For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com * * * * * * DJIA 23409.47 g 30.23 0.1% NASDAQ 6737.87 g 0.3% STOXX 600 383.86 g 0.6% 10-YR. TREAS. À 6/32 , yield 2.381% OIL $55.70 g $1.06 GOLD $1,281.50 À $4.20 Sessions in Hot Seat, Recalls Discussion of Russia Meeting What’s News U .S. manufacturing has picked up pace over the last 12 months, aided by steady global economic growth and other factors. A1 Venezuelan bonds fell after rating firms declared the nation in default on missed interest payments. B19, B20 Japan’s GDP grew at an annualized pace of 1.4% last quarter, marking its longest growth streak in 16 years. A7 GE lost its spot as the top industrial firm by market value after its share price slid 13% in a two-day fall. B1 Energy shares helped drag down stocks as crude prices fell. The Dow shed 30.23 points to 23409.47. B19 Oil futures tumbled as the IEA cut its demand forecast. U.S. crude fell 1.87%. B19 Nintendo is close to a deal with animation studio Illumination to make a movie based on the “Super Mario Bros.” videogame. B1 World-Wide Senate Republicans attached a provision to their tax overhaul that would repeal the requirement that all Americans have health insurance. A1 Republicans, fearing a Democratic victory in Alabama’s U.S. Senate race, are grasping for ways to derail GOP nominee Moore. A1 Zimbabwe’s military moved to subdue what it called the nation’s “degenerating” political establishment but denied it was ousting Mugabe. A9 Ross defended the administration’s aggressive Nafta strategy, suggesting the U.S. can press Mexico and Canada for big concessions. A6 Trump returned from his Asia trip with a good deal of bonhomie with fellow leaders but few tangible outcomes. A8 The House passed a defense-policy bill that would boost military spending to nearly $700 billion. A3 U.S. Catholic bishops chose a conservative for a key post, signaling resistance to the pope’s vision. A3 Australians endorsed same-sex marriage in a nonbinding national vote. A9 A gunman choosing his targets at random opened fire in a Northern California town, killing at least four. A2 Three UCLA basketball players returned to the U.S. after being detained in China for suspected shoplifting. A8 Property Report..... B8-13 Sports........................ A16 Technology............... B4 The Count.............. A16 U.S. News............. A2-6 Weather................... A16 World News...... A7-11 > s Copyright 2017 Dow Jones & Company. All Rights Reserved ON THE HILL: In a five-hour appearance Tuesday before a House committee in Washington, Attorney General Jeff Sessions said he remembers a 2016 meeting with a Trump campaign adviser in which the aide spoke about contacts with Russians, a contrast to earlier statements. A4 Senate GOP Adds Tax Twist Republicans signal they will try to repeal key Obamacare provision as part of new plan BY STEPHANIE ARMOUR AND RICHARD RUBIN Senate Republicans attached a provision to their tax overhaul that would repeal the requirement that all Americans have health insurance, a new twist in the GOP lawmakers’ efforts to rewrite much of the U.S. tax code. The insurance mandate is a centerpiece of the 2010 Affordable Care Act, also known as Obamacare. Repealing it is a long-sought goal of Republi- cans, who see it as onerous. Moreover, eliminating the mandate could free up federal tax revenue because it would mean fewer households buying insurance and thus fewer applying for federal health-care subsidies or for Medicaid. Republicans plan to use the money freed up by repealing the mandate to direct tax cuts to middle-income households. They want to increase their proposed $1,650 child tax credit to $2,000 per child and lower the tax rates in three brackets, dropping the proposed 22.5%, 25% and 32.5% rates to 22%, 24% and 32%, respectively, according to the proposal, released Tuesday night by the Senate Finance Committee. Those alterations, which the committee will debate Wednesday, will help Republicans show more tangible benefits to families, and the bigger child credit was a priority for some GOP senators. Under the changes announced late Tuesday, all of the individual tax cuts and the tax cuts for pass-through businesses would expire at the end of 2025. That would help Republicans follow the fast-track process they are using, which lets them pass a bill without needing Democratic votes but prevents them from adding to projected budget deficits after 2027. However it opens them to Democratic arguments that they are prioritizing corpora- tions’ permanent cuts over individuals. And Democrats will likely be able to point to significant tax increases for individuals in 2027, compared with what would happen if Congress does nothing now. The updated version of the tax bill also would make more businesses eligible for a new special deduction, double a deduction for teachers’ out-ofpocket expenses and create a tax credit for businesses that offer paid family leave. Including the health-policy change adds a new layer of complexity to an already labyrinthine tax debate. Republicans have been speeding ahead, powered by a political imperative to reach a big ecoPlease see REPEAL page A6 Party Pressures Moore on Senate Bid BY JANET HOOK AND SIOBHAN HUGHES Sessions said he now recalls a 2016 meeting with a Trump campaign adviser at which the aide spoke about contacts with Russians. A4 CONTENTS Business News.. B3,7 Crossword.............. A16 Heard on Street B20 Life & Arts...... A13-15 Markets............ B19-20 Opinion.............. A17-19 ANDREW HARRER/BLOOMBERG NEWS A junk-bond selloff centered in the telecom sector is raising concerns that weakness could spread. B1 Foxconn posted a 39% drop in net profit amid production challenges dogging Apple’s iPhone X. B1 YEN 113.46 BY ANDREW TANGEL AND JOSH ZUMBRUN Total debt held by U.S. households rose to a new high last quarter, the 13th straight quarterly increase. A2 Central bank leaders from the U.S., Europe, Japan and the U.K. defended their crisis-fighting measures. A7 EURO $1.1799 American Industry Picks Up Steam Business & Finance Ex-Pimco CEO El-Erian is one of several candidates being considered to serve as the Fed’s vice chairman. A2 HHHH $4.00 WSJ.com WEDNESDAY, NOVEMBER 15, 2017 ~ VOL. CCLXX NO. 116 Republicans, seeking to head off the first Senate Democratic victory in Alabama in decades, are grasping for ways to derail their nominee, Roy Moore, whose campaign has been engulfed by allegations of sexual misconduct. President Donald Trump spoke on the phone from Vietnam with Senate Majority Leader Mitch McConnell and discussed how to manage the crisis, the senator said. Mr. McConnell, who has been spearheading the effort to block Mr. Moore, said Tuesday he wants Attorney General Jeff Sessions to reclaim the seat. The Republican National Committee cut financial ties to Mr. Moore, and the Alabama GOP is considering an array of options to dislodge Mr. Moore and still hold the seat. Strategists in both parties are reacting to a prospect that appeared remote just a couple of weeks ago: Democratic candidate Doug Jones could win in the reliably Republican state. The nonpartisan Cook Political Report, which had rated the seat solidly in GOP hands, Tuesday declared it a toss-up. Republicans concede that Mr. Jones, a former U.S. attorney, could win as Mr. Moore’s campaign is dogged by nearly a halfdozen reports of sexual assault and misconduct involving teenagers while he was in his 30s. He has denied the allegations. Venezuela’s Golden Generation Is Fleeing Push and Pull Business groups press to protect ‘Dreamers’......... A4 Ross says U.S. has leverage over Nafta....... A6 Doubts emerge on tax plan details........................ A6 GOP, bar association tangle over nominees.... A3 “His campaign is collapsing,” Mr. McConnell said at The Wall Street Journal’s CEO Council on Tuesday. “Obviously, we’re in a discussion here about how to salvage this seat, if possible.” Republicans worry that if Democrats win in Alabama, it would put them one seat closer to winning back the Senate majority, which the now GOP con- Hey, Amazon: Our Town Has Stoplights! i Fate of class of 1994 signals a nation’s decline BY RYAN DUBE CARACAS, Venezuela—The class of 1994 had big dreams upon graduating from the Ceapucv high school, a twostory building tucked into a hillside overlooking this city. Solsire Ortega wanted to run an architecture firm, while Juan David Chacón hoped to become a famous musician. Most of the close-knit class of about 50 students intended to stay in Venezuela, where growing up meant parties on Caribbean beaches, hiking the Ávila mountain range and cheering for the city’s Lions baseball club. The oil-rich country was still a land of opportunity, even though they were coming of age amid the rise of Hugo Chávez and his leftist, antiestablishment movement. In the years after graduation, Venezuela went from one of the region’s oldest democracies to what the U.S. and others now call a dictatorship, from one of Latin America’s richest nations to one of its poorest, and from a place where migrants came searching for opportunity to one many are trying to flee. School ended more than two decades ago, and now about two-thirds of the class has emigrated, according to interviews with the students and former teachers, starting new lives in places like smalltown Texas, Madrid, and Sydney. Please see CLASS page A12 Holders face quandary as default sinks bonds.............. B19 Debt crisis in Venezuela: What’s next?........................... B20 i i Retailer’s hunt for a new site attracts implausible bidders BY LAURA STEVENS Amazon.com Inc. is shopping for a second home, and it has attracted bids from big, urbane suitors such as Boston and Dallas. It also has fielded a proposal from Rockdale, Texas—pop. 5,628. The town, which enjoys a few stoplights and hosts an annual rodeo, has joined forces with the county to tout the charms of an old manufacturing area near town surrounded by livestock ranches. “It’s wide open spaces,” says Please see TOWN page A12 A look at cities vying to be Amazon’s second home....... B4 trols by just 52-48. In the 2018 midterm elections, Democrats need to flip three GOP seats, and so far have identified only two strong prospects, in Arizona and Nevada. The Dec. 12 special election is being held to pick a successor for Mr. Sessions, who held the seat before he was named attorney general. Republican Sen. Luther Strange was appointed to temporarily fill the post, but lost to Mr. Moore in the specialelection primary in September. Republicans fear Mr. Moore is impervious to political pressure, because defiance is a hallmark of his political career. As chief justice of the state Supreme Court, he lost his post twice for bucking court orders to allow Please see MOORE page A4 American manufacturing has picked up pace over the last 12 months thanks to steady global economic growth, a rise in energy and other commodity prices, and increased business confidence. Although progress isn’t being felt by all industries, makers of items ranging from bulldozers to semiconductors to food products are on the upswing as various measures of spending, sentiment and employment have climbed, while stock markets hit record highs. The sector “absolutely has improved relative to where we were a year ago,” said William Strauss, a manufacturing economist at the Federal Reserve Bank of Chicago, who described the growth as modest. Employment numbers point to the overall progress. The U.S. manufacturers have added 156,000 workers since Donald Trump was elected president in November 2016, according to government data. That is a clear turnaround from the loss of 16,000 such jobs during the final year of Barack Obama’s administration, although the recent growth hasn’t surpassed manufacturing payroll increases in 2011 and 2014, when the sector gained more than 200,000 jobs. Also, business investment Please see SHIFT page A10 Total debt held by U.S. households hits new high... A2 Ex-Pimco CEO El-Erian is candidate for Fed post......... A2 Investors Dump Telecom Bonds Yields on junk bonds jumped in November, led by a selloff in debt of telecom companies. B1 Bloomberg Barclays U.S. Corporate High Yield Index (n), telecom component (n) 7.0% 6.5 6.0 5.5 5.0 Aug. Sept. Source: Bloomberg Barclays NHL IS LIVE. SAP HANA helps the NHL bolster fan engagement by delivering 100 years of in-depth stats in a live user experience. So fans feel closer to the ice than ever before. sap.com/NHLlive ® ® Oct. Nov. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Wednesday, November 15, 2017 * *** THE WALL STREET JOURNAL. U.S. NEWS Household Debt Hits a New High Consumer confidence The Mountain of Debt spurs the increase, but Total U.S. household debt hit a new high in the third quarter, the 13th delinquencies on auto straight quarter of growth... $14 trillion loans raise concerns Recession BY BEN LEUBSDORF 12 Delinquency rates have been creeping higher for certain loans in a sign that some Americans are under growing financial stress as the total debt held by U.S. households continues to hit new highs. The Federal Reserve Bank of New York said Tuesday that household debt totaled $12.955 trillion last quarter, up 0.9% from the spring for a 13th straight quarterly increase. That was the most on record, though the figure wasn’t adjusted for inflation or population growth. As a share of U.S. economic output, household debt was about 66% last quarter versus a high of around 87% in 2009. “Overall, the picture looks healthier than it did a decade ago,” according to Adam Slater, lead economist at Oxford Economics. Broad growth in borrowing over the summer months was the latest sign of consumer confidence as the U.S. economy enjoys the lowest unemployment rate in nearly 17 years. After years of deleveraging in the wake of the 2007-09 recession, household debt has risen more than 16% since the spring of 2013. Some 4.9% of debt outstanding was delinquent as of Sept. 30, ticking up from three months earlier. Late-payment rates on the whole remain low, but flows into delinquency have risen in recent years for credit-card and auto debt. One continued concern: The sharp rise in delinquency for auto loans made to subprime borrowers by auto-finance firms, usually via auto makers or dealers. The New York Fed 10 Other Student loans Credit cards Auto loans Home-equity revolving Mortgages 8 6 4 2 0 2003 ’05 ’10 ’15 ...and the share of debt considered seriously delinquent, at least 90 days late, is down since the recession—but now rising for auto loans. 14% Recession 12 Student loans 10 8 Credit cards Other 6 4 Auto loans Total Home-equity revolving Mortgages 2 0 2003 ’10 Source: Federal Reserve Bank of New York said the low overall delinquency figure masks significant deterioration in those loans. The smaller number of subprime auto loans made by banks and credit unions have fared better, “in part reflecting differences in underwriting standards,” said New York Fed economist Wilbert van der Klaauw. But even with its growth in recent years, the volume of auto loans outstanding is dwarfed by housing-related debt, the major form of borrowing by U.S. households. ’15 THE WALL STREET JOURNAL. The size of the subprime auto segment is “not insignificant, but it’s a great deal lower than, say, subprime mortgages were in 2007,” Mr. Slater said, and so “arguably unlikely to create the same kind of losses if it goes very bad.” New York Fed economists wrote on the bank’s website that “although the impact on the larger financial sector may be muted, there are over 23 million consumers who hold subprime auto loans.” In general, many new loans Producer Prices Jump, Signaling More Inflation WASHINGTON—The prices that businesses pay for goods are picking up, a potential precursor to more consumer-price inflation. The producer-price index, a measure of inflation experienced by businesses, increased 2.8% in October from a year earlier, the largest year-overyear increase in more than five years, according to a report released by the Labor Department Tuesday. “If producers see more inflation, then consumers are gonna get it sometime, somewhere in the end,” said Chris Rupkey, chief financial economist at MUFG. “Inflation is starting to rear its ugly head at the producer level.” Increases in the amount that businesses paid for goods and services decelerated from 2012 to 2015 and fell in 2015, as oil prices slumped and the dollar strengthened, making imports cheaper. Now, gas prices are rebounding and the beginning of 2017 saw a weakening dollar, pushing up what businesses last quarter went to households with healthy credit. The median credit score for auto loans originated in the third quarter was 705, and the median credit score for new mortgage borrowers was 760. Mortgages make up more than two-thirds of overall household debt and totaled $8.743 trillion in the third quarter, up $52 billion from the spring. Home-equity lines of credit, meanwhile, fell by $4 billion to $448 billion. Auto loans outstanding pay and potentially decreasing profit margins. This could cause business owners to raise what they charge customers. Excluding the volatile food, energy and trade services categories of the producer-price index, prices increased 2.3% from a year earlier, the fastest yearon-year price increase since the middle of 2014. Multiple aspects of business spending have increased at more rapid rates, including the cost of transporting and warehousing goods. “Costs go up and firms eventually have to recoup those costs with pricing,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “The fact that the economy is strong is allowing firms to get a little more confident with pricing.” The Federal Reserve is closely monitoring inflation as it considers another increase in short-term interest rates by the end of the year. Consumer-price inflation has continued to undershoot the Fed’s targets, with other inflation-related readings coming in weak, despite a tight labor market and strong economic growth, which could pose an obstacle to the Fed’s interest-rate plans. —Sharon Nunn jumped by $23 billion to $1.213 trillion. Auto makers in September and October reported strong sales, partly because Texans, Floridians and others had to replace vehicles damaged by hurricanes. Student loans rose by $13 billion to $1.357 trillion as the fall semester got under way at colleges and universities. Credit-card debt was up by $24 billion to $808 billion. More Americans feel like a million dollars.......................... B18 RICH PEDRONCELLI/ASSOCIATED PRESS U.S. WATCH Two women embrace outside a Northern California school, where a gunman opened fire Tuesday, wounding several people. Four people were killed at other locations. CALIFORNIA PUERTO RICO CONSUMER SAFETY WASHINGTON Gunman Kills Four, Utility Spurned Tries to Enter School Advice on Deal Group Issues List of Toys It Calls Unsafe USPS Reports Loss For 11th Year in Row A gunman choosing his targets at random opened fire in a tiny Northern California town Tuesday, killing four people and wounding at least 10 others, including a student at an elementary school, before police shot him dead, authorities said. The rampage began around 8 a.m. in the community of Rancho Tehama Reserve, about 130 miles north of Sacramento, when the gunman fatally shot a neighbor he had been accused of stabbing in January, Tehama County Assistant Sheriff Phil Johnston said. Shortly afterward, the gunman rammed through the gate of Rancho Tehama Elementary School about 2 miles away and spent about six minutes shooting into the building, striking at least one student, Mr. Johnston said. Surveillance video showed the gunman trying unsuccessfully to enter the school, authorities said. —Associated Press Fidget spinners, a plastic Wonder Woman battle sword and a remote-controlled SpiderMan drone are among the toys topping a consumer safety group’s annual list of worst toys for the holidays. World Against Toys Causing Harm, or WATCH, unveiled the top 10 list Tuesday at a Boston children’s hospital. The nonprofit organization has been releasing the lists for more than four decades. WATCH claims fidget spinners contain small parts that can be a choking hazard, Mattel’s Wonder Woman sword has the potential to cause bluntforce injuries, and Marvel’s Spider-Man drone has multiple rotating blades that can lead to eye and other bodily injuries. The Toy Association, an industry trade group, dismissed the list as “needlessly frightening” to parents because all toys sold in the U.S. meet “rigorous” safety standards. —Associated Press The beleaguered U.S. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health-care obligations even as it predicted another strong holiday season of package deliveries. It pleaded for more freedom Puerto Rico’s power company didn’t follow its lawyers’ advice when it agreed to a $300 million grid-construction contract with Whitefish Energy Holdings LLC, according to documents released by a House committee probing the now-canceled deal. Email communications show at least seven types of contractual protections for the public power monopoly known as Prepa that were recommended by its lawyers or included in draft documents but omitted from an Oct. 17 agreement with Whitefish, according to records from the House Committee on Natural Resources. The emails raise new questions about a contract that is under review by federal criminal investigators and congressional panels. Prepa selected Whitefish—a startup with two employees when Hurricane Maria hit— as the general contractor for repairing the damage without a competitive bidding process. —Andrew Scurria to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. That was better than a $5.6 billion loss in the prior year but was mainly because of fluctuations in interest rates that reduced workers’ compensation expenses. —Associated Press CORRECTIONS AMPLIFICATIONS Cheniere Energy Inc.’s Sabine Pass natural-gas terminal is on the Louisiana side of Sabine Pass, which runs between Louisiana and Texas. A photo caption with an article about naturalgas exports in Tuesday’s Journal Report on Energy incorrectly said the facility is in Texas. The Danish artist Vilhelm Hammershøi was incorrectly referred to as Dutch in a Life & Arts article on Monday about this week’s sales in New York at the major auction houses. A study by the University of California, Davis, found a 6% reduction in the use of public transit by people who use appdriven ride-hailing services. The Numbers column Saturday about traffic congestion incorrectly implied the reduction was for all transit users. 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. Ex-Pimco CEO Is Candidate For Fed Vice Chair BY NICK TIMIRAOS AND KATE DAVIDSON The White House is considering economist Mohamed ElErian as one of several candidates to serve as the Federal Reserve’s vice chairman, according to a person familiar with the matter. The process of selecting the central bank’s No. 2 official began this month after President Donald Trump nominated Fed governor Jerome Powell to succeed Fed Chairwoman Janet Yellen when her term expires next February, and the search was described by people familiar with the process as still in its early stages. Mr. El-Erian, the former chief executive of Pacific Investment Management Co. and a former deputy director of the International Monetary Fund, is one of several candidates under consideration for the vice chair position, and no decisions have been made, according to the person familiar with the matter. The White House has placed a heavy focus on selecting a vice chair with a strong background in monetary policy, this person said. Separately, a Kansas banking regulator is being considered for a seat on the Fed board. Separately, the White House is considering the nomination of a Kansas banking regulator for a seat on the Fed’s board of governors, according to people familiar with the matter. Michelle Bowman was confirmed as the Kansas bank commissioner in January and could be nominated to a spot reserved for a community banker or regulator of community banks. In 2014, Congress reserved one of seven seats on the Fed’s board for a community banker and the position has never been filled. Mr. Trump has an opportunity to reshape the central bank’s policy-making team during his first year in office. The Fed’s powerful seven-member board of governors has three vacancies, including the seat for the vice chairman. He would have a fourth opening to fill if Ms. Yellen leaves the Fed after stepping down as chairwoman. Mr. Trump’s first pick for the board, Randal Quarles, took office in October as Fed vice chairman of supervision. Investors have been hungry for clues about how closely Mr. Trump’s Fed nominees might hew to Ms. Yellen’s policy of slowly raising interest rates from very low levels. Mr. Trump has said he favors low interest rates and wants to see substantial deregulation. Central-bank chiefs defend stimulus..........................................A7 THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: email@example.com By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A3 * * * * U.S. NEWS BALTIMORE—The U.S. Conference of Catholic Bishops chose a conservative archbishop for a key post Tuesday, signaling resistance to Pope Francis’ vision for the church among the U.S. hierarchy. Archbishop Joseph Naumann, of Kansas City, was elected chairman of the committee on Pro-Life Activities. A conservative was elected chairman of the committee on Pro-Life Activities. In a 96-82 vote, he defeated Cardinal Blase Cupich, of Chicago, who is seen as a liberal in the church and a close ally of the pope. The vote breaks a longstanding tradition of the position being held by a cardinal— an unusual lapse of deference in a highly rank-conscious body—and suggests that Catholic leaders in the U.S. remain largely resistant to the changes Pope Francis is trying to bring. Like all the bishops, Archbishop Naumann and Cardinal Cupich are both strong opponents of abortion and euthanasia. Archbishop Naumann said he would keep the committee focused on those two issues. Cardinal Cupich, meanwhile, indicated he would have broadened the committee’s focus to include other issues, like the death penalty, health care and poverty—a list more in line with Pope Francis’ priorities. The cardinal is a clear favorite of Pope Francis, who appointed him archbishop of Chicago in 2014, then named him to the Vatican’s Congregation of Bishops, which helps shape the next generation of the hierarchy. The pope elevated him to the rank of cardinal last year. “It is clear since 2013 that a majority of them [the bishops] sees the message of Francis’ pontificate, esp. on life and marriage, as not adequate for the Catholic Church in the U.S.A.,” Massimo Faggioli, a theologian at Villanova University, said on Twitter after the vote. But the bishops also made protection for immigrants and refugees a theme at their annual meeting here, marking a point of unity between Pope Francis and the U.S. hierarchy. Stephen Schneck, a former director of the Institute for Policy Research and Catholic Studies at the Catholic University of America, said the vote indicated continued resistance to Pope Francis among the U.S. bishops. “This is obviously a break with tradition, in that it’s going to someone who’s not a cardinal,” Mr. Schneck said. A vote by bishops gathering in Baltimore this week suggests U.S. Catholic leaders remain resistant to Pope Francis’ more liberal agenda. “But I think it’s a very accurate picture of where the U.S. episcopacy is in relation to the efforts we see coming from Pope Francis and Rome.” After the vote, Archbishop Naumann acknowledged that it had been “a long time” since anyone other than a cardinal had held the post. “It’s an honor that the bishops chose me,” he said. ©T&CO. 2017 BY IAN LOVETT AND FRANCIS X. ROCCA PATRICK SEMANSKY/ASSOCIATED PRESS Papal Agenda Meets Bishops’ Resistance A TIFFANY HOLIDAY MATT MCCLAIN/THE WASHINGTON POST/GETTY IMAGES House Passes Defense Policy Bill BY BEN KESLING AND PAUL SONNE The ABA said judicial candidates Brett Talley, above, and Steve Grasz, below, were unqualified to serve. GOP, Bar Association Tangle Over Judicial Nominations BY JOE PALAZZOLO The American Bar Association has been a key gatekeeper for the federal courts since it began evaluating judicial nominees in the 1940s, but it is losing influence among Republicans in the U.S. Senate who view it as a liberal group. Tensions between Senate Republicans and the association, the largest organization of lawyers in the nation, have escalated in recent weeks after the ABA pronounced a Nebraska lawyer unfit to serve on the Eighth U.S. Circuit Court of Appeals in St. Louis, citing his “deeply-held social agenda.” “We should completely dispel with the fiction that the American Bar Association is a fair and impartial arbiter of facts,” Sen. Ben Sasse (R., Neb.), said on the floor of the Senate earlier this month. Pamela Bresnahan, chairwoman of the ABA committee that examines federal judicial candidates, is scheduled to testify before the Senate Judiciary Committee Wednesday. Republican senators are expected to interrogate her on the association’s treatment of Steve Grasz, the Eighth Circuit nominee. In a submission to the Senate panel, Mr. Grasz wrote that a member of the evaluation committee that interviewed him repeatedly referred to Republicans and conservatives as “you guys” and asked for Mr. Grasz’s personal views on abortion, the death penalty and adoption by same-sex couples. Mr. Grasz, senior counsel in the Omaha office of Husch Blackwell LLP, wrote that the interviewer pressed him to admit that his personal views would infect his judicial work. The Senate panel could vote on his nomination as soon as Wednesday Ms. Bresnahan declined to comment before her testimony. But in an October statement she said the committee conducted interviews of more than 200 of Mr. Grasz’s peers, many of whom raised concerns about his ability to remain impartial as a judge. For decades, the ABA’s Standing Committee on the Federal Judiciary, the evaluation committee’s formal name, has evaluated judges for their competence, integrity and judicial temperament, issuing Judicial candidate Steve Grasz describes unfair treatment by evaluation committee. grades that range from “well qualified” to “not qualified.” The ratings are meant to help presidents and senators, who may not be familiar with individual judicial candidates, make informed nominations and votes. The association prioritizes legal experience, favoring at least 12 years, and experience trying cases, according to former officials who worked on nominations. Since the administration of former President John F. Kennedy, the committee has rated 37 nominees “not qualified,” including 23 recommended by Democratic presidents and 14 submitted by Republican presidents, an ABA spokesman said. The two most recent Republican presidential administrations ended the ABA’s longtime practice of screening potential judges before the president nominates them. This year, the committee has deemed four nominees submitted by President Donald Trump, a Republican, unqualified to serve, including a 36year-old Justice Department official, Brett Talley, who failed to disclose on his Senate questionnaire that his wife is chief of staff to the top lawyer in the White House. Seven nominees of former President George W. Bush, a Republican, received unqualified ratings. Former President Barack Obama, a Democrat who allowed the organization to review candidates before he nominated them, sent only judges deemed qualified or better by the group to the Senate, according to a former White House lawyer. The Republican-controlled Senate Judiciary Committee has held four confirmation hearings on Mr. Trump’s judicial nominees before the ABA completed its evaluations, which association members have viewed as a snub. Sen. Chuck Grassley (R., Iowa), chairman of the Senate Judiciary Committee, “does not believe that outside groups should influence the schedule of the Judiciary Committee’s official business,” a spokesman said. Sen. Dianne Feinstein (D., Calif.) has criticized the practice, noting that past Republican and Democratic leadership nearly always waited for the ABA to complete its review before holding hearings. WASHINGTON—The House of Representatives overwhelmingly passed an annual defense policy bill on Tuesday, sending a recommendation for a boost in military funding to the Senate for approval before it heads to President Donald Trump for his signature. The National Defense Authorization Act for 2018 designates nearly $700 billion for defense programs, surpassing current budget spending caps established in 2011 and exceeding by $26 billion the amount that Mr. Trump originally sought, though he more recently boosted the number he said he would support. The House passed the measure, known commonly as the NDAA, which had been agreed upon in a House-Senate conference committee, by a vote of 356-70. “Over the last several years, we have seen an increase in threats and a decrease in funding for our military,” said Rep. Mac Thornberry (R., Texas), chairman of the House Committee on Armed Services, in a statement. “This year’s NDAA begins to rebuild our military and to ensure we can defend the American people.” The defense authorization measure, which increases spending on readiness, training and equipment, follows a year of accidents and mishaps, including those involving Marine Corps aircraft and Navy ships. A damning report released earlier this year showed two fatal naval accidents occurred because sailors were poorly trained and overworked. Mr. Thornberry added that Congress needs to ensure the money to pay for these programs is approved as well. Under longstanding procedures, a defense-appropriations measure comes after the authorization bill. “Unless we follow the NDAA with an appropriations bill at the same levels, none of this work can begin,” he said in a statement. “Securing those appropriations must be Congress’s top priority before the year ends.” One of the most-touted policy measures in the bill is a boost in troop pay, fully funding a 2.4% increase in pay and preserving payments to spouses of those who have died on active duty or in retirement. It also boosts funding for missile programs by $4.4 billion. 800 843 3269 CLASSIMA Collection | TIFFANY.COM Starting at $990 GLEIM / Palo Alto, CA / 650.325.3533 EISEMAN / Dallas, TX / 214.369.6100 HAMILTON / Princeton, NJ / 609.683.4200 www.baume-et-mercier.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 A4 | Wednesday, November 15, 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 Flood-Insurance Revamp Advances BY ANDREW ACKERMAN WASHINGTON—The House voted largely along party lines to revamp the federal flood-insurance program, which expires in December and has struggled in recent years to keep pace with record disaster payouts. The measure passed Tuesday with a 237-189 vote, largely with Republicans for it and Democrats against it. The bill includes provisions designed to spur more private-sector participation in the flood-insurance market as well as new penalties for homeowners who The heavy debt load led Congress to cancel $16 billion of the flood program’s debt. repeatedly receive federal insurance payouts for flood damage. The Senate, which must now pass its own overhaul of the program, might not act until next year, according to congressional aides. House Financial Services Committee Chairman Jeb Hensarling (R., Texas), the measure’s primary author, agreed to ease aspects of its provisions in a move aimed at securing support from coastal lawmakers who had balked at what they viewed as unduly onerous restrictions. “It is a bankrupt program that is being funded, regrettably, by a bankrupt nation,” Mr. Hensarling said. At issue is the National Flood Insurance Program, created more than 50 years ago because private insurers were unwilling to risk catastrophic flood losses. The program’s heavy debt load led Congress last month to cancel $16 billion of its debt. It now has about $6 billion to pay claims and roughly $10 billion left that it can borrow from the Treasury Department, according to the Federal Emergency Management Agency, which manages the program. One provision in Tuesday’s House bill, aimed at homes with repeat claims, would bar the program from offering insurance to properties that accrue future claims—meaning claims made after the bill becomes law—in excess of three times the amount of the replacement value of the structure. An earlier version of the legislation included past claims in that calculation. Democrats said the bill would make the program too expensive for low-income policyholders. Robert Moore, a senior policy analyst at the environmental group Natural Resources Defense Council, which is neutral on the legislation, said one of its shortcomings is that it doesn’t do anything to address the cumbersome system in which the program buys out homeowners of properties that repeatedly flood. “It’s inexcusable that the only timely assistance that we offer people is to rebuild, when that’s in nobody’s interest,” he said. —Natalie Andrews contributed to this article. WASHINGTON WIRE CONGRESS Number of properties by ZIP Code President’s Nuclear Authority Scrutinized Northeast states Account for 31% of repetitive loss properties Where repetitive loss properties are located 400 300 200 100 New York 1 Virginia and the Carolinas 7% of properties Houston New Orleans Gulf Coast states 49% of properties Properties by total payout amount As a share of total properties and payout Payouts per property Among all properties Properties with a total payout amount of: Payouts Percentage of all properties Percentage of all payouts $1 million or more 1.7% $750,000 -$1M 1.0% $500,000 -$750,000 2.8% $250,000 -$500,000 16.7% 14.8% 4.2% 8.1% 26.2% 2 811 properties 3 1,045 4 4,058 5 3,304 6 2,109 7 1,344 8 809 9 Less than $250,000 77.8% 46.7% 477 10 332 11 203 12 129 13 90 14 65 15+ Note: Condominiums are counted as a single property. Source: Data provided by the Natural Resources Defense Council via FEMA 204 THE WALL STREET JOURNAL. U.S. senators took a rare look Tuesday at the decades-old presidential authority to launch a nuclear strike, posing questions at a hearing about the process President Donald Trump would follow if he were to order such an attack. Sen. Bob Corker (R., Tenn.), the Senate Foreign Relations Committee chairman and a critic of Mr. Trump, didn’t explicitly criticize the president, a fellow Republican. But after an hour of testimony with little overt reference to Mr. Trump, Sen. Chris Murphy (D., Conn.) said Mr. Trump’s presidency is what has prompted a renewed focus on this issue. “We are concerned that the president of the United States is so unstable, is so volatile, has a decision-making process that is so quixotic, that he might order a nuclear-weapons strike that is wildly out of step with U.S. national security interests,” Mr. Murphy said. The White House didn’t respond to a request to comment. —Felicia Schwartz CYBERSECURITY U.S. Computers Have Russian Software About one-sixth of U.S. agencies found a Russian cybersecurity firm’s software on their computers after the government ordered them to look for the company’s products and remove them. The government said 15% of the 96 agencies that responded found the products on their systems. —Paul Sonne Business Groups Press Efforts to Protect ‘Dreamers’ WASHINGTON—Large U.S. businesses and their lobby groups are redoubling a push for legislation to protect young people brought to the U.S. illegally as children, urging lawmakers to act before the year is out. On Wednesday, executives from about 40 companies travel to Capitol Hill to lobby members of Congress, with some of them bringing along so-called Dreamers who work for them. Also this week, the advocacy group Fwd.us, which is backed by tech companies, is releasing a study on the number of people who would lose their jobs if Congress doesn’t act. Early next month, a group called New American Economy is planning a day of proDreamer events across the country, involving local chambers of commerce and business leaders. The push comes as key Sen- MOORE Continued from Page One gay marriage and to take down a Ten Commandments monument on state property. His Senate campaign has been built around his persona as an anti-establishment outsider. As Mr. McConnell and others spoke openly of blocking him, Mr. Moore sent a message on Twitter: “The good people of Alabama, not the Washington elite who wallow in the swamp, will decide this election! #DitchMitch.” Later, he tweeted: “Mitch McConnell’s days as Majority Leader are coming to an end very soon. The fight has just begun.” Speaking to supporters at a church in Jackson, Ala., on Tuesday night, Mr. Moore portrayed himself as a victim of attacks by the media and both political parties. “I am the only one who can unite Democrats and Republicans,” he joked, “because I seem to be opposed by both of them.” His fate may be shaped by the Alabama Republican Party, which could withdraw its support for his campaign but is powerless to get his name off the ballot. The party’s steering committee may meet later this week to consider the matter, Republicans familiar with the situation said. Among the ideas being discussed: having Mr. Sessions quit the cabinet and reclaim his seat, though it is unclear how exactly that might happen; urging Mr. Strange to quit before ate Republicans work to find a package of immigration measures that can win bipartisan support. A group of GOP senators is close to agreement on a package that includes border security measures along with legalization for a band of young undocumented immigrants who are now protected by the Deferred Action for Childhood Arrivals, or DACA, program. Republicans also favor enforcement aimed at people living illegally inside the country, though they know it will be harder to win Democratic support for those measures. Another question is how many people will be covered by the legislation, with Republicans favoring a group that is more limited than versions preferred by Democrats. In September, President Donald Trump ended the DACA program, established by executive order in the previous administration, which provides work permits along with protection from deportation. Absent congressional action, those benefits will begin to end in March. Some Republicans oppose legislation giving these people legal status as a form of amnesty that will encourage more illegal immigration. Others support it but only if coupled with more enforcement. Democrats are pushing for legislation addressing the matter before the year is out, and hope to force the matter as part of a year-end spending bill, when their votes will be needed. Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, which plans a Wednesday news conference, said their lobbying will be directed at persuading Republicans to approve the protections but also to Democrats. Democrats support a legalization program, he noted, but may need to be pushed to make compromises needed to win GOP support. Protesters this month called on the Senate to pass legislation in support of DACA protections. the Dec. 12 election to create a new vacancy; and letting the election go ahead and risking a loss to Mr. Jones. A Justice Department spokesman declined to comment about the possibility of the attorney general stepping down to return to the Senate. A person close to Mr. Sessions, who spent five hours Tuesday being questioned by the House Judiciary Committee about his contacts ties between Russia and Trump campaign associates during the 2016 presidential election. Mr. Trump has denied any collusion with Moscow, which has said it didn’t meddle in the campaign. Mr. Sessions has recused himself from that probe because of his role as a top supporter and adviser to the Trump campaign. Any successor would likely face calls from Democrats to pledge not to remove Mr. Mueller or interfere in the probe. The GOP’s hands are largely tied because under Alabama election law, it is too late for Mr. Moore’s name to be removed from the ballot. Alabamians have been casting absentee ballots with his name on them since Oct. 18. Terry Lathan, chairman of the Alabama Republican Party, hasn’t responded to requests for comment since the scandal broke. But in a Sunday interview with the Alabama Political Reporter, she issued a warning against GOP officials endorsing a write-in candidate or backing Mr. Jones. “It would be a serious error for any current elected GOP official or candidate to publicly endorse another party’s candidate, an independent, a thirdparty or a write-in candidate in a general election as well,” Ms. Lathan was quoted as saying. “I have heard of no GOP elected official or candidate that is even considering this option.” Even if Mr. Moore wins, GOP leaders worry that having him in the Senate will be a political liability for all Republicans up for re-election in 2018. Mr. McConnell said Tuesday that if Mr. Moore is elected, he would be sworn in but would immediately be subject to an ethics investigation, including testifying under oath, and the option of expelling him would be on the table. That would pave the way for the governor to appoint a new successor, including putting Mr. Sessions back in his old seat. At issue are allegations reported by the Washington Post last week that Mr. Moore, when he was in his early 30s, had initiated relationships with four teenagers—including sexual advances made on one girl who was 14. A fifth woman Monday held a press conference and described a 1977 incident when Mr. Moore allegedly assaulted her in a car when she was 16. Mr. Moore has denied the reported incidents occurred. Democrats had held little hope for the race when Mr. Sessions left because Alabama hasn’t had a Democratic senator since the 1997 retirement of Sen. Howell Heflin. It went for President Donald J. Trump with 62% of the vote in 2016. When Mr. Sessions ran for reelection in 2016, Democrats didn’t field a candidate. Mr. Jones is well known in the civil-rights community for having prosecuted Ku Klux Klan members for the 1963 Birmingham church bombing that killed four girls. He has been endorsed by civil-rights icon Rep. John Lewis (D., Ga.), who campaigned with Mr. Jones last week. —Kristina Peterson and Del Quentin Wilber contributed to this article. ‘His campaign is collapsing,’ Senate GOP leader Mitch McConnell said. with Russian officials during the campaign, said he has been telling friends and associates he isn’t interested in his old job. If Mr. Sessions were to quit as attorney general, it would raise questions about the future of special counsel Robert Mueller’s investigation of alleged SHAWN THEW/EPA/SHUTTERSTOCK BY LAURA MECKLER Sessions Now Recalls Discussion of Russia BY ARUNA VISWANATHA AND BYRON TAU Attorney General Jeff Sessions said Tuesday that he now recalls a 2016 meeting with a Trump campaign adviser at which the aide spoke about contacts with Russians, after earlier saying he knew of no such contacts. Mr. Sessions’ comments, in an appearance before the House Judiciary Committee, highlighted the challenges facing investigators, lawmakers and others in assembling a precise account of the communications between Trump campaign officials and people connected to the Russian government. In a five-hour appearance, Mr. Sessions blamed a turbulent campaign and faulty memory for his failure to recall contacts that two former Trump campaign advisers have disclosed in recent weeks. “None of you had a part in the Trump campaign,” Mr. Sessions told committee members. “And it was a brilliant campaign, I think, in many ways. But it was a form of chaos every day from day one.” Mr. Sessions, a former senator from Alabama, served as a senior adviser to the Trump campaign on national-security issues, and he has been dogged by the continuing investigations into Russian meddling in the 2016 campaign. Russia has denied meddling in the election, and Mr. Trump and his team have said they didn’t collude with the Kremlin. The hearing came weeks after Trump campaign foreignpolicy advisers Carter Page and George Papadopoulos said they had informed Mr. Sessions about contacts with Russians during the campaign. Mr. Sessions has several times testified before the Senate that he was unaware of any contacts. Mr. Papadopoulos, a campaign adviser who pleaded guilty to lying to the Federal Bureau of Investigation, told law-enforcement officials that he was in a March 31, 2016, meeting with Mr. Sessions where he suggested setting up a meeting between Donald Trump and Russian President Vladimir Putin. Separately, Mr. Page testified this month that he told Mr. Sessions at a dinner in the summer of 2016 that he was traveling to Russia, where he gave a speech at a university in Moscow. During that visit, Mr. Page met with Russian Deputy Prime Minister Arkady Dvorkovich. Mr. Sessions said Tuesday that he now remembers the March 2016 meeting. He also said that while he has no reason to doubt Mr. Page’s testimony, he doesn’t recall his presence at the separate dinner. —Del Quentin Wilber contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. The future of wealth since 1818. Wednesday, November 15, 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 A6 | Wednesday, November 15, 2017 * ***** THE WALL STREET JOURNAL. U.S. NEWS U.S. Has Leverage Over Nafta, Ross Says BY JACOB M. SCHLESINGER BEN NELMS/REUTERS WASHINGTON — Commerce Secretary Wilbur Ross defended the Trump administration’s aggressive strategy for renegotiating the North American Free Trade Agreement, suggesting that the U.S. can press Mexico and Canada into making big concessions because they have more to lose if the pact collapses. A U.S. withdrawal “would be devastating to the Mexican economy,” Mr. Ross told The Wall Street Journal CEO Council on Tuesday. “It’s also a bigtime problem for Canada,” he said. He noted that because those countries are more dependent on the U.S. than it is on them, the termination of the 23-year-old pact “would be far more damaging to them than to us.” Mr. Ross said it was likely the two countries would “come to their senses and make a sensible deal.” President Donald Trump has branded Nafta “a disaster,” and threatened to withdraw unless the two countries agree to rewrite the pact. Negotiations on a new Nafta began in August, and a fifth round of talks is slated to open in Mexico City this week. The parties have said they aim to reach a deal by March. The talks hit a snag during the last round, in Washington in October, after the U.S. put forth proposals that would significantly alter the agreement in ways the trading partners have branded unacceptable. A worker checks a load of logs in British Columbia. Ottawa has escalated its fight against declared U.S. tariffs on Canadian timber. Canada Steps Up Lumber Tariff Fight OTTAWA—Canada said it intends to escalate its legal fight against the U.S. Commerce Department’s decision to slap tariffs of roughly 20% or more on Canadian lumber imports. The Canadian government filed a notice to set up a dis- pute-resolution panel under the terms available through North American Free-Trade Agreement. These expert panels have the power to overturn or sustain tariffs imposed by the U.S., Canada or Mexico on goods from one of its Nafta partners. The Trump administration wants to largely repeal the dispute-settlement system in talks to renegotiate Nafta, which restart later this week in Mexico. Canada has repeatedly said it won’t budge on its insistence the panel system remain in place. A spokesman for Canadian Foreign Minister Chrystia Freeland said the U.S. decision to impose duties against Canadian lumber imports is “unfair, unwarranted and deeply troubling.” He added Canada “will forcefully defend” its lumber industry, including through litigation. Tuesday’s development “signals the importance to the Canadian government—and its Nafta negotiators—of keeping the dispute-settlement provisions in the deal,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics in Washington. How to deal with the dispute-resolution panels have emerged as a major flashpoint in Nafta renegotiations. —Paul Vieira Among them: a proposal that would “sunset” the agreement, making it expire after five years unless the parties agreed to renew it, and a plan to increase the requirement for how many cars would need to be made in North America and in the U.S. to qualify for Nafta tariff breaks. Many U.S. business leaders have expressed concern about the effect on their operations if Nafta were to collapse and have disagreed with Mr. Ross’s assertion that the U.S. held significant leverage over Mexico and Canada. They have said those countries have begun seeking trade deals with other countries that could soften the blow from diminished access to the U.S. Michael Froman, who ran trade policy for President Barack Obama, also questioned Mr. Ross’s confidence in U.S. power. “While it’s true that Mexico and Canada are more dependent on us than we are on them, it turns out they have trade politics too,” said Mr. Froman, who was in the audience for Mr. Ross’s remarks. “And there are limits to the degree to which you can push them and still reach an agreement,” he said. During his appearance, Mr. Ross also expressed frustration with the vocal disagreement from American business and lawmakers with the administration’s Nafta negotiation strategy. The longtime investor was asked to compare the process of negotiating business deals with trade deals. “It’s much better to negotiate anything in a conference room than in an open stadium,” Mr. Ross said. “That’s a very big complication.” He explained that “as one special-interest group—agriculture for example—gets nervous, they start screaming and yelling publicly.” Then “Congress people, they start screaming and yelling publicly and that just complicates the negotiations,” he said. “Frankly, it makes the negotiations harder,” he said. Doubts Emerge on Tax Plan Details Ending Mandate Brings Risks to Cost, Coverage BY RICHARD RUBIN REPEAL Continued from Page One nomic-policy goal. So far, in their effort to overhaul the tax code, they have made progress in overcoming internal frictions over deficits, taxes on the wealthy, state and local deductions, child tax credits and business taxation. But they haven’t solved all those challenges yet, and Tuesday’s move adds health care to that list. Senate Majority Leader Mitch McConnell (R., Ky.) said Tuesday that he was confident in the tax bill’s chances. He contrasted it with the effort to repeal the ACA outright earlier this year. “Every meeting I had on health care was like a trip to get a root canal,” he said at The Wall Street Journal’s CEO Council. “Nobody wanted to be there.” BY STEPHANIE ARMOUR Tax-overhaul proposals divide landlords..................................... B18 Republican plans to end the Affordable Care Act’s rule that most people must have health insurance would allow consumers who don’t want coverage to shed it, but it could drive premiums higher for those who keep it. Eliminating the individual mandate would increase the number of people without insurance by four million, according to the nonpartisan Congressional Budget Office, a number that it says would rise to 13 million by 2027. But those who buy private insurance, rather than getting it at work or through a government program, would see their premiums rise by about 10% in most years of the coming decade, the CBO has forecast. The individual mandate requires most people who can afford coverage to have it. Those who decline must pay a fine of 2.5% of household income or $695 a person, whichever is higher. About seven million people in 2016 reported paying a penalty for not having coverage the year before, according to the Internal Revenue Service. The mandate’s goal is to ensure that young, healthy people obtain coverage to help offset the costs of older and sicker consumers. Knocking down the mandate would result in higher premiums because those healthier people would be less likely to purchase insurance if they don’t face a penalty. Democrats and industry groups castigated Senate Republicans for including the re- peal in their tax package. An array of industry groups—including the American Medical Association and America’s Health Insurance Plans, a major insurers’ organization—wrote congressional leaders urging them to keep the mandate. But some House Republicans applauded Senate Republicans’ move after House GOP leaders opted not to include the repeal in their own tax overhaul. “It appears the Senate is keeping its promises,” said the House Republican Study Committee, a conservative group that represents numerous GOP House members. “The House should do the same. Let’s repeal the individual mandate and restart the process of repealing Obamacare.” The inclusion of the mandate will likely be accompanied by a move to advance bipartisan legislation aimed at shoring up the ACA’s fragile individual insurance markets. That legislation would restore payments insurers use for subsidies to low-income consumers. President Donald Trump recently cut off those payments, saying they hadn’t been properly authorized by Congress. Democrats have called for a vote on the bipartisan bill, but GOP leaders have been reluctant to bring it to the floor because Mr. Trump has suggested he wouldn’t back it. Republicans now say they hope to vote on the legislation as a way to diminish any disruption in the individual insurance market sparked by repealing the individual mandate. lose their health insurance or pay higher premiums. House Republicans, who aim to pass their own version of a tax plan Thursday, began the day wary of moving too fast on taxes on their own. Among their worries was that Mr. Trump might criticize their effort, as he did during the health-care fight earlier this year. They also worried about whether Senate Republicans would be able to follow through and pass tax legislation, avoiding a repeat of the tensions that doomed their health-care bill earlier this year. “We just want to know if we’re headed for the same rocks for being the first kid to go to the blackboard to try to spell the word,” said Rep. Mark Amodei (R., Nev.), who has told House Republican leaders that he is still undecided. Still, House leaders said they were confident they would limit defections and pass their own tax bill, which doesn’t address the individual mandate. House Speaker Paul Ryan (R., Wis.) indicated Tuesday evening that the House would wait to see if the Senate can pass a tax bill that repeals the individual mandate. “We didn’t want to complicate tax reform and make it harder than it otherwise would be,” Mr. Ryan said at a Fox News town-hall meeting on taxes Tuesday evening. “I want to support a good tax reform bill in one form or the other here. So I think it’s important we keep the House bill moving,” said Rep. Doug LaMalfa (R., Calif.), who said the tougher vote will be on the final product of a House-Senate agreement. “That’s where the rubber meets the road.” Other differences between the House and Senate linger. For example, the House bill preserves a $10,000 deduction for property taxes; the Senate bill would repeal that, along with deductions for state and local income and sales taxes. Focus in the Senate will now turn to Republicans who may be hesitant to vote for a package that raises the number of people without health coverage. GOP Sens. Susan Collins of Maine and John McCain of Arizona haven’t indicated they would oppose the tax bill over the individual mandate. Both voted against the final Senate effort to dismantle the ACA in late July, along with Sen. Lisa Murkowski (R., Alaska). “My concern is that if we combine the health-care issues with tax reform, we make it far more controversial,” Ms. Collins told reporters Tuesday. Mr. McCain said he needed to evaluate repealing the individual mandate as part of the broader tax bill. WIN MCNAMEE/GETTY IMAGES WASHINGTON—Lawmakers and tax lawyers are raising doubts about a crucial piece of the Senate tax plan that would affect small businesses, partnerships and real-estate developers as the Senate Finance Committee takes up the overhaul this week. The Senate’s plan for taxing so-called pass-through businesses such as partnerships and S corporations departs from the House approach. It features a deduction of 17.4% of income instead of a special 25% rate that only applies to some business income, as in the House bill. A pass-through provision that is too generous to businesses risks busting the $1.5 trillion cap on the size of the tax cut under the GOP tax plan. But an overly restrictive rule could turn business groups against the Republican tax agenda. “Nobody has any idea how this works,” said Victor Fleischer, a tax law professor at the University of San Diego who was, until recently, a Democratic aide to the Senate finance panel. “Nobody knows the answers, and that’s what happens when you try to jam something through on short notice.” Regular corporations pay the corporate tax of up to 35%, and their taxable owners pay a second layer of tax on dividends or capital gains. Passthroughs pay no corporatelevel tax. Instead, profits pass through to owners’ individual returns, where they’re taxed at rates up to 39.6%. Republicans want to cut the At the Senate finance panel, doubts surfaced on how tax changes would affect pass-through firms corporate rate to 20% from 35% and have promised passthroughs rough parity with a rate cut of their own. The framework released by the Trump administration and congressional Republicans in September called for a 25% top rate for pass-through income. Neither the House nor Senate bills truly provide that rate for most income. The House shows a 25% rate, but requires many business owners to report 70% of their pass-through profits as ordinary income, subject to ordinary tax rates as high as 39.6%. That would create a blended top rate of about 35%. Professional service businesses, including lawyers and consultants, wouldn’t get any of their income taxed at the lower rate. The S Corporation Association told its members the Senate bill “falls well short” of promises lawmakers had made. Sen. Ron Johnson (R., Wis.) said Monday he was frustrated by the process and by a result that would leave passthroughs paying higher tax rates than corporations. “We were supposed to leave that competitive balance…in place basically untouched when we made American businesses overall globally more competitive,” he said. “I don’t know what happened along the way, but we’re talking A federal analysis showed repealing the mandate would increase by 13 million the number of people without health insurance by 2027 and increase premiums. It also complicates the economics of health coverage by shrinking the pool of healthy and younger people who are insured, making it harder to pay for those who end up with big health expenses. All that could spook moderate Republicans who balked at earlier attempts to repeal the ACA because it would raise the number of uninsured. The repeal, though, would lower the federal deficit an estimated $318 billion over a decade. Moreover, Republican lawmakers have been pressed by President Donald Trump to knock down the mandate, a requirement that conservatives see as onerous and which the president could weaken through executive action even if GOP lawmakers don’t act. Republican aides cautioned Tuesday that they couldn’t guarantee there were enough votes to pass a tax bill with the health-care provision attached. The Finance Committee aims to finish the bill this week, setting up a vote by the full Senate after Thanksgiving. Republicans pitch the mandate repeal as a tax cut for middleincome households. Democrats panned the move and pointed to Republicans’ insistence on cutting the corporate tax rate to 20%. “The tax bill is going to hit the American people with a health-care double whammy,” said Sen. Ron Wyden (D., Ore.), warning that millions of people would somewhere about 33% to 35% rather than 25%.” The committee’s Republican aides said the GOP may suggest changes soon to the plan. “This will be something they’ll reconcile” between the House and Senate, Treasury Secretary Steven Mnuchin said Monday at The Wall Street Journal’s CEO Council. “In both these cases, what is important is that businesses get the benefit of this and that’s what’s about growth and the economy.” —Siobhan Hughes and Nick Timiraos contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A7 * * WORLD NEWS Central Bankers Defend Stimulus BY TOM FAIRLESS FRANKFURT—The heads of four of the world’s most important central banks defended their sweeping crisis-fighting measures in a rare joint appearance, and discussed how words themselves have become a vital policy tool. The leaders of the Federal Reserve, European Central Bank, Bank of Japan and Bank of England—whose terms all end in the next two years— have relied heavily on verbal communication in recent years as their policy decisions have grown more complex. Janet Yellen’s departure as chair of the Federal Reserve in February will mark the beginning of a long farewell to the group of central bankers who helped steer advanced economies out of the financial-crisis era. The current crop of officials shared a willingness to experiment with unorthodox policies to stimulate their economies, and worked closely together at times. All four have faced political attacks over their actions. Ms. Yellen, who faced criticism from Donald Trump during last year’s election campaign, will be the first Fed chair since the 1970s not to be reappointed. Mr. Trump accused her shortly before the election of “doing political things” by keeping interest rates low. The Fed raised interest rates once last year, despite initially signaling it expected multiple increases. Ms. Yellen defended her track record on Tuesday at the ECB’s Central Bank Communications Conference in Frankfurt, arguing that Fed officials’ interest-rate expectations didn’t amount to a policy decision. “I do think market participants ARMANDO BABANI/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY Chiefs from U.S., Europe, Japan and U.K. say their words have become a policy tool BY KOSAKU NARIOKA From left, Fed Chairwoman Janet Yellen, ECB President Mario Draghi, BOE governor Mark Carney and BOJ governor Haruhiko Kuroda. are looking for greater certainty about the policy path than central banks are willing to provide most of the time.” ECB President Mario Draghi has faced criticism that the ECB’s ultralow interest rates hurt savers and pensioners. Mr. Draghi hit back on Tuesday, arguing that parts of the German media were portraying a “different…reality” to their readers. In a sign of growing confidence that the ECB’s policies are working, the European Union’s executive arm last week revised up its forecast for eurozone growth this year, to 2.2%, which would be the fastest pace in a decade. The Japanese economy is also enjoying its best run of growth in more than a decade, while prices are steadily rising—though at a moderate pace well below the bank’s 2% inflation goal. The Bank of Japan has been at the core of efforts to shake off a cycle of weak inflation and growth. BOJ governor Haruhiko Kuroda defended his track record on Tuesday, including a controversial decision in 2016 to push interest Exports Boost Japanese Economy Bulking Up Germany, Italy Post Economic Growth Central bank balance-sheet assets as percentage of gross domestic product 100 % Japan 75 50 Eurozone 25 U.S. 0 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Sources: Federal Reserve Bank of St. Louis (U.S. and Japan); THE WALL STREET JOURNAL. European Central Bank (assets); Eurostat (GDP) rates below zero. The bank’s “strong commitment did work to some extent,” he said. Mr. Kuroda’s term ends in April 2018. While Prime Minister Shinzo Abe said this month that the choice of BOJ governor was still a “blank slate,” he said he had a high regard for Mr. Kuroda’s abilities and praised the bank for contribut- ing to an improved economy. However, some of Mr. Abe’s advisers are calling for a shake-up candidate. Mr. Kuroda, 73, hasn’t publicly expressed his intentions. He has said a successor could easily continue on the same policy path. Bank of England governor Mark Carney, who is due to FRANKFURT—Germany’s gross domestic product grew 0.8% in the third quarter from the second, the Federal Statistical Office said, and Italy’s economy grew 0.5% in the period, its national statistics institute reported. The eurozone’s biggest and third-biggest economies benefited from increased demand for their exports as the bloc’s $10 trillion economy remained on course for its strongest year since 2007. —Nina Adam step down in June 2019, has faced criticism for his warnings over the economic impact of Britain’s departure from the EU, seen by some U.K. politicians as an overly political intervention. Mr. Carney repeated his call on Tuesday for a “reasonable transition period” that could cushion the impact of Brexit on the U.K. economy. TOKYO—Japan’s economy grew at an annualized pace of 1.4% in the July-September quarter, marking its longest growth streak in 16 years with help from stronger global demand. The growth for the seventh straight quarter is welcome news for Prime Minister Shinzo Abe, who won a new mandate from voters in a national election on Oct. 22 to continue pushing the world’s third-largest economy out of years of economic malaise. Private consumption fell an annualized 1.8% in the quarter, showing his economic policies have yet to rouse consumers. Gross domestic product growth for the three-month period through September was the same as a 1.4% increase expected by economists polled by The Wall Street Journal. The expansion was largely driven by exports, which rose an annualized 6% in the quarter. Since Mr. Abe took office in late 2012, he has been trying to end years of sluggish growth and deflation through his Abenomics policy package, which is aimed at getting the economy into a cycle of rising wages, spending and inflation. Recently, a weaker yen and a stronger economy in key markets such as China and the U.S. have boosted corporate earnings to a record high. Earlier in November, stock prices surged to their highest level in more than a quartercentury. Yet the lack of strong wage growth has been damping consumer spending and preventing the economy from entering fully into the cycle sought by Mr. Abe, economists say. WHAT DO PEOPLE really INVEST IN? You might say “equities” or “ﬁxed income.” But what people really put their money into is what they hope to get out of life. And helping people get there requires an absolute refusal to settle for average. Because we approach investing with a tireless desire to beat the status quo, our clients might just get what they want out of life. Or even more. invesco.com/MoreOutOfLife NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Invesco Distributors, Inc. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Wednesday, November 15, 2017 * **** THE WALL STREET JOURNAL. WORLD NEWS Trump Ends Trip Focused on Personal Ties With few ‘deliverables,’ White House says Asia sojourn was about messaging, groundwork China to Send Envoy To North Korea BY MICHAEL C. BENDER JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES MANILA—At each stop on his 12-day, five-country Asia tour, President Donald Trump emphasized one aspect of his visit above all else: his personal rapport with the heads of state who hosted him. He played golf with Shinzo Abe, complimenting the Japanese prime minister’s accidental tumble into a bunker as graceful. He persuaded South Korean President Moon Jae-in to meet him at the North Korea border, a visit that thick fog forced them to cancel. And he engaged in a favorite pastime—making jibes at the expense of the U.S. press corps—along with Philippine President Rodrigo Duterte. At the end of his stop in Beijing, Mr. Trump beamed while sitting next to Chinese President Xi Jinping as his host played a highlight reel of their time together. Mr. Trump returns to Washington from his first Asia trip with a good deal of bonhomie with his fellow leaders but few tangible outcomes. “This trip will be remembered more for the messages it sent than the policy it pro- President Donald Trump waved Tuesday before boarding Air Force One in Manila at the conclusion of a 12-day trip through Asia. duced,” said Mira RappHooper, a senior fellow at Yale’s Paul Tsai China Center. Commercial deals announced in China were mostly signals of intent, rather than ironclad agreements. New commitments regarding North Korea were verbal and voluntary. Instead of focusing on the trade imbalances that he “dwells on,” as Chief of Staff John Kelly said in Vietnam, Mr. Trump recounted his flourishing relationships with Asia leaders during public re- marks in the trip’s final days. “It was a red carpet like nobody, I think, has probably ever seen,” Mr. Trump said Monday in Manila, summing up his view of the treatment he received in each of the countries he visited. “That really is a sense of respect, perhaps for me a little bit, but really for our country. And I’m very proud of that.” Mr. Kelly said the trip was mostly about messaging, adding that the intent was to lay the groundwork for more di- BEIJING—China will send a special envoy to North Korea this week, according to China’s official Xinhua News Agency. Song Tao, a special envoy of President Xi Jinping, will leave for North Korea on Friday, Xinhua said. It said the visit would include briefings on last month’s Communist Party congress. The announcement comes days after a visit to Beijing by President Donald Trump. The U.S. has repeatedly pushed Beijing to do more to pressure North Korea to slow its development of nuclear weapons, and Mr. Trump did so again during his summit with Mr. Xi in Beijing. It wasn’t clear from the Xinhua report whether Pyongyang’s nuclear program would be on the agenda during Mr. Song’s visit. —Sofia McFarland rect negotiations on trade that will come later, and “of course, North Korea. Looking for allies to help them come to the right decision about their weapons.” One adviser said discussions were already under way for another Trump trip to Asia. Manila Eases the Path for Beijing at Asean Summit TA I WA N CH I N A CHINA’S ‘9-DASH LINE’ MARITIME CLAIM Sou th Chin a Sea Reefs China is building into artiﬁcial islands SPRATLY ISLANDS China, Taiwan, Malaysia, Brunei, Philippines and Vietnam claim sovereignty over all or parts of these scattered islands and reefs. PH I L I PPI N E S V IE T NAM Subi Reef Hughes Reef Gaven Reefs Mischief Reef Fiery Cross Reef Johnson South Reef Cuarteron Reef 300 miles BRUNEI 300 km I N D O N ESI A M A L AYSI A THE WALL STREET JOURNAL. BY BEN OTTO MANILA—Philippine President Rodrigo Duterte concluded an annual meeting of Southeast Asian nations with warm words for China—the neighboring power whose territorial claims have galvanized opposition from some of the region’s smaller nations at past summits. Mr. Duterte wrapped up meetings Tuesday describing China as gracious for agreeing to begin talks on a longawaited code of conduct in the South China Sea. The Philippine president had established after taking office last year that he wouldn’t challenge Chinese expansion in the disputed waters, eliminating a flashpoint that had roiled gatherings of the 10-member Association of Southeast Asian Nations. This year’s Asean summit was the first to be attended by U.S. President Donald Trump. China and the U.S. were among nations that courted Asean members with promises of trade and investment at the two-day summit, which was also attended by Chinese Prime Minister Li Keqiang and leaders from Japan, Canada and other nations. Among declarations at the summit’s conclusion on Tuesday was a commitment to advance negotiations on a freetrade agreement, the Regional Comprehensive Economic Partnership, that includes the 10 Asean nations and six other states, including China. The U.S. under Mr. Trump has continued the Obama administration’s assertion of the right to freely navigate the seas and has stepped up patrols by U.S. warships through the areas China claims. During his Asia trip, Mr. Trump released joint statements with Philippine and Vietnamese leaders opposing militarization in the waters. The South China Sea disputes pit several Asean members against each other and against China, which is for many their chief trading partner. China claims almost 90% of the waters, overlapping with claims of the Philippines, Vietnam, Malaysia, Taiwan and Brunei. “The Philippines opted for a friendlier relationship with China” and that has benefited the entire region, Philippine presidential spokesman Harry Roque said on Monday. China has changed the Philippine president’s softer take on South China Sea alters the balance at gathering. game in the South China Sea in recent years by building and militarizing islands in the strategic waters. Mr. Duterte’s predecessor, Benigno Aquino III, stirred China’s wrath by taking Manila’s claim in the sea to a United Nations-linked tribunal, which concluded just after Mr. Duterte came to office in mid-2016 that there was no basis for China’s sweeping claims. Mr. Duterte decided not to seek enforcement of the tribunal’s finding. In return, he earned pledges of billions of dollars in economic and business deals in Beijing. Mr. Duterte is “doing what China wants all the claimant countries to do: sit down and talk bilaterally,” said Ian Storey of the Singapore-based ISEAS-Yusof Ishak Institute. Mr. Keqiang, the Chinese premier, said on Monday that Beijing was committed to peace and stability in the region and to starting consultations on a code of conduct, something Asean and China agreed to create more than a decade ago but has never become reality. Work between Asean and China toward a code of conduct in the South China Sea is expected to begin in earnest next year, but its utility is in doubt because countries haven’t agreed to make any of its provisions binding. Asian Countries Look Past China, U.S. UCLA Players Arrive HANOI—It’s a neat narrative: America’s inevitable decline means the inexorable rise of China. As Xi Jinping consolidates his power at home and promotes his $1 trillion-plus “Belt and Road” infrastructure program abroad, a “post-American” age dominated by the Middle Kingdom is indeed becoming easier to imagine. But wait. Asian countries have other ideas. When Mr. Xi and Donald Trump joined an annual gathering of Asia-Pacific leaders in Vietnam last week, the most significant drama didn’t star either Chinese or American actors. G alvanized by Japan, the 11 remaining members of the Trans-Pacific Partnership pushed closer to a trade pact that offers a liberal alternative to the Chinese economic model of protected markets and policies favoring state “champions” while also advancing the vision of multilateralism as the Trump administration pushes for one-on-one deals. Agreement for Trans-Pacific Partnership—intend to have their say in the matter. The region has alternatives, even if Mr. Trump’s America drifts off on its own and Mr. Xi decides to launch a new power play. Much of its future will be shaped by coalitions of countries with shared values. T he other big story in Asia over the past week was also substantially written in Shinzo Abe’s Japan—the revival of a democratic “quad” also including India, Australia and the U.S. It conducted its first meeting on Saturday in Manila. Although this looked like a made-in-America initiative—Rex Tillerson, the U.S. secretary of state, floated the idea of a “free and open Indo-Pacific” in a speech last month—it springs from a regional angst about China’s growing assertiveness and the U.S. ability under Mr. Trump to muster a response. Mr. Abe proposed a similar concept—he called it a four-nation “diamond”—just before he took power in a landslide in 2012. Skeptics say of the powershift scenario in which an exhausted and muddled America hands over Asian leadership to a focused and dynamic China that it is off by a wide margin. First of all, the U.S. decline is much exaggerated. In addition, smaller countries have agency, too, a fact that China appears to have belatedly recognized. The one certainty is that regional power is shifting. In relative terms, China is gaining at America’s expense. Predicting how this will end, however, is a fool’s errand: The constellations that will help determine the future are only just emerging. APEC 2017 NATIONAL COMMITTEE/AGENCE FRANCE-PRESSE/GETTY IMAGES CHINA’S WORLD By Andrew Browne Few predicted this outcome. When Mr. Trump pulled out of the TPP on his third full day in the Oval Office, commentators widely declared the most ambitious trade deal in history dead. Many predicted that China, excluded from the laborious, decadelong TPP negotiations, would step in and fill the void with its own regional trade pact. Yet the TPP lives. Last-minute resistance from Canada upset plans to close the deal last week, but its proponents hope for a completion early next year. Its survival challenges the simplistic notion that Pax Americana in Asia will give way to Pax Sinica. What the past week has amply demonstrated is that Japan and other regional players—Australia and New Zealand also strongly back the free-trade arrangement, now rebranded the Comprehensive and Progressive Vietnam’s Tran Dai Quang, left, and Japan’s Shinzo Abe at the APEC summit in Vietnam on Nov. 10. Home From Shanghai BY JAMES T. AREDDY SHANGHAI—Three UCLA basketball players who had been under police investigation for a week in China flew home, hours after President Donald Trump said he had requested assistance on their behalf from his counterpart Xi Jinping. UCLA freshmen LiAngelo Ball, Jalen Hill and Cody Riley departed from Shanghai’s Pudong International Airport late Tuesday on a Delta flight bound for Los Angeles. Their exit came after a week of tension, with the players detained by police in the eastern city of Hangzhou as suspects in an investigation of suspected shoplifting from a Louis Vuitton boutique. In Los Angeles, the players walked out of the Tom Bradley International airport terminal shortly after 6 p.m. local time escorted by a semicircle of airport police. Carrying blue UCLA backpacks, the players alternated hanging their heads and staring up into flashing camera lights from a crowd of reporters, as they struggled past the crowd to get into a black van. They didn’t answer questions shouted out by reporters, including on the terms of their departure from China, keeping complete silence from inside the terminal all the way into the van. Anticipating a crowd at their arrival, airport security rerouted the players from the usual exits at the arrivals terminal to another one at departures, and stationed two airport police cars and a police van on the street for crowd patrol. Ending his trip to Asia on Tuesday, Mr. Trump told reporters aboard Air Force One that in recent days he asked the Chinese president for help. Mr. Trump called the incident unfortunate but said he had had “a great conversation” about the players with China’s leader and hoped they would be leaving soon. “President Xi has been terrific on that subject,” he said. The shoplifting investigation drew outsize attention because the players are high profile, especially Mr. Ball, who comes from a prominent sports family with a brother in the National Basketball Association and a media-hungry father, and news of their troubles broke hours before Mr. Xi welcomed Mr. Trump on his first presidential visit to China. In China, UCLA was the guest of Alibaba Group Holding Ltd. as part of a massive marketing campaign, which included a U.S. college-basketball game on Saturday that was to be the three freshmen’s debut for UCLA. After being taken to a police station last Tuesday after a reported theft of sunglasses at the Louis Vuitton boutique in Hangzhou the previous day, the trio was returned to the team’s hotel hours later. Along with a few UCLA staff members, they spent the rest of the week nestled in a set of corner rooms on a VIP floor of the Hyatt Regency Hangzhou. They checked out on Monday, a person with knowledge of the situation said. The players will answer questions on Wednesday at UCLA, the university said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A9 * * * * * * WORLD NEWS BY ROB TAYLOR CANBERRA, Australia—Australians endorsed same-sex marriage in a nonbinding national vote, delivering a win for the country’s conservative leader that may yet come at the cost of a rebellion by right-wing lawmakers in his coalition. After a divisive two-month campaign that included a court challenge meant to prevent the ballot, officials on Wednesday announced a 62% to 38% result in favor of such unions, paving the way for a vote in Parliament within days. Conducted by mail, the ballot drew a response rate of nearly 80%. For Prime Minister Malcolm Turnbull, who called for the vote to test public opinion ahead of a parliamentary measure on same-sex marriage he has promised this year, the outcome provides short-term relief from a series of political challenges. He supports changing the marriage laws, but conservative rebels have promised to try to amend or block a bill in Parliament. Zimbabwe’s Military Moves on the Capital Zimbabwe’s military seized control of state television and launched operations to subdue what it called the country’s “degenerating” political estabBy Gabriele Steinhauser in Johannesburg and Bernard Mpofu in Harare, Zimbabwe lishment, even as it denied it was ousting longtime leader President Robert Mugabe. Gunshots were heard early Wednesday near the president’s residence and at least one explosion sounded in the capital, Harare. Armored vehicles drove into Harare late Tuesday, hours after the ruling party accused the head of the military of treason. The moves came just days after Mr. Mugabe, the country’s longtime ruler, fired his powerful vice president. Before the military’s actions, Mr. Mugabe, who is 93 years old, appeared poised to install his 52-year-old wife, Grace, as one of his two deputies and hoist her into a prime position to succeed him. In the early hours of Wednesday, Maj. Gen. Sibusiso Moyo, one of the highest-ranking officers in Zimbabwe’s mil- JEKESAI NJIKIZANA/AGENCE FRANCE-PRESSE/GETTY IMAGES Australians Endorse Same-Sex Marriage Gen. Constantino Chiwenga, right, said Monday that the military wouldn’t hesitate to step in. itary, read a statement on state television denying rumors of a coup. “We wish to make it abundantly clear that this is not a military takeover of government,” Maj. Gen. Moyo said. “What the Zimbabwe Defence Forces is doing is to pacify a degenerating political, social and economic situation in our country.” He said Mr. Mugabe and his family were safe. “Their security is guaranteed. We are only targeting criminals around him who are committing crimes that are causing social and economic suffering in the country in order to bring them to justice,” he said. “Any provocation will be met with an appropriate response,” Maj. Gen. Moyo warned. He ordered all military members who are on leave to return to their barracks. Armored personnel carriers were parked at strategic intersections in the business district and opposite Mr. Mugabe’s offices. The statement was read not long after what sounded like gunshots were heard near Mr. Mugabe’s residence in Harare, according to a nearby resident. The U.S. Embassy in Harare urged Americans in the country to “shelter in place” and ordered embassy staff to work remotely for the day, citing “ongoing political uncertainty.” The prospect of a possible Mugabe dynasty had prompted a threat from the head of Zimbabwe’s armed forces, Gen. Constantino Chiwenga, on Monday that the military would intervene if the purge didn’t come to an end. The ruling ZANU-PF party in a statement Tuesday evening denounced Gen. Chiwenga’s comments as “treasonable conduct” and said it was reaffirming “the primacy of politics over the gun.” But early Wednesday, the state radio station started broadcasting Gen. Chiwenga’s Monday statement in a loop, without any commentary, while the government broadcaster played music videos throughout the night. At stake is the long-anticipated presidential succession in a country once vaunted as the bread basket of Africa that in recent decades has been pounded by a series of economic crises. The standoff comes as the nation was trying to re-engage with global financial institutions such as the World Bank and the International Monetary Fund to overcome its latest bout of hyperinflation. Last week’s surprise removal of Vice President Emmerson Mnangagwa, nicknamed the Crocodile, shocked many Zimbabweans who are unhappy with what they see as erratic behavior and a blatant display of wealth by Mrs. Mugabe and her children. OD HAS RAISED THE BAR. 8 YEARS STRAIGHT. Winning the national Mastio Quality Award is never easy. Winning it eight years in a row is unprecedented. It’s a record that’s seldom repeated—in sports, entertainment or especially in business. This is only possible because of Old Dominion’s twenty-thousand hardworking employees and our thousands of loyal customers. Every day, OD employees deliver the lowest claims ratio and best on-time record in the industry. They continue to keep Old Dominion on top by helping our customers keep their promises. Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identiﬁed herein are the intellectual property of their respective owners. © 2017 Old Dominion Freight Line, Inc., Thomasville, N.C. 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 A10 | Wednesday, November 15, 2017 * * THE WALL STREET JOURNAL. WORLD NEWS U.K. Lawmakers Open Brexit Parley CHRIS J. RATCLIFFE/BLOOMBERG NEWS BY JENNY GROSS Prime Minister Theresa May leaving 10 Downing Street on Tuesday. LONDON—British lawmakers on Tuesday began scrutinizing legislation that would start the process of splitting the U.K. from the European Union, the first of a series of parliamentary tests that will measure Prime Minister Theresa May’s authority over her country’s exit from the bloc. In a sign of the challenges Mrs. May faces, lawmakers were locked in debate over the relatively minor detail of exactly what date and time the U.K. should leave. The hourslong debate was the first of eight sessions for lawmakers to examine the EU Withdrawal Bill, which would enshrine EU law into the U.K. statute book to ease the transition out of the EU. The timing amendment, which will be voted on at a later date, is just one of hundreds to be debated over the coming weeks. Late Tuesday, lawmakers voted against attempts by opposition parties to amend several other aspects of the legislation, including a proposal that would have required the government to get consent from the devolved administrations in Northern Ireland, Scotland and Wales before repealing the legislation that brought the U.K. into the EU. How Mrs. May fares through this process will signal her ability to recover from a period of political turmoil in London, after a summer election gamble in which she lost her parliamentary majority and after she weathered two high-profile resignations by cabinet ministers. A number of lawmakers said that setting in law that the U.K. will leave the EU at 11 p.m. on March 29, 2019, could tie the government’s hands if negotiations go down to the wire. Dominic Grieve, a senior Conservative lawmaker, pledged to vote against the government on the issue, calling the amendment “mad.” “What it does is to fetter the government’s own ability to carry out this negotiation,” he said. The government said it wants the exit day enshrined into law to remove any doubt about when the U.K. is leaving the EU. The EU Withdrawal Bill, which would transpose more than 10,000 EU laws into U.K. law once Britain leaves the EU, has also come under broader criticism from some lawmakers who say it gives the prime minister too much power to alter laws without parliamentary approval. As part of leaving the EU, the government will have to decide whether to keep, amend or repeal a host of EU laws that the U.K. will no longer be obligated to apply. Significant amendments to come in later debates include attempts to give Parliament greater say over the final Brexit deal and to ensure that the European Court of Justice will continue to have jurisdiction during the two-year transitional period after the U.K.’s planned exit. —Jason Douglas contributed to this article. tion, observers and business leaders say. Early in his term, Mr. Trump promised to punish American companies that shift production abroad, but such penalties haven’t materialized. A big item, the overhaul of U.S. taxes, is being debated in Congress. But a $1 trillion infrastructure plan hasn’t panned out. Nor has repeal of the Obama-era health-care law. “We believe the lack of progress over key elements of federal policies—specifically health care, tax reform, and infrastructure funding—continues to exert downward pressure on both public and private construction activity,” C. Howard Nye, chief executive of North Carolinabased Martin Marietta Materials Inc. said in an analyst call on earlier this month. Gary Cohn, the president’s top economic adviser, said Tuesday that a plan to overhaul the nation’s infrastructure is “the next thing on our agenda.” Amid general improvement for manufacturing, some industries and companies have posted gains while others have continued to struggle. The performance of America’s largest manufacturing companies also has been mixed. Of the 10 largest industrial companies in the S&P 500, only Caterpillar, Honeywell Inc. and 3M Co. recorded higher thirdquarter profit and earnings per share compared with a year earlier, according to data from Thomson Reuters I/B/E/S. Profit and earnings per share declined at General Electric Co., Boeing Co., United Technologies Corp., Lockheed Martin Corp. and General Dynamics Corp. Two companies—United Parcel Service Inc. and Union Pacific Corp.—posted a rise in pershare earnings while their overall profit slipped. To be sure, manufacturing growth could slow if the economy tips into recession or if there are disruptions in trade or other geopolitical problems. Also, a weaker dollar—which has boosted exports by making American goods cheaper abroad—could reverse direction. The prime minister is presiding over a Parliament divided on her vision for Brexit. FROM PAGE ONE SHIFT Continued from Page One has risen, a sign companies are spending to increase productivity. In the first quarter, investment in plants climbed a seasonally adjusted annual rate of 14.8%, the highest since early 2014. Investment in equipment climbed 8.8% in the second quarter, the highest in almost two years. A confluence of factors is helping manufacturing, according to Stanley Black & Decker Inc. Chief Executive James Loree, who cited a shrinking wage differential between U.S. and foreign workers and rapid technological advances. In his particular business, “end users love locally made products,” Mr. Loree added in an interview on Tuesday. “Global macroeconomic conditions are solid,” Rockwell Automation Inc. Chief Executive Blake Moret told analysts, citing “strong orders” and optimistic forecasts for global eco- nomic growth and industrial production. Milwaukee-based Rockwell, which sells factory hardware and software to myriad manufacturers around the world, said last week it expects organic sales growth as high as 6.5% in its 2018 fiscal year, with an additional 2.5% boost to its results coming from a weaker dollar. Global energy and commodity prices have rebounded amid growth in many economies around the world. That has boosted sales for Illinois-based manufacturing giant Caterpillar Inc. and other makers of heavy machinery used to extract natural resources. In the process, Caterpillar has increased its domestic workforce by 3,200 from the end of March to 49,700 at the end of September. “The overall environment is more business-friendly and we think that has created some business confidence,” Caterpillar finance chief Brad Halverson said in an interview. Part of the optimism stemmed from the election of a Winners and Losers Changes in manufacturing jobs from October 2016 to September 2017 Sectors with biggest job gains Machinery Fruit/vegetable preservation Lighting Hand tools Fabricated metal Confectionary Iron, steel mills Purchased steel products Mineral products Machine shops 8.8% 7.6 7.1 6.7 5.9 5.8 5.6 4.8 4.6 4.0 Sectors with biggest job losses –9.9% Cut and sew apparel Other apparel Misc. computer, electronic HVAC, refrigeration Fabric mills Motor vehicles Cleaning compounds Textile and fabric ﬁnishing Sawmills Paints, adhesives –7.2 –5.9 –3.5 –3.4 –2.7 –1.9 –1.6 –1.5 –1.4 THE WALL STREET JOURNAL. Source: Bureau of Labor Statistics businessman as president last November and Mr. Trump’s promise of reduced taxes and fewer regulations. The gains have happened even though important parts of Mr. Trump’s manufacturing agenda haven’t come to frui- 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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A11 NY WORLD NEWS U.S. Uses Radio to Fight Muslim Militants Broadcasts set for Central Asia aim to curb Islamic State recruitment in region Outsourcing Terror Foreigners who have fought in either Syria or Iraq for Islamic State, by region Former Soviet Republics Middle East The U.S. government is testing new strategies to counter Islamic State propaganda in Central Asia, a fertile re- cruiting ground for militant groups and birthplace of the suspect who attacked New York last month. A new campaign by the U.S.-funded media outlet Radio Free Europe/Radio Liberty that is intended to dent Islamic State recruitment in Central Asia is set to kick off in January. It will include local language broadcasts featuring repentant foreign fighters, widows, and parents who have lost children in Syria and Iraq. That joins an expanding U.S. Agency for International Development pilot program that aims to give struggling migrant workers alternatives to joining militant groups. Such efforts have taken on fresh urgency following the The Maghreb South, Southeast Asia Balkans North America 0 2,500 *Includes Morocco, Algeria, Tunisia, Libya and Mauritania Source: Devenir Group LLC TIMUR KARPOV/ASSOCIATED PRESS By Jessica Donati in Washington and Nathan Hodge in Tashkent, Uzbekistan Western Europe The building in Tashkent, Uzbekistan, where the suspect in last month’s New York terror attack lived. Oct. 31 attack in New York that killed eight people. The suspect, Sayfullo Saipov, is an immigrant from Tashkent, Uzbekistan, a country that has been a major source of Islamic State recruits. Far from the center of the Arab world, former states of the defunct Soviet Union didn’t used to be big contributors to jihadist movements in the Middle East. But in recent years, migrants from former Soviet republics have been a focal point of Islamic State recruitment in Syria and Iraq, with more than 8,700 joining the group, according to an October report by the Soufan Group, a security-consulting firm headed by a former Federal Bureau of Investigation official. New research indicates that migrant workers from the for- mer Soviet republics are more susceptible to extremist propaganda while working in Russia, where they often face discrimination, police harassment and social isolation while traveling there to search for work. “It’s not the poorest of the poor who go, but people who are often relatively well off compared to others around them but from an area or group that is marginalized,” 5,000 7,500 10,000 THE WALL STREET JOURNAL. said Noah Tucker, an associate at George Washington University’s Central Asia Program and an editor at RFE/RL who was involved in the research. To be sure, researchers acknowledge the difficulty in proving that attacks are prevented by such programs. But they say it is possible to show an at-risk individual’s increased community engagement, a sign of preventing radicalization. The RFE/RL campaign aims to prevent migrant workers from developing extremist ideas while abroad. The group’s new broadcast project, dubbed “Not in Our Name,” will feature videos of discussion programs with youths about the consequences of joining Islamic State. The USAID pilot program selects migrant workers from the former Soviet republics according to “vulnerability factors” and tries to prevent them from becoming isolated or desperate by providing them with job prospects and access to loans and education to help keep them employed. It is part of the Dignity and Rights program, run by the International Organization for Migration, which aims to support the most vulnerable of the millions of Central Asian migrants who travel to Turkey, Russia and Kazakhstan to find work. The original project started with a focus on about 20 people in 2015 and has expanded to several hundred this year. tutions that aren’t regulated by the federal government, the chief executive of the country’s state-owned mortgage insurer warned in a speech on Tuesday. Canadian consumers are loading up on mortgage debt relative to their incomes and borrowing for longer terms as house prices surge, said Evan Siddall, chief executive of the Canada Mortgage and Housing Corp. Loan-to-income ratios climbed to 296% in 2016 from 271% in 2014, while the number of mortgages that amortize in more than 25 years rose to 63% from 52%, according to CMHC data. That riskier activity is expos- ing lenders to a housing market that many say is experiencing bubble-like conditions, particularly in Vancouver and Toronto. Mr. Siddall said there were “growing risks” in Canada’s housing market, and added that federal regulators have tried to curb risk by demanding that banks raise their mortgage-lending standards—but those rules apply only to federally regulated institutions. Those include Canada’s six largest banks, while credit unions, which are regulated by Canada’s provinces, aren’t subject to the new, tougher standards. —Vipal Monga WORLD WATCH ATTA KENARE/AGENCE FRANCE-PRESSE/GETTY IMAGES MIDDLE EAST EARTHQUAKE A girl looks in a mirror salvaged from a building damaged in Sarpol Zahab, Iran, which was hit hard by Sunday’s earthquake. In Iran, Death Toll Rises to at Least 530 Iran’s state-run news agency said the country’s death toll from the powerful earthquake that struck the Iran-Iraq border has risen to 530. The news service, IRNA, also reported Tuesday the number of injured in the 7.3-magnitude temblor now stood at 7,460. The earthquake, which also caused deaths and damage in Iraq, struck Sunday night local time, just as people were going to bed. The worst damage ap- BE AMBITIOUS @HOFSTRA Graduate business degree options at the Frank G. Zarb School of Business include: • Flex MBA programs • Co-op MBA Program • MBA in Manhattan • Online MBA • Hybrid Executive MBA • Master of Science programs (with various concentrations) • Accelerated One-Year Hybrid MBA v Attend one of our upcoming graduate events to learn more: Graduate Open House Sunday, November 19, 2017 @ 11 a.m. Zarb School of Business Information Session Tuesday, December 5, 2017 @ 6 p.m. Register at hofstra.edu/wall peared to be in the Kurdish town of Sarpol Zahab in the western Iranian province of Kermanshah. Kermanshah, an almost entirely Kurdish province nestled in the Zagros Mountains that run along the border with Iraq, suffered all Iran’s fatalities from the quake. —Associated Press CANADA Lending Risks Rise in Hot Housing Market Mortgage risk is increasing among Canadian financial insti- For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A12 | Wednesday, November 15, 2017 IN DEPTH CLASS Continued from Page One They are among the two million or more Venezuelans who have left the country since 1999, the year Mr. Chávez gained power, according to Tomás Páez, a Venezuelan immigration expert. That exodus is roughly twice the number who fled Cuba in the two decades after the revolution there, and is set to worsen. President Nicolás Maduro, Mr. Chávez ’s successor, is stripping away the country’s last vestiges of democracy, and the economy is in a fullblown collapse that already rivals the U.S. Great Depression. On Monday, Venezuela was ruled in default on a missed interest payment by S&P Global Ratings, pushing the country closer to a reckoning of its $150 billion debt load. Trying to Get Out Cumulative U.S. asylum applications from the top ﬁve countries for the past year* 30,000 applications 25,000 Venezuela 27,601 20,000 China 17,499 15,000 Guatemala 12,858 10,000 Mexico 12,785 5,000 El Salvador 12,447 0 2016 ’17 *For the 12 months ending Aug. 31, 2017 Source: U.S. Citizenship and Immigration Services THE WALL STREET JOURNAL. Many of those who have left are people like the Ceapucv class of 1994—the future bankers, lawyers, economists and doctors whose absence is likely to hamper Venezuela’s economic growth for decades to come. “It’s a big loss,” said Libia Álvarez, the class’s science teacher, who has kept in touch with many of the students. “All of our great professionals are leaving, seeking a better quality of life abroad.” Vanessa Briceño has made a life in Philadelphia, and Edgard Rodriguez in Madrid. Manuela Silva is an architect in Australia, while Julie Bolivar is a doctor in France. This past June, Carolina Gómez, also a doctor, left with her family for McAllen, Texas, a move they decided to make after the government violently put down a protest movement in 2014. “I marched, I cried, I fought. I did everything for my country that I could do,” said Dr. Gómez, who is preparing to practice medicine in the U.S. “But we’re very far from defeating this wickedness.” Those left behind are increasingly frantic to leave. Ricardo Arzola, a sales manager at food conglomerate Empresas Polar SA, has a good job at Venezuela’s most admired company. Salary increases and company perks such as free food have allowed him to weather the economic collapse. But he sees a grim future for his children, ages 7 and 11. He worries about their education after history books were rewritten to champion Mr. Chávez and his Socialist movement while comparing the U.S. to the Third A path near Scarborough, Maine, which submitted a bid to Amazon. says Meghan Stapleton, one of two Anchorage small-business owners who hand-delivered a proposal to Amazon headquarters the day it was due. Even Alaska’s entire population of around 740,000 doesn’t make Amazon’s cut, but the proposers hope the natural beauty and lifestyle are selling points. They say Anchorage has a business-friendly climate and boasts flight times of 9.5 hours or less to 95% of the industrialized world. “We just felt so strongly that Alaska should have a seat at the table,” says Ms. Stapleton. “That table might not ultimately include HQ2. But at least people are being reminded that we are here.” Amazon, which said it wants HQ2 for more room to grow, won’t comment on specific proposals. Holly Sullivan, who is leading its effort, says it appreciates the creativity of many of the ideas: “Cities across North America have shown their ability to think big.” Thinking big for a group of five towns in Massachusetts’ Lower Merrimack Valley meant sending Amazon a large fake diamond ring with the invitation: “let’s get merri’d.” “We know we’re not Boston,” says Town Manager Andrew Maylor of one of the towns, North Andover. “We wanted people to be interested enough to read the package because we believe that we have everything.” Scarborough, Maine, says it ing on being not that far from bigger ones. Hickory, in Catawba County near the foothills of the Appalachian Mountains, has a four-county metro statistical area population of about 350,000. So local officials instead proposed a site closer to its big-city neighbor, Charlotte, about 30 miles away. The area, known for furniture and fiber-optic-cable manufacturing, is pitching a blankslate campus complete with a lake. “If you don’t buy a lottery ticket,” says Scott Millar, president of the Catawba County Economic Development Corp., “you’re definitely not going to win.” Rockdale in Texas composed a combined proposal with Milam County, noting that the population within an hour’sdrive radius brings them to about 2.5 million people. Rockdale hopes to meet the highereducation criterion by dint of being about an hour’s drive from universities in Austin and College Station. It is playing up the ample extra room, pitching Amazon with a proposed site of 33,000 acres, almost two-thirds the size of Seattle. “This is a rare opportunity, the perfect blend of big business and the magnificence of nature,” says the narrator in a video produced for the site. “The opportunity to showcase your global reach among the lakes and rolling hills of Central Texas.” Leaders of Boise, Idaho, say they know it doesn’t meet all Amazon’s criteria. Backers sent two one-page letters, anyway. One from the governor suggested Amazon “save us in its cart for later,” says Clark Krause, executive director of the Boise Valley Economic Partnership. “We knew their tolerance level for looking through our stuff would be short.” The area doesn’t have a million people or an international airport. So leaders took the opportunity to tout the area’s strong talent pool and food-industry supply-chain expertise. “It would be crazy not to take this opportunity to get Amazon to look at us,” he says. Mr. Krause says the leaders offered to send Boise’s six-ton Big Idaho Potato—a sculpture that rides on a semi-truck trailer—to Seattle if that would help woo the retailer. Amazon asked them to resubmit the letters in PDF format. No word on the potato. Reich. Mr. Arzola wasn’t ready to leave until now. He thought there was a chance to change his country when he joined antigovernment protests earlier this year in a failed bid to stop Mr. Maduro from creating a super-assembly stacked with government supporters—a kind of tropical Politburo with unchecked power that many here view as the death of democracy. Crackdown A government crackdown left 120 people dead and the opposition in disarray. For Mr. Arzola, that settled his decision to move to Argentina, where he and a few friends started a small business selling cleaning supplies. “Clearly there is no democracy,” he said. “Even though I’m at a really good company, now I have to think about the future of my sons.” Officially called the UCV Professors Association School, Ceapucv was created for the children of academics from the Central University of Venezuela. Here, the sons and daughters of engineering professors, historians and poets studied from kindergarten through high school and were guaranteed acceptance into the university. As middle-class children, they went camping, played soccer and danced to Michael Jackson’s “Thriller.” As teenagers, they smoked and drank at raucous parties, created heavy metal and ska bands, and walked home at night when it was still safe to do so. Some shared a first kiss. To celebrate their graduation, they took a trip to Margarita Island. Today, they remember those days as some of the best of their lives. Born in the late 1970s, they were children when Venezuela’s golden age of prosperity started to unravel. A global oil glut led to a sharp currency devaluation in 1983, known as Black Friday. Six years later, hundreds of people were killed in Caracas when riots broke out after then-President Carlos Andrés Pérez cut gasoline subsidies, an uprising called the “Caracazo” that Mr. Chávez exploited to stage a failed coup in 1992, when most of the classmates were in their third year of high school. Many students came from liberal families concerned with inequality and disgusted with the political elite. But like their parents—some of whom were former urban guerrillas who played Cuban folk music at home—they differed on whether to support Mr. Chávez. After his release from prison in 1994, Mr. Chávez presented himself on television as a charismatic, center-left democrat. He traded his red beret and fatigues for a suit and tie. He pledged to respect press freedom and called Cuba a dictatorship. “I’m not the devil,” a smiling Mr. Chávez said. Solsire Ortega’s family wasn’t buying it, fearing Mr. Chávez was another Latin American strongman. Soon after his election in 1998, Ms. Ortega’s mother sent her younger brother to Florida and arranged for her to move to Mexico and then Spain, ending dreams of running an architecture firm here. Today, Solsire Ortega’s daughter refuses to recognize her Venezuelan nationality, preferring to think of herself as HECTOR NAVARRO (TOP); FABIOLA FERRERO FOR THE WALL STREET JOURNAL (3) Continued from Page One Kara Clore, executive director of the Rockdale Municipal Development District. “They’re not going to have to cram into some little downtown area.” When Seattle-based Amazon said in September it wanted to establish a second North America headquarters—dubbed Amazon HQ2—it set forth a list of preferences: an international airport within 45 minutes, a metro area of more than a million, public-transportation options, universities with software-developer graduates, a strong cultural fit. The company plans to bestow the winning city with a $5 billion investment that may create 50,000 jobs. Among 238 cities, territories and regions that Amazon says applied by the Oct. 19 deadline are plenty that appear to fit the bill. Rockdale is among those that don’t quite—but are trying anyway. Anchorage, Alaska, feels it, too, has something big to offer. “We’re probably the largest place that applied if you look at the footprint of Alaska,” ALAMY TOWN is unclear which of Amazon’s requests are mandatory and which are mere preferences. The coastal resort town of about 19,000 is proposing a harness-race track location. “Yes, there are some huge hurdles, and maybe some of them are insurmountable,” says Town Manager Thomas Hall. “Something of this magnitude, you’ll build it and they’ll come.” The Tulalip Tribes of Washington state applied, hoping to play to Amazon’s desire for an environmentally friendly footprint. Roughly 2,500 members reside on the 22,000-acre reservation, about a 45-minute drive north of Amazon’s Seattle headquarters. The tribes are offering a location in what they say is the first tribally chartered city in the U.S., something they say could help prevent “cubicle fatigue” by locating it among the pines, arbutus, firs and cedars—with autonomous vehicles for transportation. Also, says Michael Greene, a spokesman for the tribes, “one of the big things—the advantage of being a sovereign government—the turnaround for building is much quicker.” Some smaller metro areas such as Hickory, N.C., are bank- Then and now: members of Ceapucv’s class of 1994 on a graduation trip, above, and below from left to right this year, economist Norka Ayala; Héctor Navarro, a computer science professor; and Juan David Chacón, a reggae artist targeted by criminals. Spanish and Mexican. “She’s heard so many terrible things about what is happening in Venezuela,” said Ms. Ortega, who works in tourism in Seville. “We never imagined this.” The chaperone Héctor Navarro’s family was committed to the revolution. His dad, also called Héctor, is remembered by classmates as the friendly chaperone who accompanied them to Margarita Island. Five years later, he left his job as an engineering professor to become Mr. Chávez’s first education minister. The family remained loyal to Mr. Chávez during his 14-year rule. Héctor Jr. joined government marches and supported Mr. Chávez’s social welfare projects in Caracas’s slums. When Mr. Chávez died in 2013, it was like losing a family member, said the younger Mr. Navarro, now a computer science professor at the UCV. Both men quickly became disillusioned with Mr. Maduro, accusing him of being an autocrat destroying his predecessor’s legacy. The super-assembly Mr. Maduro created this summer is in the “worst style of Mussolini and Hitler,” Héctor Sr. said. Like his schoolmates, the younger Mr. Navarro thought about emigrating. He spends nights programming to supplement his $30 a month salary as a professor. On a recent trip to Peru, he returned with deodorant, shampoo and soap, basics in short supply. At Ceapucv, where his son now studies, the school can’t afford food for the cafeteria. When his son grows up, he’d support him if he decided to leave. The regime’s rise upended the friendship of Magaly Henríquez and Paula Sarco Lira, who were close in school and went on to study chemistry together at the UCV. “We became two strangers,” said Ms. Sarco Lira. Ms. Henríquez followed her father into public service, believing in Mr. Chávez’s message to help the poor. She worked at PdVSA’s technology institute, which provided her a scholarship to France. She returned and became the president of the National Center for Chemical Technology, overseeing projects to help Venezuela substitute imports it can no longer afford, including shampoo. These days, Ms. Henríquez remains committed to the embattled Mr. Maduro, calling him a well-intentioned leader hamstrung by the crash in oil prices. “I still believe a lot in what we are trying to do,” said Ms. Henríquez. “I think the easiest solution is to go, to leave your country and to forget that you have a responsibility here.” Ms. Sarco Lira didn’t have much of a choice. She also wanted a career in oil, but after university those plans were stamped out when Mr. Chávez fired almost 20,000 striking oil workers, including her sister, brother-in-law and future husband. After she failed a security clearance for a job at the oil giant on account of those family ties, she found work in the pharmaceutical industry. But it became increasingly difficult to make ends meet. Her father stopped hosting Sunday breakfast as food prices skyrocketed. She went a couple months without being able to buy rice, and was forced to reduce her young daughter’s fruit servings. Then she got a job offer in Madrid. “It was never our plan to leave Venezuela,” said Ms. Sarco Lira, who emigrated in …while inﬂation has skyrocketed… Consumer-price index, change from a year earlier …and the currency is worth less every day. Unofﬁcial exchange rate An Economy in Crisis Venezuela’s GDP has been shrinking since President Nicolás Maduro took ofﬁce… Change in GDP 6% 2,500% Est. 0 bolivar per dollar Est. 10,000 2,000 0 20,000 1,500 –6 30,000 1,000 –12 40,000 500 –18 50,000 0 2011 ’13 ’15 ’17 Scale inverted to show falling bolivar 60,000 2011 ’13 Sources: International Monetary Fund (GDP, inﬂation); DolarToday (currency) ’15 ’17 2011 ’13 ’15 ’17 THE WALL STREET JOURNAL. March. “But you can’t live with that level of stress.” The exodus of the class of ’94 has accelerated under Mr. Maduro. Álvaro Yáñez, who worked at a health services company, found himself waking up at 4 a.m. to join long lines for food. He also took to social media to search for medicine for his diabetic father, a political-science professor who spent his career at the UCV. Fed up, he finally left for Ecuador. Kidnapped Others have suffered first hand from crime so rampant that only 12% of Venezuelans told Gallup they feel safe walking alone at night. Economist Norka Ayala was home with her baby when her husband was kidnapped, driven around Caracas by armed men as the family frantically gathered ransom. He was released, but the couple has stopped going out at night and won’t take their children to public parks. She plans to move to Peru in coming months. Juan David Chacón began singing about crime. A reggae artist with long dreadlocks, he toured Venezuela and abroad. He had his own chilling experience: Armed men stole his vehicle and forced him to sing Bob Marley tunes while they used his dreads to dust their guns. In 2010, he released Rotten Town, a song that called Caracas the “embassy of hell, land of murderers.” Rodrigo Belisario studied chemistry and worked his way up to plant manager at global cement producer Holcim Ltd.’s Venezuela operation before it was nationalized by Mr. Chávez in 2008. Mr. Belisario eventually settled in Virginia, where he has watched his once beloved country fall apart. “We’ve been in this mess such a long time that to get out of it will take two or three generations,” he said. “By that time, we will be dead and my children will have a life here.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A12A NY * * * * GREATER NEW YORK Former N.J. Mayor Sent to Prison Paterson’s Torres gets five years behind bars for using city workers on a private project BY KATE KING BY MARA GAY TARIQ ZEHAWI/THE RECORD/ASSOCIATED PRESS The former mayor of Paterson, N.J., was sentenced to five years in state prison on Tuesday for second-degree conspiracy to commit official misconduct. Jose “Joey” Torres, 59 years old, agreed to resign as mayor of New Jersey’s thirdlargest city when he pleaded guilty in September. Prosecutors say he instructed city employees to perform work at a property leased by his daughter and nephew. Mr. Torres, a Democrat, served as mayor of Paterson from 2002 to 2010 and was elected again in 2014. He is now barred from holding public office or employment in the future in New Jersey. “I’m sorry and embarrassed,” Mr. Torres said at his sentencing before Superior Court Judge Sheila Venable. Mr. Torres’s co-defendants, three former supervisors from the Paterson Department of Public Works, pleaded guilty to third-degree conspiracy charges and were sentenced on Tuesday to three years of probation. They also resigned and are barred from future public employment. Raymond Flood, attorney for former public works super- Former Paterson Mayor Jose ‘Joey’ Torres was handcuffed after sentencing on Tuesday. ‘I’m sorry and embarrassed,’ he told the court. visor Joseph Mania, 51, of Randolph, N.J., said his client is relieved the legal proceedings are over. “It was a sad day for all four defendants,” said Mr. Flood. “With respect to the three workers from the public works, they lost their jobs, they’ll never work again for government agencies in New Jersey. And all they were do- ing is what they were instructed to do by the mayor.” Attorneys for the other defendants, Imad Mowaswes, 53, of Clifton, N.J., and Timothy Hanlon, 31, of Woodland Park, N.J., didn’t immediately return calls for comment. According to prosecutors, Mr. Torres asked city workers to perform renovations, including painting, carpentry and electrical work, at a warehouse where his daughter and nephew were planning to operate a wholesale liquor-distribution business. The workers were paid overtime by the city of Paterson while working at the private facility, prosecutors said. Mr. Torres’s daughter and nephew haven’t been charged. “Joey Torres corruptly used his vast power as mayor of New Jersey’s third-largest city to serve his own selfish ends, when he should have been serving the residents of Paterson,” Attorney General Christopher Porrino said in a statement. Mr. Torres and his co-defendants were ordered to pay $10,000 in restitution, including for the overtime payments. Jury Deadlocked On Ex-Union Boss Jurors in the corruption trial of former city correctionunion leader Norman Seabrook told a federal judge in Manhattan on Tuesday that they were deadlocked. Judge Andrew Carter instructed the panel, which was in its fourth day of deliberations, to return to the jury room and keep trying to reach a unanimous verdict. Jurors did so but later went home for the day without reaching a verdict. This is the second high-profile federal-corruption case in two days in which jurors have said they can’t reach a unanimous verdict. On Monday, Judge William Walls told the jury in a corruption case against U.S. Sen. Bob Menendez in Newark to continue deliberating Tuesday after it said it was deadlocked. Mr. Seabrook is accused of accepting $60,000 in cash in an $820 Salvatore Ferragamo bag in exchange for investing $20 million in union money into a hedge fund operated by his codefendant, Murray Huberfeld. Phil Seelig, a lawyer representing members of the Correction Officers’ Benevolent Association who are suing Mr. Seabrook and union leadership over the hedge-fund investment, said the union was able to reclaim only $1 million of the $20 million put into Platinum Partners. The remaining $19 million is tied up in the fund’s bankruptcy proceedings, Mr. Seelig said. The two defendants, who face up to 40 years in prison if convicted, have pleaded not guilty. Their lawyers have sought to discredit the government’s main witness, former real-estate developer Jona Norman Seabrook, former correction-union leader, outside Manhattan federal courthouse last week. Rechnitz. Mr. Rechnitz testified that he acted as a matchmaker for the two defendants and delivered a $60,000 bribe to Mr. Seabrook. Mr. Rechnitz’s several days on the stand were closely watched in the city, as he testified how he cultivated influence in the New York Po- lice Department and Mayor Bill de Blasio’s office with gifts and campaign contributions. The mayor called Mr. Rechnitz a liar and said his testimony was false. The NYPD declined to comment. Two highranking police officers face federal charges in a case connected to Mr. Rechnitz. Defense lawyers for Messrs. Seabrook and Huberfeld sought to convince jurors that Mr. Rechnitz, who has himself pleaded guilty to fraud and conspiracy, was a manipulative social climber and not to be believed. Deliberations will continue on Wednesday. Jails Budget Soars, as Inmate Population Drops BY ZOLAN KANNO-YOUNGS The New York City Department of Correction’s budget has increased by 44% in the last decade to $1.36 billion despite the inmate population declining to its lowest point in more than 30 years, according to a report issued Wednesday by city Comptroller Scott Stringer. The report showed the department spent $143,130 on each inmate at the 12 city jail complexes in fiscal 2017 compared with $67,565 in fiscal 2007. During that time, the average daily inmate population declined from 13,987 to 9,500—a 34-year-low. “An extraordinary decline in inmates should yield cost-savings and better all-around outcomes—not dramatic spending increases,” Mr. Stringer said. “We’re putting far more money into far fewer inmates.” City officials say that money is being well spent on skill-development programs for inmates designed to help them readjust to society after they are released. A Department of Correction spokesman noted $93 million in funding Mayor Bill de Blasio has invested since fiscal 2016 for such programs and job training. The money also is used to improve safety conditions, the New York City’s public housing authority submitted documentation showing it was in compliance with federal inspection requirements for lead paint even though the agency hadn’t conducted the required inspections in four years, according to a report from the city’s Department of Investigation. The DOI found that the New York City Housing Authority “failed to do critical leadsafety inspections and then falsely certified that they were meeting these legal requirements,” DOI Commissioner Mark G. Peters said in a statement. The DOI recommended that a monitor be appointed to oversee the housing authority. The allegations in the DOI report appear to be based off a probe by federal investigators into health conditions in the city’s public housing and homeless shelters. Jean Weinberg, a spokeswoman for the housing authority, said the agency began addressing these issues more than a year ago in connection with that investigation, which has been conducted by the U.S. At- A report found that the housing agency failed to conduct required lead inspections. STEVE REMICH FOR THE WALL STREET JOURNAL BY THOMAS MACMILLAN Lead Paint Reporting By Housing Authority Is Faulted spokesman said, including surveillance cameras, safety equipment and X-ray machines. But Mr. Stringer’s report showed the number of assault infractions per 1,000 inmates increased from 470 in 2007 to 1,332 in 2017. The number grew even though there were more uniformed correction officials in jails than inmates for a second consecutive year. Natalie Grybauskas, a spokeswoman for the mayor, said the rate of violence is a result of the city’s efforts to divert low-level offenders out of jail. “We’re proud of our success in reducing the jail population, and we’re proud of the reforms that have made Rikers safer for staff and inmates,” she said of the New York City jail complex. Richard Aborn, president of the Citizens Crime Commission, a public-safety policy organization, lauded the increased funding for skills-development programs, but said it should come with a decrease in violence. “No matter what we do or what we spend, Rikers keeps getting worse,” he said. “To me there is one solution, close it fast.” Mr. de Blasio has said his administration’s plan is to close the complex in at least a decade by building new jails throughout the city. torney’s Office for the Southern District of New York. “Since the Housing Authority learned it wasn’t in full compliance with lead-based paint regulations and reporting, it has taken steps to address the underlying issues,” Ms. Weinberg said in a statement. “We owe our residents better, and we’ll take today’s recommendations into careful consideration.” The report found that NYCHA Chair Shola Olatoye was told the housing agency wasn’t in compliance in September 2016. A spokeswoman for New York City Mayor Bill de Blasio, who oversees the housing authority, said “operations executives” were responsible for the lapses. “We believe that is where the responsibility lies, and the housing agency chair is working closely with federal officials to correct this,” said Melissa Grace, the spokeswoman. The DOI report found that the housing agency had failed to conduct lead inspections required by the U.S. Department of Housing and Urban Development, the federal agency that oversees the housing authority, since 2013. Housing authority officials said they informed HUD officials they weren’t in compliance with federal rules during a routine oversight meeting in September 2016. But according to the DOI report, Housing Authority officials then continued to submit paperwork showing they were in compliance until July 2017. Ms. Weinberg said the agency “took immediate steps to develop a plan to address the issues” after the oversight meeting. OYSTER PERPETUAL LADY-DATEJUST 28 rolex oyster perpetual and datejust 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 A12B | Wednesday, November 15, 2017 NY * *** THE WALL STREET JOURNAL. GREATER NEW YORK Enrollment Drops at Many Private New York Colleges BY LESLIE BRODY Many New York private colleges and universities that enroll mostly in-state students saw their numbers of undergraduates drop this fall, in the wake of Gov. Andrew Cuomo’s scholarship push at public institutions. The Commission on Independent Colleges and Universities in New York found that at 30 of the 48 private schools that serve mostly New Yorkers, overall en- rollment of first-time freshman from New York dropped 8% from last year, to 9,935. At these schools, at least 65% of undergraduates hail from in state. The commission, which advocates for these private schools, released the member survey Tuesday. Spokeswoman Emily Donohue said it wasn’t clear how much the enrollment declines could be attributed to the state’s new Excelsior Scholarship for public institutions, in addition to other demographic trends, but her group worried the program’s toll on independent schools would grow. “We don’t want this to be us versus them,” she said. “This is about making sure students can come to college.” In April, Mr. Cuomo signed a state budget including the Excelsior Scholarship, which lets students in families making up to $100,000 a year enroll in New York’s public colleges tuition-free, starting this fall. The program, which costs taxpayers $87 million this school year for 23,000 recipients, kicks in after students have exhausted other sources of federal and state assistance, and doesn’t cover fees. Abbey Fashouer, a spokeswoman for the governor, said enrollment declines at private colleges stemmed from rising tuition and mounting student debt. “Instead of criticizing the state’s efforts, we encourage these schools to work in partnership with us to make college more affordable for everyone,” she said in an email. This year the state added $3,000 tuition grants for students at private colleges that agree to match these awards, in addition to $400 million yearly in tuition aid through other programs, she said. The commission’s survey found that overall freshman enrollment roughly remained flat, at 55,113, for 80 member schools that responded. Its leaders’ concerns focused on 48 schools that rely mostly on New York students and, by the survey’s count, shed 1,535 jobs during the past year. The governor’s office says enrollment at private campuses was shrinking long before the Excelsior program. Its officials cite state Education Department data that independent colleges and universities had full-time undergraduate head count of about 261,200 in fall of 2016, down from about 272,700 five years earlier. METRO MONEY | By Anne Kadet I wasn’t sure precisely what to expect from the 2017 New York Pest Expo in Fort Lee, N.J. I just knew it was going to be a major, high-energy event, because that’s what Andy Linares, who produces the annual affair, promised when I called to ask if I could attend. “It’s the most significant one-day event in pest management,” said Mr. Linares, citing the size of the crowd, array of exhibitors and lineup of speakers. Mr. Linares, who is president of Bug Off Pest Control Center, an Upper Manhattan training establishment and supplier of pest-control products, promised to keep things lively at last week’s event. “I’ll wake people up if I see them nodding off,” he said. “I’ll stick my finger in their ear. Know what I mean?” When I arrived at the DoubleTree hotel early Friday morning, the ballroom already was packed with the 500 guests who each paid $150 to $200 to attend. I squeezed into a table filled with pest-management professionals includ- ing brothers Frank and Reggie Davis, who own Experienced Exterminators in the Bronx. They said they attend the expo, which launched in 2003, every year to get re-energized. “The industry is underestimated, underrated,” said Frank Davis. “People don’t realize a rodent can go on an aircraft and feed off the wires. People don’t realize how deadly that is.” Alas, the morning’s speakers, who lectured on topics such as “Filth Flies in the Commercial Arena,” and “Ant Management—Choosing the Right Formulation,” proved too technical for me. I slipped out to visit the exhibitors. Products included the latest batterypowered insecticide sprayer, a bed-bug-slaying steamer and a wireless bait station that sends rat alerts to your phone. Anthony Warn, an account executive with WorkWave, based in Holmdel, N.J., was demonstrating PestPac software. A large screen displayed a dizzying array of fever charts and bar graphs tracking everything from appointment cancellations and revenue per customer to callback rate by technician. “It looks more like something CAITLIN OCHS FOR THE WALL STREET JOURNAL Pest Pros Bugged By Lack of Respect Tommaso Garavaglia, right, with Polti North America, demonstrated a machine designed to eliminate bed bugs at an expo last week. you’d see on Wall Street than the office of a pest-control company,” he observed. John Murphy, an industry veteran and district sales manager for rodenticide maker Liphatech, was educating attendees about soft bait. The options, each with a different flavor and toxin profile, include “FirstStrike,” “TakeDown,” and “Resolv.” “I’ve never tasted it,” Mr. Murphy said. “But rodents love it. That’s the key. And my goal is to kill.” The lunch hour included a networking session. Regula- tion was a hot topic. Joel Nolasco, president of the New York Pest Management Association, said the trade group employs a lobbyist to counter government efforts such as a recent attempt to ban rodenticide. “Last year we saw a rat carrying a pizza,” he said, referring to the New York City subway rodent who became a YouTube star. “Can you imagine if you saw five or six of those?” Respect was another theme. The pest-control industry isn’t appreciated, said Michael Joyce, senior account manager with Pest Management Professional magazine. “Without their chemicals and solutions and all the work they do, we’d be surrounded by bugs at all times,” he said. The afternoon’s highlight was a slideshow presented by entomologist Louis Sorkin. He has taken many photos of bed bugs. Bed bugs embedded in smoke alarms. Bed bugs living in a slipper. Bed bugs partying at the IRS. “And here’s bed bugs feeding on my skin!” At day’s end, Mr. Linares sounded a call to arms. “We don’t get the respect we deserve,” he said to a burst of applause. “We don’t get paid what we deserve.” At the cocktail reception, Paul Siegel, who retired from the New York Police Department and is now president of Y2K Bug Inc. in Queens (“From thugs to bugs!”), echoed these sentiments. No one haggles with the electrician or the plumber, he said. But everyone tries to cheap out on pest control. firstname.lastname@example.org GREATER NEW YORK WATCH Suit Filed Over Rents At Kushner Building Tenants of a second building owned by the company of Jared Kushner’s family filed a lawsuit Tuesday concerning rent that they say is illegally inflated. The lawsuit in state Supreme Court in Brooklyn filed by six residents at 18 Sidney Place in Brooklyn alleges that Kushner Cos. is charging much higher freemarket rent, rather than the rentstabilized rate required by law. The Kushner Cos. said it has done nothing wrong. “We’ve reviewed the lawsuit and believe it is without merit and that we have complied with all rent regulations applicable to the apartments,” spokeswoman Christine Taylor said. The case follows a suit filed in August by nine residents of another Kushner building in Brooklyn. Jared Kushner stepped down as CEO of the Kushner Cos. earlier this year before he became a senior adviser to his father-inlaw, President Donald Trump. He still owns both the buildings at the center of the two lawsuits. —Associated Press POLICE-INVOLVED SHOOTING TRAFFIC $2.2 Million Awarded Hit-and-Run Crash In Immigrant’s Death Critically Injures Man A Manhattan federal court jury on Tuesday awarded $2.2 million to the family of an emotionally disturbed immigrant who was fatally shot by police officers when he allegedly lunged at them with a knife. Mohamed Bah, a 28-year-old Guinean immigrant, was shot in his home in 2012. The city strongly disagrees with the verdict and will appeal, a spokesman said. —Associated Press A man was seriously injured in a hit-and-run crash near Union Square in Manhattan, New York City police say. The 34-year-old man was in a crosswalk when he was struck by an SUV that was turning at about 1 a.m. on Tuesday, authorities said. The man was taken to Bellevue Hospital in critical condition, officials said. —Associated Press IMAGINE THE BEST SLEEP OF YOUR LIFE... EVERY NIGHT SOHO | 75 GRAND ST, NEW YORK, NY 10013, 212-219-8022 MADISON | 1100 MADISON AVE, NEW YORK, NY 10028, 212-628-8022 W 18TH STREET | 232 W 18TH ST, NEW YORK, NY 10011, 212-706-0509 GREENWICH | 23 E PUTNAM AVE, GREENWICH, CT 06830, 203-629-8022 58TH STREET | 202 E 58TH ST, NEW YORK, NY 10022, 212-486-8022 HAS T E N S . COM LUCAS JACKSON/REUTERS PROPERTY DANGLING: Two window washers were rescued Tuesday after their scaffold got stuck at the Time Warner Center in Manhattan. 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. MARK MATCHO LIFE&ARTS Wednesday, November 15, 2017 | A13 WORK & FAMILY | By Sue Shellenbarger When Your Job Makes You Queasy As more companies get embroiled in public scandals, innocent employees search for ways to keep up morale IT OFTEN STARTS with an awkward question during a family gathering or cocktail party: How could you work for that company? Is your employer making you queasy? More than a dozen prominent employers have come under attack recently over allegations of sexual misconduct or harassment, abusive sales tactics, lax handling of customer data or inquiries into whether their social-network platforms are used for harm. Employees often are vulnerable to anxiety or even guilt when a shadow is cast on their employer’s image, says Annie McKee, author of “How to Be Happy At Work.” Some wonder, “Why am I here, if this company is doing this thing that I believe is wrong?” There are ways to keep your morale up while working for an employer under fire. It might require separating your own sense of identity from your employer’s image, or looking for new ways to find purpose or meaning on the job. For some, the solution is to head for the exit. Recruiters often see “a flurry of activity when a company’s name hits the headlines,” as employees test their prospects in the job market, says John Reed, senior executive director of technology recruiting at the staffing firm Robert Half in Menlo Park, Calif. Paulina Lopez wanted to work for an employer she could feel proud of, and thought she’d found that at Uber Technologies Inc., Ms. Lopez says. She liked her manager and colleagues at the ride-hailing company, and was treated well. Extended family members raised questions after seeing reports of alleged sexism and sexual harassment in Uber’s executive ranks. “My family was asking, ‘You’re not like that. Why do you want to stay at a place where something like that could happen?’ ” Ms. Lopez says. She considers herself a feminist, and “staying there would have meant going against what I believe in”—not because she’d been treated badly, but because she believed her colleagues had been wronged in ways that might affect her in the future, she says. She parted on good terms with colleagues and moved on to a new job. An Uber spokeswoman declined to comment, but referred to steps the company has taken recently to prevent misconduct, including two internal investigations, numerous changes to improve workplace culture, expanded manager training and formation of a new employee-relations team to address complaints. It’s harder these days for employees to separate their personal identity from their job. “Nothing is hidden anymore” because details of corporate and personal life can be 8 Steps to Take if You’re Embarrassed By Your Employer n Take time to calm feelings of stress or anxiety. n Consider other options before quitting. n Spend more time on job tasks that are meaningful to you. n Find something to love in your company’s mission. n Try to fix some part of the company’s problem that you can control. n Strengthen relationships with people at work you enjoy. n Mentor and encourage subordinates who show promise. n Work on building skills that will help you in the future. shared widely on social media, says Mary C. Gentile. She is the author of “Giving Voice to Values,” a book on acting on your values, and founder of a program by the same name based at the University of Virginia Darden School of Business. Attacks on a company’s ethics cut especially deep for younger employees, who place a higher value on finding purpose and meaning in their work, according to a 2017 survey of nearly 8,000 millennial workers by Deloitte LLP. Many employees stay on the job anyway because they need the paycheck or don’t see better opportunities elsewhere. Others find satisfaction in focusing on personal career goals. Gabby Toro-Rosa took a job at a unit of Uber last year to gain sales experience while waiting for an opening at a public-relations agency where she wanted to work. While the negative publicity made selling Uber’s services a little harder, “I didn’t get worked up about it, because I knew I was doing my job,” she says. Her manager treated her well, and she recently moved on to the job she wanted. Dr. McKee advises figuring out what parts of your work you can control and asking yourself: Is there a way for me to live my values and have a positive impact at the company? One manager she coached was frustrated by his employer’s toxic, disrespectful culture. He resolved to manage his own team differently, and set up processes to treat employees well and reward them for successes, says Dr. McKee, a senior fellow at the University of Pennsylvania. Some employees pitch a new role that doesn’t yet exist, says Christine Bader, author of “The Evolution of a Corporate Idealist,” a book about how to advocate inside companies for social or environmental causes. “If you feel there’s some potential to do good work, then take some time to explore whether you can do that,” says Ms. Bader, a Seattlebased former human-rights policy manager at BP, the oil company. She recently finished a two-year stint at Amazon setting up programs aimed at ensuring fair working conditions among its private-label suppliers. “There’s a shadowy side,” however, Ms. Bader says. “If you take that thinking too far, to the point that you’re rationalizing staying at a place where you truly shouldn’t be, then that’s no good.” Nora Hamada hoped to provide job seekers and employers personalized placement services when she co-founded a recruiting firm years ago. She wanted to invest more time in placing candidates than other recruiting firms did, and to pay more attention to individuals’ needs and goals. She was disappointed when her partners didn’t appear to share her values. “I wasn’t proud of the work we were doing together. The sense of purpose was no longer there,” says Ms. Hamada, of New York. An employee quit after experiencing what Ms. Hamada considered verbal abuse. “It was a nightmare. I was actually getting sick from all the stress. I had to leave the job for my own sanity,” Ms. Hamada says. After two years, she quit and founded her own tech-industry recruiting company, Mirus Search. MUSEUM REVIEW LOUVRE ABU DHABI MELDS EAST AND WEST MOHAMED SOMJI/LOUVRE ABU DHABI BY A. J. GOLDMANN The museum, designed by Jean Nouvel, opened to the public on Saturday and is located on Saadiyat Island. Abu Dhabi ‘SEE HUMANITY in a new light,” runs the slogan of Louvre Abu Dhabi, which opened to the public on Saturday, a full decade after the project was announced by the governments of France and this oilrich capital of the United Arab Emirates. Light is the most arresting feature of Jean Nouvel’s breathtaking museum, a consortium of galleries and administrative buildings laid out like a medina, united under a steel-and-aluminum double dome of intricate latticework. The gentle play of light and shadow inside this great canopy suggests the shade of a date tree. Viewed from the outside, the dome glistens in the noonday sun. At night, it is illuminated from within: a shimmering new monument visible from downtown skyscrapers. Light also sparkles off the water that reaches the steps of the museum, on Saadiyat Island, creating a dazzling Venetian effect in the Persian Gulf. This melding of East and West goes to the heart of Louvre Abu Dhabi, whose aim is to narrate the history and accomplishments of all civilizations, presented as a continuous flow. For this still-young country, it is a bid for cultural relevance in our globalized world. It is also a radical rethinking of the institution of the museum and how it should be organized. Since the 18th century, the modern museum—and the Louvre in Paris can be considered the mother of all museums—has displayed works by discrete time period, artistic school or geographical region. Louvre Abu Dhabi seeks to unite everything that traditional museum practice has cut asunder. Given these goals, it might seem remarkable that the Emiratis have found such willing partners in the French. Then again, money talks. Abu Dhabi has leased the “Louvre” trademark for 30 years and six months for $525 million. When all is said and done, that price will soar to over $1 billion for continuing costs, including expertise and training from 17 French instituPlease see LOUVRE page A15 THE WALL STREET JOURNAL. A14 | Wednesday, November 15, 2017 LIFE & ARTS MY RIDE | By A.J. Baime A Bold Barracuda That’s All Muscle expert, to find out more about it. He asked me to tell him nothing about the car, only some numbers on an identification plate. Two weeks later, he called and said, “Are you sitting down?” I said no. He said, “Maybe you should.” Using the numbers on the identification plate, he was able to tell me all sorts of accurate details—the car’s color, the fact that it was a four-speed and not an automatic, that it had an eight-track tape deck, etc. He knew that the speedometer of this car tops out at 120 mph and that it had no tachometer. Most importantly, he told me that my ve- hicle was the first Plymouth Hemi Cuda street car ever made. The car was only built in 1970 and 1971. I have a document signed by Mr. Govier that says, “This is the very first 1970 Hemi Cuda hardtop built.” [Mr. Govier confirmed this story. A Chrysler representative who examined this document and the car’s title said in an email that “it certainly looks like” Mr. Dodane’s story is true. “I believe it [but] cannot prove it,” he said.] The Plymouth Hemi Barracuda has evolved into an iconic muscle car, highly desired by collectors. The Hemi refers to the 426-cubic inch V-8, a 425-horsepower motor with hemispherical combustion chambers. Very few of these vehicles were built, which means most people have never even seen one, except in pictures. Since I found out about this car’s history over three decades ago, I have driven it about 30 miles, and I keep it at the National Auto & Truck Museum in Auburn, Ind. Someday soon I am going to sell my car, but until then it’s my prize possession. Contact A.J. Baime at Facebook.com/ajbaime. RUTH YAROSLASKI FOR THE WALL STREET JOURNAL Gary Dodane, 70, owner of Karl’s Barber Shop in Fort Wayne, Ind., on his 1970 Plymouth Hemi Barracuda, as told to A.J. Baime. In 1983, I bought a Hemi Cuda for $500. At the time, I did not know much about these cars. They had huge “elephant engines,” but they got terrible gas mileage. Gas prices were surging at the time, so people were dumping these cars. When I bought mine for $500, I thought I was overpaying. I noticed the serial number had a lot of zeros in it, so I contacted a man named Galen Govier of the Chrysler Registry, a well-known Gary Dodane, top, in Fort Wayne, Ind., with his 1970 Plymouth Hemi Barracuda. The car’s 426-cubic inch V-8 engine, rated at 425 horsepower, above center. Its well-cared-for interior, above right. ADVERTISEMENT Showroom To advertise: 800-366-3975 or WSJ.com/classiﬁeds AVIATION BOATING ! !! LUXURY 2018 Lincoln Navigator Reserve L AWD, loaded. Blk/Blk. $5K off list or lease for $1159 mo + tax Nationwide delivery. We offer all current makes & models - for less. Call 7 days. Trades accepted. 877.989.1500 www.LEASEFAX.com LEASE AVIATION ADVERTISE TODAY (800) 366-3975 sales.showroom @wsj.com 5) *+-: $#6 *&,.-;12 # +<4 &4,%. = : ,+-. .4 ,.-.: For more information visit: wsj.com/classifieds 3&+4<&. .,&0.21 . 4+< ,.-. &4 SHOW ROOM !%1 +2 .,, 2.- .73. "#$ %& ' ())*+ &,, -,. '))*+ /.01 +20.33. ())*+ /.01 %%24 $)*+ "#$ /.01 20.2-. 5)*+ +20.33. #( $# + /.01 /+. ))*+ .4,& '")*+ %6+4 ))*+ "#$ ..7 2 /.2+6.. 3 )*+ "#$ ..7 4,&*&3. 55)*+ 4 +0.2 &-+ 7+23 ))*+ .8%- (# #)*+ .8%- '# $#")*+ .8%- 5# 5')*+ &4+,4 +43&4.43, ))*+ &4+,4 0&93+2 ())*+ "#$ .2..- ))*+ "#$.2..-5 ))*+ "#$ .2..- )*+ "#$ .2..- (5$# + .2..- (5 $# + "#$ .2..- (# $"))*+ "#$ +2-/. 4 ())*+ "#$ +2-/. 1.44. '()*+ 49. +0.2 $#)*+ 49. +0.2 7+23 '))*+ DON’T TAKE NEWS AT FACE VALUE. Support news literacy at thenewsliteracyproject.org BY THE TIME TOMORROW’S PAPER COMES OUT, YOUR DONATIONS WILL HAVE HELPED PEOPLE EARN NEW JOBS. DONATE STUFF. CREATE JOBS. © 2017 Dow Jones & Company, Inc. All Rights Reserved. TO FIND YOUR NEAREST DONATION CENTER, GO TO GOODWILL.ORG For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A15 LIFE & ARTS HEALTH AND WELLNESS When the Mirror Doesn’t Reflect Reality Some patients with body dysmorphic disorder think they are hideous; doctors are trying to ‘retrain’ their brains UNHAPPY WITH your nose or chin? Do you think you are fat or that your hair is thinning? When such commonplace concerns spiral into obsessions, they can be a sign of body dysmorphic disorder, a complex psychiatric malady in which sufferers focus on real or misperceived physical flaws. The illness can lead a person to spend hours before the mirror agonizing over minor imperfections. Body dysmorphic disorder affects far more people than anorexia or schizophrenia. Anywhere from one out of 34 to one out of 60 people have some form of the malady, which can afflict individuals who are perfectly attractive, even beautiful. Reality TV star Kim Kardashian, on an episode of ”Keeping Up With the Kardashians” that aired last month, expressed concerns that she might be getting “body dysmorphia.” A representative for Ms. Kardashian declined to comment. Depending on the intensity of their disease, sufferers can think of themselves as deeply unattractive, even hideous, according to Jamie Feusner, a professor of psychiatry at UCLA who has conducted studies on body dysmorphic disorder. While the disorder is serious enough that it can lead to institutionalization or suicide, he worries that so little is known about it, even professional therapists may fail to diagnose it. “It can happen to pretty people, it can happen to people who are average-looking,” Dr. Feusner says. His BDD patients can’t see their own physical beauty, he explains. Indeed, they struggle to see their entire face and fixate instead on their supposed blemishes. Actual physical appearance “has nothing to do with it.” It strikes men and women and can also affect children as young as 7 to 10 years of age, says Fugen Neziroglu, a psychologist who runs GABY D’ALESSANDRO BY LUCETTE LAGNADO the Bio Behavioral Institute, a treatment center in Great Neck, N.Y., that specializes in BDD. Julia, a 21-year-old college student, traveled to New York from Colorado to be treated by Dr. Neziroglu last year. Julia, who asked to be identified by her first name only, said she was obsessed with the size of her forehead and didn’t think there were adequate treatment options nearby for BDD. A local therapist didn’t help much. “I had a lot of shame about my forehead,” Julia says. The obsession, which began in high school, led her to get bangs. Generally, she says, “I felt that I was ugly.” After a month and a half of treatment with Dr. Neziroglu and her team of psychologists, Julia re- turned to college. These days, she is studying psychology and hopes to spread the word about BDD. Traditionally, psychologists and psychiatrists have used a combination of behavioral therapy and medication to treat the disorder. But Dr. Feusner has been trying out a brain-centered approach. While therapy and medication can help, he says, they don’t work for everyone and don’t allay all symptoms. A key to addressing BDD, he says, is understanding why patients struggle to process images of themselves realistically. Can their brains be “retrained” to see themselves without only focusing on the imperfections? “We believe that we need to change the brain for treatment to be effective,” says Dr. Feusner, director of the UCLA Eating Disorders and Body Dysmorphic Disorder Research Program. With grants from the National Institute of Mental Health in Washington, Dr. Feusner has been examining possible malfunctions in the brain that can shed light on the malady. An experiment in a study he is conducting at UCLA involves having patients with the disorder lie in an MRI machine, wearing goggles that display an image of their face. The patient is told to stare at a point at the center of their face rather than focusing on the part they would typically obsess about. The scanner takes images of areas of their brain to probe for any abnormalities. The idea is to have patients look at their entire face “all at once, as opposed to looking at a specific piece of their face,” he says. Because so many BDD patients struggle to do that, “that is the essence of what we want to achieve.” BDD was identified as a psychological malady in the late 1800s, when it was called dysmorphophobia and referred to an obsessive fear that a person’s body or part of his body is repulsive. Yet it remained in the shadows of psychiatric research until the 1990s. Specialists in body dysmorphic disorder called the UCLA work “cutting-edge” and very promising. Katharine Phillips, a psychiatrist who has a private practice in New York and is joining the faculty of Weill Cornell Medicine and NewYork-Presbyterian in December, says work on BDD has grown exponentially. As recently as the 1990s, Dr. Phillips recalls, “We didn’t have any treatments—we didn’t know what to do.” These days, the two most common treatments—cognitive behavioral therapy and certain antidepressant medications—do work. “When they are implemented, a majority of people substantially improve, and those treatments are lifesaving,” she says. Still, “there is room for new treatments,” she says, and Dr. Feusner’s studies on the brain offer “fantastic” prospects. Dr. Neziroglu, a professor of psychiatry at the Zucker School of Medicine at Hofstra/Northwell, uses more classical methods of cognitive behavioral therapy that build on her therapists’ relationships with patients. The psychologists help patients try to develop the confidence to venture out in public by accompanying them to restaurants, department stores or Starbucks. Dr. Neziroglu also uses mirrors to help patients see themselves realistically. She calls the technique “mirror retraining—when you look in the mirror, try to see the totality of you.” Continued from page A13 tions, 13 of which will lend artwork to Abu Dhabi over the next decade. The Emiratis have gotten their money’s worth. No one ever expected France to part with the Mona Lisa. But the Louvre has sent over another first-rate Leonardo, “La Belle Ferronnière” (1495-99), a psychologically piercing portrait on wood exhibited in a gallery that juxtaposes Renaissance masterpieces with optical theories devised in the Arab world. The Leonardo, on view during the inaugural year, is only one of many outstanding works among the 300 French loans that, at present, make up roughly half of the core exhibit. Among the antiquities, the diorite statues of “King Ramses II” (1279-13 B.C.) found at Tanis and “Gudea, Prince of Lagash, Praying” (c. 2120 B.C.) from Iraq are especially imposing. When it comes to the paintings, the loans are incredible. Jacques-Louis David’s monumental canvas of Napoleon crossing the Alps (1803), lent by Versailles, dominates a gallery that also features non-Western rulers. In the 19th-century gallery, we find magnificent loans from the Musée d’Orsay, including Whistler’s most famous canvas, “Arrangement in Grey and Black No. 1” (1871); Manet’s “The Fifer” (1866); and another familiar face, that of Van Gogh, in his 1887 selfportrait. Nearby is Gauguin’s “Children Wrestling” (1888), one of the hundreds of works that have entered Louvre Abu Dhabi’s own diverse collection over the past decade, in addition to paintings by Bellini, Mondrian and Cy Twombly. The French curators create many sophisticated cross-cultural juxtapositions. But what does it mean to represent all of human culture, art and achievement through 600 works? Wending your way through this narrative laid out over Mr. Nouvel’s dozen elegantly flowing galleries is fre- FROM TOP: © MUSÉE D’ORSAY, RMN-GRAND PALAIS; MUSÉE DU LOUVRE/HIGH MUSEUM OF ART LOUVRE Vincent Van Gogh’s 1887 ‘Self-Portrait,’ above, and ‘Gudea, Prince of Lagash, Praying’ (c. 2120 B.C.). quently as vexing as it is enjoyable. Several of the rooms feel like well-considered shows in their own right— the gallery devoted to sacred texts, for example—or robust private collections, but the museum, as a whole, does not provide a compelling argument for displaying mankind’s arts and objects in a single continuum. The new light the museum invites us to see humanity in could stand to be more vivid. On the positive side, there is blessedly little “we are one” sermonizing. In the final gallery, devoted to the art of our young century, the museum’s insistence on a truly universal cross-pollination of the arts makes the most sense, since our ever-connected reality puts the world at the fingertips of artists and their public. The final word goes to Ai Weiwei, with his “Fountain of Light” (2016) commissioned for the museum. This dazzling assemblage of 10 crystal chandeliers made in China nods to Babel and Vladimir Tatlin’s “Monument to the Third International” (1919), one of the most fa- Man of Style Gem Cufflinks Impeccable style. Magnificent jewels. Timeless designs. Designed in sleek and sophisticated geometric motifs, these stylish cufflinks exemplify classic luxury. Top: Sapphires: 5.36 ctw. Diamonds: 2.49 ctw. Set in 18K white gold. #30-6563 Bottom: Diamonds: 2.09 ctw. Emeralds: 0.88 ctw. Set in platinum. #30-6637 mous buildings never built, as well as to Abu Dhabi’s futuristic skyline. Slanting up to a Nouvel skylight, it also seems like a cheeky reflection on the utopian mission of the museum itself. Mr. Goldmann writes about international arts and culture. 630 Royal Street, New Orleans, Louisiana • 877-677-2801 • email@example.com • rauantiques.com Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry. Backed by our unprecedented 125% Guarantee, we stand behind each and every piece. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A16 | Wednesday, November 15, 2017 KYLE TERADA/REUTERS SPORTS Steph Curry heats up in the third quarter. THE COUNT SHABAN ATHUMAN/GETTY IMAGES WHEN WARRIORS POUR IT ON The Golden State Warriors begin every game as a great team with more talent than anyone else in the league. Only when they come out after halftime do they bother transforming into the greatest basketball team the NBA has ever seen. Their offense is better. Their defense is better. Their turnover rate is lower and their effective-field-goal percentage is higher. In other words: This is when the Warriors turn into the Warriors. Golden State is outscoring its opponents by an outrageous 28.2 points per 100 possessions in the third quarter. That’s right: 28.2 points. There hasn’t been a better single-quarter net rating since at least the 2003 season, according to Stats LLC. The Warriors have won their last seven third quarters by an average of 12.6 points. They’ve won all seven games. “For whatever reason,” Golden State coach Steve Kerr said, “the third quarters have been good to us lately.” And then he listed some of those reasons. “I think we get more focused in the third quarters,” he said. “We’ve been turning it over quite a bit in the first half. But third quarters, we tend to tighten it up.” Their offense in the third quarter scores 124 points per 100 possessions. To put that in perspective, the Warriors matched the NBA record for offensive rating last year, and they only scored 115.6 points per 100 possessions. The Warriors play the Boston Celtics on Thursday night in what could be a Finals preview. And there is epic potential for the third quarter: Boston’s net rating of 24.6 points in that period would be the NBA record if only the Warriors didn’t exist. —Ben Cohen The Tennessee Titans have surrounded quarterback Marcus Mariota with young offensive talent and the strategy is starting to pay off. NFL How to Build Around a Quarterback BY ANDREW BEATON Nashville FIVE YEARS AGO, the Indianapolis Colts appeared to have a stranglehold on the AFC South for the next decade. They had just gone 11-5 in their first year with Andrew Luck, a quarterback prodigy who delivered a dizzying turnaround from the team’s 2-14 campaign the previous year. It looked like the model rebuild for the modern NFL: Spend a year in the cellar, land a high draft pick and nab the right quarterback. Voila. That’s all that was needed. Now the team with the brightest future in the division is the Tennessee Titans. And here’s what’s most telling: They have gotten to this point by, in many ways, doing the exact opposite of the Colts. While Indianapolis enjoyed a meteoric rise, Tennessee’s growth has been maddeningly methodical. Some fans grew frustrated, saying the process was too slow and conservative. But it has produced a team that looks like it can sustain its success over the long term possibly better than any team in the NFL. These days, few teams look smarter than the Titans, who are 6-3 entering Thursday night’s game against the Steelers. The key difference in philosophies: The Colts invested little in young talent to surround their star quarterback, who was constantly battered and bruised and now will miss the entire 2017 season due to a shoulder injury. On the other side, no team in the last two decades has been as committed to supporting its prized quarterback as the Titans have with Marcus Mariota. “Marcus is an integral part of our offense,” said general manager Jon Robinson, “but protecting him was first and foremost.” A not-insignificant side benefit is that the Titans have a host of blue-chip offensive tal- Rolling Quarters How this year’s Warriors and Celtics compare with teams with the best single-quarter point differentials per 100 possessions, since 2002-03: TEAM Warriors Celtics Warriors Warriors Cavaliers Warriors Thunder Mavericks Warriors Suns SEASON QUARTER PER 100 2017-18 2017-18 2016-17 2015-16 2008-09 2014-15 2012-13 2002-03 2014-15 2004-05 3Q 3Q 3Q 1Q 1Q 2Q 1Q 3Q 3Q 2Q 28.2 24.4 22.7 20.0 17.6 17.4 15.5 14.9 14.9 14.8 Note: Through Monday Source: Stats LLC; WSJ Weather 0s d Edmonton 30s C l ary Calgary Seattle 0s 10s ip Winnipeg 30s P Por d Portland Eugen Eugene <0 30s 10s Ottawa 20s i Boise 30s 20s 20s l Helena 50s Billings l /St / Paul P Pau Mpls./St. A g t Augusta 40s 50s k Milwaukee t Boston rtford Hartford ew York Y k New 60s oux F ll Sioux Falls 30s Albany A bany T Toronto 40s P Pierre 40s t Detroit 30s t Montreal Bismarckk Buffalo 40s 50s 70s Chi g Chicago Cleve d es Moines i Cleveland Des Ph hil d lphi Philadelphia h Omaha b di p li Pittsburgh Indianapolis Spring p i gfi ld Springfield Denver hington hi gton D.C. 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After that, the Titans accessorized. They spent a second round pick in 2016, acquired from the Rams when they traded up for Jared Goff, on star Alabama running back Derrick Henry, a Heisman Trophy winner who along with DeMarco Murray now forms one of the NFL’s best backfield tandems. With this year’s No. 5 overall pick—again part of the Goff trade—Tennessee took wide receiver Corey Davis. The team then spent its two third-round picks on another wide receiver and a tight end. This may sound completely normal, even logical, but it’s nothing like how teams typically act after selecting a top quarterback. 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The Titans have showered Mariota with 4,640 points of offensive talent, adding up all the offensive players they’ve drafted in the first four rounds, after which the expected value of picks becomes negligible. That’s about twice the average for quarterbacks selected first or second overall since 1998. “If you go get that franchise quarterback, go get him some help,” said offensive coordinator Terry Robiskie. “Some guys turn around say, ‘I’m going to go the other way. I’ve got him, and he’s going to win the game.’” Mariota has been among the best protected and least exposed quarterbacks in the NFL—27 quarterbacks have been sacked more than he has this year. At the same time, investing top draft picks at some of the positions that draw the highest salaries, like quarterback and receiver, has given Robinson and coach Mike Mularkey the flexibility to splurge elsewhere. Last offseason, the Titans spent more than $80 million on defensive free agents. All the while, the Tennessee offense, once mocked for lacking explosiveness, has steadily improved. From 2015 to 2016, the Titans jumped from 28th in scoring to 14th. This year, they’re 13th. Robiskie, who runs the offense that Mularkey dubbed “exotic smashmouth” for its run-heavy schemes that take advantage of Mariota’s versatility, says there are distinct advantages to having a gaggle of young players learn together. Basically, he says, the players have bought in because they haven’t been previously exposed to other concepts and terminology in the NFL. “It’s just that old theory of life,” Robiskie said. “It’s a new young puppy who learned those old dog tricks early.” —Michael Salfino contributed to this article. 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. Vancouv Vancouver ents that aren’t only good, but they’re cheap. Tennessee’s rebuild began with an idea that sounds simple: Drafting a franchise quarterback isn’t enough to build an offense. Ever since the Titans drafted Mariota No. 2 overall in the 2015 draft, they haven’t stopped adding offensive pieces around him. Robinson compares it to building a house and the first thing his quarterback needed was a solid foundation. Despite spending their top pick in 2014 on an offensive tackle, Taylor Lewan, they did U T U R N S H A L E MO L D Y O K E A D AM T Y P E For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A17 OPINION Impeach Tom Steyer It won’t strike many readers as an improbable development, but it should: ConBUSINESS gress is enWORLD gaged in a By Holman W. once-a-genJenkins, Jr. eration attempt to rewrite the tax code; legislators are flailing after revenues. And a carbon tax is not even part of the discussion. It’s difficult now to recollect the nonpartisan, nonhysterical environmental movement of the 1990s. You don’t need to believe in climate catastrophe, advocates said. A tax system has to tax something. Taxing carbon is better than taxing work and investment. Kevin Hassett, now Donald Trump’s chief economist, was a supporter. So was Greg Mankiw, doing the same job in the George W. Bush administration. Republican stalwarts like James A. Baker, Henry Paulson, George P. Shultz, Martin Feldstein and Mitt Romney climbed aboard at various times. Even resident skeptic Sen. James Inhofe called it the “honest approach” to dealing with CO2. The catechism wasn’t planetary doom but win-win. Understand: Energy taxes are unpopular with voters, thus with politicians of either party, so a carbon tax was never likely to pass on its own. Yet a carbon tax has repeatedly been on the table to solve revenue problems connected with, say, the Obama fiscal cliff debate or the expiration of the Bush tax cuts, etc. What changed? Al Gore, followed by the subject of this column, Tom Steyer. Mr. Gore turned climate politics toward hysterical exaggeration and vilification of opponents. Wedge politics is valuable for many things, such as generating media heat and helping Mr. Gore to bask in the panegyrics of a growing legion of admirers. One thing it isn’t good for is getting things done in our political system, which requires bargaining and compromise. Issues like guns and abortion—and now climate change—delight party hacks because they become bottomless wells to draw upon. They are meant to be milked, not resolved. It took no special cunning on the part of a restless California hedge fund billionaire, a k a Mr. Steyer, to notice that climate change is now a sacred question among progressives, an occasion for us-vs.them tribalism, brooking no debate. Anybody, though, might have noticed that the Gore approach produced no results and ultimately discredited the cause. Mr. Gore himself is less heard these days, having turned his focus to moneymaking. Mr. Steyer picked up the cause as his own passport to celebrity—yet failed to do the obvious thing and rethink a strategy that so manifestly has failed. Who knows what goes on in the head of somebody like Mr. Steyer? He pays Democratic operatives to tell him what a great guy he is, and they take his money and spend it on Democratic politics as usual. Mr. Steyer has invested at least $200 million in recent years promoting Democrats and attacking Republicans, with the result that Democrats are wiped out in large parts of the country and Donald Trump is president. The ultraliberal billionaire is the enemy of every cause he promotes. Mr. Steyer is the talking head in an open-collar shirt now seen in a $20 million petition campaign calling on Congress to impeach a cartoon version of Mr. Trump. The ads are running on the national news channels—and on California TV. Mr. Steyer keeps hinting he’s available to run for governor or Dianne Feinstein’s Senate seat. In the feverish hothouse of California Democratic politics, maybe extreme anti-Trumpism really is his ticket. Or maybe he’s a Republican mole. Because if there’s one thing Democrats can do to assure Mr. Trump’s re-election, it’s to follow Mr. Steyer in painting Mr. Trump and his voters as crazy, racist and beyond the pale. The most interesting moment in a New Yorker profile several years ago described Mr. Steyer’s lack of interest in the details of climate science or climate policy. His conspicuous failure to spark a groundswell of demand for himself as a candidate may be one thing. His and his movement’s astonishing incompetence on behalf of their ostensible cause is something else. The alleged threat of climate change is now part of the consciousness of every human being on Earth. The virtues of a carbon tax are not in dispute. It’s a way to raise money that doesn’t weigh on incentives to work, save and invest. It obviates many corrupt and inefficient handouts to “green energy.” It survives even the recent downward scientific estimates of “climate sensitivity” and thus the severity of expected future climate change. Yet the natural constituents for such a tax have made themselves so non grata with their lies and slurs (equating opponents to Holocaust deniers) that they are not welcome at the table. More to the point: Their presence is not required at the table simply as a matter of vote counting. Even Barack Obama reportedly was irritated by Mr. Steyer’s promotion of absurdly dishonest numbers for the alleged CO2 consequences of the Keystone pipeline. At a moment when a carbon tax might solve the revenue problems of GOP tax reformers while bringing aboard useful Democratic votes for tax reform, the carbon tax forces are nonplayers. Nice job, Messrs. Gore and Steyer. A Ford Exec Who Took the Long View The older I get, the more drawn I am to obituaries, but not for the obvious reason. POLITICS They often offer a reminder & IDEAS of the United By William States as it A. Galston used to be, and they make me wonder whether we have lost something precious. I had one of these moments this weekend, when I read about the death of Arjay Miller, 101, who was president of Ford Motor Co. and later dean of Stanford Business School. Under Miller’s leadership (1963-68), Ford modernized its management, introduced the highly successful Mustang, and achieved record earnings. At the same time, Miller made Ford take automobile safety seriously while General Motors lagged behind. The choice cost Ford sales because some customers balked at paying for innovative equipment such as seat belts. Miller defended his policy as the right thing to do and said corporate leaders should always ask themselves whether they were willing to have their decisions publicly reported. Volkswagen executives have paid dearly for ignoring this advice, and they are not alone. After leaving Ford, Miller helped move Stanford into the top rank of business schools by diversifying the faculty and student body while expanding coverage of ethics and public policy. He founded the Economic Development Corporation of Detroit, supported black-owned and -operated business, and backed a negative income tax to reduce poverty. “Making money is the easy part,” he declared. “Making the world a better place is the hard part.” I wonder how many of today’s executives would be prepared to sacrifice sales and profits to do the right thing. Most of them have been taught that maximizing shareholder value is their sole responsibility—and if this means ignoring the needs of workers and the well-being of local communities, so be it. Miller’s example is especially relevant today, as Republicans in the House and Senate consider tax legislation that would allow corporations to repatriate foreign assets at concessionary rates. The bills’ drafters are assuming that executives will use these funds to invest in their businesses. But that’s not what happened the last time this was done, in 2004, when corporations were allowed to bring back overseas assets if they paid a tax of only 5%. During the next three years, the 15 companies that repatriated the most raised salaries for senior executives, cut more than 20,000 jobs, decreased investment in research, and expanded dividends and stock buybacks. All this happened despite the letter of the law, which specified that the funds be used for investing in research and the workforce and prohibited their use for compensating executives and repurchasing stock. Law is a blunt and often ineffective instrument for inducing corporate leaders to take a broader view. They have enormous discretionary authority. Populism could intensify if corporate tax cuts don’t yield benefits for workers. The question is how they choose to use it. Legality is just the beginning. “Moral judgment transcends legalities,” Miller once said. So does moral responsibility. The tax bills now under consideration in the House and Senate represent the largest corporate tax cuts in many decades. If these bills pass, average Americans will expect something in return— higher wages, better working conditions, and more opportunities for their children. If corporations take the money and run, public retribution will be severe. Earlier this week, a group of 400 rich Americans sent a letter to Republican members of Congress. Their message: don’t cut our taxes. We don’t need the money; others do. Besides, it is folly to add $1.5 trillion to already dire forecasts of the growth of the national debt over the next decade. This is a good start. But in addition to political responsibility, America’s financial elite ought to exercise business responsibility. America needs a new era of broad-minded, socially aware corporate leaders who understand the longterm relationship between the well-being of their companies and the well-being of their country. An environment in which profits soar while wages stagnate may make for satisfied shareholders. But the revolt against the arrangements that sustain this imbalance is already under way. Today the targets are immigration and trade treaties. Tomorrow the demands could include restrictions on the ability of corporations to shutter plants and fire workers at will. The day after tomorrow, if massive corporate tax cuts yield no benefits for workers, we could see an intensified revolt against elites, not only cultural elites, but the captains of industry and finance as well. Taking the long view is selfinterest rightly understood. It means refraining from squeezing the last bit of profit out of your business right now in order to secure a flow of profit over time. The economy rests on a set of political arrangements that the people can revise and—if things get bad enough—upend. Trump’s de Facto Small-Business Tax By Violet Tran T hank you, Mr. President, for visiting my country. I hope you enjoyed your stay in Vietnam as much as I am enjoying my time in the U.S. I worked hard to obtain my American education and have since contributed to the U.S. economy. Following my studies here, I applied through my employer for an H-1B work visa. I was one of the fortunate few who were selected through the random drawing conducted each year. I had escaped the unwelcome prospect of being ineligible to continue working when my temporary work authorization expires in early January 2018. Or so I thought. But winning the lottery is no longer enough. In late September, my employer’s attorneys informed us of a new hurdle we must navigate to convince the U.S. Department of Homeland Security further that my employment is necessary. According to data from the U.S. Citizenship and Immigraiton Service, U.S. immigration authorities issued 85,000 challenges, known as “requests for evidence,” to H-1B petitioners in the first eight My H-1B visa is under challenge, and it’s costing my employer. months of 2017. That’s a 45% increase over the same period last year, even though the total number of H-1B visa petitions rose less than 3% during this time. What exactly is an RFE? A request from U.S. immigration authorities for additional evidence that my job represents a “specialty occupation,” a position requiring at least a bachelor’s degree or the equivalent. Though many of the applicants for H-1B visas are sponsored by technology giants such as Microsoft, Google and Apple—which have the financial resources to weather the risk of a failed H-1B petition—my company, a boutique digital-media and public-relations consultancy in New York, is not one of them. For my employer, the RFE is the functional equivalent of a small-business tax—one that will cost the company thousands of dollars in legal fees and countless hours to marshal additional “evidence” about the firm’s business and my role in it. U.S. immigration services are asking—among other things—for copies of my firm’s office lease agreement, company brochures, an organizational chart, and plenty of documents we have already filed with the Internal Revenue Service. In a country that prides itself on a heritage of free enterprise and encouraging risktaking small-business owners to decide how best to run and grow their commercial operations, why is the well documented success of the H-1B visa program being thwarted? This is a program that our firm’s management believes has contributed mightily to the success of the business. I am only the latest in a series of H-1B applicants sponsored successfully by the firm. One of these prior applicants rose to become a partner. One year ago, Mr. Trump, you were elected president by campaigning on the idea that you were going to make America great again. When I look back over the history of the U.S., I see how much immigrants have contributed to that greatness. I hope your administration will also allow me to help you in your goal of making America great again. Ms. Tran is an associate at RooneyPartners. BOOKSHELF | By David Shenk A Twenty-First Century Scourge In Pursuit of Memory By Joseph Jebelli (Little, Brown, 301 pages, $28) S omething odd happened after I began working on a book about Alzheimer’s disease almost 20 years ago. Almost universally, as soon as I mentioned the topic to a friend or colleague, I got the same instant response: “What was that? I just forgot what you said.” Probably the dumbest joke ever uttered, and yet I kept hearing it, from person after person. They all knew it wasn’t funny; most were embarrassed to have blurted it out. Why was this happening? Finally, it hit me. I wasn’t hearing a joke; I was hearing the sound of panic. Everyone is petrified of Alzheimer’s, to the point of not wanting to contemplate it. And rightly so. It is existentially—and uniquely—horrifying. “I have lost myself,” the first patient, Auguste Deter, told Dr. Alois Alzheimer in 1901. And that’s exactly what happens. Over many years, this disease imperceptibly, insidiously attacks an otherwise healthy human being, eating away at normal brain function by ripping out neurons and synapses one by one. It eliminates our understanding of the world around us, the recognition of the people we love, and ultimately our basic sense of who we are. We lose ourselves. Why would anyone willingly think about this for any sustained period? Why would anyone read an entire book about it? It had better be a darn good book. The British neurologist Joseph Jebelli is up to the challenge. With “In Pursuit of Memory,” he has written an elegant, thorough, compelling and touchingly personal biography of the disease. He begins with his family story. When Mr. Jebelli was 12, his grandfather Abbas developed Alzheimer’s. “It started with inexplicable walks,” Mr. Jebelli recalls. Within a decade, “like a candle burning itself out, his mind faded and vanished.” Young Joseph’s tender experiences with his grandfather’s decay, and his bafflement at the “sheer indiscriminateness” of the disease, planted a seed of curiosity that he later pursued as a neuroscientist. Mr. Jebelli then takes us back a century to Dr. Alzheimer in Frankfurt. He’s not the first writer to do this, but he does it well. Through Alois Alzheimer’s experience with Auguste Deter we are introduced to the disease’s malicious hallmark—the “host of killer proteins” now known as plaques and tangles. After Frau Deter died, in 1906, Alzheimer examined her brain with a microscope and discovered a “perplexing omen.” “Peppered throughout the brain were dark particles of an unknown substance,” Mr. Jebelli writes, as well as “variegated tangles” of another foreign material. We absorb Dr. Alzheimer’s confusion and curiosity about the nature of these intruders. And thus we are launched into a 100-year journey of turbulent research, evolving theories, failed therapy attempts and occasionally fruitful insights. Between 2000 and 2012, nearly 100% of therapies for Alzheimer’s disease ended in failure. Much work remains to be done. Mr. Jebelli elegantly surveys past landmarks in our understanding of the disease, explores its genetic linkages and navigates among the ever-evolving theories of its cause. Historically, some researchers have emphasized the beta-amyloid plaques sandwiched between neurons; others the “tangled” microtubules inside neurons. Still other researchers see Alzheimer’s as a diabetes-like deficiency in glucose processing. Recently, inflammation and interactions with our microbiome—the ecosystem of microbes living on and in our bodies—have attracted serious attention. If this sounds like a lot of science for the lay reader, it is. But Mr. Jebelli smooths it out into a pleasant journey. We get to know the human beings (and the motivations) behind the science as much as we do the biology itself, and Mr. Jebelli ranges from the U.K. to Colombia, Iceland and India to profile researchers and their subjects. By the end of the book, I was wondering if there is any esoteric sub-sub-detail in neuroscience that Mr. Jebelli couldn’t compellingly humanize. At its heart, “In Pursuit of Memory” is about the virtue of human curiosity. We are awfully good at accumulating data, shaping it into an edifice of knowledge, and sharing it in networks with one another. We excel at finding solutions to last year’s problem and then passing the solutions on to future learners so that they won’t have to start from scratch. Human knowledge impressively builds on itself, as if it were a never-ending skyscraper being constructed into the future. “Every finding has scores of older, closely related findings trailing behind, each having been disproved, amending the scientific narrative,” Mr. Jebelli writes. “Science orbits the truth; it doesn’t live there.” “In Pursuit of Memory” demonstrates how relentless research and stumbling through flawed theories has led to a slow but sure buildup of understanding of Alzheimer’s. Nearly every year since 1901, researchers have made strides. It also starkly reminds us that we’re not nearly done and that, in the meantime, the situation has become dire. The baby boomers are now drifting into the most riskprone years. Alzheimer’s has become the fourth-largest killer in the U.S.—and the only one of those four still on the incline. (As Mr. Jebelli notes, it is No. 1 in the U.K.). Alzheimer’s care costs more than $200 billion a year in the U.S. alone. It is a 21st-century scourge. And yet we have not one single drug that can slow it down by even one day. Tested Alzheimer’s therapies between 2000 and 2012 had a 99.6% failure rate, while the failure of cancer drugs in that same period was 81%. “It’s time to wake up,” writes Mr. Jebelli. Hear, hear. And that is why you should read this book. People you love will inevitably succumb to this horrible disease. Each of us ignores Alzheimer’s at our peril. Only our powerful collective will can stop Alzheimer’s. No one wants to think about it. But we must. Mr. Shenk is the author of “The Forgetting,” a senior adviser to the Cure Alzheimer’s Fund and the creator of the Living With Alzheimer’s Film Project. 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 | Wednesday, November 15, 2017 OPINION LETTERS TO THE EDITOR The Roy Moore Mess Military Service Really Is a Special Sacrifice famous country song aptly summed up spite the blow to its Senate majority. Democrats where the Republicans are with Senate and the media will make Mr. Moore the running candidate Roy Moore in Alabama: mate of every Republican in 2018. You’ve got to know when to Alabama’s Republican votfold ’em. ers are in a tough spot, and Without a new There is no doubt a sense in ideally they’d at least get the candidate, the GOP which Mr. Moore deserves the chance to choose between a opportunity to challenge accuprominent write-in candidate would be better off sations against him for acts altheir party or opt for losing the Senate seat. from leged to have happened more sending a message by voting than 30 years ago. Though too for the Democrat. For 25 years many women were too easily Democrats and feminists euignored in the past, we do not want to live in phemized and apologized for Bill Clinton, starta country or political culture in which every ac- ing with Gennifer Flowers before he was Presicusation of sexual misconduct is automatically dent. Republicans can show their standards are accepted as true. Accusers can be liars too. better. But Mr. Moore isn’t in a courtroom today. There is one other obvious loser in this debaHe’s in the political arena in which a candidate cle: Former White House aide Steve Bannon. has to maintain a minimal level of public credi- Some have argued that the Bannon insurgency bility to survive. And his political situation has against the Republican “establishment” is in the moved well beyond a more familiar she said/he mode of earlier party challenges led by Ronald said predicament. Reagan or Newt Gingrich. This one isn’t close. Several women have made detailed accusa- The populism of Reagan and Mr. Gingrich was tions of sexual misconduct against Mr. Moore, always about building the conservative moveand multiple people now say he was known for ment into a majority that could govern and trolling shopping malls for young girls while in change the country. his 30s. Mr. Moore’s public defenses have also The Bannonites have given no evidence or been less than convincing, not least that he argument that they are aiming that high. They doesn’t know his latest accuser, though he want to defeat the existing majority—a consersigned her yearbook. vative majority by any historical standard— Mr. Moore’s credibility has fallen below the mainly to show that they can depose Majority level of survivability. Some of Mr. Moore’s pre- Leader Mitch McConnell. sumed colleagues in the Senate have said they They have no discernible governing agenda believe the women and that the judge should beyond trade protectionism and slashing immiwithdraw. Colorado’s Cory Gardner has sug- gration, and those often appear to be convicgested that even if Mr. Moore wins, the Senate tions of convenience. It is hardly a surprise should vote to expel him from the body. It’s a therefore that instead of recruiting talented rare candidate who achieves that degree of po- candidates, Mr. Bannon is collecting cranks and litical abandonment. outliers like Roy Moore who, demonstrably, will The sensible move would be for Mr. Moore take the GOP into the minority. to step away from the campaign and allow AlaThe lesson Republican voters should draw bama’s Republicans to put forth a more credible from the Moore mess is that their future lies candidate to run as a write-in against Democrat with nominating candidates who want to Doug Jones. Most likely, Mr. Moore won’t do achieve substantive policy goals, such as a serithat. He made his reputation as an Alabama ous reform of the tax code or confirming origistate judge by openly defying valid court or- nalist judges, rather than pouring their emoders, which twice cost him his court seat. tions into a political fringe that will always find In the event that Mr. Moore refuses to drop a way to lose. out in the next day or so, President Trump Raging against the establishment for the might have more sway if he suggests that he sake of raging is an agenda for losers, and it will leave the race. If Mr. Trump won’t do that, then cost conservatives the votes in Congress they the GOP will be better off if Mr. Moore loses, de- need to achieve conservative goals. I Ruling Out the ABA on Judges f Republicans are serious about getting President Trump’s judicial nominees confirmed, they will have to rid themselves of the fiction of a politically neutral American Bar Association. The outfit’s recent antics provide ample reason to remove it from Senate vetting. The ABA’s Standing Committee on the Federal Judiciary last week informed the Judiciary Committee that Brett Talley is “not qualified” to serve as a federal judge. This is the fourth “not qualified” rating the ABA has slapped on Trump nominees, including Leonard Steven Grasz for the Eighth Circuit Court of Appeals. Mr. Grasz’s “not qualified” rating rests on a misrepresentation of the former Nebraska chief deputy attorney general’s views on judicial precedent. Mr. Grasz once argued in a 1999 article that lower courts shouldn’t stretch Supreme Court rulings into broader rights, but the ABA contorts this to suggest Mr. Grasz would ignore Roe v. Wade. Mr. Grasz explicitly wrote in the same article that “lower federal courts are obliged to follow clear legal precedent regardless of whether it may seem unwise or even morally repugnant to do so.” As for Mr. Talley, nominated for the district court in Alabama, the ABA says he lacks the “requisite trial experience,” having never tried a case. This ignores that the 36-year-old has clerked for a federal district judge and a federal appellate judge, has worked at the whiteshoe Gibson Dunn & Crutcher firm, and served as the Deputy Solicitor General of Alabama. M Many nominees have been younger than Mr. Talley, and the ABA called Barack Obama nominee Goodwin Liu “well-qualified” despite no experience as a trial judge. The ABA also called Elena Kagan “well qualified” for the Supreme Court, as indeed she was, despite her lack of trial experience. But since the ABA found nothing amiss with Mr. Talley’s “integrity” or “temperament,” it settled on a concern with “requisite” experience. In an August letter to Judiciary Chairman Chuck Grassley, Senator Jeff Flake and four colleagues outlined the ABA’s long history of political liberal activism, and noted their concerns with the Senate outsourcing advice and consent to “unaccountable outside groups.” They also pointed out how useless ABA ratings are, given the number of judges who have been judged “not qualified” but were confirmed and have had distinguished bench careers. ABA Standing Committee Chair Pamela Bresnahan wants Senate Judiciary to invite the ABA to more hearings. Mr. Grassley should respond by informing the ABA that hearings on judicial nominees will no longer have to wait for completed ABA evaluations. Mr. Trump followed George W. Bush and scrapped the practice of letting the ABA prescreen nominees for the White House. Yet the Senate continues to give the lawyers’ guild too much sway. There are more than enough judicial watchdogs on the left and right to inform the Senate. Venezuela Goes Bust ilton Friedman once joked that if you As of Tuesday evening, the Investment put the government in charge of the Swaps and Derivatives Association still had not Sahara Desert in five years there declared Venezuela in default. That matters bewould be a shortage of sand. cause this will trigger the inAnother lesson in the surance obligations inherent He could have been talking about Venezuela and its oil in the credit default swaps. price of lending to a wealth. But it is no joke. But S&P Global Ratings desocialist regime. On Monday Caracas missed clared the country in default interest payments due on two Monday. On Tuesday morning government bonds and one the Luxembourg Stock Exbond issued by the state-owned oil monopoly change issued a suspension notice for the bonds known by its Spanish initials PdVSA. Venezuela with missed payments. owed creditors $280 million, which it couldn’t President Nicolás Maduro has formed a commanage even after a 30-day grace period. mission to restructure up to $150 billion of the Venezuela is broke, which takes some doing. debt and put Vice President Tareck El Aissami— For much of the second half of the 20th century, who is under U.S. sanctions for drug trafficka gusher of oil exports made dollars abundant ing—in charge. Mr. El Aissami called a meeting in Venezuela and the country imported the fin- of creditors on Monday in Caracas, which most est of everything. There were rough patches in bondholders did not attend. Press reports said the 1980s and 1990s, but by 2001 Venezuela was Mr. El Aissami delivered a monologue on Venethe richest country in South America. zuela’s intention to pay and took no questions. Then in 2005 the socialist Hugo Chávez de- He argued that Trump Administration sancclared that the central bank had “excessive re- tions make it difficult for the dictatorship to arserves.” He mandated that the executive take range refinancing. the excess from the bank without compensaThe real problem is that restructuring astion. Today the central bank has at best $1 bil- sumes the country can grow again. That’s lion in reserves. nearly impossible without a change in policy Falling oil prices are partly to blame, but the that will free the economy. main problem is that chavismo has strangled If Caracas doesn’t find a way to settle with entrepreneurship. Faced with expropriation, bondholders, they will soon ask authorities to hyperinflation, price controls and rampant cor- seize Venezuelan assets such as oil shipments ruption, human and monetary capital has fled at sea and Citgo facilities in the U.S. Such are Venezuela. the wages socialism. Regarding Michael Brough’s “Thanks For Your Service, Too” (op-ed, Nov. 10): I was medevaced from Vietnam in 1970, a Ranger-qualified Reconnaissance Marine with 42 long-range recon patrols, to be greeted by sanctimonious, egoistic protesters and college kids who taunted and spat on us. I became a teacher and coach though disabled. As proud as I am to help my high-school kids, there’s no comparison with what American military personnel do every day in some of the armpits of the world. The people who face 24/365 danger to keep us safe and free deserve every bit of recognition and thanks we can give them. My service taught me a special type of humility and pride. I found out that all men are equal when being shot at. It isn’t that other people don’t deserve recognition and praise for their contributions to our society, but that a few of us, those in the military, for whatever reason, lay their lives on the line with a very high probability of loss of life and limb, while those who don’t enlist are safe and sound. I find Mr. Brough’s remarks demeaning, especially on a day set aside to honor living veterans. They smack of the continuing campaign to destroy the culture, institutions and mores of the U.S. that has been going full-bore since 2008. Honor all Americans who contribute daily to what makes America great, but reserve special thanks and admiration for the 19- and 20year-olds who face the most evil of forces in the most God-awful places on earth and keep us free and safe. CAPT. J.V. FITZSIMMONS, USMC (RET.) Hickory, N.C. I’m a Navy and police veteran. The armed forces and law enforcement are armed because they are required to go in harm’s way, facing bad guys who want to kill them. Caring for the homeless, while a noble service, isn’t lifethreatening. All service isn’t the same. JOHN D. COWAN Columbus, Ohio I appreciate Mr. Brough’s inclusive perspective on serving the nation. I was a poll worker this year in my township and was touched by the kind remarks of fellow citizens who thanked us for our service to democracy. AAMIR A. REHMAN Princeton Junction, N.J. Mr. Brough elides the service military veterans who served during the draft era (1940-73) experienced. The draftee, or draft-motivated volunteer, had to give up a minimum of two years of his life and conform to a regimented military lifestyle, in service to the nation, commonly far from home and family. All this, while their contemporaries, who didn’t serve, pursued and advanced their lives and careers. I suspect these veterans feel they have earned the holiday of Veterans Day. GARY L. SMITH, USN (RET.) Englewood, Fla. Wind, Solar Are Shedding Subsidies. Oil? Regarding your editorial “Big Wind and Tax Reform” (Nov. 11): Wind and solar power, unlike virtually every other energy sector, agreed to a phase-out schedule for their own tax incentives in a bipartisan 2015 compromise. Rather than reward such fiscal leadership, the House proposal targets the sector with punitive provisions that retroactively change the criteria wind and solar projects must meet to qualify for tax credits last year. These provisions, the only retroactive measures in the 429page bill, are so destructive that their introduction sent an immediate shiver through the marketplace, placing tens of billions of dollars in investment and thousands of wind-energy jobs at risk. Retroactive changes to rules that investors relied on in financial decisions are inherently unfair and have no place in tax reform. You also ignore the fundamental hypocrisy of the energy provisions in the House bill, which target the dwindling temporary incentives for renewable energy instead of re-examining the array of older, permanent incentives for fossil fuels, some of which have been on the books for more than a century. Also spared, and in fact enriched, are incentives for nuclear energy that go back more than 50 years. With nearly $100 billion in investment over the past two years, and a strong record of job creation, especially in rural areas where investment and jobs may otherwise be hard to come by, renewable energy is one of the nation’s most important economic drivers. It deserves a fair shake from House legislators and editorial writers. GREGORY WETSTONE President and CEO American Council on Renewable Energy Washington GETTY IMAGES/ISTOCKPHOTO A REVIEW & OUTLOOK Iowa Sen. Chuck Grassley and his Republican colleagues in other wind- SALT Helps States That Put In More Than They Get Regarding “Tax Reform Momentum” (Nov. 10), I can’t help but notice the umpteenth time the editorial board has bemoaned the “subsidies” given to high-tax states via the state and local tax (SALT) deduction. As a longtime fiscal conservative, smallgovernment Journal reader living in New York, I look forward to the future analysis of state-by-state subsidies and the tens of billions of dollars flowing out of high-tax states and subsidizing what often seem like dependent red states. It’s quite the paradox. The SALT deduction isn’t great as a matter of policy, but it doesn’t exist in a void. Keeping tax dollars a little closer to their constituents actually sounds conservative to me. M. FANELLI Brooklyn, N.Y. 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. energy states are simply doing what Republicans have consistently done for their oil and gas states—cave on free-market principles to support energy subsidies in their home states. The big difference this time is wind energy’s tax loophole will be gone after 40 years since Republicans reformed its taxes in 2015 with a fiveyear phase-out of the industry’s primary tax preference. So what’s keeping the party in control now from figuring out how to reform taxes on oil and gas by ending tax provisions costing more than wind’s carve-out at $4.2 billion a year, according to the Congressional Budget Office? MARK RICHARDSON Hutchinson, Kan. Wind energy comes at the expense of taxpayers and birds, including protected birds. Audubon groups need to be more active in countering the wind lobby. An alliance between environmentalists and free-marketers could end the subsidized bird holocaust. IAN MCCLINTIC Houston Think of the Harm Taxing Tuition Wavers Will Do In arguing to tax tuition waivers, you claim that they “let colleges employ teaching assistants as indentured servants” and that colleges should pay teaching assistants “a better wage” (“The College Tax-Reform Tantrum,” Review & Outlook, Nov. 9). The numbers simply don’t support this statement and, indeed, argue for retaining current tax benefits. At my institution, like other research-intensive universities, the total compensation for graduate assistants is $71,000, including a tuition waiver of roughly $40,000 and a stipend of $31,000. Taxing these tuition waivers will consume a large fraction of much-needed stipend support. As these fellowships often support students in fields that are engines of economic growth—computer science, biotechnology, mathematics— taxing tuition waivers will serve only to diminish the lives of individuals and the growth society at large. PROF. NEIL SHUBIN The University of Chicago Chicago Pepper ... And Salt THE WALL STREET JOURNAL “But most of all I’d like to thank the zeitgeist.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A19 OPINION The Democrats’ Kansas Distraction By Ron Estes They’re trying to make my state’s 2012 tax cuts into a cautionary tale, but there’s no comparison. the Legislature to pass a 2011 budget that included $527.6 million in stimulus funds. Democrats knew this money was temporary but behaved as if it were permanent. The effect was to exaggerate the “lost revenue” from the tax cut. Second, the shortfall was made worse because state lawmakers re- ALAMY STOCK PHOTO W hen House Republicans unveiled their plan for tax reform this month, Democrats offered a curious response. Rather than give their own proposal, they held a mock hearing— a show trial, really—on Kansas’ 2012 tax cuts. Democrats see my state as proof that supply-side economics doesn’t work and that the GOP’s national tax reform will lead to budget cuts and enormous deficits. But the comparison is less a cautionary tale than a tall tale. I was Kansas’ state treasurer from 2011-17, and no one watched the dollars flowing in and out more closely than I did. Consider a few facts: First, the 2012 tax cuts came during the same year that federal stimulus funds ended. That alone resulted in a 12.5% drop in revenue. In the spring of 2010, then-Gov. Mark Parkinson, a Democrat, had worked with jected the “pay-fors” proposed by Republican Gov. Sam Brownback. The governor’s original tax plan would have closed many loopholes. But the Legislature wanted to keep the tax credits and deductions and left them in the final bill. Such carve-outs should be viewed as spending through the tax code, as Martin Feldstein, a top adviser to President Reagan, has argued on these pages. Third, the Legislature then continued to increase spending by 3% a year. Between the 2010 and 2018 budget years, during this era of supposedly devastating cuts caused by right-wing tax policy, lawmakers raised expenditures from $5.3 billion to $6.6 billion. Democrats who deride the Kansas “experiment” conveniently ignore how spending contributed to the fiscal problem. Fourth, after 2012 Kansas faced economic headwinds that decreased revenue. As commodity prices sank, the average net farm income in Kansas collapsed, from $159,352 in 2012 to $4,568 in 2015. Aviation companies—Kansas is home to Spirit AeroSystems, Cessna and Bombardier Learjet—struggled in the economic downturn caused by the Great Recession. Meanwhile, plunging oil and gas prices hurt drillers in central and western Kansas. For the state treasury, this was a perfect storm. The truth is that Kansas’ tax cuts simply aren’t comparable with the GOP’s pro-growth national plan because they aren’t structured the same way. The Kansas bill did nothing for large corporations. Instead it focused on reducing taxes for small businesses and LLCs (i.e., pass-throughs). As a result, Kansas created record numbers of small businesses. But critics say the lower rate increased tax avoidance by providing an incentive to push money into pass-throughs. The House GOP plan doesn’t have this problem because it would lower tax rates proportionally on both small businesses (to 25%) and corporations (to 20%). This would also bring America’s corporate tax in line with the rest of the world. Today’s high corporate rate of 35% is undoubtedly holding back growth. Cutting the rate to boost the economy is a core feature of the GOP’s national proposal, but that wasn’t a part of the Kansas plan. So why do Democrats keep bringing up Kansas? Because the truth gets in the way of their efforts to kill tax reform. The last time Washington enacted a serious plan like the House proposal was under President Reagan, and it ushered in one of the largest booms in the nation’s history. Economic growth averaged 3.5% from 1981-88. Republicans want to replicate that success for all Americans. The House estimates that under its plan the typical family of four earning $59,000 would save about $1,182 a year on their tax bill. In obsessing about Kansas, Democrats ignore the obvious economic lessons from the other 49 states. Federal data clearly show that Americans are leaving high-tax states like Connecticut and moving to low-tax ones like Texas. These are the comparisons that are truly relevant. In a September CNN poll, 68% of Americans said the tax code needs either a “complete overhaul” or “major changes.” Republicans would be wise to take heed and press ahead. Democrats, with their Kansas show trial, have demonstrated that they are more interested in phony comparisons than in offering real solutions. Mr. Estes, a Republican, is a U.S. representative from Kansas. How Big Pharma Sandbags Generic Competition By Michael A. Carrier D rug companies are always figuring out creative ways to sustain high prices on brandname medications. In the latest twist, Allergan this fall transferred the patents covering its eyedrop Restasis to the sovereign St. Regis Mohawk Tribe, admitting outright that its goal was to prevent the patents from being overturned. Whatever the industry’s excuses, shenanigans like these cannot be justified as aiding innovation. Instead they are anticompetitive abuses that lead to higher prices for millions of patients in need of vital drugs. What can Congress do? Four things: • Help generic manufacturers get the drug samples they need. Before a generic reaches the market, it must be shown to be equivalent to the brandname drug. But proving this requires samples that pharmaceutical companies are often unwilling to provide. This ruse was employed by the infamous “Pharma Bro,” Martin Shkreli. His company, Turing Pharmaceuticals, set up a restricted distribution system for its drug Daraprim that required orders to be approved directly by the company. If someone “calls and asks for 50 bottles of Daraprim, they would have to come to me for approval,” a company official told the blog Pharmalot in 2015. If the request was from a generic maker, “most likely I would block that purchase.” A 2014 report sponsored by the Generic Pharmaceutical Association estimated that this kind of gaming delayed the approval of 40 generics, at an annual cost to the American health-care system of $5.4 billion. Congress can address the problem by passing the bipartisan Creates Act. This narrowly targeted bill would require brand-name drug companies to provide generic manufacturers with enough samples to meet the testing requirements. If the brand-name firm refused, the generic company could sue. From denying samples to pushing ‘citizen petitions,’ drug companies are clever. But Congress can help. • Make clear that drug-distribution programs cannot be patented. When a risky drug needs to be administered in a closely monitored setting, the FDA often requires the manufacturer to create a program called Risk Evaluation and Mitigation Strategies, or REMS. Some brand-name companies are patenting their REMS. This puts generic manufacturers in a tough spot, since FDA regulations require the generic label to mirror the brand label, which includes the REMS. Case law and the relevant statute suggest that REMS should not be patentable. But Congress could help generics stuck between a rock (“Don’t alter the label!”) and a hard place (“Don’t infringe a patent!”). Simple statutory adjustments could make clear that REMS are not patentable. • Stop brand names from paying off first-filing generics. As a way of encouraging generic manufacturers to challenge invalid brand-name patents, the Hatch-Waxman Act of 1984 gives the first generics to file such a challenge a valuable 180-day period of market exclusivity. Other generics cannot enter the market until the first-filers do. Brands have twisted this provision beyond recognition by paying off the first-filers. To protect its sleep-disorder drug Provigil, Cephalon paid four generic manufacturers (all of which filed on the same day) $300 million to delay their entry into the market by six years. A 2010 report by the Federal Trade Commission estimated that “pay-for-delay agreements” cost consumers $3.5 billion a year. Such arrangements have attracted serious scrutiny. The company that later bought Cephalon agreed to pay a $1.2 billion settlement in 2015 to resolve a challenge to the deal. The Supreme Court warned four years ago that such agreements could violate antitrust law. Yet that hasn’t stopped them, and drug companies have only gotten cleverer. Lawmakers could enact a simple fix, like the Improving Access to Affordable Prescription Drugs Act. The bill would open that 180-day period to parties other than the first-filer, such as whatever company wins litigation showing the patent invalid. • Reform the FDA’s “citizen petition” process. Petitions are supposed to let Americans bring concerns about drug safety and effectiveness to regulators’ attention. But the process is being abused. From 2011-15, the FDA received roughly 125 “citizen petitions” asking it to take a specific action regarding a pending generic application. Almost all of these were filed by brand-name drug companies. According to my research, the FDA denied 92% of them, and 98% of those filed immediately before the expiration of a patent or exclusivity period. In a 2015 report, the FDA’s acting commissioner wrote that the agency was concerned the law “is not discouraging the submission of petitions that are intended primarily to delay the approval of competing drug products.” Congress could increase transparency by requiring the FDA to include more information in its annual report—such as a full list of these petitions and any delay in generic approvals that they caused. Lawmakers could also loosen requirements so as to give the FDA broader authority to dispose of petitions summarily. High drug prices directly harm Americans’ health. There is no excuse when they are the result of blatantly anticompetitive behavior. With these four steps, Congress could bring competition back to the market, with tangible benefits for millions. Mr. Carrier is a professor at Rutgers Law School. If Roy Moore Wins, the Senate Is Stuck With Him By Brian C. Kalt R ep. Morris Udall, on losing the 1976 presidential nomination to Jimmy Carter, quipped: “The voters have spoken—the bastards.” That applies to Alabama’s Dec. 12 U.S. Senate election. The voters will have their say, and if they elect Roy Moore despite his alleged sexual misconduct, the Constitution requires the Senate to seat him, and expelling him would violate congressional precedent. Senate Republicans have reportedly discussed refusing to seat Mr. Moore, but legally they cannot. In 1967 the House excluded Rep.-elect Adam Clayton Powell Jr. of New York for corruption. The U.S. Supreme Court, though traditionally reluctant to intervene in Congress’s internal housekeeping, declared that the House had crossed a line. The Constitution makes the House and Senate the judges of the elections and qualifications of their members but does not give them the power to create new qualifications. Nobody doubts that Mr. Moore meets the constitutional qualifications for the Senate seat: He is at least 30, a resident of Alabama, and a U.S. citizen 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 for at least nine years. The Constitution does not disqualify even convicted criminals from Congress. Instead, it leaves it to the voters to weigh candidates’ characters and abilities. If Alabamans conclude that Mr. Moore is a It would be legally bound to seat him, and there’s no precedent for expulsion. monster unworthy of the office, they will not elect him. But if they conclude that he is innocent or if they decide that, regardless of his prior conduct, he is better than the alternative, the Senate must seat him. While exclusion is not an option, expulsion is. The Constitution empowers the Senate to throw out any member it deems sufficiently contemptible, with no limits on the basis for such an action. But that requires a two-thirds majority—a high bar. Presuming Mr. Moore would not vote in his own case, that means at least 18 of the other 51 Republicans would need to vote against him. Colorado Sen. Cory Gardner, chairman of the National Republican Senatorial Committee, has already declared that if Mr. Moore is elected he should be expelled. Perhaps a Moore victory would cause a cascade of such sentiment among Republican senators. But that would overturn firmly established congressional precedent that expulsion is reserved for misconduct in office, not for actions the voters knew about before the election. The Supreme Court recognized this limitation in Powell’s case, quoting a House speaker who declared it “so frequently decided” that it was “no longer a matter of dispute.” The Senate debated the issue at length in 1893, when it dropped an expulsion case on the assumption that it had no jurisdiction over old misconduct. The Senate can disregard such precedents when it sees fit, and surely there is no shortage of senators willing to speak out against unlawful sexual conduct with minors. But senators are surely also aware that many of their numbers have been accused of all manner of wrongdoing—whether sexual, financial or both. Members from both parties will be wary of setting a precedent under which their entire pasts are subject to scrutiny and 66 votes are enough to end their careers. Senate Republicans can send a strong message to Alabama voters that Mr. Moore is unwelcome in the Capitol. Perhaps this will lead Alabamans to send his opponent to Washington instead. But flouting the establishment is Roy Moore’s brand, and Mr. Moore’s base may call the Senate’s bluff. If they do, the Senate will have to live with the voters’ choice, or else open up a can of worms it has seen fit to keep closed for over 220 years. Mr. Kalt is a law professor at Michigan State University and author of “Constitutional Cliffhangers: A Legal Guide for Presidents and Their Enemies” (2012). Yes, Nafta Is Good for My Children By Patrick J. Ottensmeyer T his week American, Canadian and Mexican negotiators will meet in Mexico City for the fifth round of talks to modernize the North American Free Trade Agreement. During the previous round of negotiations in Washington, I had the opportunity to meet with U.S. Trade Representative Robert Lighthizer, who leads the U.S. delegation. I wanted to explain how important Nafta is to my company and the communities we serve. Near the end of our meeting, Mr. Lighthizer asked me a more personal question: “How is Nafta good for your children and grandchildren?” Afterward, I spent a good deal of time thinking about this. I also took the time to consider how this trade deal will affect America’s place in the world for decades to come. I think I can now give a definitive answer to Mr. Lighthizer’s question. In answer to Robert Lighthizer’s thoughtprovoking question, it’s good for the country too. First, what does Nafta mean to contemporary society? U.S. exports to Canada and Mexico support 14 million American jobs, including tens of thousands in every state, according to the U.S. Chamber of Commerce. Each day, more than $3.3 billion is traded among the U.S., Canada and Mexico. That’s $1.2 trillion a year. In fact, about half of all Canadian and Mexican imports are made in the U.S. Nafta is especially beneficial for America’s farmers and ranchers. Agricultural exports to Canada and Mexico—vital to the health and strength of rural America’s economy—have quadrupled to $38 billion in 2016 from $8.9 billion in 1993, according to the North American Economic Alliance. Canada and Mexico are also the top two markets in the world for U.S.-made manufactured goods, with purchases of nearly $500 billion last year, a sum that tops the next 10 largest markets combined. America’s North American neighbors are also booming markets for U.S. services exports. In 2016 the U.S. recorded a trade surplus of $11.9 billion with its Nafta partners when manufactured goods and services are combined, data from the Chamber of Commerce show. Among the biggest beneficiaries of this commerce are America’s small and medium-size businesses. Some 125,000 of them sell their goods and services to Mexico and Canada. That’s what the world looks like with Nafta. What if it went away? Exports to Mexico and Canada could face tariffs and taxes, meaning that over time American exports would be replaced by products from other markets. Mexican purchases of corn and other agricultural commodities from the U.S. would almost certainly shift to places like Argentina, Brazil and the European Union. Given its concerns over Nafta, Mexico is actively pursuing new free-trade agreements to facilitate this. A recent study by Impact Econ estimates that more than a million U.S. jobs could be lost if Nafta ends. Congress is trying to overhaul the tax code to boost the economy and help wages grow. But if the White House pulls out of Nafta, it could lead to the reimposition of higher tariffs on North Americanproduced goods. This would effectively be a big tax increase on all U.S. production. I recently attended a business summit featuring high-profile Mexican business and government leaders, including President Enrique Peña Nieto. Chinese and Russian government officials and business leaders participated too, hoping to strengthen trade relations with Mexico—and put at risk the $600 billion of goods that Mexico purchases from the U.S. It was a chilling reminder that Nafta’s collapse would push Mexico, and perhaps Canada, to look elsewhere to stabilize their economies. As for Mr. Lighthizer’s thoughtprovoking question: I’m confident my three daughters and future grandchildren are better off because of Nafta. And a modernized agreement could help more. I believe the ambassador and President Trump can achieve that objective for all of us, and I want to help them do so. Mr. Ottensmeyer is CEO of Kansas City Southern, a railroad company with operations in the U.S., Mexico and Panama. 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 A20 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL. YO U WO N’T LI KE O U R BO OTS. You’ll love them. Handcrafted in Australia from the finest leather, our boots are unforgettable from the moment you pull them on. That’s why we’re inviting you to take a pair for 48 hours to experience them for yourself. Walk a mile, or two, and if they’re not the best boots in the world, simply return them. BOOK YOUR APPOINTMENT AT RMWILLIAMS.COM OR VISIT US AT 152 SPRING STREET, NEW YORK. 48 hour boot trial subject to terms and conditions available at intl.rmwilliams.com/terms-and-conditions/terms_conditions.html. Begins 12:01am 14th November 2017 and ends 11:59pm 17th December 2017. Boots must be returned prior to end of 48 hour trial in an undamaged condition (excluding reasonable wear and tear), otherwise credit card on file will be charged full purchase price. Trial excludes exotic leather, bespoke and made to order boots. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com TECHNOLOGY: PARIS IS COOL TO AIRBNB’S EMBRACE B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2578.87 g 0.23% S&P FIN g 0.06% S&P IT g 0.16% Wednesday, November 15, 2017 | B1 THE WALL STREET JOURNAL. * * * * DJ TRANS g 0.31% WSJ $ IDX g 0.40% LIBOR 3M 1.419 NIKKEI (Midday) 22246.07 g 0.60% Junk-Bond Selloff Hits Telecoms Rout is confined to sector for now, but it could spread if fund outflows get worse Bad Connection Prices of high-yield bonds have softened in recent days, with declines in the telecommunications sector reﬂecting a reduced outlook for some key ﬁrms. While selling so far has mostly been contained, some investors worry that high-yield bonds remain vulnerable An autumn pullback in the after a sharp rally over the past year. 30% Performance, total return Global stocks† 20 Global high-yield bonds junk-bond market is centered in the telecommunications sector, raising concerns that weakness in the group could 10 By Jon Sindreu, Christopher Whittall and Sam Goldfarb Nintendo To Bring Mario to Big Screen BY BEN FRITZ AND TAKASHI MOCHIZUKI Mario and Luigi are heading to the big screen in one of the highest-profile licensing deals by a Hollywood studio in years. Illumination Entertainment, which makes animated films for Comcast Corp.’s Universal Pictures, is close to an agreement with Nintendo Co. to make an animated “Super Mario Bros.” movie based on the 32-year-old videogame series about a pair of sibling plumbers who fight evil turtles and mushrooms in a fantasy kingdom, said people with knowledge of the discussions. Nintendo’s marquee characters have long been tempting to Hollywood, particularly now that the business is driven by globally popular franchise films featuring well known brands like Marvel superheroes, “Fast & Furious” and Harry Potter. The dozens of “Super Mario Bros.” games and their spin offs are widely believed to be the best-selling videogame franchise ever, having sold more than 330 million units total, according to Nintendo. Other Hollywood studios have sought the “Super Mario Bros.” rights in the past, according to people familiar with the discussions. Illumination, which made “Despicable Me,” “Minions” and “The Secret Life of Pets,” has been talking to Nintendo for more than a year about a movie, according to the people who know about the recent talks. The potential deal follows an agreement Universal’s themeparks unit made with Nintendo two years ago to build attractions based on Mario and other characters. A Nintendo spokesman declined to comment, as did an Illumination spokeswoman. Universal finances and releases films produced by Illumination, which it co-owns with the animation company’s chief executive, Chris Meledandri. Nintendo hasn’t made deals Please see MARIO page B2 –10 2015 ’16 ’17 Credit spreads* on high-yield bonds have risen this month, with increases centered in lower-rated debt Frontier Communications’ 11% bonds due 2025, daily prices, par value $100 Weekly net ﬂows into high-yield funds, four-week moving average 5 percentage points $88 $2 billion 4 Dollar B-rated 3 Euro B-rated Dollar BB-rated Euro BB-rated 2 1 86 1 84 82 0 80 78 –1 76 74 0 Aug. Sept. Oct. Nov. –2 Oct. Nov. 2017 *Yield premium over Libor, based on asset swap spreads †MSCI AC World Index Sources: FactSet (stocks); Bank of America Merrill Lynch (credit risk, bonds); MarketAxess (bonds due 2025); Thomson Reuters Lipper (ﬂows) self-reinforcing,” said Anthony Robertson, head of Strategic Value Credit at Cheyne Capital. “It can spiral out of control quickly.” As prices of telecom bonds fell, their average yield in the Bloomberg Barclays U.S. highyield index rose to 6.63% Mon- day from 5.45% a month earlier, according to Bloomberg Barclays. The average yield of the entire index climbed to 5.78% from 5.46%. Telecom companies have faced escalating challenges for some time. Growth in the U.S. wireless market has slowed THE WALL STREET JOURNAL. index has gained 15%. That makes the telecom sector the worst-performing of the S&P 500’s 11 groups. Telecom companies with junk-rated bonds are in an especially tough position. They include the third- and fourthPlease see YIELD page B2 and pricing pressure has chipped away at the profits of even the largest and most successful companies, such as Verizon Communications Inc. and AT&T Inc. Shares of telecom companies in the S&P 500 have fallen 20% in 2017, while the broader GE’s Cap Falls Off in Stock’s Tumble BY THOMAS GRYTA A two-day tumble has erased 13% from General Electric Co.’s share price, causing the conglomerate to lose its crown as the biggest U.S. industrial company as Wall Street digests a turnaround plan announced Monday. GE’s new chief executive, John Flannery, said Monday the company would cut its dividend in half and shed multiple divisions, and that it may take years for a recovery. The lack of a dramatic move, such as a breakup or dropping a major division, and the long timeline aren’t sitting well with investors who waited four months for the plan. “It will take a long time to work through GE’s operations toward eventually turning its fortunes around,” said Deutsche Bank analyst John Inch. The dividend cut was steeper than Wall Street expected, he said, which could exacerbate the selloff “as retail investors who previously counted on the GE dividend look else- INSIDE BIG TOY TIE-UP WOULD BE GAME-CHANGER RETAIL, B7 INVESTORS PICK THROUGH MALL OPERATORS PROPERTY REPORT, B8 Market Swap Boeing and GE market capitalization $300 billion GE 250 $155.2B 200 LUKE SHARRETT/BLOOMBERG NEWS spread if withdrawals from mutual and exchange-traded funds pick up momentum. The bond selloff has hit firms ranging from European giant Altice NV to U.S. operator Frontier Communications Corp., dragging down broader indexes of high-yield bonds— those deemed speculative by credit-rating firms. The selling so far has been largely contained, easing fears that the junk-bond retreat could be the first crack in a furious 2017 market rally that has taken major stock indexes around the globe to records, some investors said. Yet telecom makes up a meaningful chunk of high-yield indexes and exchange-traded funds and some analysts are concerned that retail investors, whose exposure to junk bonds tends to come through passive funds, may get spooked by the selloff. In a worst-case scenario, they could then dump other riskier assets like stocks, these analysts say. “This stuff can become very 0 Workers in South Carolina. The conglomerate plans a turnaround. where.” More than 40% of GE’s common shares are owned by retail investors, he said. GE shares fell 5.9% to $17.90 Tuesday—after falling 7.2% Monday—and are down 43% for the year. The decline has left GE with a market value of $155.23 billion, while Boeing Co. shares have enjoyed a 68% gain this year, leaving GE behind as Boeing’s market cap reached $155.9 billion. A year ago, GE was worth about $270 billion and Boeing $92.6 billion. Several investors said short sellers were active in GE stock, a strategy that is now cheaper with the lower dividend. Short sellers borrow a stock and then sell it, betting its 150 Boeing 100 $155.9B 50 0 2017 Source: WSJ Market Data Group THE WALL STREET JOURNAL. price will drop so it can be repurchased at a lower price and returned to the lender. If a stock pays a dividend, the short seller doesn’t get that dividend but must compensate the lender for it. A lower dividend generally reduces that cost. One New York hedge-fund manager said “everyone on Please see GE page B2 See more at WSJMarkets.com Apple Supplier’s Net Falls On iPhone Problems BY YOKO KUBOTA BEIJING—Foxconn Technology Group, the world’s largest contract manufacturer of electronics, posted a 39% drop in quarterly net profit amid production challenges dogging the flagship product of its biggest customer, Apple Inc. Apple’s iPhone X, which Foxconn assembles in China, went on sale Nov. 3, after it was plagued by a series of production problems among Apple’s suppliers. The troubles were centered on new technologies packed into the device, the most expensive iPhone ever, with a starting price of $999 and features including an edge-to-edge display and facial recognition. Taiwan-based Foxconn, known formally as Hon Hai Precision Industry Co., posted 21 billion New Taiwan dollars (about $695.5 million) in net profit for the three months to September, its statement showed Tuesday. That was lower than the NT$35.6 billion average estimate of analysts polled by the S&P Global Market Intelligence. The 39% decline in profit from a year earlier was Foxconn’s largest drop since 2008, during the global recession, according to data from S&P. Quarterly revenue in the latest period was NT$1.1 trillion, nearly flat from a year before. Hon Hai doesn’t give guidance or hold earnings conferences. Its shares closed down 0.9% on Tuesday. Apple hasn’t disclosed sales numbers for the iPhone X. The phone made its debut with long lines at Apple stores around the world and shipping delays of five-to-six weeks, showing that the company hadn’t ramped up production enough to meet demand. The delay had shrunk to three to four weeks in the U.S. as of Tuesday afternoon. The iPhone X is one of a trio of new iPhones that Apple released this year. The company started selling the lower-cost iPhone 8 and 8 Plus six weeks earlier. Chief Executive Tim Cook said when Apple reported quarterly results this month, that production of the iPhone X is “going well” but declined to say when supplies would catch up with demand. Mr. Cook acknowledged that forecasting demand for the devices has been challenging. “If we would have shipped all at once, that would have been our preferred scenario, obviously, Please see RESULTS page B2 HEARD ON THE STREET | By Nathaniel Taplin China Holds Key to Global Coal Industry The U.S. is coal country again, thanks to President Donald Trump. But in the real coal country—the one that sucks up half of global supply every year—demand for the black stuff is poised to deteriorate sharply over the next year. Investors hoping strong global growth and favorable U.S. policies will boost coal prices and stocks should instead focus on China. Winter is usually China’s peak coal season, but this time around environmental inspections, rebounding hydropower, and slowing realestate development are together painting a dire picture for demand. Figures released Tuesday showed Chinese power demand in October increased at the slowest rate since mid-2016. Production of nearly every other heavy in- dustrial product also slowed as a weaker property market and pollution crackdowns start to bite. Meanwhile, hydropower output rose 17% as the effects of a nasty drought faded. Coal power production went negative for the second month in a row, falling almost 3% on the year. The medium-term outlook is even worse. Drives to cut capacity in electricity intensive industries like aluminum and steel aren’t going away, meaning another structural step down in industrial power demand over coming years is likely. President Xi Jinping’s emphasis on a “better” life for Chinese citizens means tougher environmental enforcement is here to stay. Finally, a glut of cheap natural gas in Asia means that shutting down dirty coal plants in China is more affordable than in the past. The one really bullish fac- Off the Grid Chinese power output, change from a year earlier 40% Hydro Overall Coal 20 0 –20 2014 2015 2016 2017 Source: CEIC THE WALL STREET JOURNAL. tor for coal, ironically, is the huge debt China’s benighted coal firms are carrying. Chinese regulators have a strong incentive to keep coal prices from falling too far— and have strengthened price controls over the past year— to keep coal firms and their employees afloat. “Supplyside reform” goes only so far. Still, investors hoping coal stocks will catch a tailwind from the bullish sentiment lifting most industrial commodities are likely to be disappointed. Chinese firms like Hong Kong-listed Yanzhou Coal Mining and China Coal Energy have already sold off about 5% to 10% since midSeptember as coal prices have begun to flag. Share prices of Western producers like Glencore have also come under pressure. By contrast, rival Rio Tinto, the current darling of mining analysts, is rapidly selling down its own coal portfolio and recently cut its coal thermal output forecast for 2017 by about a quarter. Coal prices aren’t necessarily set to collapse, but optimists hoping that U.S. policies alone can rescue the global coal industry and push prices higher are in for a long, hard dig. B2 | Wednesday, November 15, 2017 INDEX TO BUSINESSES B Bank of America.........B2 Blackstone Group ..... B13 Boeing....................B1,B3 Bonanza Creek Energy .....................................B7 Broadcom .................. B20 Brookfield Property Partners....................B8 C Freeport-McMoRan...B19 Frontier Communications.......B1 G-H General Electric...B1,B19 GGP..............................B8 Glencore ...................... B1 Hamilton Beach Brands Holding....................B20 Hasbro.........................B7 HNA Group................B18 Hon Hai Precision Industry.....................B1 I-J Indivior........................B7 Infineon Technologies ...................................B20 Intel...........................B20 J.P. Morgan Chase......B2 Just Play.....................B7 K-M CBRE Group.................B8 CenturyLink.................B2 China Coal Energy ...... B1 CIT Group..................B20 Citizens Financial ..... B20 Comcast.......................B4 Comerica....................B20 Cree ........................... B20 D Keurig Green Mountain ...................................B20 Macerich......................B8 Mattel..........................B7 Metro-Goldwyn-Mayer .....................................B2 MSG Networks ........... B3 N R-S Range Resources......B19 Rio Tinto ..................... B1 Sandler O'Neill and Partners....................B8 SandRidge Energy ...... B7 Siemens.....................B20 Singapore Airlines......B3 SL Green Realty..........B8 Sprint .......................... B2 Starbucks..................B20 STMicroelectronics...B20 T Taubman Centers........B8 Tesla..........................B20 Thesys Technologies.B18 Time Warner..........B2,B4 TJX...............................B7 T-Mobile USA..............B2 U-V Umicore.....................B20 Universal Pictures......B1 Vanguard...................B18 Verizon Communications .....................................B1 Viacom.........................B4 VISA ............................ B2 W Wal-Mart Stores.........B8 Walt Disney................B4 Warby Parker..............B8 Warner Bros................B2 Westfield.....................B8 William Blair...............B2 E-F Netflix.........................B4 Newfield ExplorationB19 Nintendo......................B1 NXP Semiconductors ...................................B20 Eaton Vance..............B18 Emirates Airline ......... B3 Foxconn Technology....B1 P-Q Y-Z PayPal Holdings..........B2 Qualcomm.................B20 Yanzhou Coal Mining..B1 Zions Bancorp...........B20 Deutsche Bank .... B1,B18 Discovery Communications.......B4 INDEX TO PEOPLE A H P Aspbury, Peter............B2 Heymann, Nicholas.....B2 Palfrey, Patrick.........B20 Peruzzi, Larry............B19 B I Baele, Mike...............B19 Inch, John....................B1 R C K Chiavarone, Steve.....B20 Clark, Tim....................B3 Cryan, John...............B18 Kimishima, Tatsumi ... B2 Robertson, Anthony...B1 Rosenthal, Steven....B18 Rotrosen, John............B7 D Dimon, James.............B2 Dray, Deane.................B2 E Enders, Tom................B3 F-G Flannery, John.....B1,B19 Fuhrman, Peter...........B3 Guff, Mac .................... B2 L Lee, Joshua.................B7 Lipow, Andy..............B19 Lott, David..................B7 M-O Mallinson, Richard....B19 McGregor, Jim.............B3 Miller, Brendan...........B2 Miller, Jamie...............B2 Miyamoto, Shigeru.....B2 Mueller, Jeff ............... B2 O'Sullivan, Michael...B18 RESULTS Continued from the prior page but we didn’t have that choice,” Mr. Cook said in an interview at the time. Suppliers and contract electronics makers that rely heavily on Apple often are hit when production bottlenecks emerge in Apple products. Pegatron Corp., which assembles the iPhone 8, said last week that its quarterly net profit fell 32%, which analysts attributed to components shortages and labor issues. The production problems of the iPhone X included a short- YIELD Continued from the prior page largest wireless carriers, TMobile US Inc. and Sprint Corp., along with companies that still rely heavily on legacy landline assets such as Frontier and CenturyLink Inc. Representatives for those companies didn’t comment for this article. Bonds backed by Frontier and CenturyLink have dropped sharply after both companies reported lackluster third-quarter earnings along with downward revisions to projected earnings. Frontier’s 11% notes due 2025 are trading well below par at around 76 cents on the dollar, down from 85 cents at the end of last month, according to MarketAxess. In the case of Sprint, the recent bad news was the breakdown of merger talks with TMobile. Its 6.875% bonds due 2028 traded above 110 cents on the dollar as recently as 20% Year-to-date drop in shares of S&P 500 telecom companies Oct. 30 but were below par at 99.25 cents on the dollar on Tuesday. Challenges exist in Europe as well: For example, the chief executive of Altice quit last week and the Dutch-listed telecom is grappling with disappointing earnings and large debts. Altice bonds maturing in 2028 traded at 94 cents of face value late in the European afternoon Thursday, according to Tradeweb. They were trading above par as recently as early November. Some investors noted the selling followed a long rally in junk bonds that came as ultralow interest rates around the developed world pushed S Schütz, Alexander .... B18 Smith, Gordon.............B2 Stanley, Stephen........A2 T Tan, Adam.................B18 V Volkow, Nora...............B7 Z Zion, Isaac...................B8 age of components used in the facial-recognition system and manufacturing difficulties over the organic light-emitting diode screens, The Wall Street Journal has reported. Production of the iPhone X is likely to rise in coming months. Apple’s production volume rose around 3% in the third quarter to about 44 million iPhones from the previous quarter, research firm TrendForce said in a note. In the fourth quarter, that is anticipated to jump to 81 million phones, with the iPhone X expected to account for a third of that, TrendForce said. —Liza Lin in Shanghai contributed to this article. investors into high-yielding debt. In October, the extra yield to hold junk bonds relative to ultrasafe Treasury bonds was on the verge of reaching its lowest level since before the financial crisis. Problems largely confined to a specific set of companies shouldn’t be seen as a harbinger of a widespread market downturn, some observers said. “This is more about idiosyncratic risk,” said Jeff Mueller, a high-yield debt portfolio manager at Eaton Vance. Bonds issued by communications companies, a grouping that includes telecom as well as advertising, internet and media companies, are widely held. In the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund, the largest junk-bond ETF, with $18.5 billion in assets, communications-company bonds make up 24% of the portfolio, including five of the top 10 holdings. The ETF is down roughly 2% this month, erasing much of its 2017 gain. “We’ve had such low volatility for so long now that a move like the one we saw last week seems a lot more dramatic,” said Peter Aspbury, fund manager at J.P. Morgan Asset Management. Messrs. Aspbury and Mueller both said that the recent wobble gave them the opportunity to buy bonds they had already wanted at a cheaper price. Cash calls for high-yield bond funds haven’t been particularly large so far. The fourweek moving average of net flows from U.S. loan funds was $536 million in the week ended Nov. 8, according to Thomson Reuters Lipper. That result isn’t a big outlier when compared with the rest of the year. For outflows to surge, concerns would have to grow that a larger share of issuers is in danger of defaulting, and there is no sign of that yet, Mr. Mueller said. —Nick Kostov contributed to this article. Mobile Payments Stymie Chase BY EMILY GLAZER Many U.S. companies from startups to Apple Inc. have struggled to gain traction in the fast-growing world of mobile payments. The country’s largest bank is no exception. J.P. Morgan Chase & Co., run by chairman and CEO James Dimon, has made numerous splashes to promote its mobile offerings, including a television spot featuring a Ping-Pong playing Serena Williams. But the payoff has yet to come. Banks view mobile commerce as one of their biggest opportunities, but they still largely trail technology firms and nonbanks such as Visa Inc. and PayPal Holdings Inc. Still, banks are pushing to expand offerings to have them in place for the day when the general U.S. consumer flocks to paying with their phone as much as millennial consumers have begun to do or those in other countries such as China. J.P. Morgan’s newest focus is on Chase Pay, which is designed to make it easier for customers to pay with their smartphones in stores and online. The bank has spent about $100 million on it, according to people familiar with the matter. While J.P. Morgan doesn’t disclose financial details about Chase Pay, a May survey from Bernstein Research ranked it ninth among U.S. mobile wallets with only 6% of online shoppers saying they had used it in the previous year, a fraction of the 61% who said they used PayPal. The bank is now reframing its plans as more of a longterm play. J.P. Morgan executives still project that Chase Pay could at a minimum enhance its customers’ creditcard, debit-card and merchant relationships. Still, the app isn’t Chasing Rivals Percent of online shoppers using various mobile wallets over last 12 months 61% PayPal 20 Visa Checkout 16 Amazon Pay 12 Apple Pay 11 Android Pay Samsung Pay 8 MasterPass 7 Facebook 6 Chase Pay 6 Square Cash 5 Amex Express 5 James Dimon, the chairman and CEO of J.P. Morgan Chase. Source: Bernstein Research May 2017 survey widely used yet and the rollout with merchants has fallen behind schedule, according to people familiar with the matter. “We’re trying to get Chase Pay embedded in as many places as possible,” Mr. Dimon said at an industry conference in September. “We’ll see how it pans out.” It is a far cry from J.P. Morgan’s announcement of the product at a large financialtechnology conference two years ago in Las Vegas. The payment app’s struggles also contrast with the rapid migration the bank’s customers are making to mobile for variety of basic banking functions like watching balances and depositing checks. With payments, J.P. Morgan has been challenged by two factors: competitors have moved quickly while potential customers have moved slowly. Most Americans still prefer using their cards, along with cash and checks. While Chase Pay works through the bank’s cards too, there hasn’t yet been enough of an impetus to switch, analysts say. “Customers aren’t out there asking for a new way to pay,” says Brendan Miller, a principal analyst at Forrester Research Inc. “Too many of these players are focused on the payment, not the things that are going to drive the consumer to buy.” Other countries, notably China, have taken to mobile payments more quickly. There, payments are often integrated THE WALL STREET JOURNAL. It has spent $100 million on its latest bid to capture a bigger market share. into text messages, and analysts estimate the size of the mobile-payments market is 30 times or more the size of the U.S. business. In the U.S., rivals to J.P. Morgan have stressed other approaches, including Bank of America Corp., which have avoided their own branded mobile wallets. Meanwhile, J.P. Morgan joined a group of large banks in June in connecting their ex- isting smartphone apps to an industry consortium that developed a money transfer network known as Zelle to compete with PayPal’s Venmo. That effort replaced large parts of J.P. Morgan’s earlier mobile payment effort, Chase QuickPay, which now works through Zelle, even though the bank still uses the QuickPay name. The bank’s payment business, run by consumer-bank head Gordon Smith, is also competing with smartphone makers such as Apple and Samsung Electronics Co., and credit-card networks such as Visa and Mastercard. “We said from day one that changing customer behavior would be tough,” J.P. Morgan spokeswoman Trish Wexler said, in regards to Chase Pay. “But we’re Chase, and our customers expect us to lean into the future and learn what we can now so we’re ready when they are.” J.P. Morgan is laying the groundwork by signing on large retailers including WalMart Stores Inc., Best Buy Co. and Starbucks Corp. J.P. Morgan initially announced other big retailers through an industry consortium, including Target Corp., but didn’t roll out Chase Pay with some of them after the consortium dissolved. Chase Pay faces even more competition than it has seen so far. Wal-Mart, while still accepting Chase Pay, has been developing its own parallel wallet dubbed Wal-Mart Pay. In early 2018, stores including West Elm and Pottery Barn will start accepting both PayPal and Venmo for the first time. Meanwhile, a July survey from Morgan Stanley analysts found that PayPal was accepted at 377 of nearly 500 top online merchants while Chase Pay was accepted at only four. —Peter Rudegeair contributed to this article. GETTY IMAGES A BUSINESS & FINANCE MISHA FRIEDMAN/BLOOMBERG NEWS 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. Airbnb..........................B4 Airbus..........................B3 Albemarle..................B19 Alkermes.....................B7 Allianz .........................B8 Altice USA.............A2,B1 Amazon.com..........A1,B3 AMC Networks ........... B4 Apple...........................B1 AT&T............................B1 THE WALL STREET JOURNAL. * **** The dozens of ‘Super Mario Bros.’ games and their spinoffs are widely believed to be the best-selling videogame franchise ever. MARIO Continued from the prior page for movies or TV shows based on any of its marquee characters since 1993’s commercially and critically disastrous “Super Mario Bros.” starring Bob Hoskins, John Leguizamo and Dennis Hopper. Since then, its only cinematic efforts have been 20 inexpensive children’s animated movies based on its “Pokémon” games that were produced by an affiliate. The most complicated issue in the negotiations between Illumination and Nintendo has GE Continued from the prior page Wall Street” was betting on further GE declines. Now investors are trying to decide on the appropriate multiple, whether the outlook is credible and where GE could end up if the economy slows down, the person said. RBC Capital analyst Deane Dray downgraded GE stock to sector perform from outperform, citing the unexpected length of a turnaround. “While the market was not expecting any quick fixes, we believe that CEO John Flannery’s highly anticipated plan fell short been making the Japanese videogame company feel confident it will be involved enough in the creative process, said one person close to the talks. Nintendo’s creative guru, Shigeru Miyamoto, who created Mario Bros., has been part of the talks and likely will be a producer on the movie, along with Mr. Meledandri, this person said. The agreement could allow Illumination to make multiple “Super Mario” movies, though only one is planned, this person added. It would be animated by Illumination’s Paris studio Mac Guff and is in the early stages of development, meaning it likely wouldn’t come out for of expectations regarding the scope of the business model/ portfolio changes,” Mr. Dray said in a note to clients. Nicholas Heymann, an analyst with William Blair & Co. who still has an outperform rating on the stock, is less pessimistic. He sees the shares under pressure for a few weeks, but expects them to settle around $20 to $21. Both Mr. Flannery and GE Chief Financial Officer Jamie Miller on Tuesday defended the dividend cut as a necessary step so the extra cash can be allocated in different and more flexible ways. —David Benoit and Ben Eisen contributed to this article. several years. Nintendo CEO Tatsumi Kimishima said in an interview last year with Japanese newspaper Asahi Shimbun that the company was in talks with several Hollywood studios about making movies based on its games. In an April analyst briefing, Mr. Kimishima said the company is making theme-park and movie deals less for the potential profits from licensing than for the additional sales revenue that could come from “synergy with the dedicated videogame business.” Videogame movies have had a relatively poor record at the box office. Last year’s “Warcraft” was a flop in the U.S., though it did well in China, and other disappointments have included adaptations of “Doom,” “Need for Speed,” “Prince of “Persia” and “Assassin’s Creed.” Still, they remain attractive to Hollywood. Time Warner Inc.’s Warner Bros. and MetroGoldwyn-Mayer Inc. in March will release a reboot of “Tomb Raider,” after a pair of films in the early 2000s based on the games about an explorer and action hero had mixed results. An “Angry Birds” animated movie last year performed decently and a sequel is scheduled for 2019. 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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. * * Wednesday, November 15, 2017 | B3 BUSINESS NEWS BY ROBERT WALL DUBAI—After stepping back from making a big expected order for Airbus SE’s largest jet, the A380 super jumbo, Emirates Airline on Tuesday ratcheted up the pressure on the plane maker, demanding it commit to making the unprofitable plane for at least another decade before it buys any more. “The undertaking that Airbus will have to make if we go ahead with a further order is that the plane will continue in production for a period of minimum of 10 to 15 years,” Emirates Airline President Tim Clark said at the Dubai Air Show. Emirates is the A380’s biggest customer, with 100 of the jets in service and a further 42 already on order. It had been expected to order more than 30 more of the planes in a deal that would have a list price of around $15 billion. The Persian Gulf carrier’s reluctance is the latest headwind for the A380—a program that Airbus has sunk more than $20 billion into as it tried to upstage Boeing Co.’s popular 747 jumbo jet. Emirates’ negotiating ploy also spotlights the dependence of the A380 on support from one airline. Airbus’s effort to develop the double-decker plane that can seat more than 500 passengers initially ran behind NUMBER OF PLANES AIRLINE 0 25 50 schedule and costs skyrocketed. The Toulouse, France-based company has failed to make money on the program because of a dearth of orders, and after more than a decade of production each A380 still costs more to build than Airbus can charge. An A380 costs $436.9 million at list price, though airlines typically get discounts. The bleak outlook for the A380 was punctuated this month when the first of the jets, once operated by Singapore Airlines, was placed in long-term storage after the airline opted not to extend an initial lease period. The carrier is the second biggest A380 customer, having ordered 24. Airbus officials have in the past suggested they are concerned about the financial viability of the program, though Chief Executive Tom Enders last month said he expected the aircraft to remain in production another decade. Its difficulties come at a time when big four-engine planes such as the A380 and Boeing’s 747 have fallen out of favor with carriers, forcing the plane makers to cut production plans. Emirates underscored the popularity of smaller longhaul jets with its commitment this week to take 40 Dreamliners in a deal valued at more than $15 billion at list price. 75 100 125 150 Emirates Airline Singapore Airlines Qantas Dubai Dependence Amedeo Lufthansa British Airways Qatar Airways Airbus A380 orders from Dubai-based Emirates Airline dwarf those of the plane's other top 10 buyers Korean Air Etihad Airways Air France Source: the company THE WALL STREET JOURNAL. Madison Square Garden Seeks Buyer for WNBA’s New York Liberty NATHANIEL S. BUTLER/NBAE/GETTY IMAGES Airbus, Emirates Face Off Over Jet The Madison Square Garden Co. is looking to sell its Women’s National Basketball Association franchise, the New York Liberty. The New York Liberty, established in 1996, is one of the original eight teams in the women’s professional basketball league. The company said Tuesday it is actively seeking a buyer to take over immediate operations of the franchise. MSG, which also owns Madison Square Garden—home of the Liberty—and the National Basketball Association’s New York Knicks, was the team’s first owner. (At left, Sugar Rodgers of the Liberty, with the ball.) “This was a difficult decision for us, which we made after carefully assessing the needs of our business,” Chief Executive James Dolan said. The announcement about seeking a buyer of the team comes one day after the company said David O’Connor would step down from his roles as CEO and president. The company named Mr. Dolan as his interim successor. —Austen Hufford Amazon Bends to Beijing’s Call Rule change prompts sale of company’s cloud hardware in China to local partner Amazon.com Inc. on Tuesday said it has sold computing equipment used for its cloud services in China to its local partner, Beijing Sinnet Technology Co., in a move analysts said underscores the increasingly chilly atmosphere for foreign companies in the country. Amazon Web Services said it took the step to meet new Chinese regulations. “Chinese law forbids nonChinese companies from owning or operating certain technology for the provision of cloud services,” AWS said. “As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner.” The company said it remains committed to China and that customers would continue to receive AWS cloud services. It also said the deal didn’t involve any transfer of intellectual property. Beijing Sinnet, in a regulatory filing late Monday, said it was paying up to 2 billion yuan ($300.8 million) for the computing assets. Peter Fuhrman, chairman of technology investment bank China First Capital, said Amazon’s decision illustrates China’s tightened grip on those companies that provide internet services. “The key policy brickwork is now done,” Mr. Fuhrman said. “The Chinese internet, in its broad entirety, will become even more comprehensively managed by the Chinese state.” Mr. Fuhrman added that such protectionist moves will ultimately limit China’s access to the latest technology and could hurt its competitiveness over the long term. Jim McGregor, chairman of the Greater China region for public-affairs consultancy APCO Worldwide, said Amazon’s move should be viewed in light of China’s Made in China 2025 plan to promote the nation’s domestic enterprises and technologies. “China has a different plan and it has the power,” he said. U.S. tech companies in China are dealing with a different world “and it would be corporate suicide not to acknowledge it,” he added. Amazon and other U.S. companies, including Apple Inc., have faced increased pressure in the country in recent months in the face of the Chinese government’s desire to control cyberspace. Early this year, China’s Min- istry of Industry and Information Technology informed foreign companies with cloud ventures that new operating licenses would be applied by year-end. Amazon’s deal with Sinnet could clear the final obstacles for AWS to get such licenses, analysts from Citic Securities said in a note Tuesday. Late last year, China’s MIIT also issued draft measures calling for tighter technical cooperation between foreign cloud operators and their local partners. The proposed rule change triggered complaints from more than 50 U.S. lawmakers, that the change would force U.S. companies to essentially transfer ownership and operations of their cloud systems to Chinese partners. MIIT officials had no comment. —Yang Jie in Beijing and Liza Lin in Shanghai EVERYONE JUST SHOPS ONLINE NOW. Evolved over billions of years... THE TRUTH Physical stores generate 90.7% of all retail sales* Protecting your enterprise in one hour. The immune system has evolved over billions of years. But it takes just one hour to install one in your enterprise. Using machine learning, Darktrace can tell friend from foe, and catches threats that others miss. Even if they’ve never been seen before. From quiet insider threats and zero-day attacks, to hacks of connected devices or industrial networks, our software sees it and responds. Find out what’s lurking inside your systems. darktrace.com LEARN THE TRUTH: SHOPPINGFORTHETRUTH.COM Machine learning for cyber defense *According to the U.S. Census Bureau; ICSC Research WSJ. Custom Studios is a unit of The Wall Street Journal advertising department. The Wall Street Journal news organization was not involved in the creation of this content. 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. B4 | Wednesday, November 15, 2017 TECHNOLOGY More than 200 North American cities and regions are lining up to apply for Amazon's second headquarters, describing their cities in ﬂowery terms. THE BEST OVERALL Amazon's preferences include a ready-to-go location by 2019. But it's also looking at cultural ﬁt, the cost of living and the favorability of the state tax climate for business. Dallas, Boston and Washington, D.C., rank highest. Tech labor force College population* Fiscal health Culture ﬁt Cost of living State tax rank DALLAS Better HOW THIS WORKS The Wall Street Journal used Amazon's criteria, interviews with site-selection experts Worse and people familiar with Amazon's thinking to come up with a list of potential locations for a new corporate center. Cities are ranked based on factors in the company's request for proposals, using an equally weighted index to average the cumulative scores. The more bars there are in each category of the radar plots, the higher the ranking. BOSTON THIBAULT CAMUS/ASSOCIATED PRESS Amazon’s Second Home WSJ.com/Tech D.C. A cap will limit the days per year that hosts can rent dwellings. MOST TECH TALENT NEW YORK One of the most important factors in the search for a new headquarters is ensuring enough tech talent to keep Amazon growing. MOST SEATTLE-LIKE ATLANTA Amazon has called the Seattle area home since the company was founded in Chief Executive Jeff Bezos' garage in 1994. The company plans to add 50,000 employees there over 10 to 15 years, including many software developers, and that will require enough trained people in the area. The online retail giant's rapid growth there has meant rising property prices and more trafﬁc, but has helped transform the city into a tech hub. D.C. CHICAGO OTHERS WE LOOKED AT NASHVILLE CHICAGO AUSTIN DENVER MINNEAPOLIS SEATTLE NEWARK† Denver has a strong cultural ﬁt, with the most craft breweries per capita among these cities. Top universities such as Northwestern and the University of Chicago feed into the Chicago metro area. Methodology: COLLEGE POPULATION: Percentage of population that is college educated. TECH LABOR FORCE: Total labor force in a tech occupation. Includes tech jobs not in the tech industry. FISCAL HEALTH: Cities are scored on metrics including ratio of general fund balance to expenditures; ratio of pension contributions to total government-wide revenues; change in unemployment rate in 2015; and change in property values in 2015. COST OF LIVING: Estimated cost of living for mid-management households by weighting different consumer expenditure categories. CULTURAL FIT: Sites that reﬂect ‘Cultural Community Fit’ and ‘Community/Quality of Life’ as outlined in the Amazon request-for-proposals, including strong universities, diverse population, recreational opportunities and an overall high quality of life. Excludes government incentive packages. STATE TAX RANK: Based on tax rates, including corporate, income and property taxes. One is lowest tax state, 50 is highest tax state. *Percentage of population that is college-educated. †Includes all of Northern New Jersey Sources: Green Street Advisors, Real Estate Analytics THE WALL STREET JOURNAL. BY CARA LOMBARDO There’s now a way to get about three dozen entertainment-oriented cable channels for $16 a month, so long as you can live without access to the big game. The online-TV service Philo launched Tuesday with a bundle of 37 channels, including Comedy Central, TLC, Food Network, AMC and A&E. It is the newest player in a sea of streaming offerings ranging from “skinny bundles” of channels to access to individual networks. The people behind Philo and the networks supplying its programming say it is a long overdue package aimed at cable TV “cord-cutters” who don’t watch sports and cable news channels. Skeptics see it as a roundup of less-popular networks with a limited market on their own. Philo subscribers will get access to a slate of channels owned by Discovery Communications Inc., Viacom Inc., Scripps Networks Interactive, A+E Networks and AMC Networks Inc. Its other channels include Nickelodeon, Animal Planet, History and MTV. The five companies supplying programming are also Philo’s main financial backers, together investing $25 million. Some of their networks aren’t part of the streaming TV bundles offered by the likes of YouTube and Hulu. Offering their own entertainment-focused bundle is a direct way of reaching cord-cutters. COMEDY CENTRAL/EVERETT COLLECTION Hello, Sports Fans, This Is Not for You Philo’s bundle includes Comedy Central, home of ‘South Park.’ For an entertainment-focused package, there are some holes. Properties from Comcast Corp.’s NBCUniversal such as Bravo and E! are missing, as are Time Warner Inc.’s TNT Paris Authorities Give Airbnb Plan Chilly Reception BY SAM SCHECHNER PARIS—Airbnb Inc. plans to curb rentals of some of its most popular listings in the French capital, expanding its bid to placate regulators in the U.S. and Europe—but not enough to satisfy some city officials here. The home-sharing firm said Tuesday it would start automatically capping the number of days a year that hosts can rent out dwellings in parts of central Paris—the company’s largest market by listings, with 65,000. That will effectively force some hosts to comply with the city’s legal limit on short-term rentals of noncommercial homes to 120 days a year—but without forcing hosts in other parts of Paris to do so. Airbnb’s decision to enforce a cap in parts of Paris is the first expansion of a measure the firm rolled out last year in London and Amsterdam, establishing it as a template in the company’s efforts to calm activists and regulators worldwide. Many cities argue that the firm’s short-term rentals make it more lucrative for property owners to cater to tourists than to rent out homes to long-term residents, and have sought to limit them. “We want to do our bit to address historic housing concerns in central Paris and help make this city a better place for everyone,” said Emmanuel Marill, Airbnb’s general manager for France. However, Paris officials dismissed the move as insufficient because it will block Airbnb listings only in the city’s first four arrondissements from be- and TBS. Philo also doesn’t include broadcast networks. Philo Chief Executive Andrew McCollum, who was a founding member of Facebook, said Netflix Inc. and other established services are failing to capture the social aspect of watching TV. Philo plans to add social features early next year to let users see what their friends are watching and sync viewing so people can watch shows together from different locations. Walt Disney Co. chief Bob Iger dismissed the idea of a Philo-like product when asked this year about lower-cost packages that exclude sports. “I don’t see how that’s practical in terms of gaining much penetration,” said Mr. Iger, whose company owns ESPN. Other Big Cities Win Concessions Airbnb has long denied having a significant impact on housing, but in recent years it has started making an effort to cozy up to local officials and soothe complaints. In March, the company settled a lawsuit it had filed against a tough San Francisco law by agreeing to help register hosts on behalf of the city. In Berlin, the company has lobbied to convince legislators to revise a law that makes it difficult for residents to rent out homes. One of the firm’s biggest Micro Trends, Macro Context. In Minutes. THE DAILY SHOT Speed-read the markets Get a complete look at the trends moving global markets with The Daily Shot. WSJ’s latest member-exclusive newsletter delivers a sophisticated, impartial view in 30-plus charts, every morning. Sign up at WSJ.com/dailyshot © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5150 ing rented beyond the 120-day limit without special authorization. That means it applies to tourist-filled neighborhoods like the Marais and the area around the Louvre Museum, but doesn’t include other popular areas like Montmartre or the Left Bank, even though they are also subject to the legal limit. “The law says illegal listings should be removed in all the arrondissements,” Ian Brossat, Paris’s deputy mayor in charge of housing policy, wrote on social media. “Last I heard, the law of profit doesn’t trump the laws of the Republic.” An Airbnb spokesman said the company put the cap where violations appear to be concentrated, in order “to address local problems where they are.” He added that “our goal is not to replace law enforcement.” Airbnb is implementing the automatic cap in Paris during a tense time for the company in France. Government officials have said they believe the company should pay more income tax in the country. And in December a new law—which the Airbnb lobbied against—will oblige Parisians renting out their primary residences on platforms like Airbnb to register with the city, and post registration numbers on listings. Owners renting apartments that haven’t been registered or go beyond the legal limit face fines of up to €50,000 ($58,600). City inspectors also mount operations to find and prosecute violators. Mr. Brossat said the city has issued fines to owners of illegal tourist apartments totaling €991,000 so far this year, three times the amount in all of 2016. concessions so far has been the voluntary curbing of its most prolific hosts—which the firm says represent a small sliver of its listings, but likely account for a larger slice of its revenue. So far in London, where it has applied a citywide cap, the company says the effort successfully has pared listings. The number of rentals that go over the city’s 90-day-a-year limit has declined from 21% of rentals before the rule to 7% this year, the company said in a September report. The rentals still over the limit include apartments with special authorization and those that went over the limit before the cap was applied, Airbnb said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B5 OPEN LETTER Interactive Brokers Group 777 South Flagler Drive West Palm Beach, Florida 33401 Thomas Peterffy Chairman November 14, 2017 J. Christopher Giancarlo Chairman, Commodity Futures Trading Commission Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 Re: Dangers of Clearing Bitcoin and Cryptocurrency Derivatives in Same Clearing Organization as Other Products Dear Chairman Giancarlo: I am the Chairman and founder of Interactive Brokers LLC, a futures commission merchant and broker-dealer with over $ 3.8 billion in regulatory net capital and over $1.2 billion in client margin funds (Interactive Brokers Group is publicly traded on Nasdaq with a market cap of over $22 billion). As a CME clearing member, we are deeply concerned with proposals that would allow Bitcoin and other cryptocurrency derivatives to be cleared in the same clearing organization as other products. This letter is to request that the Commission require that any clearing organization that wishes to clear any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from other products. There is no fundamental basis for valuation of Bitcoin and other cryptocurrencies, and they may assume any price from one day to the next. This has been illustrated quite clearly in 2017 as the price of Bitcoin has increased by nearly 1000%. Cryptocurrencies do not have a mature, regulated and tested underlying market. The products and their markets have existed for fewer than 10 years and bear little if any relationship to any economic circumstance or reality in the real world. Margining such a product in a reasonable manner is impossible. While the buyer (the long side) of a cryptocurrency futures contract or call option could be required to put up 100% of the value to ensure safety, determining the margin requirement for the seller (the short side) is impossible. Instituting daily price move limits on cryptocurrency derivatives does not solve the problem. In a runaway upward market for example (like the silver market in the 1980’s caused by the Hunt brothers), the futures price gets locked limit-up day after day with little or no trading and the short sellers are If the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency together with other products, then a large cryptocurrency price move that destabilizes members that clear cryptocurrencies will destabilize the clearing organization itself and its ability to satisfy its fundamental obligation to pay the winners and collect from the losers on the other products in the same clearing pool. Accordingly, even clearing members who do not wish to clear cryptocurrencies because they judge the risk to be too great cannot isolate themselves and their customers from a potentially catastrophic loss from cryptocurrency risk at the clearing organization. Thus, it is no answer for the proponents of clearing these products to suggest that objecting clearing members can simply charge very large margins or not offer cryptocurrencies at all. In a central clearing organization, all members are at risk for the activities of any member (and of the clearing organization itself). Unless the risk of clearing cryptocurrency is isolated and segregated from other products, a catastrophe in the cryptocurrency market that destabilizes a clearing organization will destabilize the real economy, as critical equity index and commodity markets cleared in the same clearing organization become infected. whole) from the unique risks inherent in clearing cryptocurrencies is to require that they be cleared in a separate clearing system, isolated from other products. We would be happy to discuss this with you or to provide any further information at your convenience. Sincerely, Chairman The Professional’s Gateway to the World’s Markets www.interactivebrokers.com AMERICAS GREENWICH CHICAGO WEST PALM BEACH MONTREAL EUROPE ZUG LONDON BUDAPEST ST. PETERSBURG TALLINN ASIA PACIFIC HONG KONG MUMBAI SHANGHAI SYDNEY TOKYO For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B6 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL. NEAL LIPSCHUTZ EDITOR, ETHICS AND STANDARDS The Face of Real News Neal Lipschutz and the standards team hold the WSJ newsroom to the highest principles of journalism, even in the face of adversity. In 2015, he helped ﬁght a court order barring the Journal from running a story about the controversial arrest of a stock analyst in India. Story updates meant giving the subject another chance to respond—and seek another injunction. But it was worth the risk to be accurate and fair. Real journalists and real news from America’s most trusted newspaper. WATCH HIS STORY AT WSJ.COM/NEAL #TheFaceOfRealNews Source: Pew Research Center, Political Polarization & Media Habits, 2014 © 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6163 THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B7 NY * * * * * BUSINESS NEWS For Toy Makers, a New Game Study Compares Addiction Drugs BY PAUL ZIOBRO BY JEANNE WHALEN JOHN SCIULLI/GETTY IMAGES Hasbro Inc. and Mattel Inc. combined would result in a toy company with a large but hardly dominant share in a highly fragmented industry. The two companies, which recently engaged in talks about a possible tie-up, would control just over one-third of the U.S. market for traditional toys and games, according to Euromonitor International Ltd. On a global scale, they would control 22% of overall sales. With a low barrier to entry, the toy industry is populated with hundreds of inventors and small firms seeking to create the next hit. Nevertheless, Hasbro buying Mattel would have a big impact on the sector. According to toy consultant Richard Gottlieb, inventors would have one less potential buyer of their ideas. Entertainment companies like Walt Disney Co. would no longer be able to play the two biggest companies off each other to extract the best terms on licensing deals. Retailers would face a supplier with much greater sway. “It’s highly destabilizing to an industry to have such powerful and prominent players in the industry having this kind of disruptive situation,” Mr. Gottlieb said. “If you’re an inventor, licensor or retailer, this is a concern.” In some categories, a united Hasbro-Mattel would have much greater heft. For example, in model vehicles, which includes Mattel’s Hot Wheels line of toy cars, the two would control 62% the U.S. market, according to Children are seen playing with toys at a kids’ benefit in West Hollywood, Calif., in 2016. Euromonitor data analyzed by Wells Fargo. They would control more than half of the market for dolls and action figures. Analysts were split as to whether the combination would trigger antitrust objections. BMO analyst Gerrick Johnson said the rise of competitors like Lego A/S, Spin Master Inc. and Just Play LLC “offer potential counterbalances to a Mattel/ Hasbro combo.” An important issue for regulators would be whether the deal would make it easier for the companies to raise prices, “since they wouldn’t discipline each other,” said Seth Bloom, an antitrust expert with Bloom Strategic Counsel PLLC. Toy Tie-Up U.S. market share by category Hasbro Mattel Model vehicles Dolls Action ﬁgures Baby Games Ride-on vehicles Outdoor & sports Total 0% 10% 20% Source: Euromonitor International via Wells Fargo Securities 30% 40% 50% 60% THE WALL STREET JOURNAL. ADVERTISEMENT Career Opportunities To advertise: 800-366-3975 or WSJ.com/classiﬁeds CAREERS 6 & 7+ * * 6 / 0 /0 8 % $ " ( * + * # 9 % :! $ 9 " :! $ ; < ;)## 9 1 + 9*,= +9 +9* >?,#' & @ $ , & 9 1 *+ = 8 = < % $ A = 8 ?<+B? C + D ' >19 /$ >9 , ?& + &) ,& 1#@ ,& ! ?2A + + * +B? + C+ " ""< 1 *64#/" 6 + + ??* 6 /0 /0 1 + 9 + 1 ( > * + > #$ " '%( ( " " 5 $ 5 $ +" * " " # 4 2 (" '%( ) $ <E ( = ( = <3/' %(= = < = = < = < = = = #$ 1 + +B? & *" 9 E<<" "< < < " + F4-G5.H.I F; /I F+ A"I / " #,# * E > ??*" , $ )5.G2 + 3 * J2.)5 E " ;" A K E ? / 0 /0! # > > " !"# #$ E = = 8 ; ' +B?= % = < = = 8 = " + # /0 /0" ' & + " '%" ( #" #" *" #" *+" " M : " $" A " &" 9" ? 9 * " " '%" : " $" <E ; 1 = ;)##=+3 = ; = C? C+? 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Visit the job link at: https://tinyurl.com/ydf5em3v to learn more about the position and to apply online, or contact David.Lemmon@chsinc.com. Equal Opportunity Employer ! !" #$ " " " %" & % " '%( ( ) $" * + "," $ --.*+/0 ))- 1" 2) +" .) 3" / 0 /0 .--45" / " 6 & / 0 6 > #% ; + & / 0 /0 ,+ A" '% L * + * # % $ 5! $ 4 % " $ 5! $ = ,+ A= $ = $ % = & = $ = 8 3C % 3C 3C 3C = 3C = $ * , 9 = $ % = 8 ; *K 9 ;+ ; + 3C +" ""< +'.H2-" 6 , ' , Phelps County Regional Medical Center in Rolla , MO is looking for a General Cardiologist. Send CV to Beth Hedrick email@example.com Hitachi Vantara, New York, NY: Senior IT Systems Administrator: Analyze, test, troubleshoot & evaluate existing network systems. Mail resume: B. Vara, HVIS, 5960 Inglewood Dr, Ste 200, Pleasanton, CA 94588. Job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closely watched trial comparing two opioid-addiction treatments found patients had a harder time beginning treatment with one of the medications, leading to more relapses in that group. Among patients who were able to start treatment, the medications were similarly effective at preventing relapse, a finding researchers and the study’s sponsor called particularly important. The study, sponsored by the National Institute on Drug Abuse, was one of the first to compare the monthly injection Vivitrol to the daily oral drug Suboxone. As opioid addiction has spread rapidly across the U.S., physicians have been awaiting better evidence about the relative merits of various treatments, making the NIDA-financed trial an important event. The 570 opioid-dependent patients in the trial were randomly assigned to one of two groups. About 57% of those in the Suboxone group experienced a relapse during the sixmonth study, according to results published in The Lancet. A higher proportion—65%— experienced relapse in the Vivitrol group. Much of the difference came down to the greater difficulty of starting Vivitrol treatment in the first place, the researchers said. Patients must stop taking opioids for several days and be fully detoxified before they can get their first Vivitrol shot—a step some addicts find hard to take because it requires them to experience some withdrawal symptoms. Suboxone treatment can begin immediately, making it an easier option. Fewer study participants were able to start treatment with Vivitrol compared with Suboxone—about 72% versus 94%—and many of those who failed to begin Vivitrol treatment relapsed, the researchers said. The subset of 474 patients who were able to start treatment with one of the drugs experienced similar efficacy—just over half of patients in each group experienced a relapse. Most physicians already knew Vivitrol treatment was harder to start, but there was little data showing how well it compared with Suboxone once a person successfully began treatment, said Joshua Lee, a physician and associate professor at New York University School of Medicine, who helped lead the study. “What is new, and what the study was really about from our perspective, was: What happens if you are able to get people onto one or the other medication?” said his colleague, John Rotrosen, another leader of the study and a physician and psychiatry professor at New York University School of Medicine. “What we were really hoping, and what we found was...the two medications would be sufficiently equal, so providers and patients and families really recognized they have a choice,” he said. Nora Volkow, director of NIDA, said it was important to 65% Portion of Vivitrol group that relapsed, versus 57% for Suboxone have different treatment options because some people don’t respond to certain medications. “It’s the same as with antidepressants...it’s better to have a diversity of treatments,” she said. In an editorial also published in The Lancet, an addiction specialist not involved in the study said the similar performance of the drugs after treatment initiation was consistent with the results of a smaller study conducted recently in Norway. The physician, David Lott, an addiction psychiatrist at University of Illinois College of Medicine in Chicago, said the Lancet study adds “to growing scientific literature supporting the effectiveness and safety” of Vivitrol. But he added that the “substantial induction hurdles for [Vivitrol] continue to present challenges.” Vivitrol maker Alkermes PLC said the study “provides additional evidence supporting the use of Vivitrol.” Suboxone maker Indivior PLC said it couldn’t immediately comment. Rates of death, overdose and other adverse events were roughly equal in the two study groups, the researchers said. There were five fatal overdoses in the study—two in patients in the Vivitrol group and three in the Suboxone group. BUSINESS WATCH BONANZA CREEK ENERGY TJX SandRidge Near Pact Same-Store Sales For Oil-and-Gas Firm Retreat in Rare Miss SandRidge Energy Inc. is nearing an agreement to buy Bonanza Creek Energy Inc. for about $750 million, according to people familiar with the matter. A cash-and-stock deal between the oil and gas producers could be announced Wednesday, the people said. Bonanza Creek and SandRidge were among the largest of more than 120 North American oil-and-gas producers bankrupted in recent years by plunging oil prices. Their expected agreement comes amid a gradual rebound in oil prices and could be a sign that more energy companies with adjacent operations will seek mergers yielding economies of scale. —Dana Mattioli and Ryan Dezember TJX Cos., which operates TJ Maxx, Marshalls and HomeGoods stores, didn’t increase its same-store sales for the first time since 2009, a rare miss for a company that has avoided many of the problems weighing down the retail sector. TJX blamed hurricanes and warmer-than-expected weather for the same-store sales decline in its biggest unit, which includes TJ Maxx, and flat growth overall. A year earlier, the metric grew by 5%. Earnings were in line with analysts’ expectations. For the third quarter, TJX reported a profit of $641 million, or $1 a share, up from $549.8 million, or 83 cents, a year earlier. Revenue rose 7% to $8.76 billion. Analysts surveyed by Thomson Reuters had expected revenue of $8.86 billion. —Cara Lombardo 3 #$ $ 9 + *" ??* 3 #$ $ 9 /0 /0 3 #$ $ " '%( ( " 3( # 4 $ 4 $ " 1 $ < E = #$ = = ( = < = A 9 " 9 E<<" "< < < " + 4-JJ:.: F; /I F+ A"I / " #,# Notice of Redemption of Banco Central de la República Dominicana Collateralized Discount Bonds Due 2024 ISIN: XS0052684601 In accordance with the provisions of the Fiscal Agency Agreement dated August 30, 1994, the Issuer has elected to redeem and pay in full the remaining outstanding principal in the amount of US$4,461,000.00 together with all interest due in the amount of US$51,301.50 for a total final amount of US$4,512,301.50 on November 30, 2017. Citibank Agency & Trust 15th of November, 2017 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B8 | Wednesday, November 15, 2017 THE PROPERTY REPORT Malls Pursue Lesser-Known Stores Idea is to feature young retailers that began online and built millennial followings SL GREEN REALTY Allianz to Buy Stake In Times Square Site SL Green Realty Corp. agreed to sell a 43% stake in a Times Square office tower to Allianz Real Estate in a deal that values the 1.86 million square foot tower at $1.95 billion, the companies said. The real-estate investment division of Allianz Group, of Germany, is purchasing the stake in 1515 Broadway, home to the headquarters of media giant Viacom Inc. as well as the Minskoff Theater on the ground level. SL Green will realize cash proceeds of about $416 million, which it will use “for other investment opportunities going forward,” according to Isaac Zion, the real-estate investment trust’s co-chief investment officer. —Peter Grant INDOCHINO BY ESTHER FUNG MALL REITS Indochino’s store at the Tysons Galleria mall in Virginia. Malls are seeking retailers that appeal to web-savvy customers. how to market in this new era.” In the past, a startup without a big portfolio of physical stores could hardly get space in class-A malls. Landlords had doubts about their longevity and their ability to operate stores successfully. “They would never put you in a Century City or Short Hills mall,” said Corey Bialow, chief executive at Bialow Real Estate LLC, a firm that represents retail tenants. “Mall developers are now very aggressive in enticing online retailers with favorable rent deals.” The risk for landlords in embracing younger retailers is that their tenants have shorter track records and might peter out. Clothing retailers Boston Proper and Nasty Gal Inc., for example, opened physical stores but eventually closed them after a few years. But analysts think betting on upstarts is a risk worth taking at a time when the retail industry is being reshaped by online shopping and changing consumer preferences. “If you don’t do that today, you’re not innovative and I think your real estate actually has intrinsically lost value,” said Anthony Buono, executive managing director of retail services at CBRE Group, a real-estate consultancy. “A lot of increase in value in real estate is because of the newest and most interesting, most unique brands that have been formed in food and beverage, in digital, in women’s ready to wear, in men’s ready to wear, in other forms of entertainment uses,” Mr. Buono added. The volume of physical stores occupied by retailers that started online stood at 140,209 square feet this year through the end of October, up from 15,435 square feet in 2012, according to real-estate data company CoStar Group, which tracked 22 online retailers that have stores in the country’s top 300 enclosed malls and lifestyle centers. While this is a growing fraction of the overall square footage of retail space, it is still small, representing just 0.05% of the occupied rentable building area of these malls. The leases tend to be at least one year and don’t include occupants of pop-up stores that are typically dedicated to a regular rotation of new retailers. Not all landlords are benefiting equally from online retailers’ expansion from clicks to bricks. These new tenants are picky over where to open a store and prefer to be in markets where they already have online customers and where there are potential new customers. They usually stick with class-A malls in areas with large populations and higher incomes. “We look at each region and we don’t have a mandate to be mall-specific,” said Drew Green, chief executive officer of Indochino, a Vancouver, British Columbia-based retailer of custom-made suits. The company recently opened its 18th showroom in Seattle and plans to open 18-20 more in the U.S. next year. It has stores in malls such as Tysons Galleria in McLean, Va., and King of Prussia Mall in Pennsylvania as well as street-front locations in New York, San Francisco and Boston. “We definitely reject more [offers of space] than we approve,” said Mr. Green, adding that Indochino is profitable and its stores break even in six to 12 months. Some emerging retailers that started online, as well as older retailers, said that having a physical store minimizes costs of shipping and returns. Short Sellers Had A Very Bad Week Short sellers of mall operators have gotten pounded over the past week or so as expectations of corporate takeouts and heightened activist investor interest in landlords of Class A malls drives up share prices. Short sellers of six of the seven U.S. mall REITs suffered declines in their positions of $280 million from Nov. 4 to Monday, according to data from financial-analytics firm S3 Partners. On Nov. 3, Macerich Co. , a Santa Monica, Calif.-based mall REIT, announced changes to severance pay for senior executives in the event of a change in control of the company. In the past week, speculation that Brookfield Property Partners could make an offer for Chicagobased mall REIT GGP Inc. and news that activist investor Daniel Loeb’s hedge fund Third Point had acquired a 1.2% stake in Macerich fueled gains in A-mall REITs. —Esther Fung TASOS KATOPODIS/GETTY IMAGES Landlords of top U.S. malls used to rent most of their space to the biggest national retailers, which boasted the best credit and the most desirable selection of goods. Now they are looking beyond big chains and toward lesser-known retailers and startups that started online but have amassed customers and brand recognition. The reason: Such retailers tend to offer novel products that resonate with web-savvy customers, particularly millennials, a massive group of potential customers landlords are eager to cultivate. Century City, a recently opened 1.3 million-square-foot open-air mall in west Los Angeles, has a larger-than-average number of tenants that started out as e-commerce retailers. Candy boutique Sugarfina, clothing retailers Bonobos—now a unit of Wal-Mart Stores Inc.—and Untuckit, eyeglass retailer Warby Parker and Amazon Books all have opened stores in the center, which had been renovated by Westfield Corp. Some of these stores are showrooms and don’t carry inventory so customers will have their purchases delivered to them or they could pick up their purchases at the store later. Such stores take up less square footage. “The nature of retail is changing dramatically, but consumer desire for new and unique products is still very strong,” said Peter Huddle, executive vice president of development at Westfield. “Many of these digital brands are ahead of the curve when it comes to understanding what is driving consumer sales and PLOTS & PLOYS Shoppers visit Chicago’s Water Tower Place on Black Friday, typically the year’s busiest day for stores. Class-A Sites Draw Buyers BY ESTHER FUNG “Market knowledge is where it starts. I’ve come to rely on their insight to make the best decisions for our company.” – FR EDER ICK SHINN, R EA L ESTATE M A NAGER MITSUBISHI INTERNATIONAL CORPORATION EXPERIENCE EXTRAORDINARY transwestern.com Mall operators are in the bargain bin, and some big-time investors are picking them over. Brookfield Property Partners LP’s $14.8 billion proposal to acquire the shares of Chicago-based GGP Inc. that it doesn’t already own is fueling expectations that other operators of so-called Class A malls are becoming acquisition targets—or will face pressure from their investors to carve up their best assets for sale. Shares of A-mall real-estate investment trusts Taubman Centers Inc., Macerich Co. and GGP all have risen between 14% and 24% since the start of November after having underperformed the broader REIT market since August 2016. “Two weeks ago everyone hated malls—‘the mall is dead.’ But now the mall is alive,” said Alexander Goldfarb, managing director at investment bank Sandler O’Neill & Partners. The offer by Brookfield, which already owns 34.4% of GGP, has been anticipated since another Brookfield affiliate acquired mall owner Rouse Properties in 2016 and took it private. There also are hopes that Brookfield will sweeten its current $23 per share offer for GGP. Shares of GGP rose to as much as $23.97 Monday on news of the unsolicited bid. “We’re pretty disappointed in the offer price,” said Matthew Werner, managing director at Chilton Capital Management LLC, whose mutual fund has invested in shares of GGP Bargain Bin Malls and regional shopping centers are lagging behind the other major commercial property categories. Total returns 10% 8 6 4 Apartments 2 Industrial Equity REITs 0 –2 Ofﬁce –4 Regional malls Shopping centers –6 –8 –10 J F M A M J J Source: Green Street Advisors and had been gradually increasing its holdings of the mall REIT in the past year. “Hopefully this is the beginning of the negotiations. If it is the final offer this would be a negative for mall REITs.” As recently as Nov. 2, Brookfield Chief Financial Officer Bryan Kenneth Davis said in an earnings call the company valued GGP at about $30 a share, up from about $29 in the second quarter because of a pickup in its earnings. Shares of mall REIT Macerich Co. also have shot up in the past week, on expectations of activism or a potential deal after its board of directors on Nov. 3 approved an increase in severance pay for senior executives if there is a change in control of the company. A S O THE WALL STREET JOURNAL. Those expectations were further fueled after hedge fund Third Point, run by billionaire Dan Loeb, on Thursday disclosed it had a stake of 1.73 million shares, or 1.2% of the Santa Monica, Calif.-based REIT as of Sept. 30. Macerich didn’t respond to requests to comment and Third Point declined to comment. Hedge fund Elliott Management has also acquired a stake in Bloomfield Hills, Mich.-based Taubman Centers and has been in talks with company executives, according to a person familiar with the matter. Elliott is known as an activist investment firm that often buys stakes in companies and agitates for changes, including possible asset sales. Taubman Centers declined to comment. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B9 STAND OUT TO THE UNKNOWN BUYER. 5,230 WEB PAGE VIEWS 159,637 SF 8 APPROVED BUYERS DOWNTOWN OFFICE 46 BIDS ACCEPTING OFFERS ACCEPTING OFFERS ACCEPTING OFFERS 901 W. 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E& % # & % % %% > G # $ + ; ' & % #H & # "" $ & # 4 B D& : 2 % # 7 = % 1& % & 3 D I# % #& % $ & % & $ 5 < < 6 $ $ # B D ' & % 6 % #" 47 % 6 # B D ' # &5 4@6 # & % " $ ) " # & # & # , % %# $ & # # 4! 6 # / " @ $ " % > %# ) & # ;< J " #& #& & $ K 5 THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B11 ADVERTISEMENT REITS: Real Estate Investment Trusts To advertise: 800-366-3975 or WSJ.com/classiﬁeds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| Wednesday, November 15, 2017 ADVERTISEMENT REITS: Real Estate Investment Trusts To advertise: 800-366-3975 or WSJ.com/classiﬁeds ! ! " # " $ % &$ # '%&#() * + ,) - ! + . + '.+( + / ,0 # + 12 + .! 34 $ $ " 2 + 50 6! ! #4 7 8 4 ! ! 9 ! " " " ! +1 : ; * 6 ! ! :< ; - ! " + / "< 4 " ! 4 1 + ) = > ! $? 3 @# - - 4 / 9 '.+A( 4 6 ! ! " ! > B - 50 .+A ! ! C* 1 + 4 "" 4 / ! 9 "$ ! %&# 4 - + D > ! " ! 4 ! $ ! !E $ 4 4 4 7 C $ 4 $ 4 9 / . 1 &C & F .! 34 >- ! 1 4 ! ! " # # $ % & '()) *+) & ', - . " / # "" -& " * *!!)$ " , # $% #' ! " " ( " ! % " $ )! " !# ! ! *$ + $ $ ! ! !" # !" $ $ % !" # $ % $& % $& # $& !# $! THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B13 NY THE PROPERTY REPORT ADVERTISEMENT The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds BUSINESS FOR SALE BUSINESS OPPORTUNITIES Solar Panel Own Your Own Equipment Leasing Company Manufacturer Midwest solar panel manufacturer for sale, including automated production line and 5,000 completed panels. Includes access to two state of the art "breakthrough" technologies. Interested parties can email firstname.lastname@example.org, or call 419-297-5972 MICHAEL NAGLE/BLOOMBERG NEWS ! " # $ %&' ( $ ) * BUSINESS OPPORTUNITIES Stuyvesant Town-Peter Cooper Village, an 11,200-unit complex in Manhattan, will display Rentlogic’s grade in its leasing office. Startup Grades Landlords BY LAURA KUSISTO For most New York residents, it is easier to find out whether the local hamburger joint has a mouse problem than if an apartment they are about to rent has no heat in the winter or a cockroach infestation. Rentlogic, a New Yorkbased startup, aims to create more transparency by assigning letter grades to apartment buildings based on housingcode violations data, which track issues such as climate control, mold, bed bugs and vermin infestations. In its biggest deal yet, Rentlogic recently signed an agreement with Stuyvesant Town-Peter Cooper Village, the 11,200-unit complex in Manhattan that is owned by Blackstone Group LP, to display the complex’s rating in its leasing office. Rentlogic rates all apartment buildings in the city using publicly available data supplemented by in-person inspections, and assigns them a grade of A through F. Renters can download a browser extension that allows them to see buildings’ ratings when they are searching for apartments online on most real-estate websites. Landlords have the option to purchase a plaque from Rentlogic to display on their property or in their leasing office, showing prospective tenants they have received a high grade. The price of the plaques ranges from $1,000 to $10,000 a year. The model is similar to the one used in the bond-ratings industry, in which bond issuers pay one of the ratings firms to grade their debt. Because Rentlogic makes money only off landlords that receive a high grade, there could be incentive to produce more landlord-friendly results. Yale Fox, Rentlogic’s founder, said he recently hired a mathematician to audit the com- pany’s algorithm. He also plans to install an independent 21-person board made of tenant advocates, real-estate executive and city officials. Rentlogic operates only in New York City, but Mr. Fox said he plans to expand over the next two years to most major North American cities. Mr. Fox said he has received funding from friends, family and venture capitalists and is trying to raise an additional $3.5 million. Mr. Fox founded the company in 2013 based on his experience working as a landlord of a rental property in Toronto and with a problem landlord in New York City. He found traditional forms of tenant advocacy had limited persuasive power because they had minimal effect on landlords’ bottom lines. “It ends up being a rent strike or a protest, which works really well sometimes and not other times. It’s a lot of people yelling back and forth. If you’re a billionaire landlord or a slumlord, you don’t really care,” he said. Landlord groups say they have concerns about relying on code violations, which track not only big problems, but also minor ones such as a missing light switch cover or an absent sign. Mr. Fox said the results are weighted based on the severity of the violation. When Blackstone purchased Stuyvesant Town two years ago, the property had recently improved from a “C” grade to a “B” grade. It had 122 violations over a 2½-year period under the previous owner. Since Blackstone bought the property, it has accumulated 37 violations and now has an “A” grade, according to Rentlogic. Rick Hayduk, chief executive of StuyTown Property Services, said the rating is an “independent validation of our efforts.” ! " #! $%!& '()*+,-*.',( For B2B equipment vendors only. Multiply your revenues, profits, income streams and net worth. Completely turnkey. Free qualification analysis. www.Vikencapital.com/turnkey 509-309-8977 Exotic Car Investment Opportunity Established exotic car dealership is seeking an additional private floorplan line of credit of $3M-$10M. 8% interest fully secured by vehicles. Possible equity. Car benefits for the investor. 561-729-7900 Protect your CASH & RETIREMENT Accounts before the next market correction. 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All Rights Reserved. www.cooktravel.net (800) 435-8776 ADVERTISEMENT Business Real Estate & Services To advertise: 800-366-3975 or WSJ.com/classiﬁeds % # & ' !& ( ! !! )*+ " ## # # $ ! ! "" #$ !"" #!!$ "%&' ! ! ! !! ! -./- 012 " #$%%& $'()%(%* "+ ,,, THE WALL STREET JOURNAL. B14 | Wednesday, November 15, 2017 NEW HIGHS AND LOWS WSJ.com/newhighs 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 Tuesday, November 14, 2017 52-Wk % Sym Hi/Lo Chg Stock Stock NYSE highs - 113 AberdeenGrChinaFd GCH Accenture ACN AlliantEnergy LNT Ameren AEE AEP AEP AmerWaterWorks AWK Amphenol APH AquaAmerica WTR AristaNetworks ANET AtmosEnergy ATO Avangrid AGR BCE BCE BeazerHomes BZH BlkRkMuniIncm BBF CBRE Group CBG CMS Energy CMS CantelMedical CMD CatchMarkTimber CTT ChinaGreenAg CGA Coca-Cola KO CommunityHlthcr CHCT ConEd ED Cott COT DCT Industrial DCT DTE Energy DTE DaqoNewEnergy DQ 12.51 -0.1 145.50 0.7 45.23 2.0 64.70 1.8 77.44 1.7 90.76 1.3 89.16 0.6 37.12 1.8 228.86 0.9 90.78 1.1 52.65 2.6 48.46 0.5 21.71 3.4 15.80 0.4 42.23 ... 50.71 1.9 101.48 1.6 13.27 1.2 1.52 8.4 47.48 1.5 29.16 3.7 89.01 1.5 16.53 1.0 60.98 ... 115.70 1.2 44.49 6.7 52-Wk % Sym Hi/Lo Chg Stock DominionEner D DriveShackPfdB DSpB DukeEnergy DUK ElPasoElectric EE EquityLife ELS EvercoreA EVR EversourceEner ES Exelon EXC FidNatlFin FNF FirstIndRlty FR FirstEnergy FE GTT Comm GTT Gallagher AJG GlobusMedical GMED GreatPlainsEner GXP HanoverIns THG HawaiianElec HE HollyFrontier HFC HomeDepot HD Honeywell HON DR Horton DHI IDACORP IDA IONGeophysical IO Insperity NSP InterXion INXN IronMountain IRM JanusHenderson JHG JonesLang JLL KB Home KBH 83.04 26.01 91.14 59.85 90.86 84.65 65.85 42.46 40.12 32.30 35.06 37.60 65.12 38.04 34.03 107.18 37.37 43.27 168.14 147.60 47.91 98.04 15.30 108.45 56.91 41.18 37.39 151.13 28.69 1.2 0.2 1.3 2.8 -0.1 0.7 1.6 1.5 2.9 -0.1 2.5 0.5 1.8 1.3 1.0 0.2 1.4 2.4 1.6 0.4 1.2 2.0 1.7 -0.6 0.2 ... -0.6 1.3 0.7 52-Wk % Sym Hi/Lo Chg LambWeston LW LifeStorage LSI LiveNationEnt LYV MI Homes MHO MagnaChipSem MX ManchesterUnited MANU Marcus&Millichap MMI MiXTelematics MIXT NRG Energy NRG NRG Yield C NYLD NRG Yield A NYLD.A NTTDoCoMo DCM NamTaiProperty NTP Navistar pfD NAVpD NewIrelandFundRt IRLr NewJerseyRscs NJR NewRelic NEWR NexPointResidentl NXRT NextEraEnergy NEE NextEraEnergyUn NEEpQ NextEraEnergyUn NEEpR NorthstarRltyEur NRE OaktreeSpecNts24 OSLE Oppenheimer A OPY OwensCorning OC PBF Energy PBF PGT Innovations PGTI PNM Resources PNM PhoenixNewMedia FENG 54.01 89.63 46.33 34.42 13.35 19.35 31.37 11.52 29.06 20.15 19.91 25.06 12.73 18.00 0.31 45.08 54.97 29.21 158.55 71.02 57.62 14.40 25.26 24.90 83.44 32.65 15.38 44.90 6.87 Fund Data provided by Tuesday, November 14, 2017 Net YTD A NAV Chg %Ret Fund E American Century Inv 44.90 -0.21 Ultra American Funds Cl A 31.76 -0.08 AmcpA p AMutlA p 41.09 -0.08 27.41 -0.03 BalA p 12.91 +0.01 BondA p 62.75 +0.02 CapIBA p CapWGrA 52.13 -0.09 56.77 -0.06 EupacA p 63.34 -0.16 FdInvA p 51.38 -0.16 GwthA p 10.35 -0.02 HI TrA p 40.98 -0.15 ICAA p 23.32 -0.03 IncoA p 44.85 -0.03 N PerA p 47.62 -0.04 NEcoA p NwWrldA 66.07 -0.29 55.96 -0.09 SmCpA p 13.02 -0.01 TxExA p 45.22 -0.10 WshA p B Baird Funds AggBdInst 10.88 +0.01 CorBdInst 11.23 +0.01 BlackRock Funds A GlblAlloc p 20.20 -0.02 BlackRock Funds Inst 22.93 -0.05 EqtyDivd 20.33 -0.02 GlblAlloc 7.76 -0.02 HiYldBd StratIncOpptyIns 9.91 -0.02 Bridge Builder Trust NA ... CoreBond D Dimensional Fds ... 5GlbFxdInc 11.01 EmgMktVa 29.83 -0.20 EmMktCorEq 22.23 -0.10 ... IntlCoreEq 14.09 19.81 -0.05 IntlVal 21.21 +0.02 IntSmCo 23.06 -0.02 IntSmVa US CoreEq1 21.94 -0.04 US CoreEq2 20.78 -0.05 35.65 -0.05 US Small US SmCpVal 37.85 -0.11 US TgdVal 24.63 -0.11 38.74 -0.14 USLgVa Dodge & Cox Balanced 108.14 -0.32 13.70 -0.09 GblStock 13.81 +0.01 Income 45.60 -0.24 Intl Stk 199.24 -0.90 Stock DoubleLine Funds NA ... TotRetBdI Net YTD NAV Chg %Ret Fed TF A p 11.97 -0.01 3.2 NA ... NA IncomeA p RisDv A p 60.60 -0.16 16.1 Edgewood Growth Instituti 28.7 EdgewoodGrInst 29.54 +0.01 33.0 FrankTemp/Franklin C NA ... Income C t 18.4 FrankTemp/Temp A 13.2 NA ... GlBond A p Federated Instl 12.2 NA ... StraValDivIS 6.42 +0.02 11.8 Growth A p 3.1 FrankTemp/Temp Adv Fidelity 11.6 NA ... GlBondAdv p 500IdxInst 90.36 -0.19 17.2 20.8 500IdxInstPrem 90.36 -0.19 17.2 28.5 500IdxPrem 90.35 -0.20 17.2 18.5 ExtMktIdxPrem r 62.02 -0.16 13.0 Harbor Funds 22.2 IntlIdxPrem r 42.91 +0.04 21.6 CapApInst 76.00 -0.21 5.7 69.20 +0.03 SAIUSLgCpIndxFd 13.85 -0.03 17.1 IntlInst r 14.4 Harding Loevner 10.0 TMktIdxF r 74.81 -0.16 16.4 NA ... IntlEq 26.9 TMktIdxPrem 74.79 -0.17 16.4 32.5 USBdIdxInstPrem 11.58 +0.01 3.0 28.4 Fidelity Advisor I Invesco Funds A 21.7 NwInsghtI 33.32 -0.07 24.8 11.20 -0.03 EqIncA 4.9 Fidelity Freedom 16.66 -0.03 12.9 14.7 FF2020 14.42 -0.02 13.9 FF2025 18.05 -0.03 16.2 John Hancock Class 1 FF2030 15.91 -0.01 Freedom2020 K 16.67 -0.02 NS LSBalncd 17.06 -0.03 LSGwth 3.8 Freedom2025 K 14.42 -0.02 NS John Hancock Instl 4.1 Freedom2030 K 18.05 -0.04 NS Freedom2035 K 15.14 -0.03 NS DispValMCI 23.92 -0.03 JPMorgan Funds 11.1 Freedom2040 K 10.64 -0.02 NS MdCpVal L 39.73 +0.05 Fidelity Invest JPMorgan R Class 23.61 -0.06 13.8 Balanc 12.3 11.63 +0.01 CoreBond 87.71 -0.29 32.9 BluCh 11.4 126.67 -0.21 29.5 6.7 Contra 126.68 -0.20 29.6 ContraK 3.8 10.21 -0.03 9.8 Lazard Instl CpInc r 41.10 +0.02 23.4 EmgMktEq 19.40 -0.10 NA DivIntl 182.83 -0.51 33.7 Loomis Sayles Fds GroCo 14.12 -0.02 GrowCoK 182.79 -0.51 33.8 LSBondI 7.91 ... 3.4 Lord Abbett A InvGB 11.27 +0.01 3.9 ShtDurIncmA p 4.26 -0.01 2.1 InvGrBd 52.50 -0.06 14.6 Lord Abbett F 26.3 LowP r ... 52.46 -0.06 14.7 ShtDurIncm 4.26 LowPriStkK r 29.9 105.68 -0.49 22.5 23.0 MagIn 108.70 -0.44 36.4 OTC 20.9 23.11 -0.05 15.8 Metropolitan West 24.0 Puritn 10.65 +0.01 21.9 SrsEmrgMkt 21.30 -0.15 35.7 TotRetBd 10.65 +0.01 15.2 SrsGroCoRetail 17.95 -0.04 34.4 TotRetBdI 10.02 +0.01 TRBdPlan 16.17 ... 26.3 SrsIntlGrw 12.9 10.76 +0.02 17.5 MFS Funds Class I 6.1 SrsIntlVal 40.34 +0.01 1.7 TotalBond 10.65 +0.01 3.7 ValueI MFS Funds Instl 3.4 Fidelity Selects 25.32 +0.08 210.66 -3.66 21.0 IntlEq 12.0 Biotech r Mutual Series First Eagle Funds NA ... GlbDiscA 60.30 -0.10 11.1 GlbA 8.1 15.0 FPA Funds 34.72 ... 7.7 3.9 FPACres Oakmark Funds Invest 19.7 FrankTemp/Frank Adv NA ... NA EqtyInc r 33.77 -0.09 11.2 IncomeAdv FrankTemp/Franklin A 84.27 -0.29 Oakmark 7.48 ... 5.6 OakmrkInt NA ... NA CA TF A p F Net YTD NAV Chg %Ret Fund 18.73 6.61 9.91 16.84 26.12 16.15 19.62 1.85 16.15 2.17 9.71 3.02 47.53 20.15 22.15 12.56 56.69 9.14 14.31 8.35 7.43 12.54 10.53 9.66 0.41 6.98 9.02 4.09 1.96 6.99 26.15 10.33 16.93 8.83 5.19 NA NA NA NA H 34.2 18.5 NA I 7.2 J 12.7 16.1 11.4 9.1 3.5 L 22.2 6.5 2.0 2.3 M 2.7 3.0 3.1 12.6 25.0 NA O 11.0 16.3 NA -8.1 -2.9 -5.9 -2.4 -1.9 -0.4 -0.9 -0.5 -0.1 -6.1 -0.7 ... -2.5 -1.0 -0.7 -1.8 -2.2 -1.9 -6.1 -1.2 -2.0 -2.3 -1.2 -6.9 -4.4 -1.3 -2.0 -0.9 -3.9 -2.8 ... -2.1 -5.0 -1.6 -3.3 Net YTD NAV Chg %Ret Old Westbury Fds MuLTAdml 11.68 -0.01 14.84 -0.02 15.7 MuLtdAdml 10.94 -0.01 LrgCpStr Oppenheimer Y MuShtAdml 15.76 -0.01 NA ... NA PrmcpAdml r135.35 -0.18 DevMktY 42.80 +0.24 23.4 REITAdml r 120.68 -0.23 IntGrowY SmCapAdml 68.05 -0.19 ... STBondAdml 10.41 ... STIGradeAdml 10.66 Parnassus Fds 10.75 +0.01 TotBdAdml 44.16 -0.09 13.3 ParnEqFd TotIntBdIdxAdm 21.92 +0.01 PIMCO Fds Instl NA ... NA TotIntlAdmIdx r 29.75 -0.04 AllAsset 10.26 +0.01 4.7 TotStAdml 64.42 -0.14 TotRt 14.08 -0.01 TxMIn r PIMCO Funds A 39.56 -0.09 NA ... NA ValAdml IncomeFd WdsrllAdml 68.40 -0.32 PIMCO Funds D NA ... NA WellsIAdml 65.17 +0.02 IncomeFd WelltnAdml 73.51 -0.08 PIMCO Funds Instl NA ... NA WndsrAdml 78.75 -0.19 IncomeFd VANGUARD FDS PIMCO Funds P 26.37 -0.04 NA ... NA DivdGro IncomeP Price Funds HlthCare r 208.21 -0.68 97.16 -0.08 33.8 INSTTRF2020 22.47 -0.01 BlChip 29.67 -0.02 13.3 INSTTRF2025 22.73 -0.02 CapApp 34.64 -0.07 11.6 INSTTRF2030 22.91 -0.03 EqInc 69.37 -0.15 16.9 INSTTRF2035 23.10 -0.04 EqIndex 70.13 -0.10 31.7 INSTTRF2040 23.29 -0.04 Growth 73.11 -0.62 23.7 INSTTRF2045 23.43 -0.04 HelSci 39.55 -0.04 35.3 IntlVal InstlCapG 39.12 -0.04 19.12 -0.01 25.0 LifeGro IntlStk 33.03 -0.04 15.07 -0.01 17.6 LifeMod IntlValEq 26.85 -0.02 91.57 +0.03 21.5 PrmcpCor MCapGro 26.73 -0.05 31.32 -0.07 7.8 SelValu r MCapVal 32.97 -0.05 54.76 -0.10 26.4 STAR N Horiz 27.07 -0.03 9.48 +0.01 3.5 STIGrade N Inc 10.66 ... OverS SF r 11.26 -0.01 24.1 TgtRe2015 15.89 ... 23.15 -0.01 13.4 TgtRe2020 31.52 -0.02 R2020 17.85 -0.01 15.2 TgtRe2025 18.47 -0.02 R2025 26.30 -0.02 16.7 TgtRe2030 33.36 -0.04 R2030 19.22 -0.02 18.0 TgtRe2035 20.49 -0.03 R2035 27.62 -0.03 19.0 TgtRe2040 35.27 -0.06 R2040 38.70 -0.05 15.0 TgtRe2045 22.15 -0.04 Value PRIMECAP Odyssey Fds TgtRe2050 35.64 -0.06 35.99 -0.02 25.7 TgtRetInc Growth r 13.55 -0.01 Principal Investors ... TotIntBdIxInv 10.96 DivIntlInst 13.81 -0.01 25.5 WellsI 26.90 +0.01 Prudential Cl Z & I 42.56 -0.05 Welltn 14.49 +0.01 5.5 WndsrII TRBdZ 38.54 -0.18 VANGUARD INDEX FDS 238.55 -0.51 500 Schwab Funds ExtndIstPl 201.04 -0.50 40.33 -0.09 17.2 SmValAdml 54.67 -0.13 S&P Sel 10.71 +0.01 TotBd2 17.78 -0.03 TotIntl 64.39 -0.14 TotSt TIAA/CREF Funds 19.31 -0.04 16.4 VANGUARD INSTL FDS EqIdxInst 34.02 -0.03 IntlEqIdxInst 20.13 -0.01 21.6 BalInst DevMktsIndInst 14.10 -0.01 Tweedy Browne Fds 28.20 -0.07 12.6 DevMktsInxInst 22.04 -0.02 GblValue 81.47 -0.20 ExtndInst GrwthInst 70.80 -0.15 10.51 +0.01 InPrSeIn VANGUARD ADMIRAL 235.39 -0.50 500Adml 238.58 -0.52 17.2 InstIdx 235.41 -0.51 34.01 -0.03 11.0 InstPlus BalAdml CAITAdml 11.80 -0.01 4.7 InstTStPlus 57.79 -0.12 CapOpAdml r154.03 -0.40 24.0 MidCpInst 40.86 +0.02 36.82 -0.21 26.1 MidCpIstPl 201.51 +0.10 EMAdmr EqIncAdml 76.16 -0.06 13.6 SmCapInst 68.05 -0.19 ... ExtndAdml 81.47 -0.20 13.0 STIGradeInst 10.66 10.75 +0.01 ... 1.9 TotBdInst GNMAAdml 10.49 GrwthAdml 70.80 -0.14 24.6 TotBdInst2 10.71 +0.01 HlthCareAdml r 87.84 -0.29 15.9 TotBdInstPl 10.75 +0.01 HYCorAdml r 5.89 -0.01 5.9 TotIntBdIdxInst 32.89 +0.01 25.79 +0.03 2.1 TotIntlInstIdx r118.96 -0.18 InfProAd IntlGrAdml 93.98 -0.17 39.6 TotItlInstPlId r118.98 -0.19 64.43 -0.14 ... 3.6 TotStInst ITBondAdml 11.38 39.56 -0.09 ITIGradeAdml 9.78 +0.01 4.0 ValueInst LTGradeAdml 10.56 +0.03 8.8 MidCpAdml 184.96 +0.10 14.7 ... 7.2 Western Asset MuHYAdml 11.42 ... MuIntAdml 14.16 -0.01 4.5 CorePlusBdI NA P 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. Net YTD NAV Chg %Ret Fund 2.1 1.8 1.5 0.4 0.2 2.1 0.6 -0.1 ... 0.4 0.2 1.4 -0.6 0.3 0.5 1.3 2.2 0.9 0.9 1.2 0.6 -2.4 4.2 1.0 0.5 3.0 1.7 -0.7 2.0 NYSE lows - 129 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. Fund 91.76 49.81 22.71 51.54 67.25 51.73 31.88 16.90 53.71 106.38 122.62 70.56 40.50 93.85 93.83 17.96 47.10 55.00 25.93 28.17 76.62 903.75 4.88 109.71 122.63 9.08 69.58 27.79 51.85 52-Wk % Sym Hi/Lo Chg Stock AlticeUSA ATUS AmberRoad AMBR AmericanRenal ARA AnteroMidstream AMGP AnteroMidstream AM ApolloSrFRFd AFT Ardagh ARD AvonProducts AVP BT Group BT BellatrixExplor BXE BlkRk2022GlbIncm BGIO BlueApron APRN BuckeyePtrs BPL CBL AssocPfdE CBLpE CBL AssocPfdD CBLpD CNX Coal CNXC CardinalHealth CAH CenterCoastMLP CEN CenturyLink CTL ChannelAdvisor ECOM ClearBridgeAmEn CBA ClearBridgeEnMLPFd CEM ClearbridgeEngyMLP EMO ClipperRealty CLPR CobaltIntlEner CIE CoeurMining CDE C&SMLPIn&EnerOpp MIE CommunityHlthSys CYH EngGr-Cmg CIG COPEL ELP Culp CULP CushingTotRetFd SRV 43.25 -0.2 DieboldNixdorf DBD AZZ 8.40 -8.4 Duff&PhelpsUtil DUC AGRO AGNpA 608.74 -1.3 Duff&PhelpsSelEn DSE PinnacleWest PNW PortlandGenElec POR PrefApartment APTS Progressive PGR Prologis PLD PublicServiceEnt PEG PulteGroup PHM PureStorage PSTG RobertHalf RHI Salesforce.com CRM SempraEnergy SRE SiteOneLandscape SITE Square SQ SunComms SUI TE Connectivity TEL TRI Pointe TPH Toll Bros TOL TransUnion TRU TsakosEnergyPfdD TNPpD TwoHarborsPfdA TWOpA TysonFoods TSN US BancorpPfdA USBpA Valhi VHI VarianMed VAR VMware VMW Vonage VG WEC Energy WEC WW Ent WWE XcelEnergy XEL 1.2 ... 2.7 0.6 -1.2 0.5 2.6 1.9 0.5 1.5 1.0 0.3 3.3 2.9 3.7 1.6 1.1 6.7 1.0 0.9 0.4 0.5 0.3 0.4 0.5 4.1 2.7 AZZ 2.4 Adecoagro 17.1 AllerganPfdA Mutual Funds | WSJ.com/fundresearch Explanatory Notes 52-Wk % Sym Hi/Lo Chg Stock S T V 5.9 2.4 1.2 24.4 6.1 11.2 1.2 2.1 3.2 2.0 23.1 16.4 22.3 11.2 10.8 7.9 11.1 14.7 14.3 15.8 11.6 13.0 14.3 15.5 16.8 17.3 23.2 15.6 12.3 20.5 14.6 15.1 2.0 9.5 11.5 13.0 14.2 15.5 16.7 17.3 17.3 7.0 2.0 7.9 11.0 10.7 17.1 13.0 6.5 3.1 23.0 16.3 11.0 22.4 22.4 13.0 24.7 2.2 17.2 17.2 16.4 14.7 14.7 11.2 2.1 3.2 3.1 3.2 2.1 23.2 23.2 16.4 11.2 W ADVERTISEMENT Business Real Estate & Auctions To advertise: 800-366-3975 or WSJ.com/classiﬁeds COLORADO AUCTIONS ! ! " "#" $ AUCTIONS & ' %&&'() *'( +,-. /01 (1 /(2&) 3/2'&) 2&3& (1 /'(2' /' '4''( ' ///( *' () 2' 44&251 6, &/ &*2%/) % 7 2* .,,,,,, %/( 4'' 6+ ,,, ' /( '/4(2'/ 663 (2 643 2*3& . 3& + ' 3& 68 .,6+ && %2%/ /() ./(2&) 44&25 6,,, /0 (1 2&'& '%' 9,,, /0 ( 27& *1 %&&'() 2%4 ) 2' (3 (''( 72 / *('1 ! (&" 2(2' 6 2# 2&( 2 *&/) 7( '%3&2%/ 42('( %//1 &*2%/) *% 2*& 6 ,,,,, %/( 24'' 8 ,,,, ' /( '/4(2'/ 22' (2 .43 2*1 :, ' 1 ' 3& 68 .,6+ NA 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg Stock 67.95 -1.7 3.25 -6.9 14.04 -0.6 14.01 -0.4 6.33 -0.5 1.15 ... 34.81 -2.2 15.08 -1.0 10.27 3.7 12.95 -2.2 10.30 -8.3 10.86 -1.5 4.48 1.1 13.68 -2.0 11.00 -2.1 12.65 -0.3 9.04 -1.4 0.21 -9.5 15.85 -0.1 17.46 -5.9 21.30 -3.6 28.63 -4.5 34.86 -0.3 5.70 -2.9 8.14 -3.0 19.42 -2.4 8.27 -0.5 3.63 -4.6 11.35 0.1 4.28 -0.5 35.62 -0.3 4.43 -2.8 14.10 -0.1 9.28 -3.3 14.69 -2.3 12.52 -2.2 8.20 -4.8 17.27 -0.2 36.00 0.8 19.85 -5.5 4.14 -1.9 20.80 -1.5 4.78 -0.8 4.12 0.3 14.61 -7.0 16.40 -2.1 64.84 -1.1 0.80 -22.8 10.36 -3.6 58.80 ... 6.86 -27.7 27.90 -1.5 15.75 -3.4 29.55 -4.7 15.16 -5.0 8.05 -1.0 10.10 -2.2 10.77 -3.4 10.57 -1.2 9.86 -0.2 6.41 -0.6 10.92 ... 12.75 -1.1 10.20 -1.0 7.32 -1.7 11.45 -0.2 22.65 -4.8 9.63 -3.5 11.66 -29.9 7.47 -0.5 8.56 -3.3 14.49 -1.1 9.83 -2.1 1.18 -1.7 39.78 0.1 23.70 -0.6 18.65 -2.8 16.31 -0.5 66.44 -4.0 24.51 -0.6 8.01 -2.9 15.98 -2.0 17.03 -2.6 7.25 -3.6 56.60 -1.1 10.41 0.3 35.77 0.3 43.85 -1.2 10.19 -11.6 1.13 -16.8 40.22 -3.8 EQT Midstream EQM EastmanKodak KODK EtnVncFR IT EFT EtnVncSrFltRte EFR EtnVncSrIT EVF EldoradoGold EGO Enbridge ENB EnLinkMid ENLC EntercomCommsWi ETMw Evertec EVTC EvolentHealth EVH FidcryClymrOppFd FMO FirstBanCorp FBP FT MLP&Energy FEI FT NewOppsMLP FPL FT SrFR Incm FCT FT SrFR2022 FIV GabelliGlbSmRt GGZr GameStop GME GeneralElec GE GenesisEnergy GEL Glaukos GKOS GSK GSK GS MLPEnergyRen GER GS MLP IncmOpp GMZ GrupoTelevisa TV HancockTxAdvGlb HTY HeclaMining HL InvescoCreditOpps VTA InvescoSeniorIncm VVR JohnsonControls JCI JustEnergy JE KayneAnderson KED KayneAnEnerTRFd KYE KayneAnMLPInv KYN KayneAnMidstrEner KMF KeyEnergySvcs KEG KinderMorgan KMI KinderMorganPfdA KMIpA KnotOffshore KNOP LendingClub LC LomaNegra LOMA MFS GvMkTr MGF MFS Intermd MIN MRC Global MRC MSG Networks MSGN MacquarieInfr MIC MechelPfd MTLp NOW DNOW NationalGrid NGG Netshoes NETS NewellBrands NWL NexaResources NEXA NuSTAREnergy NS NuSTAR GP NSH NuvCreditStrat JQC NuvEnerMLPTR JMF NuvFRIncmFd JFR NuvFR OppFd JRO NuvHiIncmDec18 JHA NuvSrIncmFd NSL PHH PHH PPDAI PPDF PIMCOCAMuniIII PZC PIMCO HiIncm PHK PioneerFR PHD PitneyBowesNt43 PBIpB PitneyBowes PBI PPlus CZN-1 PIY RR Donnelley RRD RangerEnergySvcs RNGR RedwoodTrust RWT SalientMidstream SMM SandRidgeMS SDT SpectraEnerPtrs SEP SpiritRealtyPfdA SRCpA SummitMidstream SMLP THLCreditSrLoan TSLF TJX TJX TeekayLNG PfdB TGPpB 3D Systems DDD TortoiseMLPFund NTG TortoisePipe&En TTP TownsquareMedia TSQ UnitedContinental UAL WstAstCpLoanFd TLI WesternGasEquity WGP WesternGasPtrs WES WideOpenWest WOW Willbros WG WorthingtonInds WOR 52-Wk % Sym Hi/Lo Chg Stock GlbXSuperIncPfd SPFF GSAccessHYCorpBd GHYB GuggBS2025HYCpBd BSJP GuggBS2027CorpBd BSCR iShiBdsMar18CpxFin IBCC HancockMultiSC JHSC JPM US Value JVAL NuShEnhYd1-5Y NUSA PwrShSrLoanPtf BKLN ProShUltTelecom LTL ProShrUSRlEst SRS ProShrUSUtil SDP SchwabSrtTRmUSTrsr SCHO TeucriumCornFund CORN VanEckHiIncmInfra YMLI VangdTelecom VOX VirtusGlovistaEM EMEM 12.25 49.41 24.58 19.89 24.58 24.87 24.90 24.92 22.99 36.93 28.50 22.35 50.18 16.75 12.74 83.39 24.69 -0.3 -0.3 -0.3 ... -0.1 -0.1 ... -0.1 -0.1 -0.9 0.3 -2.2 ... -1.1 -1.8 -0.7 -0.5 Immucell ICCC InfinityPropCas IPCC Insmed INSM Intricon IIN Intuit INTU iSectorsPostMPT PMPT JensynAcqn Rt JSYNR Joint JYNT Kingstone KINS Kulicke&Soffa KLIC LimelightNetworks LLNW LivaNova LIVN MicronTech MU MonsterBev MNST Nathan's NATH NatlEnerSvsWt NESRW OssenInnovation OSN PinnacleEnt PNK PwrShDWA Util PUI PwrShRuss1000Low USLB PreformedLine PLPC Qualys QLYS RCI Hospitality RICK RMR Group RMR Radware RDWR Remark MARK Roku ROKU StarBulkNts22 SBLKZ StarsGroup TSG Synopsys SNPS TabulaRasaHlth TRHC TowerSemi TSEM USA Tech USAT USA Truck USAK UTStarcom UTSI VascularBiogenics VBLT VeriSign VRSN Vodafone VOD Weibo WB WestellTech WSTL Wingstop WING ZAGG ZAGG NYSE American highs - 4 83.53 2.1 AINC NYSE Arca highs - 29 Ashford 2.70 ... Birks BGI CSOPFTSEChinaA50 AFTY DirexHmbldrBull3 NAIL DirexUtilBl3X UTSL FidelityMSCIUtils FUTY GlbXSciBetaUS SCIU GuggS&P500EWUtil RYU GuggInsider NFO GuggS&P500EWRlEst EWRE GuggSolar TAN iShU.S.RealEstate IYR iShU.S.Utilities IDU iShMSCIHongKong EWH HancockUtils JHMU JPM US Dividend JDIV JPM USQualFactor JQUA KraneZacksNewChina KFYP PwrShInvGrdCpBd PFIG PwrShS&P500HiDiv SPHD PwrShS&P500LoVol SPLV PwrShS&P500xRate XRLV PwrShS&P500Mom SPMO ProShS&P500xHlth SPXV ProShrUltraUtil UPW SPDRS&P1500ValTilt VLU SPDRS&PHlthCareEqp XHE SPDR US LC Low Vol LGLV UtilitiesSelSector XLU VanEckVietnam VNM VangdUtilities VPU 18.44 76.50 34.14 36.95 30.27 90.79 61.02 28.67 25.21 83.00 142.28 25.71 29.74 25.11 24.93 44.18 26.70 41.96 47.39 32.82 34.84 53.77 54.08 103.18 64.76 92.26 56.91 16.45 124.94 -0.6 3.0 3.6 1.3 0.2 1.0 0.1 -0.1 1.0 -0.2 1.2 ... 1.8 0.4 ... -2.2 ... 0.1 0.6 0.1 -0.2 ... 2.1 -3.6 -0.1 0.1 1.2 0.1 1.2 NYSE Arca lows - 35 AlerianMLPETF AMLP ColumbiaDivFixed DIAL DirexSilverMinBl2 SHNY ETFMG PrimeJrSilver SILJ ETRACSMthPay2xLev DVHL ETRACSMthlyPay2x SMHD FrankFTSEBrazil FLBR FrankFTSECanada FLCA FrankFTSEChina FLCH FrankFTSEEurHdg FLEH FrankFTSEFrance FLFR FrankFTSEJapan FLJP FrankFTSEJapanHdg FLJH FrankFTSEMexico FLMX FrankFTSETaiwan FLTW GlbX MLP&Energy MLPX GlbX MLP MLPA GlbXSilverMiners SIL 10.15 19.82 8.38 10.30 19.64 16.55 23.37 24.80 25.25 24.46 24.87 25.72 25.67 24.61 25.32 12.59 9.22 30.36 -1.7 -0.2 -1.3 -1.8 -0.4 -1.3 -2.1 -0.6 -1.5 -0.2 -0.2 -0.6 -0.2 -0.5 -0.2 -1.7 -1.8 -0.5 7.42 -2.2 2.25 7.2 TRT WTT TrioTech WirelessTel NYSE American lows - 15 Amcon DIT AsteriasBiotherap AST BlkRkMD Muni BZM CRH Medical CRHM ComstockMining LODE ContangoO&G MCF eMagin EMAN FT EnerIncome FEN IMPAC Mortgage IMH IntlTowerHill THM Inuvo INUV Network1Techs NTIP NeubrgBermMLPIncm NML RegionalHlthProp RHE UnvlSecInstr UUU 52-Wk % Sym Hi/Lo Chg Stock 85.80 -3.2 2.20 -2.1 13.66 -0.5 1.50 -7.6 0.38 -3.2 3.02 -7.2 1.63 3.0 21.54 -2.0 10.67 2.7 0.36 -6.9 0.70 -4.9 2.60 -33.0 8.15 -2.9 0.20 -26.5 1.30 -3.7 Nasdaq highs - 69 Nasdaq lows - 99 AltairEngg ALTR AptoseBiosci APTO AtlanticaYield AY CMSevenStarAcqnRt CMSSR CadenceDesign CDNS CareerEducation CECO Cavium CAVM CboeGlobalMkts CBOE ChinaCeramics CCCL ChinaInternet CIFS ChromaDex CDXC Cognex CGNX ConcertPharm CNCE CSX-LinksCrudeOil USOI EducDev EDUC EnphaseEnergy ENPH Everbridge EVBG FirstComSC FCCO FiveBelow FIVE GRAVITY GRVY Garmin GRMN GladstoneInvt GAIN HailiangEduc HLG HamiltonLane HLNE HollysysAuto HOLI II-VI IIVI IPG Photonics IPGP 22.98 2.20 25.99 0.40 44.83 13.22 77.60 116.91 3.60 50.67 5.99 140.94 19.31 27.58 14.10 2.44 29.99 24.50 58.69 80.11 61.28 11.17 40.59 31.72 27.19 47.95 229.65 2.9 -4.4 ... -6.5 0.2 0.5 -0.2 0.7 19.0 2.9 4.8 0.2 0.5 7.3 -1.8 2.2 3.1 0.4 0.6 0.5 0.3 0.9 0.6 1.5 10.6 -0.6 0.7 AMC Networks AMCX AcadiaHealthcare ACHC Advaxis ADXS AlcentraCapital ABDC AmCapSeniorFloat ACSF AmerOutdoor AOBC AmTrustFinSvcs AFSI AquaMetals AQMS AquinoxPharm AQXP ArcadiaBiosci RKDA ArchrockPtrs APLP Bandwidth BAND Biocept BIOC BlackRockCapInvt BKCC BroadwindEnergy BWEN CHF Solutions CHFS CM Finance CMFN CMSevenStarAcqnRt CMSSR CTI Ind CTIB CapitalaFinNts22 CPTAL Cenveo CVO Chimerix CMRX CleanEnerFuels CLNE CoherusBioSci CHRS ConsldComm CNSL Criteo CRTO Curis CRIS Largest 100 exchange-traded funds, latest session 0.02 -19.4 21.51 3.7 15.23 -4.1 0.82 -1.4 2.32 -2.0 0.53 -6.5 5.32 -34.3 7.13 -5.0 6.26 -7.2 11.88 -3.8 1.74 -7.7 10.66 -2.7 65.28 0.5 18.23 -0.1 8.05 -3.5 34.05 -7.0 5.76 2.9 0.88 -5.0 4.20 -5.3 24.98 -0.1 84.12 ... 10.65 -2.1 43.05 -2.2 13.20 -4.9 56.95 -1.4 4.15 -1.2 107.53 1.4 4.80 4.0 15.01 -22.2 0.35 -8.0 0.90 -3.1 0.91 -8.1 1.58 -1.6 14.26 -3.2 3.40 -2.0 11.80 -0.5 4.55 -12.4 7.72 -1.3 15.01 -9.8 1.20 -6.0 32.17 -0.1 2.90 -13.7 10.21 -4.5 24.66 -4.9 4.82 -3.1 2.88 -8.9 3.74 -1.2 7.22 -14.7 0.28 -41.0 18.48 3.2 4.65 -4.0 35.50 -4.4 0.35 -10.0 3.71 -7.5 6.91 -0.3 0.98 -19.1 2.01 -16.8 84.42 -4.1 4.80 -1.0 4.26 -5.5 8.08 2.4 5.85 -2.5 15.56 -2.0 7.06 -0.4 44.02 -6.4 60.45 ... 15.25 -1.3 0.75 -3.8 0.61 -6.1 83.71 0.2 1.61 -5.7 2.20 -5.4 ETF Tuesday, November 14, 2017 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFE iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500 iShCoreS&P MC iShCoreS&P SC iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCI ACWI iShMSCIBrazilCap iShMSCI EAFE iShMSCI EAFE SC iShMSCIEmgMarkets iShMSCIEurozone iShMSCIJapan iShNasdaqBiotech iShNatlMuniBd iShRussell1000Gwth iShRussell1000 iShRussell1000Val iShRussell2000Gwth iShRussell2000 iShRussell2000Val iShRussell3000 iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500Value iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDR BlmBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS LC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdSC Grwth VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe AMLP XLY XLP XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EWZ EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VBK VIG VEA VWO VGK 10.15 92.76 54.78 68.14 26.11 97.00 80.95 70.63 109.32 104.86 122.81 64.60 55.48 61.63 259.58 182.37 73.46 58.96 109.10 95.55 71.28 51.85 12.31 119.94 86.68 114.49 106.64 70.14 37.74 68.94 62.11 45.88 43.10 58.51 305.05 110.68 130.86 143.43 119.04 178.10 146.21 121.41 152.51 200.91 85.94 208.79 149.23 108.73 38.16 113.84 84.15 105.93 125.20 116.43 101.76 153.31 47.39 23.00 36.50 121.56 33.82 62.22 61.59 234.28 332.41 257.73 92.86 63.35 56.87 22.59 164.48 127.25 155.00 97.47 43.83 44.20 57.57 –1.74 –19.4 0.09 14.0 5.9 0.35 –1.62 –9.5 –0.04 12.3 –0.05 12.0 –0.41 17.4 –0.27 13.5 1.0 0.05 –0.01 –0.1 0.2 0.07 –0.05 20.5 –0.54 30.7 –0.24 22.1 –0.20 15.4 –0.12 10.3 6.8 –0.03 –0.24 15.0 1.0 0.10 7.9 0.35 0.06 16.4 0.19 14.7 0.24 11.1 2.4 0.03 0.2 –0.43 3.9 –0.08 0.3 0.11 –0.20 18.5 –3.11 13.2 –0.07 19.4 0.23 24.6 –0.67 31.0 0.44 24.6 –0.53 19.8 –1.62 14.9 2.3 –0.05 –0.11 24.7 –0.19 15.2 6.3 –0.37 –0.27 15.7 8.4 –0.27 2.1 –0.21 –0.22 14.7 –0.03 12.3 6.9 –0.02 –0.03 14.6 –0.19 22.5 7.2 –0.28 2.6 –0.13 0.6 0.12 0.02 –0.4 1.1 0.14 5.1 0.68 0.09 19.6 0.4 –0.01 –0.36 29.4 0.55 14.0 –0.13 –1.5 0.1 –0.38 0.21 10.9 –0.12 22.2 –0.27 14.8 –0.23 15.6 –0.16 18.6 –0.14 10.2 –0.23 15.3 8.5 0.19 –0.20 31.0 1.25 17.1 8.0 0.13 –0.18 35.4 5.2 –0.23 –0.36 16.4 0.19 14.4 –0.09 20.0 –0.67 23.5 0.35 20.1 ETF Closing Chg YTD Symbol Price (%) (%) VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ 53.36 137.55 150.45 82.54 84.09 87.23 118.37 149.35 106.53 85.18 –0.15 –0.22 –0.50 –0.10 0.15 0.05 –0.22 0.06 0.04 –0.21 20.8 23.4 18.7 8.9 1.2 1.8 15.6 13.5 9.6 3.2 WSJ APP FOR iOS. DOWNLOAD NOW ©2017 Dow Jones & Co., Inc. All rights reserved. 1DJ2461 VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ DBEF Average Yields of Major Banks Type 236.74 79.44 79.59 142.02 81.53 54.89 55.42 132.37 72.03 101.42 64.22 57.64 31.60 –0.24 0.04 –0.05 –0.25 0.12 0.13 –0.11 –0.18 –0.15 –0.24 –0.70 –0.52 –0.60 15.3 –0.0 0.3 10.1 0.9 1.1 20.8 14.8 18.1 9.0 11.9 16.4 12.6 Tuesday, November 14, 2017 MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR 0.11 0.22 0.07 0.07 0.07 0.08 0.13 0.14 0.19 0.22 0.35 0.38 0.47 0.52 0.45 0.47 0.92 0.97 -0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 -0.01 0.00 0.00 0.01 -0.01 -0.02 -0.02 -0.02 National average Savings Jumbos Weekly change Savings Jumbos Consumer Savings Rates Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter of 2014 from federal regulators. 5: most desirable performance; NR: institution is too new to rate, not an indication of financial strength or weakness. Information is believed to be reliable, but not guaranteed. High yield savings Bank/rank Phone number Minimum Yield (%) Money market and savings account DollarSavingsDirect /4 (866) 395-8693 CIT Bank /4 (855) 462-2652 Barclays /4 (888) 720-8756 $1 1.50 $100 1.35 $0 1.30 $0 0.81 $5,000 0.30 $10,000 0.15 $10,000 0.15 $1,000 0.05 One-month CD EH National Bank /2 (888) 392-5265 M.Y. Safra Bank, FSB /4 (212) 652-7200 VirtualBank /4 (877) 998-2265 VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Bank/rank Phone number Minimum Yield (%) Six-month CD M.Y. Safra Bank, FSB /4 $5,000 (212) 652-7200 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 VirtualBank /4 $10,000 (877) 998-2265 1.42 1.41 1.41 One-year CD Two-month CD $10,000 1.76 $1,500 1.75 $10,000 1.75 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 VirtualBank /4 $10,000 (877) 998-2265 Banesco USA /3 $1,500 (786) 552-0524 1.88 VirtualBank /4 (877) 998-2265 Banesco USA /3 (786) 552-0524 CD Bank /4 (888) 201-8185 Two-year CD Three-month CD M.Y. Safra Bank, FSB /4 $5,000 (212) 652-7200 CD Bank /4 $10,000 (888) 201-8185 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 1.86 1.85 Five-year CD 1.16 1.15 1.06 Capital One 360 /5 $0 (800) 289-1992 VirtualBank /4 $10,000 (877) 998-2265 Goldman Sachs Bank USA /5 $500 (855) 730-7283 2.45 2.41 2.40 High yield jumbos - Minimum is $100,000 Money market and savings account ableBanking,adivisionofNortheastBank/4 (877) 505-1933 M.Y. Safra Bank, FSB /4 (212) 652-7200 BBVA Compass /3 (800) COMPASS EH National Bank /2 (888) 392-5265 M.Y. Safra Bank, FSB /4 (212) 652-7200 USAA /5 (800) 583-8295 TRUSTED NEWS AND INSIGHTS ON THE GO. VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg XtrkrsMSCIEAFE BANKRATE.COM® MMA, Savings and CDs 1.30 1.26 1.25 One-month CD CALIFORNIA Closing Chg YTD Symbol Price (%) (%) ETF VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Citizens Trust Bank /4 (404) 659-5959 0.30 0.22 1.45 1.42 1.41 VirtualBank /4 (877) 998-2265 First Internet Bank of Indiana /4 (888) 873-3424 ableBanking,adivisionofNortheastBank/4 (888) 426-2253 1.76 1.71 1.70 Two-year CD 0.15 0.05 0.01 Three-month CD TriState Capital Bank /4 (866) 680-8722 M.Y. Safra Bank, FSB /4 (212) 652-7200 Luana Savings Bank /4 (800) 666-2012 Six-month CD TriState Capital Bank /4 (866) 680-8722 M.Y. Safra Bank, FSB /4 (212) 652-7200 VirtualBank /4 (877) 998-2265 One-year CD 0.81 Two-month CD ! "#$%## 46.89 -0.1 27.44 -2.2 2.91 -7.1 7.13 -1.6 10.35 0.5 12.87 -1.7 9.02 -4.6 2.98 -16.2 10.23 -1.0 0.23 -6.3 12.20 -5.0 20.00 -1.0 0.63 -1.1 6.68 -1.5 2.45 -3.1 3.60 -11.9 8.00 -1.8 0.29 -6.5 3.70 -1.3 24.70 0.3 0.85 -9.4 4.17 -0.5 1.96 -2.5 8.40 -0.5 13.11 -3.4 34.60 -1.7 0.89 -6.0 CytoriTherapWt CYTXW DBVTechnologies DBVT DiscovComm C DISCK Egalet EGLT ElbitImaging EMITF Eltek ELTK EnergyXXIGulfCoast EXXI FTD FTD FrontierComm FTR FrontierCommPfA FTRPR Geron GERN HemisphereMedia HMTV HenrySchein HSIC HighlandSrLoan SNLN HoughtonMifflin HMHC INC Research INCR Immersion IMMR Innodata INOD InovioPharma INO iShESG1-5YCpBd SUSB iSh1-3YTreasuryBd SHY LaureateEduc LAUR LifePointHealth LPNT MartinMidstream MMLP MatthewsIntl MATW MediWound MDWD Middleby MIDD MinervaNeurosci NERV NCS Multistage NCSM NII Holdings NIHD Neonode NEON Neuralstem CUR NeuroMetrix NURO NuanceComms NUAN NumereX NMRX OFSCapital OFS OPKOHealth OPK ObalonTherap OBLN OptiNose OPTN ParkerVision PRKR Patterson PDCO ProQR Therap PRQR RISE Education REDU RadiusHealth RDUS RedHillBio RDHL RenminTianli ABAC RevolutionLight RVLT RiminiStreet RMNI root9B RTNB SabraHealthcare SBRA SalemMedia SALM ScanSource SCSC SearsHoldingsWt SHLDW SearsHoldings SHLD SonusNetworks SONS Sunworks SUNW SynergyPharm SGYP TESARO TSRO TeleNav TNAV TherapixBiosci TRPX TileShop TTS Travelzoo TZOO TremontMortgage TRMT trivago TRVG UltragenyxPharm RARE VangdSTGovBd VGSH VeecoInstr VECO VistaGenTherap VTGN WMIH WMIH WPP WPPGY WestmorelandCoal WLB XenonPharms XENE Exchange-Traded Portfolios | WSJ.com/ETFresearch ' ' !!& &&& " !" " # $ 9.24 7.0 108.40 1.2 32.94 -5.4 16.95 -1.0 155.78 0.2 27.28 0.2 0.53 ... 6.00 -1.2 17.95 3.5 28.71 20.4 6.05 4.7 82.12 1.2 46.00 0.4 62.80 0.7 97.30 -2.0 0.67 -3.3 3.61 33.5 28.47 2.4 29.71 1.5 30.21 0.6 76.15 2.4 58.40 -0.1 29.49 1.4 56.05 1.1 19.71 0.7 5.10 29.6 48.80 -13.5 24.60 0.2 22.15 0.9 88.08 -0.1 33.25 9.4 34.25 0.1 7.80 3.3 17.62 3.6 3.23 0.6 9.00 10.1 111.71 ... 30.61 5.6 113.63 3.3 3.84 4.2 40.51 1.9 20.95 1.5 52-Wk % Sym Hi/Lo Chg First Internet Bank of Indiana /4 (888) 873-3424 VirtualBank /4 (877) 998-2265 EverBank /3 (855) 228-6755 1.88 1.86 1.82 Five-year CD 1.30 1.16 1.10 VirtualBank /4 (877) 998-2265 First Internet Bank of Indiana /4 (888) 873-3424 Synchrony Bank /5 (800) 903-8154 2.41 2.38 2.35 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields are based on method of compounding and rate stated for the lowest required opening deposit to earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of which may be checks. Rates are subject to change. Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408 Internet: www.bankrate.com For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B15 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. Net Sym Close Chg Net Stock Sym Close Chg s BCE BCE 48.35 0.25 BHPBilliton BHP 41.69 -1.01 BHPBilliton BBL 36.50 -0.87 BP BP 39.61 -0.27 ABB ABB 25.31 -0.17 BRF BRFS 12.69 ... AECOM ACM 34.21 -1.42 t BT Group BT 16.22 -0.01 AES AES 10.84 0.02 BWX Tech BWXT 60.84 0.26 Aflac AFL 84.27 0.32 BakerHughes BHGE 30.51 -1.37 AT&T T 33.72 -0.45 Ball BLL 39.99 -0.32 AbbottLabs ABT 55.01 -0.29 BancoBilbaoViz BBVA 8.35 0.02 AbbVie ABBV 94.75 -0.37 BancodeChile BCH 87.60 -1.49 s Accenture ACN 144.96 1.04 BancoMacro BMA 97.61-16.36 AcuityBrands AYI 164.31 0.78 BcoSantChile BSAC 29.93 -0.17 Adient ADNT 75.03 -1.19 BancoSantander SAN 6.39 -0.03 AdvanceAuto AAP 95.72 13.44 BanColombia CIB 37.61 0.27 AdvSemiEngg ASX 6.23 0.08 BankofAmerica BAC 26.24 -0.16 Aegon AEG 5.97 0.01 BankofMontreal BMO 76.91 -0.16 AerCap AER 50.15 -0.46 BankNY Mellon BK 51.85 0.83 Aetna AET 171.83 -1.19 BkNovaScotia BNS 65.29 -0.05 AffiliatedMgrs AMG 183.15 0.29 Barclays BCS 9.51 0.15 AgilentTechs A 67.46 0.33 Bard CR BCR 333.34 0.26 AgnicoEagle AEM 45.40 0.33 BarrickGold ABX 14.01 0.06 Agrium AGU 105.38 -1.25 BaxterIntl BAX 64.46 0.05 AirProducts APD 162.15 -0.61 BectonDicknsn BDX 220.46 0.46 AlaskaAir ALK 61.68 -0.04 Berkley WRB 67.78 -0.35 Albemarle ALB 137.65 -5.72 BerkHathwy A BRK.A 274810-1537.00 Alcoa AA 41.87 -1.26 BerkHathwy B BRK.B 183.34 -1.06 AlexandriaRlEst ARE 126.28 -0.33 BerryGlobal BERY 58.55 -0.02 Alibaba BABA 181.79 -2.75 BestBuy BBY 57.20 0.23 Alleghany Y 577.03 0.66 Bio-RadLab A BIO 253.22 -1.21 Allegion ALLE 82.90 -1.04 BlackKnight BKI 46.30 0.15 Allergan AGN 171.82 -2.59 BlackBerry BB 10.40 -0.29 AllianceData ADS 226.17 1.97 BlackRock BLK 470.45 5.34 s AlliantEnergy LNT 45.18 0.88 Blackstone BX 31.20 -0.56 AllisonTransm ALSN 42.11 -0.16 BoardwalkPipe BWP 14.37 0.07 Allstate ALL 99.94 0.50 Boeing BA 261.76 -0.66 AllyFinancial ALLY 25.84 0.19 BorgWarner BWA 52.07 0.04 t AlticeUSA ATUS 19.40 -1.70 BostonProps BXP 124.78 -1.15 Altria MO 65.73 -0.11 BostonSci BSX 28.32 -0.13 AlumofChina ACH 18.20 0.17 Braskem BAK 28.27 -1.30 Ambev ABEV 6.06 -0.06 Bristol-Myers BMY 61.25 0.26 s Ameren AEE 64.54 1.15 BritishAmTob BTI 64.19 -0.52 AmericaMovil AMX 16.93 -0.27 BroadridgeFinl BR 89.71 2.13 AmericaMovil A AMOV 16.78 -0.35 BrookfieldMgt BAM 41.36 -0.85 AmCampus ACC 42.69 -0.03 BrookfieldInfr BIP 43.78 0.01 s AEP AEP 77.39 1.26 Brown&Brown BRO 50.00 0.60 AmerExpress AXP 93.76 -0.14 Brown-Forman A BF.A 59.27 0.49 AmericanFin AFG 106.10 0.07 Brown-Forman B BF.B 59.12 0.94 AmerHomes4Rent AMH 21.85 -0.27 t BuckeyePtrs BPL 48.48 -1.26 AIG AIG 61.46 -0.54 Bunge BG 66.22 -0.09 AmerTowerREIT AMT 149.49 -0.55 BurlingtonStrs BURL 97.35 -0.90 s AmerWaterWorks AWK 90.71 1.19 CBD Pao CBD 20.82 -0.47 Ameriprise AMP 157.11 -0.21 s CBRE Group CBG 42.18 ... AmerisourceBrgn ABC 75.40 ... CBS A CBS.A 56.62 0.83 Ametek AME 69.49 0.60 CBS B CBS 56.41 0.49 s Amphenol APH 88.98 0.50 CF Industries CF 35.52 -1.55 AnadarkoPetrol APC 48.05 -2.18 CGI Group GIB 53.32 0.35 Andeavor ANDV 105.69 -0.46 CIT Group CIT 47.84 1.93 AndeavorLog ANDX 44.13 -1.01 s CMS Energy CMS 50.55 0.92 AB InBev BUD 114.77 -1.14 CNA Fin CNA 54.67 0.25 AnnalyCap NLY 11.49 0.11 CNOOC CEO 137.81 -3.06 AnteroResources AR 18.86 -1.03 CPFLEnergia CPL 16.56 -0.21 Anthem ANTM 218.45 -0.01 CRH CRH 34.97 -0.14 Aon AON 143.54 1.65 CVS Health CVS 70.44 -1.04 Apache APA 41.88 -1.61 CabotOil COG 28.46 -0.60 ApartmtInv AIV 45.23 -0.24 CalAtlantic CAA 52.13 0.32 ApolloGlbMgmt APO 29.62 0.43 CamdenProperty CPT 94.92 0.19 s AquaAmerica WTR 37.09 0.65 CampbellSoup CPB 47.81 0.54 Aramark ARMK 40.02 -2.83 CIBC CM 88.40 -0.45 ArcelorMittal MT 27.66 -1.36 CanNtlRlwy CNI 80.18 -0.15 ArcherDaniels ADM 39.79 0.05 CanNaturalRes CNQ 34.42 -1.64 Arconic ARNC 23.20 -0.59 CanPacRlwy CP 171.83 -1.52 s AristaNetworks ANET 227.10 1.95 Canon CAJ 38.36 -0.02 ArrowElec ARW 77.77 -0.30 CapitalOne COF 86.00 -0.95 AstraZeneca AZN 33.25 0.34 t CardinalHealth CAH 57.07 -1.26 Athene ATH 48.26 -0.13 Carlisle CSL 108.32 -0.78 s AtmosEnergy ATO 90.54 1.00 CarMax KMX 70.94 -1.41 Autohome ATHM 60.02 -1.17 Carnival CCL 66.02 0.04 Autoliv ALV 122.93 -0.32 Carnival CUK 66.27 0.12 AutoZone AZO 607.63 12.37 Caterpillar CAT 137.54 1.01 Avalonbay AVB 187.51 -0.60 Celanese A CE 104.89 -0.91 s Avangrid AGR 52.56 1.35 Cemex CX 7.81 -0.10 AveryDennison AVY 108.17 0.23 CenovusEnergy CVE 10.40 -0.54 AxaltaCoating AXTA 31.79 -0.13 Centene CNC 93.03 -1.33 BB&T BBT 46.84 0.35 CenterPointEner CNP 29.95 0.32 Tuesday, November 14, 2017 Stock NYSE Stock Net Sym Close Chg CentraisElBras EBR 5.85 t CenturyLink CTL 14.40 Chemours CC 50.60 Chevron CVX 116.92 ChinaEastrnAir CEA 26.11 ChinaLifeIns LFC 17.01 ChinaMobile CHL 50.80 ChinaPetrol SNP 71.68 ChinaSoAirlines ZNH 39.16 ChinaTelecom CHA 48.92 ChinaUnicom CHU 15.10 Chipotle CMG 280.90 Chubb CB 150.69 ChunghwaTel CHT 33.86 Church&Dwight CHD 45.74 Cigna CI 197.14 CimarexEnergy XEC 117.52 Citigroup C 71.53 CitizensFin CFG 38.07 Clorox CLX 135.31 s Coca-Cola KO 47.43 Coca-Cola Euro CCE 39.34 Coca-Cola Femsa KOF 67.86 ColgatePalm CL 73.46 ColonyNorthStar CLNS 12.46 Comerica CMA 78.71 SABESP SBS 8.94 ConagraBrands CAG 35.87 ConchoRscs CXO 140.46 ConocoPhillips COP 51.23 s ConEd ED 88.96 ConstBrands A STZ 218.09 ContinentalRscs CLR 44.57 Cooper COO 236.78 Corning GLW 31.70 Coty COTY 16.95 Credicorp BAP 203.00 CreditSuisse CS 15.92 CrownCastle CCI 113.16 CrownHoldings CCK 58.93 Cullen/Frost CFR 94.96 Cummins CMI 169.12 s DCT Industrial DCT 60.75 s DTE Energy DTE 115.58 DXC Tech DXC 95.76 Danaher DHR 93.19 Darden DRI 82.85 DaVita DVA 54.66 Deere DE 132.88 DellTechs DVMT 81.49 DelphiAuto DLPH100.29 DeltaAir DAL 48.90 DeutscheBank DB 18.19 DevonEnergy DVN 38.23 Diageo DEO 136.42 DigitalRealty DLR 122.72 DiscoverFinSvcs DFS 64.21 Disney DIS 103.17 DolbyLab DLB 61.00 DollarGeneral DG 83.25 s DominionEner D 82.84 Domino's DPZ 175.66 Donaldson DCI 46.35 DouglasEmmett DEI 40.65 Dover DOV 93.61 DowDuPont DWDP 68.57 DrPepperSnap DPS 87.82 DrReddy'sLab RDY 35.48 s DukeEnergy DUK 91.09 DukeRealty DRE 29.12 ENI E 33.25 EOG Rscs EOG 102.47 EQT EQT 60.60 t EQT Midstream EQM 68.08 EastmanChem EMN 90.24 Eaton ETN 76.89 EatonVance EV 51.31 Ecolab ECL 131.40 Ecopetrol EC 11.70 EdisonInt EIX 82.64 EdwardsLife EW 105.15 EmersonElec EMR 60.74 EnbridgeEnPtrs EEP 14.12 t Enbridge ENB 34.97 Encana ECA 11.89 -0.30 -0.93 -1.31 -0.31 1.38 -0.41 -0.39 -1.84 1.01 -1.08 -0.41 3.40 -0.65 0.17 0.39 -0.47 -4.27 -0.46 0.87 0.23 0.71 -0.08 -0.66 -0.24 -0.14 1.77 -0.15 1.03 -1.95 -1.34 1.34 -2.67 -1.26 -0.29 0.04 0.20 1.91 0.05 0.26 -0.52 -0.24 -0.08 0.03 1.34 -1.04 -0.14 0.01 -0.33 0.97 -0.32 4.72 0.04 0.26 -1.42 0.47 0.02 -0.79 -1.57 0.95 -0.30 0.99 2.63 -0.04 0.14 -0.18 -1.51 0.79 -0.03 1.21 0.01 -0.16 -1.99 -3.98 -1.20 -1.19 -1.05 0.42 -0.24 -0.16 1.54 -0.09 -0.65 0.09 -0.77 -0.37 Stock Net Sym Close Chg EnelAmericas ENIA 9.98 EnelChile ENIC 5.65 EnelGenChile EOCC 25.82 EnergyTransferEq ETE 16.65 EnergyTransfer ETP 16.42 Entergy ETR 87.42 EnterpriseProd EPD 24.06 Equifax EFX 109.31 s EquityLife ELS 90.45 EquityResdntl EQR 69.98 EssexProp ESS 256.82 EsteeLauder EL 126.02 EverestRe RE 226.13 s EversourceEner ES 65.81 s Exelon EXC 42.39 ExtraSpaceSt EXR 86.34 ExxonMobil XOM 82.24 FMC FMC 93.01 FactSet FDS 195.22 FederalRealty FRT 131.81 FedEx FDX 219.94 Ferrari RACE 109.91 FiatChrysler FCAU 17.50 FibriaCelulose FBR 15.30 s FidNatlFin FNF 39.87 FNFV Group FNFV 17.50 FidNatlInfo FIS 93.43 58.com WUBA 72.39 FirstAmerFin FAF 54.68 FirstData FDC 16.88 FirstRepBank FRC 92.04 s FirstEnergy FE 35.05 FleetCorTech FLT 178.68 Fluor FLR 45.66 FomentoEconMex FMX 87.80 FordMotor F 12.02 ForestCIty A FCE.A 25.50 Fortis FTS 37.89 Fortive FTV 72.67 FortBrandsHome FBHS 64.69 Franco-Nevada FNV 84.64 FranklinRscs BEN 40.83 FreeportMcM FCX 13.80 FreseniusMed FMS 49.17 GGP GGP 23.95 s Gallagher AJG 65.10 Gap GPS 26.73 GardnerDenver GDI 28.66 Gartner IT 117.64 Gazit-Globe GZT 9.65 GeneralDynamics GD 200.22 t GeneralElec GE 17.90 GeneralMills GIS 54.12 GeneralMotors GM 43.00 Genpact G 31.06 GenuineParts GPC 86.01 Gildan GIL 30.09 t GSK GSK 34.98 GlobalPayments GPN 101.34 GoDaddy GDDY 48.65 Goldcorp GG 13.24 GoldmanSachs GS 237.24 Graco GGG 129.35 Grainger GWW 195.58 s GreatPlainsEner GXP 33.99 GpoAvalAcc AVAL 8.32 GpFinSantMex BSMX 8.13 t GrupoTelevisa TV 19.50 Guidewire GWRE 79.88 HCA Healthcare HCA 76.05 HCP HCP 27.02 HDFC Bank HDB 92.96 HP HPQ 21.36 HSBC HSBC 48.32 Halliburton HAL 42.94 Hanesbrands HBI 19.25 HarleyDavidson HOG 46.93 Harris HRS 139.34 HartfordFinl HIG 56.22 HealthcareAmer HTA 30.65 Heico HEI 90.14 Heico A HEI.A 75.35 Helm&Payne HP 54.38 Herbalife HLF 65.03 Hershey HSY 109.86 Hess HES 44.91 HewlettPackard HPE 13.27 Hilton HLT 72.91 s HollyFrontier HFC 42.84 s HomeDepot HD 168.06 HondaMotor HMC 32.49 s Honeywell HON 147.32 HormelFoods HRL 32.98 s DR Horton DHI 47.64 HostHotels HST 19.97 HuanengPower HNP 27.71 Hubbell HUBB 121.43 Humana HUM 239.56 HuntingIngalls HII 237.53 Huntsman HUN 30.11 HyattHotels H 69.55 ICICI Bank IBN 9.53 ING Groep ING 18.11 Invesco IVZ 34.47 IDEX IEX 127.64 IllinoisToolWks ITW 158.54 Infosys INFY 14.91 Ingersoll-Rand IR 84.70 -0.22 -0.03 -0.08 -0.07 -0.38 0.78 -0.30 0.52 -0.12 -0.17 -1.81 -0.30 -2.42 1.05 0.63 -0.53 -0.65 -1.87 -0.67 0.92 -1.49 -0.53 0.19 -0.11 1.13 ... 0.58 -0.61 0.72 -0.25 0.45 0.84 -2.74 -1.02 0.81 -0.14 0.13 0.17 0.07 0.26 1.25 0.02 -0.63 0.54 -0.10 1.16 0.01 -0.75 1.32 0.26 0.09 -1.12 1.15 -0.57 -0.04 0.72 -0.08 -0.11 1.74 0.08 -0.02 -3.03 0.53 -0.21 0.34 0.10 0.01 -0.48 0.06 -1.66 -0.21 -0.65 0.19 0.06 -1.27 0.02 0.05 0.37 0.53 -0.10 -0.02 -0.35 -2.00 0.18 1.68 -1.68 -0.21 0.29 0.99 2.71 -0.32 0.60 0.53 0.55 -0.06 -0.26 -0.33 -1.38 -1.65 -0.58 -0.19 0.07 -0.05 -0.05 -0.32 0.93 0.11 -0.06 Stock Net Sym Close Chg Ingredion INGR 130.63 1.50 ICE ICE 67.30 0.22 InterContinentl IHG 56.27 -0.08 IBM IBM 148.89 0.49 IntlFlavors IFF 150.65 0.93 IntlPaper IP 54.33 0.41 Interpublic IPG 18.64 -0.03 InvitatHomes INVH 23.50 -0.07 s IronMountain IRM 41.00 0.01 IsraelChemicals ICL 3.94 -0.12 ItauUnibanco ITUB 12.37 -0.32 JPMorganChase JPM 97.27 -0.59 JacobsEngg JEC 57.94 -1.88 JamesHardie JHX 15.81 -0.16 s JanusHenderson JHG 36.82 -0.22 J&J JNJ 139.49 -0.27 t JohnsonControls JCI 35.89 -0.11 s JonesLang JLL 150.11 1.95 JuniperNetworks JNPR 26.43 1.07 KAR Auction KAR 48.14 -0.11 KB Fin KB 51.06 0.24 KKR KKR 19.20 -0.03 KT KT 14.00 0.09 KSCitySouthern KSU 104.25 -0.87 Kellogg K 65.18 1.42 KeyCorp KEY 18.25 0.33 KeysightTechs KEYS 44.00 -0.32 KilroyRealty KRC 73.97 -0.51 KimberlyClark KMB 114.55 -0.86 KimcoRealty KIM 18.92 -0.03 t KinderMorgan KMI 17.43 -0.03 Knight-Swift KNX 38.75 0.71 Kohl's KSS 42.20 1.02 KoninklijkePhil PHG 39.10 0.31 KoreaElcPwr KEP 17.15 -0.02 Kroger KR 22.02 ... Kyocera KYO 69.92 1.27 LATAMAirlines LTM 12.94 -0.12 L Brands LB 49.27 0.32 LG Display LPL 13.10 -0.22 LINE LN 43.36 0.12 L3 Tech LLL 184.71 -0.41 LabCpAm LH 149.91 0.04 s LambWeston LW 53.39 0.61 LasVegasSands LVS 67.27 0.02 Lazard LAZ 46.50 -1.19 Lear LEA 174.93 0.57 Leggett&Platt LEG 45.57 -0.24 Leidos LDOS 61.38 -0.25 Lennar A LEN 58.56 0.34 Lennar B LEN.B 48.85 0.09 LennoxIntl LII 190.34 1.11 LeucadiaNatl LUK 25.32 -0.33 LibertyProperty LPT 44.90 0.03 EliLilly LLY 82.49 0.15 LincolnNational LNC 73.44 -0.46 LionsGate A LGF.A 30.59 -0.10 LionsGate B LGF.B 29.36 -0.19 s LiveNationEnt LYV 46.16 1.23 LloydsBanking LYG 3.54 0.01 LockheedMartin LMT 313.74 0.79 Loews L 49.94 0.05 Lowe's LOW 79.23 1.70 LyondellBasell LYB 103.74 -0.45 M&T Bank MTB 160.71 1.27 MGM Resorts MGM 32.85 -0.21 MPLX MPLX 33.72 -0.41 MSCI MSCI 125.12 -0.34 Macerich MAC 64.76 0.69 Macy's M 19.70 0.37 MagellanMid MMP 65.30 -0.92 MagnaIntl MGA 52.82 -0.22 Manpower MAN 125.98 -0.02 ManulifeFin MFC 20.95 -0.12 MarathonOil MRO 14.84 -0.66 MarathonPetrol MPC 62.87 0.67 Markel MKL 1077.82 6.06 Marsh&McLen MMC 83.60 0.60 MartinMarietta MLM 212.16 -0.31 Masco MAS 39.04 0.15 Mastercard MA 149.95 0.26 McCormick MKC 98.58 1.62 McCormickVtg MKC.V 98.55 1.42 McDonalds MCD 168.11 0.74 McKesson MCK 136.17 -1.88 Medtronic MDT 79.16 -0.04 Merck MRK 54.99 -0.11 MetLife MET 52.00 -0.16 MettlerToledo MTD 631.37 0.53 MichaelKors KORS 54.89 0.80 MicroFocus MFGP 34.53 0.26 MidAmApt MAA 103.94 -2.09 MitsubishiUFJ MTU 6.64 0.13 MizuhoFin MFG 3.51 -0.07 MobileTeleSys MBT 11.11 0.18 MohawkInds MHK 267.14 2.12 MolsonCoors B TAP 80.52 -0.32 Monsanto MON 118.05 -0.10 Moody's MCO 143.14 0.99 MorganStanley MS 48.38 -0.25 Mosaic MOS 23.00 -0.28 MotorolaSol MSI 91.02 -0.35 s NRG Energy NRG 28.92 0.14 s NTTDoCoMo DCM 25.01 0.08 NVR NVR 3325.67 25.67 t NationalGrid NGG 59.19 -0.01 NatlOilwell NOV 32.27 -0.79 NatlRetailProp NNN 42.53 -0.02 Stock Net Sym Close Chg NewOrientalEduc EDU 84.10 NY CmntyBcp NYCB 12.97 t NewellBrands NWL 28.04 NewfieldExpln NFX 29.82 NewmontMin NEM 36.28 s NextEraEnergy NEE 158.40 NielsenHoldings NLSN 35.97 Nike NKE 55.98 NiSource NI 27.58 NobleEnergy NBL 26.67 Nokia NOK 4.83 NomuraHoldings NMR 5.71 Nordstrom JWN 39.16 NorfolkSouthern NSC 126.98 NorthropGrum NOC 300.46 Novartis NVS 83.03 NovoNordisk NVO 49.84 Nucor NUE 54.86 OGE Energy OGE 35.85 ONEOK OKE 51.38 OccidentalPetrol OXY 67.32 Olin OLN 35.60 OmegaHealthcare OHI 28.34 Omnicom OMC 67.66 Oracle ORCL 49.20 Orange ORAN 16.44 OrbitalATK OA 132.78 Orix IX 84.95 Oshkosh OSK 85.81 s OwensCorning OC 82.64 PG&E PCG 56.61 PLDT PHI 31.88 PNC Fin PNC 132.00 POSCO PKX 70.50 PPG Ind PPG 114.35 PPL PPL 37.07 PVH PVH 126.83 PackagingCpAm PKG 112.71 PaloAltoNtwks PANW 138.81 ParkHotels PK 28.38 ParkerHannifin PH 179.67 ParsleyEnergy PE 25.96 Pearson PSO 9.12 PembinaPipeline PBA 35.22 Pentair PNR 68.02 PepsiCo PEP 115.76 PerkinElmer PKI 71.61 Perrigo PRGO 86.00 PetroChina PTR 68.61 PetroleoBrasil PBR 9.68 PetroleoBrasilA PBR.A 9.20 Pfizer PFE 35.38 PhilipMorris PM 102.72 Phillips66 PSX 92.83 PinnacleFoods PF 55.00 s PinnacleWest PNW 91.71 PioneerNatRscs PXD 152.81 PlainsAllAmPipe PAA 20.01 PlainsGP PAGP 20.64 PolarisIndustries PII 120.90 Potash POT 18.90 Praxair PX 147.63 PrincipalFin PFG 68.33 Procter&Gamble PG 88.87 s Progressive PGR 51.28 s Prologis PLD 67.19 PrudentialFin PRU 109.56 Prudential PUK 48.67 s PublicServiceEnt PEG 51.72 PublicStorage PSA 212.92 s PulteGroup PHM 31.77 QuantaServices PWR 35.75 QuestDiag DGX 92.42 QuintilesIMS Q 103.48 RELX RENX 22.46 RELX RELX 23.19 RPM RPM 51.46 RSP Permian RSPP 36.07 RalphLauren RL 87.20 RaymondJames RJF 83.03 Raytheon RTN 183.94 RealtyIncome O 56.90 RedHat RHT 124.49 RegencyCtrs REG 66.91 RegionsFin RF 15.69 ReinsGrp RGA 149.73 RepublicSvcs RSG 63.92 ResMed RMD 84.22 RestaurantBrands QSR 64.81 RioTinto RIO 48.00 s RobertHalf RHI 53.51 Rockwell ROK 191.58 RockwellCollins COL 132.88 RogersComm B RCI 52.98 Rollins ROL 45.29 RoperTech ROP 256.60 RoyalBkCanada RY 78.45 RoyalBkScotland RBS 7.31 RoyalCaribbean RCL 123.51 RoyalDutchA RDS.A 63.80 RoyalDutchB RDS.B 65.84 SAP SAP 113.08 S&P Global SPGI 159.30 SINOPEC SHI 59.21 SK Telecom SKM 25.11 SLGreenRealty SLG 100.04 s Salesforce.com CRM 106.23 Sanofi SNY 44.65 -0.48 0.19 -0.43 -2.27 0.57 1.62 -0.20 0.07 0.26 -0.86 -0.03 ... 0.44 -0.64 1.98 0.32 0.08 -0.84 0.73 -0.83 -0.61 -0.94 0.17 -0.26 -0.20 -0.02 -0.11 -0.15 0.30 0.44 -0.28 0.30 -0.23 -0.79 -0.20 0.44 -0.64 0.35 0.14 -0.39 -1.63 -0.81 0.01 -0.55 -0.25 1.72 0.34 -0.80 -1.59 -0.94 -0.86 0.08 -0.79 -0.49 0.97 1.92 -4.11 -0.35 -0.24 0.62 -0.21 -0.52 0.30 -0.13 0.18 0.12 -0.88 -0.12 1.06 -0.33 0.20 -0.97 0.42 0.57 0.11 0.10 -0.21 -1.07 0.53 -0.34 -0.52 0.23 0.50 0.23 0.25 -0.52 0.01 0.22 -0.41 -1.20 -0.02 -0.96 -0.49 0.61 -0.05 0.56 -0.12 0.02 -0.97 -0.10 -0.08 0.71 1.27 -0.93 0.05 -0.02 0.45 0.01 Stock Net Sym Close Chg SantanderCons SC 15.78 Sasol SSL 30.04 Scana SCG 44.50 Schlumberger SLB 62.78 SchwabC SCHW 44.59 ScottsMiracleGro SMG 98.15 SealedAir SEE 45.10 SemicondctrMfg SMI 7.90 s SempraEnergy SRE 122.23 SensataTech ST 47.31 ServiceCorp SCI 34.79 ServiceMaster SERV 46.75 ServiceNow NOW 124.48 ShawComm B SJR 22.43 SherwinWilliams SHW 389.13 ShinhanFin SHG 43.44 Shopify SHOP 98.97 SimonProperty SPG 160.51 SmithAO AOS 58.82 Smith&Nephew SNN 35.74 Smucker SJM 108.19 Snap SNAP 12.57 SnapOn SNA 156.68 SOQUIMICH SQM 57.93 Sony SNE 46.05 Southern SO 52.31 SoCopper SCCO 42.90 SouthwestAir LUV 53.75 t SpectraEnerPtrs SEP 40.10 SpectrumBrands SPB 103.60 SpiritAeroSys SPR 80.85 Sprint S 5.93 s Square SQ 39.74 StanleyBlackDck SWK 164.11 StarwoodProp STWD 21.72 StateStreet STT 91.31 Statoil STO 20.24 Steris STE 88.26 STMicroelec STM 23.94 Stryker SYK 155.95 SumitomoMits SMFG 7.79 s SunComms SUI 93.58 SunLifeFinancial SLF 38.90 SuncorEnergy SU 35.77 SunTrustBanks STI 57.64 SynchronyFin SYF 32.56 Syngenta SYT 92.30 Sysco SYY 54.93 TAL Education TAL 28.76 s TE Connectivity TEL 93.82 Telus TU 37.96 TIM Part TSU 17.34 t TJX TJX 67.94 TableauSftwr DATA 71.18 TaiwanSemi TSM 41.86 Tapestry TPR 40.20 TargaResources TRGP 41.56 Target TGT 60.09 TataMotors TTM 31.62 TechnipFMC FTI 27.16 TeckRscsB TECK 21.20 TelecomArgentina TEO 30.86 TelecomItalia TI 7.84 TelecomItalia A TI.A 6.56 TeledyneTech TDY 178.94 Teleflex TFX 256.55 TelefonicaBras VIV 14.65 Telefonica TEF 9.92 TelekmIndonesia TLK 29.86 Tenaris TS 28.71 Teradyne TER 43.35 TevaPharm TEVA 11.75 Textron TXT 53.57 ThermoFisherSci TMO 189.08 ThomsonReuters TRI 44.37 ThorIndustries THO 131.77 3M MMM 229.33 Tiffany TIF 93.55 TimeWarner TWX 87.51 s Toll Bros TOL 47.05 Torchmark TMK 85.18 Toro TTC 61.84 TorontoDomBk TD 57.23 Total TOT 55.21 TotalSystem TSS 73.41 ToyotaMotor TM 124.87 TransCanada TRP 49.58 TransDigm TDG 268.02 s TransUnion TRU 54.47 Travelers TRV 133.86 TurkcellIletism TKC 9.10 TurquoiseHill TRQ 3.02 Twitter TWTR 20.05 TylerTech TYL 171.91 s TysonFoods TSN 76.07 UBS Group UBS 17.01 UDR UDR 39.99 UGI UGI 48.71 US Foods USFD 26.81 UltraparPart UGP 21.39 Unilever UN 57.08 Unilever UL 55.81 UnionPacific UNP 116.23 t UnitedContinental UAL 57.20 UnitedMicro UMC 2.56 UPS B UPS 114.07 UnitedRentals URI 144.87 -0.15 -0.31 -0.10 -2.26 -0.01 -0.95 0.12 -1.16 0.27 -0.07 -0.01 -0.14 -0.55 -0.15 -0.58 0.23 0.20 0.20 -0.10 0.22 1.70 0.17 0.61 -1.30 -0.03 0.49 -1.03 0.50 0.05 -1.41 0.60 -0.10 -0.24 0.14 0.07 0.52 -0.45 0.73 0.08 0.20 -0.06 0.29 -0.03 -0.53 0.31 -0.03 ... 0.91 -0.80 0.46 -0.10 -0.38 -2.82 -0.06 -0.15 -0.24 -0.73 0.31 -0.37 -1.24 -0.64 -1.70 -0.22 -0.01 -0.43 -0.05 -0.21 0.02 -0.15 -0.68 -0.50 0.01 -0.13 0.87 0.09 1.32 1.11 0.47 -0.98 1.00 0.49 -0.08 0.06 -0.34 0.64 -0.80 0.10 6.02 0.46 0.54 0.09 -0.06 -0.12 1.02 0.48 ... 0.05 0.40 0.23 -0.44 -0.03 -0.05 -0.25 -0.61 -0.01 -0.74 0.26 Stock Net Sym Close Chg US Bancorp USB 51.83 UnitedTech UTX 118.80 UnitedHealth UNH 211.71 UniversalHealthB UHS 97.00 UnumGroup UNM 52.81 VEREIT VER 8.13 VF VFC 69.92 Visa V 111.98 VailResorts MTN 229.73 Vale VALE 9.77 ValeroEnergy VLO 81.37 Vantiv VNTV 69.82 s VarianMed VAR 109.34 Vectren VVC 68.20 Vedanta VEDL 18.77 VeevaSystems VEEV 60.79 Ventas VTR 65.04 Verizon VZ 44.22 VistraEnergy VST 19.18 s VMware VMW 122.47 VornadoRealty VNO 76.14 VoyaFinancial VOYA 41.29 VulcanMatls VMC 123.92 WABCO WBC 143.55 s WEC Energy WEC 69.53 W.P.Carey WPC 71.33 Wabtec WAB 73.53 Wal-Mart WMT 91.09 WasteConnections WCN 70.69 WasteMgt WM 82.38 Waters WAT 195.64 Watsco WSO 164.19 WellCareHealth WCG 200.11 WellsFargo WFC 54.04 Welltower HCN 68.09 WestPharmSvcs WST 100.85 WestarEnergy WR 55.49 WestAllianceBcp WAL 54.05 t WesternGasEquity WGP 36.37 t WesternGasPtrs WES 44.07 WesternUnion WU 19.65 WestlakeChem WLK 92.75 WestpacBanking WBK 24.24 WestRock WRK 58.66 Weyerhaeuser WY 36.20 WheatonPrecMet WPM 20.51 Whirlpool WHR 161.00 Williams WMB 27.72 WilliamsPartners WPZ 35.18 Wipro WIT 5.17 WooriBank WF 41.20 Wyndham WYN 107.54 XPO Logistics XPO 73.22 s XcelEnergy XEL 51.80 Xerox XRX 28.08 Xylem XYL 66.34 YPF YPF 22.37 YumBrands YUM 79.43 YumChina YUMC 41.96 ZTO Express ZTO 16.56 ZayoGroup ZAYO 34.37 ZimmerBiomet ZBH 112.21 Zoetis ZTS 69.90 0.15 1.73 -0.95 -0.76 -0.01 -0.10 0.25 0.58 0.40 -0.33 0.70 0.43 1.10 1.27 -0.53 -0.70 -0.35 -0.53 0.23 0.63 0.17 0.25 -0.07 -1.21 1.18 -0.36 -1.73 0.10 0.54 0.24 1.00 -0.19 -1.54 0.32 -0.23 -0.78 0.77 0.30 0.10 -0.54 0.13 -1.20 -0.35 -0.18 0.24 0.30 -0.67 -0.51 -1.05 0.08 -0.30 1.24 0.74 1.01 -0.09 0.31 -0.79 -0.01 -0.17 -0.36 0.38 1.15 1.02 NASDAQ AGNC Invt AGNC 19.94 Ansys ANSS 149.43 ASML ASML 180.34 Abiomed ABMD 193.75 ActivisionBliz ATVI 64.03 AdobeSystems ADBE 181.32 AdvMicroDevices AMD 11.12 AkamaiTech AKAM 53.75 AlexionPharm ALXN 109.98 AlignTech ALGN 254.02 Alkermes ALKS 47.69 AlnylamPharm ALNY130.32 Alphabet C GOOG 1026.00 Alphabet A GOOGL 1041.64 Altaba AABA 69.52 Amazon.com AMZN 1136.84 Amdocs DOX 63.79 Amerco UHAL 363.63 AmerAirlines AAL 45.81 Amgen AMGN 170.13 AnalogDevices ADI 90.44 Apple AAPL 171.34 ApplMaterials AMAT 56.42 ArchCapital ACGL 95.56 Atlassian TEAM 52.38 Autodesk ADSK 123.87 ADP ADP 112.08 Baidu BIDU 234.92 BankofOzarks OZRK 43.78 Biogen BIIB 309.69 BioMarinPharm BMRN 81.41 Bioverativ BIVV 54.39 bluebirdbio BLUE 158.35 BrighthouseFin BHF 55.38 Broadcom AVGO 263.26 CA CA 32.31 CDK Global CDK 62.66 CDW CDW 67.17 CH Robinson CHRW 80.37 CME Group CME 140.20 CSX CSX 49.40 s CadenceDesign CDNS 44.77 0.12 -1.44 1.49 -1.38 0.41 -0.53 0.03 0.23 -3.47 0.29 -1.48 1.21 0.25 0.44 -0.75 7.67 1.25 -1.80 0.07 -1.37 0.41 -2.63 -0.61 -0.14 0.11 -0.77 0.55 -2.45 0.22 -6.02 0.35 0.48 3.80 -0.61 -1.75 -0.01 -0.60 -0.57 0.01 0.05 -0.35 0.10 Stock Net Sym Close Chg CaesarsEnt CZR 12.40 Carlyle CG 20.65 s CboeGlobalMkts CBOE 116.60 Celgene CELG 98.86 CentennialRsc CDEV 19.78 Cerner CERN 65.07 CharterComms CHTR 336.81 CheckPoint CHKP102.40 ChinaLodging HTHT 124.66 CincinnatiFin CINF 74.06 Cintas CTAS 149.20 CiscoSystems CSCO 34.04 CitrixSystems CTXS 85.22 s Cognex CGNX 137.73 CognizantTech CTSH 74.97 Coherent COHR 300.07 Comcast A CMCSA 36.86 CommerceBcshrs CBSH 55.66 CommScope COMM 33.84 Copart CPRT 35.88 CoStar CSGP 299.05 Costco COST 171.44 Ctrip.com CTRP 45.30 CypressSemi CY 16.78 CyrusOne CONE 63.70 DISH Network DISH 50.51 DentsplySirona XRAY 65.39 DiamondbkEner FANG 108.27 t DiscovComm C DISCK 15.27 DiscovComm A DISCA 16.28 DollarTree DLTR 93.45 E*TRADE ETFC 43.87 EXACT Sci EXAS 58.33 EastWestBncp EWBC 57.23 eBay EBAY 35.22 ElbitSystems ESLT 142.52 ElectronicArts EA 112.27 Equinix EQIX 481.05 Ericsson ERIC 5.95 ErieIndemnity A ERIE 122.34 Exelixis EXEL 25.11 Expedia EXPE 122.09 ExpeditorsIntl EXPD 59.39 ExpressScripts ESRX 60.25 F5Networks FFIV 121.22 Facebook FB 178.07 Fastenal FAST 47.47 FifthThirdBncp FITB 28.61 FirstSolar FSLR 61.28 Fiserv FISV 129.73 Flex FLEX 18.24 FlirSystems FLIR 47.09 Fortinet FTNT 40.02 Gaming&Leisure GLPI 36.56 s Garmin GRMN 60.75 GileadSciences GILD 71.15 Goodyear GT 29.36 Grifols GRFS 23.18 GpoFinGalicia GGAL 50.27 HD Supply HDS 34.58 Hasbro HAS 95.98 t HenrySchein HSIC 66.84 Hologic HOLX 39.62 JBHunt JBHT 102.47 HuntingtonBcshs HBAN 13.61 IAC/InterActive IAC 126.12 IdexxLab IDXX 149.54 IHSMarkit INFO 43.89 s IPG Photonics IPGP 226.27 IRSA Prop IRCP 56.46 IcahnEnterprises IEP 52.87 Icon ICLR 112.35 Illumina ILMN 206.05 Incyte INCY 105.12 Intel INTC 45.86 InteractiveBrkrs IBKR 54.05 s Intuit INTU 155.21 IntuitiveSurgical ISRG 390.97 IonisPharma IONS 53.53 JD.com JD 38.90 JackHenry JKHY 113.10 JazzPharma JAZZ 134.24 JetBlue JBLU 19.63 JunoTherap JUNO 53.86 KLA Tencor KLAC 102.15 KraftHeinz KHC 79.38 LKQ LKQ 37.46 LamResearch LRCX 208.64 LamarAdv LAMR 76.26 LibertyBroadbandC LBRDK 87.88 LibertyBroadbandA LBRDA 86.85 LibertyGlobal A LBTYA 29.35 LibertyGlobal C LBTYK 28.34 LibertyLiLAC C LILAK 22.06 LibertyLiLAC A LILA 22.04 LibertyQVC A QVCA 23.73 LibertyVenturesA LVNTA 56.13 LibertyFormOne C FWONK 36.12 LibertyFormOne A FWONA 34.42 LibertyBraves A BATRA 21.71 LibertyBraves C BATRK 21.76 LibertySirius A LSXMA 40.48 LibertySirius C LSXMK 40.37 LincolnElectric LECO 86.38 LogitechIntl LOGI 34.68 LogMeIn LOGM 114.50 lululemon LULU 64.93 MKS Instrum MKSI 103.40 ... -0.53 0.86 -2.30 -0.31 -0.40 -6.91 -0.40 -4.11 0.76 1.85 0.09 0.96 0.23 0.41 -1.25 -0.39 -0.18 -0.10 ... 2.62 -0.02 -1.18 -0.14 -0.42 -0.35 -0.41 -2.70 -0.66 -0.71 -0.24 0.27 0.11 0.20 -0.63 -1.72 0.26 -1.07 -0.06 0.64 -0.94 1.81 -0.02 -0.63 0.37 -0.70 0.24 0.42 -0.29 1.57 -0.03 -0.02 -0.33 -0.08 0.17 -1.70 0.13 0.38 -1.33 -0.40 -0.85 0.34 -1.02 -0.11 0.25 2.45 1.75 0.90 1.58 ... -0.86 -0.89 -3.09 -2.09 0.11 0.15 0.32 -1.15 -1.31 -2.44 0.25 -2.23 0.68 -2.19 0.81 -0.47 0.24 -0.59 -0.03 -1.25 -1.86 -0.41 -0.46 0.28 0.08 0.30 -0.58 -0.66 -0.77 -0.51 -0.53 -1.35 -1.47 0.04 -0.42 -1.10 0.33 -0.75 Stock Net Sym Close Chg MarketAxess MKTX 173.94 Marriott MAR 123.06 MarvellTech MRVL 20.12 MatchGroup MTCH 29.39 Mattel MAT 18.54 MaximIntProducts MXIM 53.66 MelcoResorts MLCO 24.64 MercadoLibre MELI 262.49 MicrochipTech MCHP 91.01 s MicronTech MU 45.80 Microsemi MSCC 52.91 Microsoft MSFT 84.05 t Middleby MIDD 110.64 Momo MOMO 29.19 Mondelez MDLZ 42.53 s MonsterBev MNST 62.63 Mylan MYL 37.85 NXP Semi NXPI 115.50 Nasdaq NDAQ 75.97 NatlInstruments NATI 44.38 NektarTherap NKTR 39.56 NetApp NTAP 45.62 Netease NTES 298.56 Netflix NFLX 195.71 Neurocrine NBIX 74.17 NewsCorp B NWS 15.55 NewsCorp A NWSA 15.27 Nordson NDSN 125.28 NorthernTrust NTRS 92.64 NorwegCruise NCLH 55.10 NVIDIA NVDA 214.18 OReillyAuto ORLY 215.89 OldDomFreight ODFL 119.03 ON Semi ON 21.42 OpenText OTEX 33.23 PTC PTC 64.28 Paccar PCAR 68.67 PacWestBancorp PACW 44.94 Paychex PAYX 65.37 PayPal PYPL 74.49 People'sUtdFin PBCT 18.28 PilgrimPride PPC 34.24 Priceline PCLN 1719.50 Qiagen QGEN 30.85 Qorvo QRVO 78.41 Qualcomm QCOM 66.00 RandgoldRscs GOLD 92.07 RegenPharm REGN 384.80 RossStores ROST 64.47 RoyalGold RGLD 85.96 Ryanair RYAAY 112.41 SBA Comm SBAC 165.53 SEI Investments SEIC 64.91 Sina SINA 106.50 SS&C Tech SSNC 39.77 SVB Fin SIVB 213.28 ScrippsNetworks SNI 78.07 Seagate STX 37.49 SeattleGenetics SGEN 57.20 Shire SHPG 139.27 SignatureBank SBNY 131.02 SiriusXM SIRI 5.35 Skyworks SWKS 111.21 Splunk SPLK 68.35 Starbucks SBUX 56.93 SteelDynamics STLD 36.55 Symantec SYMC 28.10 s Synopsys SNPS 87.76 TD Ameritrade AMTD 49.64 T-MobileUS TMUS 56.54 TRowePrice TROW 94.48 TakeTwoSoftware TTWO 118.88 Tesla TSLA 308.70 TexasInstruments TXN 96.96 TractorSupply TSCO 61.65 Trimble TRMB 41.30 21stCenturyFoxA FOXA 28.03 21stCenturyFoxB FOX 27.31 UltaBeauty ULTA 199.05 UltSoftware ULTI 198.37 UnivDisplay OLED 177.45 VEON VEON 3.79 s VeriSign VRSN 111.17 VeriskAnalytics VRSK 91.11 VertxPharm VRTX 147.82 Viacom B VIAB 24.54 Viacom A VIA 29.95 s Vodafone VOD 30.48 t WPP WPPGY 85.02 WalgreensBoots WBA 70.59 s Weibo WB 112.21 WesternDigital WDC 91.58 WillisTowers WLTW 162.03 Workday WDAY 107.47 WynnResorts WYNN 153.60 Xilinx XLNX 72.05 Yandex YNDX 31.25 ZebraTech ZBRA 104.99 Zillow C Z 39.07 Zillow A ZG 39.28 ZionsBancorp ZION 46.49 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO W E D N E S D AY, D E C E M B E R 1 3 , N E W Y O R K C I T Y Join WSJ Pro journalists and cybersecurity experts for an exclusive event on cyber risks. Tailored to the needs of senior managers, the Cybersecurity Executive Forum will help you navigate the everevolving cybersecurity landscape, from protecting data and staying compliant with major laws to defending your business and how to respond should a crisis emerge. SPEAKERS INCLUDE Ajay Arora John P. Carlin Theresa Payton Stephen Schmidt CEO and Co-Founder, Vera Chair, Global Risk and Crisis Management Team, Morrison & Foerster CEO, Fortalice Solutions; CIO, The White House (2006–2008) VP, Security Engineering and Chief Information Security Officer, Amazon Web Services Wednesday, December 13, 2017 The Grand Hyatt 109 E 42nd St, New York, NY 10017 © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5977 Request your invitation today: cyber.wsj.com -0.58 2.67 -0.01 0.70 0.90 0.20 -0.49 -4.59 -0.01 0.20 0.29 0.12 1.48 -0.69 0.48 0.43 0.28 -0.15 0.56 -0.27 2.46 -0.38 -3.60 0.63 -0.47 -0.05 0.04 1.47 0.18 -0.17 1.55 1.72 0.79 -0.16 -0.18 -0.30 -0.65 -0.26 0.27 0.46 0.07 0.20 -2.65 0.08 -0.67 -0.49 1.50 -8.82 -0.44 -0.43 1.00 0.33 0.24 0.35 -0.04 1.02 -0.81 -0.17 0.08 0.95 3.83 -0.15 0.91 0.61 0.29 -0.80 0.13 -0.06 -0.08 0.10 1.07 0.62 -6.70 -0.07 0.32 0.31 -0.52 -0.51 1.02 0.37 0.40 0.07 -0.01 0.99 -0.21 -0.18 -0.20 1.63 0.20 0.22 3.63 3.14 0.54 1.30 -1.64 0.07 -0.37 0.05 -0.05 0.08 1.22 48.50 27.59 26.13 31.32 -0.78 -0.12 -0.27 -0.30 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. B16 | Wednesday, November 15, 2017 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 23409.47 t 30.23, or 0.13% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.12 20.63 P/E estimate * 19.22 17.66 Dividend yield 2.21 2.47 All-time high 23563.36, 11/08/17 Nasdaq Composite Index Last 2578.87 t 5.97, or 0.23% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.42 23.99 P/E estimate * 19.37 18.05 Dividend yield 1.92 2.17 All-time high: 2594.38, 11/08/17 Last Year ago 6737.87 t 19.72, or 0.29% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.13 23.37 P/E estimate * 21.32 18.87 Dividend yield 1.04 1.24 All-time high: 6789.12, 11/08/17 Current divisor 0.14523396877348 23500 2580 6750 23000 2550 6650 22500 2520 6550 22000 2490 6450 2460 6350 Session high t DOWN Session open t Close UP Close Open Session low 65-day moving average 21500 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 9514.94 9468.55 -0.13 23563.36 18867.93 23.7 18.5 9.9 10038.13 8749.08 7.7 4.9 1.5 Most-active issues in late trading 774.47 626.66 21.9 17.4 9.7 26830.60 22616.13 691.56 575.45 17.7 17.9 14.6 12.9 7.9 7.9 % chg 774.71 761.94 Utility Average Total Stock Market Barron's 400 9489.18 -29.66 774.47 High 1.19 9.08 -0.24 26673.25 26553.28 26664.02 -63.71 679.70 676.77 679.37 -0.57 Nasdaq Stock Market Nasdaq Composite 6743.63 Nasdaq 100 6300.46 Standard & Poor's 500 Index 6709.27 6263.77 2579.66 -0.08 -0.29 6737.87 -19.72 6293.64 -22.54 2566.56 2578.87 -5.97 52-Week Low 6789.12 6345.81 -0.36 -0.23 2594.38 MidCap 400 SmallCap 600 1828.73 895.48 1822.21 891.24 1826.80 894.74 -2.13 -0.30 -0.12 -0.03 1843.36 918.72 Other Indexes Russell 2000 1474.27 1465.38 1471.26 -3.81 -0.26 1512.09 NYSE Composite -0.30 12316.83 12238.08 12280.11 -36.71 537.20 534.52 NYSE Arca Biotech 4076.95 3997.74 NYSE Arca Pharma Value Line 535.90 % chg 533.64 530.01 532.52 -0.19 KBW Bank 98.75 97.76 0.49 PHLX§ Gold/Silver 98.72 80.46 79.52 -0.41 PHLX§ Oil Service 80.00 137.38 132.69 132.82 1308.54 12.61 1295.41 11.45 1305.00 11.59 PHLX§ Semiconductor CBOE Volatility -0.92 -0.04 0.49 -0.51 -5.31 -3.84 -0.12 -1.58 0.09 0.78 Philadelphia Stock Exchange % chg 3-yr. ann. YTD 2176.94 25.2 29.4 12.8 14.2 18.3 15.2 1595.53 795.17 14.5 12.5 10.0 6.8 8.5 9.6 1302.14 13.0 8.4 7.8 8.1 Volume (000) Symbol YTD % chg –0.28 –0.20 –0.17 16.2 17.5 20.3 DJ Americas 618.91 –0.32 –2.00 Sao Paulo Bovespa 70826.59 –1648.58 –2.27 S&P/TSX Comp 15913.13 –113.13 –0.71 S&P/BMV IPC –0.27 47873.65 –128.78 Santiago IPSA –0.53 4026.32 –21.50 14.5 17.6 4.1 4.9 24.9 Close Net chg 2942.56 383.06 257.33 The Global Dow DJ Global Index DJ Global ex U.S. –8.16 –0.77 –0.43 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 100 383.86 387.08 3984.63 5315.58 13033.48 1411.82 22297.08 541.73 1136.86 9990.40 579.12 9130.48 7414.42 –2.27 –1.62 –22.94 –26.05 –40.94 –6.66 –140.56 –3.70 –11.93 –59.50 0.18 –32.26 –0.76 –0.59 –0.42 –0.57 –0.49 –0.31 –0.47 –0.63 –0.68 –1.04 –0.59 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 5968.70 Shanghai Composite 3429.55 Hang Seng 29152.12 S&P BSE Sensex 32941.87 Nikkei Stock Avg 22380.01 Straits Times 3399.09 Kospi 2526.64 Weighted 10687.18 –53.10 –18.29 –30.06 –91.69 –0.98 –20.04 –3.71 3.26 –0.88 –0.53 –0.10 –0.28 –0.004 –0.59 –0.15 Net chg After Hours % chg High -0.12 9,248.0 257.61 Bank of America BAC 5,774.0 26.32 0.08 0.30 26.32 26.17 Pfizer PFE 2,287.0 35.43 0.05 0.14 35.51 35.28 VanEck Vectors Jr Gold GDXJ 2,223.8 31.67 … unch. 31.69 31.65 Time Warner TWX 2,164.3 87.20 -0.31 -0.35 87.80 86.66 Ford Motor F 2,138.3 12.02 … unch. 12.04 12.00 Cisco Systems CSCO 2,022.7 34.09 0.05 0.15 34.10 33.91 Intel INTC 1,906.1 45.78 -0.08 -0.17 45.90 45.54 -0.05 258.36 257.37 Percentage gainers… SORL Auto Parts SORL 849.9 8.15 2.16 36.06 8.88 6.11 Quarterhill QTRH 12.3 2.00 0.33 19.76 2.00 1.75 Synacor SYNC 16.2 2.55 0.25 10.87 2.55 2.50 CarGurus Cl A CARG 96.8 32.95 3.13 10.50 36.00 29.00 Amyris AMRS 108.7 3.38 0.21 6.62 3.52 3.10 2.75 14.3 11.1 4.1 545.98 492.69 8.7 5.9 2.6 4304.77 3075.02 17.5 31.6 7.5 560.52 463.78 9.4 10.6 -0.1 ...And losers 102.31 83.90 15.3 7.6 10.7 TRACON Pharmaceuticals TCON 15.3 2.75 -0.25 -8.33 3.00 96.72 73.03 -2.9 1.4 4.1 Achillion Pharm ACHN 64.9 3.41 -0.28 -7.59 3.85 3.19 192.66 117.79 -19.7 -27.7 -18.3 MACOM Tech Solutions MTSI 196.5 34.70 -1.91 -5.22 36.61 28.56 44.0 -17.5 Diana Containerships DCIX 5.4 6.60 -0.34 -4.90 7.00 6.60 Yirendai ADR YRD 35.7 39.80 -1.95 -4.67 43.75 39.28 1321.13 16.04 836.79 53.9 9.14 -13.3 26.4 -4.5 6.2 10.5 10.5 9.3 13.5 –4.0 15.9 12.1 –1.3 6.8 8.3 11.1 3.8 0.03 –0.35 –0.01 5.3 10.5 32.5 23.7 17.1 18.0 24.7 15.5 0.03 Company Symbol Veritone Ossen Innovation ADR Remark Holdings Buffalo Wild Wings Aviat Networks VERI Servotronics Kulicke Soffa Inds Image Sensing Systems Phoenix New Media ADR Advance Auto Parts SVT Intl Game Technology Ominto Famous Dave's of America SemiLEDS Evolving Systems IGT High 52-Week Low % chg 74.92 7.76 3.61 1.50 5.10 1.93 175.10 95.00 24.14 9.25 ... 23.6 9.1 -11.4 54.1 Energy XXI Gulf Coast Network-1 Technologies China Recycling Energy Netshoes (Cayman) NCS Multistage EXXI 10.75 1.91 28.52 4.83 3.35 0.50 6.29 0.92 95.72 13.44 21.55 20.39 17.72 17.13 16.33 12.10 8.50 28.71 14.25 4.10 2.65 6.87 2.43 177.83 78.81 17.9 96.8 -5.6 63.4 -41.8 Calithera Biosciences China Lending China Zenix Auto Intl ADR Qualstar Synergy Pharmaceuticals CALA 27.45 3.70 4.45 2.80 4.55 15.09 14.91 14.10 13.20 12.35 32.07 17.25 23.05 2.57 6.60 3.38 5.49 1.61 5.70 3.80 -7.7 17.5 -10.1 -31.3 15.2 Aqua Metals TransEnterix Tandem Diabetes Care ARC Group Worldwide Cambium Learning Group AQMS ISNS FENG AAP OMNT DAVE LEDS EVOL 3.60 0.48 0.55 0.33 0.50 Most Active Stocks Company Symbol General Electric Roku Cl A iShares MSCI Emg Markets Bank of America Finl Select Sector SPDR GE SPDR S&P 500 ProSharesUltVIXST iPath S&P 500 VIX ST Fut JD.com ADR Petroleo Brasileiro ADR SPY ROKU EEM BAC XLF UVXY VXX JD PBR Selected rates A consumer rate against its benchmark over the past year 30-year mortgage, Rate Volume % chg from Latest Session (000) 65-day avg Close % chg 310,684 56,539 55,908 55,718 53,939 403.3 487.3 16.5 -13.3 4.1 51,897 40,491 39,923 38,058 36,520 -18.6 47.2 25.9 140.1 144.0 17.90 36.95 45.88 26.24 26.11 -5.89 -13.49 -0.67 -0.61 -0.04 t 30-year ﬁxed-rate mortgage 3.00 2.00 t 1.00 0.00 D J FMAM J J A S O N 2017 3.00 America Mortgage LLC Monroe, WA Tuesday 3.88% 425-345-0467 Cache Valley Bank Logan, UT 3.88% 435-753-3020 Family Federal Savings Fitchburg, MA 3.88% 978-353-0000 t 10-year Treasury note yield Langley Federal Credit Union 3.75% Newport News, VA 800-826-7490 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 1.40 1.42 Money market, annual yield 0.33 0.32 Five-year CD, annual yield 1.48 1.49 30-year mortgage, fixed† 3.87 3.92 15-year mortgage, fixed† 3.22 3.30 Jumbo mortgages, $424,100-plus† 4.26 4.26 Five-year adj mortgage (ARM)† 3.52 3.44 New-car loan, 48-month 3.02 3.00 HELOC, $30,000 5.06 4.41 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.91 l 0.26 l 1.19 l l 3.73 l 2.99 l 4.21 l 3.20 l 2.85 l 4.41 1.25 4.25 1.42 0.36 1.49 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.19 -0.11 -0.05 -0.15 0.06 -0.04 -0.03 -0.24 0.04 257.73 -0.23 16.41 1.17 35.16 0.74 38.90 -5.90 9.68 -8.85 5 0 1.50 –5 0.75 –10 0.00 –15 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 -2.33 -0.70 -0.40 -1.58 -0.41 -19.83 -19.19 -18.87 -17.31 -16.80 20.05 8.30 2.32 13.20 7.15 2.90 2.00 1.02 2.62 2.01 180.6 -60.5 57.8 118.8 -64.5 3.00 2.69 2.51 2.07 5.87 -0.58 -0.50 -0.46 -0.37 -1.03 -16.20 -15.67 -15.49 -15.12 -14.93 22.75 5.00 32.50 5.95 7.30 2.98 0.45 2.15 2.00 4.25 -73.6 62.0 -86.8 -48.4 17.4 ZX QBAK SGYP TRXC TNDM ARCW ABCD Ranked by change from 65-day average* Symbol GOLF IQDY EXXI CNCR KBWR Volume % chg from Latest Session (000) 65-day avg Close % chg -0.15 -0.50 -0.65 -0.04 0.00 6.56 9.90 30.64 25.90 9.80 17.63 0.92 27.62 -0.28 5.49 -34.25 23.59 -2.15 53.30 0.31 52-Week High Low 8.45 5.85 9.97 9.39 31.21 21.26 26.43 24.24 10.43 8.97 22.31 28.22 35.96 28.70 58.72 15.16 22.72 5.32 20.76 47.64 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days Currencies U.S.-dollar foreign-exchange rates in late New York trading s Euro s Yen 52-Week High Low US$vs, YTDchg Tues in US$ per US$ (%) Total Return (%) 52-wk 3-yr 2.174 2.103 2.237 1.818 1.626 1.917 2.381 3.169 2.670 n.a. 2.910 n.a. 2.309 3.074 2.580 5.251 2.820 1.935 2.609 3.390 2.790 n.a. 3.120 n.a. 2.058 2.879 2.380 n.a. 2.650 n.a. 1.006 4.507 2.706 n.a. 1.777 n.a. 795.879 5.655 5.618 6.290 5.279 8.893 5.596 1.696 3.768 2.329 n.a. 2.033 n.a. Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets US$vs, YTDchg Tues in US$ per US$ (%) Country/currency Americas Europe Argentina peso .0572 17.4822 10.2 Brazil real .3018 3.3131 1.8 Canada dollar .7855 1.2731 –5.3 Chile peso .001583 631.80 –5.7 Ecuador US dollar 1 1 unch Mexico peso .0522 19.1685 –7.6 Uruguay peso .03420 29.2400 –0.4 Venezuela b. fuerte .098262 10.1769 1.8 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 Asia-Pacific 2017 Yield (%) Last Week ago Country/currency Australian dollar .7632 1.3103 China yuan .1507 6.6361 Hong Kong dollar .1282 7.8026 India rupee .01529 65.421 Indonesia rupiah .0000738 13552 Japan yen .008814 113.46 Kazakhstan tenge .003009 332.37 Macau pataca .1247 8.0188 Malaysia ringgit .2384 4.1940 New Zealand dollar .6877 1.4541 Pakistan rupee .00950 105.250 Philippines peso .0196 51.139 Singapore dollar .7359 1.3589 South Korea won .0008964 1115.52 Sri Lanka rupee .0065100 153.61 Taiwan dollar .03321 30.112 Thailand baht .03028 33.030 Vietnam dong .00004403 22713 Commodities –5.6 –4.4 0.6 –3.7 0.2 –3.0 –0.4 1.3 –6.5 0.7 0.8 3.1 –6.1 –7.7 3.5 –7.2 –7.8 –0.3 .04609 21.698 –15.5 .1586 6.3068 –10.8 1.1799 .8476 –10.8 .003784 264.28 –10.2 .009669 103.42 –8.4 .1222 8.1801 –5.4 .2778 3.5999 –14.0 .01654 60.462 –1.3 .1191 8.3950 –7.8 1.0108 .9893 –2.9 .2573 3.8858 10.3 .0378 26.4530 –2.3 1.3165 .7596 –6.2 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6466 .3778 0.2 .0566 17.6590 –2.6 .2828 3.5359 –8.1 3.3068 .3024 –1.1 2.5968 .3851 0.03 .2640 3.788 4.0 .2666 3.7504 –0.01 .0696 14.3679 4.9 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.38 –0.35–0.40 –5.98 Sources: Tullett Prebon, WSJ Market Data Group COMMODITIES Tuesday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com 9.40 2.94 1.72 7.55 2.03 CLDC 1349 1053 1000 942 918 1458.494 EMBI Global, J.P. Morgan ... 8.3 160.8 ... ... 4,816 63 2,569 209 214 10-yr Treasury, Ryan ALM 1728.788 DJ Corporate 377.198 Aggregate, Barclays Capital 1936.770 High Yield 100, Merrill Lynch n.a. Fixed-Rate MBS, Barclays 1985.020 Muni Master, Merrill n.a. Treasury, Ryan ALM 35.96 5.32 5.05 2.60 9.39 0.95 26.96 6.86 29.07 15.01 Acushnet Holdings FlexShares Dividend Dyn Energy XXI Gulf Coast Loncar Cancer Immun ETF PS KBW Regional Bk 259.35 216.80 268.80 14.56 125.30 33.11 48.99 25.25 11.71 7.61 WSJ Dollar index 30 -34.25 -32.95 -27.99 -27.65 -22.18 10464 4150 2378 2040 1656 10% 2.25 Close NCSM 52-Week Low % chg -2.86 -1.45 -1.50 -2.66 -4.60 1,296 411 251 2,911 439 Corporate Borrowing Rates and Yields Bond total return index NETS High 5.49 2.95 3.86 6.96 16.14 TI.A Telecom Italia ADR Natl Energy Svcs Reunited NESR WisdomTree Emg Mkts xSOEXSOE REET iShares Global REIT ETF HCAC Hennessy Cap III 17.46 15.75 33.94 19.60 21.79 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago CREG Latest Session Close Net chg % chg 32.38 48.80 46.87 27.98 26.93 Yen, euro vs. dollar; dollar vs. major U.S. trading partners 3.75% Garden State Home Loans 3.75% Cherry Hill, NJ 609-216-7912 NYSE Arca * Primary market NYSE, NYSE American NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure. Company Forex Race notes and bonds t 4.00% Nasdaq Total volume*1,952,066,129 220,516,678 Adv. volume* 826,126,249 62,337,167 Decl. volume*1,091,194,355 156,335,996 Issues traded 3,061 1,318 Advances 1,309 423 Declines 1,613 860 Unchanged 139 35 New highs 69 29 New lows 99 35 Closing tick 227 13 Closing Arms† 1.07 1.24 Block trades* 7,375 1,155 52-Week High Low * Volumes of 100,000 shares or more are rounded to the nearest thousand 3.92% Bankrate.com avg†: NTIP Volume Movers s U.S. consumer rates Symbol 37.74 33.49 29.62 23.97 23.88 Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, Consumer Rates and Returns to Investor Company 28.98 7.94 2.83 0.71 MARK 4.81 1.10 BWLD 145.35 28.10 AVNW 15.98 3.08 OSN KLIC Total volume* 840,227,769 12,774,347 Adv. volume* 268,490,083 2,126,300 Decl. volume* 564,265,267 10,520,678 Issues traded 3,078 334 Advances 1,218 103 Declines 1,763 215 Unchanged 97 16 New highs 113 4 New lows 129 15 Closing tick 97 28 Closing Arms† 1.50 2.62 Block trades* 7,335 118 Percentage Losers Latest Session Close Net chg % chg CREDIT MARKETS & CURRENCIES WSJ .COM Low SPY Sources: SIX Financial Information; WSJ Market Data Group Interest rate Last SPDR S&P 500 Percentage Gainers... Latest % chg Region/Country Index Americas Brazil Canada Mexico Chile 27.7 32.1 Company NYSE NYSE Amer. Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes World 5251.11 4734.10 12430.52 10699.43 -0.24 -1.30 4045.25 -37.68 Volume, Advancers, Decliners -0.31 Net chg 23414.08 23271.57 23409.47 -30.23 Transportation Avg 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. Dow Jones Industrial Average Late Trading TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 608.33 -8.25 189.06 55.70 3.102 1281.50 -2.39 -1.06 -0.065 4.20 -1.34 616.58 532.01 -1.25 195.14 57.35 -1.87 3.93 -2.05 0.33 1346.00 166.50 42.53 2.56 1127.80 % Chg 12.92 YTD % chg 7.24 3.27 -1.79 3.69 21.59 14.51 -16.70 4.70 11.43 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B17 COMMODITIES Futures Contracts Open Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. 3.1030 3.1030 3.0450 3.0600 –0.0515 Nov Dec 3.1240 3.1285 3.0485 3.0650 –0.0515 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1276.90 1279.10 1276.90 1281.50 4.20 Dec 1278.90 1283.80 1269.70 1282.90 4.00 Feb'18 1282.90 1288.10 1274.40 1287.30 4.00 April 1285.10 1292.00 1279.00 1291.60 4.00 June 1289.80 1296.10 1283.00 1295.90 4.00 Dec 1303.80 1308.80 1296.80 1308.80 3.90 Palladium (NYM) - 50 troy oz.; $ per troy oz. 989.75 997.25 973.25 985.55 –4.15 Dec March'18 982.75 990.65 967.30 979.75 –4.30 June 982.20 982.25 980.60 973.75 –4.15 Platinum (NYM)-50 troy oz.; $ per troy oz. 928.30 928.70 928.30 924.10 –8.30 Nov Jan'18 934.70 935.70 923.00 927.30 –8.30 Silver (CMX)-5,000 troy oz.; $ per troy oz. 16.905 16.905 16.905 17.052 0.029 Nov Dec 17.060 17.095 16.860 17.073 0.026 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 56.72 56.77 54.81 55.70 –1.06 Dec Jan'18 56.96 56.98 55.00 55.89 –1.08 Feb 57.10 57.13 55.15 56.03 –1.10 March 57.26 57.26 55.30 56.16 –1.11 June 57.11 57.15 55.24 56.07 –1.11 Dec 55.60 55.61 53.79 54.54 –1.06 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.9340 1.9346 1.8824 1.9070 –.0251 Dec Jan'18 1.9367 1.9380 1.8870 1.9111 –.0242 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1.7881 1.7886 1.7325 1.7612 –.0317 Dec Jan'18 1.7761 1.7806 1.7251 1.7531 –.0301 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 3.141 3.149 3.064 3.102 –.065 Dec 3.239 3.238 3.197 2.963 2.943 Jan'18 Feb March April May Open interest 510 116,969 Contract High hilo Low 3.245 3.248 3.206 2.963 2.943 Settle 3.163 3.166 3.130 2.922 2.903 Open interest Chg 3.203 3.205 3.165 2.947 2.928 –.059 289,541 –.060 98,763 –.057 183,665 –.027 123,760 –.022 93,023 Agriculture Futures Corn (CBT)-5,000 bu.; cents per bu. 342.00 342.25 t 337.25 337.50 –4.75 Dec March'18 354.50 354.75 t 350.00 350.50 –4.50 Oats (CBT)-5,000 bu.; cents per bu. Dec 274.00 276.75 272.75 276.25 2.75 March'18 284.25 286.75 282.50 286.25 3.25 Soybeans (CBT)-5,000 bu.; cents per bu. Nov 966.00 967.25 958.50 959.00 –4.50 Jan'18 974.75 977.50 967.00 967.75 –6.50 Soybean Meal (CBT)-100 tons; $ per ton. 311.60 312.50 309.60 310.30 –1.00 Dec Jan'18 313.80 314.60 311.60 312.30 –1.10 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 34.33 34.40 34.01 34.01 –.32 Jan'18 34.48 34.55 34.15 34.16 –.32 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Nov 1115.50 1126.50 1115.50 1124.00 12.00 Jan'18 1136.50 1153.50 1134.00 1149.50 13.50 Wheat (CBT)-5,000 bu.; cents per bu. Dec 424.75 429.50 423.25 428.00 3.75 March'18 443.25 446.25 441.00 445.25 2.00 Wheat (KC)-5,000 bu.; cents per bu. 428.25 430.75 425.50 428.00 .50 Dec March'18 444.75 447.75 442.25 445.25 1.00 Wheat (MPLS)-5,000 bu.; cents per bu. 633.25 635.50 628.25 629.00 –4.25 Dec March'18 647.00 649.25 642.50 643.00 –4.00 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Nov 158.400 158.475 157.250 157.625 –1.075 Jan'18 156.650 156.875 153.575 153.900 –3.075 71 291,870 167,242 20,384 20,243 11,145 27,869 7,719 408 4 69,890 3 110,412 306,712 529,659 180,506 276,834 230,189 266,100 92,468 112,186 99,664 154,329 128,638 577,104 556,731 3,862 3,614 551 321,484 84,487 110,201 113,691 126,108 12 9,628 173,072 217,437 4,347 29,138 Cash Prices | WSJ.com/commodities Tuesday, November 14, 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. Tuesday Energy 0.9730 1.0496 3.080 3.030 3.150 2.680 2.830 2.360 2.890 59.850 12.100 Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Metals Tuesday Tuesday 16.9350 12869 (U.S.$ equivalent) Coins,wholesale $1,000 face-a LBMA Platinum Price PM *933.0 Platinum,Engelhard industrial 929.0 Platinum,Engelhard fabricated 1029.0 Palladium,Engelhard industrial 993.0 Palladium,Engelhard fabricated 1093.0 Aluminum, LME, $ per metric ton *2100.0 Copper,Comex spot 3.0600 Iron Ore, 62% Fe CFR China-s 62.8 Shredded Scrap, US Midwest-s,w 276 Steel, HRC USA, FOB Midwest Mill-s 607 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 1272.81 1368.27 1274.60 1414.81 *1278.40 *1277.95 1334.22 1347.05 1347.05 1554.79 1260.50 1347.05 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 16.9900 20.3880 17.0200 21.2750 £12.9200 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w n.a. 0.6785 *79.90 62.000 n.a. Grains and Feeds Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u n.a. 9.1850 7.6650 4.3900 3.8550 5.2950 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 n.a. 93 3.1000 93.1 483.9 225 88 213 3.0875 368.00 24.00 7.5000 193.09 176.57 0.8612 2.2800 170.00 171.00 74.25 2462 1.2667 1.4528 1.2750 15.55 0.84 66.20 1.3637 0.8983 n.a. 170.88 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 34.8500 0.2500 n.a. n.a. 0.2700 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 11/13 Source: WSJ Market Data Group Borrowing Benchmarks | WSJ.com/bonds Money Rates November 14, 2017 Sept. index level U.S. consumer price index 0.53 0.19 246.819 252.941 All items Core 2.2 1.7 International rates Week ago Latest 52-Week High Low 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 1.18 1.24 U.S. 1.38 0.15 U.S. government rates 1.75 1.75 1.75 1.00 Federal funds Effective rate High Low Bid Offer 1.1700 1.3125 1.0500 1.1600 1.1700 1.1700 1.3125 1.0500 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 0.3500 0.5625 0.2500 0.3000 0.3200 3.00 1.32 ENR .29 /.275 Q .55911 CLNSpJ CBA CEM EMO CTR EGIF FSIC BWG BWG BWG SCD HIPS SOR SOR WBIH WBII HYI HYI HYI TLI TLI TLI IGI IGI IGI IGI DMO DMO DMO MTT MTT MTT SBI SBI SBI 10.7 11.2 12.0 10.3 5.5 9.3 7.3 7.3 7.3 9.0 7.5 2.4 2.4 2.6 2.9 7.2 7.2 7.2 6.1 6.1 6.1 4.9 4.9 4.9 4.9 11.0 11.0 11.0 4.6 4.6 4.6 4.3 4.3 4.3 3.00 .20 .355 .32 .29 .073 .19 .0765 .0765 .0765 .31 .1075 .44 .24 .05363 .06088 .09 .09 .09 .053 .053 .053 .02918 .085 .085 .05582 .225 .225 .225 .084 .084 .084 .034 .034 .034 -0.405 -0.381 -0.322 -0.251 -0.372 -0.329 -0.275 -0.190 Value Traded -0.366 -0.311 -0.211 -0.071 -0.375 -0.332 -0.276 -0.191 52-Week High Low 1.244 42.742 1.366 0.244 1.229 107.850 1.506 0.257 Treasury MBS 2.25 1.31 1.32 Open Implied Settle Change Interest Rate 0.67 Company Payable / Record Dec14 /Nov30 Jan16 /Dec29 Funds and investment companies ClearBridge Amer Engy ClearBridge Engy MLP Fd Clearbridge Engy MLP Opp Clearbridge Engy MLP TR Eagle Growth & Incm Opps FS Investment Legg Mason BW Glbl Incm Legg Mason BW Glbl Incm Legg Mason BW Glbl Incm LMP Cap & Inco Fd Master Income ETF Source Capital Source Capital WBI Tactical Hi Incm WBI Tactical Incm Shares West Asst HY Def Opp Fd West Asst HY Def Opp Fd West Asst HY Def Opp Fd Western Asset Corp Loan Western Asset Corp Loan Western Asset Corp Loan Western Asset Invt Western Asset Invt Western Asset Invt Western Asset Invt Western Asset Mtg Opp Western Asset Mtg Opp Western Asset Mtg Opp Western Asset Mun Tr Fund Western Asset Mun Tr Fund Western Asset Mun Tr Fund Western Ast Inter Muni Fd Western Ast Inter Muni Fd Western Ast Inter Muni Fd 3.00 DTCC GCF Repo Index Futures Treasury Nov Treasury Dec Treasury Jan 1.26350 1.24389 1.26350 0.55011 1.41899 1.40258 1.41899 0.90622 Initial Colony NorthStar Pfd. J -0.376 -0.325 -0.214 -0.079 98.815 -0.015 8834 1.185 98.685 -0.005 2043 1.315 98.580 -0.005 450 1.420 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. Amount Yld % New/Old Frq 2.6 -0.372 -0.329 -0.275 -0.191 Latest Libor Increased Energizer Holdings 52-Week high low Commercial paper (AA financial) Dividend announcements from November 14. Symbol -0.400 -0.378 -0.314 -0.238 DTCC GCF Repo Index Dividend Changes Company Week ago Call money One month Three month Discount One month Three month Six month One year Other short-term rates 90 days Overnight repurchase -0.399 -0.378 -0.317 -0.251 Euro interbank offered rate (Euribor) 3.493 3.429 3.865 3.253 3.519 3.450 3.899 3.281 Latest 0.00 0.50 0.50 1.50 One month Three month Six month One year 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 Secondary market 30 days 60 days —52-WEEK— High Low 1.62208 1.59809 1.62208 1.27211 1.89261 1.86844 1.89261 1.60456 Six month One year 1.045 1.035 1.300 0.305 1.240 1.185 1.240 0.480 1.360 1.300 1.360 0.590 Policy Rates Euro zone Switzerland Britain Australia Week Latest ago Fannie Mae Prime rates U.S. Canada Japan —52-WEEK— High Low Treasury bill auction 4 weeks 13 weeks 26 weeks Q Q Q Q M Q M M M Q M Q M M M M M M M M M M M M M M M M M M M M M Nov30 /Nov24 Nov30 /Nov24 Nov30 /Nov24 Nov30 /Nov24 Nov30 /Nov20 Jan03 /Dec20 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Nov16 /Nov15 Dec15 /Nov24 Dec15 /Nov24 Nov16 /Nov15 Nov16 /Nov15 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec Feb'18 120.450 126.450 120.925 126.725 118.775 124.450 Dec Feb'18 62.400 70.275 62.400 70.300 59.900 67.375 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Chg Open interest 119.500 –1.075 75,344 125.150 –1.250 146,471 59.975 –2.325 67.500 –2.800 57,651 91,053 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 468.00 477.70 s 464.00 473.00 5.60 123 Nov Jan'18 453.60 455.70 448.30 452.50 –3.80 5,582 Milk (CME)-200,000 lbs., cents per lb. 16.83 16.84 16.79 16.82 .02 4,304 Nov Dec 15.65 15.77 15.59 15.76 .07 4,515 Cocoa (ICE-US)-10 metric tons; $ per ton. 2,195 2,201 2,147 2,149 –59 7,660 Dec March'18 2,196 2,204 2,152 2,155 –46 138,307 Coffee (ICE-US)-37,500 lbs.; cents per lb. 127.55 129.00 124.25 127.05 –.55 42,177 Dec March'18 130.70 132.30 127.50 130.45 –.30 110,657 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. 15.17 15.18 14.95 15.10 –.03 407,282 March May 15.04 15.12 14.96 15.10 .06 138,133 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 27.33 27.40 27.30 27.30 .05 2,779 March May 27.25 27.40 27.20 27.26 .11 1,808 Cotton (ICE-US)-50,000 lbs.; cents per lb. 68.90 69.39 68.58 68.60 –.28 43,342 Dec March'18 68.94 69.36 68.62 68.65 –.28 129,597 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. … … s … 161.40 .80 Dec Jan'18 160.25 162.00 157.70 161.40 .80 6,710 June Dec 152-110 153-040 152-050 152-280 15.0 762,195 Dec March'18 151-040 151-310 151-020 151-240 16.0 43,871 Treasury Notes (CBT)-$100,000; pts 32nds of 100% 124-195 124-265 124-160 124-235 3.5 3,222,704 Dec March'18 124-100 124-160 124-065 124-140 3.5 74,646 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 116-285 116-312 116-255 116-300 1.5 3,124,399 Dec March'18 116-212 116-245 116-187 116-230 2.0 83,726 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 107-170 107-175 107-162 107-167 –.5 1,752,754 Dec March'18 107-120 107-125 107-112 107-120 –.2 86,609 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.845 98.845 98.843 98.843 … 206,030 Nov Jan'18 98.615 98.620 t 98.610 98.615 … 342,831 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 100.672 100.906 100.578 100.781 .172 29,414 Dec 1 Month Libor (CME)-$3,000,000; pts of 100% ... ... ... 98.5400 … 2,264 Dec Eurodollar (CME)-$1,000,000; pts of 100% 98.4675 98.4700 98.4650 98.4675 … 1,729,063 Dec March'18 98.3000 98.3050 98.2850 98.3000 … 1,338,902 98.1750 98.0100 98.1800 98.0200 98.1600 97.9950 Symbol Wstrn Asset Emerg Mkts Wstrn Asset Emerg Mkts Wstrn Asset Emerg Mkts Wstrn Asset Gl Def Opp Fd Wstrn Asset Gl Def Opp Fd Wstrn Asset Gl Def Opp Fd Wstrn Asset Glbl Hi Inco Wstrn Asset Glbl Hi Inco Wstrn Asset Glbl Hi Inco Wstrn Asset High Inco II Wstrn Asset High Inco II Wstrn Asset High Inco II Wstrn Asset Mngd Muni Wstrn Asset Mngd Muni Wstrn Asset Mngd Muni Wstrn Asset Muni Hi Inco Wstrn Asset Muni Hi Inco Wstrn Asset Muni Hi Inco Wstrn Asset Muni Ptnrs Fd Wstrn Asset Muni Ptnrs Fd Wstrn Asset Muni Ptnrs Fd Wstrn Asset Opp Fd Wstrn Asset Opp Fd Wstrn Asset Opp Fd Wstrn Asset Var Rate Fd Wstrn Asset Var Rate Fd Wstrn Asset Var Rate Fd EMD EMD EMD GDO GDO GDO EHI EHI EHI HIX HIX HIX MMU MMU MMU MHF MHF MHF MNP MNP MNP HIO HIO HIO GFY GFY GFY Amount Yld % New/Old Frq 7.9 7.9 7.9 7.7 7.7 7.7 7.7 7.7 7.7 8.0 8.0 8.0 5.3 5.3 5.3 4.1 4.1 4.1 5.0 5.0 5.0 6.7 6.7 6.7 5.4 5.4 5.4 .10 .10 .10 .1135 .1135 .1135 .0635 .0635 .0635 .046 .046 .046 .063 .063 .063 .0255 .0255 .0255 .0625 .0625 .0625 .0275 .0275 .0275 .0775 .0775 .0775 M M M M M M M M M M M M M M M M M M M M M M M M M M M Payable / Record Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Dec29 /Dec22 Feb01 /Jan19 Mar01 /Feb16 Stocks GOL Linhas Aereas ADR Patrick Industries Universal Forest Products 5:2 3:2 3:1 GOL PATK UFPI Nov21 /Nov22 Dec08 /Dec11 Nov14 /Nov15 Foreign Deutsche Bk Contng Cap Tr Deutsche Bk Contng Cap Tr DHT Holdings National Grid ADR RenaissanceRe Hldgs Xinyuan Real Estate ADR DXB DXB DHT NGG RNR XIN 6.4 6.4 2.1 3.4 0.9 6.9 WRB 0.8 .40938 Q .40938 Q Q .02 1.0169 SA Q .32 Q .10 Nov24 /Nov22 Feb23 /Feb22 Dec06 /Nov28 Jan10 /Nov24 Dec29 /Dec15 Dec15 /Nov30 Special WR Berkley .50 Dec14 /Nov30 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Open interest Settle Chg 98.1750 98.0150 … 1,265,766 .0050 1,663,238 Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Dec March'18 .8814 .8865 .8838 .8882 .8791 .8842 .8830 .8879 .0011 275,587 .0011 4,437 Nov Dec .7850 .7854 .7850 .7877 .7850 .7832 .7836 –.0020 1,249 .7858 –.0001 141,295 Dec March'18 1.3124 1.3175 1.3199 1.3235 1.3086 1.3129 1.3176 1.3218 .0049 170,529 .0049 3,431 Dec March'18 1.0057 1.0131 1.0141 1.0211 1.0050 1.0123 1.0126 1.0198 .0061 .0061 .7612 .7630 .7611 .7610 .7609 .7647 .7644 .7643 .7643 .7627 .7609 .7610 .7609 .7605 .7609 .7631 .7629 .7628 .7626 .7624 Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF Australian Dollar (CME)-AUD 100,000; $ per AUD Dec Jan'18 Feb March June t t Mexican Peso (CME)-MXN 500,000; $ per MXN .05199 .05218 Dec March'18 .05126 .05140 Euro (CME)-€125,000; $ per € 1.1686 1.1826 Dec March'18 1.1755 1.1895 81,746 265 .0008 121,680 .0008 621 .0008 527 .0007 820 .0007 245 .05180 .05104 .05191 –.00007 178,493 .05113 –.00008 618 1.1683 1.1755 1.1815 1.1885 .0126 441,826 .0126 6,327 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 Interest Rate Futures Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Contract High hilo Low Open 23398 23387 23424 23410 23231 23225 S&P 500 Index (CME)-$250 x index 23375 23368 2581.30 2581.90 2564.50 2577.90 Dec March'18 2573.40 2577.40 2566.40 2578.50 Mini S&P 500 (CME)-$50 x index 2580.25 2582.25 2564.25 2578.00 Dec March'18 2581.00 2582.50 2565.00 2578.50 Mini S&P Midcap 400 (CME)-$100 x index 1826.80 1828.30 1820.80 1826.60 Dec March'18 1820.70 1820.70 s 1820.70 1824.70 Mini Nasdaq 100 (CME)-$20 x index 6310.8 6318.3 6262.8 6293.5 Dec March'18 6327.3 6333.5 6280.0 6309.8 Mini Russell 2000 (ICE-US)-$100 x index 1473.20 1474.40 1464.30 1470.60 Dec March'18 1468.70 1471.60 1468.70 1471.40 Mini Russell 1000 (ICE-US)-$100 x index 1426.40 1428.30 1422.40 1427.50 Dec March'18 … … … 1428.50 U.S. Dollar Index (ICE-US)-$1,000 x index 94.41 94.44 93.64 93.72 Dec March'18 94.10 94.10 93.35 93.43 –31 156,503 –31 1,766 –4.00 –3.90 62,256 4,953 –4.00 3,175,524 –4.00 79,827 –2.10 –2.10 93,164 9 –18.5 279,403 –18.3 2,336 –3.10 –3.10 68,352 80 –3.20 –3.20 295 1 –.67 –.66 44,923 2,575 Source: SIX Financial Information Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return close YTD total return (%) Yield (%) Latest Low High Index Total return close YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1985.02 2.2 Mortgage-Backed 1952.05 1.7 Ginnie Mae (GNMA) 2.870 2.570 3.090 3.260 3.030 3.520 1164.24 2.4 Fannie mae (FNMA) 2.920 2.670 3.120 3.6 Intermediate 2.830 2.530 3.010 1792.67 2.5 Freddie Mac (FHLMC) 2.940 2.680 3.130 3818.28 8.6 Long term 4.200 4.100 4.710 n.a. n.a. Muni Master n.a. n.a. n.a. 564.82 3.8 Double-A-rated 2.740 2.470 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a. 3.550 3.340 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a. n.a. n.a. 22-plus year n.a. n.a. n.a. 3.1 U.S. Aggregate 1936.77 2.670 2.380 2.790 U.S. Corporate Indexes Bloomberg Barclays 5.1 2766.37 2612.47 U.S. Corporate 5.7 713.64 Triple-B-rated High Yield Bonds Merrill Lynch 2.910 2.650 3.120 n.a. n.a. High Yield Constrained n.a. n.a. n.a. n.a. n.a. Triple-C-rated n.a. n.a. n.a. 543.39 1.2 Global Government 1.440 1.300 1.560 n.a. n.a. High Yield 100 n.a. n.a. n.a. 756.30 0.4 Canada 2.020 1.570 2.190 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 371.87 0.8 EMU§ 1.069 0.933 1.363 Europe High Yield Constrained n.a. n.a. n.a. U.S Agency Bloomberg Barclays 712.10 0.8 France 0.820 0.710 1.210 n.a. n.a. Global Government J.P. Morgan† 508.73 -1.1 Germany 0.470 0.210 0.620 1637.87 2.0 U.S Agency 2.050 1.600 2.050 287.95 -0.1 Japan 0.410 0.260 0.460 1464.75 1.2 10-20 years 1.890 1.400 1.890 561.57 -0.8 Netherlands 0.580 0.360 0.760 20-plus years 2.960 2.730 3.460 916.84 U.K. 1.620 1.340 1.790 2.900 2.610 3.090 795.88 7.3 4.5 Yankee 2449.82 0.4 7.7 Emerging Markets ** 5.655 5.279 6.290 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds Week Latest ago Chg From (%) Aug. '17 Sept. '16 Settle Cattle-Live (CME)-40,000 lbs.; cents per lb. 3354.83 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. Inflation Contract High hilo Low Open 90,296 138,654 29,259 30,730 WSJ.com/commodities ** EMBI Global Index † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous l 2.750 2.750 U.S. 2 1.691 t 10 2.383 t Australia 2 1.842 s 10 2.667 s 0.000 0.750 France 2 -0.577 t 10 0.756 t l 0.000 0.500 Germany 2 -0.738 t 10 0.399 t l 0.050 2.050 Italy 2 -0.224 t 10 1.828 t l 0.100 0.100 Japan 2 -0.179 t 10 0.052 s l 2.750 1.450 Spain 2 -0.357 t 10 1.521 t l 0.489 t 1.322 t l 1.500 2.250 1.750 4.250 U.K. 2 10 l l l l l l l l l Month ago Year ago 1.695 2.406 1.501 2.277 1.013 2.263 1.805 2.633 1.938 2.803 1.764 2.667 -0.574 0.782 -0.519 0.668 -0.731 0.419 -0.724 0.405 -0.219 1.833 -0.125 2.065 -0.169 0.052 -0.138 0.067 -0.351 1.533 -0.275 1.580 0.493 1.330 0.473 1.373 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago 11.0 22.8 75.1 40.3 -226.9 -162.4 -160.0 -144.7 -242.7 -198.7 -162.8 -194.5 -191.5 -55.5 -191.4 -57.3 -90.4 -18.1 -0.214 -187.1 -0.014 -233.2 -0.125 -204.8 1.532 -86.2 -186.5 -235.4 -122.6 -227.7 -204.6 -87.3 -113.7 -73.1 -120.2 -107.6 -81.8 -97.0 15.1 28.4 -0.588 -226.9 0.816 -162.7 -0.616 -242.9 0.318 -198.4 0.109 2.082 0.194 1.293 -120.2 -106.1 Source: Tullett Prebon Corporate Debt in that same company’s share price. Investment-grade spreads that tightened the most… Issuer Symbol Coupon (%) Bank of America Anheuser–Busch Inbev Finance Microsoft Precision Castparts Manulife Financial Teva Pharmaceutical Finance Deutsche Telekom Intl Finance Enterprise Products Operating BAC ABIBB MSFT PCP MFCCN TEVA DT EPD Maturity 8.000 Jan. 30, ’49 3.650 Feb. 1, ’26 2.650 Nov. 3, ’22 2.500 Jan. 15, ’23 4.061 Feb. 24, ’32 6.150 Feb. 1, ’36 2.485 Sept. 19, ’23 7.034 Jan. 15, ’68 Current Spread*, in basis points One-day change Last week Stock Performance Close ($) % chg n.a. 86 25 n.a. n.a. 381 n.a. n.a. 26.24 ... 84.05 ... ... … ... … –0.61 ... 0.14 ... ... … ... … 33 17 17 15 14 13 13 13 408 159 299 n.a. 95 138 n.a. 43 9.67 71.53 … 102.72 17.90 48.05 57.20 … –3.49 –0.64 … –0.76 –5.89 –4.34 0.40 … Bond Price as % of face value Current One-day change Last week 59 78 22 39 149 375 86 –45 –39 –13 –13 –12 –11 –11 –9 –8 …And spreads that widened the most Pitney Bowes Citigroup Teva Pharmaceutical Fin Netherlands III Philip Morris International General Electric Anadarko Petroleum Best Buy Huntington National Bank* PBI C TEVA PM GE APC BBY HBAN 4.700 April 1, ’23 6.250 Aug. 15, ’49 2.800 July 21, ’23 2.000 Feb. 21, ’20 5.000 Jan. 21, ’49 5.550 March 15, ’26 5.500 March 15, ’21 2.375 March 10, ’20 537 176 370 37 120 158 70 52 High-yield issues with the biggest price increases… Issuer Symbol Coupon (%) Eldorado Envision Healthcare EP Energy Navios Maritime Holdings Hexion Frontier Communications Tutor Perini TPC ERI EVHC EPENEG NM 6.000 6.250 6.375 8.125 9.000 8.125 6.875 8.750 HXN FTR TPC TPCG Maturity April 1, ’25 Dec. 1, ’24 June 15, ’23 Feb. 15, ’19 Nov. 15, ’20 Oct. 1, ’18 May 1, ’25 Dec. 15, ’20 105.500 100.520 57.350 99.125 70.625 99.620 106.250 99.000 4.25 2.27 1.35 1.13 0.88 0.62 0.50 0.50 Stock Performance Close ($) % chg 106.251 99.500 59.250 99.813 72.500 101.250 n.a. n.a. 29.05 28.52 ... 1.35 ... 6.46 23.85 ... 0.87 10.29 ... –14.56 ... –7.18 –2.65 ... 108.438 n.a. 97.000 73.500 95.875 90.750 93.375 83.031 ... ... 5.71 ... 6.46 … 14.40 10.71 ... ... –6.70 ... –7.18 … –6.07 –4.72 …And with the biggest price decreases Altice Luxembourg Riverbed Technology Nabors Industries EP Energy Frontier Communications Noble Holding International CenturyLink Transocean ATCNA RVBD NBR EPENEG FTR NE CTL RIG 7.625 Feb. 15, ’25 8.875 March 1, ’23 5.500 Jan. 15, ’23 8.000 Feb. 15, ’25 8.500 April 15, ’20 7.750 Jan. 15, ’24 5.625 April 1, ’25 6.800 March 15, ’38 96.500 –5.09 –3.13 92.875 –2.94 96.530 –2.25 67.500 –2.00 89.250 –2.00 86.500 –1.75 87.000 –1.75 80.250 *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 B18 | Wednesday, November 15, 2017 * **** THE WALL STREET JOURNAL. MONEY & INVESTING BY LAURA SAUNDERS Some of the largest fund companies in the country are pushing back against a littlenoticed provision in the Senate tax bill they argue will cost investors millions. The provision would prevent individual investors and fund managers from minimizing taxes by choosing specific shares when they sell part of a position. Instead, investors would have to sell their oldest shares first. The provision doesn’t affect holdings in taxdeferred retirement plans like 401(k) and individual retirement accounts. If the provision becomes law, “markets will work less well. Our fund managers will have their hands tied, and our shareholders will owe more in taxes,” said Thomas Faust, chief executive of Eaton Vance Corp., which manages more than $419 billion. The provision included in the Senate bill requires investors who are selling partial positions to assume that lots of securities bought at different prices are sold on a “firstin, first-out,” or FIFO, basis. The provision would affect index funds and exchange-traded funds, which are passively managed, as well as actively managed ones. “Vanguard is concerned with language that requires funds to sell their oldest shares first, mostly likely increasing significantly the amount of taxable distributions made to investors every year,” a Vanguard spokeswoman said. Here’s how the provision works: Say an investor owns two lots of one stock bought at different prices, and they are held in a taxable account. If the stock is trading at $100 now, each share acquired five years ago for $60 would have a $40 taxable gain. But each share bought two years ago at $110 would have a $10 loss. Current law allows investors, including fund managers, to choose which shares they part with. So selling shares bought for $110 would yield a loss that could offset other gains, while selling shares bought for $60 would produce a taxable gain. If the provision takes effect, the first shares sold would be deemed to have a cost of $60 each, and an investor couldn’t sell the $110 shares until all $60 shares were gone. The change would take effect for sales in 2018. It is estimated to raise $2.7 billion over 10 years. Supporters of the change say it would simplify a complex record-keeping issue. “Having all these choices is harmful to taxpayers and to the tax system,” says Steven Rosenthal, a tax attorney with the Tax Policy Center. The summary does contain language that seems to allow fund investors using “average cost” to continue. The wording of the proposed statute isn’t yet available. The provision would also affect taxpayers’ ability to maximize the value of charitable donations of appreciated securities. Under current law, taxpayers often don’t owe long-term capital-gains tax on shares they donate while getting a deduction for their full market value. The best shares to give may not be the oldest shares they acquired. “People who want to maximize tax savings by donating specific lots that aren’t their oldest ones should do it before year-end,” says Robert Gordon of Twenty-First Securities, a tax strategist in New York. Tax Bills Divide Landlords BY PETER GRANT The residential real-estate industry might be panicking about the Republican-backed tax overhaul making its way through Congress, but many in the commercial real-estate industry are delighted with what they see so far. Owners of office buildings, malls, warehouses and other commercial property would benefit from lower taxes on their profits and would be able to avoid a 30% limit on deductions for interest expense that would be imposed on other businesses, based on two separate bills originating in the House and the Senate. The Senate bill, unveiled last week, also would shorten the depreciation period for commercial property to 25 years from 39 years. Just as important, none of the provisions that commercial real-estate owners feared most were included in either proposal. For example, both the House and Senate bills would preserve the muchloved “1031 exchange” provision that enables sellers of real estate to defer capitalgains taxes by reinvesting the proceeds in some types of properties. Industry executives and lobbyists are cheering. “If the bill comes together as envisioned it will be a positive for the underlying economy and that’s what America needs,” said Jeffrey DeBoer, chief executive of the Real Estate Roundtable, a trade group. He pointed out a number of provisions remain unclear. Critics of the tax bills are using other descriptions: “The House and Senate bills are both windfalls for commercial real estate that boggle my mind,” said Steven Rosenthal, a senior fellow with the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution. The commercial property industry’s favorable reaction contrasts markedly with the C-SPAN Big Fund Firms Criticize Provision In Senate Proposal Bills would offer relief from a tax law Donald Trump criticized before a House committee in 1991. dismayed voices in the residential real-estate world. Realtors, home builders and other parties are upset by provisions they say would eliminate the tax incentives of homeownership, such as the provision in the House bill that would reduce the cap on the deduction The proposals are seen as favoring commercial property over residential. for residential mortgage debt to $500,000 from $1 million. “This bill is a serious step in the wrong direction,” said Elizabeth Mendenhall, the incoming president of the National Association of Realtors in a letter last week to House members. Much could change in the weeks between now and the end of the year, when the GOP hopes to complete the biggest overhaul of the tax code since the Reagan administration. The House and Senate bills vary in many respects, including some provisions that would affect the commercial real-estate industry. Property owners in some states might benefit more than others if proposed limitations on deducting state and local taxes are enacted, according to a report by Green Street Advisors. Such a change could result in weaker economies in high-tax states like New York and California, reducing demand for space. Still, the comparatively favorable treatment of commercial property over residential reflects a sea change in the political and economic priorities of the Republican Party. Proponents of the House and Senate bills say the priority of tax overhaul is to stoke job creation by all businesses including commercial real estate, that any pain homeowners might suffer would be made up for by economic growth and that unfair tax breaks are being removed. At the same time, the preferential treatment of commercial property helps rectify More Americans Feel Like a Million Dollars BY BRIAN BLACKSTONE Posh Rodeo Drove in Beverly Hills, Calif. There are more than 15 million U.S.-based millionaires, according to a Credit Suisse study. rica, for example,” the Credit Suisse report said. U.S. households benefited in particular from their greater exposure to financial assets like stocks and bonds, meaning their wealth improves when the prices of these assets rise—more so than households in other countries. For the purposes of the study, Credit Suisse included the value of financial assets plus housing and other nonfinancial assets, minus debt. It also included private pension fund assets but didn’t include public pensions. “So far, the Trump presidency has seen businesses flourish and employment grow, though the ongoing supportive role played by the Federal Reserve has undoubtedly played a part here as well, and wealth inequality remains a prominent issue,” said Michael O’Sullivan, Credit Suisse’s chief investment officer for international wealth management. The report on millionaires came weeks after Credit Suisse’s rival, UBS Group AG, offered a more sobering view on U.S. billionaires. Although those ranks rose, too, the number of Asian billionaires surpassed those in the U.S. last year for the first time, led by China. SEC Rejects Delaying Surveillance Database BY DAVE MICHAELS AND ALEXANDER OSIPOVICH Wall Street’s top overseer rejected a last-minute request from securities exchanges to delay a vast database of trading information billed as the most advanced defense against manipulation and bouts of market mayhem. The Securities and Exchange Commission said late Tuesday that it wouldn’t agree to delay Wednesday’s launch of the Consolidated Audit Trail, a project regulators accelerated after they didn’t have enough data to explain a wild trading session in May 2010 known as the flash crash. Exchanges recently launched a lobbying Deutsche Bank CEO, Top Investor Ease Tension BY JENNY STRASBURG FG/BAUER-GRIFFIN/GC IMAGES/GETTY IMAGES ZURICH—The U.S. may have ceded its leading position in the billionaires stakes to Asia, but it remains the undisputed king of millionaires. A report Tuesday from Swiss banking giant Credit Suisse Group AG showed that the number of dollar-based millionaires around the world rose in the year through mid-2017 by 2.3 million, with nearly half of them residing in the U.S. But the news wasn’t as good for the millennial generation that became adults in the new century, with their wealth prospects held back by factors such as high student debt, youth unemployment and frothy housing markets, the report said. There were more than 15 million U.S.-based millionaires in 2017, up 1.1 million from a year earlier. Globally, there were just over 36 million of them. Japan and the U.K. were a distant second and third, respectively, though their millionaire ranks fell in the past year due to declining values in their currencies, a particular issue for the U.K. in the wake of Brexit. “In the post-crisis period, the source of wealth growth tilted heavily towards the United States, opening a wide gap with Japan and all of Af- what many in the industry considered a major affront delivered by the Tax Reform Act of 1986. That law outraged many in the industry partly by limiting the use of so-called passive losses, like those coming from investments in real estate by doctors and dentists. Many in the industry blamed the recession of the early 1990s partly on those changes. In 1991, when Donald Trump was 45 years old, he testified before the House Budget Committee that the realestate industry was in “an absolute depression” and that “one of the reasons we’re there is what happened in 1986.” That change eliminated important incentives to invest in real estate, Mr. Trump said. “If something isn’t done to put the incentive back we’re no different from the Soviet Union,” he said. “They have no incentive and we have no incentive.” The full House and a Senate committee are expected to vote this week on the different plans. —Richard Rubin contributed to this article. campaign to convince the SEC and lawmakers that the repository would include too much personal information about American investors and would become a target for hackers. All of the exchanges tasked with helping build the CAT—including the New York Stock Exchange, Nasdaq Inc. and others—had asked for a one-year delay of the project. Given the SEC’s rejection of the delay, the exchanges won’t comply with their own plan on Wednesday when they fail to report trading data to the audit trail. Stock-exchange executives approached the SEC last week to seek the delay, according to people familiar with the matter, and formally requested the extension late Monday. “I am not in a position to support the issuance of the requested relief on the terms currently proposed,” SEC Chairman Jay Clayton said in a statement. “I urge the [exchanges] to continue their efforts to work cooperatively with each other and to meet their responsibilities as promptly as practicable.” Mr. Clayton’s statement, which said the SEC’s talks with exchanges over the project in recent days have been “constructive,” suggests the agency probably won’t seek to penalize the exchanges for missing the deadlines. The audit trail, which will ultimately ingest about 58 bil- lion daily trading records, has become a source of friction between regulators, exchanges, brokers and investors. The biggest exchanges are in the odd position of talking down a major technology project they are required to build under a commission-approved plan. Mr. Clayton, a political independent, said Tuesday that the SEC would consider whether it needs access to investors’ personal information. Current plans call for the database to store data such as Social Security numbers and dates of birth of people behind trades, though these elements aren’t scheduled to be reported until a second deadline in November 2018. The SEC chief’s refusal to budge on a major deadline for the long-delayed project drew praise from SEC Commissioner Kara Stein, a proponent of tougher regulation who has called the CAT the “Hubble telescope” of the markets. Ms. Stein, a Democrat, questioned whether exchanges, which are for-profit companies but still have legal duties to oversee fair trading, can still be relied upon to act as regulatory partners for the SEC. In their request to postpone the deadline, which was posted on a public website on Tuesday, the exchanges said a delay would help ensure that certain essential steps can be taken to secure the data in the audit trail. FRANKFURT—There has been a thaw in Germany. Deutsche Bank AG Chief Executive John Cryan met here last week with the CEO of the bank’s biggest investor, Chinese conglomerate HNA Group Co., according to people familiar with the matter. The meeting between Mr. Cryan and HNA CEO Adam Tan was their first, the people said. It happened one month after The Wall Street Journal reported on Mr. Cryan’s resistance to engage with HNA. “We are talking with our shareholders, not about our shareholders,” a Deutsche Bank spokeswoman said. An HNA spokesman declined to comment, as did a spokesman for Alexander Schütz, HNA’s representative on the Deutsche Bank board. Previously, Mr. Cryan’s criticism of HNA stoked tensions with Deutsche Bank Chairman Paul Achleitner, who this year helped woo HNA during the lender’s $8.5 billion capital increase, the Journal reported last month. HNA lifted its Deutsche holding during the capital increase, and in May disclosed a nearly 10% stake. Deutsche Bank executives and investors saw the capital increase as a crucial move following a string of costly legal bills and client doubts over the lender’s financial stability. Behind the scenes, Mr. Cryan was critical of HNA in part because the Chinese company had borrowed billions of dollars to fund its stake and protect itself against losses using derivatives, people with knowledge of his comments said. Mr. Cryan viewed the structure as speculative, the Journal reported. At the meeting, Mr. Tan expressed support for the Deutsche Bank CEO and the lender’s general strategy, one of the people said. Mr. Tan suggested the Chinese company could be helpful to Deutsche Bank with contacts and insights in China. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B19 * * * * MARKETS BY ALISON SIDER AND NEANDA SALVATERRA Oil futures tumbled as the International Energy Agency lowered its forecast for demand, calling into question a key element of oil’s recent rally. U.S. crude futures fell $1.06, or 1.87%, to $55.70 a barrel on the New COMMODITIES York Mercantile Exchange on Tuesday, making for their biggest single-day decline since Oct. 6. Brent, the global benchmark, fell 95 cents, or 1.5%, to $62.21 a barrel on ICE Futures Europe. Stronger-than-anticipated demand has been one of the reasons oil prices have gained about 20% since early September. But in its closely watched monthly oil report, the IEA cut its crude demand-growth outlook by 100,000 barrels a day for 2017 and 2018, citing the impact of higher prices and a mild start to winter. The agency now expects demand to grow by 1.5 million barrels a day this year and 1.3 million barrels a day next year. That change, while modest, could be enough to delay the process of bringing down an oil glut, and the new forecast sparked a selloff that deepened throughout the day, analysts said. “All year long the IEA has been revising upward its forecast for demand. Now they’re tempering that enthusiasm,” said Andy Lipow, president of Lipow Oil Associates. “As a result the market is under pressure. The feeling is we need every bit of growth we can muster to soak up the oversupply situation.” Oil prices have hovered around multiyear highs, buoyed by geopolitical turmoil in the Middle East and support from the Organization of the Petroleum Exporting Countries’ ongoing effort to eliminate about 2% of global supply with the help of external producers. But the IEA said that if the supply disruptions and geopolitical tensions that have helped fuel higher prices prove to be temporary, “a fresh look at the fundamentals confirms the view we expressed last month that the market balance in 2018 does not look as tight as some would like, and there is not in fact a ‘new normal’ ” for prices above $60. At current production levels global stocks will be unchanged in 2018, the IEA said. Commercial petroleum stocks in the Organization for Economic Cooperation and Development—a group of industrialized, oil-consuming nations, including the U.S.—fell below three billion barrels in September for the first time in two years, but the IEA attributed much of that to the impact of Hurricane Harvey. Some analysts say the IEA may be too cautious in its projections. “We are now projecting small draws [next year] even before factoring in an extension of the cuts beyond March 2018,” said Richard Mallinson, an analyst at consultancy Energy Aspects. On Wednesday morning, markets will watch for weekly EIA data on U.S. oil inventories. Analysts surveyed by The Wall Street Journal are expecting, on average, to see declines in both crude-oil and fuel supplies. Default Call Sinks Venezuela Debt Holders face quandary: Wait or push for a default process likely to be very complex? Venezuelan bonds, already trading at distressed levels, fell on Tuesday after creditrating firms declared the naBy Julie Wernau, Anatoly Kurmanaev and Kejal Vyas tion in default on missed interest payments. The development sets up a conundrum: Bondholders can now push for a wave of payments, but some CREDIT said they would MARKETS rather get their money late than take their chances on what could be one of the biggest, most complicated defaults in history. Venezuela’s bonds due 2028 dropped to 24.94 cents Tuesday from 27.15 cents Monday, according to data provider IHS Markit. Bonds for state oil firm Petróleos de Venezuela SA due in 2035 dropped to 26.625 cents from 29.375, according to IHS Markit. Typically as a bond nears maturity, its price rises toward 100 cents on the dollar if investors expect to be repaid. Despite the country’s diminishing dollar reserves, Venezuelan President Nicolás Maduro and his aides have committed to continue making payments on the nation’s highyielding bonds, even if they come late. The cash-strapped South American nation has provided some of the best returns in emerging markets in recent years, complicating the case for investors to turn up the pressure on Caracas in the near term. “It’s hard to envision a scenario where investors are going to start accelerating payments,” said Ray Zucaro, chief investment officer at Miami-based RVX Asset Management. “As a bondholder you don’t want to mess up that gravy train.” However, Venezuela’s payment delays have made Mr. Zucaro nervous. He said his fund holds bonds of PdVSA that matured two weeks ago and the money hasn’t yet turned up in RVX’s accounts. The Venezuelan government has said the payment was made but has been delayed due to banktransfer complications generated by U.S. sanctions. The Venezuelan government is now trying to shore up Losing Faith Investors expected a default in Venezuela even before this week’s events. The cost to insure against a default in the next year as percentage of notional value 150% Venezuelan bonds 125 PdVSA bonds 100 75 50 25 0 J F M A M J J A S O N Source: Bloomberg data via Bulltick Capital Markets THE WALL STREET JOURNAL. scarce funds to make about $300 million in late interest payments by Friday, according to an official in Caracas familiar with bond transactions. Interest-payment delays have been caused by liquidity shortages as well as problems executing transfers with U.S. financial sanctions in place, the official said, adding the government is trying to meet its obligations this year and to restructure the outstanding debt in 2018. “The system is pushing us towards a unilateral restructuring,” he said. “Our wish is to continue paying but at this moment we’re reviewing all options.” Venezuela was found in default by S&P Global Ratings late Monday after it missed about $200 million in interest payments on its sovereign debt. The payments were to have been made within a 30day grace period that ended Monday to avoid opening the door for creditors to organize and litigate for payment. S&P said it can still reverse Monday’s downgrade if Venezuela makes the late payments before creditors organize and demand repayment. Fitch Ratings late Tuesday joined S&P Global Ratings in declaring two of Venezuela’s sovereign bonds in default. Robert Abad, founder of emerging-markets advisory firm EM+BRACE, said that while many large institutional investors in these bonds have given way to speculative investors at this point, the bonds are still widely held. “The speculators won’t care less,” he said. “The big investors who were still there are trapped in the transom now.” PdVSA and Venezuela’s Information Ministry didn’t re- spond to requests for comment. Meanwhile, holders of Venezuelan credit-default swaps— insurance-like derivatives— were trying to make a case that there has been a “failure to pay credit event,” according to a Tuesday morning filing to the International Swaps and Derivatives Association. So far ISDA has pushed off a decision but was scheduled to meet again this week. Mr. Maduro and other Venezuelan government officials have insisted they will pay off the country’s debts. But Venezuelan officials provided few details about how they would move forward with a planned debt restructuring during a brief meeting with bondholders at the presidential palace Monday afternoon, according to people who said they were in attendance. AUCTION RESULTS Here are the results of Tuesday's Treasury auction. All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference between that price and the face value. FOUR-WEEK BILLS $156,324,268,800 Applications $50,000,240,800 Accepted bids $557,581,300 " noncompetitively $100,000,000 " foreign noncompetitively 99.918722 Auction price (rate) (1.045%) 1.060% Coupon equivalent 80.11% Bids at clearing yield accepted 912796MG1 Cusip number The bills, dated Nov. 16, 2017, mature on Dec. 14, 2017. DADANG TRI/BLOOMBERG NEWS Oil Falls On Cut to Demand Forecast A Freeport McMoRan mining complex in Indonesia in 2015. Energy and materials sectors were among big decliners on Tuesday, with Freeport-McMoRan down 4.4%. Stocks Track Declines in Commodity Prices BY MICHAEL WURSTHORN Declines in shares of oiland-gas firms, chemical companies and miners pressured major stock indexes Tuesday. The losses tracked a slump in commodities prices, with U.S. crude oil TUESDAY’S posting its MARKETS biggest oneday drop in more than a month. The Dow Jones Industrial Average shed 30.23 points, or 0.1%, to 23409.47 while the S&P 500 slid 5.97 points, or 0.2%, to 2578.87. The Nasdaq Composite fell 19.72 points, or 0.3%, to 6737.87. The energy and materials sectors were among the biggest decliners in the S&P 500. Mike Baele, managing director at U.S. Bank Private Wealth Management, said the pullback isn’t a major concern since the two sectors had been among the best performers in recent months. “The synchronized global expansion looks to be intact, so frankly a little volatility isn’t a bad thing,” he added. U.S. crude slid 1.9% to $55.70 a barrel after the International Energy Agency said the oil price rally could be short-lived and global oil demand would be weaker than expected this year and next. The move pressured energy shares, with Range Resources falling $1.23, or 6.6%, to $17.35 and Newfield Exploration shedding 2.27, or 7.1%, to 29.82. Energy companies in the S&P 500 fell 1.5%. Meanwhile, metals miner Freeport-McMoRan, was off 63 cents, or 4.4% to 13.80, and chemical company Albemarle, fell 5.72, or 4%, to 137.65, contributing to a broad decline among material companies. Shares of General Electric continued to reel after Chief Executive John Flannery outlined a plan on Monday to reorganize the business and cut its dividend in half. Shares fell 1.12, or 5.9%, to 17.90 on Tuesday and are down 13% over the past two days. Utilities in the S&P 500 Waning Inﬂuence The company with the smallest weighting in the Dow Jones Industrial Average, currently General Electric, has fallen to its lowest point in years. Smallest weighting of Dow components June 2009 General Motors removed from the Dow 1.5% September 2013 Alcoa removed from the Dow GE 0.53% 1.0 0.5 0 2000 ’05 Source: WSJ Market Data Group continued to move higher. The sector, considered by some investors to be a relatively stable income-producing investment, gained 1.2% Tuesday after rising 1.2% a day earlier. Despite major indexes notching slight gains on Monday, the Dow industrials and ’10 ’15 ’17 THE WALL STREET JOURNAL. S&P 500 have traded lower in three out of the past four sessions, in part because of investors’ concerns about how Republicans will proceed with their tax overhaul. That has coincided with signs of stress in high-yield debt and the winding down of the third- quarter earnings season. “Since Friday, the theme has been deleveraging and taking risk off the table,” said Larry Peruzzi, managing director of international equity trading at Mischler Financial. “Part of it has been profit-taking and part of it has been uncertainty with taxes and Washington.” The Stoxx Europe 600 reversed early gains to edge down 0.6% to its lowest close since September in its sixth consecutive session of declines. At the lunch break Wednesday, Japan’s Nikkei Stock Average was down 0.6%. At the same time, the Shanghai index was down 0.4% and the Shenzhen index was off 0.3%. Recent data show that a broad measure of money supply in China was lower than expected, while other data showed slower industrial output and fixed-asset investment growth in the country last month. —Riva Gold contributed to this article. China’s Bond Rout Raises Prospect of Higher Borrowing Costs BY SHEN HONG SHANGHAI—China’s 10-year government-bond yields touched 4% for the first time in years as a domestic bondmarket selloff intensified, threatening to raise borrowing costs for a swath of Chinese companies whose debt levels have been climbing. Prices of Chinese bonds have been tumbling for days, sending their yields higher. The 10-year yield briefly hit a three-year high of 4.01% on Tuesday before ending the day at 3.97%. Domestic yields have climbed since the start of this year. The 10-year Chinese bond yield was at 3.1% in January and 3.7% a month ago, according to S&P Global Market Intelligence. The latest selloff came despite moves by the People’s Bank of China to pump a large amount of cash into the financial system for a second day in a row. After injecting 150 billion yuan ($22.56 billion) into the money market Monday, the central bank added another 140 billion yuan Tuesday. The rising bond yields could complicate Beijing’s efforts to reduce risk and leverage in China’s financial system while maintaining economic stability. If companies’ borrowing costs climb as a result, that could make it harder for firms to obtain new loans or refinance existing debt, and weigh on economic growth. Beijing’s domestic debt-financing costs are the highest among major economies, with the yield on its 10-year domestic bond topping rates in the U.S., the U.K., Australia, South Korea and much of Europe. China’s recently issued U.S.dollar sovereign bonds, meanwhile, traded at a narrow spread of 0.25 percentage point over 10-year U.S. Treasury notes and were yielding 2.65% on Tuesday. Some analysts have pointed to concerns about rising inflation in China, which could be driving domestic yields higher. But others say the bond rout appears irrational because other economic data indicate China’s growth remains under pressure. Investors are more likely to buy assets perceived as safer like government bonds in times of economic uncertainty. Data released in the past few days on China’s money supply, factory output and retail sales pointed to slowing momentum for the world’s second-largest economy. Still, stronger U.S. and European economies are expected to help keep China’s economy humming. Meanwhile, as bond yields climb, many Chinese companies are facing the prospect of higher borrowing costs, which could hamper Beijing’s efforts to engineer a smooth and gradual process of reducing leverage in the financial system. Average yields on China’s five-year, AAA-rated corporate bonds, a popular measure of corporate funding costs, have soared to 5.19%, the highest level since September 2014. The effects haven’t been felt by most companies so far. Some debt issuers have put off plans to sell bonds or turned to other sources of financing such as loans from government-linked entities or trusts. —Chao Deng contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B20 | Wednesday, November 15, 2017 MARKETS Debt Crisis in Venezuela: What’s Next By Julie Wernau Venezuela has been falling behind on debt payments in its prolonged economic crisis. Some payments have come late. Others haven’t arrived at all. The South American country has said it wants to restructure its remaining debt, which analysts put as high as $150 billion. But observers say Venezuela’s debt crisis could be one of the most complicated in history. Two large principal payments on PdVSA bonds, which had no grace periods, arrived late in recent weeks, according to investors and ratings ﬁrms. Cash-strapped Venezuela and its state oil company Petróleos de Venezuela SA have been putting off making interest payments on their debt, taking advantage of 30-day grace periods to save money. $2.0 billion Grace periods on missed interest payments began to expire Monday, and Venezuela and PdVSA failed to pay in time. Some ratings ﬁrms found them in default. Venezuelan bond payments, by month due* 1.5 PdVSA principal Venezuela principal PdVSA interest Venezuela interest Elecar 1.0 0.5 0 Oct. ’17 Nov. Dec. Jan. ’18 Feb. March April May June July Aug. Sept. Oct. Nov. Dec. When a country defaults, investors typically have a few options Do nothing Push for full payment and hope they get paid Trigger CDS payout Venezuela has said it will continue to pay, and some funds are being deposited even if they’re late enough to constitute a technical default. If the payments come in before other bondholders launch legal battles, the defaults are “cured,” according to bond indentures and attorneys, and the country is protected from creditors that might seek to seize assets. Accelerate bond payments Holders of credit default swaps— derivatives that pay out in the event of a default—are already trying to collect on the late interest and principal payments. The International Swaps and Derivatives Association has put off making a decision so far and is scheduled to meet again this week. Bondholders can organize and vote to accelerate payment schedules for their debt. With a threshold of 25%, the bondholders could trigger cross-default provisions across Venezuelan and PdVSA bonds that require full payment, which amounts to at least $60 billion in bonds. Negotiate Owners of Venezuelan bonds that haven’t been paid can also bring individual lawsuits, which allow them to demand payment from the government via the courts. Venezuela’s many and varied creditors could battle to seize assets in lieu of payment, including the country’s lifeblood: oil. Among the most soughtafter assets are state-owned oil reﬁner Citgo Holdings Inc., shares of which were pledged to bondholders and Russian oil producer Rosneft in exchange for loans. $142 billion International reserves $9.68 billion Venezuela’s government called bondholders to a meeting Monday to discuss the issue. But most major holders didn’t attend because U.S. sanctions limit dealings with Venezuelan ofﬁcials and prohibit institutions in the U.S. from trading new bonds with President Nicolás Maduro’s government. The U.S. Treasury, which doled out the sanctions, has indicated it could alter its policy if a restructuring plan is approved by the oppositioncontrolled congress, which has been diminished by Mr. Maduro’s increasingly authoritarian rule. Seize assets Estimated debt outstanding to restructure the outstanding debt Litigate *Petróleos de Venezuela SA, or PdVSA, is a state-owned oil company and it controls electricity company Electricidad de Caracas, or Elecar. Sources: Morgan Stanley/Bloomberg (payments); Moody's Investor Servicet (outstanding debt); Banco Central de Venezuela (reserves) THE WALL STREET JOURNAL. HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Email: email@example.com Car Chips Are Driving Infineon How do you justify an investment in an expensivelooking stock? By setting it against “peers” that look more expensive, like Tesla. Such comparisons, together with takeover rumors, could keep electric-vehicle supplier Infineon Technologies’ stock buoyant for some time. A spinoff of German industrial giant Siemens, Infineon makes microchips for all manner of industrial applications, but the one that has caught investors’ imagination is the electric, selfdriving car. Little wonder: Revenue from these nascent automotive technologies increased between 60% and 80% during the year through September, the company reported alongside annual results Tuesday. The growth will continue, management said, but this will weigh on margins in the broader automotive business. This is a warning: Car tech’s growth potential requires massive capital in- Fast Lane Forward price/earnings ratios 30 times Umicore 25 Inﬁneon STMicro 20 15 10 2014 ’15 ’16 ’17 THE WALL STREET JOURNAL. Source: FactSet vestment even as the companies involved sacrifice profits for a stake in the new market. Tesla’s investors don’t seem to mind, though, and neither do Infineon’s. The shares rose 2.7% Tuesday even as the company flagged slower profit growth. The stock is up 46% in 2017 and trades at 25 times forward earnings, a premium to European chip rival STMicroelectronics. Yet Infineon’s stock doesn’t look expensive relative to other electric-car plays, such as battery-cathode producer Umicore, let alone the giddy valuation Intel paid for Mobileye this year. That deal underscored another reason Infineon’s shares have rocketed: the ev- ergreen question of a takeover. The company has no blocking shareholder, and the chip market continues to consolidate. Infineon’s rival in car chips is NXP Semiconductors, which Qualcomm is in the process of buying for $39 billion. Qualcomm itself has a suitor, Broadcom, which has offered $105 billion. How the puzzle pieces will eventually fit together is impossible to predict, but Infineon looks digestible even with a market value approaching $33 billion and no net debt. Its latest attempt to pursue its own consolidation—an $850 million deal to buy Wolfspeed from U.S. technology company Cree— was frustrated this year by the Committee on Foreign Investment in the U.S. As long as the market remains focused on growth and mergers and acquisitions, this vehicle could keep speeding. —Stephen Wilmot Smaller Banks May Now Dream Big Congress finally looks set to deliver some regulatory relief for midsize lenders. The biggest beneficiaries will be even smaller banks with midsize dreams. A bipartisan group of senators has agreed to an overhaul plan aimed at helping regional banks rather than Wall Street giants. Most notably, it would raise the threshold under which banks are subject to additional scrutiny, including annual stress-testing, from $50 billion to $250 billion of assets. This is clearly welcome news for banks in those size brackets. Most crucially, bypassing annual exams with the Federal Reserve would allow banks to return excess capital to shareholders more Primed for Payouts Estimated excess capital as a percentage of risk-weighted assets Comerica Zions Bancorp Citizens Financial 4.35% 3.09 2.45 M&T Bank 2.15 CIT Group 2.10 Fifth Third Bancorp KeyCorp 1.92 1.84 Source: Keefe, Bruyette & Woods quickly and predictably. The most overcapitalized of these banks include Comerica, Citizens Financial Group, Zions Bancorp and CIT Group. Stepped-up share buybacks over a few years’ time could boost these banks’ earnings per share by 13% to 17%, according to Keefe, Bruyette & Woods. On Monday and Tuesday, shares of these four lenders rose an average of 5.1% in response to the Senate plan. Investors shouldn’t expect much more of a bump beyond that because this move has long been expected. Analysts began talking about raising the $50 billion threshold as soon as Trump was elected. Shares of midsize lenders have outperformed other banks for over a year. Even before this week’s rally, the four big winners identified by KBW were up an average 35% since the election, compared with a 30% rise for the KBW Nasdaq Bank Index. But raising the threshold will have another, potentially more transformational impact. Many even smaller banks have held back their growth ambitions, or refrained from big mergers, for fear of crossing the $50 billion mark. If that threshold is raised, it would unlock some lending activity by banks just below it. There also could be a boom in mergers between banks somewhere in the $10 billion to $50 billion range, which number more than 50. The most obvious winners from the Senate plan are today’s midsize lenders targeted for immediate relief, but investors should be looking out for the midsize lenders of tomorrow. —Aaron Back WSJ.com/Heard With Tweak, Earnings Look That Much Better U.S. companies are about to close the books on another solid earnings season, helping sustain high stockmarket valuations. In fact, underlying corporate earnings are even better than the headline data suggest. Operating earnings per share for S&P 500 companies were up about 9% from a year earlier in the third quarter, according to estimates by strategists at Credit Suisse Group. That respectable figure still represents a slowdown from 11.6% growth in the second quarter and 15.8% growth in the first. But billions of dollars in losses booked by insurance companies due to three hurricanes and two Mexican earthquakes distort the data, says Steve Chiavarone, portfolio manager at Federated Investors. Without these natural disasters, S&P 500 earnings per share would be up roughly 12%, he notes. That would make for three consecutive quarters of double-digit-percentage earnings growth, something that hasn’t happened since 2011, when corporations were still bouncing back from a painful recession. The technology sector is a standout performer, with operating earnings per share rising 22.5% from a year earlier. But it isn’t alone. Other highly cyclical sectors are also posting strong growth, including energy, materials and industrials. This is aided by strong growth not just in the U.S. but also by synchronous growth around the world. About one-third of S&P 500 earnings come from overseas, estimates Credit Suisse equity strategist Patrick Palfrey. Of course, should the U.S. economic cycle turn, these cyclical sectors will become among the riskiest places to be. But the earnings data give little indication such a turn is imminent. In fact, companies appear to be allocating more resources to capital expenditure and research and development, and less to shareholder payouts. This could help extend the cycle. Growth is the name of the game on Wall Street today, and after looking past the effect of hurricanes, there is plenty of it to keep investors happy. —Aaron Back OVERHEARD America is addicted to caffeinated beverages, but the companies getting rich off the trend have tripped from time to time due to their perceived political leanings. Starbucks is best known for this, drawing ire for, among other things, insufficiently Christmassy holiday cups. The latest casualty, Keurig Green Mountain, which is as dominant in home-brewed coffee as Starbucks is outside the home, is being boycotted for pulling ads from a show starring a certain controversial conservative TV host. A quick online search shows that perhaps the most popular alternative to Keurig’s singleserve machines is made by a company spun off from its larger parent just weeks ago, Hamilton Beach Brands Holding. Shares had languished until last week, but rose 5.1% in the past two sessions. Wake up and smell the gains.