CLOCKWISE FROM TOP RIGHT: BRIAN ACH/GETTY IMAGES; WARNER BROS. PICTURES (2)
LIFE&ARTS
MOVIES
The Quest to Save ‘Justice League’
The $300 million superhero extravaganza has faced a rocky road to release
Above, from left, Ben Affleck, Gal
Gadot, Ray Fisher, Ezra Miller and
Jason Momoa in ‘Justice League,’
which was rewritten by Joss Whedon,
inset. At left, Ben Affleck and Gal
Gadot with director Zack Snyder.
BY BEN FRITZ
SUPERMAN, Batman and Wonder
Woman join forces to save the
world in “Justice League,” but
their long-awaited team-up may
not be the automatic superhero
movie triumph it once seemed.
The Nov. 17 release, which
unites the well-known trio with
big-screen newcomers Aquaman,
Cyborg and the Flash, has had perhaps the rockiest road to release
of any big-budget movie this year.
In the past 18 months it has
sustained a switch in directors and
creative tinkering before and after
production to lighten the tone.
Significant reshoots brought an already big budget up to nearly
$300 million, said people close to
the picture.
“Justice League” is hitting theaters at a time when Hollywood is
shifting from by-the-books portrayals of superhero stalwarts. The
success of films like “Logan,” Warner’s own “Wonder Woman,” and
current box-office juggernaut
“Thor Ragnarok” indicate audiences are hungry for unique pictures about particular characters.
“Justice League” doesn’t fit that
mold. Supporters describe the
movie as a crowd-pleaser in which
a few superheroes team up and
beat the bad guys. In the movie,
Ben Affleck’s Batman and Gal Gadot’s Wonder Woman recruit
Aquaman, Cyborg and the Flash to
the team.
Last year’s DC movies “Batman
v Superman: Dawn of Justice” and
“Suicide Squad” were financial
successes despite being savaged by
critics and diehard fans. There are
no more superhero releases from
the studio for 13 months. One person close to the DC film effort
called 2018 a “reset year” when
executives and producers will focus on a slate of pictures to be
driven more by directors’ visions
for individual characters than a
corporate mandate to put out particular films in a given order, as
Warner’s chief executive three
years ago announced the studio
would do.
Toby Emmerich, who became
Weather
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.
20s
30s
Vanc
Vancouver
l
Helena
30s
50s
0s
30s
10s
Winnipeg
P tl d
Por
Portland
40s
<0
20s
Calgary
ttl
Seattle
g
Eugene
10s
d
t
Edmonton
i
Boise
20s
Billings
20s
Montreal
20s
Bismarckk
30s
ttawa
Ottawa
Mpls./St. Paul
T
t
Toronto
A bany
b y
Albany
30s
40s
30s
A g t
Augusta
40s
t
Boston
50s
30s
40s
Pierre
70s
U.S. Forecasts
Ice
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
49 27 s
84 65 pc
53 43 c
82 58 s
48 31 s
46 32 s
48 41 r
65 52 r
51 32 s
51 34 pc
67 56 r
55 29 s
52 42 r
45 18 s
49 45 r
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
46
67
91
87
67
47
46
72
93
49
47
Today
Lo W
33 pc
58 pc
65 pc
76 c
36 s
40 pc
32 s
62 c
76 s
35 pc
34 r
Tomorrow
Hi Lo W
46 39 sh
70 55 t
88 66 c
88 76 pc
58 36 s
49 39 c
44 36 sh
78 58 pc
94 75 s
51 48 pc
51 45 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
Today
Hi Lo W
48 39 c
47 38 r
85 65 pc
78 71 sh
63 51 s
90 78 t
68 54 pc
89 56 s
54 36 r
62 38 s
88 77 s
58 49 c
80 48 s
51 41 r
41 26 c
94 73 pc
48 38 pc
76 67 r
86 58 s
60 45 t
85 75 t
66 52 c
74 54 c
86 77 c
68 58 s
88 74 pc
68 60 pc
47 28 pc
43 38 c
50 38 c
46 36 r
2
Tomorrow
Hi Lo W
48 39 sh
45 36 sh
84 68 pc
80 73 pc
66 54 s
92 76 t
65 53 s
87 53 s
50 37 s
59 37 pc
88 77 s
67 45 s
80 48 pc
55 43 pc
38 27 s
95 72 pc
48 36 sh
78 68 pc
87 59 s
61 47 pc
84 77 t
62 39 s
73 54 s
87 75 t
68 56 c
76 72 r
67 57 r
47 30 s
50 39 c
48 38 pc
44 35 sh
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VOTING IN | By Harold Jones
Across
1 First family
member
5 One of Alcott’s
“Little Women”
8 Del. neighbor
25 Famed Harlem
music hall
32 Former senator
Cranston
33 Ticked off
34 Diner stack
13 Wander
36 Car quartet
14 Start of a formal
letter
38 Clinic nickname
16 Like many
flowers visited
by bees
18 Senator Hirono’s
state
45 Civil rights
activist Medgar
10 Late time,
in ads
46 Disney girl from
18-Across
12 Card who was
White House
chief of staff
from 2001 to
2006
49 High pair
50 En ___ (in full
court)
52 Try to gain, as
a political office
15 Parishioner’s
donation
54 Pretzel shape
55 Ionized gas
60 Twins aboard
the Argo
17 Sunny perch for
a cat
56 Gravy Cravers
brand
22 Largish
57 Grueling work
63 “And that’s
that!”
24 “A Streetcar
Named Desire”
sister
58 Ponder
65 Knitting project
41 A bunch
66 Farm pen
19 Choir voice
43 Hiding place
67 Eye amorously
20 Cathedral city
of eastern
England
44 Oscar-winning
director of
“Out of Africa”
Down
1 Keystone
setting
47 Adj. modifier
37 Dispatches
42 Hardly fastidious
49 ___ Dhabi
40 Donny’s sister
48 King, in Cannes
32 Source of bills
35 Officer’s honorific
51 Meat-inspecting
agcy.
64 Voting process
found in the four
longest Across
answers
21 Chair part
31 Cube creator
14 Pitches
39 Part of a
defendant’s case,
often
23 Day divs.
6 First name of
the First Lady
of Jazz
11 “Joyeux ___”
64
66
30 Computer that
weighed 30 tons
9 Greek vowel
62
63
29 Browbeat
8 Mountain vista
48
52
28 Group of soldiers
7 Con man’s
victim
46
47
50
35
39
41
44
31
34
38
40
24
29
33
27 New York’s
largest lake
5 Tiananmen
Square
portrait
20
22
3 Admit frankly
4 Grand Canyon
sight
15
17
18
49
7
14
16
2 Animated
explorer
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
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s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
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Anchorage
31 24 s
31 23 pc
Atlanta
79 59 c
68 53 t
Austin
83 51 pc 56 42 sh
Baltimore
48 40 r
49 42 r
Boise
43 29 s
51 37 c
Boston
50 39 pc 49 41 pc
Burlington
43 27 pc 48 34 pc
Charlotte
70 47 r
55 45 t
Chicago
46 29 pc 45 31 s
Cleveland
46 37 c
50 31 pc
Dallas
69 44 c
54 40 r
Denver
33 22 sn 52 28 s
Detroit
47 30 pc 47 28 s
Honolulu
86 75 c
87 74 pc
Houston
87 62 pc 67 52 sh
Indianapolis
45 35 c
49 29 s
Kansas City
44 27 pc 47 28 s
Las Vegas
72 47 pc 69 48 s
Little Rock
63 45 t
52 37 c
Los Angeles
72 58 pc 73 57 s
Miami
86 72 pc 86 72 s
Milwaukee
43 27 pc 45 32 s
Minneapolis
34 23 s
41 21 s
Nashville
65 45 r
55 40 c
New Orleans
83 66 s
78 57 pc
New York City
52 40 r
52 44 pc
Oklahoma City
51 35 c
47 31 r
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43 24 c
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50 41 r
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Sacramento
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Washington
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president of Warner’s motion picture division in December, said he
wants DC to worry less about a
comprehensive strategy than
about making great films. “We
don’t want to limit the creativity
filmmakers can bring to the table
by saying these characters have to
come in a particular order and all
fit into the same universe,” he
said. DC is a financial pillar for
Warner Bros., CEO Kevin Tsujihara has said, in every area of its
business from movies to TV to
consumer products and videogames. Catching up to rival Marvel Entertainment’s big-screen
success is crucial.
Originally, “Justice League” was
expected to be Warner’s financial
anchor this year. But it has turned
out not to be critical. June’s “Wonder Woman”—which had been seen
as the riskier DC film—was a critical and commercial smash. “It,”
which cost $35 million to make and
grossed $671 million world-wide,
shocked Hollywood as it became a
massively profitable hit.
Last year, concerned that their
superhero pictures were becoming
too dark and violent, Warner leaders assigned comic-book
writer Geoff Johns and
production executive
Jon Berg to oversee the DC movie
slate and give it a
more optimistic
tone. Their first
task was a rewrite of “Justice
League,” done with
the “Batman v Superman” team of Zack Snyder and screenwriter Chris Terrio, to make the movie less serious
and more hopeful.
Mr. Tsujihara also made clear he
wanted “Justice League” to be under two hours, said a person close
to the movie. “Batman v Superman,” by contrast, ran 151 minutes.
Production ran from March
through October of 2016. When director Zack Snyder delivered his
cut early this year, studio executives felt he had made progress
with the lighter elements but that
more work was needed.
Joss Whedon, the “Buffy the
Vampire Slayer” creator and
writer/director of two “Avengers”
movies for Marvel, already was
working with Warner on a movie
about DC heroine Batgirl and was
given the “Justice League” rewrite.
When Mr. Snyder’s daughter died,
Mr. Whedon oversaw several
weeks of reshoots, with his predecessor’s endorsement, said Mr.
Emmerich.
Aficionados likely will be able
to pick out the clever, dialogueheavy scenes shot by Mr. Whedon
and the more stylish action
scenes shot by Mr. Snyder, but the
creative team has tried to meld
the two. “A lot of the work was
integrating the two tones and
making it feel like one movie,”
said a person close to the postproduction process. Early cuts
didn’t achieve that goal, but a test
screening of the final version recently earned audience scores
close to those of “Wonder
Woman,” said people who have
seen the data. Pre-release surveys
indicate it should open to more
than $100 million.
In “Justice League,” Ezra
Miller’s Flash, who is young, socially awkward, and hides his fear
through humor, is viewed at Warner as the movie’s breakout character. Mr. Emmerich said a solo
Flash film is a priority. “Aquaman” is scheduled for release in
December 2018, after which the
only other movie with a release
date is “Wonder Woman 2” in December 2019.
Messrs. Berg and Johns are developing what Mr. Emmerich described as a “super robust slate”
of other DC movies, including Mr.
Whedon’s “Batgirl,” a solo Batman
picture, the interstellar Green Lantern Corps, and two different takes
on the Joker.
53 Chow
59 Car bar
61 Rocky peak
25 Wanted poster
datum
62 Help with the
dishes
26 Ward off
Previous Puzzle’s Solution
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THE WALL STREET JOURNAL.
A12 | Tuesday, November 7, 2017
LIFE & ARTS
YOUR HEALTH | By Sumathi Reddy
COULD ADHD be a problem
caused by a disruption in circadian
rhythms?
It’s an area of research that some
experts say holds promise for developing new treatments for attention-deficit hyperactivity disorder.
Many adults and children diagnosed with ADHD report sleep
problems. Some have difficulty
falling asleep or staying asleep,
and some develop sleep apnea.
Sandra Kooij, an associate professor of psychiatry at VU University Medical Centre in Amsterdam,
says ADHD and sleep may be more
intertwined than previously
thought. She proposed a theory at
a conference in September that
ADHD may be caused by a lack of
regular circadian sleep.
Her research has found that 78%
of adults diagnosed with ADHD
have a delayed-sleep phase or circadian rhythm, which means they
are night owls and don’t get sleepy
or tired enough to fall asleep until
2 or 3 a.m. In the normal adult
population about 20 to 25% have
such a chronotype, or sleep-wake
rhythm, she says.
“Everyone who treats people
with ADHD recognizes the day and
night difficulties,” she says.
The researchers measured the
sleep hormone melatonin in the
saliva of 40 subjects and found
that its production began 105 minutes later in the ADHD group: at
11:15 p.m., compared with 9:30
p.m. in a control group. They also
found that the adults in the control group fell asleep on average
two hours after melatonin production began, compared with three
hours later for the ADHD group.
The hyperactivity that manifests
itself during the day for those with
ADHD may be a coping mechanism
for exhaustion, Dr. Kooij says.
In another 24-person study, Dr.
Kooij and colleagues found that
core body temperature and moving
patterns associated with sleep
were also delayed in people with
ADHD, compared with a control
group. The body’s core temperature drops during sleep, and movement slows.
Her patients will try going to
sleep early to compensate for lack
of sleep, then return to their usual
rhythm of going to bed late, which
results in a disrupted rhythm. “My
hypothesis is that because ADHD
and circadian sleep delay overlap
in around 80% of patients, they
might both be an expression of a
circadian-rhythm disorder,” she
says.
ADHD patients have low levels
of dopamine, a neurotransmitter in
the brain whose levels start increasing in the morning. Many
JON KRAUSE
A Link Between Sleep and ADHD
ADHD medications boost dopamine levels.
Dr. Kooij notes that ADHD patients also tend to suffer from seasonal affective disorder (SAD)
more often than others, meaning
they get more depressed in the
winter when days are shorter. And
they experience more fatigue and
weight gain.
Researchers are now studying
whether ADHD patients with a
delayed sleep phase can be
treated with light therapy, which
is often used to treat SAD. In
such treatments, patients are exposed to bright light for 30 minutes in the morning when they
wake up to reset their body’s internal clock.
“Even if it’s not curing ADHD
but only diminishing its severity, it
will be very, very helpful,” Dr.
Kooij says.
Robert Levitan, a professor of
psychiatry at the University of Toronto, says he was doing a genetic
study on SAD when he noticed
large numbers of people with SAD
also had ADHD.
‘It’s probably the ADHD
pathology that leads to a
sleep problem,’
one researcher says.
He subsequently sampled a
group of adults with ADHD and
found a very high number reported having SAD. “ADHD is
thought to be a disorder of understimulation of the brain, so you
treat it with stimulant medication,” he says. “Similarly, we use
light therapy to stimulate the
brain in SAD.”
He has used the same light
treatments used to treat SAD patients—30 minutes of ultravioletfiltered light exposure in the
morning—on those who also have
ADHD. He found that they subsequently performed better on neuropsychology tests. They completed more of their tasks
accurately and more quickly.
Other groups have replicated
the findings. More researchers are
showing interest in using light for
ADHD treatment, he says.
Dr. Levitan wouldn’t go so far as
to say that ADHD is a sleep disorder. But he does believe there’s a
consistent pattern in a large number of ADHD patients related to
sleep.
“It’s probably the ADHD pathology that leads to a sleep problem,”
he says.
Andrew Coogan, a behavioral
neuroscientist and head of the
psychology department at Maynooth University in Ireland, has
researched ADHD and sleep. He
examined levels of cortisol, a
stress hormone with ebbs and
flows over a 24-hour period in the
body controlled by the master circadian clock in our brains. Cortisol
levels generally peak on awakening. Dr. Coogan found it peaks
about 30 to 40 minutes later in
adults with ADHD, suggesting a
delay in the internal body clocks
of those patients.
Dr. Coogan says that genes
aside, adults with ADHD may also
be affected by medications they
are taking, which can impact sleep.
The interplay between ADHD
and sleep in children is trickier,
because their sleep patterns and
circadian rhythms change as they
grow. “In adults, sleep is a little
bit more set,” Dr. Coogan says.
EXHIBITION REVIEW
FROM LEFT: THE INTERNATIONAL MUSEUM OF WORLD WAR II, BOSTON; EVERETT COLLECTION
COMMEMORATING
A BATTLE
AND BOGIE
BY MARK YOST
Natick, Mass.
THERE WILL BE many retrospectives marking the 75th anniversary
of “Casablanca,” the November
1942 motion picture of World War
II intrigue starring Humphrey Bogart and Ingrid Bergman. But none
will integrate the actual battle of
Casablanca, Nov. 8-16, 1942, quite
like “The Real and Reel Casablanca,” a new exhibit opening
Nov. 8 and running through Feb. 3,
2018 at the International Museum
of World War II.
This special exhibit consists of
four large display cases, three of
which feature maps, telegrams,
posters, letters, propaganda leaflets,
photos and weapons from the brief
but strategically important Operation Torch, the joint British-American attack on North Africa that
would be the largest amphibious
operation in history to date and included the capture of Casablanca,
Morocco. The fourth display case,
along with posters and stills on the
walls from the museum’s collection,
is dedicated to the film.
With 100,000 troops and more
than 800 ships, Operation Torch
was mostly an American operation
with minimal naval and air support from the British. This was
necessary, the exhibit explains, because in July 1940 Churchill had
ordered the sinking of the French
fleet in Algeria, worried that the
Germans would use the ships
against Britain. The British naval
Aerial leaflet dropped over Casablanca, left, and Humphrey Bogart and Peter Lorre in ‘Casablanca’ (1942), above
attack, while understandable in
the broader context of the war, became a rallying point for anti-British, pro-French partisans in North
Africa. On display is one of the
propaganda posters, showing desperate Frenchmen drowning during the attack.
Also here is an Oct. 24, 1942,
Naval Intelligence report on a possible security leak at a Naval Hospital in Portsmouth, Va. A young
ensign who was a patient told his
wife and another visitor, the report
states, that “A large force, composed of three Task Groups, would
be leaving Norfolk within short
time for the North Coast of Africa.”
Secrecy was important, the exhibit explains, because the Americans were unsure whether Vichy
France, which had collaborated
with the Germans to save monuments and lives, would greet them
as liberators or invaders. On display here are propaganda leaflets
in French and Arabic with images
of the American flag and President Roosevelt, dropped over Casablanca, telling Moroccans that
the Americans are their allies,
there only to wage war against
the Germans.
The second display case is dedicated almost entirely to Gen.
George S. Patton Jr., then a two-star
general relatively unknown to the
American public. Patton commanded some 33,000 ground troops
around Casablanca, and kept some
of the exhibit’s most impressive artifacts, including a map of the invasion beaches with Patton’s handwritten notations. There’s also a
copy of the telegram Patton received at the start of the landings
with the code words “Play Ball.”
Perhaps the most impressive
piece here is a carbon copy of the
Nov. 10, 1942, letter that Patton
sent to the sultan of Morocco, two
days after the landings, pleading
for as little bloodshed as possible.
But Patton minced no words:
“Your majesty must realize the
painful sentiments which I entertain in contemplating the necessity
of shedding the blood of my
friends, but the stern necessity of
war demands that if the French
armed forces continue to demonstrate the hostility they have already shown, it is my military duty
and purpose to attack by air, by
sea, and by land, with the utmost
violence known to modern war.”
Patton’s words must have been
well-received, because also here
are the ornamental daggers presented to Patton by the sultan.
A third collection of artifacts is
dedicated to the Casablanca Conference, the January 1943 confab at
the Anfa Hotel in Casablanca, which
featured Churchill and Roosevelt
and all their military commanders,
gathered to plan the next phase of
the war. The museum has a signed
photo of the participants, as well as
Churchill’s early manuscript for his
memoir “The Second World War.”
Handwritten in the margins: “All
our great affairs marched forward
together…’the End of the Beginning’
was at hand…”
Film memorabilia includes a
copy of the script, eight colorized
stills, and a prop chair from Rick’s
Café Americain. But most impressive is a photo of Bogart, as saloon-keeper Rick Blaine, playing
chess across from Peter Lorre. A
nearby panel explains that the
chess board seen in the film was a
real game Bogart was playing by
mail with Irving Kovner of Brooklyn, N.Y. Bogart suggested to director Michael Curtiz that showing
Rick playing chess would add
depth to the character. That’s an
exquisite detail that both Bogart
and Patton, the two main actors of
this fine exhibit, could drink to.
The Real and Reel Casablanca;
American Troops Enter World War
II, Landing in North Africa
The International Museum of World
War II, Nov. 8-Feb. 3, 2018
Mr. Yost is a writer in Houston.
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.
Tuesday, November 7, 2017 | A13
LIFE & ARTS
BONDS | By Elizabeth Bernstein
To Win a Negotiation? Get Mad
New studies show anger can be highly motivating in competition
How to Make
Anger Work to
Your Advantage
Stay in control. Remember, we’re
talking about measured, well-articulated anger. Yelling, name-calling, swearing and accusing are
not likely to be received well. Express your displeasure in a calm
and controlled manner.
Pick your timing. Gearing up for
a negotiation or competition? It’s
best to get mad right before or
during it, says Maurice Schweitzer, a professor at the University
of Pennsylvania’s Wharton
School, who has studied how anger can benefit a negotiation. Becoming angry too far in advance
will distract and consume you, Dr.
Schweitzer says. Distract yourself
in the meantime.
Focus on your objective. The
point isn’t simply to express your
anger—to yell at your neighbor
because his dog barks incessantly. That isn’t beneficial. You
want to decide what will make
the situation better and use your
anger to help you reach that
goal.
Believe it will work. Research
shows that expectations matter.
If you expect your anger to benefit you, you will be more likely to
behave confidently and assertively and to make stronger arguments for your case, says Dr.
Tamir. If you don’t believe it will
work, you should avoid it.
But anger is dangerous, too. It can harm our
relationships if we aren’t
careful in how we express it.
It’s distracting, consuming and can
narrow our focus. And sometimes
it’s not even warranted.
And there are some situations
when anger just isn’t useful. While
it can boost persistence, it may
drain your coordination and creativity because it can drain you
emotionally. So you’ll want to try
and avoid it if you’re golfing or
writing a novel.
Maya Tamir, a psychology professor at the Hebrew University in
Jerusalem, has
been studying
how people boost anger for more than a decade. Her recent research shows
that our expectations influence the
outcome. In two studies, published
as part of a larger series in the
journal “Emotion” in July 2017, Dr.
Tamir and a colleague had participants listen to either heavy metal
or calming instrumental music.
Some people were told that anger
would help them perform better
on a task they were about to begin, while others were told that
anger would harm their performance. The participants in the
first study then were asked to negotiate with another person for
money, and those in the second
study played an aggressive computer game.
The results for both studies were
similar: The angry participants who
listened to the heavy-metal music
performed better: They made more
money in the negotiation or killed
more enemies in the computer
game—but only when they expected
their anger to help them.
Avoid anger if you want to be
creative. “Anger narrows our focus,” Dr. Schweitzer says. “It
doesn’t allow us to use our
minds in a free-flowing way and
to think expansively.” If you’re
trying to accomplish a creative
task or think big, try to minimize
your anger by distracting yourself. Read a funny book,
watch a comedy,
go exercise.
Write to Elizabeth Bernstein at
elizabeth.bernstein@wsj.com or
follow her on Facebook, Twitter or
Instagram at EBernsteinWSJ.
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JONATHAN CARLSON (2)
ARE YOU MAD? Maybe you
should be.
We spend a lot of time trying to
regulate our emotions. Most often,
we seek to increase positive feelings, such as happiness and joy,
and diminish negative ones, such
as sadness or irritation.
But anger—what we feel when
we think something is unjust and
we believe we have the ability to
change it—can be highly motivating in certain circumstances. It can
make us take action to create
change, and even help others in
some cases. And so psychologists
say it’s sometimes beneficial to
boost it. We just have to do it very
carefully.
In four yet-to-be-published
studies, researchers at the University of Pennsylvania’s Wharton
School looked at the role of anger
in negotiations and competition.
They found that people often seek
to boost their anger before they
hope to win.
In three of the studies, the researchers told half the participants
that they would take part in a negotiation, and the other half that
they would just chat with another
person. In the fourth study, half
the participants were told they
were going to play a videogame
against an opponent and the other
half were told that they would play
a financial computer game with a
partner as a teammate. Then all
participants were told to choose
between two videos to watch: a
clip of Robin Williams performing
standup or a scene from the movie
“Witness,” where Harrison Ford’s
character gets harassed.
The participants who were told
they were going to negotiate or
play the videogame against an opponent picked the upsetting clip
much more often than those who
were told they were simply going
to talk to another person or play
as part of a team.
“People intuitively chose to become angry,” says Maurice
Schweitzer, a professor at Wharton. “They believed they would become more effective competitors.”
They were right. Anger is what
psychologists call an “approach”
emotion—it makes us move toward or attack something. It can
help us tackle problems, such as
when we get mad about something
political and rally to a cause. And
getting mad before a negotiation,
competition or sporting event can
fire us up. That’s why coaches
trash talk rivals.
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 | Tuesday, November 7, 2017
SPORTS
COLLEGE FOOTBALL
Coming to Campus: The $100,000 Hotel Room
BY LAINE HIGGINS
Texas A&M mascot Reveille, above,
runs onto Kyle Field. At left, a
rendering of the hotel-conference
center slated to open in 2018.
T-B: JOHN GLASER/CSM/ZUMA PRESS; TEXAS A&M HOTEL & CONFERENCE CENTER
scheduled to be ready for the 2018
home opener against Northwestern State, will include two penthouses, 11 luxury suites, and 237
standard rooms, according to
school officials. Texas A&M this
year is a disappointing 5-4, leading to speculation that coach
Kevin Sumlin may not be on the
sideline in 2018.
The project aims to address an
issue common to college towns
around the country: the scarcity of
hotel rooms on football game days.
It is routine for room rates to triple or quadruple on football week-
ends at many schools. In College
Station, a city of around 100,000
residents about a 90-minute drive
from Houston, the problem became even more acute after the
university renovated Kyle Field to
raise the capacity to 102,733, starting in 2016.
Last weekend, when the Aggies
hosted Auburn, a room at the upscale George Hotel in College Station was going for $409.
The Aggies took inspiration for
the hotel from rival LSU, whose
Cook Hotel started offering alumni
lifetime rights to reserve rooms at
THE COUNT
SOCCER
MAN CITY LOOKS UNSTOPPABLE
GREATEST SHOW ON TURF, 2.0?
On the Offensive
BY JOSHUA ROBINSON
Largest year over year points per
game increases:
TEAM
Rams
Rams
Colts
Chiefs
Raiders
Panthers
Patriots
Redskins
Vikings
Falcons
SEASONS
DIFF.
2016-2017
1998-1999
1974-1975
2012-2013
2009-2010
2010-2011
2006-2007
1982-1983
1997-1998
2015-2016
+18.9
+15.1
+14.6
+13.7
+13.3
+13.1
+12.7
+12.7
+12.7
+12.6
Source: Stats LLC; WSJ
scratching are the cruxes of this
evolution. Watkins is starting to
look like the big-play threat the
Rams have lacked for years, highlighted by his 67-yard touchdown
catch in Sunday’s 51-17 win against
the Giants.
Andrew Whitworth, the 35-yearold offensive tackle who they
signed this offseason, has shored
up one of the league’s worst offensive lines to give Goff and Gurley
the time and space they need. The
Rams gave up 49 sacks last year,
second most in the NFL, and this
year they have allowed only 10—
the second fewest.
There’s really only one
team that can understand
such a wild turnaround. In 1999, the
“Greatest Show
on Turf” involved
an offense
that, at the
time, had
the biggest offensive
leap (15.1
ppg increase
over 1998) in
league history.
That team was the
St. Louis Rams. And
the season ended with
the team’s first—and
only—Super Bowl win.
—Andrew Beaton
JULIO CORTEZ/ASSOCIATED PRESS
The Los Angeles Rams made
some bold bets this offseason.
They hired the youngest coach in
NFL history. They shelled out big
money for a veteran offensive
tackle who was four years older
than that coach. And then they
traded from their already-depleted
draft stores for wide receiver
Sammy Watkins.
It was a curious set of moves
for a team that went 4-12 with the
worst offense in the NFL. And yet
the result isn’t just stunning. It’s
unprecedented. The Rams are 6-2
and averaging 32.9 points per
game. That’s not only the most in
the NFL this year. It’s the biggest
single-season offensive leap in the
Super Bowl era.
But not even the Rams’ 18.9
points-per-game increase from last
year captures how bewildering this
is. Some context: Their 14.0 points
per game last year weren’t just the
fewest in the NFL, it left them light
years behind the Browns, who had
the league’s second worst offense
at 16.5 points per game. No team
had scored worse since 2012.
Now all the team’s questions
from a year ago are its biggest
strengths. The Rams have gone
from having disastrous coaching
situation to one of the best, with
31-year-old Sean McVay a
favorite for Coach of the
Year.
Jared Goff (pictured),
the quarterback who Los
Angeles had mortgaged
its future to get but
looked like a flop,
has emerged as a
star. Todd Gurley,
the running back
who broke out
as a rookie
in 2015
and fell
apart a
year ago,
is back on
track as
one of the
league’s most dangerous weapons.
And the
moves that once
looked head
price points of $25,000, $50,000 or
$100,000 when it opened in 2011.
After Texas A&M announced the
details of its program, LSU doubled the cost and shortened its license from perpetuity to 10 years,
says John Grubb, Cook Hotel’s vice
president of hotel and conference
operations.
A handful of other schools
within the Southeastern Conference offer similar perks for donors
at campus-affiliated hotels, including Alabama and Ole Miss.
“In college sports, it’s kind of an
arms race,” says Phillip Ray, A&M’s
vice chancellor of business affairs.
The price tag at Texas A&M sets
its program apart. The average
yearly cost of an Aggie GRO will
exceed that of luxury suites in
most college football stadiums and
personal seat licenses in the NFL.
Almost 200 miles north, at AT&T
London
PEP GUARDIOLA was barely six
months into his first season as
Manchester City manager last season when the high-minded world
of soccer Twitter and British tabloids first labeled him a disaster.
The critics’ preferred nickname for
the man—one of the most decorated, most influential coaches of
the modern game—was Fraudiola.
Guardiola finishing the year in
third place, without a trophy for
the first time in his career despite
spending more than $200 million,
was all the proof his detractors
needed. That is, until club soccer’s
most basic rule kicked in: brilliant
manager plus unlimited funds for
players plus just a little time almost always equals a contender.
Which brings us to Guardiola’s
second season in England. Six
months and another $260 million
worth of players later, it’s barely
November and Manchester City
seems a lock for a championship.
Between Sunday’s 3-1 win over
Arsenal and second-place Manchester United’s 1-0 defeat at Chelsea, City has an eight-point lead
atop the standings. The gap between City and United is now the
same as the gap between United
and Huddersfield Town in 10th.
“We are worried,” Manchester
United manager Jose Mourinho
said on Sunday, but “there are 18
teams more worried than us, because we are second.”
Premier League front-runners
have thrown away larger leads
later in the season. But the 2017
version of Manchester City is already in a class of its own. The
club’s 31 points from 11 games,
earned with 10 victories and a
draw, are the most anyone has
posted at this stage of a season
since the Premier League began in
1992. Guardiola’s side has been so
overwhelming—averaging 3.5 goals
per game and conceding just 0.6.
For teams trying to stop City,
there seems to be no right answer
when three of the Premier
League’s top 10 scorers are in the
lineup. Do you beef up coverage on
OLI SCARFF/AGENCE FRANCE-PRESSE/GETTY IMAGES
TEXAS A&M University on
Thursday will hold a lottery in
which the winners walk away with
an unusual—and very expensive—
prize: The right to pay $100,000
for a hotel reservation.
The six-figure price tag is
largely based on a single amenity:
The yet-to-be-built hotel will sit
across the street—96 feet away, to
be exact—from Kyle Field, where
the Aggie football team plays six
or seven games each year.
Sound absurd? Thus far more
than 750 Texas A&M alumni have
expressed interest in the program,
though not all of them have put
down the required refundable
$5,000 deposit as of Monday. Less
than a third of that number will
win. For sleeping quarters on the
hotel’s top floor—13 suites and 36
standard rooms—the deposit was
$10,000. Those reservations, where
the starting point for bids ranges
from $125,000 to $475,000, will be
auctioned off on Tuesday.
The clamor for the “guaranteed
room options,” as they are called,
is possibly the apogee of college
efforts to wring extra revenue
from well-heeled alumni on football game days. Already, most major universities require mandatory
donations, usually thousands of
dollars, for fans wanting premium
season tickets. Some schools sell
licenses for primo parking spaces.
“These folks are working every
single angle that they can possibly
think of to squeeze more juice out
of the athletic machine,” says John
Gerdy, a former associate commissioner of the Southeastern Conference and author of several books
on collegiate athletic reform. “On
one hand, it’s brilliant.”
The guaranteed room options,
or GROs, work much like the personal seat licenses now offered by
many professional sports teams—
only for hotel rooms rather than
season tickets. At A&M, the holders will make a one-time, tax-deductible $100,000 donation to the
university in exchange for the
right to reserve a specific room on
any day for the next 10 years. They
also get a plaque engraved with
their names on the door.
The hotel and conference center,
Stadium in Arlington, the Dallas
Cowboys charge $262,500 for a
30-year license on front-row seats
at the 50-yard line.
To hear Jack Lafield tell it, the
project came about partly at his
instigation. The Dallas oilman, a
1972 A&M graduate and current
chairman of Caiman Energy, said
he complained to Texas A&M
chancellor John Sharp on a hunting trip several years ago how difficult it was to find hotel rooms on
football game days, especially
since kickoff times often fluctuate
based on television schedules.
That makes it difficult to plan
trips in advance. Lafield told Sharp
he’d be willing to pay good money
to solve that hassle.
“The bottom line is, he called
me a few years back and said, ‘Remember that idea? I think we’re
gonna go ahead and build one on
campus,” Lafield recalls. “I said,
‘Count me in!’”
Lafield, who already put down
the $5,000 deposit, said he is now
pressuring the university to make
the facility dog-friendly, as his
wife likes to bring their miniature
labradoodle, Camo, on game days.
If all the options sell as expected, the GRO program will raise
more than $28.5 million for Texas
A&M, adding to the windfall already generated by the football
program. In the 2015-16 fiscal year,
for example, Texas A&M raised
$38.5 million from season ticket
donations at Kyle Field. That figure almost reached the $42.2 million raised from traditional ticket
sales for all of the university’s
sports teams.
Dr. David Ridpath, a professor
of sports administration at Ohio
University, said around the country there is a growing gap between
the haves and have-nots on game
days. He said, only partly kidding,
that he could envision a day when
wealthy fans will be able to purchase licenses on bathroom stalls.
“We’re really out-pricing the fan,”
Ridpath says.
Lafield, though, says raising
money this way is better than
A&M issuing debt of some kind.
And at the end of the day, he believes, the hotel will be another
point of pride for all Aggies.
“You like to see it and your
school be number one,” he says.
Manchester City’s Sergio Aguero, center, and Leroy Sané, right, celebrate.
Sergio Aguero if it means freeing
up Raheem Sterling or Leroy
Sané? Can you even cut off the
supply to them when the team is
quarterbacked by two of the best
passers in Europe in Kevin de
Bruyne and David Silva?
No one has figured it out yet,
leaving City as the only team in
the league to average more than 10
shots per game from inside the
penalty area. Opponents are forced
to play on the counter, because the
club also averages 65.4% possession, the highest in Europe.
In other words, Guardiola-ball,
the possession-based soccer he developed at Barcelona and refined
at Bayern Munich, is alive and well
and ruining the season for everyone else in the Premier League.
“The way they have started, the
way they are on a run, the quality
they have, they will be difficult to
stop,” Arsenal manager Arsene
Wenger said on Sunday.
Especially when, one by one, the
other title contenders found ways
to spot City points early on.
Defending champion Chelsea
had already lost three games by
mid-October. Tottenham dropped
seven points in its first three
games at its temporary home of
Wembley Stadium. And Liverpool
suddenly discovered it had the
leakiest defense in the top eight.
United, meanwhile, matched
City’s pace through September before its momentum ground to a
halt when Mourinho deployed a
particularly defensive approach for
a 0-0 draw at Liverpool in mid-October. His side has since lost twice
in three league matches.
The over-heated comparisons to
historic Premier League teams of
the past have already begun. City
is comfortably on pace to beat the
record points total of 95, posted
by Mourinho’s Chelsea in 2005.
Unless someone figures out how to
defuse its attacking weapons, City
could also take aim at Arsenal’s
2003-04 undefeated season. And if
its form carries over into other
competitions, could it even match
Manchester United’s 1999 “treble”
by winning the league, FA Cup and
Champions League?
“We are still only in November
and it is too early to talk of winning
the league, never mind anything
else,” Guardiola said last week. “It
would be a big mistake.”
But as City runs away with the
league, the club’s attempt at a treble may be the only intrigue left.
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | A15
OPINION
How Dare the GOP Pray for Texas?
Imagine you
are a sane
Democrat who
recognizes
that a big reason
Hillary
Clinton lost to
MAIN
Donald Trump
STREET
in November
By William
was that she
McGurn
alienated
many members of the white working
class. In the year since, you
have been working on your fellow Democrats to change their
message in hopes of wooing
these voters back into the fold.
Then a gunman opens fire at a
Baptist church in Texas, and
suddenly progressives are in
full deplorable mode, attacking
anyone who dares offer . . .
prayers.
This is the extraordinary
turn of events since Devin Patrick Kelley turned his rifle on
the innocent churchgoers inside First Baptist Church in
Sutherland Springs, Texas.
What provoked the left, if it
can really be called a provocation, was President Trump’s
statement from Japan Sunday,
in which he said that “our
thoughts and prayers are with
the victims and families of today’s horrible and murderous
attack.” House Speaker Paul
Ryan likewise set off the furies
by tweeting, “The people of
Sutherland Springs need our
prayers right now.”
The responses have to be
read to be believed. Here’s one
of the more charming: “The
murdered victims were in a
church,” tweeted actor Wil
Wheaton to Mr. Ryan. “If
prayers did anything, they’d
still be alive, you worthless
sack of [expletive].”
Sen. Elizabeth Warren
chose less inflammatory wording for her own tweet.
“Thoughts & prayers are not
enough, GOP,” wrote the Massachusetts Democrat. “We
must end this violence. We
must stop these tragedies.
People are dying while you
wait.” In short, if you are a Republican praying instead of
passing gun control, you’ve got
blood on your hands.
The Huffington Post devoted an entire piece to the
phenomenon, under the headline “People Fed Up With
‘Thoughts and Prayers’ Demand Action After Texas
Church Massacre.” It featured
tweets from celebrities and
gun-control advocates who believe they had discovered
something big: Prayers aren’t
always answered.
Here’s how these new theologians put it. Keith Olbermann: “ ‘Thoughts and prayers’
again, @realDonaldTrump, idiot? These people were in
CHURCH. They WERE praying.”
Actress Marina Sirtis: “To all
those asking for thoughts and
prayers for the victims in
#churchshooting, it seems that
your direct line to God is not
working.” Or MSNBC’s Joy
Reid: “Remember when Jesus
of Nazareth came upon thousands of hungry people, and
rather than feeding them,
thought and prayed?”
The smugness is illuminating in three important ways.
First and most obvious, progressives simply cannot contain
their distaste toward symbols
and beliefs important to ordinary Americans. Until Sunday
this columnist thought it impossible to match the obtuseness of millionaire athletes
showing disrespect for the national anthem and the fans who
pay their salaries. But give
credit where it’s due: the
thoughts-and-prayers police
make the NFL protesters look
like Gandhis.
It is now deplorable
to offer ‘thoughts
and prayers’ for
the First Baptist
church families.
Second, those doing the
taunting apparently have no
idea how childish their understanding of prayer is. As the
families that come each week
to the First Baptist Church appreciate, prayer is not a magic
talisman against suffering. In a
faith that commands its adherents to pick up their crosses,
prayer is a way to praise the
Almighty and, when necessary,
ask for courage and resolve to
do the right thing.
Finally, isn’t it curious how
the same folks who blasted Mr.
Trump for politicizing the recent attack in Manhattan by an
Islamic terrorist are now denouncing prayer because of a
political preference?
They believe the answer is
federal gun control, and this is
their right. But it’s hard not to
notice they believe this with
an absolute faith that seems
immune to reason or evidence
to the contrary—a secular
faith even the most fervent
Christian might envy. Or that
in their disdain for prayer they
ironically appear to have more
in common with the shooter
than his victims.
Surely it is possible to make
the case for gun control without mocking prayer. But as
with Mrs. Clinton and her infamous remarks about Trump
voters—not only deplorable
but irredeemable—those denouncing Messrs. Trump and
Ryan’s offer of prayers don’t
really want an argument. They
want to express their feelings
of moral superiority.
Never mind, too, that Barack Obama offered his
“thoughts and prayers” as often as any president, such as
after a 2013 shooting in
Washington when he said,
“We send our thoughts and
prayers to all at the Navy Yard
who’ve been touched by this
tragedy.” No one complained
then, either because they
were comfortable that Mr.
Obama didn’t really believe in
prayer or his faith in gun control was absolute.
Over the next few weeks,
the surviving members of the
First Baptist Church in Sutherland Springs will wrap their
fallen in love and lay them to
rest. What these survivors may
individually believe about gun
control is anyone’s guess. But
it’s hard to believe that the
way to their hearts is by mocking offers of prayer, even from
Republicans.
Write to mcgurn@wsj.com.
Trump, ISIS and the Crisis of Meaning
By Eliora Katz
T
hree years and many beheadings after Abu Bakr
al-Baghdadi declared a
caliphate, Americans are rejoicing in its demise. “With the
liberation of ISIS’s capital and
the vast majority of its territory,” President Trump said in
a statement, “the end of the
ISIS caliphate is in sight.”
But does the fall of Raqqa
really mean the fall of Islamic
State? One needs merely a
sharp object—or as we saw
last week, a rented truck—and
a nearby group of “infidels” to
be an ISIS soldier.
After the Oct. 31 New York
attack, Mr. Trump tweeted:
“We must not allow ISIS to return, or enter, our country after defeating them in the Middle East and elsewhere.
Enough!” But ISIS’ most important battlefield is not in the
Levant; it is online, in hearts
and minds. ISIS’ power comes
from ideas, not territory.
The threat is from within as
well as without. Sayfullo
Saipov, the Uber driver who allegedly murdered eight in ISIS’
name, had been living an unremarkable life in the U.S. for
seven years. Thousands of
young Muslims have left Europe and the U.S. for Syria and
Iraq to answer Mr. Baghdadi’s
call. Seduced via social media,
young men and women, some
of them converts, are also taking up arms in the West, or
leaving their homes in Chicago,
London and Paris, to live, and
perhaps die, for a cause.
The Obama administration
argued that young people join
ISIS because of poor economic
prospects. “We can work with
countries around the world to
help improve their governance,” State Department
spokeswoman Marie Harf said
in 2015. “We can help them
When politics limits
itself to the material,
people seek spiritual
purpose elsewhere.
build their economies so they
can have job opportunities for
these people.” That’s myopic.
Physicians, computer scientists
and star high-school students
have been radicalized, too.
People are motivated by meaning more than money.
While Western states do
(or used to) provide good social services, economic opportunity and consumer goods,
they are increasingly indifferent to questions of meaning—
to principles worth living, and
perhaps dying, for. In the U.S.
we are proud of our freedom—but freedom to do and
care for what? For a small but
not negligible number of
young people, answering a
call to build a caliphate, allegedly based on the dictums of a
holy book, will seem a more
genuine choice than ambition
or consumerism.
Mr. Trump should know this.
His campaign was a kind of call
for meaning. Whatever the
merits of Mr. Trump’s positions,
he framed his views on trade,
immigration and foreign policy
in terms of America’s national
identity: “Make America Great
Again.” Hillary Clinton emphasized technical solutions. Can
anyone remember her slogans,
her rallying cries? There was
“breaking down barriers” and
“fighting for us” and “I’m with
her.” None stuck. She ended on
“stronger together.” Together
with what or whom?
It’s not a new problem. In
Germany’s Weimar era, the jurist Carl Schmitt argued that
political liberalism, in deriving
supreme political value from
individual liberty, gave rise to
a paradox he called “depoliticization.” For Schmitt, politics
boiled down to disputes over
fundamental principles. A state
that enshrines individual freedom must allow citizens to
pursue their private ideas of
the good, as the state itself is
barred from laying claim on
transcendent values. Liberalism thereby shrinks politics to
a series of technical arguments
over the most efficient means
for achieving material ends.
For an example of depoliticization, consider Mrs. Clinton’s “basket of deplorables”
remarks. Half of Mr. Trump’s
supporters, she said, “are irredeemable, but thankfully
they are not America.” The
other half “are people who
feel that the government has
let them down, the economy
has let them down, nobody
cares about them, nobody
worries about what happens
to their lives and their futures, and they’re just desperate for change.” The implication is that the only
legitimate basis of political
disagreement is over the
means of attaining prosperity
and material security. The
Trump movement perceived
that political differences run
deeper—that they are civilizational and cultural.
The search for meaning can
lead in monstrous directions—
as it does for ISIS recruits, and
as it did for Carl Schmitt, who
would become known as “the
crown jurist of the Third
Reich.” That danger is all the
more reason to regard the
matter seriously.
The Trump presidency, the
European Union’s crisis and
the threat of ISIS all, in very
different ways, point to a
yearning for a political approach to life’s fundamental
questions rather than a merely
technocratic one. By all means,
celebrate setbacks to the caliphate. But recognize that in
the absence of good answers
about what we’re fighting for
at home, some people will be
attracted to very bad ones.
Ms. Katz is a Robert L. Bartley Fellow at the Journal.
Please Pass the SALT
By Claudia Tenney
T
ax reform is the key to
unlocking the American
dream for millions of
people. The Tax Cuts and Jobs
Act, released last week, would
raise the standard deduction
for families from $12,700 to
$24,000, increase the Child
Tax Credit from $1,000 to
$1,600, and cut the tax rate on
workers with low and middle
incomes.
Each of these provisions is
aimed squarely at providing
necessary and overdue relief.
Today’s tax code is not only outdated and onerous, it favors the
wealthy and well connected.
But I worry about the way
this bill erodes the deduction
for state and local taxes, which
has been in place since 1913.
Although the Tax Cuts and
Jobs Act would let Americans
continue deducting up to
$10,000 of property taxes, it
would eliminate the deduction
for state income taxes.
This would compound the already excruciating financial
burden that my state’s lawmakers have placed on New Yorkers.
Politicians in Albany have internalized the state motto, “ever
upward,” and applied it to
taxes, with little regard to what
families and small businesses
can afford. New York’s many
The deduction is
New Yorkers’ only
relief from Albany.
taxes—income, property, sales
and excise—are among the
highest in the nation, and New
York is often ranked the least
tax- friendly state.
Albany has also increased
the weight of local taxes by
imposing one unfunded mandate after another on local
governments. Nowhere is this
more apparent than in the
property taxes my constituents pay. A 2013 study from
the Brookings Tax Policy Center ranked more than 3,000
counties by their ratio of
property tax to home value.
All eight of the counties I represent in upstate New York
are in the top 36 nationwide.
Cortland County comes in at
No. 6 and Oswego County at
No. 15. But these areas are far
from wealthy. To the contrary,
average family incomes are well
below the national average. My
constituents are struggling to
pay for Albany’s litany of costly
rules and regulations.
The ability to deduct state
and local taxes on their federal
return matters because these
New Yorkers cannot count on
Albany to protect them. While
families are falling behind or
leaving the state, spendthrift
liberals in the capital continue
to waste money on boondoggles like the Buffalo Billion,
Gov. Andrew Cuomo’s costly
effort to revitalize Western
New York’s economy, which
has so far led to nine federal
corruption charges; Start-Up
NY, the governor’s signature
job-creation program, which
has produced a tiny fraction of
the jobs it promised despite a
$53 million advertising budget;
and “film tax credit” giveaways to Hollywood elites
worth hundreds of millions of
dollars.
Each year, taxpayers fund
Mr. Cuomo’s economic-development and job-creation programs to the tune of nearly $8
billion. Although New York
spends more than any other
state on these programs, we
have little to show in return
except record out-migration
of jobs and people. Much of
this spending is corporate
welfare designed to curry favor with Mr. Cuomo’s donor
class at the expense of the
taxpayers.
The bad habits in Albany
won’t change. That’s why it’s
vital to retain the SALT deduction, which for now will remain
the taxpayers’ only source of
significant relief.
Congress has a historic opportunity to pass a comprehensive tax reform that would
truly level the playing field for
American families and small
businesses. Then the onus will
be on Democrats in Albany to
get on board, put taxpayers
first, and make New York competitive again.
Ms. Tenney, a Republican, is
a U.S. representative from New
York.
BOOKSHELF | By Douglas Smith
The Man
At the Vanguard
Lenin
By Victor Sebestyen
(Pantheon, 569 pages, $35)
H
istorians used to debate whether Stalin had been Lenin’s
rightful heir or an evil usurper. Following the collapse of
the Soviet Union and the opening of archives in Russia
during the 1990s, the debates stopped. Once the true Lenin had
been exposed, no one in good conscience could deny the
similarities between the two dictators. Dmitri Volkogonov’s
“Lenin: A New Biography” (1994), the first work based on
access to evidence in once-closed archives, exploded like a
bomb, with its horrifying quotations of Lenin’s calls to hang,
shoot and destroy anyone who stood in the Bolsheviks’ way.
Two years later a collection of hitherto-secret documents under
the title “The Unknown Lenin,” edited by the eminent historian
Richard Pipes, appeared and confirmed Volkogonov’s dark portrait. And Robert Service, arguably the world’s greatest authority on Lenin, came to a similar conclusion in his meticulously
researched studies of the man published around the same time.
Lenin, we now know for certain, spawned Stalin.
Now, to coincide with the occasion of the centenary of
the Bolshevik coup,
comes an accessible, fair
and marvelously written
biography that reinforces
what we have learned in
the past three decades. Victor Sebestyen, a Hungarianborn journalist and historian, signals his view of his
subject in the book’s punchy
subtitle: “The Man, the Dictator, and the Master of Terror.” For anyone interested in
an introduction to the world’s
greatest revolutionary that
draws on the latest research, Mr.
Sebestyen’s “Lenin” would be the place
to start.
The man who dedicated his life to destroying the czarist
regime was one of its favored sons. Like other Russian
radicals before him—the Decembrists, Mikhail Bakunin,
Prince Pyotr Kropotkin—Vladimir Ulyanov was born into
gentile luxury. He grew up in a manor house in the
provinces, his days spent playing out of doors, fishing, hunting, flying kites. He liked to have fun but was a serious child
and showed an early love of reading.
This idyll came to an end when Vladimir’s brother Alexander was hanged in 1887 for his participation in a plot on
the life of Czar Alexander III. Vladimir, then 17, had worshiped Alexander, but worse than the loss of his brother
was the reaction of polite society. Henceforth, it shunned
the Ulyanov family, as friends turned their backs and
stopped visiting. “The bourgeois . . . they will always be
traitors and cowards,” he would write later. Under his nom
du guerre Lenin, it was a maxim he would repeat throughout his life.
This double tragedy of his childhood, according to Mr.
Sebestyen, politicized Lenin and turned him onto the path
of revolutionary struggle. “He was driven by emotion as
much as by ideology,” the author writes. “His thirst for
revenge after his elder brother was executed . . . motivated
Lenin as powerfully as did his belief in Marx’s theory of surplus value.” Indeed, there’s little about Lenin’s writings or
his theories in Mr. Sebestyen’s book. This is very much an
intimate portrait, squarely focused on Lenin the man.
In his quest to overthrow the czar, Lenin was
motivated both by Marxist theory and by
revenge for the execution of his older brother.
If, after the death of his brother, Lenin became withdrawn
and intensely focused, he was never the cool and selfcontrolled figure of later mythology. Lenin was so maniacally
obsessed with the question of revolution that, at several
points in his life, he teetered on the verge of a nervous breakdown. The person who kept him whole and stood watch over
his volatile temperament was Nadya Krupskaya, Lenin’s
dutiful wife of 25 years. They shared a commitment to radical
politics, and Lenin proposed to Nadya in a letter penned in invisible ink—Mr. Sebestyen calls this “the ultimate romantic
gesture” for young revolutionaries.
Much of their life together was spent in exile in western
Europe, theorizing and arguing with other revolutionaries.
When the pressure became too great, Nadya would take
Lenin hiking up in the Swiss alps or bicycling in the woods
outside Paris. Lenin became a fanatic cyclist and was
forever cleaning his bike and checking to see that the chain
was well-oiled. (Mr. Sebestyen’s book is full of little gems
like this.) But the intellectual battles of the exiles were
ruthless, thanks largely to Lenin’s win-at-all-costs attitude.
Though he could be kind and courteous when he wanted,
Lenin had to win every argument, regardless of how insignificant the point of contention. Yuli Martov, leader of the
Mensheviks, once remarked he hoped there was no afterlife:
“Do you think it would be fun to continue arguing with
Lenin even after death and in the hereafter listening to his
gutter abuse?”
Lenin’s belligerent style that aimed to destroy his
opponent as much as his ideas would leave its mark on
the Bolshevik party. From the moment of the Bolshevik
coup in October 1917, he showed not the least hesitation in
crushing any threat to his party’s hold on power. A
stifling censorship of the press was introduced, political
parties were outlawed, opponents were jailed, and terror
was unleashed on society in the form of the Cheka, the
brutal political police. Mr. Sebestyen correctly notes, however, that although these tactics were taken to a heightened level of savagery by the revolutionaries, none of
them were new. In fact, they had all been learned from the
czarist regime, the “violent, tyrannical and corrupt Russia” that had produced Lenin. His being a Russian was as
important as being a Marxist.
As Chairman of the Council of People’s Commissars
(effectively the prime minister) Lenin subjected himself to a
punishing schedule, often working 17-hour days in his Kremlin office. He suffered his first stroke in May 1922; more followed. Lenin died in January 1924 at the age of 53. His
corpse still lies encased in glass for all to see on Red
Square, although his star no longer shines as it once did.
According to the latest poll, Russians now consider Lenin
only the fourth most outstanding man of all time, behind
Stalin, Pushkin and Vladimir Putin.
Mr. Smith, the author of “Former People” and “Rasputin,”
is writing a book on the Soviet famine of 1921-23.
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A16 | Tuesday, November 7, 2017
* ***
THE WALL STREET JOURNAL.
OPINION
G
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Sorry State of New Jersey
The Government and Free Speech on Campus
ov. Chris Christie’s election in New Jer- raised the retirement age for new employees to
sey in 2009 augured a bumper crop of 65 years. But the reforms didn’t do enough to
GOP reformers, and now progressives are curb the rich benefits for current workers.
hoping that a victory by DemoMr. Christie has also conAfter Christie, Trenton tinued his predecessors’ habit
crat Phil Murphy in the state’s
gubernatorial election on Tuesskimping on pensions. The
is headed toward more of
day will presage an upswell of
state has lost billions in comtax-and-spend decline. pound interest on the more
Sandernistas. One lesson from
Mr. Christie’s tenure is that
than $20 billion in missed
voters will turn left if Republipayments, and the state’s pencans fail to deliver on growth and reform.
sion shortfall has ballooned to $136 billion from
Mr. Christie defeated Democrat Jon Corzine $54 billion in 2010. Democrats and Mr. Christie
in 2009 by promising to drain the swamp in this year decided to raid the state lottery to pay
Trenton, challenge public union rule and revive for pensions, but this isn’t sustainable.
the state’s economy. But after some modest
Better solutions are within reach. In 2015 a
early successes, the Governor gave up to run for bipartisan commission convened by the GoverPresident and now the state is heading back to nor recommended scaling back public workers
the policies that brought it low.
platinum health benefits to levels offered by
New Jersey (like Connecticut) was once a tax private employers, which could save $3.7 bilhaven for New Yorkers, but in 1968 the state al- lion. Replacing defined-benefit plans for curlowed collective bargaining by public unions. rent workers with a defined-contribution hyEight years later the state adopted an income brid could yield an additional $1.5 billion.
tax with a 2.5% top rate to boost spending on
Yet after winning re-election in 2013 in a
education and reduce property taxes. Thus be- 22-point landslide, Mr. Christie invested little
gan the state’s road to fiscal perdition.
political capital into persuading the legislature
Politicians captive to public unions have re- and public to support more reforms. He inpeatedly raised income taxes to sweeten worker stead hit the road to run for President. The
salaries and benefits. The state’s 8.97% top rate Governor’s public support also sank after his
on households earning more than $500,000 is aides shut down the George Washington
the highest in the Northeast after New York Bridge to spite a Democratic mayor who reCity. Revenues have been steered to low-income fused to endorse him. A court-approved gerryschool districts but have produced little im- mander in 2011 locked in Democratic majoriprovement in student learning. Asbury Park re- ties in the legislature.
ceives $28,884 in state per-pupil aid.
The Governor has vetoed tax increases and
School districts have also piled on property protected Garden Staters from Democrats’
taxes, which are the highest in the country. Be- worst impulses, but he has alienated would-be
tween 1980 and 2007, property taxes increased supporters and his 18% approval rating is half
by more than 100% on a per capita basis while of President Trump’s in the state. Democrats in
school spending per pupil grew by nearly 140%. Trenton concluded they were better off opposThe average property tax bill on a median ing Mr. Christie while unions figured they could
$427,000 home in Essex County is $11,597— wait him out.
about twice as much as in Bucks County, PennVoter frustration with higher taxes, deteriosylvania.
rating public services (e.g., New Jersey Transit)
All of this has hurt the economy, which has and slow growth has fueled Mr. Murphy’s popudepressed tax revenues. Since 2010 the state’s list campaign. The former Goldman Sachs execGDP has grown at an annual 0.9%, less than half utive has endorsed a millionaire surtax, singleas fast as the U.S. A net $8.5 billion in adjusted payer health care and a $15 minimum wage, all
gross income left the state between 2012 and of which would accelerate the exodus of people
2015, according to the IRS.
and employers.
During his first year, Mr. Christie midwifed
The state would need to impose a tax of
a 2% annual cap on property tax increases with nearly 20% on millionaires to pay for pensions.
exceptions for debt service, emergencies and The GOP nominee is Lieutenant Governor Kim
pension and health benefits. The cap has kept Guadagno, who has pitched sound ideas to reannual property tax increases to less than 2.1% duce property taxes and fix pensions. But she
on average. In 2011 the Governor struck a deal trails Mr. Murphy by double digits in the polls
with Democratic Senate president Steve as she struggles against the anti-Christie unSweeney on pension reform that eliminated re- dertow. Sorry to say, New Jersey’s tax-andtirees’ automatic cost-of-living adjustments and spend decline seems likely to accelerate.
T
A Plumber With a Rifle
he world is trying to figure out what evil, who was discharged from the Air Force for bad
or madness, caused Devin Kelley to kill conduct, should not have been able to obtain a
26 people and wound 20 more at the gun legally, but the Journal reports that the milFirst Baptist Church in Sutheritary failed to send his convicland Springs, Texas, on Sunday A neighbor saves lives in tion record to the FBI. The
morning. But forgive us if we
reality of mass murders
Texas with a legal gun harsh
focus on Stephen Willeford,
is that often only the presence
and some quick action. of someone with a legal
the local plumber who saved
lives by grabbing his rifle and
weapon to shoot back can stop
firing at Kelley.
the rampage.
Freeman Martin, the Texas Department of
We saw this in Virginia this year when Capitol
Public Safety chief, said Mr. Willeford “grabbed Hill police saved the lives of many Members of
his rifle and engaged the suspect” as he left the Congress. Security officers in Garland, Texas,
church. Kelley dropped his Ruger AR-15 and fled, prevented mass casualties by killing two jihadand Mr. Willeford jumped in a truck driven by ists in 2015 trying to shoot up a contest featuring
another local resident, Johnnie Langendorff, cartoons of the Prophet Muhammad.
and pursued the killer. After a 95-mile-per-hour
No one wants crowds of vigilantes looking for
chase, Kelley crashed his vehicle, where police someone to shoot, but we’re sure glad Stephen
found him dead a short time later. Police believe Willeford had a rifle and knew how to use it.
Kelley killed himself.
Like the passengers aboard Flight 93 on 9/11, or
The two locals are being hailed as heroes the Yanks who foiled a terror attack on a train
since their quick action was the only deterrent in Belgium in 2015, he didn’t wait for orders to
to more murders until police arrived. Kelley, protect his fellow human beings.
T
Bad Marks for a Good Military
he military is one of the few institutions Fitzgerald and USS John S. McCain. The collithat Americans still hold in high esteem, sions—off the coast of Japan, and in the Singabut that should never be taken for pore Strait, respectively—resulted in the deaths
granted. Two events late last
of 17 sailors.
The Bergdahl sentence
week suggest that even the
The 71-page report, which
military’s culture of high persays
both collisions were
and a Navy report
formance can be eroded with“avoidable,” is damning about
are dispiriting.
out constant attention.
the Navy’s training practices
The first was a military
and makes for dispiriting readjudge’s decision to let off U.S.
ing if you are a civilian who
Army Sergeant Bowe Bergdahl with a slap on thinks the U.S. Navy is the best in the world. The
the wrist for desertion in Afghanistan in 2009. report says watch team members on the FitzgerAfter a court martial, Army Colonel Jeffery ald “were not familiar with basic radar fundaNance recommended that Bergdahl be dishon- mentals.” And it cites a failure to plan for safety,
orably discharged, demoted to private and for- adhere to sound navigation practices, properly
feit $10,000 in pay. Prosecutors had sought 14 use available navigation tools, and respond efyears in prison.
fectively in a crisis.
Bergdahl was captured by the Taliban and
As for the McCain, the Navy cited a loss of sitheld prisoner for nearly five years, a terrible or- uational awareness in response to mistakes in
deal to be sure. But those most outraged by the operating the ship’s steering and propulsion syswrist slap are other members of the armed ser- tem. It also cited the failure to follow the Intervices who fear the damage to military discipline. national Nautical Rules of the Road that govern
Bergdahl deserted on the battlefield in a forward maneuvering vessels amid high-density maripost—the worst betrayal you can make against time traffic. These are mistakes of basic seamanyour fellow soldiers save for fragging them with ship that suggest inadequate training, or shifts
friendly fire.
that are too long and cause a loss of concentraMembers of Bergdahl’s unit were killed or tion and crew cohesion.
maimed when they were sent to search for him,
The Navy had already relieved the ship capnot knowing that he had been preparing to walk tains and even the commander of the Pacific
away for weeks and had even dispatched per- Fleet. This accountability is a credit to the Navy
sonal effects to the U.S. before he walked off the and will be a lesson to other commanders. But
forward base. The court-martial sentence must it should also be a warning that Congress needs
be demoralizing to those who do their duty and to allocate enough money to adequately train
risk their lives without fanfare.
sailors so they can fulfill their missions. ColliEven more distressing is the Navy’s report on sions with civilian ships in peacetime are awful,
its investigation into the collisions with civilian but seamanship failures during wartime would
vessels this year in the Pacific theater by the USS be disastrous.
Frederick M. Hess and Grant Addison contend that colleges and universities should be subject to federal
funding risk if they fail to enforce
free-speech standards (“Colleges
Should Protect Speech—or Lose
Funds.” op-ed, Oct. 31). That risk already exists. It is precisely federal
legislation—Title VI of the Civil
Rights Act—that has university administrations tripping over themselves to avoid a violation with potentially deep legal, financial and
reputational ramifications.
The concept of discrimination,
which Title VI addresses, has been so
ideologically empowered that broad
speech acts, or merely protests, rallies
or other forms of assembly, can be interpreted as per se hostile, and
thereby construed as discrimination.
Moreover, it isn’t just running afoul
of federal rules and financial largess
that frightens college administrators,
but the potential interruption of corporate donations that may arise in the
face of campus unrest and contentions. That tells us the nature of the
current speech issue on America’s
campuses isn’t so much about the
Constitution or First Amendment, as it
is about tort law and liability. And it’s
also about university economics, or
what the University of Chicago calls
“its vital interests.” Those include the
economic well-being of the institute
and its employees, many enjoying unprecedented pay and benefits. Colleges
should get out of the way, and out of
the speech business. Then student education will really begin.
MATT ANDERSSON
Oak Brook, Ill.
In practice, the authors’ suggestion
would have unintended consequences
including more regulation, more bureaucracy (on the part of both the
government and the university) and
harmful impacts on many innocent individuals who have in no way impeded free speech.
There are other ways to address
the problem. One is being tried in
North Carolina, where the legislature
has passed a law requiring its public
universities to protect speech, including protests, and to discipline students or others who prevent other
people’s free speech. Experiments in
the states like this law will lead to
more effective and fairer efforts to
foster freedom.
JANE S. SHAW
Raleigh, N.C.
Forget about focusing on campus
administrators and faculty members.
Instead, focus on students. A large
proportion of college students receive
federal assistance. Most aren’t leftwing fascists, and they want to keep
their federal aid. They are the most
effective lobbyists for free speech on
campus.
The Education Department should
issue a regulation that all federal financial student assistance can only
be available to students attending
“safe” institutions of higher learning.
Then define safe as one in which
there are no speech codes or freespeech zones, etc. This regulation
would exempt the military academies
and religious institutions.
JOEL MARGOLIS
Albany, N.Y.
On Getting Children’s First Three Years Right
Thank you for publishing letters
(Nov. 2) that thoughtfully engage in
the discussion of what is best for our
children. Open dialogue, especially
that which references research, must
be encouraged. Too often this conversation takes place not in an open forum but behind each other’s backs, to
the detriment of our children and society.
I must disagree with Angeline S.
Lillard’s reference to Ruth Feldman’s
research that fathers and mothers are
interchangeable to children. Ms. Feldman’s findings suggest that oxytocin
has different effects on each parent’s
interactions with their offspring.
Mother’s oxytocin is associated with
nurturing and affection, while father’s
oxytocin levels associate with tactile,
roughhousing-like behavior. Fathers
will always be important, but they
provide something different from
what babies need from mothers for
emotional stability.
I must also call into question her
claim that the NICHD study “laid to
rest” the idea that day care is universally harmful. That research suggests
that children who have spent increased time in day care “show somewhat more behavior problems.” Modern research on early day care is also
problematic. See Allan Schore’s 2017
article “All our sons: . . . The Neuropendocrinology of Boys at Risk” in the
Infant Mental Health Journal. Inconsistency in caregivers, improper ratios
of children to adults and overstimulation are issues that make it impossible for me to recommend it as an alternative to maternal care.
We are all ultimately on the same
team as women and as mothers.
ERICA KOMISAR, LCSW
New York
Think of the Public Before the Broadcasters
As the son of a broadcast pioneer
who got his license from the Department of Commerce in 1923 and as a
former broadcaster myself, I read
with great sadness “FCC to Lift Limits on Media Deals” (page one, Oct.
26). Although FCC Chairman Ajit Pai
justifies his proposal by saying it
will lead to more news gathering locally and more news for consumers,
my experience tells me it will be the
opposite.
First, viewers and listeners don’t
need more news, they need better
news. In my day the yardstick by
which we decided what we covered
was “Does the public need to know
Remembering the Golden
Age of Open-Outcry Markets
I empathize with David Tung
Wai’s sadness for watching the demise of the Hong Kong stock exchange trading floor (“At 87, a Stogie-Toting Legend Mourns the End
of Trading Floors,” page one, Oct.
26). My first visits to the Chicago
Mercantile Exchange began in 1956,
when I would go downtown to visit
my father and grandfather who
traded for themselves, speculators
and their butter, egg and onion
hedging clients. I started working
on the CME floor in 1967 and later
on the Chicago Board of Trade floor,
first in high school and then as a
college student. I couldn’t imagine
doing anything else. Years later I
taught courses for the CME as men
and women flocked to Chicago to
learn the art of open outcry. I recall
how crowded the visitors’ galleries
were. The trading floors in the
1970s and ’80s were major tourist
attractions for the city of Chicago.
But like the village blacksmith or
the attendant who’d pump your gas
and clean your windshield, technology changed the way stocks and derivatives will forever be traded.
LAWRENCE SCHNEIDER
Lincolnshire, Ill.
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
this?” Using that measure, it was often difficult to fill the four newscasts we did each day. News quality
went downhill fast when the 24/7
news formats began. The Kardashians never would have made it
into a legitimate news broadcast
back then.
Second, allowing ownership of
multiple stations in a given market
will drive the last nail in the coffin
of the local “multiplicity of voices”
that broadcasting originally sought
to bring to the public. There will be
but one voice, that of the corporate
owner of the stations.
Mr. Pai’s proposed changes are all
about allowing the broadcasters to
get bigger and make more money,
and nothing about getting the public
the fact-based, credible news we so
drastically need.
TOM MORGAN
Oviedo, Fla.
Watch That First Step Up
Regarding the Oct. 24 letters:
Eliminating the step-up basis on
death would create huge bookkeeping problems for taxpayers who
hold assets which have passed
through multiple generations without being sold. Imagine winding up
with stock which has had an automatic dividend reinvestment feature for decades.
JAMES M. KLEBBA
New Orleans
Pepper ...
And Salt
THE WALL STREET JOURNAL
“Your fake news or mine?”
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | A17
OPINION
The Strategy Behind the Saudi Strife
By Karen Elliott House
C
Riyadh, Saudi Arabia
hange is accelerating in
Saudi Arabia. Over the
weekend King Salman bin
Abdulaziz removed his predecessor’s powerful son as
head of the national guard. The king
detained 11 princes along with current and former ministers on corruption charges. Behind the move is
Saudi Arabia’s young reformer,
Crown Prince Mohammed bin Salman. He is gambling that the moves
will be seen at home and abroad as
cleansing the kingdom of tarnished
old ways—not as the whim of an authoritarian ruler.
This crackdown is intended to
frighten anyone with power—not
only the prince’s royal and religious
opponents. In a monarchy infamous
for widespread malfeasance, an anticorruption campaign means almost
every prince and current or former
minister is vulnerable to being targeted, detained, blocked from travel,
and stripped of his assets. Not even
aides and associates are safe. But it’s
unlikely the opposition will grow
much, as the crown prince has spent
the past year taking control of internal security and defense. The message is clear: Get behind reform or be
silenced.
Already the Saudi public is tweeting its support. Yet Western investors, whose money and expertise the
kingdom needs, are unsure if this
campaign is proof of modernization
or autocratic business as usual. In
Saudi Arabia, the rule of law is the
king. So long as he lives, he is allpowerful; once dead, his legacy and
projects are at risk. Foreign investors
may think this system still entails too
many risks.
Prince Mohammed, a millennial
popular with young Saudis, is not so
much an idealistic social reformer as
a pragmatist. He desperately wants
to diversify the economy. Standing in
his way are decades of dependence
on oil and an exploding population of
young people lacking education and
the will to work. Western assistance
will not come without a modern work
environment that includes female
employees and after-work options
such as gyms, movie theaters and
night clubs.
The international audience is as important to Prince Mohammed as are
the opinions of his own people. To appeal to both, over the past 18 months
he has overseen a remarkable liberalization of Saudi society. Citizens now
enjoy many long forbidden social freedoms, including the public mixing of
unrelated men and women.
The young crown prince
is gambling that personal
freedom will encourage
financial responsibility.
The young prince clearly believes
that social change is the essential
prerequisite for economic modernization. While some of his reforms have
been dramatic, the country is still a
long way from becoming a diversified, post-oil economy. The growth
forecast for this year is zero. Foreign
investors are intrigued, but so far few
are putting money down. Oil continues to account for nearly 80% of
Saudi government revenues, and restraining production hasn’t led to
higher prices. The prince may well be
right that social change will usher in
his economic goals, but freeing society is so far proving easier than retooling the stultified economy.
Saudi Arabia, with its austere brand
of fundamentalist Islam, has been a
global outlier for decades. It has been
a segregated, repressive society that
has subjected women to men’s rule
and micromanaged every aspect of citizens’ lives—down to the proper way
to enter and exit a toilet and how
menstruating women must behave. All
this to align Muslims with the Islam of
the Prophet Muhammad.
Prince Mohammed is rapidly removing the traditional guardrails on
Saudi society. Gone are the religious
police who enforced gender segregation. Women will be allowed to
drive beginning next June. Already
some dare to congregate in restaurants without a male guardian. Jogging, hiking and bike riding in mixed
company is becoming more popular.
100 Years of Communism—and 100 Million Dead
By David Satter
A
rmed Bolsheviks seized the
Winter Palace in Petrograd—
now St. Petersburg—100 years
ago this week and arrested ministers of Russia’s provisional government. They set in motion a chain of
events that would kill millions and
inflict a near-fatal wound on Western civilization.
The revolutionaries’ capture of
train stations, post offices and
telegraphs took place as the city
slept and resembled a changing of
the guard. But when residents of
the Russian capital awoke, they
found they were living in a different universe.
The Bolshevik plague
that began in Russia was
the greatest catastrophe
in human history.
Although the Bolsheviks called
for the abolition of private property,
their real goal was spiritual: to
translate Marxist-Leninist ideology
into reality. For the first time, a
state was created that was based explicitly on atheism and claimed infallibility. This was totally incompatible with Western civilization, which
presumes the existence of a higher
power over and above society and
the state.
The Bolshevik coup had two consequences. In countries where communism came to hold sway, it hollowed out society’s moral core,
degrading the individual and turning
him into a cog in the machinery of
the state. Communists committed
murder on such a scale as to all but
eliminate the value of life and to destroy the individual conscience in
survivors.
But the Bolsheviks’ influence was
not limited to these countries. In the
West, communism inverted society’s
understanding of the source of its
values, creating political confusion
that persists to this day.
In a 1920 speech to the Komsomol, Lenin said that communists
subordinate morality to the class
struggle. Good was anything that
destroyed “the old exploiting society” and helped to build a “new
communist society.”
This approach separated guilt
from responsibility. Martyn Latsis,
an official of the Cheka, Lenin’s secret police, in a 1918 instruction to
interrogators, wrote: “We are not
waging war against individuals. We
are exterminating the bourgeoisie as
a class. . . . Do not look for evidence
that the accused acted in word or
deed against Soviet power. The first
question should be to what class
does he belong. . . . It is this that
should determine his fate.”
Such convictions set the stage for
decades of murder on an industrial
scale. In total, no fewer than 20 million Soviet citizens were put to
death by the regime or died as a direct result of its repressive policies.
This does not include the millions
who died in the wars, epidemics and
famines that were predictable consequences of Bolshevik policies, if
not directly caused by them.
The victims include 200,000
killed during the Red Terror
(1918-22); 11 million dead from famine and dekulakization; 700,000 executed during the Great Terror
(1937-38); 400,000 more executed
between 1929 and 1953; 1.6 million
dead during forced population
transfers; and a minimum 2.7 million dead in the Gulag, labor colonies and special settlements.
To this list should be added
nearly a million Gulag prisoners released during World War II into Red
Army penal battalions, where they
faced almost certain death; the partisans and civilians killed in the
postwar revolts against Soviet rule
in Ukraine and the Baltics; and dying Gulag inmates freed so that
their deaths would not count in official statistics.
If we add to this list the deaths
caused by communist regimes that
the Soviet Union created and supported—including those in Eastern
Europe, China, Cuba, North Korea,
Vietnam and Cambodia—the total
number of victims is closer to 100
million. That makes communism
the greatest catastrophe in human
history.
The effect of murder on this scale
was to create a “new man” supposedly influenced by nothing but the
good of the Soviet cause. The meaning of this was demonstrated during
the battle of Stalingrad, when Red
Army blocking units shot thousands
of their fellow soldiers who tried to
flee. Soviet forces also shot civilians
who sought shelter on the German
side, children who filled German water bottles in the Volga, and civilians
forced at gunpoint to recover the
bodies of German soldiers. Gen. Vasily Chuikov, the army commander in
Stalingrad, justified these tactics in
his memoirs by saying “a Soviet citizen cannot conceive of his life apart
from his Soviet country.”
That these sentiments were neither accidental nor ephemeral was
made clear in 2008, when the Russian Parliament, the Duma, for the
first time adopted a resolution regarding the 1932-33 famine that had
killed millions. The famine was
caused by draconian grain requisition undertaken to finance Soviet
industrialization. Although the
Duma acknowledged the tragedy, it
added that “the industrial giants of
the Soviet Union,” the Magnitogorsk
steel mill and the Dnieper dam,
would be “eternal monuments” to
the victims.
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While the Soviet Union redefined
human nature, it also spread intellectual chaos. The term “political
correctness” has its origin in the assumption that socialism, a system of
collective ownership, was virtuous
in itself, without need to evaluate its
operations in light of transcendent
moral criteria.
When the Bolsheviks seized
power in Russia, Western intellectuals, influenced by the same lack of
an ethical point of reference that led
to Bolshevism in the first place,
closed their eyes to the atrocities.
When the killing became too obvious
to deny, sympathizers excused what
was happening because of the Soviets’ supposed noble intentions.
Many in the West were deeply indifferent. They used Russia to settle
their own quarrels. Their reasoning,
as the historian Robert Conquest
wrote, was simple: Capitalism was
unjust; socialism would end this injustice; so socialism had to be supported unconditionally, notwithstanding any amount of its own
injustice.
Today the Soviet Union and the
international communist system
that once ruled a third of the
world’s territory are things of the
past. But the need to keep higher
moral values pre-eminent is as important now as it was in the early
19th century when they first began
to be seriously challenged.
In 1909, the Russian religious philosopher Nikolai Berdyaev wrote
that “our educated youth cannot admit the independent significance of
scholarship, philosophy, enlightenment and universities. To this day,
they subordinate them to the interests of politics, parties, movements
and circles.”
If there is one lesson the communist century should have taught, it
is that the independent authority of
universal moral principles cannot be
an afterthought, since it is the conviction on which all of civilization
depends.
Mr. Satter is the author of “Age
of Delirium: the Decline and Fall of
the Soviet Union” (Yale).
Cinema, banned for four decades,
will be restored by year’s end, the
prince says.
All over Riyadh young Saudis are
buying and operating portable food
trucks to earn cash, as government
cuts generous subsidies. Saudi men
are notorious for refusing to do menial work, but these entrepreneurial
young men hustle to serve customers
hamburgers, chicken wings, tacos,
pasta or whatever the truck specializes in. One young man told me last
week that he learned business in
China while on university scholarship. He works seven-hour days for
Airbus—then sells from his food
truck late into the night.
Some 40 of these trucks are congregated on an empty lot in northern
Riyadh, forming a small outdoor village where young Saudis relax with
family or friends. Among the food
trucks is one operated by a mother
and daughter who are selling Arabic
coffee to a line of male customers.
The women chat casually with their
clients. Only a year ago such forbidden interaction between women and
unrelated males most likely would
have landed them in jail.
Prince Mohammed is gambling
that once Saudis control their personal lives, they will take responsibility for their livelihoods, reducing dependence on government handouts.
But food trucks and cinema do not a
modern economy make.
So far, the social liberalization has
wide support among young Saudis and
the acquiescence of the silent majority.
The Saudi religious establishment is
largely silent while some other conservative critics have been silenced by selective arrest. But if economic growth
remains stuck at zero, unhappy royals
may not be Prince Mohammed’s greatest threat. A society liberated from its
traditional moorings and disappointed
with its economic prospects may
prove difficult to control.
Prince Mohammed acknowledged
as much last month, when he labeled
the young generation a “doubleedged sword.” Young Saudis, he said,
can create a new Saudi Arabia “but if
they go the other way, they will bring
destruction.”
Ms. House, a former publisher of
The Wall Street Journal, is author of
“On Saudi Arabia: Its People, Past,
Religion, Fault Lines—and Future”
(Knopf, 2012).
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A18 | Tuesday, November 7, 2017
THE WALL STREET JOURNAL.
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TECHNOLOGY: KFC GOES DIGITAL IN CHINA B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2591.13 À 0.13%
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S&P IT À 0.35%
Tuesday, November 7, 2017 | B1
THE WALL STREET JOURNAL.
* * * *
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Saudi Arrests Upset Financial Outlook
Moves come at a
delicate time as crown
prince tries to diversify
kingdom’s economy
A far-reaching crackdown
that extends into Saudi Arabia’s
business elite has abruptly
raised the stakes for global investors just as the kingdom embarks on a campaign to lure
foreign capital to help overhaul
its oil-dependent economy.
Dozens of princes, senior
Saudi officials and prominent
businessmen were arrested
over the weekend as part of
what the government cast as an
effort to root out corruption.
By Nicolas Parasie
in Dubai and Julie
Wernau in New York
Prince al-Waleed bin Talal, a
billionaire whose firm holds
significant stakes in Apple Inc.,
Citigroup Inc. and Twitter Inc.,
was among those detained. An
attempt to reach him through
Lifting the Fog of Warrants
Investments designed to enable taxpayers to
participate in banks' recovery have been a
winner for investors who purchased them
at auction after the crisis ended.
the firm, Kingdom Holding Co.,
was unsuccessful.
The crackdown comes at a
delicate moment for Saudi Arabia. Crown Prince Mohammed
bin Salman, the 32-year-old
son of King Salman, is leading
efforts to diversify the economy. Central to that strategy
are plans for an initial public
offering of shares in the stateowned oil giant, known as
Aramco. The kingdom is also
maneuvering for regional influence with rival Iran, and mired
in a war in neighboring Yemen.
February 2016
Warrants hit 58 cents as
share price languishes
Now, investors confront distinct potential outcomes from
the crackdown: a Saudi business environment that is less
opaque and easier for outsiders to navigate, or an increased risk of political upheaval or legal uncertainty.
“What’s confusing for Western investors is that [the
purge] is achieving modernization
and
Westernization
through some very aggressive
means,” said Christopher
Johnson, chairman of the
American Business Group of
November 2017
November 2016
Share price surges amid Returns on warrants exceed
postelection bank rally. 700% for early buyers.
Warrants
200
BY ALISON SIDER
100
Oil prices surged to more
than two-year highs after a
wave of arrests in Saudi Arabia and a missile attack on Riyadh signaled escalating tensions in the Middle East.
Crude for December delivery gained 3.1%, to $57.35 a
barrel, on the New York Mercantile Exchange on Monday,
while Brent for January delivery, the global benchmark,
rose 3.5% to $64.27 on ICE Futures Europe. Both settlements
are the highest since June
2015.
Over the weekend, officials
in Saudi Arabia detained more
than five dozen princes, ministers and prominent businessmen in a bid to tackle alleged corruption. Analysts
described the sweep as a
shake-up as Crown Prince Mohammed bin Salman consolidates power.
Oil prices also were
buoyed Monday after Yemen’s
Houthi rebels fired a ballistic
missile on Saturday that
reached the outskirts of Saudi
Arabia’s capital before being
shot down. Saudi Arabia said
Monday that the attack could
be considered an Iranian act
of war.
Oil has rallied from 2017
600
500
400
0
–100
2012 ’13
’14
’15
Capital One performance
Warrants
’16
Warrants*
400%
’17
Gains since 2016 U.S. election
SunTrust performance
Common stock
Common stock
Warrants
Common stock
1,400%
1,200
300
1,000
800
200
Wells Fargo
600
400
100
219%
Bank of
America†
63%
65%
23%
111%
J.P. Morgan
44%
200
0
2009 ’10
0
’11
’12
’13
’14
’15
’16
’17
2011 ’12
145%
PNC
’13
’14
’15
’16
43%
’17
*Class B warrants †Class A warrants
Source: FactSet
THE WALL STREET JOURNAL.
Bank Investors Made a Mint on Crisis
BY RACHEL LOUISE ENSIGN
The U.S. banking industry
is booming—a development
that is bringing windfall gains
to a small group of investors
who had the gumption to buy
esoteric bank securities when
the outlook for financial
firms and the economy was
far less clear cut.
After years of banks grappling with the fallout of the
crisis and low interest rates,
the bets on what are known as
TARP warrants are finally paying off. The investors, who include fund managers John
Paulson and Bill Miller, bought
these warrants for bank stocks
secondhand, after they were
initially issued to the government during the 2008 bank
bailout.
The investors’ unpopular
view at the time was that
banks and their stock prices
would recover to precrisis levels. By betting on warrants, a
high-octane security similar to
an option, the fund managers
basically doubled down on
that opinion, risking their entire investment if it didn’t
happen by 2018 or 2019.
“If the subprime credit-default swaps were this asymmetric, beautiful investment to
express what was wrong with
American capitalism…, these
securities are the opposite,”
said Django Davidson, a founding partner at London-based
Hosking Partners LLP, which
bought about $200 million of
the warrants for banks including Bank of America Corp.
The warrants date to the financial crisis, when the government invested about $250
billion in about 700 banks as a
part of the Troubled Asset Relief Program.
As part of
TARP, which aimed to shore up
bank capital and restart lending, the government got warrants to buy shares in the
banks. The Treasury Department started getting rid of the
warrants in 2009, a process
that included selling some off
to investors.
For years after the crisis,
many investors hated bank
stocks, comparing them to
heavily regulated utilities no
longer able to take risks and
grow. The warrants also
slumped; some of Citigroup
Inc.’s fell so much they were
delisted from the New York
Stock Exchange in 2016.
But since the November
2016 presidential election,
bank stocks have helped lead a
BY RYAN KNUTSON
Sprint Corp. said it would
increase spending on its network, laying out its plan as a
stand-alone company after
talks to merge with T-Mobile
US Inc. fell apart over the
weekend.
Sprint, the fourth largest
U.S. carrier by subscribers,
said it would spend $5 billion
to $6 billion annually on its
network over the coming
years, up from the $3.5 billion
to $4 billion it projected for
this fiscal year.
The carrier also announced
a partnership with Altice USA
Inc., a cable company that operates primarily in the New
York area. Under the deal, Altice will be allowed to sell
within its footprint Sprint’s
wireless service under its own
brand, and Sprint will have
special access to Altice’s cable
network to connect its cell
sites to the internet.
Sprint and T-Mobile had
been in merger talks for
months but called them off
over the weekend after they
couldn’t reach an agreement.
Please see SPRINT page B2
Heard on the Street: Vision
blurs at SoftBank.................. B13
broad stock-market rally tied
to renewed confidence and
hopes of tax and regulatory
overhaul. Meanwhile, banks’
crisis-era legal problems have
subsided and interest rates
have started to rise, making
lending more profitable.
The change in sentiment
has made the warrants a
turnaround story. Some from
big banks have surged 65% to
1,440% since the election,
easily outpacing the 36% rally
in the KBW Nasdaq Bank
stock index. One group of
Bank of America’s warrants,
once left for dead, are up the
most in the group. With the
recent jump, J.P. Morgan
Chase & Co. warrants are up
426% since they started trading in late 2009, compared
with a 146% increase for the
Please see BANKS page B2
INSIDE
Sprint Adds Billions
To Network Spending
Investors face new turmoil in
Middle East and beyond... B14
300
700
Common stock
crown prince and elevating his
son. Since then, the kingdom
has taken steps to show it is
opening up to the world.
In September, the king issued a decree giving Saudi
women the right to drive, a
move that was condemned by
Saudi conservatives and welcomed by the U.S. Two weeks
ago, Prince Mohammed presided over an investment conPlease see SAUDI page B2
Crude Prices Climb
As Tensions Build
In Middle East
800%
Zions Bancorp performance
November 2012
Treasury sells Zions
warrants for $1.35 apiece.
Riyadh, which promotes and
represents U.S. business interests in the kingdom.
President Donald Trump
tweeted from Asia on Tuesday
that he has great confidence in
King Salman and the crown
prince, saying “they know exactly what they are doing.” He
added in another tweet that
“Some of those they are harshly
treating have been “milking”
their country for years!”
King Salman shook up the
kingdom’s succession plan in
June by removing the then-
CHINA JOINS
RANKS OF
JET EXPORTERS
ENERGY DRIVES
STOCKS TO
LATEST RECORD
TRADE, B3
MONDAY’S MARKETS, B13
lows hit in June as investors
have become more attuned to
whether conflicts in the Middle East could disrupt oil
flows as supplies have tightened around the world.
“It is an extremely long list
reminding the market how
fragile the oil market is,” said
Gary Ross, head of global oil
analytics at S&P Global Platts.
Investors are concerned
that the power struggles in
Saudi Arabia, the world’s top
exporter of crude, bring a new
source of uncertainty to the
global oil market.
Breakthrough
U.S. crude-oil prices rose Monday
to a more than two-year high.
$70 a barrel
60
50
40
30
20
2015
’16
’17
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
STREETWISE | By James Mackintosh
It’s Time to Change
Game Plan for Stocks
Shareholders are luxuriating in the
ideal environment as the
global economy delivers growth without
inflation. It is hard to be
cautious when the fundamentals look great, but this
might be just the time to
start worrying.
The fundamentals offer
little cause for concern, with
models suggesting recession
and runaway inflation are
both unlikely (although the
models aren’t very reliable
in either case).
So what could possibly go
wrong? If the economy is unlikely to threaten stocks, the
biggest danger comes from
the market itself. History
shows that a loss approaching 20%, the standard definition of a bear market, has
been almost as likely when
the economy is expanding as
it has been during recessions.
It is obvious why recessions hurt stocks, as sales
shrink and caution replaces
confidence. Big market drops
outside recessions are
harder to get a grip on, but
fall into two categories.
The first is a simple mistake. In 1998, the S&P 500
fell 19% by anticipating imminent economic troubles
that failed to materialize after Russia’s default; in 2011,
when the U.S. credit rating
was downgraded and the eurozone imploded; and in
1978, when investors—
wrongly—thought stagflation
meant recession was imminent (it took until 1980 to
arrive).
Such a mistake is easy to
imagine today. A simple
model used by the Federal
Reserve Bank of New York
already puts a 9% chance on
a recession in the next 12
months, the highest since
the last recession ended.
Forecasting recessions is
hard, so it doesn’t take much
evidence of economic weakness to create fear of recession.
The second category, and
the bigger danger, involves
Please see STREET page B2
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 | Tuesday, November 7, 2017
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.
A
Bond Fund.................A2
Advanced Micro Devices
............................. B4,B13
Airbus..........................B3
Altice USA .................. B1
Amazon..................A1,B4
Anthem ....................... B6
Apple ............ A10,B1,B13
G
R
General Electric ........ B12
Goldman Sachs Group
...................................B12
Google ......................... B4
Rockwell Collins..........B3
B
Boeing ......................... B3
Broadcom.............A1,B13
C
Cardinal Health...........B6
Cathay Pacific Airways
.....................................B3
CenturyLink.................B6
China Chengxin
International Credit
Rating......................B12
China Investment.....B12
China Lianhe Credit
Rating......................B12
Citigroup......................B1
CVS Health..................B6
D
Dandong Port Group
...................................B12
Dongfeng Motor Group
...................................B12
DowDuPont...............B12
I
Intel.............................B4
International
Consolidated Airlines
Group.........................B3
J
Jana Partners ........... B13
J. Crew Group.............B7
K
Kingboard Chemical
Holdings....................B3
Kingdom Holding........B1
M
Maltese Capital
Management.............B2
Michael Kors Holdings
.....................................B6
Microsoft.....................B4
N
Nvidia...................B4,B13
NXP Semiconductors
...................................B13
E
P
Equifax ...................... B12
PHLX Semiconductor . A5
Priceline Group ........... B6
F
Fast Retailing ............. B7
Federated Total Return
THE WALL STREET JOURNAL.
* ***
Q
Qatar Airways.............B3
Qualcomm............A1,B13
S
Salesforce ................... B4
Saudi Aramco............B13
Saudi Electricity ....... B13
Shanghai Brilliance
Credit Rating &
Investors Service....B12
Silver Lake
Management ............ A5
SoftBank Group...B2,B13
Sprint...................B1,B13
Swire Pacific...............B3
T
T-Mobile US.........B1,B13
TripAdvisor..................B6
Twitter ........................ B1
21st Century Fox........A1
U
UnitedHealth Group....B6
United Technologies...B3
V
Valeant Pharmaceuticals
International.............B6
SPRINT
Continued from the prior page
Shares in Sprint fell 12% on
Monday,
while
T-Mobile
shares declined 5.7%.
During a call with analysts
on Monday, Sprint finance
chief Tarek Robbiati acknowledged investors’ disappointment with the scuttled talks.
“I will not venture in selling
this [Altice] transaction as
making up for the tens of billions of dollars of synergies
that we would have had jointly
with T-Mo had we merged
with them,” he said, using a
nickname for T-Mobile. “These
synergies were enormous by
every analyst’s account.”
Still, Mr. Robbiati said the
Altice partnership would deliver real value, primarily be-
cause it would help Sprint install antennas more quickly.
The Altice partnership would
have happened regardless of a
T-Mobile deal, he said.
Meanwhile, Sprint parent
company SoftBank Group
Corp., based in Japan, said it
would buy shares of Sprint in
the open market and increase
its stake from roughly 82% to
closer to 85%. If it exceeds
85%, it would have to make an
offer to buy out the remaining
shareholders—a provision of
the acquisition of its stake in
Sprint.
At a Tokyo news conference
on Monday, SoftBank Chairman Masayoshi Son said he
still sees value in Sprint as
network connectivity becomes
increasingly important to device makers, and he defended
his decision to end the merger
talks. “Sprint will become crit-
Calling Plans
Sprint’s spending on its wireless
network, in billions
$5-6
$5.4
$4.7
$3.5-4
$2.0
projected
FY ’14
’15
’16
’17
’18
Note: Fiscal year runs from April 1 to March 31
Source: the company
THE WALL STREET JOURNAL.
ical for SoftBank as a group in
five years’ to 10 years’ time,”
he said. “I’m glad we were not
rushed into a decision that
would have hurt the company
over the long term.”
Sprint said it plans to raise
money to fund its network investment. Because the carrier
has struggled to turn a profit,
traditional debt is expensive.
In recent years, it has found
creative ways to use its assets
to finance cheaper loans.
Mr. Robbiati said the carrier would do that again and
raise money using its airwaves
licenses as collateral.
For Altice, the Sprint partnership will allow it to continue growing in the U.S. Altice, whose parent company
has significant operations in
France, entered the U.S. in
2015 when it acquired regional
cable company Suddenlink.
In 2016, it acquired New
York-based Cablevision.
—Mayumi Negishi
contributed to this article.
W
Walt Disney
.................. A1,A10,B4,B6
Weight Watchers
International.............B6
Y
Yum Brands.................B4
Yum China Holdings...B4
INDEX TO PEOPLE
Kelley, John J............B12
Kenny, Gregory ........... B6
B
L
Barrett, George...........B6
Blankfein, Lloyd........B12
Boudreaux, Gail K.......B6
Brady, Kevin................A4
Broderick, Craig W....B12
Lewis, James..............A5
Liveris, Andrew N.....B12
Loeys, Jan...................B2
G
Gamble, John............B12
Gomez, Jorge..............B6
H
Hadley, Stephen.........A4
Hammack, Beth........B12
Hottovy, R.J................B4
J
Jin, Simon.................B12
K
Kaufmann, Mike ......... B6
M
Maltese, Terry ............ B2
Mauldin, Susan.........B12
McCarthy, Kevin.........A4
Miller, Dan ................ B13
Moorhead, Patrick......A5
Ross, Gary...................B1
S
Salman, Mohammed Bin
............................. B1,B13
Short, Marc.................A4
Smith, Richard..........B12
Son, Masayoshi ........ B13
Spajic, Luke...............B12
Spencer, Phil...............B4
Swedish, Joseph R.....B6
T
N
Tan, Hock....................A1
Teunissen, Ernst.........B6
Nelson, Erik...............B13
V
P-R
NIALL MCDIARMID FOR THE WALL STREET JOURNAL
A
Ackman, William ........ B6
Vince, Robin..............B12
Pant, Muktesh “Micky”
.....................................B4
Papa, Joseph...............B6
Paulson, John..............B1
Rice, John G..............B12
W
Webb, David..............B12
Y
Yanai, Tadashi.............B7
Django Davidson learned about the warrants a few years ago while mingling with attendees at Berkshire Hathaway’s annual meeting.
STREET
Continued from the prior page
exuberance. Three of the biggest losses since the S&P
500 index began in 1957 appeared to be mainly about
exuberant markets going
into reverse, with no specific
trigger. These led to losses
of a third in October 1987
and the drops of 21% and
28%, respectively, in 1966
and 1962.
Just as the market was
exuberant in 1962, 1966 and
1998, it is exuberant today.
Stock and debt markets are
expensive on almost every
measure.
Of course, everything
might continue to be fine or
have a big drop and recover.
After all, in 1998 stocks still
had two more years of powering ahead before they
crashed.
Investors have three options. At one extreme is to
push the pedal to the metal
while the going is good and
be ready to slam on the
brakes and get out quick
when trouble arrives. At the
other extreme, investors
could sit safely on the sidelines with cash and bonds,
and wait to pick up the
pieces after a crash.
Both approaches are problematic, as strategist Jan Loeys at J.P. Morgan points
out. Those going hell for
leather will find it hard to
execute a quick U-turn when
everyone tries to sell at
once; few timed it right in
2000 or 2007, when with
hindsight the sell signals
were everywhere. Equally,
those sitting on the sidelines
will need extraordinary serenity not to regret missing
out on gains like the 20% the
S&P delivered in 1999, let
alone the 86% of the technology-oriented Nasdaq Composite Index that year. This
year, the cautious are already hurting, missing gains
of 16% in the S&P and 26% in
the Nasdaq.
For Mr. Loeys, the solution is to temper regret and
reward, taking profits regularly from the riskiest positions and shifting the money
toward more defensive holdings. He likes long-dated options that might profit from
a recession further in the future, and he doesn’t like
high-yield bonds, as at just
5.5% junk bonds no longer
offer a high yield. A similar
but simpler approach would
just move some money each
month out of go-go tech
stocks into less expensive
stocks and into Treasurys.
Investors are treating
each drop as an opportunity
to get into stocks by buying
the dip. The safer strategy is
to treat each fresh high as
an opportunity to sell the
most expensive stocks and
shift to cheaper assets and
those better able to resist a
downturn.
An Expensive Market
The S&P 500 is pricey on most measures,
including price to 12-month forward earnings
25 times
20
Recession
15
10
5
0
1985
’90
2000
’10
Recessions typically bring big stock-price falls, but bear markets don’t
require recession. S&P 500 maximum drawdown: amount below peak
of prior two years
0%
–10
–20
–30
–40
–50
Recession
–60
1960
’70
’80
’90
Sources: Thomson Reuters Datastream; Thomson Reuters
2000
’10
THE WALL STREET JOURNAL.
BANKS
Continued from the prior page
bank’s stock.
The warrants give investors
the right to buy a stock at a
predetermined price. If the
stock rises far above that
“strike price,” the warrant is
like a winning lottery ticket. If
it stays below that price, the
warrant ends up worthless.
While
exchange-traded
stock options usually go out
only a couple of years, warrants often last longer. “We
were lucky it was a 10-year
warrant,” said Philippe Jabre,
a Geneva-based fund manager
who bought warrants in SunTrust Banks Inc., among others. He said the recovery took
longer than he had expected.
“There were good days and
other days when I felt like crying,” said John Hadwen, a portfolio manager at CI Investments’ Signature Global Asset
SAUDI
Continued from the prior page
ference dubbed “Davos in the
Desert” that attracted luminaries from the global financial
community such as Christine
Lagarde, the head of the International Monetary Fund, and
billionaire entrepreneur Richard Branson. At the event, the
crown prince called for Saudi
Arabia to return to a more tolerant form of Islam.
Mr. Johnson and some foreign investors predicted the
Saudi government’s crackdown
would result in a more open
and welcoming business environment in Saudi Arabia.
“There are always powerful
vested interests, which resist
change and which need to be
dislodged in order to effect
change,” said Jan Dehn, head
of research at fund manager
Ashmore Group in London,
which opened a local asset
management office in Riyadh
in 2014. “Mohammed Bin Salman is going to change Saudi
Arabia more than people imagine—and for the better.”
Yet the crackdown is touching prominent members of
Saudi society. Among the detainees is Ibrahim Al-Assaf, the
country’s former finance minister and a member of the
Aramco board of directors, according to Saudi officials. An
attempt to reach Mr. Al-Assaf
through Aramco was unsuccessful.
And it could create new potential sources of uncertainty
for investors.
Management, which has held
TARP warrants since 2010.
When his J.P. Morgan warrants
fell in value after the bank’s
2012 London whale trading
loss, Mr. Hadwen pushed to
buy the rest available, but the
Canadian asset manager’s chief
investment officer said no.
Mr. Davidson said he
learned about the warrants a
few years ago at an Omaha,
Neb., bar where he was mingling with attendees at Berkshire Hathaway’s annual meeting. Warren Buffett, the
conglomerate’s chairman, got
warrants unrelated to TARP as
a part of Berkshire’s crisis-era
investments in Goldman Sachs
Group and Bank of America.
The Miller Opportunity
Trust mutual fund said it has
notched gains of about $77
million on a $24 million investment in J.P. Morgan warrants.
When the fund bought the
warrants, “the market hated
financials and was pricing in
“The speed and breadth of
the clampdown could deal a
blow to the economy,” Jason
Tuvey, a Middle East analyst
at Capital Economics, a London-based economic-research
firm, wrote in a note to clients
on Monday. “Firms might delay investment plans as they
await to see if they will get
caught up in the allegations.”
There are signs that investors are wary. Oil prices surged
to two-year highs on Monday,
with U.S. crude prices up 3.1% to
$57.35 a barrel. Saudi Arabia is
the world’s top crude exporter.
The cost to insure against
the risk of default in Saudi
Arabia and elsewhere in the
Middle East rose on Monday,
as measured by the market for
credit default swaps.
“It’s a lot of change really
fast in a region that isn’t really
prone to a lot of quick change.
And that causes a lot of uncertainty,” said Jason Trujillo, a
portfolio manager at Invesco
Ltd. in Atlanta.
Invesco has been broadly
negative on the Middle East
since several countries including Saudi Arabia cut off diplomatic relations with the tiny
Gulf emirate of Qatar in June,
Mr. Trujillo said.
Many executives whose companies are active in Saudi Arabia were reluctant to discuss
the arrests for what they said
was fear of losing business in
the kingdom in the near future.
Kingdom Holding, whose
shares have fallen sharply over
Sunday and Monday, said on
Sunday it was “business as
usual” and that it still has the
government’s support.
pretty dire scenarios,” said Samantha McLemore, co-manager on the portfolio with Mr.
Miller.
Mr. Paulson, who made billions of dollars betting against
subprime mortgages a decade
ago, turned a roughly $100 million profit on about $600 million in bank warrant investments, according to a person
familiar with the matter. But
he could have earned more if
his funds hadn’t sold their J.P.
Morgan warrants in 2012. Mr.
Miller’s fund similarly lost out
by selling Bank of America
warrants around that time,
though Ms. McLemore said the
fund has done well by hanging
on to the bank’s common stock.
Investors got the warrants
only because the U.S. government didn’t want to hold on to
them. By late 2009, the biggest
banks had paid TARP money
back and the Treasury started
auctioning the warrants. By
the end of 2012, it had made
about $5 billion auctioning
them off to investors. In other
cases, Treasury sold the warrants back to the banks.
That has transferred the
rest of the gains to private
hands. The TARP warrants still
trading in Bank of America,
J.P. Morgan, Wells Fargo & Co.
and PNC Financial Services
Group Inc., for example, are
worth more than $2 billion
more on paper than when the
government sold. At banks
such as J.P. Morgan that hit
their strike price a while ago,
investors have likely netted
additional profits by exercising the warrants.
New York-based Maltese
Capital Management bought
2.2 million TARP warrants in
Salt Lake City-based Zions
Bancorp. from the government
for about $1.35 apiece and
held on to most of them. Today, they are worth about
$11.15 a share, a return of
around 726%. “We’d like a few
more of those,” said Terry
Maltese, the firm’s founder.
why did
the turtle cross
the ocean?
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | B3
* *
BUSINESS NEWS
China Jet Exports Set for Takeoff
Pact with FAA opens
door to the sale of
airplanes, parts in the
U.S., other nations
BY GAURAV RAGHUVANSHI
BY TREFOR MOSS
Qatar Airways Co. is buying a stake in Cathay Pacific
Airways Ltd. for $661 million,
the latest in a string of investments in global rivals by the
Middle East carrier.
In a surprise deal, stateowned Qatar Airways agreed
to acquire the 9.6% stake in
the dominant Hong Kong carrier from industrial company
Kingboard Chemical Holdings
Ltd., which has been amassing
shares in the airline for some
time.
“Cathay Pacific is a fellow
Oneworld [marketing alliance]
member and is one of the
strongest airlines in the world,
respected throughout the industry and with massive potential for the future,” said
Akbar Al Baker, chief executive of Qatar Airways, in a
statement Monday.
Cathay Pacific, which has a
reputation for stable ownership, said in a statement it intends to continue its constructive relationship with the
Qatari airline.
Hong Kong conglomerate
Swire Pacific Ltd. has carefully guarded its control of Cathay Pacific, which is known
for its premium service and is
popular with business travelers. Swire Pacific owns 45% of
the carrier, while Air China
Ltd. holds a 30% equity stake,
according to information on
Cathay Pacific’s website.
Qatar Airways’ investment
supports its strategy of taking
stakes in airlines around the
world, the airline said. The
company recently bought 49%
of Italian carrier Meridiana
and increased its stake in British Airways parent International Consolidated Airlines
Group SA to 20%. The carrier
also owns a stake in South
America’s LATAM Airlines
Group SA.
SHANGHAI—Just ahead of
U.S. President Donald Trump’s
visit to China, U.S. aviation
regulators signed a new pact
with their Chinese counterparts that effectively opens
the door to selling China-made
airplanes and parts to the U.S.
and other countries.
The agreement boosts Beijing’s hopes of eventually becoming a global supplier of
commercial jetliners and of
breaking into a market currently dominated by Boeing
Co. and Airbus SE.
The U.S. has a huge trade
surplus with China in the aerospace sector, some $14.5 billion
in 2015. China accounts for
about 20% of Boeing aircraft deliveries, and companies including General Electric Co, United
Technologies Corp. and Rockwell Collins Inc. provide parts
for the new China-built Comac
C919 jetliner, which is spearheading the country’s effort to
establish a top-tier industry.
The pact signed last month
by the Federal Aviation Administration and the Civil Aviation Administration of China,
or CAAC, follows years of talks
between the two agencies
aimed at speeding approval of
planes and parts.
The new regulatory pact
would help Comac market the
jetliner overseas, and it is holding parallel talks with the European Aviation Safety Agency.
Mr. Trump is scheduled to
arrive in Beijing on Wednesday,
bringing a tough message on the
balance of Sino-U.S. trade, which
he has long argued is skewed
unfairly against America.
In that context, completing a
pact with China in the lead-up to
the president’s visit underscored
that cooperating with the Chinese authorities to retain access
to the China’s aerospace market
remains as much of a priority as
DING TING/XINHUA/ZUMA PRESS
Qatar Air
To Acquire
9.6% Stake
In Cathay
The new China-built Comac C919 jetliner plays a big role in the country’s effort to establish a top-tier global aerospace industry.
Air Superiority
Chinese airlines now buy far more passenger jetliners than their U.S.
counterparts. Number of jets delivered:
300
250
U.S.
China
200
150
100
50
0
2000 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Source: Teal Group
extracting trade concessions.
“From a purely symbolic
standpoint this is a significant
step in U.S.-China trade, and it
happened under a president
who promised protectionism,
particularly with China trade
policy,” said Richard Aboulafia, vice president at Teal
Group Corp., an aerospace intelligence company.
THE WALL STREET JOURNAL.
The new C919 seats up to
180 passengers and competes
with the Boeing 737 and Airbus A320 jets, with the first
expected to enter service
around 2020.
However, while Comac has
garnered 300 firm orders for
the C919, almost all are from
Chinese buyers.
Analysts are wary of the
C919’s appeal in export markets,
partly because its performance
is expected to trail that of Airbus and Boeing jets and Comac
lacks a global support system to
finance and maintain aircraft.
The new pact is a step toward securing better recognition for Chinese aerospace
products in export markets. It
grants China “comprehensive
peer recognition” as an aerospace supplier, the CAAC said.
Previously, all American aviation products were eligible for
use in China, whereas only a
handful of Chinese aviation
products could enter the U.S..
But now all Chinese-built
aircraft and aviation components can potentially be sold
to U.S. customers, thanks to
the “mutual recognition” enshrined in the new agreement,
the CAAC said.
Airplanes certified by China
won’t automatically be allowed
to fly in U.S. airspace, the FAA
stressed: “these products are
subject to a validation process…defined in the agreement,” which could still include
a full technical review. This
stops short of similar agreements the U.S. has with regulators in Europe, Canada and Brazil, which all recognize each
other’s aerospace products.
For Boeing, the new pact
also opened the door to securing permission to deliver its
new 737 Max jet to Chinese
airlines, having warned this
year that approval could be
delayed until 2018. Boeing delivered the first of those
planes to Air China on Friday.
The plane maker is set to
open a facility near Shanghai
next year in partnership with
Comac to paint 737s destined
for Chinese airlines and install
seats and other fittings.
Boeing Chief Executive Dennis Muilenburg has credited
the new administration with
revising its own thinking on
how global supply chains interact. “We know as we’re investing there we’re also creating a
competitor,” Mr. Muilenburg
said of China in May.
—Kersten Zhang in Beijing
and Doug Cameron
in Chicago
contributed to this article.
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Indeed, since the Global Financial Crisis, assets
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B4 | Tuesday, November 7, 2017
* *
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
KFC Spices Up China Business
Fast-food chain tests
new payment models
and heathier offerings
after parent’s spinoff
Intel, AMD
Team Up
To Offer
PC Chips
BY TED GREENWALD
HANGZHOU, China—When
Michelle Xian wandered into
one of the fast-food restaurants at a shopping mall here
on a recent weekday, she
didn’t realize it was a KFC.
The décor featured an open
kitchen and hanging plants,
and the menu included tunaand-pesto paninis and quinoaand-corn salads. Customers
were busy placing orders via
smartphones, using QR codes
printed on tables, or through a
facial-recognition system that
matches their images to their
Alipay digital wallets.
“I don’t normally go to KFC
because it’s not that healthy,”
said Ms. Xian, 30 years old,
who ordered a chicken sandwich before being told where
she was. “This is more aligned
with new trends.”
The KFC concept store,
known as KPRO, is a testing
ground for owner Yum China
Holdings Inc. as it tries to capture a new audience and drive
growth after its spinoff from
U.S. parent Yum Brands Inc. a
year ago last week. In a strategic break from its American
counterpart, which is going
back to finger-lickin’ basics in
the U.S., Yum China is pushing
healthier offerings and technology.
Since the spinoff, China’s
biggest fast-food chain, with
more than 7,700 KFC and Pizza
Hut stores, has bought a controlling stake in an online
food-delivery company, forged
a partnership with China’s
most popular digital wallet
service and improved its
smartphone apps.
Yum China’s 63-year-old
chief executive, Muktesh
“Micky” Pant, concedes he was
Intel Corp. and Advanced
Micro Devices Inc., rivals for
decades, are teaming up to
thwart a common competitor,
Nvidia Corp.
Intel announced Monday a
laptop-computer chip that combines an Intel processor and an
AMD graphics unit. The chip is
intended for laptops that are
thin and lightweight but powerful enough to run high-end
videogames—attributes that
lately have been driving sales
in an otherwise waning market
for personal computers.
It will be the competitors’
first collaboration since the
1980s, said analyst Patrick
Moorhead of Moor Insights &
Strategy, and reflectscomplex
shifting dynamics in the semiconductor industry.
For decades, Intel and AMD
have competed for market
share in PC chips. Intel has been
dominant for much of that time,
lately holding a nearly 100%
share, according to Mercury Research. But AMD recently
launched chips that represent
the first real competition for Intel in that market for years.
AMD also recently revamped
its graphics-chip designs,
looking to take share away
from Nvidia, which has nearly
80% of the market for standalone graphics chips by
revenue.
Intel competes head-on with
Nvidia in driving artificial-intelligence calculations for large internet companies. For several
quarters, Nvidia’s business selling chips to data centers has
been up by triple digits from
the previous year, presumably
displacing sales of Intel processors. Intel last year acquired
technology to compete for that
business with the purchase of
Nervana Systems, and it expects
those chips to start shipping by
the end of the year.
Game PCs typically require
both Intel processors and highend graphics chips from AMD
or Nvidia. Intel’s new product
gives it a shot at some of the
revenue that usually goes to
those graphics chips, while generating new sales for AMD and
muscling in on Nvidia’s dominance in graphics units.
An AMD spokesman said
that laptops built on Intel’s
new chip won’t compete directly with those based on
AMD’s coming Ryzen Mobile,
another power-efficient chip
that combines general-purpose
processing and graphics.
WAYNE MA/THE WALL STREET JOURNAL
BY WAYNE MA
Self-serve kiosks at a KFC concept store in Hangzhou, China, accept customer payments through a facial-recognition system.
skeptical of the emphasis on
apps at first, telling his team
they were too complicated.
“They very politely told me
to just hang on, and I’m glad I
didn’t interfere,” he said in a
recent interview. “People have
far more apps on their phones,
and they are able to navigate
them effectively.”
Mobile payments at Yum
China’s restaurants represented 45% of sales in the
quarter ended Aug. 31, up from
17% for all of 2016. Delivery orders, most of which come from
online apps, were 14% of sales
in the period, up from 10% last
year. The company’s two-yearold loyalty program, meanwhile, has become one of the
largest in the world, with more
than 127 million members—
dwarfing industry leader Panera Bread Co. of the U.S., which
has about 25 million members.
Net income in the first eight
months of this year rose 19%
over the year-earlier period,
while system sales, which include revenue from franchises
and joint ventures, rose 10% in
the latest quarter.
“To the U.S. investor, the
numbers look meteoric,” said
Sara Senatore, an analyst at
Sanford Bernstein. Shares in
Yum China are up more than
65% since the company was
listed on the New York Stock
Exchange in November 2016.
“But Yum, broadly speaking,
is holding its own,” she added,
keeping pace with Chinese
chain-restaurant sales.
One not-so-bright spot for
Yum China is Pizza Hut. Sales
at its stores open at least a
year were flat in the most recent quarter, compared with
7% sales growth at KFC.
Yum Brands was the first
major Western fast-food company to enter China, beating
McDonald’s Corp. by three
years when it opened a KFC
near Tiananmen Square in
1987. Its success was dimmed
in recent years by food-safety
scares and stronger competition, leading the parent company to spin it off and instead
collect a percentage of sales.
“Food safety and nutrition
is a greater consideration for
Chinese consumers, while
speed of service and authenticity is more important to U.S.
consumers,” said Morningstar
analyst R.J. Hottovy, in an
email.
Technology also figures
heavily in Yum China’s strategy. The company has formed
a partnership with Alibaba
Group Holding Ltd. affiliate
Ant Financial to offer its
“smile to pay” system at the
KPRO in Hangzhou, Alibaba’s
headquarters city.
Customers go to a self-serve
kiosk to choose items on a
video screen, then pay by looking at a camera, provided they
have enabled facial-recognition
on their Alipay app. For security, they must also enter their
phone number.
Microsoft Gears Up for Videogame Turnaround
BY SARAH E. NEEDLEMAN
said his new role is designed, in
part, to give him more latitude
to reach gamers on any device,
rather than using “gaming to
make Windows more successful.”
That means, one day, more
Microsoft first-party games
could appear on other platforms, he said, such as Apple
Inc.’s iPhones or perhaps even
Sony Corp.’s PlayStation 4, as its
building game “Minecraft” does.
Mr. Spencer is overseeing
the release of the $499 Xbox
One X, which Microsoft hails
as the most powerful console
Microsoft Corp. debuts its
new Xbox One X console Tuesday, hoping a focus on live services and high-end hardware
can reverse its flagging fortunes
in the videogame business.
Microsoft in September
named Xbox chief Phil Spencer
executive vice president, reporting directly to Chief Executive Satya Nadella rather
than Windows chief Terry Myerson.
In an interview, Mr. Spencer
in the world. The machine enters a marketplace crowded
not only with the cheaper
Xbox One S, but also Sony’s
dominant PlayStation 4 machines and a resurgent Nintendo Co., whose popular
Switch handheld-console hybrid launched this year.
The companies are vying for
a share of the $33.5 billion projected to be spent on videogame console software worldwide this year, according to
industry tracker Newzoo BV.
Microsoft, trailing Sony,
stopped reporting Xbox One
sales in late 2014, a little more
than a year after its launch.
Analysts believe the Xbox One
still lags behind in sales today.
Mr. Spencer acknowledged
console sales are important,
but said Microsoft is more focused on expanding game software and services. He said the
company measures the success
of its gaming business by revealing the number of people
who use its online service
Xbox Live, for example.
In its fiscal first quarter
Apple Works on Fix
For Autocorrect Bug
Google,
Salesforce
Clinch Deal
On Services
BY JOANNA STERN
Marc Benioff, chief executive of Salesforce.com, which is a cloud-based business software vendor.
regulators to scrutinize Microsoft’s $27 billion acquisition of
LinkedIn Inc., though the deal
ultimately won approval and
closed in December.
Google Cloud, meanwhile, is
working to build credibility
among corporations wary of
committing to a company that
has little experience supporting
the technology needs of big
companies other than its own.
Its cloud-infrastructure service,
which provides computing processing and storage from its
massive data centers around
the globe, trails Amazon, Microsoft and Alibaba Group
Holding Ltd., according to industry research firm Gartner
Inc.
Salesforce already is running its Advertising Studio service, which helps companies
run digital ad campaigns, on
Google Cloud, Salesforce Chief
Executive Marc Benioff said in
an interview.
“We will in short order have
all of our products running on
Google Cloud,” he said.
As part of their deal, Salesforce will offer Google’s G Suite
productivity applications free
Global revenue for
firms providing cloud
infrastructure hit
$22.2 billion last year.
for up to one year to its customers who aren’t already using them. Salesforce has more
than 150,000 customers, and
the company said less than half
of them currently use G Suite.
“If people already have
something else that they are
using, this gives them a
chance to experience” Google’s
apps with Salesforce services,
Google Cloud CEO Diane
Greene said in an interview.
“It’s a change for us to bring
all of this to Salesforce’s customers with very little friction.”
Salesforce also intends to
weave Google Analytics, which
helps marketers analyze customer behavior, with its own
Sales Cloud and Marketing
Cloud services. The combined
services are aimed at helping
marketers more effectively target email campaigns.
Mr. Benioff acknowledged
that money was being exchanged between the companies as part of the deal, but
both he and Ms. Greene
declined to disclose terms of
the deal.
Ah, the A[?]rony.
Some people using iPhone,
iPad and iPod Touch devices
have started seeing a bug that
autocorrects a stand-alone
letter “i” to an ! or A and an
obscure symbol that often
shows up as [?].
In a support document, Apple pinned the problem on the
newly released iOS 11.1 and
suggested a workaround.
However, in our testing, several phones that were still on
iOS 11.0.3 were manifesting
the bug. Apple now says the
bug could also appear in earlier versions of iOS 11.
Some are floating theories
on why this is just popping
up and why it is only affecting some users. Apple
wouldn’t comment on the
bug’s characteristics.
Nevertheless, Apple said it
would patch the problem in
an iOS update. “A fix will be
released very soon,” an Apple
spokeswoman said. It will be
included in this week’s public
and developer beta releases,
with wide rollout to follow.
Luckily, the workaround
that Apple suggested does
work. Go to Settings > General > Keyboard > Text Replacement. Select the “+” in
the upper left corner. In the
phrase field, type “I” and
then in the shortcut field “i”
and then tap Save in the upper right corner. Then do the
opposite: Add “i” for the
phrase and “I” for the shortcut.
I began to see the bug on
the iPhone X this weekend,
after I completed my review.
Being unable to type the letter “I” in emails, tweets, Instagram posts was maddening—certainly there are
better ways to get us to reflect on how self-absorbed we
are on social media.
Needless to say, people
quickly began making fun of
Apple and the fact that the
company’s beloved letter “i”
was affected.
APPLE
MICHAEL SHORT/BLOOMBERG NEWS
BY JAY GREENE
Google Cloud has picked up
a marquee customer, Salesforce.com Inc., as the Alphabet
Inc. unit tries to keep pace
with Amazon.com Inc. and Microsoft Corp. in the increasingly competitive business of
providing web-based, on-demand computing services.
The deal, announced Monday at the start of Salesforce’s
Dreamforce customer conference in San Francisco, comes a
year and a half after the cloudbased business software vendor said it would move some
computing operations to data
centers run by the market
leader, Amazon Web Services.
Salesforce also operates its
own data centers.
World-wide revenue for the
business of providing cloud infrastructure—that is, computing processing and storage
service—hit $22.2 billion last
year, and is expected to climb
to $67 billion by 2020, according to industry research firm
Gartner Inc.
One big cloud-infrastructure
provider Salesforce hasn’t
partnered with: Microsoft’s
Azure service. Salesforce and
Microsoft announced an alliance in 2014 to enable their
products to work together
smoothly, but Salesforce is facing increased competition in its
core sales-force automation
business from Microsoft’s Dynamics applications.
Salesforce last year pressed
ended Sept. 30, Xbox Live had
53 million monthly active users, up 13% from a year earlier,
Microsoft said. Overall gaming
revenue, though, inched up 1%
to $1.9 billion, as a 48% drop
in hardware sales offset a 21%
gain in software and services.
Microsoft hopes to lure
shoppers this holiday by
bringing one of the hottest
games of the year—“PlayerUnknown’s Battlegrounds”—to
the Xbox One.
—Jay Greene
contributed to this article.
Apple pins the problem on the newly released iOS 11.1.
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.
Tuesday, November 7, 2017 | B5
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1-844-4JPM-ETF or visit jpmorgan.com/ETF. International investing has a greater degree of risk and increased volatility due to
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taxation policies outside the U.S. can affect returns. Investing involves risk, including possible loss of principal. J.P. Morgan ETFs are
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J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by Distribution Services Inc. and J.P. Morgan Institutional
Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc.© JPMorgan Chase & Co., September 2017
B6 | Tuesday, November 7, 2017
THE WALL STREET JOURNAL.
BUSINESS NEWS
Sets
Cardinal Health CEO to Step Down CVS
Next-Day
BY ALLISON PRANG
Cardinal Health Inc. said
Monday that Chief Executive
George Barrett will step down
in January after more than
eight years in the post, as
pricing pressure for generic
drugs has weighed on the
company in recent months.
Mr. Barrett, 62 years old,
will remain in his role as exec-
utive chairman until the company’s shareholder meeting in
November 2018. Lead independent director Gregory Kenny
will then become nonexecutive
chairman, the company said.
Chief Financial Officer Mike
Kaufmann, 54 years old, will
become the chief executive of
the pharmaceutical and medical-supplies distributor on
Jan. 1.
Cardinal Health also announced that Jorge Gomez,
CFO of Cardinal Health’s medical division, will be taking over
as finance chief of the entire
company.
Cardinal Health, similar to
Valeant to Sell Maker
Of Libido Treatment
At Center of Dispute
BY CARA LOMBARDO
Valeant Pharmaceuticals
International Inc. will sell
Sprout Pharmaceuticals to former Sprout shareholders, the
company said Monday, after
they accused the struggling
pharmaceutical giant of botching the marketing of a femalelibido treatment.
Valeant purchased Sprout
and its only drug, Addyi, two
years ago for about $1 billion.
Sales of the drug haven’t provided close to a return on the
investment, and this year RBC
Capital Markets predicted the
drug will generate less than
$10 million in sales.
In a lawsuit filed last year,
former Sprout shareholders alleged Valeant didn’t market
the drug effectively. Women’s
health advocates also have
questioned whether Addyi, at
one point dubbed “female Viagra,” actually increases libido.
As part of the sale agreement, the lawsuit will be permanently dismissed, Valeant
said.
Valeant will receive a 6%
royalty on Addyi sales beginning 18 months after signing
the agreement to sell Sprout
and will lend Sprout $25 mil-
lion to fund initial expenses.
Valeant also will be released from obligations of the
original purchase.
The companies didn’t disclose the sale price. They expect the sale to close by the
end of the year, subject to certain approvals.
Activist investor William
Ackman, who had personally
invested in Sprout before it
was acquired by Valeant, isn’t
among the former shareholders purchasing Sprout and
wasn’t involved with the lawsuit, according to a person familiar with the matter.
Valeant, weighed down by
more than $27 billion in debt,
is in the middle of what Chief
Executive Joseph Papa says is
a turnaround. Mr. Papa said in
prepared remarks Monday
that selling Sprout will allow
Valeant to streamline its business and focus resources on
three core areas: eye health,
gastroenterology and dermatology.
Shares in the company,
down 17% this year, rose 4.8%
on the New York Stock Exchange on Monday.
—David Benoit
and Jonathan D. Rockoff
contributed to this article.
lysts’ estimates of $1. Revenue
rose 2% to $32.6 billion.
Cardinal Health is also facing lawsuits filed by New Mexico and dozens of counties nationwide,
alleging
the
company contributed to widespread addiction to opioid
painkillers by failing to control
distribution of the drugs. In its
2017 annual report, the company said it was “vigorously
defending” itself against those
suits, which in part allege
companies violated controlledsubstance laws.
Cardinal Health announced
Mr. Barrett’s planned departure two days before its share-
other pharmaceutical wholesalers and manufacturers, has
been hurt by lower genericdrug prices, which the company said in April won’t improve until the middle of 2018.
On Monday, the company
said first-quarter profits in its
pharmaceutical division fell
13% compared with last year,
partly due to the decline in generic drug prices.
Overall profit fell 63% from
a year ago to $115 million, as
higher expenses also weighed
on the firm. On an adjusted
basis, earnings fell 13% to $346
million. Adjusted earnings per
share were $1.09, beating ana-
holder meeting.
Last month, the International Brotherhood of Teamsters sent a letter to shareholders saying the structure of
Cardinal Health’s board was
“inadequate” to respond to its
“decadelong role in fueling the
opioid crisis.” The Teamsters,
whose funds own over $27
million of shares of Cardinal
Health, asked shareholders to
vote to remove Mr. Barrett as
chairman.
Cardinal Health said in an
emailed statement that “the
separation of chairman and
CEO was not in response to
any group.”
Anthem Turns to Industry Veteran for Top Job
ANTHEM
Move comes as lower
generics prices squeeze
profits, and company
faces suits over opioids
Anthem Inc. Chief Executive
Joseph R. Swedish will step
down, and veteran managedcare executive Gail K. Boudreaux
will take over as the insurance
giant’s next leader Nov. 20.
Ms. Boudreaux will take the titles of chief executive and president, the company said. She also
will join Anthem’s board. Mr. Swedish will remain as executive chairman until May 2018 and will be a
senior adviser through May 2020.
Ms. Boudreaux, 57 years old,
is well known among managed-
care investors, previously serving
as chief executive of the biggest
U.S. health insurer, the insurance
arm of UnitedHealth Group Inc.
She has experience overseeing
Blue Cross Blue Shield plans like
those that Anthem operates.
Anthem, the second-biggest
health insurer, had revenue of
around $84.9 billion last year.
Mr. Swedish, 66, would be
leaving after his signature strategic effort, Anthem’s $48 billion
bid to buy Cigna Corp., ran
aground earlier this year. How-
ever, since the beginning of the
year, Anthem shares have risen
by 47%, along with strong results across the health-insurance
sector and Anthem’s announced
pullback from the Affordable
Care Act exchange business.
The Cigna deal was blocked by
courts on antitrust grounds, but it
was already mired in acrimony between the companies’ top executives. Anthem and Cigna are currently suing each other for billions
of dollars in damages.
—Anna Wilde Mathews
Delivery
Of Drugs
BY SHARON TERLEP
CVS Health Corp. is launching next-day delivery of prescription medication, a move
that comes as the drugstore
giant faces declining retail
sales and potential competition from Amazon.com Inc.
CVS on Monday said it
would offer the service nationwide starting early next year,
and same-day delivery in some
urban areas. In Manhattan, the
company will offer free sameday delivery service starting
Dec. 4.
CVS declined to say what
company it paired with to offer nationwide delivery. The
prescriptions will be shipped
from pharmacies and a selection of store products also will
be eligible for delivery.
As the pharmacy industry
shifts, CVS’s revenue has declined in its retail locations.
On Monday, it reported that
retail sales, including prescriptions, fell 2.7% to roughly 42%
of overall revenue in the period ended Sept. 30, while revenue in its pharmacy benefit
manager, or PBM, operations
jumped 8.1%.
Meanwhile, Amazon is considering entering the pharmacy business, which is a factor in CVS’s decision to pursue
a $66 billion bid for insurer
Aetna Inc. CVS executives, in
discussing quarterly earnings
results on Monday, didn’t address talks with Aetna, reported last month by The Wall
Street Journal.
Asked how much delivery
would cost, Helena Foulkes,
who runs the company’s retail
business, didn’t specify but
said CVS was able to “use our
scale to secure a low-cost,
competitive option” that the
company believes customers
will pay for.
For the quarter, CVS reported a profit of $1.3 billion,
or $1.26 a share, down 1.3%
from $1.5 billion, or $1.43 a
share, a year ago.
BUSINESS WATCH
PRICELINE GROUP
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with all interest due in the amount of US$51,301.50 for a total final amount
of US$4,512,301.50 on November 30, 2017.
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Outlook Dims
Despite Growth
Priceline Group Inc. lowered
its profit outlook for the final
quarter of the year even as it
continued to report rapid revenue growth from customers
booking vacations and hotels on
its travel sites.
The company forecast adjusted per-share earnings in the
current quarter at $13.40 to $14,
significantly below the $15.56 a
share analysts had expected.
The Connecticut company
said travel bookings—the total
dollar value of travel services
purchased by customers including taxes and fees—grew 18%
during the third quarter, outpacing its prior guidance of up to
15% growth. A year earlier, the
metric showed growth of 25%.
Priceline reported a profit of
$1.72 billion, or $34.43 a share,
up from $506 million, or $10.13
a share, a year earlier. On an adjusted basis, the company reported per-share earnings of
$35.22, compared with $29.69 a
year earlier. Revenue jumped
20% to $4.43 billion. Analysts
polled by Thomson Reuters had
forecast earnings of $34.25 a
share on $4.34 billion in sales.
—Imani Moise
TRIPADVISOR
Revenue Falls Short
Of Expectations
TripAdvisor Inc. shares tumbled 8.8% after hours as the
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The Board of Directors of Canadian
National Railway Company has declared
a quarterly dividend of CDN$ 0.4125
per share on the outstanding common
shares. The quarterly dividend is
payable on December 29, 2017 to
shareholders of record at the close
of business on December 8, 2017.
By order of the Board
Sean Finn
Executive Vice-President
Corporate Services and
Chief Legal Officer
Montreal, Quebec
October 24, 2017
www.cn.ca
SPENCER PLATT/GETTY IMAGES
Notice of Redemption of
Michael Kors and other brands have tried to reduce promotions and sell more items at full price.
nue well under expectations.
The company, whose stock
fell $3.48 to $36.05 in extended
trading Monday, tempered its
sales outlook in the second
quarter, but sales of $439 million still missed revised estimates of about $454 million.
The website, which generates
revenue from advertising, has
been coping with a faster-thanexpected shift toward mobile,
where the company gets less
money per eyeball.
Hotel-related revenue, which
makes up for over 70% of sales,
slipped 3% during the quarter.
“Reigniting near-term hotel
growth has been more difficult
than expected,” finance chief
Ernst Teunissen said.
—Imani Moise
WEIGHT WATCHERS
New CEO Promotes
Home Deliveries
Weight Watchers International Inc. continues to test
meal-delivery services, the company’s chief executive officer,
Mindy Grossman, said.
“We feel that will be an opportunity in the year ahead,” said
Ms. Grossman, who joined the
weight-loss company last summer after serving as CEO of HSN.
“Since I’ve been at the company, one thing I’ve really focused on is an assessment of all
our products around the globe,”
Ms. Grossman said. “My background is in licensing and product development, and we have
great opportunities—meal delivery is one of those.”
—Ellen Byron
MICHAEL KORS
Strong Earnings
Propel Stock
Shares in Michael Kors Holdings Ltd. shares rose nearly 15%
Monday after the company reported fiscal second-quarter earnings that beat analyst estimates.
The company warned, however, that third-quarter sales
would face headwinds as it reduces promotions further in its
retail and department stores.
It expects sales at stores
open at least a year to decline
more than 5% in the third quarter. Additionally, third-quarter
earnings will be hurt by a shift
in some expenses from the second quarter.
Michael Kors, Coach and
other brands have tried to reduce promotions and sell more
items at full price. In a sign the
strategy is working, sales of Michael Kors products at department stores rose 2.5% in the
second quarter as the company
replenished items it had sold at
full price.
Michael Kors stock traded up
$7 at $54.62 in 4 p.m. composite
trading on the New York Stock
Exchange Monday.
—Suzanne Kapner
CENTURYLINK
Landline Giant
Suffers Disruption
Landline giant CenturyLink Inc.
said it suffered a network disruption that affected internet-protocol services for some customers.
“The disruption was caused
by a configuration error,” a
spokeswoman said, adding
“technicians were able to restore
service within approximately 90
minutes.”
Service hiccups are nothing
new, but the outage raised eyebrows days after CenturyLink
closed its merger with Level 3,
another internet backbone owner.
—Drew FitzGerald
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.
Tuesday, November 7, 2017 | B7
* *
BUSINESS NEWS
Uniqlo Founder Thinks U.S. Needs Fewer Malls
BY KHADEEJA SAFDAR
Tadashi Yanai, the Japanese billionaire behind the
biggest apparel maker in
Asia, is taking another crack
at the U.S. market.
The 68-year-old chairman
and chief executive of Fast
Retailing Co., which operates more than 1,700 Uniqlo
stores in Asia, once planned
to add hundreds of locations
across the U.S.
He slowed those expansion plans in 2015 after sales
at stores he initially opened,
particularly in suburbs,
missed forecasts.
In 2014, he also considered buying J. Crew Group
Inc., but talks eventually
broke down.
Uniqlo has been moving
into the U.S. with stores in
major cities and vending machines in airports.
Speaking through a
translator in an interview
in New York, Mr. Yanai
talked about why he thinks
there is still room for his
chain in a crowded U.S.
market.
Below are edited excerpts
from the conversation:
WSJ: What can retailers do
to encourage more shoppers
to visit their stores?
MR. YANAI: First and foremost in the United States,
you tend to have way too
many malls.
You tend to build another
shopping mall next to the existing mall, and people could
be at a loss to which mall
they should go to.
All of the tenants look
alike and that’s not necessarily appetizing for the shoppers, I’m afraid…
What we found out was
that we need to focus on major cities in the United States
and have multiple stores and
footprints.
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.
Monday, November 6, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
CLSelPrTechGrFd STK
24.01 1.5
1.3
3.7
114.84 5.0
28.61 1.2
135.83 0.2
28.61 2.3
26.00 0.2
81.77 0.3
14.51 0.8
22.65 0.2
11.88 5.7
69.63 1.5
86.75 1.2
5.00 2.5
31.82 0.8
38.48 0.5
55.95 1.8
15.69 0.4
65.60 1.0
37.90 1.6
36.90 4.1
64.24 0.7
18.75 2.2
104.83 0.6
47.37 0.8
66.19 2.7
33.75 0.3
57.70 0.6
63.16 1.2
83.47 0.7
44.84 0.5
16.97 2.1
73.45 0.3
42.23 4.8
33.58 2.0
44.99 1.2
237.94 0.5
94.00 0.7
14.85 1.8
76.00 -0.2
25.67 0.5
13.20 0.1
53.94
COP
NYSE highs - 168 ConocoPhillips
CrownCastlePfdA CCIpA 1142.00
AdamsDivEquityFd ADX
AlamoGroup
ALG
AlexandriaRealEst ARE
Allstate
ALL
AllyFinancial
ALLY
AlonUSAPartners ALDW
Ameresco
AMRC
AmericanExpress AXP
AmHomes4RentPfdF AMHpF
AmerTowerPfdB AMTpB
AmerTowerREIT AMT
Andeavor
ANDV
Anthem
ANTM
AnthemUn
ANTX
Aquantia
AQ
AristaNetworks ANET
ArtisanPtrsAsset APAM
AspenAerogels ASPN
BP
BP
BkNovaScotia BNS
BectonDickinson BDX
BectonDickinsonPfA BDXA
Bio-RadLab B BIO.B
Bio-RadLab A BIO
BlkRkRscs&Comm BCX
BlkRkSci&Tech BST
BroadridgeFinl BR
CBRE Group
CBG
CF Industries CF
CNOOC
CEO
CVR Energy
CVI
CVR Refining CVRR
Cabot
CBT
CabotOil
COG
CadenceBancorp CADE
CanNaturalRes CNQ
Care.com
CRCM
Carters
CRI
ChathamLodging CLDT
ChoiceHotels CHH
15.80
114.57
126.52
99.44
26.93
13.87
8.80
96.73
26.21
132.22
150.96
112.21
220.00
54.72
10.71
207.35
36.80
4.96
41.46
65.85
225.23
59.93
261.55
265.88
9.09
27.05
87.71
41.11
39.32
143.39
31.61
12.90
64.66
29.03
25.49
36.78
20.88
99.90
22.70
74.70
0.6
2.6
0.3
1.3
0.6
4.6
10.8
-0.1
-0.1
5.7
5.7
1.3
2.1
1.0
9.7
2.6
0.8
2.3
2.1
0.4
-1.0
-0.8
2.6
-0.6
0.6
1.7
0.4
2.1
1.6
2.7
3.6
2.4
0.4
1.9
0.9
2.0
4.9
1.6
0.8
5.7
CrownCastle
CCI
CubeSmart
CUBE
Deere
DE
DelekUS
DK
DriveShackPfdB DSpB
EMCOR
EME
EtnVncEqtyInco EOI
EtnVncTxAdvDiv EVT
Ecopetrol
EC
EquityResdntl EQR
ExtraSpaceSt EXR
FangHoldings SFUN
FederatedInvest FII
FidelityNatlFin FNF
FirstAmerFin FAF
FT EnhEquity FFA
FirstCash
FCFS
Fortis
FTS
GTT Comm
GTT
Gallagher
AJG
GasLog
GLOG
GlobalPayments GPN
GoDaddy
GDDY
GraniteConstr GVA
GreatPlainsEner GXP
GreenDot
GDOT
GrubHub
GRUB
GuidewireSoftware GWRE
HFF
HF
HeritageInsurance HRTG
Hilton
HLT
HollyFrontier
HFC
HondaMotor
HMC
DR Horton
DHI
HuntingtonIngalls HII
IDACORP
IDA
IONGeophysical IO
Ingevity
NGVT
InvestorsRE PfdC IRETpC
JapanSmlCap JOF
52-Wk %
Sym Hi/Lo Chg
JonesLangLaSalle JLL
KAR Auction KAR
KB Home
KBH
KBR
KBR
Kemper
KMPR
KeysightTechs KEYS
KosmosEnergy KOS
Kraton
KRA
LambWeston LW
LasVegasSands LVS
LibertyAllStar USA
LiveNationEnt LYV
MI Homes
MHO
MSCI
MSCI
MainStreetCap MAIN
ManchesterUnited MANU
Manitowoc
MTW
Manpower
MAN
MarriottVacations VAC
McDonalds
MCD
MichaelKors
KORS
MiXTelematics MIXT
ModineMfg
MOD
MolinaHealthcare MOH
NRG Energy
NRG
NatlPrestoInds NPK
NatlStorage
NSA
NexPointResidentl NXRT
Oppenheimer A OPY
OrionEngCarbons OEC
PBF Energy
PBF
PGT Innovations PGTI
PaycomSoftware PAYC
Penumbra
PEN
PrincipalFin
PFG
Progressive
PGR
PureStorage
PSTG
QTS Realty
QTS
QuakerChemical KWR
QuintilesIMS
Q
RPC
RES
Rayonier
RYN
Renren
RENN
140.99
49.38
27.98
21.16
68.13
45.11
8.57
51.23
52.47
67.38
6.22
44.51
34.11
127.78
41.21
18.75
10.36
126.26
143.53
170.42
55.01
11.40
23.70
80.65
28.49
121.40
26.27
27.82
23.65
25.45
31.78
15.20
83.11
104.05
69.46
50.40
16.65
59.91
163.36
109.29
26.45
31.00
11.98
4.1
1.5
3.2
4.0
4.0
0.7
4.6
1.7
-0.1
1.0
0.2
1.5
2.1
1.3
0.3
1.6
1.2
-0.7
0.2
0.8
14.7
3.2
-1.7
-0.3
2.3
0.5
1.9
3.3
0.2
0.6
2.1
1.0
2.0
2.5
1.3
0.1
0.5
2.0
1.6
0.5
3.0
0.6
-2.5
WSJ: You had explored some
acquisitions, like J. Crew.
Would you ever consider doing an acquisition to enter
the U.S. market?
MR. YANAI: I have no intention to acquire any brand
and company. If we acquired
a company, [we] would have
to go through the painstaking process of converting the
culture to assimilate into
ours.
If you look at U.S. retailers, in particular the apparel
segment, the performance is
not impressive at the moment. So I remain not interested.
WSJ: Since you aren’t interested in acquisitions, what is
your strategy to grow your
online business?
MR. YANAI: Potential acquisitions and partnerships [in
digital or delivery] could be
[conceivable] because these
are not necessarily our areas
52-Wk %
Sym Hi/Lo Chg Stock
ResoluteForest RFP
RoyalDutchA RDS.A
RoyalDutchB RDS.B
RoyceValue
RVT
SabineRoyalty SBR
SafeBulkers
SB
SantanderConUSA SC
ScorpioBulkNt19 SLTB
SemicondctrMfg SMI
ServiceCorp
SCI
Sony
SNE
SpiritAeroSys SPR
Square
SQ
Statoil
STO
STMicroelec
STM
SunCommunities SUI
SuncorEnergy SU
TE Connectivity TEL
TaiwanFund
TWN
TeekayOffshrPfB TOOpB
TeledyneTech TDY
Total
TOT
TotalSystem
TSS
ToyotaMotor TM
TrancntlRlty
TCI
Tri-Continental TY
TritonIntl
TRTN
TwoHarborsPfdB TWOpB
UnitedRentals URI
UnitedHealth UNH
UnumGroup
UNM
Visa
V
VailResorts
MTN
VirtusGlbDiv&Incm ZTR
WNS
WNS
W.P.Carey
WPC
WellCareHealth WCG
WstAstVarRte GFY
Workiva
WK
XPO Logistics XPO
ZTO Express ZTO
Zoetis
ZTS
9.00
65.83
67.40
16.11
43.60
3.79
17.05
25.75
9.14
36.37
45.96
83.41
37.75
20.87
24.80
93.40
35.73
93.68
21.73
26.00
183.60
56.97
73.84
125.75
30.19
26.19
41.37
26.79
148.52
213.93
53.17
112.15
236.86
13.61
41.82
70.50
208.89
17.52
23.00
74.41
17.37
70.48
8.1
2.2
2.1
0.4
1.5
3.8
-0.2
-0.4
4.2
1.2
2.4
1.0
0.8
2.6
0.8
0.9
1.3
0.3
0.4
3.6
0.6
1.1
1.9
...
0.3
0.2
0.8
...
2.5
-0.4
1.2
0.5
0.5
1.3
1.0
-0.6
-0.7
...
-0.2
0.8
3.7
1.5
NYSE lows - 51
AES
AES
AMC Ent
AMC
ARCDocumentSolns ARC
AT&T
T
ArcherDaniels ADM
ArmstrongFlooring AFI
BlueCapReins BCRH
Build-A-Bear
BBW
10.34
11.45
2.60
32.55
39.10
13.32
12.55
7.55
-1.3
2.5
-1.8
-1.3
-1.3
5.7
-1.9
-3.2
MICHAEL BUCHER/THE WALL STREET JOURNAL
In interview, billionaire discusses apparel chain’s expansion plans and what kinds of deals he would do
Tadashi Yanai, chairman and CEO of Uniqlo owner Fast Retailing
of expertise. But whether or
not it’s worthwhile to invest
or to acquire is yet to be
known.
WSJ: As more sales shift online, do you think any stores
in the U.S. are doing an exemplary job?
52-Wk %
Sym Hi/Lo Chg Stock
CBL Assoc
CBL
CVS Health
CVS
Cambrex
CBM
CapsteadMtg CMO
CardinalHealth CAH
CenturyLink
CTL
DeanFoods
DF
EdgewellPersonal EPC
EnvisionHlthcr EVHC
EvolentHealth EVH
FT SrFR Incm FCT
GameStop
GME
GeneralMills
GIS
GranitePointMtg GPMT
HarleyDavidson HOG
Interpublic
IPG
KimberlyClark KMB
Macy's
M
NewSeniorInvt SNR
NordicAmerTankers NAT
Nordstrom
JWN
PQ Group
PQG
PandoraMedia P
PartyCity
PRTY
PennyMacTr
PMT
PIMCOCAMuniIII PZC
PitneyBowes PBI
RAIT Financial RAS
RR Donnelley RRD
RubiconProject RUBI
Smucker
SJM
Sprint
S
StandardMotor SMP
Switch
SWCH
Tegna
TGNA
3D Systems
DDD
TwoHarbors
TWO
UnderArmour A UAA
UnderArmour C UA
VoyaPrimeRate PPR
WashingtonPrime WPG
WeisMarkets WMK
WideOpenWest WOW
5.54 -6.1
66.45 -3.5
42.55 -3.4
8.52 -0.3
57.55 -1.8
16.04 1.8
9.18 -1.3
59.89 -0.5
26.34 -0.7
10.48 -17.0
12.94 0.1
17.71 -1.5
50.08 -2.4
17.54 0.7
44.99 -4.0
18.81 0.8
109.69 -0.8
17.94 -1.1
8.11 -0.4
4.09 -1.7
38.16 2.0
15.45 -1.3
5.19 -5.5
9.50 -1.8
14.94 -1.6
10.31 -0.4
10.96 -2.4
0.36 -10.0
8.20 -4.4
1.98 -3.9
99.86 -2.2
5.72 -11.5
42.27 -0.8
18.00 0.2
11.59 0.2
8.09 -5.7
15.22 -2.4
11.40 3.5
10.36 3.6
5.08 -0.4
6.85 -1.9
31.26 -15.8
12.33 0.8
NYSE Arca highs - 205
ALPS EqSecWgh EQL
AdvShKIMKorea KOR
AdvShNewTech FNG
AlphaCloneAltAlpha ALFA
CSOPFTSEChinaA50 AFTY
ColumbiaIndiaCnsmr INCO
ColumbiaIndiaSC SCIN
67.75
31.98
23.08
42.57
18.09
46.74
22.24
0.4
-1.5
0.7
0.9
0.6
1.8
1.0
52-Wk %
Sym Hi/Lo Chg Stock
ColumbiaSustIntl ESGN
CSAxela3xLgBrent UBRT
CS FI LC Grwth FLGE
DirexCSI300CnABl2 CHAU
DirexFinlBull3 FAS
DirexJapanBl3 JPNL
DirexIndiaBull3 INDL
DirexS&P500Bl3 SPXL
DirexS&P500Bull2X SPUU
DirexS&P500Bl1.25 LLSP
DirexSemiBl3 SOXL
DirexTechBull3 TECL
EmgMktInternetEcom EMQQ
ETFMG VideoGame GAMR
E-TRACS CMCI UCI
ElemntsRogrMrngstr WMW
ElemntsRogrTr RJI
FIEnhancedGlbHiYd FIEG
FidelityMSCIIT FTEC
FidelityMomFactor FDMO
FT FinlsAlpDx FXO
FT GlbEngg
FLM
FT TechAlphaDEX FXL
FT USEquityOpp FPX
FlexGlbUpstmNatRsc GUNR
FlexShMDevMktxUS TLTD
GlbX ChinaEner CHIE
GlbX FTSE SE Asia ASEA
GlbX GuruIndex GURU
GlbXMSCIArgentina ARGT
GlbXSciBetaAsiaXJ SCIX
GSActiveBetaEM GEM
GSActiveBetaUSLC GSLC
GSHedgeIndVIP GVIP
GraniteBloomComm COMB
GraniteS&P Comm COMG
GuggBRIC
EEB
GuggChinaAllCap YAO
GuggChinaTech CQQQ
GuggS&P500EWTech RYT
GuggS&P500PureGr RPG
GuggS&P400PrGrwth RFG
GuggS&P400PureVal RFV
GuggIntlMltAst HGI
GuggS&P500Top50 XLG
GuggS&PGlblWtr CGW
GuggS&P100EW OEW
GuggSolar
TAN
HartfordMultiUSEqu ROUS
HullTacticalUS HTUS
IQ50%HdgFTSEEur HFXE
IQ HedMacrTrac MCRO
Inspire100ETF BIBL
31.11
153.00
214.95
28.95
62.18
74.39
99.88
41.73
46.89
34.69
163.25
111.15
38.06
46.30
15.19
29.19
5.36
166.08
50.20
30.75
30.54
59.53
51.55
66.24
32.31
68.35
11.87
16.02
28.90
33.28
26.27
35.13
51.46
52.86
26.27
27.22
38.11
35.42
62.38
143.49
104.16
150.65
66.00
17.33
184.33
35.40
32.97
24.90
29.79
28.34
20.37
26.55
25.27
-0.5
10.6
0.2
2.5
0.7
-0.1
1.3
0.4
0.9
0.3
4.3
0.6
1.9
0.6
2.1
-1.2
2.1
0.7
0.4
0.3
0.3
1.3
0.6
0.2
1.2
0.3
2.1
0.4
0.8
1.2
0.3
1.1
-0.1
0.6
1.4
2.9
1.7
0.8
3.2
0.5
0.3
0.5
0.9
0.4
0.1
0.5
0.6
1.8
0.2
0.1
0.2
0.3
0.6
MR. YANAI: I don’t think
100% of the sales will go online. Probably the mix of the
online business will be 30%.
If you are looking for bottled
water, detergent, you need
the same product time and
time again. Online could be
the better channel [for that]
52-Wk %
Sym Hi/Lo Chg Stock
iPathBloomNickelTR JJN
iPathAIGCarbon GRN
iPathGSCI nts GSP
iPath MSCI India INP
iShCoreMSCIEmgMk IEMG
iShCoreMSCIPacific IPAC
iShModAllocation AOM
iShCoreS&P500ETF IVV
iShCoreS&PMdCp IJH
iShS&PTotlUSStkMkt ITOT
iShCurHdgMSCIACWI HACW
iShCurHdgMSCIUS HAWX
iShCurHdgMSCIEAFE HSCZ
iShCurrHdgMSCISK HEWY
iShCurHdgMSCISwitz HEWL
iShU.S.Technology IYW
iShEdgeMSCIMinJapn JPMV
iShEdgeMSCIMlIntSC ISCF
iShEdgeMSCIMultUSA LRGF
iShGlobal100 IOO
iShJPX-Nikkei400 JPXN
iShACWILowCarbon CRBN
iShMSCIAllPeruCap EPU
iShMSCIBRICETF BKF
iShMSCIEmgMarkets EEM
iShMSCIGloblEnProd FILL
iShMSCIKLD400Soc DSI
iShMSCIKokusaiETF TOK
iShMSCIPhilippines EPHE
iShMSCIUSAEqWeight EUSA
iShMSCIWorldETF URTH
iShMorningstarLC JKD
iShMornLCGrowth JKE
iShMornMCGrowth JKH
iShRussell1000Gwth IWF
iShRussell1000ETF IWB
iShRussell3000ETF IWV
iShRussellTop200Gr IWY
iShRussellTop200 IWL
iShS&P100
OEF
iShS&PMC400Growth IJK
iShS&P500Growth IVW
iShGlobalTechETF IXN
iShGlobalConsDiscr RXI
iShrsSP GSCI Cmdty GSG
iShNorthAmerTech IGM
iShDowJonesUS IYY
HancockTech JHMT
JPMDivRetEurCur JPEH
JPM DivRetGlEq JPGE
KnowldgLdrDevWrld KLDW
KraneBoseraChinaA KBA
OppGlbESGRevenue ESGF
15.88
10.15
15.17
86.95
56.51
59.16
38.38
260.77
184.14
59.33
29.00
27.13
30.93
32.01
27.62
163.86
67.34
31.82
31.08
91.94
64.24
115.47
42.70
44.87
46.87
21.30
95.71
63.89
38.02
53.46
86.41
155.26
152.92
197.17
131.05
144.16
153.48
71.33
59.63
114.81
210.63
149.65
155.32
104.83
16.07
168.91
129.70
41.36
29.43
61.67
32.89
34.71
30.77
2.1
4.1
3.4
0.6
1.0
0.1
0.3
0.2
0.4
0.2
0.8
0.1
0.3
3.1
...
0.4
0.1
0.3
0.2
0.3
0.2
0.2
0.7
1.6
1.1
1.5
0.2
0.2
1.9
0.5
0.4
0.2
0.4
0.4
0.2
0.1
0.2
0.2
0.1
0.1
0.4
0.2
0.5
0.5
2.1
0.5
0.2
0.5
...
0.3
0.2
1.2
0.2
52-Wk %
Sym Hi/Lo Chg Stock
PwrShUsRealEst PSR
PwrShDBComTr DBC
PwrShDBEnergy DBE
PwrShDynLC Grwth PWB
PwrShRussMCGrw PXMG
PwrShRuss1000EqWt EQAL
PwrShRussTop200G PXLG
PwrShS&P500Down PHDG
PwrShS&P500Mom SPMO
PwrShS&P400LowVol XMLV
PwrShWldrClean PBW
ProShShtVIXST SVXY
ProShrUltraDow30 DDM
ProShrUltraQQQ QLD
ProShrUltraS&P SSO
ProShrUlSemi USD
ProShrUlTech ROM
ProShUltDow30 UDOW
ProShUltS&P500 UPRO
SPDRBloomBarCvSecs CWB
SPDRFactSetInnTech XITK
SPDRGlobalDow DGT
SPDR NYSE Tech XNTK
SPDRPtfLTCorpBd SPLB
SPDRS&P500Growth SPYG
SPDR Ptf TSM SPTM
SPDR S&P500MidGr MDYG
SPDRS&P500Fossil SPYX
SPDRS&PGlbNatRes GNR
SPDRS&PSft&Svs XSW
SPDRSSgAGlbAll GAL
SPDRSSgAMultiAsset RLY
SchwabFundIntLrgCo FNDF
SchwabFundIntlSmCo FNDC
SchwabFundUSBrd FNDB
SchwabIntlSC SCHC
Schwab1000Index SCHK
SchwabUS BrdMkt SCHB
SchwabUS LC SCHX
SchwabUS LC Grw SCHG
SchwabUS MC SCHM
SPDR DJIA Tr DIA
SPDR MSCI exUS CWI
SPDR S&PMdCpTr MDY
SPDR S&P 500 SPY
SPDR SP China GXC
SPDR SP EmAsPac GMF
SPDR IntlSC
GWX
SPDR S&P Semi XSD
Whiskey&SpiritsETF WSKY
TechSelectSector XLK
UBS FIEnhLCGrw FBGX
USAACoreInterBd UITB
81.88
16.55
14.42
40.59
40.59
30.12
44.75
26.85
33.63
45.35
25.44
109.31
119.51
71.61
102.53
134.14
89.54
81.16
127.10
52.03
80.25
82.76
84.43
28.30
32.34
32.20
153.48
62.91
47.84
69.00
37.69
25.88
30.54
35.73
35.74
36.55
25.45
62.63
61.88
68.72
51.51
235.59
38.85
335.71
259.00
108.05
104.73
35.99
73.29
32.12
63.65
214.07
50.29
1.3
1.9
2.9
0.1
0.4
0.5
0.4
...
0.3
0.3
1.9
0.8
0.1
0.7
0.3
2.4
1.0
...
0.4
0.8
0.7
0.4
0.5
0.1
0.4
0.1
0.4
...
0.9
-0.1
0.3
0.9
0.2
0.4
0.2
0.3
0.2
0.2
0.2
0.3
0.5
0.1
0.5
0.4
0.2
1.3
0.7
0.7
3.0
0.3
0.2
0.5
...
because you do not have to
carry it. In the case of clothing, the fabric, the size, the
color or the thread could be
different [from the last purchase]. You need to verify
how it feels. Some people
may prefer to buy on a
smartphone and some people
may prefer to come to the
store.
WSJ: There’s a debate at
many retailers: data versus
the skill of a merchant. Do
you think the age of merchants is over?
MR. YANAI: Data would
never substitute the merchant. How do you interpret
the data? That’s the merchant’s skill set. You need to
uncover the insight that is
buried in the data and the
merchants need to uncover
it. Even if you employ artificial intelligence to help you,
the numbers [don’t tell] the
future.
52-Wk %
Sym Hi/Lo Chg Stock
USAACoreST USTB
USAA USA ValMom ULVM
USBrentOilFd BNO
USDieselHeatingOil UHN
USGasolineFd UGA
US3xOilFd
USOU
VanEckGaming BJK
VanEckIndiaSC SCIF
VanEckOilRefin CRAK
VanEckRussiaSC RSXJ
VanEckSemiconduc SMH
VangdInfoTech VGT
VangdAWxUSSC VSS
VangdFTSE Pac VPL
VangdGrowth VUG
VangdLC
VV
VangdMegaCap MGC
VangdMegaGrwth MGK
VangdS&P500 VOO
VangdS&P500 Grw VOOG
VangdS&P400Grwth IVOG
VangdTotalStk VTI
VangdTotlWrld VT
VirtusWMCGlb VGFO
WBITacticalHiIncm WBIH
WBITacticalLCGD WBIE
WBITacticalRotatn WBIR
WisdTrCBOES&P500 PUTW
WisdTrEMxSOE XSOE
WisdTrIndiaEarn EPI
WisdTrIntDivxFin DOO
WisdTrJpnHlthCare DXJH
WisdTrUSEarn500 EPS
WisdTrUSLCValueFd EZY
XtrkrsHarvCSI300 ASHR
XtrkrsMSCIAllChina CN
XtrkrsMSCIAWxUS DBAW
XtrkrsMSCIAPxJapan DBAP
XtrkrsMSCIEM DBEM
50.23
50.74
17.31
18.33
33.07
39.52
43.50
64.37
29.29
43.94
104.27
165.38
117.57
71.99
137.71
118.90
89.08
108.92
237.89
134.26
130.60
133.17
72.72
25.49
24.90
25.10
25.37
29.74
31.11
27.37
43.56
36.11
89.76
78.51
30.83
37.54
28.23
29.14
24.38
0.1
0.6
3.4
3.0
2.0
17.3
0.8
0.8
0.8
1.1
1.3
0.4
0.5
0.1
0.3
0.1
0.1
0.3
0.2
0.3
0.4
0.2
0.3
0.4
0.3
0.2
0.3
...
1.1
0.4
0.6
...
-0.1
-0.1
1.3
1.0
0.1
1.3
0.6
52-Wk %
Sym Hi/Lo Chg
GlbXSuperIncPfd SPFF
GuggBS2025HYCpBd BSJP
ProShShtDow30 DOG
ProShShortQQQ PSQ
ProShShrtS&P500 SH
ProShUltTelecom LTL
ProShUltVIXST UVXY
ProShUltShtDow30 SDOW
ProShUltProShS&P SPXU
ProShUlt3xShCrude OILD
ProShUltBloomCrd SCO
ProShUltShDow30 DXD
ProShrUS MSCI EAFE EFU
ProShUltShtQQQ QID
ProShUltShtS&P500 SDS
ProShrUSSemi SSG
ProShrUSTech REW
ProShrUSUtil SDP
ProShsVIXSTFut VIXY
UBSProSh3xInvCrd WTID
US ShortOilFd DNO
US3xShrtOilFd USOD
VangdTelecom VOX
VelocityShLIBOR DLBR
Velocity3xInvCrude DWT
VirtusEnhShrtUS VESH
33.29
14.46
64.33
97.25
31.80
9.72
13.04
33.22
31.68
14.65
7.12
-1.0
...
-6.6
-5.7
-1.3
-3.5
-0.8
-0.4
-0.2
-4.2
-0.7
0.3
-0.3
-0.2
-0.3
-0.2
-3.7
-1.9
-0.2
-0.4
-8.9
-5.9
...
-0.3
-0.7
-0.3
-3.1
-1.0
0.8
-1.0
-8.9
-3.1
-8.7
-1.4
-2.6
-9.0
-0.8
NYSE American highs - 7
Ashford
AINC
Chase
CCF
CloughGlblDiv GLV
CloughGlblOpp GLO
LadenburgThalmann LTS
SparkNetworks LOVw
StoneEnergyWt SGY.WS
81.81 10.4
127.65 4.6
14.35 1.0
11.62 0.1
3.25 3.2
10.20 910.1
6.66 6.6
NYSE American lows - 5
AmericanLorain ALN
AUG
NYSE Arca lows - 37 AurynResources
BlkRkMD Muni BZM
iPathS&P500VIXST VXX
BrandValueETF BVAL
CSAxela3xInvBrent DBRT
DBCrudeOilDblShrt DTO
DirexCSI300CnA CHAD
DirexEM Bear3 EDZ
DirexFinlBear3 FAZ
DirexS&P500Br3 SPXS
DirexS&P500Br1 SPDN
DirexSemiBear3 SOXS
DirexTechBear3 TECS
12.28
24.92
15.73
36.06
31.22
38.69
14.73
22.87
12.61
12.48
26.98
9.66
23.59
13.80
43.98
9.75
16.53
23.50
27.63
17.81
59.53
13.25
84.00
23.21
16.31
23.79
CRH Medical
Cohen
CRHM
COHN
0.20
1.55
13.70
1.69
8.80
-3.8
3.1
...
-5.4
-1.0
Nasdaq highs - 182
ALPS/DorseyMom SWIN
ASML
ASML
Abiomed
ABMD
Aegion
AEGN
AlignTech
ALGN
29.80
185.39
198.29
27.18
246.83
0.9
0.2
0.8
4.2
1.3
Continues on Page B11
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THE WALL STREET JOURNAL.
B8 | Tuesday, November 7, 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.
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THE WALL STREET JOURNAL.
Tuesday, November 7, 2017 | B9
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23548.42 s 9.23, or 0.04%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.29 19.97
P/E estimate *
19.35 16.91
Dividend yield
2.16
2.55
All-time high 23548.42, 11/06/17
Nasdaq Composite Index
Last
2591.13 s 3.29, or 0.13%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.33 23.02
P/E estimate *
19.39 17.78
Dividend yield
1.92
2.20
All-time high: 2591.13, 11/06/17
Last Year ago
6786.44 s 22.00, or 0.33%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 16.10
23.75
P/E estimate *
21.55
18.79
Dividend yield
1.05
1.25
All-time high: 6786.44, 11/06/17
Current divisor 0.14523396877348
23500
2580
6750
23000
2550
6650
22500
2520
6550
22000
2490
6450
21500
2460
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
6350
65-day moving average
65-day moving average
65-day moving average
6250
2430
21000
Bars measure the point change from session's open
Sept.
6150
2400
20500
Aug.
Aug.
Oct.
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
23574.86 23520.75 23548.42
23548.42 18259.60
29.0
19.2
-0.24
10038.13
8328.29
16.8
7.6
2.8
749.25
-4.18
-0.55
754.80
625.44
12.8
13.6
7.8
26853.56 26771.67 26830.60
687.59
685.16
687.30
41.60
1.09
26830.60 21989.42
691.56
534.90
22.0
28.5
15.3
14.2
8.3
8.5
Utility Average
Total Stock Market
Barron's 400
9.23
9731.79 -23.21
Transportation Avg
9759.94
9720.62
753.68
748.85
Nasdaq Stock Market
Nasdaq Composite
6790.67
Nasdaq 100
6318.58
Standard & Poor's
500 Index
6763.17
6291.84
2593.38
6786.44
6313.61
2585.66
0.04
0.16
0.16
22.00
18.03
2591.13
3.29
0.33
0.29
6786.44
6313.61
0.13
2591.13
0.40
MidCap 400
SmallCap 600
1845.20
905.83
1835.80
900.69
1843.36
902.74
7.38
1.86
0.21
1843.36
918.72
Other Indexes
Russell 2000
1501.49
1494.74
1497.96
3.05
0.20
1512.09
NYSE Composite
12410.66 12365.51 12400.93
27.87
0.23
1.94
0.36
542.54
540.13
NYSE Arca Biotech
4206.13
4152.13
NYSE Arca Pharma
537.95
535.95
536.54
-0.57
KBW Bank
102.20
101.66
102.00
-0.13
82.64
80.82
82.28
1.55
Value Line
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
CBOE Volatility
542.07
4154.65 -52.58
141.21
135.37
140.94
6.06
1318.32
9.74
1302.24
9.38
1317.34
9.40
17.37
0.26
2131.52
26.1
29.8
13.5
14.9
21.6
15.7
1509.80
724.26
22.1
24.6
11.0
7.7
8.8
10.0
1192.25
25.6
10.4
8.5
Company
SPDR S&P 500
36.85
0.02
0.05
36.87
36.75
22.87
-0.04
-0.17
22.92
22.83
General Electric
GE
4,843.9
20.11
-0.02
-0.10
20.20
20.08
Twitter
TWTR
3,818.6
19.62
0.23
1.19
20.00
19.36
iShares Russell 2000 ETF IWM
3,126.3 148.83
0.05
0.03 148.91 148.56
Intel
INTC
2,976.3
46.80
0.10
0.21
46.80
46.18
Bank of America
BAC
2,910.8
27.77
0.02
0.07
27.77
27.70
4.47
Percentage gainers…
Myomo
MYO
93.3
7.20
2.96
69.81
8.42
NeoPhotonics
NPTN
27.6
5.30
0.55
11.58
5.47
4.75
Lannett Co
LCI
5.0
23.00
1.80
8.47
23.50
21.20
AmTrust Financial
AFSI
7.9
13.50
0.96
7.66
13.73
12.54
Weight Watchers
WTW
519.0
48.21
3.41
7.61
51.98
44.80
3.1
35.1
7.7
-0.11
560.52
463.78
13.1
11.4
0.3
-0.12
102.31
75.14
35.3
11.1
11.7
Teligent
TLGT
96.72
73.03
-5.1
4.3
8.6
TrueCar
True
117.79
-7.0
-23.3 -16.7
806.09 59.5
9.14 -49.8
45.3 27.0
-33.0 -11.7
2.84
...And losers
76.6
3.50
-1.75
-33.33
5.25
3.40
1,509.8
11.90
-4.44
-27.17
16.34
11.30
Quantenna Communications QTNA
90.5
11.40
-3.47
-23.34
15.00
10.60
PCM Inc.
PCMI
27.8
11.30
-2.85
-20.14
14.15
11.30
Red Robin Gourmet Burgers RRGB
471.1
54.30 -12.75
-19.02
67.05
48.00
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Close
Percentage Gainers...
Latest
% chg
Net chg
2978.48
386.27
260.24
2.20
0.44
0.20
DJ Americas
623.08
Sao Paulo Bovespa 74310.79
S&P/TSX Comp
16092.20
S&P/BMV IPC
48967.01
Santiago IPSA
4194.38
1.23
395.37
72.04
432.17
31.62
The Global Dow
DJ Global Index
DJ Global ex U.S.
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
396.59
399.40
4118.51
5507.25
13468.79
1427.31
23002.85
555.22
1109.38
10316.50
598.70
9288.78
7562.28
0.53
–0.61
5.96
–10.72
–10.07
2.52
–11.28
0.07
…
–41.30
–1.49
–33.27
1.93
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5953.80
Shanghai Composite 3388.17
Hang Seng
28596.80
S&P BSE Sensex
33731.19
Nikkei Stock Avg
22548.35
Straits Times
3381.85
Kospi
2549.41
Weighted
10786.19
–6.10
16.43
–6.81
45.63
9.23
–0.46
–8.56
–14.58
YTD
% chg
0.07
0.11
0.08
17.7
18.5
21.6
0.20
0.53
0.45
0.89
0.76
15.3
23.4
5.3
7.3
30.1
0.13
–0.15
0.14
–0.19
–0.07
0.18
–0.05
0.01
Closed
–0.40
–0.25
–0.36
0.03
–0.10
0.49
–0.02
0.14
0.04
–0.01
–0.33
–0.13
9.7
14.0
14.2
13.3
17.3
–3.0
19.6
14.9
–3.7
10.3
12.0
13.0
5.9
5.1
9.2
30.0
26.7
18.0
17.4
25.8
16.6
Company
Symbol
Diana Containerships
Helios Matheson Analy
Basic Energy Services
California Resources
United States 3x Oil Fund
DCIX
Fulgent Genetics
TDH Holdings
Energy Focus
Carvana Cl A
Tel Instrument Elec
FLGT
Diana Shipping
Michael Kors Holdings
Kala Pharmaceuticals
Energy Recovery
Emerge Energy Services
DSX
HMNY
BAS
CRC
USOU
PETZ
EFOI
CVNA
TIK
KORS
KALA
ERII
EMES
High
52-Week
Low
% chg
Symbol
TOP Ships
Advanced Micro Devices
Sprint Corp.
Teva Pharmaceutical ADR
Qualcomm
TOPS
General Electric
Chesapeake Energy
VelocityShares 3x Lg Nat
AT&T
VanEck Vectors Gold Miner
GE
S
TEVA
QCOM
80.11 1131015.06 1.56
38.86 2.20
47.15
44.81 14.03
18.10
23.42 6.47
17.36
39.52 22.46
17.27
-99.9
167.9
...
28.8
...
Tivity Health
Xunlei ADR
Med Transcription Billing
Crawford Co A
Crawford Co B
TVTY
4.05
25.32
2.90
16.36
2.80
0.59
3.58
0.41
2.30
0.39
17.14
16.47
16.47
16.36
16.01
13.90
31.75
5.32
23.70
6.25
3.41
6.02
1.51
8.14
2.35
-53.4
...
-10.5
...
-23.3
Par Technology
Evolent Health Cl A
Neos Therapeutics
Weis Markets
Vical
PAR
4.57
54.62
18.70
9.86
8.71
0.63
7.00
2.38
1.25
1.09
15.99
14.70
14.58
14.52
14.30
6.20 2.44
55.01 32.38
26.75 13.51
12.73 6.13
24.45 5.65
83.5
8.6
...
-2.1
-4.2
Hexindai ADR
VelocityShares 3x
U.S. Global Investors A
Finjan Holdings
Colfax
HX
UGAZ
T
GDX
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
3815.6 1.68 133.33 151200.00
65.1 11.93 7.28
15.65
351.4 5.90 -11.54
9.65
116.9 12.41 8.86
42.90
535.5 62.52 1.15
70.24
0.6
71.9
200.6
63.6
6.8
-0.05
11.76
12.64
-1.32
2.14
20.13
4.18
10.34
32.86
22.91
32.38
8.20
52.49
43.03
25.71
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
A consumer rate against its
benchmark over the past year
New car loan
4.00%
t
Prime rate
3.50
3.00
t
2.50
2.00
ND J FMAM J J A S O N
2017
1.89%
800-288-3425
TrustCo Bank
Orlando, FL
2.37%
407-422-7129
Lake City Bank
Warsaw, IN
2.49%
888-522-2265
Broadway National Bank
San Antonio, TX
2.50%
210-283-6500
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
3.00
Monday
t
New car loan
Think Mutual Bank
Rochester, MN
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
1.40
Money market, annual yield
0.32
0.33
Five-year CD, annual yield
1.47
1.47
30-year mortgage, fixed†
3.99
3.90
15-year mortgage, fixed†
3.28
3.23
Jumbo mortgages, $424,100-plus† 4.28
4.34
Five-year adj mortgage (ARM)† 3.45
3.50
New-car loan, 48-month
3.02
3.01
HELOC, $30,000
5.19
5.03
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.61
l
2.85
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.40
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.17
-0.09
-0.07
-0.20
-0.03
-0.04
-0.31
-0.25
0.58
5
0
1.50
–5
0.75
–10
0.00
–15
30
WSJ Dollar index
s
Euro
s Yen
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1464.514
2.102
2.127
2.237
1.520 –0.871 2.209
2.318
3.063
2.590
5.213
2.840
1.962
2.374
3.026
2.590
5.193
2.860
1.968
2.609
3.390
2.790
6.448
3.120
2.516
1.826
2.750
2.130
4.948
2.290
1.680
2.382
2.973
1.022
8.558
0.688
1.924
800.735
5.547
5.450
6.290
5.279
5.153 5.676
EMBI Global, J.P. Morgan
WSJ
.COM
31.60 -16.45 -34.24
8.51 -2.85 -25.09
3.01 -0.98 -24.56
7.15 -2.11 -22.79
8.90 -2.46 -21.65
48.50 19.50
13.28 3.11
5.44 0.29
10.50 6.86
14.37 8.22
58.8
85.0
258.3
-18.3
-19.5
-17.26
-16.98
-16.09
-15.78
-13.81
11.79 4.69
27.50 10.48
13.15 4.85
68.88 31.26
3.70 1.80
65.3
-41.8
96.8
-39.1
-26.1
10.98
24.92
GROW
2.84
FNJN
1.83
CFX
36.92
-1.68
-3.78
-0.43
-0.27
-5.41
-13.27
-13.17
-13.15
-12.86
-12.78
17.00 10.00
47.55 13.50
4.30 1.25
4.06 1.00
43.29 32.84
...
-31.1
94.5
45.2
10.6
WMK
VICL
DGAZ
Company
52-Week
Low
% chg
-1.89
-2.25
-2.08
-6.37
-0.29
NEOS
Ranked by change from 65-day average*
Symbol
Country/currency
ASCMA
GPMT
MIII
FRBA
FALN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
907
15,113
478
8,973
320
3058
2658
2172
2046
1676
26.25 -0.44
28.53 25.22
20.19 80.11 1131015.06 1.56
81.01 0.24
81.31 67.98
31.60 -34.24
48.50 19.50
23.37 0.88
24.00 21.36
899
3,564
215
177
106
1489
1371
1147
1072
988
12.95
17.96
9.91
12.95
27.68
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Americas
Argentina peso
.0567 17.6410
Brazil real
.3078 3.2493
Canada dollar
.7872 1.2704
Chile peso
.001580 633.00
Colombia peso
.0003289 3040.16
Ecuador US dollar
1
1
Mexico peso
.0526 19.0182
Peru new sol
.3089 3.238
Uruguay peso
.03420 29.2400
Venezuela b. fuerte .097427 10.2641
2.101
4.076
2.559
4.134
2.216
2.824
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7691 1.3002
China yuan
.1507 6.6348
Hong Kong dollar
.1282 7.8020
India rupee
.01548 64.599
Indonesia rupiah .0000742 13486
Japan yen
.008795 113.71
Kazakhstan tenge .002978 335.74
Macau pataca
.1239 8.0710
Malaysia ringgit
.2362 4.2331
New Zealand dollar
.6944 1.4401
Pakistan rupee
.00950 105.300
Philippines peso
.0196 51.116
Singapore dollar
.7345 1.3614
South Korea won .0008986 1112.84
Sri Lanka rupee
.0065108 153.59
Taiwan dollar
.03311 30.198
9.56
0.73
0.10
-2.26
-0.32
21.29 8.87
19.30 17.54
10.09 9.43
14.80 9.00
29.44 25.90
11.2
–0.2
–5.5
–5.5
1.3
unch
–8.3
–3.4
–0.4
2.7
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–6.4
–4.5
0.6
–4.9
–0.3
–2.8
0.6
2.0
–5.6
–0.3
0.9
3.0
–5.9
–7.9
3.5
–7.0
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
.03021 33.100 –7.6
.00004402 22715 –0.2
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
.04542 22.017 –14.3
.1560 6.4101 –9.3
1.1610 .8614 –9.4
.003735 267.77 –9.0
.009451 105.81 –6.3
.1229 8.1342 –5.9
.2740 3.6496 –12.8
.01716 58.281 –4.9
.1191 8.3980 –7.8
1.0026 .9974 –2.1
.2612 3.8280 8.6
.0373 26.8050 –1.0
1.3171 .7592 –6.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6470 .3778 0.2
.0567 17.6515 –2.7
.2851 3.5070 –8.9
3.3038 .3027 –1.0
2.5972 .3850 0.02
.2618 3.820 4.9
.2667 3.7499 –0.02
.0709 14.0970 2.9
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.67 –0.29–0.33 –5.67
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Monday
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
High
Asia-Pacific
2017
10-yr Treasury, Ryan ALM 1739.136
DJ Corporate
379.766
Aggregate, Barclays Capital 1945.330
High Yield 100, Merrill Lynch 2865.366
Fixed-Rate MBS, Barclays 1991.160
Muni Master, Merrill
522.602
Treasury, Ryan ALM
Latest Session
Close Net chg % chg
U.S.-dollar foreign-exchange rates in late New York trading
10%
2.25
Close
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
Currencies
Corporate Borrowing Rates and Yields
Bond total return index
NYSE Arca
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
Nasdaq
Total volume*2,111,140,693 219,828,335
Adv. volume*1,343,670,722 164,041,035
Decl. volume* 733,830,879 54,858,798
Issues traded
3,053
1,321
Advances
1,560
930
Declines
1,337
359
Unchanged
156
32
New highs
182
205
New lows
68
37
Closing tick
394
29
Closing Arms†
0.64
0.88
Block trades*
7,474
1,267
9.06
11.00
10.83
34.00
1.81
EVH
Ascent Capital Grp A
Granite Point Mtg Trust
M III Acquisition
First Bank
iSh Fallen Angels USD Bd
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.01%
Bankrate.com avg†:
CRD.B
19.63
3.41
8.08
32.55
18.58
Forex Race
notes and bonds
t
Selected rates
CRD.A
WisdomTree Bloom USD BullUSDU
DCIX
Diana Containerships
SIZE
iSh Edge MSCI USA Size
TVTY
Tivity Health
DSUM
ChineseYuanDimSumBd
* Volumes of 100,000 shares or more are rounded to the nearest thousand
s
U.S. consumer rates
MTBC
0.32
6.22
5.72
10.85
48.92
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
XNET
Volume Movers
55,818
49,606
47,207
46,823
44,553
CHK
Symbol
8.98
4.55
3.64
2.09
5.82
99,606
95,191
61,564
58,823
58,526
AMD
Company
20.19
14.20
23.75
14.13
39.52
Most Active Stocks
Company
Total volume* 850,773,752 8,665,273
Adv. volume* 533,292,592 6,425,446
Decl. volume* 312,264,646 2,012,994
Issues traded
3,074
332
Advances
1,735
206
Declines
1,235
110
Unchanged
104
16
New highs
168
7
New lows
51
5
Closing tick
94
21
Closing Arms†
0.83
0.49
Block trades*
6,815
112
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
Interest rate
Low
-0.02 258.88 258.46
6,670.2
38.3
192.66
-0.06
7,159.1
3005.13
1317.34
18.74
After Hours
% chg
High
VanEck Vectors Gold Miner GDX
4304.77
4.49
Net chg
SPDR S&P O&G Exp Prd XOP
7.1
1.34
Last
9,752.4 258.79
SPY
12.2
1.92
Volume
(000)
Symbol
16.4
4.6
NYSE NYSE Amer.
Most-active issues in late trading
18.1
-1.25
12430.52 10500.16
8.5
Volume, Advancers, Decliners
465.78
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
31.4
32.3
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.
545.98
Philadelphia Stock Exchange
World
5166.17
4702.04
10.3
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
616.46
9.96
192.57
57.35
3.134
1279.40
3.19
1.71
0.150
12.90
1.64
616.46
531.80
1.68 195.14
57.35
3.07
3.93
5.03
1.02 1346.00
166.50
42.53
2.56
1127.80
% Chg
15.92
YTD
% chg
8.68
0.03
4.94
6.76
27.76
11.29 -15.84
0.09 11.25
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.
B10 | Tuesday, November 7, 2017
COMMODITIES
Futures Contracts
Open
Contract
High hilo
Low
Settle
Open
interest
Chg
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1490
3.1530
3.1440
3.1505 0.0400
Nov
Dec
3.1130
3.1730
3.1115
3.1575 0.0400
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
1269.00 1280.50
1269.00 1279.40 12.90
Dec
1270.70 1283.90
1266.40 1281.60 12.40
Feb'18
1274.70 1288.10
1270.90 1285.90 12.50
April
1277.00 1292.00
1277.00 1290.00 12.60
June
1279.30 1296.00
1279.30 1294.00 12.60
Dec
1294.60 1308.10
1294.60 1306.40 12.60
Palladium (NYM) - 50 troy oz.; $ per troy oz.
995.60 1003.10
990.30
995.10
3.60
Dec
March'18 987.75 995.15 s
982.95
987.10
3.40
Platinum (NYM)-50 troy oz.; $ per troy oz.
931.70
933.80
931.60
931.00 12.50
Nov
Jan'18
922.10
938.50
919.60
935.00 13.10
Silver (CMX)-5,000 troy oz.; $ per troy oz.
17.205
17.225
17.205
17.195 0.401
Nov
Dec
16.835
17.270
16.795
17.235 0.401
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
55.97
57.61
55.66
57.35
1.71
Dec
Jan'18
56.20
57.83
55.88
57.57
1.71
Feb
56.25
57.95 s
56.02
57.70
1.72
March
56.27
57.98 s
56.07
57.72
1.70
June
55.70
57.40
55.60
57.21
1.63
Dec
53.92
55.20
53.72
55.04
1.27
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8830
1.9468 s
1.8814
1.9422 .0556
Dec
Jan'18
1.8864
1.9493 s
1.8835
1.9449 .0560
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7902
1.8390 s
1.7767
1.8300 .0366
Dec
Jan'18
1.7575
1.8057 s
1.7442
1.8017 .0457
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
3.085
3.143
3.051
3.134
.150
Dec
Jan'18
3.180
3.242
3.154
3.232
.135
Feb
3.184
3.240
3.157
3.231
.129
March
3.153
3.197
3.118
3.189
.121
April
2.950
2.968
2.928
2.953
.050
May
2.915
2.944
2.909
2.928
.043
Open
interest
934
146,579
140
358,880
107,147
16,685
15,321
11,025
29,403
5,406
9
69,944
13
137,547
540,082
353,925
157,371
248,901
226,050
265,597
132,851
88,029
150,433
89,564
306,161
232,808
85,917
171,846
122,526
78,345
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Dec
348.50
350.25
347.75
348.00
–.25 761,359
March'18 362.25 364.00
361.25
361.50
–.50 381,471
Oats (CBT)-5,000 bu.; cents per bu.
Dec
262.50
270.00
260.50
269.00
6.00
4,597
March'18 268.00 273.00
266.25
272.25
3.75
2,905
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
977.25
985.50
975.25
984.00
7.00
4,451
Jan'18
987.25
995.75
985.00
994.00
7.25 328,977
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
314.30
316.80
313.70
316.10
2.20 119,690
Jan'18
316.40
318.70
315.90
318.10
2.10 96,053
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
34.40
34.99
34.26
34.73
.31 140,804
Jan'18
34.59
35.16
34.42
34.89
.30 109,023
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1119.50 1121.50
1119.50 1124.00 –4.50
37
Jan'18
1159.00 1159.00
1142.50 1152.00 –5.50
9,283
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
427.00
431.25
427.00
430.75
5.00 279,025
March'18 445.50 449.50
445.50
448.25
3.75 144,986
Wheat (KC)-5,000 bu.; cents per bu.
Dec
427.75
431.00
427.00
430.00
3.25 156,057
March'18 445.25 448.50
444.75
447.00
2.50 97,374
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
624.75
631.75
624.75
631.00
6.25 34,630
March'18 638.25 644.75
638.25
644.00
5.50 26,241
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Nov
160.875 161.100
159.000 160.150 –.725
7,603
Jan'18
161.550 161.875
159.275 160.875 –.650 29,702
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec
127.250 127.675
124.825 125.325 –1.975 124,174
Feb'18
131.650 131.950 s
129.825 130.650 –1.100 107,816
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
65.075
65.150
64.425
64.625 –.475 98,756
Feb'18
71.875
72.325
71.700
72.225
.250 68,808
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Nov
448.60
464.20
448.40
461.60 12.60
565
Jan'18
437.50
449.60
437.50
449.60 10.00
5,436
Cash Prices | WSJ.com/commodities
Monday, November 06, 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.
Monday
Monday
16.9150
12983
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
0.9573
1.0436
3.030
3.000
3.030
2.700
2.980
1.540
2.930
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
Other metals
LBMA Platinum Price PM
*922.0
Platinum,Engelhard industrial
922.0
Platinum,Engelhard fabricated
1022.0
Palladium,Engelhard industrial
999.0
Palladium,Engelhard fabricated
1099.0
Aluminum, LME, $ per metric ton
*2165.0
Copper,Comex spot
3.1505
Iron Ore, 62% Fe CFR China-s
62.7
Shredded Scrap, US Midwest-s,w
n.a.
Steel, HRC USA, FOB Midwest Mill-s
615
Fibers and Textiles
Metals
Gold, per troy oz
1275.31
1370.96
1270.90
1410.69
*1275.30
*1267.20
1332.45
1345.26
1345.26
1552.74
1258.83
1345.26
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.9500
20.3400
17.1900
21.4880
£12.9000
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6100
0.6810
*79.75
68.500
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
74
3.1550
93.2
473.0
230
88
220
2.9900
370.00
24.00
7.6875
Monday
312.10
9.4700
7.6100
4.3750
3.7250
5.3038
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
191.82
177.68
0.8635
2.2250
171.50
169.25
72.75
n.a.
1.2315
1.4341
1.0150
15.70
0.81
66.92
1.2449
0.9188
125.00
165.75
Fats and Oils
34.5000
0.2400
n.a.
0.3336
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
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 11/3
Source: WSJ Market Data Group
November 6, 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
Chg From (%)
Aug. '17 Sept. '16
U.S. consumer price index
246.819
252.941
All items
Core
0.53
0.19
2.2
1.7
Latest
Week
ago
0.25
0.50
0.25
Treasury bill auction
Australia
1.50
1.50
1.50
1.50
4 weeks
13 weeks
26 weeks
Overnight repurchase
1.21
U.S.
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
0.00
0.50
0.00
0.50
0.00
0.50
1.38
0.15
Discount
1.75
Policy Rates
Euro zone
Switzerland
1.14
U.S. government rates
52-Week
High
Low
0.00
0.50
Week
Latest ago
0.50
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
Britain
International rates
1.75
1.75
1.00
1.0500 1.0500 1.1600 0.2500
1.1600 1.1600 1.1700 0.3000
Offer
1.1700 1.1700 1.1900 0.3200
1.16
0.40
1.14
1.19
1.23
1.14
1.16
1.23
1.14
1.19
1.23
0.41
0.51
0.56
1.17
1.21
1.26
1.15
1.21
1.28
1.19
1.22
1.28
0.44
0.57
0.66
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Discount window primary credit
1.75
1.75
1.75
1.00
n.a.
n.a.
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.01
1.16
1.28
1.45
1.61
1.73
2.00
2.21
2.36
2.63
1.00
1.11
1.27
1.43
1.60
1.73
2.04
2.26
2.42
2.71
52-Week
High
Low
Treasury yields (secondary market)
1.16
1.07
1.16
1.28
1.45
1.61
1.73
2.08
2.37
2.55
2.91
1-month
3-month
6-month
0.99
1.14
1.26
0.98
1.09
1.25
1.05
1.14
1.26
0.22
0.36
0.51
0.24
0.41
0.49
0.75
0.78
0.31
0.48
0.55
0.81
0.85
0.31
0.49
0.63
0.97
0.97
-0.28
-0.10
0.12
0.53
0.54
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Other short-term rates
Week
Latest ago
Contract
High hilo
Low
Open
Aaa
Baa
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
State and local bonds
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Eurodollars
1 month
3 month
6 month
16.54
15.59
16.56
15.62
.02
–.07
4,527
4,212
56 65,377
53 121,302
1.60 108,465
1.55 72,865
.18 410,704
.17 136,970
–.05
.05
2,816
1,805
.13
.33
97,267
93,503
2.55
3.30
47
5,700
Settle
Chg
Open
interest
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov
Dec
.8761
.8777
.8799
.8812
Nov
Dec
.7835
.7838
Nov
Dec
Dec
March'18
t
.8719
.8731
.8792
.8805
.0031
2,682
.0031 276,460
.7870
.7875
.7832
.7825
.7863
.7865
.0026
1,259
.0026 146,226
1.3084
1.3096
1.3173
1.3190
1.3081
1.3073
1.3175
1.3187
.0104
1,280
.0104 173,149
1.0021
1.0070
1.0054
1.0117
.9997
1.0067
1.0047
1.0116
.0028
.0029
.7645
.7650
.7643
.7641
.7639
.7667
.7687
.7690
.7686
.7681
.7680
.7667
.7640
.7635
.7636
.7634
.7636
.7667
.7687
.7685
.7683
.7682
.7681
.7678
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Nov
Dec
Jan'18
Feb
March
June
Mexican Peso (CME)-MXN 500,000; $ per MXN
.05171
.05221
Dec
March'18 .05119 .05139
Euro (CME)-€125,000; $ per €
Nov
1.1618
1.1628
Dec
1.1640
1.1650
79,627
195
.0039
1,324
.0039 120,495
.0039
705
.0039
504
.0039
924
.0039
244
.05170
.05096
.05212 .00027 177,435
.05134 .00027
550
1.1586
1.1606
1.1612 –.0001
5,357
1.1633 –.0002 426,649
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23444
23441
23507 s
23496 s
23407
23401
23487
23477
2581.30
2590.00 s
2575.00
2588.70
S&P 500 Index (CME)-$250 x index
Dec
Mini S&P 500 (CME)-$50 x index
Dec
2580.00 2590.00 s
2575.50 2588.75
March'18 2580.50 2590.50 s 2575.75 2589.00
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1832.40 1845.20
1829.20 1842.30
Mini Nasdaq 100 (CME)-$20 x index
6285.3
6317.5 s
6268.0
6313.5
Dec
March'18 6298.8 6330.8 s
6281.5
6327.3
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1493.30 1503.30
1489.50 1497.10
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1432.00 1435.80 s
1432.00 1434.60
U.S. Dollar Index (ICE-US)-$1,000 x index
94.83
95.00
94.61
94.66
Dec
March'18
94.54
94.67
94.33
94.37
38 155,788
36
1,673
6.00
60,444
6.00 3,163,563
6.00 71,890
7.50
91,983
23.0 267,910
23.8
1,755
2.10
68,392
3.10
256
–.20
–.20
48,971
2,295
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
3.5
1945.33
5.9
U.S. Corporate
4.1 Intermediate
2625.03
10.0 Long term
3868.37
4.4 Double-A-rated
568.85
6.5
719.81
7.4
Yield (%)
Latest Low High
Index
2.5
Mortgage-Backed
1957.78
2.0
Ginnie Mae (GNMA) 2.790 2.200 3.090
3.150 2.970 3.520
1167.93
2.7
Fannie mae (FNMA) 2.860 2.320 3.120
2.710 2.390 3.010
1798.60
2.8
Freddie Mac (FHLMC) 2.870 2.330 3.130
4.100 4.100 4.710
522.60
4.8 Muni Master
1.962 1.680 2.516
2.640 2.320 2.870
365.74
5.3 7-12 year
Triple-B-rated
1.968 1.678 2.618
3.430 3.340 3.870
410.36
6.4
12-22 year
2.401 2.119 3.047
396.46
6.8
22-plus year
2.849 2.601 3.622
High Yield Bonds Merrill Lynch
417.49
YTD total
return (%)
1991.16
2.590 2.130 2.790
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
2787.01
Total
return
close
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
High Yield Constrained 5.546 5.373 6.858
2.840 2.290 3.120
Global Government J.P. Morgan†
Triple-C-rated
10.465 9.584 13.189
545.11
1.5
2865.37
6.8
High Yield 100
5.213 4.948 6.448
757.68
0.6
Canada
1.990 1.390 2.190
379.24
7.7
Global High Yield Constrained 5.035 4.934 6.450
373.01
1.1
EMU§
1.028 0.835 1.363
308.64
7.5
Europe High Yield Constrained 1.900 1.900 3.814
713.99
1.1
France
0.790 0.540 1.210
Germany
0.410 0.170 0.620
Japan
0.390 0.170 0.460
Netherlands
0.540 0.290 0.760
U.K.
1.590 1.340 1.790
8.8
418.32
510.86
U.S Agency Bloomberg Barclays
1641.46
2.2
U.S Agency
1.980 1.360 2.010
288.50
1467.07
1.4
10-20 years
1.820 1.170 1.840
563.72
3374.01
7.9
20-plus years
2.900 2.710 3.460
920.50
2.810 2.490 3.090
800.73
5.0 Yankee
2462.01
Global Government 1.400 1.080 1.560
-0.7
0.1
-0.5
0.8
8.3
Emerging Markets ** 5.547 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.500
2.250
52-Week
high
low
3.00
3.00
3.00
2.25
1.29
One month
Three month
Six month
One year
1.27
1.31
0.62
1.24424
1.39703
1.59406
1.86428
1.24214
1.37678
1.57306
1.84233
1.24424
1.39703
1.59406
1.86428
0.53533
0.88233
1.24267
1.55622
-0.400
-0.378
-0.314
-0.237
-0.401
-0.380
-0.322
-0.233
-0.376
-0.322
-0.212
-0.075
-0.405
-0.381
-0.322
-0.237
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
-0.371
-0.329
-0.276
-0.191
One month
Three month
Six month
One year
Latest
-0.372
-0.331
-0.276
-0.185
Value
Traded
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.276
-0.191
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.171 31.100 1.366 0.244
1.182 106.260 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Nov
Treasury Dec
Treasury Jan
98.845 0.005 8068 1.155
98.700 unch. 2044 1.300
98.605 unch. 450 1.395
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.
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.613
2.334
1.520
2.361
0.794
1.776
1.781 s
2.582 s
l
1.779
1.931
1.655
16.5
16.7
86.1
l
2.581
2.824
2.337
26.3
24.7
56.0
France 2 -0.601 t
10 0.593 t
l
-0.591
-0.494
l
0.617
0.735
Germany 2 -0.760 t
10 0.340 t
l
-0.754
-0.691
l
0.365
0.461
Italy 2 -0.230 t
10 1.780 t
l
-0.211
-0.117
0.001
l
1.794
2.148
1.676
Japan 2 -0.184 t
10 0.024 t
l
-0.161
-0.139
-0.261
l
0.053
0.055
Spain 2 -0.374 t
10 1.466 t
l
-0.363
-0.260
l
1.470
1.661
1.260
0.447 t
1.259 t
l
0.448
0.435
0.160
l
1.267
1.369
1.025
Australia 2
10
0.000
Year ago
l
2.750
2.750
Month ago
U.S. 2 1.617 s
10 2.319 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
0.100
0.100
2.750
Call money
Corporate bonds, Moody's seasoned
0.23
0.36
0.51
0.64
0.82
0.98
1.27
1.59
1.82
2.24
16.63
15.74
Dec
153-240 154-120
153-120 154-070
18.0 737,362
March'18 152-170 153-070
152-100 153-020
18.0 10,308
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
125-075 125-135
125-035 125-115
6.5 3,195,816
March'18 124-290 125-040
124-265 125-025
7.5 33,480
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-077 117-105
117-057 117-087
2.5 3,077,750
March'18 117-030 117-032
117-010 117-017
2.7 42,992
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-205 107-212
107-200 107-205
.2 1,696,803
March'18 107-160 107-160
107-152 107-157
.7 35,805
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Nov
98.845
98.845
98.843
98.843
… 211,883
Jan'18
98.620
98.620
t 98.615
98.620
… 354,635
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.281 101.469
101.281 101.438
.297 28,538
1 Month Libor (CME)-$3,000,000; pts of 100%
Nov
...
...
... 98.7500
…
928
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5850 98.5850
98.5825 98.5825 –.0025 94,703
Dec
98.4800 98.4850
98.4750 98.4750 –.0050 1,666,525
March'18 98.3350 98.3400
98.3250 98.3300
… 1,275,193
Dec
98.0750 98.0850
98.0600 98.0700 .0050 1,623,624
0.500
3.436 3.491 3.865 3.039
3.457 3.519 3.899 3.070
30 days
60 days
Libor
Week Ended
Nov 3 Oct 27
16.54
15.74
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
2.050
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
1.15
Open
interest
Interest Rate Futures
0.050
90 days
Federal funds (effective)
Chg
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
2,059
2,123
2,052
2,117
March'18
2,051
2,113
2,049
2,109
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
123.95
126.40
122.25
125.55
March'18 127.50 129.80
125.85
129.05
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.38
14.58
14.23
14.56
May
14.47
14.67
14.34
14.65
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March
27.16
27.25
27.10
27.24
May
27.10
27.15
27.10
27.15
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec
68.86
69.12
68.23
68.85
March'18
68.75
69.25
68.37
69.10
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
151.90
152.80
151.90
160.40
Jan'18
157.00
160.00
155.85
159.90
30-year mortgage yields
Key Interest Rates
52-Week
High
Low
Nov
Dec
Fannie Mae
Effective rate 1.1700 1.1700 1.2000 0.3500
High
1.3125 1.3125 1.3125 0.5625
Low
1.020 1.005 1.300 0.240
1.185 1.130 1.185 0.420
1.300 1.260 1.300 0.535
Secondary market
Federal funds
Bid
—52-WEEK—
High Low
Commercial paper (AA financial)
Week Ended
Nov 3 Oct 27
Settle
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Sept. index
level
Contract
High hilo
Low
Open
Milk (CME)-200,000 lbs., cents per lb.
Metal & Petroleum Futures
Energy
WSJ.com/commodities
1.450
1.750
U.K. 2
4.250
10
-0.606 -221.7
0.460
-172.6
-220.3
-140.0
-171.6
-131.6
-0.635 -237.7
0.137 -197.9
-236.7
-142.8
-196.9
-164.0
-184.7
-182.4
-79.2
-53.9
-54.0
-10.1
-180.0
-177.3
-105.5
-0.060 -229.5
-228.1
-183.6
-0.205
-199.0
-197.6
-99.9
-85.4
-86.4
-51.6
-117.0
-116.5
-63.4
-106.0
-106.6
-75.2
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Maturity
Teva Pharmaceutical Finance IV
JPMorgan Chase
ConocoPhillips
Pitney Bowes
TEVA
JPM
COP
PBI
2.250 March 18, ’20
4.500 Jan. 24, ’22
2.400 Dec. 15, ’22
3.625 Sept. 15, ’20
Boston Properties
Coca–Cola
Mitsubishi UFJ Trust And Banking
AerCap Ireland Capital Dac
BXP
KO
MUFG
AER
5.625
1.875
2.650
4.500
Nov. 15, ’20
Oct. 27, ’20
Oct. 19, ’20
May 15, ’21
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
205
45
53
275
–21
–16
–8
–8
140
50
50
n.a.
…
100.78
53.67
10.98
…
–0.62
1.34
–2.40
41
15
53
65
–7
–7
–7
–6
n.a.
19
n.a.
64
123.43
45.47
...
…
2.28
–1.09
...
…
…And spreads that widened the most
Qualcomm
Broadcom
Biogen
Discovery Communications
QCOM
AVGO
BIIB
DISCA
4.800 May 20, ’45
3.500 Jan. 15, ’28
2.900 Sept. 15, ’20
5.000 Sept. 20, ’37
183
153
62
216
40
127
113
n.a.
190
62.52
277.52
315.47
17.10
1.15
1.42
0.42
3.51
CBL & Associates
Teva Pharmaceutical Finance Netherlands Iii
Citigroup
Fifth Third Bancorp
CBL
TEVA
C
FITB
5.950 Dec. 15, ’26
3.150
Oct. 1, ’26
4.650 July 30, ’45
8.250 March 1, ’38
460
304
122
165
18
16
12
11
350
238
111
n.a.
5.56
…
73.80
29.24
–6.08
…
–0.34
0.41
29
21
20
High-yield issues with the biggest price increases…
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
California Resources
Denbury Resources
Sanchez Energy
EP Energy
CRC
DNR
SN
EPENEG
6.000
4.625
6.125
8.000
Nov. 15, ’24
July 15, ’23
Jan. 15, ’23
Feb. 15, ’25
55.000
62.750
89.250
73.875
Cenovus Energy
Hornbeck Offshore Services
MEG Energy
DISH DBS
CVECN
HOS
MEGCN
DISH
5.400 June 15, ’47
5.875
April 1, ’20
7.000 March 31, ’24
5.875 Nov. 15, ’24
107.035
68.250
94.250
100.750
Maturity
3.75
2.75
2.13
5.50
2.05
1.75
1.72
1.45
Last week
Stock Performance
Close ($)
% chg
46.375
55.500
83.750
74.250
14.13
1.54
4.99
...
17.36
16.67
7.78
...
103.614
65.500
88.845
100.500
...
4.37
...
…
...
7.37
...
…
121.625
104.438
n.a.
101.375
…
348.40
16.67
...
…
3.87
1.83
...
97.417
96.250
85.875
107.625
8.07
16.80
1.58
…
8.91
2.00
2.60
…
…And with the biggest price decreases
Sprint Capital
CCO Holdings
CenturyLink
Embarq
S
CHTR
CTL
EQ
8.750 March 15, ’32
5.875
May 1, ’27
6.150 Sept. 15, ’19
7.995
June 1, ’36
116.000 –6.50
104.875
101.531
98.625
Frontier Communications
Uniti
Rite Aid
NXP BV*
FTR
UNIT
RAD
NXPI
8.875 Sept. 15, ’20
8.250 Oct. 15, ’23
7.700 Feb. 15, ’27
4.625
June 1, ’23
94.500
95.500
82.875
106.488
–2.93
–2.47
–1.88
–1.75
–1.75
–1.46
–1.26
*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.
Tuesday, November 7, 2017 | B11
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Monday, November 6, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 26.28 0.08
t AES
AES 10.35 -0.14
Aflac
AFL 84.57 0.59
t AT&T
T
32.86 -0.44
AbbottLabs ABT 55.01 -0.46
AbbVie
ABBV 92.96 0.65
Accenture ACN 143.93 -0.11
AcuityBrands AYI 166.07 4.00
Adient
ADNT 78.64 -0.06
AdvanceAuto AAP 80.71 -1.09
AdvSemiEngg ASX 6.20 0.04
Aegon
AEG 5.91 0.02
AerCap
AER 52.30 -0.21
Aetna
AET 176.95 -0.04
AffiliatedMgrs AMG 186.06 0.71
AgilentTechs A
68.22 -0.15
AgnicoEagle AEM 45.19 1.08
Agrium
AGU 107.83 -0.26
AirProducts APD 158.80 -0.45
AlaskaAir ALK 63.94 0.29
Albemarle ALB 141.97 1.93
Alcoa
AA 47.29 0.17
s AlexandriaRealEst ARE 125.67 0.37
Alibaba
BABA 187.84 4.63
Alleghany Y
580.51 -3.17
Allegion
ALLE 83.09 1.07
Allergan
AGN 174.34 -0.58
AllianceData ADS 230.69 5.10
AllianceBernstein AB 25.45 -0.20
AlliantEnergy LNT 43.59 -0.24
AllisonTransm ALSN 43.84 0.16
s Allstate
ALL 99.09 1.25
s AllyFinancial ALLY 26.85 0.17
AlticeUSA ATUS 23.91 1.32
Altria
MO 63.45 -0.46
AlumofChina ACH 19.24 0.07
Ambev
ABEV 6.24 0.07
Ameren
AEE 62.12 -0.07
AmericaMovil AMX 17.55 0.30
AmericaMovil A AMOV 17.32 0.25
AmCampus ACC 42.02 0.15
AEP
AEP 73.73 -0.35
s AmericanExpress AXP 96.29 -0.14
AmericanFin AFG 103.97 1.21
AIG
AIG 62.49 0.49
s AmerTowerREIT AMT 150.16 8.06
AmerWaterWorks AWK 88.61 -0.15
Amerigas APU 45.75 0.55
Ameriprise AMP 160.65 1.06
AmerisourceBrgn ABC 74.86 0.06
Ametek
AME 68.55 0.89
Amphenol APH 87.24 -0.09
AnadarkoPetrol APC 51.83 2.32
s Andeavor ANDV 111.57 1.40
AB InBev BUD 120.58 -1.15
AnnalyCap NLY 11.04 -0.19
AnteroResources AR 20.09 0.85
s Anthem
ANTM 216.30 4.50
Aon
AON 140.18 1.54
Apache
APA 45.74 2.99
ApartmtInv AIV 44.74 0.52
ApolloGlobalMgmt APO 31.11 -0.18
AquaAmerica WTR 36.08 0.05
Aramark
ARMK 43.45 -0.30
ArcelorMittal MT 29.73 0.31
t ArcherDaniels ADM 39.27 -0.51
Arconic
ARNC 25.61 0.27
s AristaNetworks ANET 206.68 5.19
ArrowElec ARW 78.13 -0.04
AstraZeneca AZN 34.22 -0.26
Athene
ATH 48.53 0.96
AtmosEnergy ATO 87.84 0.25
Autohome ATHM 59.08 -0.48
Autoliv
ALV 125.21 -0.46
AutoZone AZO 607.00 0.59
Avalonbay AVB 183.39 1.42
Avangrid
AGR 50.83 -0.26
AveryDennison AVY 107.07 -1.02
AxaltaCoating AXTA 32.80 -0.04
BB&T
BBT 49.48 -0.06
BCE
BCE 47.73 0.28
BHPBilliton BHP 43.41 1.26
BHPBilliton BBL 38.64 1.38
s BP
BP 41.41 0.85
BRF
BRFS 13.05 0.15
BT Group BT 16.77 0.26
BWX Tech BWXT 61.03
...
BakerHughes BHGE 33.92 2.74
Ball
BLL 41.45 -0.30
BancoBilbaoViz BBVA 8.47 -0.04
BancodeChile BCH 90.49 -0.27
BancoMacro BMA 123.29 4.94
BcoSantChile BSAC 31.02 -0.05
BancoSantander SAN 6.56 -0.04
BanColombia CIB 37.28 0.29
BankofAmerica BAC 27.75 -0.07
BankofMontreal BMO 77.97 0.20
BankNY Mellon BK 51.35 0.02
s BkNovaScotia BNS 65.82 0.29
Barclays
BCS 9.59 0.02
Bard CR
BCR 334.39 0.53
BarrickGold ABX 14.01 0.01
BaxterIntl BAX 64.36 -0.54
s BectonDickinson BDX 222.20 -2.21
Berkley
WRB 69.42 0.17
BerkHathwy A BRK.A 280170-300.01
BerkHathwy B BRK.B 186.68 -0.59
BerryGlobal BERY 58.61 -0.39
BestBuy
BBY 56.39 -0.53
s Bio-RadLab A BIO 259.82 -1.60
s Bio-RadLab B BIO.B261.55 6.55
BlackKnight BKI 46.15 0.40
BlackBerry BB 10.97 0.02
BlackRock BLK 475.61 -3.50
BlackstoneGroup BX 33.03 0.14
BoardwalkPipe BWP 14.53 0.35
Boeing
BA 264.07 2.32
BorgWarner BWA 52.64 -0.33
BostonProperties BXP 123.43 2.75
BostonScientific BSX 27.81 -0.05
Braskem
BAK 31.46 1.09
Bristol-Myers BMY 61.68 -0.54
BritishAmTob BTI 65.05 -0.30
s BroadridgeFinl BR 87.16 0.32
BrookfieldMgt BAM 41.95 0.25
BrookfieldInfr BIP 43.19 0.89
Brown&Brown BRO 50.54 0.15
Brown-Forman A BF.A 55.34 -0.55
Stock
Net
Sym Close Chg
Brown-Forman B BF.B 55.10
BuckeyePtrs BPL 52.90
Bunge
BG 67.64
BurlingtonStores BURL 98.61
CBD Pao
CBD 22.97
s CBRE Group CBG 40.75
CBS A
CBS.A 57.31
CBS B
CBS 56.96
s CF Industries CF 39.21
CGI Group GIB 53.60
CIT Group CIT 45.95
CMS Energy CMS 48.05
CNA Fin
CNA 54.92
s CNOOC
CEO 143.36
CPFLEnergia CPL 16.85
CRH
CRH 36.40
t CVS Health CVS 66.80
s CabotOil
COG 28.78
CamdenProperty CPT 93.68
CampbellSoup CPB 45.43
CIBC
CM 90.13
CanNtlRlwy CNI 80.34
s CanNaturalRes CNQ 36.73
CanPacRlwy CP 173.13
Canon
CAJ 37.70
CapitalOne COF 92.30
t CardinalHealth CAH 60.25
Carlisle
CSL 110.56
CarMax
KMX 74.91
Carnival
CCL 65.67
Carnival
CUK 66.04
Caterpillar CAT 137.71
Celanese A CE 106.30
Cemex
CX
8.05
CenovusEnergy CVE 11.23
Centene
CNC 95.32
CenterPointEner CNP 29.72
CentraisElBras EBR 6.29
t CenturyLink CTL 16.67
Chemours CC 52.10
Chevron
CVX 117.04
ChinaEastrnAir CEA 25.48
ChinaLifeIns LFC 17.44
ChinaMobile CHL 50.66
ChinaPetrol SNP 75.54
ChinaSoAirlines ZNH 38.33
ChinaTelecom CHA 50.23
ChinaUnicom CHU 14.95
Chipotle
CMG 275.77
Chubb
CB 149.20
ChunghwaTelecom CHT 33.94
Church&Dwight CHD 43.32
Cigna
CI 205.00
CimarexEnergy XEC 125.36
Citigroup
C
73.80
CitizensFin CFG 38.72
Clorox
CLX 127.73
Coca-Cola KO 45.47
Coca-Cola Euro CCE 39.86
Coca-Cola Femsa KOF 68.21
Colgate-Palmolive CL 70.25
ColonyNorthStar CLNS 12.42
Comerica
CMA 79.54
SABESP
SBS 9.07
ConagraBrands CAG 33.32
ConchoRscs CXO 146.62
s ConocoPhillips COP 53.67
ConEd
ED 86.32
ConstBrands A STZ 215.80
ContinentalRscs CLR 43.94
Cooper
COO 227.64
Corning
GLW 31.84
Coty
COTY 14.52
Credicorp
BAP 211.68
CreditSuisse CS 16.16
CrestwoodEquity CEQP 24.35
s CrownCastle CCI 111.81
CrownHoldings CCK 60.42
Cullen/Frost CFR 97.80
Cummins
CMI 172.59
DTE Energy DTE 111.58
DXC Tech DXC 93.02
Danaher
DHR 92.62
Darden
DRI 82.40
DaVita
DVA 59.41
s Deere
DE 135.31
DellTechnologies DVMT 81.52
DelphiAutomotive DLPH 97.27
DeltaAir
DAL 50.57
DeutscheBank DB 16.83
DevonEnergy DVN 40.86
Diageo
DEO 136.90
DigitalRealty DLR 121.83
DiscoverFinSvcs DFS 67.02
Disney
DIS 100.64
DolbyLab
DLB 59.17
DollarGeneral DG 80.68
DominionEner D
80.56
Domino's
DPZ 173.46
Donaldson DCI 47.82
DouglasEmmett DEI 40.02
Dover
DOV 96.12
DowDuPont DWDP 70.24
DrPepperSnap DPS 84.47
DrReddy'sLab RDY 36.74
DukeEnergy DUK 87.87
DukeRealty DRE 28.92
ENI
E
33.85
EOG Rscs EOG 106.96
EQT
EQT 63.83
EQT Midstream EQM 72.73
EastmanChem EMN 90.36
Eaton
ETN 78.31
EatonVance EV 50.97
Ecolab
ECL 131.91
s Ecopetrol EC 11.86
EdisonInt
EIX 78.85
EdwardsLife EW 103.16
EmersonElectric EMR 64.52
EnbridgeEnPtrs EEP 14.66
Enbridge
ENB 36.82
Encana
ECA 12.91
EnelAmericas ENIA 10.90
EnelChile
ENIC 5.81
EnelGenChile EOCC 26.45
EnergyTrfrEquity ETE 18.07
EnergyTransfer ETP 17.19
Entergy
ETR 86.36
EnterpriseProd EPD 25.11
Equifax
EFX 108.03
EquityLife ELS 89.60
s EquityResdntl EQR 69.21
-0.51
0.87
-0.22
0.84
0.38
0.85
0.90
1.56
0.61
0.35
0.07
-0.08
-0.06
3.80
0.29
-0.14
-2.45
0.55
1.19
-1.05
0.73
0.07
0.71
0.18
-0.08
0.70
-1.13
0.83
-0.28
0.24
0.16
1.08
0.17
0.15
0.57
-0.71
0.13
0.38
0.30
-0.06
2.05
-0.28
-0.14
-0.19
1.96
-0.31
0.11
-0.01
2.24
0.93
0.15
-0.60
3.10
2.83
-0.25
-0.10
-0.38
-0.50
-0.07
1.16
0.10
0.04
-0.21
0.22
-0.59
3.77
0.71
-0.72
0.41
1.57
-1.63
0.17
0.16
4.36
-0.01
...
5.30
...
-0.06
-0.48
0.68
1.57
-0.51
0.12
-0.50
0.28
0.65
0.38
0.17
0.01
1.59
1.09
2.77
-0.42
2.00
0.19
-1.19
-0.11
-4.48
0.05
0.23
0.20
-0.92
-1.15
-0.01
-0.65
0.10
0.44
2.46
1.05
0.52
-0.96
0.21
-0.10
0.53
0.64
-0.67
0.44
0.42
0.11
0.13
0.58
0.08
0.01
0.46
0.57
0.25
-0.64
0.11
-0.67
-0.30
1.00
Stock
Net
Sym Close Chg
EssexProp ESS 253.81
EsteeLauder EL 121.12
EverestRe RE 228.46
EversourceEner ES 63.70
Exelon
EXC 40.69
s ExtraSpaceSt EXR 86.02
ExxonMobil XOM 83.75
FMC
FMC 90.96
FactSet
FDS 191.03
FederalRealty FRT 126.92
FedEx
FDX 220.95
Ferrari
RACE 117.25
FiatChrysler FCAU 18.13
FibriaCelulose FBR 15.64
s FidelityNatlFin FNF 38.18
FNFV Group FNFV 17.65
FidelityNtlInfo FIS 93.13
58.com
WUBA 68.23
s FirstAmerFin FAF 55.66
FirstData
FDC 17.38
FirstRepBank FRC 94.43
FirstEnergy FE 32.77
FleetCorTech FLT 179.86
Fluor
FLR 48.57
FomentoEconMex FMX 87.75
FordMotor F
12.33
ForestCIty A FCE.A 25.01
s Fortis
FTS 37.81
Fortive
FTV 72.86
FortBrandsHome FBHS 64.22
Franco-Nevada FNV 84.50
FranklinRscs BEN 42.59
Freeport-McMoRan FCX 14.64
FreseniusMed FMS 48.51
GGP
GGP 19.01
s Gallagher AJG 64.14
Gap
GPS 26.06
Gartner
IT 118.55
Gazit-Globe GZT 9.32
GeneralDynamics GD 202.37
GeneralElec GE 20.13
t GeneralMills GIS 50.10
GeneralMotors GM 42.14
Genpact
G
30.46
GenuineParts GPC 87.26
Gildan
GIL 29.38
GlaxoSmithKline GSK 36.14
s GlobalPayments GPN 104.27
s GoDaddy
GDDY 47.22
Goldcorp
GG 13.31
GoldmanSachs GS 243.49
Graco
GGG 132.16
Grainger
GWW 203.58
s GreatPlainsEner GXP 33.38
GpoAvalAcciones AVAL 8.24
GpFinSantandMex BSMX 8.27
GrupoTelevisa TV 20.69
s GuidewireSoftware GWRE 81.54
HCA Healthcare HCA 76.87
HCP
HCP 26.84
HDFC Bank HDB 95.47
HP
HPQ 21.44
HSBC
HSBC 48.26
Halliburton HAL 45.08
Hanesbrands HBI 19.34
t HarleyDavidson HOG 45.15
Harris
HRS 138.99
HartfordFinl HIG 55.89
HealthcareAmer HTA 30.38
Heico
HEI 91.26
Heico A
HEI.A 77.45
Helmerich&Payne HP 58.30
Herbalife
HLF 66.60
Hershey
HSY 104.38
Hess
HES 48.23
HewlettPackard HPE 13.63
s Hilton
HLT 73.39
s HollyFrontier HFC 42.07
HomeDepot HD 164.22
s HondaMotor HMC 33.52
Honeywell HON 145.60
HormelFoods HRL 30.77
s DR Horton DHI 44.84
HostHotels HST 19.79
HuanengPower HNP 26.71
Hubbell
HUBB 125.55
Humana
HUM 254.48
s HuntingtonIngalls HII 236.21
Huntsman HUN 30.99
HyattHotels H
68.85
ICICI Bank IBN 9.70
ING Groep ING 18.28
Invesco
IVZ 35.87
IDEX
IEX 127.87
IllinoisToolWks ITW 157.99
Infosys
INFY 14.82
Ingersoll-Rand IR
86.15
Ingredion
INGR129.62
ICE
ICE 66.20
InterContinentl IHG 57.41
IBM
IBM 150.84
IntlFlavors IFF 146.45
IntlPaper
IP
55.81
t Interpublic IPG 19.09
InvitationHomes INVH 23.12
IronMountain IRM 40.64
IsraelChemicals ICL
4.24
ItauUnibanco ITUB 12.91
JPMorganChase JPM 100.78
JacobsEngineering JEC 61.11
JamesHardie JHX 15.10
JanusHenderson JHG 35.07
J&J
JNJ 139.76
JohnsonControls JCI 41.09
s JonesLangLaSalle JLL 138.97
JuniperNetworks JNPR 24.74
s KAR Auction KAR 49.26
KB Fin
KB 52.63
KKR
KKR 20.07
KT
KT 14.10
KSCitySouthern KSU 105.99
Kellogg
K
60.20
KeyCorp
KEY 18.58
s KeysightTechs KEYS 45.08
KilroyRealty KRC 73.70
t KimberlyClark KMB 109.87
KimcoRealty KIM 18.62
KinderMorgan KMI 18.08
Knight-Swift KNX 40.78
Kohl's
KSS 42.62
KoninklijkePhil PHG 41.15
KoreaElcPwr KEP 17.52
-0.17
-0.59
0.62
0.16
-0.25
0.98
0.57
-0.15
0.40
0.36
-3.29
-0.18
-0.02
-0.52
0.20
0.05
-0.05
-0.06
0.98
0.25
-0.02
0.38
1.06
1.71
1.97
-0.03
0.11
0.59
-0.78
0.05
4.89
-0.20
0.49
0.19
-0.09
0.45
-0.32
-0.11
-0.11
-1.69
-0.01
-1.24
-0.20
0.22
-0.54
0.43
-0.01
0.66
0.36
0.21
-0.91
0.05
3.57
0.10
-0.20
-0.09
-0.04
0.58
0.44
-0.30
1.26
-0.03
-0.09
1.85
-0.02
-1.89
-0.42
0.05
0.30
0.39
0.65
3.39
-1.81
-1.54
2.77
0.13
0.23
1.93
-0.17
0.65
0.63
-0.55
0.52
0.16
0.19
0.43
-2.21
1.14
-0.73
1.49
0.14
...
-0.18
0.06
0.69
0.19
-0.10
-0.37
-0.04
0.26
-0.74
-1.86
-1.31
0.16
0.28
0.52
0.04
0.26
-0.63
1.82
0.19
0.27
-0.32
0.41
5.47
0.19
0.75
-0.92
0.05
0.02
1.13
-1.76
0.07
0.30
1.06
-0.92
0.05
0.34
-0.44
0.59
-0.31
-0.08
New Highs and Lows | WSJ.com/newhighs
Continued From Page B7
Stock
52-Wk % Stock
Sym Hi/Lo Chg Celcuity
AlliedMotionTech AMOT 34.83
AltairEngg
ALTR 19.60
Amazon.com AMZN1125.41
92.96
AnalogDevices ADI
Apple
AAPL 174.99
ArenaPharm
ARNA 28.97
Atlassian
TEAM 52.09
AxoGen
AXGN 24.95
BldrsAsia50ADS ADRA 34.35
5.90
BallardPower BLDP
3.85
Biomerica
BMRA
9.95
BisonCapAcqn BCAC
BldrsDev100
ADRD 23.23
BlueprintMed BPMC 74.42
Broadcom
AVGO 281.80
CadenceDesign CDNS 44.34
14.52
CalamosGlblTot CGO
CallidusSoftware CALD 29.70
9.95
CalumetSpecialty CLMT
19.09
CanadianSolar CSIQ
Cavium
CAVM 76.75
-0.8
-2.1
0.8
0.5
1.0
-1.3
2.1
-3.5
0.5
3.9
-3.0
1.0
0.4
-5.1
1.4
0.9
0.4
0.3
3.7
-0.2
12.0
52-Wk %
Sym Hi/Lo Chg Stock
CELC
CenturyCasinos CNTY
ChemungFinl CHMG
ClearBrLCGrw LRGE
Cognex
CGNX
CumberlandPharm CPIX
CypressSemi CY
DASAN Zhone DZSI
DavisUSEquity DUSA
DavisWorldwide DWLD
DentsplySirona XRAY
Diodes
DIOD
DoubleEagleWt EAGLW
EXACT Sci
EXAS
Ebix
EBIX
ElectroScientific ESIO
EnantaPharma ENTA
EntegraFin
ENFC
Equinix
EQIX
Exactech
EXAC
FSB Bancorp FSBC
FidelityNasdComp ONEQ
FirstSolar
FSLR
21.35
9.50
48.92
27.90
134.92
7.90
16.51
8.57
22.88
25.74
67.95
35.36
0.85
58.96
69.20
23.10
50.92
28.05
493.09
42.75
16.77
267.11
62.57
7.7
3.9
1.2
1.5
1.2
-1.2
2.5
9.9
0.5
1.5
-1.4
1.8
5.2
2.8
0.4
4.6
-0.7
1.6
1.0
-0.2
0.7
0.4
2.7
FT APxJapan FPA
FT CloudComp SKYY
FT DevMktsXUS FDTS
FT DorseyIntl5 IFV
FT NasdTechDiv TDIV
FT GlbNatRscs FTRI
FT LC US Equity RNLC
FT MC GrwthAlpha FNY
FT MC US Equity RNMC
FT MCGrAlpDX FAD
FT NasdCleanEdge QCLN
FT NasdGlblAuto CARZ
FT Nasd100Tech QTEC
FT NasdSmartphone FONE
FirstUnited
FUNC
Flex
FLEX
FoundationMed FMI
FullHouse
FLL
GilatSatellite
GILT
GladstoneInvt GAIN
GlbXFinTech
FINX
GlbXInternetThings SNSR
GlbXMillThematic MILN
35.45
44.21
42.94
21.97
34.80
12.29
20.93
38.39
21.05
64.00
20.70
42.18
73.62
52.43
18.30
18.47
55.95
3.10
7.56
10.75
21.82
20.30
18.75
0.7
0.1
0.4
0.8
0.5
1.1
0.4
0.2
0.5
0.1
1.6
0.2
0.8
1.0
2.3
0.9
4.0
11.1
1.2
1.7
1.2
0.8
0.6
Data provided by
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Monday, November 6, 2017
Net YTD
NAV Chg %Ret Fund
American Century Inv
45.10 +0.15
Ultra
American Funds Cl A
NA
...
AmcpA p
NA
...
AMutlA p
BalA p
NA
...
NA
...
BondA p
NA
...
CapIBA p
NA
...
CapWGrA
EupacA p
NA
...
NA
...
FdInvA p
NA
...
GwthA p
NA
...
HI TrA p
NA
...
ICAA p
IncoA p
NA
...
NA
...
N PerA p
NA
...
NEcoA p
NwWrldA
29.3 SmCpA p
TxExA p
NA WshA p
NAV Chg %Ret Fund
NA
NA
NA
NA
...
...
...
...
NA Baird Funds
NA AggBdInst 10.92 +0.01
11.28 +0.01
NA CorBdInst
NA BlackRock Funds A
...
NA GlblAlloc p 20.34
NA BlackRock Funds Inst
23.18
...
NA EqtyDivd
20.47
...
NA GlblAlloc
7.85 -0.01
NA HiYldBd
...
NA StratIncOpptyIns 9.97
NA Bridge Builder Trust
10.22 +0.01
NA CoreBond
NA Dimensional Fds
NA
NA
NA
NA
4.2
4.6
11.9
5GlbFxdInc
EmgMktVa
EmMktCorEq
IntlCoreEq
IntlVal
IntSmCo
IntSmVa
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
13.5
12.1
7.8
4.4 Dodge & Cox
Balanced
4.1 GblStock
Income
GoldenEnt
GDEN
Groupon
GRPN
H&E Equipment HEES
HealthEquity HQY
HeritageFin
HFWA
HorizNasd100 QYLD
Hortonworks HDP
I-AM Capital
IAM
ILG
ILG
Icon
ICLR
Insulet
PODD
IntegratedDevice IDTI
Intuit
INTU
iShAsia50ETF AIA
iShCommodSelStrat COMT
iShCoreS&PUSGrowth IUSG
iShMSCIACWIETF ACWI
iShMSCIACWIexUSETF ACWX
iShMSCIACxJpn AAXJ
iShMSCIChinaETF MCHI
iShMSCIEmMkAsia EEMA
iShMSCIEMxChina EMXC
iShMSCIUSAESGOpt ESGU
iShPHLXSemicond SOXX
Fund
Net YTD
NAV Chg %Ret
11.04
...
30.64 +0.10
22.62 +0.12
14.32 +0.03
20.12 +0.04
21.64 +0.07
23.57 +0.03
22.10 +0.03
20.99 +0.05
36.28 +0.09
38.98 +0.17
25.15 +0.13
39.10 +0.08
2.4
29.7
32.2
25.0
22.8
26.5
24.6
16.0
14.1
7.9
4.7
5.6
13.0
109.69 +0.43 9.6
14.03 +0.08 17.8
13.85
... 4.2
Stock
23.84
32.08
29.68
5.63
34.03
55.31
31.65
24.47
18.69
10.52
30.70
124.48
71.16
33.02
154.19
65.78
37.02
52.65
70.82
49.64
76.53
66.88
74.21
53.26
56.82
178.57
0.7
0.2
3.6
0.4
2.4
6.2
1.6
0.3
1.8
0.6
0.7
-0.1
0.6
5.5
-0.6
0.5
1.8
0.3
0.3
0.4
0.8
1.5
0.3
1.3
0.1
1.4
111.99
27.31
23.71
62.19
24.10
276.60
147.13
5.47
81.85
25.75
123.03
21.08
54.84
26.54
124.81
88.62
25.35
75.22
16.25
23.92
209.98
21.46
52.90
23.00
19.68
17.70
VoyaFinancial VOYA 42.06
VulcanMaterials VMC 124.61
WABCO
WBC 149.98
WEC Energy WEC 67.65
s W.P.Carey WPC 69.89
Wabtec
WAB 77.05
Wal-Mart WMT 88.70
WasteConnections WCN 68.88
WasteMgt WM 81.24
Waters
WAT 195.63
Watsco
WSO 166.16
Wayfair
W
64.05
s WellCareHealth WCG 205.11
WellsFargo WFC 56.18
Welltower HCN 68.00
WestPharmSvcs WST 100.60
WestarEnergy WR 54.00
WestAllianceBcp WAL 56.45
WesternGasEquity WGP 38.12
WesternGasPtrs WES 46.90
WesternUnion WU 19.43
WestlakeChem WLK 86.02
WestpacBanking WBK 24.82
WestRock WRK 59.27
Weyerhaeuser WY 35.66
WheatonPrecMetals WPM 21.01
Whirlpool WHR 163.42
Williams
WMB 28.79
WilliamsPartners WPZ 37.18
Wipro
WIT 5.12
WooriBank WF 42.95
Wyndham WYN 109.04
s XPO Logistics XPO 73.83
XcelEnergy XEL 49.40
Xerox
XRX 29.08
Xylem
XYL 66.54
YPF
YPF 25.16
YumBrands YUM 79.87
YumChina YUMC 41.16
s ZTO Express ZTO 17.19
ZayoGroup ZAYO 34.36
ZimmerBiomet ZBH 109.34
s Zoetis
ZTS 69.71
0.2
0.1
3.8
3.0
2.9
1.0
0.4
4.8
-1.3
6.2
0.4
9.1
2.5
-0.2
2.0
2.6
2.2
1.4
-2.4
0.2
0.5
3.4
8.2
4.9
-0.2
0.6
Fidelity Selects
220.11 -1.37
First Eagle Funds
60.80 +0.29
GlbA
FPA Funds
35.36 +0.12
FPACres
FrankTemp/Frank Adv
NA
...
IncomeAdv
FrankTemp/Franklin A
7.47 +0.02
CA TF A p
Fed TF A p 11.98 +0.02
NA
...
IncomeA p
RisDv A p 60.80 +0.03
FrankTemp/Franklin C
NA
...
Income C t
FrankTemp/Temp A
GlBond A p 12.20 +0.03
Growth A p 26.87 +0.10
FrankTemp/Temp Adv
GlBondAdv p 12.15 +0.02
Harbor Funds
CapApInst 76.44 +0.33
70.23 +0.35
IntlInst r
Harding Loevner
33.9
3.8
4.3
15.6
15.7
23.7
36.5
16.8
37.9
34.6
27.3
18.7
4.2
26.5
12.1
9.7
NA
5.5
3.3
NA
16.5
NA
4.0
14.0
4.2
34.9
20.2
0.21
-1.82
-0.48
-0.52
-0.45
0.02
-0.98
-0.74
-0.46
-2.29
0.46
-3.45
-1.39
-0.17
0.72
-0.35
...
-0.23
0.06
0.40
-0.07
0.25
-0.71
-0.68
-0.05
0.54
-0.44
0.53
0.73
-0.01
-1.20
0.13
0.58
-0.19
0.02
-0.03
0.55
0.96
-0.65
0.61
-0.04
0.09
1.02
NASDAQ
AGNC Invt AGNC 19.43
Ansys
ANSS 151.20
s ASML
ASML 184.92
s Abiomed
ABMD 196.55
ActivisionBliz ATVI 60.87
AdobeSystems ADBE 180.80
AkamaiTech AKAM 53.74
AlexionPharm ALXN 115.94
s AlignTech ALGN 244.50
Alkermes
ALKS 48.76
AlnylamPharm ALNY 130.50
Alphabet A GOOGL 1042.68
Alphabet C GOOG 1025.90
Altaba
AABA 71.71
-0.35
2.10
0.34
1.65
-2.33
-1.50
0.73
-2.01
3.15
-2.23
-1.86
-7.31
-6.58
1.48
Net
Sym Close Chg
Stock
s Amazon.com AMZN 1120.66 9.06
Amdocs
DOX 63.20 -0.35
Amerco
UHAL 384.20 -2.46
AmericanAirlines AAL 47.51 0.06
Amgen
AMGN 170.80 -2.64
s AnalogDevices ADI 92.28 0.47
s Apple
AAPL 174.25 1.75
AppliedMaterials AMAT 56.33 -0.22
ArchCapital ACGL 95.55 1.05
s Atlassian
TEAM 52.06 1.07
Autodesk ADSK 123.82 -1.03
ADP
ADP 111.33 -0.91
BOK Fin
BOKF 86.61 -0.21
Baidu
BIDU 244.53 2.99
BankofOzarks OZRK 46.23 -0.06
Biogen
BIIB 315.47 1.33
BioMarinPharm BMRN 82.96 -1.17
Bioverativ BIVV 52.85 -1.16
bluebirdbio BLUE 144.75-11.50
BrighthouseFin BHF 56.66 -1.16
s Broadcom AVGO277.52 3.89
CA
CA 32.45 -0.20
CDK Global CDK 64.43 -0.31
CDW
CDW 70.20 0.16
CH Robinson CHRW 79.08 -0.36
CME Group CME 138.16 -1.90
CSX
CSX 51.15 -0.16
s CadenceDesign CDNS 44.29 0.39
CaesarsEnt CZR 13.10 0.15
Carlyle
CG 22.25 -0.30
CboeGlobalMkts CBOE 114.44 -0.58
Celgene
CELG 101.64 1.60
Cerner
CERN 65.71 0.28
CharterComms CHTR 348.40 12.97
CheckPointSftw CHKP 105.21 -0.44
ChinaLodging HTHT 124.63 1.47
CincinnatiFin CINF 73.27 0.70
Cintas
CTAS 147.57 -0.80
CiscoSystems CSCO 34.41 -0.06
CitrixSystems CTXS 84.34 -0.56
s Cognex
CGNX 134.54 1.66
CognizantTech CTSH 74.78 0.51
Coherent
COHR 266.14 6.27
Comcast A CMCSA 35.54 -0.14
CommerceBcshrs CBSH 57.67 -0.18
CommScope COMM 34.80 1.29
Copart
CPRT 36.22 -0.19
CoStarGroup CSGP 299.88 4.10
Costco
COST 165.05 -1.39
Ctrip.com CTRP 45.91 -0.49
DISH Network DISH 50.82 2.75
s DentsplySirona XRAY 63.87 -0.93
DiamondbackEner FANG 113.69 2.54
DiscoveryComm B DISCB 22.00 -1.55
DiscoveryComm A DISCA 17.10 0.58
DiscoveryComm C DISCK 16.01 0.62
DollarTree DLTR 93.39 -0.36
E*TRADE ETFC 44.10 0.08
EastWestBancorp EWBC 59.18 -0.54
eBay
EBAY 37.37 -0.13
Net
Sym Close Chg
Stock
ElbitSystems ESLT 148.26
ElectronicArts EA 112.46
s Equinix
EQIX 491.62
Ericsson
ERIC 6.51
ErieIndemnity A ERIE 122.52
Exelixis
EXEL 27.38
Expedia
EXPE 122.98
ExpeditorsIntl EXPD 57.49
ExpressScripts ESRX 60.62
F5Networks FFIV 120.20
Facebook
FB 180.17
Fastenal
FAST 48.06
FifthThirdBncp FITB 29.24
s FirstSolar FSLR 61.47
Fiserv
FISV 127.77
s Flex
FLEX 18.44
FlirSystems FLIR 47.06
Fortinet
FTNT 39.25
Gaming&Leisure GLPI 36.69
Garmin
GRMN 59.30
GileadSciences GILD 72.38
Goodyear GT 29.29
Grifols
GRFS 23.58
HD Supply HDS 36.55
Hasbro
HAS 91.01
t HenrySchein HSIC 70.04
Hologic
HOLX 39.06
JBHunt
JBHT 107.84
HuntingtonBcshs HBAN 13.78
IAC/InterActive IAC 129.97
IdexxLab
IDXX 151.49
IHSMarkit INFO 43.61
INC Research INCR 59.00
IPG Photonics IPGP 219.25
IRSA Prop IRCP 55.75
IcahnEnterprises IEP 59.20
s Icon
ICLR 122.88
Illumina
ILMN 209.19
Incyte
INCY 105.43
Intel
INTC 46.70
InteractiveBrkrs IBKR 54.36
s Intuit
INTU 152.68
IntuitiveSurgical ISRG 384.83
IonisPharma IONS 54.25
JD.com
JD 39.01
s JackHenry JKHY 111.80
JazzPharma JAZZ 140.25
JetBlue
JBLU 19.32
JunoTherap JUNO 56.45
KLA Tencor KLAC 105.51
KraftHeinz KHC 77.00
LKQ
LKQ 37.63
LamResearch LRCX 206.67
LamarAdvertising LAMR 74.91
LibertyBroadbandA LBRDA 89.53
LibertyBroadbandC LBRDK 90.55
LibertyGlobal A LBTYA 30.67
LibertyGlobal C LBTYK 29.64
LibertyLiLAC A LILA 21.89
LibertyLiLAC C LILAK 21.97
-1.78
-0.74
4.97
0.18
-0.31
1.13
-0.07
-0.46
0.08
0.55
1.25
0.15
0.12
1.60
0.74
0.17
0.09
0.24
-0.03
-0.25
-1.08
-0.16
-0.31
0.43
0.32
-7.60
-0.50
0.62
...
0.82
-4.00
0.12
0.60
5.39
-0.25
1.20
-0.17
-4.80
0.35
0.63
0.43
-0.96
0.58
0.09
0.59
0.19
2.36
0.13
-2.03
-0.79
-1.00
-0.08
-0.40
4.94
3.10
3.20
0.16
0.04
-0.12
0.06
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
RossStores ROST 64.14
Ryanair
RYAAY 113.04
s SBA Comm SBAC 164.42
s SEI Investments SEIC 65.75
Sina
SINA 110.03
SS&C Tech SSNC 40.77
SVB Fin
SIVB 217.69
ScrippsNetworks SNI 80.13
Seagate
STX 37.46
SeattleGenetics SGEN 58.76
Shire
SHPG 147.14
SignatureBank SBNY 130.32
SiriusXM
SIRI 5.35
s Skyworks
SWKS116.33
Splunk
SPLK 68.41
Starbucks SBUX 56.57
SteelDynamics STLD 37.61
t Stericycle SRCL 67.26
Symantec SYMC 28.90
Synopsys SNPS 87.22
TD Ameritrade AMTD 49.24
TESARO
TSRO 112.50
T-MobileUS TMUS 55.54
TRowePrice TROW 94.95
TakeTwoSoftware TTWO 107.00
Tesla
TSLA 302.78
s TexasInstruments TXN 98.54
TractorSupply TSCO 59.62
Trimble
TRMB 40.65
t 21stCenturyFoxA FOXA 27.45
t 21stCenturyFoxB FOX 26.62
UltaBeauty ULTA 201.33
UltimateSoftware ULTI 201.88
s UniversalDisplay OLED 163.40
VEON
VEON 3.74
VeriSign
VRSN 109.85
s VeriskAnalytics VRSK 91.10
VertxPharm VRTX 148.98
Viacom A VIA 29.80
Viacom B VIAB 24.18
Vodafone VOD 29.21
WPP
WPPGY 87.09
WalgreensBoots WBA 65.94
Weibo
WB 99.21
WesternDigital WDC 87.85
WillisTwrsWatson WLTW 161.19
Workday
WDAY 108.42
s WynnResorts WYNN 151.39
s Xilinx
XLNX 74.50
Yandex
YNDX 33.55
ZebraTech ZBRA 115.79
Zillow A
ZG 40.97
Zillow C
Z
40.82
ZionsBancorp ZION 46.45
LibertyQVC B QVCB 22.19 -0.45
LibertyQVC A QVCA 22.24 -0.21
LibertyVenturesA LVNTA 58.39 1.82
LibertyFormOne A FWONA 36.92 0.76
LibertyFormOne C FWONK 38.72 0.85
LibertyBraves A BATRA 22.66 0.17
LibertyBraves C BATRK 22.82 0.10
LibertySirius A LSXMA 40.94 0.09
LibertySirius C LSXMK 40.98 0.05
LincolnElectric LECO 89.49 -0.33
LogitechIntl LOGI 36.49 0.44
LogMeIn
LOGM 125.25 2.50
lululemon LULU 61.79 0.64
MKS Instrum MKSI 107.50 -0.10
MarketAxess MKTX 179.95 2.95
s Marriott
MAR 121.98 0.43
s MarvellTech MRVL 20.20 1.69
MatchGroup MTCH 27.75 0.74
s MaximIntProducts MXIM 54.79 1.34
s MelcoResorts MLCO 25.85 -0.06
MercadoLibre MELI 268.53 1.18
MicrochipTech MCHP 95.36 1.70
MicronTech MU 43.25 -0.46
Microsemi MSCC 55.16 1.29
Microsoft MSFT 84.47 0.33
Middleby
MIDD 119.96 1.01
Momo
MOMO 29.32 -0.48
Mondelez MDLZ 40.42 -0.55
MonsterBeverage MNST 57.52 -0.15
Mylan
MYL 37.39 1.67
NXP Semi NXPI116.72 1.70
Nasdaq
NDAQ 71.97 -0.43
NatlInstruments NATI 45.69 0.99
NetApp
NTAP 45.00 0.76
Netease
NTES 309.69 29.17
Netflix
NFLX 200.13 0.12
s Neurocrine NBIX 74.51 1.03
NewsCorp A NWSA 14.28 0.41
NewsCorp B NWS 14.55 0.35
Nordson
NDSN 126.72 -0.01
NorthernTrust NTRS 94.22 -0.17
NorwegianCruise NCLH 55.26 0.23
s NVIDIA
NVDA 209.63 0.94
OReillyAuto ORLY 208.86 -3.64
OldDomFreight ODFL 120.64 -0.39
ON Semi
ON 21.41 -0.24
OpenText OTEX 34.25 -0.23
PTC
PTC 65.50 -0.75
Paccar
PCAR 70.61 -0.71
PacWestBancorp PACW 47.28 -0.24
Paychex
PAYX 64.00 0.01
s PayPal
PYPL 74.74 1.35
People'sUtdFin PBCT 18.42 -0.07
PilgrimPride PPC 30.52 -0.87
Priceline
PCLN 1903.00 8.51
Qiagen
QGEN 33.45 -0.25
Qorvo
QRVO 78.49 4.65
Qualcomm QCOM 62.52 0.71
RandgoldRscs GOLD 92.01 0.75
RegenPharm REGN 406.63 -1.78
0.01
0.62
9.89
0.84
0.57
0.22
-1.83
0.52
1.13
-2.62
0.95
-1.28
0.05
3.14
0.78
0.54
0.10
-0.06
-0.98
0.30
-0.28
1.59
-3.37
0.38
-1.93
-3.31
0.56
0.65
0.55
2.48
2.19
-0.72
-4.90
5.30
-0.07
1.36
0.07
-0.99
1.40
0.91
0.11
0.85
-0.93
2.80
0.84
1.60
-1.34
1.30
1.70
0.54
1.46
0.35
0.34
-0.36
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
50.35
28.68
27.02
31.38
1.39
0.35
0.78
0.16
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Monday, November 6, 2017
Closing Chg YTD
Symbol Price (%) (%)
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
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
iShMSCIEAFESC
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
1.39 –13.3
0.73 13.5
1.7
–1.07
2.22 21.1
–1.85 –19.0
2.29 –6.7
–0.11 15.1
0.41 12.1
–0.31 18.0
0.06 15.5
1.5
–0.01
0.1
...
0.6
0.06
0.17 22.2
1.02 33.1
0.32 24.0
0.17 15.8
0.37 11.2
7.8
0.22
0.19 15.6
1.4
0.09
7.0
–0.03
0.29 17.3
–0.19 13.6
0.82 11.1
3.4
0.02
1.7
0.01
4.6
–0.14
0.6
0.02
0.28 19.6
0.14 21.1
10.92
92.37
52.57
24.37
5.55
70.25
26.75
97.13
81.36
71.87
109.82
105.00
123.20
65.53
56.48
62.59
260.62
183.83
74.10
59.31
109.55
94.76
71.82
51.36
12.31
121.16
87.99
115.26
106.93
70.79
69.90
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
ETF
SCZ
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
0.22
1.12
–0.09
–0.02
–0.40
0.10
0.19
0.13
0.17
0.04
0.11
0.23
0.19
0.38
0.48
0.35
0.24
–0.05
–0.17
0.17
0.06
0.12
0.37
0.18
0.01
0.34
–0.15
...
–0.05
0.85
0.26
0.19
0.18
63.33
46.86
43.80
59.18
315.59
110.85
130.97
144.02
120.07
180.86
148.78
123.87
153.39
201.57
86.21
210.48
149.50
109.44
38.23
114.14
84.23
106.50
126.11
116.78
101.74
153.79
46.72
23.09
36.98
121.65
34.30
62.58
61.85
27.1
33.8
26.6
21.1
18.9
2.5
24.9
15.7
7.2
17.5
10.3
4.1
15.3
12.7
7.2
15.5
22.8
8.0
2.7
0.9
–0.3
1.6
5.9
19.9
0.4
29.8
12.4
–1.2
1.5
11.0
23.9
15.5
16.1
Company
Dividend announcements from November 6.
Pioneer Mun Hi Inc Adv Tr
Pioneer Mun Hi Incm Tr
Company
Amount
Yld % New/Old Frq
Symbol
Payable /
Record
Increased
Aircastle Ltd
Arbor Realty Trust
Ares Management
Black Hills
DTE Energy
Easterly Govt Properties
Sabine Royalty Tr UBI
Starbucks
AYR
ABR
ARES
BKH
DTE
DEA
SBR
SBUX
4.7 .28 /.26 Q
8.9 .19 /.18 Q
8.7 .41 /.31 Q
3.2 .475 /.445 Q
3.2 .8825 /.825 Q
5.1 .26 /.25 Q
4.4 .1572 /.1509 M
2.1 .30 /.25 Q
Dec15 /Nov30
Nov30 /Nov15
Dec01 /Nov17
Dec01 /Nov17
Jan15 /Dec18
Dec21 /Dec06
Nov29 /Nov15
Dec01 /Nov16
CPSI
BPOPM
1.4 .10 /.30 Q
6.7 .126 /.1276 M
Dec01 /Nov16
Dec01 /Nov15
Reduced
Computer Programs & Sys
Popular Cap Tr II 6.125%
Initial
BancorpSouth Bank
Digital Realty Pfd. C
Digital Realty Tr Pfd J
PS Bus Parks Pfd. X
BXS
DLRpC
DLRpJ
PSBpX
.14
.49227
.525
.36458
Jan02 /Dec15
Dec29 /Dec15
Dec29 /Dec15
Dec28 /Dec13
M
.199
.0817 M
.80 SA
.4625 Q
M
.022
Q
.16
Q
.21
Q
.34
.095 M
.095 M
M
.06
.065 M
Nov27 /Nov15
Nov27 /Nov15
Dec21 /Nov13
Nov21 /Nov13
Nov24 /Nov17
Nov29 /Nov21
Nov29 /Nov21
Dec29 /Dec15
Dec01 /Nov17
Nov30 /Nov16
Dec01 /Nov16
Nov30 /Nov16
Funds and investment companies
Brookfield Real Assets
BrookfieldGlblLstdInfrInc
Central Securities
CLSeligmn Prem Tech Gr Fd
Credit Suisse High Yld
Goldman Sachs MLP Energy
Goldman Sachs MLP Inc Opp
OFS Capital
PennantPark Floatg Rt Cap
Pioneer Divers Hi Incm Tr
Pioneer Floating Rate Tr
Pioneer High Income Trust
74.76
26.84
27.13
3.15
51.16
28.45
34.69
70.25
54.42
29.63
25.45
153.85
29.53
32.70
43.81
134.28
25.80
132.35
39.60
31.85
58.25
40.98
19.68
25.23
26.44
167.44
1.8
2.1
1.4
9.8
0.6
0.3
1.0
-0.3
0.6
...
0.2
0.3
0.2
1.8
...
1.0
3.0
0.6
-0.1
1.3
...
0.7
0.7
0.7
4.1
6.4
52-Wk %
Sym Hi/Lo Chg Stock
SEI Investments SEIC
SMTC
SMTX
SareptaTherap SRPT
Skyworks
SWKS
SolarEdgeTech SEDG
StarsGroup
TSG
SunHydraulics SNHY
SuperCom
SPCB
Talend
TLND
TexasInstruments TXN
TivityHealth
TVTY
TransActTechs TACT
TrilliumTherap TRIL
Trupanion
TRUP
TrustcoBank
TRST
TwinDisc
TWIN
2U
TWOU
USA Truck
USAK
UniversalDisplay OLED
VangdRuss1000 VONE
VangdRuss1000Grw VONG
VangdRuss3000 VTHR
VascularBiogenics VBLT
VSInverseVIXSTerm XIV
VeriskAnalytics VRSK
VicShIntlVolWtd CIL
Net YTD
NAV Chg %Ret Fund
NA
...
Invesco Funds A
11.36 +0.05
John Hancock Class 1
LSBalncd
16.03 +0.03
LSGwth
17.22 +0.05
John Hancock Instl
DispValMCI 24.13 +0.09
JPMorgan Funds
MdCpVal L 39.84 +0.11
JPMorgan R Class
11.67 +0.01
CoreBond
Lazard Instl
EmgMktEq 19.79 +0.18
Loomis Sayles Fds
LSBondI
14.21 +0.04
Lord Abbett A
...
ShtDurIncmA p 4.27
Lord Abbett F
ShtDurIncm 4.27
...
Metropolitan West
10.69 +0.01
TotRetBd
TotRetBdI 10.69 +0.01
TRBdPlan 10.06 +0.01
MFS Funds Class I
ValueI
40.63 -0.04
MFS Funds Instl
25.55 +0.04
IntlEq
Mutual Series
32.57 +0.06
GlbDiscA
Oakmark Funds Invest
34.04 +0.07
EqtyInc r
85.42 +0.37
Oakmark
OakmrkInt 29.09 -0.04
Old Westbury Fds
LrgCpStr
14.98 +0.04
Oppenheimer Y
EqIncA
9.9
7.5
6.0
7.7
9.3
10.3
9.6
10.8
8.2
7.2
6.1
7.8
52-Wk %
Sym Hi/Lo Chg Stock
PayPal
PYPL
PennNational PENN
PinnacleEnt
PNK
PlugPower
PLUG
PwrShDWA Mom PDP
PwrShDWATactical DWTR
PwrShDynFinl PFI
PwrShDynHlthcr PTH
PwrShDynTech PTF
PwrShFTSEIntlLow IDLB
PwrShGlbWater PIO
PwrShQQQ 1 QQQ
PwrShWaterRscs PHO
PrincplMillennials GENY
ProShEquRising EQRR
ProShUltPrQQQ TQQQ
ProvidentBancorp PVBC
PumaBiotech PBYI
QAD A
QADA
QAD B
QADB
Qualys
QLYS
ROBOGlblRobotics ROBO
Radware
RDWR
RedRockResorts RRR
Retrophin
RTRX
SBA Comm
SBAC
IntlEq
RA
INF
CET
STK
DHY
GER
GMZ
OFS
PFLT
HNW
PHD
PHT
NA DevMktY
65.83 1.3
1.70 4.5
57.29 3.9
117.65 2.8
34.65 -0.4
20.95 1.7
59.97 1.2
4.58 1.2
44.72 3.2
98.67 0.6
48.50 -34.2
13.25 0.8
10.00 3.9
33.00 3.0
9.38 3.9
25.76 12.3
65.90 0.1
15.50 7.1
164.00 3.4
118.94 0.2
134.36 0.2
118.99 0.2
7.35 4.9
113.81 1.0
91.73 0.1
40.12 0.1
NA
...
43.49 +0.10
IntGrowY
8.7 Parnassus Fds
NA
...
ParnEqFd
13.5 PIMCO Fds Instl
17.1 AllAsset
NA
...
10.31 +0.01
TotRt
12.4 PIMCO Funds A
NA
...
IncomeFd
9.5 PIMCO Funds D
NA
...
IncomeFd
3.9 PIMCO Funds Instl
NA
...
IncomeFd
24.6 PIMCO Funds P
NA
...
IncomeP
7.2 Price Funds
NA
...
BlChip
2.2 CapApp
NA
...
NA
...
EqInc
2.5 EqIndex
NA
...
NA
...
Growth
3.1 HelSci
NA
...
3.4 InstlCapG
NA
...
3.4 IntlStk
NA
...
NA
...
IntlValEq
13.4 MCapGro
NA
...
MCapVal
NA
...
26.1 N Horiz
NA
...
N Inc
NA
...
8.3 OverS SF r
NA
...
R2020
NA
...
11.9 R2025
NA
...
17.9 R2030
NA
...
28.1 R2035
NA
...
NA
...
R2040
16.8 Value
NA
...
PRIMECAP Odyssey Fds
Symbol
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
235.41
335.19
258.85
92.12
63.63
55.00
22.91
165.33
129.08
96.86
44.41
45.05
58.67
54.12
137.53
151.56
82.68
84.54
87.85
118.83
149.59
106.71
83.65
237.79
79.54
79.84
143.89
81.86
55.03
56.22
133.07
72.70
102.12
66.61
58.54
32.25
0.10
0.40
0.15
–0.28
0.22
–0.38
2.14
0.45
0.26
–0.36
0.18
0.96
0.15
0.37
0.26
–0.37
–0.17
0.07
0.07
0.13
0.45
0.52
0.67
0.15
0.01
0.06
0.28
0.07
0.15
0.34
0.19
0.26
–0.09
–0.08
–0.36
–0.12
Amount
Yld % New/Old Frq
19.2
11.1
15.8
7.7
31.6
13.2
9.5
36.1
6.7
13.7
21.5
25.9
22.4
22.5
23.4
19.6
9.1
1.8
2.5
16.1
13.6
9.8
1.4
15.8
0.1
0.6
11.6
1.3
1.4
22.5
15.4
19.2
9.8
16.0
18.2
14.9
Payable /
Record
MAV
MHI
5.5
5.4
.0525
.0525
M
M
Nov30 /Nov16
Nov30 /Nov16
BPY
BEP
CPAC
DTK
DTK
DVYL
LRET
HDLV
SMHD
LMLP
DVHL
MRRL
CEFL
MORL
FDP
GLOG
MIXT
OMAM
PREpG
PREpH
PREpI
PREpF
PRGO
SDYL
SANpI
TEVA
VR
5.1
5.5
4.2
7.3
7.3
2.1
3.8
7.8
8.8
3.8
6.4
7.4
12.7
7.4
1.3
3.0
1.6
2.3
6.0
6.3
5.5
5.7
0.8
4.3
6.3
2.7
2.9
.295
.4675
.53904
.475
.475
.1183
.0835
.196
.1276
.0511
.1068
.0988
.1962
.0988
.15
.14
.04397
.09
.40625
.45313
.36719
.36719
.16
.2795
.40063
.085
.38
Q
Q
A
Q
Q
M
M
M
M
M
M
M
M
M
Q
Q
Q
Q
Q
Q
Q
Q
Q
M
Q
Q
Q
Dec29 /Nov30
Dec29 /Nov30
Dec07 /Nov15
Feb20 /Feb16
Nov20 /Nov17
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Nov20 /Nov10
Dec08 /Nov15
Nov22 /Nov13
Dec07 /Nov24
Dec29 /Dec15
Dec01 /Nov20
Dec01 /Nov20
Dec01 /Nov20
Dec01 /Nov20
Dec19 /Dec01
Nov20 /Nov10
Dec11 /Nov26
Dec12 /Nov28
Dec29 /Dec15
JRVR
HCC
2.9
0.8
.50
11.21
Foreign
Brookfield Property Ptrs
Brookfield Renewable Ptrs
Cementos Pacasmayo ADR
Deutsche Bk Contgt Cap
Deutsche Bk Contgt Cap
DJ 2xSelect Div ETN
ETRACS 2xLev MSCI US REIT
ETRACS 2xLev US Hi Div
ETRACS Monthly 2xLev ETN
ETRACS Monthly 2xLev xEn
ETRACS Monthly Pay 2xLev
ETRACS Monthly Pay 2xLev
ETRACS Monthly Pay 2xLev
ETRACS Mortgage REIT
Fresh Del Monte Produce
GasLog Ltd
MiX Telematics ADR
OM Asset Management
PartnerRe Pfd. G
PartnerRe Pfd. H
PartnerRe Pfd. I
PartnerRe Pfd. Series F
Perrigo Co. PLC
S&P 2xDiv Aristo ETN
Santander Fin 6.41%s 1
Teva Pharmaceutical ADR
Validus Holdings
Special
James River Group Hldgs
Warrior Met Coal
Dec28 /Dec15
Nov22 /Nov13
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
VicShUS500Vol CFA
ViperEnergyPtrs VNOM
WisdTrChinaxSOE CXSE
WynnResorts WYNN
Xilinx
XLNX
Zogenix
ZGNX
46.86
20.65
84.05
154.28
74.51
42.60
0.1
5.4
2.0
0.9
2.3
0.6
Nasdaq lows - 68
ADMA Biologics ADMA
AMC Networks AMCX
AcaciaComms ACIA
AchieveLifeSci ACHV
Airgain
AIRG
AmbacFin
AMBC
Astrotech
ASTC
Atomera
ATOM
BedBath
BBBY
Big5SportingGoods BGFV
BisonCapAcqn BCAC
CafePress
PRSS
CambridgeBncp CATC
Cardtronics
CATM
Cemtrex
CETX
Ceragon
CRNT
Cherokee
CHKE
Net YTD
NAV Chg %Ret Fund
Closing Chg YTD
Symbol Price (%) (%)
ETF
Dividend Changes
Net YTD
NAV Chg %Ret Fund
GrowCoK 182.99 -0.05
7.95 +0.01
InvGB
11.32 +0.01
InvGrBd
52.96 +0.18
LowP r
LowPriStkK r 52.93 +0.19
106.74 +0.31
MagIn
108.80 -0.07
OTC
23.30 +0.05
Puritn
SrsEmrgMkt 21.65 +0.17
...
SrsGroCoRetail 17.98
SrsIntlGrw 16.30 +0.06
10.87 +0.01
SrsIntlVal
TotalBond 10.70 +0.01
Biotech r
-0.56
0.14
0.07
1.11
-0.35
0.12
0.24
0.48
1.15
-0.09
-1.55
-0.89
0.16
-0.17
0.14
0.33
0.01
2.16
1.42
1.40
0.08
-0.05
0.02
-0.38
1.15
-0.29
0.33
-0.03
0.48
2.23
3.50
-0.17
-0.43
-0.33
0.37
-0.11
0.48
0.42
0.05
-0.18
-0.14
-3.17
-0.30
1.13
-0.01
0.13
0.02
-2.23
-0.44
0.93
0.09
1.06
-0.79
1.57
0.38
0.35
0.20
0.82
-0.77
0.29
0.43
-0.24
0.53
-1.43
0.20
-0.53
-0.12
0.86
0.16
0.45
-0.25
-0.34
0.04
-2.49
1.63
0.24
0.18
-0.33
0.05
-0.37
-3.20
0.24
0.33
1.39
-0.07
1.18
0.77
0.62
-0.46
-0.06
0.02
1.09
0.17
0.39
-0.04
0.65
0.43
0.57
1.01
-0.12
-0.18
0.08
-3.17
-1.91
0.43
1.18
0.94
0.26
0.03
0.18
0.63
1.40
0.01
0.66
0.48
0.01
0.12
0.36
0.09
-0.51
-1.36
-0.62
-0.03
0.42
0.05
-0.68
0.81
-0.19
-0.06
0.15
0.27
0.01
-1.54
3.69
0.20
0.47
-0.68
-0.75
0.14
0.61
0.14
-0.40
0.56
1.09
0.44
0.57
0.53
0.09
0.30
-0.27
-0.01
-1.89
0.13
1.27
1.00
Net
Sym Close Chg
Stock
52-Wk %
Sym Hi/Lo Chg Stock
JackHenry
JKHY
KellyServices A KELYA
Kulicke&Soffa KLIC
LGI Homes
LGIH
Lantheus
LNTH
LendingTree
TREE
LigandPharm LGND
LimelightNetworks LLNW
LivaNova
LIVN
MMACapitalMgmt MMAC
Marriott
MAR
MarvellTech
MRVL
MaximIntProducts MXIM
MelcoResorts MLCO
MonolithicPower MPWR
NVE
NVEC
NektarTherap NKTR
Neurocrine
NBIX
NewaterTech NEWA
NuvNasd100Dyn QQQX
NVIDIA
NVDA
OptiNose
OPTN
Orbotech
ORBK
OrthoPediatrics KIDS
PCSB Fin
PCSB
PatriotNatlBncp PNBK
Net YTD
NAV Chg %Ret Fund
46.73 +0.21 22.7
Intl Stk
Stock
203.23 +1.12 13.4
DoubleLine Funds
NA
... NA
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.75 +0.16 33.9
Federated Instl
... 10.9
StraValDivIS 6.37
Fidelity
500IdxInst 90.71 +0.12 17.6
500IdxInstPrem 90.71 +0.12 17.6
500IdxPrem 90.71 +0.12 17.6
ExtMktIdxPrem r 62.83 +0.19 14.5
IntlIdxPrem r 43.42 +0.05 23.0
SAIUSLgCpIndxFd 13.91 +0.02 17.6
TMktIdxF r 75.22 +0.12 17.1
TMktIdxPrem 75.21 +0.13 17.1
... 3.4
USBdIdxInstPrem 11.63
Fidelity Advisor I
NwInsghtI 33.60 +0.04 25.8
Fidelity Freedom
FF2020
16.79 +0.04 13.8
14.53 +0.03 14.8
FF2025
FF2030
18.21 +0.05 17.3
Freedom2020 K 16.79 +0.04 NS
Freedom2025 K 14.53 +0.03 NS
Freedom2030 K 18.21 +0.04 NS
Freedom2035 K 15.28 +0.04 NS
Freedom2040 K 10.74 +0.03 NS
Fidelity Invest
23.77 +0.03 14.5
Balanc
88.04 +0.23 33.4
BluCh
127.56 +0.05 30.4
Contra
ContraK
127.56 +0.05 30.5
10.35 +0.02 11.2
CpInc r
DivIntl
41.60 +0.11 24.9
183.03 -0.05 33.8
GroCo
Net
Sym Close Chg
RedHat
RHT 121.08
RegencyCtrs REG 64.24
RegionsFin RF 15.88
ReinsuranceGrp RGA 150.88
RepublicServices RSG 63.55
ResMed
RMD 83.24
RestaurantBrands QSR 65.90
RiceEnergy RICE 28.93
RioTinto
RIO 50.39
RobertHalf RHI 52.25
Rockwell
ROK 196.83
RockwellCollins COL 135.04
RogersComm B RCI 52.08
Rollins
ROL 45.11
RoperTech ROP 258.20
RoyalBkCanada RY 79.75
RoyalBkScotland RBS 7.38
RoyalCaribbean RCL 125.34
s RoyalDutchA RDS.A 65.52
s RoyalDutchB RDS.B 67.28
SAP
SAP 114.99
S&P Global SPGI 158.64
SINOPECShanghai SHI 59.84
SK Telecom SKM 25.87
SLGreenRealty SLG 95.30
Salesforce.com CRM 102.42
Sanofi
SNY 46.07
s SantanderConUSA SC 16.93
Sasol
SSL 30.38
Scana
SCG 43.90
Schlumberger SLB 67.08
SchwabC
SCHW 44.65
ScottsMiracleGro SMG 99.11
SealedAir SEE 43.81
s SemicondctrMfg SMI 9.11
SempraEnergy SRE 118.87
SensataTech ST 48.35
s ServiceCorp SCI 36.27
ServiceMaster SERV 47.23
ServiceNow NOW 124.73
ShawComm B SJR 22.84
SherwinWilliams SHW 393.94
ShinhanFin SHG 45.34
Shopify
SHOP 99.84
SimonProperty SPG 154.99
SmithAO
AOS 59.67
Smith&Nephew SNN 37.42
t Smucker
SJM 99.99
Snap
SNAP 14.83
SnapOn
SNA 159.15
SOQUIMICH SQM 58.94
s Sony
SNE 45.87
Southern
SO 51.65
SoCopper SCCO 44.46
SouthwestAirlines LUV 54.52
SpectraEnerPtrs SEP 42.99
SpectrumBrands SPB 104.24
s SpiritAeroSys SPR 83.22
t Sprint
S
5.90
s Square
SQ 37.18
StanleyBlackDck SWK 163.56
StateStreet STT 92.29
s Statoil
STO 20.85
Steris
STE 87.20
s STMicroelec STM 24.78
Stryker
SYK 155.65
SumitomoMits SMFG 7.97
s SunCommunities SUI 93.05
SunLifeFinancial SLF 39.62
s SuncorEnergy SU 35.68
SunTrustBanks STI 60.15
SynchronyFin SYF 32.77
Syngenta SYT 92.30
Sysco
SYY 54.17
TAL Education TAL 30.14
s TE Connectivity TEL 92.97
Telus
TU 36.60
Ternium
TX 28.98
TIM Part
TSU 17.98
TJX
TJX 68.23
TableauSoftware DATA 71.40
TaiwanSemi TSM 42.43
Tapestry
TPR 41.48
TargaResources TRGP 45.28
Target
TGT 59.29
TataMotors TTM 35.00
TechnipFMC FTI 29.35
TeckRscsB TECK 21.46
TelecomArgentina TEO 33.04
TelecomItalia TI
8.77
TelecomItalia A TI.A 7.13
s TeledyneTech TDY 183.49
Teleflex
TFX 256.58
TelefonicaBras VIV 15.25
Telefonica TEF 10.22
TelekmIndonesia TLK 30.74
Tenaris
TS 30.68
Teradyne
TER 43.45
TevaPharm TEVA 12.41
Textron
TXT 54.43
ThermoFisherSci TMO 193.53
ThomsonReuters TRI 44.66
ThorIndustries THO 133.10
3M
MMM 230.31
Tiffany
TIF 92.99
TimeWarner TWX 94.46
Toll Bros
TOL 44.84
Torchmark TMK 85.68
Toro
TTC 62.98
TorontoDomBk TD 57.60
s Total
TOT 56.96
s TotalSystem TSS 73.66
s ToyotaMotor TM 125.63
TransCanada TRP 48.55
TransDigm TDG 283.00
TransUnion TRU 53.90
Travelers
TRV 133.44
TurkcellIletism TKC 9.48
TurquoiseHill TRQ 3.21
Twitter
TWTR 19.39
TylerTech TYL 174.56
TysonFoods TSN 72.18
UBS Group UBS 17.05
UDR
UDR 38.89
UGI
UGI 47.64
US Foods USFD 26.96
UltraparPart UGP 24.01
Unilever
UN 57.08
Unilever
UL 55.78
UnionPacific UNP 117.33
UnitedContinental UAL 59.92
UnitedMicro UMC 2.55
UPS B
UPS 113.92
s UnitedRentals URI 148.40
US Bancorp USB 54.85
US Steel
X
27.51
UnitedTech UTX 120.39
s UnitedHealth UNH 212.12
UniversalHealthB UHS 101.75
s UnumGroup UNM 53.07
VEREIT
VER 8.06
VF
VFC 69.07
s Visa
V
111.92
s VailResorts MTN 236.71
Vale
VALE 10.53
ValeroEnergy VLO 81.45
Vantiv
VNTV 69.37
VarianMed VAR 106.18
Vedanta
VEDL 21.22
VeevaSystems VEEV 61.35
Ventas
VTR 64.09
Verizon
VZ 45.53
VistraEnergy VST 19.36
VMware
VMW 119.21
VornadoRealty VNO 74.25
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk % GlbX Robotics&AI BOTZ
Sym Hi/Lo Chg GlbXS&P500Catholic CATH
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.
Net YTD
Net
Sym Close Chg
Kroger
KR 21.33 -0.17
Kyocera
KYO 69.01 -1.11
LATAMAirlines LTM 13.47 0.15
L Brands
LB 47.58 0.86
LG Display LPL 13.21 0.03
LINE
LN 42.12 0.24
L3 Tech
LLL 186.40 -0.12
LabCpAm LH 151.74 -2.00
s LambWeston LW 52.06 -0.06
s LasVegasSands LVS 66.55 0.67
Lazard
LAZ 47.11 0.10
Lear
LEA 174.47 -1.32
Leggett&Platt LEG 45.86 -0.14
Leidos
LDOS 62.95 -0.71
Lennar A
LEN 56.14 1.52
Lennar B
LEN.B 48.39 1.45
LennoxIntl LII 191.28 1.11
LeucadiaNatl LUK 25.98 0.23
LibertyProperty LPT 44.04 -0.03
EliLilly
LLY 82.94 -0.57
LincolnNational LNC 76.64 1.00
LionsGate A LGF.A 28.71 0.96
LionsGate B LGF.B 27.86 1.03
s LiveNationEnt LYV 44.48 0.66
LloydsBanking LYG 3.62 0.02
LockheedMartin LMT 310.08 0.09
Loews
L
49.68 0.07
Lowe's
LOW 77.41 -0.51
LyondellBasell LYB 106.49 0.91
M&T Bank MTB 168.71 -0.05
MGM Resorts MGM 31.71 0.45
MPLX
MPLX 34.70 0.58
s MSCI
MSCI 127.70 1.66
Macerich
MAC 54.19 -0.20
MacquarieInfr MIC 68.78 0.53
MagellanMid MMP 69.39 1.25
MagnaIntl MGA 54.33 -0.79
s Manpower MAN 125.14 -0.86
ManulifeFin MFC 20.84 0.01
MarathonOil MRO 16.33 0.75
MarathonPetrol MPC 62.35 0.15
Markel
MKL 1084.32 11.32
Marsh&McLennan MMC 82.63 0.25
MartinMarietta MLM 212.57 0.76
Masco
MAS 39.22 0.20
Mastercard MA 150.09 0.80
McCormick MKC 93.99 -2.91
McCormickVtg MKC.V 93.70 -3.81
s McDonalds MCD 170.07 1.42
McKesson MCK 135.21 -2.40
Medtronic MDT 77.69 -0.74
Merck
MRK 55.88 -0.18
MetLife
MET 54.33 -0.30
MettlerToledo MTD 635.11-10.89
s MichaelKors KORS 54.62 7.00
MicroFocus MFGP 34.72 -0.12
MidAmApt MAA 104.28 0.89
MitsubishiUFJ MTU 6.71 -0.11
MizuhoFin MFG 3.63 -0.04
MobileTeleSys MBT 11.11 0.30
MohawkIndustries MHK 260.62 3.29
MolsonCoors B TAP 78.89 -0.87
Monsanto MON 119.53 -0.34
Moody's
MCO 144.51 -1.78
MorganStanley MS 50.14 0.12
Mosaic
MOS 22.49 0.11
MotorolaSolutions MSI 92.43 -1.82
s NRG Energy NRG 28.25 0.63
NTTDoCoMo DCM 24.50 0.24
NVR
NVR 3263.58 52.93
NationalGrid NGG 61.27 0.41
NatlOilwell NOV 35.50 2.08
NatlRetailProp NNN 41.06 0.25
NewOrientalEduc EDU 88.00 6.46
NY CmntyBcp NYCB 12.41 -0.01
NewellBrands NWL 30.82 0.05
NewfieldExpln NFX 33.07 2.41
NewmontMining NEM 36.37 0.33
NextEraEnergy NEE 151.86 -0.79
NielsenHoldings NLSN 37.38 0.54
Nike
NKE 56.04 0.33
NiSource
NI
27.21 -0.12
NobleEnergy NBL 29.00 0.70
Nokia
NOK 5.09 0.12
NomuraHoldings NMR 5.68 -0.03
t Nordstrom JWN 39.26 0.76
NorfolkSouthern NSC 130.12 -0.24
NorthropGrumman NOC 301.86 0.20
Novartis
NVS 83.50 -0.20
NovoNordisk NVO 49.70 -0.24
Nucor
NUE 57.98 -0.02
NuSTAREnergy NS 33.22 1.22
OGE Energy OGE 35.38 -0.25
ONEOK
OKE 52.80 0.15
OccidentalPetrol OXY 68.82 0.56
Och-Ziff
OZM 3.28 -0.04
Olin
OLN 35.86 0.39
Omnicom OMC 66.55 0.34
Oracle
ORCL 50.40 0.22
Orange
ORAN 16.54 0.01
OrbitalATK OA 132.85 -0.02
Orix
IX
87.77 -1.65
Oshkosh
OSK 88.12 1.48
OwensCorning OC 82.43 0.87
PG&E
PCG 56.77 -0.03
PLDT
PHI 33.55 0.55
PNC Fin
PNC 138.59 -0.05
POSCO
PKX 72.50 0.01
PPG Ind
PPG 116.34 -0.19
PPL
PPL 36.51 -0.23
PVH
PVH 127.39 0.51
PackagingCpAm PKG 110.96 -4.78
PaloAltoNtwks PANW 147.97 1.61
ParkHotels PK 29.26 0.18
ParkerHannifin PH 184.62 -0.76
ParsleyEnergy PE 28.25 0.72
Pearson
PSO 9.14 0.12
PembinaPipeline PBA 35.44 0.63
Pentair
PNR 69.48 0.12
PepsiCo
PEP 109.26 -0.96
PerkinElmer PKI 70.55 -0.07
Perrigo
PRGO 83.43 1.07
PetroChina PTR 71.33 3.54
PetroleoBrasil PBR 11.17 0.48
PetroleoBrasilA PBR.A 10.72 0.51
Pfizer
PFE 35.32 -0.23
PhilipMorris PM 102.14 -0.52
Phillips66 PSX 94.43 0.85
PinnacleFoods PF 53.09 -1.16
PinnacleWest PNW 88.91 -0.21
PioneerNatRscs PXD 158.80 8.51
PlainsAllAmPipe PAA 20.77 0.53
PlainsGP
PAGP 20.91 0.67
PolarisIndustries PII 115.28 -1.46
Potash
POT 19.27 -0.05
Praxair
PX 147.47 -0.03
s PrincipalFin PFG 69.22 0.90
Procter&Gamble PG 86.05 -0.53
s Progressive PGR 50.21 0.06
Prologis
PLD 66.54 0.27
PrudentialFin PRU 112.39 0.55
Prudential PUK 48.87 -0.01
PublicServiceEnt PEG 49.65 -0.66
PublicStorage PSA 209.32 0.35
PulteGroup PHM 30.50 0.19
Qudian
QD 27.10 2.08
QuestDiag DGX 93.15 -0.94
s QuintilesIMS Q
108.56 0.54
RELX
RENX 22.35 -0.03
RELX
RELX 23.17 0.02
RPM
RPM 52.65 -0.26
RalphLauren RL 88.03 -2.64
RaymondJames RJF 85.32 -0.38
Raytheon RTN 184.46 -0.25
RealtyIncome O
55.26 0.08
Stock
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Stock
2.01 -8.0
47.13 5.4
36.50 ...
1.29 -13.0
7.50 -3.1
15.52 -2.5
2.48 -5.3
2.45 -6.3
19.31 2.1
6.05 -7.6
9.67 1.0
1.67 4.0
70.00 ...
16.99 -1.5
2.61 -4.3
1.82 -11.1
1.95 -6.0
ClearOne
CLRO
ConsldComm CNSL
DarioHealth
DRIO
ElPolloLoco
LOCO
ElbitImaging
EMITF
Energous
WATT
Essendant
ESND
FTD
FTD
Finisar
FNSR
Fred's
FRED
FrontierCommPfA FTRPR
FulgentGenetics FLGT
GenMarkDiagn GNMK
GenoceaBiosci GNCA
GreatElmCap GECC
HabitRestaurants HABT
HalladorEnergy HNRG
HenrySchein
HSIC
IconixBrand
ICON
iShMSCIQatarCapped QAT
KayneAnAcqn KAAC
LexiconPharm LXRX
MartinMidstream MMLP
Net1UEPS
UEPS
Novogen
NVGN
Net YTD
NAV Chg %Ret Fund
NA Growth r
35.92 +0.02
25.4 Principal Investors
NA
...
DivIntlInst
NA Prudential Cl Z & I
TRBdZ
14.58 +0.02
NA Schwab Funds
NA
...
5.2 S&P Sel
TIAA/CREF Funds
19.42 +0.03
NA EqIdxInst
IntlEqIdxInst 20.38 +0.01
NA Tweedy Browne Fds
28.56 -0.03
GblValue
NA VANGUARD ADMIRAL
500Adml 239.53 +0.33
34.18 +0.04
NA BalAdml
CAITAdml 11.83 +0.01
...
NA CapOpAdml r155.50
37.37 +0.27
NA EMAdmr
NA EqIncAdml 76.52 -0.01
NA ExtndAdml 82.53 +0.24
NA GNMAAdml 10.54 +0.01
NA GrwthAdml 70.81 +0.22
NA HlthCareAdml r 88.87 -0.11
NA HYCorAdml r 5.96 -0.01
25.86 +0.05
NA InfProAd
NA IntlGrAdml 95.60 +0.45
...
NA ITBondAdml 11.45
...
NA ITIGradeAdml 9.83
NA LTGradeAdml 10.69 +0.01
NA MidCpAdml 185.25 +0.83
NA MuHYAdml 11.42 +0.02
NA MuIntAdml 14.20 +0.02
NA MuLTAdml 11.70 +0.02
...
NA MuLtdAdml 10.97
...
NA MuShtAdml 15.78
NA PrmcpAdml r135.89 +0.02
REITAdml r 118.56 +0.74
52-Wk %
Sym Hi/Lo Chg Stock
7.00 -1.0
15.48 -2.7
1.43 -2.6
9.60 -0.8
2.33 1.1
7.07 -4.2
9.10 -0.4
10.24 4.3
18.77 -0.8
4.22 -0.2
13.00 6.0
3.41 17.1
3.63 -10.6
1.03 21.0
9.75 -1.1
9.00 -1.1
4.79 -3.0
69.51 -9.8
1.44 -8.6
14.75 -0.8
9.68 -0.1
9.79 -1.9
15.30 1.3
8.90 -1.3
1.63 -4.7
NumereX
NMRX
OriginAgritech SEED
PacBiosciCA
PACB
PapaJohn's
PZZA
Patterson
PDCO
Precipio
PRPO
ProfDiversity IPDN
ProShUltraProShQQQ SQQQ
ProteostasisTher PTI
RaPharm
RARX
RestorationRob HAIR
Sanfilippo
JBSS
SearsHoldingsWt SHLDW
Shutterfly
SFLY
SonomaPharm SNOA
Stericycle
SRCL
Teligent
TLGT
21stCenturyFoxB FOX
21stCenturyFoxA FOXA
UnivElectro
UEIC
VS2xVIXShortTerm TVIX
VSVIXShortTerm VIIX
Vical
VICL
WestmorelandCoal WLB
WestwaterRscs WWR
WheelerREITPfdD WHLRD
Net YTD
NAV Chg %Ret Fund
25.4 SmCapAdml 68.97 +0.25
...
STBondAdml 10.44
NA STIGradeAdml 10.69 +0.01
TotBdAdml 10.80 +0.01
6.1 TotIntBdIdxAdm 21.98 +0.04
TotIntlAdmIdx r 30.15 +0.08
NA TotStAdml 64.77 +0.10
14.27 +0.03
TxMIn r
17.1 ValAdml
39.85 -0.01
23.1 WdsrllAdml 69.30 +0.14
WellsIAdml 65.50 +0.02
14.1 WelltnAdml 74.04 +0.02
WndsrAdml 79.56 +0.37
17.6 VANGUARD FDS
11.5
DivdGro
26.29 +0.02
4.9
HlthCare r 210.66 -0.26
25.2
INSTTRF2020 22.61 +0.04
28.0
INSTTRF2025 22.89 +0.04
14.1
14.5 INSTTRF2030 23.08 +0.04
2.3 INSTTRF2035 23.28 +0.04
24.7 INSTTRF2040 23.48 +0.05
17.2 INSTTRF2045 23.62 +0.04
39.58 +0.19
7.0 IntlVal
33.29 +0.07
2.4 LifeGro
27.03 +0.04
42.0 LifeMod
26.93
...
PrmcpCor
4.1
33.42 +0.24
4.4 SelValu r
27.32 +0.07
10.1 STAR
10.69 +0.01
14.8 STIGrade
7.1 TgtRe2015 15.98 +0.03
4.7 TgtRe2020 31.72 +0.05
6.0 TgtRe2025 18.60 +0.03
2.6 TgtRe2030 33.61 +0.06
1.3 TgtRe2035 20.65 +0.04
24.9 TgtRe2040 35.56 +0.07
4.2 TgtRe2045 22.34 +0.04
12.7
1.5
2.4
3.6
2.3
24.8
17.1
24.0
12.0
12.3
8.5
11.9
15.9
13.9
17.2
12.3
13.8
15.1
16.4
17.8
18.3
24.7
16.5
13.0
21.4
16.1
16.2
2.3
10.1
12.2
13.8
15.1
16.4
17.7
18.3
52-Wk %
Sym Hi/Lo Chg
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
3.65 -5.6
1.25 -2.3
2.85 -5.0
58.64 -4.2
34.17 -3.2
1.30 -1.7
2.45 -4.2
22.56 -1.0
1.61 1.2
11.20 0.9
6.50 -6.1
56.48 -2.3
0.42 -13.2
40.22 -1.9
4.16 -2.6
66.27 -0.1
4.99 1.5
24.30 9.0
24.81 9.9
48.50 -4.5
8.05 -2.1
14.06 -0.9
1.80 -13.8
1.64 7.7
0.76 -3.6
19.02 -0.8
Net YTD
NAV Chg %Ret
35.94 +0.07
13.62 +0.02
10.99 +0.01
27.04 +0.01
42.87 +0.01
39.05 +0.08
VANGUARD INDEX FDS
500
239.50 +0.33
ExtndIstPl 203.66 +0.58
SmValAdml 55.46 +0.17
10.76 +0.01
TotBd2
TotIntl
18.03 +0.05
64.74 +0.10
TotSt
VANGUARD INSTL FDS
34.19 +0.04
BalInst
DevMktsIndInst 14.29 +0.03
DevMktsInxInst 22.33 +0.03
ExtndInst
82.53 +0.24
GrwthInst 70.81 +0.22
10.53 +0.02
InPrSeIn
236.32 +0.32
InstIdx
236.34 +0.32
InstPlus
InstTStPlus 58.10 +0.09
MidCpInst 40.92 +0.18
MidCpIstPl 201.83 +0.91
SmCapInst 68.97 +0.25
STIGradeInst 10.69 +0.01
10.80 +0.01
TotBdInst
TotBdInst2 10.76 +0.01
TotBdInstPl 10.80 +0.01
TotIntBdIdxInst 32.98 +0.05
TotIntlInstIdx r120.58 +0.31
TotItlInstPlId r120.60 +0.31
64.78 +0.10
TotStInst
39.84 -0.02
ValueInst
Western Asset
...
CorePlusBdI NA
18.3
7.6
2.2
8.4
11.8
12.2
17.5
14.5
8.0
3.5
24.7
17.0
11.5
24.0
24.0
14.5
24.7
2.4
17.6
17.6
17.0
14.9
14.9
12.7
2.4
3.6
3.6
3.6
2.3
24.8
24.8
17.1
12.0
NA
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B12 | Tuesday, November 7, 2017
THE WALL STREET JOURNAL.
BANKING & FINANCE
Goldman,
CIC Plan
Joint Fund
To Invest
Goldman Sachs Group Inc.
and China Investment Corp.
are joining on a multibilliondollar fund to help the Chinese
sovereign-wealth fund invest
WANG HE/XINHUA/ZUMA PRESS
By Chao Deng and
Lingling Wei in Beijing
and Julie Steinberg
in Hong Kong
A production line at a Dongfeng-Renault plant in Wuhan. Moody’s has lowered its rating on Dongfeng Motor Group, while a domestic firm has maintained it at triple-A.
Ratings Firms Ready China Push
BY SHEN HONG, MANJU DALAL
AND GUNJAN BANERJI
The world’s largest bondrating firms are on the verge
of gaining unfettered access to
an arena they have long coveted: China’s booming market
for corporate debt.
It won’t be an easy task.
Even before the big credit
raters gain the right to operate independently within
China, they are already in Beijing’s crosshairs. Both Moody’s
Investors Service and S&P
Global Ratings this year lowered their ratings on China’s
sovereign debt, citing concerns about the country’s increasing debt pile.
The downgrades drew a
hostile response from China’s
government. And when China
last month issued $2 billion in
U.S. dollar bonds—its first
such sale outside the country
in 13 years—it didn’t seek a
rating from any of the big foreign firms.
The tension comes at an
important juncture. After being restricted for decades
from operating freely in China,
Moody’s, S&P and smaller rival Fitch Ratings now have a
path to start offering creditrating services in the country
under a trade deal Beijing and
Washington struck in May.
When they can actually do so
is unclear. The companies
need to be licensed to operate
on the mainland, and Beijing
has made little progress on its
Diverging Assessments
Moody's Investors Service and its Chinese joint venture, China
Chengxin International Credit Rating*, have sharply differing credit
ratings on some debt issuers.
Noninvestment
grade
Investment
grade
Rating scale
C
B1
China Moody’s
(sovereign)
China Chengxin
Craig W. Broderick, a member of Goldman Sachs Group
Inc.’s management committee
and the firm’s chief risk officer, is retiring in January, according to an internal memo.
Mr. Broderick is Wall
Street’s longest-serving chief
risk officer and held the post
through most of the financial
crisis, during which Goldman,
while bruised, made out better
than others. He will become a
senior director at the firm
upon retirement, signaling he
won’t be heading to a rival,
according to the memo reviewed by The Wall Street
Journal.
Robin Vince will succeed
Mr. Broderick effective Jan. 31,
the memo said. A Goldman
veteran who has been at the
firm for more than two decades, Mr. Vince is currently
the firm’s treasurer.
Mr. Vince was named to
that position in 2015, succeeding Liz Beshel. He is co-chairman of the firmwide finance
committee and will become a
member of the management
committee.
Mr. Broderick became Goldman’s chief risk officer in
2008 and later testified in
front of the congressional fi-
A1
AAA
Postal
Savings Bank
of China
A2
Dongfeng
Motor Group
A2
Anhui Conch
Cement
A3
AAA
AAA
AAA
B1
Yanzhou
Coal Mining
AAA
*Moody’s owns 30%.
Sources: the rating companies
pledge to open up the sector.
The deeper dilemma for the
U.S. raters is whether they can
be successful in a country
where most bond issuers,
which pay for credit ratings,
are used to lofty grades from
domestic assessors. Among
the 4,484 corporate bond issuers in China, 3,883, or 87%,
have a domestic credit rating
of AA or higher, grades that
Veteran Risk Manager
To Leave Wall Street
BY LIZ HOFFMAN
AND WILLIAM LOUCH
AAA
nancial-crisis commission. The
firm’s memo highlighted the
central role he played in dealing with the ramifications of
the financial crisis, praising
his “sure and steady hand”
and “deep understanding of
risk.”
A 32-year Goldman veteran—he joined the firm from
Chase Manhattan in 1985 as a
credit officer—Mr. Broderick
became the first chief risk officer in Goldman’s history to
be appointed to the firm’s
management committee. That
move was widely viewed as
marking the ascendancy of
risk and control functions in
the wake of the crisis.
Earlier this year, he helped
oversee a reorganization
meant to ensure the risk division remains independent from
the businesses it oversees.
“People sometimes talk
about building an airplane
while it’s flying,” Mr. Broderick told The Wall Street Journal in 2014, speaking about his
firm’s efforts to revamp its
oversight and management
systems. “To me, it feels like
we’re turning a two-engine
plane into a four-engine plane
in flight.”
Beth Hammack, Goldman’s
global head of rates trading,
will become treasurer in Mr.
Vince’s stead.
THE WALL STREET JOURNAL.
Moody’s, S&P and Fitch reserve for only the safest and
most financially sound companies.
Bond defaults in China’s $9
trillion debt market are rare,
because many firms are widely
perceived to have some sort of
implicit support from the government, which could step in
to backstop issuers that run
into financial trouble. Trying
to accurately assess risk in
such an environment can be
challenging.
The fate of the ratings
firms in China isn’t a matter
only for the industry. The
country has been trying to internationalize its bond markets, and while many yieldhungry foreign investors are
eager to buy Chinese debt, a
lack of faith in the grading
system has given some pause.
Foreign bond raters could
potentially “bring expertise
and, more importantly, independent thinking” to the Chinese market, said Luke Spajic,
an emerging-markets portfolio
manager at Pacific Investment
Management Co. in Singapore.
The ultimate test will come
when domestic and foreign
raters have vastly diverging
views on credit risk, he said,
adding, “Calling out bond defaults should be the credibility
marker.”
In the late 1990s, international rating firms were allowed to establish a limited
foothold in China, and they
took minority stakes in companies controlled by Chinese
firms.
Moody’s owns 30% of a
joint venture called China
Chengxin
International
Credit Rating Co. S&P doesn’t
have ownership interest in a
domestic ratings firm but has
a partnership with Shanghai
Brilliance Credit Rating & Investors Service Co. and
mostly provides help with
technology and training.
The foreign firms don’t
control the joint ventures,
whose ratings are in some
cases different from the foreign raters’ own assessments.
Last week, Dandong Port
Group Co., a company in a
northern Chinese city with the
same name, missed a payment
on a 1 billion yuan ($150.6 million) bond issued in 2014. Just
before its default, Dandong
had a high investment-grade
rating of AA from China Lianhe Credit Rating Co., a
company that is 49%-owned
by Fitch. The domestic firm
downgraded its rating to C after the default.
The international raters are
allowed to assess offshore
bond deals. That has resulted
in diverging credit ratings on
some companies.
Consider the case of Dongfeng Motor Group Co., a
state-run car maker in central
Hubei province that in May
was downgraded by Moody’s
to A2 from A1, shortly after it
lowered its China rating. China
Chengxin, the domestic rater
in which Moody’s has a stake,
has a AAA rating on Dongfeng
Motor.
As of Oct. 10, Moody’s had
upgraded 13 and downgraded
40 Chinese companies’ offshore ratings since the start of
this year. Its joint venture in
China upgraded 99 and downgraded 18 onshore ratings over
the period.
The international raters are
considering options that could
include exiting their joint ventures and setting up their own
China subsidiaries, or boosting
their presence under the current structures, people familiar with the matter said.
Simon Jin, S&P’s president
for Greater China, said he expects Chinese regulators, who
are in talks with the three big
firms, to release a framework
before the end of the year that
would guide how they operate.
Equifax Continues Probe
BY ANNAMARIA ANDRIOTIS
An Equifax Inc. board committee is continuing to examine the role of the company’s
chief legal officer in approving
share sales by four executives
days after suspicious activity
was discovered in the company’s systems, according to
people familiar with the matter.
That inquiry remains open
even though the committee,
comprised of independent directors, on Friday issued a report exonerating the executives who sold stock. Three of
the four executives sold
around $1.8 million of company shares combined.
The share sales were called
into question after Equifax in
early September disclosed that
it was the subject of a massive
data breach that exposed vital
personal information of potentially 145.5 million Americans.
The board committee said
the executives who sold stock,
including finance chief John
Gamble, didn’t have knowledge of the suspicious activity.
It added that “none of the four
executives engaged in insider
trading.”
But the report didn’t address the level of knowledge
John J. Kelley, Equifax’s chief
legal officer, had about the
suspicious activity when his
office approved the share
RON SACHS/CNP/ZUMA PRESS
Concerns remain over
Beijing’s willingness
to open up sector to
international rivals
Equifax’s ex-CEO Richard Smith
sales. In addition to his legal
duties, Mr. Kelley was in
charge of security at Equifax
and the company’s former
chief security officer reported
to him. That executive, Susan
Mauldin, retired after the
breach disclosure.
Mr. Kelley is no longer
overseeing security, according
to people familiar with the
matter. The change occurred
after the breach disclosure,
they added.
Equifax didn’t respond to
requests to comment.
Neither Mr. Kelley nor Ms.
Mauldin could be reached to
comment.
Equifax became aware of
the suspicious activity on its
systems on July 29. Mr. Kelley
was made aware of this
on July 30, according to the
people familiar with the matter.
On July 31, Mr. Kelley
emailed Richard Smith, the
company’s CEO at the time, to
tell him David Webb, chief information officer at the time,
would likely be sharing some
news pertaining to suspicious
activity, according to another
person familiar with the matter.
Mr. Smith has said in written testimony that he learned
of the suspicious activity on
July 31 in a conversation with
Mr. Webb. Messrs. Smith and
Webb retired after the breach
was disclosed.
The board committee is
continuing to review the level
of information Mr. Kelley had
at that time, the people added.
The executives, after receiving
approval from Mr. Kelley’s office, sold their shares on Aug.
1 and Aug. 2.
The board committee report did say that neither Equifax’s “chief legal officer nor
his designated preclearance
officer had reason to believe”
that the four executives knew
about the security incident
when they submitted their
preclearance requests or on
the date of their trades.
Mr. Kelley himself, though,
was aware of the suspicious
activity on Equifax’s systems
when his office approved the
trades, the people said.
in U.S. manufacturing and
other sectors, according to
people familiar with the matter.
The fund is targeting as
much as $5 billion and is a coinvestment partnership between Goldman and CIC,
which plan to announce their
venture jointly this week during President Donald Trump’s
visit to Beijing, these people
said. How much capital Goldman and CIC will each contribute to the fund is still being
worked out, one of the people
said.
If completed, the deal is
one of a number of agreements U.S. and Chinese businesses are expected to announce on Thursday in a
ceremony presided over by Mr.
Trump and Chinese President
Xi Jinping in Beijing’s Great
Hall of the People.
Other contracts, letters of
intent and agreements involve
aviation, liquefied natural gas
and soybeans, and the deals
are being presented as progress in a trade relationship
that Mr. Trump has criticized
as lopsided in China’s favor.
Goldman Sachs Chairman and
Chief Executive Officer Lloyd
Blankfein, General Electric
Co. Vice Chairman John G.
Rice and DowDupont Inc. Executive Chairman Andrew N.
Liveris are among the dozens
of U.S. executives coming to
Beijing during Mr. Trump’s
visit.
The delegation and the
deals are meant to show that
the Trump administration is
working to reduce the U.S.
trade deficit with China and
The fund is targeting
as much as $5 billion
to invest in various
U.S. industries.
promote American jobs, according to U.S. business
groups. In pushing for deals,
some executives with these
groups are concerned that Beijing is deflecting pressure to
provide greater access to the
Chinese market for foreign
businesses.
Mr. Trump has railed about
the trade deficit, which came
to $347 billion last year. Over
the past year, Chinese acquisitions of U.S. companies have
come under scrutiny from a
government review panel. The
Trump administration has
launched an investigation into
allegations that China pressures U.S. high-tech firms to
turn over intellectual property.
For China’s sovereignwealth fund, the tie-up with
Goldman will help it expand
its U.S. investments to include
more than publicly traded securities, real estate and private-equity assets.
With more than $200 billion in foreign assets, CIC is
casting an eager eye at U.S.
high-tech manufacturing, highways, rail lines and other projects, looking to generate
steady, long-term returns for
the fund and acquire the technological know-how to help
upgrade China’s industrial
base. In return, CIC officials
have said the fund can serve
as a stable source of long-term
capital for U.S. projects.
CIC has complained about
what it says is an unfair review process by the Committee on Foreign Investment in
the U.S. By collaborating with
a top Wall Street firm, CIC is
seeking to diminish the
chances its investments will
be blocked, one of the people
familiar with the matter said.
CIC went to Goldman with the
idea for the fund, a second
person said.
For Goldman, it may better
position the New York firm if
Chinese authorities grant foreign firms greater access to
China’s financial sector.
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.
Tuesday, November 7, 2017 | B13
* * * *
HEARD ON THE STREET
Email: heard@wsj.com
Broadcom’s Risky Qualcomm Bet
Broadcom’s bold offer
may not be enough to net
Qualcomm. But time may
not be on Qualcomm’s side.
In offering $70 a share for
Qualcomm in a mix of cash
and stock, Broadcom is making two very large gambles.
One is that it can quickly
settle Qualcomm’s legal battles with regulators and Apple over the royalty rates
the company charges. The
other is that the company
can either quickly close
Qualcomm’s pending acquisition of NXP Semiconductors
or let the deal go.
Neither is a simple option,
at least not as simple as investors currently seem to be
contemplating. Broadcom
and Qualcomm have gained
more than $18 billion in
combined market value since
reports of the unsolicited bid
surfaced on Friday. Broadcom made it official Monday,
formally offering $60 in cash
and $10 in stock for Qualcomm. That is about what
Qualcomm’s shares were
fetching at this time last
year, after the company announced its offer for NXP
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Patently Painful
Qualcomm’s technology licensing revenue
$8 billion
Projection
6
4
2
0
FY 2007 ’08
’09
’10
’11
’12
’13
’14
’15
’16
’17
’18
Note: Fiscal years ended September
Sources: the company; FactSet (projection)
and months before its relationship with Apple deteriorated into a nasty legal fight.
Broadcom’s investors
should consider that this
proposed deal isn’t simply
about combining two chip
businesses and wringing out
cost overlap. Most of Qualcomm’s operating profit
comes from the licensing
business at the heart of its
dispute with Apple. And Apple clearly wants to pay a lot
less. So Broadcom’s path to
THE WALL STREET JOURNAL.
peace would need to involve
either sharply reducing
those royalty rates or divesting the licensing business altogether.
That won’t be easy. Qualcomm—under the watch of
activist Jana Partners—considered splitting its chipset
business from the royalty
side two years ago, only to
find it unworkable given
their intertwined nature.
Cutting the royalty rate significantly could buy peace
with Apple, but the licensing
business is a strong cashflow machine that would
come in handy for Broadcom
to pay down the $25 billion
in net debt the combined
company would carry.
Broadcom certainly has a
strong track record in M&A.
But hostile acquisitions often
don’t do well in tech because
key employees leave. And
huge, complex deals bring on
a lot of additional risk—even
without an escalating legal
battle with Apple.
The fact that Qualcomm’s
stock price still sits about
10% below the deal price indicates investors are skeptical the deal will happen. But
Qualcomm shouldn’t be too
sanguine, as its stock price
has sharply underperformed
peers—including Broadcom—
over the past three years.
With the coming onset of 5G
wireless technology and its
pending NXP deal, Qualcomm can rightfully argue it
is worth more in the long
run. But its tired shareholders won’t need much more
motivation to get out of the
race now.
—Dan Gallagher
OVERHEARD
There are lists that people
clamor to be on—and then
there are lists to avoid. In
markets, the “fragile five”—a
term that was coined by
Morgan Stanley in 2013 to
define emerging economies
vulnerable when U.S. monetary largess fades and the
dollar strengthens—is one of
the latter.
Now Standard & Poor’s
has come up with a new list
based on seven variables that
look at a sovereign’s external
financial risk, including current-account, reserves and
debt metrics.
The good news is that
four of the original fragile
five—Brazil, India, Indonesia
and South Africa—no longer
feature in the list, S&P says,
replaced by Argentina, Pakistan, Egypt and Qatar.
That leaves poor Turkey.
Indeed the country is the only
sovereign S&P looked at that
is among the most vulnerable
on all seven variables considered.
When it comes to fragility,
that is an uncomfortable level
of distinction.
A Saudi Crackdown Doesn’t Guarantee an Aramco IPO
A sweeping palace crackdown in the dead of night
under the Arabian stars: It is
the stuff of novels and, apparently, oil investors’
dreams.
Oil prices are now up 3%
since Thursday’s close. Driving the action is slowing supply growth in the U.S., and a
lightning strike against potential rivals by Saudi crown
prince Mohammed bin Salman on Saturday night that
left more than 60 Saudi royals and other elites in detention, including the former
head of the country’s National Guard.
Oil markets seem to be interpreting the arrests as a
sign of the crown prince’s
Mind the Lag
Change from a year earlier
200%
U.S. oil rig count
Oil price
100
0
–100
2007
’09
’11
’13
’15
’17
Sources: Baker Hughes;
Energy Information Administration (oil price)
strength, and that makes it
more likely the initial public
offering of Saudi Aramco—
his pet policy—will go ahead.
An Aramco float would fly
better if oil prices are high,
so the Saudis, under their assertive leader, will be more
likely to carry out production
cuts.
Or so the theory goes.
Still, Saudi elite politics are a
black box. If this intrigue
ushers in a significant period
of instability at the top of
Saudi government, pushing
through a contentious $2
trillion IPO might prove
tricky, to say nothing of enforcing painful oil-production
cuts.
The legal and technical
barriers to Aramco’s IPO remain formidable. President
Donald Trump may have
tweeted in favor of a New
York listing, but Saudi Arabia
has long feared that would
open the kingdom to lawsuits
related to 9/11. A London listing would require rule
changes to allow smaller free
floats, and similar time zones
mean it would compete for
funds with any listing in Riyadh. And in Hong Kong, Chinese capital controls mean a
big chunk of mainland cash
would be locked out of any
IPO. Given all this, the kingdom has been considering
selling a chunk of Aramco
privately to deep-pocketed
Chinese investors reportedly
including China National Petroleum Corp. and Sinopec,
instead.
Finally, even if Prince Mohammed successfully consolidates power, there is no
guarantee U.S. shale drillers
will sit on their hands as
prices move higher. Oil bulls
are taking comfort from the
falling oil rig count in the
U.S. But even for nimble U.S.
wildcatters, supply adjustments don’t happen instantly. After oil prices began
rebounding in early 2016, the
U.S. rig count kept falling for
three to four months more,
about as long as the current
oil rally has lasted so far.
A triumphant crown
prince and desultory supply
growth in the U.S. next year
would indeed be bullish for
Aramco and for oil—but it is
still early days to conclude
that both those chickens are
hatched. —Nathaniel Taplin
SoftBank’s
Vision Is
Going Blurry
For Masayoshi Son, control is all important. The
question is if too much is
slipping from the SoftBank
chief executive’s grasp.
Mr. Son spent much of
SoftBank’s latest earnings
call Monday explaining that
Sprint had abandoned
merger talks with T-Mobile
because it didn’t want to lose
control of the company: A
deal with the larger T-Mobile
now would likely see Sprint
as the junior partner. Instead, SoftBank is raising its
stake in Sprint to 85%.
The decision, however,
means Sprint will have to
carry on fighting alone
against its three bigger rivals
while stretching its already
indebted balance sheet to
fund billions of dollars of
new investment in next-generation networks.
Sprint isn’t the only problem for Mr. Son. The $93 billion SoftBank Vision Fund
that SoftBank launched in
May along with the Saudi
government reported an operating profit of $1.6 billion
so far. Much of that came
from its 4.9% stake in chip
designer Nvidia.
The fund’s other investments seem odd, including a
minority stake in Saudi Electricity Co. It also plans to
build the world’s biggest solar power plant in a new city
in Saudi Arabia called Neom,
which has yet to be built.
How are such investments
consistent with SoftBank’s
aim of leading the “information revolution”? Mr. Son’s
answer: Saudi Arabia “has
great sunshine” and that
“without electricity, you
can’t use phones.” That is a
practical response, but not
one that burnishes his credentials as a tech-investing
visionary or gives confidence
he can solve problems faced
by Sprint.
—Jacky Wong
MARKETS
BY SAM GOLDFARB
U.S. government bonds
strengthened Monday, picking
up where they left off last
week as investors reassess
risks that led
CREDIT
them to sell
MARKETS bonds for much
of the previous
two months.
The yield on the benchmark
10-year Treasury note settled
at 2.318%, compared with
2.343% Friday.
Yields, which fall when bond
prices rise, have been on a
steady retreat since the 10year yield came close to reaching 2.5% near the end of October.
Analysts have pointed to
several reasons behind the
move, including President
Donald Trump’s nomination of
Federal Reserve Board governor Jerome Powell as the next
Fed chairman. Among the potential candidates, Mr. Powell
was seen as the least likely to
shift to a more aggressive pace
of interest-rate increases.
Prices of 10-year notes also
have been supported by signals from the Treasury Department that it would meet
additional borrowing needs
largely through sales of shortterm debt, keeping the
weighted average maturity of
outstanding debt at roughly
current levels. Some investors
had expected more issuance of
long-term debt, possibly including new ultralong bonds
such as those with 50-year
maturities.
Investors sold bonds in recent months partly out of the
expectation that Congress
would pass deficit-expanding
tax cuts, but they have turned
more skeptical recently as lawmakers move to advance a bill
and political obstacles come
into focus, Gennadiy Goldberg,
senior U.S. rates strategist at
TD Securities, said.
Yield Seekers Flee Dollar
BY DANIEL KRUGER
The U.S. dollar fell, losing
ground against emerging markets as relatively high government-bond
CURRENCIES yields
in
some
of
those countries made their currencies attractive versus the dollar.
The Wall Street Journal
Dollar Index, which tracks the
currency against a basket of
others, weakened 0.3%, to
87.67, its largest decline since
Oct. 10.
The dollar dropped 2%
against the Brazilian real, 1.5%
against the Turkish lira and 1%
against the Mexican peso.
U.S. bond yields have remained low even as the Federal Reserve has raised interest rates three times since last
December and has suggested it
is likely to lift them again before the end of the year.
Those persistent low bond
yields have made the U.S. cur-
rency less attractive to yieldseeking investors.
While investors see Fed
policy as being broadly supportive for the dollar, the central bank still has many steps
to take before it completely
retreats from years of easy
money. The Fed announced a
plan in September to gradually
reduce the $4.2 trillion of
Treasury and mortgage bonds
it accumulated during the financial crisis.
“It’s the relative yield
story,” said Erik Nelson, a currency strategist at Wells Fargo
Securities. Currencies such as
the lira and the real are “particularly sensitive to the 10year” U.S. Treasury note yield,
he said.
The dollar may resume rising against emerging markets
should bond yields resume rising, said Win Thin, a currency
strategist at Brown Brothers
Harriman. “We need something to get U.S. yields
higher,” he said.
SPENCER PLATT/GETTY IMAGES
Bonds Extend Gains as
Investors Rethink Risks
The S&P 500 energy sector jumped 2.2%, posting its second-biggest one-day percentage gain of 2017. A natural-gas operation in Texas.
U.S. Stock Indexes Post Records
BY AKANE OTANI AND MIKE BIRD
Rallying energy shares
pushed U.S. stock indexes to
another set of records.
The S&P 500, Dow Jones Industrial Average and Nasdaq
Composite posted fresh highs
together Monday for the 26th
time this year.
A recovery in commodity
prices, a pickup in growth
across econoMONDAY’S
mies around
MARKETS
the world and
a weaker dollar
have
helped
major indexes climb doubledigit percentages this year, investors and analysts say. Some
also said they would be watching for signs of progress on a
Republican tax bill, which was
unveiled last week.
“The question is whether
valuations are already reflecting all of the good news—
whether it’s economic growth
or tax reform—and then trying
to determine where that
leaves us with stocks,” said
Dan Miller, director of equities
at GW&K Investment Management.
The Dow industrials rose
9.23 points, or less than 0.1%,
to 23548.42. The S&P 500
added 3.29 points, or 0.1%, to
2591.13 and the Nasdaq Composite gained 22 points, or
Contemplating Consolidation
Shares of chip makers rose after Broadcom launched
a takeover bid for Qualcomm.
6%
Broadcom
5
iShares PHLX Semiconductor ETF
4
Qualcomm
S&P 500
3
2
1
0
–1
–2
9:30 a.m. 10
EDT
11
noon
Source: FactSet
0.3%, to 6786.44.
The energy sector in the
S&P 500 jumped 2.2%, posting
its second-biggest one-day
percentage gain of the year.
Chesapeake Energy climbed 44
cents, or 12%, to $4.18, leading
gains in the sector.
U.S. crude for December delivery added 3.1% to $57.35 a
barrel Monday—its highest
settlement since June 2015—
with several analysts attributing the move to a wave of arrests in Saudi Arabia that
raised concerns of a possible
1
2
3
THE WALL STREET JOURNAL.
disruption to oil flows.
Despite the recent rebound
in oil prices, energy shares in
the S&P 500 are still lagging
behind.
The sector is down 6.3%
this year, making it the second-biggest decliner in the
S&P 500 after telecom.
Meanwhile, corporate news
drove swings in other areas of
the stock market.
Qualcomm rose 71 cents, or
1.1%, to 62.52, after Broadcom
launched a $105 billion takeover bid for the chip maker.
Broadcom jumped 3.89, or
1.4%, to 277.52.
Intel rose 63 cents, or 1.4%,
to 46.70, and Advanced Micro
Devices jumped 81 cents, or
7.3%, to 11.93, after The Wall
Street Journal reported the
two companies were teaming
up to battle a common competitor, Nvidia.
Sprint shed 77 cents, or
12%, to 5.90, and T-Mobile US
fell 3.37, or 5.7%, to 55.54, after the two companies officially called off their merger
Saturday, putting an end to a
deal that would have combined the No. 3 and No. 4
wireless carriers in the U.S.
At the lunch break in Tokyo
Tuesday, Japan’s Nikkei was
up 0.8%. At the same time,
Hong Kong’s Hang Seng Index
was up 0.9%.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$133,310,962,700 $116,135,361,400
$42,000,237,700 $36,000,081,400
$577,929,700 $485,439,400
$644,000,000 $200,000,000
99.700458
99.342778
(1.185%)
(1.300%)
1.205%
1.327%
Coupon equivalent
98.82%
9.76%
Bids at clearing yield accepted
912796NR6
912796PF0
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Nov. 9, 2017. The 13-week bills
mature on Feb. 8, 2018; the 26-week bills mature on
May 10, 2018.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B14 | Tuesday, November 7, 2017
MARKETS
Investors Face New Turmoil in Mideast
Recent high-profile arrests in Saudi Arabia are raising concerns outside the country’s
borders. Some investors are revisiting their expectations for the prices of crude oil
and domestic stocks, markets in which the kingdom plays a significant role.
Americas
$34.9 trillion
Saudi stock market’s total value
in relation to the rest of the world
New York Stock Exchange
21.22
Nasdaq
9.26
Asia-Pacific
$27.1 trillion
Europe, Africa
and Middle East
$19.4 trillion
Euronext
4.34
Japan
Exchange
Group
5.72
Deutsche
Boerse AG
2.18
London
Stock Exchange
Group
4.26
SIX
Swiss
Exchange
1.68
Nasdaq
Nordic
Exchanges
1.56
Rest of
Asia-Pacific
16.48
BME
Spanish
Exchanges
0.89
Johannesburg
Stock
Exchange
1.11
Moscow
Exchange
0.62
Rest of
Europe
and Africa
1.47
Rest of Americas
4.39
Saudi Stock Exchange
(Tadawul)
0.46
Shanghai Stock
Exchange
4.92
Rest of
Middle East
0.78
The sharp decline in recent years of the global oil price
forced changes in the economics of Saudi Arabia,
bolstering the case for seeking out foreign investment.
A yawning fiscal deficit as a result of lower oil prices
has forced the Saudis to raise revenue by selling
bonds and a possible initial offering of the state oil
company, Aramco.
Risk-sensitive investors pushed up yields
Monday for Saudi Arabia’s benchmark bond.
Percentage change since end of 2013
Largest bond deals in emerging markets
Saudi Arabia’s benchmark bond due 2046
Saudi Arabia (2016)
40%
$17.5B
Argentina (2016)
MSCI Emerging Markets
0
16.5
Teva Pharmaceutical Finance Netherlands III BV (2016)
Saudi Arabia (2017)
Brent crude-oil price
–80
2014
’15
’16
’17
4.5
12.5
Emirate of Abu Dhabi (2017)
Saudi Arabia All Share (TASI)
15.0
4.4
11.0
Petrobras Global Finance BV (2013)
–40
4.6%
10.0
Rosneft Oil Co OAO (2016)
4.3
9.4
Qatar (2016)
9.0
Saudi Arabia (2017)
9.0
4.2
Sept.
Petrobras Global Finance BV (2014) 8.5
Oct.
Nov.
THE WALL STREET JOURNAL.
Sources: World Federation of Exchanges (market value); FactSet (indexes); WSJ Market Data Group (brent); Dealogic (bond deals); Thomson Reuters (yield)
You were looking to retire by the water.
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