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 THURSDAY, NOVEMBER 9, 2017 ~ VOL. CCLXX NO. 111 * * * * * * DJIA 23563.36 À 6.13 0.03% NASDAQ 6789.12 À 0.3% STOXX 600 394.45 g 0.1% 10-YR. TREAS. g 5/32 , yield 2.325% OIL $56.81 g $0.39 Antitrust regulators are pressing AT&T to sell either DirecTV or TV unit including CNN Business & Finance T he Justice Department is pressing for changes to AT&T’s proposed deal for Time Warner, raising the prospect AT&T would have to sell either Turner, which includes CNN, or DirecTV. A1 gest media deals ever, people familiar with the matter said. The Justice Department has raised the prospect that the telecom giant would have to divest either the Turner television unit, which includes CNN along with other cable channels, or the satellite DirecTV business, the people said. The two sides have engaged in recent tense settlement discussions to address the agency’s concerns about the transaction, which would put CNN, HBO and the Warner Bros. film studio under the By Keach Hagey, Brent Kendall and Drew FitzGerald U.S. antitrust regulators are pressing for major changes to AT&T Inc.’s proposed takeover of Time Warner Inc., demands that threaten one of the big- China’s Tencent is proving a welcome source of capital to fledgling American companies, with Snap being the latest beneficiary. A1 EURO $1.1596 YEN 113.87 same corporate roof as satellite broadcaster DirecTV and more than 100 million wireless users. AT&T and the Justice Department are far apart, and people involved in the discussions have differing views on the exchange of proposals. AT&T offered to sell the CNN business, but the agency rejected the idea, one person close to the negotiations said. AT&T denied it offered to sell the news network, which President Donald Trump has criticized as unfair to him. BY JANET HOOK AND KRISTINA PETERSON An alleged operative for Weinstein was identified as the same woman who had sought information from a critic of insurer AmTrust. B1 Equifax’s interim CEO told lawmakers he wasn’t sure if the firm was encrypting consumer data in the wake of its data breach. B6 Outcome Health fired back at investors suing the firm, saying their accusations of fraud are baseless. B4 Apple became the first U.S. company to reach a market value of $900 billion. B3 U.S. stocks continued to set records. The Dow rose 6.13 points to 23563.36. B12 Fox’s revenue rose as higher cable fees helped offset weakness at local TV stations and its film studio. B2 Virginia 2016 president 2017 governor New Jersey 14 5 pts. 9 2017 Year Virginia New Jersey U.S. House U.S. Senate 1989 D D 9 1 1993 R R 52 8 1997 R R 5 unch. 2001 D D 8 1 2005 D D 31 6 2009 R R 63 6 2013 D R 13 Researchers reported a big advance in gene therapy, creating new skin for a boy with a severe disorder. A10 China detained three UCLA basketball players for alleged shoplifting. A10 The EU proposed extending its natural-gas regulation to offshore pipelines. A8 Middle Seat.......... A12 Opinion.............. A15-17 Sports....................... A14 Technology............... B4 U.S. News............. A2-7 Weather................... A14 World News A8-10,18 > Republican win 10 20 10 20 30 2017 D D Races too close to call 9 *Only includes contests with both a Democrat and Republican running in each year. Sources: Dave Leip's Atlas of U.S. Presidential Elections; Associated Press; Virginia Dept. of Elections; Vital Statistics on Congress THE WALL STREET JOURNAL. Business Contracts Kick Off China Visit BY EVA DOU AND JEREMY PAGE ANDREW HARNIK/ASSOCIATED PRESS Xi welcomed Trump with a series of business deals, even as the U.S. president pressured China to curb financial ties with North Korea. A1 A Mexican deportee who sued the Trump administration was arrested for illegally re-entering the U.S. A6 Democrat win 30 Circles indicate party control changed hands Republicans scrambled to prevent a potential Democratic wave in next year’s midterm elections after a political shellacking Tuesday fueled by opposition to Trump. A1 Outcomes of some of Tuesday’s votes heartened backers of gun curbs. A4 The U.S. administration tightened rules on travel to Cuba and financial transactions with the island. A6 40 2015 Gubernatorial results and net change in Congressional seats the following year World-Wide Video of the Texas church attack is said to show the gunman methodically executing his victims. A3 Behind Disney’s Fox play: the rise of Netflix............................. B4 Fox profit grows on cablenetwork fees.............................. B2 Margin of victory, in percentage points* 14 Gubernatorial races the year before midterm elections have foretold the last three times control of the U.S. House changed hands. Gerald F. Seib: Anti-Trump coalition takes shape............ A4 Efforts to flip statehouses get a lift........................................ A4 Results hearten backers of gun curbs..................................... A4 Dior’s CEO plans to step aside after 20 years running the LVMH fashion brand. B6 Israel, moving to counter Iran and its Lebanese ally Hezbollah, is aligning policies with Saudi Arabia. A8 chief, Makan Delrahim, has pledged that politics wouldn’t play a role in enforcement decisions. “The department is committed to carrying out its duties in accordance with the laws and the facts,” a spokesman said, declining to comment further on the investigation. The agency is laying the Please see DEAL page A6 And in Virginia legislative races, voters shifted left compared with 2015. Democrats matched or exceeded Hillary Clinton’s 2016 margin in states electing governors Tuesday. Republicans scrambled Wednesday to prevent a potential Democratic wave in next year’s midterm elections after a political shellacking Tuesday fueled by opposition to President Donald Trump. The results of elections from Virginia to Washington state produced Democratic victories up and down the ballot, prompting both parties to take fresh looks at their plans for House and Senate campaigns next year. For Republicans in swing districts, the failed campaign of GOP gubernatorial candidate Ed Gillespie in Virginia was a reminder of the complex landscape ahead of them. Mr. Gillespie tried to walk a line by embracing Mr. Trump’s agenda but not campaigning alongside the GOP president. He lost to Ralph Northam by Please see VOTE page A4 A former New York state pension fund executive accused of taking bribes from Wall Street salespeople pleaded guilty to fraud. B1 House lawmakers prepared changes to the GOP tax bill to fill a revenue hole of at least $74 billion. A3 Trump told Democratic senators that the Senate version of the tax bill will be more to their liking. A3 In a statement Wednesday, AT&T CEO Randall Stephenson said, “Throughout this process, I have never offered to sell CNN and have no intention of doing so.” Rather than a major divestment, AT&T is preparing to fight any potential legal challenge in court, arguing the opposition is politically motivated since there is no overlap between the two companies’ business lines, some of the people said. The Justice Department’s recently confirmed antitrust Republicans Take Stock After Election Losses Federal prosecutors are investigating Icahn’s former role advising Trump and the investor’s attempts to change an environmental rule. B1 s Copyright 2017 Dow Jones & Company. All Rights Reserved GOLD $1,281.60 À $7.90 U.S. Threatens to Derail AT&T Deal What’s News CONTENTS Business News B3,6-7 Crossword.............. A14 Heard on Street.. B13 Life & Arts....... A11-13 Management.......... B5 Markets............. B12-13 HHHH $4.00 WSJ.com Chinese President Xi Jinping and President Donald Trump at a ceremony in Beijing on Thursday. T-Mobile’s CEO Has a Side Gig: Hosting an Online Cooking Show i i i John Legere’s ‘Slow Cooker Sunday’ videos draw millions of viewers BY DREW FITZGERALD tive, Twitter troll and, on Sundays, celebrity chef. His T-Mobile US Inc. boss John weekly “Slow Cooker Sunday” Legere flew to Tokyo last videos on Facebook and Twitweekend to salvage a merger ter Inc.’s Periscope attract a with Sprint Corp. but failed. cult following among T-Mobile customers, employThen he hopped ees and some viewon one flight Suners who are there day morning to just for the recipes, Los Angeles and gathered from onanother to Seattle, landing just in line cookbooks and time to put on his employee suggescat apron and tions. Mr. Legere start cooking. usually gets more “It’s the longest than a million viewSunday of my life, ers a week. but I made it!” he “Slow Cooker John Legere said in a Facebook Sunday” is decidvideo, standing in edly low-fi. It’s usuhis kitchen with the ingredi- ally streamed from Mr. ents for Maine corn chowder. Legere’s apartment in Belle“Holy shit, it’s Sunday! It’s vue, Wash., or New York with been Sunday for a long time.” no special lighting or cameras Mr. Legere, 59 years old, while T-Mobile Executive Vice Please see LEGERE page A10 wears many hats: chief execu- Tencent Invests in Fledgling U.S. Firms BEIJING—Xi Jinping welcomed Donald Trump to China with a series of business deals and a private tour of the Forbidden City, seeking to impress the U.S. president even as he stepped up pressure on Beijing to curb financial ties with North Korea. The deals, valued at an estimated $9 billion, were designed to set a positive tone for Mr. Trump’s 1½-day visit. Hours before Mr. Trump landed, China reported an almost $27 billion trade surplus with the U.S. in October. On Wednesday afternoon, the presidents and their wives toured the former imperial palace off Beijing’s Tiananmen Square before a Peking opera performance and a dinner. Mr. Trump arrived in Beijing from South Korea, where he took direct aim at North Korean leader Kim Jong Un in a speech that both opened a path to negotiation and warned of the potential consequences of Pyongyang’s nuclear-weapons program. Mr. Trump also put Beijing on notice ahead of his talks with Mr. Xi, again calling on China to do more to pressure Pyongyang to change course. China is by far North Korea’s top trading partner, but is also the U.S.’s largest. “Why would China feel an obligation to help North Korea?” Mr. Trump said in his 35minute address to the South Please see TRUMP page A9 Nations seek new Pacific trade pact, minus the U.S....A9 World’s First “Self-Driving” Database BY STEVEN RUSSOLILLO AND WAYNE MA Tencent Holdings Ltd., the rapidly growing Chinese internet giant, is proving a welcome source of capital to America’s fledgling companies, with Snap Inc. the latest beneficiary of its deep pockets. Tencent, one of the world’s most valuable technology companies and best known in China for its WeChat messaging app, recently purchased a 12% stake in Snap in the open market, becoming one of its largest shareholders, Snap revealed Wednesday. Meanwhile, in Hong Kong, shares of a Tencent unit that operates an online library Please see STAKE page A10 Heard on the Street: Tencent finds surprise windfall........ B13 Oracle Autonomous Database No Human Labor – Half the Cost No Human Error – 100x More Reliable oracle.com/selfdrivingdb Human labor refers to tuning, patching, updating, and maintenance of database. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. THE WALL STREET JOURNAL. A2 | Thursday, November 9, 2017 U.S. NEWS CAPITAL ACCOUNT | By Greg Ip Trump Should Give Thanks for Solid Economy In the year since Donald Trump was elected president, the economy and markets have been on a roll. Stocks have set one record after another, unemployment has dropped sharply and the U.S. enjoyed its strongest six months of growth since 2014. Mr. Trump thinks he knows why: “The reason our stock market is so successful is because of me,” he declared this week. But Mr. Trump should be giving thanks, not taking credit. The entire global economy is picking up steam, and foreign stocks are outperforming American ones. This suggests the U.S.’s good fortune is due less to Mr. Trump’s presence than to a broader, global trend. Years of highly stimulative monetary policies by central banks have finally overcome various postcrisis headwinds. So Mr. Trump is a lucky man. But can he make it last? That will require translating what may be a short-lived upswing into permanently faster growth, and as the fight over U.S. tax cuts demonstrates, that is no easy task. The disappointing pace of global growth over the past decade reflects both structural drags such as aging pop- ulations and headwinds that followed the U.S. financial crisis in 2008 and Europe’s sovereign-debt crisis in 2012. Central bankers responded with bond buying and zero interest rates. That monetary medicine circulated slowly because banks were focused on working through bad loans and complying with new rules rather than lending. The process was over in the U.S. and still under way in Europe when another shock hit in 2015: an oil-price collapse and an abrupt slowing in China. B y last year, most of those shocks had receded. Oil recovered, especially after production cuts by OPEC and Russia shortly after Mr. Trump’s election. China reopened the credit taps. Ethan Harris of Bank of America Merrill Lynch notes that growth in China, the eurozone and Japan this year has exceeded both economists’ expectations and those countries’ long-term potential growth rates. The markets mirror this. Blue-chip shares are up 21% in the U.S. since Election Day last year, 22% in France, 28% in Germany, 33% in Japan and 26% in emerging markets. Of course, global growth and markets have always The U.S. Catches a Global Tailwind Growth and stock prices in other major economies have outperformed the U.S. since last fall. Major stock indexes Change since Nov. 8, 2016 Nikkei 225 MSCI EM S&P 500 FTSE 100 Dollar Performance since Jan. 1, 2015 CAC 40 30% Purchasing managers indexes (manufacturing and services) Eurozone Japan 105 60 20 100 55 10 95 50 0 90 U.S. China U.S. presidential election –10 85 2016 ’17 45 U.S. presidential election 2015 ’16 40 ’17 Sources: FactSet (stock indexes, dollar); Markit (PMI) been linked, through trade and investor attitudes. Sometimes that’s because the rest of the world is hitching a ride on a U.S. boom. This time, though, there’s a better case the reverse is happening. Japanese and European growth this year has been driven heavily by consumer spending and business investment, not exports. By contrast, U.S. exports have grown faster than imports, with that gap contributing on average a quarter of a percentage point to growth each quarter this year. The dollar rallied after the election and then slid as investors upgraded prospects for the rest of the world faster than for the U.S. and reallocated capital accordingly. The stock market initially soared after Mr. Trump’s election as investors justifiably anticipated looser regulation, especially of banks, and lower taxes. Yet with time, the “Trump trade” has faded. A basket of stocks tracked by Goldman Sachs of the highest-taxed companies out- U.S. presidential election 2015 ’16 ’17 THE WALL STREET JOURNAL. paced the overall market for the first month after the election and has since underperformed; it’s up 17% in the past year, less than the total market. Goldman says that’s because multinationals, which tend to have the lowest tax rates, also benefit most from the lower dollar. So why is the market up so much? The economy “was better than markets realized this time last year,” says Charles Himmelberg, Goldman’s co-chief markets economist. “It was a little bit of a happy coincidence that markets started to fully price the strength of that macro data when Trump got elected.” So Mr. Trump has been lucky. Still, successful presidents make their own luck, which is why Mr. Trump last week nominated Federal Reserve governor Jerome Powell to take over from Janet Yellen when her term as central bank chairwoman ends in February. Short of reappointing Ms. Yellen, it was the closest he could come to maintaining her strategy of raising interest rates gradually and cautiously. M r. Trump has promised to return the U.S. to sustained 3% growth through lighter regulation and lower taxes, and renegotiated trade pacts. His officials were proud to note the economy hit that annualized rate in the second and third quarters this year. But that growth isn’t sustainable. It required employers to add so many workers that the jobless rate dropped 0.4 percentage point. Keep that up and the labor market is going to run out of people. That would finally make the Fed nervous enough about inflationary pressure to pick up the pace of interestrate increases, withdrawing the medicine that got the current global upswing started. U.S. WATCH JOSE LUIS MAGANA/ASSOCIATED PRESS Soldier Killed in Afghanistan Is Mourned SOLEMN MOMENT: The remains of Sgt. First Class Stephen B. Cribben, of Simi Valley, Calif., arrived Wednesday at Dover Air Force Base in Delaware. The Pentagon said Sgt. Cribben died on Saturday from wounds sustained during an operation in Afghanistan. FEDERAL RESERVE WISCONSIN Yellen Is Undecided On Staying on Board Development Board Backs Foxconn Deal Federal Reserve Chairwoman Janet Yellen hasn’t decided whether to stay on the Fed board when her term as chairwoman ends next year, according to Treasury Secretary Steven Mnuchin. President Donald Trump last week said he was nominating Fed governor Jerome Powell to succeed Ms. Yellen at the end of her four-year term as Fed chief, which ends Feb. 3. Ms. Yellen is also serving a 14-year term on the Fed’s board of governors that doesn’t expire until January 2024. Mr. Mnuchin also said the administration is moving ahead with plans to fill several other Fed vacancies. A Fed spokeswoman declined to comment. Ms. Yellen has previously declined to weigh in on whether she would stay at the Fed beyond her tenure as chairwoman, though she acknowledged in December that she had the option to stay. —Kate Davidson Wisconsin’s efforts to bring a Foxconn Technology Group plant to the state surmounted a crucial hurdle Wednesday, overcoming recent concerns the deal may be in trouble. The board of the Wisconsin Economic Development Corporation approved a contract that would provide a $3 billion incentive package to the Taiwanese firm if it invests $10 billion to create a 20-million square foot campus in Racine County that could ultimately employ up to 13,000 workers. Wisconsin Republican Gov. Scott Walker has argued that the deal would transform the state’s economy and is worth the hefty tax breaks. But some of his Democratic opponents in the state legislature have questioned if the price tag is too high. An independent state fiscal analysis found that taxpayers wouldn’t recoup their investment until the 2042-43 fiscal year. —Shayndi Raice Democratic Wins Cloud ACA Repeal BY STEPHANIE ARMOUR AND KRISTINA PETERSON BALL Watch is thrilled to announce its partnership with Ducks Unlimited, world leader in wetlands and waterfowl conservation. To commemorate the year DU was established, we have produced a limited quantity of 1937 Limited Edition Engineer Master II Sportsman watches. RESERVE YOURS TODAY! US Retail Price $1,999. If you are a current Ducks Unlimited Member or join Ducks Unlimited for $35 the price is $1,299. all 727-896-4278 to order. http://www.ballwatch.com/campaign/DU/ Democratic wins in Tuesday’s elections make it less likely that Republicans, as part of their tax package, will seek to repeal the Affordable Care Act’s requirement that most people have health coverage, according to congressional aides. Voters in Maine this week decisively backed a referendum to expand Medicaid under the ACA, and exit polls showed health care was a central issue for Virginians who elected Democrat Ralph Northam as their state’s governor. Democrats say those results are a rebuke to the ongoing Republican goal of repealing the ACA after repeatedly failing to undo the law earlier this year. Some Republican leaders want to push harder to overturn the law in hopes of delivering on a long-held promise to GOP voters, while others say it makes more sense to pause in that effort. Republicans had been discussing for weeks whether to erase the ACA’s individual mandate, which they see as the least popular element of the law often called Obamacare, as part of a tax overhaul they are now assembling. But that prospect dimmed Wednesday, as House GOP aides said the election results highlighted the prospect that centrist Republicans would balk if the tax package included such a measure. Inclusion of the mandate repeal “would make it more difficult to pass a tax relief bill,” Sen. Susan Collins (R., Maine) said in a statement Wednesday. Democrats sought to press their advantage, arguing that Republicans would regret pushing ahead with ACA repeal efforts given the Virginia outcome. “They’re going to then suddenly try to jam in health care...[when] the number one issue of those supporting our candidate was health care?” said Sen. Mark Warner (D., Va.). “Bring it on!” GOP leaders haven’t wanted to bog down the tax bill with controversial healthcare provisions, but still could end up including the repeal if it generates revenue needed to pay for tax cuts CORRECTIONS AMPLIFICATIONS The founders of Outcome Health say that the company didn’t move $225 million in capital out of a subsidiary, contradicting claims in an investor lawsuit that Rishi Shah, cofounder and CEO, took steps to move funds. In some editions Wednesday, a Business & Finance article about a lawsuit filed by Outcome investors contained language that implied the founders had moved the funds out of the company. The article also incorrectly referred to Outcome co-founder Shradha Agarwal as Mr. Agarwal instead of Ms. Agarwal. Texas gunman Devin Patrick Kelley was convicted in a general court-martial on two counts of domestic assault on his spouse and her child in 2012. Page One articles on Tuesday and in some editions Wednesday about Sunday’s Texas church shootings as well as a U.S. News article in some editions Wednesday about Kelley’s 2012 escape from a New Mexico mental-health facility incorrectly said the conviction happened in 2013. A late-September Republican tax proposal called for nearly doubling the basic standard deduction to $12,000 for individuals and $24,000 for married couples. A Page One article on Sept. 28 about the proposal incorrectly said that the deductions would be doubled. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. elsewhere. House Speaker Paul Ryan (R., Wis.) said Republicans remained committed to fulfilling President Donald Trump’s agenda. “We already made that choice—we’re with Trump,” Mr. Ryan said on a Fox News radio show. “That’s a choice we made at the beginning of the year. We merged our agendas. We ran on a joint agenda with Donald Trump.” —Michelle Hackman contributed to this article. THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. 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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. * * * * * Thursday, November 9, 2017 | A3 U.S. NEWS Evidence supports eyewitness accounts of massacre in Texas; Pence attends vigil BY TAWNELL D. HOBBS AND DEL QUENTIN WILBER SUTHERLAND SPRINGS, Texas—Video from inside the Baptist church where a gunman massacred 26 people on Sunday shows him methodically executing his victims, including children, according to a law-enforcement official. The video, which is being reviewed by investigators, supports earlier eyewitness accounts that the 26-year-old gunman paced the aisles shooting young and old congregants at close range. A law-enforcement official on Wednesday described the video as brutal to watch. The content of the video was reported earlier by the New York Times. First Baptist Church, where the attack took place, routinely records videos of its services and posts them on YouTube. Investigators also on Wednesday released the official list of the dead. Last on the list is Carlin Brite “Billy Bob” Holcombe, the unborn baby of Crystal Holcombe. Vice President Mike Pence visited south Texas on Wednesday, where he attended a prayer service and met with families of victims and survivors. “I offer the condolences of the American people,” Mr. Pence said at the vigil at a school football stadium in Floresville. The vice president, joined by his wife, Karen, told the audience that President Donald Trump asked them to come to Texas “to tell all of you, we are with you.” Texas Gov. Greg Abbott attended the prayer service Wednesday night with the vice president. Mr. Pence also visited wounded victims at Brooke Army Medical Center. During his visit, Mr. Pence met with law-enforcement officials, who have collected a substantial amount of evidence, including hundreds of shell casings from the church. A law-enforcement official said Tuesday that they could finish processing the crime scene as early as the following night. Presidents typically visit communities affected by mass shootings and natural disasters, or send their vice presi- RICK WILKING/REUTERS Video Shows Shooter Acted Methodically South Texas pastors praying at the site of the First Baptist Church shooting in Sutherland Springs, Texas, on Wednesday. People are dealing with the shock of what happened in their small town—and at a church considered a vital part of the community. dent when they can’t make the trip. Mr. Trump is in Asia for a tour through the region. He tweeted earlier this week: “May God be w/ the people of Sutherland Springs, Texas,” adding that he was monitoring the situation from Japan. People in Sutherland Springs are still dealing with the shock of what happened in the small town—and at a church considered a vital part of the community. “It’s a nice, quiet town, where everybody knows everybody,” said Margaret Vidal, whose aunt was shot in the church. “Nothing happens here.” —Zusha Elinson contributed to this article. House Tax Bill Faces Revenue Gap BY RICHARD RUBIN AND SIOBHAN HUGHES Republicans plan to push the bill toward a vote by the full House as soon as next week. cut, but they have slim margins in both chambers and are trying to squeeze their plans inside budgetary constraints. The $74 billion gap in the House bill stems from an amendment Republicans made late Monday that would scale back an excise tax on multina- tional corporations proposed in the first version of the GOP bill. The change removed 95% of that key revenue-raising provision, leaving the bill outside its budget target, according to an estimate provided Tuesday by the Joint Committee on Taxation, the nonpartisan scorekeeper for tax legislation in Congress. The bill’s author, Rep. Kevin Brady (R., Texas), said it was “not unusual” for amendments to push a bill outside its revenue target. He said Republicans are looking at options. Those include repealing the individual mandate to purchase health insurance. “We continue to weigh the scores from the Joint Committee on Taxation and drive toward that final amendment,” Mr. Brady told reporters late Wednesday, offering no detail. Rep. Vern Buchanan (R., Fla.) said Republicans were J. SCOTT APPLEWHITE/ASSOCIATED PRESS WASHINGTON—House lawmakers on Wednesday prepared changes to the GOP tax bill to fill a revenue hole of at least $74 billion, as Senate Republicans were set to release their own plan with significant differences that the GOP will eventually have to resolve to complete its tax overhaul. House Republicans plan to make their changes Thursday and push the bill toward a vote by the full House as soon as next week. The Senate bill, expected to be released Thursday, will likely differ from the House version by preserving the medical-expense deduction, fully repealing individual deductions for state and local income and property taxes, and not repealing the estate tax. “There are some areas where we have a different approach,” said Sen. John Thune (R., S.D.) The simultaneous negotiations in the House and Senate left the GOP tax bills in flux. Republicans remain confident they can deliver a sizable tax The House Ways and Means Committee is hoping to finish work on the GOP tax bill Thursday. talking about needed adjustments. “They’ve got dials, and they’re having to turn dials,” he said. Republicans also haven’t said how they intend to address concerns from life-insurance companies and passthrough businesses that pay taxes through owners’ individual tax returns. “We’re always looking to improve on the small-business side of things,” said Mr. Brady, chairman of the House Ways and Means Committee. “I’m optimistic we’ll continue to provide more relief.” The committee plans to finish work on the bill Thursday. Rep. Richard Neal (D., Mass.) and other Democrats have pressed Mr. Brady to give them time to review any major changes in the works. The problem, Mr. Neal said, is that Republicans’ tax-cut goals outpace their $1.5 trillion budgetary limit, forcing them to scramble when problems arise. “The dilemma has been clear. You can’t put a size 12 foot in a size 7 shoe,” he said. “It appears to me as though substantial change is coming in their proposals.” Democrats have been hammering the GOP bill, arguing that it benefits high-income households and removes valuable deductions for items such as medical expenses and student loan interest. The shape of a companion Senate tax plan was in flux Wednesday, and Republicans on the tax-writing Finance Committee held meetings late into the day. Some munis’ tax-free status is at risk...................................... B11 Tax change unlikely to burden buyout companies................. B11 Trump Touts Senate Version of Proposal BY ELI STOKOLS WASHINGTON—President Donald Trump moved to assuage centrist Democratic senators’ concerns about the House Republican tax overhaul by telling them the Senate version will be more to their liking, people familiar with the matter said. “You’re going to like it a whole lot more,” said Mr. Trump of the Senate version, according to people who attended a Tuesday gathering of Democratic senators that the GOP president addressed by phone. The comments risk complicating Republican efforts to present a united front on both the Senate and House versions of the tax bill to keep it on track. Publicly, Mr. Trump has praised the House plan, but Tuesday’s comments could fuel doubts among lawmakers about how wedded he is to that version. Many GOP lawmakers in competitive districts already have concerns about supporting the bill and could balk at being asked to cast a politically risky vote on a plan that may never become law. “I don’t think that’s the president’s bill,” said Sen. Joe Manchin (D., W.Va.) about the House tax bill, speaking after the meeting. Asked if the Sen- ate bill would be the plan fully backed by the administration, Mr. Manchin said, “we haven’t seen it yet” to know. Senate Republicans plan to release their own tax legislation Thursday and have said it would differ sharply from the House’s. During the meeting Tuesday, National Economic Council Director Gary Cohn echoed Mr. Trump, these people said, leaving attendees with the impression that the White House isn’t as invested in the legislation being considered this week by the House Ways and Means Committee as it may be in the Senate tax package. “Don’t get too hung up on the House bill,” Mr. Cohn said, according to people in the room. Asked about Mr. Cohn’s remark, a White House official said that he was simply urging senators who are concerned about the House bill to focus on their own legislation. “It was like: ‘Your bill doesn’t exist yet. Don’t get hung up on what you don’t like about their bill and sink the entire process,’ ” the official said. The official said the president’s comment was “meant in the same way” as Mr. Cohn’s comment and shouldn’t be seen as a sign he doesn’t support the House version of the bill. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Thursday, November 9, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ** THE WALL STREET JOURNAL. U.S. NEWS Anti-Trump Coalition Takes Shape in Virginia CAPITAL JOURNAL By Gerald F. Seib In their rousing election victories in Virginia on Tuesday, Democrats learned two important things: They found out what an anti-Trump coalition looks like, and they discovered it can be a winning one. That coalition combines upper-scale white voters, millennials, minorities, suburban women and single women. Exit polling indicates that those groups not only went heavily for Democratic victor Ralph Northam in the governor’s race, but performed better for him than they did for Hillary Clinton in the 2016 presidential election. That tide produced a stunning nine-point victory for Mr. Northam—almost twice as large as the margin by which Mrs. Clinton carried the state—and it’s hard to interpret it as anything other than a reaction to President Donald Trump. He is the biggest actor on every political stage right now; almost everything happens in the Trump context. In fact, the best news for Democrats may have been the signs that their wave of energy carried beyond the top race and down the ballot to elections for the state House of Delegates. Many thought Mr. Northam could win at the top of the ballot (though most concluded only barely), but nobody thought Democrats would be on the verge of turning the state legislature blue. Still, there also are multiple, less-obvious cautionary notes for Democrats in Virginia, starting with the tendency to over-interpret such an off-off-year election. Beyond that, this winning coalition brought decisive margins in blue parts of the state—the Washington suburbs, college towns and upper-scale coastal areas—but it wasn’t enough to break into the swath of red territory in central and southern Virginia. That part of the state continues to look and act a lot like Trump country in the interior of America. Mrs. Clinton learned what happens in a presidential race when you run up victories, even big ones, in areas Democrats are strong but don’t crack through in areas where the party is weaker. Moreover, Democratic success in Virginia probably will do more to paper over than resolve the Democrats’ split between establishment groups and the party’s progressive wing. Liberals had backed former Rep. Tom Perriello in the primary, were under-enthused by Mr. Northam, and thought he should have stressed economic issues more. They were particularly unhappy when he hedged his position supporting sanctuary cities that provide a haven for undocu- mented aliens. In short, the residual problem for Democrats is that progressives wanted a different kind of candidate and a different kind of campaign. The good news for them, of course, is that all signs suggest that liberal activists largely swallowed those misgivings and went to work, without Trump.” That is, that Mr. Gillespie could embrace Trump-like themes—the dangers from violent immigrants, the virtues of Confederate monuments—without embracing Mr. Trump himself personally. It didn’t work as hoped, obviously. Why? For an answer, look at how two particularly energized Democratic groups performed Tuesday in Virginia. Single women, inspired by Hillary Clinton and the chance to elect the nation’s first female president, were a big part of the Clinton coalition in 2016. But, one year after Mr. Trump became president, they turned out to be an even more-potent part of the Ralph Northam coalition. Exit polling by Edison Media Research for the Washington Post and other news organizations shows that unmarried women went for the Democrat by a stunning 77% to 22% margin. That is to say, they went Democratic by more than 3-to-1. The Democratic vote among single women this time was 16 per- Single women and millennials fueled Ralph Northam’s decisive victory. and to the polls, anyway. We’ll see which side of the coin—tensions at the beginning or unity at the end— proves to be the most important dynamic elsewhere. The underlying proposition of the campaign of losing Republican Ed Gillespie, meanwhile, was that he could win by having, in the words of populist political crusader Stephen Bannon, “Trumpism Election Buoys Efforts to Flip Statehouses WASHINGTON—The surprising ability of Democrats to pick up Republican seats in the Virginia statehouse Tuesday gave new life to a long-held party goal: Clinching the power to redraw state and U.S. legislative districts to be more favorable for Democratic candidates. The state legislature and Virginia’s newly elected Democratic governor, Ralph Northam, will redraw the boundaries for those districts after the 2020 Census. Democrats have been hoping to gain the power to control a process that Republicans used to favor their own party after the 2010 Census. The outcome of Tuesday’s elections has bolstered a party that has spent the last year trying to regain its footing since losing the White House to President Donald Trump. Progressive activists are now targeting legislatures in states such as Florida, Pennsylvania and Minnesota, where they see Republican state legislative seats as vulnerable to the antiTrump sentiment that helped energize voters in Virginia. Others in the party warn that a national wave will come only by focusing on policies to boost jobs and the economy, rather than by expecting to make electoral gains from Mr. Trump’s weak job approval rating, which is under 40% in many surveys. “What happened in Virginia last night was historic, but it VOTE Continued from Page One 9 percentage points, the largest victory margin for a Virginia Democratic gubernatorial candidate since 1985. Mr. Northam notched even wider margins among women and suburban voters who will be central to key House battleground districts. “It was a referendum on the president for many of them,” said Rep. Ryan Costello, a Republican who heard that message even in local races in his swing district in suburban Philadelphia. “You had a lot more people, a lot more people vote Democrat than they ever had before.” Bryan Lanza, who worked for Mr. Trump’s presidential campaign, said in an interview that the vote should be a wakeup call for Republicans who have not delivered on policy. “Last night showed the voters are frustrated with the status quo and inaction,” Mr. Lanza said. “Republicans were punished at the polls, and it’s painful.” House Republicans have long said that passing a tax overhaul was necessary for them to retain their House majority, but after Tuesday’s loss in Virginia some said that even that might not be sufficient. “This really is a sort of door-die moment, in my view, in terms of holding the majority,” said Rep. Tom Cole (R., Okla.), referring to the tax legislation. “It doesn’t guarantee you suc- STEVE HELBER/ASSOCIATED PRESS BY JOSHUA JAMERSON Virginia Democrats were energized by Ralph Northam’s gubernatorial win and results in other races. wouldn’t have been enough to swing Pennsylvania or Michigan,” said Joseph Bandera-Duplantier, a co-founder of Flippable, a progressive group dedicated to state and local races. “It’s more crucial now than ever that we continue to do that work to roll back aggressive gerrymandering.” In Virginia, Republicans hold a 66-34 advantage in the state House of Delegates. But the 2016 presidential election gave Democrats hope of making gains. In 17 districts represented by Republican lawmakers, Hillary Clinton won a cess, but it’s a precondition for success.” Democrats were surprised by the magnitude of their electoral wins, which overshadowed for now intraparty disagreements over how to recover from their bitter loss to Mr. Trump last year. Their wins came in both marquee races and more-obscure corners of the U.S. political map, which underscored for them the importance of fielding candidates even in long-shot districts to catch whatever political wave may form next year, strategists said. In Virginia, Democrats not only swept the governor’s mansion and two other statewide offices, they are tantalizingly close to winning control of the House of Delegates. Democrats flipped at least 15 seats; if they pick up one more of the yet-tobe-settled races, Republicans would lose their majority. The last time Democrats ran the chamber was 1999. In New Jersey, a Democratic victory in the gubernatorial race means the party will control both chambers of the state Legislature and the governor’s mansion, beginning in January. The election of one new Democratic state senator in Washington state flipped party control of the chamber from Republican to Democratic. In Georgia, Democrats won three state legislative special elections, including two in districts that were considered safely GOP. That cost Republicans their supermajority in the state Senate. Political analysts and opera- majority of the vote last year. Democrats need to flip the same number—17 seats—to win a majority. In Tuesday’s elections, they took 14 seats from Republicans, according to the Associated Press, with five races too close to call as of Wednesday afternoon. As few as a dozen votes separated the candidates in some races, leaving open the door for recounts that could drag on into early December. But even if Democrats fail to capture a majority, winning the Virginia gubernatorial race Tuesday strengthened their hand in redistricting after the 2020 census. With the state Senate likely remaining under Republican control, a victory for Republican Ed Gillespie in the governor’s race could have given the GOP a virtual monopoly over drawing new district lines. “The races that we won last night were redrawn to benefit Republican incumbents,” Virginia House Democratic Leader David Toscano said. “Now, with us taking so many seats, [Republicans] have to wonder whether they can control the legislature, and if we might do Deeper Divide How Virginia's vote shifted by party from 2013 gubernatorial election to gubernatorial election Tuesday, in margin of victory by percentage point. More Democratic More Republican +10 +5 Same +5 Arlington Alexandria +10 Charlottesville Roanoke Blacksburg Richmond Lynchburg Newport News Norfolk Va. Beach Shift in Virginia vote by party from 2016 presidential election to Tuesday's gubernatorial election Arlington Alexandria Charlottesville Roanoke Blacksburg Source: Virginia Department of Elections tives from both parties caution against over reading the implications of one election for another especially when the next one is a year away. Mr. Trump sought on Tuesday to pre-empt suggestions that the Virginia loss was a reflection on him, tweeting that Mr. Gillespie “did not embrace me or what I stand for.” The president’s associates continued the damage control Wednesday, with one calling reporters in for a briefing to say the result was “not about the president.” But the impact of the president’s unpopularity was clear Lynchburg Richmond Newport News Norfolk Va. Beach THE WALL STREET JOURNAL. in the bitterly fought Virginia race. According to exit polls, 57% of Virginia voters said they disapproved of the job Mr. Trump was doing. Of those voters, 87% voted for Mr. Northam. Asked what message they were sending with their vote, 34% said they were voting to express disapproval of the president—twice as many as said they were voting to express support for him. “The level of intensity, the level of antipathy to Trump is so palpable,” said Rep. Gerry Connolly (D., Va.). “The desire of our base and independents to them what they did to us.” Asked if Democrats would draw up maps that overwhelmingly favor their party, Mr. Toscano replied: “I hope not.” He said he favored forming a nonpartisan committee to handle redistricting, an idea Mr. Northam supported as a candidate. John Whitbeck, the chairman of the Republican Party of Virginia, declined a request for comment. Mr. Bandera-Duplantier said the Democratic enthusiasm shown in Virginia meant the party now had hopes of finding legislative majorities in Pennsylvania, Michigan, Iowa, Wisconsin, Florida and North Carolina, which had seemed out of reach. “Those are kind of in play now,” he said. Meanwhile, slim GOP majorities in states such as Maine and Colorado mean those states seem even more in reach, he said. Robby Mook, the campaign manager in 2013 for Democratic Virginia Gov. Terry McAuliffe and for Mrs. Clinton in the 2016 presidential race, said that Democrats should be wary of trying to replicate the results in Virginia. He credited Mr. McAuliffe with helping to create the conditions for a socalled wave election by building a case for Democratic leadership in the state. “There was the rationale to say, ‘If you elect a Democratic legislature, you could continue to do even more,’ ” Mr. Mook said. troubled by Trump is just redhot to do something.” There is historical precedent for the Virginia and New Jersey gubernatorial races serving as a bellwether for the first midterm election of a new presidency. In 1994, 2006 and 2010—the last three times control of the House changed parties—the midterm result was foretold by the party that won the Virginia and New Jersey gubernatorial races the year before. Democrats need to flip 24 seats to take control of the House. Key targets are the 23 Republican-held districts where Democratic presidential nominee Hillary Clinton beat Mr. Trump in 2016. But the Democratic Congressional Campaign Committee has said it aims to put 80 districts in play and has managed to recruit candidates in 75 of them so far. “That strategy of building a huge battlefield with great candidates, even in really tough districts, is going to be crucial,” said Tyler Law, the committee’s spokesman. Jesse Hunt, a spokesman for the National Republican Congressional Committee, said that GOP leaders will do their best to arm incumbents for battle in the face of political winds they already knew were blowing hard against them. “I don’t think we needed last night’s results to tell us next year was going to be extremely competitive,” Mr. Hunt said. —Peter Nicholas and Joshua Jamerson contributed to this article. centage points higher than the vote they produced for Mrs. Clinton in 2016. There is little except the arrival of a President Trump to explain the difference. In short, single women look an awful lot like a constituency that is newly energized. Second, consider the performance of millennials, a core Democratic constituency, on Tuesday. NextGen America, a liberal activist group, chose nine precincts across Virginia where millennials make up a majority and monitored them to determine enthusiasm among young voters. In each precinct—most around college campuses— residents aged 18 to 40 made up at least 60% of voters. In all of them, voter turnout was up over the totals seen in the governor’s election four years ago. In the area around Virginia Commonwealth University in Richmond, turnout more than doubled. Energy matters in politics. And on Tuesday in Virginia, at least, Democrats seemed to capture it. Results Hearten Backers of Gun Curbs BY NATALIE ANDREWS WASHINGTON—Chris Hurst, the boyfriend of a reporter who was shot dead on live television in 2015, beat a three-term incumbent Virginia delegate backed by the National Rifle Association in a rural area. First-time candidate Elizabeth Guzman defeated Scott Lingamfelter, an eight-term Virginia delegate and chairman of the state assembly committee that shapes gun policy. In Washington state, Manka Dhingra, a state Senate candidate who campaigned on enacting gun-safety measures, won her race, helping Democrats take control of the chamber. Those outcomes in this week’s elections represented victories for Everytown for Gun Safety, a gun-control advocacy group that invested $2.2 million in Virginia races, matching the NRA’s spending, said John Feinblatt, president of Everytown for Gun Safety. The election was six weeks after a mass shooting in Las Vegas and days after another, in Sutherland Springs, Texas. A spokeswoman for the NRA didn’t respond to a request for comment. Gun policy has long been considered a key issue driving Republicans to the polls, and defeating NRA-backed candidates in rural areas has proven to be a high hurdle for supporters of new firearms restrictions. “The data is now telling us that there is just as much intensity on the anti-gun-violence side” as there is for those who vote for pro-gunrights Republicans, said Sen. Chris Murphy (D., Conn.). Mr. Murphy has been an advocate of tougher gun-control measures since the mass shooting at Sandy Hook Elementary School in his home state in 2012. Republican lawmakers have blocked measures that would mandate universal background checks ahead of firearm purchases and limit the availability of high-powered firearms. A bipartisan measure that would ban “bump stocks,” which enable semiautomatic rifles to mimic fully automatic weapons, stalled in the House after the NRA and GOP leaders advocated instead for potential new safeguards instead of legislation. Republicans in the Senate on Tuesday, responding to Sunday’s mass shooting at a Texas church, pushed for legislation to provide incentives for federal agencies, including the military, to submit criminal-conviction records to the Federal Bureau of Investigation and require the military to report domestic-violence misdemeanors to the national background-check system. The Air Force has acknowledged it failed to submit to the FBI the conviction record of the man who killed 26 people in the church, a move that would likely have disqualified him from possessing a weapon. 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. Thursday, November 9, 2017 | A5 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. A6 | Thursday, November 9, 2017 U.S. NEWS Aren’t Mexican Deportee Arrested ‘Dreamers’ Targets, Nielsen Says BY ALICIA A. CALDWELL BY LAURA MECKLER JUAN GASTELUM/NATIONAL IMMIGRATION LAW CENTER/ASSOCIATED PRESS LOS ANGELES—A Mexican man who sued the Trump administration this year, alleging he had been unlawfully deported, was arrested this week and charged with a felony for illegally re-entering the U.S. Juan Manuel Montes Bojorquez, 23 years old, was arrested near Calexico, Calif., along the Mexican border on Monday, according to federal court records. Mr. Montes, who dropped his lawsuit in October, will likely be deported, and he could face as long as two years in prison if found to have illegally re-entered the U.S. after initially being deported earlier this year. He could also be barred from coming back to the U.S. for years. The U.S. Border Patrol said Mr. Montes was found about a mile north of the U.S.-Mexico border in a scrub-covered stretch of desert. The arresting agent wrote that Mr. Montes told officials he was planning to go to Sacramento. Mr. Montes sued the Trump administration in April, alleging that Border Patrol agents in Calexico arrested and deported him in February even though he was protected from deportation under the Obamaera Deferred Action for Childhood Arrivals program. U.S. Homeland Security officials said Mr. Montes returned to Mexico voluntarily, which caused him to lose his DACA privileges and led to the Juan Manuel Montes Bojorquez, 23, was arrested and charged with illegally re-entering the U.S. February arrest and subsequent deportation. Mr. Montes was thought to be the first DACA recipient deported by the Trump administration. President Donald Trump has made cracking down on illegal immigration a priority of his administration. In September the Trump administration announced plans to end the DACA program, which has protected from deportation hundreds of thousands of young immigrants brought to the U.S. as children. Mr. Montes’s lawsuit initially sought public records about the February incident and later was amended to include a challenge to his deportation. His lawyers asked that he be allowed to return to the U.S. while the case was pending, and a federal judge in San Diego seemed amenable to the request. But the case was dropped in October at Mr. Montes’s request. The National Immigration Law Center, which helped represent Mr. Montes during his civil case, said the “litigation has been a taxing experience” for Mr. Montes and he decided to end the case and remain in Mexico. The National Immigration Law Center said its lawyers aren’t involved in the criminal case and couldn’t comment. According to court records, Mr. Montes is being detained in the Imperial County jail, southeast of Los Angeles. Federal court records don’t list an attorney for Mr. Montes. Arrests at the Mexican border have plummeted since Mr. Trump took office. As of the end of August, about 287,000 people were arrested at the Mexican border during the 2017 budget year, which ended in September. During the 2016 budget year, agents made about 408,000 arrests. on the course of action she favors for the Dreamers. About 690,000 of them are now protected by the Deferred Action for Childhood Arrivals program, or DACA. Mr. Trump has ordered an end to the program, deeming it unconstitutional and challenging Congress to enact legislation in its place. The Dreamers’ protections begin expiring in March. Sen. Kamala Harris (D., Calif.) asked Ms. Nielsen if she agrees that legislation should be passed by the end of the year to replace the administrative protections. Ms. Nielsen didn’t reply directly but said, more generally, “We owe it to them to find a permanent solution.” She said the Dreamers wouldn’t be targets for deportation and that their personal information would only be used for enforcement in “extraordinarily limited circumstances” that involve public safety threats. A spokesman for Ms. Harris said she was somewhat reassured by Ms. Nielsen’s remarks on the Dreamers. If confirmed, Ms. Nielsen, 45 years old, would be the sixth secretary of Homeland Security and would enter the job with by far the lowest profile. Members of the committee didn’t say how they would vote, but it didn’t appear that her nomination, which needs 51 yes votes in the Senate, was in any jeopardy. A committee vote is scheduled for Thursday. WASHINGTON—President Donald Trump’s nominee to lead the Department of Homeland Security offered a degree of assurance to Senate Democrats critical of the administration’s tough immigration enforcement agenda during a confirmation hearing Wednesday. Kirstjen Nielsen told members of the Senate Homeland Security and Governmental Affairs Committee she would prioritize the arrest of undocumented immigrants who have committed crimes, and said contact information about socalled Dreamers—young people brought to the U.S. illegally as children—whose protections from deportation are set to expire won’t be shared routinely with immigration enforcement officers. Ms. Nielsen also said she doesn’t favor the construction of a wall along the entire southern border, echoing recent statements by administration officials and by Mr. Trump himself, whose call for a border-length barrier had been a staple of his presidential campaign. “There is no need for a wall from sea to shining sea,” she said, responding to questions from two Democrats on the panel. “Technology, as you know, plays a key part and we can’t forget it. There’s a lot we can do with technology to secure our border.” Ms. Nielsen wasn’t specific Trump Administration Further Unwinds Cuba Opening BY FELICIA SCHWARTZ AND LOUISE RADNOFSKY DEAL Continued from Page One groundwork for a possible lawsuit to stop the deal while at the same time negotiating with company executives, The Wall Street Journal reported last week. A top AT&T executive had warned for the first time earlier Wednesday that the company was unsure about the timing of the takeover, which was valued at $85 billion when it was struck last year. “The timing of the closing of the deal is now uncertain,” John Stephens, AT&T’s chief financial officer, said Wednesday at a Wells Fargo conference in New York. Just a few weeks ago, he told investors the company still expected the transaction to close later this year. Shares of Time Warner fell 6% to $88.50 on Wednesday, while AT&T shares rose 1% to $33.44. AT&T shares have fallen sharply in recent weeks and Time Warner shares are trading at a wide discount to the implied offer price, as investors worry about the deal. posted a list of entities connected with the Cuban military, and Americans would be forbidden from engaging in some financial transactions in the future with them. Individual travelers still will more appealing to an acquirer. Mr. Bewkes has argued that uniting content and distribution will help meet viewers’ demands for more flexibility in the TV packages they buy and where they view content, with more video being watched on mobile devices. As the media industry evolves, even giant companies are looking to adapt. Rival Walt Disney Co. recently held talks to buy studios and other entertainment assets from 21st Century Fox Inc., seeking to gain more leverage in negotiations with distributors or to have more content for its own direct to consumer services. Wall Street Journal parent company News Corp and 21st Century Fox share common ownership. AT&T argues the deal would help consumers by making film and TV more affordable. AT&T points to its current moves to lower prices for video content, such as offering discounts for DirecTV Now, an online pay-TV service. “Vertical mergers like this one have always been approved because they benefit consumers without removing any competitors from the mar- ket,” AT&T said last week. “We see no reason in the law or the facts why this transaction should be an exception.” Several competitors including the Lions Gate Entertainment Corp.’s premium programming service Starz, and satellite broadcaster Dish Network Corp. have raised concerns about the deal, people familiar with the matter said. If the Justice Department were to sue to block the deal, that wouldn’t be the end of the matter unless the companies abandoned their plans. The department would have to present its case to a federal judge and prove that the deal would likely harm competition. Such court battles remain rare, as the government and merging parties often find ways to settle their differences. There were, however, several major merger trials during the Obama era of antitrust enforcement, including two recent cases in which the Justice Department won rulings against a pair of major proposed deals in the health insurance industry. —Joe Flint and Thomas Gryta contributed to this article. YAMIL LAGE/AGENCE FRANCE-PRESSE/GETTY IMAGES WASHINGTON—The Trump administration continued to pare back rules intended to normalize ties with Cuba, announcing regulations tightening travel and financial transactions by Americans. President Donald Trump had said in June he would reverse steps taken by predecessor Barack Obama to relax a decades-old U.S. embargo against the Castro regime, as Mr. Trump had pledged to do on the campaign trail. The regulatory changes unveiled by the Treasury, State and Commerce departments are to take effect Thursday. While they will have an impact on the ability of individuals to travel to Cuba and curtail some business interactions, much of Mr. Obama’s program will remain in place. “It wasn’t a full reversal, but it’s not great news for American travelers and, as a resulting byproduct, this hurts the Cuban private sector,” said James Williams, president of pro-normalization group Engage Cuba. He added that the shift will make it harder for American businesses to operate in Cuba. “It doesn’t fully close the door, but it’s a step backwards.” Many Americans who want to visit Cuba will have to do so by traveling through tour operators subject to U.S. jurisdic- be allowed to go to Cuba under a category that allows for travel in support of the Cuban people, but officials said travelers in that category will be subject to stricter regulation. The tightening comes amid heightened tensions between Washington and Havana, as officials investigate health problems suffered by at least 24 American officials and family members at the U.S. Embassy in Havana, with symptoms including dizziness, hearing loss, and mild traumatic brain injury. U.S. officials have blamed the symptoms on an undefined attack, possibly one using a sonic device. Officials said Wednesday that the rule changes weren’t connected to the continuing investigation into the illnesses in Havana. Mr. Trump announced the policy shift in June, before his administration disclosed the illnesses in August. “We have strengthened our Cuba policies to channel economic activity away from the Cuban military and to encourage the government to move toward greater political and economic freedom for the Cuban people,” Treasury Secretary Steven Mnuchin said. The U.S.-Cuban opening under Mr. Obama allowed several American companies to begin making inroads into travel, telecommunications and other sectors of the Cuban economy, including several hotel deals. The U.S. is steering American activity away from firms tied to the Cuban military. Above, a street in Havana on Wednesday. tion and be accompanied by a representative of a sponsoring organization that is also subject to U.S. jurisdiction. Most individual travel will no longer be allowed, except in cases where a flight or accomThe review reached a new level in recent weeks with the involvement of Mr. Delrahim, who received Senate confirmation in late September. Mr. Trump nominated Mr. Delrahim in April, but Senate delays in his confirmation left him on the sidelines while others in the Justice Department scrutinized the transaction. Mr. Delrahim is a critic of so-called behavioral remedies to address concerns about a merger, preferring that companies be required to sell off assets instead, a view he signaled last month in a public appearance at New York University. Antitrust observers took notice of the remarks and have wondered whether his views would make it harder for AT&T to offer concessions that the companies and the Justice Department would each find acceptable. During his presidential campaign, Mr. Trump had attacked the proposed deal. “AT&T is buying Time Warner, and thus CNN, a deal we will not approve in my administration because it’s too much concentration of power in the hands of too few,” he said. Mr. Trump has since avoided talking pub- modation had been booked before June, because the Trump administration eliminated a category of travel created under the Obama administration that essentially allowed for tourist travel. Similarly, commercial and business transactions arranged before the regulations are published on Thursday will be allowed to continue, administration officials said. But the administration Growing Rift Time Warner shares are starting to trade further below AT&T's offer price, as investors grow more skittish about the deal closing. 0% –5 Difference between Time Warner’s share price and AT&T’s offer price –10 Wednesday Time Warner shares closed 13.3% below offer price –15 –20 2016 ’17 Source: FactSet licly about the transaction but frequently complained on Twitter about the way CNN has reported on him. CNN stood by its reporting. AT&T executives previously pledged not to sell CNN or interfere with its editorial operations. The Dallas-based telecom giant is looking for the deal to give it a bigger foray into advertising and new growth markets, as it strug- THE WALL STREET JOURNAL. gles with increased competition in the mature wireless business and shrinking pay-TV market, especially in the DirecTV satellite service it bought in 2015. For Time Warner, the deal with AT&T is the culmination of years of moves by Chief Executive Jeff Bewkes, who spun off underperforming assets, leaving a media and entertainment-focused firm that was 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. Thursday, November 9, 2017 | A7 NY U.S. NEWS Many College Students Leave Puerto Rico Young people finding spots at mainland universities add to a growing exodus Hundreds of Puerto Rican students have resettled on college campuses across the mainland U.S. in recent weeks—and many more are considering leaving the island territory in the spring—grateful for the opportunity to resume their studies in the wake of Hurricane Maria. But some worry the students won’t return to an island that is already suffering an exodus of young people and their talents. The University of Puerto Rico, like the commonwealth government that provides roughly two-thirds of its annual operating budget, was in financial crisis when Hurricane Maria hit seven weeks ago. Last spring, student-led budget protests shut down some campuses for months, and eight campuses were placed on probation by the university’s accreditor in part because of financial concerns. The system is digesting an 18.8% cut to appropriations for the current school year. Enrollment was down by about 4% to 59,450 this fall. Then the storm came. The last of the system’s 11 campuses reopened on Monday, despite damaged buildings and spotty electricity. Early tallies show that about 95% of students returned to class. But hundreds have withdrawn from the largest campuses and concern about the loss of talent is growing as more schools join the likes of Brown University, Tulane University and the State University of New York in bringing Puerto Rican students to their campuses free of charge or at in-state tuition rates. More than 860 students displaced by the storm in Puerto Rico are now attending one of JOSE JIMENEZ TIRADO/GETTY IMAGES BY MELISSA KORN University of Puerto Rico students helped with the storm cleanup on a campus in San Juan last month. 28 public colleges in Florida, according to the Florida Department of Education, though schools haven’t finished reviewing the prior enrollment records of those students. “If I was a young person, I can totally get wanting to go study abroad or do an exchange program,” said Catherine Mazak, an English professor at the University of Puerto Rico Mayagüez. “On the other hand, so many people have left.” Brown now has about 30 University of Puerto Rico students on campus. Central Connecticut State University has 21, paying in-state tuition and earning nine credits in a condensed, eight-week semester. More than a dozen law students are at Florida State University and Hurricane Leaves A Lasting Mark Though the University of Puerto Rico is holding classes, some buildings’ roofs were damaged and research equipment ruined. Generators power some facilities. The library collection at Mayagüez is closed because of water damage to books. Interim President Darrel Hillman Barrera, a professor at the dental school, said the damage totaled $119 million, about $100 Touro Law Center in New York. More students are expected to find spots at schools on the mainland next semester. million of which will be covered by insurance. He said he is in talks with Federal Emergency Management Agency to cover the rest. Dr. Hillman said he is asking the island’s central government and its fiscal oversight board to be more flexible on a mandate that the system cut $500 million from its budget over the next five years, given the circumstances. The university has until February to revise its fiscal plan for the oversight board, in light of the storm. “It’s going to be a very differ- ent University of Puerto Rico” after the storm, said Deepak Lamba-Nieves, research director at the Center for a New Economy, a nonpartisan think tank in San Juan. Mr. Lamba-Nieves, who teaches a graduate course on local economic development at the University of Puerto Rico Río Piedras, photocopied readings for students without computer access, but wondered if that was enough. “Can I expect my students to do their weekly reading with lanterns and candle light?” he asked. Tulane has received about 500 applications so far for an offer to host Puerto Rican students in the spring, said Presi- dent Mike Fitts, and expects to enroll at least 50 once it reviews applicants for academic qualifications. Cornell University said it would take up to 58 students. And the University of Florida is offering free online courses in the spring and summer to students who attended University of Puerto Rico or a handful of private colleges on Puerto Rico and the U.S. Virgin Islands. It says it can accommodate 1,000 students and as of Friday had received more than 200 applications. Between 17,250 and 32,721 adults ages 18 to 24 are expected to leave Puerto Rico in the year after Maria, according to the Center for Puerto Rican Studies at City University of New York’s Hunter College, compared with the 9,726 annual average from the prior three years. The island has been in economic distress for years, with the local government struggling to make payments on a staggering debt load and residents looking for better financial futures elsewhere. “What Maria has done is aggravate a trend that was already in effect,” said Edwin Meléndez, the center’s director. “Families are in need of employment, and the economy has pretty much collapsed.” The mainland universities say they intend to offer temporary help, not poach talent. “We are strongly discouraging any of these students from transferring,” Tulane’s Mr. Fitts said. Brown Provost Richard Locke agreed, but said his school can’t bar students from applying to transfer. Wilfredo García González, 30 years old, is in the final year of his undergraduate computer-science degree at Polytechnic University of Puerto Rico in San Juan, and said if he wasn’t so close to finishing he would leave now. “It is very difficult to study since almost the whole country is without electric service and without connection to wireless internet,” he said. “My expectation is to be able to finish my degree and then move to the United States with my wife to find a good job and a better quality of life.” THAN YOU EVER THOUGHT POSSIBLE Our members charter to major destinations worldwide and enjoy never-before-seen low pricing, guaranteed availability, zero upfront commitment, and year-round service reliability. NEW YORK SOUTH FLORIDA FROM $1,990 NEW YORK CHICAGO FROM $3,980 NEW YORK LOS ANGELES FROM $7,950 AND MANY OTHER POPULAR ROUTES CALL US TODAY +1 (866) 980-2758 Set it free at Drexel University. 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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 A8 | Thursday, November 9, 2017 * *** THE WALL STREET JOURNAL. WORLD NEWS Israel, Saudi Arabia Share Common Foes Policies align as they both strive to isolate Iran and its Lebanese ally Hezbollah TEL AVIV—Israel is moving to counter Iran and its Lebanese ally Hezbollah with assertive diplomacy, aligning its policies with onetime foe Saudi Arabia and signaling a shift in the region’s power politics as the war in neighboring Syria winds down. Israel’s foreign ministry told its envoys abroad in a cable on Sunday to stress to host governments that the resignation of Lebanese Prime Minister Saad Hariri shows that Iran and Hezbollah, the dominant political and military force in Lebanon, control the country and threaten Middle East stability. “Hariri’s resignation proves that the international argument that Hezbollah’s inclusion in the government is a source for stability is basically wrong,” the cable said, according to a report by Israel’s Channel 10 broadcaster that Israeli officials confirmed. “The events in Lebanon…require increased pressure on Iran and Hezbollah on a range of issues.” Mr. Hariri, who is also the political leader of Lebanon’s Sunni Muslim population, resigned while in Sunni-led Saudi Arabia on Saturday. He criticized Iran and Hezbollah, which are both Shiite powers, for fomenting violence. The cable illustrates Israel’s desire to make common cause, unofficially, with Saudi Arabia in its efforts to isolate their mutual enemies even though the two countries don’t have diplomatic relations. Israel has warned for months about the role that Iran and Hezbollah are playing in DALATI AND NOHRA/AGENCE FRANCE-PRESSE/GETTY IMAGES BY RORY JONES Israel says the resignation of Lebanon’s Prime Minister Saad Hariri, right, shows Iran’s threat to stability. Riyadh Freezes Former Crown Prince’s Accounts RIYADH—Saudi authorities have frozen the bank accounts of the kingdom’s former crown prince, Mohammed bin Nayef, the latest royal targeted in a corruption crackdown carried out by a leadership seeking to con- solidate power. Dozens of royals, current and former officials, and prominent businessmen were detained over the weekend when the government launched a corruption investigation. Those detained face allegations that include money laundering, bribery and procurement fraud. As of Wednesday, around 1,800 bank accounts had been frozen in connection with the probe, according to people familiar with the matter. Among them are accounts linked to the former crown prince and to some of his relatives, the people said. The prince was until recently one of the most influential members of the ruling family. King Salman removed him from the position of crown prince in June and replaced him with his own son, Prince Mohammed bin Salman, who has risen to a position of unrivaled power since his father assumed the throne nearly three years ago. Representatives for the government didn’t respond to requests for comment. The government is hoping to confiscate assets worth as much as $800 billion through the investigation, according to people familiar with the matter. —Summer Said and Margherita Stancati Syria, where they have backed Syrian President Bashar alAssad’s forces in that country’s war and sought to fill a vacuum left by the crumbling of Islamic State’s self-declared caliphate. Prime Minister Benjamin Netanyahu has said he won’t allow Israel’s enemies to es- tablish a permanent military presence on Israel’s northern border and is ready to take action to avert that. Hezbollah’s militia is already stronger than the Lebanese army. Now, Israel and Saudi Arabia both fear Hezbollah is gaining influence over the army and has built an arsenal of weapons many times greater than when Israeli forces last fought the group, in 2006. The U.S., Israel and Saudi Arabia consider Hezbollah a terrorist organization. “The Hariri resignation represents in a very authentic way what’s happening in the Middle East,” Yoav Galant, construction minister and member of Israel’s security cabinet, said in an interview. “Iran is the danger.” Saudi Arabia this week said Hezbollah’s dominance over the Lebanese government effectively puts the country in a state of war with the kingdom. Riyadh has said it now plans to isolate Lebanon, as it has sought to do with its Gulf neighbor, Qatar. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June cut diplomatic ties with Qatar and have since refused to trade with the country, alleging it supports Islamist and terror groups. Qatar denies the allegations. A Saudi-led coalition is also fighting in neighboring Yemen against Houthi rebels that Riyadh sees as proxies of Iran. Saudi Arabia said it had intercepted a missile fired by the rebels on Saturday east of the main Riyadh airport, and said the missile attack could be considered an Iranian act of war. Iran has long denied supplying weapons to the Houthis, but President Hassan Rouhani on Wednesday defended the rebels’ missile attack. Saudi Arabia was carrying out bombings in Yemen regularly, he said, so it should expect a response. The White House on Wednesday backed Saudi Arabia’s criticism of Iran. Despite tension with Iran and Hezbollah, Israeli officials have said that neither side currently wants a war. Israel has benefited from more than a decade of relative calm on its northern border while Iran and Hezbollah lost thousands of fighters in the Syrian war. Both sides also understand the cost of a conflict. An Israeli invasion of Lebanon in 1982 during the civil war there helped spawn Hezbollah, which then fought against Israeli forces until they withdrew in 2000. Israel estimates Hezbollah has more than 100,000 rockets and missiles in Lebanon that could heavily damage Israeli infrastructure in a conflict. —Asa Fitch in Dubai contributed to this article. Political Upheaval Poses Risk to Lebanon’s Finances Sluggish Growth Lebanon's GDP, change from previous year 3% Estimates 2 1 0 2012 ’13 ’14 ’15 ’16 Source: International Monetary Fund THE WALL STREET JOURNAL. By Nikhil Lohade in Dubai and Nazih Osseiran in Beirut of capital that threatens to upend the precarious finances of a country struggling with slow growth and high debt. Lebanon built its economy on tourism and trade but those businesses have suffered from decades of political instability. The country in recent years has pitched itself as a technology ’17 and financial hub in its search for new engines of growth. But the sudden resignation over the weekend of Prime Minister Saad Hariri has thrown a wrench into the country’s politics and triggered worries about it becoming another front in the proxy war between Sunni Riyadh and Shiite Tehran. In his resignation, Saudi-backed Mr. Hariri blamed Iran and its Lebanese ally Hezbollah for destabilizing the Middle East. “People are afraid so there is a demand on the dollar, financial assets are being driven down,” said a senior executive in one of Lebanon’s top investment banks. “With all of this talk of sanctions and wars, there is an environment of uncertainty and investors don’t like uncertainty.” In Beirut’s residential neighborhood of Ras al Nabehl, shopkeeper Wissam Abo-Abdo shrugged off the economic fallout of a deepening crisis. “They say this all the time, every time something happens they say the lira [Lebanese pound] will collapse but that never happened,” Mr. AboAbdo said. “The foreigners always worry and run away, but we’ve been through this before and will go through this again.” The economy has weathered a number of significant shocks over the years, including the 1975-1990 civil war that tore the country apart. But a confrontation between the two Middle East powers via proxies on its soil will only result in greater political in- stability and further disrupt its economy, analysts say. Lebanon’s unity government—a volatile mix of Sunni and Shia Muslims as well as Christians—was formed about a year ago after a nearly threeyear political stalemate that had weighed on its economy. Mr. Hariri was named prime minister after a deal that saw Hezbollah ally Michel Aoun, a Christian, elected as president. His resignation has yet to be accepted by the president. The International Monetary Fund has noted Lebanon’s political progress in recent months, but said there was an urgent need to boost growth, in part by taking steps to improve the business climate and tackling high public debt. Lebanon relies heavily on tourism revenue, portfolio investments and deposits, the bulk of which originate in the neighboring Gulf countries, mostly from the large number of Lebanese living abroad, analysts say. These inflows have helped boost the country’s foreign exchange coffers, allowing it to service its debt obligations and maintain its currency peg to the U.S. dollar. If Saudi Arabia moves to isolate Lebanon, those investments and deposits will dry up, investors worry, forcing the government to dip into its reserves to keep the Lebanese economy running and, eventually, drop its currency peg. EU Floats Rules for Offshore Pipelines BY EMRE PEKER BRUSSELS—The European Union proposed to extend its natural-gas regulations to offshore pipelines, marking the latest effort to derail an energy link between Russia and Germany that is fueling tensions within the bloc. The European Commission, the bloc’s executive, unveiled an amendment Wednesday to energy rules after a monthslong struggle to intervene in the controversial Nord Stream 2 pipeline project. The Baltic Sea link would enable Russia’s state-owned PAO Gazprom to double its naturalgas transit via Germany to Europe. That would strengthen Moscow’s hand to bypass transit routes through Ukraine without losing its dominant gas market share in the EU, which stood at 42% last year. While the effort to regulate the pipeline may enjoy support in the European Parliament, it is likely to face resistance from some EU governments such as Germany. The EU’s executive wants to enact the amendment by the end of 2018, before Nord Stream 2 is operational. Some EU members, led by Poland, along with the U.S., vehemently oppose the project, arguing it poses security risks and undermines the West’s efforts to support Kiev in its conflict with Russia. In August, the U.S. adopted a Russia sanctions law that empowers the White CARSTEN KOALL/GETTY IMAGES Investors worried about an escalating crisis between Riyadh and Beirut are selling Lebanese debt and equity, a flight Pipes are loaded for stacking at the Nord Stream 2 facility on Ruegen Island in Sassnitz, Germany. House to impose measures against Nord Stream 2. “Such an important pipeline cannot be built in a legal void or cannot be built just according to Russian law,” European Commission Vice President Maros Sefcovic said. The EU proposal patches regulatory shortcomings by clarifying the framework applicable to all gas pipelines to and from third parties, he added. EU officials said external pipelines typically abide by the bloc’s core principles, mostly through international agreements. Nord Stream 2 AG is a wholly owned subsidiary of Gazprom that is also backed by European energy firms. The Switzerland-based firm says it is operating in full compliance with EU laws and doesn’t need an additional pact to realize the project. “This legislative proposal seems to be a far-reaching change to the scope of application of the EU’s energy laws,” said Sebastian Sass, Nord Stream 2’s representative to the EU. The first Nord Stream pipeline, which has the capacity to transit 55 billion cubic meters of gas annually, started operations without any international agreements in November 2011. Gazprom’s second project attracted more than $5 billion in long-term financing from Engie SA, OMV AG, Royal Dutch Shell PLC, Uniper SE and Wintershall Holding GmbH. Nord Stream 2 also has enjoyed strong support from the German government, with Chancellor Angela Merkel repeatedly saying the pipeline is a commercial project. Amid political backlash over the pipeline, the EU’s executive initially sought legal arguments against Nord Stream 2. Faced with competing opinions, the commission asked the bloc’s governments for a mandate to negotiate terms for the RussiaGermany pipeline. With the prospects of the request to draw up a legal framework through talks with Moscow looking unlikely, EU officials turned to a regulatory update. 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. Thursday, November 9, 2017 | A9 * * WORLD NEWS BY BEN OTTO DANANG, Vietnam—Almost 10 months after President Donald Trump pulled the U.S. out of a sweeping Pacific trade pact, the 11 countries left behind are pushing forward for an agreement without Washington on the sidelines of the Pacific Rim’s biggest annual economic summit. Led by Japan, trade negotiators are meeting in this seaside town ahead of the AsiaPacific Economic Cooperation summit, seeking a revised version of the Trans-Pacific Partnership by suspending clauses that the U.S. had backed for years in negotiations under former President Barack Obama. Paulina Nazal, Chile’s vice minister of trade and TPP chief, said on Wednesday that the remaining countries hoped to have a deal enter into force next year. A Japanese foreign ministry spokesman said on Tuesday that the group hoped to reach an “agreement in principle” this week. A new deal would bring together Japan, Canada, Australia, Mexico and a host of smaller nations with a combined GDP of more than $10 trillion. It is a far cry from what the pact would have been with the U.S., but negotiators and trade experts say the deal would still wield strategic significance and that by putting some clauses on hold, they are leaving the door open for the U.S. to join later. “We would like the U.S. to join in the near future,” Ms. Nazal said. “The new administration has to know a little bit more about the agreement, has to make their own evaluation [and see] why 11 economies are so engaged.” Continued from Page One Korean National Assembly. A senior White House official told reporters en route to Beijing that Mr. Trump would raise those concerns directly with Mr. Xi. There were still financial links between the countries that shouldn’t exist under United Nations sanctions, the official said. “We’re going to work closely with the Chinese to identify that activity and end it,” the official said. A Chinese Foreign Ministry official said Beijing is faithfully abiding by U.N. sanctions and will put an end to any violations it finds. The White House official also said Mr. Trump would raise “severe imbalances in the U.S.-China economic relationship,” including a “grossly unlevel playing field.” Among the deals announced by U.S. Commerce Secretary Wilbur Ross in Beijing were agreements by General Electric Co., DowDuPont Inc. and Smithfield Foods Inc. with Chinese counterparts. Mr. Ross said more contracts between U.S. and Chinese companies would be unveiled on Thursday. “Today’s signings are good examples of how we can productively build up our bilateral trade,” Mr. Ross said. The skew toward export contracts in the deals reflects the Trump administration’s difficult progress on more fundamental China trade issues, such as barriers to entry for U.S. companies to key Chinese sectors. “Achieving fair and reciprocal treatment for the compa- JONATHAN ERNST/REUTERS Nations TRUMP Seek New Pacific Trade Pact President Xi Jinping, right, greeted the president and first lady at Beijing’s Forbidden City on Wednesday. nies is a shared objective,” Mr. Ross said. Mr. Xi, who last month was granted political powers comparable to those once held by Chairman Mao, is unlikely to make major concessions on trade without securing greater access to the U.S. market, some analysts and diplomats said. China appears focused on trying to flatter Mr. Trump with hospitality and deals that could play well with his political base while doing little to reduce trade tensions. Economists said the deals signed in Beijing won’t noticeably reduce the trade gap between the two countries. While China’s trade surplus with the U.S. narrowed somewhat in October, to $26.62 billion from $28.08 billion in September, according to official figures, it was the fifth straight monthly surplus over $25 billion. Louis Kuijs, an economist at ’00 ’05 ’10 ’15 $0 –100 –200 Growing Gap –300 U.S. trade balance with China, in billions Source: U.S. Census Bureau Oxford Economics, estimates the two countries’ trade gap will widen to nearly $370 billion this year, from the $347 billion difference in 2016, according to U.S. figures. Some members of the U.S. THE WALL STREET JOURNAL. trade delegation said they fear Chinese retaliation if the Trump administration, which is investigating China trade, follows through with threats to punish Beijing over its trade practices. Paul Burke, North Asia re- gional director of the U.S. Soybean Export Council, said his group was warned by China’s agriculture and commerce ministries in September. “In both those meetings, the Chinese government officials said it would be really unfortunate if there was some kind of trade disruption,” he said. “Because soybeans, being so important, would probably be a commodity that would be targeted.” Among the deals signed on Wednesday was a letter of intent to ship what executives with the council said are “billions of dollars” of Americangrown soybeans to China. A separate deal on soybeans was expected to be signed on Thursday by Archer Daniels Midland Co. and China’s stateowned Cofco Corp. Executives in other sectors also said they hoped the U.S. administration wouldn’t escalate the trade tensions. “We would prefer to see the rhetoric be less strong,” said Tad Walker, chief executive of Partner Reinsurance, on the sidelines of the Beijing event. His company has been waiting since 2015 on a license to operate in China. Many of the deals were already in the pipeline. The U.S. Embassy in Beijing in August emailed American companies to request submission of deals for the trade mission, according to a copy of the email reviewed by The Wall Street Journal. Deals involving Qualcomm Inc., Boeing Co., Goldman Sachs Group Inc., Ford Motor Co., General Motors Co. and other U.S. companies are scheduled to be announced on Thursday, according to an itinerary reviewed by the Journal. Philippines’ President to Ask China About Sea Access BY JAKE MAXWELL WATTS Philippine President Rodrigo Duterte said he would ask China about navigation in disputed waters of the South China Sea during a trade summit this week, hours after his defense minister said the country had scrapped a construction project in the area following a complaint from Beijing. Since Mr. Duterte took office last year, the Philippines has played down South China Sea territorial disputes while building closer diplomatic and economic ties with China. But Mr. Duterte also has faced pressure at home to raise the issue in public forums. Mr. Duterte heads the Association of Southeast Asian Nations this year. He left Wednesday for a summit in Vietnam, which will be followed by a gathering in Manila, where the region’s 10 countries and China are expected to announce progress on negotiations for a longawaited code of conduct for maritime behavior. Phililppine Defense Secretary Delfin Lorenzana described a face-off with Beijing a couple of months earlier over the Philippines’ placement of structures on a disputed island feature in the contested Spratly Islands. “We tried to put some structures on one of the sandbars near our island, and the Chinese reacted. And so the president came to know about this and he said, ‘Let’s pull out,’ ” Mr. Lorenzana said The New WSJ iPhone App Follow the markets in a whole new way. From individual companies and industry sectors to asset values and percentage change, experience the live U.S. stock market in augmented reality. Available now in the AR/VR section of the WSJ iPhone app. DOWNLOAD NOW © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6157 Wednesday at a business conference in Manila. Several Southeast Asian countries, including the Philippines and Vietnam, have competing claims with Beijing in the South China Sea. China claims almost the entire resource-rich strategic waterway as its own territory and has built and militarized several islands to assert its presence. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Thursday, November 9, 2017 THE WALL STREET JOURNAL. * **** WORLD NEWS UCLA Athletes Are Held in China New Skin for Boy Marks Advance In Gene Therapy Three UCLA basketball players, including high-profile freshman LiAngelo Ball, were detained in China for alleged shoplifting, a person familiar with the matter said. The Bruins, ranked No. 21, are in China to begin their college basketball season Saturday in Shanghai against Georgia Tech. Mr. Ball is the younger brother of Lonzo Ball, who played for UCLA last year and whose father, LaVar Ball, has attracted attention for his attempts to market his sons. The other two players detained were Cody Riley and Jalen Hill, this person said. “We are aware of a situation involving UCLA studentathletes in Hangzhou, China,” UCLA said. “The university is cooperating fully with local authorities on this matter, and we have no further comment at this time.” Speaking from a hotel room that the three are sharing in Hangzhou, Mr. Riley said, “We are not taking questions right now.” Details on the alleged shoplifting were unclear, though ESPN reported that the incident occurred at a Louis Vuitton store. A spokeswoman for the luxury brand said by email: “There is an investigation going on at the moment and we are not able to further comment.” Hangzhou police have been involved in an investigation that began on Monday and included the questioning of three players at a station house, but they, along with a team staff member, are in their hotel in the city as evidence is being gathered, a person in the BY AMY DOCKSER MARCUS In a significant advance in organ regeneration and gene therapy, researchers have created a new, healthy skin that covers almost the entire body of a 7-year-old boy with a lifethreatening genetic disorder associated with skin blistering. Twenty-one months after the procedure, the new skin remains functional and doesn’t blister or require ointment or medication, according to the team of scientists and doctors from Austria, Germany and Italy who described the case in a paper in the journal Nature. The child in the study has junctional epidermolysis bullosa (JEB), part of a family of rare, often lethal, skin-blistering diseases. Epidermolysis bullosa affects around one in every 20,000 births in the U.S.; JEB is a severe form of the disease, often leading to death in early childhood. Epidermolysis bullosa is caused by mutations in the genes that produce proteins essential to holding the skin’s layers together. In patients with the condition, the slightest contact can cause blisters, excruciating pain and open wounds that don’t heal. There is no cure. In the Nature study, scientists took a piece of tissue about the size of a postage stamp from an unaffected part of the boy’s skin and grew cells in the lab. They then used a deactivated retrovirus to insert a correct copy of the defective gene into the ASSOCIATED PRESS (3) By Andrew Beaton in New York, James T. Areddy in Shanghai and Liza Lin in Beijing From left, Jalen Hill, Cody Riley and LiAngelo Ball were detained in Hangzhou for alleged shoplifting. news department of the local Public Security Bureau said. She said the three aren’t formally under arrest. “We didn’t limit their personal freedom.” Three Georgia Tech players were questioned by local authorities at their hotel, a Georgia Tech spokesman said, and it was determined they “were not involved in the activities being investigated.” Those players have resumed their ac- Among the three basketball players is a younger brother of the Lakers’ Lonzo Ball. tivities with the team. Speaking in Beijing, a Chinese Foreign Ministry spokeswoman, without confirming details on the matter, said “China will handle this case in accordance with the law and ensure the legitimate rights and interests of the people involved.” In response to questions, a U.S. State Department official said by email: “We are aware of reports of three U.S. citi- zens arrested in China. We stand ready to provide consular assistance for U.S. citizens. Due to privacy considerations we have no further comments.” A representative of the Hyatt Regency Hangzhou hotel said the UCLA team had stayed there and three players were detained by local police. She said she had no further information. UCLA and Georgia Tech were guests of Hangzhoubased Alibaba Group Holding Ltd. and its billionaire cofounder, who recently bought into the Brooklyn Nets professional basketball team. The fact that the three players appear to have stayed behind in Hangzhou, even as the rest of the group went on to Shanghai, raised the possibility that Chinese authorities have limited their ability to travel. Though if they were allowed to remain at their hotel, that indicates they aren’t formally under arrest. Chinese authorities often say little publicly about an investigation—especially when foreigners are involved—while it is proceeding. Temporary detention without charges is common. LaVar Ball didn’t respond to messages left at his Shanghai hotel room. UCLA and Georgia Tech are in China as part of an agreement with Alibaba, which since 2015 has sponsored an annual regular-season Pacific-12 Conference basketball game in Shanghai. Alibaba, which has been expanding into entertainment and other content, is set to hold its biggest shopping day of the year on Saturday, an event that is widely known as Singles’ Day. An event at Alibaba’s headquarters in Hangzhou this week that included the basketball players coincided with the company’s marketing blitz for Singles’ Day. During that event in Hangzhou, Alibaba co-founder Joe Tsai, the new Brooklyn Nets investor, shot hoops with some of the visiting collegiate stars. Alibaba referred questions on the incident in Hangzhou to UCLA. The two teams, who made a visit to Shanghai Disneyland on Wednesday as part of the tour, will still go ahead with their game on Saturday, a Pac-12 spokesman said. —Kersten Zhang in Beijing contributed to this article. patient’s skin cells and grew sheets of new skin. In three separate operations at the end of 2015 and the beginning of 2016, they transplanted the genetically modified skin onto the boy’s limbs, flanks and back. Over time, the skin regenerated to cover approximately 80% of the boy’s epidermis. Other patients with the condition have been treated with genetically modified skin, but this case is unusual. “We had never treated that amount of skin,” says Michele De Luca of the University of Modena and Reggio Emilia in Modena, Italy, and senior author of the Nature paper. Paul Knoepfler, a professor in the department of cell biology and human anatomy in the School of Medicine at the University of California, Davis, said doctors will need to closely monitor the patient for years, particularly because the virus used to deliver the correct gene to the cell could cause other health problems. Gene therapy is viewed as a promising area for treating epidermolysis bullosa. Last year, scientists at Stanford University School of Medicine reported they grafted genetically modified skin on open wounds in four adult patients with a different form of the disease. The grafts helped improve wound healing. Abeona Therapeutics Inc. is collaborating with Stanford to open a new trial next year that will include patients ages 13 and older. FROM PAGE ONE Continued from Page One soared in an initial public offering Wednesday that gave the company, China Literature Ltd., a market value of around $12 billion. And Thursday, Sogou, a search-engine company in which Tencent owns a 44% stake, is expected to start trading in New York, in a deal that could value it at as much as $5 billion, or about 70 times its past earnings. “Companies like Tencent are seen as unstoppable,” said Joshua Crabb, head of Asian equities at Old Mutual Global Investors. Tencent, an early pre-IPO backer of Snap, acquired roughly 146 million of its shares in the public market, Snap said in a filing Wednesday. The purchase adds to an investment Tencent made in Snap in 2013 during a fundraising round before the company’s initial public offering of stock. Tencent’s current total position in Snap wasn’t clear. Snap’s announcement of the investment came on the heels of its report of disappointing financial results for the third straight quarter, sending its shares plunging. The revelation of Tencent’s investment did little to cushion investors’ disappointment with the Los Angeles social-media company. Snap’s LEGERE Continued from Page One President David Carey or one of the CEO’s daughters holds a smartphone to film the show. “I know he’s using it as a marketing tool, but it’s also clear he likes to cook,” says Susan Freeberg, 54, a Bellevue homemaker who got hooked on Mr. Legere’s videos in 2015 after her son interned at TMobile. “It’s a fun and helpful, quick show for me to watch over my Sunday coffee.” Mr. Legere says his culinary roots reach back to his upbringing in Fitchburg, Mass., where his father once typed up a list of recipes that became known as “Pa’s Cook Book.” The CEO says his skills have gotten much sharper since he first streamed his dinner preparations in 2015. “It was a total embarrassment. The camera was sideways, but it got a lot of interest,” he says. “So I decided to do it consistently.” Mr. Legere recently told CNBC that his cooking show “is worth billions.” He has more than 4.6 million followers on Twitter, another point of pride, and Mr. Legere streams some of his fitness workouts, like his Peloton cycling class, also on Sundays. In the past five years, Mr. Legere has turned T-Mobile from an also-ran into the third-largest wireless provider by subscribers, behind Verizon and AT&T Inc. He is a telecom veteran, though he portrays himself as a long-haired, foulmouthed renegade, wearing custom-made T-Mobile shirts, pants, socks and sneakers. Mr. Legere joined T-Mobile after two decades at AT&T and one decade leading scandalplagued fiber-optic network operator Global Crossing Ltd. out of bankruptcy court. He rarely misses a Sunday in the kitchen, even though leading T-Mobile, which had nearly $30 billion in revenue in the first nine months of 2017, takes Mr. Legere to meetings on three continents. an investor and advisor to Tesla.” Tencent has invested in more than 40 tech startups in the U.S. since 2011, joining fundraising rounds valued at $3.5 billion, the Journal reported, excluding investments in public companies. Recently, it led a $10 million investment round in Academia.edu, a San Francisco-based platform for scientists and academics to publish and review papers online, and it disclosed a $3 million investment in Innovega Inc., of Bellevue, Wash., which is building an augmented reality device into a contact lens. People close to Tencent have said its investment strategy is driven by a desire to stay current on the latest ideas and products out of the U.S. tech sector. Snap’s relationship with Tencent stretches back to 2013. Tencent first invested in Snap when it was still a small startup operating out of a house on the boardwalk of Venice Beach. When the Snapchat app was first shown to Tencent’s executive team, Tencent’s founder, Pony Ma, was bewildered as to why it was a hit, according to people who attended the meeting. Mr. Ma joked that he didn’t understand young people, the people said. Nonetheless, Tencent later purchased a small stake in Snapchat. Snap Chief Executive Evan Spiegel said at a conference in 2013 that he looked to Tencent as a “role model.” Tencent executives began discussing raising the company’s stake in Snap in September, after Snap’s shares touched a series of lows in August, the person familiar with the matter said. —Saumya Vaishampayan and Georgia Wells contributed to this article. helps companies ward off shareholder lawsuits. Mr. Legere’s videos usually last about 15 minutes. Comments pour in while he is cooking. Some critics suggest their own recipes or poke holes in the ones Mr. Legere’s staff has chosen for him. “It was traditionally a technique that wasn’t considered culinary,” says Andrew Schloss, author of “The Art of the Slow Cooker,” a cookbook often doled out as a prize to Mr. Legere’s fans. Mr. Schloss says his cookbook includes only about 70 recipes to avoid foods “ruined by overcooking.” While meeting with lawmakers last year, Mr. Legere mentioned his cooking hobby to Sen. Steve Daines (R., Mont.), who had a mule deer trophy decorating his office. Mr. Daines later shipped some deer sausage to the CEO. “We gave him a recipe,” Mr. Daines says. He hasn’t seen Mr. Legere make something out of it on “Slow Cooker Sunday,” “but my understanding is it’s kind of in the queue,” the lawmaker says. Jeremy Dilley’s internship at T-Mobile hit a high note when the company accepted his submission for a special Friday edition of Mr. Legere’s cooking show. The North Carolinian joined Mr. Legere in front of a crowd of T-Mobile interns and helped him cook Mr. Dilley’s own version of a Southern-style brisket. The ingredients were measured and ready when he got there. “They had nicer quality stuff than what I’m used to using,” says Mr. Dilley. “The brisket was a nice, big size.” They somehow forgot to eat it. An assistant texted Mr. Dilley the next day “and said it’s still down there. John said you could have it.” Mr. Dilley went back to get the brisket and shared it with some fellow T-Mobile interns. “It turned out great,” he says. Mr. Legere says future plans for “Slow Cooker Sunday” could even include a cookbook. “I’ve got more than enough recipes to outdo Tom Brady for sure,” he says. Upward Mobility Shares of Tencent, one of China’s internet giants, have more than doubled this year as revenue and net income have swelled. Revenue and net income, in billions Share price $25 billion 400 Hong Kong dollars Revenue 20 Net income 300 15 200 10 100 5 0 0 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 1 HK dollar = $0.1281 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Market capitalization $726 billion $545.9 Alphabet Amazon $521.8 $475.1 $469.8 $83.7 Facebook Alibaba Sources: S&P Capital IQ; FactSet (shares, market cap) nies in the world, with a market capitalization of around $475 billion. If it were listed in the U.S., Tencent would be the sixth-largest company by market value, according to FactSet. But while its WeChat business remains largely limited to China, Tencent over the past few years has lifted its interna- tional profile with several big deals, including acquisitions of the game developer Epic Games Inc. and minority stakes in electric-vehicle maker Tesla Inc. and videogame company Activision Blizzard Inc. In a tweet March 28, Tesla Chief Executive Elon Musk said he was “glad to have Tencent as T-Mobile’s John Legere rarely misses a Sunday in the kitchen. He kept cooking through months of fruitless merger talks with Sprint. Anthony Doria, 30, a special-education teacher who says he used to work at T-Mobile, has watched “every single” video by his old boss and “made probably every one of his meals.” Mr. Doria’s favorite: jalapeño corn chowder. A few of the CEO’s segues to T-Mobile go over the heads of slow-cooking buffs. “T-Mobile cleaned up, like I’m gonna have to here, in the auction for low-band spectrum,” he said while gesturing to his counter and wearing gorilla slippers. His constant online presence prompted T-Mobile lawyers to tell investors long ago that Mr. Legere uses his Facebook, Twitter and Periscope accounts “as means for personal communications and observations” and “for complying with its disclosure obligations under Regulation FD.” Such boilerplate language Tencent Baidu THE WALL STREET JOURNAL. T-MOBILE STAKE shares on Wednesday lost 15% after several analysts cut their price targets for the stock. Founded almost two decades ago, Tencent stands with e-commerce titan Alibaba Group Holding Ltd. and search giant Baidu Inc. as three of China’s biggest internet companies. They have diversified beyond their core businesses in recent years, placing big bets on online videostreaming services and other entertainment plays. Tencent is the largest videogame publisher in the world by revenue but is best known in China for its WeChat and QQ messaging and mobile-payment apps, which are installed on almost every PC and smartphone there. Tencent said in an August filing that WeChat had combined monthly active users of 962.8 million as of June 30, up 19% from a year ago. Tencent in a statement Thursday said it and Snap could work together in areas such as mobile games. Tencent’s shares have more than doubled this year as revenue and profit have swelled. Tencent registered $122 billion in revenue through the first six months of the year, up more than 60% from the first half of 2016. For the full year analysts expect $274 billion in revenue. By 2020, that projection is expected to more than double, according to FactSet. That has helped make Tencent one of the biggest compa- 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. Thursday, November 9, 2017 | A10A NY * * * * * * GREATER NEW YORK City GOP Says It Needs a Reboot ing in the primary. Ms. Crowley hasn’t conceded. Some Republicans say they are tired of losing, and believe the city’s party needs a makeover. “The Republican Party needs to have a very long term plan,” said Adele Malpass, who served until recently as chairwoman of the Manhattan GOP. To win, Republicans say they need to do better with black and Hispanic voters. The party, she said, should form campaign committees for mayoral and council races. She said it would take years for Republicans to become competitive again in the city. Republicans once performed fairly well in New York City races, with candidates such as former Mayor Rudy Giuliani drawing at least some support from Democrats. But the wins by Mr. Giuliani and later, former Mayor Michael Bloomberg, came at times of crises. Mr. Giuliani was elected when crime rates were high, while Mr. Bloomberg won in the uncertain months after the Sept. 11, 2001, terrorist attacks. He governed as a moderate, and on many issues, was socially liberal. Mr. Bloomberg ran for his third and final term in office as an independent. The city also is more heavily Democratic than it was two decades ago, and is now majorityminority. To win, Republicans say they need to perform better with blacks and Hispanics. But some Republicans say GOP President Donald Trump has made that task far more difficult. The president’s approval rating among likely Hispanic voters in New York City is 14%, according to a Quinnipiac University poll last month. Among black voters in the city, it is 3%. “He puts a lot of people in a horrible situation right now,” William F.B. O’Reilly, a GOP strategist in New York, said of Mr. Trump. —Mike Vilensky contributed to this article. CAITLIN OCHS FOR THE WALL STREET JOURNAL New York City Mayor Bill de Blasio had won a second term, and the mood at Republican challenger Nicole Malliotakis’s election headquarters quickly turned to despair. “Boo!” one man yelled when Mr. de Blasio was pronounced the winner on NY1, a local news station. “Whole world upside down,” said Ed Mullins, president of the Sergeants Benevolent Association, a police union. Before long, Ms. Malliotakis, an Assemblywoman, took the stage to Tom Petty’s “I Won’t Back Down,” before conceding. While Republicans nationwide are taking stock after highprofile wins by Democrats in Virginia and New Jersey, the mood among New York City’s GOP is especially grim. After holding the mayoralty for the better part of two decades, the party seems adrift, many of its members said. Most of its candidates are unable to win major elections in an increasingly diverse city where Democrats outnumber Republi- cans nearly 7 to 1. “I certainly don’t think it’s time to write off the Republican Party in New York City,” former Gov. George Pataki, a Republican who campaigned with Ms. Malliotakis, said in an interview. “But being a Republican in New York City is like being an iceberg in the Caribbean.” Mr. de Blasio won re-election with more than 62% of the vote to Ms. Malliotakis’s 24%, an almost 40-point advantage, according to the city’s Board of Elections. The GOP lost the race for comptroller by about 55 percentage points, and the election for public advocate by 53 percentage points. The mayor said Wednesday he hoped the 2017 election would mark “the beginning of an era of progressive, Democratic administrations in this city.” In a rare bright spot for Republicans, candidate Robert Holden may have unseated Councilwoman Elizabeth Crowley, a Queens Democrat, in a close race still being tallied. Mr. Holden is a Democrat who ran on the Republican line after los- Nicole Malliotakis’s staff removed signage at a Brooklyn venue after she lost to Democratic Mayor Bill de Blasio on Tuesday. BY JOSEPH DE AVILA AND MIKE VILENSKY Republican mayoral candidate Nicole Malliotakis lost handily to Mayor Bill de Blasio in the race for mayor on Tuesday. But in the process the Staten Island state assemblywoman has upped her name recognition at home and may have begun carving a path for higher office. “She has raised her profile locally in a really big way,” said Assemblyman Matthew Titone, a Staten Island Democrat and friend of Ms. Malliotakis. “If she is looking for an exit strategy [from the state legislature], she has written her ticket.” Ms. Malliotakis, 36 years old, garnered 27% of the vote while the mayor received 66%. After eight months on the campaign trail, she is heading back to a lower-profile job as a rank-and-file legislator in a small Assembly minority conference in Albany. The session starts again in January, and Ms. Malliotakis said she is “ready to get back to work.” Some of the issues she highlighted during her campaign, such as concerns about Turnout for Democratic candidates in New York City’s suburbs surged in Tuesday’s election as the party rode a swell of renewed enthusiasm by activists opposed to President Donald Trump. Democratic state Sen. George Latimer soundly denied Republican Rob Astorino a third term as Westchester County Executive. Mr. Latimer won 57% of the vote to Mr. Astorino’s 43% in what many had anticipated to be a close race. Mr. Latimer garnered about a total of 117,000 votes—or about 46% more than the 2013 Democratic county executive candidate Noam Bramson. Mr. Latimer’s large margin of victory caught many people off guard, including the winning candidate. “We never dreamed of being in doubledigit country,” Mr. Latimer said. He attributed the wide margin to growing anti-Trump sentiment in Westchester County and a big turnout by organized labor, which came out to vote against a ballot measure that would have convened a state constitutional convention. New the city’s property tax system and subways, could translate into state legislation, she said. But she has an uphill climb pushing for changes in Albany, where much of the 150-person Assembly is allied with Mr. de Blasio, and Democrats hold vast influence in her chamber. Republicans said Ms. Malliotakis ran a strong race under difficult political circumstances in a city where the GOP is outnumbered, and now she should consider a run for the House or U.S. Senate, or borough president. “Everyone knew winning the mayoralty in this environment is virtually impossible, but she is instantly on the radar of everyone who was watching,” said New York GOP strategist William O’Reilly. “I hope and expect she gets up quickly and takes a leadership role in the Republican Party.” Ms. Malliotakis said she has no immediate plans to run for another office but has “no idea about the future.” While she fell short of becoming New York City’s first female mayor, she said she hopes “my race encourages other young women to get involved.” BY KEIKO MORRIS to CBRE. “There’s a lot more negotiation going on between landlords and tenants,” said Nicole LaRusso, director of research and analysis for CBRE. New York is no longer immune to the forces battering the U.S. retail sector. While retail rents in Manhattan soared after the last decade’s recession, the momentum petered out as online shopping took a heavier toll on big national merchants. The number of Manhattan retail deals being completed has fallen significantly from levels three years ago and isn’t at a point that would be considered healthy flow of transactions, said David LaPierre, vice chairman at CBRE. In some deals, tenants have been able to negotiate more flexible terms, including the ability to terminate leases early if sales aren’t meeting expectations. Short-term deals—those less than three years—also are increasing. They made up about 20% of all Manhattan retail lease transactions in the third quarter, compared with less than 5% in the same period last year, according to CBRE. Commercial real-estate owners usually cut rents only after exhausting a menu of other options, from months of free rent to tenPROPERTY ant allowances for construction and remodeling. Retail landlords in Manhattan are trying all of the above. Average asking rents for ground-floor retail space fell more than 13% to $711 a square foot in the third quarter from the same quarter a year earlier, according to CBRE Group Inc., and were down 30% from their peak of $1,020 a square foot in the fourth quarter of 2014. The gap between asking rents and the actual rent in the final lease deal has been widening. During the market’s highs, the average actual rent, or taking rent, ranged from 96% to 98% of the asking price and in some cases closed at or above it, according to a CBRE index. In the third quarter, the average taking rent was 82% of the asking price. Landlords also offered more concessions and embraced shorter-term deals, according Democrats Ride Anti-Trump Wave to Victory Malliotakis Boosts Profile Despite Mayoral Defeat BY MIKE VILENSKY Manhattan Retail Landlords Sweeten Offers for Tenants York voters rejected the constitutional convention ballot measure. In Long Island’s Nassau County, Laura Curran, a Democratic county legislator, defeated her Republican opponent, former state Sen. Jack Martins, in a tight race for county executive, winning by a 51% to 48% margin. Ms. Curran drew a total of 147,000 votes, about 31% more than the 2013 Democratic Nassau county executive candidate, Thomas Suozzi. Ms. Curran, a former newspaper reporter, said her win was driven by voters fed up with corruption on Long Island. The incumbent County Executive, Edward Mangano, has been indicted on federal corruption charges. He has pleaded not guilty to the charges. This election “was about who I can I trust,” Ms. Curran said. Larry Levy, director of the National Center for Suburban Studies at Long Island’s Hofstra University, said Democrats successfully capitalized on national frustration with the Trump administration in what they hope to be a sign of things to come for the 2018 Democrats George Latimer and Laura Curran won their elections. T-B: MIKE GROLL/AP; BESS ADLER FOR WSJ BY MARA GAY AND ZOLAN KANNO-YOUNGS midterm elections. “The winds are clearly blowing for the Democrats in New York suburbs and across the country,” Mr. Levy said. That is a sign “of the kind of demographic and political changes we’ve been seeing in suburban communities on Long Island and beyond.” Ed Cox, the chairman of the New York Republican Party, pointed to GOP victories throughout central and upstate New York and said the party was still in a good position for 2018. He acknowledged there may have been some national sentiments at play in some races such as in Westchester. “Westchester is very blue so I think there was a reaction by frustrated Democrats coming out and voting on the basis that Clinton lost and Trump won,” Mr. Cox said. Hillary Clinton, a resident of Chappaqua, N.Y., in Westchester County, endorsed Mr. Latimer on Friday. Mr. Cox, however, played down the results in Nassau County, saying voters were responding to local corruption scandals involving Mr. Mangano and former Nassau County state Sen. Dean Skelos. Nassau County Republican Chairman Joseph Mondello said he expected the GOP to bounce back. “The Republican Party has weathered storms in the past and will certainly weather this one also.” Mr. Mondello said. “Remember there was a Nassau County Republican Party yesterday, there is one today and there will be one tomorrow.” OYSTER PERPETUAL SUBMARINER DATE rolex oyster perpetual and submariner are ® trademarks. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10B | Thursday, November 9, 2017 NY THE WALL STREET JOURNAL. * * GREATER NEW YORK After Losses, N.J. Republicans Vow to Fight On Mr. Murphy won about 56% of the vote compared with Lt. Gov. Kim Guadagno’s 42%, according to unofficial results released Wednesday by state Division of Elections officials. Mr. Palatucci attributed Tuesday’s loss to what he and other Republicans in the state described as the natural swing of the political pendulum between parties and the fact that Democrats outnumber Republicans by nearly 900,000 regis- GREATER NEW YORK WATCH MANHATTAN Jury Weighs Fate Of Ex-Union Head A jury has begun deliberations in the bribery trial of the former head of New York City’s correction officers’ union. Jurors are deciding the fate of 57-year-old Norman Seabrook as well as hedge fund financier Murray Huberfeld. Prosecutors say the men con- CORRECTIONS AMPLIFICATIONS An executive from Ernst & Young LLP and one from Brookfield Property Partners LP were shown in a photo with a story about EY’s plans to relocate its U.S. headquarters in Manhattan. The caption incorrectly said the photo showed two Ernst & Young executives. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. spired to pay Mr. Seabrook kickbacks or bribes in return for his delivery of millions of dollars of union funds for investments in Mr. Huberfeld’s hedge fund. They say he was given $60,000 and was promised between $100,000 and $150,000 annually. Lawyers for the men say their clients acted honestly and legally and that prosecutors relied on a dishonest star witness. —Associated Press CONNECTICUT City Sues Drugmaker Over Opioid Crisis New Haven is suing the company that manufactures OxyContin for alleged “deceptive marketing” that is blamed for the city’s opioid crisis. The city filed a lawsuit against Purdue Pharma Tuesday seeking compensation for costs faced by police, social services and first responders combating the crisis. The company has denied the allegations. —Associated Press More Republican +10 +5 Same +5 +10 Newark Jersey City New Brunswick Trenton Camden Toms River Vineland Atlantic City Source: New Jersey Division of Elections Phil Murphy and his family celebrated after he was elected governor of New Jersey on Tuesday. THE WALL STREET JOURNAL. Matthew Hale, a politicalscience professor at Seton Hall University, said it would take some time for Republicans to regain political strength in New Jersey. He assigned some blame to Mr. Christie, who he said didn’t do enough during his two terms to campaign for downballot candidates or promote the state’s Republican brand. “In the past there were people that you could easily identify or pick out that might be next,” Mr. Hale said. “I don’t know who’s next in the Republican Party right now. Chris Christie did absolutely nothing to build the party.” Several voters interviewed at the polls on Tuesday said they voted for Mr. Murphy because they were unhappy with Mr. Christie and the direction of the tive elections alone had topped $21 million by early November, a 33% increase from the 2013 elections, according to the state Election Law Enforcement Commission. Spending from independent groups tends to favor Democratic candidates in New Jersey, he noted. “Democrats have a built-in base of support with the unions, and the unions raise a lot of money and they make it readily available,” he said. In an unusual turn of events this year, New Jersey’s teachers union spent millions backing a Republican legislative candidate in an effort to unseat an incumbent Democrat, Senate President Stephen Sweeney. He prevailed, but was forced to spend a significant amount of money. national Republican Party. April Huggler, a resident of Eatontown, said she didn’t like Mr. Christie and is angered by efforts in the Republican-controlled Congress to repeal the Affordable Care Act. “I really wasn’t happy with our situation so I wanted a change,” she said. Republicans leaders sought to minimize the effect Mr. Christie’s unpopularity—his job-approval rating is in the teens—had on Tuesday’s losses. Mr. Palatucci said New Jersey is “too blue a state” for Mr. Christie’s electoral wins to transfer to other candidates. Dale Florio, a Republican strategist and lobbyist, said the party will need to fight for better representation when New Jersey redraws its legislative districts after the 2020 U.S. census. He said redistricting was partly to blame for longtime Republican state Sen. Jen Beck losing her seat on Tuesday. In Ms. Beck’s district, which includes parts of Monmouth County, registered Democrats outnumber Republicans by more than 13,000 voters, more than double the margin that existed in 2009, before the latest legislative map was drawn, when the spread favored Democrats by about 6,000 voters. “Redistricting is key and that’s clearly something where Republicans have to be on their game,” Mr. Florio said. Election spending from independent groups, such as super PACs, also is an area where Republicans have been outmatched, he said. Independent expenditures for legisla- Milk Bar Dessert Chain Plans Expansion BY CHARLES PASSY Crack pie is going global. Milk Bar, the New Yorkbased dessert chain behind the gooey treat, has received an eight-figure investment from RSE Ventures, a venture-capital firm, Milk Bar officials said. Milk Bar plans to use the funds to launch into other markets. In its nine-year history, the company has grown from a single location in Manhattan’s East Village neighborhood to a dozen spots, spread throughout New York; Las Vegas; Washington, D.C.; and Toronto. But Milk Bar, which was created in partnership with David Chang’s Momofuku group of restaurants, is now looking at a more significant expansion. A Los Angeles location and two additional locations in Washington, D.C., are set to open in late 2017 and early 2018. Plus, additional markets are being considered. Milk Bar’s founder and chief executive officer, Christina Tosi, pointed to San Francisco, BRYAN DERBALLA FOR THE WALL STREET JOURNAL ‘The face I’m going to put forward is the moderate face of the Republican Party.’ More Democratic Milk Bar is planning to launch in more markets. Founder Christina Tosi doesn’t want its crack pie to seem exclusive to New York. Seattle, Miami, Chicago and Atlanta as some of her favorite cities. “It felt exclusive to say you don’t get crack pie unless you come to New York,” said Ms. Tosi, a two-time James Beard ©2017 CHANEL®, Inc. JOIN A GLOBAL DAY OF ACTION TO ADVANCE WOMEN to leadership parity by 2025 NEW YORK CITY + WORLDWIDE Award winner, of the inspiration to grow her company. Ms. Tosi also noted Milk Bar ships its signature dessert nationally. In all, the company says it has sold 250,000 slices of the pie to date in 2017, which rep- resents a 15% year-over-year increase. A Milk Bar spokesperson also said the company has fans overseas, so “we are strategizing how to reach them.” Milk Bar’s products go beyond crack pie. The company is also known for its cereal-milk ice cream and its “naked” cakes: layer cakes with unfrosted sides. Milk Bar joins a growing list of New York food and restaurant companies looking to expand. Magnolia Bakery, whose cupcakes were made famous by the television series “Sex and the City,” has added locations everywhere from Chicago to Dubai, and has plans to open in Boston and Washington, D.C., in 2018, according to company officials. Still, Milk Bar could face challenges as it looks to grow, said John Zolidis, a restaurant analyst based in New York. He warns that its quirky desserts may not play well in every market. “Some people will say this doesn’t make any sense,” he said. ®ROBERTOCOIN After losing their eight-year grip on New Jersey’s top office, state Republicans were licking their wounds Wednesday, while vowing to push back against Democratic Gov.-elect Phil Murphy’s progressive agenda. “It was a rough night, but we’ve had rough nights before and come back, so I expect we will do so again,” said Bill Palatucci, a GOP insider and longtime political adviser to outgoing Republican Gov. Chris Christie. tered voters in New Jersey. John Currie, chairman of New Jersey’s Democratic State Committee, said dissatisfaction with Republican President Donald Trump mattered more than voter registration numbers. The election gives Democrats control of the executive and legislative branches of state government, leaving Republicans with little leverage against Mr. Murphy as he moves to carry out his agenda, which includes increasing spending and implementing a millionaire’s tax. The state Assembly’s Republican leader, Jon Bramnick, who was re-elected Tuesday by a narrower margin than years past, said he would “govern from the middle” after Mr. Christie leaves office in January and will work with Democrats when possible to advocate for the GOP’s priorities. “It was a longer night than normal,” he said. “The face I’m going to put forward is the moderate face of the Republican Party, but fiscally we’re going to oppose making this state unaffordable.” In southern New Jersey, the Republican mayor of Atlantic City was ousted by a Democratic councilman, and longtime Republican Congressman Frank LoBiondo said he wouldn’t seek re-election in 2018, giving Democrats an opportunity to flip his seat. Shift in New Jersey vote by party in Tuesday's gubernatorial election from 2016 presidential race LUCAS JACKSON/REUTERS BY KATE KING Left Lean ROBERTO COIN BOUTIQUE Westfield World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 Get Your Ticket Today SYMPHONY COLLECTION | robertocoin.com NOVEMBER 14, 2017 TAKETHELEADDAY.COM For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. * * * * CROWN MEDIA (4) LIFE&ARTS Thursday, November 9, 2017 | A11 BY JOHN JURGENSEN ‘SWITCHED FOR CHRISTMAS” has all the ingredients for a Hallmark Channel holiday movie. A small-town Christmas festival. Flirtation and decorating. Snowy epiphanies about what really matters. And Candace Cameron Bure, a Hallmark audience favorite who has starred in six Christmas movies for the network. This season the network doubled the actor’s presence: Ms. Bure plays identical twins who temporarily trade lives and stumble into romance. The commitment to Christmas is total in the TV world of Hallmark, with wall-to-wall programming requiring year-round production. Thirty-three new and original holiday films are premiering on two Hallmark channels between Oct. 27 and Jan. 1—up from 28 new movies last year. That’s a total of 136 Christmas films produced by Crown Media Family Networks, which operates four Hallmark-branded channels, since the company ramped up its output of original movies in 2008. Hallmark’s go-to producers are tasked with finding ultra-quaint settings without recycling the same charming inns, barns and town halls in multiple films. Vancouver-based Front Street Pictures coordinated five Christmas movies for Hallmark this year, the last of which is shooting now. Front Street production manager Jamie Lake is accustomed to shooting Christmas movies in summer when actors sweat in their parkas. His crews create snowy landscapes with white drapery and truckloads of ice used to pack fish. In his office he has databases of potential locations and he spends days off driving around, hunting for buildings that look like they belong in a snow globe. “Every movie wants that small, cute town and there’s only so many small, cute towns within driving distance of the film zone,” Mr. Lake says, referring to the Vancouver area in which productions receive tax credits. Fort Langley, a picturesque village just east of Vancouver, is a little too popular with camera TELEVISION On Hallmark, It’s Always Christmas The channel’s sure-fire ingredients for a successful holiday show: quaint small town, flirtatious tree decorating and, most importantly, snow Snow and decorations abound in the Hallmark Channel’s holiday-movie lineup for this year, including, clockwise from top left, ‘Switched for Christmas,’ ‘Enchanted Christmas,’ ‘Christmas Homecoming’ and ‘A Song for Christmas.’ crews. So this year Mr. Lake pushed further east to Chilliwack, a farming community surrounded by mountains. He zeroed in on a narrow block with a barbershop and toy store, which he says was “perfect for the little parade” in “Rocky Mountain Christmas,” set in a fictional hamlet in Colorado. An all-out approach to the holiday season is common in other industries such as retailing and radio, where more than 500 stations around the U.S. are expected to switch to an all-Christmas format this year, according to Nielsen. Some cable TV networks—including Disney’s Freeform, Ion, Lifetime and Up—roll out Christmas countdowns, featuring familiar hits and a handful of originals During last year’s holiday takeover, the size of the flagship Hall- mark Channel’s target audience— women ages 25 to 54—more than doubled the average of any previous month. In the first two weekends of this year’s Christmas blitz, Hallmark had the biggest audience of any cable network. The seasonal strategy has helped drive overall growth for the network, which saw its ratings among adult viewers under 50, the industry benchmark, grow by 31% last year. However, Hallmark faces a unique challenge: producing three dozen movies about the same holiday while avoiding “Groundhog Day” repetition. Often there’s a struggling family business that needs saving, like the cozy inn in “Christmas at Holly Lodge,” the old-fashioned holiday shop in “Sharing Christmas,” or the theater that loses its lease in “Christ- mas Encore.” A big-time star encounters small-town romance in “Marry Me at Christmas,” “A Song for Christmas” and “Rocky Mountain Christmas.” In “The Perfect Christmas Present,” the hero is a personal gift buyer known to his clients as Mr. Christmas—not unlike the nickname for the title character in “Miss Christmas,” whose job is finding the perfect tree for Chicago. Executives say it’s the characters that make each movie unique. “Even if there’s a similar tradition in one movie to the next, that doesn’t mean the characters aren’t going on different journeys,” says Michelle Vicary, executive vice president of programming and network publicity for Crown Media Family Networks. The company is a division of the Kansas City, Mo.- based Hallmark Cards, Inc. In addition to a feel-good finale, there’s an atmospheric checklist for every movie. “Buying a Christmas tree. Wrapping gifts. Thinking of gifts. Baking and cooking meals. Family gatherings. All of the things that you think of as traditional,” says Randy Pope, senior vice president of programming. Snow is a dealbreaker. “Every year we get scripts with something like, ‘It’s the first year in the country’s snowiest city that they had no snow.’ Nope. Not on Hallmark it’s not,” Ms. Vicary says. Tradition extends to the stars who return annually to Hallmark movies, especially actresses famed for TV roles in the 1980s and ’90s, including Ms. Bure and Lori Loughlin (“Full House”), Lacey Chabert (“Party of Five”) and Danica McKellar (“The Wonder Years”). Hallmark’s formula has resulted in a certain sameness in casting. All the romantic leading roles in this year’s batch of 33 movies are played by white actors, except for the Hispanic stars of “Enchanted Christmas,” Alexa and Carlos PenaVega. “We’re working on it and doing everything we can to create the best cast for each movie and also look at diversity as part of our strategy,” Ms. Vicary says, noting an expanding roster of stars, such as Holly Robinson Peete and Rodney Peete, the African-American couple whose family is at the center of Hallmark’s first unscripted series, premiering in February. Inducing yuletide déjà vu is part of the point for fans. Testimonials on Twitter include “I’ve done nothing but watch Hallmark Christmas movies for the past 3 days” and “i am so beyond ready to binge hallmark christmas movies nonstop for the next two months.” The recognizable rhythms also work for people who enjoy them ironically. As one viewer tweeted, they “may be cheesy and predictable, but that sure as hell isn’t stopping me from watching them.” Hallmark executives are now picking scripts for 2018’s Christmas lineup, and filling smaller orders for other seasonal movie blocks such as “Very Valentine’s,” “Summer Nights” and “Fall Harvest.” MOVIES DECONSTRUCTING A ‘SIMPSONS’ STEREOTYPE FOX/GETTY IMAGES BY DON STEINBERG Apu, left, pictured in a January 2016 episode of ‘The Simpsons,’ speaks with an exaggerated Indian accent in the show. HARI KONDABOLU never wanted to find fault with “The Simpsons.” Like most comedians, he grew up worshiping the groundbreaking animated sitcom. But as an adult, the IndianAmerican stand-up comic started having second thoughts about one of the show’s characters, Apu Nahasapeemapetilon, the hardworking, cheapskate owner of the KwikE Mart. Apu made his debut during the first “Simpsons” season. In an early 1990 episode, Apu warns Bart and his delinquent pals not to steal anything in the aisles of his convenience store. He’s been selling stale hot dogs and price-gouging the residents of Springfield ever since. Actor Hank Azaria voices Apu with a mockingly heavy Indian accent. Or, as Mr. Kondabolu calls it in his new documentary, “The Problem with Apu”: “A white guy doing an impression of a white guy making fun of my father.” Mr. Kondabolu’s documentary, which debuts at the DOC NYC film festival on Nov. 14 and airs on truTV on Nov. 19, explores a question at the heart of that comment: What happens when a TV character loved by millions just might denigrate millions of others? But he didn’t want the film to be a downer. “ ‘The Simpsons’ is an institution. And I love that institution,” says the 35-year-old New Yorker. “It had to be funny. If you’re gonna be a killjoy, you have to kill joy with joy.” In the film, Mr. Kondabolu talks with actors of South Asian ancestry including Kal Penn (“Harold and Kumar Go to White Castle”), Aziz Ansari (“Master of None”), Aasif Mandvi (“The Daily Show”), Hasan Minaj (“The Daily Show”) and Utkarsh Ambudkar (“Pitch Perfect”), as well as comedians Aparna Nancherla and Russell Peters and former surgeon general Vivek Murthy. They all discuss varying levels of unease with Apu. Some note that the problem Please see APU page A12 THE WALL STREET JOURNAL. A12 | Thursday, November 9, 2017 LIFE & ARTS THE MIDDLE SEAT | By Scott McCartney How Should a Holiday Inn Smell? The ‘Essence de Sofitel,’ used at all its hotels including Paris, below, includes lemon, lily of the valley and sandalwood. a sense of familiarity. It really helps get transition from the outside,” Mr. Rocco says. Westin was one of the first with a chain-wide white tea scent it began testing in 2005. Westin has stuck with the same scent, but many brands are updating and shifting. Sofitel shifted its strategy last year from having off-the-shelf scents selected by local staff to a unique Sofitel scent common to all properties. ADVERTISEMENT Leisure Travel To advertise: 800-366-3975 or WSJ.com/classiﬁeds FRANCE ! "!# # $ % #& ' $& ! ( #) The regional strategy, launched in 2009, had worked, Mr. Rocco says– people bought candles. “But we were missing an opportunity to really build a very unified marker for the brand,” he says. Sofitel now uses Essence de Sofitel, a fragrance developed by famous French “nose” Lucien Ferrero. It’s a mix of lemon leaf, bergamot and basil, supported by lily of the valley, white rose and cardamom, with a complex bottom note of precious woods like white sandalwood. The scent is diffused in the lobby of Sofitel’s 120 hotels and sometimes sprayed in corridors and elevator areas by housekeeping. A few people do turn up their noses at scented hotels. MGallery by Sofitel, a collection of high-end hotels that uses a different scent for each property, conducted a survey of 3,000 guests over the summer and found 78% of women and 74% of men generally like scented spaces. There were different levels of acceptance in different countries, however. In the United Kingdom, one-third of men disliked scent. MGallery has advised its U.K. properties to select fragrances that are not too strong, says Agnès Roquefort, senior vice president of luxury brand management. A side benefit for hotels: Just about every brand now sells its scent in candles and other products for home use. Marriott says sales of all its scents, such as a room spritzer to add the lemony, seductive W smell to your own bathroom or bedroom, are up 35% compared with a year earlier. The Carlyle in New York, a Rosewood hotel, sells more than 2,500 bars of its scented soap each year at $6 a bar. Scent marketing has been around for several years. Retailers, medical facilities and entertainment venues routinely mix scent with heating and air-conditioning air flow, or deliver it more directly through strategically placed diffusers or candles. Realtors and developers use scent to sell homes and condos. Airlines including Delta and United are using scent in airport lounges and even on airplanes during takeoff and landing. “Hotels want clean, crisp notes. They don’t want it to be a perfumery, but they don’t want it to smell like a tea shop,” says Edward Burke, vice president of customer strategy and communications for ScentAir. Though each brand has a scent, it’s ultimately up to local hotel operators whether to use it. ScentAir says it costs a small hotel about $100 a month to scent a lobby and other public areas. A large hotel might spend $2,000 a month on a scent program, depending on size and desired effects, Mr. Burke says. Hotels say they don’t use scent in individual rooms, but companies like ScentAir are working on technology that could give guests the ability to control scent in their rooms. Some hotels already have installed tablet computers in rooms with controls for TV, temperature, window curtains and lighting. Scent could be added, but the cost to deliver individually controlled fragrance into rooms remains the stumbling block. “That’s one of our main projects. Hotels say they’d love to have that ability if we can do it at the right cost,” says Mr. Burke. APU Continued from page A11 with the character might stem from his pioneering role. In 1990, there weren’t many South Asian characters on American TV or in films. Early “Simpsons” episodes reached as many as 30 million viewers, and Apu became the most prominent Indian-American presence to many people. “They didn’t mean for it to happen. The problem is we didn’t have any other representation in this country,” says Mr. Ambudkar in the film. “This one character created so many problems, psychologically, emotionally, for so many people.” Dana Gould, a former “Simpsons” writer and producer, tells Mr. Kondabolu that the bottom line for the show is “funny,” and some foreign accents simply sound funny to nonmultilingual Americans. He suggests that “The Simpsons” stereotypes— and often humanizes— pretty much everybody, so Apu is no different from the sitcom’s depiction of greedy billionaires, Mr. Burns. But for Mr. Kondabolu and others, this racial stereotype is different. In the film, he assembles a roomful of young South Asian-American entertainers whose faces are familiar from TV and movies. He asks how many of the men and women have had to deal with being called Apu in DAVID SCOTT HOLLOWAY/TRUTV WHAT DOES a cheap hotel smell like? These days, it may be notes of jasmine mixed with wood and honeysuckle. Luxury hotels have scented lobbies, hallways and other public spaces with carefully crafted perfumes for several years to create a memorable brand image and stealthily calm guests as they arrive. Now budget chains are spritzing, too. Hotels have arguably never paid so much attention to how they smell, employing expert “noses” from leading perfume makers to entice travelers with just the right amount of sandalwood. The description of the Holiday Inn Express Signature Scent tries for a level of elegance not normally found with a free breakfast buffet: “Crisp lemon top notes accent a heart of watery green florals, sweet grass, a dash of exotic herbs, spicy perilla and a base of sheer woods and musk.” Marriott International and InterContinental Hotels Group use scent in most of their brands, from Best Western on up. The hip W sprays a floral scent with notes of jasmine and sandalwood. The Westin chain promotes wellness, so it employs a white tea aroma that is calming, says Tina Edmundson, global brand officer for Marriott. “If you put the W scent in a Westin environment, it would feel odd. It would feel out of place,” Ms. Edmundson says. Moxy Hotels, Marriott’s newest budget brand targeted at younger travelers, has a scent to enhance the notion of fun experiences. The most important corporate rule guiding Moxy’s olfactory profile: It can’t smell expensive like a Ritz Carlton. ScentAir, a Charlotte, N.C., company that develops and delivers scents for hotels and other industries, says its highest area of growth right now is in value hotels. Hotels say the scent has to fit the brand, and mixing the right fragrance is crucial to marketing. Experts say what we smell and hear can create lasting impressions stronger than visual cues. Just as favorite songs get attached to memories, so, too, can pleasing smells link a certain brand or place with happy thoughts. “You can see beautiful flowers. When you go to the next hotel, will you really remember the flowers?” says Joao Rocco, Paris-based vice president for luxury brand management at Sofitel hotels. “With smell, you will remember.” It’s not that consumers are going to book Sofitel hotels for the smell. Price, location and service are still bigger drivers of repeat business, Mr. Rocco says. But when you get to a Sofitel hotel, you’ll feel more comfortable because the smell is familiar, he says. “It gives you a sense of arrival, ILLUSTRATION BY JEAN TUTTLE; PHOTOS: CLOCKWISE FROM TOP LFFT: GETTY IMAGES/ISTOCKPHOTO (2); ALAMY; ACCORHOTELS Budget hotel chains, emulating luxury brands, are adopting signature scents to create memorable experiences In his film, comedian Hari Kondabolu, left, speaks with Whoopi Goldberg about racial stereotypes. public or taunted by a stranger with an Apu reference, such as his catchphrase: “Thank you, come again.” All the men raise their hands. Throughout the documentary, Mr. Kondabolu tries to wrangle an interview with Mr. Azaria, a master of overthe-top vocal caricature. His other “Simpsons” characters include surly bartender Moe, donut-munching cop Clancy Wiggum, dweeby Professor Frink and smug, overweight Comic Book Guy. Mr. Azaria ultimately declined to participate in the documentary. He wasn’t able to preview the documentary and didn’t want to comment on it. But Mr. Kondabolu does meet with Whoopi Goldberg, who owns a collection of racist memorabilia, and the two discuss how Apu compares with the portrayal of African-Americans in minstrel shows. He also interviews his immigrant parents, who are more accepting. “Hank Azaria is a talented guy,” his mother says. “They paid him, and he did it. And he did it great.” She acknowledges that her genera- tion puts up with more than their American-born children are willing to tolerate. She also tells Hari that he has “Apu hair.” Mr. Kondabolu understands that not everyone will appreciate his concern about Apu. “I realize some of you think I’m some annoying, PC, social-justice warrior who’s very sensitive and obsessed with a 28-year-old cartoon character,” he says in the film. “You’re probably thinking: ‘Come on, snowflake, let it go.’ Well, I have let it go...for 28 years.” 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. Thursday, November 9, 2017 | A13 LIFE & ARTS CLOCKWISE FROM TOP LEFT: JOHN SALANGSANG/INVISION/AP; MERT & MARCUS Taylor Swift, left, in Houston in February, has pushed CD sales of her new album using incentives including special-edition magazines, below. MUSIC Taylor Swift’s ‘Reputation’ on CDs The pop star’s new album, due Friday, is unlikely to be made available on streaming services BY ANNE STEELE TAYLOR SWIFT APPEARS to be staking her reputation on CD sales. While the music industry is watching to see if the pop star’s new album can match the sales of her previous blockbuster, a bigger question for many concerns how her sixth studio effort, “Reputation,” will be made available when it comes out Friday. The album is unlikely to be heard on streaming services when it’s released, according to people familiar with the matter. Initial discussions indicated such a streaming blackout could last as little as a week or two after the album’s release, according to one of these people, who said the final decision was up to Ms. Swift and her inner circle. So far, that group hasn’t shared its plans with many business partners. Ms. Swift’s label, Big Machine Records, declined to comment on plans for the new album. After releasing her previous album, “1989,” in 2014, Ms. Swift waited seven months before allowing any streaming services to carry it. Three years later, however, streaming has overtaken download sales and CDs as the most popular way to listen to music, and it’s unclear whether it will be feasible to keep the new album off Spotify AB, Apple Music and other services for as long. So far this year streaming is responsible for about 60% of music consumption in the U.S., according to Nielsen Music, which measures sales and streams in units, rather than in dollars, and treats 1,500 streams as the equivalent of one album sale. All signs point to strong sales momentum ahead of Friday’s release. “Reputation” has already generated 400,000 preorders for digital and physical copies—more than double the figure for “1989,” according to Big Machine. That album was released when sales still generated more revenue than streaming in the U.S., according to the Recording Industry Association of America. Sales remain a huge opportunity for Ms. Swift. A superstar artist can receive as much as 20% of the proceeds from album sales. In the first weeks after the release of a heavily promoted album like “Reputation,” that can make sales far more profitable than streaming, which generates royalties worth tiny fractions of a penny per listen. Over the long term, those micropayments can add up to big money for hit songs and albums. Last week, streaming accounted for 75% of total retail volume for “1989,” according to Nielsen. While the singles off of “Reputation” so far haven’t had the same chart success as those on “1989,” that doesn’t appear to have diminished demand for the album, said David Bakula, a Nielsen Entertainment analyst. The first four singles on the album indicate a more synth-heavy —and, at times, bass-heavy—brand of pop, while the set list includes a collaboration with singer-songwriter Ed Sheeran and rapper Future. Three of the same pop masterminds who worked on “1989,” Jack Antonoff, Max Martin and Shellback, are listed as producers. Ms. Swift is using various incentives to encourage her loyal fan base to buy the new album on CD. Ordering a copy from her website can boost a buyer’s chances of securing tickets to her coming concert tour. Target Corp. says “Reputation” has generated more preorders than any album before it, and expects the album to be its biggest music release of the season. The chain’s biggest seller to date is Adele’s “25,” which was held from streaming for the better part of the first year after it came out in 2015, when streaming became the biggest segment of the U.S. music market. Target is offering two different 72-page special-edition magazines featuring portraits, personal photos as well as poetry and paintings by Ms. Swift with each album purchase. It expects many fans, who call themselves “Swifties,” to purchase two copies of the album to have both magazines, said Lee Henderson, a company spokesman. “We look for a way to give fans something they can’t get anywhere else,” said Mr. Henderson. Until the middle of this year, none of Ms. Swift’s music was available on Spotify, by far the most popular streaming service, with about twice as many users as No. 2 Apple Music. Ms. Swift wanted her music to be available only to paying subscribers; Spotify insisted that all its users—including those who use its free, ad-supported option—be able to listen to it. In June, Ms. Swift put her entire catalog on Spotify, including its free tier. By then, “1989” had sold 10 million copies world-wide, according to her management team. It’s too soon to say what keeping “Reputation” off streaming services would mean for its overall performance. “This was going to be heavily purchased album anyway,” said Nielsen’s Mr. Bakula. Since Ms. Swift’s fan base is largely made up of younger consumers who listen to music via streaming, she could effectively get paid twice for the same album, as fans purchase a digital or physical copy of “Reputation” then continue to listen to it on the subscription services they typically use. With or without streaming, says Mr. Bakula, “it’s going to be a blockbuster one way or another.” ART REVIEW PAINTING HIMSELF INTO THE SPANISH CANON New York IN THE LATE 17th century, the city of Seville suffered pestilence, famine and the loss of its prestigious position as the commercial hub of the expansive Spanish Empire. Though its population was devastated by disease and starvation, many reduced to living in squalor, and its economy and future lay in ruin, Seville miraculously contributed some of the most splendid late paintings of the Spanish Golden Age. Chief among these late baroque works were the paintings of Bartolomé Esteban Murillo (1617-1682), whose penchant for a graceful, naturalist style made accessible the religious art he produced for the city’s churches and charitable institutions. Murillo is likewise remembered for enigmatic scenes of the streetwise denizens of Seville—smiling, scruffy waifs in threadbare clothing, veiled young flower girls in provocative poses, perhaps a courtesan and a duenna gazing out at the viewer or client. Such paintings’ intriguing, cryptic content and their sophisticated artistic conceits made even these humble images prized by Murillo’s legions of collectors. Although they have received little critical attention, Murillo also excelled at portrait paintings, and at least two self-portraits figure among the 15 or so surviving likenesses that can be attributed to his hand. As beautifully argued in the small but significant “Murillo: The Self-Portraits,” organized by Xavier F. Salomon, the chief curator of the Frick Collection, and by Letizia Treves of the National Gallery, London, these works, too, are © THE FRICK COLLECTION BY MARY TOMPKINS LEWIS Bartolomé Esteban Murillo’s ‘Self-Portrait’ (c. 1650-55) essential to his oeuvre. The exhibition marks the quadricentennial of the painter’s birth and was occasioned by the New York museum’s recent acquisition of Murillo’s “Self-Portrait” of c.1650-55, a gift from heirs of the Frick family. When seen in the context of a handful of his related portraits—including several newly attributed here to the artist—and amid graphic reproductions by later artists, Murillo’s self-portraits emerge as the cogent and enduring synopses of his art that the painter intended. They lay claim not only to his likeness but to his pre-eminent place in the Spanish canon. The Frick’s recently accessioned, half-length self-portrait depicts Murillo in a three-quarters pose, and dressed as a hidalgo, or Spanish gentleman: A black jacket with fashionably slit sleeves reveals his voluminous underlying white shirt. And, at the neck, the stiffened, unembellished golilla collar—an austere style favored by Philip IV and delicately sketched in here with sheer, white strokes of paint—sets off his sensitively rendered features. An inscription in red at the base of the canvas, which identifies the subject and his fame within his profession, was added to the painted stone ledge after Murillo’s death and appears in subsequent graphic replicas that render such images encomiums. Like many of Murillo’s portraits, his image is inset within an illusionistic stone frame, but one far less decorative than those that enshrine his other sitters or even the painter himself in the later selfportrait. Made up of a seemingly rough and chipped stone block that appears to have been ravaged by time, it may recall, as the curators argue (and as do his paintings of urchins in vacant landscapes strewn with ancient ruins), Murillo’s interest in the remnants of classical antiquity that filled the Sevillian landscape. Built upon the ancient Roman city of Hispalis, Seville enjoyed one of the closest connections of any Spanish city with its antique past, and it is one that Murillo knew well. An allusion to that legacy here may have “set in stone” his image and achievement for posterity. The elaborate stone frame and format of Murillo’s “Self-Portrait” of c. 1870 suggest its strikingly different intent. Though his sagging face and neck are softened now by a lacy Northern (or Walloon) collar, the painter has visibly aged; the tragic recent loss of his wife and four of his nine children may also have shaped his weary countenance. The attributes of his profession are arrayed on a stone ledge before him: the tools of drawing at left allude to Murillo’s heralded skills as a draftsman, while the paintbrushes and palette at right establish him as a painter. But it is the ingenious gesture he assumes, as his right hand reaches through the painted frame into the viewer’s space, that announces Murillo’s brilliant originality. A marvel of trompe l’oeil painting that may have drawn from countless works he knew from prints (and Rembrandt in particular), it extends the inventive pictorial conceits that made Murillo’s genre paintings—several of which are included in this show—so alluring. It would inspire countless later artists, notably the Englishman William Hogarth, to use it as models for their own work. But it may have been painted as well to inspire his remaining sons. The touching inscription Murillo added, “Bartolomé Murillo portraying himself to fulfill the wishes and prayers of his children,” suggests his intended audience was not just that of posterity. Murillo: The Self-Portraits The Frick Collection, through Feb. 4, 2018 Ms. Lewis teaches art history at Trinity College, Hartford, Conn. THE WALL STREET JOURNAL. A14 | Thursday, November 9, 2017 SPORTS BASKETBALL The NBA’s Bizarro Start JAMES D SMITH/ASSOCIATED PRESS The Cavs stink and the Knicks might be good. Right now, the league makes no sense. Jerry Jones, left, with NFL commissioner Roger Goodell in 2014. NFL JONES TRIES TO BLOCK GOODELL’S CONTRACT BY ANDREW BEATON owner Jerry Jones is trying to block NFL commissioner Roger Goodell’s pending contract extension, sparking a feud among the ownership ranks and intensifying his battle with the league. The blowup is the latest enmity for the league in a season already filled with internal and external strife, most prominently around the players’ national anthem protests and how to handle them. Jones has been critical of the league’s handling of the issue as well as Goodell’s decision to suspend Cowboys star running back Ezekiel Elliott for six games, a penalty that remains under appeal. In a call last Thursday with owners on the compensation committee, Jones expressed concerns about extending Goodell’s contract and the potential structure and compensation involved, according to a person familiar with the matter. Goodell has reportedly made more than $200 million since becoming commissioner in 2006. Jones declined to comment through a team spokesman. An NFL spokesman declined to comment, though in recent weeks the league has expressed confidence that the owners would move forward with a contract extension for Goodell. The call, as first reported by the New York Times, resulted in other members of the committee revoking Jones’s status as an ad hoc member, a role that had given him a voice but no vote. The Times said Jones threatened to sue the league and some of the owners over the issue. In a previous Oct. 26 call with at least 15 owners who aren’t members of the compensation committee, some of those agreed with Jones’s concerns about extending Goodell’s contract, according to a person familiar with the matter. The Oct. 26 call came shortly after the NFL’s owners meetings in New York, where a focal point of discussions was the contentious national anthem protests by players that have roiled the league and its sponsors. During those meetings, the league decided not to change a rule to mandate that players must stand during the anthem. Jones has been one of the most outspoken owners against the protests, which have drawn ire from some fans and President Donald Trump, who have called the demonstrations unpatriotic. All the while, Jones has assailed Goodell’s discipline for Elliott over violations of the league’s personal conduct policy related to alleged domestic violence. He and the NFL Players Association have criticized the league’s investigatory process and called the suspension unfair. Elliott’s suspension has become a protracted legal battle, with a potential resolution coming Thursday, when the Second U.S. Circuit Court of Appeals will hear the case. To press his argument against Goodell, Jones has hired high-profile litigator David Boies. A spokesman for Boies’ law firm, Boies Schiller Flexner, declined to comment and referred questions to the Cowboys. —Rebecca Davis O’Brien contributed to this article. most confusing stretch of every NBA season. Each team has played about 10 games—which is enough to make impressions that might be true and not enough to know with any confidence whether they actually will be. But there is already so much that has happened in less than a month that it can be hard to keep track. Take the Cleveland Cavaliers as an example. The latest twist in their daily soap opera came on Monday night when LeBron James posted on Instagram a cryptic image of the children’s-book character Arthur clenching his fist with the caption “Mood…” It was only natural that the NBA world spent most of Tuesday attempting to decipher the message. Here are some questions that are easier to answer. Are the Cavaliers really this bad? Cleveland’s defense last season was not quite the worst of any team’s. It was only the worst of any playoff team’s. But now it’s the worst of any team’s in the last five years. The question surrounding the Cavaliers is how much anyone should care about their statistical ineptitude. November is not their priority. Cleveland has played in June the last three seasons, and it’s even more important this year for the league’s oldest team to conserve its energy for when it counts. The team the Cavs are now won’t be the team the Cavs are six months from now, either, since they’re waiting for Isaiah Thomas to rehab an injury before making his Cleveland debut. But the real reason it’s not worth freaking about the Cavaliers being 5-6 is pretty obvious. They still have LeBron James. Are the Boston Celtics really this good? The Celtics were the No. 1 seed in the East last season. They celebrated by overhauling their roster before this season. They landed Gordon Hayward in free agency, traded the No. 1 pick in the draft and dealt Thomas for Kyrie Irving in a series of moves that positioned Boston to compete for titles now and in the future. And then Hayward shattered his leg in the first quarter of the first Weather MICHAEL REYNOLDS/EPA/SHUTTERSTOCK BY BEN COHEN LeBron James and the Cleveland Cavaliers are off to a slow start this season. game. It seemed like Boston’s championship aspirations would have to wait. Except the Celtics have now won nine straight on their way to the league’s best record. Irving is a legitimate star. Al Horford is a reliable sidekick. Boston’s defense is especially feisty. Whether it’s sustainable beyond the first month of the season is another issue altogether. But for now it’s a sight to behold. Are the New York Knicks really this competent? Maybe! It’s time to acknowledge that the circus in residence at Madison Square Garden otherwise known as the New York Knicks finally resembles a halfway decent professional basketball team. Now let’s be clear: The Knicks are unlikely to make the playoffs, and there’s still an argument they should be losing as much as possible to get another top draft pick to complement Kristaps Porzingis. By that logic, what they’re doing is extremely Knicks-y: This is a team that can’t even tank well. Why should I care about Andre Drummond’s free throws? Drummond came into this season as the single worst free-throw shooter in the history of the NBA. His career percentage from the line was 38.1%. Of all the players with at least 1,000 career free-throw attempts, no one else was below 40%. That’s what makes the Detroit Pistons center’s improvement the craziest story of this NBA season. Drummond is suddenly and improbably a 75% shooter. And it doesn’t appear to be a fluke that he’s made 30 of his 40 free throws, either. He also made 16 of his 20 free throws in the pre-season. It was a big problem for the Pistons that one of their most important players couldn’t stay on the court in tight games because he couldn’t be trusted to make free throws. He was so desperate for solutions that Drummond experimented with virtual reality before last season. When that didn’t work, he tried something more conventional: He remade his shooting mechanics and rethought his free-throw routine before this season. The biggest increase in free-throw percentage from one season to the next among players with enough attempts was Tim Duncan improving from 61.8% to 79.9% between 2001 and 2002, according to Stats LLC. If he keeps shooting this way, Drummond would be in a class of his own. Is there any reason to believe the Golden State Warriors aren’t winning the championship? No. 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 V Vancouver d Edmonton 40s Helena Boise Billings Pierre Reno Salt Lake Lake Cit C City 70s San Diego 10s 20s 10s Anchorage A h g 20s oux FFalls ll Sioux Cheyenne Ch T t Toronto Mpls./St.. 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Worth Cold T-storms El Paso b Mobile Jacksonville 60s A ti Austin 70s Stationary Snow t Houston l d Orlando ew Orleans New Tampa an Antonio San 80s Sacramento San Francisco Los A Ange l Angeles 50s 30s 20s Montreal Ottawa 30s 40s 1 2 3 4 5 14 6 7 8 9 10 15 11 12 13 h Omaha 17 18 20 21 23 28 24 71 Light course 30 Cargo unit 19 72 Broad players 34 Brittany, for one Down 1 Emmy statuette part 36 Brittany, for one 29 22 25 30 32 33 39 40 26 27 2 Rock in motion 31 34 41 35 36 42 37 38 43 Denver 80s Honolulu l l Miami Showers 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. Hi 37 84 57 85 50 47 55 66 54 64 68 60 51 27 55 Today Lo W 18 s 66 pc 38 c 61 s 25 s 34 s 44 r 51 sh 25 s 42 pc 55 r 34 s 44 r 15 pc 39 c Tomorrow Hi Lo W 41 33 c 78 66 pc 39 25 s 86 61 pc 32 18 pc 36 20 s 52 45 r 64 45 pc 42 29 s 61 40 pc 66 52 pc 63 37 s 53 43 c 32 28 c 45 27 s International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 53 69 85 91 59 46 48 78 92 53 51 Today Lo W 46 c 54 pc 62 s 78 pc 42 pc 40 c 43 c 58 s 77 s 45 pc 39 pc Tomorrow Hi Lo W 53 44 sh 67 56 pc 81 58 s 92 78 t 56 26 s 47 39 sh 52 42 sh 80 54 pc 90 75 s 51 44 r 48 36 sh 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 Hi 48 48 86 83 63 89 67 80 56 56 84 72 74 54 35 94 51 84 89 63 86 57 69 88 71 78 63 47 48 48 48 Today Lo W 37 sh 35 r 70 pc 73 pc 51 s 75 t 48 s 55 pc 44 pc 34 pc 77 sh 48 c 47 pc 40 pc 28 pc 73 pc 43 c 71 pc 61 s 50 t 78 sh 45 s 56 s 77 c 57 s 73 c 51 s 16 sn 41 r 39 c 34 c Tomorrow Hi Lo W 48 39 r 47 40 c 84 70 pc 83 73 s 60 50 pc 89 77 t 66 50 s 78 58 t 55 47 c 61 39 s 86 78 t 77 51 pc 74 49 pc 55 39 pc 37 35 c 94 73 pc 55 46 sh 85 71 t 89 60 pc 62 45 t 86 77 sh 62 37 sh 72 51 sh 88 77 t 72 61 pc 87 70 pc 62 59 pc 28 17 c 49 40 pc 47 39 sh 45 41 c 45 46 49 53 54 50 55 47 51 56 58 59 48 52 57 60 61 62 64 65 67 68 69 70 71 72 63 66 Across 1 Saloon selection 5 Brand with three peaks in its logo 10 14 15 16 17 19 25 Soft leather 49 Contemptible 28 Cut for yourself and two friends 51 Taking a break 53 Capital that’s home to 31 Flying formations Nationwide Company with 32 Holds great projections 57 Fibbies 33 Fresh from the Leave the hangar, 58 Slain shepherd farrier, say e.g. 59 P look-alike 35 “The Seven Photo app tool Spiritual Laws 61 Behind the of Success” Slushy earth times writer Chopra Risk a 64 Tennis’s Caroline 39 At all times breakdown, in Wozniacki, e.g. a way 41 Switch type 65 It won the By and by Best Original 43 Move, in real 20 Pudgy plumber of console fame 21 Starchy veggie 22 Star vehicle 23 Contemptible fellows estate jargon 44 Possible answer to “Parlez-vous anglais?” 46 Cause of a rush 48 Grams Screenplay Oscar in 1988 67 Put out 68 Tell tale target 69 Game played with weapons Solve this puzzle online and discuss it at WSJ.com/Puzzles. 37 Playwright Ayckbourn 38 “It was beauty killed” him 3 Works out 4 Alpha Canis Majoris 40 Small streams 5 It loops the Loop 45 None too smart 6 Fluctuate 47 The Brits call it a tipper 42 Coxcomb 7 With 8-Down, “The Stars, Like Dust” author 50 Satellite of Jupiter with an ice crust 8 See 7-Down MERGING TRAFFIC | By Alice Long s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 28 22 sn 27 16 s Atlanta 61 44 r 65 40 s Austin 62 47 c 66 50 pc Baltimore 53 38 c 43 22 s Boise 54 40 c 54 37 c Boston 50 38 s 39 25 s Burlington 49 24 pc 28 22 pc Charlotte 55 39 r 59 29 s Chicago 42 20 pc 34 26 pc Cleveland 50 27 pc 33 22 sf Dallas 63 44 pc 65 48 pc Denver 49 27 s 60 31 pc Detroit 48 21 pc 32 21 pc Honolulu 87 74 pc 86 75 pc Houston 68 50 pc 71 52 s Indianapolis 50 23 s 35 23 s Kansas City 46 20 s 42 35 pc Las Vegas 78 54 pc 76 53 pc Little Rock 62 36 pc 58 31 s Los Angeles 71 59 pc 69 57 pc Miami 88 75 pc 86 75 pc Milwaukee 39 20 c 33 29 pc Minneapolis 24 12 pc 29 26 pc Nashville 60 35 s 51 29 s New Orleans 68 53 sh 70 54 pc New York City 53 37 pc 38 26 s Oklahoma City 56 38 pc 59 42 pc Flurries 44 70 Works with hides 29 Dance party 16 10s 40s Bismarckk 50s 60s 0s ip Winnipeg 10s Eugene <0 30s Seattle P d Portland 20s 0s Caalgar C ga y Calgary 9 Possible answer to “Parlez-vous anglais?” 10 1964 Beatles song 11 Sienna or Sedona 12 Cinnabon stand come-on 13 Stroboscope gas 52 Turn upside down 53 Uniformed student 54 Sotomayor’s appointer 55 “The State and Revolution” writer 56 Galleria array 18 Salve targets 60 Just 24 Student driver? 62 Soapy buildup 26 Sign of trouble 63 Squeezes (out) 27 River of Scotland 65 Name after Fannie or Ginnie 28 Bridge tally heading 66 Salt source Previous Puzzle’s Solution A L A I N I N T H J A I T E N T E T D S A B R A H H E A O R M N B C I S H U N OM E E A Z Z L O E P O D T E E T O T A L D I S H T J M R A A X E X I D E C L A R E P U R E N O V R E S C E E P O A G I C M P T A P S C R E H A U S T O R R E B A L M O R V S H OWE A L A N I N E R T D S MU L E T R E L H A R A B B O E I K E E I T H E R D O N O R S S N A G S G N U S A C C T S H E A 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. Thursday, November 9, 2017 | A15 OPINION Selfie Politics Ed Gillespie is the canary in the mine shaft for Republican politics. We’ll push that further: WONDER Virginia is the LAND canary in the By Daniel mine shaft for Henninger all of American politics. Years ago, coal miners who worked down amid the dangers of carbon monoxide would keep a caged canary nearby. If the canary looked dead, the miners got out. The big difference for our comparison is that while miners are smart enough to recognize toxic gas, our two political parties are not. The American people are the canaries. For Democrats, political identity is by now well-established as a function of one’s race, gender or sexual self-definition. Refined further, a Democrat is a “person of color” or a “woman” or a “transgender” person. Those who don’t qualify for a category keep mum. From these identities flow many streams of potential violations, slights and transgressions justifying political action against “them.” Democrats found validation for the politics of identity in the Virginia results. Some 77% of unmarried women voted for Ralph Northam. Ed Gillespie was standing in front of an anti-Trump train. Voters in college towns, where the politics of identity was born, also voted overwhelmingly for Mr. Northam. The Democrats’ not unreasonable takeaway from Virginia will be that identity politics works, so do more of it. The Republicans’ political identity, if the media consensus is to be believed, is almost wholly a function of some inchoate white anger also directed at “them.” Donald Trump won the presidency because he mined white anger at the margins against a different “them” of immigrants and globalization, meaning the whole wide world is arrayed against whatever it means to be a “white male” in 21st-century America. The Republicans’ logical takeaway from Virginia should be that in competitive election venues—such as the suburban counties and congressional districts of Florida, Ohio, North Carolina or Wisconsin—their political anger has bigger numbers than your anger. Intensity is interesting but irrelevant. In politics, smaller numbers still mean you lose. We are in the era of selfie politics. In Donald Trump, we have a selfie president. After the Virginia gubernatorial loss, the first nine words of Mr. Trump’s tweet from Asia were: “Ed Gillespie worked hard but did not embrace me . . .” For all the antipathy directed at Mr. Trump, he in fact speaks as the Everyman of America’s selfie politics: Embrace Me! Self-interest, the old normal in politics, has been subsumed by a new normal of insistent self-regard. Running in the background of selfieism, like a cellphone’s unseen operating system, there is in fact a U.S. presidency and a politics inhabited by serious people who are conducting foreign policy, such as North Korea’s ICBMs, or domestic policy, such as a rewrite of the tax code. But who has time for that? The only thing the Democrats’ self-categorizers can see staring back at them from their screens is whatever awful thing Donald Trump has tweeted about . . . Me! Trump, in fact, tweets as the Everyman of America’s new politics: Embrace Me! Mr. Trump, meanwhile, believes that his tweets animate his base, or as he wrote recently when a Twitter factotum shut down his account for 11 minutes, “the word must finally be getting out—and having an impact.” But in Virginia, the butterfly effect of Mr. Trump’s tiny tweets appears to be that it produced historically high turnout for the opposing candidate. We’ll never know whether Mr. Trump is right that Ed Gillespie would have won had he fully embraced “me,” or instead would have lost by another 9 points. It is true that in 2016 Mr. Trump tapped into a winning vein of identity politics, but one may wonder if that strategy is already losing its utility. Even aggrieved white males BOOKSHELF | By Andrew Stark don’t much care for being someone’s identity group. You don’t hear much about this swath of Trumpian voters anymore. Media anthropologists have stopped visiting their tribal villages in Pennsylvania and Michigan. But a Wall Street Journal/ NBC poll this week of “Trump counties,” where collectively Mr. Trump defeated Hillary Clinton 57% to 37%, found his disapproval rating touching 50% this month. That is another sick canary. Meanwhile, the anti-Trump and Never-Trump factions remain in a state of 24/7 paroxysm. Democrats may conclude that the path back to power is with a coalition of people in a lather over Mr. Trump, and they may be right. The selfie president’s angry tweets could create a tsunami of even angrier selfie voters, like those in Virginia, that will wash over GOP candidates. The Democrats can self-destruct. The identity politics in which they’ve become mired is neurotically combustible, with the categories constantly denouncing nominal friends for arcane offenses such as “cultural appropriation.” Late in the Virginia campaign, when Mr. Northam waffled on embracing sanctuary cities, a major progressive group branded him a “racist.” The party’s identity police never sleep. The Republicans have a Twitter problem, but the Democrats have a crazy-left problem. Voters will get more chances to take their pick in this race to the bottom. Write email@example.com. A Mass Extinction for Virginia Republicans By Karl Rove T he Republican defeat in New Jersey is unsurprising. The deep-blue state went for Hillary Clinton by 14 points, and on Tuesday the next governor, Democrat Phil Murphy, won by 13. The Republican nominee, Lt. Gov. Kim Guadagno, simply couldn’t escape the gravitational pull of her unpopular boss, Gov. Chris Christie, whose favorability in exit polls was a sad 22%. The GOP’s loss in purple Virginia is far more problematic, with grave ramifications for the 2018 midterms. Mrs. Clinton carried the state by 5 points, but Democrat Ralph Northam won the governorship Tuesday by almost 9. That’s hardly the worst part. The Republican nominee, Ed Gillespie, took about 11,000 more votes than former Gov. Bob McDonnell did in 2009 when Mr. McDonnell won that year’s race with 59%. In fact, Mr. Gillespie won more votes than any Virginia GOP gubernatorial candidate in history, yet he netted only 45%. In 2013 the GOP’s nominee for governor took 45.2%, even though he collected 100,000 fewer votes than Mr. Gillespie did. The difference is that turnout this year was up 16% from 2013. Most of the additional voters were white independents and Democrats in the suburbs who wanted to send President Trump a message. Turnout in the Northern Virginia suburbs of Washington was way up from four years ago—by 23% in Fairfax County, 26% in Alexandria and Arlington County, and 31% in Loudoun County. That tilted the state’s electorate Democratic by 11 percentage points, compared with 7 last year and 5 in 2013. Trump deflects blame, but the GOP lost because voters wanted to send him a message. Exit polls showed that only 22% of Virginia voters strongly approved of Mr. Trump’s job performance, versus 47% who strongly disapproved. Just 17% said their vote was meant to express support for Mr. Trump, versus 37% who wanted to signal opposition. Yet on the issues, Virginians don’t uniformly disagree with the president. In the exit polls 57% said Confederate statues should be left in place. Still, independents are weary of Mr. Trump’s tweets, divisiveness and unpresidential rhetoric. Democrats just want to sock him politically in the nose. Mr. Trump responded to the defeat by saying Mr. Gillespie “did not embrace me or what I stand for.” This is presidential self-deception. Mr. Gillespie won 95% of Republicans, 7 points more than Mr. Trump last year. The president is spurring Democrats to the voting booth while letting his own base drift away. His job approval in the Real Clear Politics average is 38%, 8 points below his share of the vote last November. In other words, 1 out of 6 people who cast ballots for Mr. Trump disapprove of his performance. This showed up in Southwest Virginia and the Shenandoah Valley—the commonwealth’s Trump Country. Mr. Gillespie carried these areas by impressive margins, but turnout was either down or simply not up as dramatically as in the antiTrump suburbs. Consider, too, the GOP mass extinction in the Virginia House of Delegates. Before Tuesday, Republicans held 66 of the chamber’s 100 seats. Now the most likely outcome is a 50-50 tie. As of Wednesday, Democrats had won 48 seats and Republicans 47, with five contests being recounted. Among the GOP casualties were many incumbents who toed the Trump line. Fortunately for Republicans, the state Senate isn’t up for election until 2019. The GOP’s 21-19 majority there is likely to be the party’s only foothold in Richmond. Mr. Gillespie did win independents statewide, 50.5% to 48.9%. He also poached some Democratic voters in the Richmond area, across the state’s Southside, and even in the northern suburbs. But Mr. Northam pilfered Republican votes in Tidewater areas that he previously represented in the state Senate for six years. Therein may be the only good news from Virginia for the GOP. Mr. Northam is a Gulf War veteran and pediatric neurologist who voted for George W. Bush twice and who once toyed with becoming a Republican. He appealed to independents in a way that Trump-hating left-wing Democrats can’t. As the campaign progressed, Mr. Northam put aside attacks on Mr. Trump and pledged to work with the president on behalf of Virginia. He flip-flopped on sanctuary cities, abandoning his support and coming out for cooperation with federal immigration authorities. When Democrats pick their candidates for the U.S. House and Senate in 2018, they are unlikely to choose many Ralph Northams. Most Democratic activists are insisting the party nominate only ideologically pure candidates in the mold of Bernie Sanders and Elizabeth Warren. Nevertheless, the results Tuesday from Virginia should set off alarm bells for Republicans. Mr. Trump’s poor standing threatens their congressional majorities. He must try to improve his numbers, and the GOP must prepare itself for an extraordinarily tough battle. For Republican officeholders, this is life in the Trump presidency’s shadow. Mr. Rove helped organize the political-action committee American Crossroads and is the author of “The Triumph of William McKinley” (Simon & Schuster, 2015). Victory Against ISIS—in the Philippines By Ian J. Storey P resident Trump’s visit to Asia is designed to reassure friends and allies that America’s commitment to regional security remains solid. But the U.S. already demonstrated that commitment in the southern Philippines over the past five months. The Trump administration honored the terms of America’s 66-year alliance with the Philippines and helped defeat Islamic militants occupying the city of Marawi. That is remarkable because President Rodrigo Duterte seems determined to downgrade that alliance. Last year he called President Obama a “son of a whore.” A month later, he visited Beijing and declared his country would move closer to China. But when Islamic State took over the city of Marawi and encouraged jihadists from around the region to join the fight, the Philippine military immediately turned to the U.S. for help—apparently without seeking Mr. Duterte’s permission. Washington responded immediately by delivering several hundred rifles, pistols and grenade launchers. More important, the U.S. provided the Philippine army with the eyes and ears required for victory. American drones and aircraft flew over America’s alliance with Manila is strong despite Duterte. the city, giving Filipino soldiers a real-time picture of the battlespace. The U.S. supplied vital intelligence on the militant leaders. And U.S. forces passed on hard-won lessons from urban warfare in Iraq and Afghanistan. According to the Philippine military’s chief of staff, Gen. Eduardo Ano, American support “tilted the balance” against the Islamic extremists. Even Mr. Duterte reluctantly acknowledged America’s critical role in the fight to retake Marawi, which claimed more than 1,000 lives. Assistance from China and Russia was less than impressive. At the height of the conflict, China donated 6,000 rifles and nine million rounds of ammunition worth $7.3 million. But the Philippine military prefers U.S.-manufactured arms and immediately turned over half the Chinese weapons to the police. In late October, Russia gave the Philippine military 5,000 Kalashnikov rifles, four trucks and a few thousand steel helmets. These were of little value because Mr. Duterte had declared an end to hostilities in Marawi a few days earlier. Although Manila has established tentative defense ties with Beijing and Moscow, the Philippine security establishment clearly prefers to stay close to the U.S. Most Filipinos are wary of China because of its bullying in the South China Sea, where the two countries have serious territorial and maritime boundary disputes. Chinese forces have obstructed the resupply of Philippine outposts and built military bases on reclaimed land. Since Mr. Duterte shelved a July 2016 legal judgment on the dispute that favored Manila, tensions have been in abeyance. But the conflict will inevitably flare up again. The Marawi siege showed that the U.S.-Philippine alliance remains strong despite Mr. Duterte’s rhetoric. The U.S. took a longer view of the relationship and honored its commitments. Mr. Trump can point to that record to show his commitment to America’s security partners in Asia. Mr. Storey is a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore. Awe in Search Of Understanding The Meaning of Belief By Tim Crane (Harvard, 207 pages, $24.95) C an atheists ever attain the kind of spiritual uplift that religion provides? Can this mundane world ever deliver the serenity offered by genuine belief in an eternal world beyond? Yes, say many nonbelievers. The atheist thinker Sam Harris claims that he has attained (with intermittent boosts from psychotropics) a “beatific” and “egoless communion” with the “beauty of nature,” one that gives him a comfort and joy akin to a certain kind of religious feeling. Perhaps many of us—in moments when we are confronted with profound beauty—experience an awe of the cosmos so intense that we perceive ourselves merging into it, a part of the whole. But it will probably be a fleeting moment; most of us will find it difficult to achieve a steady sense of egoless communion in the drabness and drudgery of everyday life. In “The Meaning of Belief,” the philosopher Tim Crane is less eager to investigate the religious-like feelings that atheists may experience than to challenge the assumption that belief brings consolation, let alone jubilation or rapture. What defines religious belief? For Mr. Crane, it’s the conviction that (in William James’s words) an “unseen order” governs the universe— an order that is beyond cognition, perception or any other human faculty to fully grasp. This otherworldly aspect is one reason why belief must be accepted in a leap of faith, however much reasoning may be directed toward it afterward. An unseen order, Mr. Crane says, is common to all religious traditions: It is something beyond “what is encountered in experience and science . . . beyond our finite human understanding.” The believer thus experiences belief not so much as truth but as meaning: an ultimate meaning that he can’t specify because it is, by definition, beyond his ken. But a belief in meaning, Mr. Crane says, “is not always something that makes the world easier to understand,” though atheists often attack religion for its anodyne simplicity and easy comforts. “In fact,” Mr. Crane writes, belief “can make the world harder to understand—this is one lesson we can draw from the problem of inexplicable suffering and evil.” Or, one might add, death, another aspect of reality that may confound the capacities of even the most ardent believer. Only the saintly, Mr. Crane implies, can manage the religious struggle for comprehension successfully. For the ordinary believer, recurrent doubt will prevent “the kind of unproblematic solace in the face of death that many atheists think is part of the point of religious belief.” Though nonbelievers fault religion for its comforting simplicities, belief doesn’t always make the world easier to understand. Mr. Crane has other sharp observations to make about religion. Not for him the fashionable idea that one can mix and match to taste—a pinch of Christianity with a dollop of Judaism topped off with a drizzle of Mahayana Buddhism. Religious belief, he says, requires the repeated performance of rituals within an established communal setting. This stricture and others—e.g., the need to stay loyal to one’s faith in the way “a faithful friend sticks with you in good times and bad”—seem to place religion out of the grasp of many who, these days, think of themselves as believers. Taking Mr. Crane’s eat-your-spinach view of religion in the context of recent philosophical writing, you’d almost think that the original question should be turned on its head. Can believers, agonizingly wrestling with ultimate meaning and the quest to understand it, ever achieve the kind of Age of Aquarius uplift that atheists like Mr. Harris access simply through the awe they feel in the presence of natural beauty? The answer would seem to be “no” or “only rarely,” but there’s a missing middle between these poles undiscussed by Mr. Crane: wonder. It is here that incongruent worldviews may overlap. As a noun, a wonder is something worthy of awe. As a verb (“I wonder”) it signifies the quest to understand. Both may be elements of religious experience, of course. But it’s precisely in taking the awe of which Mr. Harris speaks, and marrying it to the quest to understand that Mr. Crane discusses, that many scientists say they experience a kind of religious exhilaration. Awe, as the biologist Richard Dawkins tells us—whether provoked by something beautiful like a rainbow or unnerving like a black hole—is what instills in scientists their thirst to understand. For scientists, Mr. Crane emphasizes, meaning follows understanding, and not the other way around. They test hypotheses and assumptions (whether empirically or through mathematical reasoning) before accepting whatever meaning they discover. And meaning, again, is the operative word. As Mr. Crane notes, scientists are never quite sure that they have hit on the truth. What they discover is, rather, formulations that make ever better sense of reality—until new formulations prove to be better still. Religion and science, Mr. Crane argues, are fundamentally different enterprises, so much so that, contrary to what some militant atheists hope, science will never replace religion. Even so, they need not be seen as utterly alien realms, without any chance of rapport or mutual sympathy. There’s another pertinent word that Mr. Crane neglects: numinous. Rooted in the Latin “numen,” meaning divinity, it refers to the halo of impenetrable meaning we sense whenever we feel moved by nature, whether in its jawdroppingly awesome forms or in the quietly everyday. Einstein spoke of “something we cannot penetrate.” What is that ineffable “something”? It’s the conviction of an ultimate meaning of the sort Mr. Crane discusses but not one that abides in an inaccessible world beyond. Instead it emerges, as a whole does from the sum of its parts, out of the sun and stars and sea and sierra: the very things into which Age of Aquarius types hope themselves to somehow merge. Scientists, and not just philosophers, are helping bring nonbelievers closer to believers. And that’s a good thing. After all, as Mr. Crane says, they’re going to be together for a long time: perhaps an eternity. Mr. Stark is the author of “The Consolations of Mortality: Making Sense of Death.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A16 | Thursday, November 9, 2017 OPINION R REVIEW & OUTLOOK LETTERS TO THE EDITOR The Anti-Trump Wave Is GOP Tax Trying to Change Demographics? epublicans took a thorough beating in the polls. A Trump majority coalition doesn’t Tuesday’s elections, and no one should seem to be forming. sugar coat the results because the voting Mr. Trump’s media allies are blaming Mr. was confined to a few states. Gillespie for not being TrumDemocrats come out in pian enough, but days before Democrats came out in droves to send a message of opposielection former White droves and the GOP is the tion to Donald Trump, and GOP House aide Steve Bannon was caught in the undertow. saying Mr. Gillespie might win candidates were swamped in the undertow. While the cliché because he had endorsed is not to read too much into an Trumpian themes of crime off-year election, this defeat was broad and deep and immigration. enough to signal that Republicans will struggle The truth is that Mr. Gillespie tried to span the to hold Congress next year. GOP coalition by campaigning on traditional The Democratic sweep in New Jersey and es- themes of tax cuts and education reform while pecially Virginia is in that sense a mirror image running against illegal immigration and sanctuof what Republicans did in 2009 in opposition ary cities. The media portrayed the latter as divito Barack Obama. Chris Christie won in the Gar- sive and racist, but note that Mr. Northam came den State that year and after two mostly failed out against sanctuary cities late in the campaign. terms Democrats are taking Trenton back under Mr. Gillespie did the best he could to bridge the public-union control. Governor-elect Phil Mur- GOP divide in a Democrat-leaning state, but he phy, a former Goldman Sachs millionaire, is a couldn’t overcome the anti-Trump wave. 360-degree progressive who wants to raise The message for Republicans going into 2018 taxes, increase spending and in the process will is that they are in trouble in the swing suburban drive even more taxpayers from the state. districts where the House will be won or lost. The more consequential message came from Republicans hold seats in 23 districts where Virginia, where Democrats swept the major Mrs. Clinton also won. One is the 10th Congresstatewide offices and may have picked up the sional District in North Virginia held by the esti17 seats they needed to take over the House of mable Barbara Comstock that includes much of Delegates. Ralph Northam, the lieutenant gover- Loudoun County. Democrats will run as a check nor who beat a Bernie Sanders acolyte in the on Mr. Trump, and Republicans need a response primary, spent most of his time and money beyond a Nancy Pelosi fright mask. wrapping Donald Trump around Republican Another message is that the GOP success candidate Ed Gillespie. down-ballot during the Obama years can go rapRepublicans can take little comfort that Hil- idly in reverse. That’s clear from the GOP rout lary Clinton defeated Mr. Trump by five points in the Virginia House of Delegates. But there’s in 2016. Mr. Gillespie lost by nine and he badly also evidence from Rob Astorino’s defeat as exunderperformed in Northern Virginia, home ecutive of Westchester County in New York, a to federal employees and white, college-edu- state Senate seat in Washington that gives Demcated suburbanites who dislike Mr. Trump’s ocrats a majority, and a GOP incumbent mayoral polarizing politics by insult. In his 2014 near- loss in Manchester, N.H. American politics is miss Senate race, Mr. Gillespie won pivotal more national than ever, and if Mr. Trump’s apLoudoun County by 456 votes. On Tuesday he proval rating stays at 38% next year, the GOP’s lost it by 23,432. state gains could wash away. i i i Mr. Trump tried to distance himself from the Mr. Trump won’t change, so the only GOP andefeat by tweeting from Asia that “Ed Gillespie worked hard but did not embrace me or what tidote to a Democratic wave is legislative acI stand for. Don’t forget, Republicans won 4 out complishment. Democrats will be motivated to of 4 House seats, and with the economy doing vote no matter what Congress does. But Repubrecord numbers, we will continue to win, even licans will stay home unless the House and Senbigger than before!” Sometimes Mr. Trump’s ate fulfill their campaign promises. This means comments are so transparently false you won- passing a pro-growth tax reform that will accelerate the expansion. Republicans should also reder if he’s laughing as he writes. Earlier on Election Day he tweeted support alize how much damage they have done to themfor Mr. Gillespie, whom he endorsed. The victo- selves by failing to repeal even a part of ries in GOP-leaning House districts Mr. Trump ObamaCare. More broadly, the election shows that the cites were also far closer than they should have been. Mr. Trump is motivating Democrats to American system of democratic checks and balvote while his divisive style and rhetoric are di- ances is working. All the media and academic viding Republicans. A Trumpian candidate panic about looming fascism has been nonsense. nearly beat Mr. Gillespie in the primary and re- The tides of politics ebb and flow, and Tuesday’s fused to endorse him until the end of the cam- results show that the Trump years are likely to paign as Mr. Gillespie appeared to be gaining in be good for Democrats. C The College Tax-Reform Tantrum olleges have been rocked by student pro- borrowers who become government and nontests, but now they’re launching a dem- profit workers. Cancelled debt under other loanonstration of their own in Washington forgiveness programs is typically taxable, but against reductions to their tax not for this privileged class. Higher ed howls at the subsidies. They’re throwing a All of these subsidies have tantrum because they may, at failed to make college more afmodest cut in subsidies long last, have to rationalize fordable. Colleges instead in the House bill. their spending. pocket the subsidies and jack The IRS code contains up tuition, which they steer about a dozen individual tax into bloated administration subsidies for higher education, all with disparate and facilities. Over the last decade, tuition has rules that the IRS describes in a 95-page bro- risen at an annual inflation-adjusted 2.4% at prichure that makes academic prose look lucid. Par- vate, and 3.5% at public, four-year colleges. Soarents and students can claim three different tax ing college costs are the main reason student credits, deduct loan interest, and receive an ex- debt has doubled since 2009 to $1.3 trillion. Stuemption for some discharged loans and tuition dents are also taking longer to finish, perhaps assistance. in part because taxpayers are footing much of These dispensations are layered on top of the tab. low-interest federal loans (4.45% for underGovernment grants, loans and tax credits also grads), grants and loan-forgiveness programs. give students less reason to work during school. The Congressional Budget Office estimates that Alternatively, their parents can write off their the government will lose about 25 cents on every college costs. This may help explain why labordollar of subsidized Stafford loans. force participation over the last decade has deColleges that have been riding this gravy clined by 5.4 percentage-points among Ameritrain are howling that Republican House reforms cans age 16 to 24 compared to 1.6 percentagerepealing and consolidating their tax carveouts points from 25 to 54. will raise tuition. But stripping down the subsiCollege leaders also complain that the House dies might make students and parents more bill doubles the standard deduction, which aware of costs and impel colleges to curb unnec- means fewer middle-income households will essary spending. itemize. They say this will reduce charitable givTake the three tax credits, which the House ing and alumni donations. If that’s true, they rebill proposes to combine into a partly refundable ally need to work on alumni enthusiasm. $2,500 American Opportunity Tax Credit that Some public colleges have also groused that can be claimed for up to five years. This simplifi- the elimination of the state and local deduction cation would yield about $17.5 billion in revenue could discourage tax increases in states like Conover 10 years and reduce the enticement for stu- necticut and New York. They’re worried that dents to drag out their education. The Lifetime Democrats will instead cut funding for public Learning Credit, which is part of the consolida- colleges. tion, can now be claimed indefinitely. They have a better point that the GOP’s 20% Parents and students would also no longer be excise tax on compensation of nonprofit employallowed to write off tuition (cost: $3.9 billion in ees that exceeds $1 million is arbitrary and med2015) and interest on student loans ($13.6 bil- dles in wage-setting that Congress shouldn’t do. lion), which receive singular treatment in the tax The House also slaps a 1.4% excise tax on investcode. Interest on other non-mortgage personal ment income of private college endowments loans is subject to taxation. Individuals have also (which private foundations must also pay) that been able to claim these above-the-line deduc- exceed $250,000 a student. We’d prefer ending tions even if they don’t itemize. the charitable deduction rather than taxing enThe GOP bill would also tax “tuition waivers” dowments, but as endowments grow so will pothat colleges often use to pay grad students in litical interest in taxing them. i i i kind. These effectively let colleges employ teachIf they’re really concerned about student weling assistants as indentured servants and have contributed to a surfeit of graduate degrees in fare, colleges could make up for the decline in fields for which there are few jobs beyond aca- tax subsidies by scaling back spending and tudemia. Maybe colleges could try paying TAs a ition. Purdue University President Mitch Daniels has held tuition flat since 2012, so it can be done. better wage. The reforms would continue to encourage College leaders howl that Republicans are thrift by letting parents sock up to $28,000 an- squeezing students to pay for corporate tax cuts. nually in 529 college savings accounts that grow But college graduates would benefit from a simtax free. However, it’s unfortunate that the plan pler tax code with fewer distortions that proretains a tax exemption for discharged debt of duces more growth and higher wages. Regarding your editorial “Half a Tax Reform” (Nov. 3): The state and local tax deduction (SALT) is a great, great feature of this tax bill. Making SALT nondeductible raises the total marginal rate (federal plus state) on high earners. Say the top federal rate remains at 39.6%. In California, where the top state rate is a ridiculous 13.3%, the total rate will jump from 47.6% (for those itemizing) to an exorbitant 52.9%. States like New York, New Jersey and California will face political pressure to lower their state income taxes. States that refuse risk losing their wealthiest residents to other states. Either way, there will be a downsizing of state government in places where it is now most bloated. GEOFFREY NUNN Palm Harbor, Fla. It appears that many senior citizens will be hit with higher income taxes. In 1983 Congress started taxing Social Security benefits of retirees whose income plus one-half of their Social Security benefits exceeded $32,000. The purpose was to tax those with generous pensions or large investment income, i.e., the rich. It was estimated that about one in 10 retirees would be affected by this tax. Since they didn’t index the income threshold, now more than one in three retirees have their benefits taxed. I did a quick calculation using the proposed tax tables and found that I would owe almost five times what I estimate my 2107 taxes will be if this plan were in effect this year. BOB MORTON Urbandale, Iowa You ask, “Does anyone think that a mid-level manager at J.P. Morgan deserves a subsidy to raise children?” Absolutely, when he or she loses their SALT deduction. Why is the editorial board so intent on punishing middleclass salarymen (and women) who reside in places such as Long Island and the San Francisco Bay area, so that the uberrich can avoid paying estate taxes (on amounts exceeding $22 million) and the AMT? Yes sir, we blue states sure are sucking poor Alabama, West Virginia and other red states dry. Enjoy the schadenfreude as some of this country’s most productive workers might have to pay for this absolutely stupid piece of proposed legislation. This isn’t your father’s GOP. JAY BUKOWSKI Mill Valley, Calif. If there were ever a credit to support, it would be the child tax credit. It helps raise children out of poverty and provides a well-deserved break to hardworking parents. The time and resources parents pour into their children should be encouraged, so Republicans should keep it in the tax bill. CHRIS JEUB Monument, Colo. The big losers in the GOP tax plan are homeowners with big mortgage and property tax payments, mostly Republicans, and the winners are renters—disproportionately Democrats. Betraying your base is an odd strategy. Nondeductibility of mort- Remember Broken Promises To Our Friends the Kurds Regarding Ruth Wisse’s “When Britain Renewed the Promise to the Jews” (op-ed, Nov. 2): Just as the British started the process for the Jewish people to have their own state with the Balfour Declaration, the Kurdish people were also promised a home. The first was the SykesPicot Agreement in 1916. This promise was then confirmed with the Treaty of Sevres in 1920. It didn’t take long (1923 with the Treaty of Lucerne) for the western powers to break their promise and place the Kurdish people in the hands of Turkey, Iraq and Syria. The Kurdish people have been one of the mainstays in our fight against ISIS and all of its associated groups. The Kurds are one of the most organized and successful groups in the Middle Eastern world. Without the Kurds we would have had to sacrifice many more men and would have had increased equipment costs. Instead of support, we have barely provided them with proper weaponry for this current fight and have only rewarded them with broken promises. The future for the Kurdish people isn’t looking much better at present. If this is the way we treat our friends, is it any wonder we have so many enemies? WILLIAM F. HINESER Arvada, Colo. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. gages over $500,000 means that homes over $625,000 can no longer be purchased with 20% down and a fully deductible mortgage. Do you think your house is worth more than $625,000? Not anymore. JAMES TALEVICH, CPA Los Gatos, Calif. Can Americans ever hope the tax code will focus on its primary purpose—funding government—instead of income redistribution and social engineering, with everyone contributing something, instead of nearly half the filers paying nothing? Probably not, as long as power-hungry politicians are addicted to campaign donations from lobbyists supporting special tax breaks. DONNA ROOK Colorado Springs, Colo. I haven’t seen the Journal give the real reason for the bill at this time. The GOP correctly understands wellheeled Republicans on the liberal coasts are of little value to the party. The solution? Create significant incentives to force migration to those states or districts where a Republican vote actually counts. For the record, I am a coastal Republican who is caught squarely in the crosshairs of this tax increase. JOHN LEIBEE Rumson, N.J. This bill is akin to the GOP’s Brexit from every blue state in the country. It’s mean-spirited and intended to punish those of us with the misfortune of living in high-tax-and-spend states that didn’t vote for the Tweeter in Chief. After today there is no longer any overlap in my values and the Republican leadership’s. Want to “pay” for tax cuts? Here’s a novel idea: Cut spending. That was the Republican Party I was attracted to. HUTCH PEGLER Darien, Conn. A question for Congress: With the elimination of the medical-expense deduction, must we mortgage our home to see some tax relief for the cost of uninsured medical/dental/expense and long-term-care insurance? The proposed tax plan penalizes the ordinary family, not to mention those facing catastrophic medical issues. JOANNE YENDLE Woodway, Texas The Trump tax proposal would eliminate the itemized deduction for medical expenses now set at over 7.5% of adjusted gross income. I am 90 and can’t walk, and my medical expenses (helpers and equipment) are tremendous. Talk about mean-spirited. HERMAN MORRIS Plano, Texas The 702 Program Really Amounts to Bulk Snooping Regarding David Medine and Patricia M. Wald’s “Reform Surveillance, Don’t End It” (op-ed, Oct. 30): The authors’ argument falls apart almost immediately when they state that the 702 program only has 100,000 “targets” and doesn’t, therefore, constitute indiscriminate bulk surveillance. However, if the 100,000 targets communicate with 30 others, who in turn communicate with 30 others, then you have potentially 90 million people under surveillance. Face it, this is bulk surveillance. JAMES LOVELY Lakeland, Fla. Sometimes Responsibility Belongs to the Afflicted In response to Dee Tezelli’s question: “Who will be deemed culpable if the patient who is obese . . . expires?” (Letters, Nov. 1). That is easy: the patient. We shouldn’t live in a society where people do what seems right in their own eyes but point fingers at others for the consequences of those choices. DAN MELSKI Princeton, N.J. Pepper ... And Salt THE WALL STREET JOURNAL “Thanks, but I’m trying to cut back on personal crises.” 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. Thursday, November 9, 2017 | A17 OPINION By Michael B. Mukasey W hat may be the U.S. government’s most valuable authority to protect citizens from terrorism and other national-security threats is due to expire at the end of the year—Section 702 of the Foreign Intelligence Surveillance Act. The good news is that Congress is considering proposals to renew that law. The bad news is that many of those proposals include burdens that would radically diminish its effectiveness. Worse, some of these ill-considered proposals come from people who claim to support the law. Proposals to amend FISA’s Section 702 would tie the hands of investigators, as in the days before 9/11. Section 702 of FISA allows the government to monitor electronic communications overseas between foreigners. More than a dozen former top-ranking members of the U.S. intelligence community—directors of national intelligence and heads of the Central Intelligence Agency, National Security Agency and other agencies, from administrations of both parties—attest in an October letter to Congress that Section 702 “has helped save lives in the U.S. and abroad by providing information to law enforcement that was used to interdict planned terrorist operations” and helped save “U.S. and allied military lives by providing warning of impending attacks, ambushes, and suicide bombers.” I was one of the signers. Why the urge to limit Section 702? The law focuses on obtaining the email and voice communications of foreigners—“non-U.S. persons,” in the legal parlance—to gather information relevant to foreign intelligence. But those communications at times are with U.S. persons, whose messages thus will be captured incidentally. The law bars the purposeful gathering of information on U.S. persons in the guise of trying to gather foreign intelligence, known as “reverse targeting.” Once in an intelligence agency’s database, however, these incidentally gathered messages of U.S. persons may be included in searches as part of another investigation. Some describe such a query of the database as a “backdoor search” and believe that because it does not require a warrant, it violates the Fourth Amendment. Every court that has examined the question has disagreed. Barring the use of these queries in criminal investigations would bring back the pre-9/11 “wall” between national-security and criminal investigations, which the Clinton administration put in place in the belief that FISA required it. It was that wall that kept FBI agents from getting intelligence information that would have helped them find Khalid Al Mihdhar and Nawaf Al Hazmi, two of the 9/11 hijackers, in August 2001. It turned out, based on a post-9/11 ruling of the Foreign Intelligence Surveillance Court of Review, that the statute didn’t require the wall. The bureaucrats who erected it ISTOCK/GETTY IMAGES Don’t Rebuild the Surveillance ‘Wall’ thought mistakenly that they were protecting civil liberties. Still others would require a warrant from a FISA court before the database is queried with the name of a U.S. person in a criminal investigation. Writing on these pages recently, David Medine and Patricia Wald, who served on the Privacy and Civil Liberties Oversight Board, cite fears stemming from a newspaper report that the Section 702 database includes communications from which it is possible to draw a personal portrait of innocent Americans. But they concede that neither they nor the oversight board have been able to corroborate that claim. These friends of the program overlook the history of investigations conducted since Section 702 went into effect and seem to misunderstand the very nature of investigations. There is no evidence that there has ever been a purposeful violation of Section 702’s terms, or any review of the kind of detailed information that newspaper reports suggested. Further, an investigation is a search for information, not a search to confirm information already in hand. A search for a “hit” on a database is among the least intrusive inquiries possible, and is often made at the outset of an investigation. A showing of probable cause to believe that evidence will be found, which is what it takes to obtain a warrant, is nearly impossible at that stage—or would require more-intrusive techniques to obtain facts, which would compromise privacy much more than a mere database search. To the extent that any tightening of procedures under Section 702 may be useful, it would be to require permissions not when a database is searched, but when evidence from intercepted communications is to be used—for example, as part of a presentation to a grand jury to secure an indictment, or to a judge to get a search warrant, or to a trial jury to get an indictment. At that point, the permission of a senior officer of the Justice Department could be secured. Such a requirement would ensure that neither privacy interests nor sensitive sources of intelligence-gathering are needlessly compromised. Returning to pre-9/11 procedures by limiting Section 702 authority is likely also to take America back to the post-9/11 anguish of investigations into why available intelligence was not used, why dots were never connected. This time the fault would lie not with the intelligence community but with lawmakers who exploited mistrust of government to frustrate the collection and use of intelligence information—a function that only government can perform, and that it must perform, if we are to survive. Mr. Mukasey served as U.S. attorney general (2007-09) and a U.S. district judge (1988-2006). The Middle-Class Tax Cut That’s Really a Hike By Jason Furman L ast week Speaker Paul Ryan introduced the House GOP tax bill, claiming it would “deliver real relief for people in the middle.” Specifically, he said a “typical family of four would save $1,182 a year on their taxes.” Mr. Ryan reiterated the number four more times during a three minute briefing. This is true, but only for the first year of the tax bill. After that the story gets grimmer. Under the House plan, a family making $59,000 would pay more in 2024 than they did last year. The cuts Mr. Ryan trumpeted would phase out over time, as David Kamin, a law professor at New York University, has shown. By 2024 Mr. Ryan’s hypothetical middle-class family making $59,000 would actually face a small tax increase. By 2027 that increase would grow to more than $450. Add in the effects of reducing or eliminating tax benefits many middle-class families now claim—for child care, major medical costs and higher education—and the “real relief” promised by Mr. Ryan starts looking more like a burden. Using the American Enterprise Institute’s TaxBrain model, economist Ernie Tedeschi estimates the plan would result in more than 20 million households sending larger checks to the Internal Revenue Service in 2018. By 2027 more than 60 million households would be paying higher taxes. This isn’t surprising given that, in the aggregate, the House bill raises taxes on individuals. Over 10 years the plan cuts taxes by $1 trillion on businesses, $230 billion on individuals and $170 billion on estates, according to the Joint Committee on Taxation. While the business- and estate-tax cuts grow after that, the individual tax cuts shrink—disappearing entirely in 2024 and transforming into a net tax increase of $28 billion in 2027. This is partly due to the necessity of holding down the bill’s headline costs by sunsetting the family tax credit. This budget gimmick means the ultimate cost of the House plan would exceed the claimed $1.4 trillion. But even if the family tax credit were made permanent, the net individual income tax increase would only be delayed by a few years. The number of households facing a tax increase would fall only slightly. As a matter of straightforward accounting, this bill will not provide middle-class families with the individual income tax cut President Trump and Speaker Ryan unambiguously promised. A complete analysis of the effect this bill would have on Not the Kindest Cut Tax change for a married couple with two children making $59,000 $600 400 200 0 –200 –400 –600 –800 –1,000 –1,200 ’18 ’19 ’20 ’21 ’22 Source: David Kamin, New York University Law School middle-class households would also incorporate the economic impact and incidence of two other elements of the House bill: a $1 trillion reduction in business taxes and the increase in the debt needed to finance the plan, which will likely be even larger. Proponents of the tax bill argue that it will lead to dramatic increases in wages. Such claims are dubious. Mr. Trump’s Council of Economic Advisers has claimed that a $4,000 per household raise constituted the “very conservative . . . lower bound” of the wage effects stemming from the bill’s corporate rate cut. This claim has since been rejected by six of the economists the council cited to make ’23 ’24 ’25 ’26 ’27 THE WALL STREET JOURNAL. its argument. Every specific analysis by a right-leaning economist or think tank that I am aware of has come in below the CEA’s lower bound. Beyond the wage claims, however, projections from conservative economists either ignore or don’t address adequately the macroeconomic effects of higher debt stemming from the loss of revenue to the federal government due to the tax cuts. The costs of reduced capital accumulation and increased foreign borrowing will reduce national income over time. The Penn Wharton Budget Model— run by Kent Smetters, who helped build the dynamic scoring models used by the George W. Bush Treasury—finds the small wage boosts produced by the House bill could dissipate over time, eventually becoming small wage declines. More important, the debt financing will likely have to be paid for through tax increases or benefit cuts on the same middle-class families Mr. Ryan surrounded himself with at last week’s press conference. Unfortunately, the cost of this ill-advised reform will eventually be paid by future generations of American taxpayers. Winners and losers are inevitable in any serious overhaul of the tax code. The House plan contains some commendable elements—like limiting the mortgage-interest deduction— that could be part of a sensible reform and spur economic growth. But by raising taxes on middle-class families and delivering so many of the long-run benefits to households making more than $1 million, the House plan as currently constructed will not deliver the broad-based relief Mr. Ryan is promising. Reforming the tax code to foster economic growth benefiting all Americans will require a plan that is less tilted toward large cuts for highincome households, less likely to increase the national debt, and less of a burden on middle-class households. Congress should go back to the drawing board. Mr. Furman, a professor of practice at the Harvard Kennedy School, was chairman of the White House Council of Economic Advisers, 2013-17. My Grandparents Saw Light, Even After the Dark of Kristallnacht By David Stras T his week marks a cruel yet hopeful anniversary. On Nov. 9-10, 1938, a two-day period now known as Kristallnacht, Nazis plundered Jewish homes, schools and businesses across Germany. My grandfather, only 14 at the time, recalled seeing Jewish stores looted, books burned, and signs saying “kill the Jews.” Two days later, he received a letter from his family saying that his father, my great-grandfather, had been taken to Dachau, which we now know was the equivalent of a death sentence. It has never been easy to come to grips with my family history. My aunt recently completed a family tree going back centuries; many of its branches end abruptly in the late 1930s and early 1940s. These names, no more than entries on a piece of paper to me, represent my heritage, my family—much of it lost in the hollow corridors of concentration camps. I can only imagine how my life would have been different had my grandparents, aunts, uncles and cousins never experienced the merciless brutality of the Holocaust. My grandparents shared bits and pieces of their experiences with me PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Executive Chairman, News Corp Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Matthew J. Murray Deputy Editor in Chief DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head as I grew up, careful to say only as much as they thought I could handle. One day, while riding around on my grandfather’s lap in his electric wheelchair, I asked him, “What is that number on your arm?” Transforming a physical characteristic designed to make him less human into a source of feigned pride, he told me it was a number that made him unique because he was the only person in the world who had it. Only later, as I approached my teenage years, did my grandfather tell me that a fellow prisoner tattooed the number—117022—on his left forearm when he arrived at Auschwitz. Notable & Quotable From “Bergdahl Was on Trial, but So Were His Commanders” by Thomas H. Lipscomb, RealClearPolitics.com, Nov. 8: [Bowe] Bergdahl’s defense counsel, Eugene R. Fidell, noted the prejudicial remarks of President Trump, the commander-in-chief at the time of the Army sergeant’s trial for deserting his post in Afghanistan in 2009. But President Obama’s Rose Garden ceremony with Bergdahl and his parents after the soldier’s 2014 release by the Taliban—which followed a prefatory statement by National Security Adviser Susan Rice lauding Bergdahl for serving his country “with honor and distinction”—can be seen as just as prejudicial in exoneration as Trump’s was in condemnation. Four years ago, on the 75th anniversary of Kristallnacht, I spoke publicly about my grandparents’ experience for the first time. Standing in the rotunda of the Minnesota Capitol, ‘What is that number on your arm?’ I asked one day, too young to have heard of Auschwitz. I read my grandfather’s account of being transported on a freight car to Auschwitz, stripped of civilian clothes upon arrival, and forced to run naked through a cold April rain. My grandfather had the uncommon gift of being able to see the light of human generosity in the midst of near-total darkness. He recounted his experience at the camp hospital, sick and malnourished: German nurses reported to their superiors that they had discharged my grandfather when they in fact transferred him to another room until he was able to recover. Their kindness, he said—which they undertook at great risk to their own lives—saved him from the gas chamber. My grandfather again saw the best and worst in humanity after he agreed to participate in an escape plot. The guards captured three coconspirators, who were hanged in the middle of the camp as a prisoner orchestra played German songs to accompany the spectacle. The men took the secret of my grandfather’s involvement to their graves. Only after years researching their stories and reflecting on their lives do I understand the message my grandparents had tried to impart— one of hope and gratitude, not bitterness or pity. As my grandfather said in a memorial service speech in 1979, we remember those who “lost their lives while fighting for their freedom, the freedom of us and the freedom of mankind.” He emphasized that “we, the survivors, have to let the world know that we will never again allow another Holocaust” and told the audience that “you, and you alone, have the responsibility to speak up for our fallen relatives and friends.” My grandparents always said they were the lucky ones, and that they were left on earth to speak for those who had perished. Their guidepost was humanity, not indulgence in their own sorrow and suffering. They spoke for their friends and family members who were not “lucky” enough to make it, and to ensure that the stories of those who perished did not become footnotes in a dusty history book in the library. Theirs was a message of optimism, intended to ensure that their children and grandchildren were able to lead a life free from the atrocities that they had witnessed. I get it now, grandma and grandpa, and I hope the world gets it now too. Justice Stras serves on the Minnesota Supreme Court and is a nominee for the Eighth U.S. Circuit Court of Appeals. 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. A18 | Thursday, November 9, 2017 WORLD NEWS Priti Patel's departure adds to cabinet woes facing Prime Minister Theresa May BY JENNY GROSS LONDON—The second minister in just over a week resigned from Prime Minister Theresa May’s government, as the British leader tried to regain command after a series of blunders by members of her cabinet. Mrs. May summoned Priti Patel, the international development secretary, back to London from an official trip to Uganda after details emerged about unauthorized meetings Ms. Patel had in August and September with Israeli officials, including Prime Minister Benjamin Netanyahu. Mrs. May said in a letter to Ms. Patel that work with Israel should be done “formally and through official channels.” The development is the lat- est in a quick succession of challenges for Mrs. May, who has struggled to contain political fires and rein in ministers since losing her party’s majority in a June election gamble. The British leader is also grappling with stalled talks on Brexit, the country’s greatest foreign-policy shift in decades, and a wave of sexual-misconduct allegations in Parliament. Defense Secretary Michael Fallon resigned last week following allegations of inappropriate conduct toward women, saying that his past behavior was below the “high standard” of the armed forces. Ms. Patel, a rising star who was largely known for her strong Brexit support, apologized this week for not informing the prime minister and foreign secretary about her meetings in Israel, which she said occurred during an August family vacation. Mrs. May wrote in a letter to Ms. Patel that she had been satisfied with the apology, but had to take action after infor- ROB PINNEY/LONDON NEWS PICTURES/ZUMA PRESS U.K. Minister Quits Over Israel Meetings Priti Patel after meeting with Theresa May on Wednesday. mation had surfaced that Ms. Patel had also met Israeli officials in September in London and New York. “Now that further details have come to light, it is right that you have decided to resign,” she said. “While my actions were meant with the best intentions, my actions also fell below the standards of transparency and openness that I have promoted and advanced,” Ms. Patel wrote in her resignation letter. The international development department said the foreign office was aware of the Israel meetings while they were under way, but not in advance. The political drama played out before Britons on television, as the British Broadcast- ing Corp. tracked the course of the plane bringing Ms. Patel to London from Nairobi. U.K. media converged on Heathrow Airport to await the plane’s touchdown, and waited outside Mrs. May’s Downing Street residence afterward as she met with Ms. Patel. Opposition politicians argued that the prime minister had lost control of her party as the U.K. navigates Brexit. “Theresa May must get control of her chaotic cabinet and decaying government or step aside for Labour to govern,” said Labour lawmaker Kate Osamor. Andrew Rosindell, a Conservative lawmaker who voted for Brexit, countered that he thought the incident wasn’t a big issue for the prime minister. “I think it’s all a storm in a teacup,” he said. “We just have to get on with bigger issues, really.” It has been a rough two weeks for Mrs. May and her cabinet. Foreign Secretary Boris Johnson has come under fire for incorrectly saying a British woman detained in Iran was training journalists, which critics say could lengthen her sentence. Mr. Johnson, who undercut Mrs. May in September when he outlined his own vision for Brexit in a newspaper piece, said later that he could have been clearer when he was discussing the case. The British leader’s No. 2, Damian Green, is under parliamentary investigation for allegedly groping a journalist in 2014. Mr. Green denies the accusations. Mrs. May is navigating tricky terrain as British and European officials prepare for negotiations this week on the thorniest issue so far: The bill the U.K. must settle with the EU over outstanding commitments to the bloc before it leaves. The two sides, meeting in Brussels on Thursday and Friday, must find a way to move past the stalemate before negotiations can move to discussions on the future trading relationship between the U.K. and the EU. GERMANY Economic Council Sees Faster Growth Germany is enjoying a robust economic upswing that could last for some time and which offers good conditions for growthfriendly changes, the government’s Council of Economic Advisers said Wednesday, raising its growth forecast. In their annual report, the advisers known as the “wise men” predicted Germany’s gross domestic product to accelerate by 2.0% this year and by 2.2% in 2018. In March, the government advisers predicted growth of 1.4% for this year and 1.6% for next. Germany’s economy has been enjoying years of steady growth, making it one of the eurozone’s most robust economies. The strong labor market has also helped to balance the country’s budget, which has seen surpluses since 2014. With Germany’s upturn expected to last, the next government is in a good position to implement an overhaul, the report said. The council called for growth-friendly changes, such as tax cuts that would address the issue of bracket creep, whereby workers whose pay barely tracks the rate of inflation can slip into higher tax brackets and end up worse off. —Andrea Thomas ZIMBABWE Mugabe Says Deputy Plotted Takeover Zimbabwe’s president said that he fired his deputy and longtime ally for scheming to take power, including by consulting witch doctors, while Em- merson Mnangagwa said he had left the country after “incessant threats” to him and his family. The demonization of the deposed vice president is the clearest sign yet that President Robert Mugabe, who at 93 years old is the world’s oldest head of state, is preparing his wife, Grace, to succeed him. Mr. Mnangagwa said he was safe but didn’t mention his location. “I will be communicating with you soon and shall return to Zimbabwe to lead you,” he said. Mr. Mugabe spoke publicly for the first time since dismissing Mr. Mnangagwa, who had been seen as the president’s potential successor. Mr. Mugabe told thousands of cheering supporters that Mr. Mnangagwa had plotted to take over since becoming a vice president in 2014. —Associated Press The Face of Change ASSOCIATED PRESS WORLD WATCH Zimbabwe’s President Robert Mugabe, at left with his wife, Grace, at a rally in the capital of Harare on Wednesday. ‘No one will remove the president except God,’ the first lady said. Cory Gaines Head of Product, Network Solutions San Francisco, CA Cory is all about collaborating with customers to create a better user experience. He and his team work tirelessly to develop smarter payment solutions that are technically feasible, business viable, and loved by his customers. It’s one more way our people are helping accelerate the transformation to a value-based healthcare system. Change Healthcare. Inspiring a better healthcare system. changehealthcare.com ©2017 Change Healthcare Operations, LLC. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com PERSONAL TECHNOLOGY: HOW TO LIVE WITH FACEBOOK B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2594.38 À 0.14% S&P FIN g 0.60% S&P IT À 0.49% Thursday, November 9, 2017 | B1 THE WALL STREET JOURNAL. * * * * DJ TRANS g 0.42% WSJ $ IDX g 0.11% LIBOR 3M 1.410 NIKKEI (Midday) 23368.16 À 1.98% See more at WSJMarkets.com Weinstein Operative Played Another Role Woman said to have worked undercover for film mogul also dogged an insurer’s critic BY MARK MAREMONT “Diana Filip,” Israeli undercover operative, meet “Diana Ilic.” A private investigator reported to be working undercover on behalf of film mogul Harvey Weinstein was identified by two people as the same woman that The Wall Street Journal reported over the summer had used a different alias to wring information out of a critic of a large U.S. insurer. The woman in the Journal article had given her name as “Diana Ilic.” The New Yorker, in an article published Monday about Mr. Weinstein’s use of private investigators to counter probes into his alleged sexual abuse, named “Diana Filip” as a pseudonym used by an operative for Black Cube, an Israeli investigative firm. The Journal, in its August article, published surveillance photos of the mystery woman, captured during a July dinner near Philadelphia with an analyst for a research firm critical of the New York-based insurer, AmTrust Financial Services Inc. It’s “the same woman,” said actress Rose McGowan, through her publicist. Ms. McGowan has said Mr. Weinstein raped her. According to the New Yorker, Ms. McGowan met multiple times with “Diana Filip,” the Black Cube op- erative, who was posing as a sympathetic London-based women’s rights activist and who secretly recorded the actress. Ms. McGowan made the identification after seeing photos of “Diana Ilic” obtained by the Journal. An AmTrust spokeswoman didn’t respond to questions sent Tuesday about Ms. McGowan’s identifying “Diana Ilic” as the same woman the New Yorker said was operating for Black Cube. AmTrust has said it hired Black Cube to in- vestigate a former Italian business partner, but it has denied hiring the firm or any private investigators to probe its U.S. critics. In a statement, Black Cube said it is company policy “to never discuss its clients with any third party,” adding that it “applies high moral standards to its work” and operates within the law. Launched in 2011, the firm describes itself as “a select group of veterans from the Israeli elite intelligence units that specializes in tailored solutions to complex business and litigation challenges.” A spokeswoman for Mr. Weinstein, who authorities say is the focus of criminal investigations into his conduct, said he “unequivocally” denies “allegations of nonconsensual sex.” As for the private investigators, the spokeswoman said: “It is a fiction to suggest that any individuals were targeted or suppressed at any time.” A spokesman for Weinstein Co. didn’t immediately respond to a request for comPlease see DIANA page B2 Icahn Probed on Role As Trump Adviser KAREN PULFER FOCHT/REUTERS (2) BY DAVID BENOIT AND TED MANN Arkansas farmer John Weiss in July in a soybean field he claims was damaged by dicamba that had drifted from neighboring fields. Monsanto Argues for Its Herbicide A fight over one of the most powerful new weapons against hard-to-kill weeds, developed by agricultural giant Monsanto Co., is spilling into the courts. Monsanto’s new version of the herbicide called dicamba is part of a more than $1 billion investment that pairs it with new genetically engineered seeds that are resistant to the spray. But some farmers say their nonresistant crops suffered after neighbors’ dicamba drifted onto their land. The agricultural giant in October sued the Arkansas State Plant Board following the board’s decision to bar Monsanto’s new herbicide and propose tougher restrictions on similar weed killers ahead of the 2018 growing season. Monsanto says its herbicide is being held to an unfair standard. Arkansas has been a flashpoint in the dispute: About 900,000 acres of crops were reported damaged there, more Weedkiller Worries Farmers in 25 states have claimed damage to their ﬁelds due to neighbors spraying the herbicide dicamba. Dicamba-damaged acreage based on complaints 10 20 40 thousand acres N.D. Minn. Wis. S.D. Mich. Pa. Ill. Ind. Ohio W.Va. Va. Mo. Ky. N.C. Tenn. Ark. S.C. Miss. Ala. Ga. Iowa Neb. Kan. Okla. La. Source: University of Missouri via Environmental Protection Agency THE WALL STREET JOURNAL. than in any other state. About 300 farmers, crop scientists and other attendees gathered in Little Rock on Wednesday for a hearing on Arkansas’s proposed stiffer di- INTELLIGENT INVESTOR | By Jason Zweig Isaac Newton Learned About Markets’ Gravity Was one of the most immortal scientists in history also one of the world’s most mortal investors? In a recent column on the effort to predict stock-market behavior with principles from geophysics, I cited the losses—reputed to exceed $3.6 million in today’s money—that Sir Isaac Newton incurred speculating on London’s South Sea bubble in 1720. I also cited the remark, often attributed to Newton, that he “could calculate the motions of the heavenly bodies, but not the madness of the people.” Andrew Odlyzko, a professor of mathematics at the University of Minnesota who has extensively studied the history of stock-market ma- 80 nias, has just released a research paper that closely analyzes Newton’s track record as an investor. It turns out that Newton had invested prudently and successfully for many years, diversifying his portfolio across stocks and government bonds worth a total of about £32,000 by the start of 1720 (roughly £4.4 million, or $5.7 million, today.) Newton was among the earliest to spot the potential in the South Sea Co., the global trading firm that was seeking to restructure the growing debts of the British government. Newton began buying no later than June 1712, less than a year after the company was set up, according to Prof. Odlyzko. That was almost eight years before speculating in Please see ZWEIG page B2 Most complaints: Arkansas 900,000 acres camba controls, which Monsanto and some farmers are fighting. The proposed restrictions are subject to the approval of a subcommittee of state legislators. Scott Partridge, Monsanto’s head of strategy, spoke at the hearing, as did proponents of tighter restrictions. Monsanto has criticized some Arkansas state agricultural officials and academics involved in researching and regulating dicamba, accusing them of bias and overstepping their authority. “What the plant board did is very unfortunate for growers in Arkansas,” Mr. Partridge said. An Arkansas State Plant Board spokeswoman declined to comment. Farmers in 25 states submitted more than 2,700 claims to state agricultural agencies that neighbors’ dicamba spraying shriveled 3.6 million acres of soybeans, according to the U.S. Environmental Protection Agency. The herbicide is also blamed for damaging other crops, such as cantaloupe and pumpkins. The complaints have farmers and agricultural researchPlease see WEEDS page B2 Federal prosecutors are investigating Carl Icahn’s former role advising President Donald Trump and the activist investor’s attempts to change an environmental rule that he opposed. Mr. Icahn, an early backer of Mr. Trump’s White House bid, was named special adviser to the president on overhauling federal regulations in December 2016. Mr. Icahn didn’t have an official government role, both he and the White House have said, but the appointment cemented his unofficial status as a sounding board for Mr. Trump. The role had sparked criticism from Democrats and others who alleged Mr. Icahn, a billionaire investor, was conflicted given his ownership in various business entities that are heavily regulated, including an oil refiner called CVR Energy Inc. Mr. Icahn resigned from the role in August. The inquiry into Mr. Icahn, disclosed by his holding company and CVR Friday but only reported on Wednesday, could provide more fodder for critics of the Trump administration who contend that it has INSIDE APPLE’S CAP HITS HISTORIC $900 BILLION SOME MUNIS’ TAX-FREE STATUS AT RISK TECH, B3 BONDS, B11 Pension Fund Executive Pleads Guilty BY JUSTIN BAER Navnoor Kang, a former New York state pension fund executive accused of taking bribes from Wall Street salespeople, pleaded guilty on Wednesday to two counts of fraud. Mr. Kang, who served as head of fixed income at the New York State Common Retirement Fund until early 2016, appeared in federal court and pleaded guilty to conspiracy to commit securities fraud and honest-services wires fraud, under a law that makes it a crime to deprive someone of “the intangible right of honest services.” Prosecutors agreed not to pursue criminal charges stemming from their allegations that he accepted bribes in exchange for steering trading business to certain brokers, and later sought to obstruct federal investigations. “Kang sold himself and his duty to safeguard public retirement money for luxury va- STEVE REMICH FOR THE WALL STREET JOURNAL BY JACOB BUNGE aligned itself too closely with business interests, especially on matters of regulation. Mr. Icahn’s company, Icahn Enterprises LP, said it received a subpoena from the U.S. Attorney’s Office for the Southern District of New York seeking information about activities related to his role as adviser to Mr. Trump and to the Renewable Fuels Standard, the rule he opposed. Echoing Icahn Enterprises, CVR said in a separate filing that the U.S. attorney “has not made any claims or allegations against us or Mr. Icahn” and the company doesn’t believe the inquiry will have a material impact. Mr. Icahn wasn’t available for further comment late Wednesday. “I never had access to nonpublic information or profited from my position, nor do I believe that my role presented conflicts of interest,” Mr. Icahn wrote in his resignation letter to Mr. Trump. “I never sought any special benefit for any company with which I have been involved, and have only expressed views that I believed would benefit the refining industry as a whole.” The White House wasn’t Please see ICAHN page B6 Navnoor Kang, center, outside court on Wednesday cations, jewelry, cash and even drugs,” Joon Kim, the acting U.S. attorney in downtown Manhattan, said. “He has now admitted to his crimes and is a convicted felon.” Tina Glandian, Mr. Kang’s attorney, said: “Mr. Kang pled guilty even though Mr. Kang’s investments proved to be very profitable for the New York State Common Retirement Fund and its members.” She added, “He has accepted responsibility for his failure to disclose gifts during his employment at the fund.” Late last year, U.S. prosecutors alleged that salespeople lavished Mr. Kang with everything from prostitutes and cocaine to getaway weekends, including a ski trip to Utah, and a luxury watch in return for Mr. Kang directing trades their way. Mr. Kang pleaded not guilty to those charges at the time. Two salespeople— Deborah Kelley and Gregg Schonhorn—also were charged in the alleged scheme and ultimately pleaded guilty. Mr. Schonhorn’s lawyer declined to comment. Ms. Kelley’s lawyer didn’t respond to requests for comment. Mr. Kang has denied taking money for drugs and prostitutes, according to a person familiar with the matter. In court, Mr. Kang admitted he received some of the perks including the Utah ski trip, the watch, dinners and concert tickets. But he left out other bribery allegations from his statement, and the omissions weren’t challenged by prosecutors in court. The charges against Mr. Kang exposed a practice many believed had been rooted out of the securities industry Please see KANG page B7 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 | Thursday, November 9, 2017 * *** INDEX TO BUSINESSES THE WALL STREET JOURNAL. BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. C G Gazprom......................A8 General Electric..........A9 General Motors...........A9 Goldman Sachs Group ........................A9,B4,B11 Guggenheim Partners.B7 D DirecTV........................A1 DowDuPont.................A9 E P Petróleos de Venezuela ...................................B12 Q Qualcomm...................A9 H S Humana.......................B7 I CBS..............................B3 China Literature A10,B13 Cofco ........................... A9 Comcast.......................B3 Comerica....................B11 Creative Artists Agency .....................................B3 CVR Energy.................B1 O Old Mutual Global Investors.................A10 Oracle .......................... B5 Icahn Enterprises........B1 Infor.............................B5 J Juniper Networks.....B13 K Sears Holdings............B7 Smithfield Foods........A9 Snap..............A1,B12,B13 Sogou ........................ B13 Sprint..........................A1 Symantec .................. B13 T Koch Industries...........B5 L LendingClub...............B13 Leonardo......................B3 LVMH Moët Hennessy Louis Vuitton............B6 Tencent Holdings A1,B13 Time Warner...............A1 T-Mobile US................A1 Twenty-First Century Fox ....................... B2,B4 Twitter........................A1 Equifax ........................ B6 M U F Monsanto....................B1 Facebook ..................... A1 Federated Investors ...................................B13 UBS............................B11 Under Armour...........B13 Nasdaq ...................... B12 Netflix.............B3,B4,B13 N W Walt Disney................B4 INDEX TO PEOPLE A Agarwal, Shradha..A2,B4 Arnault, Bernard.........B6 B Bannon, Stephen........A4 Barros Jr, Paulino do Rego..........................B1 Beccari, Pietro ............ B6 Bryan, Jeremy...........B12 C-D Carr, Muneera...........B11 Chin, David................B11 Clayton, Jay .............. B12 Cohen, Natalie .......... B11 Culverhouse, Stuart . B12 Daingerfield, Brian ... B13 Delrahim, Makan........A1 Dorsey, Jack................B4 Duterte, Rodrigo.........A9 E-F Ellenberger, Donald .. B13 Friedlander, George .. B11 G Gardner, Cory..............B1 Gillespie, Ed................A4 H Heppenstall, Mark....B12 K-L Kang, Navnoor............B1 Koch, David.................B5 Legere, John...............A1 LeRoy, Greg...............B11 M-N Maduro, Nicolás........B12 Miller, John...............B11 ZWEIG Continued from the prior page the company’s shares became a mania that swept up everyday investors and high society alike. The shares (quoted as a percentage of their par, or nominal, value) shot up from about 200 in March 1720 to nearly 1,000 in June and July, then crashed back below 200 in a few disastrous weeks later in 1720. Prof. Odlyzko estimates that if Newton had bought and held his South Sea shares continuously from early 1712 through 1723, when the stock stabilized after the bursting of the bubble, he would have earned a cumulative total return of approximately 116%. That is about 6.5% annually, not counting dividends—a generous return at a time when long-term government bonds carried interest rates of 4% to 5%. However, Newton didn’t buy and hold continuously. Instead, Newton—who held 10,000 shares of South Sea stock in early 1720—sold 8,000 shares in April and May at prices around 350, realizing profits of at least £20,000, Prof. Odlyzko finds. That was equivalent to nearly $4 million today. But the price of the shares went almost straight up immediately after Newton sold them, brushing 800 in late May and early June of 1720. “As the bubble continued inflating, it appears that he panicked,” Prof. Odlyzko writes of Newton. The great scientist, throwing his rationality to the winds, plunked MATT ROURKE/ASSOCIATED PRESS B Baidu ......................... B13 Bank of America.......B11 Boeing....................A9,B3 FedEx...........................B3 Ford Motor..................A9 Higher costs for sports programming, including additional NFL games, weighed on results from 21st Century Fox’s television segment. Milstein, Larry..........B12 Nieding, Klaus.............B7 Northam, Ralph..........A4 O Odlyzko, Andrew ........ B1 Oficialdegui, Javier...B11 S-T Sanborn, Scott..........B13 Santini, Mike ............ B11 Shah, Rishi............A2,B4 Sieg, Andy.................B11 Simmer, Sarah Jones.B5 Smith, Richard............B1 Solca, Luca..................B6 Sosa, Juan I..............B12 Stephens, John...........A6 Stephenson, Randall..A1 Swell, Mike...............B13 Toledano, Sidney.........B6 £26,000 into South Sea shares on June 14, 1720, at a price of about 700 per share—twice what he had sold them for only a few weeks earlier. Even worse, in late August, with the shares priced about 750, Newton put another £1,000 into a South Sea security that appears to have been comparable to a call option giving him the right to buy shares at a price of 1,000 each. At this point, Newton had shifted from a prudent investor with his money spread across several securities to a speculator who had plunged essentially all of his capital into a single stock. The great scientist was chasing hot performance as desperately as a day trader in 1999 or many bitcoin buyers in 2017. Newton appears to have lost as much as 77% on his worst purchases, or at least £22,600, estimates Prof. Odlyzko. That is the equivalent of £3.1 million, or nearly $4.1 million, in today’s purchasing power. Overall, he lost at least a third of his account value. Prof. Odlyzko finds that the words often attributed to Newton were ascribed to him years after his death, so the great man might or might not ever have said that he “could calculate the motions of the heavenly bodies, but not the madness of the people.” But surely the author of the law of universal gravitation must have learned the First Law of Financial Gravity: What goes up must come down, and what goes up the most will come down the hardest. Cable Helps Fox Return to Growth BY MARIA ARMENTAL AND SARAH RABIL 21st Century Fox Inc. said profit and revenue rose in the most recent quarter, as higher fees for its cable networks helped offset continued weakness at local TV stations and its film studio. The results posted Wednesday follow the news that Fox recently held talks about selling a large part of its entertainment business to Walt Disney Co. Those assets included the Twentieth Century Fox studio, international distribution operations and some cable networks, The Wall Street Journal reported earlier this week. The remaining Fox business, as discussed, would have been focused on broadcast television as well as news and sports cable channels such as Fox News. The talks hit an impasse over price and other key terms, though they could be restarted, according to people familiar with the matter. UNIVERSAL HISTORY ARCHIVE/GETTY IMAGES segment was an 11% increase in domestic affiliate fee revenue— the money collected from payTV distributors to carry Fox’s channels. Advertising revenue rose 3% in the U.S. and 10% for international channels. Fox said it maintained its domestic television subscriber levels, as growth from new streaming services and newer channels offset declines in the traditional pay-TV universe. Overall, Fox’s fiscal firstquarter profit rose 4% to $855 million, or 46 cents a share. Revenue rose 7.6% to $7 billion, topping analysts’ average estimate of $6.81 billion. Excluding restructuring costs and other items, per-share profit was in line with the projection from analysts surveyed by Thomson Reuters. Operating profit at the filmed entertainment division, which includes the Twentieth Century Fox studio, fell 18% from a year earlier, as last year’s results were boosted by licensing deals. The television segment, which includes the Fox broadcast network and local TV stations, posted a 36% decline in operating profit. Higher costs for sports programming, including added college football and National Football League games, more than offset higher revenue. Fox News, which wasn’t included in the talks with Disney, had another strong quarter, contributing to the revenue and profit expansion at the cable unit despite turmoil over accusations of sexual harassment and racial and gender discrimination that led to several high-level departures. Fox has said it is cooperating with a federal probe related to the allegations. Fox’s Class A shares closed Wednesday at $28.09 and were up 1.3% in after-hours trading. Before gaining this week on the reports about discussions with Disney, the stock had declined about 25% over the past three years. DIANA Continued from the prior page ment. Separately, a writer for New York magazine viewed photos and video footage of the woman in the Journal’s AmTrust piece and said “it looks like the same woman” who he said pumped him for information in late 2016 about Mr. Weinstein when he was working on an article about Mr. Weinstein’s accusers. The woman had used the name, “Anna,” according to the New York writer, Ben Wallace. The New Yorker published a copy of a contract between Black Cube and one of Mr. Weinstein’s lawyers, naming an “Anna” as one of its operatives for the assignment. In an interview Tuesday, Mr. Wallace said “Anna” pretended to be a disgruntled former mistress of Mr. Weinstein’s who heard he was working on an article. Claiming to be worried about her career if she spoke out, she pushed for information about other women he was talking with, he said. Mr. Wallace described the woman as blonde, mid-30s, WEEDS Artist’s impression of Isaac Newton thinking about gravity Lachlan Murdoch, executive co-chairman of Fox, kicked off Wednesday’s earnings call by saying executives wouldn’t comment on the reports. “Let me be very clear upfront that we have a longstanding policy of not commenting around corporate activity or transactions. We will continue to adhere to the policy, meaning that we will not be responding, at all, to questions or comments regarding recent press speculation,” he said. Wall Street Journal parent company News Corp and 21st Century Fox share common ownership. Fox’s cable networks unit, home to Fox News and the FS1 sports network, drove results for the company’s Septemberended fiscal first quarter with a 9% rise in operating income before depreciation and amortization, helping Fox post its first profit increase in three quarters. Driving results in the cable Continued from the prior page ers racing to figure out how to avoid more collateral damage ahead of next summer, when Monsanto projects the herbicide will be used on twice the U.S. farm acreage as this year. Other states besides Arkansas, including Minnesota, South Dakota, North Dakota, Tennessee and Indiana, are discussing additional limits and training requirements for farmers spraying dicamba. Monsanto had pitched dicamba, along with soybean and cotton seeds engineered to survive it, to farmers struggling to kill weeds such as palmer amaranth that can grow so fast and so big—developing stalks as thick as baseball bats—that they choke out crops. Jonas Oxgaard, an analyst with Bernstein, estimated that the chemical and related seed sales could generate as much GEOINVESTING LLC A Airbus..........................B3 Alphabet......................B4 Apple.........A2,B3,B4,B12 Archers Daniel Midland .....................................A9 AT&T....................A1,A10 The mystery woman identifying herself here as Diana Ilic arrives for a meeting with an analyst. with “an accent that was hard to place, possibly German.” On a second meeting, he said she suggested a place that was “mood lit,” already had a glass of wine, and motioned for him to sit next to her. That was a similar experience to that of Chris Irons, the analyst with GeoInvesting LLC, who said “Diana Ilic” had plied him with drinks during a July dinner meeting. He also detected an accent; she claimed to be from Zagreb, Croatia. After the dinner, Mr. Irons discovered his boss also had a mysterious meeting, with a man claiming to be French, who similarly pumped him for information about AmTrust. Two other critics of AmTrust also reported mysterious contacts, the Journal reported in August. The email address “Diana Ilic” used with Mr. Irons linked to a domain name established a few days before the meeting. The London address for her consulting firm turned out to be a mailbox drop. Calls and emails to her weren’t returned. as $350 million in annual profits for Monsanto. “It’s their big moneymaker,” he said. German chemical maker BASF SA is also marketing a new version of dicamba to pair with the Monsanto-developed crops. While dicamba has proven able to knock down tough weeds, past versions of the herbicide have been known for evaporating from plants after application, which can create a mist prone to floating into nearby fields. Monsanto and BASF’s new formulations are designed to minimize that effect, the companies have said. U.S. farmers planted about 25 million acres of dicamba-tolerant crops this year. Following the damage complaints, the companies in October agreed with the EPA on tighter controls for those products, including training farmers on how to manage the chemical and barring application on windy days. Arkansas’s Plant Board has proposed going further, possibly by prohibiting dicamba use from mid-April through the end of October to safeguard growing plants. The state has also refused to approve Monsanto’s dicamba product for use in Arkansas, saying it needs further thanks to good weather over the latter half of the growing season. The U.S. Department of Agriculture is projecting a record U.S. soybean crop. The outcome could have been worse with drier weather, researchers said. Farmers are exploring their own legal options. Some have joined class-action lawsuits against Monsanto and BASF, seeking compensation for damaged crops. The companies are contesting those lawsuits. For farmers, “it’s highly emotional,” said Doug Goehring, North Dakota’s agriculture commissioner. Tom Burnham, who farms 11,000 acres near Blytheville, Ark., said he hired a lawyer to advise him on how to handle a neighbor whose errant dicamba spraying, Mr. Burnham said, reduced some fields’ harvest by 5% to 20%. Mr. Burnham said he didn’t expect to make money on any lawsuit he may file. “I’m doing it just to make a point.” Some farmers have joined class-action lawsuits against Monsanto and BASF. analysis by University of Arkansas researchers. Monsanto argues that other herbicides haven’t been subjected to the sort of further analysis the state wants to apply to Monsanto’s dicamba product. Even with the reports of widespread damage, farmers and crop researchers say many affected fields recovered, 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 Thursday, November 9, 2017 | B3 THE WALL STREET JOURNAL. BUSINESS NEWS BY JOE FLINT Apple Inc. has struck a deal for a new drama starring Reese Witherspoon and Jennifer Aniston and set in the world of television morningnews shows. Terms of the deal weren’t disclosed, but people familiar with the matter said the cost could reach beyond $10 million an episode. Ms. Aniston’s and Ms. Witherspoon’s salaries are expected to be over $1 million an episode, according to a person who was pursuing the show. Ms. Aniston and Ms. Witherspoon are also executive producers of the show. Both Ms. Aniston and Ms. Witherspoon are represented by Creative Artists Agency. A spokeswoman for the agency declined to comment on their deals. Other parties interested in the as-yet-untitled, highly sought-after show included Netflix Inc. and CBS Corp.’s Showtime. For Apple, the deal for the Witherspoon-Aniston project is the second big programming bet it has made in the past several weeks—even though it has yet to disclose how it Apple Market Value Tops $900 Billion The world’s most valuable public company just made more history. Apple Inc. shares rose 0.8% Wednesday to close at a new high of $176.24, giving the iPhone maker a market value of $904.9 billion. That makes Apple the first U.S. company to reach the $900 billion threshold, having already become the first to hit $800 billion when it accomplished the feat in May. It would need to increase its market capitalization by 11% to become the first to be worth $1 plans to distribute its content. In October, it struck a deal with director Steven Spielberg’s Amblin Television and Comcast Corp.’s Universal Television for a new version of “Amazing Stories,” a sciencefiction anthology series that ran on NBC in the 1980s. The budget for that show is over $5 million an episode, a person familiar with the project has said. The deal for the morningnews show is an indicator that Apple is prepared to spend heavily on its television venture and get into bidding wars with more established players—which is good news for producers. Apple’s programming efforts are being overseen by Zack Van Amburg and Jamie Erlicht, who joined the company from Sony Corp. in June. Apple is committing as much as $1 billion on its programming strategy. The Witherspoon-Aniston series is being produced through Media Res, a production company founded by former HBO programming executive Michael Ellenberg, who is an executive producer on the series. trillion. Based on Apple’s share count as of Oct. 20, that would mean a share price of $194.77. The milestone comes shortly after Apple’s latest iPhone model hit stores last week. Shares also got a boost after the tech giant delivered its best quarterly growth in two years, fueled by strong sales in all of its key products and a rebound in the China market. Positive reviews of the company’s 10th-anniversary line of iPhones have generally boosted Apple shares recently. For the year, they are up more than 50%, part of this year’s torrid rally for the biggest technology firms. —Amrith Ramkumar DHIRAJ SINGH/BLOOMBERG NEWS Apple to Bankroll News-Show Drama A turboprop flies over a neighborhood in Mumbai. These planes are slower and burn less fuel than their jet counterparts. FedEx Orders Turboprops Delivery giant to buy as many as 50 planes from Europe’s ATR as airfreight sector revives BY ROBERT WALL FedEx Corp. is modernizing part of its fleet of smaller cargo planes in a deal valued at $1.3 billion at list price, amid an improved outlook for the global airfreight market. FedEx will buy up to 50 turboprop planes from European aircraft maker ATR—a joint venture between Airbus SE, the world’s No. 2 plane maker behind Boeing Co., and Italy’s Leonardo SpA. The deal comprises a firm order for 30 planes and options for 20 more, and represents a boost for ATR in the U.S., the world’s largest single aviation market. The delivery giant typically uses such turboprop planes— which are slower and burn less fuel than their jet counterparts—to transport pack- ages between smaller cities and larger airports where its big Boeing and Airbus jets operate. The prospects for the airfreight market have improved in recent months after a prolonged slump. WorldACD, which tracks the sector, said air-cargo growth in September, the latest month for which figures are available, grew above 5% year over year for the 13th consecutive month. FedEx said in its latest quarterly earnings that sales at its air-shipping Express division benefited from higher rates to ship U.S. domestic packages and strong international package growth. Though turboprop freight planes are typically modified passenger models, FedEx in this case opted for a new design. The plane is based on the European plane maker’s 78seat ATR 72-600 model, which features a new cockpit and more powerful engines than earlier versions. FedEx Express Chief Execu- tive David L. Cunningham said Wednesday that the company “worked with ATR to develop this new aircraft, which include special features to help us grow our business, especially in the airfreight market where shipments are larger and heavier.” FedEx is expected to get the first planes in 2020. The aircraft typically can carry around 8.3 tons of cargo, though delivery companies are usually more focused on volume than weight. “Our bet is that the freighter market is going to become much more active than it has been,” ATR Chief Executive Christian Scherer said in an interview. Though much of the global demand will likely remain for converted planes, he said FedEx’s endorsement could generate greater appetite for new planes as well as spur a general increase in demand for freight planes. Toulouse, France-based ATR and Canada’s Bombardier Inc. are the world’s leading producers of turboprop planes. Brazilian plane maker Embraer SA in September said it had opened talks with potential airline customers to gauge whether to re-enter the market for such planes, after exiting it years ago to focus on jet-powered regional planes and private jets. The FedEx deal also is an important vote of confidence for ATR in the U.S., which it has coveted for years. Passenger-carrying turboprops fell out of favor in the U.S. because passengers generally preferred jets they viewed as more comfortable and modern. But ATR is starting to see demand rebound in the U.S. In addition to the FedEx deal, the plane maker has said it had won a preliminary 20-passenger-aircraft deal with Fort Lauderdale, Fla.-based Silver Airways Corp. “We have been absent in the U.S. for many, many years and this marks our return,” Mr. Scherer said. You were looking to retire by the water. Better yet, above it. Captain of your own ﬂoating home. That would be retiring like a boss. That would also be tough without a plan. U.S. BONDS AGG WHEN INSPIRATION HITS, BUILD FOR WHAT’S NEXT. INT’L STOCKS IEFA U.S. STOCKS IVV Build for your future with iShares Core ETFs. At 1/10th the cost of typical mutual funds, iShares Core ETFs can help you keep more of what you earn.1 INSPIRED TO BUILD. iShares.com/build 1. Source: BlackRock and Morningstar, as of 12/31/16. 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All other marks are the property of their respective owners. 285131 B4 | Thursday, November 9, 2017 THE WALL STREET JOURNAL. * *** TECHNOLOGY WSJ.com/Tech Size vs. Growth Walt Disney’s biggest cable channels have lost subscribers in the past few years, while Netﬂix’s subscribers have grown from a smaller base. Domestic subscribers 100 million 2016 93 90 GEORGE KRAYCHYK/HULU/EVERETT COLLECTION 80 60 49 40 20 0 Disney Channel 2011 Buying 30% of Hulu, whose shows include ‘The Handmaid’s Tale,’ would give Disney majority control of that streaming service. ’16 ESPN 2011 Netﬂix* ’16 *Streaming subscribers only Source: the companies 2011 ’16 THE WALL STREET JOURNAL. Behind Disney’s Talks With Fox: Netflix BY BEN FRITZ Walt Disney Co.’s market capitalization is almost twice that of Netflix Inc. It operates the most successful movie studio in Hollywood, one of the most profitable channels on cable television and the biggest theme-park business in the world. Yet its pursuit of 21st Century Fox Inc.’s entertainment assets indicates that repositioning its television business to compete in the streaming, a-lacarte world that Netflix dominates has become Disney’s priority. Disney’s TV operation alone is substantially larger than Netflix, but its growth has stalled while its digital competitor is booming. Netflix’s revenue increased 32% in the first nine months of its current fiscal year to $8.4 billion, compared with a year earlier, and its operating income rose 163% to $593.4 million. For the first nine months of its fiscal year, Disney’s television revenue was flat at $18 billion and its operating income declined 11% to $6 billion. Recent talks for Disney to acquire Fox’s entertainment cable networks and film and TV studio, and stakes in European satellite broadcaster Sky and streaming TV company Hulu, have stalled, and it is unclear whether they will restart, let alone result in a deal, said people close to the discussions. Fox and Wall Street Journal parent News Corp share common ownership. In an interview before the Fox talks were reported this week, Disney Chief Strategy Officer Kevin Mayer said Disney has in the past decade spent $15 billion buying “high quality” intellectual property from Pixar Animation Studios, Marvel Entertainment and “Star Wars” producer Lucasfilm. “Now we’ve turned our attention to the one platform seeing growth challenges,” he said. “That’s the television platform.” That same logic applies to its pursuit of Fox’s assets, analysts and people close to Disney said. The company is already in the midst of a multibillion-dollar effort to launch direct-toconsumer online video offerings, an effort that could be the final legacy of Chief Executive Robert Iger, who is scheduled to retire in 2019. That same year, Disney has said, it plans to launch a familyentertainment service featuring television shows and movies, including recent theatrical releases that currently stream on Netflix under a deal that ends next year and Mr. Iger intends to not renew. Next year, Disney aims to unveil an ESPN streaming service featuring sports not currently available on television. Both will use technology from the streaming company BamTech, on which Disney this year spent $1.58 billion for majority control. Outcome Health Returns Fire in Investors Dispute BY ROLFE WINKLER Outcome Health on Wednesday fired back at investors suing the prominent Chicago advertising startup, saying that their accusations of fraud are baseless and that their effort to freeze $225 million in funds controlled by the founders was unfair and could financially damage the company. On Tuesday, investors sued Outcome and its founders, Rishi Shah and Shradha Agarwal, claiming the founders knowingly provided false data and financial reports before a funding round earlier this year. The investors, which include funds managed by a unit of Goldman Sachs Group Inc. and Google parent Alphabet Inc., invested $487.5 million beginning in March. The investors say they are entitled to get their money back, citing an October Wall Street Journal article that reported how some Outcome employees had allegedly misled customers about its advertising services. Outcome, which said it was valued at $5.5 billion by investors, puts video screens in doctors’ offices and streams pharmaceutical ads to them. In New York Supreme Court in New York County on Wednesday, the judge said she would review both sides’ claims and plans to hear further arguments on Monday. Outcome and its founders denied wrongdoing in Wednesday’s filing and said there is no evidence that Mr. Shah or Ms. Agarwal engaged in any misconduct. Outcome’s attorney, Michael Carlinsky of law firm Quinn Emanuel Urquhart & Sullivan LLP, called investors “irresponsible” for filing suit days after they were briefed by an independent counsel hired by Outcome last month to investigate the claims that some employees misled advertising customers. According to Outcome’s legal filing, the independent counsel, former U.S. attorney Dan Webb, told investors during the briefing that while his investigation remains ongoing, he had “’not come across any evidence that senior management was involved’ in any misconduct or even possesses ‘relevant information’ regarding the misconduct that may have occurred at Outcome Health.” In response to Wednesday’s comments from Outcome, a Goldman Sachs spokesman said, “We believe there is more than enough evidence to support our case and we look for- ward to our chance to present it to the court.” A spokesman for Alphabet’s CapitalG didn’t immediately respond to requests for comment. Outcome’s filing says Mr. Webb interviewed “approximately 17 Outcome Health employees” as part of his investigation. It does not state whether he interviewed any former employees, including Sameer Kazi, a former chief operating officer who the Journal reported in October confronted Mr. Shah with concerns about business practices earlier this year, people briefed on the discussion said. Mr. Webb and Mr. Kazi didn’t respond to requests for comment on Wednesday. Mr. Kazi in a brief phone conversation this summer said he was at the company “two weeks and three days” early this year and declined to comment on his departure. The investors have asked the court to freeze $225 million of the total that had been placed in a separate account to pay the founders a distribution. They allege Mr. Shah took steps to take money out of the account and can’t verify the total funds are there. The Outcome filing states that while the founders have the right to take this money out per an agreement with investors, the funds remain in the account for company use. “We have been completely transparent with employees, customers and investors, and always operated with complete integrity,” the founders said in a statement. O u tc o m e ’s legal filing says Mr. Shah and Ms. Agarwal “have considered” injecting the money allocated for their distribution back into Outcome. “Such an infusion of cash could avoid a potential debt default and give the company breathing room to regain its footing amid the recent turmoil,” the filing said. Mr. Carlinsky, Outcome’s attorney, added in an interview that this was a “general” statement about a debt default. “We don’t want to give the lenders reason to seek to declare a potential default” and that an infusion of cash back into the company would mollify them. 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IT Staffing CO / $100M+ Govt contracts seek PRIVATE lender/ investor for $10M refinance loan paid off through $5M annual ESOP tax reimbursement for cost plus govt contractors. No brokers. 530-307-0103 TRAVEL Save Up To 60% First & Business INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.cooktravel.net (800) 435-8776 RICHARD BORGE PERSONAL TECHNOLOGY | By Katherine Bindley Tips to Tame Your Wild Facebook Feed Quick: Shout out the first three words that come to mind when someone says “Facebook.” A few years ago, this exercise was easy: Birthdays. Brides. Babies. Boom! Now, inside the mindless, thankless news feed time suck, you can find all that plus political rants, stalker-y ads, fake news, Russian propaganda. It’s hard to keep it to three words anymore. The problem is, there’s no better way to track someone down, alert a network of people you know to big news and, yes, wish someone a happy birthday. So how can we live with Facebook—and with ourselves? Take out your phone and follow these steps to tame that wild beast of a news feed. Prioritize People The first step is to impose some order on your friend list. In the iPhone app, tap the three horizontal lines at the bottom and scroll down to Settings. Tap News Feed Preferences, then “Prioritize who to see first.” On Android, the three lines are up top, and you just scroll down to News Feed Preferences. Select which friends you want to show up at the top of your feed. If you prioritize only five people out of, say, 700, you’ll probably still see too much noise. Unfortunately, you can only prioritize 30, so…sorry, Cousin Rick! ID Close Friends There is actually a second way to tell Facebook who you care about, by marking people as “close friends.” (Likewise, you can downgrade someone with an “acquaintance” label.) Click through to a friend’s profile page and hit the blue “friends” icon. Tap “edit friend lists” to add them to “close friends” or “acquaintances”—or any other lists that appear. People won’t be able to see how you’ve classified them. If you want to view a feed consisting only of close friends, click the three horizontal lines and select Feeds. Ditch the Duds Review Your Liked Pages You can go through and unfollow a bunch of people at once—without them finding out. Go to News Feed Preferences, tap “Unfollow people” and select people whose posts you don’t want to see. In individual posts, click the three dots at the righthand corner to unfollow people piecemeal. Facebook says its algorithm learns from all your past likes, comments and interactions. That is why you should check up on old pages you once liked. It is tricky from the app: You either go into the Unfollow setting and tap the Sort button at the top left and choose Pages Only. If that is too confusing, go to search and type “Pages Liked By Me.” The first result there is a liked page— tap “see all” to get the rest. Think about whether those likes reflect your current interests; if not, unlike. If, after a few days, this exercise brings you no joy, maybe switch to Instagram. Though that Facebookowned network was also hit by Russian-backed ads—and also has an algorithm deciding what you see—it can still feel more like what Facebook used to be. You know, a photo-heavy stream with plenty of brides and babies. Hide and See Fewer Even if you pare back your people, your favorites may post things you don’t want to see. On an annoying post, tap the three dots, and then select “Hide post.” You’ll notice it also says, “See fewer posts like this.” A Facebook spokeswoman said that when you tap this option, an algorithm takes different factors into account, including whether the post features photos, videos or links to articles, what time of day it is, and yes, what topics it covers, including politics. Unfortunately, you can’t specify what it was about the post you didn’t like. For more Facebook tips, go to wsj.com/tech. Write to firstname.lastname@example.org. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, November 9, 2017 | B5 MANAGEMENT Maneuvering Through Career Changes Former Marine Charles Phillips positions business-software provider Infor as a challenger to Oracle BY VANESSA FUHRMANS STEPHANIE AARONSON/THE WALL STREET JOURNAL Charles Phillips is no stranger to reinvention. A captain in the Marine Corps in his 20s, he went on to become one of the dot-com boom’s most inBOSS fluential sages as TALK a technology analyst for Morgan Stanley. In 2003, Larry Ellison plucked him to be Oracle Corp.’s president and lead a seven-year, $35billion acquisition spree. Mr. Phillips’s latest transformation has him turning the privately held businesssoftware provider he joined as chief executive in 2010, Infor Inc., into a formidable, albeit smaller, rival to Oracle, in part by designing products with a more intuitive feel and building applications for industry-specific processes. Infor, for instance, created a software tool for brewers that measures the quality of hops and ensures vats are full to maximize productivity. To recruit more software-engineering and design talent, he relocated the company to New York City from Alpharetta, Ga., in 2012. Infor is now taking the approach to businesses at Koch Industries Inc. Early this year, the conglomerate— widely known for the conservative political agenda of the brothers who control it, Charles and David Koch—invested more than $2 billion in Infor, a stake that values the software company at roughly $10.5 billion. Infor is designing and developing software for the shareholder. Mr. Phillips, who is active in Democratic politics and planning to start a nonpartisan political-action committee with other African-American executives, says the partnership doesn’t change Infor’s strategy. “It just gives us a lot more ways to get there,” says Mr. Phillips, who recently sat down with The ing to buy something they view as risky. They don’t really understand technology. I write it down on the back of my card, say ‘Call me if you get nervous, anytime—24/7.’ That goes a long way with people. ‘We move a lot faster than a normal company.’ Infor Chief Executive Charles Phillips Wall Street Journal in New York. Here are edited excerpts: THE WALL STREET JOURNAL: Did the investment from Koch spur questions from employees? MR. PHILLIPS: Initially a couple customers and employees asked about that, but far less than I thought. I’ve been active politically for so many years and supporting many Democratic candidates and other causes, I already had a known view that people knew wasn’t going to change. [The questions] went away after the first couple of weeks. WSJ: You and your executive team have an unusual office arrangement. How does that work? MR. PHILLIPS: None of us have offices. We have basically an oversize square table, and the entire executive staff sits around it. There are no secrets, if you’re sitting around each other every day. We move a lot faster than a normal company. We don’t have to wait three weeks to call a meeting for an hour. We’re just doing it on the fly. WSJ: You created an in-house design firm to make business software more elegant and intuitive. What’s driving that? MR. PHILLIPS: The users who grew up using Apple devices and smartphones—at some point, they are going to demand that. Your personal computing devices are better than what businesses build and use, at least from the user standpoint. It’s a different type of person who understands how to build applications that are beautiful and exciting. That’s one of the reasons we moved to New York—because a lot of people come to New York to study and work in design. WSJ: As a technology analyst, you used a toll-free number to network with industry executives. Does 1-800-MRCHUCK still work? MR. PHILLIPS: I give it to clients. A lot of these customers, they’re CEOs or CFOs try- WSJ: What lessons did you take from working with Larry Ellison at Oracle? MR. PHILLIPS: The best thing I learned at Oracle was speed. Speed is better than perfection. If you’re sitting around for six months debating something, usually the thing you’re debating has changed over that time. You’re never going to get a consensus, so let’s make a decision and go and we’ll, of course, correct it if we have to. WSJ: What did you decide to do differently at Infor? MR. PHILLIPS: I’m a bit more hands on, engaging with people at all levels of the company, making people feel a sense of purpose. The best leaders in the Marine Corps were the guys who created a relationship with the people in their unit so that those people didn’t want to disappoint them. That is hard to get in business, but the military has that and I try to draw from that more. WSJ: You’ve switched careers several times. Take us into your mind-set as you’ve made those big transitions. MR. PHILLIPS: One of the things my father taught me is: Do things that can be measured, because you can’t rely on people liking you. You won’t have the same access as maybe some other people, but if you can perform and demonstrate that you can perform, people will always take the next step with you. That’s been instrumental for me because I could always demonstrate numbers-wise or something technical that worked. The New WSJ iPhone App Save and Share Easily share stories or save them for offline reading. Personalized News Feed Discover articles through a news feed built for you. An enhanced reading experience. Introducing our latest app feature—MyWSJ. Discover content through a personalized news feed, save articles to read later and easily share stories with others. Available now on the new WSJ iPhone app. DOWNLOAD NOW © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6158 WORKAROUND Matchmaker Sets Up App For Mentors Will a generation accustomed to swiping right to find dates do the same to expand its professional network? That is the hope of the makers of Bumble, a dating app known for allowing women to initiate contact with men. Bumble last month began allowing its more than 22 million registered users to search for prospective mentors and colleagues, in addition to romantic interests, using different profiles. It isn’t the first dating service to do so. Matchmaking website eHarmony Inc. last year launched a jobsearch tool called Elevated Careers that connected users with prospective employers. It sold the business in August to Candidate Guru, a small recruiting startup. Tinder designed a networking app for members of publisher Forbes Media’s “30 Under 30” lists in 2015. Yet Bumble says its product, dubbed Bumble Bizz, is different. The company sees a market opportunity in letting women steer their careers in a safe, casual setting, said Chief Operating Officer Sarah Jones Simmer, who declined to say how much the company has spent on its new business-focused platform. Bumble’s users can now create separate professional profiles and browse photos and work samples of potential business connections on their smartphones. When two users of opposite genders swipe right on each other’s profiles, it enables the woman to strike up a text chat. Either party can initiate a conversation if the users are the same gender. Users swipe left on a profile if they aren’t interested. —Kelsey Gee B6 | Thursday, November 9, 2017 * *** THE WALL STREET JOURNAL. BUSINESS NEWS Christian Dior’s Chief to Depart PARIS—Sidney Toledano plans to step aside after 20 years as chief executive of Christian Dior Couture as corporate parent LVMH Moët Hennessy Louis Vuitton seeks to inject new blood into its senior ranks. Wednesday’s announcement marks the end of an era at Dior, during which Mr. Toledano, 66 years old, turned the elite brand into a global fashion powerhouse with annual sales of more than €2 billion ($2.3 billion). Pietro Beccari, the current chief executive of Fendi, also part of LVMH, was named to succeed Mr. Toledano. Mr. Beccari is highly regarded within LVMH for having engineered a turnaround at Fendi. Under his tenure, sales grew from an estimated €600 million to €1 billion. “Pietro has an excellent track record,” said Bernard Arnault, the French billionaire who is chief executive and controlling shareholder of LVMH. Mr. Arnault gave Mr. Tole- ICAHN Continued from Page One immediately available for comment. The activist investor had long been publicly campaigning to change the environmental rule, which governs how renewable fuels can be added to gasoline. Refiners either have to add the renewable fuel or buy credits from those who do. Mr. Icahn argued the rule put the burden on smaller refiners, like CVR, instead of big oil companies. And he argued the credits had become a subject of Wall Street speculation, out of sync with the initial in- TORU HANAI/REUTERS BY MATTHEW DALTON Sidney Toledano, exiting chief executive of Christian Dior Couture, is seen at the luxury retailer’s Tokyo flagship store in April. dano a new job as head of LVMH Fashion Group, which manages some of the brand’s smaller fashion labels including Celine, Givenchy and Marc Jacobs. Mr. Arnault suggested the move to Mr. Toledano, and he agreed, Mr. Toledano said. He will start the new role early next year. “He never imposed something on me,” Mr. Toledano said in an interview. “I said I want a new challenge.” Wednesday’s move is the first major shake-up at Dior since Mr. Arnault this year spent €12 billion to unite the fashion house with LVMH. Previously, the Arnault family owned part of Dior through a holding company that also owned part of LVMH. But Dior the brand was independent from LVMH, even though the companies cooperated exten- tent of the law and costing his company millions. His relationship was seen as so close to the new administration that other investors piled into CVR stock upon Mr. Trump’s election, sending its stock and others soaring on the belief the rule would be changed. CVR stock is up 145% since the election, boosting Mr. Icahn’s 82% stake by $1.3 billion. Mr. Icahn played a role in helping Mr. Trump chose Scott Pruitt as head of the Environmental Protection Agency, which was responsible for the rule. Mr. Icahn has previously said he discussed his concerns with Mr. Pruitt and had hoped the EPA would move quickly. CVR, meanwhile, slowed its purchases of the credits, building up sizable obligations, a bet that the prices of the credits would plunge before the The inquiry into Mr. Icahn provides fodder for critics of the Trump White House. company needed them. Last month, Mr. Pruitt announced the rule wouldn’t change. CVR Chief Executive Jack sively under Mr. Arnault’s control. When Mr. Toledano took over at the brand in 1998, annual sales were around €200 million. He embarked on a store-building spree and expanded the business dramatically in Asia. He also anchored the company as designers came and went. He clashed with Hedi Slimane and fired John Galliano after the designer was recorded shouting anti-Semitic insults at a bar in Paris. Mr. Galliano apologized and said he was seeking help. The move elevates Mr. Beccari to one of the top spots in the fashion world. Dior’s sales have surged in recent years, propelled by strong demand in Asia. The brand, however, is significantly smaller than French rival Chanel and should have room to grow, said Luca Solca, analyst at Exane BNP Paribas. “The benchmark for Dior is Chanel,” Mr. Solca said. “It has a similar allure and sophistication and it’s coming from the same background, which is couture.” Lipinski railed against the decision on a conference call last week. “I am also surprised that the Trump administration caved and failed to drain the swamp as promised,” he said. CVR now expects to spend $235 million to $265 million on the credits this year, compared with an earlier estimate of $170 million. Mr. Icahn isn’t the only business ally of Mr. Trump to draw criticism to the White House. Mr. Pruitt has drawn the ire of environmentalists and some congressional Democrats for his efforts to halt or roll back regulations on everything from methane emissions to pesticides. The administra- Equifax CEO Unsure If Data Is Encrypted BY ROBERT MCMILLAN AND ANNAMARIA ANDRIOTIS Two months after Equifax Inc. reported one of the worst data breaches in history, its interim chief executive told a congressional hearing Wednesday he wasn’t sure whether the company was encrypting consumer data. Equifax announced Sept. 7 it was breached and that hackers accessed data including names, dates of birth and Social Security numbers for 145.5 million U.S. consumers. Several executives, including the CEO, stepped aside in the wake of the disclosure. Equifax has quadrupled spending on security, updated its security tools and changed its corporate structure since the breach, Paulino do Rego Barros Jr., the interim chief, said during a hearing by the Senate Commerce Committee. But Mr. Barros stumbled when asked by Sen. Cory Gardner (R., Colo.) whether Equifax is now encrypting the consumer data it stored on its computers—a basic step in hiding sensitive information from hackers, and one the company previously admitted it didn’t take before the breach. “I don’t know at this stage,” Mr. Barros said. The answer was disappointing, said Avivah Litan, an analyst with research firm Gartner Inc. “He should have asked his staff that the day he took over,” she said. Mr. Barros has been Equifax’s chief executive since Sept. 26, when the company announced Richard Smith was retiring. Before that, Mr. Barros was head of the company’s Asia-Pacific business. Equifax is in the process of “either encrypting or deleting” data stored on its computer storage systems, an Equifax spokeswoman said in an email. Since the breach, “Equifax has deployed multiple methodologies to strengthen security and protect data,” she said. tion installed a longtime advocate of offshore oil, Scott Angelle, as industry’s chief safety regulator. The administration has boasted about its achievements in reversing rules and regulations opposed by businesses. Mr. Trump’s budget office said this spring that it had cut by 20% the amount of regulatory activity across the entire federal government, including proposed rules from the past administration that the White House halted. Mr. Trump embraced corporate chieftains early on in his first year in office, convening a series of task forces and public discussions at the White House that included dozens of leaders of smaller businesses as well. The White House has described its outreach to business as a course correction from the Obama administration, which Republicans blame for imposing excessive regulations on business. But business leaders have sometimes recoiled, as they did this summer. Then, two councils of chief executives formed to advise the president on business and economic policy imploded after the president defended some of the participants in a white supremacist demonstration in Charlottesville, Va. —Austen Hufford contributed to this article. ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds BANKRUPTCIES !" "#$% &'(##' !" #$% $&#' (&& )* * +, -" !. !" #$% $&#' /&& )* * +, !. !" ##% $&#' (&& )* * +, -" " !" $&% $&#' #&&& * * +, 0 0 1" * 0#2 ##(3$0&& )&* +** *) , ")+ --+*& ) )+ -&))+* , )+ * ./0 & &-++ & )+ -&))+* , & * + & , - *-+ * &**&1+-+) , 1 22 ) 4 5 % ' '' 3( 4 5#6$7 ( '8 96: ;< #' :76% 7 = ##6 = $> 5:76% 78 3' ! 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G >! *, +(2'&,F * +>GAG 1" A8 *, +222H,F * +>GAG 1" ">" )"6 >" 6 *, +#&E(,F 4 * +>GAG ">" "66 4"1) *, +/$&&,F * +>GAG )"6 *, +(E&E,F 4 * +>GAG 4 9 *, +E/&3,F 0= ")* +>GAG 1" A8 ")*, +#3EE,F 0= ")* +>GAG 6 6! G >! ")*, +/&23,F 4 0= ")* +>GAG 4 9 ")*, +$#2(,F 0= ")* +>GAG )"6 ")*, +3&/E,F 0= ")* +>GAG 1" ">" )"6 >" 6 ")*, +$$&H,F 4 0= ")* +>GAG ">" "66 4"1) ")*, +#$/E,F 4 0= * +>GAG ">" )"6 4"1) *% 6 ")"6 < 66 > < !"6 >" "8 A= 6 6 % *% 1" A8 ")*% " ")*% "6)98, +#(#/,* < !"6B "66 6 222 1""" "% 1 #'&&% 19"% "6< 1 !% % 2 $;3* &$$ 6#$#I' ( 7' # # #6 7 ># '?' # $$ 3 6#3 (#@ 6#' 76 ( # #6$7 ( $ $#6$ THE WALL STREET JOURNAL. Thursday, November 9, 2017 | B7 * * * * * BUSINESS WATCH BUSINESS NEWS KANG AUTOS The European Union proposed Wednesday a 30% cut in carbondioxide emissions from cars and vans in the decade through 2030, seeking to prod auto makers toward cleaner technologies led by electric vehicles. Brussels’s move comes as efforts to accelerate development of electric cars and hybrid vehicles to replace conventional internal-combustion engines gather pace world-wide. With their revamped emissions regime, EU officials signaled their intention to force European motor companies to step on the gas, launch electric vehicles and compete with China, the world’s biggest car market by sales and largest market for electric vehicles. Erik Jonnaert, secretary-general of European Automobile Manufacturers’ Association, reiterated auto makers’ call for 20% emission cuts by 2030. Sales of electric vehicles and hybrids rose 44% to 152,694 in the first nine months of the year, making up only 1.3% of total sales, according to ACEA. —Emre Peker and William Boston SEARS HOLDINGS Store Sales Decline Despite Closings Sears Holdings Corp. has closed hundreds of stores in recent years, but sales at remain- SCOTT OLSON/GETTY IMAGES EU Calls for Cutting Emissions by 30% Sears said sales at its existing namesake domestic stores plunged 17% in the third quarter. ing locations continue to decline. On Wednesday, Sears said sales at its existing namesake domestic stores plunged 17% in the third quarter, following a string of negative comparablestore sales dating back to the third quarter of 2014. Sales at existing Kmart stores dropped 13% in the third quarter. Sears has said it is closing its weakest locations, which should boost overall productivity. Yet the opposite appears to be hap- pening. The reason cuts to the heart of some of Sears’ problems. Its stores are rundown, its merchandise selection is limited and sales associates are scarce, according to shoppers and analysts. Sears said the closure of unprofitable stores helped to improve its bottom line. It expects a third-quarter loss between $525 million and $595 million, less than the $748 million it lost a year ago. It expects cash flow to ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds INTERNATIONAL NOTICES !" # $%&' ( !" )* )* )+ ), # ) - ' ! " " " " #$ $%#& ! " ' ! ! ( " " ' ) "* ' + ( ,.'! ) #$ / $%#& #%0%% (( ! " ! ! 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All Rights Reserved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improve by at least $100 million. But Sears is likely to shrink even further. It said it reached an agreement with the Pension Benefit Guaranty Corp. to release 140 Sears properties that had been held as a backstop to the company’s pension obligations in return for pumping $407 million into its pension plan. —Suzanne Kapner HUMANA View for 2018 Is Downbeat Humana Inc.’s third-quarter results beat analysts’ expectations, but the company gave a downbeat initial view of its earnings for 2018, saying its formal guidance would likely fall below its target range despite projected enrollment growth. For the most recent quarter, net income rose to $499 million, or $3.44 a share, compared with $450 million, or $2.98 a share, a year ago. Excluding one-time items, including costs related to recent job cuts, Humana earned $3.39 a share, up from $3.20 a share. Analysts had expected adjusted earnings per share of $3.27. Revenue slid 3% from a year ago to $13.3 billion. For 2018, Humana said it expected growth in its Medicare Advantage business. Enrollment in its individual Medicare plans will likely rise in the range of 150,000 to 180,000, said Brian A. Kane, chief financial officer. Pressure on drug plans was one factor in the company’s warning that its earnings guidance for 2018 will come in below its usual target range of 11% to 15% growth, and its guidance for margin on its individual Medicare Advantage plans will also likely be lower than its typical goal of 4.5% to 5%. —Anna Wilde Mathews and Cara Lombardo Continued from page B1 years earlier. This article is drawn from dozens of interviews, legal proceedings, emails and government documents. Mr. Kang’s path to running bond investments for one of the largest pension funds in the country passed through some of the best-known firms on Wall Street. Mr. Kang was 26 years old when in March 2007 he joined one of the world’s biggest bond managers, Pacific Investment Management Co., where he got to know many of the senior bond salespeople, including Ms. Kelley and Mr. Schonhorn. Salespeople found Mr. Kang an affable client. “It’s no secret Nav had a reputation as someone who enjoyed being entertained,” said Michael Lauterbach, a former bond salesman who has known Mr. Kang since his days at Pimco and remains a friend. Mr. Kang left Pimco in summer 2010 for a higherpaying job at the asset-management arm of Guggenheim Partners. However, a December 2012 trip to New York—where he attended a Rolling Stones concert with a salesman—set off alarm bells at Guggenheim’s compliance department, according to people familiar with the matter. Guggenheim’s compliance executives confronted Mr. Kang with nearly a dozen instances where the firm believed that he had failed to report entertainment salespeople paid for him, the people said. The firm fired him in January 2013, according to the people. Mr. Kang was out of work for about a year before landing a senior role at the New York state pension fund, which was eager to overhaul the way it managed its portfolio of bonds. The fund hired Korn/Ferry International to search for a new fixed-income boss, with the recruiting firm helping select five applicants for a phone interview. One was Mr. Kang, who met in person with pension officials in December 2013. He said he had lost his job at Guggenheim because the firm had no position for him in New York, where he intended to live, according to a report by the New York pension fund. In a Dec. 18 email to the pension fund’s investment chief, a pension employee wrote that a Korn/Ferry team leader had said Mr. Kang’s departure from Guggenheim “all checked out.” When asked later by the New York Comptroller’s Office, the team leader couldn’t remember who she had spoken to at Guggenheim, according to the state’s April report. Mutual Funds | WSJ.com/fundresearch Fund Korn Ferry officials have declined to comment. Mr. Kang’s arrival was hailed by his new boss as ultralow interest rates crimped returns across the industry. The New York pension fund’s investment chief and other pension officials had a plan to become a more active trader to squeeze out a better return, which meant getting more brokers to find buyers or sellers. In October 2014, Mr. Kang wrote a memo to his boss recommending the fund add eight firms to its list of approved brokers, including Sterne Agee, then Ms. Kelley’s firm, and FTN Financial, where Mr. Schonhorn worked. Following the recommendations, the pension’s bond-trading business with each of these firms soon surged. Not long after Mr. Kang settled in his new job, prosecutors alleged, Mr. Schonhorn, Ms. Kelley and others began to lavish him with gifts in exchange for more trading business—and the commissions they stood to gain for making those deals happen, according to court documents. A spokesman for Stifel Financial Corp., which acquired The charges expose a practice many believed had been rooted out years ago. Sterne Agee, has said the firm inherited the problem. A spokeswoman for FTN, a unit of First Horizon National Corp., has said the charges to which Mr. Schonhorn pleaded guilty “reflect a betrayal of FTN and its values.” A person familiar with Mr. Kang’s thinking said he had cleared the vacations with salespeople with at least one pension official. That official said the trips were fine because Mr. Kang had known the salespeople as friends before he joined the pension fund, the person said. A spokesman for the pension fund said officials have never heard this claim, and that its policies are clear. By February 2016, pension officials had learned the Securities and Exchange Commission was looking into Ms. Kelley’s expenses on Mr. Kang, people familiar with the matter said. The retirement fund didn’t wait for a resolution. On Feb. 26, New York state Common Retirement Fund investment chief Vicki Fuller called Mr. Kang to her office, people familiar with the matter said. “Hey, this isn’t working out,” she told him. “We’re letting you go.” She didn’t mention there was a continuing SEC probe, people familiar with the matter said. Net YTD NAV Chg %Ret Fund Oppenheimer Y Explanatory Notes Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. 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. Wednesday, November 8, 2017 Net YTD Net YTD Fund NAV Chg %Ret Fund American Century Inv Ultra 45.25 +0.09 American Funds Cl A 31.99 +0.02 AmcpA p AMutlA p 41.29 +0.07 27.56 ... BalA p 12.96 -0.01 BondA p 63.10 +0.08 CapIBA p CapWGrA 52.59 +0.10 57.38 +0.02 EupacA p FdInvA p 63.97 +0.02 51.83 +0.05 GwthA p 10.41 -0.04 HI TrA p 41.39 +0.07 ICAA p 23.51 +0.02 IncoA p 45.23 +0.05 N PerA p 47.81 +0.08 NEcoA p NwWrldA 66.83 +0.12 56.44 -0.10 SmCpA p TxExA p 13.08 +0.01 45.58 +0.01 WshA p Baird Funds AggBdInst 10.92 -0.01 CorBdInst 11.27 -0.02 BlackRock Funds A GlblAlloc p 20.37 +0.01 BlackRock Funds Inst 23.06 -0.04 EqtyDivd 20.50 +0.01 GlblAlloc 7.82 -0.03 HiYldBd StratIncOpptyIns 9.95 -0.01 Bridge Builder Trust CoreBond NA ... Dimensional Fds ... 5GlbFxdInc 11.04 EmgMktVa 30.45 +0.03 EmMktCorEq 22.60 +0.10 IntlCoreEq 14.31 +0.04 20.14 +0.06 IntlVal IntSmCo 21.57 +0.03 23.53 +0.04 IntSmVa US CoreEq1 22.06 +0.04 US CoreEq2 20.90 +0.03 US Small 35.87 +0.07 US SmCpVal 38.27 -0.06 US TgdVal 24.81 +0.02 38.93 -0.05 USLgVa Dodge & Cox Balanced 108.93 -0.15 13.93 ... GblStock 13.84 -0.01 Income 46.63 +0.09 Intl Stk 201.23 -0.34 Stock DoubleLine Funds 29.7 19.2 13.7 12.8 3.5 12.2 21.8 29.9 19.7 23.3 6.2 15.6 10.9 28.0 33.0 29.9 22.7 5.4 15.6 4.2 4.5 12.0 13.0 12.3 7.4 4.2 NA 2.4 28.9 32.1 24.9 23.0 26.1 24.4 15.8 13.6 6.7 2.8 4.2 12.5 8.9 17.0 4.1 22.4 12.3 NAV Chg %Ret Fund NA ... NA Edgewood Growth Instituti ... NA EdgewoodGrInst NA Federated Instl StraValDivIS 6.41 +0.02 11.6 Fidelity 500IdxInst 90.83 +0.13 17.8 500IdxInstPrem 90.83 +0.13 17.8 500IdxPrem 90.83 +0.14 17.8 ExtMktIdxPrem r 62.39 +0.09 13.7 IntlIdxPrem r 43.45 +0.10 23.1 SAIUSLgCpIndxFd 13.92 +0.02 17.7 TMktIdxF r 75.21 +0.11 17.1 TMktIdxPrem 75.20 +0.12 17.0 USBdIdxInstPrem 11.62 -0.01 3.4 Fidelity Advisor I NwInsghtI 33.50 +0.02 25.4 Fidelity Freedom FF2020 16.76 ... 13.6 14.51 +0.01 14.6 FF2025 18.18 +0.01 17.1 FF2030 Freedom2020 K 16.77 +0.01 NS Freedom2025 K 14.51 +0.01 NS Freedom2030 K 18.18 ... NS Freedom2035 K 15.25 +0.01 NS Freedom2040 K 10.72 +0.01 NS Fidelity Invest 23.73 ... 14.4 Balanc BluCh 88.19 +0.32 33.6 127.41 +0.26 30.3 Contra 127.41 +0.26 30.4 ContraK 10.30 -0.01 10.7 CpInc r 41.57 +0.05 24.8 DivIntl GroCo 182.88 +0.27 33.7 GrowCoK 182.84 +0.27 33.8 7.94 -0.01 3.7 InvGB 11.31 -0.01 4.2 InvGrBd 52.75 -0.02 15.1 LowP r LowPriStkK r 52.71 -0.03 15.2 MagIn 106.44 +0.08 23.3 109.38 +0.87 37.3 OTC 23.25 ... 16.5 Puritn SrsEmrgMkt 21.63 +0.07 37.8 SrsGroCoRetail 17.97 +0.03 34.5 SrsIntlGrw 16.29 +0.02 27.3 10.87 +0.02 18.7 SrsIntlVal TotalBond 10.69 -0.01 4.1 Fidelity Selects Biotech r 216.38 -1.71 24.3 First Eagle Funds 60.90 +0.16 12.2 GlbA FPA Funds 35.17 -0.03 9.1 FPACres FrankTemp/Frank Adv TotRetBdI Net YTD NAV Chg %Ret 2.34 -0.01 FrankTemp/Franklin A 7.51 ... CA TF A p Fed TF A p 12.02 +0.01 2.36 -0.01 IncomeA p RisDv A p 61.09 +0.17 FrankTemp/Franklin C Income C t 2.39 -0.01 FrankTemp/Temp A GlBond A p 12.19 +0.01 ... Growth A p 26.82 FrankTemp/Temp Adv GlBondAdv p 12.15 +0.02 Harbor Funds CapApInst 76.53 +0.23 70.13 +0.15 IntlInst r Harding Loevner NA ... IntlEq Invesco Funds A 11.29 -0.02 EqIncA John Hancock Class 1 16.00 +0.01 LSBalncd LSGwth 17.19 +0.02 John Hancock Instl DispValMCI 24.07 +0.06 JPMorgan Funds MdCpVal L 39.67 +0.03 JPMorgan R Class 11.66 -0.01 CoreBond Lazard Instl EmgMktEq 19.79 +0.13 Loomis Sayles Fds 14.18 ... LSBondI Lord Abbett A ... ShtDurIncmA p 4.27 Lord Abbett F ... ShtDurIncm 4.27 Metropolitan West 10.68 -0.01 TotRetBd TotRetBdI 10.68 -0.01 TRBdPlan 10.05 -0.01 MFS Funds Class I 40.51 +0.02 ValueI MFS Funds Instl 25.49 +0.02 IntlEq Mutual Series 32.34 -0.09 GlbDiscA Oakmark Funds Invest NA ... EqtyInc r NA ... Oakmark OakmrkInt NA ... Old Westbury Fds 14.96 +0.02 LrgCpStr IncomeAdv NA ... 43.25 +0.03 Parnassus Fds 44.32 +0.13 ParnEqFd PIMCO Fds Instl NA ... AllAsset 10.30 -0.01 TotRt PIMCO Funds A IncomeFd NA ... PIMCO Funds D IncomeFd NA ... PIMCO Funds Instl NA ... IncomeFd PIMCO Funds P NA ... IncomeP Price Funds 97.62 +0.09 BlChip 29.75 +0.01 CapApp 34.80 +0.02 EqInc 69.74 +0.10 EqIndex 70.45 +0.08 Growth HelSci 74.18 -0.48 39.66 +0.01 InstlCapG IntlStk 19.31 +0.03 IntlValEq 15.30 +0.01 MCapGro 91.95 +0.08 31.26 +0.06 MCapVal 55.25 -0.25 N Horiz 9.51 -0.01 N Inc OverS SF r 11.44 +0.03 23.27 +0.01 R2020 17.95 +0.01 R2025 26.46 +0.02 R2030 19.35 +0.02 R2035 27.81 +0.03 R2040 38.89 +0.02 Value PRIMECAP Odyssey Fds Growth r 36.03 +0.12 Principal Investors DivIntlInst 14.05 +0.06 Prudential Cl Z & I 14.56 -0.03 TRBdZ Schwab Funds 40.54 +0.06 S&P Sel TIAA/CREF Funds 19.42 +0.03 EqIdxInst IntlEqIdxInst 20.41 +0.08 Tweedy Browne Fds GblValue 28.52 +0.05 VANGUARD ADMIRAL 500Adml 239.83 +0.35 BalAdml 34.17 +0.02 ... CAITAdml 11.86 CapOpAdml r155.31 +0.18 37.37 +0.12 EMAdmr EqIncAdml 76.55 +0.08 ExtndAdml 81.95 +0.12 GNMAAdml 10.52 -0.02 GrwthAdml 71.10 +0.24 HlthCareAdml r 88.90 +0.10 HYCorAdml r 5.93 -0.02 25.88 -0.01 InfProAd IntlGrAdml 95.26 +0.02 ITBondAdml 11.43 -0.02 ITIGradeAdml 9.82 -0.01 LTGradeAdml 10.67 -0.02 MidCpAdml 185.14 +0.41 MuHYAdml 11.47 +0.01 ... MuIntAdml 14.23 MuLTAdml 11.75 +0.01 ... MuLtdAdml 10.97 ... MuShtAdml 15.78 PrmcpAdml r135.99 +0.17 DevMktY IntGrowY Data provided by 7.2 6.1 3.6 7.0 17.0 6.9 3.9 13.8 4.2 35.1 20.1 NA 8.1 13.3 16.9 12.1 9.0 3.8 24.6 7.0 2.2 2.5 3.0 3.3 3.3 13.0 25.8 7.5 NA NA NA 16.6 Net YTD NAV Chg %Ret REITAdml r 120.08 +0.53 NA SmCapAdml 68.54 +0.14 24.7 STBondAdml 10.43 -0.01 ... STIGradeAdml 10.68 13.7 TotBdAdml 10.79 -0.01 TotIntBdIdxAdm 22.00 -0.01 NA TotIntlAdmIdx r 30.17 +0.11 5.1 TotStAdml 64.76 +0.09 14.28 +0.05 TxMIn r NA ValAdml 39.79 -0.01 WdsrllAdml 69.22 +0.03 NA WellsIAdml 65.48 -0.02 WelltnAdml 74.01 +0.01 NA WndsrAdml 79.39 +0.10 VANGUARD FDS NA DivdGro 26.45 +0.13 HlthCare r 210.73 +0.24 34.4 INSTTRF2020 22.61 +0.02 13.6 INSTTRF2025 22.88 +0.02 12.1 INSTTRF2030 23.08 +0.03 17.6 INSTTRF2035 23.28 +0.04 32.3 INSTTRF2040 23.48 +0.05 25.6 INSTTRF2045 23.62 +0.04 35.6 IntlVal 39.60 +0.12 26.3 LifeGro 33.28 +0.05 19.4 LifeMod 27.03 +0.03 22.0 PrmcpCor 26.92 +0.03 7.6 SelValu r 33.30 +0.01 27.6 STAR 27.28 +0.01 3.8 STIGrade 10.68 ... 26.1 TgtRe2015 15.97 ... 14.0 TgtRe2020 31.72 +0.03 15.8 TgtRe2025 18.60 +0.02 17.4 TgtRe2030 33.60 +0.04 18.8 TgtRe2035 20.64 +0.03 19.8 TgtRe2040 35.56 +0.06 15.6 TgtRe2045 22.34 +0.04 TgtRe2050 35.94 +0.07 25.8 TgtRetInc 13.62 +0.01 TotIntBdIxInv 11.00 -0.01 27.7 WellsI 27.03 -0.01 42.85 ... Welltn 6.0 WndsrII 39.00 +0.01 VANGUARD INDEX FDS 17.8 500 239.80 +0.35 ExtndIstPl 202.24 +0.31 17.1 SmValAdml 55.00 +0.05 23.3 TotBd2 10.75 -0.01 18.03 +0.06 TotIntl 13.9 TotSt 64.74 +0.10 VANGUARD INSTL FDS 17.8 BalInst 34.17 +0.01 11.5 DevMktsIndInst 14.30 +0.06 5.2 DevMktsInxInst 22.34 +0.08 25.0 ExtndInst 81.95 +0.13 28.0 GrwthInst 71.11 +0.24 14.2 InPrSeIn 10.54 -0.01 13.6 InstIdx 236.62 +0.35 2.1 InstPlus 236.64 +0.35 25.2 InstTStPlus 58.09 +0.08 17.3 MidCpInst 40.90 +0.09 6.5 MidCpIstPl 201.70 +0.44 2.5 SmCapInst 68.54 +0.14 41.5 STIGradeInst 10.68 ... 4.0 TotBdInst 10.79 -0.01 4.4 TotBdInst2 10.75 -0.01 9.9 TotBdInstPl 10.79 -0.01 14.8 TotIntBdIdxInst 33.01 -0.01 7.6 TotIntlInstIdx r120.63 +0.41 4.9 TotItlInstPlId r120.66 +0.42 6.4 TotStInst 64.77 +0.09 2.6 ValueInst 39.79 -0.01 1.4 Western Asset 25.0 CorePlusBdI NA ... 5.6 12.0 1.4 2.3 3.5 2.4 24.9 17.0 24.0 11.9 12.1 8.4 11.8 15.6 14.6 17.2 12.3 13.8 15.1 16.4 17.8 18.3 24.7 16.5 13.0 21.4 15.7 16.0 2.2 10.1 12.2 13.8 15.1 16.3 17.7 18.3 18.3 7.6 2.3 8.4 11.7 12.1 17.7 13.7 7.1 3.4 24.7 17.0 11.4 24.1 24.0 13.7 25.2 2.5 17.8 17.8 17.0 14.8 14.8 12.0 2.3 3.5 3.5 3.5 2.4 24.9 24.9 17.0 11.9 NA For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B8 | Thursday, November 9, 2017 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 23563.36 s 6.13, or 0.03% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.30 20.33 P/E estimate * 19.35 16.91 Dividend yield 2.16 2.57 All-time high 23563.36, 11/08/17 Nasdaq Composite Index Last 2594.38 s 3.74, or 0.14% 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: 2594.38, 11/08/17 Last Year ago 6789.12 s 21.34, or 0.32% 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: 6789.12, 11/08/17 Current divisor 0.14523396877348 23500 2580 6750 23000 2550 6650 22500 2520 6550 22000 2490 6450 21500 2460 6350 Session high t DOWN Session open t Close UP Close Open Session low 65-day moving average 65-day moving average 65-day moving average 6250 2430 21000 Bars measure the point change from session's open Sept. Oct. 6150 2400 20500 Aug. Aug. Nov. Sept. Oct. Aug. Nov. Sept. Oct. Nov. 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 52-Week Low High % chg YTD % chg 3-yr. ann. Dow Jones Industrial Average Transportation Avg Utility Average Total Stock Market Barron's 400 23575.00 23510.56 23563.36 9652.94 9596.23 761.54 754.42 0.03 6.13 9630.77 -41.02 -0.42 759.59 0.67 0.09 26838.61 26725.07 26825.65 683.32 678.33 682.73 38.82 1.64 0.14 Nasdaq Stock Market Nasdaq Composite 6791.65 Nasdaq 100 6346.98 6753.34 6308.62 6789.12 6345.81 0.24 0.32 21.34 25.03 0.40 Standard & Poor's 500 Index 2595.47 2585.02 2594.38 3.74 MidCap 400 SmallCap 600 1837.20 898.08 1824.87 888.23 1836.09 896.98 5.47 3.91 Other Indexes Russell 2000 1482.86 1469.34 1481.73 2.64 0.18 12390.53 12344.15 12384.72 13.47 0.11 NYSE Composite 539.78 536.03 539.39 1.18 NYSE Arca Biotech 4186.39 4136.32 4144.74 0.36 NYSE Arca Pharma Value Line 539.92 533.80 538.95 4.78 KBW Bank 99.37 98.47 -0.91 PHLX§ Gold/Silver 98.78 82.95 82.27 0.54 PHLX§ Oil Service 82.41 142.64 139.50 141.12 0.54 1321.90 10.27 1310.36 9.50 1321.13 9.78 PHLX§ Semiconductor CBOE Volatility 0.14 19.2 8397.31 14.7 6.5 2.5 759.59 625.44 17.6 15.2 8.0 26830.60 22353.71 691.56 549.08 20.0 24.3 15.2 13.5 8.3 8.2 6789.12 6345.81 29.3 31.5 26.1 30.5 13.6 15.1 2163.26 19.9 15.9 8.5 1843.36 0.44 918.72 1540.63 748.27 19.2 19.9 10.6 7.0 8.7 9.7 1232.16 20.3 9.2 8.1 0.22 0.01 0.90 1512.09 12430.52 10643.41 16.4 12.0 4.5 545.98 476.17 13.3 6.6 2.8 4304.77 3075.02 24.8 34.8 8.1 560.52 463.78 8.4 11.9 0.6 102.31 78.83 25.3 7.6 10.5 96.72 73.03 -8.3 4.5 6.1 0.38 192.66 117.79 -9.5 0.35 1321.13 16.04 -0.91 0.66 4.58 -0.11 -1.11 5208.80 4702.04 10.3 2594.38 806.09 60.4 9.14 -32.0 Trading Diary Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares. Volume, Advancers, Decliners Region/Country Index Close Most-active issues in late trading Company Volume (000) Symbol SPDR S&P 500 Last Net chg 9,630.6 259.10 SPY After Hours % chg High -0.01 Net chg YTD % chg 2.91 0.65 0.48 0.10 0.17 0.18 17.9 18.7 22.0 DJ Americas 623.60 Sao Paulo Bovespa 74363.13 S&P/TSX Comp 16105.35 S&P/BMV IPC 48835.69 Santiago IPSA 4160.57 1.28 1948.26 –26.44 –168.83 –5.94 0.21 15.4 23.5 5.3 7.0 29.1 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 100 394.45 396.99 4085.49 5471.43 13382.42 1419.14 22831.30 554.77 1150.36 10228.70 592.44 9265.83 7529.72 –0.20 –0.30 –12.15 –9.21 3.15 –4.22 –131.29 0.97 3.38 –2.00 –3.16 45.67 16.61 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 6016.30 Shanghai Composite 3415.46 Hang Seng 28907.60 S&P BSE Sensex 33218.81 Nikkei Stock Avg 22913.82 Straits Times 3421.25 Kospi 2552.40 Weighted 10818.99 2.00 1.89 –86.74 –151.95 –23.78 8.15 6.96 –21.35 5,428.2 45.49 0.03 0.07 45.49 45.33 JPMorgan Chase JPM 4,603.5 97.70 0.06 0.06 97.85 97.45 Otonomy OTIC 3,588.8 5.40 2.60 92.86 7.50 2.80 Wells Fargo WFC 3,567.2 54.26 ... unch. 54.42 54.17 VanEck Vectors Gold Miner GDX 3,351.7 22.88 -0.01 -0.04 22.91 22.85 General Electric GE 2,739.1 20.12 ... unch. 20.20 20.08 Comcast Cl A CMCSA 2,513.3 36.21 ... unch. 36.50 36.18 Percentage gainers… Otonomy OTIC 3,588.8 5.40 2.60 92.86 7.50 2.80 Roku Cl A ROKU 2,276.1 23.80 4.96 26.33 24.40 18.42 89.6 37.00 4.50 13.85 37.25 32.42 Overstock.com OSTK 502.4 44.00 3.90 9.73 46.50 40.00 Viking Therapeutics VKTX 5.6 2.30 0.15 6.98 2.49 2.17 5.69 SolarEdge Technologies SEDG ...And losers OPKO Health OPK 625.9 5.84 -0.61 -9.46 6.52 Babcock Wilcox Ents BW 52.5 3.55 -0.36 -9.21 4.21 3.50 -23.2 -17.2 Pegasystems PEGA 80.9 50.70 -4.45 -8.07 55.68 50.70 45.7 -30.3 Stericycle SRCL 42.1 61.70 -5.40 -8.05 67.11 60.25 SRC Energy SRCI 106.5 8.40 -0.67 -7.39 9.10 8.25 27.5 -9.3 2.69 –0.16 –0.34 –0.14 –0.05 –0.08 –0.30 –0.17 –0.30 –0.57 –0.02 –0.53 0.02 0.18 0.29 0.50 0.22 0.03 0.06 –0.30 –0.46 –0.10 0.24 0.27 –0.20 9.1 13.3 13.3 12.5 16.6 –3.5 18.7 14.8 –0.2 9.4 10.8 12.7 5.4 6.2 10.0 31.4 24.8 19.9 18.8 26.0 16.9 Company Symbol KBS Fashion Group Kingtone Wirelessinfo ADR Forterra Container Store Group American Public Education KBSF MBIA Inc Cheetah Mobile ADR IZEA DepoMed Borqs Technologies MBI Invacare Corp GenMark Diagnostics Fuwei Films Synaptics Five Prime Therapeutics IVC KONE FRTA TCS APEI CMCM IZEA DEPO BRQS GNMK FFHL SYNA FPRX 8.22 5.59 7.67 5.20 25.15 5.56 208.64 2.33 71.47 2.61 51.58 1.37 35.77 5.60 28.64 8.89 11.40 4.10 5.70 5.05 1.96 2.38 0.83 1.14 0.91 16.90 4.93 2.85 42.95 30.44 2.95 0.83 0.45 6.73 4.58 52-Week Low % chg High Symbol Snap AT&T Bank of America Camber Energy Advanced Micro Devices SNAP Time Warner SeaDrill Finl Select Sector SPDR Ambev ADR OncoSec Medical TWX BAC CEI AMD 52.2 21.5 -56.7 4.2 39.0 TOP Ships Ceco Environmental RedHill Biopharma ADR Myomo Contango Oil Gas TOPS 28.28 26.39 25.38 25.00 21.98 11.65 13.79 7.85 21.56 13.00 6.04 7.54 1.37 4.31 4.00 7.1 13.4 -18.0 -71.2 -51.0 Vitamin Shoppe Electromed Diana Containerships Xenon Pharmaceuticals Fossil Group VSI 21.15 20.24 18.75 18.58 17.71 16.95 9.90 13.67 3.63 5.20 1.48 64.54 33.73 60.98 21.41 57.2 -61.2 62.7 -19.9 -44.0 Liberty Tax ITUS Flotek Industries Endologix LendingClub TAX Volume % chg from Latest Session (000) 65-day avg Close % chg 55,728 55,397 54,853 53,583 51,198 SDRL XLF ABEV ONCS Selected rates A consumer rate against its benchmark over the past year Five-year ARM, Rate Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, 4.00% 3.00 2.00 t 1.00 0.00 D J FMAM J J A S O N 2017 Foxboro Federal Savings Foxboro, MA 2.88% 877-369-3331 Rosedale FS&LA Baltimore, MD 2.88% 410-668-4400 Your Equity Services Sammamish, WA 2.88% 425-392-2295 Langley Federal Credit Union 3.00% Newport News, VA 800-826-7490 Wednesday t 5-year Treasury note yield ThirdFederalSavingsandLoanAssociationofCleveland 2.69% Cleveland, OH 866-627-1785 t 5-year adjustablerate mortgage t (ARM) 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 1.41 Money market, annual yield 0.32 0.33 Five-year CD, annual yield 1.47 1.48 30-year mortgage, fixed† 3.93 3.86 15-year mortgage, fixed† 3.23 3.22 Jumbo mortgages, $424,100-plus† 4.22 4.28 Five-year adj mortgage (ARM)† 3.45 3.46 New-car loan, 48-month 3.01 3.02 HELOC, $30,000 5.18 5.06 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.89 l 0.26 l 1.19 l l 3.63 l 2.86 l 4.22 l 3.16 l 2.85 l 4.57 1.25 4.25 1.41 0.36 1.48 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.18 -0.09 -0.07 -0.16 0.02 -0.08 -0.16 -0.22 0.70 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com FTK ELGX LC SPDR Portfolio EM iSh iBonds Mar 2020 Corp Voyager Therapeutics Time Warner Ceco Environmental 0 1.50 –5 0.75 –10 0.00 –15 30 Symbol 3.45 6.00 11.71 2.60 5.67 -0.85 -1.34 -2.56 -0.55 -1.18 26.60 -19.77 7.96 -18.26 -17.94 1131015.06 9.95 -17.46 36.87 -17.23 2.95 3.38 1.56 2.25 5.50 -85.5 74.9 -99.9 -68.1 -79.8 11.00 2.35 4.28 4.84 4.59 -2.25 -0.47 -0.82 -0.93 -0.87 -16.98 -16.67 -16.08 -16.06 -15.93 16.20 10.80 6.25 0.60 14.51 4.14 10.36 4.08 6.79 4.20 -7.6 -59.1 -62.3 -49.5 -18.2 SPEM IBDC VYGR TWX CECE Volume % chg from Latest Session (000) 65-day avg Close % chg 3,233 8,318 2,256 180 199 3796 3269 2336 1736 1146 52.22 1.30 27.18 -0.33 5.28 -29.60 62.18 0.31 26.14 1.31 1,353 127 4,728 55,728 1,587 1113 1078 1078 1028 1002 37.45 0.54 26.17 -0.02 12.85 -3.96 88.50 -6.51 5.70 -33.87 52-Week High Low 52.31 28.59 12.65 65.29 26.76 35.68 24.89 5.17 52.04 20.47 37.68 27.91 26.40 25.90 25.99 8.10 103.90 85.22 14.88 5.66 Currencies WSJ Dollar index s Euro s Yen Country/currency US$vs, YTDchg Wed in US$ per US$ (%) Americas Argentina peso .0571 17.5195 10.4 Brazil real .3073 3.2545 –0.02 Canada dollar .7856 1.2729 –5.3 Chile peso .001583 631.70 –5.7 Colombia peso .0003316 3015.70 0.5 Ecuador US dollar 1 1 unch Mexico peso .0524 19.0898 –7.9 Peru new sol .3080 3.246 –3.2 Uruguay peso .03423 29.2100 –0.5 Venezuela b. fuerte .092407 10.8217 8.3 Asia-Pacific 2017 Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 2.117 2.143 2.237 1.710 –0.602 2.066 2.325 3.095 2.600 5.370 2.820 1.926 2.378 3.059 2.620 5.205 2.870 1.999 2.609 3.390 2.790 6.448 3.120 2.516 2.058 –0.071 1.900 2.879 4.215 3.899 2.300 1.256 2.449 4.948 8.181 3.936 2.490 0.760 2.120 1.736 2.865 2.897 796.369 5.632 5.457 6.290 5.279 5.476 5.532 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7678 1.3024 China yuan .1509 6.6286 Hong Kong dollar .1282 7.7979 India rupee .01541 64.905 Indonesia rupiah .0000740 13512 Japan yen .008782 113.87 Kazakhstan tenge .003000 333.32 Macau pataca .1246 8.0275 Malaysia ringgit .2365 4.2290 New Zealand dollar .6966 1.4355 Pakistan rupee .00951 105.200 Philippines peso .0195 51.226 Singapore dollar .7343 1.3618 South Korea won .0008974 1114.31 Sri Lanka rupee .0065202 153.37 Taiwan dollar .03313 30.183 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets –6.2 –4.6 0.5 –4.5 –0.1 –2.7 –0.1 1.4 –5.7 –0.6 0.8 3.3 –5.9 –7.8 3.3 –7.0 US$vs, YTDchg Wed in US$ per US$ (%) Country/currency .03020 33.110 –7.5 .00004403 22710 –0.3 Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound .04532 22.066 –14.1 .1558 6.4187 –9.2 1.1596 .8624 –9.3 .003719 268.87 –8.6 .009567 104.53 –7.5 .1225 8.1658 –5.5 .2738 3.6521 –12.8 .01688 59.235 –3.3 .1193 8.3807 –8.0 .9998 1.0002 –1.8 .2586 3.8671 9.8 .0375 26.6690 –1.5 1.3117 .7624 –5.9 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6452 .3781 0.2 .0567 17.6445 –2.7 .2848 3.5113 –8.8 3.3036 .3027 –1.0 2.5974 .3850 0.01 .2608 3.835 5.3 .2667 3.7502 –0.01 .0707 14.1531 3.4 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.83 –0.10–0.11 –5.49 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Wednesday 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 -99.9 -44.1 -56.7 ... -61.8 U.S.-dollar foreign-exchange rates in late New York trading 10% 2.25 0.32 5.66 5.17 2.53 3.24 * 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 Yen, euro vs. dollar; dollar vs. major U.S. trading partners 5 52-Week Low % chg Ranked by change from 65-day average* 85.22 0.15 20.11 4.70 0.88 1464.303 EMBI Global, J.P. Morgan ITUS 103.90 4.59 26.93 7.03 2.55 10-yr Treasury, Ryan ALM 1738.261 DJ Corporate 379.136 Aggregate, Barclays Capital 1944.200 High Yield 100, Merrill Lynch 2850.079 Fixed-Rate MBS, Barclays 1989.290 Muni Master, Merrill 524.049 Treasury, Ryan ALM FOSL 1028.3 88.50 -6.51 411.9 0.36 -11.85 6.9 26.25 -0.49 175.1 6.18 0.98 5944.4 2.00 60.00 3.00 Close XENE FXL First Tr Tech AlphaDEX FXU First Tr Util AlphaDEX RDHL RedHill Biopharma ADR JPMorgan Div Return US MC JPME WisTree EM Qlty Div Grwth DGRE Corporate Borrowing Rates and Yields Bond total return index DCIX 11.28 32.55 17.40 0.14 6.22 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago ELMD High -61.21 151200.00 14.88 -33.87 12.65 -29.60 23.20 -29.38 10.39 -27.19 MCF 29.44 43.03 27.98 1.94 15.65 12.91 33.44 26.79 0.28 11.71 Forex Race 3.75% 3.45% * 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. -1.42 -2.92 -2.22 -2.60 -1.21 MYO -14.62 1.12 -1.43 71.61 -2.82 483.4 197.0 27.0 2922.2 0.5 * Volumes of 100,000 shares or more are rounded to the nearest thousand notes and bonds Bankrate.com avg†: NYSE Arca 0.90 5.70 5.28 6.25 3.24 RDHL Company s U.S. consumer rates Nasdaq Total volume*2,072,201,865 201,129,198 Adv. volume*1,095,686,332 128,470,489 Decl. volume* 944,147,262 70,895,703 Issues traded 3,058 1,313 Advances 1,420 830 Declines 1,489 454 Unchanged 149 29 New highs 124 149 New lows 95 24 Closing tick 30 84 Closing Arms† 0.82 1.14 Block trades* 7,966 1,178 Latest Session Close Net chg % chg CECE 52-Week High Low CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor Symbol Volume Movers 161,925 87,043 81,242 68,680 58,609 T Company 18.00 1.41 8.00 2.63 22.76 3.02 8.34 3.53 27.20 15.50 Most Active Stocks Company Total volume* 879,271,538 14,021,016 Adv. volume* 439,093,212 10,007,555 Decl. volume* 423,215,508 3,855,195 Issues traded 3,061 331 Advances 1,495 146 Declines 1,439 171 Unchanged 127 14 New highs 123 6 New lows 85 5 Closing tick 44 28 Closing Arms† 1.12 0.21 Block trades* 7,048 152 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group WSJ .COM Low unch. 259.15 258.74 Verizon Communications VZ Percentage Gainers... Latest % chg 2984.71 386.89 260.93 The Global Dow DJ Global Index DJ Global ex U.S. Interest rate NYSE NYSE Amer. Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes Americas Brazil Canada Mexico Chile 26.8 10038.13 0.30 Philadelphia Stock Exchange World 23563.36 18589.69 Late Trading TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 615.74 1.86 191.89 56.81 3.175 1281.60 0.04 -0.39 0.023 7.90 0.30 616.46 532.01 0.02 195.14 57.35 -0.68 3.93 0.73 0.62 1346.00 166.50 42.53 2.56 1127.80 % Chg 14.57 YTD % chg 8.55 4.29 -0.32 5.75 25.49 18.03 -14.74 0.71 11.44 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. Thursday, November 9, 2017 | B9 COMMODITIES Futures Contracts Contract High hilo Low Open Settle Coffee (ICE-US)-37,500 lbs.; cents per lb. Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. Nov 3.0925 3.0985 3.0925 3.0930 0.0105 Dec 3.0875 3.1115 3.0665 3.0995 0.0105 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1275.90 1284.90 1274.70 1281.60 7.90 Dec 1276.40 1288.10 1276.10 1283.70 7.90 Feb'18 1281.40 1292.20 1281.00 1288.00 7.90 April 1287.00 1296.30 1287.00 1292.20 8.00 June 1290.00 1300.40 1289.50 1296.40 8.10 Dec 1307.40 1313.00 1306.20 1309.00 8.40 Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 993.00 1017.35 s 992.10 1015.80 21.70 March'18 989.00 1009.25 s 986.85 1008.15 21.60 June 982.00 999.75 s 982.00 998.65 18.20 Platinum (NYM)-50 troy oz.; $ per troy oz. Nov 928.30 928.70 928.30 934.60 12.50 Jan'18 925.20 939.30 925.20 937.90 12.60 Silver (CMX)-5,000 troy oz.; $ per troy oz. Nov 16.925 16.925 16.925 17.106 0.201 Dec 16.950 17.265 16.950 17.138 0.198 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Dec 56.96 57.92 56.41 56.81 –0.39 Jan'18 57.22 58.14 56.65 57.05 –0.38 Feb 57.33 58.27 s 56.83 57.22 –0.37 March 57.43 58.34 s 56.98 57.32 –0.31 June 57.10 57.94 s 56.73 57.05 –0.16 Dec 54.96 55.80 54.79 55.18 0.06 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Dec 1.9215 1.9438 1.9041 1.9216 –.0003 Jan'18 1.9279 1.9481 1.9093 1.9251 –.0022 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Dec 1.8060 1.8402 s 1.7963 1.8213 .0060 Jan'18 1.7838 1.8151 s 1.7749 1.7968 .0035 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 3.151 3.190 3.114 3.175 .023 Jan'18 3.250 3.285 3.213 3.272 .021 Feb 3.250 3.284 3.216 3.275 .023 March 3.211 3.240 3.178 3.231 .019 April 2.959 2.984 2.946 2.975 .010 May 2.934 2.956 2.921 2.949 .011 125.05 128.50 125.90 129.40 124.20 127.65 125.75 129.20 March May 14.70 14.76 14.86 14.93 14.62 14.69 14.84 14.91 March May 27.22 27.10 27.22 27.10 27.22 27.10 27.22 27.10 Dec March'18 68.07 68.46 69.15 69.32 68.06 68.36 68.63 68.86 162.00 159.45 162.00 161.10 162.00 159.00 161.30 160.75 Dec March'18 Open interest 1.05 1.00 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. 741 143,514 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 84 345,546 125,397 18,347 15,879 11,076 Cotton (ICE-US)-50,000 lbs.; cents per lb. 29,340 6,014 211 473,708 423,202 166,767 249,168 226,759 267,416 114,836 95,229 139,092 107,933 228,571 243,683 90,123 172,331 122,645 80,829 1.25 .65 .50 696,704 .25 414,347 Nov Dec .8785 .8799 .8820 .8833 .8784 .8792 .8791 .8803 .0006 2,488 .0006 278,105 Nov Dec .7855 .7833 .7856 .7867 .7853 .7830 .7859 .7861 .0036 1,255 .0036 141,573 Nov Dec 1.3146 1.3183 1.3170 1.3190 1.3095 1.3100 1.3114 –.0055 769 1.3126 –.0055 171,506 Dec March'18 1.0029 1.0111 1.0044 1.0113 1.0018 1.0091 1.0023 –.0005 1.0093 –.0005 .7643 .7646 .7648 .7647 .7647 .7667 .7683 .7682 .7679 .7678 .7677 .7667 .7643 .7641 .7648 .7647 .7646 .7667 British Pound (CME)-£62,500; $ per £ 4,418 2,928 Swiss Franc (CME)-CHF 125,000; $ per CHF 2.00 3,163 2.50 323,172 Australian Dollar (CME)-AUD 100,000; $ per AUD Nov Dec Jan'18 Feb March June –.30 105,922 –.30 101,406 .35 132,055 .35 115,939 .05183 .05214 Dec March'18 .05109 .05135 Euro (CME)-€125,000; $ per € 1.1599 1.1611 Nov Dec 1.1616 1.1636 –.50 250,981 –1.00 157,491 –2.550 –3.625 6,884 30,129 Dec March'18 .03 –.14 4,458 4,338 23507 s 23497 s 23461 23462 1.1598 1.1620 23434 23428 2592.20 s 2582.20 2580.00 Mini S&P 500 (CME)-$50 x index .0007 5,257 .0008 429,096 23491 23484 3 154,485 3 1,724 2590.90 4.10 2584.00 2592.50 s 2579.75 2591.00 Dec March'18 2584.75 2593.00 s 2580.25 2591.50 Mini S&P Midcap 400 (CME)-$100 x index 1828.20 1836.60 1823.30 1835.30 Dec Mini Nasdaq 100 (CME)-$20 x index 6310.5 6345.5 s 6301.5 6341.5 Dec March'18 6320.3 6360.3 s 6316.3 6356.3 Mini Russell 2000 (ICE-US)-$100 x index 1474.90 1483.10 1466.90 1482.40 Dec March'18 1470.00 1477.80 1470.00 1483.30 Mini Russell 1000 (ICE-US)-$100 x index 1432.20 1436.20 1430.60 1435.70 Dec U.S. Dollar Index (ICE-US)-$1,000 x index 94.77 94.87 94.68 94.77 Dec March'18 94.45 94.53 94.39 94.46 86,981 74,321 422 5,430 .05196 .00025 176,815 .05118 .00024 561 1.1583 1.1603 S&P 500 Index (CME)-$250 x index –1.700 116,496 –1.800 116,448 –3.00 –1.30 .0035 1,358 .0035 121,426 .0035 744 .0035 453 .0035 907 .0035 244 Mini DJ Industrial Average (CBT)-$5 x index Dec –.375 –1.125 .05183 .05107 78,859 217 Index Futures 1.00 140,784 1.25 110,968 34,145 27,235 .7676 .7674 .7672 .7671 .7670 .7667 Mexican Peso (CME)-MXN 500,000; $ per MXN 22 9,355 8.75 8.50 40 5,985 Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Canadian Dollar (CME)-CAD 100,000; $ per CAD –10.00 –10.50 2,801 1,808 154-170 154-260 154-040 154-110 –11.0 751,740 Dec March'18 153-160 153-210 153-000 153-060 –11.0 12,567 Treasury Notes (CBT)-$100,000; pts 32nds of 100% 125-120 125-150 125-050 125-080 –5.5 3,152,465 Dec March'18 125-055 125-065 124-290 124-310 –5.5 38,633 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 117-080 117-095 117-045 117-062 –2.7 3,094,822 Dec March'18 117-017 117-020 116-305 116-315 –2.7 55,748 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 107-197 107-205 107-190 107-195 –.7 1,743,218 Dec March'18 107-157 107-160 107-150 107-152 –.2 59,983 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.843 98.843 98.843 98.843 … 210,813 Nov Jan'18 98.615 98.615 t 98.610 98.615 –.005 348,014 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 101.500 101.531 101.297 101.391 –.125 29,219 Dec 1 Month Libor (CME)-$3,000,000; pts of 100% ... ... ... 98.7475 –.0025 928 Nov Eurodollar (CME)-$1,000,000; pts of 100% 98.5800 98.5825 98.5775 98.5775 –.0025 96,175 Nov Dec 98.4650 98.4700 98.4600 98.4600 –.0050 1,696,177 March'18 98.3200 98.3250 98.3150 98.3200 … 1,286,038 Dec 98.0550 98.0700 98.0500 98.0600 –.0050 1,614,229 3 131,204 –1.00 3.00 .22 –.05 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 12 70,865 53 44,293 49 129,115 Cash Prices Wednesday, November 08, 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. Wednesday .12 407,379 .15 137,397 Interest Rate Futures Agriculture Futures Corn (CBT)-5,000 bu.; cents per bu. Dec 347.50 349.00 345.75 348.25 March'18 360.75 361.75 359.00 361.25 Oats (CBT)-5,000 bu.; cents per bu. Dec 269.75 270.75 264.50 269.50 March'18 272.50 276.00 270.75 275.75 Soybeans (CBT)-5,000 bu.; cents per bu. Nov 985.25 988.75 984.25 988.00 Jan'18 996.00 999.50 994.75 998.50 Soybean Meal (CBT)-100 tons; $ per ton. Dec 315.70 316.50 314.20 315.20 Jan'18 317.90 318.60 316.30 317.40 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 34.97 35.40 34.92 35.37 Jan'18 35.13 35.57 35.07 35.53 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Nov ... ... ... 1114.00 Jan'18 1153.50 1156.00 1137.00 1141.00 Wheat (CBT)-5,000 bu.; cents per bu. Dec 427.25 427.50 419.00 426.75 March'18 445.25 445.25 436.75 443.75 Wheat (KC)-5,000 bu.; cents per bu. Dec 426.75 428.00 419.00 427.50 March'18 443.75 445.25 436.50 445.00 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 633.50 649.00 632.00 643.50 March'18 644.00 658.25 642.75 654.50 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Nov 159.575 159.775 157.125 157.325 Jan'18 160.025 160.575 156.650 156.900 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 124.550 124.575 122.150 122.925 Feb'18 130.300 130.300 127.975 128.575 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 64.125 64.250 63.350 63.550 Feb'18 70.850 70.975 69.550 69.750 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Nov 464.00 467.00 459.40 461.80 Jan'18 455.70 459.00 451.60 455.80 Milk (CME)-200,000 lbs., cents per lb. Nov 16.46 16.63 16.46 16.50 Dec 15.44 15.44 t 15.21 15.28 Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 2,179 2,228 2,164 2,216 March'18 2,154 2,197 2,144 2,188 97,890 78,426 .56 84,588 .40 104,326 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Nov Jan'18 Open interest Chg 62,200 4.25 3,167,322 4.25 73,873 5.40 92,869 25.5 273,642 25.3 1,939 WSJ.com/commodities Wednesday (U.S.$ equivalent) Coins,wholesale $1,000 face-a Energy 0.9325 0.9850 3.150 3.130 3.190 2.840 2.960 2.360 3.020 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 Wednesday 16.9950 12401 SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u Other metals LBMA Platinum Price PM *926.0 Platinum,Engelhard industrial 931.0 Platinum,Engelhard fabricated 1031.0 Palladium,Engelhard industrial 1011.0 Palladium,Engelhard fabricated 1111.0 Aluminum, LME, $ per metric ton *2131.0 Copper,Comex spot 3.0930 Iron Ore, 62% Fe CFR China-s 62.5 Shredded Scrap, US Midwest-s,w n.a. Steel, HRC USA, FOB Midwest Mill-s 615 Metals Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w Fibers and Textiles Gold, per troy oz 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 1286.33 1382.80 1284.00 1425.24 *1276.35 *1275.60 1334.63 1347.47 1347.47 1555.27 1260.89 1347.47 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Grains and Feeds Silver, troy oz. 17.1000 20.5200 17.1900 21.4880 £12.9600 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 0.6150 0.6788 *79.70 68.500 n.a. n.a. 75 3.1700 91.0 492.9 225 88 220 2.9950 370.00 24.00 7.6913 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 Fats and Oils Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u 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 3.4 YTD total return (%) 2.600 2.300 2.790 U.S. Aggregate U.S. Corporate Indexes Bloomberg Barclays 1989.29 2.4 Mortgage-Backed 1955.04 1.9 Ginnie Mae (GNMA) 2.770 2.420 3.090 3.180 3.030 3.520 1167.01 2.6 Fannie mae (FNMA) 2.830 2.520 3.120 3.9 Intermediate 2.740 2.530 3.010 1797.28 2.7 Freddie Mac (FHLMC) 2.840 2.530 3.130 3862.90 9.9 Long term 4.110 4.100 4.710 524.05 568.04 4.3 Double-A-rated 2.660 2.470 2.870 366.75 3.460 3.340 3.870 412.31 398.56 5.7 U.S. Corporate 6.4 718.79 Triple-B-rated High Yield Bonds Merrill Lynch 7.0 415.76 8.3 416.52 6.2 2850.08 High Yield Constrained 5.697 5.373 6.858 5.0 Muni Master 1.926 1.736 2.516 7-12 year 1.928 1.744 2.618 6.9 12-22 year 2.337 2.213 3.047 7.4 22-plus year 2.770 2.742 3.622 5.6 Global Government J.P. Morgan† Triple-C-rated 10.685 9.584 13.189 545.76 1.6 Global Government 1.390 1.170 1.560 High Yield 100 5.370 4.948 6.448 758.60 0.7 Canada 1.970 1.560 2.190 377.94 7.3 Global High Yield Constrained 5.156 4.934 6.450 373.65 1.3 EMU§ 1.008 0.869 1.363 7.4 Europe High Yield Constrained 1.982 1.897 3.814 715.67 1.3 France 0.760 0.590 1.210 Germany 0.400 0.210 0.620 Japan 0.380 0.170 0.460 Netherlands 0.520 0.340 0.760 1.530 1.340 1.790 67,805 84 308.19 2.70 278 1641.07 2.2 U.S Agency 2.000 1.470 2.010 288.78 –.03 –.04 48,818 2,460 1466.52 1.4 10-20 years 1.840 1.270 1.840 564.45 20-plus years 2.900 2.730 3.460 926.82 1.5 U.K. 2.830 2.610 3.090 796.37 7.8 Emerging Markets ** 5.632 5.279 6.290 511.37 U.S Agency Bloomberg Barclays 8.0 3375.79 4.9 Yankee 2460.87 -0.6 0.2 -0.3 Global Government Bonds: Mapping Yields Crude oil and petroleum prod Crude oil excluding SPR Gasoline Finished gasoline Reformulated Conventional Blend. components 1,257,009 Natural gas (bcf) Kerosene-type jet fuel Distillates Heating oil Diesel Residual fuel oil Other oils ... 1,266 1,334 1,270 Expected Previous Current change week 1,192 ... 9,550 -2,100 ... -1,800 ... ... ... 455 213 22 0 22 191 485 221 26 0 26 195 456 215 22 0 22 193 424 210 34 0 34 175 7,377 405 6 0 6 399 ... ... ... ... ... ... 3,775 ... 4 4 4 4 ... ... ... 40,063 125,562 10,294 115,268 32,663 293,496 ... -1,200 ... ... ... ... 41 129 11 118 33 296 42 149 14 134 39 279 41 130 11 119 33 295 39 126 19 107 39 253 213 86 0 86 102 1,196 ... ... ... ... ... ... 248 137 41 96 155 863 3,696 ... ... 1,937 2,029 1,941 1,887 Current 21,301 ... 19,184 Year ago 20,191 4-week avg 4-week avg 5-year avg 9,679 7,571 7,442 540 500 12 7 0 0 12 7 528 493 9,575 5-year avg ... ... 2.050 222 107 24 83 136 604 215 116 12 104 160 947 72 130 37 92 226 754 2,668 9,496 ... 9,461 9,213 9,352 9,086 jet fuel Distillates Residual fuel oil Propane/propylene Other oils 1,835 4,486 331 1,322 3,832 ... ... ... ... ... 1,628 3,534 130 779 3,651 1,794 4,043 580 1,302 3,259 1,741 3,900 399 1,053 3,465 1,464 4,086 252 ... ... 3250 1250 Five-year average for each week 250 J A S O Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Exchange-Traded Portfolios | WSJ.com/ETFresearch ETF Wednesday, November 8, 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 10.84 91.92 53.74 24.42 5.54 69.82 26.25 97.10 81.72 71.86 109.66 104.96 123.07 65.51 56.39 62.59 260.94 183.16 73.63 59.29 109.51 95.00 71.91 51.73 12.31 120.90 87.35 114.60 106.83 70.84 69.87 –1.45 –14.0 0.11 12.9 3.9 1.09 1.58 21.4 –1.00 –19.2 –0.48 –7.3 –0.49 12.9 0.12 12.1 0.23 18.5 –0.17 15.5 1.4 –0.13 0.0 –0.05 0.5 –0.07 0.34 22.2 0.50 32.8 0.35 24.0 0.17 16.0 0.27 10.8 7.1 0.45 0.15 15.6 1.3 –0.06 7.3 0.22 0.25 17.5 0.29 14.4 0.41 11.1 3.2 –0.13 0.9 –0.44 4.0 –0.04 0.5 –0.09 0.20 19.7 0.33 21.0 ETF ETF Closing Chg YTD Symbol Price (%) (%) 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 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 63.11 46.78 43.51 60.02 312.80 111.16 131.42 144.18 119.80 179.69 147.20 122.02 153.35 201.30 86.02 210.19 150.11 109.24 38.33 114.23 84.18 106.41 126.36 116.84 101.75 154.50 47.06 23.06 36.75 121.63 34.29 62.55 61.91 0.11 0.47 0.18 0.62 –0.39 0.03 0.36 0.19 –0.03 0.48 0.14 –0.15 0.18 0.17 0.07 0.48 0.29 –0.03 0.18 –0.06 –0.01 –0.12 –0.22 0.39 ... 0.40 0.28 –0.22 –0.49 0.35 0.35 0.11 0.18 26.6 33.6 25.8 22.8 17.9 2.8 25.3 15.8 6.9 16.7 9.2 2.6 15.3 12.5 7.0 15.4 23.3 7.8 3.0 0.9 –0.3 1.5 6.1 20.0 0.4 30.4 13.2 –1.3 0.8 11.0 23.9 15.4 16.2 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 (%) (%) 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 235.46 333.90 259.11 92.42 64.01 55.70 22.89 166.22 128.04 97.48 44.45 44.93 58.20 54.10 138.18 152.02 82.90 84.46 87.71 118.96 149.51 106.50 84.75 238.04 79.48 79.76 143.09 81.83 55.09 56.22 133.06 72.71 102.02 66.00 59.43 32.27 l 1.794 1.931 1.669 15.8 14.9 81.1 l 2.592 2.824 2.365 25.7 27.6 50.8 France 2 -0.612 s 10 0.559 s l -0.621 -0.494 l 0.554 0.735 Germany 2 -0.758 s 10 0.329 s l -0.764 -0.691 l 0.328 0.461 Italy 2 -0.253 t 10 1.737 s l -0.251 l 0.100 0.100 Japan 2 -0.206 t 10 0.024 t 2.750 1.450 -0.602 -225.7 0.495 -176.5 -226.6 -146.0 -176.3 -136.2 -0.627 -240.3 0.190 -199.6 -240.9 -148.5 -198.9 -166.7 -0.117 -0.024 -189.8 -189.6 -88.2 1.702 2.148 1.649 -58.8 -61.5 -20.8 l -0.190 -0.139 -0.259 -111.7 0.031 0.055 -185.1 -0.064 -230.1 -183.5 l -228.6 -192.0 Spain 2 -0.354 s 10 1.471 s l -0.394 -0.260 -0.217 -200.0 -203.9 -107.5 l 1.413 1.661 1.248 -85.4 -90.4 -60.9 0.459 s 1.228 t l 0.437 0.435 0.221 -118.6 -120.8 -63.7 l 1.234 1.369 1.133 -109.7 -108.3 -72.4 1.750 U.K. 2 4.250 10 Source: Tullett Prebon in that same company’s share price. 2250 Largest 100 exchange-traded funds, latest session 1.803 s 2.581 t Investment-grade spreads that tightened the most… t J F M A M J 2017 0.858 1.857 5,644 4250 N D 1.520 2.361 Corporate Debt t motor gasoline Kerosene-type 0.050 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago 1.645 2.317 10 0.500 Year ago l Australia 2 0.000 Month ago l 2.750 2.750 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous U.S. 2 1.645 s 10 2.325 s 2.750 ... Natural gas, lower 48 states Finished 1.500 2.250 0.000 Billions of cubic feet; weekly totals 19,909 19,678 Country/ Coupon (%) Maturity, in years 7,732 541 67 0 67 474 1,951 4,342 † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan 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 7,639 467 36 0 36 431 Natural gas storage Weekly Demand, 000s barrels per day Expected Previous change week Year ago 9,629 9,232 457,143 209,537 22,198 51 22,147 187,339 Net crude, petroleum products, incl. SPR 1,926,915 Total petroleum product ** EMBI Global Index Imports, 000s barrels per day 5-year avg 2.820 2.490 3.120 2621.64 2783.29 Inventories, imports and demand for the week ended November 3. Current figures are in thousands of barrels or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import Natural-gas import and demand data are available monthly only. 4-week avg Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1944.20 Total return close *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds Year ago 34.5000 0.2500 n.a. 0.3450 0.2650 n.a. 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 11/7 Source: WSJ Market Data Group Macro & Market Economics Watching the Gauges: U.S. Supply and Demand Expected Previous Current change week 193.06 179.70 0.8635 2.1800 170.00 160.25 71.50 n.a. 1.2373 1.4404 1.0150 15.80 0.79 65.85 n.a. 0.9155 124.00 172.13 4.80 4.20 Source: SIX Financial Information Inventories, 000s barrels 311.20 9.4900 7.8100 4.3850 3.7750 5.2838 0.02 0.25 0.17 0.21 0.55 0.07 0.70 0.58 0.09 0.42 0.43 0.36 0.05 0.35 0.36 0.20 0.22 –0.12 –0.15 0.15 0.24 0.09 0.50 0.15 –0.06 –0.08 0.21 –0.07 –0.07 0.37 0.17 0.22 0.01 –0.06 0.56 0.31 19.2 10.7 15.9 8.0 32.4 14.7 9.4 36.8 5.8 14.4 21.6 25.6 21.4 22.5 24.0 19.9 9.4 1.7 2.3 16.2 13.6 9.6 2.7 15.9 0.0 0.5 11.0 1.3 1.5 22.5 15.4 19.2 9.7 15.0 20.0 15.0 Maturity Current Spread*, in basis points One-day change Last week Stock Performance Close ($) % chg Issuer Symbol Coupon (%) CBL & Associates AT&T Marathon Oil Verizon Communications CBL T MRO VZ 5.950 Dec. 15, ’26 5.300 Aug. 14, ’58 2.800 Nov. 1, ’22 4.812 March 15, ’39 442 252 100 177 –18 –9 –8 –8 368 247 n.a. 171 5.50 33.44 15.75 45.46 –2.31 1.12 –2.54 –0.24 Bank of America Caterpillar Financial Services Walt Disney Discovery Communications BAC CAT DIS DISCA 8.000 Jan. 30, ’49 2.500 Nov. 13, ’20 4.125 June 1, ’44 3.950 March 20, ’28 –61 36 94 183 –7 –7 –7 –7 –63 n.a. n.a. 169 26.79 … 101.18 17.10 –1.43 … –0.42 –1.33 359 64 140 174 10.80 120.55 … 7.31 1.31 0.10 … 0.14 n.a. 335 250 33 78.66 29.70 38.30 49.04 0.28 –1.82 –0.03 –0.71 …And spreads that widened the most Pitney Bowes VMware Teva Pharmaceutical Finance IV Royal Bank of Scotland PBI VMW TEVA RBS 4.625 March 15, ’24 2.300 Aug. 21, ’20 2.250 March 18, ’20 8.625 Aug. 15, ’49 425 68 250 216 Arrow Electronics Viacom Nordstrom Morgan Stanley ARW VIA JWN MS 3.250 5.875 5.000 5.450 123 357 264 50 Sept. 8, ’24 Feb. 28, ’57 Jan. 15, ’44 July 15, ’49 43 26 21 20 15 13 12 11 High-yield issues with the biggest price increases… Coupon (%) Maturity Bond Price as % of face value Current One-day change Issuer Symbol CSI Compressco Monitronics International Genon Americas Generation Kronos Acquisition Holdings CCLP MONINT GENONE KIKCN 7.250 9.125 9.125 9.000 Aug. 15, ’22 April 1, ’20 May 1, ’31 Aug. 15, ’23 92.500 84.490 94.500 91.125 NGL Energy Partners Hughes Satellite Systems TPC L Brands NGL SATS TPCG LB 7.500 6.625 8.750 5.625 Nov. 1, ’23 Aug. 1, ’26 Dec. 15, ’20 Oct. 15, ’23 101.000 106.000 100.000 107.750 1.13 0.99 0.75 0.63 0.63 0.63 0.60 0.50 Last week Stock Performance Close ($) % chg 91.125 85.500 92.750 96.000 5.22 ... ... ... 7.63 ... ... ... 99.750 n.a. 98.125 107.250 12.35 … ... 47.38 –1.98 … ... 0.94 79.250 78.000 92.250 98.250 … 1.25 ... 14.90 … –24.24 ... –0.47 n.a. 75.750 90.000 89.375 ... 1.92 … ... ... ... … ... …And with the biggest price decreases Endo Dac Jones Energy Holdings MEG Energy Consolidated Communications ENDP JONE MEGCN CNSL Iheartcommunications Windstream Services Mallinckrodt International Finance Hexion IHRT WIN MNK HXN 6.000 6.750 6.375 6.500 July 15, ’23 April 1, ’22 Jan. 30, ’23 Oct. 1, ’22 10.625 March 15, ’23 7.750 Oct. 1, ’21 5.500 April 15, ’25 6.625 April 15, ’20 72.250 –4.75 –4.00 78.250 –3.78 91.469 –2.80 93.500 68.625 71.920 82.250 89.188 –2.63 –2.58 –2.50 –2.31 *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. B10 | Thursday, November 9, 2017 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. Wednesday, November 8, 2017 Sym Close Chg Stock Aramark ARMK 43.33 0.08 ArcelorMittal MT 29.00 -0.28 ArcherDaniels ADM 39.80 0.26 Arconic ARNC 24.78 -0.30 s AristaNetworks ANET 214.19 4.63 ArrowElec ARW 78.66 0.22 AstraZeneca AZN 33.33 -0.28 Athene ATH 49.00 -0.53 s AtmosEnergy ATO 89.24 0.67 Autohome ATHM 64.60 -0.28 Autoliv ALV 125.07 -0.39 AutoZone AZO 596.03 -7.53 Avalonbay AVB 186.69 2.93 Avangrid AGR 51.15 -0.17 AveryDennison AVY 107.75 0.71 AxaltaCoating AXTA 32.80 -0.26 BB&T BBT 47.75 -0.48 BCE BCE 47.67 -0.07 BHPBilliton BHP 43.78 0.55 BHPBilliton BBL 38.85 0.48 BP BP 41.40 -0.08 BRF BRFS 13.25 0.41 BT Group BT 16.68 0.18 BWX Tech BWXT 60.53 0.49 BakerHughes BHGE 32.84 -0.56 Ball BLL 40.74 -0.31 BancoBilbaoViz BBVA 8.36 0.04 BancodeChile BCH 91.15 -0.13 BancoMacro BMA 124.36 5.14 BcoSantChile BSAC 31.07 0.31 BancoSantander SAN 6.48 0.02 BanColombia CIB 38.16 0.63 BankofAmerica BAC 26.79 -0.39 BankofMontreal BMO 77.87 0.26 BankNY Mellon BK 51.22 0.15 s BkNovaScotia BNS 65.80 0.27 Barclays BCS 9.44 -0.04 Bard CR BCR 334.08 0.51 BarrickGold ABX 13.99 ... BaxterIntl BAX 65.01 0.69 BectonDickinson BDX 221.43 0.16 Berkley WRB 68.71 -0.32 BerkHathwy A BRK.A 276676-2684.98 BerkHathwy B BRK.B 184.60 -1.70 BerryGlobal BERY 58.48 0.50 BestBuy BBY 56.55 1.42 s Bio-RadLab A BIO 266.31 4.09 BlackKnight BKI 46.50 0.40 BlackBerry BB 10.82 -0.01 BlackRock BLK 472.20 -1.17 BlackstoneGroup BX 32.65 -0.39 BoardwalkPipe BWP 14.52 -0.06 s Boeing BA 265.57 -0.56 BorgWarner BWA 52.19 -0.21 BostonProperties BXP 124.74 0.55 BostonScientific BSX 28.10 0.14 Braskem BAK 31.32 0.72 Bristol-Myers BMY 62.58 0.67 BritishAmTob BTI 65.11 0.22 s BroadridgeFinl BR 90.48 3.11 BrookfieldMgt BAM 42.30 0.52 BrookfieldInfr BIP 43.59 0.30 Brown&Brown BRO 49.70 -0.53 Brown-Forman A BF.A 56.49 0.68 Brown-Forman B BF.B 56.46 0.72 BuckeyePtrs BPL 52.40 -0.72 Bunge BG 67.89 0.46 BurlingtonStores BURL 97.51 0.23 CBD Pao CBD 23.00 0.45 NYSE ABB ABB 26.22 AECOM ACM 35.80 AES AES 10.51 Aflac AFL 83.99 AT&T T 33.44 AbbottLabs ABT 55.25 AbbVie ABBV 95.71 s Accenture ACN 144.89 AcuityBrands AYI 158.27 Adient ADNT 77.42 t AdvanceAuto AAP 79.41 AdvSemiEngg ASX 6.20 Aegon AEG 5.85 AerCap AER 51.98 Aetna AET 175.44 AffiliatedMgrs AMG 185.95 AgilentTechs A 68.11 AgnicoEagle AEM 45.59 Agrium AGU 107.02 AirProducts APD 160.94 t AlaskaAir ALK 62.08 s Albemarle ALB 144.58 Alcoa AA 45.89 s AlexandriaRealEst ARE 126.23 Alibaba BABA 185.90 Alleghany Y 580.41 Allegion ALLE 83.43 Allergan AGN 175.01 AllianceData ADS 229.61 AllianceBernstein AB 24.90 AlliantEnergy LNT 44.07 AllisonTransm ALSN 43.68 Allstate ALL 99.09 AllyFinancial ALLY 25.72 AlticeUSA ATUS 22.80 Altria MO 64.59 AlumofChina ACH 19.27 Ambev ABEV 6.18 s Ameren AEE 62.66 AmericaMovil AMX 17.39 AmericaMovil A AMOV 17.22 AmCampus ACC 42.60 s AEP AEP 75.52 AmericanExpress AXP 95.13 AmericanFin AFG 104.51 AmerHomes4Rent AMH 21.90 AIG AIG 61.67 s AmerTowerREIT AMT 152.72 s AmerWaterWorks AWK 90.24 Amerigas APU 46.12 Ameriprise AMP 159.99 AmerisourceBrgn ABC 75.01 Ametek AME 68.05 Amphenol APH 87.74 AnadarkoPetrol APC 51.16 Andeavor ANDV 111.14 AB InBev BUD 118.15 AnnalyCap NLY 11.32 AnteroResources AR 19.49 Anthem ANTM 216.87 Aon AON 140.87 Apache APA 44.51 ApartmtInv AIV 45.36 ApolloGlobalMgmt APO 31.14 s AquaAmerica WTR 36.56 Net Sym Close Chg Stock Net -0.04 -0.29 ... 0.18 0.37 0.09 1.75 1.39 -1.76 -0.67 0.03 0.06 -0.04 -0.21 -1.39 0.61 -0.14 0.55 -0.20 1.17 -0.12 1.45 -1.08 0.17 -2.61 -2.35 -0.10 2.04 -0.11 -0.10 -0.10 -0.14 -0.09 -0.74 -0.26 0.28 -0.21 0.06 -0.21 -0.05 -0.08 0.41 0.33 -0.24 -0.43 -0.01 -0.46 2.06 0.24 0.02 0.76 0.10 -0.51 0.37 0.08 -0.14 -0.51 0.08 -0.21 -0.60 0.66 -0.68 0.46 -0.26 0.28 Net Sym Close Chg Stock CBRE Group CBG 41.00 CBS A CBS.A 57.29 CBS B CBS 57.25 CF Industries CF 37.78 CGI Group GIB 52.13 CIT Group CIT 45.44 s CMS Energy CMS 49.13 CNA Fin CNA 54.09 CNOOC CEO 141.50 CPFLEnergia CPL 16.90 CRH CRH 36.24 CVS Health CVS 68.99 CabotOil COG 27.82 CamdenProperty CPT 94.22 CampbellSoup CPB 47.16 CIBC CM 90.03 CanNtlRlwy CNI 80.40 CanNaturalRes CNQ 36.55 CanPacRlwy CP 174.37 s Canon CAJ 38.76 CapitalOne COF 88.97 CardinalHealth CAH 60.99 Carlisle CSL 110.14 CarMax KMX 73.44 Carnival CCL 65.93 Carnival CUK 65.74 Caterpillar CAT 137.29 Celanese A CE 106.28 Cemex CX 8.18 CenovusEnergy CVE 11.37 Centene CNC 93.15 CenterPointEner CNP 29.95 CentraisElBras EBR 6.55 CenturyLink CTL 16.26 Chemours CC 51.01 Chevron CVX 116.67 ChinaEastrnAir CEA 25.11 ChinaLifeIns LFC 17.41 ChinaMobile CHL 51.08 ChinaPetrol SNP 74.84 ChinaSoAirlines ZNH 37.22 ChinaTelecom CHA 50.23 ChinaUnicom CHU 15.14 Chipotle CMG 273.90 Chubb CB 150.10 ChunghwaTelecom CHT 34.04 Church&Dwight CHD 44.45 Cigna CI 200.50 CimarexEnergy XEC 125.34 Citigroup C 72.34 CitizensFin CFG 37.31 Clorox CLX 131.05 Coca-Cola KO 46.18 Coca-Cola Euro CCE 39.53 Coca-Cola Femsa KOF 67.91 Colgate-Palmolive CL 73.27 ColonyNorthStar CLNS 12.35 Comerica CMA 76.14 SABESP SBS 8.95 ConagraBrands CAG 34.31 ConchoRscs CXO 145.06 s ConocoPhillips COP 53.52 s ConEd ED 87.86 ConstBrands A STZ 217.63 ContinentalRscs CLR 44.89 Cooper COO 230.48 s Corning GLW 32.22 Coty COTY 14.76 Credicorp BAP 206.43 0.12 -0.63 -0.36 0.89 -1.18 0.27 0.22 -0.68 -1.76 0.15 0.82 0.04 -0.02 0.13 0.93 0.27 0.26 0.37 1.99 0.57 -1.15 0.72 0.01 0.02 -0.45 -0.72 -1.52 -0.58 0.10 0.16 -1.66 ... 0.12 0.04 0.01 -0.57 -0.36 0.08 0.33 -1.82 -0.96 -0.24 -0.08 -0.60 0.30 0.21 0.69 -4.99 -0.63 -0.37 -0.36 1.35 0.24 1.64 0.40 2.37 -0.01 -1.02 0.22 0.55 -1.65 0.04 0.17 2.15 1.30 1.15 -0.03 0.31 -1.02 Stock Net Sym Close Chg CreditSuisse CS 16.15 CrestwoodEquity CEQP 24.00 s CrownCastle CCI 114.03 CrownHoldings CCK 59.68 Cullen/Frost CFR 93.96 Cummins CMI 171.38 DTE Energy DTE 113.19 s DXC Tech DXC 96.75 s Danaher DHR 93.24 Darden DRI 82.12 t DaVita DVA 54.34 Deere DE 134.64 DellTechnologies DVMT 82.31 DelphiAutomotive DLPH 96.35 DeltaAir DAL 50.06 DeutscheBank DB 17.04 DevonEnergy DVN 40.26 Diageo DEO 135.03 DigitalRealty DLR 123.50 DiscoverFinSvcs DFS 66.09 Disney DIS 101.18 DolbyLab DLB 59.36 DollarGeneral DG 80.70 DominionEner D 80.88 Domino's DPZ 168.71 Donaldson DCI 47.24 DouglasEmmett DEI 39.98 Dover DOV 96.05 DowDuPont DWDP 70.81 DrPepperSnap DPS 85.61 DrReddy'sLab RDY 36.24 s DukeEnergy DUK 89.23 DukeRealty DRE 29.03 ENI E 34.01 EOG Rscs EOG 104.33 EQT EQT 64.45 EQT Midstream EQM 71.80 EastmanChem EMN 90.59 Eaton ETN 79.05 EatonVance EV 51.11 Ecolab ECL 130.39 s Ecopetrol EC 11.61 EdisonInt EIX 80.20 EdwardsLife EW 105.24 EmersonElectric EMR 62.52 EnbridgeEnPtrs EEP 14.51 Enbridge ENB 36.79 Encana ECA 12.60 EnelAmericas ENIA 10.70 EnelChile ENIC 5.72 EnelGenChile EOCC 26.03 EnergyTrfrEquity ETE 17.79 EnergyTransfer ETP 16.77 EnLinkMidPtrs ENLK 15.90 Entergy ETR 86.24 EnterpriseProd EPD 24.90 Equifax EFX 107.20 EquityLife ELS 89.70 s EquityResdntl EQR 70.37 EssexProp ESS 258.79 EsteeLauder EL 123.08 EverestRe RE 228.36 s EversourceEner ES 64.63 Exelon EXC 41.32 ExtraSpaceSt EXR 86.01 ExxonMobil XOM 83.47 FMC FMC 93.24 s FactSet FDS 195.30 FederalRealty FRT 128.87 FedEx FDX 220.50 Ferrari RACE 112.80 FiatChrysler FCAU 17.49 FibriaCelulose FBR 15.14 FidelityNatlFin FNF 37.65 FNFV Group FNFV 17.45 FidelityNtlInfo FIS 91.65 58.com WUBA 67.40 FirstAmerFin FAF 54.75 FirstData FDC 16.84 FirstRepBank FRC 91.97 FirstEnergy FE 33.73 FleetCorTech FLT 175.95 Fluor FLR 47.62 FomentoEconMex FMX 86.64 FordMotor F 12.06 ForestCIty A FCE.A 25.06 s Fortis FTS 37.75 Fortive FTV 72.77 FortBrandsHome FBHS 64.12 Franco-Nevada FNV 84.06 FranklinRscs BEN 41.89 Freeport-McMoRan FCX 14.86 FreseniusMed FMS 48.68 0.08 -0.35 2.27 -0.11 -1.20 -0.48 0.38 4.22 0.04 0.47 -4.62 -1.07 -0.17 -0.91 0.15 0.36 -1.00 -0.04 1.49 -0.35 -0.43 0.33 0.04 -0.51 -1.39 -0.33 -0.43 -0.11 -0.33 1.13 0.33 -0.13 0.05 -0.08 -1.76 1.21 -1.19 -0.02 0.38 0.41 -0.56 -0.38 0.80 0.83 -0.56 -0.19 0.08 -0.15 0.09 ... 0.16 -0.91 -0.57 -0.21 0.28 -0.12 -0.22 0.34 0.81 3.79 0.86 1.33 0.11 0.05 0.33 -0.11 -0.27 3.96 0.26 -0.66 -2.09 -0.38 -0.02 -0.17 ... 1.18 -0.04 -0.62 ... -1.73 0.59 -1.05 -0.46 -0.09 -0.10 0.07 0.02 -0.70 -0.34 0.57 0.11 0.31 0.09 Stock Net Sym Close Chg GGP GGP 21.76 -0.44 Gallagher AJG 63.53 -0.18 Gap GPS 25.67 -0.04 Gartner IT 118.81 1.06 Gazit-Globe GZT 9.37 -0.09 GeneralDynamics GD 202.62 -1.14 GeneralElec GE 20.12 -0.09 GeneralMills GIS 52.24 1.27 GeneralMotors GM 42.11 0.41 Genpact G 31.20 1.00 GenuineParts GPC 86.02 -0.41 Gildan GIL 29.71 0.10 GlaxoSmithKline GSK 36.48 0.66 GlobalPayments GPN 101.65 -2.25 GoDaddy GDDY 48.02 -0.59 Goldcorp GG 13.27 0.07 GoldmanSachs GS 241.25 1.44 Graco GGG 132.40 0.54 Grainger GWW 208.13 2.95 GreatPlainsEner GXP 33.66 -0.05 GpoAvalAcciones AVAL 8.39 0.07 GpFinSantandMex BSMX 8.23 0.07 GrupoTelevisa TV 20.51 -0.18 GuidewireSoftware GWRE 80.82 0.74 HCA Healthcare HCA 78.86 0.94 HCP HCP 26.99 -0.01 HDFC Bank HDB 95.59 0.96 HP HPQ 21.42 0.04 HSBC HSBC 48.35 0.30 Halliburton HAL 45.12 -0.15 Hanesbrands HBI 19.69 0.61 t HarleyDavidson HOG 45.51 0.73 Harris HRS 141.29 1.92 HartfordFinl HIG 55.20 -0.14 HealthcareAmer HTA 30.59 0.16 Heico HEI 90.82 -0.54 Heico A HEI.A 77.25 -0.40 Helmerich&Payne HP 59.10 0.64 Herbalife HLF 65.76 -0.50 Hershey HSY 107.75 1.78 Hess HES 47.08 -0.87 HewlettPackard HPE 13.54 -0.03 Hilton HLT 72.90 0.29 s HollyFrontier HFC 42.32 -0.01 HomeDepot HD 164.05 0.39 s HondaMotor HMC 33.64 0.11 s Honeywell HON 146.86 -0.11 HormelFoods HRL 32.15 0.65 s DR Horton DHI 45.41 0.46 HostHotels HST 20.19 0.40 HuanengPower HNP 27.68 0.57 Hubbell HUBB 123.58 -1.03 Humana HUM 243.48-12.83 s HuntingtonIngalls HII 251.96 18.61 Huntsman HUN 31.55 -0.12 s HyattHotels H 69.79 0.26 ICICI Bank IBN 9.34 -0.04 ING Groep ING 18.29 0.14 Invesco IVZ 35.69 0.08 IDEX IEX 128.03 0.55 IllinoisToolWks ITW 157.65 -0.18 Infosys INFY 14.92 0.07 Ingersoll-Rand IR 85.68 0.12 s Ingredion INGR 131.96 1.53 ICE ICE 65.99 0.41 InterContinentl IHG 56.95 0.36 IBM IBM 151.57 0.22 IntlFlavors IFF 147.53 -2.46 IntlPaper IP 55.28 0.03 t Interpublic IPG 18.62 0.08 InvitationHomes INVH 23.16 -0.04 IronMountain IRM 40.77 0.17 IsraelChemicals ICL 4.23 0.07 ItauUnibanco ITUB 13.05 0.48 JPMorganChase JPM 97.64 -1.11 JacobsEngineering JEC 61.12 0.19 JamesHardie JHX 14.65 -0.10 JanusHenderson JHG 34.65 0.06 J&J JNJ 141.32 1.55 JohnsonControls JCI 41.00 0.01 s JonesLangLaSalle JLL 144.49 1.99 JuniperNetworks JNPR 24.79 0.29 KAR Auction KAR 49.18 0.16 KB Fin KB 51.83 0.23 KKR KKR 19.76 -0.23 KT KT 14.17 0.07 KSCitySouthern KSU 105.74 -0.32 Kellogg K 62.82 1.98 KeyCorp KEY 17.93 -0.17 KeysightTechs KEYS 45.39 -0.02 KilroyRealty KRC 74.19 0.17 KimberlyClark KMB 113.23 1.30 KimcoRealty KIM 18.93 0.11 Borrowing Benchmarks | WSJ.com/bonds Money Rates November 8, 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 —52-WEEK— Week —52-WEEK— Inflation Latest ago High Low Latest ago High Low Sept. index level Chg From (%) Aug. '17 Sept. '16 U.S. consumer price index 0.53 0.19 246.819 252.941 All items Core 2.2 1.7 International rates Latest Week ago 52-Week High Low 1.035 1.020 1.300 0.270 1.185 1.130 1.185 0.420 1.300 1.260 1.300 0.535 4 weeks 13 weeks 26 weeks 0.00 0.50 0.25 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 1.15 U.S. 1.19 1.38 0.15 U.S. government rates 3.428 3.490 3.865 3.132 3.448 3.517 3.899 3.163 Other short-term rates Week Latest ago 1.75 1.75 1.75 1.00 1.1700 1.3125 1.0300 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 0.3500 0.5625 0.2500 0.3000 0.3200 Federal funds Effective rate High Low Bid Offer 1.1700 1.3125 1.0500 1.1600 1.1700 52-Week high low Call money 3.00 3.00 3.00 2.25 1.32 1.14 1.32 0.62 Libor 1.24606 1.24333 1.24606 0.53644 1.40981 1.38483 1.40981 0.88650 Wednesday, November 8, 2017 NYSE highs - 123 25.40 AT&T Nts 2066 TBB 12.45 AberdeenGrChinaFd GCH 9.35 AberdeenJapanEqu JEQ 12.56 AberdeenSingapore SGF 145.00 Accenture ACN 144.99 Albemarle ALB 126.88 AlexandriaRealEst ARE 22.57 AllianzGIDivIncm ACV 63.15 Ameren AEE 75.84 AEP AEP AmerTowerPfdB AMTpB 135.99 155.28 AmerTowerREIT AMT 90.49 AmerWaterWorks AWK ApolloGlMgmtPfdA APOpA 26.45 36.60 AquaAmerica WTR 12.75 Aquantia AQ AristaNetworks ANET 216.00 89.25 AtmosEnergy ATO 65.86 BkNovaScotia BNS 267.80 Bio-RadLab A BIO 14.26 BlkRkCB Tr BHK Boeing 267.62 BA 91.75 BroadridgeFinl BR 49.17 CMS Energy CMS 13.21 CVR Refining CVRR 51.52 CalAtlantic CAA 39.15 Canon CAJ 26.37 ChimeraInvPfdA CIMpA 21.76 ChinaFund CHN ColonyNorthPfdJ CLNSpJ 25.61 CLSelPrTechGrFd STK 24.35 54.22 ConocoPhillips COP 88.08 ConEd ED 32.33 Corning GLW CostamarePfdD CMREpD 26.89 CrownCastlePfdA CCIpA 1151.02 114.97 CrownCastle CCI 29.37 CubeSmart CUBE 60.74 DCT Industrial DCT DXC Tech 99.00 DXC 93.36 Danaher DHR 89.68 DukeEnergy DUK EPAM Systems EPAM 103.44 12.30 Ecopetrol EC 70.40 EquityResdntl EQR 65.01 EversourceEner ES 195.77 FactSet FDS 154.84 FairIsaac FICO 5.03 FangHoldings SFUN 31.91 FirstIndRlty FR 16.34 FlahertyPfdIncm PFD 38.06 Fortis FTS 26.25 FourCornersProp FCPT GlbNetLeasePfdA GNLpA 25.29 64.88 GreenDot GDOT 21.59 GuggStratOpps GOF 44.90 HFF HF 55.03 Haemonetic HAE 107.13 HanoverIns THG 57.64 HercHoldings HRI 42.49 HollyFrontier HFC 33.75 HondaMotor HMC 147.51 Honeywell HON 45.78 DR Horton DHI 253.44 HuntingtonIngalls HII HyattHotels 70.59 H IDACORP 95.25 IDA 132.20 Ingredion INGR 106.95 Insperity NSP 56.58 InterXion INXN 0.2 -0.1 0.8 0.2 1.0 1.0 0.1 -0.7 -0.3 0.4 1.3 1.4 0.3 -0.2 0.8 -4.4 2.2 0.8 0.4 1.6 0.1 -0.2 3.6 0.4 1.2 3.4 1.5 1.8 1.4 -0.1 1.0 0.1 0.2 -0.1 0.5 1.4 2.0 1.5 0.5 4.6 ... -0.1 2.2 -3.2 1.2 0.2 2.1 1.4 1.8 0.1 0.8 0.1 1.1 0.1 15.7 0.3 1.4 5.3 -0.3 15.2 ... 0.3 -0.1 1.0 8.0 0.4 0.5 1.2 3.4 0.7 -0.405 -0.381 -0.322 -0.238 Latest -0.371 -0.329 -0.276 -0.187 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 1.159 25.302 1.366 0.244 1.180 116.070 1.506 0.257 Treasury MBS Open Implied Settle Change Interest Rate DTCC GCF Repo Index Futures Treasury Nov Treasury Dec Treasury Jan 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. Stock -0.376 -0.325 -0.214 -0.075 98.840 unch. 8568 1.160 98.690 -0.005 2019 1.310 98.595 -0.005 450 1.405 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. New Highs and Lows | WSJ.com/newhighs 52-Wk % Sym Hi/Lo Chg Stock -0.372 -0.329 -0.276 -0.191 One month Three month Six month One year Commercial paper (AA financial) One month Three month Discount -0.399 -0.378 -0.322 -0.233 Euro interbank offered rate (Euribor) 90 days Overnight repurchase -0.400 -0.378 -0.314 -0.236 30-year mortgage yields 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 0.50 1.50 Euro Libor Fannie Mae Policy Rates Euro zone Switzerland Britain Australia 1.60162 1.57979 1.60162 1.24267 1.87317 1.85594 1.87317 1.55622 Six month One year One month Three month Six month One year Secondary market 30 days 60 days Prime rates U.S. Canada Japan Treasury bill auction 52-Wk % Sym Hi/Lo Chg Stock Invacare IVC JapanSmlCap JOF JonesLangLaSalle JLL KenonHoldings KEN Kyocera KYO LINE LN Lennar B LEN.B LibertyProperty LPT LiveNationEnt LYV LomaNegra LOMA MarathonPetrol MPC Marcus&Millichap MMI McDonalds MCD Medifast MED NewRelic NEWR PembinaPipeline PBA Penumbra PEN PlanetFitness PLNT PortlandGenElec POR Praxair PX Primerica PRI PulteGroup PHM QTS Realty QTS Rayonier RYN RedHat RHT StoreCapital STOR Salesforce.com CRM SempraEnergy SRE SolarisOilfield SOI Sony SNE Statoil STO SuncorEnergy SU TE Connectivity TEL TaiwanFund TWN TaroPharm TARO TeledyneTech TDY Teradyne TER ToyotaMotor TM TysonFoods TSN Visa V VersumMaterials VSM VMware VMW Vonage VG W.P.Carey WPC Wal-Mart WMT Watsco WSO WestlakeChem WLK Weyerhaeuser WY Workiva WK WW Ent WWE YumBrands YUM ZTO Express ZTO Zendesk ZEN 16.95 13.39 146.96 19.55 71.72 44.16 50.05 44.88 45.72 22.33 63.41 30.98 170.92 71.73 54.79 36.30 114.60 30.20 48.67 150.05 99.95 30.99 60.54 31.47 124.45 26.35 105.25 121.38 18.42 47.59 20.92 36.32 93.75 21.93 128.46 185.66 44.04 128.11 74.04 112.91 42.74 121.49 9.04 71.73 90.42 167.94 94.08 36.48 23.70 27.41 81.65 17.51 35.89 21.1 0.3 1.4 3.9 0.9 2.9 2.6 0.7 ... 4.8 0.2 5.4 -0.4 14.8 5.2 1.2 9.4 17.4 -0.1 0.7 12.5 1.5 1.2 0.2 1.6 ... 2.2 0.4 -3.3 3.2 0.4 0.1 0.5 0.4 14.6 0.7 0.8 0.4 1.2 0.3 1.0 0.1 1.5 0.1 1.5 -1.2 2.5 1.2 1.1 0.6 0.1 1.6 4.1 NYSE lows - 85 AZZ AZZ AdvanceAuto AAP AegeanMarine ANW AlaskaAir ALK AmericanRenal ARA AmplifySnack BETR AnixterIntl AXE Barnes&NobleEduc BNED BlkRk2022GlbIncm BGIO Build-A-Bear BBW CBL Assoc CBL CBL AssocPfdE CBLpE CNX Coal CNXC Cabco JCP PFH PFH Corts JC KTP KTP CustomersBancorp CUBI DaVita DVA 44.70 78.81 3.26 61.36 10.32 4.78 64.35 4.99 9.85 7.25 5.46 22.15 13.25 11.00 11.06 25.39 52.51 52-Wk % Sym Hi/Lo Chg DeanFoods DF elfBeauty ELF EXCO Res XCO EastmanKodakWt KODK.WS EtnVncFR2022 EFL EldoradoGold EGO EllingtonFin EFC Energizer ENR EntercomCommsWi ETMw EnvisionHlthcr EVHC EthanAllen ETH Evertec EVTC FT SrFR2022 FIV FlotekIndustries FTK FootLocker FL GNC Holdings GNC GabelliGlbSmRt GGZr GameStop GME GenesisHealthcare GEN GranitePointMtg GPMT HarleyDavidson HOG HighlandFROpps HFRO Interpublic IPG Intrexon XON LSC Comm LKSD LendingClub LC Mack-Cali CLI MedEquitiesRlty MRT MedleyMgmt MDLY Netshoes NETS NewIrelandFundRt IRLr NewYorkREIT NYRT Nordstrom JWN NuSTAREnergy NS OFGBancorp OFG Omnicom OMC Owens&Minor OMI PHH PHH PQ Group PQG PandoraMedia P PitneyBowes PBI PitneyBowesNt43 PBIpB PrestigeBrands PBH QwestNts2054 CTV Qwest7%Nts2056 CTAA QwestNts2055 CTZ QwestNts2052 CTX QwestNts2057 CTDD RR Donnelley RRD RiteAid RAD RubiconProject RUBI SallyBeauty SBH Sprint S StandardMotor SMP Telephone&Data TDS TimeInc. TIME TownsquareMedia TSQ US Cellular USM Universal UVV UniversalHealthB UHS Veritiv VRTV VistaOutdoor VSTO VitaminShoppe VSI VoyaPrimeRate PPR WesternGasEquity WGP WideOpenWest WOW WorldFuelSvcs INT XeriumTech XRM -0.9 ... -7.2 -0.2 -5.6 -15.1 -2.3 0.4 -0.6 -1.3 -2.3 -2.8 -2.5 -0.4 -1.0 -2.4 ALPS EqSecWgh EQL -7.8 AGFiQ US NeutrMom MOM 9.01 18.52 0.77 0.02 9.64 1.19 14.76 40.64 10.45 24.77 26.45 13.55 9.18 4.14 28.42 5.61 0.26 16.98 0.87 17.02 44.52 15.36 18.46 15.40 13.74 4.20 21.18 10.06 5.50 9.02 0.24 7.25 37.79 31.23 7.85 65.32 18.59 11.13 15.35 4.83 10.57 24.73 41.45 23.76 23.79 22.76 23.85 23.08 7.49 1.51 1.81 14.22 5.62 40.81 24.57 9.90 7.93 32.59 52.35 99.56 20.35 17.86 2.95 5.06 37.41 12.12 26.80 3.95 6.2 -6.9 -35.1 -47.9 -1.4 -0.8 0.3 2.3 -0.4 -3.6 -0.2 1.1 -1.4 -16.1 2.2 -5.1 -8.6 0.5 -10.6 -0.7 1.6 -1.6 0.4 1.5 -2.3 -15.9 -6.4 -11.7 4.5 -4.1 3.7 0.3 ... -1.7 -1.3 0.1 -1.0 -2.9 2.6 -1.8 1.3 0.2 -2.3 -3.0 -3.2 -4.3 -2.4 -4.6 2.1 -0.7 4.2 -6.7 4.2 -0.9 -6.7 -6.1 -11.3 -6.2 -7.6 -0.3 -9.7 -1.1 -19.8 -0.4 -1.5 -0.7 -2.3 -2.7 NYSE Arca highs - 149 67.89 24.93 0.2 1.2 52-Wk % Sym Hi/Lo Chg Stock ColumbiaSustGlb ESGW CS FI LC Grwth FLGE DirexJapanBl3 JPNL DirexSemiBl3 SOXL DirexTechBull3 TECL DirexUtilBl3X UTSL EmgMktInternetEcom EMQQ ETFMG VideoGame GAMR ETFS PlldmShr PALL FidelityLowVol FDLO FidelityMSCIIT FTEC FidelityRealEst FREL FidelityMSCIUtils FUTY FT TechAlphaDEX FXL FlexShCurrHdDM TLDH FlexShMDevMktxUS TLTD FrankFTSECanada FLCA FrankFTSEJapan FLJP FrankFTSEJapanHdg FLJH FrankFTSEMexico FLMX FrankIntlOpps FLIO FrankUSLowVol FLLV FranklinGlbEquity FLQG GlbXLithium&Batt LIT GlbXSciBetaAsiaXJ SCIX GlbXSciBetaJapan SCIJ GSActiveBetaIntlEq GSIE GSActiveBetaJapan GSJY GSActiveBetaUSLC GSLC GuggChinaTech CQQQ GuggDefEqty DEF GuggS&P500EWTech RYT GuggS&P500PureGr RPG GuggInsider NFO GuggS&P500EWRlEst EWRE GuggS&P500Top50 XLG GuggS&PGlblWtr CGW HullTacticalUS HTUS IQ HedMacrTrac MCRO IQHedgeMktNeut QMN iPathGEMSAsia8ETN AYT iShCoreDivGrowth DGRO iShMSCIIntlDev IDEV iShCoreMSCIPacific IPAC iShCurrHdgNikk400 HJPX iShCurHdgMSCIUS HAWX iShCurHdgMSCIEAFE HSCZ iShCurrHdMSCIJapan HEWJ iShU.S.RealEstate IYR iShU.S.Technology IYW iShEdgeMSCIIntVal IVLU iShEdgeMSCIMinJapn JPMV iShEdgeMSCIMultif ACWF iShEdgeMSCIMultUSA LRGF iShGlobal100 IOO iShJPX-Nikkei400 JPXN iShACWILowCarbon CRBN iShMSCIBRICETF BKF iShMSCICanadaETF EWC iShMSCIJapanETF EWJ iShMSCIJapanSC SCJ iShMSCIPacificxJp EPP iShMSCISingapore EWS iShMSCIWorldETF URTH iShMorningstarLC JKD iShMornLCGrowth JKE iShRussell1000Gwth IWF iShRussellTop200Gr IWY iShS&P500Growth IVW iShGlobalTechETF IXN iShNorthAmerTech IGM HancockLC JHML HancockUtils JHMU JPM DivRetGlEq JPGE JPM DivRetIntl JPIH JPM DivRetIntlEq JPIN KnowldgLdrDevWrld KLDW OShFTSEAsiaPacQlty OASI PwrShUsRealEst PSR PwrShDBEnergy DBE PwrShDynLC Grwth PWB PwrShFTSERAFIDevMk PDN PwrShS&PEM Mom EEMO Stock Net Sym Close Chg KinderMorgan KMI 18.00 -0.04 Knight-Swift KNX 38.91 0.33 Kohl's KSS 40.79 0.10 KoninklijkePhil PHG 40.22 -0.66 KoreaElcPwr KEP 17.27 -0.05 Kroger KR 21.85 0.54 s Kyocera KYO 71.72 0.64 LATAMAirlines LTM 13.46 0.21 L Brands LB 47.38 0.44 LG Display LPL 13.07 -0.02 s LINE LN 43.86 1.24 L3 Tech LLL 187.05 0.95 LabCpAm LH 151.79 -0.60 LambWeston LW 52.39 0.73 LasVegasSands LVS 67.90 0.56 Lazard LAZ 47.44 1.05 Lear LEA 174.90 0.46 Leggett&Platt LEG 45.72 -0.22 Leidos LDOS 62.22 -0.36 Lennar A LEN 58.56 2.08 s Lennar B LEN.B 49.91 1.25 LennoxIntl LII 193.20 1.55 LeucadiaNatl LUK 26.03 0.15 s LibertyProperty LPT 44.75 0.33 EliLilly LLY 84.01 0.73 LincolnNational LNC 75.33 -0.07 LionsGate A LGF.A 29.09 -0.07 LionsGate B LGF.B 28.40 0.02 s LiveNationEnt LYV 45.45 ... LloydsBanking LYG 3.58 -0.01 LockheedMartin LMT 315.64 2.35 Loews L 49.58 0.09 Lowe's LOW 78.09 0.46 LyondellBasell LYB 105.86 -0.06 M&T Bank MTB 161.21 -1.67 MGM Resorts MGM 33.06 1.60 MPLX MPLX 35.17 ... MSCI MSCI 127.10 1.12 Macerich MAC 58.84 0.08 MacquarieInfr MIC 67.98 -0.47 MagellanMid MMP 68.60 -0.75 MagnaIntl MGA 53.40 -0.89 Manpower MAN 125.54 0.44 ManulifeFin MFC 20.67 -0.09 MarathonOil MRO 15.75 -0.41 s MarathonPetrol MPC 63.22 0.11 Markel MKL 1073.60 -8.88 Marsh&McLennan MMC 82.43 -0.03 MartinMarietta MLM 213.20 3.16 Masco MAS 39.13 0.05 Mastercard MA 149.97 ... McCormick MKC 96.43 1.25 s McDonalds MCD 170.10 -0.67 McKesson MCK 140.36 3.43 Medtronic MDT 77.81 -0.20 Merck MRK 56.58 0.99 MetLife MET 53.02 -0.38 MettlerToledo MTD623.72 -0.86 MichaelKors KORS 53.95 -0.69 MicroFocus MFGP 34.97 0.39 MidAmApt MAA 105.61 0.58 MitsubishiUFJ MTU 6.68 -0.02 MizuhoFin MFG 3.62 ... MobileTeleSys MBT 11.08 -0.22 MohawkIndustries MHK 263.48 2.56 MolsonCoors A TAP.A 83.20 -2.65 MolsonCoors B TAP 79.63 0.75 Monsanto MON117.38 -2.16 Moody's MCO 144.93 1.16 MorganStanley MS 49.04 -0.35 Mosaic MOS 22.64 0.08 MotorolaSolutions MSI 92.66 0.55 NRG Energy NRG 28.02 -0.40 NTTDoCoMo DCM 24.79 0.12 NVR NVR 3295.47 51.28 NationalGrid NGG 61.85 0.36 NatlOilwell NOV 35.02 -0.08 NatlRetailProp NNN 41.70 0.10 NewOrientalEduc EDU 87.14 -0.37 NY CmntyBcp NYCB 12.05 -0.14 NewellBrands NWL 31.41 0.76 NewfieldExpln NFX 32.28 -0.58 NewmontMining NEM 36.31 0.27 NextEraEnergy NEE 154.92 -0.57 NielsenHoldings NLSN 37.54 -0.46 Nike NKE 55.76 0.61 NiSource NI 27.52 0.05 NobleEnergy NBL 28.43 -0.48 Nokia NOK 5.05 ... NomuraHoldings NMR 5.97 0.13 t Nordstrom JWN 38.30 -0.01 NorfolkSouthern NSC 129.33 -0.12 NorthropGrumman NOC 303.30 -0.01 Novartis NVS 82.94 0.55 NovoNordisk NVO 50.27 0.56 Nucor NUE 57.70 0.01 t NuSTAREnergy NS 31.52 -0.54 OGE Energy OGE 35.73 -0.11 ONEOK OKE 53.10 -0.07 OccidentalPetrol OXY 68.17 -0.58 Och-Ziff OZM 3.12 -0.10 Olin OLN 36.77 0.83 t Omnicom OMC 65.60 0.08 Oracle ORCL 50.54 0.05 Orange ORAN 16.59 0.05 OrbitalATK OA 132.93 -0.02 Orix IX 87.37 0.12 Oshkosh OSK 85.05 -2.24 OwensCorning OC 82.45 0.23 PG&E PCG 55.83 -0.47 PLDT PHI 32.88 -0.06 PNC Fin PNC 133.29 -0.80 POSCO PKX 71.84 -0.26 PPG Ind PPG 116.12 -0.22 PPL PPL 36.92 -0.29 PVH PVH 123.57 0.83 PackagingCpAm PKG 111.41 0.06 PaloAltoNtwks PANW 148.46 1.77 ParkHotels PK 29.29 0.04 ParkerHannifin PH 184.87 -0.60 ParsleyEnergy PE 27.10 -1.30 Pearson PSO 9.10 -0.02 s PembinaPipeline PBA 36.27 0.44 Net Sym Close Chg Stock Pentair PNR 69.17 PepsiCo PEP 112.00 PerkinElmer PKI 71.48 Perrigo PRGO 81.20 PetroChina PTR 71.00 PetroleoBrasil PBR 10.91 PetroleoBrasilA PBR.A 10.42 Pfizer PFE 35.34 PhilipMorris PM 103.09 Phillips66 PSX 94.55 PinnacleFoods PF 54.24 PinnacleWest PNW 89.79 PioneerNatRscs PXD 159.57 PlainsAllAmPipe PAA 21.27 PlainsGP PAGP 21.73 PolarisIndustries PII 116.68 Potash POT 19.14 s Praxair PX 149.97 PrincipalFin PFG 68.49 Procter&Gamble PG 87.58 Progressive PGR 50.55 Prologis PLD 66.72 PrudentialFin PRU 112.44 Prudential PUK 48.23 PublicServiceEnt PEG 50.20 PublicStorage PSA 213.19 s PulteGroup PHM 30.91 QuestDiag DGX 93.15 QuintilesIMS Q 104.72 RELX RENX 22.34 RELX RELX 23.09 RPM RPM 52.03 RSP Permian RSPP 36.53 RalphLauren RL 85.43 RaymondJames RJF 84.17 Raytheon RTN 187.83 RealtyIncome O 56.17 s RedHat RHT 123.92 RegencyCtrs REG 65.76 RegionsFin RF 15.36 ReinsuranceGrp RGA 150.70 RelianceSteel RS 77.19 RepublicServices RSG 63.88 ResMed RMD 82.19 RestaurantBrands QSR 65.51 RiceEnergy RICE 29.13 RioTinto RIO 50.50 RobertHalf RHI 52.74 Rockwell ROK 193.78 RockwellCollins COL 134.55 RogersComm B RCI 52.34 Rollins ROL 45.24 RoperTech ROP 259.26 RoyalBkCanada RY 79.42 RoyalBkScotland RBS 7.31 RoyalCaribbean RCL 128.92 RoyalDutchA RDS.A 64.35 RoyalDutchB RDS.B 66.06 SAP SAP 114.60 S&P Global SPGI 160.06 SINOPECShanghai SHI 59.88 SK Telecom SKM 25.59 SLGreenRealty SLG 97.04 s Salesforce.com CRM 105.03 Sanofi SNY 45.88 SantanderConUSA SC 16.42 Sasol SSL 30.48 Scana SCG 43.23 Schlumberger SLB 67.06 SchwabC SCHW 44.28 ScottsMiracleGro SMG 98.87 SealedAir SEE 44.80 SemicondctrMfg SMI 8.47 s SempraEnergy SRE 121.03 SensataTech ST 48.56 ServiceCorp SCI 35.55 ServiceMaster SERV 46.82 ServiceNow NOW 127.62 ShawComm B SJR 22.50 SherwinWilliams SHW 395.51 ShinhanFin SHG 43.95 Shopify SHOP 99.40 SimonProperty SPG 157.03 SmithAO AOS 59.57 Smith&Nephew SNN 36.73 Smucker SJM 103.38 Snap SNAP 12.91 SnapOn SNA 157.33 SOQUIMICH SQM 59.82 s Sony SNE 47.47 Southern SO 51.77 SoCopper SCCO 44.39 SouthwestAirlines LUV 54.01 SpectraEnerPtrs SEP 41.64 SpectrumBrands SPB 104.20 SpiritAeroSys SPR 82.38 t Sprint S 5.99 Square SQ 36.71 StanleyBlackDck SWK 165.72 StateStreet STT 91.13 s Statoil STO 20.85 Steris STE 87.69 STMicroelec STM 24.68 Stryker SYK 156.46 SumitomoMits SMFG 8.00 SunCommunities SUI 93.16 SunLifeFinancial SLF 38.83 s SuncorEnergy SU 36.07 SunTrustBanks STI 57.61 SynchronyFin SYF 32.07 Syngenta SYT 92.29 Sysco SYY 53.98 TAL Education TAL 30.36 s TE Connectivity TEL 93.70 Telus TU 37.09 TIM Part TSU 18.30 TJX TJX 67.98 TaiwanSemi TSM 42.43 Tapestry TPR 40.08 TargaResources TRGP 43.67 Target TGT 58.37 TataMotors TTM 33.69 TechnipFMC FTI 29.14 0.23 1.53 0.35 0.50 -0.79 0.30 0.27 -0.02 0.07 -0.02 0.58 0.07 -2.10 -0.20 -0.30 2.12 -0.03 1.02 -0.62 0.60 0.06 0.19 0.50 -0.17 0.25 1.70 0.47 0.49 -3.47 0.07 0.03 -0.17 -0.29 0.43 0.14 1.03 -0.05 2.00 0.50 -0.11 -0.34 0.31 -0.26 0.05 -0.02 0.48 0.61 0.31 -7.05 -0.43 0.09 -0.13 -1.09 0.11 0.01 -0.31 -0.19 -0.41 0.38 0.99 0.94 0.09 0.58 2.31 0.30 -0.20 0.04 -1.30 0.63 0.13 -3.55 1.19 -0.17 0.51 0.46 -0.59 -0.44 2.09 -0.12 1.50 -0.83 -0.31 -2.02 0.07 -0.35 1.61 -2.21 -1.22 -0.01 1.46 0.05 0.37 0.14 -1.05 0.35 -0.12 0.24 -0.05 0.52 0.85 0.09 0.38 0.27 0.24 0.06 0.21 -0.32 0.02 -0.47 -0.29 -0.01 1.39 ... 0.47 0.32 0.78 -0.01 -0.08 -1.85 -0.62 0.48 0.27 -0.15 Net Sym Close Chg Stock TeckRscsB TECK 21.84 TelecomArgentina TEO 34.16 TelecomItalia TI 8.47 TelecomItalia A TI.A 6.88 s TeledyneTech TDY 185.50 Teleflex TFX 259.59 TelefonicaBras VIV 15.25 Telefonica TEF 10.06 TelekmIndonesia TLK 30.03 Tenaris TS 29.89 s Teradyne TER 43.89 TevaPharm TEVA 11.83 Textron TXT 54.85 ThermoFisherSci TMO 193.86 ThomsonReuters TRI 44.27 ThorIndustries THO 130.24 3M MMM 229.83 Tiffany TIF 90.87 TimeWarner TWX 88.50 Toll Bros TOL 46.03 Torchmark TMK 85.24 Toro TTC 62.92 TorontoDomBk TD 57.60 Total TOT 56.71 TotalSystem TSS 71.99 s ToyotaMotor TM 127.98 TransCanada TRP 48.62 TransDigm TDG 284.97 TransUnion TRU 53.60 Travelers TRV 133.52 TurkcellIletism TKC 9.16 TurquoiseHill TRQ 3.16 Twitter TWTR 19.59 TylerTech TYL 172.68 s TysonFoods TSN 74.00 UBS Group UBS 16.95 UDR UDR 40.05 UGI UGI 48.03 US Foods USFD 26.67 UltraparPart UGP 23.72 Unilever UN 57.47 Unilever UL 56.21 UnionPacific UNP 117.80 UnitedContinental UAL 58.92 UnitedMicro UMC 2.55 UPS B UPS 113.13 UnitedRentals URI 148.74 US Bancorp USB 52.68 US Steel X 27.27 UnitedTech UTX 120.28 UnitedHealth UNH 210.77 t UniversalHealthB UHS 100.74 UnumGroup UNM 52.64 VEREIT VER 8.11 VF VFC 69.49 s Visa V 112.47 VailResorts MTN 234.89 Vale VALE 10.39 ValeroEnergy VLO 81.67 Vantiv VNTV 68.44 VarianMed VAR 107.60 Vedanta VEDL 20.17 VeevaSystems VEEV 61.88 Ventas VTR 64.65 Verizon VZ 45.46 VistraEnergy VST 18.88 s VMware VMW 120.55 VornadoRealty VNO 74.24 VoyaFinancial VOYA 41.56 VulcanMaterials VMC 123.90 WABCO WBC 148.15 WEC Energy WEC 68.17 s W.P.Carey WPC 71.32 Wabtec WAB 77.04 s Wal-Mart WMT 90.26 WasteConnections WCN 68.97 WasteMgt WM 81.84 Waters WAT 196.18 s Watsco WSO 165.52 WellCareHealth WCG 202.85 WellsFargo WFC 54.26 Welltower HCN 68.75 WestPharmSvcs WST 101.24 WestarEnergy WR 54.68 WestAllianceBcp WAL 54.62 t WesternGasEquity WGP 37.49 WesternGasPtrs WES 46.56 WesternUnion WU 19.75 s WestlakeChem WLK 93.95 WestpacBanking WBK 25.04 WestRock WRK 59.34 s Weyerhaeuser WY 36.41 WheatonPrecMetals WPM 21.16 Whirlpool WHR 162.77 Williams WMB 28.38 WilliamsPartners WPZ 36.52 Wipro WIT 5.09 WooriBank WF 41.69 Wyndham WYN 109.09 XPO Logistics XPO 73.55 XcelEnergy XEL 50.25 Xerox XRX 29.37 Xylem XYL 66.55 YPF YPF 24.81 s YumBrands YUM 81.13 YumChina YUMC 41.05 s ZTO Express ZTO 17.39 ZayoGroup ZAYO 34.38 ZimmerBiomet ZBH 109.17 Zoetis ZTS 69.51 NASDAQ AGNC Invt AGNC 19.73 Ansys ANSS 151.48 ASML ASML 181.51 Abiomed ABMD 196.97 ActivisionBliz ATVI 64.55 s AdobeSystems ADBE 184.06 AdvMicroDevices AMD 11.71 AkamaiTech AKAM 53.76 AlexionPharm ALXN 115.39 s AlignTech ALGN 252.74 Alkermes ALKS 48.03 Dividend Changes Symbol Amount Yld % New/Old Frq Payable / Record Increased Automatic Data Core-Mark Holding Emerson Electric Huntington Ingalls Inds Ladder Capital Cl A Lexington Realty Trust MainSource Fincl Group NACCO Industries Cl A Nelnet A Sanchez Midstream Ptrs Universal Corp ADP CORE EMR HII LADR LXP MSFG NC NNI SNMP UVV 2.2 1.4 3.1 1.1 9.2 6.8 2.0 1.5 1.2 14.2 4.0 .63 /.57 .10 /.09 .485 /.48 .72 /.60 .315 /.30 .1775 /.175 .18 /.17 .165 /.06225 .16 /.14 .4508 /.4441 .55 /.54 Q Q Q Q Q Q Q Q Q Q Q Jan01 /Dec08 Dec22 /Nov28 Dec11 /Nov17 Dec08 /Nov24 Jan03 /Dec11 Jan16 /Dec29 Dec15 /Dec05 Dec15 /Dec01 Dec15 /Dec01 Nov30 /Nov20 Feb05 /Jan08 ABDC CHKR 13.1 .25 /.34 Q 12.1 .0657 /.1003 Q Jan04 /Dec29 Nov30 /Nov20 Reduced Alcentra Capital Chesapeake Granite Wash Funds and investment companies CS X-Links Gold Harvest Capital Credit 52-Wk % Sym Hi/Lo Chg Stock 30.62 0.3 PwrShS&PIntlDev IDHQ 216.28 0.8 PwrShRussMCGrw PXMG 77.61 1.6 PwrShRussTop200 EQWL 164.55 1.0 PwrShRussTop200G PXLG 113.04 1.6 PwrShS&P500Down PHDG 32.12 2.1 PwrShS&P500LoVol SPLV 38.18 0.4 PwrShS&P500xRate XRLV 47.36 2.3 ProShS&P500xEner SPXE 97.17 1.9 ProShS&P500xFin SPXN 29.62 0.3 ProShrUltraJapan EZJ 50.46 0.5 ProShrUltraQQQ QLD URE 25.16 0.3 ProShrUltraRE USD 36.28 ... ProShrUlSemi ROM 52.31 1.3 ProShrUlTech ProShrUltraUtil UPW 29.70 1.0 68.53 0.5 RealEstSectorSPDR XLRE 25.18 0.3 SPDRMSCIACWIIMI ACIM 26.43 1.0 SPDRMSCIJapanStrat QJPN 26.39 0.8 SPDRMSCIWorldStrat QWLD 25.27 0.4 SPDR NYSE Tech XNTK 29.67 0.5 SPDRS&P500Growth SPYG 29.48 0.4 SPDRSSgAGlbAll GAL 30.08 0.4 SchwabFundIntLrgCo FNDF 40.79 1.7 SchwabFundIntlSmCo FNDC 26.47 0.6 SchwabIntEquity SCHF SCHD 32.66 0.6 SchwabUS Div 29.56 0.4 SchwabUS LC Grw SCHG 33.64 0.8 SPDR MSCI exUS CWI GWX 51.54 0.3 SPDR IntlSC 63.28 1.2 SPDR S&P Semi XSD 45.59 0.4 SprottPhysPlatinum SPPP TechSelectSector XLK 144.06 0.6 104.26 0.3 UBS FIEnhLCGrw FBGX USBrentOilFd BNO 60.95 0.4 28.41 0.9 VanEckAMTFrLgMun MLN 184.37 0.1 VanEckGaming BJK 35.43 0.3 VanEckRareEarth REMX 28.35 0.3 VanEckSemiconduc SMH 26.57 0.1 VanEckUranium NLR VGT 25.63 ... VangdInfoTech 43.74 4.3 VangdFTSEDevMk VEA 33.47 0.2 VangdFTSE Pac VPL 57.68 0.3 VangdFTSEAWxUS VEU VangdGrowth VUG 59.94 0.6 VangdMegaGrwth MGK 30.79 1.7 VangdMCGrowth VOT 27.21 0.4 VangdS&P500 Grw VOOG 30.95 0.2 WBITacticalLCGD WBIE 33.69 0.5 WisdTrAPxJp AXJL 82.59 0.7 WisdTrGlbXMexico XMX 164.72 0.5 WisdTrIntDivxFin DOO 26.20 0.6 WisdTrJpnCapGds DXJC 68.14 0.4 WisdTrJpnHdgQuDiv JHDG 30.21 0.5 WisdTrJapanHdg DXJ 31.15 0.3 WisdTrJpnHlthCare DXJH 91.99 0.5 WisdTrJapanSC DFJ 65.33 0.7 WisdTrUSExport WEXP 115.58 0.3 XtrkrsFTSEDevXus DEEF 44.97 0.9 XtrkrsJpnJPXNik400 JPN 29.39 0.3 XtrkrsMSCIAllChina CN 60.15 0.6 XtrkrsMSCIAWxUS DBAW 78.12 0.7 XtrkrsMSCIEAFE DBEF 47.69 1.0 XtrkrsMSCIEM DBEM 25.82 0.7 XtrkrsMSCIJapan DBJP 86.48 0.3 155.88 0.2 153.31 0.3 131.48 0.4 AIPoweredEquity AIEQ 71.65 0.3 AGFiQ US Neutral SIZ 150.16 0.3 DBCrudeOilDblShrt DTO 156.23 0.5 DirexEMBdBull3X EMBU 169.41 0.5 DirexSemiBear3 SOXS 33.82 0.1 DirexTechBear3 TECS 29.19 1.4 FrankFTSEEurope FLEE 61.89 0.4 FrankFTSE UK FLGB 30.54 0.4 GSAccessHYCorpBd GHYB 59.93 0.3 GuggBS2025HYCpBd BSJP 32.95 0.4 ProShShortQQQ PSQ 32.18 1.4 ProShShtRE REK 83.17 0.8 ProShUltTelecom LTL 14.47 -0.3 ProShUlt3xShCrude OILD 40.59 0.1 ProShUltBloomCrd SCO 33.90 0.3 ProShrUS MSCI Jpn EWV 21.43 0.4 ProShUltShtQQQ QID GLDI HCAP 6.7 11.1 NYSE Arca lows - 24 .0501 .1125 M M 52-Wk % Sym Hi/Lo Chg Stock 24.23 1.2 ProShrUSRlEst SRS 40.79 1.1 ProShrUSTech REW 51.26 0.1 ProShrUSUtil SDP 44.86 0.7 UBSProSh3xInvCrd WTID 27.19 1.4 USAA USA SC Val USVM 47.08 0.3 US ShortOilFd DNO 32.81 0.2 Velocity3xInvCrude DWT 54.21 0.5 52.77 0.4 130.50 2.0 ARNCp 72.25 0.8 ArconicPfd CET 67.75 1.3 CentralSecs GLV 134.39 0.5 CloughGlblDiv 90.46 0.9 CloughGlbEqFd GLQ NEN 52.25 0.1 NE Realty 33.88 0.7 StoneEnergyWt SGY.WS 77.72 0.5 79.16 1.7 74.46 0.5 84.85 0.7 CanFiteBiopharm CANF MCF 32.45 0.3 ContangoO&G DXR 37.69 0.3 Daxor 30.57 0.3 IMPAC Mortgage IMH PCGpB 35.78 0.4 PacGE pfB 34.32 0.4 48.90 0.3 68.82 0.3 38.88 0.4 AdobeSystems ADBE AEGN 36.07 0.5 Aegion ALGN 73.65 1.3 AlignTech ALTR 9.09 1.8 AltairEngg AMZN 64.02 0.5 Amazon.com AAPL 215.57 1.0 Apple TEAM 17.34 -0.4 Atlassian 20.35 0.2 BldrsAsia50ADS ADRA CCMP 44.15 1.3 CabotMicro CIFS 28.36 3.2 ChinaInternet CDXC 104.40 0.2 ChromaDex 54.00 ... CitiusPharmWt CTXRW ClearBr AC Grw CACG 166.24 0.6 CGNX 44.48 0.4 Cognex COHR 72.83 0.8 Coherent CVGI 54.15 0.4 CommVehicle CSGP 138.22 0.4 CoStarGroup CY 109.35 0.3 CypressSemi DSGX 125.12 0.3 Descartes EXAS 134.71 0.3 EXACT Sci EBIX 25.11 0.7 Ebix EQIX 69.60 0.6 Equinix EsquireFinancial ESQ 28.95 0.9 43.61 0.4 FT CapStrength FTCS SKYY 29.29 0.5 FT CloudComp 29.60 0.9 FT DevMktsXUS FDTS 59.55 0.6 FT NasdTechDiv TDIV 36.38 0.4 FT JapanAlpha FJP 78.76 0.6 FT NasdCleanEdge QCLN 31.10 1.0 FT Nasd100Tech QTEC 29.54 0.4 FT NasdSmartphone FONE 29.53 0.8 FT NasdSemicon FTXL 37.75 0.1 FT RiverFrDynAP RFAP FIVE 28.30 0.3 FiveBelow FLL 32.33 0.3 FullHouse GDS 24.41 0.3 GDSHoldings GRVY 44.34 0.5 GRAVITY GSV Capital GSVC GladstoneCommPfA GOODP GladstoneInvt GAIN 24.32 0.4 GlbX Robotics&AI BOTZ HLG 19.57 -0.7 HailiangEduc 95.23 1.1 HalozymeTherap HALO HLNE 25.23 -0.4 HamiltonLane QYLD 14.54 -1.1 HorizNasd100 7.00 -1.3 IAC/InterActive IAC IPGP 24.88 -0.4 IPG Photonics ICCC 24.91 -0.3 Immucell 49.83 -0.2 InfinityPropCas IPCC INGN 24.79 -0.3 Inogen 35.90 -0.4 IntegratedDevice IDTI 15.72 -0.6 IntuitiveSurgical ISRG 38.40 -1.8 iSectorsPostMPT PMPT AIA 12.30 2.1 iShAsia50ETF 26.70 1.5 iShCommodSelStrat COMT 26.78 -1.5 iShCoreMSCITotInt IXUS 13.67 -0.9 iShCoreS&PUSGrowth IUSG 0.16 -0.45 -2.01 -0.24 3.59 3.18 -0.34 ... -2.03 6.28 0.33 AlnylamPharm ALNY 132.33 2.83 Alphabet C GOOG 1039.85 6.52 Alphabet A GOOGL 1058.29 5.90 Altaba AABA 71.16 -1.06 s Amazon.com AMZN 1132.88 9.71 Amdocs DOX 63.27 0.32 Amerco UHAL 380.02 -0.13 AmericanAirlines AAL 46.37 -0.09 Amgen AMGN 173.58 0.10 AnalogDevices ADI 92.00 0.10 s Apple AAPL 176.24 1.43 AppliedMaterials AMAT 56.92 0.45 ArchCapital ACGL 95.45 -0.15 s Atlassian TEAM 52.94 1.13 Autodesk ADSK 123.84 0.44 ADP ADP 112.59 -0.16 Baidu BIDU 241.18 -2.29 BankofOzarks OZRK 44.00 -0.73 Biogen BIIB 312.58 -0.99 BioMarinPharm BMRN 82.81 -0.96 Bioverativ BIVV 54.14 0.73 bluebirdbio BLUE 146.70 ... BrighthouseFin BHF 56.29 -0.66 Broadcom AVGO 272.40 1.08 CA CA 32.62 0.32 CDK Global CDK 63.61 0.35 CDW CDW 67.85 -0.50 CH Robinson CHRW 80.63 0.13 CME Group CME 137.60 0.05 CSX CSX 51.49 -0.33 CadenceDesign CDNS 44.07 -0.23 CaesarsEnt CZR 13.05 0.10 Carlyle CG 21.50 -0.50 CboeGlobalMkts CBOE 113.42 ... Celgene CELG 101.65 -0.68 CentennialRsc CDEV 20.03 -0.99 Cerner CERN 66.28 0.36 CharterComms CHTR 337.90 -5.11 CheckPointSftw CHKP 105.36 0.37 ChinaLodging HTHT 127.80 -1.81 CincinnatiFin CINF 72.70 -0.17 Cintas CTAS 149.61 1.74 CiscoSystems CSCO 34.50 0.10 CitrixSystems CTXS 85.91 1.43 s Cognex CGNX 135.39 -0.62 CognizantTech CTSH 74.38 -0.27 s Coherent COHR 297.24 31.77 Comcast A CMCSA 36.21 -0.18 CommerceBcshrs CBSH 55.46 -0.64 CommScope COMM 33.85 -0.06 Copart CPRT 35.90 0.15 s CoStarGroup CSGP 300.70 1.34 Costco COST 169.05 2.77 Ctrip.com CTRP 45.95 0.05 CyrusOne CONE 63.23 0.83 DISH Network DISH 48.73 -1.34 DentsplySirona XRAY 64.51 0.13 DiamondbackEner FANG 110.04 -1.76 DiscoveryComm A DISCA 17.10 -0.23 DiscoveryComm C DISCK 15.99 -0.22 DollarTree DLTR 93.90 0.28 E*TRADE ETFC 43.48 -0.14 s EXACT Sci EXAS 60.51 0.01 EastWestBancorp EWBC 57.33 -0.31 eBay EBAY 37.01 -0.40 ElbitSystems ESLT 148.00 0.20 ElectronicArts EA 114.15 2.45 s Equinix EQIX 492.98 4.92 Ericsson ERIC 6.28 -0.20 ErieIndemnity A ERIE 122.04 -0.41 Exelixis EXEL 26.40 -0.19 Expedia EXPE 118.56 -1.05 ExpeditorsIntl EXPD 60.49 -1.55 ExpressScripts ESRX 61.30 0.70 F5Networks FFIV 121.34 1.21 Facebook FB 179.56 -0.69 Fastenal FAST 48.47 0.43 FifthThirdBncp FITB 28.30 -0.15 FirstSolar FSLR 61.79 0.83 Fiserv FISV 128.82 1.85 Flex FLEX 18.36 0.13 FlirSystems FLIR 46.99 -0.28 Fortinet FTNT 39.91 0.82 Gaming&Leisure GLPI 37.20 0.24 Garmin GRMN 59.65 0.44 GileadSciences GILD 73.10 -0.11 Goodyear GT 29.24 -0.35 Grifols GRFS 23.01 -0.27 GpoFinGalicia GGAL 53.71 0.77 HD Supply HDS 36.12 -0.22 Hasbro HAS 89.01 -0.88 t HenrySchein HSIC 70.00 -1.01 Hologic HOLX 39.54 0.04 JBHunt JBHT 104.36 -2.29 HuntingtonBcshs HBAN 13.29 -0.11 s IAC/InterActive IAC 130.84 2.20 IdexxLab IDXX 150.07 -0.01 IHSMarkit INFO 43.93 0.50 INC Research INCR 57.50 -1.10 s IPG Photonics IPGP 221.79 0.36 IRSA Prop IRCP 58.00 1.65 IcahnEnterprises IEP 58.12 -0.38 Icon ICLR 120.70 -0.69 Illumina ILMN 211.20 -0.54 Incyte INCY 104.98 -3.16 Intel INTC 46.70 -0.08 InteractiveBrkrs IBKR 53.99 -0.10 Intuit INTU 152.96 0.45 s IntuitiveSurgical ISRG 392.34 1.30 IonisPharma IONS 54.76 2.46 JD.com JD 40.33 0.54 s JackHenry JKHY 113.86 1.30 JazzPharma JAZZ136.40 3.58 JetBlue JBLU 18.80 -0.12 JunoTherap JUNO 54.96 -1.02 KLA Tencor KLAC 107.08 -0.42 KraftHeinz KHC 79.58 1.40 LKQ LKQ 36.91 -0.06 s LamResearch LRCX 211.24 2.05 LamarAdvertising LAMR 76.95 -0.26 LibertyBroadbandC LBRDK 87.73 -1.78 LibertyBroadbandA LBRDA 87.09 -1.63 LibertyGlobal A LBTYA 29.80 -0.74 Company Dividend announcements from November 8. Company 0.37 1.51 -0.14 -0.17 1.25 -0.72 0.30 -0.05 -0.40 -0.37 0.36 0.14 0.57 0.65 -0.24 2.20 -0.22 -1.48 -6.16 0.68 0.06 0.21 0.12 -0.13 -0.01 0.52 -0.34 1.64 0.47 -0.20 -0.24 -0.01 -0.07 0.02 0.91 0.05 0.76 ... 0.63 0.32 0.62 0.60 0.76 0.21 0.02 -0.82 1.19 -0.77 0.32 -0.47 -1.93 -0.31 -0.06 0.08 0.81 0.38 -0.85 0.07 -0.16 0.23 1.13 -0.45 0.61 0.32 -0.11 -0.07 0.12 0.27 -0.49 1.24 -0.92 -0.07 0.10 0.84 1.31 -0.17 0.21 -0.17 -2.09 0.45 -0.79 0.16 0.20 0.09 0.06 -0.59 -0.66 0.59 2.33 0.25 0.39 0.42 ... 0.21 -0.39 -0.74 0.04 0.09 0.41 -0.03 0.22 0.78 -0.06 0.09 0.12 -0.15 0.28 -0.08 0.45 1.17 Net Sym Close Chg Stock Nov27 /Nov21 Nov30 /Nov24 Symbol Harvest Capital Credit Harvest Capital Credit IQ Enh Core Plus Bd US IQ Enhanced Core Bd US MS Income Secs TCG BDC TPG Specialty Lending TPG Specialty Lending HCAP HCAP AGGP AGGE ICB CGBD TSLX TSLX Net Sym Close Chg Stock LibertyGlobal C LBTYK 28.83 -0.85 LibertyLiLAC A LILA 22.16 0.29 LibertyLiLAC C LILAK 21.96 0.20 LibertyQVC B QVCB 21.47 -0.72 LibertyQVC A QVCA 21.54 -0.01 LibertyVenturesA LVNTA 56.36 -1.08 LibertyFormOne C FWONK 37.55 -0.46 LibertyFormOne A FWONA 35.87 -0.52 LibertyBraves A BATRA 22.71 0.15 LibertyBraves C BATRK 22.84 0.12 LibertySirius C LSXMK 40.82 -0.35 LibertySirius A LSXMA 40.89 -0.25 LincolnElectric LECO 87.22 -1.03 LogitechIntl LOGI 36.17 -0.20 LogMeIn LOGM 118.50 -3.20 lululemon LULU 61.64 1.40 MKS Instrum MKSI 107.85 1.30 MarketAxess MKTX 178.75 0.74 s Marriott MAR119.98 -0.91 MarvellTech MRVL 20.15 0.02 s MatchGroup MTCH 29.59 2.69 s MaximIntProducts MXIM 55.33 0.62 MelcoResorts MLCO 25.22 0.21 MercadoLibre MELI 260.10 -5.53 MicrochipTech MCHP 92.81 1.37 MicronTech MU 44.09 0.14 Microsemi MSCC 54.03 0.08 Microsoft MSFT 84.56 0.29 t Middleby MIDD 111.79 -7.26 Mondelez MDLZ 41.60 0.39 MonsterBeverage MNST 58.00 0.08 Mylan MYL 37.24 0.57 NXP Semi NXPI116.34 -0.32 Nasdaq NDAQ 72.74 0.72 NatlInstruments NATI 45.10 -0.12 s NetApp NTAP 45.33 0.68 Netease NTES 314.18 7.59 Netflix NFLX 196.44 0.55 s Neurocrine NBIX 74.05 -0.48 NewsCorp B NWS 14.45 0.05 NewsCorp A NWSA 14.14 -0.01 Nordson NDSN 126.00 -0.94 NorthernTrust NTRS 92.87 0.46 NorwegianCruise NCLH 55.56 0.20 NVIDIA NVDA 209.16 -2.87 OReillyAuto ORLY 209.65 1.54 OldDomFreight ODFL 120.95 -0.27 ON Semi ON 21.85 0.24 OpenText OTEX 33.40 -0.33 PTC PTC 65.04 -0.09 Paccar PCAR 70.52 0.04 PacWestBancorp PACW 45.44 -0.03 Paychex PAYX 64.55 0.28 PayPal PYPL 74.77 0.36 People'sUtdFin PBCT 17.95 -0.10 s PilgrimPride PPC 33.13 2.67 Priceline PCLN1661.11 15.39 Qiagen QGEN 31.74 1.06 s Qorvo QRVO 80.82 2.36 Qualcomm QCOM 65.49 1.39 RandgoldRscs GOLD 91.42 0.27 RegenPharm REGN 415.17 10.78 RossStores ROST 63.87 -0.92 RoyalGold RGLD 89.21 0.16 Ryanair RYAAY 111.65 -0.15 s SBA Comm SBAC 169.50 3.85 SEI Investments SEIC 65.11 -0.02 Sina SINA107.61 4.61 SS&C Tech SSNC 40.73 0.13 SVB Fin SIVB 209.56 -5.50 ScrippsNetworks SNI 78.85 -1.54 Seagate STX 37.71 0.59 SeattleGenetics SGEN 57.87 -0.58 Shire SHPG 141.31 -3.38 SignatureBank SBNY 124.41 -2.39 SiriusXM SIRI 5.36 0.03 Skyworks SWKS 113.15 1.96 s Splunk SPLK 71.16 3.16 Starbucks SBUX 57.91 0.69 SteelDynamics STLD 37.77 0.38 Stericycle SRCL 67.10 -0.06 Symantec SYMC 29.03 0.35 Synopsys SNPS 87.07 0.16 TD Ameritrade AMTD 48.63 0.14 t TESARO TSRO 98.44-13.64 T-MobileUS TMUS 56.22 0.86 TRowePrice TROW 93.49 -0.27 s TakeTwoSoftware TTWO 117.65 11.26 Tesla TSLA 304.39 -1.66 TexasInstruments TXN 98.44 0.04 TractorSupply TSCO 60.64 1.50 Trimble TRMB 40.42 -0.06 21stCenturyFoxA FOXA 28.09 0.34 21stCenturyFoxB FOX 27.35 0.31 UltaBeauty ULTA 195.90 -2.11 UltimateSoftware ULTI 199.00 2.87 s UniversalDisplay OLED 168.70 1.13 VEON VEON 3.81 0.03 VeriSign VRSN 109.97 0.87 VeriskAnalytics VRSK 92.57 0.28 VertxPharm VRTX 147.40 -3.91 Viacom B VIAB 24.30 -0.48 Viacom A VIA 29.70 -0.55 Vodafone VOD 28.81 -0.13 WPP WPPGY 85.35 -0.17 WalgreensBoots WBA 68.90 0.98 s Weibo WB 108.97 9.69 WesternDigital WDC 87.12 1.03 WillisTwrsWatson WLTW 160.99 -0.61 Workday WDAY 110.88 2.35 WynnResorts WYNN 152.79 0.60 Xilinx XLNX 73.62 -0.29 Yandex YNDX 32.72 0.14 ZebraTech ZBRA106.61 -2.70 Zillow A ZG 41.15 0.93 Zillow C Z 41.04 1.07 ZionsBancorp ZION 44.54 -0.34 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO Amount Yld % New/Old Frq 11.1 11.1 1.9 1.9 2.8 8.1 7.5 7.5 .1125 .1125 .03241 .03189 .0425 .37 .06 .39 M M M M M Q Q 50.43 28.25 26.98 31.56 0.24 -0.45 -0.16 0.22 Payable / Record Dec29 /Dec22 Jan26 /Jan19 Nov13 /Nov09 Nov13 /Nov09 Nov24 /Nov17 Jan17 /Dec29 Dec29 /Nov30 Jan12 /Dec15 Stocks SPI Energy 1:10 SPI Foreign CS X-Links Crude Oil ETN CS X-Links Silver ETN Innospec Tenaris ADR USOI SLVO IOSP TS 8.2 9.8 1.1 1.7 BSET 1.2 /Nov08 .1735 M .0663 M .39 SA .26 SA Nov27 /Nov21 Nov27 /Nov21 Nov27 /Nov16 /Nov21 Special Bassett Furniture Inds .35 Dec15 /Dec01 Suspended Evertec EVTC Q Dec08 / 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 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg 28.75 -1.3 iShMSCIACWIETF ACWI 70.87 0.2 TowerSemi 8.76 -3.1 34.20 5.2 GreatElmCap TSEM GECC 16.40 -1.0 iShMSCIACWIexUSETF ACWX 49.67 0.3 UniversalDisplay OLED 1.35 -6.0 170.00 0.7 Gulf Resources GURE 23.26 0.3 iShMSCIACxJpn AAXJ 76.59 0.5 UroGenPharma URGN 8.85 0.6 38.56 2.8 HabitRestaurants HABT 17.58 2.0 iShMSCIEAFEESGOpt ESGD 67.77 0.3 VangdRuss1000Grw VONG 134.83 0.3 HarvestCapCredit HCAP 11.70 -4.0 49.17 0.4 iShMSCIEMESGOpt ESGE 72.51 0.7 VangdTotIntlBd BNDX 68.35 -1.4 HSIC 55.18 -0.1 HenrySchein 59.21 0.8 iShMSCIEmMkAsia EEMA 74.89 0.5 VicShIntlVolWtd CIL 11.00 0.6 40.16 0.4 HostessBrands TWNK 16.04 2.2 iShMSCIUSAESGOpt ESGU 56.87 0.3 VidentIntlEquityFd VIDI 1.23 6.2 28.00 0.4 HostessBrandsWt TWNKW iShPHLXSemicond SOXX 179.05 0.3 Virtusa 6.20 0.5 IMMR 44.76 16.8 Immersion VRTU 114.25 1.2 Weibo JackHenry JKHY 1.05 -12.5 INOD 109.07 9.8 Innodata WB 29.17 7.5 WisdTrJapanHdgSC DXJS KellyServices A KELYA 5.22 0.4 INO 45.37 0.5 InovioPharma 91.25 1.7 KingtoneWrls 8.00 71.5 WisdTrUSQltyDiv DGRW KONE 14.40 -1.1 39.66 0.4 iShMSCIQatarCapped QAT 27.23 0.7 Kulicke&Soffa 24.56 4.2 Zynga KLIC 2.40 -5.8 JAKK 4.09 4.4 JAKKS Pacific ZNGA 14.39 0.6 LGI Homes 66.13 -3.4 LGIH 0.11 13.9 JaguarHealth JAGX 13.96 0.7 LamResearch 211.41 1.0 LRCX 8.07 -9.2 LexiconPharm LXRX 75.25 1.7 LigandPharm 148.25 0.2 LGND 10.80 -17.0 LibertyTax TAX 6.84 0.6 LimelightNetworks LLNW 11.26 -3.9 LibertyTripAdvA LTRPA 5.73 1.6 ANGI Homesvcs ANGI 7.95 2.1 36.41 0.3 LombardMedical EVAR ACIA 75.72 1.4 AcaciaComms MGPIngredients MGPI 0.22 -15.9 28.82 -0.7 magicJackVocal CALL MMACapitalMgmt MMAC 25.91 0.4 AcadiaHealthcare ACHC 5.55 -1.7 0.79 -6.0 MartinMidstream MMLP 124.34 -0.8 AethlonMedical AEMD Marriott MAR 14.97 -2.3 1.44 -2.6 MatchGroup 7.31 1.2 Middleby AIRG 32.87 10.0 Airgain MTCH 111.50 -6.1 MIDD 3.24 -27.2 MaximIntProducts MXIM 0.68 -5.9 MinervaNeurosci NERV 55.43 1.1 AkersBiosciences AKER 5.05 -5.6 4.05 -1.4 MeridianBank 5.00 2.8 NetSolTech AKTS 18.48 -1.9 AkoustisTechs MRBK 3.15 -3.1 NTWK 12.02 -5.8 NICE 7.45 -7.7 NovelionTherap NVLN 85.61 1.1 AlcentraCapital ABDC NICE 4.53 -2.3 26.76 -1.0 NVE 30.65 -9.5 NumereX ANDE 88.95 -0.4 Andersons NVEC 3.43 2.0 NMRX 0.04 ... AndinaAcqnIIWt ANDAW 93.20 0.4 Nathan's NATH 7.77 -3.5 ObalonTherap OBLN 2.35 -8.8 OcularTherapeutix OCUL ASTC 31.74 12.9 Astrotech NektarTherap NKTR 4.70 -8.2 20.57 -6.2 OxbridgeReWt 45.50 1.5 AxonEnterprise AAXN NetApp NTAP 0.15 3.8 OXBRW 184.44 1.8 0.29 -9.4 PCM 75.98 -0.6 BlackRidgeAcqnWt BRACW Neurocrine NBIX 9.70 -1.5 PCMI 27.19 3.2 4.61 -12.7 PacBiosciCA CHFS 23.94 ... CHF Solutions NuvNasd100Dyn QQQX 2.66 7.3 PACB 253.65 2.5 9.60 0.2 PapaJohn's 2.55 60.0 CMSevenStarAcqn CMSS OncoSecMedical ONCS 57.32 -0.3 PZZA 20.38 4.4 13.15 -0.2 Patterson CFFN 11.75 3.7 CapitolFedFin Otelco OTEL 33.96 -2.4 PDCO 1135.54 0.9 16.11 5.2 PerionNetwork CATM 33.79 14.3 Cardtronics PAM Transport PTSI 0.95 -5.0 PERI 176.24 0.8 9.90 -2.9 ProQR Therap TAST 27.13 1.0 CarrolsRestr PennNational PENN 3.60 -2.0 PRQR 53.21 2.2 5.66 -33.9 ProShUltraProShQQQ SQQQ CECE 9.95 4.2 CECO Env Perceptron PRCP 22.26 -1.3 34.69 0.5 1.76 -4.3 Radisys CRNT 33.40 8.8 Ceragon PilgrimPride PPC 0.81 -32.0 RSYS 98.95 1.7 1.42 -10.4 RedHillBio CDTI 29.64 0.5 CleanDiesel PwrShFTSEIntlLow IDLB 5.17 -29.6 RDHL 48.50 1.6 6.75 -3.9 ReShapeLifesci RSLS CLRO 25.48 0.6 ClearOne PwrShGlbWater PIO 1.51 -8.4 5.34 -3.6 14.21 -0.5 RestorationRob HAIR CNSL PwrShIntlBuyBack IPKW 36.00 0.5 ConsldComm 6.25 -2.0 1.05 42.2 35.38 1.0 RevolutionLight RVLT CRTO 154.54 0.4 Criteo PwrShQQQ 1 QQQ 4.38 -1.7 26.95 0.2 0.02 -39.5 RosettaGenmcs ROSG 2.09 1.0 CytoriTherapWt CYTXW ProfireEnergy PFIE 0.61 -7.6 137.76 -0.5 1.71 -3.1 SabraHealthcare SBRA CYTR 43.83 ... CytRx ProShEquRising EQRR 19.10 -1.0 309.30 12.0 0.79 -0.7 SearsHoldings DMPI ProShUltPrQQQ TQQQ 136.05 1.3 DelMarPharm 4.65 -6.0 SHLD 10.43 -3.3 0.81 5.3 SelectaBiosci 58.01 6.4 DifferentialBrds DFBG ProvidenceService PRSC 9.32 -9.0 SELB 302.12 0.4 9.55 1.6 SteinMart 136.90 2.0 ElPolloLoco PumaBiotech LOCO PBYI 0.89 -6.9 SMRT 16.96 1.3 7.02 0.3 TESARO 80.94 3.0 Energous WATT Qorvo QRVO 94.36 -12.2 TSRO 29.70 1.0 0.80 6.2 TearLab 19.71 9.4 ENGlobal Rapid7 ENG RPD 0.59 -45.7 TEAR 63.60 ... 8.79 1.0 TherapixBiosci 27.31 7.0 Essendant RedRockResorts RRR ESND 5.00 -1.8 TRPX 74.55 7.3 8.00 -1.5 Travelzoo 170.53 2.3 FAT Brands SBA Comm FAT SBAC 6.48 -1.9 TZOO 495.35 1.0 9.39 -5.8 TripAdvisor 19.82 13.6 FTD ShotSpotter FTD SSTI 29.79 4.3 TRIP 16.98 2.6 18.18 0.9 USAutoPartsNtwk PRTS 71.31 4.6 Finisar Splunk FNSR 2.25 -3.4 SPLK 49.56 -0.1 19.80 -0.5 UltragenyxPharm RARE 18.70 6.7 FT SMID CapRising SDVY SpringBkPharm SBPH 44.45 -0.4 44.38 0.9 10.30 -4.9 VandaPharm 7.96 1.0 FogodeChao SprottFocus FOGO 12.60 -12.4 FUND VNDA 43.18 0.9 4.60 -8.9 VeecoInstr StarsGroup 21.20 0.2 ForwardPharma FWP 15.85 1.2 TSG VECO 34.89 0.4 5.50 -17.2 Versartis TakeTwoSoftware TTWO 120.62 10.6 Fossil 1.60 -4.3 FOSL VSAR 59.47 1.0 1.82 -2.1 ZealandPharma ZEAL 45.23 2.0 GlobalEagle Talend 14.52 -1.3 ENT TLND 20.76 ... 73.92 0.6 52.92 1.4 31.98 0.6 61.78 1.0 58.34 1.3 3.14 1.0 % Chg From % Chg From 18.37 0.7 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day 77.00 12.2 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close 6.15 3.7 27.01 0.8 CBTX 28.71 ... ACM Research 5.60 10.4 ... –7.4 11.11 2.5 CBTX Nov. 8/$26.00 ACMR Nov. 3/$5.60 24.36 0.8 36.58 14.9 Four Seasons Edu 9.50 ... Aquantia 11.43 27.0 20.2 –5.0 19.23 13.4 31.21 7.2 FEDU Nov. 8/$10.00 AQ Nov. 3/$9.00 24.50 0.1 InflaRx 14.99 ... Spero Thera 12.61 –9.9 9.7 –0.1 137.86 1.7 224.47 0.2 IFRX Nov. 8/$15.00 SPRO Nov. 2/$14.00 8.83 -3.5 104.29 -0.1 Metropolitan Bank 37.21 ... Allena Pharmaceuticals 11.58 –17.3 16.0 6.3 124.90 15.5 MCB Nov. 8/$35.00 ALNA Nov. 2/$14.00 33.64 1.0 393.51 0.3 Meridian Bank Funko 17.90 –1.9 8.10 –32.5 14.6 5.3 27.23 ... 66.18 0.6 MRBK Nov. 7/$17.00 FNKO Nov. 2/$12.00 37.11 ... 62.63 0.4 52.81 0.3 Sources: WSJ Market Data Group; FactSet Research Systems NYSE American highs - 6 Nasdaq lows - 95 NYSE American lows - 5 Nasdaq highs - 124 IPO Scorecard Performance of IPOs, most-recent listed first 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. Thursday, November 9, 2017 | B11 BANKING & FINANCE Merrill Lynch Revamps Pay for Brokers New compensation structure rewards those who refer more clients to parent bank BY LISA BEILFUSS Merrill Lynch is adjusting the way it rewards its brokers as it looks to juice more from its current ranks while ensuring wealth-management clients are referred to the parent bank. Bank of America Corp.’s wealth-management arm in a memo to advisers that was previewed earlier Wednesday unveiled the changes to its 2018 compensation plan, introducing a bonus system that allows a broker to earn up to an additional 2% in pay if certain growth targets are achieved. Those thresholds include 5% growth from a year earlier in the amount of net new assets and liabilities like securitiesbacked loans brought in, and at least five new affluent households or two ultrahighnet-worth household clients, people familiar with the matter said. But to have access to the new award program—in addition to other perks—brokers must refer at least two cus- tomers to other parts of Bank of America, including its online brokerage platform Merrill Edge and its retail bank. That means brokers who hit growth targets without making two client referrals would forfeit a 2% pay increase. The referral quota itself is unchanged from 2017. What changes is that instead of levying a 1% pay penalty on brokers who didn’t meet the referral quota this year, the bank incentivizes the referrals. “The focus on referrals is strengthening over time,” said a person familiar with the matter. Still, regardless of referrals, Merrill brokers who fail to meet minimum growth targets—at least 2.5% growth in net new assets and liabilities and three affluent household clients or one ultrahigh-networth household—will see their pay fall by up to 2%. Merrill defines affluent households as those with at least $250,000 in investible assets at Merrill Lynch; ultrahighnet-worth households have $10 million or more in investible assets with the firm. Some of the compensation changes are designed to address conflicts of interest that can crop up when a broker has an incentive to make certain recommendations. In prior years, Merrill Lynch had an award program that was hitched to the sales of particular products. The 2018 formula doesn’t incentivize one type of product, from credit cards to securities-backed loans, over another, said people familiar with the matter. “The market is moving to a fiduciary standard,” one person familiar with the matter said, “so ensuring potential conflicts are minimized is part and parcel.” The compensation changes at Merrill also come at a time when brokerage ranks are shrinking and recruiting is stagnant across the industry. Competition from robo advisers, discount brokerages and registered investment advisers is also heating up as firms across the wealth-management industry vie for new clients. “The market opportunity is huge,” head of Merrill Lynch Wealth Management Andy Sieg said in a memorandum announcing the 2018 pay changes to the firm’s force of about 15,000 brokers. A person familiar with the matter said the firm expects growth-award costs to be “greatly offset” by the growth they are designed to encourage. Tax-Plan Change Unlikely to Burden Buyout Companies HASSAN SARBAKHSHIAN/BLOOMBERG NEWS BY MIRIAM GOTTFRIED Republicans last week proposed ending the tax exemption on private-activity bonds. Workers on Interstate 66 in Virginia in 2015. Some Munis’ Tax-Free Status at Risk BY HEATHER GILLERS A team of private and public officials prepared a routine offer for investors last week: Buy tax-exempt bonds to pay for the widening of an interstate outside Washington. But demand for the debt swelled after Republicans unveiled a proposal to end the tax-free benefits of these socalled private-activity bonds, says an investor who participated in the offering. Prices on the Interstate 66 bonds have jumped 3% since the $353 million offering closed last Friday morning, according to Municipal Securities Rulemaking Board data. It didn’t take long for the House Republican tax plan to roil a roughly $750 billion corner of the muni-debt market. “Over the last three trading days, the types of bonds that are scheduled for potential elimination are being gobbled up,” said John Miller, co-head of Global Fixed Income at Nuveen Asset Management. “People are paying higher prices with some nervousness that these bonds will be very scarce going forward.” For decades, nonprofits and certain for-profit firms have been able to raise money the same way that state and local governments do: by issuing tax-exempt bonds for projects perceived to have a public benefit. The proceeds from these private-activity bonds—which have averaged about $110 bil- Borrowing Boom Private-activity bond issuance $150 billion 125 100 75 50 25 0 1990 ’95 2000 ’05 ’10 ’15 Note: Data not available for 2005 Source: Internal Revenue Service lion a year over the past decade—help pay for everything from hospitals, nursing homes and college dorms to charter schools, housing and highways. Elected officials have been contemplating ending this tax exemption on private-activity bonds for several years. The current proposal states that $40 billion in additional tax revenue would be made available over the next decade if the exemption were removed. It is possible private-activity bonds could remain tax free if changes are made to the Republican House plan as it makes its way through Congress. But now that an actual proposal is on the table, those who follow the municipal-bond market are predicting that market will shrink if the ex- THE WALL STREET JOURNAL. emption is gone and it will be more difficult to attract private investment to infrastructure. Analysts also expect a surge of tax-exempt borrowing by private companies and nonprofits rushing to use the exemption before it is gone. “The whole thing is quite shocking,” said George Friedlander, managing partner at Court Street Group Research and a municipal-market veteran who has tracked tax policy since the 1980s. There was a time when private-activity bonds could be used to fund any project as long as a local-government official approved. Congress first established rules for privateactivity bonds in 1968, offering a specific list of approved projects, including airports and low-income housing. In the 1980s, Congress added new types of private-activity bonds and capped how much nonprofits could issue, but the cap was lifted in the 1990s. The use of private-activity bonds has attracted criticism from some who argue that certain borrowers shouldn’t be able to benefit from the exemption. A Congressional Budget Office report in December found that some projects financed with private-activity bonds “probably would take place without a subsidy” and others likely wouldn’t be worth the cost. “We should question whether large hospitals and universities that take in hundreds of millions of dollars in revenues should able to borrow at tax-exempt rates,” said Greg LeRoy, executive director of Good Jobs First, a research group on economic-development incentives. Others say smaller nonprofits such as museums or charter schools might have trouble accessing the corporate-bond market and have to rely on bank loans. “Or just let the roof leak,” said Natalie Cohen, a senior analyst with Wells Fargo Securities. A letter to the House Ways and Means Committee on Monday, signed by trade associations of hospitals, universities, engineers, airports, bond lawyers and public officials, said ending the tax exemption would “undermine vital projects.” BY DANA CIMILLUCA UBS AG is shuffling the top ranks of its investment bank as the Swiss firm seeks to become more nimble and improve its performance in the critical U.S. market. As part of the restructuring, UBS named Joe Reece, Javier Oficialdegui and David Chin to manage its corporateclient services business in the Americas, Europe and Asia, respectively, according to an internal memo seen by The Wall Street Journal. It also named Mike Santini, who joined UBS a year ago from Deutsche Bank AG, and firm veteran Piero Novelli as co-executive chairmen of the global unit, which comprises deal advisory and stock and bond underwriting. Ros Stephenson and William Vereker, currently coheads of the business, known as CCS, will each become executive vice chairs of the investment bank, according to the memo. The moves are designed to give the firm flexibility to tailor its approach to each region while maintaining global cohesion. “Each of our regional CCS businesses, their clients and cultures, are at different stages of development, presenting very different priorities, opportunities and challenges,” Andrea Orcel, head of UBS’s investment bank, wrote in the memo to staff. After suffering devastating losses during the financial crisis, UBS has returned to health by sharpening its focus on managing money for wellheeled clients around the world and streamlining its investment-banking unit. UBS last month said its third-quarter net profit rose JUSTIN TALLIS/AGENCE FRANCE PRESSE/GETTY IMAGES UBS Shifts Investment-Bank Leaders The Swiss bank has sharpened its focus on managing money. 14% from a year earlier on the back of gains in wealth management and investment banking. CCS revenue has risen four quarters in a row. But UBS is still a laggard in some areas within investment banking, particularly in the U.S., where for years it has struggled to break into the top tier. UBS isn’t currently in the top 10 in the M&A league table in the U.S., the biggest fee pool, according to Dealogic. Officials hope that the moves, coupled with a new push to selectively hire top talent, will inject new energy into the business. An amendment late Monday to the tax bill winding its way through the House of Representatives appears to fulfill President Donald Trump’s promise to close the carriedinterest loophole private-equity firms enjoy while also preserving many of the benefits they derive from it. Since his days on the campaign trail, Mr. Trump has made repeated pledges to tax investment gains known as carried interest as ordinary income, which would do away with a rule allowing investment managers to pay a lower rate on a substantial portion of their compensation. Private-equity firms have pushed back, arguing that paying the lower long-term capital-gains rate affords them an incentive to take investment risks that benefit the economy. Monday’s changes to the bill by House Ways and Means Committee Chairman Kevin Brady (R., Texas) would extend the period over which firms must hold an asset before it is eligible for the longterm capital-gains rate to three years from one. While that may hurt some hedge funds, private-equity firms, which tend to hold assets for longer, would be largely unaffected. The top rate on long-term capital gains held more than a year is 20%, an amount that wouldn’t change under the House bill. A 3.8% tax on net investment income also typically applies. “I don’t see this stopping private equity,” said Andrew Kreisberg, a tax attorney with White & Case LLP. Republican lawmakers are “clearly sticking to their line of wanting to incentivize long-term investment.” The American Investment Council, the private-equity industry’s main trade group in Washington, is still publicly opposed to any changes to the treatment of carried interest, arguing such a move “discourages investment and jeopardizes economic growth.” Privately, however, many industry participants are breathing a sigh of relief, as they doubt that the proposed extension of the holding requirement, from one year to Proposal tightens loophole on carried interest but leaves some wiggle room. three, would have much of an effect on firms’ willingness to do deals. Those deals have proved enormously lucrative, with private-equity firms consistently notching double-digitpercentage annual investment gains. Venture-capital firms, which also tend to have a longer investment period, are also unlikely to be affected, law firm Akin Gump Strauss Hauer & Feld LLP said in a note to clients Tuesday. The bigger concern for the private-equity industry remains the tax bill’s proposal to limit businesses’ ability to deduct interest, with a cap of 30% of earnings before interest, taxes, depreciation and amortization. But other aspects of the House effort would benefit buyout shops, particularly a move to lower corporate tax rates. —Richard Rubin contributed to this article. FINANCE WATCH GOLDMAN SACHS Firm Chooses New Managing Directors Goldman Sachs Group Inc. named 509 managing directors, the last steppingstone to a spot in its elite partnership. It is a bigger class than the 425 promoted two years ago, according to an announcement by the firm on Wednesday. Women make up 24%, about even with the 2015 class, as Goldman works on evening out a gender imbalance within the firm’s upper ranks. Only about 15% of Goldman’s roughly 450 partners are women. Newly minted managing directors gain access to leadership training and Goldman investment funds that have been huge moneymakers for the firm and its top employees. They also can take advantage of Goldman’s private-wealth advisory network. This year’s crop of managing directors includes citizens of nearly 50 countries. One in five started as a Goldman summer intern, and they have spent on average 10 years at the firm. Forty-four percent are millennials. The largest chunk, 130, are in Goldman’s trading arm, where revenue has fallen. Fifty-two work in technology as coders and engineers. Eight come from the firm’s nascent consumer and commercial banking operations. Goldman names managing directors and partners in alternate years. —Liz Hoffman COMERICA Chief Accountant To Take CFO Reins Comerica Inc.’s chief financial officer is retiring and the bank will promote a high-ranking accounting officer to the position, the Dallas-based company said. Muneera Carr, an executive vice president and Comerica’s chief accounting officer, will take over as chief financial officer on Jan. 23. Ms. Carr, 49 years old, will succeed David Duprey. Mr. Duprey became CFO in May 2016 after nine years as an executive vice president and general auditor. Mr. Duprey, 60, said he has always planned to retire by age 60. When he took the position, he committed to Chief Executive Ralph Babb that he would remain with the company until its overhaul plan was well under way, he said. The program launched last year. Ms. Carr has helped implement various aspects of the cost-cutting program in her current role, the company said. She will be paid a base salary of $500,000, according to a company filing. —Cara Lombardo For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B12 | Thursday, November 9, 2017 THE WALL STREET JOURNAL. * *** MARKETS Bond default insurance holders ask to be paid, saying PdVSA didn’t pay $1.1 billion in time 2.33% 2.32 BY JULIE WERNAU 2.30 9 10 11 noon 1 2 3 Source: Thomson Reuters THE WALL STREET JOURNAL. Treasury Auction Helps Push Up Yields BY SAM GOLDFARB U.S. government bond prices edged lower Wednesday as an auction of CREDIT 10-year notes MARKETS showed there are limits to investors’ recent appetite for Treasurys. The yield on the benchmark 10-year Treasury note settled at 2.325%, compared with 2.309% Tuesday. Yields, which rise when bond prices fall, were stable for much of the morning but ticked higher about an hour before the 1 p.m. auction, suggesting traders needed higher yields to get involved. Volatility in the bond market could be limited by a dearth of economic data. After the earlier selling, the $23 billion auction drew strong demand, but the 10year yield held on to its gains. That ended a four-day streak of yield declines spurred by several factors, including signs that as the Federal Reserve starts to scale back bond purchases, the Treasury Department won’t sell as much long-term debt as some investors had expected. Investors have also grown more skeptical about the chances of Congress passing tax cuts. That has helped boost Treasurys, as tax cuts could prompt more bond issuance and inflation—both negatives for long-term Treasury debt. Investors are “waiting on the tax proposals to see what the details” are, said Larry Milstein, head of government and agency trading at R.W. Pressprich & Co. Wednesday’s sale of 10-year notes followed a $24 billion sale of three-year notes Tuesday. A $15 billion auction of 30-year bonds is on tap Thursday. Yields frequently creep higher heading into auctions but were late to do so this week. Volatility in the bond market could be limited this week by a dearth of economic data. Jobs numbers released Nov. 3 continued to show muted inflation pressures, as average hourly earnings for workers slipped from the previous month. The consumer-price index and retail-sales data are scheduled to be released Nov. 15, marking the next major events on the economic calendar. Despite persistently soft inflation, Federal Reserve officials have strongly signaled that they plan to raise interest rates in December in what would be the third increase of the year. That has softened demand for short-term securities, which are especially sensitive to changes in interest rates. AUCTION RESULTS Here are the results of Wednesday's Treasury auction. All bids are awarded at a single price at the market-clearing yield. Rates are determined by the difference between that price and the face value. 10-YEAR NOTES Applications Accepted bids " noncompetitively " foreign noncompetitively Auction price (rate) Interest rate Bids at clearing yield accepted Cusip number $59,734,467,000 $25,796,784,000 $31,145,600 $0 99.431569 (2.314%) 2.250% 94.01% 9128283F5 The notes, dated Nov. 15, 2017, mature on Nov. 15, 2027. Holders of Venezuelan-bond default insurance are trying to collect, contending that the state-owned oil company failed to make a recent payment. Investors with this insurance, known as a credit-default swap, are making a case that there has been a “failure to pay credit event,” according to a Wednesday filing to the International Swaps and Derivatives Association. ISDA, an organization of participants in the derivatives market, determines if these insurance payments should be made. Firms that sold the CDS contracts could be on the hook for about $250 million if ISDA rules that oil company Petróleos de Venezuela SA missed the Nov. 2 payment and the grace period that ended Tuesday. That would mark the first time during the country’s current economic crisis that investors holding this insurance would get paid because Venezuela missed a debt payment. While bondholders have been bracing for a Venezuelan default for months, there are signs that the cash-strapped government is running out of options. The country has about $142 billion in debt outstanding, according to Moody’s Investors Service. The government has only about $10 billion in reserves, analysts say. Recent U.S. sanctions against Venezuela have made it harder for the government The cost to insure against a Venezuelan default hit a record. Long lines form at a Caracas bus stop. talks. Even if there were a payout in the CDS market, he said he thought bondholders who could push for a widespread default were unlikely to do so if the funds that were due last week arrive in bank accounts Wednesday. If it is determined that PdVSA failed to make its recent bond payment, holders of at least a quarter of those bonds can declare a default and accelerate the bonds, which would trigger cross-default provisions in $28 billion of PdVSA bonds, said Stuart Culverhouse, head of macro and fixed-income research at the specialist frontier and emerging markets investment bank, Exotix Capital. “It is up to holders to decide what to do. It is possible they don’t choose to accelerate,” Mr. Culverhouse said. Off the Charts Surging premiums on credit default swaps on Venezuelan bonds show investors expect a default soon. The cost to insure against a default in the next year as percentage of notional value: 150% 125 PdVSA bonds 100 75 Venezuelan bonds 50 25 0 J F M A M J Source: Bloomberg data via Bulltick Capital Markets J A S O N THE WALL STREET JOURNAL. MICHAEL SHORT/BLOOMBERG NEWS 2.31 to tap outside sources of capital, or even engage in restructuring talks with U.S. investors who might be violating those sanctions by negotiating with the government. Venezuelan President Nicolás Maduro pledged last week to make the principal payment of $1.1 billion to PdVSA bondholders that was due Nov. 2. But some investors and analysts said there is no evidence that the oil company has made that payment, and Mr. Maduro has said he is seeking to restructure the country’s remaining debt. PdVSA and Venezuela’s government didn’t respond to requests for comment. In another sign that investors are worried that Venezuela is edging closer to default, the cost to insure against a debt default in Venezuela rose to an all-time high Wednesday. The credit-default-swap market was indicating a 91.3% probability of default in Venezuela by the end of 2018, compared with a 75% probability last week, according to investment bank Bulltick Capital. “Spikes of this type happen when the market expects a default,” said Juan I. Sosa, cochairman of Portfolio Resources Group Inc. in Miami. “People using this insurance are now so certain that it’s going to happen that they are willing to pay twice as much as they were a week ago.” On Tuesday, more than 200 investors, including large holders of Venezuelan debt, took part in a phone call arranged by Bank of America Merrill Lynch with attorneys to discuss their options, according to a person on the call. One bondholder said the presence of U.S. sanctions is an obstacle to restructuring FEDERICO PARRA/AGENCE FRANCE-PRESSE/GETTY IMAGES Venezuela Debt Battle Heats Up Edging Higher The yield on the 10-year U.S. Treasury note crept up Wednesday after several sessions of declines. Apple is now the first U.S. company to reach a market value of $900 billion after its stock rose 0.8% Wednesday. Customers line up ahead of the iPhone X launch. Earnings Continue to Drive Stocks to Records BY AMRITH RAMKUMAR AND RIVA GOLD Major U.S. stock indexes posted another trifecta of records. Many investors say solid profit growth and a U.S. economy that is WEDNESDAY’S picking up MARKETS s t e a m s h o u l d continue supporting major indexes. “The fundamental backdrop is pretty good,” said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. “Investors are looking beyond any of the potential bumps in the road at this point.” The S&P 500 rose 3.74 points, or 0.1%, to 2594.38 after snapping a five-session winning streak Tuesday. The Dow Jones Industrial Average advanced 6.13 points, or less than 0.1%, to 23563.36 in a seventh straight session of gains, and the Nasdaq Composite climbed 21.34 points, or 0.3%, to 6789.12. Roughly 87% of S&P 500 companies have reported third-quarter results as of Wednesday’s market close, with about three-quarters of them beating earnings expectations, according to FactSet. Per share earnings at the firms have grown by about 6.4% in the third quarter from a year earlier. “That’s a deceleration from what we’ve had, but for 2018, I don’t think people are backing off what we project,” said Jeremy Bryan, a portfolio manager at Gradient Investments. Apple hit another milestone, becoming the first U.S. company ever to reach a market value of $900 billion after the company reported its best quarterly growth in two years Proxy-Process Review Urged BY DAVE MICHAELS NEW YORK—The country’s top securities regulator urged a review of how shareholders weigh in on public companies’ executive pay proposals, board nominees and contentious issues raised by activist investors. Securities and Exchange Commission Chairman Jay Clayton told a New York legal conference Wednesday that retail-investor participation in such elections is so low that it “may be a signal that our proxy process is too cumbersome and needs updating.” Mr. Clayton, who took over the commission in May, said he would seek public input on how to overhaul the proxy-voting system. Mr. Clayton, a political independent, called out one particular weapon in the proxy tool kit: shareholder proposals. Under SEC rules, shareholders who own at least $2,000 worth of company stock can submit corporategovernance proposals for a vote. Stock-exchange operator Nasdaq Inc. and many public companies say that low threshold allows dissident shareholders and critics to impose proposals on the entire investor base. “Shareholder proposals can gain traction and lead to corporate governance changes that better track the long-term interests of Main Street investors,” Mr. Clayton said at the annual Institute on Securities Regulation event. “They also create costs, including out-of-pocket costs and the use of board and management time that otherwise could be devoted to operation of the company itself.” Votes on shareholder proposals are only advisory, yet companies have long resented small shareholders’ ability to draw attention to pet issues. last week. Shares rose $1.43, or 0.8%, to a record high of $176.24 Wednesday. Shares of Snap fell 2.21, or 15%, to 12.91 after its latest results fell short of expectations late Tuesday. Its loss more than tripled, as quarter-overquarter growth in daily active users of social-media app Snapchat was the slowest since the company started reporting the metric. Snap disclosed Wednesday that Chinese tech giant Tencent Holdings bought a 12% stake. Bank shares continued to lag behind, hit by a shrinking gap between short- and longdated bond yields. The S&P 500 financial sector fell 0.6%. Banks earn money on the difference between what they pay on deposits and what they charge to lend money. Earlier, the Stoxx Europe 600 declined less than 0.1%. At midday Thursday, Japan’s Nikkei Stock Average was up almost 2% and topped 23000 for the first time in decades amid continued strong corporate results and a weakening yen. At the same time, Hong Kong’s Hang Seng Index was up 1% and Australia’s S&P ASX 200 was up` 0.4%. Bitcoin Dodges Split That Threatened Surging Price BY PAUL VIGNA Backers of bitcoin appear to have avoided a brewing civil war that could have led to a major split of the digital currency and endangered its heady gains so far this year. The detente pushed bitcoin prices to a record Wednesday of $7,879. Although the price fell back somewhat in trading later in the day, bitcoin is up 656% since the start of this year. On Wednesday, a group of businesses proposing a new version of bitcoin’s software backed off their plans to release it. This software would have roughly doubled the network’s processing capacity, or the number of bitcoin transactions it can handle. It also would have led to the creation of a new kind of bitcoin. The move, meant to increase bitcoin’s attractiveness as a payment system, was opposed by a group of bitcoin’s main software developers. While their opposition began over technical issues, it centered on who would control bitcoin, which was created as a decentralized, autonomous network. 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 Thursday, November 9, 2017 | B13 THE WALL STREET JOURNAL. MARKETS Treasurys Feel Pull of German Gravity Aggressive stimulus Rare Terrain efforts in Europe push The spread between 10-year U.S. and German government bond yields has widened recently... overseas investors to Yield on 10-year U.S. Treasury note German bond U.S., helping cap yields 2.5% BY SAM GOLDFARB AND DANIEL KRUGER The yield on 10-year Treasury notes is falling again, and some analysts are pointing to a familiar nemesis: German debt. For years now, German government bond yields, along with European sovereign yields in general, have exerted a gravitational pull on the Treasury market. Slow postcrisis growth and aggressive monetary stimulus have led to ultralow yields in Europe. That, in turn, has pushed overseas investors to buy U.S. government bonds for the relatively substantial income they offer compared with European sovereign debt, helping cap Treasury yields. This month’s decline in Treasury yields serves as a reminder that it could be difficult to escape that dynamic, investors and analysts say. Low Treasury yields have ripple effects across the U.S. economy. They help bring down borrowing costs for individuals and businesses, tend to weigh on the dollar and help bolster stocks by making them look more attractive to yield-seeking investors. The yield on the 10-year Treasury note settled Wednesday at 2.325%, down from a recent high of 2.452% on Oct. 26. Yields fall when bond prices rise. When the European Central Bank signaled at the end of October that it would continue its bond-buying program deep into next year, German bond yields fell sharply. Treasury yields, however, rose initially as U.S. investors remained focused on the potential for tax cuts and interest-rate in- 2.0 1.5 1.0 0.5 0 –0.5 2016 Yield differential between 10-year Treasury note and 10-year German bond 2.4 percentage points ’17 1.4 ...reﬂecting bets that the Federal Reserve will tighten monetary policy at a faster pace than the European Central Bank... Effective federal-funds rate ...and that Congress could pass tax cuts that would boost U.S. growth and inﬂation. ECB deposit rate Core euro area inﬂation rate 1.25% 2.00% 1.00 1.75 0.75 Core U.S. inﬂation rate 1.50 0.50 1.25 0.25 1.00 0 0.75 –0.25 –0.50 0.50 2010 ’11 ’12 ’13 ’14 At the same time, there have 3% been signs that the eurozone 2 economy is catching up to the U.S. 1 Real GDP growth 0 ’15 U.S. ’16 ’17 2014 ’15 ’14 ’15 ’16 ’17* *Projection Note: Euro area inﬂation excludes food, energy, alcohol and tobacco. U.S. inﬂation from the Personal Consumption Expenditures Index, excluding food and energy Sources: Ryan ALM (U.S. Treasury yield); Thomson Reuters (German bond); Federal Reserve Bank of New York (policy rates); European Central Bank (policy rates); Federal Reserve Bank of St. Louis (U.S. inﬂation); Eurostat (eurozone inﬂation); IMF World Economic Outlook (growth) THE WALL STREET JOURNAL. creases at home. That pushed the gap between the 10-year Treasury yield and 10-year German bond yield above 2 percentage points, rare territory that some see as unsustainable. The spread between the two bonds stayed below 2 percentage points for 27 years until President Donald Trump’s election last November. Even then, its stay above that threshold lasted just several months. On Wednesday, the gap, or spread, between the 10-year Treasury yield and 10-year German bond was down to 1.99 percentage points from 2.05 points on Oct. 27. A widening spread between Treasury yields and German bond yields is always going to be difficult to sustain because “the more the spread widens, the more buying you see coming into our market” from overseas, said Donald Ellenberger, head of multisector strategies at Federated Investors Inc. Mike Swell, co-manager of the Goldman Sachs Strategic Income Fund, said his portfolio profited in recent months from a bet that the gap between Treasury yields and German yields would expand. The fund, however, has un- HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Tencent Finds Surprise Windfall Sound of Music Number of paid subscribers 60 million 40 20 0 Tidal Napster Deezer Tencent Apple Music Spotify THE WALL STREET JOURNAL. Source: Bernstein search-engine company in which Tencent owns a 44% stake, starts trading in New York on Thursday, hoping to raise up to $670 million, including an overallotment option. At the high end of the price range, Sogou would be valued at about $5 billion, or about 70 times its historic earnings, higher than 32 times for China’s market leader Baidu. What else is in Tencent’s sock drawer? Tencent Music Entertainment, its Spotifylike music service, which has more than a 75% share of China’s digital-music market according to Bernstein, could be the next to come to market. Tencent doesn’t break out separate financials for the business, which faces challenges in China, where music piracy is rampant. Still, an IPO to raise funds for more original content such as live music shows could make sense. Similarly, Tencent’s video service could be worth floating. Just like Netflix, Tencent has poured billions into this business to make its own original programming. Having a separate listing for the video unit would create a new funding source for this cash-draining operation. For sure, it seems unlikely Tencent would ever do that for a core business like its phenomenally successful social-media app WeChat. What the China Literature IPO has shown is that Tencent can create billions of dollars of value for itself and other investors simply by floating peripheral businesses—even if they have yet to generate much in terms of earnings. Tencent is betting its magic will work on Snap, whose slowing growth disappointed investors on Tuesday. Hours later, Tencent said it bought 12% of the social-media company. No luck so far: Snap’s shares fell nearly 15% on Wednesday. —Jacky Wong OVERHEARD The price was the highest ever paid for a commercial building, but did the Chinese Communist Party-backed firm that paid $5 billion for the Hong Kong skyscraper known as The Center get ripped off? The iconic office tower famous for a certain superhero’s high altitude acrobatics in “The Dark Knight,” is 80 stories tall according to the Hong Kong Tourism Board. But in reality, it is only 73 stories high. The gap isn’t the result of any dastardly supervillain heist, but is actually related to a quirk of the Chinese language: The number “four” sounds uncomfortably like “death,” leading to skyscrapers across China mysteriously missing their fourth, 14th, and especially 44th floors. Unsurprisingly, renters aren’t eager to pay for a spot on the “death-death” floor. Presumably any party cadres—even accounting for the bracing effect of their newly fortified Red Boat Spirit— won’t be eager to lodge there either. Investors’ Obsession With Growth Leads Only to Tech Investors are demanding growth from companies, and those that don’t deliver are getting hammered. But growth is an increasingly hard achievement these days, so investors are rushing into the one sector that is delivering big numbers: tech. The third quarter was good for U.S. companies, though not as good as the first half of the year. Earnings for companies in the S&P 500 were up 8% from a year earlier, according to the latest Thomson Reuters I/B/E/S estimate. That compared with a gain of 12.3% in the second quarter and of 15.3% in the first. The slowdown was no sur- ’17 Euro area 2013 Email: email@example.com Chinese tech giant Tencent Holdings has just found a company worth billions of dollars in its bottom drawer. The hope for investors is there are more where that came from. Shares of China Literature, an online books company controlled by Tencent, as much as doubled on their first day of trading Wednesday, valuing the company at more than $12 billion. The IPO has drawn a crowd attracted by a relatively rare tech-sector float in Hong Kong and the Tencent brand name. The retail portion of the deal was about 625 times oversubscribed. After the pop, China Literature is valued at about 200 times its expected earnings this year, much higher than Tencent’s already punchy 51 times. That also means Tencent’s 53% stake in the company, to which most analysts hadn’t previously ascribed any value, is now worth about $6.5 billion. Another bonus could be coming soon: Sogou, a ’16 Fading Change in S&P 500 earnings from a year earlier 20% 10 0 –10 2014 ’15 ’16 ’17 Source: Thomson Reuters I/B/E/S prise. The easy comparisons with the beginning of 2016 are over. Rising labor costs, against a backdrop of low inflation that has made it difficult to raise prices, are putting pressure on margins. That leaves tech as the gravity-defying standout. Earnings for technology companies in the S&P 500 were an estimated 23% above their year-earlier level, and over 90% of the companies that have reported so far beat expectations. Tech shares shot higher as a result. S&P 500 tech stocks are up 9.3% this quarter versus a gain of 2.8% for the overall index. The demand for earnings growth and the rush into tech stocks, which defies the belief that all investors are indexing, has left a trail of destruction in its wake. Tech stocks that didn’t deliver were hit, with shares of Juniper Networks down 6.1% and Symantec falling 9.1% after earnings. Onetime IPO darling Snap Inc. was down more than 14% on Wednesday following its disappointing results. Nontech stocks such as Under Armour, down 24% after it reported last week, were hit harder. What is surprising is the shift is hardly visible in the overall market. The S&P 500 barely shook during earnings season. Through Wednesday, the index went 46 consecutive days without a decline of 0.50% or greater, the longest streak since 1968, according to the Dow Jones Market Data Group. The need for growth explains the rise in capital spending among companies this year, as investors changed their preference from the safety of stock buybacks and dividends to earnings growth. There are pluses to that. The economy will probably benefit from companies being a bit less tightfisted, and businesses that sell capital equipment and the like do better when the focus turns to growth. But with interest rates rising, valuations high and an increasingly narrow group of companies able to satisfy investor demands for growth, the concern is what will happen to the overall market when growth really slows. —Justin Lahart wound that trade in recent weeks and would consider betting on a narrower spread if the gap gets any wider. Driving the fund’s original trade was the idea that the U.S. was further along in its economic recovery than Europe, while the Continent remained committed to monetary stimulus, he said. At this point, though, there are signs that the eurozone economy is catching up with the U.S. The eurozone economy, which has had a rockier recovery from the financial crisis than the U.S., is expected to expand 2.1% this year, according to the latest report from the International Monetary Fund, just a shade below the projected U.S. growth rate of 2.2%. Overall, there is “much more convergence versus divergence” among economies, making it risky to hold German government bonds at current prices, Mr. Swell said. Bets on government bonds are hardly free from risk. While inflation has remained persistently below targets set by the ECB and Federal Reserve, both central banks have expressed confidence that prices will rise. The U.S.’s budget deficit could push up rates faster than in Germany, which has a surplus. The Fed could also raise interest rates more aggressively than investors forecast. Rising inflation eats away at the purchasing power of bonds’ fixed returns. Still, NatWest Securities strategists recommend investors sell five-year German debt and buy five-year Treasurys because they say the rise in U.S. yields may have been overdone. Combining a bet on falling Treasury yields with one on rising German yields offers investors a hedge should global bond yields take a collective move higher, said Brian Daingerfield, a NatWest strategist. WSJ.com/Heard A Setback For Online Lenders Lenders should be judged not on how rapidly they grow during good times, but how they perform in periods like today when consumer defaults are ticking up. On that basis, LendingClub looks unprepared and investors are right to be skeptical of the online lender. Following a sales-practices scandal that felled its founder and chief executive last year, LendingClub took a full year to restore trust with investors and return to a growth path. Now, worries about the quality of its loans are sinking the stock again. Shares plunged 16% Wednesday after the company lowered its full-year earnings forecast slightly. LendingClub said loans to certain borrowers at the low end of the prime credit spectrum “are not currently meeting our expectations.” It will limit these loans, which account for around 3% of total loans, and temporarily halt their sale to investors while tightening criteria for these borrowers. LendingClub itself is on the hook for only a small part of the credit losses—it originates credit-card refinancing and other loans and then sells them on to investors. But if losses are higher than expected, loan buyers won’t be happy. Chief Executive Scott Sanborn cited a new environment in which rising consumer indebtedness is leading to credit losses despite a strong economy. The past two years have been a series of disappointments for online players that were supposed to disrupt the lending landscape. Investors are now saying they fear more disappointments to come. —Aaron Back For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. 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