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The Wall Street Journal November 28 2017

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DJIA 23580.78 À 22.79 0.1%
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WSJ.com
TUESDAY, NOVEMBER 28, 2017 ~ VOL. CCLXX NO. 126
* * * * * *
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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.
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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 wsjcontact@wsj.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
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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
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A4 | Tuesday, November 28, 2017
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THE WALL STREET JOURNAL.
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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
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President Revives
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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
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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
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CONGRESS
Lawmaker Addresses
’08 Sexual Allegations
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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
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Tuesday, November 28, 2017 | A4A
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THE WALL STREET JOURNAL.
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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.
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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.
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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.”
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THE WALL STREET JOURNAL.
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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.
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A8B | Tuesday, November 28, 2017
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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
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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-
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27 pc
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51 36 s
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92 78 pc
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84 69 s
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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
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37
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27 Member of the
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1 Cavern sound
4 Chili bit
22
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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
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
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
jfusilli@wsj.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
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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 mcgurn@wsj.com.
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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“It’s hideous. Price it high
enough that someone buys it.”
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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
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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.
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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
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BUSINESS & FINANCE
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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
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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
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spanning the market cap spectrum
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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.
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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.
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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
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THE WALL STREET JOURNAL.
Tuesday, November 28, 2017 | B5
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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.
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CIO, the White House (2006–2008)
Michael Chertoff
Stephen E. Schmidt
Co-Founder and Executive Chairman,
The Chertoff Group; Secretary, U.S.
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VP, Security Engineering and CISO,
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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
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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
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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
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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.
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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.
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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: heard@wsj.com
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
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THE WALL STREET JOURNAL.
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