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 23580.78 À 22.79 0.1% NASDAQ 6878.52 g 0.2% WSJ.com TUESDAY, NOVEMBER 28, 2017 ~ VOL. CCLXX NO. 126 * * * * * * STOXX 600 384.87 g 0.5% 10-YR. TREAS. À 4/32 , yield 2.328% OIL $58.11 g $0.84 GOLD $1,293.80 À $7.10 Pope Visits Myanmar Amid Tensions Over Muslim Minority What’s News Business & Finance ig U.S. grocers are fining suppliers for late deliveries, aiming to keep customers satisfied and better compete with online retailers like Amazon. A1 B SoftBank has told Uber stakeholders it will initially offer to buy shares at a nearly 30% discount to the firm’s most recent valuation. B4 Powell heads to Capitol Hill Tuesday for what is expected to be a relatively smooth confirmation process for the Fed’s top job. A2 Teva’s new CEO is shuffling the drug firm’s top ranks and combining its generic and specialty businesses. B3 The S&P 500 eased as energy shares fell along with crude prices. The Dow rose 22.79 points to 23580.78. B12 New-home sales rose in October, driven by demand for entry-level homes. A5 The U.S. indicted three alleged Chinese hackers over breaches involving Moody’s Analytics and Siemens. B4 Julius Baer’s CEO quit to join rival Pictet, marking an unexpected shake-up in the Swiss banking industry. B11 SandRidge’s board adopted a poison pill that would make it harder for Icahn to boost his stake. B3 World-Wide Senate Republicans began a frenzied week of negotiations to pass a landmark tax overhaul, grappling with several blocs of wavering GOP senators and trying to cobble together enough votes. A1 Two acting directors at the CFPB, one named by Trump and one picked by ex-chief Cordray, asserted dueling authority over the financial watchdog. A1 The Supreme Court rejected two appeals seeking to expand access to firearms, leaving in place laws in Maryland and Florida. A3 Franken apologized following sexual-misconduct allegations, but the Democrat made clear he plans to stay in the Senate. A4 Pakistan’s decision to accept the demands of Islamic protesters has further set back its struggle to restrain religious hard-liners. A6 The pope met with Myanmar’s military chief, the architect of a campaign denounced as ethnic cleansing. A7 Mexico’s finance minister resigned and said he hoped to become the ruling party’s presidential candidate. A16 New eruptions from Bali’s Mount Agung volcano shut down Indonesia’s second-busiest airport. A6 U.S. students’ mediocre standing in many global rankings may in part reflect a failure of effort rather than lack of aptitude, a study found. A5 Britain’s Prince Harry will marry American actress Meghan Markle. A7 CONTENTS Business News...... B3 Crossword.............. A10 Heard on Street.. B13 Life & Arts......... A9-11 Markets............. B12-13 Mutual Funds......... B7 Opinion.............. A13-15 Sports........................ A12 Streetwise................. B1 Technology............... B4 U.S. News............. A2-5 Weather.................. A10 World News. A6-7,16 > s Copyright 2017 Dow Jones & Company. All Rights Reserved YEN 111.10 Senate Tax Bill Faces New Holdouts BY RICHARD RUBIN AND SIOBHAN HUGHES WARM WELCOME: Pope Francis was greeted by children in traditional clothing upon his arrival Monday for a visit to Myanmar. He later met with the general behind a military campaign against the Rohingya minority that the pope has described as religious persecution. A7 Trump Asserts Control Over Agency BY YUKA HAYASHI AND LALITA CLOZEL to work in the director’s office across the street from the White House complex. The office had been vacated Friday by the departure of former Director Richard Cordray. Mr. Mulvaney later outlined his immediate plans to change how the bureau operates, including putting in place a 30day freeze on the issuance of new rules and hiring. Mr. Mulvaney, who also is director of the administration’s Office of Management and Budget and is well known as a CFPB critic, introduced WASHINGTON—Workers at the Consumer Financial Protection Bureau arrived at the office Monday to find two acting directors asserting dueling authority and facing off over the direction of one of the nation’s financial watchdogs. The acting director appointed by the Trump administration, Mick Mulvaney, arrived a little before 7:30 Monday morning with two aides and a bag of doughnuts himself to the 1,600-member staff with a memo asking them to disregard communications from Leandra English. Ms. English, the bureau’s deputy director and Mr. Cordray’s pick as acting director, issued a legal challenge Sunday in an effort to block Mr. Mulvaney and establish herself in the post. A new director is ultimately expected to be nominated by the administration and then face Senate confirmation. The most prominent support for Mr. Mulvaney from Wells Fargo Bankers, Chasing Bonuses, Overcharged Clients the agency staff came from Mary McLeod, the CFPB’s general counsel, who advised senior agency officials in a memo dated Saturday to “act consistently with the understanding that Director Mulvaney is the acting director of the CFPB.” Mr. Mulvaney appeared to be in control for now—pending the outcome of Ms. English’s lawsuit. He met with top Please see CFPB page A4 Pick for Fed chairman faces smooth confirmation path... A2 WASHINGTON—Senate Republicans began a frenzied week of negotiations to pass a landmark tax overhaul, grappling with several blocs of wavering GOP senators and trying to cobble together enough votes. One group, including Ron Johnson (R., Wis.) and Steve Daines (R., Mont.), wants deeper tax cuts for so-called pass-through businesses such as partnerships and S corporations that pay taxes on individual rather than corporate tax returns. Both said they want to prevent large corporations from deducting state and local taxes, freeing up money to drive down rates for passthrough firms. They said they would like to support a tax bill but can’t do so yet. Another group, including Bob Corker (R., Tenn.), Jeff Flake (R., Ariz.) and James Lankford (R., Okla.), is concerned about the $1.4 trillion addition to budget deficits the bill would cause, and these senators are wary that it won’t generate enough economic growth to pay for itself. A third group, including SuPlease see TAXES page A2 Tax measure targets overseas airlines...................... B6 Heard on the Street: Buyout game is about to change... B13 Record Stock Rally Goes Global Half of the 35 major indexes representing the world’s biggest stock markets by value have hit all-time highs this year, the most since 2007, according to an analysis by The Wall Street Journal. B13 Number of stock indexes in the world that hit a record 25 indexes Employees say foreign-currency staff ignored agreed-upon client fees BY EMILY GLAZER The whispers among employees had been around for years. They finally heard some facts during a conference call in June led by managers in Wells Fargo & Co.’s foreign-exchange operation: Some of its business customers had been cheated, according to two employees who were on the call. An internal review showed that out of roughly 300 fee agreements based on anything from informal handshakes to emails to signed documents, only about 35 companies were charged the actual price they had been offered for currency trades handled by Wells Fargo, the employees say. The phone call was part of a continuing cleanup that has led Wells Fargo to fire four foreign-exchange bankers and federal prosecutors to open their own investigation of the operation, people familiar with the matter have said. “Wells Fargo remains committed to our foreign exchange business,” the bank said in a statement Monday. “If we find a problem, we fix it.” The bank said its foreign-exchange business is “under new management.” The business is tiny compared with foreign-exchange operations at J.P. Morgan Chase & Co. and Citigroup Inc. but could become another huge headache for the San Francisco bank, still grappling with fallout from the sales-practices scandal in its retail operations. The scandal led to last year’s abrupt retirement of Wells Fargo’s chief executive, a $185 million regulatory settlement and numerous federal and state investigations, which are continuing. Wells Fargo retail employees had to hit lofty goals to keep their jobs or get bonuses, which led some employees to open potentially 3.5 million accounts with fictitious or unauthorized customer information from 2009 to 2015. Foreign-exchange employees got bonuses Please see WELLS page A8 INSIDE If the Tax Overhaul Smells Fishy, Blame the Samoan Tuna Plant i i i House and Senate bills include minor provisions for craft beer, salad dressing BY RICHARD RUBIN House bill and its 515-page Senate counterpart with proviWASHINGTON—While par- sions involving microbrewertisans squabble over whether ies, bicycle commuters, orange the Republican tax overhaul in growers in Florida, volunteer Congress benefits the middle firefighters in Maine and a class or the wealthy, part of company that manufactures organic salad the proposed dressing. legislation is In broad going over terms, the legswimmingly in islation seeks Pago Pago. to overhaul The House and streamline plan, which Canned tuna the U.S. tax would reinstate code and make a tax break for a tuna cannery in American the American economy more Samoa’s capital city, could in- competitive. In practice, howject about $10 million a year ever, it’s the sort of ambitious, to StarKist Co., the territory’s fast-moving policy train that gives individual lawmakers lelargest private employer. In addition to netting gains verage. To win support for the for Samoan tuna, lawmakers bill, congressional leaders Please see BREAKS page A8 have festooned the 450-page AFP/GETTY IMAGES Bitcoin’s price surged to a new high within a few hundred dollars of $10,000, extending a torrid 2017 run for the digital currency. B1 EURO $1.1900 GOP leaders remain confident of getting votes needed despite emerging fissures VINCENZO PINTO/AGENCE FRANCE-PRESSE/GETTY IMAGES Morgan Stanley and UBS abandoned a pact that makes it easier for financial advisers to jump to rivals and take clients with them. B1 HHHH $4.00 AMERICAN IN ROYAL ENGAGEMENT WORLD NEWS, A7 THE JOY OF OFFICE COOKING LIFE & ARTS, A9 20 15 10 5 0 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17* *Figure for 2017 is as of Monday. Source: FactSet THE WALL STREET JOURNAL. Grocers Levy Fines For Late Deliveries The country’s biggest grocers are increasingly demanding their suppliers deliver on time, imposing fines for late shipments as they try to keep customers satisfied and better compete with online retailers like Amazon.com. By Annie Gasparro, Heather Haddon and Sarah Nassauer Kroger Co. is fining suppliers $500 for every order that is more than two days late to any of its 42 warehouses, and Wal-Mart Stores Inc. is charging suppliers monthly fines of 3% of the value for deliveries that don’t arrive exactly on time, according to the retailers. They began issuing most fines in August. Retailers used to give suppliers more leeway, since any number of factors—bad weather, a surge in demand, technology malfunctions—can foil deliveries. But sales of some $75 billion a year are lost because products are out of stock or unsalable for other reasons, according to the Food Marketing Institute, a trade organization. That is about 10% of annual grocery sales industrywide as margins are squeezed and sales growth is hard to come by. “It’s a massive opportunity from a financial and customer standpoint,” said Robert Clark, senior vice president for merchandising at Kroger, the second-largest U.S. grocer by sales. The issue is a costly one for suppliers, as making improvements to meet tighter delivery windows is time-consuming and complicated. Sellers, such as Kraft Heinz Co., Hershey Co. and Procter & Gamble Co., have made significant investPlease see FOOD page A7 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Tuesday, November 28, 2017 * *** THE WALL STREET JOURNAL. U.S. NEWS BY KATE DAVIDSON AND RYAN TRACY WASHINGTON—Federal Reserve governor Jerome Powell heads to Capitol Hill on Tuesday for what could be one of the least contentious confirmation hearings for a nominee to lead the Fed since the financial crisis. The Senate Committee on Banking, Housing and Urban Affairs is considering Mr. Powell’s nomination to succeed Fed Chairwoman Janet Yellen when her term as chief expires in February. For years after the crisis, committee Republicans questioned Ms. Yellen and other Fed nominees advanced by the Democratic administration of then-President Barack Obama, at times sharply, about the central bank’s unconventional efforts to stimulate the economy and its stricter regulation of the financial system. But Mr. Powell, a Republi- can who served in the GOP administration of former President George H.W. Bush, is likely to face a relatively smooth path. While some Republicans have expressed concerns about Mr. Powell’s support for Ms. Yellen’s policies, he was nominated by President Donald Trump—their party’s leader—and no committee member has signaled plans to oppose the pick. Democrats, meanwhile, voted almost unanimously to confirm Mr. Powell in 2012 and 2014 when he was nominated to the Fed board by Mr. Obama. They also have defended the Fed from GOP criticism of its postcrisis policies under Ms. Yellen. “I think it’s going to be incredibly difficult for members of either party to attack Powell on his record because they voted for him twice before,” said Isaac Boltansky, an analyst at Compass Point Research and Trading. Still, Mr. Powell likely will face questions on the future of Fed monetary and regulatory policy, particularly the path of interest rates in an economy gaining steam. Federal Reserve governor Jerome Powell is scheduled to testify on Capitol Hill Tuesday. Mr. Powell, in prepared remarks released by the Fed late Monday, planned to tell the committee that, if confirmed, he would strive to support the economy’s recovery and defend the central bank’s independence from political pressure. He plans to tell lawmakers that the Fed expects to raise short-term interest rates “somewhat further,” shrink its portfolio of bonds and consider ways to ease regulatory burdens on financial firms while preserving core rule changes adopted after the financial crisis. The prepared remarks provide no details on these policy plans. In September, Fed officials penciled in one more quarterpercentage-point interest rate increase this year, three in 2018 and two in 2019. They also lowered their estimate of where they see interest rates settling in the long run, indicating the likely endpoint for this series of rate rises. Lawmakers are expected to draw Mr. Powell out on whether he expects to stick to this path or perhaps step up the pace to prevent the economy from overheating. Mr. Powell has repeatedly supported the current Fed consensus to raise rates gradually in the coming years. The Fed “has been patient in raising rates, and that patience has paid dividends,” Mr. Powell said in a June 1 speech to the Economic Club of New York. “While the recent performance of the labor market might warrant a faster pace of tightening, inflation has been below target for five years and has moved up only slowly toward 2%, which argues for continued patience, especially if that progress slows or stalls.” Lawmakers will likely press Mr. Powell on how the Fed is likely to respond to a tax overhaul Republicans aim to enact before year’s end, particularly if it stimulates faster economic growth and adds to the national debt, as some analysts project. Mr. Powell is also expected to be asked about his regulatory plans. In practice, he may defer on those policies to Fed Vice Chairman for Supervision Randal Quarles. U.S. WATCH VIRGINIA Control of House of Delegates Undecided A Democratic tidal wave on Election Day in Virginia three weeks ago has left chaos in its wake, with control of the House of Delegates still undecided and no end in sight to the dispute. Lawsuits, threats and recriminations are flying as the state wrestles with the tricky question of what to do about the 147 voters in and around a crucial district who were given the wrong ballots. Depending on what happens to that seat and two others, the 100-member House could fall into Democratic hands for the first time in nearly 20 years or find itself evenly divided and perhaps paralyzed. “I’ve never seen anything like this,” said Virginia Board of Elections Chairman James Alcorn. The Republicans have gone from a commanding 66-34 majority in the House of Delegates to an apparent 51-49 lead, with GOP candidates clinging to extraordinarily slim leads in three districts. There were no elections this year for the state Senate, where Republicans hold a 21-19 majority. —Associated Press flights Sunday, Santa Clara police Lt. Dan Moreno said. Police cited Tracy Michael Mapes, 55 years old, with misdemeanor charges and released him after a drone was spotted over Levi’s Stadium as the San Francisco 49ers and the Seattle Seahawks played. The drone released fliers criticizing television news media. Oakland officers spotted a drone over Oakland-Alameda County Coliseum and it dropped the fliers again, Mr. Moreno said. Mr. Mapes was arrested shortly afterward while leaving in his vehicle. Mr. Mapes didn’t respond to an email inquiry. —Associated Press CALIFORNIA Drone Flies Over NFL Games; Arrest Made A Northern California man accused of flying a drone over two NFL games this weekend and dropping political leaflets was arrested in a case that raised concerns about security at professional sports events, police said Monday. Federal and local laws prohibit flying drones near such events, and authorities are examining additional ways to prevent the unmanned aircraft from hovering over crowds of tens of thousands of people after the TAXES Continued from Page One san Collins (R., Maine) and John McCain (R., Ariz.), helped kill the Republican health-care bill earlier this year and could pose resistance over a variety of provisions, including plans to repeal the Affordable Care Act’s health-insurance mandate as part of the tax bill. Mr. McCain said Monday that he is still undecided and had “a lot of things” he is concerned about. Republican leaders were confident they would get the 50 votes they need to pass the bill. But placating all these groups will be challenging, politically and mathematically. Winning over some lawmakers could make others more resistant. The bill would collapse if any three Republicans vote no, assuming no Democratic support. “It’s not going to be easy,” said Sen. Orrin Hatch (R., Utah). Messrs. Corker and Johnson are both on the Senate Budget Committee, which is slated to vote Tuesday. Opposition from either of them could stall the measure. If the Senate passes the bill, lawmakers would then reconcile it with a somewhat different House version and aim to get it on President Donald Trump’s desk by Christmas. The bill is the GOP’s biggest domestic-policy priority, and it would lower most households’ individual taxes through 2025 and cut the corporate tax rate J. SCOTT APPLEWHITE/ASSOCIATED PRESS Powell plans to say he will defend the central bank’s independence from political pressure ANDREW HARRER/BLOOMBERG NEWS Fed Pick Faces Smooth Confirmation Path Some senators, including James Lankford (R., Okla), are concerned about potential additions to the budget deficit. to 20% permanently. Some households, particularly uppermiddle-class wage-earners in high-tax states, would pay more than they do now because they could no longer deduct state and local taxes. In the version that passed the Senate Finance Committee earlier this month, owners of pass-through businesses determine their business income and then subtract 17.4% of that from the taxable income on their individual returns. That gives the highest-earning owners of passthrough businesses a rate a little above 30%. Mr. Johnson wants to increase the deduction to get the pass-through rate closer to the 20% corporate-tax rate or the 25% GOP leaders promised earlier this year. “They sort of left the pass-through community high and dry,” Mr. Johnson said late Monday of his fellow Republicans. 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: firstname.lastname@example.org NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: email@example.com By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: firstname.lastname@example.org; By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS Mr. Johnson said he spoke with Mr. Trump and Vice President Mike Pence about the issue over the weekend. “They agreed this is a problem to be fixed and we’ll get it fixed,” Mr. Johnson said Monday. Mr. Johnson said preventing GOP leaders were confident they would get the 50 votes they need to pass the bill. corporations from deducting state and local taxes would create parity with pass-throughs and individuals, who wouldn’t be allowed to deduct such taxes under the Senate bill. Unlike pass-throughs, however, corporations face a second layer of taxes on their profits. CORRECTIONS AMPLIFICATIONS Gold and silver proof coins sold by the U.S. Mint aren’t colored with a special dye. A Page One article Monday about the coins incorrectly said that they are. The film “Wonder” is about a physically scarred boy’s first days at a private school. In some editions Monday, a Media article about the weekend’s box office incorrectly said it was a public school. Readers can alert The Wall Street Journal to any errors in news articles by emailing email@example.com or by calling 888-410-2667. Mr. Johnson said the rate disparity proposed by Senate Republicans would cause passthroughs to change their legal status and become traditional corporations. He said that would cause revenue losses that congressional estimators haven’t accounted for. On the deficit front, Messrs. Lankford and Corker want the bill to include a mechanism that would adjust taxes in the event that Republican expectations that tax cuts would pay for themselves prove wrong. Mr. Corker met with Treasury Secretary Steven Mnuchin on Monday to discuss the idea of a trigger or backstop. Ms. Collins, meanwhile, objects to using the bill to repeal the individual mandate to have health insurance. As a result of that policy and the expiration of individual tax cuts, the bill would eventually make many households worse off, according to the nonpartisan Congressional Budget Office and Joint Committee on Taxation. On average, households making under $30,000 would start seeing negative effects in 2019 and households making under $75,000 would become worse off in 2027. Sen. Rand Paul (R., Ky.) said Monday morning that he would vote for the bill, even though he would prefer a larger tax cut. Mr. Trump tweeted Monday morning that there would be a few changes to help passthrough businesses and middleincome households. He met with Finance Committee Republicans on Monday and lawmakers emerged optimistic about the bill’s chances. The changes for households could include allowing a deduction for property taxes, said a person familiar with the discussions. Currently, taxpayers can claim an itemized deduction for state and local property taxes and for income or sales taxes, but the Senate proposal eliminates all of these breaks. Ms. Collins has said she wants at least some state-tax deductibility allowed. The House bill repeals the income and sales tax breaks but won some votes from Republicans from high-tax states by preserving a $10,000 break for property taxes. —Greg Ip and Kristina Peterson 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 Tuesday, November 28, 2017 | A3 THE WALL STREET JOURNAL. JENNIFER LEVITZ/THE WALL STREET JOURNAL ©T&CO. 2017. DESIGNS © ELSA PERETTI U.S. NEWS ELSA PERETTI® DIAMONDS BY THE YARD® New Hampshire hosted a ‘recovery-friendly job fair’ to match employers with recovering addicts seeking work. Former Addicts Seek Jobs Amid a dearth of workers, states like New Hampshire offer some a second chance Disease Control and Prevention. Public officials increasingly view employment as an essential part of recovery because they say it improves the chances that addicts will stay sober—and steady pay also reduces reliance on public funds. In the coming weeks, the governor’s office will begin a program to certify willing New Hampshire businesses as “recovery friendly”—with plans for a website that job seekers can mine. The state will offer training and consultation to businesses that want to participate. Similar matchmaking efforts are brewing in other states battling the opioid crisis. Massachusetts and Tennessee help recovering drug abusers prepare for job searches. In late October, Ohio’s Republican Attorney General Mike DeWine unveiled a plan to give businesses incentives to hire people who have successfully completed a treatment program. “It’s a win-win,” Mr. DeWine said. “It helps employers who can’t find workers and helps people who, as part of their recovery, really need to get back to work.” Such endeavors illustrate the economic toll of the opioid epidemic. A report released last week by Altarum, a healthresearch organization, estimated that the total cost of lost earnings and taxes as well as health care, legal and social service costs of the opioid crisis reached $95 billion in 2016. In Portsmouth, the recovery-friendly job fair—organized in part by Safe Harbor Recovery Center—recovering addict Steve Ricker filled out an application at a booth run by a building contractor. The 29-year-old is in recovery from heroin dependence. “I gotta get something,” Mr. Ricker said. —Jon Kamp contributed to this article. BY JENNIFER LEVITZ PORTSMOUTH, N.H.—At a recruiting event in a sunlit parish hall here, job seekers from sober houses streamed in, looking for opportunities from a range of employers all willing to look beyond gaps in résumés, criminal records and messy pasts. Making the rounds at the “recovery-friendly job fair” was Ben Gale, who said it was tough getting work when he had to explain his history with drugs. “A lot of places look at you very differently,” said the 25-year-old, now sober from a heroin addiction. “A lot of them don’t want to give you a chance.” Mr. Gale clutched an application from Turbocam International, a Barrington, N.H., engine-parts manufacturer that has 15 openings, some vacant for months. “Metal trades is like my dream job,” Mr. Gale said. “I’ll show up early. I’ll stay late.” The event was part of an effort by Republican New Hampshire Gov. Chris Sununu to tackle two acute struggles facing the state: extremely low unemployment and extremely high levels of opioid addiction. Mr. Sununu estimates that as many 15,000 recovering opioid addicts are sidelined from the workforce. He says people climbing out of addiction need, and often want, the stability, financial independence and purpose that steady jobs can offer. “We want to re-instill that level of self worth that so many people in recovery have lost,” he said. At the same time, Mr. Sununu said, “we In Hiring, Employers Take On Risks Paul Roberts, the owner of Two Dog Diner in Longmont, Colo., said he has seen both rewards and risk from hiring people recovering from addictions. Last year, Mr. Roberts recruited a man who was trying to break free from alcohol and opioids; the hire stemmed from an initiative in the Boulder area to help former substance abusers get back on track. At first, the new hire was very motivated, but within months, his attitude deterio- rated and he stopped showing up. He had relapsed, which created a disruptive situation that forced other employees to pick up the slack, Mr. Roberts said. He remains open to hiring more employees in recovery but is aware of the challenges. In New Hampshire, Dana Lariviere, president of Chameleon Group LLC, a telemarketing company, began recruiting people recovering from addictions after a good experience hiring a recovering heroin addict. Mr. Lariviere said that amid the opioid epidemic, transparency is an advantage. “We all hire addicts,” he said. “I just know who they are.” need those able-bodied working adults. We need that workforce in the state.” New Hampshire was among seven states with unemployment rate below 3% in October, ranking third-lowest in the nation at 2.7% along with Colorado and Nebraska. Jobless rates at that level make it hard for employers to find the workers they need to expand, a dynamic that can potentially boost wages and inflation. New Hampshire is also one the hardest hit states in the opioid crisis, with fatal drug overdoses in 2016 more than doubling from three years earlier. Nationally, opioids such as fentanyl, heroin, oxycodone and hydrocodone killed more than 34,500 people last year, according to the Centers for 800 843 3269 | TIFFANY.COM GIFTS FOR THE HANDSOME HERO MONCLER NEW AT SAKS. Sunglasses. $305 each. WASHINGTON—The Supreme Court turned down two appeals seeking to expand access to firearms, leaving in place on Monday a Maryland law banning semiautomatic rifles and a Florida restriction on carrying guns openly. Gun dealers and firearms enthusiasts had challenged a Maryland law enacted following the 2012 Sandy Hook Elementary School massacre in Newtown, Conn. They argued that the state’s ban on rifles and shotguns it classified as assault weapons, along with highcapacity magazines, violated a Second Amendment right to individual gun ownership. A federal court in Baltimore upheld the Firearm Safety Act in 2014, but a three-judge panel of the Fourth U.S. Circuit Court of Appeals in Richmond, Va., told the district judge last year to reconsider the issue under legal standards likely to invalidate at least portions of the law. That decision didn’t last long—all 14 judges on the Fourth Circuit reheard the case and rejected the Second Amendment claims in a 10-4 vote. That ruling followed ELAINE THOMPSON/ASSOCIATED PRESS BY JESS BRAVIN Washington state gun-shop owner Tiffany Teasdale-Causer touches the same model rifle used in a church shooting in Texas this month. those of four other federal appeals courts that have upheld restrictions on assault weapons, despite a 2008 Supreme Court precedent, District of Columbia v. Heller, which found the Second Amendment provides people the right to keep handguns at home for self-defense. The Maryland law “bans only certain military-style weapons and detachable magazines, leaving citizens free to protect themselves with a plethora of other firearms and ammunition,” Judge Robert King, who had dissented from the panel’s vote, wrote for the full circuit. “Those include magazines holding 10 or fewer rounds, nonautomatic and some semiautomatic long guns, and most importantly—handguns.” Monday’s orders came without comment, in contrast to other appeals where conservative justices have protested when their colleagues left intact lower-court decisions upholding state-weapons regulations. When the court declined in June to hear a challenge to California regulations on carrying guns openly, for example, Justices Clarence Thomas and Neil Gorsuch complained that the majority was shirking the promise of greater access to firearms that the Heller decision appeared to herald. They were silent on Monday when the court declined to review the Florida Supreme Court’s 2017 decision upholding the state’s ban on the open carrying of guns. Florida law generally permits greater access to guns than that of California or Maryland, including a requirement that the state “shall issue” a concealedweapons permit to nearly anyone who requests one. A Fort Pierce, Fla., man had such a permit, but was arrested after being spotted outside a Chinese restaurant wearing a holstered weapon over his tank top and shorts. He was fined $300 and court costs. The Florida Supreme Court upheld the arrest, crediting the state’s argument that the open-carry ban promoted public safety because “deranged persons and criminals would be less likely to gain control of firearms in public because concealed firearms…could not be viewed by ordinary sight.” Supreme Court appears divided on patent case......... B4 TUDOR BORN TO DARE AND BLACK BAY ARE ® TRADEMARKS. NEW YORK. Court Rejects Two Appeals on Guns BLACK BAY CHRONO 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 | Tuesday, November 28, 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 THE WALL STREET JOURNAL. X U.S. NEWS Democratic senator from Minnesota tries to move past sexualmisconduct claims to again say I am sorry. I know there are no magic words that I can say to regain your trust. I know that’s going to take time. I’m ready to start that process and it starts with going back to work today,” he said. Mr. Franken’s remarks to reporters were an attempt to put the allegations behind him as controversy swirls on Capitol Hill about sexual harassment. He rarely takes questions from the national media, preferring to speak only to outlets based in his home state. Mr. Franken has been absent from the Senate since Leeann Tweeden, a model and broadcast host, earlier this month accused him of kissing her against her will in 2006. Ms. Tweeden also released a photo in which Mr. Franken appeared to grope her while she was asleep. Both incidents allegedly occurred during a USO tour overseas to entertain troops before Mr. Franken was in the Senate. After Ms. Tweeden came forward, several other women accused Mr. Franken of touching them inappropriately while taking photographs at various events. BY BYRON TAU WASHINGTON—Sen. Al Franken re-emerged on Capitol Hill on Monday after more than a week away from Congress, apologizing to his supporters, his colleagues and the women who have accused him of sexual misconduct, while making clear he intends to remain in office. “I know that I’ve let a lot of people down—the people of Minnesota, my colleagues, my staff, my supporters and everyone who has counted on me to be a champion for women,” said Mr. Franken, a Minnesota Democrat, in a brief news conference. Mr. Franken said that he would cooperate with a Senate Ethics Committee investigation into his conduct. He told reporters that he was open to the committee, which typically conducts its deliberations in secret, releasing the report publicly. “To all of you, I just want YURI GRIPAS/REUTERS Franken Apologizes, but Won’t Resign ‘I know that I’ve let a lot of people down,’ Sen. Al Franken said at a news conference on Monday. He has apologized to Ms. Tweeden, saying the photo was an inappropriate joke and that he remembered the kissing incident differently. He says he doesn’t remember any of the other alleged incidents but that he was sorry for making any women feel disrespected. “From these stories it’s been clear that there are some women...who feel that I have done something disrespectful and have hurt them. And for that I am—I am tremendously sorry,” he said. Mr. Franken has resisted calls to resign. If he were to leave his seat, a successor would be appointed by Minnesota’s Democratic governor. He is one of several members of Congress or congressional hopefuls fighting allegations of misconduct. Rep. John Conyers, a Michigan Democrat, acknowledged this month that his office paid out a settlement in response to a sexual-harassment complaint, but denied the allegations. He stepped aside from his post as the top Democrat on the Judiciary Committee over the weekend. Senate candidate Roy Moore, a Republican from Alabama, also has been accused of sexual misconduct with teenage girls. Mr. Moore has denied those accusations, but many Senate Republicans have called for Mr. Moore to quit the race. Notice to Readers The Capital Journal column will return next Tuesday. WASHINGTON WIRE CFPB been regulated more lightly, such as so-called payday and auto lending. Mr. Mulvaney, who said he intends to work three days a week at the CFPB and three days a week at OMB, promised swift changes. “Anyone Crafted in gold & platinum Order by 12/20 for the Holidays Your Anniversary Immortalized In Roman Numerals JOHN-CHRISTIAN.COM 888.646.6466 President Revives ‘Pocahontas’ Jab who thinks that a Trump administration CFPB would be the same as an Obama administration CFPB is simply being naive. Elections have consequences at every agency, including the CFPB,” he said. Senate Minority Leader Chuck Schumer (D., N.Y.) criticized Mr. Mulvaney’s appointment as the latest in a pattern of the Trump administration putting ardent critics in charge of agencies it wants to undermine. Among such examples are the Environmental Protection Agency, the Energy Department and the Ex-Im Bank, he said. Still, Mr. Mulvaney’s first day at the CFPB was marred by the fight with Ms. English, a career CFPB official appointed acting director last week by Mr. Cordray. A federal trial judge on Monday held an initial hearing to begin sorting out the legal dispute, and could rule quickly on Ms. English’s request for an order barring Mr. Mulvaney from running the bureau. The Trump administration was expected to file its response to the case later Monday. The lawsuit is being handled by Judge Timothy J. Kelly, who was confirmed to the bench in September after being nominated by Mr. Trump this summer. “It’s basically a legal mess,” said V. Gerard Comizio, a partner at Fried Frank. “There is a very real possibility this could end up in the Supreme Court.” The case hinges on whether the president’s authority to fill vacant slots at the head of government agencies could overpower succession guidelines in the 2010 Dodd-Frank financial-overhaul law, which created the bureau. The outcome could have broader significance on how the administration makes temporary Mick Mulvaney, above at center, walks to the CFPB building in Washington, D.C., on Monday. Leandra English, left, has challenged President Donald Trump’s appointment of Mr. Mulvaney to be the head of the agency, saying that she is the rightful chief. Rules Rebound The Consumer Financial Protection Bureau picked up the pace in issuing rules during the third and fourth quarters of 2017. 11 rules published 10 9 8 7 6 5 4 3 2 1 0 MARK WILSON/GETTY IMAGES ‘There is a very real possibility this could end up in the Supreme Court.’ WHITE HOUSE MATT MCLOONE FOR THE WALL STREET JOURNAL Continued from Page One officials and in the afternoon held a press conference calling the takeover a success and laying out his plans to put his imprint on the bureau’s work. That included, with some exceptions, a 30-day freeze on payments out of the CFPB’s civil penalties fund. He acknowledged that he was powerless to stop rules that had already been completed by the agency. “Stuff that’s out the door, I’m not sure there’s much I can do about it,” he said. Some staffers said the transition went better than expected. “A lot of people were expecting far worse,” said one employee outside the agency’s headquarters, declining to be identified. “There’s no chaos.” A contractor working at the CFPB said, “As far as they told me it’s business as usual.” The two sides are fighting over the future of the CFPB, which was created by former President Barack Obama and congressional Democrats in the wake of the financial crisis. Supporters said the previous regulatory structure failed to prevent the mortgage-market meltdown that led to many consumers losing their homes to foreclosures. The CFPB’s activities have drawn praise from consumer advocates and Democrats, as the agency implemented new rules governing mortgages and credit cards and returned billions of dollars to consumers through enforcement actions. Republicans and the financial industry say the agency’s rules and enforcement activities have increased compliance costs and reduced credit availability for consumers that the bureau was created to protect. The pushback has been particularly strong from industries that had previously 2011 ’12 ’13 ’14 CONGRESS Lawmaker Addresses ’08 Sexual Allegations ’15 ’16 ’17 Note: Data through Nov. 27 Source: the agency THE WALL STREET JOURNAL. appointments at government agencies. So far, there appeared to be little impact on consumers. Advocates are closely monitoring whether Mr. Mulvaney will shut down or alter the CFPB’s complaint database, a tool used by hundreds of thousands of consumers and a subject of protest from the financial industry, in part because it names companies and publishes complaints without verifying the accusations. Other possible changes include delaying the enactment of a recently issued rule on high-interest small consumer loans known as payday loans, easing mortgage-underwriting standards and reassessing pending lawsuits against companies such as student-loan servicer Navient Corp. The financial industry, for its part, isn’t amused by the fracas at the agency, with some saying the struggle over control of the CFPB points to the need for Congress to step in and make changes to the bureau’s structure. “If you don’t change the structure of the CFPB, we’re going to be right back in this situation when the next director departs,” said Richard Hunt, the head of the Consumer Bankers Association. “Most of us don’t want to replay this again,” he added. “That does not provide certainty and stability.” Mr. Mulvaney, even as an acting director, could serve at the CFPB for quite some time. Some experts say there is lit- Midway through remarks honoring the wartime service of a group of Native American men, President Donald Trump took a moment to mention his Indian nickname for a longtime political opponent. Speaking in the Oval Office, next to the trio of elderly veterans, the president said: “You were here long before any of us were here, although we have a representative in Congress who they say was here a long time ago. They call her Pocahontas.” “Pocahontas,” a historical figure from the early 17th century, is the GOP president’s nickname for U.S. Sen. Elizabeth Warren (D., Mass.), who has regularly criticized Mr. Trump. Ms. Warren, who has said she is part Native American, has been accused of trying to advance her academic career as a law-school professor by citing her heritage. She has denied that is the case. “It is deeply unfortunate that the president of the United States cannot even make it through a ceremony honoring these heroes without having to throw out a racial slur,” Ms. Warren said on MSNBC. White House press secretary Sarah Huckabee Sanders said the president didn’t use the name “Pocahontas” as a slur and called Ms. Warren’s response “ridiculous.” She added that “what most people find offensive is Sen. Warren lying about her heritage to advance her career.” At the White House, Mr. Trump’s reference to “Pocahontas” elicited no reaction from the Native American men, who used their native language to foil enemies trying to intercept U.S. military messages. —Peter Nicholas tle incentive for Mr. Trump to quickly nominate a permanent director. Rather, by allowing Mr. Mulvaney a year or longer to serve as a caretaker at the CFPB, the president could ensure several years of Republican control of the agency because directors serve fiveyear terms once they are confirmed. Meanwhile, Ms. English sent email to employees on Monday saying that she is the director, and later in the day appeared at a meeting with Senate Democrats supportive of the CFPB, including Sens. Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts. —Gabriel T. Rubin and Rebecca Ballhaus contributed to this article. Rep. Al Green of Texas said he resolved a decade-old dispute with a former employee “without payment of any money or transfer of any consideration of any kind.” Mr. Green, a Democrat from the Houston area, issued a joint statement Monday with his former district director to address questions they said have arisen “in the present climate.” Members of Congress and prominent people in entertainment, media and other industries have been accused of sexual misconduct. Mr. Green and the former employee, Lucinda Daniels, said the 2008 dispute has “been absolutely resolved,” adding that, “We are friends.” A lawyer for Ms. Daniels said in 2008 that Mr. Green forced her to have sex. She threatened a lawsuit, prompting Mr. Green to threaten his own lawsuit. Both allegations were later dropped, and the pair said in a statement that the matter was resolved amicably and without payment. —Associated Press For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Tuesday, November 28, 2017 | A4A Proud to be the World’s Best Bank. Helping you reach your dreams is our inspiration. The awards just happen. Visit us at us.hsbc.com WORLD’S BEST BANK 2017 Issued by HSBC Bank USA N.A. Member FDIC. HSBC was named The World’s Best Bank in the Euromoney Awards for Excellence 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 A4B | Tuesday, November 28, 2017 THE WALL STREET JOURNAL. NY We Deliver. Meals. Nutrition. Dignity. Hope. Love. #FoodIsMedicine godslovewedeliver godslovenyc godslovenyc God’s Love We Deliver is the New York City metropolitan area’s leading provider of nutritious, individually tailored meals to people who are too sick to shop or cook for themselves. All meals are provided free of charge, without regard to income, and we have never had a waiting list. To donate or volunteer your time, visit us at godslovewedeliver.org. If you are in the NYC metropolitan area and would like to become a client, please email firstname.lastname@example.org or call 212.294.8102. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | A5 NY U.S. NEWS BY LAURA KUSISTO Sales of newly built homes rose in October for the second consecutive month, driven by demand for entry-level homes. Purchases of newly built single-family homes, a small portion of all U.S. home sales, increased 6.2% to a seasonally adjusted annual rate of 685,000 in October from the previous month, the Commerce Department said Monday. The advance supports a longer-term positive trend in the market. In all, new-home sales were up 8.9% in the first 10 months of the year from the year-earlier period and have jumped nearly 19% in the past 12 months. Sales of new homes have jumped nearly 19% in the past 12 months. Entry-level buyers are driving much of the activity. Sales of homes in the $200,000 to $300,000 range increased more than 35% in October from a year earlier. Demand for starter homes is expected to fuel continued sales growth if builders can ramp up construction quickly enough. Builders face a number of challenges, such as high land costs, labor shortages and rising material prices. “The market is starving for affordable new homes, and builders cannot and will not ignore this hungry market,” said Svenja Gudell, chief economist at home listings website Zillow. The number of homes that have been sold but haven’t yet started construction jumped by 30% in October from a year earlier. That suggests housing starts should rise strongly in the coming months. “The fact that you’ve got gains in homes sold but not started construction is confirmation that there is simply not enough inventory,” said Robert Dietz, chief economist at the National Association of Home Builders. “The markets that are going to grow are ones where builders can add that entry-level product.” That is good news for the U.S. economy overall because it indicates consumers have confidence in their economic prospects and will be making ancillary purchases, such as new flooring, furniture and landscaping, in the months ahead. “New-home sales are a leading indicator, and the jump in October sales are leading the economy higher as we finish out the year,” said Chris Rupkey, chief financial economist at financial-services firm MUFG. But inventory shortages remain a constraint. At the current sales pace, there was a 4.9-month supply of new homes on the market at the end of October, the lowest level this year and down from nearly six months in the summer. The median sale price for a new home sold in October was $312,800, up from $302,800 in October 2016. October’s robust growth comes after new-home sales jumped 14.2% in September. Still, U.S. new-home sales remain about half what they were during the last boom. In 2005 more than 1.2 million new U.S. homes were sold. Sales of existing homes, which makes up the bulk of the U.S. housing market, slipped 0.9% in October from a year earlier, the second consecutive decline on an annual basis, the National Association of Realtors said last week. —Sharon Nunn contributed to this article. The White House Decks Its Halls SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES Entry-Level Buyers Spur Home Sales WINTER WONDERLAND: First lady Melania Trump walked through the East Wing of the White House on Monday as she surveyed the traditional décor she chose for the family’s first holiday season in the nation’s capital. ‘The decorations are up!’ Mrs. Trump tweeted Monday morning. ‘@WhiteHouse is ready to celebrate! Wishing you a Merry Christmas & joyous holiday season!’ Cash Incentives Lift Test Scores BY BEN LEUBSDORF U.S. students’ mediocre standing in many global performance rankings may in part reflect a failure of effort rather than a lack of aptitude, according to a new study by economists in the U.S. and China. In an experiment last year, a group of Massachusetts 10th graders got a surprise at the beginning of a math test: money in exchange for correct answers. Those students left fewer questions blank and answered more correctly, compared with students who weren’t offered a reward, suggesting the cash was an incentive for greater effort resulting in higher scores. But a similar cash reward had no significant effect on test scores when the experiment was conducted with students in Shanghai. That suggested students from different cultures may show different levels of motivation when it comes to taking low-stakes assessment tests, the researchers said, complicating comparisons across national borders. “These tests are usually interpreted as gaps in ability,” said Sally Sadoff, an economist at the University of California at San Diego. “The point we’re trying to make is, part of the gap may be due to gaps in intrinsic motivation and effort on the test itself.” The study, circulated this month by the National Bureau of Economic Research as a working paper, was written by six economists: Uri Gneezy of UC San Diego, John List of the University of Chicago, Jeffrey Livingston of Bentley University, Ms. Sadoff, Xiangdong Qin of Shanghai Jiao Tong University, and Yang Xu of Peking University. It is the latest in an extensive and growing body of research looking at whether compensating students can help improve educational outcomes. Other studies have found mixed results on whether financial incentives meaningfully boost student performance or test scores. Educators, political leaders and others often worry about U.S. competitiveness when standardized tests, such as the triennial Program for International Student Assessment, show U.S. students are outperformed by students elsewhere. “As the new PISA results show, U.S. students are scoring well behind their peers in top-performing nations,” thenEducation Secretary John B. King Jr. said in 2016. The six researchers extrapolated from the experimental results that the greater effort produced by such a financial incentive would have boosted the U.S. in the 2012 PISA international math rankings from 36th place to a more-respectable 19th place. The latest study didn’t isolate why Chinese students tried harder than American students on the test. Renovating or moving your office? Don’t throw out profits with your old desk! New York City businesses send 3.3 million tons of garbage to landfill every year—but much of it can be reused. Save your company money. You can cut disposal costs and earn tax deductions for eligible donations! Fight Good for Donate your used or surplus furniture, equipment, and supplies at nyc.gov/donate. Love has an army that fights for the homeless, the hungry, the lost and the broken.This Giving Tuesday, join our battle to put roofs over heads, food on tables, and hope in hearts. RedKettleReason.org | 1-800-SAL-ARMY nyc.gov/donate | call 311 donateNYC DN-WBAPAD: DONATENYC WSJ AD 1117 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A6 | Tuesday, November 28, 2017 WORLD NEWS Pakistan’s Capitulation Bolsters Islamists Departure of law minister ends protests by hard-liners, shows government-army rift ISLAMABAD, Pakistan—The government’s decision to accept the demands of Islamist protesters who had blocked a main road into the capital, sparking a deadly weekend showdown, has further set back the South Asian nation’s struggle to restrain the rise of religious hard-liners. After failing to break up the protests on Saturday, which led to at least seven deaths and 260 injured, Islamabad bowed to the main demand of protesters, the law minister’s resignation. The military-brokered agreement with the protesters bolstered the armed forces’ standing while weakening the already-fragile government’s stance, critics said. “The scale of appeasement is breathtaking,” said Farzana Shaikh, author of the book “Making Sense of Pakistan.” “This is a humiliating defeat for the government and a country of more than 200 million that has been held to ransom.” Some government officials said they were forced to capitulate after the military didn’t come to the government’s aid. As violence escalated late Saturday, the government asked for the army’s help. But the military said the matter should be resolved peacefully. The protesters on Monday ANJUM NAVEED/ASSOCIATED PRESS BY SAEED SHAH Supporters of the Tehreek Labbaik Ya Rasool Allah religious group chanted slogans at a protest in Islamabad on Monday after Law Minister Zahid Hamid resigned. said they had negotiated with the military and refused to deal with the government. Pakistan’s army chief, Gen. Qamar Bajwa, “has saved the nation from a big tragedy,” the written agreement between the protesters and the authorities said. “If the government wants to stay in power, they will now have learnt lessons that they can only stay if they kowtow to the military’s wishes and commands,” said Asma Jahangir, a human-rights lawyer. The military had said late Saturday that the police oper- ation hadn’t been handled well but warned in a letter to the government that its troops weren’t well-suited to riot control, as “employment of army implies application of a force which is traditionally not just used for dispersal of crowd protesters.” The military didn’t respond to a request to comment on Monday. The protests started peacefully when activists from a mainstream Islamic sect descended on the outskirts of Islamabad on Nov. 7, blocking a major entry route to the capi- tal, saying they were there to defend the honor of the Prophet Muhammad and prevent blasphemy. They said proposed legislation had tried to water down an oath that parliamentarians take, swearing Muhammad was the final prophet. They blamed Law Minister Zahid Hamid for the change and demanded he quit. The protesters are Barelvi Muslims, the majority sect in Pakistan, and organized around a group called Tehreek Labbaik Ya Rasool Allah, which formed a political party in recent weeks. The group aims to maintain Pakistan’s blasphemy laws, which carry the death penalty for anyone insulting the Prophet Muhammad. The government on Saturday sent around 8,000 police and paramilitary to clear the road of thousands of protesters. The crackdown sparked further protests elsewhere in the country, including Karachi and Lahore, its two biggest cities. The government shut private news broadcasts as well as social media, including Facebook and Twitter. The government has been struggling since the courts this year ousted Nawaz Sharif as prime minister. Mr. Sharif, whose party remains in office, has repeatedly said the military establishment is the force behind his removal, an allegation it denies. A State Department representative on Sunday said the U.S. was monitoring the situation closely. Defense Secretary Jim Mattis is expected to visit Islamabad for talks next week. BY NAZIH OSSEIRAN BEIRUT—Lebanon’s Prime Minister Saad Hariri has been riding a wave of popularity, rallying Lebanon’s factions behind him, since he returned from a weekslong visit to Saudi Arabia, during which he mysteriously resigned. The belief here that Saudi Arabia had forced Mr. Hariri to resign on Nov. 4 set off a nationalist fervor in Lebanon that was on full display last week. After the premier returned to Beirut and put his resignation on hold, supporters chanting “Saad! Saad! Saad!” took to the streets of the capital. “What is interesting about him is that his popularity extends beyond his own community and is multisectarian—more of a national following,” said Maha Yahya, director of the Carnegie Middle East Center, in Beirut. “It was clear that his freedom was constrained [in Saudi Arabia]—to put it politely— and this touched a raw nerve in multiple areas.” Mr. Hariri remained in Saudi Arabia for two weeks after announcing his resigna- tion, fueling those suspicions. Lebanon President Michel Aoun, among others, accused Saudi Arabia of holding him against his will, an allegation Riyadh denied. Mr. Hariri’s newfound popularity is welcome news for his U.S. and Western allies, who don’t want to see Lebanon further destabilized when neighboring countries such as Syria and Iraq are in deep turmoil. However, the very qualities that are boosting the Sunni leader’s popularity at home— especially his willingness to compromise with Lebanon’s Iranian proxy, Hezbollah—are seen by his longtime patrons in the Sunni kingdom of Saudi Arabia as a fatal weakness. Hezbollah’s parliamentary bloc issued a statement Thursday saying it was “satisfied” with the developments. Ms. Yahya said Hezbollah and its allies preferred to deal with Mr. Hariri than with any other Sunni leader because of his willingness to compromise. Despite his revived popularity, Mr. Hariri’s path remains strewn with obstacles. DALATI NOHRA/REUTERS Lebanon’s Premier Turns Saudi Episode Into an Asset Lebanon’s President Michel Aoun, left, met with Prime Minister Saad Hariri on Monday. Saudi Arabia has said that it will not tolerate Hezbollah in government, while the movement will not likely accept the formation of a government that does not include its representatives. The heads of parliament’s rival blocs met Monday at the presidential palace to seek a way out of the standoff. The Saudis had long pressed Mr. Hariri to take a tougher stance against Hezbollah, which shares power in his government and is the strongest military and political force in the country. Saudi Arabia and Iran are locked in a power struggle playing out across the Middle East from Syria and Iraq to Yemen. The Saudis wanted Mr. Hariri out of his post because they viewed his power-sharing arrangement with Hez- bollah as something that gave the group a veneer of respectability it didn’t deserve, according to people with knowledge of their thinking. Mr. Hariri, after meeting with the president and the parliament speaker on Monday, told French television channel CNews that he would formally resign if Hezbollah did not accept changes. In his Nov. 4 resignation statement, Mr. Hariri cited Iran’s growing influence over Lebanon through Hezbollah and said he feared for his life. Mr. Hariri was appointed prime minister in 2016 following a deal that was blessed by both Saudi Arabia and Iran. It brought in Mr. Aoun, a Hezbollah ally, as president and ended political paralysis that had gripped the country for more than two years. Before his election, Mr. Hariri had been falling rapidly out of favor with his traditional Sunni base. He lost municipal elections to Sunni rivals in the second-largest city, Tripoli, a Sunni stronghold. In Beirut, his candidates won by a narrow margin. Independent parliament member Boutrous Harb, a former telecommunications minister, said that before the recent events, Mr. Hariri was losing support because he was seen as too accommodating to Hezbollah. “No doubt there was increased sympathy with Hariri that came as a result of the circumstances surrounding his resignation,” he said. SONNY TUMBELAKA/AGENCE FRANCE-PRESSE/GETTY IMAGES Volcano Shuts Down Bali Airport, Grounding Thousands of Travelers JAKARTA, Indonesia—New eruptions from a volcano in Bali shut down Indonesia’s secondbusiest airport, disrupting the plans of thousands of vacationers. Authorities raised the alert level at Mount Agung one notch to four, the highest, as the volcano spewed black ash more than 2 miles into the sky—roaring to life two months after tremors forced the temporary evacuation of more than 130,000 people. Ngurah Rai International Airport, which handles as many as 420 flights a day to and from the popular resort island, closed Monday morning, forcing seven flights already in the air to divert to cities on the main island of Java. Airport spokesman Arie Ahsanurrohim said 59,000 passengers had been affected. Officials said the airport would remain closed for at least 24 hours as they assessed the giant clouds of ash. The airport and the main beachside resorts—the major draw for some five million foreign tourists annually—are more than 30 miles away, and the government’s disaster-mitigation agency said the largest tourist areas are safe. Mount Agung—seen left looming over Bali’s Karangasem Regency on Monday as islanders in a truck drove by—is nearly 10,000 feet high. It ended more than half a century of dormancy in August, with strong tremors in September forcing evacuations. Most evacuees returned last month as the tremors weakened. Government volcanologist Gede Suantika said Agung could spew ash for at least a month, though he didn’t expect a major eruption. Australia’s Bureau of Meteorology said eruptions and ash falls were likely to continue for at least 24 hours. Andrew Bryant, a Singaporebased businessman, said he had been booked to speak Tuesday at a two-day conference with 150 attendees from across the region. It was canceled, and he said he was now “wondering if organizers will begin to review the risk” of a Bali conference he is planning to attend in August. Mount Agung last erupted in 1963 and 1964, when it killed more than 1,700 people, according to Indonesia’s disaster agency. —I Made Sentana and Ben Otto For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | A7 WORLD NEWS YANGON, Myanmar—A few hours after he arrived in Myanmar on Monday, Pope Francis met with the architect of a military campaign that the United Nations and the U.S. have denounced as ethnic cleansing, and which the pope himself has described as religious persecution. The meeting with Sen. Gen. Min Aung Hlaing, commander in chief of Myanmar’s military, was an effort to reduce tensions over the plight of the country’s Rohingya Muslim minority. The issue threatens to dominate the papal visit, which ends Thursday. A Vatican spokesman described the 15-minute meeting as a “courtesy call” by the senior general to the pope, and said only that the two exchanged gifts and spoke about the “great responsibility of the country’s authorities in this moment of transition.” A statement posted on Sen. Gen. Min Aung Hlaing’s Facebook page said that he told the pope that there was no religious or ethnic discrimination in Myanmar, and that the military’s goal for the country was the achievement of social stability. After half a century of military dictatorship, Myanmar began its transition to democracy in 2011. A civilian government, under Nobel peace laureate Aung San Suu Kyi, was elected in 2015. But the military remains by far the country’s most powerful institution. Under the military-written constitution, Sen. Gen. Min Aung Hlaing controls three key ministries—Defense, Home Affairs and Border Affairs— that give him oversight of the legions of police, border guards and civil service responsible for the enforcement of legislation. Following attacks on security forces by Muslim militants in the country’s western Rakhine state in August, the senior general has overseen an operation leading to an exodus of 620,000 mainly Muslim residents to neighboring Bangladesh. U.S. Secretary of State Rex Tillerson, who met with Sen. Gen. Min Aung Hlaing this month, last week called the operation ethnic cleansing and argued for an independent inquiry into abuses by security forces and others. But the senior general has taken a domestically popular nationalist line on the Rohingya. Pope Francis has been an outspoken advocate for the Rohingya. After the crackdown started in August, the pope bemoaned what he called the persecution of “our brothers the Rohingya,” and called for them to receive their “full rights.” The pope is scheduled to meet with some Rohingya refugees on Friday in Dhaka, Bangladesh. BY JAMES MARSON AND NATHAN HODGE MOSCOW—President Vladimir Putin has notched 17 years as Russia’s ruler by co-opting political opponents or keeping them off the ballot and out of public view. Ahead of the presidential election in the spring, the Kremlin has a new strategy: putting some of his critics on television. For viewers used to monotonously pro-Putin fare, it is a breath of fresh air. This month, veteran liberal leader Grigory Yavlinsky appeared on a topranked political show to denounce Mr. Putin’s budget policy and military interventions abroad. And in a state-television interview at the end of October, socialite Ksenia Sobchak, a surprise potential candidate, complained about a lack of freedom of speech and called for new faces in government. Mr. Putin, who has yet to declare his candidacy but is expected to run, is almost certain to win the vote handily. But the Kremlin, some analysts say, wants to boost turnout and dissipate support for one man who almost certainly won’t be on the ballot: Alexei Navalny, an anticorruption blogger who has challenged the Kremlin in recent months by bringing tens of thousands of Russians onto the streets. The new liberal candidates won’t help the Kremlin neutralize Mr. Navalny, said Aleksandr Kynev, a political-science professor at the Higher School of Economics in Moscow. But the new faces will spice up the race, he added. “The problem for the Kremlin is that the campaign isn’t interesting at all,” Mr. Kynev METZEL MIKHAIL/TASS/ZUMA PRESS BY FRANCIS X. ROCCA AND BEN OTTO Now on Russian TV: Putin’s Rivals Polls put President Vladimir Putin’s popularity above 80%, but Russians seem to be tiring of voting. Commanding Lead Percentage polled who say they would vote for Russian President Vladimir Putin compared with two of his prominent competitors in coming elections 68% Vladimir Putin Ksenia Sobchak 2% Grigory Yavlinsky 1% Source: Public Opinion Foundation poll conducted Nov. 12 said. “Without that, it’s hard to get the turnout up, and turnout is the key to legitimacy.” Mr. Yavlinsky, a bookish economist who ran for president in 1996 and 2000, was struck off the ballot last time on a technicality. But on the campaign trail in Siberia this month, his team noticed that media controlled by local authorities that normally ignore his activities were covering them. Then, Mr. Yavlinsky was THE WALL STREET JOURNAL. invited for a short interview on a current-affairs show on a state television channel. “It was a pleasant surprise,” said Alexander Gnezdilov, a deputy leader of Mr. Yavlinsky’s party, Yabloko. Ms. Sobchak, who has taken part in past anti-Kremlin protests, has become a regular guest on TV talk shows. Her appearances are light on policies—“I’ll publish my program when necessary,” she said on Thursday—and focused in part on controversies from her past as a reality-show star and film actress. The 36-year-old daughter of Mr. Putin’s political mentor, Ms. Sobchak has raised a political taboo by saying Crimea, which Russia annexed in a wave of patriotism in 2014, is Ukrainian according to international law. Her choice to retain Vitali Shkliarov, a Belarusian citizen who worked on Sen. Bernie Sanders’s 2016 presidential campaign, as a political adviser also drew note. Mr. Shkliarov described Ms. Sobchak as a daughter of the establishment who was taking an enormous risk as a woman running against Mr. Putin in Russia’s male-dominated society. “You have to go all in, because if you go against the Kremlin, you’re going to lose everything,” he said. “It takes a lot of guts for her to announce that, because she could have done one easy thing, just keep living the way she lives.” The Kremlin has been coy about Mr. Putin’s participation and any potential rivals. “It’s too early to talk about rivals of Putin, as Putin himself hasn’t spoken of his intention to run, and has said that there’s time before the start of the campaign,” Kremlin spokesman Dmitry Peskov told reporters in October. “He prefers to concentrate on presidential work for now.” Polls put the president’s approval rating above 80%, but Russians seem to be tiring of going out to vote for him and his party. Turnout for parliamentary elections last year fell below 50%, a post-Soviet low. Mr. Putin is used to facing off against perennial losers such as Gennady Zyuganov, the leader of the Communist Party, and nationalist firebrand Vladimir Zhirinovsky, who have already declared their candidacies. Analysts say Mr. Yavlinsky and Ms. Sobchak also pose little threat. “Yavlinsky is harmless whether he’s on TV or not. He’s stuck to the same melody for years,” said Alexey Chesnakov, a former Kremlin aide who now heads the Center for Current Policy, a think tank. As for Ms. Sobchak, Mr. Chesnakov said she “won’t take votes off Putin. She suits the Kremlin.” Everyone bar Mr. Putin is polling in single digits, according to a recent survey by Public Opinion Foundation. Mr. Navalny, a 41-year-old anticorruption activist, says he hopes to run, but he could be blocked by an embezzlement conviction that he calls political. Prince Harry Is Engaged to American Actress BY JENNY GROSS LONDON—Britain’s Prince Harry will marry American actress Meghan Markle in the spring, the royal family said, setting the stage for a traditional display of pomp that shows just how much the monarchy has changed. The news ended several days of intense speculation that the second-born son of Prince Charles and the late Princess Diana—the fifth in line to the throne—was engaged. Speaking to reporters on Monday, Prince Harry said he was thrilled to be marrying Ms. Markle, a star of the TV series “Suits,” a humanitarian activist and lifestyle blogger who has been married once before. He knew she was the one, he said, from the first time they met. When asked if his proposal was romantic, he said: “Of course it was.” Queen Elizabeth II and Prince Philip welcomed the announcement. “The Queen and the Duke of Edinburgh are delighted for the couple and wish them every happiness,” Buckingham Palace said in a statement. The relationship of Prince Harry and Ms. Markle has merged the star power of the British royal family with the glitz of Hollywood, sparking intense media coverage of a courtship that would have been unlikely in previous generations of royals. In a televised interview, Ms. Markle said Prince Harry proposed a few weeks ago during a quiet night at home in London while they were roasting chicken. “I could barely let you finish proposing—I said can I say yes now?” she said, turning to Prince Harry. A mutual friend set them up in July 2016, the couple said, and after just two backto-back dates in London, Prince Harry invited Ms. Markle on a trip to Botswana several weeks later. “We camped out with each other under the stars,” he said. Until now, the royal family has mostly remained quiet on their relationship, but at one point felt it had to weigh in. The Palace first confirmed the relationship a year ago, when Prince Harry attacked British news coverage of Ms. Markle, whose mother is black and father is white. His communications secretary said Ms. Markle had been subject to a “wave of abuse and harassment,” including attempts by reporters and photographers to gain illegal entry to her home, and criticized the “racial undertones” of some me- and ginger hair with some rich and exotic DNA.” In another article, the Daily Mail listed the crime statistics in the Los Angeles neighborhood where Ms. Markle’s mother lives. Ms. Markle, who grew up in California, will live with Prince Harry in Nottingham Cottage at Kensington Palace, according to a statement. The monarchy’s attitude toward divorce has modernized in line with changing social attitudes. In 1936, Edward VIII abdicated just 11 months after becoming king to marry the twice-divorced American socialite Wallis Simpson. Two decades later, Princess Margaret called off her proposed marriage to Group Captain Peter Townsend, a decorated World War II air force officer, after they were forbidden from marrying because he was divorced. Divorce has now become commonplace. Three of Queen Elizabeth’s four children are divorced. Less than a decade after divorcing Princess Diana, Prince Charles remarried Camilla Parker Bowles—herself previously divorced. Ms. Markle, who is Protestant, studied at a Roman Catholic girls’ school. She graduated from Northwestern University in 2003. Her parents, Thomas Markle and Doria Ragland, said they were delighted. “Our daughter has always been a kind and loving person. To see her union with Harry, who shares the same qualities, is a source of great joy for us as parents.” of the time, down from four days, a spokesman said. The retailer will fine suppliers for shipments that arrive late and for those that arrive early or incomplete. Too-early arrivals can crowd tight backrooms with excess inventory. Because fines are a percentage of the missed order value, large suppliers that ship to warehouses can rack up monthly fines of over $1 million, according to people familiar with the matter. Kroger’s Mr. Clark said the company eventually will fine for any shipment that isn’t received on the due day. “If it was an occasional issue, it wouldn’t have been worth the time and effort” to police deliveries, he said. Kraft Heinz, maker of Jell-O pudding and Oscar Mayer hot dogs, recently invested in a supply-chain visibility provider to help it predict shipment arrivals, monitor truck temperatures and make adjustments in real time. Troy Shannan, head of U.S. operations, said that in the past, “once the truck was on the road, we knew it would get there. Now, we’re focused on when it arrives.” P&G, Wal-Mart’s largest supplier, has spent billions of dollars in recent years overhauling its supply chain, in part to meet retailers’ moreprecise shipping windows and boost its ability to ship online orders directly to shoppers, company executives said. It consolidated hundreds of offices and warehouses across North America into eight facilities and set up six so-called mixing centers, where a combination of computer algorithms, robots and humans are used to load trucks with the optimum mix of products to ship to retailers. Many other suppliers don’t have the necessary warehousing infrastructure. Steve Matthesen, CEO of Acosta Inc., a sales and marketing agency for consumer packaged goods, said: “Shipping complete orders on time is a completely reasonable request but turns out it’s harder than it sounds.” —Sharon Terlep contributed to this article. NEIL HALL/EPA/SHUTTERSTOCK Pope and Myanmar Military Chief Meet Prince Harry and Meghan Markle after announcing their engagement. dia commentary. In a column for the Mail on Sunday tabloid, a journalist wrote that if the couple has children, “the Windsors will thicken their watery, thin blue blood and Spencer pale skin FROM PAGE ONE FOOD Continued from Page One ments in their supply chains that in some cases are squeezing their profits in the short term. Wal-Mart has signaled it could do more than levy fines if problems persist. Charles Redfield, executive vice president of food for Wal-Mart U.S., told suppliers they could also lose shelf space if they don’t solve their delivery issues, according to people in attendance at a supplier meeting earlier this year. Retailers can threaten suppliers with loss of promotional space in stores, analysts said. Most large suppliers average around 75% of orders on time and complete, analysts say. “An out-of-stock on an important product can lead to thousands of lost consumers in a given day,” said J.P. Morgan food analyst Ken Goldman. New tracking capabilities and data give retailers even more leverage to press their suppliers, said Foster Finley, head of logistics consulting for AlixPartners. Some of them are using that information to issue report cards that measure service levels, including timeliness. Packaged-goods companies are straining to keep up with the demands and remain in the good graces of retailers. They need GPS trackers and software to adjust routes in real time. Filling full orders fast is also challenging, since many manufacturers house items all over the country. That is particularly true for refrigerated items needing costly cold storage—which has fueled investments in more fulfillment centers, industry consultants said. At Hershey, significant supply-chain investments will hamper the company’s profit margin likely through the first half of 2018, according to Chief Executive Michele Buck. “That is an overall theme in the industry,” she told analysts on a conference call last month. Mark Clouse, chief execu- tive of Pinnacle Foods Inc., maker of Duncan Hines and Birds Eye brands, said the delivery issue is getting “a heightened level of focus,” with retailers now consistently demanding better customer service in tighter delivery windows. “The investments that we’re making are going to better position us for that in the future,” he said. Wal-Mart executives say a more-precise delivery window keeps shelves stocked and the flow of products more predictable, while reducing inventory—all of which are increasingly important to the retailer as it invests heavily to compete online. The change could create $1 billion in additional sales over time, they said. “We hope we don’t have to collect any fees from suppliers. We would much rather have all the product we ordered on time,” said Wal-Mart spokesman Kory Lundberg. Wal-Mart wants general merchandise from manufacturers sending full truckloads of large orders to arrive within a two-day window 75% of the time, down from four days, and it wants shelf-stable food and household items to arrive within a one-day window 75% Time Troubles One national consumer goods manufacturer aimed to get at least 95% of items per order to the customer on time. Only 35% of its orders reached that goal between Jan. 2016-June 2017. Percentage of items on time Percentage of orders meeting this range 95% or better 35.2% 90-94.9 8.6 80-89.9 17.6 70-79.9 12.1 60-69.9 50-59.9 9.0 6.6 40-49.9 3.3 30-39.9 2.3 20-29.9 1.7 10-19.9 0.8 0-9.9 2.9 Source: AlixPartners THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Tuesday, November 28, 2017 THE WALL STREET JOURNAL. * **** IN DEPTH One former Wells Fargo manager says employees would tell customers who expressed surprise at the size of a trading fee that market prices were different at the moment when the transaction was executed and blame “time fluctuation” for any difference. The bank’s foreign-exchange customers have included telecommunications firm CenturyLink Inc., vehicle-parts supplier Federal-Mogul Holdings Corp. and nonprofit groups such as the National Bone Marrow Donor Program. Regulators have been investigating the foreign-exchange Recovery Mode Wells Fargo's daily share price. The bank was hit by a sales scandal in September 2016. $60 55 50 45 40 2016 2017 Source: FactSet THE WALL STREET JOURNAL. BREAKS Continued from Page One sometimes allow members to hitch their own parochial wagons for the ride. That’s a rare opportunity in the modern Congress, which passes plenty of symbolic measures renaming public buildings but little substantive legislation. Decorating bills with small giveaways is as old as American democracy—but these additions come at an especially awkward time. Congress is adding minor tax cuts and exemptions to a bill presented under the banner of tax simplification. “It runs against the purported narrative of the effort,” said Robert Weissman, president of Public Citizen, a consumer advocacy group. The potential extension of the American Samoa Economic Development Credit would help the tuna company’s cannery, where 2,300 workers cook, clean and pack about 5,000 containers filled with Pacific Ocean fish annually. StarKist, owned by South Korea’s Dongwon Industries, saw its targeted tax break lapse in 2016. The House bill would revive the credit and extend it through 2022. American Samoa’s other business at Wells Fargo, including a big trade involving Restaurant Brands International Inc., the owner of Burger King, Tim Hortons and Popeyes Louisiana Kitchen, according to people familiar with the matter. The trade resulted in a loss to Restaurant Brands, people familiar with the matter have said, which led to a dispute between the Oakville, Ontario, company and the bank. The dispute centered on how bank employees handled the trade, rather than its pricing. Wells Fargo refunded about $900,000 to Restaurant Brands, people familiar with the refund say. The foreign-exchange business’s problems run far deeper than what is known inside Wells Fargo as “the Burger King trade” or what has been previously reported. The extent of the trouble seems to have become apparent to top Wells Fargo executives earlier this year. The business was moved in early 2017 from Wells Fargo’s international division into its investment-banking and capitalmarkets operation. Since then, executives have changed internal systems, added more stringent rules around pricing and required more frequent compliance checks, current and former employees say. Issues with the Burger King trade were found following those checks and customer complaints, people familiar with the matter say. The continuing internal review of Wells Fargo’s foreign-exchange operation is separate from the review sparked by the sales scandal, some of the people said. A compliance training session in early November detailed what Wells Fargo called “approved margins” for different volumes of foreign-exchange transactions, according to an internal document reviewed by The Wall Street Journal. Employees say fee levels remain higher than industry norms, and some compensation practices aren’t due to change until next year. Foreign-exchange trading has been a problem area for large cannery closed last year, citing reduced access to fishing grounds. StarKist says it is facing competition from subsidized firms in Thailand and China that pay lower wages. “For us to stay in American Samoa, this is very critical,” said Andrew Choe, StarKist’s president and chief executive officer. “This credit does help us to stay competitive.” The American Samoa provision is a rounding error in the U.S. shelf-stable seafood market and the tax bill, but it is an important priority for StarKist and American Samoa’s nonvoting representative, Aumua Amata Radewagen. Ms. Amata, a Republican, asked Ways and Means Committee Chairman Kevin Brady (R., Texas), to include the credit in his tax bill. He did. A spokeswoman for Mr. Brady said this provision and others for Puerto Rico and the U.S. Virgin Islands “recognize the unique economic circumstances” of the territories. This may also be the moment Bob Forrester has been waiting for. He’s president and chief executive officer of the Newman’s Own Foundation, which owns the food company specializing in salad dressing, pasta sauce, popcorn, salsa and other products. When its founder, actor Paul Newman, many banks. In 2015, several large U.S. and European banks agreed to multibillion-dollar settlements with U.S. regulators and pleaded guilty to criminal charges filed by U.S. authorities over alleged collusion among currency traders. Bank of New York Mellon Corp. agreed in 2015 to pay $714 million to resolve allegations it defrauded pension funds and other clients by overcharging them on currency transactions. State Street Corp. agreed in 2016 to pay $530 million to settle similar allegations. Both banks admitted giving some clients far worse pricing on currency transactions than the banks implied the clients would get. The Journal reported in October that the U.S. Attorney’s Office for the Northern District One employee warned that Wells Fargo could become known as a ‘bucket shop.’ of California is investigating the Restaurant Brands currency trade and has subpoenaed information from Wells Fargo. Potential issues related to that trade also are being examined by the Federal Reserve, the Journal reported. Examiners from the Office of the Comptroller of the Currency are auditing Wells Fargo’s foreign-exchange business, according to employees at the bank. A Wells Fargo executive says the audit is “normal course of business.” Current and former bank employees say its pricing practices were rooted in a culture and compensation system that looked to maximize revenue. Bonuses were defined as 10% of revenues exceeding revenue targets. If a banker’s revenue target was $5 million and the person brought in $6 million, he or she would earn a $100,000 bonus, or 10% of the additional $1 million in revenue. Bankers typi- cally received such bonuses twice a year in cash, rather than stock, as part of a signed contract, they added. It’s rare among foreign-exchange groups in other banks to have so-called defined-bonus plans focused on individual earnings, according to people in the industry. After Wells Fargo moved the foreign-exchange business into its investment bank earlier this year, managers began telling employees that bonuses would become “discretionary” by the end of 2017. Under this more typical arrangement, management would decide employee bonuses, and bankers wouldn’t know exactly how much they would receive. It would be based on a variety of factors, not just revenue. Wells Fargo has 18 foreignexchange sales and trading offices, including in New York, San Francisco, Charlotte, N.C., London and Hong Kong. A few hundred people work in the group world-wide. Current and former employees say Wells Fargo’s foreignexchange customers are largely midsize businesses that don’t tend to trade in large volumes. As a result, those clients don’t have the same insight into the market as larger firms that are more-active traders. Some Wells Fargo clients have complained to the bank. In November 2016, Ecolab Inc., a water, hygiene and energy company based in St. Paul, Minn., bought and sold currency in a so-called swap arranged by the bank, according to people familiar with the deal. These people say Wells Fargo collected 1% on one part of the $100 million deal. After Ecolab compared the full trade, including fees, to overall market prices, the company contested the bank’s fee. Wells Fargo refunded hundreds of thousands of dollars to Ecolab in December 2016, according to current and former employees. A spokeswoman for Ecolab confirmed the details of the trade and said it was the only fee issue Ecolab had with Wells Small Fry Foreign-exchange spot contracts as a percent of a bank’s total derivatives portfolio 21% 25% 22% 5.2% Source: Ofﬁce of the Comptroller of the Currency THE WALL STREET JOURNAL. Fargo. Fee issues arose for some Wells Fargo clients even when they had a pricing agreement. The bank agreed within the past 18 months to a specified rate with data-management firm Veritas Technologies LLC, according to bank employees. After making one trade on behalf of Veritas, Wells Fargo bankers told Veritas that the bank’s fee was 0.05 percentage point higher than the agreed rate, the employees say. Unusually high fees The result: The bank made an extra $50,000 on a $100 million trade, the employees say. Wells Fargo later made a refund to Veritas, according to people familiar with the matter. A Veritas spokeswoman declined to comment. Wells Fargo’s foreign-exchange business also charged unusually high fees for trades with different currency conversions, known as “Bswift” transactions, current and former employees say. “And if anybody did complain, it was an easy tap dance,” one former employee says. He says employees would say the pricing had been done automatically by the bank’s computer system so “there’s no accountability for the spread.” Wells Fargo sent an internal email Nov. 2 detailing new guidelines for Bswift transactions, according to a copy of the email reviewed by the Journal. JOHN GREIM/LIGHTROCKET/GETTY IMAGES ‘Time fluctuation’ A Wells Fargo bank branch in Manhattan. Employees say the bank overcharged hundreds of clients for foreign-currency trades. GETTY IMAGES/ISTOCKPHOTO Continued from Page One based solely on how much revenue they brought in, say more than a dozen current or former Wells Fargo employees. No other big bank in the U.S. calculated bonuses of currency traders in such a defined and individual way. Wells Fargo said Monday that it began making changes to those compensation plans earlier this year. The bank also charged some of the highest trading fees around, according to current and former employees. For more than a decade, customers were sometimes charged anywhere from 1% to 4% on basic transactions such as converting euros to dollars and complicated trades like hedging. Those percentages can be at least two to eight times higher than the middle-market industry average of 0.15% to 0.5%, depending on the trade, customer and volume, according to foreign-exchange bankers throughout the industry. Wells Fargo disputes the descriptions of its foreign-exchange fees by current and former employees. The bank said Monday its fees in 2016 had a weighted average of 0.09 percentage point across all transaction sizes. Clients served by its middle-market banking team were charged a weighted average of 0.18 percentage point, according to Wells Fargo. Some foreign-exchange bankers at Wells Fargo relied on the fact that customers often didn’t bother to double-check how much they were charged, fee levels weren’t straightforward, and complaints could be batted away, the current and former employees say. RAMSAY DE GIVE FOR THE WALL STREET JOURNAL WELLS In Pago Pago, left, a tuna plant may enjoy tax relief. Makers of craft beer, right, may also benefit. was alive, he donated the business profits himself, meeting the company’s pledge to give its earnings away. That’s continued since Mr. Newman’s 2008 death. In 2016, according to its tax form, the foundation took in nearly $38 million, donated $27 million to various charities and added to its reserves. But Mr. Forrester has a looming tax problem. Foundations like his aren’t allowed to own operating businesses, and tax laws effectively would force divestment. Mr. Forrester says an IRS extension on enforcing that ban is scheduled to lapse in November 2018. “This has hung over our head for so long,” he said, de- scribing years of pleasant, constructive meetings with members of Congress and their staffs. “I’ve really come away really appreciative of the people who do this stuff, and scratching my head, also.” The foundation reported spending more than $2 million on lobbying in that time, according to records. The provision was sponsored by Rep. Dave Reichert (R., Wash.), who said he was “encouraged” by Mr. Newman’s vision for charitable businesses. It’s in the House and Senate tax bills. The House has already passed its bill. The Senate could vote this week and lawmakers are aiming to hash out differences by Christmas. Microbreweries are hoping for a win, too. In the Senate bill, brewers would pay $3.50 per barrel in tax for the first 60,000 barrels of beer produced, half of today’s rate. They would pay $16 per barrel—down from $18—on up to 6 million barrels. Score one for craft brewing—and against critics who say cheaper beer would lead to more car crashes and violence. Also in the Senate bill, Florida growers affected by citrus greening, an incurable bacterial disease devastating the region, would get to deduct the cost of planting new trees immediately instead of spreading that deduction over time, ac- The guidelines include specific handling and pricing procedures for those trades. The operation also charged high fees to other parts of Wells Fargo. Wells Fargo Rail, which leases locomotives and railcars, and the bank’s corporate-trust division are often charged 1% to 1.5% on currency transactions, according to current and former employees. The bank’s foreign-exchange management often celebrated big trades and the money they made for the bank, the current and former employees say. Sara Wardell-Smith, who led the foreign-exchange group, emailed the group to hail big trades, naming clients and spelling out revenue generated. The employees say managers used to encourage employees to ring a brass bell in the San Francisco office when the bank made a lot of money on a trade. In mid-October, the bank announced that Ms. WardellSmith would lead its financial institutions group in the Americas region, according to a memo reviewed by the Journal and confirmed by a bank spokeswoman. Current employees say the move was viewed within Wells Fargo as a demotion, coming just months after Ms. WardellSmith had been promoted to colead the bank’s division focusing on trading of rates, currencies and commodities. She didn’t respond to requests for comment. The other co-leader, Ben Bonner, now leads that group on his own and is overseeing foreign-exchange trading, a bank spokeswoman confirms. Mr. Bonner has been working with other executives to fix the problems in the currency business, according to several current employees. Last month, the bank sent a memo to foreign-exchange employees that instructs them not to create informal or oral pricing agreements. The memo, reviewed by the Journal, also said employees are “responsible for ensuring customers are not misled regarding” pricing. Current and former employees say some Wells Fargo employees expressed concerns about pricing practices to top executives before the bank’s internal cleanup efforts began earlier this year. Some employees say they were reluctant to press for sweeping changes, citing what they saw happen to one manager in the foreign-exchange operation about a decade ago. During a meeting of foreignexchange managers in the mid-2000s, Cathy Witt said it wasn’t right to celebrate high fees by ringing a bell, people familiar with the situation say. Ms. Witt, an employee in the bank’s Chicago foreign-exchange group, warned that Wells Fargo could become known as a “bucket shop,” a derisive term for a disreputable finance firm, some of the people say. A few weeks later, Ms. Witt was summoned to a meeting in St. Louis, told that her comments had been offensive and demoted on the spot, according to people familiar with the matter. She also was told to apologize to other managers for her unprofessional behavior, the people say. She later left the bank. cording to the office of the provision’s sponsor, Sen. Bill Nelson (D., Fla.). The $3,000 cap on what fire departments can set aside for volunteer firefighters in socalled length of service awards would rise to $6,000. Those programs, used by about 20% of volunteer firefighters, have hit the cap in three states, according to the National Volunteer Fire Council. The chief sponsor of the stand-alone Senate bill is swing-voting Susan Collins (R., Maine). Some provisions are tax increases, including one affecting bike commuters. Cyclists can now get up to $20 a month in commuting costs reimbursed from employers without it counting as taxable income. The Senate bill would end that benefit through 2025 while preserving similar breaks for parking and mass transit costs. It’s a “huge missed opportunity to have a real conversation,” said Ken McLeod, policy director at the League of American Bicyclists. But the provision’s size—at most $50 million over a decade—might be an advantage in preserving it in final negotiations. “In terms of what I think people will probably decide their votes on,” Mr. McLeod said, “this is probably not going to be the issue.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | A8A NY * * GREATER NEW YORK Comptroller Says City Bus System Needs Upgrades Former graffiti center 5Pointz in Queens, shown in 2013. Artists sued a developer after he whitewashed and demolished the buildings. Graffiti Case Sparks Buzz The destruction of a Queens street-art destination could be a legal watershed BY THOMAS MACMILLAN The outcome of a federal civil lawsuit in Brooklyn concerning the destruction of former graffiti-art hub 5Pointz could hold an important lesson for artists and landlords: Make your agreements in writing. Earlier his month, jurors issued an advisory ruling in favor of the plaintiffs—21 artists who sued real-estate developer Jerry Wolkoff after he whitewashed and demolished his warehouses in Long Island City, Queens. Until it came down in 2014, the complex, known as 5Pointz, had stood for more than a decade as an open-air museum of graffiti art by some of the medium’s most revered practitioners. The Brooklyn federal court judge presiding over the case will now decide whether the landlord is liable and the artists are entitled to damages. That decision is expected in December or January. The plaintiffs haven’t asked for a specific amount, but could win several million dollars in damages. But even before the case is resolved, legal observers are marking the jury ruling as a possible watershed moment in the interpretation of a seldomused federal law called the Visual Artists Rights Act. The law protects artworks—even on private property—if they have recognized merit, which is up for interpretation. “I would clearly characterize it as a landmark ruling,” said Barry Werbin, who heads the intellectual-property practice at the law firm Herrick Feinstein. “It’s a major shot across the bow for developers and property owners.” The ruling underscores the need for written agreements regarding artwork, said Mr. Werbin and other legal experts. When an artist and a landlord agree on the installation of artwork on private property, they should write up details about whether the art can be altered or destroyed. The jury decision represents another validation for an art form that has been steadily gaining legitimacy. Once a symbol of a gritty New York City, graffiti art—also known as aerosol art or street art— now has mainstream cachet. Artists such as Banksy have earned global recognition and street art is regularly featured by high-fashion brands and others looking to claim a contemporary urban aesthetic. For years, graffiti artists working with Mr. Wolkoff’s permission decorated 5Pointz with murals. The area became a destination for artists world-wide. ‘It’s a major shot across the bow for developers and property owners.’ When Mr. Wolkoff decided to demolish the building to make way for a $400 million residential and retail development, artists filed for an injunction to block the move. After the legal effort failed, Mr. Wolkoff had the buildings whitewashed in the middle of the night. His attorney declined to comment. In court filings, Mr. Wolkoff argued that the artists always knew the buildings would be demolished, that they themselves sometimes painted over their work, and that the murals had no value. In the trial that resulted this year, 21 artists set out to prove that 49 murals were worthy of protection under federal law. The case marks the first time that a jury has considered the Visual Artists Rights Act since it was passed in 1990. “One of the big issues in this case is what does it mean for a work to be ‘of recognized stature,’ ” said Kate Lucas, an attorney specializing in art law at Grossman LLP. Art expert Renee Vara sought to establish that stature during the trial by showing that the art was esteemed by appraisers, other artists, and by the public in general. The works have been valued at $50,000 to $90,000 each. The decision, which won’t affect illegal graffiti, may give artists extra leverage when negotiating a commission for a mural or sculpture on private property, Mr. Werbin said. “I feel our art form is getting more recognition from the legal and academic world,” lead plaintiff, artist and 5Pointz curator Jonathan Cohen, aka Meres One, wrote in an email. “It is a new step in the right direction for an entire movement.” New York City’s comptroller has called on state and city officials to tackle what he describes as a growing crisis in the city’s bus system, which carries more than two million riders daily. In a report published Monday, Comptroller Scott Stringer warned that “routes are often slow, unreliable, long, meandering, confusing, congested and poorly connected.” As a result, between 2008 and 2016 annual bus ridership fell by 100 million passenger trips, according to the report. Last year, the average speed of a city bus throughout New York was 7.4 miles an hour, the slowest of major bus systems nationwide, the report found. In Manhattan, city bus speeds averaged 5.5 miles an hour. Mr. Stringer blamed the Metropolitan Transportation Authority, which runs the buses, for failing to adapt routes to the city’s shifting residential populations and job markets. He added that the MTA is failing to renew its fleet fast enough, noting that 22% of buses are more than 12 years old. Mr. Stringer also said the city has failed to provide enough bus lanes. There are only 104 miles of bus lanes out of a city roadway covering 6,000 miles, the report found. He also criticized the city for failing to enforce bus-lane rules and for being too slow in rolling out technology that allows buses to control traffic signals. Just five of the city’s 326 bus routes use transit signal priority equipment, according to the report. Mr. Stringer urged the MTA, which is controlled by the state, and the city to take a fresh look at the bus system and to expedite improvements. An MTA official said Monday that the city has the most power to improve bus performance. The official emphasized that congestion pricing, which can only be instituted by state legislators, is the best way to solve the crisis. Mayor Bill de Blasio opposes congestion pricing, which would charge vehicles to enter Manhattan’s central business district. New York Gov. Andrew Cuomo this year expressed interest in such a plan. MTA Chairman Joe Lhota, an appointee of Mr. Cuomo’s, said Monday: “Traffic congestion and New York City’s consistent inability to manage traffic flow and enforce existing traffic laws on its streets is killing our bus service and hurting bus riders.” Scott Gastel, a spokesman for the city Department of Transportation, called Mr. Lhota’s comments “inappropriate and misleading.” He said the city “has used every tool at its disposal to improve bus service, including increased NYPD traffic enforcement, an aggressive bus-lane camera-enforcement program, and a new five-point congestion plan.” BYRON SMITH FOR THE WALL STREET JOURNAL XINHUA/ZUMA PRESS BY PAUL BERGER Battle Heats Up Over Smartphone Access Amid an intensifying “arms race” between law enforcement and smartphone manufacturers, Manhattan District Attorney Cy Vance is calling for legislation that would grant police a backdoor into mobile devices. In a report issued this month, Mr. Vance said new laws are needed to force tech companies such as Apple and Google to modify their software so law enforcement can unlock smartphones seized during criminal investigations. “Traditional investigative techniques—searches of targets’ homes, physical surveillance, wiretaps on telephones— often fall short when it comes to gathering enough evidence to solve and prosecute today’s criminal activity,” the report states. “Unfortunately, much of today’s evidence exists in a space that, prior to 2014, was largely unheard-of: Warrantproof smartphones that have been designed to keep law enforcement out.” Civil liberties and internetadvocacy groups have condemned efforts to weaken smartphone encryption, arguing that they threaten personal privacy, as well as U.S. national security and global competitiveness. The only recent federal legislative effort to give police a way into smartphones—a bill introduced by U.S. Sens. Richard Burr (R., N.C.) and Dianne Feinstein (D., Calif.) in the wake of the 2015 shooting in San Bernardino, Calif., that left 14 dead—foundered in 2016 amid widespread criticism ISTOCK BY THOMAS MACMILLAN The number of mobile devices seized in criminal probes is growing. from the tech community. While Donald Trump, as a presidential candidate, criticized Apple after the San Bernardino shooting, his Republican White House has yet to take any steps to try to weaken smartphone encryption. Meanwhile, the number of mobile devices seized in criminal investigations continues to grow. Mr. Vance’s report states that in Manhattan the district attorney’s office recovered 1,200 devices in the first 10 months of 2017, of which 700 were locked. Law enforcement successfully unlocked about 40% of those 700 phones, a spokeswoman for Mr. Vance’s office said. “While workarounds such as ‘lawful hacking’ have been used by law enforcement with some success, they...become obsolete when new devices and operating systems are released, creating an endless catand-mouse system that strains resources and undermines public safety,” the report said. Mr. Vance has lobbied for legislation in the past, including testifying before a U.S. Senate committee in 2015. This month’s report is the third white paper released by his office since Apple’s 2014 decision to make locked devices inaccessible without a passcode, a move matched by Google. The result has been an es- calating battle between law enforcement seeking to crack mobile devices and tech companies working to keep them secure, the report states. Investigators increasingly rely on workarounds from thirdparty “lawful hacking” contractors, which the Manhattan prosecutors office said have cost hundreds of thousands of dollars. Such spending is available only to well-funded agencies, the report states. “Crime victims thus have unequal access to justice, depending on the resources of the city or county in which they live,” the report says. Mr. Vance's report cites several cases in which smartphone access was a key part of successful prosecutions, uncovering videos corroborating child abuse; photos and text messages linking murder suspects and victims; and messages establishing intent in a sexual-assault case. Google and Apple declined to comment. Apple Chief Executive Tim Cook has denounced efforts to create a backdoor. “There’s no such thing as a backdoor that is just for law enforcement,” said Donna Lieberman, head of the New York Civil Liberties Union. Creating a way into cellphones means less-well-intentioned people would be able to steal data and violate privacy, she said. The NYCLU is lobbying for a state law, the New York State Electronic Communications Privacy Act, which would make it more difficult for police to access mobile devices. The bill has passed the committee level and supporters hope to see it enacted in the next legislative session. In Manhattan, city bus speeds averaged 5.5 miles an hour, according to a report by City Comptroller Scott Stringer’s office. Girlfriend’s ’93 Killing Nets 20 Years to Life BY THOMAS MACMILLAN More than two decades after he killed his girlfriend in front of their son and fled the U.S., a former Bronx man was sentenced Monday to 20 years to life in prison for the crime. After a three-week jury trial in Bronx Supreme Court, Michael Stewart, 58 years old, was convicted of second-degree murder on Oct. 19 for killing Sophia Blair with a .380-caliber pistol in 1993. Mr. Stewart shot Ms. Blair once in the head while their 2year-old son lay in a crib nearby, and then fled the Creston Avenue apartment, authorities said. He then boarded a flight to Jamaica. When he landed, Mr. Stewart called Ms. Blair’s father and told him that his 22-year-old daughter was dead, prosecutors said. Meanwhile, the couple’s toddler son, Jamal Blair, was left unattended for 10 hours in the apartment until police discovered Ms. Blair’s body, authorities said. Although police found Mr. Stewart’s fingerprints at the scene, he eluded capture and the case went cold. It is unknown when Mr. Stewart returned to the U.S. Police used his fingerprints to connect him to the 1993 killing after he was arrested in December 2016 in Connecticut for identity theft, officials said. At that time, he was living in Hartford under the alias of Kenneth Hall, authorities said. “The defendant may have eluded justice for more than two decades but the prosecutors in my office and dedicated NYPD detectives never forgot about this horrific case,” Bronx District Attorney Darcel D. Clark said. Mr. Stewart’s attorney didn’t respond to request for comment. In 2011, Jamal Blair pleaded guilty to manslaughter in the 2009 shooting death of 92year-old Sadie Mitchell in the Bronx. Ms. Mitchell was killed in her home when gunfire erupted during a gang dispute outside. While serving a 14-year sentence for that crime, Mr. Blair was indicted in 2016 in federal court on racketeering and conspiracy charges as part of the largest-ever gang bust in New York City. He pleaded guilty and was sentenced this year to no additional time. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8B | Tuesday, November 28, 2017 NY THE WALL STREET JOURNAL. * * GREATER NEW YORK Malloy Will Loom Large in 2018 Election Connecticut’s unpopular governor isn’t running for re-election but GOP will attack his record A Party Leader Says Battle Will Be Tough Senate Minority Leader Len Fasano, left, and fellow GOP Sen. Art Linares at the Capitol in January. GREATER NEW YORK WATCH LONG ISLAND CONNECTICUT Slain Student’s Family Attorney General Settles With County Won’t Run Again The family of a Hofstra University student killed by police while being used as a human shield in a 2013 off-campus shooting has settled a pair of lawsuits for $4.5 million. Andrea Rebello, 21 years old, of Tarrytown, N.Y., was fatally shot by an officer during a botched home invasion that also killed the gunman. Her family accused the department of negligence and said the officer acted “recklessly and unnecessarily” when he fatally shot Ms. Rebello and her hostage-taker. The family said officers weren’t properly supervised and trained on how to handle hostage cases. The Nassau County Legislature voted Monday to approve the payouts. —Associated Press Connecticut Attorney General George Jepsen announced Monday he won’t seek a third term in 2018, saying he wants to pursue different challenges but not a run for governor next year. The Democrat acknowledged he doesn’t know what his future holds. “Next year I’ll be 64. At 64, I’m still young enough to write a new and different chapter on life and look for other opportunities,” Mr. Jepsen said. Various Democrats and Republicans are expected to run for attorney general now that there is an open seat. Democratic Rep. William Tong, of Stamford, the House chairman of the Legislature’s Judiciary Committee, said he will announce his plans on Tuesday. —Associated Press gish and its finances have shown little improvement. Connecticut still hasn’t recovered all the jobs it lost during the economic downturn. Major employers such as General Electric Co. and Aetna Inc. have opted to leave for Boston and New York, respectively. Mr. Malloy signed two income-tax increases that failed to stabilize the state’s finances. Connecticut’s next governor will be facing a twoyear budget deficit of $4.47 billion, according to the state’s nonpartisan Office of Fiscal Analysis. “I am certain Republicans will keep the image of Dan Malloy at the top of the ballot even though he is not running,” said Gary Rose, chairman of the Department of Government, Politics and Global Studies at Sacred Heart University. To counter voters’ unfavorable view of Mr. Malloy, he said the Democrats will try to capitalize on Republican President Donald Trump’s unpopularity. A Wall Street Journal/ NBC News poll from October showed Mr. Trump with an approval rating of 38%. In Farmington, where the GOP lost control of the town council for the first time since the early 1990s, Brian Noe, chairman of the local Democratic town committee, said the party’s victory was driven by local issues such as a rejected high-school renovation project rather than anti-Trump sentiment. He noted, however, that national issues and antiTrump voters could still hurt the state GOP in 2018. “There are very few momentum arrows flashing green for them,” Mr. Noe said. Republicans did have success in some municipal elections. The mayor of New Britain, Erin Stewart, a Republican, was elected to a third term in a city where Democrats outnumber Republicans by about five to one. “There is not a single soul in this state that doesn’t think that change is needed” in Connecticut, Ms. Stewart said. Ms. Stewart, who is weighing running for governor in 2018, says statewide concerns about the economy and Connecticut’s fiscal health will outweigh any national backlash to Mr. Trump. J.R. Romano, the state Republican chairman, said the most well-known Democratic politicians such as Lt. Gov. Nancy Wyman opted not to run for governor because they won’t be able to avoid being tied to Mr. Malloy’s legacy. “They’ve seen the polling and they know a victory for a Democrat will be very difficult in the climate we are in,” Mr. Romano said. State Sen. Len Fasano, the top-ranking Republican in the Senate, said it would be a challenge for the GOP to gain control of the Legislature in a state where about 869,800 Democrats and 492,200 Republicans are registered to vote. “We are still a blue state,” Mr. Fasano said. “We definitely have an uphill battle. The question is can we get our message out?” Gov. Dannel Malloy had the advantage of large Democratic majorities in the state Legislature in the early part of his tenure, enabling the passage of a host of progressive laws, including the legalization of medical marijuana, ending the death penalty and raising the minimum wage to $10.10 an hour. Republicans, however, have eroded those advantages in the Legislature. The state Senate is equally divided, and Democrats hold only a seven-member edge in the House. The close margins in the state Legislature had a big impact in this year’s state budget deliberations. Democratic lawmakers failed to cobble together enough votes to pass a budget for the first time during Mr. Malloy’s twoterm tenure. This enabled Republicans to pass a budget that Mr. Malloy vetoed. Republican and Democratic leaders eventually negotiated a bipartisan budget largely without the active participation of the governor. ‘Evan Hansen’ Changes Lead and Sets New Mark BY CHARLES PASSY For the Broadway musical “Dear Evan Hansen,” there is life beyond Ben Platt, the actor who originated the title role. The show, which took home the Tony Award for best musical last season, set a box-office record for the week ended this past Sunday, bringing in $1.95 million according to the Broadway League, a trade group. That eclipses the musical’s previous mark of $1.73 million in the first week of July. The record came right after Mr. Platt, who earned a Tony for his performance, left the show on Nov. 19 after a yearlong run. Noah Galvin, an actor who has appeared off-Broadway and on television, took over on Nov. 21. Shows often see a sales decline when a star departs. But “Dear Evan Hansen” likely benefited from the Thanksgiving-week Broadway boom. Biggest Hits Grosses from the top 10 shows over the past week, in millions Hamilton $ 3.45 2.65 Lion King 2.47 Hello, Dolly! Noah Galvin as ‘Evan Hansen’ took a curtain call Nov. 21. Wicked 2.40 Springsteen On Broadway 2.39 Aladdin 2.00 Dear Evan Hansen 1.95 Come From Away 1.53 School of Rock 1.51 Book of Mormon 1.50 Source: Broadway League THE WALL STREET JOURNAL. ®ROBERTOCOIN state Republican party. Nick Balletto, chairman of the state Democratic Party, said political newcomers energized by anti-Trump sentiment propelled the party’s strong showing, particularly in the suburbs where Republicans tend to dominate. “We stopped short any guarantees that Republicans thought they had” going into 2018, Mr. Balletto said. “They said the governor will play out badly in this last election and that didn’t happen.” In nearby New Jersey, unpopular Gov. Chris Christie weighed on the Republican candidate, his longtime Lt. Gov. Kim Guadagno, who was soundly defeated on Nov. 7 by Democratic rival Phil Murphy. Mr. Malloy entered office in 2011 while Connecticut’s economy was in the throes of the recession and in the midst of a fiscal crisis. Heading into 2018, the state’s economic recovery remains slug- BRUCE GLIKAS/FILMMAGIC After losing ground in this year’s elections, Connecticut Republicans are taking aim at a Democrat who won’t be on the ballot in 2018: Gov. Dannel Malloy. Republicans are focused on retaking the governor’s office in 2018, ending eight years of Democratic control, while gunning to take the reins of the Connecticut Legislature in a traditionally blue state. This month’s municipalelection results, however, weren’t encouraging. The GOP’s control of the state’s 169 municipalities fell from 97 to 82, a decline Democrats attribute partly to a wave of new grass-roots activists charged up by opposition to the Trump administration. State Republicans have acknowledged the party grew complacent in some towns and failed to energize its base. But Republicans said that won’t be the case in 2018 as they seek to replace Mr. Malloy, one of the most unpopular governors in the U.S., who has declined to run for a third term. His approval rating of 23% was the second worse for any U.S. governor, according to a poll by Morning Consult. “Dan Malloy has done a magnificent job of making him and his party the sole, real responsible agents of Connecticut’s eight years of economic misery,” said Chris Healy, former chairman of the MICHELLE MCLOUGHLIN FOR THE WALL STREET JOURNAL BY JOSEPH DE AVILA A new way, a better way to buy a wedding suit. ROBERTO COIN BOUTIQUE Westfield World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 Archivio ‘71 SYMPHONY COLLECTION | robertocoin.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. LIFE&ARTS Tuesday, November 28, 2017 | A9 FOOD The Cubicle Gourmet When whipping up lunch in the office kitchen, avoid fish or pungent spices and don’t hog the microwave BY ALINA DIZIK The Office Cook’s Starter Kit Want to get cooking at work? A few must-haves for your desk drawer: salad scissors—help chop veggies on the spot aluminum foil—creates an easy-to-clean cooking surface for the toaster oven silicone spatula—perfect for mixing ingredients, especially eggs oven-safe storage container —versatile for microwave cooking and leftovers reusable spork—makes it easy to eat heartier meals with sauces folding paring knife—keeps the blade from being exposed between meals Michelle Scholtes, left, cooks a lunch of quinoa salad and a fried egg, top, in the office kitchen using a few utensils, above, that she keeps at work. garlic, canned chickpeas and other non-perishables at her desk for an impromptu winter stew. She uses lunch as an excuse to step away from her email and “stimulate some good thoughts,” she says. Quick and easy cleanup is key for Desiree Tizon, who keeps coconut oil, all-purpose seasoning and aluminum foil at her desk. Ms. Tizon often brings a sealed plastic sandwich bag of marinated tofu to the Weston, Fla., software firm where she works. She broils the tofu in the office’s convection oven to make it crunchy, and uses the oven’s bottom tray to cook asparagus or a sweet potato, which she pops in just before the lunch rush. Earlier in the day, she might use the same oven to make a breakfast frittata of egg whites and vegetables. In recent years, Helen of Troy’s Oxo brand has introduced tiny sauce bottles, a microwave omelet maker and silicone baking cups for making mini frittatas. Many of the products are small enough to stash in a tote to customize meals on the go, says Karen Schnelwar, Oxo’s vice president of global brand strategy and marketing. A handheld spiralizer, launched in 2015, cuts vegetables—including zuc- chini—into noodle shapes and can fit in a desk drawer. “We see a lot of people ‘zoodling’ in the middle of the day,” Ms. Schnelwar says. Corporate kitchens are taking over larger, windowed spaces. Some are equipped with appliances and smaller kitchen gadgets such as waffle makers or panini grills, which appeal to office cooks, says Barbara Savage, a Miami-based senior associate at Stantec, a design consultancy. The option to cook in the middle of the day encourages a fun company culture where people can gather for lunchtime guacamole competitions, Ms. Savage says. Building codes prevent businesses from installing stoves, she says, but “you can make a batch of cookies in a toaster.” Cooking has become a team effort in Monica Gupta’s office in Toronto. Several times a month, Ms. Gupta, a 47-year-old social-services caseworker, brings in salad ingredients. She combines them with coworkers’ offerings into an ad hoc salad. Before lunch “we are all sitting around cutting [cucumbers] or the tomatoes are being diced,” Ms. Gupta says. Office chefs recommend easing into the process. Ms. Scholtes, who recently taught a “no sad desk lunch” course at a nearby cooking school, tries to start her lunch prep at noon sharp. She is careful to work swiftly and not hog the microwave. “It took me about a year to feel comfortable with my co-workers,” she says. TELEVISION THE SECRET EDUCATIONAL VALUE OF ‘DRUNK HISTORY’ COMEDY CENTRAL BY JOHN JURGENSEN ‘Drunk History’ host Derek Waters, left, hears about Teddy Roosevelt from a tipsy Rich Fulcher, right. “DRUNK HISTORY” is an educational TV series with a woozy teaching strategy. In each segment of the Comedy Central show, a narrator (usually a comedian or actor) gets drunk on camera while recounting a chapter in history. Their version of the tale fuels a full-blown re-enactment, filmed with actors in period costumes mouthing the words of the inebriated oral historian—giggles, tangents, slurred speech and all. The first “Drunk History” holiday special, airing Tuesday, includes anecdotes about Charles Dickens, Teddy Roosevelt and George Washington. The general (played by Rob Corddry) belches and blurts “Let’s do this!” (according to soused narrator Craig Anstett) during the crossing of the Delaware River. The show, co-created by 38year-old Derek Waters, started as a web series 10 years ago and begins its fifth season on Comedy Central in January. Re-enactments have featured a who’s who of Hollywood talent, including Will Ferrell and Zooey Deschanel as Abraham and Mary Todd Lincoln, Jack Black as Ben Franklin (and, separately as Elvis Presley meeting Bob Odenkirk’s Richard Nixon) and Don Cheadle as Frederick Douglass. Sometimes it’s an A-lister getting blotto. Last season, Lin-Manuel Miranda, creator and star of the smash musical about Alexander Hamilton, knocked back whiskeys and told stories of the founding father. Though its live TV audience is relatively small—the Hamilton episode was a hit for the series, with about 700,000 viewers—“Drunk History” has legs, emerging as one of Comedy Central’s longer-running series. And its rotating celebrity cast brings cachet and fresh star power to each episode. Mr. Waters, whose jobs on the show include producer, writer and director, also appears in some reenactments. But his most imporPlease see TELEVISION page A10 STEPHEN VOSS FOR THE WALL STREET JOURNAL FOR MICHELLE SCHOLTES, the secret to putting together a gourmet office lunch is the cooking toolkit she keeps at work. Ms. Scholtes, who is 30 years old, relies on mini salad tongs, a small cutting board, a paring knife, salt and pepper shakers, a miniature chef’s knife and two titanium sporks. She uses them in the kitchen of the non-profit in Washington where she works. Her favorite utensil is a silicone spatula with which she caramelizes onions and grills peaches for a savory goat cheese salad, she says. Cubicle dwellers are stocking everything from chef’s knives to avocado slicers at their desks and bringing in ready-to-cook ingredients like those in DIY meal kits. The result is more time spent stirring—and socializing—in the office kitchen. The trend is taking off among young workers who are foodies but want to save money by not going out, says Diane Stegmeier, a consultant who helps companies manage change in the workplace. “We are seeing an emphasis on not just eating healthy, but also eating with others,” she says. Gabriella Casimir, 25, a community manager for a co-working firm in New York City, sticks to just a few ingredients that can stay fresh in the office pantry. As far as ingredients, “I try to keep it minimal,” she says. One of her favorite lunches is summer rolls, an eggroll-type concoction that doesn’t require frying. To create it, Ms. Casimir uses warm water to transform crunchy rice paper into a soft shell. She stuffs it mostly with vegetables and “rolls into a burrito.” She uses the company blender to create a mango peanut dipping sauce or a creamy cilantro aioli. While there are few hard-and-fast rules for cooking in the office, one no-no is fish, says Francesca Cwynar, a 28-yearold public-relations manager. “Even cold tuna smells pretty extra,” she says. To keep the openplan office where she works from smelling like weekend brunch, Ms. Cwynar swaps morsels of unsmoked pancetta into recipes that call for bacon, which can be too strong for the office. Microwaving certain vegetables is off-limits too, because some can smell as bad as boiled eggs. “There’s nothing worse than someone who has microwaved a whole pack of Brussels sprouts,” says Ms. Scholtes, who adds that she avoids strong spices including cumin because the aroma can linger the entire day. That said, people seem to like the aroma of melted cheese and tomato sauce. Ms. Cwynar keeps 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. A10 | Tuesday, November 28, 2017 LIFE & ARTS TELEVISION Continued from page A9 tant role is that of listener, coach and drinking partner to narrators who can be passionate, teary and sometimes irritated. Although the show, co-created by Jeremy Konner, revolves around alcohol-fueled sloppiness, it is painstaking to produce. It took 63 weeks to create season 5, Mr. Waters says. With typically three historical segments per episode, he oversaw 42 drinking sessions with narrators. Each session lasts up to eight hours, with a medic on hand, along with other safety protocols. Footage of these binges get edited down into roughly eight-minute segments. Those are used to create scripts for the actors’ re-enactments, which are typically shot in one day. “It’s ridiculousness taken seriously,” Mr. Waters says. “I secretly want people to learn from this show.” Below, edited excerpts from an interview. What stories were new to you in the coming season? The constant goal is to find stories that make you say, “How have I not been taught this?” Like the Birmingham children’s march [in 1963]. Martin Luther King was getting arrested and wanted other people to get arrested to make a statement. Men were saying, “We can’t. We have to provide for our families.” So kids and teenagers decided to march. Not hilarious, but it’s a great story. Rewriting History Funnier when you have child actors mouthing the words of a drunk adult. One hundred percent. I’m not trying to make the show a drama. Is there a historical chapter you chose because it had been overlooked? The sit-ins in the ’70s for Section 504, the disability act. That’s how we got Braille and wheelchair ramps. These things actually haven’t been around that long. So why did it take so long and what can we learn from it? I’m not trying to change the world, just find stories that make you, as a human being, say, “We can do better.” What’s your strategy for wrangling drunk people for a shoot that lasts eight hours? The first two hours is going to be them trying to be funny. Once that’s out of their system, they’re more comfortable with me and the camera. I don’t try to bring out the mistakes in people. I want people to be passionate to tell the story. I know it’s going to take me three hours until I feel like, here we go. If something keeps getting repeated, I know the drinking should slow down. It’s a very strange job, but I’ve learned a good amount about how alcohol affects people and making sure they’re safe. It’s a very cool position I’m in, where human beings trust me to shoot them in an COMEDY CENTRAL (2) The Show: ‘Drunk History’ The Network: Holiday special airs Tuesday at 10 p.m. ET on Comedy Central. The Plot: Celebrity actors re-enact historical stories as told by inebriated narrators. The Origin: Funny or Die web-show-turned-cable-series entering its fifth season. The Audience: Cable’s No. 2 original program in its time period among viewers ages 18-49 (behind USA’s ‘Chrisley Knows Best’). Why It’s Working: A rotating celebrity cast, plus the contrast between historical figures and drunken oral history. Ken Marino, above center, plays Teddy Roosevelt in the ‘Drunk History’ holiday special. Lin-Manuel Miranda told tales of Alexander Hamilton in an episode last season. altered state. I’m never going to make someone look bad. As part of your contract for the show, you receive therapy sessions. Why? When the show first started, I was getting very sad about how people yelled at me when they were drunk. I’d get apology emails the following day and I just started feeling bad about it. I don’t feel guilty now because it’s a job, and I don’t put people in a position they don’t want to be in. It’s nice that more people want to do the show now. What kind of things do you say to them to coach through a story over and over? Most of the time we film at their house and I say, “I promise you I won’t leave until we have the story.” At the end of the night they almost always say, “Wait, wait, we didn’t do that one part!” Yes, we did. Yes, we did. There’s a lot of directing and rewinding of the drunk brain. Sometimes you have to sit there and smile and let people run their course even if you don’t need those parts on camera. What do you drink on the job? I’ll have a drink with them and once they feel like they’re not ex- Weather 0s d Edmonton 30s V Vancouver C algary l Calgary 20s Seattle 50s Portland g Eugene Helena 50s Boise 30s City Salt lt Lake L Cit Ci y C Las Vega Vegas Loss A An l Angeles 70s Ph Phoenix T c Tucson 80s -0s 0s 10s A h g Anchorage 20s 10s 20s 70s 20s 30s 40s 40s 30s Ottawa oux FFalls ll Pierre Sioux es Moines Des Che h y Cheyenne t Montreal 30s 30s 40s A g t Augusta 40s T t Toronto Mpls./St.. Paul Pau 30s Reno San Diego Bismarckk 30s Sacramento an n Francisco San 70s 0s ip Winnipeg 50s Billings 60s <0 40s 30s 50s 10s 10s k Milwaukee Detroit Buffalo l Cl Cleve l d Cleveland Ch Chic Chicago 50s A ban Albany b t Boston rtford Hartford ew Y New Yorkk 40s 50s 60s 70s Ph hil d lphi Philadelphia 80s Pitts b gh Pittsburgh p d Indianapolis Springfield 90s h hi ington gton D.C. D C Washington D.C. 30s Kansas 50s C l d Colorado Ch Charles l t Charleston Cityy 100+ h d Richmond T p k C Topeka p Springs LLouis St.. 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Hi 55 79 59 77 60 38 48 60 71 47 60 54 50 50 62 Today Lo W 27 pc 64 pc 43 s 55 s 43 s 34 pc 40 r 44 pc 45 s 32 pc 50 pc 25 pc 41 r 21 pc 44 s Tomorrow Hi Lo W 51 36 s 80 62 pc 62 36 s 79 59 pc 51 32 pc 51 23 s 50 36 pc 61 38 s 61 50 c 46 27 pc 62 49 s 55 31 pc 50 41 pc 49 31 s 64 39 pc International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Today Hi Lo W 45 36 sh 56 47 sh 69 45 s 92 78 pc 47 19 s 45 32 sh 44 33 sh 72 56 s 85 74 s 43 32 s 42 28 pc Tomorrow Hi Lo W 45 34 sh 59 52 pc 70 48 s 93 78 c 36 20 pc 40 31 c 43 33 sh 81 61 pc 84 69 s 40 33 pc 38 28 sh City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Hi 44 42 82 79 57 88 62 73 45 58 90 86 72 42 28 93 48 78 78 54 87 48 68 85 78 85 58 57 48 40 41 Today Lo W 33 sh 37 r 67 pc 72 pc 47 r 74 t 46 s 55 pc 35 pc 33 c 78 pc 65 s 42 s 35 pc 20 sn 72 pc 32 sh 70 sh 55 pc 48 pc 78 s 24 pc 54 sh 76 pc 69 pc 73 s 51 pc 40 s 38 r 33 pc 34 c Tomorrow Hi Lo W 39 31 sh 40 29 sh 83 66 pc 79 71 pc 56 52 sh 88 76 t 62 46 s 79 58 s 43 31 pc 53 27 sh 89 79 c 94 70 s 73 42 s 44 35 sh 25 22 c 93 74 pc 42 33 sh 79 68 pc 77 57 s 61 47 r 85 76 pc 36 19 pc 58 47 r 86 77 pc 78 69 pc 85 71 pc 65 51 pc 43 29 s 48 40 r 37 32 c 39 29 sh 1 2 3 11 4 12 16 5 6 13 9 10 15 18 20 24 When did you start drinking? I didn’t start until I was about 25. Chris Farley [the “Saturday Night Live” star who died at age 33] is my hero, so that’s why I avoided any kind of drugs or alcohol. My grandfather always said, “Nothing good ever came of alcohol.” I got one thing that was good, this show. 26 27 28 32 34 36 38 50 55 57 41 46 49 51 52 53 54 56 58 60 4 Business bigwig 8 Series that had “Miami,” “NY” and “Cyber” spinoffs 11 New Red Sox manager Alex 13 Fixed at a particular level, as a price 61 62 21 King of France 22 Inventor Elias 23 Rusher changing course to avoid a defender? 31 Silver source 32 Natural gift 33 Burnett of CNN 34 Olympics logo quintet 36 Solution: Abbr. 42 Pass defender who’s perceptive? 45 Danish physicist 46 Jazz great Evans 47 Spotted cat 50 Taiwan setting 55 Unscrupulous ballcarrier? 57 Mischievous sort 58 Contemptuous smiles 15 Rural clucker 37 City on Utah Lake 16 First-string play caller? 38 “Bye!” 60 Yards needed for a first down 39 Simple animal 61 Boarding area 41 Rapper’s handful 62 Dull gray-brown color 19 Rock’s Ozzy 20 Contaminates 3 Seize 29 Honda compact 30 Criticize 5 Cruel brute 35 Make incomprehensible, in a way 37 KP job 8 Jackie of “Rush Hour” 39 “Watch out!” in Germany 9 Church offshoot 40 Sets off 10 Tattoo parlor supply 43 Standard & ___ (big financial services company) 12 Prettify 59 PLAYING THE FIELD | By Daniel Hamm Across 1 Breakfast sandwich ingredient 28 Bakery lure 6 Cpl.’s superior 44 45 2 Sets off 7 Taskmaster’s order 40 43 48 30 37 39 42 29 33 35 27 Member of the choir Down 1 Cavern sound 4 Chili bit 22 25 31 47 8 14 21 23 7 17 19 59 iPhone oracle Solve this puzzle online and discuss it at WSJ.com/Puzzles. s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 26 22 c 31 21 sf Atlanta 64 46 s 68 50 s Austin 78 51 pc 74 49 s Baltimore 60 40 s 62 32 s Boise 49 31 pc 45 29 s Boston 43 41 s 54 30 s Burlington 45 41 pc 44 23 pc Charlotte 64 36 s 69 38 s Chicago 57 32 pc 47 39 s Cleveland 62 43 s 47 35 s Dallas 77 53 s 69 49 pc Denver 44 31 sf 55 26 pc Detroit 60 38 s 46 35 s Honolulu 83 74 r 85 74 sh Houston 79 58 s 78 57 pc Indianapolis 62 41 s 54 41 pc Kansas City 58 40 pc 54 40 pc Las Vegas 65 44 s 66 45 pc Little Rock 70 44 s 69 48 sh Los Angeles 75 55 pc 75 53 pc Miami 81 72 t 82 73 t Milwaukee 55 32 sh 45 38 s Minneapolis 47 25 s 44 34 s Nashville 65 41 s 67 49 pc New Orleans 74 61 s 77 59 pc New York City 54 44 s 59 35 s Oklahoma City 69 44 pc 58 40 pc h Omaha 80s Did you get excited about history as a child in Baltimore? I didn’t like school at all. The only positive thing was my history teacher, Gil Stange. We’d say, “What’s wrong with the Orioles, Mr. Stange?” and he’d go off about how the problems with the Orioles also were the same problems with the time in history we were learning about. It always blew my mind. Some of that has to be an influence on me doing this show. The WSJ Daily Crossword | Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 30s ploited, I don’t have to drink anymore. If the story is not coming to life, it’s a lot easier to say, “Let’s have a shot,” instead of saying, “You need to drink more,” because then they feel like it isn’t going well. If the narrator wants to make me a martini or an old fashioned, I’ll have that. After that, I go to Bulleit bourbon. On the rocks. 13 Cat Chow brand 44 Spills secrets 14 Sound of the South 47 Solemn bio 48 Showed up 17 Game similar to horseshoes 49 “NFL Insiders” network 18 “Love Yourself” singer Justin 50 Popular tech news site 22 Singer Beck’s last name 51 Add to the payroll 23 Law school course 52 Uttered 24 Heep of fiction 53 Linen color 25 Start for car or cop 54 Related 56 Funder of some PBS shows 26 Elegant beauty Previous Puzzle’s Solution C A P O T E U T O P I A R E S I S T S P T O O MU S I R E N I S O D A T O G E N S A T E S E M O F R U E S T B E S A S L A I C L P L T R O A W M M E E F I F E R I P L E Y O A R AM E R A N I C E D MA S I N I P E D D E S E N W A D D I S S O N T O T I E R L D A I L B O S S A H O Y C A L A M B A E R A I N S U C L A T L R E A S T H I S I S I T S A N O H R A T S Y E A S T Y A S K For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Tuesday, November 28, 2017 | A11 LIFE & ARTS CULTURAL COMMENTARY | By Jim Fusilli Washington ON SATURDAY NIGHT, NPR Music will celebrate its 10th anniversary with a concert at the 9:30 Club here. All tickets to the show were sold without revealing who would be appearing, and thus far the artists’ names haven’t leaked. But paying fans know they can be assured the performers will reflect NPR Music’s catholic tastes and ability to attract star power. NPR Music is worth celebrating. A project of National Public Radio, it is committed to introducing the best in new music via offerings that include album premieres known as “First Listen”; artist interviews originating on NPR programs such as “Morning Edition” and “All Things Considered”; an array of music-themed shows from among its more than 990 member stations; features by staffers; and informative, entertaining podcasts. By webcasting concerts from venues as large as major arenas to as small as a desk at NPR’s offices here, NPR Music affirms the importance of live, spontaneous music in the modern mix. For its “Tiny Desk” series, NPR Music challenges its guests to do something different in a strippeddown setting. When I visited NPR in mid-October, Billy Corgan, best known for his work with the Smashing Pumpkins, was playing for the first time with a string quartet. In June, Chance the Rapper not only performed a Stevie Wonder song but read a poem he had written for the occasion. Recent “Tiny Desk” guests included jazz’s Nate Smith + Kinfolk, R&B’s Benjamin Booker and folk’s Ani DiFranco, who was accompanied by Ivan Neville and Jenny Scheinman. The Roots brought along seven horn players and singer Bilal. Randy Newman came alone. To visit www.nprmusic.org is to immerse oneself in the recent history and overstuffed present of the rock-and-pop world. While NPR Music’s idea of quality may differ NPR (3) Much to Cheer At NPR Music Clockwise from above: Bob Boilen; Chance the Rapper at a “Tiny Desk Concert” in June; The Roots featuring Bilal perform a “Tiny Desk Concert” last month. at times from that of its listeners, and there can be occasional championing of a questionable group or recording during some podcasts, this institutional version of the college-era friend who argued endlessly about favorite bands and albums inspires trust. There is little evidence of music-industry pressure or hype. Thus, in rock and pop there is no greater endorsement than to be presented to the public by NPR Music. Well before NPR Music was founded, popular music was part of the arts-and-culture coverage of the parent network and its affiliates, though many were committed to classical music or jazz. As a producer for “All Things Considered,” which featured album reviews and artist profiles, producer Bob Boilen heard from folks who wanted more: In the pre-Internet, pre-Shazam days, they clamored for the names of songs excerpted between news items. (Disclosure: Several years ago, I did a few reviews for “ATC” that Mr. Boilen produced.) He proposed a podcast to introduce new music to listeners; “All Songs Considered” launched in 2000. Its popularity, as well as NPR’s forays into presenting live concerts online, led to NPR Music, which launched in November 2007. From its beginning, NPR Music has had an admirable commitment to diversity in the music it covers, even at the risk of alienating some longtime listeners who had seemed to prefer guitar-based rock and folk by white artists. When listeners voted for their top 25 albums of 2008, no hip-hop, dance music or electronica made the list, thereby overlooking gems by Erykah Badu, Flying Lotus and Santogold, among others. Mr. Boilen recalls getting hate mail when “All Things Considered” featured hip-hop artists; nevertheless, NPR Music committed to rock and pop’s vast range. In 2013, listeners voted to their top 25 albums by soul-pop’s Janelle Monáe, hiphop’s Kanye West, retro-funk’s Daft Punk and electronica crooners James Blake and Rhye; two years later, Kendrick Lamar’s hip-hop masterpiece “To Pimp a Butterfly” came close to the survey’s top slot. During a mid-October conversation with Mr. Boilen; Anya Grundmann, NPR’s vice president of pro- gramming; and Jacob Ganz, an NPR Music senior editor, it was apparent that the project’s mission is to curate rather than dictate. Programming is the result of many voices. NPR Music’s 28 employees have a say in what’s presented, thus creating an egalitarian mix that reflects the in-house assumption that its listeners are curious, intelligent, far from easily threatened and clamoring for great music. The affiliated stations that favor rock and pop are invaluable resources close to regional scenes, giving NPR Music a wide and deep pool from which to draw. Its more democratic approach doesn’t nudge aside fans of any particular genre: What they love is well-represented—and so is everything else. “People like what they know, but they don’t know what they like,” said Mr. Boilen, addressing one of the complaints of modern music fans: There is too much good music to listen to; and it is all-but-impossible to find without a passionate, open-minded guide, which is precisely what NPR Music has become. Mr. Fusilli is the Journal’s rock and pop music critic. Email him at email@example.com and follow him on Twitter @wsjrock. Please join us in support of Rescue Paw Foundation for an evening of celebration and holiday shopping with Special Guest, Jill Rappaport and networking on behalf of our furry friends from ARF Bideawee New York State Retriever Rescue Bobbi & the Strays The Shelter Connection at The Town of North Hempstead Animal Shelter Southampton Animal Shelter Foundation at CHAMPIONS FOR CHARITY Thursday, November 30, 6:00 pm – 8:00 pm Adoption begins at 5:00 pm AMERICANA MANHASSET 2046 NORTHERN BLVD, MANHASSET, NY 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 | Tuesday, November 28, 2017 SPORTS COLLEGE FOOTBALL The Crazy Coaching Carousel THE COLLEGE football season is gearing up for an utterly unpredictable conference championship weekend with enough potential scenarios to make mathematicians cringe. The only thing crazier during this mayhem has been the fury and hysteria from the programs that weren’t good enough to play for a league title—and are looking for new coaches as a result. A total of 10 power conference schools—or roughly 15% of them— face or have already addressed head coaching vacancies in some form. Some have already been filled: UCLA hired former-Oregonoffensive-wizard-turned-NFL -flop Chip Kelly. Florida made Mississippi State’s Dan Mullen one of the richest men in college football. But no situation was as bizarre as what unfolded at Tennessee, where the school fired Butch Jones and was set to hire as his replacement Ohio State defensive coordinator Greg Schiano—until a mob of fans gathered to protest the decision. Online and in gatherings on the Tennessee campus, critics cited unproven allegations about Schiano’s knowledge of Jerry Sandusky’s child molestation while the two overlapped at Penn State. Schiano has denied any knowledge of Sandusky’s actions, but a message painted onto a rock on SCOTT STUART/ZUMA PRESS BY ANDREW BEATON A wave of protests greeted Tennessee’s move to make Greg Schiano its new coach. The school backed away from him. the campus read: “Schiano covered up child rape at Penn State.” Schiano, a former head coach for the Tampa Bay Buccaneers and Rutgers, was an assistant at Penn State from 1990-95. The accusations against Schiano stem from a 2015 deposition by former Penn State assistant Mike McQueary. In that deposition, McQueary said another coach, Tom Bradley, told him that Schiano had information about Sandusky’s abuse. Schiano was not mentioned in the report conducted by former FBI director Louis Freeh on what happened at Penn State. In response to the outcry from Tennessee fans, athletic director John Currie turned the school’s search elsewhere. In a statement, Currie said he carefully reviewed the Freeh report and that the school “carefully interviewed and vetted” Schiano. Ohio State coach Urban Meyer said Monday that Schiano is an “an elite person, elite father, elite husband, elite friend and elite football coach. And I stand by my coach.” For Tennessee fans, this means that they are just one of many well-established football programs still in search of a coach. In the SEC alone, Arkansas, Mississippi State and Texas A&M are still looking too. Ole Miss, after ousting Hugh Freeze earlier this year, just removed the interim tag from Matt Luke’s title. The hottest name to watch throughout all of this may be the coach of this year’s most surprising team. Scott Frost has turned Central Florida around from going winless two years ago to being undefeated this year. He was a rumored candidate at Florida and may be the most logical fit at Nebraska, where he was a star quarterback and led the team to a share of the national title. “I’d be hurt if Nebraska wasn’t interested in me,” Frost said Monday. FOOTBALL | By Jason Gay Thanksgiving 2017 has come and gone, the leftovers are probably finished, the cousins should be off the couch, and Journal readers are hopefully on the mend from all injuries (physical and emotional) incurred in their annual family touch football games. With this year’s edition of the Rules for Thanksgiving Touch Football, we asked readers to submit photos from their own family games—action shots and team photos, final scores, stats, grievances, benchings, firings, suspensions. All of us were blown away by the response. We received photos from all over the country—way more than we can publish here—so we’re putting them all online, in full glory, at WSJ.com/Sports. There, you will find handsome family touch football games played on grass, on turf, and more than a few lucky ducks who got to play on the beach. Some games seemed to have more players than NFL rosters do. There were toddlers, parents, grandparents, greatgrandparents, and at least a few athletic pets. We marveled at one guy playing football in a long overcoat, and the game that rewarded the winner a toilet bowl as a trophy. It was amazing. Thank you. After further review, the ruling on the field stands: Journal readers are the best. CLOCKWISE FROM TOP: CINDI; SETH BAIR; CHARLIE ELLIS; JEFF WARREN; DEBRA GRAYER HALPRIN; MITCHE TUBLIN READERS REACT: THANKSGIVING TOUCH FOOTBALL Eight families came together in Medina, Ohio, for an 8 a.m. Thanksgiving flag-football game. The winner got the toilet bowl. Players of all ages got in on the action in Moorestown, N.J. In Stamford, Conn., a Tublin tradition is the Red Jersey photo. In a hard fought game in Flowood, Miss., the Day family edged the Warren family 21-20. The Aint’s beat the One Armed Giants 49-28 in Pipersville, Pa. The form wasn’t perfect, but the view from Maxwell Place Park in Hoboken, N.J. was close. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | A13 OPINION Mick Mulvaney Is the True Pope Once upon a time, the world had two popes. Today we have two acting directors MAIN of the ConSTREET sumer FinanBy William cial ProtecMcGurn tion Bureau. In 1378, two men each claimed the papacy. One was Urban VI, an Italian who was elected by cardinals in Rome. The other was Clement VII, who was elected by French cardinals and reigned from Avignon— where a succession of French popes had lived for most of that century. Monday morning, Americans awoke to similar competing claims for who the real acting director of the CFPB is. Mick Mulvaney says he is the true acting director because he was appointed by President Donald Trump. Leandra English, a CFPB executive, says she is the true acting director because former Director Richard Cordray anointed her such on his way out. Unlike the 14th century, when pope and antipope held court in different countries, Mr. Mulvaney and Ms. English are not only in the same city—Washington—but claim the same physical office. It’s not over. And as so often happens when progressives overreach so publicly, the likeliest winner will be President Trump. Republicans, of course, have distrusted the CFPB since its inception. Partly the objection is practical, because its creation embodies the classic Beltway approach: rather than fix a broken regulatory system, throw another powerful agency atop the heap. In this case, however, the objections are also constitutional. Philip Hamburger, a Columbia University law professor and author of “Is Administrative Law Unlawful?,” notes that the lack of democratic accountability almost defines the CFPB. “This agency is so independent that it does not need congressional funding, and it now has declared itself selfappointing—even in opposition to the president’s appointee,” he says. “The CFPB is thus a reminder of how the administrative state can go to dangerous extremes.” In this battle over legitimacy, Mr. Mulvaney boasts two impressive credentials. First, he was appointed by the man whom the Constitution gives authority over the executive branch, the president. Second, Mr. Mulvaney is on record as saying he doesn’t “like the fact that the CFPB exists.” If only more heads of more administrative agencies came to their jobs with such a healthy reservation about government power. All of which gives Mr. Trump and the Republicans an unexpected opening. One perpetual difficulty with advancing regulatory reform is that it’s not a sexy issue, so it’s difficult to drum up public support. But the longer the absurdity at the CFPB goes on, and the more attention it generates, the more the American people will see that the CFPB’s lack of accountability was meant not as a bug but a feature. On strictly legal terms, Mr. Trump’s hand is strong. A year ago, a three-judge panel of the D.C. Circuit Court of Appealsthrew out provisions that insulated the CFPB director from presidential accountability and said the CFPB Once again, naked progressive overreach sets Donald Trump up for a win. would do its job “as an executive agency akin to other executive agencies.” More recently, the Justice Department’s Office of Legal Counsel invoked the Vacancies Reform Act to uphold the president’s right to make this appointment. For good measure, even the CFPB’s own general counsel, Mary McLeod, says Mr. Mulvaney’s appointment by Mr. Trump is legitimate. With Donald Trump, of course, it’s always possible that someone will find some federal judge somewhere who will allow personal antipathy for the president to get in the way of the law and the Constitution. But the arrogance on display this week by Ms. English & Co. should also invite congressional correction. Behind the metaphor of “the swamp,” after all, is the idea, not without justification, that today’s Washington is far removed from government of, by and for the people. In this context the CFPB is a good proxy for the beau ideal of modern American progressivism: appointed bureaucrats, unaccountable to the elected representatives of the people, who wield their regulatory authority as a weapon. As if this were not outrageous enough, Ms. English argues the CFPB also has the right to self-perpetuate by the laying of hands on a successor by her predecessor when he leaves. On Monday Mr. Mulvaney took his place in the director’s office, brought doughnuts for employees and met with senior staff. Meanwhile Ms. English sent an email signed “acting director.” And just as France and Scotland recognized the antipope Clement VII, Sens. Chuck Schumer and Elizabeth Warren say they recognize Ms. English as the CFPB’s true acting director. In the end, the rebellion at the CFPB is about far more than an acting director. The defiance is a gift to Republicans, giving them a rare political opening to clip the wings of an agency designed to go rogue—while highlighting to the American people what happens when federal power is divorced from democratic accountability. Anyone really think Mr. Trump loses this one? Write to firstname.lastname@example.org. Trump Brings Foreign Policy Back to Earth By Walter Russell Mead F orget the tweets, the gaffes and the undiplomatic asides. The most trenchant criticism of President Trump’s foreign policy is that it risks forfeiting America’s hard-won position of global leadership. It’s a compelling indictment: Mr. Trump is withdrawing from the Paris Accord, “restructuring” the State Department with a chain saw, dumping the Pacific trade deal, and abdicating on human rights while cozying up to authoritarians. The whole of the damage being done to America’s standing is greater than the sum of his tweets. On the other hand, those hardy souls who defend the administration argue Mr. Trump is so smart that his critics can’t fathom the method to his apparent madness. The naysayers, as this theory has it, are playing checkers, while Mr. Trump is winning at chess. The truth, as always, is more complicated. Mr. Trump is not the second coming of Bismarck, and his temperament, education and experience have not prepared him to steer American foreign policy at a difficult time. But there is a pattern if not a method to his moves. Moreover, Mr. Trump’s mix of ideas, instincts and impulses is not as ill-suited to the country’s needs as his most fervid detractors believe. What gives Mr. Trump his opening is something many foreign-policy experts have yet to grasp: that America’s post-Cold War national strategy has run out of gas. During the period of confidence and giddy optimism that followed the Soviet Union’s fall, the list of “important” American foreign-policy goals expanded dramatically. The goal now is less to make dreams come true than to keep nightmares at bay. Promoting democracy in the Middle East; protecting the rights of religious and sexual minorities; building successful states from Niger to Ukraine; advancing global gender equality; fighting climate change: This is only a partial list of objectives recent administrations pursued, sometimes under pressure from congressional mandates. Foreign policy has become as complex and unwieldy as the tax code, even as public support for this vast, misshapen edifice has withered. Change had to come, and the failure of Mr. Trump’s 2016 rivals—both Republican and Democratic—to offer a less disruptive alternative to gassy globalism helped put him in the White House. Although the president’s antiglobalist and mercantilist instincts blind him to some realities, they enable him to grasp three significant truths. First, Mr. Trump knows that the post-Cold War policies can no longer be politically sustained. Second, he knows that China poses a new and dangerous challenge to American interests. Third, he sees that foreign policy must change in response. The old approach— on everything from trade and development, to military deployments and readiness, to religious freedom and women’s issues—must be reassessed in the light of today’s dangerous world. For years foreign-policy thinking was dominated by the idea that the end of the Cold War meant the “end of history”—the inevitable triumph of the so-called liberal world order. This belief shaped a generation of intellectuals and practitioners. But history isn’t over, and American foreign policy needs to come back to earth. The U.S. isn’t putting the finishing touches on a peaceful global system that is fated to endure for the ages. For the foreseeable future, foreign policy is going to be less about making dreams come true and more about keeping nightmares at bay. Mr. Trump’s critics retort that committing to advance human rights and fight climate change wraps American power in a mantle of legitimacy and promotes cooperation from allies. The costs for failure in these areas will only grow. Moreover, some of Mr. Trump’s moves, like walking away from the Pacific trade deal, strengthen China at America’s expense. Fair enough. American foreign policy must ultimately stand for something greater than itself. If FDR could proclaim the Four Freedoms in the depths of World War II, then a president today should be able to articulate a larger goal than “MAGA.” Mr. Trump does not appear to understand the importance of trade policy to building alliances and, therefore, American security. One can add that American security rests in large part on whether other countries believe they can count on Washington’s word. Erratic tweets and impulsive flights of rhetoric undercut that confidence. In steering American foreign policy away from the inflated expectations and unrealistic objectives produced by the end of history mirage, the Trump administration is performing a much-needed service. But it is not enough to demolish the old. Ultimately Mr. Trump will be judged on his ability—or failure—to build something better. Mr. Mead is a fellow at the Hudson Institute and a professor of foreign affairs at Bard College. Can Anyone Save Neighborhood Journalism? By Alfred Levitt M y boss, Joe Ricketts, announced earlier this month that he was shutting down DNAinfo and Gothamist, two popular neighborhood news sites. The timing of the decision—it came a week after the sites’ New York editorial teams voted to be represented by the Writers Guild of America East—invited splashy headlines and oversimplified commentary. This wave of attacks obscured a more complicated reality. The closure offered an irresistible narrative: A spiteful right-wing billionaire shuttered his business because hardworking reporters wanted to unionize. Newsweek offered this headline: “Gothamist and DNAinfo Are the Latest Victims of the Billionaire War on Journalism.” Hundreds of people gathered in Manhattan to rally against Mr. Ricketts, and unions seized on the outrage to argue that billionaires should never own media companies. Even New York Mayor Bill de Blasio, no friend to local media, called Mr. Ricketts “a coward.” Such class-warfare rhetoric ignores Mr. Ricketts’s history of supporting journalism. Eight years ago, he thought up the idea for DNAinfo and invested a substantial amount of Joe Ricketts spent millions trying, only to be smeared once he moved on. his own money in neighborhood news reporting, likely investing more than anyone had in decades. He hired more than 160 journalists—and not to push his agenda. To the contrary, Mr. Ricketts insisted that reporters and editors agree in writing that they would stick to the facts and avoid opinion. Shortly after the shutdown was announced, Janon Fisher, a longtime DNAinfo editor, told me, “It’s ironic that Mr. Ricketts is painted as the villain of local news when he was the champion of it for so long.” But it’s easier to write someone off as a villain than to grapple with the economic realities of producing quality local journalism. DNAinfo and Gothamist earned the trust and love of their readers because they employed real reporters who told stories that wouldn’t otherwise be told. That reflected Mr. Ricketts’s vision from the company’s inception. But producing quality journalism isn’t cheap, and finding a revenue model for local reporting is particularly difficult. Facebook and Google have made it incredibly easy for businesses to reach very specific audiences, undermining the viability of small-scale publishers with high-cost structures like DNAinfo and Gothamist. And no one is willing to pay for content except from the largest, most well-established brands. Mr. Ricketts probably stayed in the business too long. But he’s stubborn, and he believed passionately that he could crack the code of a business model to support an essential product. Did the unionization push contribute to his decision to close the business? While the union vote affected the manner and timing of the shutdown, the decision ultimately turned on profitability. DNAinfo wasn’t turning a profit, and it couldn’t keep going as it was, union or not. Here’s the real question: What is a sustainable model to produce quality neighborhood journalism? Joe Ricketts didn’t figure it out, but at least he tried. Maybe his experience can offer lessons for the next person who steps up. Let’s hope the attacks on him don’t dissuade others from trying. Mr. Levitt is president and general counsel of Hugo Enterprises LLC, the holding company for the companies and investments of Joe Ricketts. BOOKSHELF | By Maryjean Wall The Old Kentucky Land Grab American Aristocrats By Harry S. Stout (Basic, 411 pages, $32) O ur ideas about the American frontier are striped with erroneous beliefs, molded by popular culture and more than a few persistent myths. Thanks to television, for instance, generations exited elementary school believing Daniel Boone went into Kentucky to hunt and fish, an accidental tourist who unintentionally opened up the West. Boone did find his muse outdoors; the engine driving him, however, was the money he was to reap while on the payroll of the Transylvania Co. In 1775 Boone and perhaps 29 others were under corporate directive to blaze a trail from North Carolina through the Cumberland Gap to initiate a major land grab. Land speculation was the business of the Transylvania Co. and along this new frontier the stakes were high. In “American Aristocrats: A Family, a Fortune, and the Making of American Capitalism,” historian Harry S. Stout traces the fortunes of the family of Richard Clough Anderson Sr., a Virginia transplant, to portray a frontier that was corporate in every way. Anderson, a colonial colonel who followed Boone by only a few years into Kentucky, had received a plum posting following his Revolutionary War service: surveyor general of the Virginia Military District. The district included some 4 million acres covering what is now Kentucky and Ohio; Anderson’s job was to portion it out to Virginia’s war veterans. The greatest land rush in American history soon followed. Numerous veterans sold their land “warrants” if they did not plan to move west. Anderson, seeing the opportunities, acquired thousands of Kentucky acres. An American aristocracy soon developed on the frontier, based not on titles but on the amount of land amassed. Anderson built a home near Louisville that he named Soldier’s Retreat. He also acquired 28,000 acres of land across Kentucky and Ohio, in addition to his homestead and town lots in Louisville. But what the real-estate gods granted they also took away. Whenever the economy slipped or banks failed (as they often did), capitalists like Anderson wound up cashshort and under water. Land speculators and the frontier banks that enabled such practices walked entwined down the path to riches and ruin. In many ways “American Aristocrats” reads like a timely tale about real-estate speculation, inflated values and bubbles bursting during a seemingly endless series of financial recessions and recoveries. Mr. Stout’s look at the new frontier and the development of Kentucky bring him to argue against historian Frederick J. Turner, whose famous thesis held that rugged individualism made the West. Instead, the author presents a picture of corporate capital developing the West in multiple ways. A corporate model, he suggests, seeks order The settlement of the Bluegrass State in the late 18th and early 19th centuries, through the eyes of a family of frontier capitalists. and institutions: The author identifies Anderson’s founding of the first Masonic Lodge west of the Alleghenies as typical of a search for order in Kentucky. Anderson also served on the Electoral College that voted George Washington president. His task of surveying the land imposed order on the frontier, with surveyors “measuring America inch by inch and rod by rod,” as Mr. Stout describes the orderly process. Well-connected family relations aided Anderson’s search for status and order. One brother-in-law was George Rogers Clark, a Revolutionary War hero. Another brother-in-law, William Clark, partnered with Meriwether Lewis in the 1804-06 expedition to the Pacific Ocean. Mr. Stout frames the expedition as a search for on-the-ground intelligence concerning the vast land acquisition Thomas Jefferson had engineered with the Louisiana Purchase: Yet another search for order in the capitalist enterprise that was the West. As the years went on, members of the Anderson family held political offices, and in 1823 U.S. President James Monroe appointed Richard Anderson Jr. the first American diplomat to Colombia. Anderson Jr., like his father, traded in land but was frequently illiquid. At times the only one holding cash was his wife, Betsy, who provided an income for the family during lean times with the small pork business she built up in Louisville. Unsurprisingly, Anderson Jr. championed the Monroe Doctrine and Manifest Destiny: Under the banner of the latter, American settlers reassured themselves of their “right” to spread Christian values by grabbing land from Native Americans. In Mr. Stout’s view, this notion was reinforced by the Second Great Awakening, which began around this time, fostering a spirit of Protestant exceptionalism that had unintended consequences. The awakening, he writes, organized “the potentially lawless fringes of the frontier with social reform movements and voluntary associations”: another attempt to instill order. The nation’s cardinal sin of slavery undoubtedly played a role in the corporate development of Kentucky and beyond: You could not develop huge amounts of land without the free labor slavery afforded, especially since aristocrats like the Andersons always seemed to have more land than cash. All of the family owned slaves, and “believed slaves to be essential to the development of land assets,” Mr. Stout writes. Anderson Jr., in particular, funded the occasional slave purchases with debt, as he did new land deals. As a result he became even more heavily leveraged. While Mr. Stout clearly states that this is a work about Kentucky’s upper and middle classes, the reader still is left wondering if everyone buying and selling land operated quite the same way. Surely another stratum of society did leave its own footprint, carving out new lands in more traditionally individualistic ways? But telling that part of the story would require a sequel. Mr. Stout writes so revealingly about the upper class on the frontier that one longs for a deeper look into the members of the other social strata that took the young United States westward. Ms. Wall is the author of “How Kentucky Became Southern: A Tale of Outlaws, Horse Thieves, Gamblers, and Breeders.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A14 | Tuesday, November 28, 2017 OPINION R REVIEW & OUTLOOK LETTERS TO THE EDITOR Leandra Costanza Trump Increases Labor-Market Regulation emember the “Seinfeld” episode in tion also adheres to the only federal circuit court which George Costanza refused to leave opinion on the subject, which was issued by an his job even after he was found to be Obama appointee on the Ninth Circuit Court of faking a disability? No matter Appeals last year. the obstacle, George strove to Democrats pretend that The Ninth Circuit upheld occupy his office. The U.S. Lafe Solomon’s appointment the CFPB is its own government now has its own under the Vacancies Act as branch of government. general counsel of the Nadevious doofus George in the form of Leandra English, who tional Labor Relations Board, insists that she deserves to noting that neither the Varun the Consumer Financial Protection Bureau cancies Act nor the National Labor Relations and is refusing to leave. Act “is the exclusive means of appointing an Ms. English is the former chief of staff to Acting general counsel” and that “the PresiRichard Cordray, who resigned as CFPB director dent is permitted to elect between these two on Friday, but not before naming her as deputy statutory alternatives.” director, a position that had been vacant for In other words, Mr. Trump is acting well two years. The language of the Dodd-Frank Act within his legal authority, and Ms. English’s relets the bureau’s deputy director serve as the sistance is grounds for dismissal. Dodd-Frank acting director “in the absence or unavailability lets the President fire the director for cause, of the Director.” and resisting a President backed by the legal arErgo, Ms. English claims she is the new act- guments of the Justice Department would qualing director, never mind that President Trump ify. A presidential order supported by Justice has superseded that claim by invoking the Fed- is presumed to be legitimate unless it is overeral Vacancies Reform Act to appoint Office of turned by an Article III court. Or perhaps Mr. Management and Budget director Mick Mulva- Mulvaney should avoid a scene and let Ms. Engney as acting director. The law allows the Presi- lish hang around until she finally gets tired of dent to temporarily fill a vacancy at an execu- being ignored. i i i tive agency with a government official who has This fiasco underscores that the CFPB is a been confirmed by the Senate. This standoff devolved into a farce worthy rogue agency whose structure is an affront to of “Seinfeld” on Monday, as Mr. Mulvaney occu- the Constitution’s separation of powers. A panel pied the director’s office and met with senior of the D.C. Circuit Court of Appeals ruled in employees. But Ms. English refused to leave and 2016 (PHH Corp. v. CFPB) that the bureau’s diposed for photos with Senate Democrats. We rector must be subject to presidential authority. can only imagine her lineup of interviews on The full circuit, which former Democratic SenMSNBC and CNN as she portrays herself as the ate leader Harry Reid packed with Obama nominees in 2013, vacated the decision while it conlatest martyr for “the resistance.” On Sunday she even found her own lawyer siders the case en banc. It’s likely that Mr. Cordray planned his exit to sue the Trump Administration to keep her job. She had to find her own lawyer—is he Art strategy with Ms. English in the hope of creatVandelay?—because even the CFPB general ing some kind of incident on Monday at the counsel concluded that the law is on the Trump CFPB. In the event Mr. Mulvaney brought doughnuts, and comity reigned. Mr. Cordray Administration’s side. As a memo from the Justice Department Of- and Democrats will try to portray all this as fice of Legal Counsel (OLC) explains, 40 other some kind of bureaucratic coup, the better to office-specific statutes provide alternatives to gin up more name recognition as he runs for the Vacancies Act. Even when it is not the “ex- Governor of Ohio next year. But the Trump Administration is destined to clusive means for filling a vacancy, the [Vacancies Act] remains an available option” for a prevail as a matter of law. The episode shows President to fill an opening, says the OLC that hostility to Mr. Trump is causing his oppomemo. And “the President’s designation nec- nents to violate the rule of law themselves. essarily controls” unless a statute includes Democrats created an executive-branch agency language expressly stating otherwise. Dodd- insulated from Congressional appropriations and presidential control, and now they claim to Frank does not. OLC is the government’s main legal authority be able to run it like a branch of government on executive power and it has consistently sup- unto itself with a self-sustaining directorship. ported this interpretation, including in 2003 with This is a perversion of constitutional governregard to the acting director of OMB and in 2007 ment that the President is right to resist and with the acting Attorney General. This interpreta- the courts should reject. P America’s New Energy Diplomacy oland wants to reduce its reliance on market, Poland’s PGNiG announced that it Russian energy, and last week its state- didn’t intend to renew its long-term agreement owned oil and gas company, PGNiG, with Gazprom, which will expire in 2022. signed its first five-year deal President Trump has built Liquefied natural gas on that momentum. “America to buy American liquefied natural gas. The agreement illus- exports weaken Russia’s stands ready to help Poland trates how the energy boom and other nations diversify regional influence. from the fracking revolution their energy supplies so that can serve U.S. national interyou can never be held hostage ests and deter the reach of to a single supplier,” he said dictators abroad. during a July visit to Warsaw. Moscow has long used its energy resources Under the deal announced last week, the as a political weapon. Gazprom, the Kremlin- British utility Centrica will deliver as many as owned energy company, currently provides nine cargos of LNG, or roughly 30 billion cubic more than two-thirds of Poland’s gas, and other feet based on average shipments, for Polish conEuropean nations also rely heavily on Russian sumption. Centrica buys that LNG from Cheenergy. President Vladimir Putin has used that niere Energy’s Sabine Pass terminal in Louisidependence as a diplomatic cudgel, threatening ana, which liquefies natural gas from more than to cut off supplies. And on several occasions he a dozen states and Canada. has followed through. That’s a modest delivery, but it’s “most likely But Russia’s era of go-freeze-yourself foreign the first in a series of contracts,” and Poland’s policy may be drawing to a close. In 2015—the long-term goal is to “increase the energy secuyear Moscow cut off gas supplies to Ukraine— rity in this region, which has historically been the U.S. surpassed Russia as the world’s top nat- dominated by Russian gas,” executives from ural-gas producer. By February 2016 major PGNiG explained. By offering an alternative to shipments of American LNG were headed Russian energy, the U.S. empowers its European abroad for the first time. Two months after U.S. allies and weakens the Kremlin’s coercive reLNG from the lower 48 states hit the export gional influence. S An Income Tax by Any Other Name eattle’s City Council openly ignored the ‘privileges’ of receiving revenue in Seattle or state of Washington’s law and constitu- choosing to live in Seattle.” tion when it voted unanimously in July to Seattle’s class warriors also disregarded the levy a 2.25% tax its wealthy state constitution, which says A court rules against residents. The Freedom Foun“all taxes shall be uniform dation, a local think tank, and upon the same tax class of Seattle’s ordinance other organizations sued to property.” Income is a form of targeting the rich. block the ordinance. In pleasproperty, the state Supreme ant news that received little atCourt held in 1933. Yet Seattention because it came down tle’s ordinance sought to reon the day before Thanksgiving, the King County place the constitution’s required flat tax with Superior Court ruled that the tax is illegal. a progressive levy to fit the city’s progressive Seattle’s defense relied heavily on linguistic political distemper. contortions. A Washington statute explicitly forJudge Ruhl declined to weigh the constitubids cities and counties from taxing net income. tionality of the ordinance, saying that the statuSo city councillors claimed they were really tax- tory case against it sufficed. If Seattle appeals, ing “total income,” even though they were using an appellate court will likely be constricted to a federal tax-form line item that tallies various reconsidering the lower-court decision, based net earnings and net income sources. Dismissing on those same statutory grounds. this argument, Judge John R. Ruhl noted that That’s another setback for the organized la“the sum of several net figures necessarily is a bor-progressive coalition that wanted to use net figure.” this legal battle to reverse decades of precedent In its first sentence, the Seattle ordinance on income taxation in Washington. They were states that it imposes “an income tax on high-in- hoping progressives on the state Supreme Court come residents.” But in court Seattle insisted might declare the constitution’s flat-tax lanthat it had enacted an “excise tax,” which hap- guage to be unconstitutional. pens to be permissible under state law. Last week’s decision is a victory against puniJudge Ruhl did not find this logic credible. tive taxation that might drive more taxpayers “The City’s tax, which is labeled ‘Income Tax,’ out of the city, especially if federal tax reform is exactly that,” he dryly observed. “It cannot limits the state and local tax deduction. Above be restyled as an ‘excise tax’ on the alternate all it’s a victory for the rule law. Although businesses no doubt have welcomed regulatory relief in some areas, the Trump administration is increasing regulation of the U.S. labor market via its immigration policies (“Trump vs. the Deep Regulatory State” by Christopher DeMuth, op-ed, Nov. 18). With little transparency as to the changing rules, companies have seen new interpretations of who qualifies as a high-skilled worker, have received numerous “requests for evidence” when applying for professional visas and will soon face additional enforcement visits if they hire skilled-visa holders. New regulations are expected that will take away the ability of spouses of H-1B visa holders to work in America and will compel most international students in STEM fields to leave the U.S. within a year after graduation, effectively removing them from the labor market. These actions will likely lead companies to move more work and investment out of the U.S. The administration will potentially remove from U.S. workplaces up to 800,000 young workers after eliminating the Deferred Action for Childhood Arrivals program, while Immigration and Customs Enforcement has promised immigration raids on stores, restaurants and factories. For U.S. businesses, not all is Morning in America. STUART ANDERSON Executive Director National Foundation for American Policy Arlington, Va. I have spent my entire career in hospital administration, mostly in rural areas. Visa options, whether the H-1B or the J-1 waiver, are critical to the availability of medical services across rural America where foreignborn physicians often provide much of the care. The tightening of visa options won’t ease physician shortages in the U.S., won’t make U.S.-born physicians suddenly want to practice in rural areas, and won’t turn displaced coal miners and factory workers into physicians. Perhaps there have been abuses of the immigration system in the past, but let’s not throw the baby out with the bath water. MARK E. MARCHETTI Thatcher, Ariz. Moore Situation Is a Win-Win for Democrats In his Washington Examiner piece “A Senate Seat Is Not Worth Roy Moore” (Notable & Quotable, Nov. 16), Timothy P. Carney includes in his hypothetical example an oft-repeated theme among Republicans and their pundits in the debate over Roy Moore’s candidacy: Do we take the moral high ground and actively fight the election and seating of Mr. Moore with the result of losing a Republican seat in the Senate, or do we just hope that the moral decision remains solely with the Alabama voters and the GOP retains the 52nd seat (and Republican vote) in our razor-thin majority through his election to office? This is a false choice. Roy Moore is politically an anarchist whose first credential and reason for running is opposing the rule of Sen. Mitch McConnell. In all likelihood he will oppose any legislation that the majority leader brings to the floor, giving a vir- The Unmasking of a Flapper In the Family Bloodline tual Democratic “no” vote and making the Republican majority that much more tenuous. This is part of the comfy political Barcalounger in which Senate Minority Leader Chuck Schumer is reclining: Alabama voters give his caucus an additional Democratic senator or, maybe even better, a reliable “no” vote on every Republican bill that comes to the floor, with the added bonus that the holder of that vote can be used to tar the opposition should Mr. Moore prevail. No wonder the usually verbose minority leader is unusually reticent on this matter, as is a great deal of the Democratic caucus that would normally be spraying gas on the pyre. JAMES GOTTSCHALK Tequesta, Fla. Problems Ahead as Public Company Numbers Decline Jason Thomas has it right when he identifies ETFs and index funds as perpetrators of the higher correlation of returns in today’s stock market (“Where Have All the Public Companies Gone?,” op-ed, Nov. 17). By definition, “next price” of any asset in the marketplace is determined by the contest between one active buyer and one active seller; passive investors simply “follow” an asset as it is priced by continuous negotiations. Passive investing produces fewer negotiations and, as Mr. Thomas points out, “market values . . . fluctuate in response to fund flows rather than fundamentals.” Ultimately this trend, taken to its climax, will resemble a sine wave gone flat. LILLIAN DECKER Sanibel, Fla. Moira Hodgson’s review of Linda Simon’s “Lost Girls” (Books, Nov. 11) brought back memories of things my mother told me while I was growing up in the 1950s. I never put the pieces together until now, but my mom was a flapper! I still have the dangling, red-glass beads (not pearls). A recently found picture has me wondering how her bobbed hair style was achieved. The ideal fashionable women were slim, with boyish figures, sometimes attained by breast binding and diet pills. She met my dad at the Roof Ballroom on Wisconsin Ave. in Milwaukee. He offered help in fixing the clasp on her necklace. I wonder if it was the one with red beads? They were married in November 1929. The great stock-market crash affected the rest of their lives, and mine, too. Regarding your editorial “No ReSALLY BARD The Villages, Fla. publicans Need Apply” (Nov. 17): Spokesman for the Congressional Hispanic Caucus Carlos Paz Jr. expresses what has become a major problem for the Democratic Party when he opines that “Rep. [Carlos] Curbelo and his In your editorial “Have They Got a record are not consistent with those Bond for You” (Nov. 21) about Con[i.e., Democratic Party] values.” That necticut and Chicago bonds, you assert vague reference to “values” is what that Detroit’s 2013 bankruptcy set a has undone the Democrats. Advancing precedent by “subverting” the general a superior moral position requires no obligation (GO) bondholders to pay talent, no new ideas, no evaluation. public workers and retirees. But by conflating values with policies In bankruptcy there are only two (actually getting something accomkinds of claims: secured and unseplished), the Democrats have essencured. When a municipality is eligible tially admitted they are out of ideas. for bankruptcy protection, its reveToo bad they can’t tolerate alternanue bonds are deemed secured by tive views any more; Rep. Curbelo the pledge of revenues, and its GO might have some to share. Honest bonds, pension and health-care critical discourse demonstrates an claims are unsecured. Such unseopen mind, healthy skepticism and a cured claims must be treated the genuine desire to do good. same way and receive approximately TOM O’HARE Charlestown, R.I. the same share of whatever assets remain after satisfying in full the claims of secured creditors. As financial adviser to the City of Detroit, our firm formulated a plan of adjustment in which the GO bondholders received approximately the same reTHE WALL STREET JOURNAL covery as the health and pension claims. It is not true that the plan favored one unsecured class over another. What was true is that GO bondholders did not like the fact that federal bankruptcy law takes primacy over state constitutional protections for bondholders. KENNETH BUCKFIRE New York Closed Caucus and Closed Minds Hurt the Democrats Only Thing That Matters: Is This Bond Secured or Not? Pepper ... And Salt Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. “It’s hideous. Price it high enough that someone buys it.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | A15 OPINION AT&T and the Danger of ‘Vertical Integration’ N o one should be surprised by the Justice Department’s attempt to block AT&T’s $85 billion bid to acquire Time Warner. Neither economic theory nor recent experience suggests there is anything novel about the antitrust theory underlying the government’s position. If one company exerts significant control over the means of accessing a particular market, and acquires another company that owns the stuff that goes over or through that The old Ma Bell and Time Warner both have histories of using distribution power in anticompetitive ways. distribution system, there is a real danger that independent producers of the same stuff—in this case, what is called “content”—will find life a lot more difficult, to the disadvantage of consumers. Imposing conditions on such a merger or constraints on the behavior of the resulting merged company will likely do little to improve marketplace competition. Electric utilities use their control over transmission—the wires that bring generated power to market—to make it difficult for independent generators to sell their power. After all, why should a company with its own electricity to sell help a rival generator by moving the competitor’s power to market? Regulators have long struggled to make vertically integrated companies charge only reasonable transmission rates to firms competing with them at other levels of their business. Attempting to control pricing and access terms is a lifelong, tedious and often futile way to preserve competition. Recall that in 1997 Time Warner tried to protect CNN by refusing to grant Fox News access to its cable system in New York City. New York was crucial to Fox, not only because of the market’s size but because many advertising agencies are located in the city. By keeping Fox off its cable system, Time Warner could protect CNN from competition both for viewers and ad revenue. (Fox News and News Corp, which publishes The Wall Street Journal, today share common ownership.) New York City and state political leaders pleaded with Time Warner to open access to its monopoly franchise system. Only when Fox filed an antitrust action did the cable company relent. The affair proved that Time Warner was right, from the perspective of its own business interests, to use its monopoly at one level of a vertically integrated system to stifle competition at another. Fox was allowed to enter the New York market only because the antitrust laws provided it with a battering ram. Keeping Fox out benefited CNN and disadvantaged consumers, who were left with fewer choices. Combining AT&T’s distribution assets with Time Warner’s content would create a merged entity with The Bell system was broken up in 1984, but a consent decree attempting to regulate the behavior of the resulting regional operating companies, the so-called Baby Bells, led to years of judicial control over every aspect of the telecommunications industry. Despite the court’s best efforts, it could never do what structural relief eventually accomplished. The consent decree was lifted in 1996, unleashing the creativity of a manufacturing sector no longer smothered by a competitor with sole or preferred access to the message distribution system. It is just such structural relief that Assistant Attorney General Makan Delrahim, the new head of the Justice Department’s antitrust division, says he prefers to a deal requiring regulatory supervision of a merged company for years to come. Such a deal would be especially calamitous for an industry that specializes in the creation of intellectual property and that is undergoing a period of rapid technological change. Judicial supervision would inevitably slow the pace of innovation. Of course the courts could decide that merging AT&T and Time Warner poses no threat to competition. But if they do, it won’t be for lack of historical precedent or because current antitrust theory is too novel to apply. GETTY IMAGES/IKON IMAGES By Irwin Stelzer a strong incentive to stifle competition from new content providers. Whether it would have the legal power to do so is now a question for the courts. The proposed merger comes as the traditional barriers to entry into the content segment of the entertainment industry are breaking down. Alternatives to cable transmission are emerging. Someday those alternatives may make ownership of a cable system by a content provider irrelevant. We’ll soon find out if that day has already arrived. If the Justice Department persuades the judge in this case that the threat to consumer choice is real, it could lead to a deal designed to preserve competition by restricting the merged company’s behavior. This wouldn’t work and would be a mistake. When Ma Bell was vertically integrated, it controlled both the wires and the products that could be connected to those wires. Independent manufacturers of communications equipment were in effect prevented from entering the business. The vertically integrated company refused to allow consumers to connect anything not produced by its integrated manufacturer. I once had an AT&T representative demand that I remove a shoulder rest from my office telephone, as it was a “foreign attachment”—meaning any device not manufactured by the AT&T-owned Western Electric. Mr. Stelzer, director of economic policy studies at the Hudson Institute, has in the past consulted for News Corp and Google. The Senate Tax Bill Has a Cure for Corporate Inversion By Kenneth C. Frazier A s the Senate this week takes up its bill to reform America’s outdated tax code, much of the debate is understandably focused on the individual and corporate tax rates. But here are two numbers that deserve far more attention: 36 and $510 billion. Thirty-six is the number of formerly U.S.-based companies that moved their headquarters overseas between 2004 and 2016, according to Bloomberg. Seventy-five percent of these departures have taken place since 2012. Meantime, $510 billion left the U.S. economy in Other countries don’t tax their companies’ overseas profits. That puts U.S. firms at a disadvantage. cross-border mergers and acquisitions between 2004 and 2016, according to a September report from the accounting firm EY. These two outcomes are a direct result of America’s uncompetitive “international” tax system, which gives foreign companies an unfair advantage while threatening U.S. businesses and workers alike. Under the current system, American companies are obligated to pay U.S. taxes on their world-wide income. By contrast, most other wealthy nations have “territorial” systems, which do not tax profits earned abroad. This difference puts American companies that operate internationally at a major disadvantage relative to their foreign competitors, and it actively discourages them from investing more in the U.S. To understand how this dynamic damages America’s economic interests, consider the company I lead, Merck, which has its headquarters in Kenilworth, N.J. For more than 125 years, Merck has been proudly an American company, and we remain deeply committed to investing in innovation here. In the past year, we have opened a state-of-the-art research facility in Cambridge, Mass., and broken ground on another in South San Francisco, Calif. Together these facilities will employ hundreds of scientists, who will be working, right here in the U.S., to tackle some of the world’s biggest medical challenges. At the same time, Merck operates in nearly 150 countries. If we decide to pay for a U.S. expansion by repatriating profits generated in the European Union or China, we are forced to pay additional taxes to the U.S. That money was already taxed in the country where it was earned, but Washington takes another bite anyway. This makes it more difficult to compete with foreign biopharmaceutical companies, many of which can make the exact same investments—either in the U.S. or in their home countries—without facing the same financial burden. This competitive disadvantage created by America’s international tax system is increasingly too difficult for some U.S. companies to overcome. The result has been a disturbing rise in corporate “inversions” and foreign acquisitions of U.S. businesses. Just look at the data on acquisitions of American biopharmaceutical companies valued at $1 billion or more. In nearly two-thirds of those deals between 2007 and mid-2016, the buyer was foreign. A prominent example was the proposed 2015 merger between Pfizer and Allergan, which is based in Dublin. As part of the deal, Pfizer would have relocated its headquarters from New York to Ireland. Although that merger was ultimately abandoned under intense political and regulatory pressure, the fact remains that America’s tax system gives U.S. companies across all industries a strong incentive to pursue similar maneuvers. Companies that do move overseas or merge with foreign competitors are often criticized for being greedy or even unpatriotic. That narrative may be convenient, but in most cases it ignores the pressures these businesses are responding to. With few exceptions, American companies PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Gerard Baker Editor in Chief Matthew J. Murray Executive Editor Karen Miller Pensiero Managing Editor Jason Anders, Chief News Editor; Thorold Barker, Europe; Elena Cherney, Coverage Planning; Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; Alex Martin, Writing; Mike Miller, Features & Weekend; Christopher Moran, Video; Shazna Nessa, Visuals; Rajiv Pant, Technology; Ann Podd, News Production; Matthew Rose, Enterprise; Michael Siconolfi, Investigations; Nikki Waller, Live Journalism; Stephen Wisnefski, Professional News; Carla Zanoni, Audience & Analytics 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 William Lewis Chief Executive Officer and Publisher DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer; 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; Christina Van Tassell, Chief Financial Officer; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head that decide to leave the country are not eager to do so. They simply view it as their best, and perhaps only, chance to survive in a competitive marketplace. Regardless, the consequences for the U.S. economy are clear: less investment by American businesses, more money spent abroad, and fewer American jobs. That’s why the Senate bill, which Merck supports, proposes to create a territorial system and end the current harmful method of taxing U.S. businesses. In the biopharmaceutical industry, we typically discuss challenges with terms like “disease,” “symptom,” “treatment” and “cure.” In this case, as the debate over tax reform continues, it is critical to recognize that corporate inversions and foreign acquisitions of U.S. companies 60 YEARS OF ADVENTURE AND DISCOVERY are merely symptoms of the greater disease plaguing America’s tax system. The good news is that policy makers know the cure. Adopting a territorial tax system would allow American businesses to compete, American workers to prosper, and American innovation to thrive. Mr. Frazier is chairman and CEO of Merck & Co. 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 A16 | Tuesday, November 28, 2017 THE WALL STREET JOURNAL. WORLD NEWS Mexico Finance Minister Resigns, Eyes Presidency BY JUAN MONTES POWER EMPIRE A N D HENRY ROMERO/REUTERS MEXICO CITY—José Antonio Meade resigned as Mexico’s finance minister and said he hoped to become the candidate of the ruling Institutional Revolutionary Party in next year’s presidential election, a nomination he is expected to capture with the support of President Enrique Peña Nieto. “I [seek the candidacy] after 20 years of serving my country...with integrity and honesty,” Mr. Meade said in a speech on Monday at the Finance Ministry. José Antonio González Anaya, the head of state-run oil company Petróleos Mexicanos, or Pemex, succeeded Mr. Meade as finance minister. Mr. Meade will be officially named the party’s standardbearer in February by a convention of party delegates, several PRI officials said. He would then face a crowded presidential field that includes the front-runner, leftist nationalist Andrés Manuel López Obrador. The PRI, which ruled Mexico for most of the 20th century, doesn’t hold open primaries and has a long tradition of picking its candidate through a process known as the “dedazo”—literally the tapping of the chosen one by the sitting president, who is constitutionally barred from re-election. The 48-year-old Mr. Meade, who holds a doctorate in economics from Yale University, is an austere technocrat who has been cabinet minister five times under two administrations, including that of conservative former President Felipe Calderón. In backing Mr. Meade, who has no party affiliation, Mr. Peña Nieto reached outside traditional party cadres to pick a politician untainted by scandal, a key quality given a string of corruption scandals that have dogged Mr. Peña Nieto’s term. Four former PRI state governors have been arrested on corruption charges this year, and a fifth is a fugitive. Mr. Meade “represents the desperate attempt of Peña Nieto and the PRI to remain competitive in a very difficult election,” said Soledad Loaeza, a political scientist at El Colegio de México university. “He represents continuity of the reformist agenda, but some could see him as different because he doesn’t belong to President Peña Nieto, right, embraced Finance Minister Meade. Uphill Battle Corruption scandals, rising violence and tepid growth have dented support for the ruling PRI in Mexico’s presidential election. 30% Morena 20 PAN PRI 10 0 2016 2017 Source: Buendía & Laredo in-person poll, most recent of 1,000 adults conducted Nov. 10-17; margin of error: +/-3.53 pct. pts. THE WALL STREET JOURNAL. Peña Nieto’s inner circle.” While Mr. Meade’s political independence may attract independent voters, it may prove a hard sell with dyed-in-the-wool PRI supporters, analysts said. The PRI has been trailing in most polls, and Mr. Peña Nieto’s approval ratings are around 20%, the lowest for a modern president. The party governs just 14 of Mexico’s 32 states, the fewest in its 88year history. Some 80% of Mexicans want a change of party in government, according to a recent survey by pollster Bueno & Laredo. Mr. López Obrador, who is Trade Deficit Grew As Oil Imports Rose THE EXPLOSIVE NEW ENTRY IN THE BESTSELLING JACK RYAN SERIES MEXICO CITY—Mexico ran up a $2.07 billion trade deficit in October, more than double the shortfall in the year-earlier month as petroleum imports continued to rise, offsetting gains in shipments abroad of manufactured goods. Exports grew 13.2% from October 2016 to $36.90 billion, while imports increased 16.3% to $38.97 billion, the National Statistics Institute said Monday. Higher oil prices affected petroleum imports, which grew 40.1% to $4.08 billion. —Anthony Harrup making his third bid for the presidency on an anticorruption platform, has narrowly led early polls, while the conservative National Action Party appears close to agreeing on a coalition with two other parties that could make it competitive. While Mr. Peña Nieto’s administration had a successful start, shepherding through Congress an unprecedented agenda of economic overhauls such as opening the oil sector to foreign and private investors, a flurry of corruption scandals, rising violence and disappointing economic growth have dented his image. WORLD WATCH ZIMBABWE Authorities Report Return to ‘Normalcy’ Security forces reported incidents of looting and illegal occupation of farms and houses after the resignation last week of Robert Mugabe as president and the inauguration of his successor, Emmerson Mnangagwa. However, the military and police also said in a joint statement that the “situation in our country has returned to normalcy” after a crisis during which the military staged a takeover and huge crowds demonstrated against Mr. Mugabe at the end of his 37-year rule. —Associated Press CHEMICAL WEAPONS U.S. Warns of Use By Non-State Actors The U.S. warned that efforts to uphold the global ban on the production and use of chemical weapons were at a “critical juncture” in the wake of their use during Syria’s war. Andrea Hall of the U.S. National Security Council told a conference in The Hague, the Netherlands, that “we must take every opportunity to deter states from using chemical weapons. If we fail to take action now, non-state actors’ use will also rise.” She was speaking on the opening day of the annual conference of state parties to the Organization for the Prohibition of Chemical Weapons, which oversees the global ban on such weapons. —Associated Press AUSTRALIA Police Arrest Terror-Plot Suspect Police arrested a 20-year-old man who they say was planning a terrorist attack in Melbourne on New Year’s Eve. The Melbourne man was being interviewed by police on Tuesday after his arrest the previous afternoon in the southwestern suburb of Werribee in a joint operation between state and federal police and the country’s security and intelligence agency. Residences in Werribee and in a suburb just north of the city’s central business district, as well as a commercial property were raided the same day. Although the operation continues, the Australian Federal Police said the main lines of inquiry had been completed and no further arrests were expected. The arrest of the man wasn’t linked to any previous police operation, the AFP added. Police said the threat had been contained and there was no ongoing risk to the community. Melbourne, the capital of Victoria state, is Australia’s second-largest city, with a population of 3.8 million. —Robb M. Stewart WRITTEN BY MARC CAMERON An attack on an oil platform in Africa, a terrorist strike on an American destroyer, and a storm-tossed American spy ship that may fall into Chinese hands. President Jack Ryan is once again navigating through very treacherous waters. . . . TOMCLANCY.COM TOMCLANCYAUTHOR ANUWAR HAZARIKA/REUTERS START READING AT PRH.COM/JACKRYAN CLEARANCE: A policeman guides an elephant to demolish huts officials say were illegally built in the Amchang Wildlife Sanctuary in Guwahati, India. Four people were injured during the evictions. AUDIO AVAILABLE 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: MICROSOFT ADDS SAP AS CLOUD PARTNER TO CHALLENGE AMAZON B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2601.42 g 0.04% S&P FIN g 0.04% THE WALL STREET JOURNAL. * * * * S&P IT g 0.01% DJ TRANS g 0.26% WSJ $ IDX À 0.02% Tuesday, November 28, 2017 | B1 LIBOR 3M 1.477 NIKKEI (Midday) 22533.72 À 0.17% See more at WSJMarkets.com Retailers Misfire in Email Offers BY SUZANNE KAPNER Retailers have their work cut out for them when it comes to customizing and personalizing their email offers, an area where many have fallen behind compared with online rivals, analysts and industry executives say. Such digital efforts are cru- STREETWISE By James Mackintosh In Growth Vs. Value, A Shift Takes Hold The U.S. stock market is showing the biggest divergence between cheap and pricey stocks since the aftermath of the dot-com bubble, as investors chase the performance of companies with rising earnings. Valuations of growth companies—those able to show rising earnings, typically priced at a premium—have soared this year even as price/earnings ratios of cheap “value” stocks slid, an unusual separation. Growth and value stocks in the U.S. returned the same from the start of the postLehman recovery in 2009 until January this year, thanks to a surge in cheap stocks after the U.S. election a year ago. Since then, the 19 percentage-point outperformance of growth stocks is the most in such a short period aside from the last year of the dot-com bubble. The surge could mark either a dangerous top-of-themarket froth or a realistic assessment of dismal longrun economic growth prospects, depending on your view. Either way, investors are searching for ways to pinpoint when preferences will switch back from growth to value. To do that, it helps to get meta. Start with the suggestion of froth. Value stocks are by definition those that are cheap, and they are almost always cheap for the good reason that they have poor earnings prospects. In the past, they have beaten growth stocks, as investors tend to regard value stocks as having even worse prospects than they actually have, meaning they rebound as reality asserts itself. Equally, the aura growth stocks gain from the anticipated rise in earnings tends to generate too much excitement, so growth stocks become more expensive than justified before reverting. This year’s divergence suggests investors are starting to bet on a new era. Growth companies are those expected to do well from new technologies, from a connected world and from disruption to business models. Value stocks are those predicted to be left behind, struggling to adapt. Please see STREET page B2 cial during the holiday season, particularly on Cyber Monday, which Adobe Systems Inc. predicted would set an online spending record of $6.6 billion, a 17% increase from the same day a year earlier. Traditional retailers were once pioneers of using data to zero in on what customers want. But as the importance of their catalogs and mailings have been overtaken by email and other online media, they have struggled—sometimes to the frustration of customers. Sari Rogers browsed Lord & Taylor’s website earlier this month, looking for a pair of tall black boots, but left without making a purchase. A day later, the retailer emailed her, but instead of beckoning her back with a boot promo, it advertised 25% off dresses. “It’s kind of annoying,” said the 47-year-old Fanwood, N.J., resident, who is the parish coordinator at a local church. “They focus on products I’m not interested in.” A spokeswoman for Lord & Taylor said the retailer has increased one-to-one communication with shoppers, including sending in-stock and price- reduction alerts. But according to Brendan Witcher, a principal analyst at Forrester Research Inc., while retailers say they are customizing their emails, consumers don’t see it that way. “Nearly 90% of organizations say they are focused on personalizing customer experiences, yet only 40% of shoppers say that information they get from retailers is relevant to their tastes and interests,” he said. “The ugly truth is that most retailers haven’t done the unsexy work of understanding how to use the data.” At no time is that more evident than during the year-end shopping bonanza. During last year’s holiday season, retail emails increased 15% compared with the rest of the year, but shoppers less than 15% fewer of them, according to a study of eight billion messages by marketing-services firm Yes Lifecycle Marketing. Analysts say retailers can improve so-called open rates by including targeted offers, based on purchasing and webbrowsing behavior. Even varying the times Please see EMAIL page B4 Bitcoin Speeds Toward $10,000 Ethereum 5,779% The best-known digital currency extended its autumn surge, soaring past $9,000 a bitcoin and pushing its 2017 gain to 896%. While that makes the S&P 500’s gain this year of 16% look paltry, two rival cryptocurrencies have done even better. 5,000% 4,000 3,000 2,000 Percentage change, year to date Jan. Feb. 1,000 March April May Bitcoin 896% June July Aug. $2,000 Sept. Oct. Nov. 5,507% 1,230 days $1,000 1,269 $3,000 $4,000 Litecoin 1,992% 77 8 60 $5,000 $6,000 9 $7,000 13 $8,000 16 $9,000 7 Number of days it took bitcoin to rise past each round number since 2010 Bitcoin percentage change from a year earlier 1,473% 896% 186% 2011 ’12 –58% ’13 ’14 Bitcoin’s price jumped to a high within a few hundred dollars of $10,000, extending an eye-popping 2017 run for the By Steven Russolillo, Akane Otani And Paul Vigna digital currency and underscoring the ebullient investor sentiment sweeping global markets. Bitcoin was trading at $9,647.92 Monday after sur- 35% 125% ’15 ’16 ’17 THE WALL STREET JOURNAL. Sources: CoinDesk (bitcoin); Coin Market Cap (ethereum, litecoin) the globe to records, are raising concerns among investors that a broad 2017 market advance is entering dangerous new territory. Stock indexes in the U.S. are trading at historically high price-earnings multiples, and markets in many parts of the globe are experiencing unusually tame price swings, a condition widely known as low volatility. Those factors, together with the perception that some market gains are being driven by passing $9,000 for the first time over the weekend. It took bitcoin just seven days to rise $1,000 to its latest round-number milestone, according to research site CoinDesk, its fastest such rise in the nine years of its existence. At the end of 2016, Bitcoin traded at $968.23, making the year-todate increase 896%. The sharp gains in bitcoin, together with the rallies that have taken the major share indexes in the U.S. and around concentrated, one-way bets on assets like technology stocks, are raising fears among some investors that the market is entering a final push higher before it pulls back sharply. While corporate earnings are rising and interest rates and inflation remain low, many analysts worry that the drumbeat of higher prices is causing investors in all sorts of markets to become complacent and assume that recent gains Please see PRICE page B11 BY LISA BEILFUSS Two of Wall Street’s biggest firms have a message for their brokers: Leave at your own risk. Morgan Stanley and the U.S. wealth-management arm of Swiss bank UBS Group AG have abandoned a pact with more than 1,600 signatories that limits litigation related to broker poaching and makes it easier for financial advisers to jump to rivals and bring clients’ assets with them. The moves highlight the mounting pressure Wall Street brokerages face from independent competitors known as registered investment advisers, which offer brokers more autonomy and higher pay. The money at stake is considerable: According to research firm Cerulli Associates, there is about $4 trillion in the RIA industry and about $6.5 trillion still within the traditional brokerage, or wirehouse, model. By exiting from the recruiting pact, UBS and Morgan Stanley will now be able to make it tougher for departing brokers to bring their clients with them. Advisers may face temporary restraining orders upon leaving, observers say, delaying the point at which the adviser can begin servicing clients who follow to the new firm. The threat of litigation is also meant to give pause to the firms that have been recruiting from traditional brokerages. “This is [Wall Street] waving the white flag,” said Brent Burns, a New Jersey-based attorney who represents financial advisers. The biggest brokerages “are trying to stem their losses by putting up a fence.” Under the 2004 recruiting pact, departing brokers are limited to taking names, addresses, phone numbers and email addresses of “clients that they serviced while at the firm.” Brokers are also restricted from telling clients about plans to move. UBS told its roughly 7,000 financial advisers Monday that Please see BROKERS page B11 INSIDE Outspoken Judge Stars in AT&T Case BY JACOB GERSHMAN In 2011, U.S. District Judge Richard J. Leon nearly torpedoed a settlement between the Justice Department and Comcast Corp. over the company’s takeover of NBCUniversal. Six years later, Judge Leon is set to play a starring role in a higher-stakes sequel: AT&T Inc.’s proposed merger with Time Warner Inc. Last week, the Trump administration’s lawsuit seeking to block the deal was assigned to the blunt-spoken and unpredictable bowtie-clad jurist. If his handling of the Comcast/NBCUniversal situation is any guide, neither side in the new case—shaping up to be the biggest antitrust battle in nearly two decades—can count on having an ally at the bench. Judge Leon didn’t respond to requests to comment. JAY MALLIN/ZUMA PRESS Shoppers complain the pitches often fail to reflect their tastes and personal interests Street Fights To Keep Brokers U.S. District Judge Richard J. Leon The government didn’t sue to block the Comcast/NBCUniversal merger, but got a promise from the cable company that it wouldn’t try to leverage its market power by charging online rivals like Netflix Inc. higher prices for NBC pro- gramming. Judge Leon refused to rubber-stamp the deal, and was wary that the parties wouldn’t abide by the terms intended to protect online companies from unfair competition. “I’m giving you fair notice I’m not sure I’m going to sign this,” Judge Leon told the parties at a July 2011 hearing. Ultimately, after the sides agreed to subject the terms to extra judicial monitoring, Judge Leon blessed the deal. But the aftermath of the Comcast merger and the effectiveness of the settlement’s remedies now loom over the AT&T case, according to New York University School of Law antitrust professor Scott Hemphill. “He has a very firm grasp of competition law and the economics that drives it,” said Jonathan L. Rubin, a Washington lawyer at MoginRubin LLP who represents the independently operated ATM industry in an antitrust suit against Visa and Mastercard. To justify a halt to the AT&T merger, the government will try to show how AT&T’s acquisition of Time Warner would hurt consumers by leading to higher prices and fewer options for cable and satellite television and online video. The job of assessing claims about the market effects falls to Judge Leon. Mr. Rubin described the 67-year-old judge as a demanding fact-finder who can be expected to take the Justice Department’s “theories and evidence seriously.” Judge Leon, who was confirmed to the bench in 2002 as a nominee of President George W. Bush, has acquired a reputation for his assertive and ofPlease see JUDGE page B2 NEW CEO SHUFFLES TEVA’S RANKS PHARMACEUTICALS, B3 JULIUS BAER’S CHIEF TO JOIN COMPETITOR BANKING, B11 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Tuesday, November 28, 2017 THE WALL STREET JOURNAL. * *** INDEX TO BUSINESSES BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. A Grupo Modelo ............. B6 Acosta.........................A7 Adobe Systems...........B1 Alibaba Group Holding ...................................B13 Alphabet......................B4 Amazon.com...A1,B4,B12 Anheuser-Busch InBev .....................................B6 Apple...........................B4 AT&T............................B1 H Q Hershey.......................A1 Hg Capital...................B7 Qatar Airways.............B6 I Raymond James Financial..................B11 Restaurant Brands International.............A8 C Citigroup ..................... A1 Credit Suisse Group . B13 D Delta Air Lines ........... B6 DRW Holdings .......... B11 Dynasty Financial Partners..................B11 E Ecolab..........................A8 Emirates Airline ......... B6 Etihad Airways...........B6 G Gap ............................ B12 General Motors.........B12 Goldman Sachs Group ...................................B11 J J.P. Morgan Chase ............................. A1,B11 Julius Baer Group .................... B11,B12,B13 JustFab........................B4 K Koch Equity Development.............B2 Koch Industries...........B2 Kraft Heinz.................A1 Kroger..........................A1 L L Brands....................B12 M Marathon Oil.............B12 Meredith......................B2 Microsoft.....................B4 Monsanto....................B7 Morgan Stanley..........B1 R S Samsung Electronics ...................... B4,B12,B13 SandRidge Energy ...... B3 SAP..............................B4 Siemens.......................B4 Signet Jewelers........B12 SoftBank Group..........B4 StarKist.......................A1 State Street................A8 T Tencent Holdings......B13 Teva Pharmaceutical Industries..................B3 Time ............................ B2 Time Warner...............B1 TransCanada..............B12 U N Uber Technologies ...... B4 UBS Group...........B1,B13 National Public Radio ...................................A11 Newfield ExplorationB12 Nordic Capital.............B7 Veritas Technologies..A8 Verizon Communications .....................................B2 V P W Pictet.........................B13 Pictet Group..............B11 Wal-Mart Stores........A1 Wells Fargo.................A1 INDEX TO PEOPLE B H Redfield, Charles........A7 Benson, Adam...........B13 Hayden, Michael.........B3 Heavey, James..........B11 Hodler, Bernhard.......B13 Revelle, Greg...............B4 Blankfein, Lloyd........B11 Buck, Michele ............. A7 I Icahn, Carl...................B3 Simons, Thomas.......B12 Clark, Robert...............A1 K Solomon, David.........B11 Collardi, Boris....B11,B13 Kalanick, Travis...........B4 Karp, David ................. B2 Kelly, Brian................B11 Khosrowshahi, Dara ... B4 Kinahan, JJ................B12 Komaransky, Mike....B11 D Diamond, Mindy........B11 D'Onofrio, Jeff............B2 F L Thomas, Crit.............B12 Trott, Byron ................ B2 V Vigodman, Erez...........B3 W G M-R Wilson, Donald ......... B11 Gnodde, Richard........B11 Matthesen, Steve.......A7 Melhuish, Nicholas.....B2 Minack, Gerard............B2 JUDGE Continued from the prior page ten brusque approach that cuts across ideological lines. Among the standouts was a 2008 order that required the release of five Algerians from the U.S. military prison at Guantanamo Bay. Judge Leon said the government had failed to show the men were enemy combatants. In 2013, he made national headlines again when he pronounced the National Security Agency’s bulk collection of phone data “almost-Orwellian” and ”almost certainly” unconstitutional. This past Wednesday, the judge returned to the issue of surveillance. He released an opinion that STREET Continued from the prior page Gerard Minack, of Minack Advisors in Sydney, Australia, says the disconnect between value and growth— and a similar derating of global defensive stocks able to withstand recession—is a sign of investor exuberance. “Markets are normally exuberant at the top,” he says, “but exuberance alone doesn’t mean it is the top.” There’s an alternative explanation. Perhaps the rise in tech and other growth sectors is really about falling bond yields. If the outlook is for lower, long-run inflation and interest rates, then profits far in the future are worth more when discounted back to today. Because the value of growth stocks depends heavily on profits far in the future, they should be worth more when long-dated yields fall, as they have this year. Yet the performance of growth stocks hasn’t been tightly linked to bond yields in the past, so this might be wishful thinking by those trying to rationalize the renewed tech boom. Nicholas Melhuish, head of global equities at Amundi and a value investor, says a change could be prompted purely by overhyped stocks getting too expensive and cheap stocks getting too cheap. He points to the trend toward Amazon and online Inc., which is co-owned by Golden Gate Capital LP, Summit Partners LLP and Infor’s management. In 2016, KED provided $750 million in financing to help Protection One, a security company owned by Apollo Global Management LLC, buy ADT Corp. for roughly $7 billion. Bankers have taken note of KED’s appetite for deals. BDT & Co., which advised Meredith T Flamini, Matthew.......B2 Grunberg, Jason..........B4 Stephen Lacy, Meredith’s chief executive, discussed terms of the deal Monday. Tchilinguirian, Harry.B12 Wadhwani, Sushil.......B2 Goldman, Ken ............. A7 the terms seem favorable, the magazine business is highly challenged, as the sharp decline in Time shares before the latest negotiations with Meredith attest. KED often forms partnerships with other investors to make acquisitions or buy stakes in companies. Earlier this year, it invested more than $2 billion in cloud software company Infor Schultz, Kare .............. B3 Lacy, Stephen ............. B2 Leon, Richard J...........B1 Lundberg, Kory ........... A7 Finley, Foster..............A7 The billionaire Koch brothers made a name for themselves backing conservative causes, but the lesser-known private-equity division of their sprawling industrial conglomerate appears to be more motivated by investment returns than politics. Meredith Corp. is using an investment from Koch Equity Development LLC, or KED as the private-equity unit is known, to help fund its pending purchase of magazine publisher Time Inc. KED agreed to invest $650 million to support the $1.85 billion purchase, announced Sunday. The investment firm secured some rich terms. It is to receive nonvoting preferred shares that pay an 8.5% dividend, compared with 3.1% for Meredith common shares. It would also get warrants and options that could be converted into common stock equivalent to 5.4% of Meredith’s current share count. The preferred shares could also poten- tially be converted into common equity after seven years, according to a securities filing Monday. KED’s parent, Koch Industries Inc., is among the world’s largest private companies. Based in Wichita, Kan., its holdings include paper-products maker Georgia-Pacific LLC, glass company Guardian Industries and Invista BV, which makes Lycra and other plasticbased fabrics. Koch Industries is also a big player in energy, agriculture and dry-bulk commodities. Its Matador Cattle Co. owns 460,000 acres of ranchland that supports more than 12,000 beef cattle. KED is tasked with investing the 10% of profits that Koch Industries doesn’t plow back into its own business, according to its website. It is run by Matthew Flamini, Koch Industries’ vice president of business development, and has invested more than $8 billion in the past five years. The unit has already made some big investments, but none that has drawn as much as attention as a high-profile media deal like Time. And though some of S C Deretich, Monica.........B4 BY MIRIAM GOTTFRIED AND JEFFREY A. TRACHTENBERG Sauter, Daniel...........B11 Burns, Brent ............... B1 Collins, Susan.............A1 Kochs’ Strategy in Meredith Deal ERIC BARADAT/AGENCE FRANCE-PRESSE/GETTY IMAGES B Bank of New York Mellon.......................A8 Boeing ....................... B11 Bonanza Creek Energy .....................................B3 Bristol-Myers Squibb Company ................. B12 Intel.............................B4 Procter & Gamble.......A1 Watson, Matt...........B11 Witcher, Brendan........B1 Z Zandi, Mark.................B4 took credit for stirring the debate over antiterrorism policy and privacy, saying his 2013 ruling had “unleashed a firestorm of press and public discussion” that led Congress to require more targeted searches of phone records. That legislation rendered the surveillance litigation moot, he ruled. Judge Leon has crossed swords with the executive branch in other areas. In 2015, he blasted a deferred prosecution agreement between the government and a Dutch company accused of violating Iran sanctions as “grossly” lenient. His secondguessing of prosecutors got him a rebuke from a federal appeals court, which said he had “significantly overstepped” his authority. Other notable opinions in- Time Inc.’s weekly publications include People, Entertainment Weekly, Sports Illustrated and Time. clude a 2016 ruling against the District of Columbia’s restrictions on concealed-carry gun permits. Judge Leon wrote that the city’s “overly zealous desire” to limit who can carry a firearm ran afoul of the Second Amendment. Before joining the federal court, the Massachusetts native was a litigator at Vorys, Sater, Seymour & Pease LLP, in charge of the firm’s white-collar crime and congressional investigation practice in Washington. He has drawn on his experience with legislative probes as an adjunct scholar at Georgetown University Law School, where he co-teaches a graduate seminar on congressional oversight of the executive branch with Hillary Clinton’s 2016 campaign chairman, John Podesta. on the Time acquisition, joined with KED and Penske Corp. in the 2015 acquisition of vehicle-lighting company Truck-Lite. The boutique advisory firm and merchant bank of former Goldman Sachs Group Inc. banker Byron Trott also advised Molex Inc., a maker of electronic components for gadgets, on its 2013 sale to Koch for $7.2 billion. Charles and David Koch have emerged as major power players in Republican politics, donating and raising millions for conservative candidates and causes. Their political support network expects to invest as much as $400 million in the 2018 election cycle, The Wall Street Journal has reported. Given that history, KED’s backing of the Meredith-Time deal has raised questions about whether the Kochs might be looking to gain influence over prominent publications that include TIME and Fortune. Meredith executives went out of their way Monday to dispel such concerns. Meredith actively sought equity from a variety of potential investors during the summer and early fall, with the understanding that the investment wouldn’t include “help running the business,” Stephen Lacy, Meredith’s chief executive, said on an analyst call Monday. The KED investment offered the best financial terms, he said. KED didn’t require a board seat or observer rights, the ability to attend board meetings but not vote at them. But according to the filing, Meredith management agreed to meet with KED officials quarterly to discuss “then current business, financial and strategic matters.” Meredith will also share with KED the same materials it shares with its board. A Meredith spokesman on Monday said that no one at the company has met or communicated with either of the Koch brothers. —Anupreeta Das contributed to this article. Tumblr Founder, CEO to Leave BY AISHA AL-MUSLIM Tumblr Chief Executive David Karp said he is stepping down from the blogging site he founded nearly 11 years ago. The 31-year-old, who created the microblogging platform in 2007, announced his departure Monday in an email sent to Tumblr staff, which he later shared on his blog and Twitter account. “I’ve decided that 2017 will be my last year at Tumblr,” Mr. Karp said in the memo, adding, “My decision comes after months of reflection on my personal ambitions.” Tumblr is part of the Verizon-owned media conglomer- ate Oath Inc. Tumblr was purchased for about $1 billion by Yahoo Inc. in 2013, but Yahoo later wrote down the blogging site’s value by more than half. David Karp, 31 years old, created the microblogging platform in 2007. Verizon acquired Yahoo in June and merged it with AOL to create Oath. “David founded Tumblr ten years ago as a space for the world’s creators, and we thank him for his commitment and passion driving the growth of the platform to almost 380 million blogs and over 155 billion posts,” Oath said in a statement. After Mr. Karp’s departure, Jeff D’Onofrio, Tumblr’s president and chief operating officer, will take the helm, Oath said. Tumblr built a following by making it easy for people to create blogs and post writings, photos and videos. Tumblr users could follow other people’s updates and easily share their work, features that lowered the bar for online publishing and effectively merged blogging with social media. Cheap for a Reason Value stocks matched those with faster proﬁt growth during the bull market, until this year.* 400% Russell 1000 Growth 300 Russell 1000 Value 200 Online commerce has crushed traditional retail stocks in 2017. 60% 20 S&P 1500 retail REITS 0 100 –20 0 –40 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Amazon.com 40 S&P 500 department stores J F M A M J J A S O N ‘Growth’ stocks are beating ‘value’ this year by the most since the dot-com bubble. why did the turtle cross the ocean? 45 percentage points 30 Russell 1000 growth vs. value† 15 0 –15 –30 –45 1980 ’90 2000 *Including dividends †47-week (2017 so far) rolling change Source: Thomson Reuters Datastream shopping crushing shares in U.S. department stores and shopping malls this year to create some of the most outof-favor stocks. “You get to a point where you have a value gap that’s so extreme that quite often that can act as a catalyst [to rebound] by itself,” he says. One obvious example is the dot-com bubble, which popped purely because it became too big to sustain. Hedge-fund manager Sushil Wadhwani of Wadhwani Asset Management cuts though the argument raging among quantitative managers about whether it makes sense to look at the value of value itself. The problem with using value to predict stock returns is that while it works well over the long run, it is a poor guide in the short term. Mr. Wadhwani suggests the same applies at the next level, when examining whether value is cheap or expensive relative to growth. And, he adds, it is of little use on its own as a guide to when value might begin to perform again. He prefers to look to the momentum of value. In other words, if value is doing well or badly, it’s likely to continue doing well or badly un- ’10 THE WALL STREET JOURNAL. til positions become extremely crowded. Mr. Wadhwani uses economic analysis, too, in his fund, but even without it, he thinks momentum can help investors time when to buy in to a return of value. His best guess is that the time isn’t quite yet, but rather than try to pick the perfect moment, he aims to pick up the trend shortly after it turns. After the run growth stocks have had this year, a turn will have to come soon unless a full bubble inflates or, as some believe, disruptive technology means it really is different this time. Discover a world of investment opportunities with Ariel’s international and global strategies. We offer mutual funds and separate accounts spanning the market cap spectrum and covering the globe. arielinvestments.com/think-global Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800.292.7435. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a whollyowned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation. WSJ ©2017 Slow and steady wins the race. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | B3 BUSINESS NEWS New CEO Shuffles Teva’s Top Ranks SandRidge Board Struggling drugmaker takes steps to boost efficiency amid market headwinds Adopts a Poison Pill Teva Pharmaceutical Industries Ltd.’s new chief executive is shuffling the leadership ranks and combining the company’s generic and specialty businesses as he embarks on a turnaround plan at the struggling drugmaker. Teva, the world’s biggest seller of generic drugs, has suffered under price pressure in its U.S. business and increased competition for its blockbuster multiple-sclerosis drug. The changes it announced Monday represent Chief Executive Kare Schultz’s first significant action since taking charge of the Israeli company on Nov. 1, after pledging to review the company’s operations and strengthen its business. The company said its commercial generic and specialtydrugs businesses will be combined, in a move it said would make the company more agile and increase efficiency. Research and development operations for the two businesses will also be combined, the company said. The changes were only the beginning of a wider plan to turn around the firm, with further details to be announced next month, it added. “Teva is taking decisive and immediate action,” Mr. Schultz, who also serves as Teva’s president, said in a statement announcing the changes. “We will focus on driving sustainable value creation.” Mr. Schultz was named as chief in September and inherited a business with falling profit, a huge debt pile and a collapsing share price as investors worried that the firm lacked a coherent strategy to deal with a flurry of market BY CARA LOMBARDO THOMAS KOEHLER/PHOTOTHEK/GETTY IMAGES BY CARA LOMBARDO AND RORY JONES The Israeli generic-drug firm has suffered from price pressure in the U.S. and competition for its multiple-sclerosis medicine. A lab in Jerusalem. headwinds. Teva has cut its earnings outlook twice this year and its stock is down roughly 60%. Mr. Schultz on Monday said Teva’s drug operations would be integrated into one commercial organization operating across three regions—North America, Europe and growth markets. North America is the firm’s largest market, and one in every seven prescriptions in the U.S. is a Teva drug. Teva in recent years has fought over whether the firm should focus on generics drugs or take advantage of Israel’s focus on research and development and invest in specialty medicines, like its multiplesclerosis drug Copaxone. Some investors had urged the company to split completely into separate businesses, rather than merge the two. Three executives, including Chief Scientific Officer Michael Hayden and the leaders of its generic and specialty businesses, Dipankar Bhattacharjee and Rob Koremans, will leave at the end of the year as a result of the changes, the company said. The company said it appointed four new executive vice presidents who will oversee areas including global research and development and commercial operations in its North American, European and growth markets. It has appointed an executive vice president of global marketing and portfolio who will lead a newly created segment tasked with overseeing interaction between regions and between units. All are current employees. Teva also said it appointed interim Chief Financial Officer Michael McClellan to permanently take the role. The company didn’t announce any staff reductions in its news release Monday. A Teva spokeswoman declined to comment on Israeli media reports that have said it could lay off as much as 25% of its workforce in the coming days under Mr. Schultz’s revamp plan. She said the company would announce more details on its restructuring plan in mid-December. Monday’s changes cheered investors, with Teva’s shares rising 7.6% in New York. The drugmaker had earlier this month announced disappointing third-quarter results and cut its earnings per share estimate for the year on weaker revenue from its U.S. generics business. The results followed a $6.1 billion writedown in August on its U.S. generics unit that dragged the quarterly net loss down to $6.04 billion. Before appointing Mr. Schultz, Teva had been without a permanent chief executive for nine months. He took over from Erez Vigodman, who left the firm in February after sealing an acquisition last year of Allergan PLC’s generics unit that left the company with debt of about $35 billion and an unwieldy supply chain. A 30-year drug-industry veteran, Mr. Schultz developed his skills at Novo Nordisk A/S, one of Denmark’s biggest firms. He then moved to H. Lundbeck A/S as chief executive in early 2015, where he successfully restructured and returned the firm to profitability. SandRidge Energy Inc.’s board adopted a so-called poison pill that would make it more difficult for activist investor Carl Icahn, who recently disclosed a 13.5% stake in the oil and natural-gas producer, to increase his stake as he criticizes SandRidge’s plan to buy Bonanza Creek Energy Inc. The shareholder-rights plan adopted by SandRidge’s board Sunday is aimed at blocking a person or group of people from amassing 10% of the company’s common stock. It also would deter shareholders who already own significant stakes, including Mr. Icahn, from scooping up more shares. SandRidge said Monday that the plan would ensure current shareholders can vote on and “fully consider” its $750 million purchase of Bonanza Creek. Mr. Icahn recently became the company’s largest shareholder in his first new activist position this year. He had been buying SandRidge shares in October in the belief that they were cheap and bought millions more after the company announced the Bonanza Creek deal. In a filing last week, Mr. Icahn called the plan to purchase Bonanza “nonsensical” and questioned “what possible justifications management could have.” Other shareholders, including Fir Tree Partners, have criticized the deal, arguing SandRidge is paying too high a price for Bonanza Creek’s assets. Fir Tree owns about a 7% stake, according to financialdata company FactSet. Fir Tree declined to comment on the poison pill, and Mr. Icahn’s office didn’t respond to a request for 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 B4 | Tuesday, November 28, 2017 * **** THE WALL STREET JOURNAL. TECHNOLOGY WSJ.com/Tech Supreme Court Hears Patent Case Three From Justices appear divided over process that pits biotech firms against tech titans WASHINGTON—The Supreme Court appeared split along ideological lines in a case over patents that is pitting pharmaceutical and biotechnology companies against tech titans like Alphabet Inc.’s Google and Apple Inc. The case stems from a much-touted process created by Congress in 2011 for challenging the validity of patents, in part as a response to complaints about the proliferation of patent trolls, which routinely sue other firms for allegedly infringing on their patents. The high court heard oral arguments on Monday as it considers whether that process is constitutional. Specifically, the justices were considering procedures at the U.S. Patent and Trademark Office aimed at creating a quicker and cheaper process for contesting the validity of patents in front of the Patent Office, instead of going to court. Supporters of the 2011 law said there were too many weak patents in the system that led to abusive patent-infringement litigation. Since the overhaul, companies accused of patent infringement have flocked to the new process—called inter partes review—to challenge the validity of patents that they are alleged to have infringed. More than 7,000 petitions have been filed with the Patent Office for review and more than 1,300 patents have been CORBIS VIA GETTY IMAGES BY BRENT KENDALL The Google X research lab. The company is one of many tech firms backing the government’s case. cancelled in whole or in part, according to the government. Not all review petitions lead the Patent Office to take a new look at a patent. But critics say that when the agency does decide to re-examine a patent, it invalidates patents with an alarming frequency that is much higher than the traditional rate in federal court. Patent owners have challenged the process as unfair, alleging that an inventor or company can have their valuable patent rights canceled by a government agency without their getting a day in court. The case stems from a disagreement over an invention for protecting wellhead equipment during the hydraulic frac- turing of oil wells. A Patent Office board in 2015 invalidated a patent over the procedure by Oil States International Inc., an oil-services firm. The Patent Office proceedings were initiated by Greene’s Energy Group LLC after it was sued by Oil States in 2012. Allyson Ho, who argued the case Monday on behalf of Oil States, said the Patent Office process cuts against hundreds of years of past practice in which courts have been the appropriate forum for adjudicating patent validity disputes between private parties. The Patent Office process “doesn’t just look like a trial—it is a trial,” Ms. Ho said, and such cases belong in court and in front of a jury. Companies and inventors that rely on strong patent protections are supporting Oil States. That includes AbbVie Inc., Allergan PLC, Celgene Corp. and leading trade groups for the pharmaceutical and biotechnology industries. Justice Department lawyer Malcolm Stewart, defending the Patent Office, said there was nothing problematic about an agency taking a new look at a patent to determine whether it should have been issued by the government in the first place, even if the re-examination process is initiated by a rival company. Mr. Stewart also noted that Patent Office rulings can be appealed to the judiciary, which means “cancellation is not go- ing to deprive the courts of any role in determining whether the patent was actually valid.” A long list of tech companies, including Apple, Google, Intel Corp. and Samsung Electronics Co. are supporting the government, as are retailers. They said the Patent Office procedures have been effective for addressing questionable patents and burdensome lawsuits. Patent cases aren’t usually the kinds of matters that divide the Supreme Court along ideological lines, but Monday’s case could be an exception. Several conservative justices, including Justice Neil Gorsuch, said they were concerned that an administrative agency was extinguishing property rights without proper due process for patent owners. Justice Gorsuch said that once a patent is granted “it’s a private right belonging to the inventor.” He suggested that only a court had the authority to annul the patent after that. Chief Justice John Roberts said he was troubled that the head of the Patent Office has the authority to pack a review proceeding with additional administrative judges to steer the outcome in one direction or another. Mr. Stewart responded that judges have been added in only a handful of Patent Office cases and not in the Oil States case. The court’s liberal wing was more sympathetic to the government. Justice Ruth Bader Ginsburg said the Patent Office process was “geared to be an error correction mechanism, and not a substitute for litigation.” At the end of the hourlong session, the outcome wasn’t clear. A decision is expected by the end of June. Microsoft Sets Deal With SAP BY JAY GREENE Microsoft Corp. signed up business-software vendor SAP SE as a cloud partner, its latest effort at using alliances to challenge Amazon.com Inc.’s dominance in the market for web-based, on-demand computing resources. Such tie-ups are aimed at giving big corporate customers comfort in shifting computing operations from their own data centers to companies with which they have long worked. The Microsoft-SAP deal is aimed at boosting Microsoft’s business known as infrastructure-as-a-service, where customers rent computing resources online. Last year, that piece of the market hit $22.16 billion, with Amazon Web Services accounting for 44% of it, and Microsoft’s No. 2 Azure service holding a 7.1% share, according to market-research firm Gartner Inc. SAP agreed to use Microsoft’s Azure cloud-computing service internally and said it would highlight that usage to customers shopping for their own cloud services. privately said they would balk if the valuation is too low. Former Chief Executive Travis Kalanick, who holds about 10% of Uber shares, has indicated he won’t sell in the tender offer, while Benchmark Capital has wavered on whether it would sell some of its 13% stake. Meanwhile, Uber is facing mounting pressure from regulators and lawmakers over the yearold data breach it disclosed last week that affected some 57 million riders and drivers. On Monday, Illinois and the city of Chicago filed a joint suit against the ride-hailing firm alleging consumer fraud and deceptive business practices as well as violations of the city code over its failure to disclose the breach, which exposed the personal information of drivers and riders. It is the first such suit by a government agency against Uber involving the hack. Uber “brazenly attempted to conceal this information By Aruna Viswanatha, Robert McMillan and Nick Timiraos The hackers targeted an unnamed “influential economist” at Moody’s and forwarded the economist’s emails to themselves beginning in 2011, court papers said. The indictment alleges that the economist, who isn’t identified by name but is described in detail, was the victim of a scheme in which all of his incoming emails were forwarded beginning no later than 2011 to an email account that was then The alleged hackers gained unauthorized access to Siemens’s computer networks. from the public,” said Chicago Mayor Rahm Emanuel in a statement. Also on Monday, several U.S. senators—including the heads of the finance and commerce committees—wrote a letter to Uber Chief Executive Dara Khosrowshahi calling him to answer 11 questions related to the company’s handling of the incident. “Our goal is to understand what steps Uber has taken to investigate what occurred, restore and maintain the integrity of its systems and identify and mitigate the potential consumer harm and identity theft-related fraud against federal programs,” the senators wrote. “We take this matter very seriously and we are happy to answer any questions regulators may have,” an Uber spokesman said in a statement. “We are committed to changing the way we do business, putting integrity at the core of every decision we make, and working hard to regain the trust of consumers.” Uber last week said it disclosed the hack—committed by two unnamed individuals more than a year ago under Mr. Kalanick—after Mr. Khosrowshahi ordered an investigation led by outside cybersecurity firms. The San Francisco startup paid the hackers $100,000 to destroy the data they obtained and to keep quiet about it, according to people familiar with the matter. After Uber’s announcement, several state and foreign government agencies said last week they were inquiring about the company’s handling of the incident. The Federal Trade Commission said it was “closely evaluating the serious issues raised,” while Sen. Richard Blumenthal (D., Conn) said on Twitter that the Senate Commerce Committee should hold a hearing to “demand Uber explain their outrageous breach—and inexplicable delay in informing its consumers and drivers.” marketing officer, said the company does send some personalized messages, and that segmentation can have a direct impact on sales. “When we know you’re a kids shopper and we send you kids-focused emails, we see an 8% sales lift” of kids’ merchandise, he said. Even brands that get strong marks can run afoul of shop- per preferences. Nordstrom Inc., for instance, ranks high on Sailthru’s index, with a score of 62. A spokeswoman for Nordstrom said it tries to personalize the shopping experience in part by recommending products in emails to shoppers. Getting the recommendations right is tricky, though. Giovanna Traconis, a 19- year-old student at the University of Nevada, Las Vegas, didn’t like any of the items that Nordstrom Rack, the company’s discount chain, had suggested in an email this month, including a Velvet by Graham & Spencer dress, Korks boots and a Chantelle bra. “These are not brands I typically buy,” she said. EMAIL Continued from page B1 when emails are sent can result in gains. First-time purchases increased 40% at JustFab after it began customizing delivery times in 2015, according to Monica Deretich, the online retailer’s vice president of marketing and customer-relationship management. “If you tend to open our emails around noon, that’s when you’ll get them,” she said. While retailers are making strides, they are still falling short when it comes to customizing the shopping experience, according to an analysis of 100 retailers by Sailthru, a personalization technology company. Two-thirds of companies examined by Sailthru received a score of 50 or less out of 100 based on their ability to personalize their sites, emails, mobile apps, social media and loyalty programs. Gap Inc., with a score of 40, sent emails featuring women’s clothes to one of Sailthru’s researchers, even though he had created an online profile indicating he was a man and that he was most interested in items for men and babies. A Gap spokeswoman declined to comment. Kohl’s Corp., which scored a 45, segments its emails based on gender, income, geography and other metrics, which is different from personalizing PHIL FOSTER SoftBank Group Corp. has told stakeholders in Uber Technologies Inc. that it will initially offer to buy shares at a nearly 30% discount to the company’s most recent valuation of $68 billion, according to a person familiar with the matter. The Japanese firm is leading a group of firms that plan to buy at least 14% of Uber by purchasing billions of dollars of shares from employees and investors at a valuation of $48 billion and by investing at least $1 billion in the company at the previous valuation. The SoftBank consortium could raise the price of its bid if it doesn’t reach the 14% threshold, other people familiar with the matter said. Representatives of Uber and SoftBank declined to comment. Bloomberg News earlier reported the offer price. The investment deal, if successful, would transform the corporate structure of the world’s most highly valued startup by adding as many as six directors and a series of voting changes, while bringing some stability to Uber after a year of turbulence. For SoftBank, the deal is a high-stakes bet on the future of the car industry as the Japanese firm already owns big pieces of several fierce Uber competitors. But first Uber and SoftBank have to hope enough shareholders and investors are willing to sell their shares at a steep discount. A big price cut is customary in secondary share sales because the stock cannot be resold easily and the shares usually have fewer preferences—such as protections if the company’s value falls— than those purchased directly from the company. The Wall Street Journal previously reported the SoftBank consortium in recent weeks discussed a valuation of around $50 billion. Some big investors have Three Chinese people have been indicted in the U.S. for allegedly hacking into the email account of a Moody’s Analytics economist and stealing confidential business information from German electrical engineering giant Siemens AG, according to an indictment unsealed Monday. accessed by one of the defendants. The indictment provides numerous details about the economist in question, and they closely match the background of Moody’s Chief Economist Mark Zandi. Mr. Zandi declined to comment and referred questions Monday to a Moody’s spokesman, who declined to comment on its economist. The alleged hackers also gained unauthorized access to Siemens’s computer networks and removed about 407 gigabytes of data in 2015 from the network, including files created by Siemens’s energy, technology and transportation businesses, according to the indictment. A Siemens representative said the company doesn’t comment on “internal security matters” but that it “rigorously” monitors its networks. The three alleged hackers are owners of, or employed by, a Chinese cybersecurity firm called BoYu Information Technology Co., or Boyusec, the indictment said. The three alleged hackers— Wu Yingzhuo, Dong Hao and Xia Lei—are based in Guangzhou, China, according to the indictment. Neither the defendants nor Boyusec could be reached for comment. SoftBank Seeks Uber Stock at 30% Discount BY GREG BENSINGER China Indicted In Hacks messages for a single shopper. Segmentation, while effective, can miss nuances of consumer behavior, said Jason Grunberg, Sailthru’s vice president of marketing. “Ozzy Osbourne and Prince Charles are both British men in their late 60s, but they aren’t necessarily interested in buying the same things,” he said. Greg Revelle, Kohl’s chief For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | B5 ADVERTISEMENT LET'S TALK: Outcomes in a New Context Watch as two influential financial advisors and J.P. Morgan Asset Management's Dr. David Kelly discuss how they are solving the most important issues facing the financial industry today. Gain inside access to Barron's Financial Advisors FEATURING Dr. David Kelly Chief Global Strategist, J.P. Morgan Asset Management Joe Duran Founder & CEO, United Capital Valerie Newell Chairman & Managing Director, RiverPoint Capital Management HOSTED BY Sterling Shea Associate Publisher, Barron's WATCH NOW www.LetsTalkAndSolveIt.com Brought to you by Dow Jones Custom Solutions is a part of the advertising department. Dow Jones news organizations were not involved in the creation of this content. J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. 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. B6 | Tuesday, November 28, 2017 BUSINESS & FINANCE Modelo to Build Mexican Brewery IMAGO/ZUMA PRESS BY ANTHONY HARRUP AND ROBBIE WHELAN An amendment in the Senate tax bill would force some overseas carriers, including Qatar Airways, to pay U.S. corporate taxes. Tax Measure Targets Airlines Some overseas airlines would be forced to pay U.S. corporate taxes on part of their profits under a proposal in the Senate tax-overhaul bill that would upset decades of protocols governing international aviation. In general, airlines have to pay taxes only in their own countries, not on income generated abroad. The U.S. and other nations have negotiated a web of tax treaties and formally recognized agreements that enshrine this principle. The tax bill is due to go before the U.S. Senate in the coming days. An amendment from Sen. Johnny Isakson (R., Ga.) could affect three big Persian Gulf carriers that have expanded rapidly in the U.S. in recent years from their home bases in the United Arab Emirates and Qatar, according to people familiar with the provision. Those airlines— Emirates Airline, Etihad Airways and Qatar Airways—are already embroiled in a threeyear-old trade dispute with the three largest U.S. carriers, including Delta Air Lines Inc. Mr. Isakson, a longtime pol- itician from Atlanta, home to Delta, said his proposal was intended to boost fairness and competition. “Foreign airlines should not receive preferential tax treatment if their countries choose not to open their markets to U.S. companies,” he said in a statement. Critics said, however, it would hurt a system that has allowed airlines to operate international flights without having to pay taxes in multiple jurisdictions. The International Air Transport Association, the global trade group, opposes the proposal, saying it “would upend decades of precedent—which the U.S. has long supported—on the taxation of international aviation.” The trade group also said foreign governments—even those not directly affected by the proposed language— “would be tempted to follow the U.S. example and impose reciprocal taxes.” The Arab Air Carriers Organization, a regional trade group, also raised alarms at its annual meeting last week. United Continental Holdings Inc. and Delta recently dropped daily flights to Dubai, flights that didn’t attract many passengers and fared poorly against the big connecting hubs operated by Persian Gulf carriers in their home markets. The proposed measure would need to pass the full Senate, then survive a reconciliation process with a House bill that lacks such language. In addition to the three big Persian Gulf carriers, the proposed tax change would hit airlines in a dozen other nations including Saudi Arabia, Jordan, Kuwait, Fiji, Ethiopia and Malaysia, according to the people familiar with the proposed provision. That is because the language would apply to nations that don’t have full-fledged tax treaties with the U.S., and those that don’t attract at least two weekly round-trip flights by U.S. passenger airlines. A spokeswoman for Mr. Isakson said the provision could raise $200 million in revenue from foreign airlines. The bipartisan Joint Committee on Taxation estimates the amendment would yield $100 million through 2022 and $200 million over a decade. The trade spat with the three Persian Gulf carriers was started in 2015 by Delta, American Airlines Group Inc. and United. They have asked the U.S. government to amend its so-called open-skies air treaties with the U.A.E. and Qatar, alleging that the three carriers in those nations are backed by billions of dollars in state subsidies that allow them to expand without thought to earning a profit. Such agreements have been negotiated by the U.S. and more than 120 other countries over the past 25 years. They give airlines on both sides unfettered access to the other’s countries and the ability to freely set prices and schedules. The three Gulf carriers have denied they are subsidized and say the U.S. airlines are being protectionist. Other U.S. passenger and cargo carriers have urged Washington to stay out of the Gulf airlines dispute and maintain its open-skies strategy. American, Delta and United declined to comment on the amendment, as did Emirates. Qatar Airways didn’t respond. Etihad, in a statement, called the amendment “inappropriate under U.S. law and contrary to several international agreements.” MEXICO HIDALGO Guadalajara Paciﬁc O cean Mexico City 200 miles 200 km Gulf of Mexico Site of brewery Veracruz THE WALL STREET JOURNAL. The brewery is a welcome development for the state, which saw its economic output decline for three consecutive quarters, including a doubledigit drop in industrial activity in the second quarter of this year. Hidalgo competed with the nearby states of Mexico, Tlaxcala and Querétaro for the new Modelo plant and is one of three states that submitted proposals last month to try to attract Amazon.com Inc.’s second global headquarters. Mexico is the fourth-largest beer producer in the world after China, the U.S. and Brazil, with output of roughly 11 billion liters a year. More Cuts at French Bank BY MARIA ARMENTAL Société Générale SA said Monday it would book a €400 million ($476 million) fourthquarter charge as it eliminates up to 900 additional jobs in a restructuring of its French retail-bank network. The announcement, a day before the Paris-based lender’s investor day, adds to the 2,550 job cuts previously announced. The bank intends to close about 300 branches as part of its 2020 strategic plan. Société Générale said tax changes could result in an additional charge of €170 million in the fourth quarter. The company is slated to report fourth-quarter results Feb. 8. Analysts surveyed by Thomson Reuters projected €554.4 million in net income. As part of its 2020 plan, Société Générale renewed its pledge to increase profit and revenue over the next three years, targeting about €6.50 a share in profit improvement and about €3.6 billion of additional revenue, a 3% increase, by 2020. The bank also expects significant revenue gains in Africa and Russia, where it owns one of the country’s largest private lenders, Rosbank. Société Générale targets at least 11% annual revenue growth through 2020 in Russia. In Africa, the group sees 8% revenue growth. D E C E M B E R 1 3 , 2 0 1 7 | G R A N D H YAT T N E W YO R K Join WSJ Pro journalists and cybersecurity experts for an exclusive event on how executives can mitigate cyberrisks. SPEAKERS INCLUDE John P. Carlin Theresa Payton Chair, Global Risk + Crisis Management, Morrison & Foerster; Assistant Attorney General, National Security Division, U.S. Department of Justice (2014–2016) President and CEO, Fortalice Solutions; CIO, the White House (2006–2008) Michael Chertoff Stephen E. Schmidt Co-Founder and Executive Chairman, The Chertoff Group; Secretary, U.S. Department of Homeland Security (2005–2009) VP, Security Engineering and CISO, Amazon Web Services; Section Chief and CTO, FBI (1998-2008) Elena Kvochko Scott S. Smith CIO, Group Security Division, Barclays Assistant Director, Cyber Division, FBI SPONSORED BY Wednesday, December 13, 2017 The Grand Hyatt, 109 E 42nd St, New York, NY Request your invitation today: cyber.wsj.com © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6141 BY SUSAN CAREY MEXICO CITY—Grupo Modelo, the Mexican unit of Anheuser-Busch InBev and brewer of Corona Extra and other export brands, plans to invest 14 billion Mexican pesos ($755 million) in the construction of a major brewery in central Mexico. The brewery in the state of Hidalgo is expected to start operating in March 2019 with annual capacity to produce about 320 million gallons of beer a year, or about nine million bottles of beer a day, Grupo Modelo Chief Executive Mauricio Leyva said Monday. The brewery, Modelo’s eighth in the country, will employ 1,200 people and is designed to be able to double capacity in the future. José Luis Romo, secretary of economic development for Hidalgo state, said the project will bring investment in the state this year to $1.6 billion, compared with an annual average of just $170 million a year over the past six years. U.S. 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 Tuesday, November 28, 2017 | B7 THE WALL STREET JOURNAL. BUSINESS & FINANCE Weedkiller Fight Settled BY VALENTINA POP European buyout firm Nordic Capital is close to acquiring Ullink from Hg Capital in a deal that could value the provider of electronic-trading software at around $650 million, according to people familiar with the matter. The expected deal could be announced as early as Tuesday. The transaction is meant to complement Nordic’s portfolio company Itiviti AB, the Stock- Fund Fund Net YTD Data provided by ing behind her back, after she received confirmation from the German representative in Brussels that he will abstain from the vote. The decision required not just a majority of the countries voting but also of governments representing a majority of the EU’s 500 million citizens. With an abstention, Germany, as the bloc’s mostpopulous nation, would have blocked the decision. “You cannot act this way when you are trying to build trust among dialogue partners,” said Ms. Hendricks, who is a Social Democrat. Her party is currently in coalition talks with Chancellor Angela Merkel. Mr. Schmidt defended his stance, telling the Rheinische Post daily that he obtained concessions in regards to animal health and biodiversity. He said that the commission would have approved the fiveyear extension anyway. “Today’s vote shows that when we all want to, we are able to share and accept our collective responsibility in decision making,” said EU Health Commissioner Vytenis Andriukaitis. The commission is set to renew the five-year license before Dec. 15, when the current license expires. Environmental groups and Green politicians reacted angrily to the news. holm-based provider of electronic-trading technology for listed derivatives and exchange connectivity. By acquiring Paris-based Ullink and merging the two companies, the combined entity gains scale and a broader customer base including institutional investors, banks and brokers. The new entity will generate annual revenue of more than $200 million and employ over 1,000 people, according to one of the people familiar with the matter. Introducing TRANSFORM by ® Caesarstone , a custom quartz surface overlay solution. Technology is at the center of trading activity as software is increasingly used to trade different types of securities at the best price and clamp down on market abuse. That demand is expected to increase as new regulations, such as the Markets in Financial Instruments Directive, or MiFid II, which takes effect in Europe in January, aim to foster greater market transparency. Ullink offers an electronic network that links about 1,500 investors and brokers. Monday, November 27, 2017 Net YTD NAV Chg %Ret Fund American Century Inv 45.77 -0.04 Ultra American Funds Cl A 32.14 -0.05 AmcpA p AMutlA p 41.35 -0.05 27.58 -0.02 BalA p 12.94 +0.01 BondA p 63.16 -0.10 CapIBA p CapWGrA 52.82 -0.25 57.90 -0.36 EupacA p 63.98 -0.18 FdInvA p 52.15 -0.11 GwthA p 10.41 ... HI TrA p 41.38 -0.04 ICAA p 23.42 -0.05 IncoA p 45.67 -0.16 N PerA p 48.64 -0.26 NEcoA p NwWrldA 67.67 -0.42 57.34 -0.26 SmCpA p 12.96 -0.02 TxExA p 45.53 -0.02 WshA p 31.2 19.8 13.9 12.9 3.4 12.3 22.4 31.0 19.7 24.0 6.5 15.5 10.5 29.3 35.3 31.5 24.7 4.6 15.4 B Baird Funds AggBdInst CorBdInst 10.89 -0.02 11.25 -0.01 BlackRock Funds A GlblAlloc p 20.42 -0.02 BlackRock Funds Inst 22.99 -0.09 EqtyDivd 20.55 -0.03 GlblAlloc 7.81 ... HiYldBd StratIncOpptyIns 9.92 -0.01 Bridge Builder Trust 10.20 +0.01 CoreBond 4.1 4.6 12.3 12.6 12.6 7.6 4.1 4.1 D Dimensional Fds 5GlbFxdInc 11.03 +0.01 EmgMktVa 30.59 -0.13 EmMktCorEq 22.76 -0.17 IntlCoreEq 14.27 -0.08 19.95 -0.15 IntlVal 21.56 -0.11 IntSmCo 23.32 -0.14 IntSmVa US CoreEq1 22.28 -0.02 US CoreEq2 21.11 -0.04 36.64 -0.12 US Small US SmCpVal 38.86 -0.11 US TgdVal 25.24 -0.08 39.06 -0.14 USLgVa Dodge & Cox Balanced 108.87 -0.18 13.88 -0.07 GblStock 13.85 +0.01 Income 46.40 -0.32 Intl Stk 201.29 -0.61 Stock DoubleLine Funds NAV Chg %Ret Fund TotRetBdI A A demonstration in front of EU headquarters in July. Net YTD NAV Chg %Ret Fund Net YTD NAV Chg %Ret 15.02 -0.03 17.1 MuLTAdml 11.61 -0.02 Oppenheimer Y MuLtdAdml 10.90 -0.01 42.85 -0.34 34.0 MuShtAdml 15.73 -0.01 43.69 -0.27 26.0 PrmcpAdml r138.09 -0.18 REITAdml r 119.83 -0.55 SmCapAdml 69.52 -0.26 ... STBondAdml 10.41 Parnassus Fds ... 42.08 -0.03 14.4 STIGradeAdml 10.66 ParnEqFd ... TotBdAdml 10.77 PIMCO Fds Instl NA ... NA TotIntBdIdxAdm 22.01 +0.01 AllAsset 10.29 +0.01 5.1 TotIntlAdmIdx r 30.21 -0.18 TotRt TotStAdml 65.20 -0.05 PIMCO Funds A 14.27 -0.09 NA ... NA TxMIn r IncomeFd 39.84 ... ValAdml PIMCO Funds D 68.94 -0.26 WdsrllAdml NA ... NA IncomeFd WellsIAdml 65.51 -0.04 PIMCO Funds Instl NA ... NA WelltnAdml 74.00 -0.02 IncomeFd WndsrAdml 79.56 -0.23 PIMCO Funds P NA ... NA VANGUARD FDS IncomeP 26.54 ... DivdGro Price Funds 99.19 +0.10 36.6 HlthCare r 211.32 -0.32 BlChip 22.67 -0.03 INSTTRF2020 29.85 +0.02 14.0 CapApp 34.92 -0.08 12.5 INSTTRF2025 22.95 -0.04 EqInc 70.04 -0.02 18.1 INSTTRF2030 23.16 -0.04 EqIndex 71.35 +0.10 34.0 INSTTRF2035 23.37 -0.05 Growth 74.32 -0.02 25.8 INSTTRF2040 23.57 -0.06 HelSci 40.35 +0.08 38.0 INSTTRF2045 23.72 -0.06 InstlCapG 39.82 -0.24 19.37 -0.15 26.7 IntlVal IntlStk 19.98 -0.01 15.22 -0.09 18.8 LifeCon IntlValEq 33.41 -0.07 LifeGro 93.34 -0.13 23.8 MCapGro 27.11 -0.04 LifeMod 31.51 -0.10 8.4 MCapVal 27.29 -0.05 55.91 -0.10 29.1 PrmcpCor N Horiz 33.38 -0.09 SelValu r 9.50 ... 3.9 N Inc 27.43 -0.06 OverS SF r 11.41 -0.07 25.8 STAR 10.66 ... STIGrade 23.37 -0.03 14.5 R2020 16.01 -0.01 TgtRe2015 18.04 -0.03 16.4 R2025 26.59 -0.06 18.0 TgtRe2020 31.80 -0.04 R2030 19.46 -0.04 19.5 TgtRe2025 18.66 -0.02 R2035 27.97 -0.07 20.5 TgtRe2030 33.72 -0.06 R2040 TgtRe2035 20.72 -0.05 39.13 -0.02 16.3 Value TgtRe2040 35.71 -0.08 PRIMECAP Odyssey Fds TgtRe2045 22.43 -0.06 37.38 -0.10 30.5 Growth r TgtRe2050 36.09 -0.09 Principal Investors 13.64 ... DivIntlInst 14.03 -0.11 27.5 TgtRetInc TotIntBdIxInv 11.01 +0.01 Prudential Cl Z & I 27.04 -0.02 WellsI 14.56 +0.01 6.1 TRBdZ 42.85 -0.01 Welltn 38.84 -0.15 WndsrII VANGUARD INDEX FDS Schwab Funds 240.84 -0.07 500 40.72 -0.01 18.3 ExtndIstPl 205.74 -0.81 S&P Sel SmValAdml 55.65 -0.10 10.74 +0.01 TotBd2 TIAA/CREF Funds 18.06 -0.11 TotIntl 19.54 -0.02 17.8 TotSt EqIdxInst 65.17 -0.05 IntlEqIdxInst 20.41 -0.11 23.3 VANGUARD INSTL FDS Tweedy Browne Fds 34.31 -0.02 BalInst 28.43 -0.10 13.5 DevMktsIndInst 14.29 -0.09 GblValue DevMktsInxInst 22.34 -0.14 83.37 -0.33 ExtndInst VANGUARD ADMIRAL GrwthInst 71.76 -0.05 10.53 ... 500Adml 240.88 -0.07 18.3 InPrSeIn 237.66 -0.06 34.31 -0.01 11.9 InstIdx BalAdml 237.68 -0.06 CAITAdml 11.73 -0.02 4.2 InstPlus CapOpAdml r158.22 -0.34 27.3 InstTStPlus 58.48 -0.05 37.56 -0.26 28.6 MidCpInst 41.38 -0.10 EMAdmr EqIncAdml 76.67 -0.06 14.4 MidCpIstPl 204.07 -0.49 ExplrAdml 96.63 -0.31 20.2 SmCapInst 69.52 -0.26 ... ExtndAdml 83.37 -0.33 15.6 STIGradeInst 10.66 10.77 ... ... 2.1 TotBdInst GNMAAdml 10.50 GrwthAdml 71.75 -0.06 26.3 TotBdInst2 10.74 +0.01 ... HlthCareAdml r 89.15 -0.14 17.6 TotBdInstPl 10.77 HYCorAdml r 5.93 +0.01 6.7 TotIntBdIdxInst 33.03 +0.02 25.86 +0.01 2.4 TotIntlInstIdx r120.81 -0.74 InfProAd IntlGrAdml 96.85 -0.60 43.8 TotItlInstPlId r120.83 -0.74 65.21 -0.05 ITBondAdml 11.42 +0.01 4.0 TotStInst 39.84 ... ... 4.3 ValueInst ITIGradeAdml 9.80 LTGradeAdml 10.69 -0.01 10.3 MidCpAdml 187.31 -0.45 16.1 MuHYAdml 11.36 -0.02 6.8 Western Asset MuIntAdml 14.07 -0.03 3.9 CorePlusBdI NA ... LrgCpStr Explanatory Notes 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. Trading-Software Deal in Works BY BEN DUMMETT Mutual Funds | WSJ.com/fundresearch Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. THIERRY CHARLIER/AGENCE FRANCE-PRESSE/GETTY IMAGES BRUSSELS—A yearslong dispute among European Union nations, American corporations and environmental groups over a weedkiller was settled Monday with surprising backing from Germany. Representatives from a majority of the EU’s 28 nations approved a five-year license renewal of glyphosate, the world’s most widely used herbicide, invented and marketed by Monsanto Co. under the Roundup brand. The unexpected move unblocked a two-year deadlock after the World Health Organization’s International Agency for Research on Cancer concluded that the substance has the potential to cause cancer in humans. The EU’s chemicals agency in March dismissed those claims, prompting the European Commission, the bloc’s executive branch, to propose a five-year renewal of glyphosate sales in the bloc. Eighteen countries voted in favor of the renewal, including Spain and the U.K. Nine nations including France voted against it and Portugal abstained. The license extension was facilitated by Germany’s postelection limbo. Outgoing Environment Minister Barbara Hendricks accused Farm Minister Christian Schmidt of go- MUTUAL FUNDS 2.3 29.5 33.0 24.6 21.8 26.0 23.3 17.0 14.7 9.0 4.4 6.0 12.9 8.8 16.5 4.2 21.8 12.3 Net YTD NAV Chg %Ret ... NA RisDv A p 61.10 -0.04 FrankTemp/Franklin C NA ... Income C t FrankTemp/Temp A Edgewood Growth Instituti 12.10 ... GlBond A p EdgewoodGrInst 30.14 +0.11 35.7 Growth A p 26.81 -0.14 FrankTemp/Temp Adv GlBondAdv p 12.06 +0.01 Federated Instl ... 12.3 StraValDivIS 6.45 Fidelity 500IdxInst 91.23 -0.02 18.3 Harbor Funds 500IdxInstPrem 91.23 -0.02 18.3 CapApInst 77.49 -0.09 70.58 -0.45 500IdxPrem 91.22 -0.03 18.3 IntlInst r ExtMktIdxPrem r 63.47 -0.25 15.7 Harding Loevner NA ... IntlIdxPrem r 43.50 -0.20 23.2 IntlEq SAIUSLgCpIndxFd 13.98 -0.01 18.2 TMktIdxF r 75.71 -0.07 17.8 TMktIdxPrem 75.69 -0.07 17.8 Invesco Funds A USBdIdxInstPrem 11.61 +0.01 3.4 EqIncA 11.22 -0.04 Fidelity Advisor I NwInsghtI 33.86 -0.06 26.8 Fidelity Freedom John Hancock Class 1 16.83 -0.03 14.1 LSBalncd FF2020 NA ... 14.57 -0.03 15.1 LSGwth FF2025 NA ... 18.27 -0.05 17.7 John Hancock Instl FF2030 Freedom2020 K 16.83 -0.04 NS DispValMCI 24.14 -0.06 Freedom2025 K 14.57 -0.03 NS JPMorgan Funds Freedom2030 K 18.28 -0.05 NS MdCpVal L 40.07 +0.01 Freedom2035 K 15.35 -0.04 NS JPMorgan R Class Freedom2040 K 10.79 -0.03 NS CoreBond 11.66 ... Fidelity Invest 23.85 -0.03 14.9 Balanc 89.71 -0.13 35.9 BluCh Lazard Instl 128.83 -0.13 31.7 Contra EmgMktEq 19.82 -0.18 128.84 -0.12 31.8 ContraK Loomis Sayles Fds 10.31 ... 11.0 CpInc r 14.19 -0.01 LSBondI 41.78 -0.21 25.5 DivIntl Lord Abbett A 186.69 -0.42 36.5 GroCo 4.26 ... ShtDurIncmA p GrowCoK 186.65 -0.42 36.6 Lord Abbett F 7.94 +0.01 3.8 InvGB 4.26 ... ShtDurIncm 11.29 ... 4.2 InvGrBd 53.21 -0.13 16.1 LowP r LowPriStkK r 53.18 -0.12 16.2 107.10 +0.01 24.1 Metropolitan West MagIn 10.68 +0.01 111.66 -0.08 40.1 TotRetBd OTC 10.68 +0.01 23.33 -0.01 16.9 TotRetBdI Puritn 10.05 +0.01 TRBdPlan SrsEmrgMkt 21.75 -0.19 38.5 SrsGroCoRetail 18.32 -0.05 37.1 MFS Funds Class I 40.52 -0.06 SrsIntlGrw 16.54 -0.04 29.2 ValueI 10.89 -0.06 18.9 MFS Funds Instl SrsIntlVal 25.65 -0.16 TotalBond 10.68 +0.01 4.1 IntlEq Mutual Series First Eagle Funds 32.08 -0.14 60.61 -0.09 11.7 GlbDiscA GlbA FPA Funds 34.89 -0.01 8.2 FPACres Oakmark Funds Invest FrankTemp/Frank Adv 34.09 -0.08 NA ... NA EqtyInc r IncomeAdv FrankTemp/Franklin A 84.47 -0.35 Oakmark 7.43 -0.01 4.9 OakmrkInt 28.75 -0.20 CA TF A p NA ... NA Old Westbury Fds IncomeA p NA E F 17.1 NA 3.4 13.8 3.6 H 36.8 20.8 NA I 7.4 J NA NA 12.4 10.1 3.8 L 24.8 7.1 2.2 2.5 M 3.1 3.4 3.5 13.1 26.6 6.7 O 12.1 16.5 26.7 DevMktY IntGrowY P S T V 5.3 2.0 1.1 26.9 5.3 13.6 1.3 2.2 3.4 2.5 25.1 17.8 24.0 12.0 11.7 8.5 11.8 15.9 15.0 17.6 12.6 14.1 15.5 16.9 18.2 18.8 25.4 9.9 16.9 13.4 23.0 16.0 16.6 2.1 10.3 12.5 14.1 15.5 16.8 18.2 18.7 18.8 7.7 2.4 8.4 11.7 11.6 18.2 15.6 8.4 3.4 25.0 17.7 11.9 24.0 24.0 15.6 26.3 2.4 18.3 18.3 17.8 16.2 16.1 13.6 2.2 3.4 3.5 3.4 2.5 25.1 25.1 17.8 12.0 W NA Dividend Changes Dividend announcements from November 27. Company Symbol Amount Yld % New/Old Frq Payable / Record Tri-Continental TY 4.7 .095 Tri-Continental TY 4.7 .3094 YYY 8.1 Symbol Amount Yld % New/Old Frq Payable / Record Foreign Funds and investment companies YieldShares Hi Incm Company .13 Dec29 /Dec21 Q M Dec29 /Dec21 Nov30 /Nov28 Royal Bk Scotland Pfd S Sociedad Quimica ADR Turkcell Iletisim ADR RBSpS SQM TKC 6.4 1.6 3.2 .4125 Q .42879 SA .28872 A Dec29 /Dec14 /Dec07 Dec26 /Dec18 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. TV personality & photographer Nigel Barker selected Frosty Carrina (5141) for his kitchen. Luxury quartz countertops in hours, not days. Vi s i t w w w. t r a n s f o r m y o u r k i t c h e n . c o m . THE WALL STREET JOURNAL. B8 | Tuesday, November 28, 2017 BIGGEST 1,000 STOCKS How to Read the Stock Tables Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Monday, November 27, 2017 Stock Stock Net Sym Close Chg s BCE NYSE s t t s ABB ABB 25.63 AECOM ACM 36.23 AES AES 10.74 Aflac AFL 85.44 AT&T T 34.68 AbbottLabs ABT 56.15 AbbVie ABBV 95.42 Accenture ACN 147.50 AcuityBrands AYI 159.85 Adient ADNT 77.65 AdvanceAuto AAP 89.87 AdvSemiEngg ASX 7.05 Aegon AEG 6.05 AerCap AER 51.13 Aetna AET 176.09 AffiliatedMgrs AMG 192.68 AgilentTechs A 69.31 AgnicoEagle AEM 45.38 Agrium AGU 107.18 AirProducts APD 160.94 AlaskaAir ALK 65.36 Albemarle ALB 136.23 Alcoa AA 42.04 AlexandriaRlEst ARE 127.23 Alibaba BABA 188.03 Alleghany Y 563.19 Allegion ALLE 83.10 Allergan AGN 172.38 AllianceData ADS 221.45 AlliantEnergy LNT 44.61 Allstate ALL 99.41 AllyFinancial ALLY 26.23 AlticeUSA ATUS 18.79 Altria MO 65.07 AlumofChina ACH 16.84 Ambev ABEV 6.36 Ameren AEE 63.39 AmericaMovil AMX 17.46 AmericaMovil A AMOV 17.46 AmCampus ACC 42.13 AEP AEP 76.74 AmerExpress AXP 93.47 AmericanFin AFG 102.70 AmerHomes4Rent AMH 21.77 AIG AIG 58.76 AmerTowerREIT AMT 148.23 AmerWaterWorks AWK 89.20 Ameriprise AMP 159.25 AmerisourceBrgn ABC 81.12 Ametek AME 70.60 Amphenol APH 90.38 AnadarkoPetrol APC 47.69 Andeavor ANDV 103.55 AndeavorLog ANDX 43.21 AB InBev BUD 117.51 AnnalyCap NLY 11.76 AnteroResources AR 18.61 Anthem ANTM 220.03 Aon AON 138.12 Apache APA 39.86 ApartmtInv AIV 44.40 ApolloGlbMgmt APO 30.35 AquaAmerica WTR 36.64 Aramark ARMK 41.37 ArcelorMittal MT 29.63 ArcherDaniels ADM 39.07 Arconic ARNC 23.61 AristaNetworks ANET 238.64 ArrowElec ARW 78.89 AstraZeneca AZN 33.68 Athene ATH 48.60 AtmosEnergy ATO 89.50 Autohome ATHM 61.06 Autoliv ALV 124.94 AutoZone AZO 637.95 Avalonbay AVB 182.84 Avangrid AGR 52.37 AveryDennison AVY 111.92 AxaltaCoating AXTA 35.58 BB&T BBT 46.49 ... 0.13 0.05 0.44 -0.13 0.02 0.70 -0.13 1.86 -0.21 0.64 -0.02 -0.03 -0.18 -0.37 2.31 -0.05 0.69 -1.54 -0.62 -0.04 -0.83 -0.17 0.44 -3.16 7.17 0.18 -1.15 -0.57 0.39 0.33 -0.29 -0.41 -0.41 -0.34 -0.02 0.41 -0.15 -0.05 -0.46 0.27 -0.01 1.12 -0.24 -0.27 0.93 0.46 -0.31 -0.11 0.36 -0.53 -0.42 -0.45 -0.74 -0.05 -0.03 0.02 -0.36 -0.51 -1.28 -0.35 0.05 0.07 0.05 0.07 -0.07 -0.38 -3.42 0.02 -0.16 -0.35 0.78 -4.13 0.72 4.97 -1.79 0.16 0.22 -0.63 0.15 s s t s s Net Sym Close Chg BCE 48.82 0.29 BHPBilliton BHP 41.89 -0.82 BHPBilliton BBL 37.08 -0.60 BP BP 39.51 -0.54 BRF BRFS 12.33 -0.30 BT Group BT 16.64 0.01 BWX Tech BWXT 60.28 -0.77 BakerHughes BHGE 30.31 -0.49 Ball BLL 40.04 0.10 BancoBilbaoViz BBVA 8.45 -0.07 BancodeChile BCH 83.48 -1.68 BancoMacro BMA 105.19 ... BcoSantChile BSAC 28.73 0.06 BancoSantander SAN 6.61 0.02 BanColombia CIB 38.66 -0.94 BankofAmerica BAC 26.59 ... BankofMontreal BMO 77.78 -0.47 BankNY Mellon BK 52.18 -0.05 BkNovaScotia BNS 65.44 -0.72 Barclays BCS 9.96 -0.12 Bard CR BCR 335.93 -0.18 BarrickGold ABX 14.25 0.15 BaxterIntl BAX 64.74 0.62 BectonDicknsn BDX 225.40 -0.88 Berkley WRB 66.38 0.19 BerkHathwy A BRK.A 2762301812.99 BerkHathwy B BRK.B 183.49 1.13 BerryGlobal BERY 59.37 -0.25 BestBuy BBY 57.02 0.02 Bio-RadLab A BIO 261.47 -0.67 BlackKnight BKI 46.10 0.60 BlackBerry BB 10.88 0.09 BlackRock BLK 481.96 2.22 Blackstone BX 31.31 -0.36 Boeing BA 265.58 -0.30 BorgWarner BWA 53.05 0.17 BostonProps BXP 125.23 0.07 BostonSci BSX 28.51 -0.15 Braskem BAK 28.81 -1.31 Bristol-Myers BMY 61.61 0.18 BritishAmTob BTI 66.20 -0.58 BroadridgeFinl BR 89.04 -0.30 BrookfieldMgt BAM 41.76 -0.10 BrookfieldInfr BIP 43.90 0.59 Brown&Brown BRO 50.30 0.25 Brown-Forman A BF.A 59.78 0.59 Brown-Forman B BF.B 59.44 0.60 BuckeyePtrs BPL 45.85 -1.00 Bunge BG 65.16 -0.09 BurlingtonStrs BURL 102.39 0.76 CBD Pao CBD 22.88 0.04 CBRE Group CBG 42.47 -0.36 CBS A CBS.A 57.01 -0.50 CBS B CBS 55.96 -0.58 CF Industries CF 35.92 -0.02 CGI Group GIB 53.98 -0.13 CIT Group CIT 47.61 -0.16 CMS Energy CMS 49.75 0.31 CNA Fin CNA 53.49 0.14 CNOOC CEO 135.29 -1.80 CPFLEnergia CPL 16.55 -0.50 CRH CRH 34.80 -0.45 CVS Health CVS 70.40 -0.15 CabotOil COG 29.14 -0.11 CalAtlantic CAA 54.16 -0.19 CamdenProperty CPT 93.01 -0.89 CampbellSoup CPB 46.78 0.74 CIBC CM 90.04 -0.44 CanNtlRlwy CNI 78.91 -0.87 CanNaturalRes CNQ 33.53 -1.17 CanPacRlwy CP 174.52 0.70 Canon CAJ 38.73 -0.02 CapitalOne COF 86.87 -0.51 CardinalHealth CAH 55.89 -0.48 Carlisle CSL 112.16 1.34 CarMax KMX 67.87 -0.18 Carnival CCL 66.16 -0.55 Carnival CUK 66.64 -0.44 Caterpillar CAT 137.19 -0.20 Celanese A CE 106.83 0.11 Cemex CX 7.74 -0.08 CenovusEnergy CVE 9.28 -0.49 Centene CNC 98.09 0.92 CenterPointEner CNP 29.54 0.51 s Net Sym Close Chg Stock CentraisElBras EBR 6.36 t CenturyLink CTL 13.62 Chemours CC 52.71 Chevron CVX 115.59 ChinaEastrnAir CEA 30.00 ChinaLifeIns LFC 17.03 ChinaMobile CHL 51.11 ChinaPetrol SNP 72.27 ChinaSoAirlines ZNH 44.48 ChinaTelecom CHA 48.84 ChinaUnicom CHU 14.68 Chipotle CMG 274.52 Chubb CB 149.26 ChunghwaTel CHT 34.41 Church&Dwight CHD 45.10 Cigna CI 199.93 CimarexEnergy XEC 112.65 Citigroup C 71.39 CitizensFin CFG 37.63 Clorox CLX 135.67 Coca-Cola KO 45.90 Coca-Cola Euro CCE 38.88 Coca-Cola Femsa KOF 69.37 ColgatePalm CL 72.00 ColonyNorthStar CLNS 12.22 Comerica CMA 78.64 SABESP SBS 10.37 ConagraBrands CAG 35.94 ConchoRscs CXO 138.42 ConocoPhillips COP 49.16 ConEd ED 87.50 ConstBrands A STZ 220.12 ConstBrands B STZ.B 221.05 ContinentalRscs CLR 45.14 Cooper COO 243.29 Corning GLW 32.05 Coty COTY 17.00 s Credicorp BAP 213.24 CreditSuisse CS 16.47 CrownCastle CCI 113.29 CrownHoldings CCK 59.58 Cullen/Frost CFR 95.25 Cummins CMI 161.16 DCT Industrial DCT 60.82 DTE Energy DTE 113.64 DXC Tech DXC 97.54 s Danaher DHR 94.05 Darden DRI 80.28 DaVita DVA 57.99 s Deere DE 148.77 DellTechs DVMT 81.91 DelphiAuto DLPH 100.77 DeltaAir DAL 49.59 DeutscheBank DB 18.74 DevonEnergy DVN 36.79 Diageo DEO 139.58 DigitalRealty DLR 118.06 DiscoverFinSvcs DFS 65.34 Disney DIS 102.79 DolbyLab DLB 62.66 DollarGeneral DG 86.35 DominionEner D 82.96 Domino's DPZ 174.52 Donaldson DCI 47.97 DouglasEmmett DEI 40.87 Dover DOV 94.40 DowDuPont DWDP 70.13 DrPepperSnap DPS 86.91 DrReddy'sLab RDY 35.00 DukeEnergy DUK 88.88 DukeRealty DRE 29.08 ENI E 32.54 EOG Rscs EOG 99.82 EQT EQT 56.88 EastmanChem EMN 90.89 Eaton ETN 75.53 EatonVance EV 52.83 Ecolab ECL 132.81 Ecopetrol EC 11.88 EdisonInt EIX 80.82 EdwardsLife EW 109.86 EmersonElec EMR 61.88 t EnbridgeEnPtrs EEP 12.58 Enbridge ENB 36.27 ... -0.22 -0.60 -0.92 -1.55 -0.34 -0.20 -0.31 -3.52 -0.39 -0.33 -4.79 0.33 -0.19 0.28 -0.67 -3.87 -0.63 -0.12 0.28 0.02 0.24 -0.23 -0.01 -0.23 -0.03 0.01 0.48 -2.16 -1.31 0.60 -1.76 0.05 -1.59 1.00 0.20 ... -0.55 -0.25 0.57 0.61 0.26 0.50 0.01 0.99 -0.22 0.03 0.04 0.84 3.27 0.96 -0.09 -0.52 -0.45 -1.24 -0.24 0.52 -0.06 0.15 -0.59 0.07 0.75 -2.82 -0.02 -0.05 -0.15 -1.03 0.35 -0.46 0.10 -0.07 -0.42 -1.84 -0.77 -0.25 -0.39 0.22 -0.05 0.13 0.27 0.52 0.25 -0.56 -0.89 Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session ETF Monday, November 27, 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 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 10.01 94.70 54.80 67.19 26.20 97.89 81.84 71.53 109.67 104.85 122.92 65.59 56.75 62.67 262.01 185.31 75.74 59.68 109.53 95.82 72.33 52.07 12.44 121.12 87.60 115.87 106.79 71.09 40.59 69.92 63.48 47.01 43.58 59.79 310.45 110.11 132.85 144.96 119.68 183.75 150.49 124.58 154.37 203.21 86.53 212.56 150.98 109.48 38.65 –1.48 –20.6 0.07 16.3 6.0 0.05 –1.02 –10.8 –0.08 12.7 –0.10 13.0 0.09 18.7 0.17 15.0 1.4 0.04 –0.02 –0.1 0.3 0.06 –0.53 22.3 –1.25 33.7 –0.78 24.1 –0.03 16.5 –0.17 12.1 –0.49 10.2 –0.03 16.4 1.4 ... 8.2 0.26 –0.33 18.1 0.21 15.1 0.48 12.3 3.4 –0.06 1.2 –0.31 5.1 0.04 0.4 0.01 –0.36 20.1 –0.34 21.7 –0.60 21.1 –0.33 27.4 –1.47 34.3 –0.57 26.0 –0.43 22.4 –0.70 17.0 1.8 –0.04 0.04 26.6 –0.04 16.5 6.8 –0.18 –0.48 19.4 –0.30 11.6 4.7 –0.16 –0.12 16.1 –0.25 13.6 7.6 –0.18 –0.31 16.7 0.03 24.0 8.0 –0.14 3.9 0.03 ETF Closing Chg YTD Symbol Price (%) (%) 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 VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg XtrkrsMSCIEAFE 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 VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ DBEF 114.12 84.10 106.35 126.62 118.53 101.79 156.19 47.34 23.03 36.90 122.83 34.28 62.98 62.22 235.73 337.70 260.23 93.77 64.50 56.12 23.05 167.59 129.53 159.14 98.35 44.44 45.13 58.29 54.16 139.41 152.47 83.04 84.44 87.77 119.58 151.22 107.56 84.55 239.05 79.47 79.69 145.07 81.83 55.13 56.27 133.97 72.96 102.15 64.50 57.65 31.70 –0.02 ... 0.07 –0.14 –0.25 0.03 –0.04 0.25 0.04 –0.24 0.42 –0.67 –0.06 –0.10 0.11 –0.19 –0.05 0.25 ... 0.43 0.96 –0.11 –0.12 –0.57 0.10 –0.63 –1.03 –0.70 –0.73 –0.09 –0.03 0.02 0.09 –0.01 –0.04 –0.24 –0.13 –0.47 –0.03 0.03 0.03 –0.38 –0.04 0.09 –0.74 –0.10 –0.40 0.02 –0.36 –0.89 –0.60 0.8 –0.4 1.5 6.3 21.7 0.5 31.8 13.9 –1.4 1.2 12.1 23.8 16.2 16.8 19.4 11.9 16.4 9.6 33.4 15.5 10.2 37.9 7.0 19.5 15.5 21.6 26.1 21.6 22.6 25.1 20.3 9.6 1.6 2.4 16.8 14.9 10.7 2.4 16.4 0.0 0.4 12.5 1.3 1.5 22.6 16.2 19.6 9.8 12.4 16.4 13.0 ADVERTISEMENT The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds BUSINESS OPPORTUNITIES BUSINESS 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" BUSINESS LOANS $30K-$10MM Current Business Tax Return Req. www.fundswired.com 877-600-FUND(3863) Est. 2000 TRAVEL $1,000,000 Yearly-$5,000 Daily FDA approved medical device Very large passive income Financing and placement in a doctor’s office available Call Today! (877) 670-1134 Answered 7 days a week Stock Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters. FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies. 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. Save Up To 60% First & Business INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.cooktravel.net (800) 435-8776 s s s s s t s s s s s s s s Net Sym Close Chg Encana ECA 11.40 EnelAmericas ENIA 9.78 EnelGenChile EOCC 25.45 EnergyTransferEq ETE 16.10 EnergyTransfer ETP 16.04 Entergy ETR 86.08 EnterpriseProd EPD 23.93 Equifax EFX 110.50 EquityLife ELS 89.96 EquityResdntl EQR 67.63 EssexProp ESS 247.61 EsteeLauder EL 125.15 EverestRe RE 223.07 EversourceEner ES 64.42 Exelon EXC 41.65 ExtraSpaceSt EXR 87.40 ExxonMobil XOM 81.11 FMC FMC 93.81 FactSet FDS 196.62 FederalRealty FRT 130.69 FedEx FDX 217.87 Ferrari RACE 111.80 FiatChrysler FCAU 17.38 FibriaCelulose FBR 15.45 FidNatlFin FNF 40.34 FidNatlInfo FIS 91.97 58.com WUBA 75.36 FirstAmerFin FAF 55.01 FirstData FDC 16.75 FirstRepBank FRC 92.27 FirstEnergy FE 33.94 FleetCorTech FLT 178.57 Fluor FLR 46.93 FomentoEconMex FMX 91.31 FordMotor F 12.11 ForestCIty A FCE.A 24.86 Fortis FTS 37.70 Fortive FTV 72.76 FortBrandsHome FBHS 64.52 Franco-Nevada FNV 85.37 FranklinRscs BEN 41.18 FreeportMcM FCX 14.09 FreseniusMed FMS 49.05 GGP GGP 23.24 Gallagher AJG 65.71 Gap GPS 30.00 GardnerDenver GDI 31.46 Gartner IT 118.32 Gazit-Globe GZT 10.39 GeneralDynamics GD 201.07 GeneralElec GE 18.12 GeneralMills GIS 54.05 GeneralMotors GM 44.17 Genpact G 31.88 GenuineParts GPC 87.62 Gildan GIL 31.42 GSK GSK 35.55 GlobalPayments GPN 103.89 GoDaddy GDDY 50.89 Goldcorp GG 13.22 GoldmanSachs GS 235.11 Graco GGG 130.06 Grainger GWW 203.10 GreatPlainsEner GXP 34.23 GrubHub GRUB 68.59 GpoAvalAcc AVAL 8.41 GpFinSantMex BSMX 8.17 GrupoTelevisa TV 18.07 Guidewire GWRE 81.60 HCA Healthcare HCA 77.35 HCP HCP 26.69 HDFC Bank HDB 97.78 HP HPQ 21.25 HSBC HSBC 49.04 Halliburton HAL 41.07 Hanesbrands HBI 19.67 HarleyDavidson HOG 47.52 Harris HRS 143.50 HartfordFinl HIG 55.80 HealthcareAmer HTA 30.69 Heico HEI 91.65 Heico A HEI.A 76.65 Helm&Payne HP 55.56 Herbalife HLF 69.05 Hershey HSY 108.37 Hess HES 43.10 HewlettPackard HPE 13.47 Hilton HLT 76.00 HollyFrontier HFC 44.76 HomeDepot HD 174.16 HondaMotor HMC 32.98 Honeywell HON 150.43 HormelFoods HRL 34.18 DR Horton DHI 49.47 HostHotels HST 19.60 HuanengPower HNP 26.29 Hubbell HUBB 121.29 Humana HUM 243.56 HuntingIngalls HII 235.05 Huntsman HUN 30.78 HyattHotels H 71.22 ICICI Bank IBN 9.68 ING Groep ING 18.15 Invesco IVZ 35.20 IQVIA IQV 102.55 IDEX IEX 130.83 IllinoisToolWks ITW 160.82 Infosys INFY 15.53 Ingersoll-Rand IR 84.73 Ingredion INGR 137.01 ICE ICE 68.10 InterContinentl IHG 58.30 IBM IBM 151.98 IntlFlavors IFF 151.47 IntlGameTech IGT 27.90 IntlPaper IP 55.04 Interpublic IPG 18.58 InvitatHomes INVH 23.39 IronMountain IRM 40.50 IsraelChemicals ICL 4.02 ItauUnibanco ITUB 13.14 JPMorganChase JPM 97.93 JacobsEngg JEC 63.32 JamesHardie JHX 16.32 JanusHenderson JHG 36.13 J&J JNJ 138.10 -0.44 -0.18 0.16 -0.13 -0.32 0.71 -0.03 0.60 -0.45 -0.58 -2.76 -1.04 5.40 0.09 0.02 0.02 -0.31 -0.80 -2.09 -1.23 0.87 -1.91 -0.22 -0.31 -0.20 -0.14 -3.51 -0.04 -0.05 -0.67 ... -1.61 0.04 0.88 0.01 -0.33 -0.13 0.63 -0.16 0.92 -0.03 -0.26 -0.31 -0.11 0.32 0.36 0.32 1.93 0.39 1.07 -0.07 0.40 -0.29 0.04 0.78 -0.01 0.51 0.42 -0.17 0.06 -0.84 -0.64 2.95 -0.12 0.01 -0.18 -0.17 -0.34 -1.17 0.16 -0.19 -0.65 0.01 ... -0.51 -0.15 0.12 -0.44 0.16 -0.20 -0.12 -0.35 -0.46 1.07 0.92 -1.30 0.15 0.24 0.71 1.83 -0.15 0.77 -0.23 -0.53 -0.20 -0.69 0.84 3.05 0.60 -0.08 -0.12 -0.11 -0.16 0.11 -1.72 0.14 0.98 -0.08 0.50 1.56 0.27 0.39 0.14 -0.91 ... 0.12 -0.15 -0.27 -0.94 0.09 -0.09 -0.39 0.03 -0.13 -0.57 0.93 Stock s s s s s s s s s s s Net Sym Close Chg JohnsonControls JCI 37.09 JonesLang JLL 148.89 JuniperNetworks JNPR 27.38 KAR Auction KAR 48.36 KB Fin KB 52.53 KKR KKR 19.49 KT KT 14.86 KSCitySouthern KSU 106.15 Kellogg K 65.07 KeyCorp KEY 18.01 KeysightTechs KEYS 44.88 KilroyRealty KRC 74.91 KimberlyClark KMB 116.76 KimcoRealty KIM 18.19 KinderMorgan KMI 16.96 Knight-Swift KNX 39.98 Kohl's KSS 45.21 KoninklijkePhil PHG 38.78 KoreaElcPwr KEP 17.64 Kroger KR 23.18 Kyocera KYO 71.05 LATAMAirlines LTM 13.40 L Brands LB 50.34 LG Display LPL 13.95 LINE LN 44.27 L3 Tech LLL 192.80 LabCpAm LH 151.55 LambWeston LW 54.03 LasVegasSands LVS 67.76 Lazard LAZ 47.65 Lear LEA 175.92 Leggett&Platt LEG 46.45 Leidos LDOS 61.56 Lennar A LEN 60.75 Lennar B LEN.B 50.62 LennoxIntl LII 196.30 LeucadiaNatl LUK 25.67 LibertyProperty LPT 45.04 EliLilly LLY 84.81 LincolnNational LNC 73.26 LionsGate A LGF.A 33.91 LionsGate B LGF.B 32.24 LiveNationEnt LYV 45.39 LloydsBanking LYG 3.53 LockheedMartin LMT 316.70 Loews L 49.66 Lowe's LOW 79.83 LyondellBasell LYB 104.38 M&T Bank MTB 159.50 MGM Resorts MGM 33.67 MPLX MPLX 35.29 MSCI MSCI 128.75 Macerich MAC 63.81 Macy's M 21.21 MagellanMid MMP 65.70 MagnaIntl MGA 54.08 Manpower MAN 128.12 ManulifeFin MFC 21.07 MarathonOil MRO 14.48 MarathonPetrol MPC 61.88 Markel MKL 1082.23 Marsh&McLen MMC 82.50 MartinMarietta MLM 201.82 Masco MAS 40.06 Mastercard MA 152.97 McCormick MKC 100.12 McCormickVtg MKC.V 100.04 McDonalds MCD 168.96 McKesson MCK 144.85 Medtronic MDT 81.41 Merck MRK 54.55 MetLife MET 51.37 MettlerToledo MTD 633.76 MichaelKors KORS 56.61 MicroFocus MFGP 34.11 MidAmApt MAA 103.29 MitsubishiUFJ MTU 6.86 MizuhoFin MFG 3.62 MobileTeleSys MBT 10.64 MohawkInds MHK 275.53 MolsonCoors B TAP 79.38 Monsanto MON 118.37 Moody's MCO 149.87 MorganStanley MS 49.00 Mosaic MOS 23.48 MotorolaSol MSI 92.88 NRG Energy NRG 28.77 NTTDoCoMo DCM 25.77 NVR NVR 3404.02 NationalGrid NGG 59.13 NatlOilwell NOV 31.63 NatlRetailProp NNN 42.42 NewOrientalEduc EDU 86.27 NY CmntyBcp NYCB 12.72 NewellBrands NWL 29.79 NewfieldExpln NFX 29.69 NewmontMin NEM 37.10 NextEraEnergy NEE 157.00 NielsenHoldings NLSN 36.58 Nike NKE 59.63 NiSource NI 27.10 NobleEnergy NBL 25.54 Nokia NOK 5.01 NomuraHoldings NMR 5.75 Nordstrom JWN 41.34 NorfolkSouthern NSC 127.48 NorthropGrum NOC 303.63 Novartis NVS 84.52 NovoNordisk NVO 51.50 Nucor NUE 55.85 OGE Energy OGE 35.13 ONEOK OKE 50.02 OccidentalPetrol OXY 68.08 Olin OLN 36.69 Omnicom OMC 68.84 Oracle ORCL 48.88 Orange ORAN 17.05 OrbitalATK OA 132.30 Orix IX 83.70 Oshkosh OSK 85.76 OwensCorning OC 87.86 PG&E PCG 54.19 PLDT PHI 31.03 PNC Fin PNC 132.56 POSCO PKX 72.91 PPG Ind PPG 115.85 0.18 -1.28 0.04 -0.46 0.12 0.03 0.06 -0.27 0.14 -0.02 -0.46 0.24 0.28 -0.61 -0.23 0.15 0.12 -0.46 0.17 0.20 -0.38 -0.05 1.98 -0.34 -0.64 2.78 0.46 -0.41 0.11 0.11 -1.23 -0.04 0.25 -0.27 ... -0.10 -0.01 -0.25 0.78 0.12 0.26 0.30 0.13 -0.04 0.88 0.31 0.59 0.04 0.36 -0.22 -0.16 -0.15 -0.45 0.14 -0.58 -0.12 -0.02 -0.16 -0.65 -0.15 6.09 0.16 -4.08 0.48 0.23 0.99 0.99 -0.15 0.19 -1.84 0.20 -0.46 -1.26 ... -1.35 -0.87 0.03 ... -0.18 -0.02 -0.29 0.24 -0.36 -0.06 -0.37 0.52 -0.26 0.06 2.64 0.68 -0.22 -0.26 -2.30 -0.03 1.42 -1.05 0.42 0.97 0.07 0.31 0.06 -0.45 -0.07 -0.01 0.38 -2.53 0.91 -0.56 -0.74 -0.08 0.23 -1.02 -0.34 -0.16 -0.13 -0.13 0.08 -0.15 0.02 -0.59 0.24 0.13 -1.03 ... -0.81 -0.25 Stock Net Sym Close Chg PPL PPL 36.58 s PVH PVH 135.24 PackagingCpAm PKG 111.42 PaloAltoNtwks PANW 150.67 ParkHotels PK 28.70 ParkerHannifin PH 183.81 ParsleyEnergy PE 26.40 Pearson PSO 9.21 PembinaPipeline PBA 34.62 Pentair PNR 69.11 PepsiCo PEP 115.85 s PerkinElmer PKI 73.56 Perrigo PRGO 86.06 PetroChina PTR 68.19 PetroleoBrasil PBR 10.12 PetroleoBrasilA PBR.A 9.84 Pfizer PFE 35.49 PhilipMorris PM 102.72 Phillips66 PSX 92.81 PinnacleFoods PF 56.11 PinnacleWest PNW 90.01 PioneerNatRscs PXD 150.58 PlainsAllAmPipe PAA 18.67 PlainsGP PAGP 19.72 PolarisIndustries PII 123.42 Potash POT 19.19 s Praxair PX 152.08 PrincipalFin PFG 68.68 Procter&Gamble PG 88.96 Progressive PGR 52.07 Prologis PLD 66.87 PrudentialFin PRU 109.51 Prudential PUK 50.25 PublicServiceEnt PEG 51.58 PublicStorage PSA 214.93 PulteGroup PHM 32.79 QuestDiag DGX 92.50 s RELX RENX 23.14 s RELX RELX 23.83 RPM RPM 52.06 RSP Permian RSPP 36.25 RalphLauren RL 92.37 RaymondJames RJF 85.29 Raytheon RTN 186.85 RealtyIncome O 56.22 RedHat RHT 128.20 RegencyCtrs REG 67.42 RegionsFin RF 15.52 s ReinsGrp RGA 159.61 RepublicSvcs RSG 62.65 ResMed RMD 84.68 RestaurantBrands QSR 65.90 RioTinto RIO 48.88 s RobertHalf RHI 54.91 Rockwell ROK 191.04 RockwellCollins COL 132.41 RogersComm B RCI 53.91 Rollins ROL 45.24 s RoperTech ROP 260.63 RoyalBkCanada RY 79.12 RoyalBkScotland RBS 7.26 RoyalCaribbean RCL 125.25 RoyalDutchA RDS.A 61.85 RoyalDutchB RDS.B 63.79 SAP SAP 115.74 S&P Global SPGI 164.40 SINOPEC SHI 59.35 SK Telecom SKM 26.75 SLGreenRealty SLG 101.21 Salesforce.com CRM 106.58 Sanofi SNY 45.61 SantanderCons SC 16.73 Sasol SSL 30.71 Scana SCG 42.62 Schlumberger SLB 61.36 SchwabC SCHW 45.77 ScottsMiracleGro SMG 97.23 SealedAir SEE 46.56 SemicondctrMfg SMI 7.21 SempraEnergy SRE 119.43 SensataTech ST 49.21 ServiceCorp SCI 35.51 ServiceMaster SERV 46.99 ServiceNow NOW 126.99 ShawComm B SJR 22.23 SherwinWilliams SHW 390.21 ShinhanFin SHG 43.92 Shopify SHOP 113.36 SimonProperty SPG 156.39 SmithAO AOS 61.37 Smith&Nephew SNN 35.87 Smucker SJM 113.25 Snap SNAP 13.06 SnapOn SNA 161.29 SOQUIMICH SQM 54.26 s Sony SNE 48.02 Southern SO 51.56 SoCopper SCCO 43.16 SouthwestAir LUV 54.60 t SpectraEnerPtrs SEP 39.54 SpectrumBrands SPB 112.37 SpiritAeroSys SPR 82.32 Sprint S 6.15 Square SQ 41.02 StanleyBlackDck SWK 165.89 StarwoodProp STWD 21.69 StateStreet STT 91.36 Statoil STO 20.17 Steris STE 88.45 STMicroelec STM 24.05 Stryker SYK 155.12 SumitomoMits SMFG 8.05 s SunComms SUI 93.33 SunLifeFinancial SLF 39.62 SuncorEnergy SU 34.80 SunTrustBanks STI 57.34 SynchronyFin SYF 33.21 Syngenta SYT 92.37 Sysco SYY 55.16 TAL Education TAL 27.54 TE Connectivity TEL 94.80 s Telus TU 38.22 TIM Part TSU 19.06 TJX TJX 70.96 TaiwanSemi TSM 41.09 Tapestry TPR 40.59 0.27 -0.23 -0.05 0.03 -0.12 0.53 -0.57 -0.17 -0.62 -0.05 -0.05 0.20 -0.51 -0.23 -0.20 -0.20 ... -0.46 -0.83 0.36 0.49 -3.52 -0.25 -0.48 0.28 -0.22 -0.80 0.03 0.51 0.22 -0.19 0.59 -0.04 0.02 2.14 -0.36 0.88 -0.05 -0.06 -0.24 -1.04 0.95 0.34 0.79 -0.17 -0.16 -0.39 -0.05 1.02 0.32 -0.43 -0.17 -0.55 0.22 -0.44 -0.17 -0.02 0.02 0.27 -0.51 -0.09 0.04 -0.59 -0.71 -0.67 0.67 0.36 -0.05 0.23 -0.57 -0.49 -0.12 -0.09 0.76 -0.57 -0.01 -0.54 0.99 -0.38 0.73 0.37 -0.24 0.42 -1.31 -0.08 -3.82 -0.31 1.55 -1.61 0.79 0.09 1.88 0.09 1.59 -2.16 0.13 0.17 -0.97 -0.54 -0.46 -0.70 -0.02 ... -7.84 -0.10 -0.02 -1.10 -0.23 -0.03 -0.55 0.45 0.01 -0.56 -0.18 -0.54 0.13 -0.28 -0.05 0.24 -0.10 -0.46 -0.03 -0.12 0.09 -1.90 -0.27 New Highs and Lows | WSJ.com/newhighs Monday, November 27, 2017 52-Wk % Sym Hi/Lo Chg Stock NYSE highs - 167 85.95 Aflac AFL AG Mortgage PfdB MITTpB 25.60 25.84 AT&T Nts 2066 TBB 9.37 AberdeenJapanEqu JEQ 12.69 AberdeenSingapore SGF 21.33 AllianzGIEqtyConv NIE 13.56 AllnzGINFJDivInter NFJ 11.15 AmRltyInv ARL 15.40 ArmadaHoffler AHH 57.35 ArmstrongWorld AWI 71.22 AshlandGlobal ASH 15.45 AsiaPacificFund APB 27.50 AssdBancPfdC ASBpC 112.28 AveryDennison AVY 27.10 BB&T Pfd H BBTpH 25.60 BB&T Pfd F BBTpF 25.85 BB&T Pfd G BBTpG 22.75 BBVABancoFr BFR 48.87 BCE BCE 337.19 Bard CR BCR 27.67 BarracudaNtwks CUDA 61.84 BectonDickinsonPfA BDXA 227.84 BectonDicknsn BDX 27.45 BlkRkSci&Tech BST 14.59 BluegreenVac BXG 24.10 Box BOX 30.92 BoydGaming BYD 54.42 CGI Group GIB 28.01 CanadaGoose GOOS 106.32 CantelMedical CMD 27.17 CapitalOnePfdH COFpH 107.80 Carters CRI 13.47 CatchMarkTimber CTT 98.90 Centene CNC 30.63 CenturyComm CCS 241.85 Chemed CHE 26.74 ChimeraInvPfdA CIMpA 25.97 ChinaYuchai CYD 214.38 Credicorp BAP 121.95 CurtissWright CW 32.27 Dana DAN Danaher 94.28 DHR 53.70 DaqoNewEnergy DQ 148.83 Deere DE DelphiTechsWi DLPHw 56.75 13.39 Dividend&IncomeFd DNI 6.29 DriveShack DS 26.19 DriveShackPfdB DSpB 11.90 EtnVncTxMgdEqu ETY 46.27 EmpresaDisCom EDN 25.70 EntergyLA Bd ELU 22.45 EvoquaWater AQUA 199.31 FactSet FDS 156.53 FairIsaac FICO 40.72 FidNatlFin FNF 25.69 FirstRepBkPfdH FRCpH 66.85 FirstCash FCFS 21.35 Forestar FOR 30.94 Gap GPS 32.04 Genpact G 25.75 GeorgiaPwrNt77 GPJA 34.54 GreatPlainsEner GXP 69.82 GrubHub GRUB 44.85 Hillenbrand HI 45.14 HollyFrontier HFC 174.91 HomeDepot HD 151.10 Honeywell HON 71.46 HyattHotels H 131.68 IDEX IEX IllinoisToolWks ITW 161.10 137.24 Ingredion INGR 58.57 InterContinentl IHG 59.14 InterXion INXN JapanSmlCap 13.53 JOF 58.64 Kaman KAMN 20.49 KenonHoldings KEN 192.89 L3 Tech LLL LibertyProperty LPT 45.40 90.84 LifeStorage LSI 34.05 LionsGate A LGF.A 32.40 LionsGate B LGF.B 14.76 Luxfer LXFR 129.27 MSCI MSCI 21.75 ManchesterUnited MANU 32.10 Marcus&Millichap MMI 153.94 Mastercard MA 70.85 Meredith MDP 42.69 MetropolitanBk MCB 57.37 MichaelKors KORS 16.75 ModelN MODN 17.86 MonmouthRealEst MNR 151.41 Moody's MCO 25.86 NTTDoCoMo DCM 3467.80 NVR NVR NatlRetailPropPfdF NNNpF 25.58 26.71 NatlStorage NSA 0.5 -0.1 ... 0.3 ... -0.4 -1.6 5.4 -0.6 0.7 -0.6 -0.4 1.0 0.2 ... 0.3 1.0 -1.8 0.6 -0.1 16.5 -0.1 -0.4 -0.1 1.6 -3.4 1.1 -0.2 -2.7 -1.8 0.2 0.1 -0.1 0.9 -1.0 0.2 1.1 0.4 -0.3 0.3 1.3 ... -3.7 2.2 ... -0.7 2.9 1.1 0.3 -0.4 1.0 -2.6 -1.1 ... -0.5 -0.1 -0.7 4.2 1.2 0.1 -0.3 -0.3 ... 2.2 1.6 1.1 0.5 -0.2 0.1 0.6 1.2 0.7 1.7 2.2 0.4 6.8 1.5 -0.6 0.2 0.8 0.9 1.0 -0.1 0.5 -0.6 0.2 10.7 0.9 ... 0.9 0.6 -0.2 0.2 0.1 0.6 0.6 52-Wk % Sym Hi/Lo Chg Stock NewGermanyFund GF NewIrelandFundRt IRLr NewMediaInvt NEWM NewRelic NEWR NexPointResidentl NXRT NextEraEnergyUn NEEpR NomadFoods NOMD NortelInversora NTL NuvBuildAmBdOpp NBD NuvDow30Dyn DIAX OwensCorning OC PSBusParksPfdX PSBpX PVH PVH PaycomSoftware PAYC PennyMacFinS PFSI PerkinElmer PKI PlanetFitness PLNT Praxair PX ProtoLabs PRLB PublicStoragePfC PSApC PublicStoragePfD PSApD PublicStoragePfE PSApE PublicStoragePfdF PSApF PureStorage PSTG RELX RENX RELX RELX ReinsGrp RGA RobertHalf RHI RoperTech ROP RoyceGlbValueTr RGT SabineRoyalty SBR SailPointTechs SAIL SanJuanBasin SJT SaratogaInvNts23 SAB SkechersUSA SKX Sony SNE StateStreetPfdD STTpD StateStreetPfdG STTpG StifelFinNts47 SFB SunComms SUI Telus TU ThorIndustries THO TransUnion TRU Tri-Continental TY TriNet TNET TriplePointNts22 TPVY TysonFoods TSN USG USG UnitedHealth UNH VF VFC Valhi VHI ValmontInds VMI Vantiv VNTV VectorGroup VGR Verso VRS VMware VMW Vonage VG WellsFargoPfdN WFCpN WellsFargoPfdT WFCpT WellsFargoPfdV WFCpV WellsFargoPfdW WFCpW WellsFargoPfdA WFCpX WellsFargoPfdAY WFCpY WellsFargoPfdO WFCpO WildHorseResource WRD Wiley B JW.B Wiley A JW.A Winnebago WGO XinyuanRealEst XIN Yelp YELP ZionsBancorpPfdH ZBpH 19.59 0.33 17.30 59.57 29.28 57.90 15.78 46.25 22.90 18.09 88.37 25.49 137.10 86.10 20.10 73.74 31.85 153.92 93.90 25.75 25.23 25.01 25.44 18.74 23.27 23.96 160.23 55.49 262.84 10.71 44.60 16.36 8.55 26.79 34.95 48.33 28.96 28.45 25.84 93.98 38.50 138.74 55.79 26.32 45.00 26.99 81.32 35.95 214.25 74.87 6.58 167.95 73.38 22.63 11.64 126.66 10.02 25.43 26.78 26.82 26.65 26.16 26.50 25.36 17.10 58.44 58.60 52.00 6.73 48.40 26.07 0.6 7.1 -0.4 0.2 -0.7 1.2 ... 0.6 0.2 0.1 0.3 ... -0.2 -1.7 0.3 0.3 ... -0.5 0.6 0.4 ... ... -0.2 -0.2 -0.2 -0.3 0.6 0.4 0.1 -0.8 -1.5 -1.5 1.1 2.2 3.4 0.3 -0.4 -0.5 1.3 -0.6 -0.1 -0.6 0.9 0.2 -1.4 3.1 1.0 -0.3 -0.1 -0.6 10.4 0.3 1.0 0.1 -2.5 1.6 ... ... -0.3 ... -0.3 -0.2 0.2 -0.1 0.3 2.6 2.5 -2.0 13.1 -0.4 0.2 NYSE lows - 49 AdvantageOil AAV AlticeUSA ATUS AnadarkoPeteUn AEUA AndeavorLog ANDX AnteroMidstream AM BellatrixExplor BXE BlkRkFL Muni20 BFO BuckeyePtrs BPL CenterCoastMLP CEN CenturyLink CTL ClearBridgeAmEn CBA ClearBridgeEnMLPFd CEM ClearbridgeEngyMLP EMO ClearbridgeEnMLPTR CTR Despegar.com DESP EP Energy EPE EQT Midstream EQM EXCO Res XCO EastmanKodakWt KODK.WS.A EtnVncFRIncmPlus EFF EtnVncFR2022 EFL EnbridgeEnergy EEQ EnbridgeEnPtrs EEP FourSeasonsEduc FEDU GenesisHealthcare GEN 4.70 18.65 32.10 43.19 25.71 1.81 14.82 45.82 9.02 13.56 7.15 12.42 10.14 10.67 24.81 1.73 66.72 0.75 0.00 16.06 9.37 12.27 12.52 9.01 0.83 -2.1 -2.1 -3.4 -1.7 -2.2 -7.2 -1.0 -2.1 -2.3 -1.6 -2.6 -2.3 -1.8 -3.0 -4.4 -3.2 -2.0 -4.1 -94.5 0.2 -1.5 -4.4 -4.3 -4.2 -3.8 s s s s s s s t 52-Wk % Sym Hi/Lo Chg GS MLPEnergyRen GER GrupoTelevisa TV HamiltonBeach HBB HessMidstream HESM InvescoMuniOpp VMO JianpuTech JT JustEnergy JE KingswayFin KFS NuSTAREnergy NS NuSTAR GP NSH NuvEMDebt2022 JEMD NuvMN QualMuni NMS NuvNJ MuniVal NJV NuvNY MuniVal2 NYV SEACOR Marine SMHI Sea SE SpectraEnerPtrs SEP SummitMidstream SMLP Switch SWCH TallgrassEnPtrs TEP TortoiseEnerInf TYG WesternGasEquity WGP WideOpenWest WOW XAIOctagonFR XFLT 5.51 18.06 25.46 18.32 12.29 4.75 4.13 4.90 27.11 14.10 9.77 14.68 14.17 14.19 11.91 12.52 39.35 18.50 17.30 41.92 25.08 35.11 9.43 9.95 -2.3 -1.8 -7.6 1.2 -1.0 2.9 -4.8 -6.2 -2.3 -3.1 -1.4 -0.7 -0.4 -0.5 -1.0 -5.0 -1.2 -2.9 -1.3 -2.3 -1.8 -2.7 -0.4 -0.8 NYSE Arca highs - 152 ARKIndlInnovation ARKQ ARKInnovationETF ARKK ARKWebx.0ETF ARKW AdvShFocusedEqu CWS AdvShNewTech FNG S&PVEQTOR VQT ColumbiaIndiaCnsmr INCO ColumbiaIndiaSC SCIN ColumbiaSustUSEqu ESGS CnsmrDiscSelSector XLY CS FI LC Grwth FLGE DeltaShS&P500Mgd DMRL DirexPharmBl3X PILL DirexS&P500Bl3 SPXL DirexS&P500Bull2X SPUU DirexS&P500Bl1.25 LLSP DirexSCBull2 SMLL DirexTechBull3 TECL ETF Exposure TETF ETFMG PrimeCyber HACK ETFMG PrimeMob IPAY S&P2xDivAristoETN SDYL FidelityLowVol FDLO FidelityMSCICnDisc FDIS FidelityMSCIIT FTEC FidelityMomFactor FDMO FT ConsDscAlpDx FXD FT DJ Internet FDN FlexShSelBdFd BNDC FlexGlbQualRealEst GQRE FlexShQualDivDef QDEF FlexShQualityDiv QDF FrankFTSEMexico FLMX GlbX GuruIndex GURU GlbXSciBetaUS SCIU GSActiveBetaUSLC GSLC GS Active US SC GSSC GSHedgeIndVIP GVIP GuggDefEqty DEF GuggS&P400PrGrwth RFG GuggInsider NFO GuggS&P500Top50 XLG GuggS&PGlblWtr CGW GuggS&PSC600EW EWSC IQHedgeMktNeut QMN IQRealReturn CPI iShCoreDivGrowth DGRO iShGrwthAllocation AOR iShCoreS&P500 IVV iShS&PTotlUSStkMkt ITOT iShUSConsumerSvcs IYC iShU.S.Technology IYW iShUSMedDevices IHI iShEdgeMSCIUSASize SIZE iShMSCIFrontier100 FM iShMSCIIrelandCap EIRL iShMSCIKLD400Soc DSI iShMornLCGrowth JKE iShMornMCGrowth JKH iShRussell1000Gwth IWF iShRussell1000 IWB iShRussell2000Gwth IWO iShRussell3000 IWV iShRussellTop200Gr IWY iShRussellTop200 IWL iShS&P100 OEF iShS&PMC400Growth IJK iShS&P500Growth IVW iShIntlDevProperty WPS iShGlobalConsDiscr RXI iShNATech-Mult IGN iShNorthAmerTech IGM 34.83 37.41 46.50 30.59 24.13 153.68 47.58 22.25 30.78 95.09 221.07 53.80 27.80 42.46 47.33 34.95 49.70 115.60 18.16 31.72 34.95 81.37 29.75 37.67 50.99 31.21 40.16 111.41 28.51 63.42 42.95 43.51 25.44 29.00 30.62 52.10 43.13 53.54 46.16 152.91 62.24 185.50 35.88 54.06 25.74 27.78 33.73 45.83 262.54 59.81 171.13 166.09 177.59 81.91 33.07 46.96 96.06 155.00 200.61 133.12 145.24 185.33 154.76 72.43 59.98 115.54 213.67 151.21 39.39 106.67 48.69 171.90 0.5 0.9 0.3 0.8 -3.1 0.7 0.5 1.0 0.3 0.1 0.1 1.0 -2.2 -0.1 ... 0.1 3.5 ... -0.1 0.6 -0.8 0.3 0.2 0.1 -0.1 -0.1 -0.1 -0.1 13.5 -0.3 ... ... -0.3 -0.3 -0.2 ... -0.1 -0.5 0.3 -0.3 ... 0.1 -0.2 0.2 0.3 0.3 0.1 -0.2 ... ... ... -0.1 -0.1 0.1 0.2 -0.1 0.1 0.2 -0.2 ... ... -0.5 -0.1 0.1 ... ... -0.3 ... -0.3 -0.3 ... ... Net Sym Close Chg TargaResources TRGP 42.12 Target TGT 55.84 TataMotors TTM 32.19 TechnipFMC FTI 26.69 TeckRscsB TECK 22.96 TelecomArgentina TEO 34.72 TelecomItalia TI 8.37 TelecomItalia A TI.A 7.03 TeledyneTech TDY 183.80 Teleflex TFX 267.94 TelefonicaBras VIV 15.17 Telefonica TEF 10.10 TelekmIndonesia TLK 31.23 Tenaris TS 28.93 Teradyne TER 42.98 TevaPharm TEVA 14.65 Textron TXT 53.48 ThermoFisherSci TMO 193.92 ThomsonReuters TRI 44.30 ThorIndustries THO 136.25 3M MMM 234.00 Tiffany TIF 93.29 TimeWarner TWX 89.07 Toll Bros TOL 48.18 Torchmark TMK 85.74 Toro TTC 62.93 TorontoDomBk TD 58.07 Total TOT 56.37 TotalSystem TSS 74.05 ToyotaMotor TM 125.98 TransCanada TRP 49.74 TransDigm TDG 273.99 TransUnion TRU 55.59 Travelers TRV 130.48 TurkcellIletism TKC 9.13 TurquoiseHill TRQ 3.02 Twitter TWTR 21.82 TylerTech TYL 176.26 TysonFoods TSN 81.24 UBS Group UBS 17.14 UDR UDR 39.50 UGI UGI 47.89 US Foods USFD 27.29 UltraparPart UGP 22.38 Unilever UN 57.76 Unilever UL 56.65 UnionPacific UNP 117.16 UnitedContinental UAL 59.09 UnitedMicro UMC 2.62 UPS B UPS 114.54 UnitedRentals URI 153.36 US Bancorp USB 51.72 UnitedTech UTX 117.12 UnitedHealth UNH 212.40 UniversalHealthB UHS 100.74 UnumGroup UNM 53.94 VEREIT VER 8.04 VF VFC 73.44 Visa V 112.38 VailResorts MTN 227.30 Vale VALE 10.91 ValeantPharm VRX 16.48 ValeroEnergy VLO 82.12 Vantiv VNTV 73.14 VarianMed VAR 109.46 Vedanta VEDL 18.84 VeevaSystems VEEV 62.97 Ventas VTR 63.86 Verizon VZ 47.66 VistraEnergy VST 19.02 VMware VMW 126.21 VornadoRealty VNO 76.29 VoyaFinancial VOYA 41.86 VulcanMatls VMC 119.63 WABCO WBC 147.16 WEC Energy WEC 68.77 W.P.Carey WPC 71.13 Wabtec WAB 72.71 Wal-Mart WMT 96.62 WasteConnections WCN 68.75 WasteMgt WM 80.85 Waters WAT 196.71 Watsco WSO 164.48 Wayfair W 68.76 WellCareHealth WCG 203.00 WellsFargo WFC 53.95 Welltower HCN 67.47 WestPharmSvcs WST 97.21 WestarEnergy WR 56.07 WestAllianceBcp WAL 54.72 WesternGasEquity WGP 35.17 WesternGasPtrs WES 44.27 WesternUnion WU 19.48 WestlakeChem WLK 94.19 WestpacBanking WBK 23.97 WestRock WRK 58.69 Weyerhaeuser WY 35.53 WheatonPrecMet WPM 21.18 Whirlpool WHR 165.00 Williams WMB 27.98 WilliamsPartners WPZ 35.35 Wipro WIT 5.30 WooriBank WF 44.10 Wyndham WYN 108.87 XPO Logistics XPO 76.79 XcelEnergy XEL 50.86 Xerox XRX 28.23 Xylem XYL 67.64 YPF YPF 22.76 YumBrands YUM 79.58 YumChina YUMC 40.76 ZTO Express ZTO 16.20 ZayoGroup ZAYO 35.64 ZimmerBiomet ZBH 113.39 Zoetis ZTS 71.54 -1.27 -0.04 -0.55 -0.23 -0.52 -0.23 -0.18 -0.19 -1.34 0.23 -0.01 -0.04 -0.57 -0.58 -0.66 1.03 0.18 0.41 0.05 -0.82 2.62 0.25 -0.43 -0.22 0.58 0.16 -0.31 -0.06 -0.46 -0.07 -0.13 -1.66 0.47 0.65 -0.10 -0.07 -0.60 -0.61 0.77 -0.12 -0.17 0.44 -0.21 -0.23 -0.10 -0.20 -1.09 -0.34 -0.03 1.40 0.20 -0.11 0.21 -0.11 0.26 -0.15 -0.02 -0.45 0.41 -4.74 -0.07 -0.09 -0.13 0.74 0.59 -0.21 0.16 -0.82 0.65 -0.26 1.99 0.14 -0.20 -2.69 1.37 0.24 -0.39 -0.44 ... -0.14 0.47 0.76 ... -0.29 1.27 -0.14 -0.79 -0.25 -0.09 0.05 -0.98 -0.78 -0.17 -0.40 -0.17 -0.17 -0.64 -0.06 -2.82 -0.09 -0.33 0.04 -0.42 -0.20 0.01 0.15 -0.26 -0.05 -0.25 0.40 0.04 -0.27 0.05 0.32 0.25 NASDAQ AGNC Invt AGNC 20.24 ANGI Homesvcs ANGI 11.81 Ansys ANSS 150.88 ASML ASML 184.72 s Abiomed ABMD 198.45 ActivisionBliz ATVI 65.74 s AdobeSystems ADBE 185.00 AdvMicroDevices AMD 11.55 AkamaiTech AKAM 55.35 Stock The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. Stock Stock ... -0.17 -1.03 -1.65 -1.29 -0.29 0.54 0.17 -0.44 Stock AlexionPharm ALXN 107.75 s AlignTech ALGN 262.42 Alkermes ALKS 50.36 AlnylamPharm ALNY 131.44 s Alphabet C GOOG 1054.21 s Alphabet A GOOGL 1072.01 Altaba AABA 72.07 s Amazon.com AMZN 1195.83 Amdocs DOX 64.86 Amerco UHAL 354.45 AmerAirlines AAL 48.42 Amgen AMGN 169.71 AnalogDevices ADI 87.45 Apple AAPL 174.09 ApplMaterials AMAT 56.94 ArchCapital ACGL 96.28 Atlassian TEAM 51.55 s Autodesk ADSK 130.24 ADP ADP 110.14 Baidu BIDU 247.02 BankofOzarks OZRK 44.28 Biogen BIIB 311.73 BioMarinPharm BMRN 82.96 s BlueBuffaloPet BUFF 30.24 s bluebirdbio BLUE 167.75 BrighthouseFin BHF 57.61 s Broadcom AVGO 284.62 CA CA 32.63 CDK Global CDK 68.87 CDW CDW 66.45 CH Robinson CHRW 79.54 CME Group CME 142.07 CSX CSX 50.66 CadenceDesign CDNS 45.14 CaesarsEnt CZR 13.15 Carlyle CG 20.80 Cavium CAVM 87.60 s CboeGlobalMkts CBOE 120.50 Celgene CELG 103.33 CentennialRsc CDEV 20.03 Cerner CERN 69.52 CharterComms CHTR 321.84 CheckPoint CHKP 104.72 ChinaLodging HTHT 115.36 CincinnatiFin CINF 73.41 Cintas CTAS 147.96 s CiscoSystems CSCO 36.87 CitrixSystems CTXS 86.15 Cognex CGNX 143.23 CognizantTech CTSH 72.40 Coherent COHR 311.20 Comcast A CMCSA 35.55 CommerceBcshrs CBSH 56.80 CommScope COMM 36.20 s Copart CPRT 41.77 CoStar CSGP 309.49 Costco COST 172.61 Ctrip.com CTRP 46.81 CypressSemi CY 16.95 CyrusOne CONE 61.57 DISH Network DISH 49.65 s DentsplySirona XRAY 68.00 DiamondbkEner FANG 107.26 DiscovComm C DISCK 16.39 DiscovComm A DISCA 17.47 DollarTree DLTR 98.20 E*TRADE ETFC 45.13 EXACT Sci EXAS 58.42 EastWestBncp EWBC 57.83 eBay EBAY 35.99 EchoStar SATS 59.29 ElbitSystems ESLT 145.05 ElectronicArts EA 106.99 Equinix EQIX 478.92 Ericsson ERIC 6.40 ErieIndemnity A ERIE 123.00 Exelixis EXEL 26.38 Expedia EXPE 126.68 ExpeditorsIntl EXPD 60.25 ExpressScripts ESRX 61.47 F5Networks FFIV 123.70 s Facebook FB 183.03 Fastenal FAST 48.95 FifthThirdBncp FITB 28.40 s FirstSolar FSLR 61.65 Fiserv FISV 128.16 Flex FLEX 18.65 FlirSystems FLIR 47.08 s Fortinet FTNT 41.83 Gaming&Leisure GLPI 35.74 Garmin GRMN 61.70 GileadSciences GILD 71.70 Goodyear GT 30.89 Grifols GRFS 22.53 GpoFinGalicia GGAL 54.88 HD Supply HDS 35.08 Hasbro HAS 93.70 HenrySchein HSIC 69.89 Hologic HOLX 40.77 JBHunt JBHT 103.64 HuntingtonBcshs HBAN 13.50 IAC/InterActive IAC 133.63 IdexxLab IDXX 155.43 IHSMarkit INFO 43.87 IPG Photonics IPGP 240.65 IRSA Prop IRCP 57.00 IcahnEnterprises IEP 53.00 Icon ICLR 116.50 s Illumina ILMN 223.84 Incyte INCY 97.86 Intel INTC 44.49 InteractiveBrkrs IBKR 55.57 Intuit INTU 154.77 s IntuitiveSurgical ISRG 403.70 IonisPharma IONS 52.48 JD.com JD 38.66 JackHenry JKHY 114.96 JazzPharma JAZZ 138.18 JetBlue JBLU 19.68 s JunoTherap JUNO 61.18 KLA Tencor KLAC 104.39 KraftHeinz KHC 79.61 LKQ LKQ 38.38 LamResearch LRCX 210.93 LamarAdv LAMR 74.93 LibertyBroadbandA LBRDA 84.69 52-Wk % Sym Hi/Lo Chg Stock iShDowJonesUS IYY iShRussellMCGrowth IWP HancockTech JHMT JPM DivRetUS Eq JPUS JPM US Dividend JDIV OShRussSC Qu OUSM OShFTSEUSQuality OUSA OppGlbESGRevenue ESGF PIMCO DynMultIn MFDX PIMCO DynMultUS MFUS PwrShRussTop200 EQWL PwrShRussTop200G PXLG PwrShRuss2000Grw PXSG PwrShS&P500xRate XRLV PwrShS&P500Qual SPHQ PwrShS&PIntDev IDLV PwrShS&P400LowVol XMLV ProShS&P500xHlth SPXV ProShShtVIXST SVXY ProShrUlCnsmr UCC ProShrUltraDow30 DDM ProShrUltraQQQ QLD ProShrUltraS&P SSO ProShrUlSmC600 SAA ProShrUlTech ROM ProShUltDow30 UDOW ProShUltS&P500 UPRO REXGoldHdgS&P500 GHS RenaissanceIPOETF IPO SPDRFactSetInnTech XITK SPDRGlobalDow DGT SPDRMFSSysGrowth SYG SPDRMFSSysValueEqu SYV SPDRMSCIACWIIMI ACIM SPDRS&P500Growth SPYG SPDR Ptf TSM SPTM SPDRRuss1000Yd ONEY SPDRS&P600SmallCap SLY SPDRS&PCapitalMkts KCE SPDRS&P500Fossil SPYX SPDRS&PGlbDividend WDIV SPDRS&PInternetETF XWEB SPDRS&PTechHardwr XTH SPDRSSgAGlbAll GAL SchwabFundUSBrd FNDB Schwab1000Index SCHK SchwabUS BrdMkt SCHB SchwabUS Div SCHD SchwabUS LC SCHX SchwabUS LC Grw SCHG SPDR DJIA Tr DIA SPDR S&P 500 SPY Whiskey&SpiritsETF WSKY TechSelectSector XLK UBS FIEnhLCGrw FBGX VanEckEgypt EGPT VanEckGaming BJK VanEckIndiaSC SCIF VanEckMornWideMoat MOAT VanEckRetail RTH VangdInfoTech VGT VangdCnsmrDiscr VCR VangdSC Grwth VBK VangdGrowth VUG VangdLC VV VangdMegaCap MGC VangdMegaGrwth MGK VangdMC VO VangdMCGrowth VOT VangdS&P500 VOO VangdS&P500 Grw VOOG VangdTotalStk VTI VelocityShVIXShrt XIVH WBITacticalLCV WBIF WisdTrCBOES&P500 PUTW WisdTrUSEarn500 EPS WisdTrUSLCDivFd DLN WisdTrUSTotalDivFd DTD WisdTrUSTotalEarn EXT XtrkrsMSCIAPxJapan DBAP 130.67 118.95 42.41 69.73 25.39 26.77 30.99 30.93 26.39 26.73 51.54 45.44 31.75 33.09 29.63 33.87 45.87 54.43 114.95 73.80 120.60 74.01 103.76 97.41 91.99 82.27 129.31 33.25 29.03 82.83 83.16 78.58 64.30 78.16 32.68 32.46 72.96 134.19 54.89 63.38 69.49 75.39 82.52 37.99 35.99 25.63 63.12 49.41 62.34 69.67 236.33 260.75 33.00 64.58 220.25 32.03 45.33 64.78 41.18 86.52 167.93 150.24 160.21 139.67 119.81 89.67 110.41 151.77 127.36 239.53 135.66 134.29 71.00 27.56 29.97 30.14 89.29 90.18 31.00 29.50 -0.1 -0.3 -0.1 ... 0.2 -0.1 0.1 0.5 0.2 0.6 -0.2 ... -0.7 0.2 ... -0.4 ... ... 0.1 0.1 0.3 -0.1 -0.1 -0.4 ... -0.2 -0.1 0.3 -2.7 -0.6 -0.6 ... -0.1 -0.1 0.1 -0.2 -0.1 -0.6 0.1 0.1 -0.1 0.2 -0.2 -0.3 -0.1 -0.1 -0.1 0.1 -0.1 ... 0.1 ... 0.6 ... -0.1 3.6 -0.5 0.2 0.2 0.3 -0.1 ... -0.6 -0.1 ... ... ... -0.2 -0.4 ... 0.1 -0.1 1.0 0.2 ... -0.1 0.1 0.2 0.2 1.1 NYSE Arca lows - 27 iPathS&P500VIXST VXX BarclaysETN+Select ATMP CSX2xAlerianMLPETN AMJL DirexS&P500Br3 SPXS DirexS&P500Br1 SPDN DirexTechBear3 TECS DirexZacksMLPHiIn ZMLP ETRACS2xMLevS&PMLP MLPZ GlbX MLP MLPA ProShShtDow30 DOG ProShShortQQQ PSQ ProShShrtS&P500 SH ProShUltVIXST UVXY ProShUltShtDow30 SDOW ProShUltProShS&P SPXU ProShrUSCnsmrSvc SCC ProShUltShDow30 DXD ProShUltShtQQQ QID ProShUltShtS&P500 SDS ProShrUlShtSmC600 SDD ProShrUSTech REW ProShsVIXSTFut VIXY SpinFieldUVAUncons FFIU TeucriumWheatFund WEAT USAACoreST USTB VanEckHiIncmInfra YMLI 31.42 19.60 17.05 32.58 31.52 6.80 15.38 35.30 9.07 15.66 35.44 31.04 12.99 22.52 12.37 26.75 9.57 13.32 43.43 16.03 16.07 26.06 24.91 6.05 50.02 12.56 ... -1.1 -3.6 0.1 ... ... -1.0 -2.5 -1.4 -0.1 ... ... -0.4 -0.4 0.1 -1.4 -0.1 ... 0.1 1.2 0.1 -0.2 ... -1.1 ... -1.3 Net Sym Close Chg -0.86 7.66 -0.69 -1.41 13.60 15.49 -0.86 9.83 -0.10 0.39 -0.14 -0.41 -1.70 -0.88 -0.97 0.62 -0.68 0.74 0.12 -2.40 0.06 2.76 0.25 0.25 -0.05 0.32 2.24 ... 0.41 0.08 -0.13 0.21 -0.24 -0.46 -0.25 -0.25 -1.20 0.37 -1.17 -0.73 -1.05 -7.14 0.70 -5.26 0.90 0.25 0.38 -0.10 -1.15 0.13 -7.22 -0.32 0.14 0.77 -0.69 -0.70 0.99 -0.83 -0.44 -0.36 -0.22 0.49 -3.04 -0.07 -0.03 -0.18 0.26 -0.85 0.19 0.15 -0.32 1.42 -0.95 4.85 -0.04 0.60 0.53 -0.13 0.37 0.29 0.51 0.25 -0.12 0.20 1.04 0.03 -0.44 0.01 -0.08 -0.23 -0.09 -0.76 0.22 -0.59 -2.02 0.05 -0.95 -0.08 -0.10 -0.52 0.04 -2.10 0.62 0.10 -1.40 -1.42 -0.50 -0.56 8.98 -0.92 -0.26 -0.04 0.86 5.55 -2.05 -0.55 0.39 -0.52 -0.16 -1.67 -0.65 -0.15 0.33 -5.90 -0.76 -1.84 17.91 s s s s s s s NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO ... Kingstone NYSE American highs - 5 CMCL DPW GLOW TRT UQM 7.96 -0.4 3.50 163.0 0.65 67.4 8.40 2.4 1.75 5.1 NYSE American lows - 6 BioPharmX ContangoO&G KelsoTechs LevelBrands NTN Buzztime PlatinumGrpMtls s BPMX MCF KIQ LEVB NTN PLG 0.11 2.77 0.29 5.05 5.23 0.32 -7.2 -5.7 -10.4 -8.2 1.1 -12.8 Nasdaq highs - 166 5.30 ATA ATAI Abiomed ABMD 200.28 AdobeSystems ADBE 185.84 24.55 AirT AIRT 263.90 AlignTech ALGN 15.00 AllenaPharm ALNA 3.75 AlliedHealthcare AHPI Alphabet C GOOG 1055.46 Alphabet A GOOGL 1073.04 Amazon.com AMZN 1213.41 AmerSoftware AMSWA 12.63 38.93 AmplifyOnlineRet IBUY 1.21 AndinaAcqnIIRt ANDAR 29.79 ArenaPharm ARNA 19.73 Arsanis ASNS 69.33 AspenTech AZPN 130.92 Autodesk ADSK 26.50 AxoGen AXGN 34.98 BldrsAsia50ADS ADRA 26.20 B.RileyNts2027 RILYZ 5.45 Bazaarvoice BV 133.14 Bio-Techne TECH 2.48 BioanalyticalSys BASI BldrsDev100 23.42 ADRD BlueBuffaloPet BUFF 30.42 170.30 bluebirdbio BLUE 26.30 BostonOmaha BOMN Broadcom AVGO 285.68 35.81 Bruker BRKR 51.46 CEVA CEVA 15.25 CanterburyPark CPHC 7.43 CareDx CDNA 3.93 CatalystPharma CPRX CboeGlobalMkts CBOE 121.02 5.20 CentralEurMedia CETV 1.35 Charles&Colvard CTHR 49.55 ChemungFinl CHMG 7.24 ChromaDex CDXC 37.09 CiscoSystems CSCO 28.59 ClearBrLCGrw LRGE 69.60 ColumbiaSportswr COLM ConsldWater 13.95 CWCO 35.99 Control4 CTRL 42.80 Copart CPRT 12.32 CoriumIntl CORI 11.23 Crocs CROX 7.05 Cytosorbents CTSO 16.49 DataIO DAIO 68.21 DentsplySirona XRAY 1.20 ENDRA LifeWt NDRAW 77.10 Ebix EBIX 27.72 ElectroSci ESIO 59.10 EsperionTherap ESPR 183.73 Facebook FB FidelityNasdComp ONEQ 271.38 63.10 FirstSolar FSLR 49.92 FT CapStrength FTCS 45.75 FT CloudComp SKYY 51.74 FT DevIntlEquity RNDM 44.35 FT DevMktsXUS FDTS 50.36 FT GerAlpha FGM 23.04 FT HighIncome FTHI 60.95 FT LC GrwthAlpha FTC 39.16 FT MC GrwthAlpha FNY 65.18 FT MCGrAlpDX FAD 22.78 FT NasdCybersec CIBR 32.28 FT TotalUSMkt TUSA 42.24 Fortinet FTNT 8.70 Funko FNKO 18.93 GlbXConsciousCos KRMA 19.17 GlbXMillThematic MILN 33.77 GoldenEnt GDEN 4.30 GreatElmCap GEC 213.17 HinghamSvg HIFS 11.11 I-AM Capital IAM 224.25 Illumina ILMN 16.70 InflaRx IFRX 126.47 Inogen INGN Intricon 17.80 IIN 405.05 IntuitiveSurgical ISRG 57.91 iRhythmTechs IRTC 53.21 iShCoreS&PUSGrowth IUSG 95.95 iShSelectDividend DVY 39.84 iShEurDevRealEst IFEU 30.08 iShIntlDevRealEst IFGL 57.02 iShMSCIUSAESGOpt ESGU 38.39 JanusS/MC GrwAlph JSMD 0.55 JensynAcqn Rt JSYNR 63.45 JunoTherap JUNO ... -0.6 0.3 9.1 3.0 9.5 -5.1 1.3 1.5 0.8 1.7 -0.4 1.8 -2.1 4.2 -0.5 0.6 -0.8 0.1 0.7 13.0 0.6 -0.9 -0.3 0.8 ... 6.1 0.8 1.1 2.0 ... 10.0 3.1 0.3 1.0 7.2 -1.3 0.4 1.0 0.1 0.1 -2.3 -3.0 -1.6 -0.9 -1.2 1.4 5.6 0.7 -16.2 0.1 -2.3 3.8 0.1 -0.1 1.7 0.2 0.3 0.5 -1.1 ... -0.2 -0.1 -0.7 ... 0.3 ... -0.2 3.0 ... -0.6 -2.4 ... 4.5 1.3 4.2 9.2 0.8 -1.1 1.4 -0.7 ... 0.3 0.1 -0.4 ... -0.1 -5.6 -2.7 Net Sym Close Chg LibertyBroadbandC LBRDK 85.96 -1.96 LibertyGlobal C LBTYK 29.01 -0.68 LibertyGlobal A LBTYA 29.92 -0.78 LibertyLiLAC C LILAK 21.21 -0.47 LibertyLiLAC A LILA 21.08 -0.57 LibertyQVC A QVCA 24.31 -0.51 LibertyVenturesA LVNTA 55.50 -2.16 LibertyFormOne C FWONK 37.24 -1.62 LibertyFormOne A FWONA 35.50 -1.65 LibertyBraves A BATRA 22.26 -0.37 LibertyBraves C BATRK 22.35 -0.33 LibertySirius A LSXMA 40.86 0.11 LibertySirius C LSXMK 40.85 0.10 LincolnElectric LECO 88.19 0.58 LogitechIntl LOGI 35.46 -0.16 LogMeIn LOGM 119.45 0.40 lululemon LULU 66.13 -0.66 MKS Instrum MKSI 103.15 -2.40 MarketAxess MKTX 188.56 0.09 Marriott MAR 126.93 0.43 MarvellTech MRVL 23.38 -0.42 MatchGroup MTCH 30.61 -0.30 Mattel MAT 18.23 -0.28 MaximIntProducts MXIM 53.29 -0.56 MelcoResorts MLCO 26.19 -0.31 MercadoLibre MELI 272.62 1.24 MicrochipTech MCHP 88.93 -2.04 MicronTech MU 48.05 -1.63 Microsemi MSCC 54.54 -0.53 Microsoft MSFT 83.87 0.61 Middleby MIDD 120.22 2.18 Momo MOMO 30.90 -1.24 Mondelez MDLZ 42.47 0.32 MonsterBev MNST 61.77 0.02 Mylan MYL 36.46 -0.91 NXP Semi NXPI 114.53 -0.12 Nasdaq NDAQ 77.23 -0.02 NatlInstruments NATI 44.24 -0.14 NektarTherap NKTR 51.97 -0.62 NetApp NTAP 56.23 -0.18 Netease NTES 333.53 -10.68 Netflix NFLX 195.05 -0.70 Neurocrine NBIX 71.30 0.12 NewsCorp B NWS 15.95 0.05 NewsCorp A NWSA 15.74 -0.03 Nordson NDSN 128.06 -0.57 NorthernTrust NTRS 94.11 -0.15 NorwegCruise NCLH 55.61 0.11 NVIDIA NVDA 214.14 -2.82 OReillyAuto ORLY 216.34 0.08 OldDomFreight ODFL 123.34 0.28 ON Semi ON 21.11 -0.42 OpenText OTEX 33.10 0.08 PTC PTC 65.46 -0.31 Paccar PCAR 66.90 -0.04 PacWestBancorp PACW 44.72 -0.23 Paychex PAYX 64.68 -0.01 PayPal PYPL 77.84 -0.73 People'sUtdFin PBCT 18.17 0.05 PilgrimPride PPC 35.63 0.19 Priceline PCLN 1763.40 4.98 Qiagen QGEN 31.82 -0.38 Qorvo QRVO 79.74 -0.88 Qualcomm QCOM 68.14 -0.77 RandgoldRscs GOLD 97.23 0.56 RegenPharm REGN 374.53 -10.32 RossStores ROST 71.33 0.01 RoyalGold RGLD 86.38 -0.43 Ryanair RYAAY 120.40 -1.12 SBA Comm SBAC 172.35 2.63 SEI Investments SEIC 68.42 -0.06 Sina SINA 105.32 -3.90 SS&C Tech SSNC 40.90 0.02 SVB Fin SIVB 213.41 0.31 ScrippsNetworks SNI 79.73 -0.64 Seagate STX 39.08 -1.21 SeattleGenetics SGEN 58.63 -0.31 Shire SHPG 146.21 -1.65 SignatureBank SBNY 129.36 -0.21 SiriusXM SIRI 5.44 ... Skyworks SWKS 107.22 -2.53 Splunk SPLK 82.09 -2.01 Starbucks SBUX 55.91 -0.89 SteelDynamics STLD 37.36 -0.13 Symantec SYMC 28.84 0.28 Synopsys SNPS 89.23 -0.92 TD Ameritrade AMTD 49.25 0.13 T-MobileUS TMUS 62.78 1.10 TRowePrice TROW 97.97 0.09 TakeTwoSoftware TTWO 117.79 -0.09 Tesla TSLA 316.81 1.26 TexasInstruments TXN 98.63 -0.67 TractorSupply TSCO 64.72 0.43 Trimble TRMB 42.42 0.31 21stCenturyFoxA FOXA 30.39 -0.08 21stCenturyFoxB FOX 29.70 -0.08 UltaBeauty ULTA 206.69 -3.68 UltSoftware ULTI 195.93 -2.41 UnivDisplay OLED 185.85 -5.10 VEON VEON 4.13 0.01 VeriSign VRSN 117.09 -0.15 VeriskAnalytics VRSK 94.22 0.34 VertxPharm VRTX 148.55 2.00 Viacom B VIAB 26.54 0.25 Viacom A VIA 32.60 -0.10 Vodafone VOD 30.45 -0.14 WPP WPPGY 84.43 0.81 WalgreensBoots WBA 69.39 -0.89 Weibo WB 114.37 -3.12 WesternDigital WDC 86.55 -6.23 WillisTowers WLTW 158.50 -1.02 Workday WDAY 114.94 -1.20 WynnResorts WYNN 158.49 -0.93 Xilinx XLNX 72.49 -0.39 YY YY 113.39 -6.64 Yandex YNDX 34.43 -0.57 ZebraTech ZBRA 108.73 -0.40 Zillow A ZG 42.73 0.54 Zillow C Z 42.59 0.56 ZionsBancorp ZION 46.42 0.07 52-Wk % Sym Hi/Lo Chg Stock VelocityShVIXTail BSWN CaledoniaMining DigitalPower Glowpoint TrioTech UQM Tech Stock 47.19 27.84 25.86 30.81 -0.77 -0.76 -0.13 -0.35 52-Wk % Sym Hi/Lo Chg KINS LGI Homes LGIH LendingTree TREE LivaNova LIVN MGC Diagnostics MGCD MarathonPatent MARA MidPennBancorp MPB Mindbody MB MonotypeImaging TYPE NICE NICE NatlEnerSvs NESR NationalVision EYE NektarTherap NKTR NeptuneTech NEPT Nutanix NTNX NuvNasd100Dyn QQQX OakValleyBncp OVLY Overstock OSTK PDLCommBncp PDLB PatriotNatBncp PNBK PayPal PYPL pdvWireless PDVW PennNational PENN PierisPharm PIRS PinnacleEnt PNK PwrShDWAMom DWLV PwrShDWA Mom PDP PwrShDynHlthcr PTH PwrShFTSEIntlLow IDLB PwrShGlbWater PIO PwrShNasdInternet PNQI PwrShQQQ 1 QQQ PwrShRuss1000Low USLB PwrShS&P ScHealth PSCH PwrShS&PSC Util PSCU PwrShWaterRscs PHO PreformedLine PLPC ProShUltPrQQQ TQQQ PyxisTankers PXS Qualys QLYS RMR Group RMR RedRockResorts RRR Resonant RESN SBA Comm SBAC SPAR Group SGRP SevenStarsCloud SSC SierraOncology SRRA Sigmatron SGMA StarBulkNts22 SBLKZ StarsGroup TSG StitchFix SFIX TRowePrice TROW TabulaRasaHlth TRHC TechTarget TTGT TowerSemi TSEM TrilliumTherap TRIL tronc TRNC 2U TWOU US GlobalInv GROW UTStarcom UTSI VangdLTCorpBd VCLT VangdRuss1000 VONE VangdRuss1000Grw VONG VangdRuss3000 VTHR VangdRuss2000Grw VTWG VSInverseVIXSTerm XIV VeriSign VRSN VeriskAnalytics VRSK VicShIntlVolWtd CIL VicShUS500EnhVol CFO VicShUS500Vol CFA VidentCoreUSEquity VUSE WestBancorp WTBA WestellTech WSTL Workday WDAY WynnResorts WYNN Zynga ZNGA 19.35 68.79 307.00 86.90 10.98 10.03 34.20 36.25 25.60 87.88 9.99 32.18 52.86 1.55 34.85 24.48 18.15 65.70 16.74 18.25 79.39 36.00 28.31 6.65 29.67 31.18 51.73 70.29 29.95 25.65 117.64 156.56 30.57 97.87 56.30 29.89 82.42 141.02 5.25 62.35 60.70 29.56 6.72 172.93 1.66 4.84 2.74 10.25 25.00 22.89 23.91 99.01 36.80 13.75 35.65 13.30 17.65 69.27 6.90 4.93 95.34 119.76 136.46 119.88 134.39 119.88 117.78 94.51 40.20 47.36 47.41 32.46 25.95 4.60 116.89 160.00 4.18 0.3 0.7 0.7 0.4 24.1 9.4 3.0 3.7 0.4 1.3 ... 6.1 -1.2 14.8 1.0 0.2 3.2 -9.3 3.9 2.0 -0.9 -4.7 0.4 -3.5 1.1 -0.1 -0.1 -0.1 0.4 ... -0.3 ... 0.1 -1.0 1.0 ... 2.3 -0.2 26.6 -4.0 -0.1 1.6 -4.8 1.5 15.1 -4.8 -0.8 1.3 0.1 -2.0 24.0 0.1 -1.7 1.3 -0.5 2.9 1.0 -2.4 4.9 29.0 ... -0.1 ... ... -0.4 0.3 -0.1 0.4 0.3 0.1 0.2 -0.3 1.4 4.9 -1.0 -0.6 2.2 Nasdaq lows - 30 A-MarkPrecMetals AMRK AkersBiosciences AKER Altimmune ALT AmTrustFinSvcs AFSI ArchrockPtrs APLP AvenueTherap ATXI Bio-Path BPTH Cenveo CVO CheckpointTherap CKPT Curis CRIS ElbitImaging EMITF FortressBioPfdA FBIOP ForwardPharma FWP GreenPlains GPRE HaymakerAcqn HYAC iPathSteepener STPP JasonIndustriesWt JASNW LindbladExpedWt LINDW MustangBio MBIO NII Holdings NIHD OcularTherapeutix OCUL OpGen OPGN PICO PICO PapaJohn's PZZA ProShUltProShQQQ SQQQ RiminiStreet RMNI TESARO TSRO VantageEnerA VEAC VS2xVIXShortTerm TVIX VSVIXShortTerm VIIX 14.05 0.36 1.93 8.80 10.90 3.75 0.22 0.76 3.56 0.84 2.12 23.65 4.16 15.60 9.50 29.80 0.01 1.45 8.06 0.27 3.30 0.20 12.85 56.13 21.39 6.51 80.99 9.63 7.10 13.29 -3.6 -14.9 -3.9 5.8 -4.3 -1.5 -2.4 -8.5 3.4 -4.3 -3.5 -0.6 -4.9 -4.0 -1.8 -0.8 -14.3 -8.8 -0.6 -17.1 -10.1 -2.1 -2.3 0.3 0.1 -13.3 -2.3 ... ... -0.2 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | B9 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 23580.78 s 22.79, or 0.10% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 20.76 20.83 P/E estimate * 19.35 17.86 Dividend yield 2.19 2.48 All-time high 23590.83, 11/21/17 Nasdaq Composite Index Last 2601.42 t 1.00, or 0.04% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.49 24.35 P/E estimate * 19.50 18.45 Dividend yield 1.92 2.12 All-time high: 2602.42, 11/24/17 Last Year ago 6878.52 t 10.64, or 0.15% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.45 24.02 P/E estimate * 21.39 19.50 Dividend yield 1.04 1.24 All-time high: 6889.16, 11/24/17 Current divisor 0.14523396877348 Session high t DOWN Session open t Close UP Close 23500 2600 6900 23000 2560 6750 22500 2520 6600 22000 2480 6450 65-day moving average 65-day moving average Open 21500 2440 6300 21000 2400 6150 65-day moving average Session low Bars measure the point change from session's open Sept. Oct. Aug. Nov. 6000 2360 20500 Aug. Sept. Oct. Aug. Nov. Sept. Oct. Nov. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes High Latest Close Low Net chg % chg Transportation Avg Utility Average Total Stock Market Barron's 400 23638.92 23545.02 23580.78 9640.97 9565.44 763.79 758.46 0.46 3.47 762.54 -0.10 27027.25 26940.93 26963.15 -27.39 697.57 694.32 694.36 -2.21 Nasdaq Stock Market Nasdaq Composite 6897.43 Nasdaq 100 6420.21 Standard & Poor's 500 Index -0.26 2606.41 6867.89 6392.01 -0.32 -0.15 6878.52 -10.64 6405.97 -3.32 23.5 19.3 9.8 8783.74 7.1 6.1 1.4 Most-active issues in late trading 774.47 626.66 17.0 15.6 8.7 26990.54 22773.93 697.81 583.16 17.7 18.0 15.8 15.4 7.8 8.4 % chg 2598.87 2601.42 -1.00 23590.83 19097.90 6889.16 6409.29 -0.05 -0.04 2602.42 % chg 3-yr. ann. YTD -0.17 11.8 10.1 8.5 10.3 1313.80 13.8 11.5 8.3 12430.52 10808.63 -3.08 -5.07 -0.55 1859.19 927.81 Other Indexes Russell 2000 1522.03 1513.19 1513.31 -5.85 -0.39 1519.16 549.72 547.27 NYSE Arca Biotech 4230.68 4158.46 NYSE Arca Pharma 547.62 -1.42 -0.25 -0.26 4171.22 -46.61 -1.11 Company 12.8 14.1 14.0 13.1 1856.11 922.18 2191.08 27.8 31.7 1623.28 808.59 1855.89 922.05 12427.31 12390.30 12390.78 -31.15 28.1 31.9 16.2 1861.88 928.89 NYSE Composite 5251.11 4734.10 18.2 MidCap 400 SmallCap 600 Value Line Volume, Advancers, Decliners 10038.13 52-Week Low High 0.10 22.79 9595.23 -24.97 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 7.9 14.6 12.1 3.9 549.04 496.60 9.4 8.2 2.8 4304.77 3075.02 27.0 35.6 6.7 Symbol … SPDR S&P 500 SPY 7,795.3 260.17 -0.06 Bank of America BAC 4,244.2 26.59 … unch. 26.81 iShares MSCI Emg Markets EEM 3,184.8 47.01 … unch. 47.30 47.00 -0.08 12.13 12.10 Ford Motor F 3,090.8 12.10 -0.01 JPMorgan Chase JPM -0.03 -0.03 98.40 97.90 … unch. 32.55 32.46 Occidental Petroleum 2,743.8 68.08 … unch. 68.08 68.04 31.45 5.69 4.27 OXY Percentage gainers… Apollo Endosurgery APEN 285.7 5.35 1.28 Thor Industries THO 330.5 149.50 13.25 UTStarcom Holdings UTSI 8.1 5.36 0.47 9.61 5.41 Sierra Oncology SRRA 8.1 2.80 0.24 9.38 2.89 2.71 NOW Inc. DNOW 14.1 10.51 0.50 5.00 10.51 10.01 5.7 7.95 -0.85 -9.66 8.85 7.95 6.3 6.69 -0.54 -7.47 7.23 6.69 -0.05 560.52 463.78 14.4 11.7 -0.6 ...And losers 102.31 85.30 15.7 7.5 PHLX§ Gold/Silver -0.21 10.5 Ardmore Shipping 81.87 80.96 0.36 96.72 73.03 -0.3 3.3 PHLX§ Oil Service 81.47 3.1 131.00 129.18 129.76 -1.88 -1.43 192.66 117.79 -21.1 1331.46 10.26 1322.22 9.79 1324.15 -17.54 -1.31 0.20 9.87 1341.69 16.04 ASC Aratana Therapeutics PETX Region/Country Index Close DJ Americas 625.74 Sao Paulo Bovespa 74058.92 S&P/TSX Comp 16042.12 S&P/BMV IPC 47275.32 Santiago IPSA 3814.76 Latest % chg YTD % chg –0.25 –0.26 –0.44 18.0 19.1 22.4 –0.12 –0.77 –0.13 –98.46 –0.41 –65.97 –666.56 –1.39 –0.16 –6.05 15.8 23.0 4.9 3.6 18.4 –7.54 –1.03 –1.17 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 100 384.87 388.07 3971.24 5360.09 13000.20 1435.86 22176.70 538.09 1160.56 10063.10 574.61 9264.39 7383.90 –1.76 –0.46 –1.82 –0.47 –0.36 –14.22 –30.37 –0.56 –59.64 –0.46 –0.29 –4.22 –239.61 –1.07 –2.54 –0.47 –5.53 –0.47 0.10 9.60 –2.50 –0.43 –61.21 –0.66 –0.35 –25.74 6.5 10.8 10.1 10.2 13.2 –2.4 15.3 11.4 0.7 7.6 7.5 12.7 3.4 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 5988.80 Shanghai Composite 3322.23 Hang Seng 29686.19 S&P BSE Sensex 33724.44 Nikkei Stock Avg 22495.99 Straits Times 3436.36 Kospi 2507.81 Weighted 10750.93 0.10 6.20 –31.59 –0.94 –180.13 –0.60 0.13 45.20 –0.24 –54.86 –0.17 –5.79 –36.52 –1.44 –103.16 –0.95 5.7 7.0 34.9 26.7 17.7 19.3 23.8 16.2 USA Technologies USAT 12.0 8.00 -0.50 -5.88 8.50 8.00 46.1 -29.7 Diana Containerships DCIX 37.6 8.92 -0.43 -4.60 9.39 8.71 Direxion Daily En Bear 3x ERY 50.0 11.13 -0.35 -3.01 11.13 11.13 24.7 -6.5 Company Symbol Diana Containerships OptimumBank Holdings Aqua Metals UTStarcom Holdings MGC Diagnostics DCIX Stitch Fix Cl A Med Transcription Billing Roku Cl A Barracuda Networks FlexShares Core Sel Bd Fd SFIX Xinyuan Real Estate ADR Bazaarvoice Jumei International ADR Enphase Energy Internet Gold-Golden XIN OPHC AQMS UTSI MGCD MTBC ROKU CUDA BNDC High 9.35 8.30 4.02 4.89 10.92 2.30 2.04 0.96 1.10 2.12 32.62 209607.30 13.96 32.59 22.75 31.37 4.93 29.02 10.98 24.09 23.08 3.08 46.52 27.59 28.51 4.46 0.47 7.05 3.90 3.40 23.95 18.01 17.86 16.46 13.54 6.66 5.43 3.30 3.00 7.82 0.77 0.63 0.38 0.34 0.87 13.07 13.02 13.01 12.78 12.52 BV JMEI ENPH IGLD 52-Week Low % chg Symbol Square Cl A General Electric Marathon Patent Group iShares MSCI Emg Markets SPDR S&P 500 SQ Micron Technology Digital Power Advanced Micro Devices Bank of America Finl Select Sector SPDR MU GE MARA EEM SPY DPW AMD BAC XLF Riot Blockchain Eltek LM Funding America Amtech Systems Social Reality Cl A RIOT 23.91 5.44 48.80 27.67 28.51 14.48 0.29 15.75 19.06 24.53 ... 220.8 ... 21.6 14.0 Square Cl A Xunlei ADR Yulong Eco-Materials Rimini Street ENDRA Life Sciences SQ 6.73 5.45 5.05 3.19 12.89 4.26 3.80 2.00 0.65 5.86 29.6 4.3 -30.2 165.5 -32.3 Net Element Avid Technology Valeritas Holdings Newater Technology VelocityShares 3x NETE 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 76,051 69,656 45,677 44,667 44,356 640.1 -1.3 2921.0 -8.2 -27.7 44,082 41,882 40,949 40,508 39,889 32.6 6269.0 -26.6 -36.2 -21.2 41.02 18.12 6.51 47.01 260.23 -16.05 -0.38 9.41 -1.47 -0.05 52-Week High Low 49.56 12.38 32.38 17.46 10.03 0.50 47.93 33.94 260.75 219.15 48.05 -3.28 2.13 163.00 11.55 1.49 26.59 0.00 26.20 -0.08 49.89 3.50 15.65 27.98 26.93 18.18 0.40 8.26 20.25 22.00 Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, 1.00 t 0.00 Best Rate USA Newtown Square, PA 3.63% 888-998-2451 Epic Funding Fort Myers, FL 3.63% 800-530-2680 Garden State Home Loans 3.63% Cherry Hill, NJ 609-216-7912 RockBottom Mortgage LLC 3.63% Des Plaines, IL 855-219-4661 Monday 1 3 6 month(s) 5 2.25 0 1.50 –5 One year ago 0.75 –10 0.00 –15 1 2 3 5 710 years maturity 30 Euro Yen s WSJ Dollar index 2017 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.45 1.48 Money market, annual yield 0.32 0.33 Five-year CD, annual yield 1.48 1.49 30-year mortgage, fixed† 3.90 3.89 15-year mortgage, fixed† 3.31 3.29 Jumbo mortgages, $424,100-plus† 4.28 4.26 Five-year adj mortgage (ARM)† 3.61 3.54 New-car loan, 48-month 3.01 3.00 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.93 l 0.26 l 1.19 l l 3.73 l 2.99 l 4.21 l 3.20 l 2.85 1.25 4.25 1.48 0.36 1.49 4.33 3.50 4.88 4.03 3.36 1.00 1.00 1.24 -0.10 -0.07 -0.14 0.06 -0.02 0.11 -0.19 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 Corporate Borrowing Rates and Yields Bond total return index Close Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 1464.898 2.159 2.188 2.237 1.818 2.438 2.012 10-yr Treasury, Ryan ALM 1738.397 DJ Corporate 380.537 Aggregate, Barclays Capital 1944.500 High Yield 100, Merrill Lynch 2852.908 Fixed-Rate MBS, Barclays 1989.320 Muni Master, Merrill 518.689 2.328 3.108 2.650 5.529 2.870 2.172 2.370 3.172 2.680 5.584 2.910 2.056 2.609 3.390 2.790 6.144 3.120 2.516 2.058 2.879 2.380 4.948 2.660 1.736 2.203 5.877 3.765 8.194 2.752 4.532 804.671 5.530 5.596 6.290 5.279 Treasury, Ryan ALM EMBI Global, J.P. Morgan ASYS SRAX XNET YECO RMNI NDRA AVID VLRX NEWA DGAZ 1.825 3.807 2.294 4.040 1.968 2.460 10.324 5.662 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Symbol Marathon Patent Group Time Inc. USAA MSCI Intl Value Mom IQ Enhanced Core Bd US Riot Blockchain MARA Lennar Cl B Sit Rising Rate ETF Xinyuan Real Estate ADR Net 1 UEPS Techs Direxion Auspice Broad LEN.B 52-Week Low % chg 15.60 3.61 2.85 10.72 6.28 -8.00 -0.93 -0.69 -2.54 -1.41 -33.90 -20.48 -19.50 -19.16 -18.34 24.00 8.95 6.65 15.45 7.95 2.66 2.65 1.11 3.99 1.11 432.4 -17.0 -33.1 149.9 -0.5 41.02 21.01 3.41 6.51 3.26 -7.84 -3.90 -0.59 -0.99 -0.49 -16.05 -15.66 -14.75 -13.26 -13.07 49.56 12.38 27.00 3.11 9.00 0.50 10.40 6.51 4.00 2.15 227.4 371.1 -52.0 -34.3 ... 4.51 6.50 4.61 8.68 28.71 -0.63 -0.88 -0.61 -1.06 -3.42 -12.26 -11.92 -11.78 -10.88 -10.64 15.40 2.56 7.65 3.99 48.00 2.00 16.25 7.32 35.05 13.50 -49.9 51.5 -88.4 ... 14.4 TIME UIVM AGGE RIOT RISE XIN UEPS COM Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 45,677 24,458 448 106 17,229 2921 2343 1580 1518 1413 6.51 9.41 18.50 9.47 50.39 -0.65 19.64 0.07 15.60 -33.90 10.03 0.50 20.40 9.90 50.90 49.30 19.88 19.17 24.00 2.66 577 204 3,134 2,609 211 1389 1379 1192 1170 1023 50.62 23.39 6.66 11.45 24.24 0.00 -0.04 13.07 4.61 0.22 50.90 32.74 24.09 22.59 6.73 4.26 13.81 8.87 25.58 23.23 US$vs, YTDchg Mon in US$ per US$ (%) Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets US$vs, YTDchg Mon in US$ per US$ (%) Country/currency Americas Europe Argentina peso .0578 17.3137 9.1 Brazil real .3098 3.2276 –0.8 Canada dollar .7831 1.2770 –5.0 Chile peso .001568 637.90 –4.8 Ecuador US dollar 1 1 unch Mexico peso .0538 18.5884 –10.4 Uruguay peso .03406 29.3600 0.03 Venezuela b. fuerte .100150 9.9851 –0.1 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 Australian dollar .7602 1.3154 China yuan .1516 6.5963 Hong Kong dollar .1282 7.8002 India rupee .01552 64.435 Indonesia rupiah .0000740 13518 Japan yen .009001 111.10 Kazakhstan tenge .003042 328.78 Macau pataca .1250 8.0010 Malaysia ringgit .2434 4.1092 New Zealand dollar .6911 1.4470 Pakistan rupee .00949 105.330 Philippines peso .0199 50.367 Singapore dollar .7426 1.3466 South Korea won .0009160 1091.67 Sri Lanka rupee .0065100 153.61 Taiwan dollar .03333 30.000 Thailand baht .03067 32.610 Vietnam dong .00004424 22605 Commodities –5.3 –5.0 0.6 –5.2 –0.1 –5.0 –1.5 1.1 –8.4 0.2 0.9 1.5 –7.0 –9.6 3.5 –7.6 –8.9 –0.7 .04677 21.382 –16.8 .1599 6.2548 –11.5 1.1900 .8404 –11.6 .003825 261.41 –11.2 .009696 103.13 –8.7 .1227 8.1519 –5.7 .2827 3.5369 –15.5 .01711 58.442 –4.6 .1204 8.3034 –8.8 1.0188 .9815 –3.7 .2560 3.9062 10.9 .0374 26.7495 –1.2 1.3319 .7508 –7.3 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6486 .3776 0.1 .0564 17.7330 –2.2 .2858 3.4994 –9.1 3.3155 .3016 –1.3 2.5974 .3850 0.01 .2734 3.658 0.5 .2667 3.7502 –0.01 .0727 13.7577 0.5 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.43 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 0.02 0.02 –7.00 Sources: Tullett Prebon, WSJ Market Data Group COMMODITIES Monday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com High Ranked by change from 65-day average* Company Country/currency 10% 3.00 t 2.00 Yen, euro vs. dollar; dollar vs. major U.S. trading partners 3.75% t t 3.00 LMFA Latest Session Close Net chg % chg U.S.-dollar foreign-exchange rates in late New York trading Forex Race notes and bonds United Mutual Funding Corp 3.50% Brandon, FL 800-752-5116 * Primary market NYSE, NYSE American NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure. Currencies s 4.00% NYSE Arca * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days * Volumes of 100,000 shares or more are rounded to the nearest thousand 3.89% Bankrate.com avg†: ELTK Volume Movers s U.S. consumer rates Symbol -99.9 84.4 -68.3 142.1 40.9 CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor Company 1.56 1.85 2.90 1.66 6.24 Most Active Stocks Company Nasdaq Total volume*1,750,469,488 185,655,935 Adv. volume* 709,065,771 53,385,796 Decl. volume* 981,927,590 128,749,439 Issues traded 3,050 1,334 Advances 1,194 424 Declines 1,715 875 Unchanged 141 35 New highs 166 152 New lows 30 27 Closing tick 235 82 Closing Arms† 0.96 1.19 Block trades* 5,945 1,053 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group WSJ .COM 4.88 -29.4 -18.0 Percentage Gainers... Net chg 2986.17 388.45 261.94 The Global Dow DJ Global Index DJ Global ex U.S. Interest rate 9.72 152.00 136.20 Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes D J FMAM J J A S ON 2017 26.58 32.53 -0.27 10-year Treasury note yield -0.02 260.48 260.17 97.90 -0.21 30-year ﬁxed-rate mortgage 18.10 2,903.3 98.70 Americas Brazil Canada Mexico Chile 18.34 2,908.7 537.96 World unch. VanEck Vectors Jr Gold GDXJ 98.67 2.07 Low 18.12 536.89 Philadelphia Stock Exchange After Hours % chg High 9,179.3 99.39 836.79 49.2 9.14 -24.9 Net chg GE 539.54 PHLX§ Semiconductor CBOE Volatility Last General Electric KBW Bank 0.44 Volume (000) NYSE NYSE Amer. Total volume* 764,942,046 16,131,917 Adv. volume* 268,152,700 9,074,253 Decl. volume* 461,057,479 6,707,991 Issues traded 3,077 321 Advances 1,122 88 Declines 1,828 211 Unchanged 127 22 New highs 167 5 New lows 49 6 Closing tick 149 3 Closing Arms† 1.08 0.19 Block trades* 6,072 119 614.82 -0.89 -0.14 616.58 532.01 191.63 58.11 2.928 1293.80 -0.59 -0.84 0.115 7.10 -0.31 195.14 58.95 -1.42 3.93 4.09 0.55 1346.00 166.50 42.53 2.56 1127.80 % Chg 10.03 YTD % chg 8.38 2.06 -0.46 8.17 23.43 -9.41 -21.37 8.67 12.50 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B10 | Tuesday, November 28, 2017 COMMODITIES Futures Contracts Open Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. Nov 3.1310 3.1340 3.1285 3.1325 –0.0335 March'18 3.1965 3.1975 3.1435 3.1575 –0.0340 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1290.30 1293.80 7.10 Dec 1288.00 1299.00 1286.20 1294.40 7.10 Feb'18 1292.00 1303.40 1290.70 1298.90 7.10 April 1297.60 1307.50 1295.10 1303.20 7.10 June 1301.00 1311.70 1300.20 1307.60 7.10 Dec 1314.00 1325.40 1314.00 1321.00 7.10 Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 994.35 1002.95 987.80 1001.05 7.35 March'18 993.70 1002.00 986.15 1000.50 7.75 June 986.95 994.60 986.95 993.95 7.70 Platinum (NYM)-50 troy oz.; $ per troy oz. Nov 947.90 5.60 Jan'18 944.90 952.90 940.20 950.80 5.50 Silver (CMX)-5,000 troy oz.; $ per troy oz. Nov 17.020 17.020 17.020 17.009 0.028 March'18 17.125 17.270 17.080 17.119 0.026 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Jan 58.95 58.99 57.55 58.11 –0.84 Feb 58.92 58.93 57.60 58.16 –0.75 March 58.73 58.74 57.53 58.08 –0.65 April 58.48 58.48 57.41 57.92 –0.56 June 57.76 57.76 56.93 57.41 –0.40 Dec 55.66 55.83 55.14 55.60 –0.11 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Dec 1.9529 1.9620 s 1.9293 1.9478 –.0051 Jan'18 1.9556 1.9652 s 1.9318 1.9505 –.0050 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Dec 1.7861 1.7988 1.7770 1.7893 .0013 Jan'18 1.7785 1.7940 1.7695 1.7851 .0042 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 2.927 2.950 2.876 2.928 .115 Jan'18 3.013 3.038 2.971 3.017 .101 Feb 3.021 3.043 2.983 3.023 .094 March 2.999 3.017 2.960 2.990 .083 April 2.877 2.898 2.854 2.867 .050 May 2.878 2.895 2.850 2.860 .043 Open interest 190 149,644 1 127,659 311,666 26,021 33,539 12,901 6,311 27,071 503 4 68,342 1 115,767 576,294 198,980 289,199 131,912 240,995 264,970 39,618 135,535 46,278 176,490 22,319 385,560 128,859 197,491 133,164 106,142 Contract High hilo Low Settle Open interest Chg Agriculture Futures Corn (CBT)-5,000 bu.; cents per bu. Dec 342.50 342.50 338.50 338.75 March'18 354.75 355.25 351.25 351.75 Oats (CBT)-5,000 bu.; cents per bu. Dec 249.50 255.50 249.50 250.50 March'18 269.00 271.75 267.00 267.75 Soybeans (CBT)-5,000 bu.; cents per bu. Jan 993.75 1001.50 990.50 996.00 March 1005.00 1013.00 1002.00 1007.75 Soybean Meal (CBT)-100 tons; $ per ton. Dec 323.90 329.80 322.90 327.10 Jan'18 325.90 331.90 324.80 329.30 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 33.98 34.17 33.44 33.60 Jan'18 34.13 34.30 33.58 33.74 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Jan 1239.00 1243.00 1224.50 1229.50 March 1266.00 1269.00 1256.00 1259.50 Wheat (CBT)-5,000 bu.; cents per bu. Dec 415.50 416.00 t 408.75 409.50 March'18 434.00 434.50 t 427.50 428.25 Wheat (KC)-5,000 bu.; cents per bu. Dec 414.00 414.25 t 407.00 407.25 May'18 445.25 445.25 t 438.25 438.50 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 623.00 624.00 608.50 610.00 March'18 638.25 640.00 625.00 627.00 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Nov 157.775 157.925 157.575 157.775 Jan'18 153.325 155.125 152.775 154.450 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 118.675 120.100 118.375 119.825 Feb'18 124.700 126.275 124.350 126.050 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 63.675 64.650 63.600 64.525 Feb'18 69.700 70.225 69.550 70.100 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Jan 421.10 421.10 411.20 416.20 March 409.80 409.80 401.50 406.50 Milk (CME)-200,000 lbs., cents per lb. Nov 16.81 16.81 16.79 16.80 Dec 15.45 15.55 t 15.15 15.21 –3.50 249,928 –3.25 771,092 1.25 1.00 1,344 5,417 2.75 310,649 3.00 157,541 3.30 30,645 3.40 130,347 –.34 44,224 –.34 148,961 –12.50 –12.00 –7.25 –6.75 32,517 38,523 –13.50 –11.50 15,431 39,081 … 1.150 2,642 25,802 1.250 41,881 1.475 153,542 1.275 .700 33,909 92,813 –4.50 –4.10 5,207 1,009 … –.21 4,271 4,427 Cash Prices | WSJ.com/commodities Monday, November 27, 2017 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— separate from the futures price on an exchange, which reflects what the commodity might be worth in future months. Monday Monday 17.1000 12811 (U.S.$ equivalent) Coins,wholesale $1,000 face-a Energy 1.0187 1.0383 2.820 2.770 2.750 2.300 2.610 2.660 2.220 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 Other metals LBMA Platinum Price PM *935.0 Platinum,Engelhard industrial 951.0 Platinum,Engelhard fabricated 1051.0 Palladium,Engelhard industrial 1008.0 Palladium,Engelhard fabricated 1108.0 Aluminum, LME, $ per metric ton *2104.0 Copper,Comex spot 3.1325 Iron Ore, 62% Fe CFR China-s 67.9 Shredded Scrap, US Midwest-s,w 276 Steel, HRC USA, FOB Midwest Mill-s 627 Fibers and Textiles Metals Gold, per troy oz 1301.36 1398.96 1294.90 1437.33 *1289.15 *1290.50 1346.90 1359.86 1359.86 1569.50 1272.46 1359.86 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 17.2000 20.6400 17.0700 21.3380 £12.8100 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w 0.6200 0.7067 *81.60 n.a. 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. 93 3.1350 95.8 485.1 230 92 218 2.8300 390.00 25.00 7.5225 Monday 324.60 9.5800 7.5700 4.2250 3.7225 5.1975 SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w 188.74 167.78 0.8613 2.2075 159.00 155.00 72.00 2345 1.2362 1.4371 1.7550 15.35 0.74 63.09 n.a. 0.8382 n.a. 166.38 Fats and Oils 33.7500 0.2500 0.4100 0.3260 0.2650 n.a. Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 11/24 Source: WSJ Market Data Group November 27, 2017 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Oct. index level Chg From (%) Sept. '17 Oct. '16 U.S. consumer price index 246.663 253.638 All items Core –0.06 0.28 2.0 1.8 0.50 0.50 0.25 Treasury bill auction Australia 1.50 1.50 1.50 1.50 4 weeks 13 weeks 26 weeks Overnight repurchase Latest Prime rates U.S. Canada Japan 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 Policy Rates Euro zone Switzerland 0.00 0.50 0.00 0.50 0.00 0.50 1.17 1.19 1.38 0.24 0.00 0.50 —52-WEEK— High Low 1.130 1.045 1.300 0.340 1.285 1.285 1.285 0.490 1.435 1.415 1.435 0.590 1.75 1.00 Federal funds 30 days 60 days Effective rate 1.1700 1.1700 1.2000 0.3500 High 1.3125 1.3125 1.3125 0.5625 Low 1.0500 1.0500 1.1600 0.2500 Bid 1.1600 1.1600 1.1700 0.3000 Offer 1.1700 1.1700 1.1900 0.3200 3.455 3.466 3.865 3.253 3.475 3.486 3.899 3.281 Week Latest ago 3.00 3.00 Call money Data are annualized on a 360-day basis. Treasury yields are per annum, on actively traded noninflation and inflation-indexed issues that are adjusted to constant maturities. Data are from weekly Federal Reserve release H.15. 90 days Federal funds (effective) 1.16 1.16 0.40 Commercial paper Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month 1.16 1.26 1.31 1.15 1.23 1.28 1.16 1.26 1.31 0.41 0.58 0.66 1.22 1.28 1.35 1.19 1.25 1.31 1.22 1.28 1.35 0.46 0.60 0.72 Discount window primary credit 1.75 1.75 1.75 1.00 n.a. n.a. Conventional mortgages n.a. n.a. Treasury yields at constant maturities 1-month 3-month 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year 1.14 1.30 1.45 1.62 1.76 1.86 2.08 2.25 2.35 2.58 1.07 1.26 1.40 1.57 1.70 1.82 2.06 2.24 2.37 2.62 52-Week High Low Treasury yields (secondary market) 1.16 1.14 1.30 1.45 1.62 1.76 1.86 2.08 2.37 2.55 2.91 0.33 0.48 0.60 0.79 1.10 1.38 1.65 1.90 2.07 2.43 1-month 3-month 6-month 1.11 1.27 1.42 1.05 1.24 1.37 1.11 1.27 1.42 0.32 0.48 0.59 0.34 0.47 0.51 0.71 0.74 0.28 0.43 0.51 0.73 0.76 0.34 0.49 0.63 0.97 0.97 -0.02 0.20 0.28 0.60 0.65 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. TIPS 5-year 7-year 10-year 20-year Long-term avg Interest rate swaps 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Corporate bonds, Moody's seasoned Aaa Baa n.a. n.a. n.a. n.a. 2,812 2,142 –.08 560 –.51 161,564 .90 1.00 8,303 1,715 Chg Open interest Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Dec March'18 .8969 .9016 .9030 .9073 .8961 .9010 .9016 .9063 Dec March'18 .7869 .7878 .7888 .7895 .7832 .7842 .7838 –.0030 138,168 .7847 –.0030 3,817 Dec March'18 1.3337 1.3380 1.3391 1.3429 1.3317 1.3365 1.3326 –.0013 174,366 1.3369 –.0013 4,000 Dec March'18 1.0223 1.0287 1.0239 1.0311 1.0198 1.0271 1.0206 –.0016 1.0279 –.0016 .7610 .7607 .7618 .7606 .7590 .7643 .7640 .7635 .7638 .7634 .7591 .7592 .7596 .7588 .7590 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 .7606 .7605 .7604 .7603 .7601 Mexican Peso (CME)-MXN 500,000; $ per MXN .05369 .05399 Dec March'18 .05287 .05317 Euro (CME)-€125,000; $ per € 1.1948 1.1975 Dec March'18 1.2010 1.2044 .0045 243,070 .0046 5,019 78,124 370 –.0006 131,875 –.0006 968 –.0006 613 –.0005 1,706 –.0006 259 .05354 .05276 .05366 –.00004 171,551 .05289 … 865 1.1909 1.1981 1.1914 –.0029 478,544 1.1984 –.0029 8,319 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 23616 s 23610 s 23515 23515 23475 23475 S&P 500 Index (CME)-$250 x index 23562 23560 Dec 2603.00 2605.00 s 2597.80 2601.80 March'18 2603.10 2606.10 s 2601.10 2603.20 Mini S&P 500 (CME)-$50 x index Dec 2601.00 2605.50 s 2596.50 2601.75 March'18 2602.00 2606.50 s 2597.75 2603.25 Mini S&P Midcap 400 (CME)-$100 x index Dec 1858.10 1862.10 1854.30 1854.90 Mini Nasdaq 100 (CME)-$20 x index Dec 6414.3 6424.5 s 6394.8 6413.3 March'18 6433.5 6440.8 s 6411.5 6430.0 Mini Russell 2000 (ICE-US)-$100 x index Dec 1518.00 1524.50 1512.60 1513.20 March'18 1516.40 1516.40 1516.40 1514.50 Mini Russell 1000 (ICE-US)-$100 x index Dec 1443.50 1445.10 s 1441.00 1442.40 U.S. Dollar Index (ICE-US)-$1,000 x index Dec 92.67 92.87 92.43 92.83 March'18 92.40 92.55 92.13 92.53 45 146,712 48 2,804 0.80 1.10 68,958 5,220 0.75 3,204,044 1.25 114,959 –2.70 94,363 –.3 290,124 … 2,901 –5.60 –5.30 68,483 184 –.80 322 .12 .13 38,350 3,431 Source: SIX Financial Information Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return close YTD total return (%) Yield (%) Latest Low High Index 3.4 YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1944.50 Total return close 2.650 2.380 2.790 U.S. Aggregate U.S. Corporate Indexes Bloomberg Barclays 1989.32 2.4 Mortgage-Backed 1955.16 1.9 Ginnie Mae (GNMA) 2.830 2.630 3.090 2.870 2.660 3.120 3.220 3.030 3.520 1167.14 2.7 Fannie mae (FNMA) 2.880 2.670 3.120 2620.70 3.9 Intermediate 2.800 2.530 3.010 1796.93 2.7 Freddie Mac (FHLMC) 2.900 2.680 3.130 3880.57 10.4 Long term 4.100 4.090 4.710 518.69 4.0 Muni Master 2.172 1.736 2.516 2.710 2.470 2.870 362.45 4.3 7-12 year 2.158 1.744 2.618 3.520 3.340 3.870 407.74 5.7 12-22 year 2.554 2.213 3.047 394.53 6.3 22-plus year 2.956 2.770 3.622 5.9 2786.69 U.S. Corporate 4.3 Double-A-rated 568.33 6.5 719.60 Triple-B-rated High Yield Bonds Merrill Lynch 7.1 416.32 8.4 416.80 High Yield Constrained 5.736 5.373 6.579 Global Government J.P. Morgan† Triple-C-rated 10.752 9.584 12.718 545.39 1.6 Global Government 1.410 1.300 1.560 High Yield 100 5.529 4.948 6.144 760.22 0.9 Canada 1.950 1.570 2.190 378.23 7.4 Global High Yield Constrained 5.195 4.934 6.220 373.61 1.3 EMU§ 1.016 0.933 1.363 306.83 6.9 Europe High Yield Constrained 2.231 1.897 3.814 716.95 1.5 France 0.750 0.710 1.210 Germany 0.420 0.210 0.620 Japan 0.400 0.270 0.460 Netherlands 0.530 0.360 0.760 U.K. 1.560 1.340 1.790 6.3 2852.91 510.88 U.S Agency Bloomberg Barclays 1640.49 2.2 U.S Agency 2.070 1.660 2.100 288.22 1464.98 1.3 10-20 years 1.930 1.470 1.970 564.51 20-plus years 2.900 2.730 3.460 923.98 2.880 2.610 3.090 804.67 8.4 3387.95 5.0 Yankee 2462.01 -0.7 0.02 -0.3 1.2 8.9 Emerging Markets ** 5.530 5.279 6.290 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds ** EMBI Global Index † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan n.a. n.a. n.a. n.a. One month Three month Six month One year n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1.35 1.36 1.34676 1.47725 1.65832 1.94294 -0.402 -0.381 -0.316 -0.247 -0.372 -0.329 -0.272 -0.186 Latest 1.29418 1.44594 1.63489 1.90844 1.34676 1.47725 1.65832 1.94294 0.60561 0.93067 1.28878 1.63900 -0.401 -0.379 -0.312 -0.238 -0.376 -0.325 -0.219 -0.080 -0.405 -0.381 -0.322 -0.251 -0.372 -0.329 -0.274 -0.187 Value Traded -0.366 -0.313 -0.216 -0.076 -0.375 -0.332 -0.276 -0.192 52-Week High Low 1.177 29.000 1.366 0.264 1.203 123.450 1.506 0.280 Open Implied Settle Change Interest Rate Notes on data: Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window primary credit rate is charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program; rate is average for seven days ended Wednesday; Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only; Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first mortgages Sources: Federal Reserve; for additional information on these rate data and their derivation, please see, www.federalreserve.gov/releases/h15/data.htm Treasury Nov Treasury Dec Treasury Jan 1.744 2.344 1.596 2.412 1.119 2.359 l 1.775 1.887 1.771 3.7 3.1 l 2.516 2.785 2.770 21.0 17.2 41.1 France 2 -0.581 t 10 0.678 t l -0.558 -0.602 -230.3 -177.6 l 0.705 0.663 -0.657 -232.1 0.792 -164.5 -163.8 -156.7 Germany 2 -0.694 t 10 0.344 t l -0.686 -0.763 -243.0 -185.5 l 0.364 0.386 -0.737 -243.5 0.243 -197.9 -198.0 -211.6 Italy 2 -0.278 t 10 1.791 t l -0.271 -0.192 0.107 -201.9 -201.5 -101.1 l 1.823 1.944 2.101 -53.2 -52.1 -25.8 Japan 2 -0.174 s 10 0.036 s l -0.186 -0.153 -0.142 -191.5 -193.0 -126.0 l 0.028 0.069 Spain 2 -0.339 s 10 1.480 t l -0.344 -0.338 -0.103 -207.9 l 1.498 1.583 1.573 -84.3 0.465 s 1.255 s l 0.463 0.462 0.126 l 1.253 1.352 1.290 l 1.778 s 2.533 s 2.750 Australia 2 10 0.750 0.000 0.100 0.100 1.750 U.K. 2 4.250 10 0.038 -228.7 -127.6 -106.8 65.3 -231.5 -232.1 -208.8 -122.1 -84.6 -78.6 -128.1 -99.3 -109.1 -106.9 in that same company’s share price. DTCC GCF Repo Index Futures Eurodollars Year ago l 2.750 0.000 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago Month ago U.S. 2 1.740 t 10 2.323 t Investment-grade spreads that tightened the most… DTCC GCF Repo Index Treasury MBS 1.500 2.250 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous 0.67 Euro interbank offered rate (Euribor) One month Three month Six month One year Country/ Coupon (%) Maturity, in years Corporate Debt Euro Libor One month Three month Six month One year 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 2.25 Libor State and local bonds 1 month 3 month 6 month .02 .07 Settle Source: Tullett Prebon Commercial paper (AA financial) Week Ended Nov 24 Nov 17 –.06 388,577 –.03 129,806 Contract High hilo Low Open Bonds | WSJ.com/bonds Tracking Bond Benchmarks 1.450 52-Week high low Key Interest Rates 52-Week High Low .75 2,249 .65 119,291 Dec 154-100 154-240 153-300 154-110 3.0 567,083 March'18 153-050 153-200 152-270 153-080 4.0 261,542 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 124-315 125-045 124-270 125-040 5.0 2,488,887 March'18 124-230 124-290 124-190 124-285 5.5 1,101,132 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 116-287 117-000 116-260 116-317 3.0 2,338,188 March'18 116-222 116-260 116-197 116-257 3.5 1,210,498 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-147 107-152 107-137 107-152 .7 1,156,983 March'18 107-087 107-095 107-075 107-092 .7 732,125 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Nov 98.845 98.845 98.843 98.843 … 205,712 Jan'18 98.605 98.610 t 98.605 98.610 … 340,675 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 101.109 101.266 100.906 101.250 .156 28,067 March'18 98.688 98.703 s 98.672 98.719 .172 n.a. 1 Month Libor (CME)-$3,000,000; pts of 100% Dec 98.5250 98.5250 98.5100 98.5150 –.0125 2,764 Jan'18 98.5225 98.5225 98.5225 98.5125 –.0125 2,033 Eurodollar (CME)-$1,000,000; pts of 100% 98.4500 98.4525 98.4450 98.4475 –.0025 1,643,147 Dec March'18 98.2800 98.2800 98.2700 98.2800 … 1,507,162 June 98.1300 98.1400 98.1150 98.1350 .0050 1,291,560 Dec 97.9700 97.9900 97.9600 97.9850 .0100 1,665,754 2.750 Other short-term rates 3.00 Week Ended Nov 24 Nov 17 –44 402 –40 134,954 Interest Rate Futures 2.050 30-year mortgage yields 1.75 Open interest Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 0.050 Fannie Mae Discount 1.75 Chg Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 2,119 2,119 2,119 2,065 March'18 2,107 2,115 2,059 2,067 Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec 125.25 126.30 125.05 125.55 March'18 127.55 129.40 127.55 128.20 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 15.45 15.49 15.29 15.39 May 15.34 15.40 15.24 15.33 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March 27.38 27.40 27.38 27.40 May 27.33 27.33 27.33 27.28 Cotton (ICE-US)-50,000 lbs.; cents per lb. Dec 71.91 72.65 71.84 72.15 March'18 71.98 72.39 71.19 71.42 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Jan 165.10 167.50 164.30 166.80 March 165.00 165.70 s 164.25 164.95 0.500 Secondary market U.S. government rates 52-Week High Low Week Latest ago 0.50 International rates Week ago —52-WEEK— High Low Britain U.S. Settle Global Government Bonds: Mapping Yields Borrowing Benchmarks | WSJ.com/bonds Money Rates Inflation Contract High hilo Low Open 8,158 1,958 –6.25 68,993 –6.50 272,171 WSJ.com/commodities 98.795 unch. 6810 1.205 98.655 unch. 2252 1.345 98.555 0.005 459 1.445 Notes on data: U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; General Electric Capital Corp.; Tullett Prebon Information, Ltd. Issuer Symbol Coupon (%) Maturity Xerox Zimmer Biomet Holdings Comcast Macy's Retail Holdings XRX ZBH CMCSA M 4.070 March 17, ’22 2.700 April 1, ’20 3.999 Nov. 1, ’49 4.500 Dec. 15, ’34 175 74 114 334 AbbVie Apple Anheuser–Busch Inbev Worldwide Anthem ABBV AAPL ABIBB ANTM 2.900 2.400 5.000 4.625 72 43 33 133 Nov. 6, ’22 Jan. 13, ’23 April 15, ’20 May 15, ’42 Current Spread*, in basis points One-day change –10 –10 –8 –7 –5 –4 –4 –4 Last week Stock Performance Close ($) % chg 199 78 n.a. 350 28.23 113.39 35.55 … –0.91 0.28 –0.89 … n.a. 51 n.a. 143 95.42 174.09 ... 220.03 0.74 –0.50 ... –0.16 295 53 26 226 … 188.03 234.00 34.68 … –1.65 1.13 –0.37 95 n.a. 30 144 39.86 … 48.88 220.03 –3.11 … –0.27 –0.16 …And spreads that widened the most Teva Pharmaceutical Finance Netherlands Iii Alibaba Group Holding 3M AT&T TEVA BABA MMM T 3.150 Oct. 1, ’26 2.500 Nov. 28, ’19 2.000 June 26, ’22 4.500 March 9, ’48 303 58 25 220 Apache American Express Credit Oracle Anthem APA AXP ORCL ANTM 3.250 April 15, ’22 2.600 Sept. 14, ’20 1.900 Sept. 15, ’21 4.375 Dec. 1, ’47 95 43 21 140 23 11 9 8 6 6 6 5 High-yield issues with the biggest price increases… Bond Price as % of face value Current One-day change Last week 0.56 0.50 0.50 0.50 87.688 86.000 83.250 101.125 ... … 21.76 … 102.500 103.500 100.625 104.660 ... ... … ... 99.875 97.500 83.000 81.500 ... ... 13.62 5.31 ... ... –1.59 –3.45 70.500 100.500 102.500 103.500 7.61 33.67 ... ... 2.15 –0.65 ... ... Issuer Symbol Coupon (%) Hexion Endo Finance Mallinckrodt International Finance Sinclair Television HXN ENDP MNK SBGI 6.625 7.250 4.750 5.625 April 15, ’20 Jan. 15, ’22 April 15, ’23 Aug. 1, ’24 87.813 88.000 82.500 102.500 Ngpl Pipeco Altice Financing S.A. Beacon Escrow Brand Energy And Infrastructure Services NGPLCO ALTICE BECN BRANDI 4.375 6.500 4.875 8.500 Aug. 15, ’22 Jan. 15, ’22 Nov. 1, ’25 July 15, ’25 102.875 103.313 101.500 105.500 Maturity 0.44 0.31 0.25 0.25 Stock Performance Close ($) % chg ... … 2.54 … ... ... … ... …And with the biggest price decreases Millicom International Cellular S.A. Altice Luxembourg S.A. CenturyLink Ensco MIICF ATCNA CTL ESV 5.125 Jan. 15, ’28 7.625 Feb. 15, ’25 7.600 Sept. 15, ’39 4.500 Oct. 1, ’24 Frontier Communications MGM Resorts International SFR S.A. Altice Financing S.A. FTR MGM SFRFP ALTICE 9.000 4.625 7.375 6.625 Aug. 15, ’31 Sept. 1, ’26 May 1, ’26 Feb. 15, ’23 98.500 –1.80 –1.00 96.000 –1.00 84.000 –0.75 81.250 70.292 101.500 102.500 103.625 –0.71 –0.70 –0.63 –0.56 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 28, 2017 | B11 BANKING & FINANCE Trading Firm Rides Bitcoin Wave DRW Holdings fills void left by skittish Wall Street to embrace the digital currency One of Chicago’s largest high-speed traders has taken a central role in the bitcoin market, stepping into the vacuum created by Wall Street’s hesitant response to the booming investor interest in digital currencies. DRW Holdings LLC uses quantitative models to buy and sell bitcoin, for its own account and for use as a market maker—firms that grease the wheels of finance by buying, selling and quoting prices. Cumberland, DRW’s digitalcurrency unit, says it has traded more than $20 billion of bitcoin, ethereum and other cryptocurrencies in the past year. That makes it one of the top market makers in the sector, traders said. Bitcoin, invented less than a decade ago, is up 896% from the start of the year and was trading at $9,647.92 on Monday. The value of all the bitcoins in existence is about $162 billion, more than the market capitalization of Boeing Co. Despite those gains, the market for bitcoin is plagued by extreme volatility and an uncertain regulatory status, factors that have limited the interest of many Wall Street firms. DRW started its bitcoin desk more than three years ago, but banking giants such as Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. are just now considering how they will handle bitcoin trading. “They were very early adopters, and they’ve got a massive lead over everyone else,” said Brian Kelly, founder of BKCM Digital Asset Fund, a crypto hedge fund that trades regularly with Cumberland. Founded in 1992, DRW employs more than 800 people and trades on exchanges around the world. About a quarter of its business involves high-frequency trading—running automated strat- DAVID KASNIC FOR THE WALL STREET JOURNAL BY ALEXANDER OSIPOVICH Traders at DRW Holdings discuss options for a trade. The company jumped into bitcoin after the digital currency’s plunge in 2014. egies over ultrafast network connections—although other strategies can involve trades that last for months or even years. Based in a sleek Chicago skyscraper, DRW’s offices feel more like those of a Silicon Valley tech company than a Wall Street bank, with a casual dress code and weekly visits from a meditation teacher. As a nonbank firm that doesn’t manage money for outside investors, DRW is less subject to the regulatory questions looming over bitcoin than Goldman and other big banks. Donald Wilson Jr., the firm’s founder and chief executive, has clashed with regulators over civil allegations that DRW manipulated an interestrate contract in 2011. The Commodity Futures Trading Commission sued him and his company over the allegations, in a case that went to trial last year. Mr. Wilson and DRW have rejected the allegations, saying their trading strategy was lawful and calling the agency’s legal arguments flawed. Unlike most traders facing a CFTC manipulation case, they refused to settle. The judge has yet to disclose his verdict. $162B Value of all bitcoins, more than the market cap of Boeing DRW doesn’t report financial results, and it declined to say how much money its crypto unit makes. Mike Komaransky, a former partner who helped build Cumberland, retired from the company in June at age 38. He drew attention in August when he put his Florida mansion on sale for $6.5 million and offered to ac- cept payment in bitcoin. The house is still for sale, Mr. Komaransky said. DRW set up Cumberland in 2014, the same year a theft of more than $470 million of bitcoin from Mt. Gox, once the world’s largest bitcoin exchange, and other troubles caused the digital currency to lose more than half its value. Cumberland was among the biggest buyers of bitcoins seized from Ross Ulbricht, founder of the underground online drug bazaar Silk Road, who is serving a life sentence after being convicted of narcotics trafficking, conspiracy to launder money and other crimes. The unit bought about 70,000 such bitcoins in auctions conducted by U.S. and overseas authorities, it says. Mr. Wilson thinks bitcoin’s reputation as a tool for criminals is undeserved. “A lot of shady people have done a lot of bad things with dollars,” he said in an interview. Initially, DRW considered focusing on bitcoin mining, a process in which computers solve complex math problems to generate new bitcoins. That led the firm to call its crypto unit Cumberland Mining & Materials LLC—a name borrowed from the Grateful Dead song “Cumberland Blues,” about a hardworking miner. Cumberland mines Zcash, an upstart digital currency whose backers say has better privacy protections than bitcoin. The unit also runs automated trading “bots” that try to eke out profits from differences between the prices of digital currencies on different exchanges. But Cumberland’s fastestexpanding business is marketmaking, especially in bigticket trades of at least $100,000 and ranging into the millions of dollars. —Paul Vigna contributed to this article. PRICE Continued from page B1 will be extended. “The danger is always if companies can’t meet these higher expectations, and we get a reversion back to the mean,” said Matt Watson, portfolio manager at James Investment Research who has favored investing in sectors like energy that have underperformed the S&P 500 this year. The 896% gain for bitcoin compares with gains of 28% in the Nasdaq Composite Index, 19% in the Dow Jones Industrial Average and 16% in the S&P 500. Bitcoin is a digital currency that runs on a decentralized network of computers, rather than a centralized ledger under the control of a central bank or government. Users can exchange value directly, without a middleman such as a bank. Bitcoin has a market capitalization of about $162 billion, according to industry site Coinmarketcap.com—more than General Electric Co. and a number of other Dow components. Investor interest in bitcoin Coinbase, the largest bitcoin exchange in the U.S., added about 100,000 accounts last week from Wednesday to Friday. That brings its total to about 13.1 million, underscoring the surge in activity among retail participants. This week’s gains will further fuel the debate around digital currencies, which have been viewed as havens for illicit activity yet are pushing further into the mainstream investment world. China in recent weeks has banned exchanges that trade bitcoin, fearing the virtual currency could provide an avenue for capital flight. J.P. Morgan Chase & Co. Chief Executive James Dimon, whose bank is the largest dealer in global currencies, called bitcoin a “fraud” and said he would fire any employee who traded it. J.P. Morgan and Goldman Sachs Group Inc. are looking into how they should respond to growing client interest. CME Group Inc., the world’s biggest exchange group, is expected to launch a futures contract based on bitcoin as soon as the second week of December. Julius Baer Chief Executive to Join Rival Goldman CEO Lloyd Blankfein Goldman Options In Black BY LIZ HOFFMAN Goldman Sachs Group Inc. executives have cashed in on decade-old stock options, once worthless, that have become valuable in the year since Donald Trump’s election as president. In 2007, top Goldman Sachs executives received stock options, granting them the right to buy shares at $204.16 apiece. For much of the next decade, that figure seemed a pipe dream. Shares plunged to near $50 as the crisis took hold. They wouldn’t close above the strike price until 2015 and even then, only briefly. But the run-up in bank stocks since the 2016 election on expectations of tax-code and regulatory changes has pushed those options into the black. Goldman’s stock closed Friday, the day the options expired, at $235.95. Executives in recent weeks have made about $13 million in profits selling some $150 million worth of face-value options, filings show. Chief Executive Lloyd Blankfein’s haul was about $5 million. President David Solomon and Richard Gnodde, a top European executive, have cleared $2 million each. The chief executive of Julius Baer Group AG resigned to join one of its biggest rivals in an unexpected shake-up of the Swiss banking industry’s highest ranks. The departure of Boris Collardi is a blow for the privatebanking giant, which has doubled in size under his leadership with a string of bold deals at a time when other lenders fell by the wayside amid a crackdown on secrecy rules. Mr. Collardi is leaving immediately to join Genevabased private bank Pictet Group as a senior partner and co-head of wealth management in mid-2018. He will be succeeded at Julius Baer by Bernhard Hodler, who was previously chief risk officer and deputy CEO. Julius Baer’s stock fell 6.4% in Zurich trading Monday after the company announced the leadership change. Mr. Collardi resigned over the weekend, according to Chairman Daniel Sauter. “A resignation is always sudden, and one does not plan for this,” Mr. Sauter said on a conference call with reporters. “Boris has moved on for personal reasons….We are grateful and thankful of Boris’s contributions to this group.” Mr. Collardi wasn’t available to comment. BROKERS Continued from page B1 it would abandon the pact this Friday. The firm said it gave notice to the law firm that administers the pact—known as the Protocol for Broker Recruiting—on Nov. 20. Parties to the accord are supposed to give 10 days’ notice of a withdrawal from it. Morgan Stanley made its move late last month. Executives at both firms said they intend to focus more on retaining existing advisers MICHELE LIMINA/BLOOMBERG NEWS MISHA FRIEDMAN/BLOOMBERG NEWS BY BRIAN BLACKSTONE Julius Baer doubled in size with aggressive deals under leadership of Boris Collardi, shown in July. His decision to leave Julius Baer comes amid broader changes among Swiss banks as they seek profits from managing the wealth of rich investors around the world, particularly in Asia. Julius Baer’s larger rivals, including Credit Suisse Group AG and UBS Group AG, have in recent years scaled back their investment-banking units in favor of growth in the wealth-man- agement parts of their businesses. Julius Baer said last week that its assets under management rose 17% on the year through October to 393 billion Swiss francs ($401 billion). “In particular, we think that the market will now fear an occurrence of negative string of events, such as departure of other [relationship managers] or loss of client assets,” ana- lysts at Baader Helvea Equity Research wrote in a research note. Mr. Collardi, who is Swiss, has stood out in a country known for its bankers. He took the helm of the century-old bank in 2009 at the age of 35 and was previously an executive at Credit Suisse, where he started working at age 19. He has been tipped by some in the industry as a future leader Heard on the Street: Julius Baer loses some luster...... B13 than on recruiting from competitors. For UBS, Monday’s decision to leave the accord comes about a year and a half after it pulled back on recruiting to focus on retaining current advisers. The firm’s U.S. wealthmanagement arm said last year that it would reduce by 40% the number of brokers it recruited annually as part of a broader move to improve profitability. Subsequently, competitors Morgan Stanley and Merrill Lynch also pulled back on recruitment. UBS “didn’t [exit from the protocol] to stop attrition,” a person familiar with the matter said, adding that the firm isn’t focused on the size of its adviser force but rather its quality. “People who want to leave are going to leave” and UBS will recruit as opportunities arise, the person said. Some observers say the protocol is losing its relevance as firms pull back from an expensive recruiting practice known as “prisoner exchange” that involves offering brokers big upfront bonuses in the form of forgiv- able loans. The loans are typically structured to keep an adviser from leaving for at least seven years. A dissolution of the protocol may help Wall Street maintain its adviser force, at least in the short term. Observers say that without it, moving between firms will be harder. But in the longer term, observers say, it may not matter much. Firms have been “hemorrhaging talent and assets” in recent years, said James Heavey, a partner at Barton LLP who represents both brokerages and RIAs, as brokers opt to go to an independent firm and keep as much as 85% of the revenue they generate. At the biggest firms, most brokers typically keep less than half of what they generate. Meanwhile, firms including Raymond James Financial Inc. and Dynasty Financial Partners, which offer breakaway brokers a place to run their own advisory business without having to deal with matters such as payroll and compliance, are “killing it right now,” said Mindy Diamond, an industry recruiter based in New Jersey. at a larger Alpine institution such as Credit Suisse. Shortly after assuming the top job at Julius Baer, Mr. Collardi orchestrated the lender’s split from its asset-management unit, GAM, and aggressively grew the private bank with acquisitions and the hiring of new bankers. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B12 | Tuesday, November 28, 2017 * *** THE WALL STREET JOURNAL. MARKETS Goldman: Buybacks, Dividends Overrated Don’t get swept away by big share buybacks and flashy dividends, and investors should focus on companies that are making big bets on their own EQUITIES growth, Goldman Sachs Group says. The companies that spend the most on building their businesses through capital and research-and-development spending have outperformed the broader S&P 500 index in recent years, according to Goldman Sachs analysts. The bank’s basket of big capital spenders has returned 56% since the beginning of 2016. That compares with a 25% return for companies that spend the most on buybacks and dividends and a 31% return for the overall S&P index. Those results come amid a broader shift in the way companies are choosing to spend their money. After years of tepid business investment, companies are beginning to shell out more on things like new equipment and technology. One closely watched proxy for business investment—new orders for nondefense capital goods excluding aircraft— jumped 4.4% in the first 10 months of the year. At the same time, companies are cutting back on share repurchases that many have relied on in recent years to juice shareholder returns amid sluggish economic growth. When a company buys back its own stock, the overall share count shrinks and raises earnings per share. Companies in the S&P 500 are on pace to spend $500 billion this year on share buybacks, according to data from INTL FCStone, the smallest amount since 2012. Among the companies that Goldman Sachs says are investing the most are General Motors Co., Amazon.com Inc. and Bristol-Myers Squibb Co. Goldman Sachs analysts estimate those stocks will each return at least 20% next year. Heard on the Street: Buyout game is about to change B13 MICHAEL BUCHER/THE WALL STREET JOURNAL BY CHELSEY DULANEY Stocks of retailers had a good day. Shares of Gap and other department stores rose following the Black Friday weekend of major sales. L Brands advanced almost 4.1%. Energy Stocks Pull Down S&P BY AKANE OTANI AND RIVA GOLD The S&P 500 paused just shy of a record Monday, weighed down by a pullback in shares of energy companies. Major indexes struggled for traction, with MONDAY’S the S&P 500 MARKETS and Nasdaq Composite both hitting their peaks for the trading day early on before losing ground. Shares of retailers jumped following the weekend’s holiday sales, while oil-and-gas companies fell along with U.S. crude prices. Some analysts said it wasn’t surprising to see the momentum in U.S. stocks falter a bit heading into year-end. The year’s rally has lifted the S&P 500, Dow Jones Industrial Average and Nasdaq to dozens of records each in 2017. “I see the risk-reward [ratio] being much more attractive in international markets,” said Crit Thomas, global market strategist at Touchstone Investments, who added that U.S. stocks look expensive relative to their foreign counterparts. The S&P 500 declined 1 point, or less than 0.1%, to 2601.42. The Nasdaq lost 10.64 points, or 0.2%, to 6878.52, and the Dow industrials rose 22.79 points, or 0.1%, to 23580.78. Energy shares dragged on major indexes, with shares of Marathon Oil falling 65 cents, or 4.3%, to $14.48 and Newfield Exploration losing 1.05, or 3.4%, to 29.69. U.S. crude for January delivery shed 1.4% to $58.11 a barrel ahead of a meeting of major crude producers. The Organization of the Petroleum Exporting Countries as well as producers including Russia are expected Thursday to discuss whether to extend output cuts that some analysts say have helped oil prices recover this year. Meanwhile, shares of several retailers jumped following a weekend of major sales at many department stores and brick-and-mortar outlets. 600 fell 0.5%, with shares of Julius Baer Group falling more than 6% after the Swiss Shares of L Brands, Signet Jewelers and private-banking company’s Gap jumped past the S&P 500 on Monday. chief executive resigned. Signet 5% Stock indexes in Asia came Jewelers under pressure as technology s4.9% Performance minute by minute stocks slid. 4 L Brands Morgan Stanley downs4.1% graded stock ratings for Sam3 sung Electronics and Taiwan Semiconductor. South Korea’s Kospi Composite Index, which 2 heavily weights the two firms, fell 1.4% in its biggest one-day Gap 1 decline since August. The Kos1.2% spi was up 0.4% early Tuesday. Much of the recent selloff in 0 S&P 500 Asian shares has come from t0.04% companies that have already –1 posted strong gains this year, 10 11 noon 1 2 3 4 said Andrea Cicione, head of Source: FactSet THE WALL STREET JOURNAL. strategy at TS Lombard. “But we haven’t seen anySignet Jewelers added Kinahan, chief market strate- thing for the moment that wor2.45, or 4.9%, to 52.25, while L gist at TD Ameritrade. ries us,” he said, noting fundaBrands, the parent of VictoBetter-than-expected earn- mentally, the outlook for the ria’s Secret, rose 1.98, or al- ings reports and hopes for a economy and global equities most 4.1%, to 50.34, and Gap solid final quarter have drawn remains sound and investors added 36 cents, or 1.2%, to 30. some investors back into generally feel they can’t afford “It would seem like we are beaten-down retail shares in to miss out on this market. off to a good start [to the holi- recent sessions, analysts said. —Kenan Machado day shopping season],” said JJ Elsewhere, the Stoxx Europe contributed to this article. Retail Rally Treasurys Rise as Investors Await Data U.S. government bonds edged higher Monday, holding to a tight range as traders prepared for a busy week of bond auctions, economic data and possible movement on tax cuts. The yield on CREDIT the benchmark MARKETS 10-year Treasury note settled at 2.328%, compared with 2.342% Friday. Yields fall when bond prices rise. The 10-year yield has hovered around 2.35% for much of the past two months, even as yields on shorter-term Treasurys have climbed steadily. Auctions of two-year and five-year notes didn’t do much to alter recent trends Monday, attracting average demand. A sale of seven-year notes is on tap for Tuesday. Later in the week, the Commerce Department will release its latest report on the price index for personal-consumption expenditures, the Federal Reserve’s preferred inflation gauge, while the Senate nears a vote on major tax legislation. Investors and analysts have pointed to several factors behind the shrinking gap between short- and long-term Treasury yields, known on Wall Street as a flattening yield curve. One, the expectation that inflation will stay below the Fed’s 2% target has kept a lid on longer-term Treasury yields. In another, signs that the Fed will keep raising interest rates have helped depress demand for shorter-term bonds, pushing yields higher. The gap between two-year and 10-year Treasury yields ended up at 0.584 percentage point Monday, down from 0.782 percentage point at the end of October. “You look at the spread levels and you’re like, wow, this is getting really flat,” said Thomas Simons, senior vice president and money-market economist in the Fixed Income Group at Jefferies LLC. “You figure it can’t continue indefinitely, but then you do come up with more reasons for why it should continue.” Some investors and analysts believe that long-term yields could rise if Congress passes tax cuts, in part because it would force the government to issue more bonds. JOE KLAMAR/AGENCE FRANCE-PRESSE/GETTY IMAGES BY SAM GOLDFARB AUCTION RESULTS Here are the results of Monday's Treasury auctions. All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference between that price and the face value. 13-WEEK AND 26-WEEK BILLS 13-Week 26-Week $129,082,223,000 $120,383,716,700 Applications $42,000,135,000 $36,000,431,200 Accepted bids $565,078,000 $439,272,700 " noncomp $493,000,000 $400,000,000 " foreign noncomp 99.675181 99.274528 Auction price (rate) (1.285%) (1.435%) 1.307% 1.466% Coupon equivalent 92.56% 18.29% Bids at clearing yield accepted 912796LN7 912796PH6 Cusip number Both issues are dated Nov. 30, 2017. The 13-week bills mature on March 1, 2018; the 26-week bills mature on May 31, 2018. TWO-YEAR NOTES Applications Accepted bids " noncompetitively " foreign noncompetitively Auction price (rate) Interest rate Bids at clearing yield accepted Cusip number $72,267,729,000 $27,410,954,500 $212,308,700 $100,000,000 99.970650 (1.765%) 1.750% 97.93% 9128283H1 The notes, dated Nov. 30, 2017, mature on Nov. 30, 2019. FIVE-YEAR NOTES $85,497,229,800 Applications $35,845,019,800 Accepted bids $27,435,500 " noncompetitively $0 " foreign noncompetitively 99.688000 Auction price (rate) (2.066%) 2.000% Interest rate 12.97% Bids at clearing yield accepted 912828M80 Cusip number The notes, dated Nov. 30, 2017, mature on Nov. 30, 2022. A recent OPEC meeting in Vienna. The organization has reduced supply since January in an effort to drain a glut. Crude Falls Ahead of OPEC Meeting BY SARAH MCFARLANE AND ALISON SIDER Oil prices fell Monday amid uncertainty about whether OPEC and other producers will extend their cuts and as the Keystone pipeline prepared to restart. COMMODITIES The Organization of the Petroleum Exporting Countries and producers including Russia are set to meet Thursday to discuss whether to extend cuts beyond their expiration in March. Russia’s position is considered the wild card to the outcome. The countries have cut output since January in an effort to drain a glut. U.S. crude futures fell 84 cents, or 1.42%, to $58.11 a barrel on the New York Mercantile Exchange, snapping a three-session winning streak. Brent, the global benchmark, fell 2 cents, or 0.03%, to $63.84 a barrel on ICE Futures Europe—breaking a four-session streak of gains. Prices deflated after surging to a two-year high Friday. Rising geopolitical tensions in key oil-producing countries including Iraq and Saudi Arabia, along with expectations of an extension to the production cuts, have lifted prices in recent months. Uncertainty about cooperation between OPEC and Russia is tempering investors’ enthu- siasm, said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas. Saudi Arabia supports an extension. “Russia has been dithering both on duration and even hinting at times the possibility of delaying a decision until next year when we have a better assessment of market fundamentals,” Mr. Tchilinguirian said. Russia had agreed to cut around 300,000 barrels a day of production as part of the deal with OPEC. Many investors have been counting on OPEC and its partners agreeing to extend their production-cut agreement through the end of next year. “Anything other than an ex- tension of the agreement would come as a big surprise and would trigger a massive price slide,” Commerzbank said in a daily note. Disruptions to oil supply from the Keystone pipeline helped lift prices last week. The pipeline was shut down following a leak this month, and traders have been betting that the reduced flow would help relieve high levels of oil at the storage hub and pricing point in Cushing, Okla. TransCanada Corp. said Monday that oil would resume flowing through the pipeline on Tuesday, albeit at lower rates. Speculation of a restart also weighed on prices Monday, analysts 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. Tuesday, November 28, 2017 | B13 * * MARKETS Stock Markets Around the World Hail 2017 Broad rally attributed to corporate earnings, stronger economies and monetary policies BY STEVEN RUSSOLILLO The vast majority of global stock markets in 2017 have surged either to fresh records or multiyear highs, one of the broadest rallies in years that investors say is a result of the increasingly synchronized global economic recovery. Nearly half of the 35 major indexes representing the world’s biggest stock markets by value have reached highs this year, the most since 2007, according to an analysis by The Wall Street Journal. In the U.S., the Dow Jones Industrial Average has logged 60 record closes this year, the most since 1995, with the latest push higher following the House Republicans’ proposed tax-code overhaul. The Nasdaq Composite has gained 28% this year and set 69 new highs, the most ever in a calendar year. The S&P 500 cleared 2600 for the first time Friday, marking its second-fastest round-number milestone. Elsewhere, the FTSE 100 in the U.K. and South Korea’s Kospi index have set records this year despite geopolitical uncertainty in those regions. India’s benchmark stock gauge has also surged to new highs, standing out from many other emerging markets due to renewed confidence in the country’s political and economic stability. Even markets that aren’t at records have set other milestones. Japan’s Nikkei Stock Average surged to a 21-year high, Hong Kong’s Hang Seng surpassed 30000 last week for the first time in a decade, and the Taiwan Taiex trades at its highest since 1990. Twelve of the 18 indexes that didn’t set a record this year still achieved multiyear highs, according to the Journal’s analysis. All Rise Nearly half of the 35 major indexes representing the world’s biggest stock markets by value have hit highs this year, the most since 2007. The gains are putting some market watchers in mind of epic rallies of the past, including the U.S. tech boom of the late 1990s. 20 30% Nasdaq 25 Korea’s Kospi Year-to-date performance DJIA S&P 500 15 Germany’s DAX 10 Other stock indexes at records* 5 0 –5 Jan. Feb. March April May June July Number of records that stock indexes have hit this year 69 Nasdaq Aug. Sept. Nov. MSCI Emerging Markets Index's sector weightings Number of countries in recession 30% performance 100 60 DJIA 55 S&P 500 Korea's Kospi 35 MSCI Asia 35 India's Sensex 34 MSCI EM 34 20 60 40 10 28 Indonesia's JSX Technology Financials 26 Russell 2000 FTSE Top 40 26 Germany's DAX 25 Projections 80 58 MSCI World 20 0 0 2004 ’10 2000 ’10 ’20 *Includes the MSCI World, MSCI EM and Asia, India’s Sensex, Indonesia’s JSX, Russell 2000, FTSE Top 40, FTSE 100, Brazil’s Bovespa, Mexico’s IPC and Canada’s S&P/TSX Sources: FactSet (indexes’ performance, records); BNP Paribas Asset Management (sector weightings); Deutsche Bank, IMF (countries in recession) THE WALL STREET JOURNAL. Investors say the global stock rally has been a culmination of improving corporate earnings, strengthening economies and supportive monetary policies from central banks around the world. Market volatility has fallen to historic lows and investors have used nearly every dip as a buying opportunity. Despite lofty valuations, analysts and investors say conditions are ripe for the rallies to continue. “We’re in this very bullish backdrop,” said Michael Kelly, global head of multiasset at PineBridge Investments, which has $89 billion in assets under management. “A lot of people are surprised, saying, ‘where did this massive run come from when everyone’s been so cautious?’ But investors are begrudgingly recognizing that growth is not secularly stagnating, that things are getting back to normal.” A rare outlier: Chinese stocks. The Shenzhen Composite, made up of many manufacturing and tech companies, fell HEARD ON THE STREET Email: firstname.lastname@example.org FINANCIAL ANALYSIS & COMMENTARY Buyout Game Is About to Change Tax reform has scrambled the deal calculus for corporate buyouts, potentially adding risk to some deals and higher returns to others at a time when private-equity firms are under pressure to deploy a record cash pile. The bill that passed the House and the one that will be taken up by the Senate this week would change the game for buyouts in two important ways. On the negative side, both penalize companies that take on lots of debt by reducing their ability to deduct interest payments. That is offset by lower overall corporate tax rates. If the bills pass with the proposed corporate tax cut— to 20% from 35% in the House bill—intact, the returns on buyouts would likely go up, even after scaling back the interest deduction. Analysts at Goldman Sachs Group and Morgan Stanley both calculate that the tax-overhaul package would have a net positive Oct. Stalled Deals Value of private-equity-related transactions in the U.S. $50 billion 40 30 20 10 0 J F M A M J J A S O N Note: Data are through the seventeenth of each month THE WALL STREET JOURNAL. Source: Dealogic impact on internal rates of return of over 1 percentage point a year. But the House bill would cap the amount of interest expenses companies can deduct from taxes at 30% of earnings before interest, tax, depreciation and amortization, or Ebitda. This presents a challenge to the privateequity playbook of levering up acquired companies to boost returns. Assuming a 6% cost of debt, a company could lever up to five times Ebitda and remain below the limit, notes Goldman. Recent leveraged buyouts have typically featured interest rates of about 5% to 7% and leverage of four to six times Ebitda, says Adam Benson, managing director of the tax practice at consulting firm Alvarez & Marsal. If rates move higher, more deals would breach the threshold and companies could be caught in a tax vise if Ebitda declined because interest expenses would stay the same. To avoid that, private-equity companies may steer clear of cyclical companies and focus on small, domestic ones facing high tax rates. The Senate proposal is less generous, capping the interest deduction at 30% of earnings before interest and tax, but not depreciation and amortization. This would make capital intensive businesses less attractive. Private-equity firms in North America were sitting on more than $500 billion in dry powder at the end of March, according to research firm Preqin. Meanwhile, there have been just $8.3 billion of private-equity-related deals in the U.S. in November, compared with a monthly average of nearly $27 billion for the rest of the year, according to Dealogic. A tax overhaul may ultimately benefit buyout firms, but they need to adapt quickly. —Aaron Back OVERHEARD One small step forward for the Shanxi Provincial State Assets Supervision and Administration Commission, one giant leap for reform in China. In a move hailed as “emptying the cage and changing birds,” the regulator’s WeChat account announced Wednesday that Shanxi would be selling off a few state-owned electric power assets to— drumroll, please—another state-owned firm a few provinces to the south. Although President Xi Jinping’s government remains theoretically committed to further opening up the economy to private capital, most of the “reforms” unveiled so far have involved selling noncontrolling stakes in state giants to private firms. Rather than “emptying the cage,” the dominant theme seems rather like dressing up old birds in new feathers. The announcement comes amid a major push to curb coal-power output. No doubt coal-power plants will be less vulnerable to curbs down the line. Samsung’s Tumble Sounds a Warning for Tech Stocks Investors in Asian technology stocks have been so bullish that it doesn’t take much to start a panic selloff. Shareholders in Samsung Electronics had a taste of that Monday. The largest stock in the South Korean market fell 5.1%—the most in more than a year—apparently triggered by Morgan Stanley downgrading the stock one notch to “equalweight.” That was enough to sink Korea’s benchmark Kospi index by 1.4%. The bank is, understandably, questioning whether the memorychip-market boom that has fueled a doubling in Samsung’s shares since early 2016 has now peaked. Prices Wish List Average analysts’ estimates for Samsung’s earnings per share in 2018, in Korean won Current 1 month ago 2 months ago 3 months ago 6 months ago 9 months ago 12 months ago 18 months ago 362,787 353,396 345,352 328,357 295,757 226,794 192,675 156,672 Note: 100,000 won=$92 Source: S&P Global Market Intelligence for NAND, a memory chip used for storage in which Samsung is the global market leader, have already started falling, it said. Despite its fretting, Mor- gan Stanley’s report doesn’t sound that ominous. The bank still expects Samsung’s earnings to rise 23% next year, higher than the median forecast for them to rise by 20.3%, according to S&P Global Market Intelligence. Its broader point is that there could be fewer upside surprises for Samsung. The knee-jerk reaction to such a mild report is a telling sign of the sensitivity around markets and tech stocks in particular. The mere suggestion there is a risk its earnings might not keep pace with overheated expectations has proved enough to knock a highflying tech stock off its perch. Samsung’s stock may not be the last to suffer. Analysts have been raising their outlooks for Asian tech firms’ earnings as the actual results consistently beat earlier forecasts. Samsung has delivered better-than-expected operating profit in every quarter since 2016, except in the third quarter last year. Accordingly, earnings estimates for the company this year and next have doubled from 18 months ago, according to S&P Global. Similar optimism abounds in other tech stocks, like China’s Tencent Holdings and Alibaba Group Holding, which, together with Samsung, are the three biggest stocks in the MSCI Emerging Markets Index. According to FactSet, more than 90% of analysts give these two stocks a “buy” rating, with no “sell” ratings at all. Shares of both Alibaba and Tencent have more than doubled this year as they keep making analysts play catchup in their forecasts. Analysts now expect their earnings to double by 2020. Easy money chasing better returns has pushed up valuations in these Asian tech firms. Samsung’s Monday drop is just a dress rehearsal of what could happen when the unrelenting tide of optimism turns. —Jacky Wong into negative territory for the year after a market selloff last Thursday. Chinese authorities last week took fresh steps to halt the proliferation of small online lenders, which weighed on the stock market there. Outside of China, investors point to strong economic growth for the rise in global markets. The International Monetary Fund last month raised its global growth forecasts to 3.6% this year and 3.7% in 2018, both up a tenth from prior estimates. The IMF said recent growth has been more broad-based than at any point since the beginning of the decade. What’s more, only 13 countries are in recession, the fewest since 2007, according to Deutsche Bank economist Torsten Slok, who cited IMF data. By 2021, this estimate is forecast to drop to three, which would be the fewest countries ever in recession. The U.S. economy has benefited, registering its best sixmonth stretch of growth in three years. In Europe, a measure of consumer sentiment rose last month to its highest level since April 2001. And in Asia, tech giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd., have surged so much that the tech industry overtook finance this year as the biggest sector in the MSCI Emerging Markets Index for the first time since 2004, according to BNP Paribas Asset Management. The return to growth and diminished market volatility have been driven in part by stimulative central banks. The Bank of Japan and European Central Bank have been overly accommodative since the recession. And although the Federal Reserve has raised interest rates four times, Treasury yields and mortgage rates remain near historic lows. “We still have crisislike monetary policy, even though the crisis has long passed,” Mr. Kelly said. WSJ.com/Heard A Reason To Reassess Julius Baer When a chief executive jumps ship suddenly it is cause for concern, and even more so when that CEO had led an aggressive, acquisitive expansion. So it is with Boris Collardi’s departure from Julius Baer, the fastest-expanding and most highly valued of Switzerland’s big private banks. Investors shouldn’t panic, but it is a reason to question whether the bank’s growth strategy is running out of road or if it deserves a forward price-to-book valuation roughly double domestic rivals UBS Group and Credit Suisse Group. Mr. Collardi has left because he is going to a direct rival, privately held wealthmanagement partnership Pictet. At Julius Baer, he more than doubled assets under management since taking the top job in 2009. Asset growth has continued, but the bank faces questions about whether it needs another big deal to add relationship managers who would bring more fresh assets, especially if Mr. Collardi has plans to take top performers with him. Outside of acquisitions, asset growth has been boosted by lending to clients against their shareholdings, in which risks have risen. It should be reassuring to investors that Julius Baer’s experienced chief risk officer, Bernhard Hodler, is taking over as CEO. But this could also be a signal that the group is due a spell of internal consolidation. If Mr. Collardi is seeking a slower lifestyle with his move to Pictet, it seems likely that means a slower life for Julius Baer, too. —Paul J. Davies 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 B14 | Tuesday, November 28, 2017 THE WALL STREET JOURNAL.