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The Wall Street Journal October 18 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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DJIA 22997.44 À 40.48 0.2%
NASDAQ 6623.66 g 0.01%
STOXX 600 390.44 g 0.25%
10-YR. TREAS. À 3/32 , yield 2.300%
OIL $51.88 À $0.01
Outline of deal to help
insurance markets
takes shape, but some
conservatives object
Business & Finance
S
BY STEPHANIE ARMOUR
AND KRISTINA PETERSON
oros has turned over
nearly $18 billion to
Open Society, a move that
transforms both the philanthropy he founded and
his investment firm. A1
Two key senators reached a
bipartisan agreement Tuesday
aimed at shoring up the Affordable Care Act and lifting some
of the health law’s requirements, drawing support from
President Donald Trump who
called it a “short-term deal.”
Morgan Stanley’s profit
beat expectations as strong
results at its wealth-management unit more than offset a slump in trading. B1
While some details are still
being completed, the proposal
by Sens. Lamar Alexander (R.,
Tenn.) and Patty Murray (D.,
Wash.) is the first major bipartisan effort to gain traction on
health policy since the 2016
election. Still, the compromise
could be derailed by conservative House Republicans intent
on toppling the Obama-era law.
The deal, which caps off almost three months of work that
started after GOP efforts to repeal the 2010 law known as
Obamacare failed, could potentially affect many of the roughly
18 million people in the individ-
ual market as well as employer
coverage in some states.
Under the deal, Republicans
would get changes that let
states get speedier and more
flexible federal waivers to the
health law, as well as the ability
of more people to sign up for
bare-bone health plans with low
premiums. Democrats would get
restored funding for billions of
dollars in insurer subsidies,
funds that Mr. Trump proposed
cutting this month.
The bill needs 60 votes to
pass in the Senate, where Republicans hold 52 seats. The
deal is most likely to get a vote
IBM had gains in its hardware and AI divisions but
sales and profit fell, a sign
the company’s transformation still has a way to go. B1
EURO $1.1766
YEN 112.20
Airbus agreed to take control of Bombardier’s CSeries
jet project, sending the Canadian firm’s stock price to a
more than two-year high. B3
BY JULIET CHUNG
AND ANUPREETA DAS
George Soros, who built one
of the world’s largest fortunes
through a series of famous
trades, has turned over nearly
$18 billion to Open Society
Foundations, according to foundation officials, a move that
transforms both the philanthropy he founded and the investment firm supplying its
wealth.
Now holding the bulk of Mr.
Soros’s fortune, Open Society
has vaulted to the top ranks of
philanthropic organizations, appearing to become the second
largest in the U.S. by assets after the Bill and Melinda Gates
Foundation, based on 2014 figures from the National Philanthropic Trust.
Soros Fund Management
LLC’s 87-year-old founder now
shares influence over the firm’s
strategy with an investment
committee of Open Society. Mr.
Amazon said Price quit as
head of its film and TV operations following a sexualharassment accusation. A10
The Dow crept above
23000 in intraday trading
before closing up 40.48
points at 22997.44. B17
Saudi Arabia still plans an
Aramco IPO in 2018, the energy minister said, after reports it may be scrapped. B16
The USDA dropped efforts to tighten rules on how
meatpackers deal with poultry and livestock farmers. B2
UnitedHealth’s core units
grew, despite a dent in revenue caused by the firm’s pullout from ACA markets. B7
Key senators reached a
bipartisan deal aimed at
shoring up the ACA, but the
compromise could still be
derailed by conservative
House Republicans. A1, A4
U.S.-backed forces captured the Syrian city of
Raqqa from Islamic State,
driving the extremists from
their last major urban
stronghold in the Mideast. A1
Kurdish forces relinquished control over a huge
swath of northern Iraq they
had taken from Islamic
State to Iraqi forces. A7
Trump’s new travel ban
drew fire from a U.S. judge,
who blocked implementation of restrictions on six
Muslim-majority nations. A4
Trump fired back at
McCain after the GOP senator took aim at the nationalist and isolationist
rhetoric in his party. A4
The president’s pick for
drug czar removed himself
from consideration. A6
Two Chinese men were
charged with running drug
networks that shipped fentanyl to U.S. consumers. A6
Trump’s top trade envoy
traded barbs with his Mexican and Canadian counterparts, magnifying the trading
partners’ rifts over Nafta. A2
The U.S. Treasury declined again to label China
a currency manipulator
but criticized Beijing for
its large trade surplus. A8
Britain faces a rising
threat of Islamic terrorism, its domestic intelligence chief said. A9
Opinion.............. A15-17
Property Report... B8
Sports....................... A14
Technology.......... B4-5
U.S. News............. A2-6
Weather ................. A14
World News........ A7-9
>
ERIK DE CASTRO/REUTERS
J.P. Morgan agreed to buy
WePay, its first sizable acquisition of a fintech firm. B16
World-Wide
in both chambers if it is tethered to another issue. In the
Senate, one possibility is that it
could be combined with a disaster-relief bill passed by the
House last week, lawmakers and
aides said.
Prospects in the House are
tougher. After the broader
health-care overhaul came up
short in the Senate, many
House Republicans are resisting
the idea of shoring up part of a
law they pledged to dismantle.
They view some provisions in
the bipartisan agreement as cementing the 2010 law and an
admission of defeat in their ef-
fort to roll it back.
“Obamacare is in a ‘death
spiral,’” Rep. Mark Walker (R.,
N.C.), chairman of the Republican Study Committee, a group
of about 150 House Republicans,
wrote on Twitter Tuesday.
Please see HEALTH page A4
Travel Ban
Blocked Again
A federal judge barred
implementation of the latest
Trump restrictions.............. A4
Soros Gives Bulk
Of Fortune to
His Foundation
SoftBank and Lendlease
plan to form a joint venture
to build or manage about
8,000 U.S. cell sites, challenging tower operators. B1
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
GOLD $1,283.00 g $16.90
Bipartisan Health Bill Gains Steam
What’s
News
CONTENTS
Business News..... B3,7,11
Crossword.............. A14
Heard on Street. B18
Life & Arts...... A11-13
Management....... B10
Markets............. B17-18
HHHH $4.00
WSJ.com
WEDNESDAY, OCTOBER 18, 2017 ~ VOL. CCLXX NO. 92
* * * * * *
Soros set up the committee and
is its chairman, but it is meant
to survive him, people familiar
with it said.
A new chief investment officer at the Soros firm is less a
trader than an allocator of capital to various internal and external asset managers. Unlike past
investment chiefs, the official,
Dawn Fitzpatrick, doesn’t report
to Mr. Soros or others at his
firm but to the philanthropy’s
investment committee.
Mr. Soros doesn’t plan to
trade the billions that now belong to Open Society, said people familiar with the situation.
Mr. Soros was trading his own
money, held separately within
the Soros firm, as recently as
last year, when he bet—wrongly,
it turned out—that stocks
would slump after Donald
Trump was elected president.
Though the $26 billion Soros
Fund Management was a pioneering hedge fund, it returned
Please see SOROS page A2
Morgan Stanley’s Big Bet Pays Off
The Wall Street firm is reaping gains from CEO James Gorman’s postcrisis decision to go big into wealth management. His army of brokers
more than compensated for a slowdown in trading last quarter. B1
The Kurdish-led Syrian Democratic Forces, backed by U.S. airstrikes and American special forces on
the ground, on Tuesday said they had captured Islamic State’s de facto capital of Raqqa.
U.S.-Led Forces Retake Raqqa,
Islamic State’s Syria Stronghold
BY MARIA ABI-HABIB
BEIRUT—U.S.-backed forces
said they have captured Islamic
State’s de facto capital of Raqqa,
driving the extremists from a
Syrian city that became synonymous with their reign of terror
and was used as a nerve center
to stage attacks on the West.
The Kurdish-led Syrian
Democratic Forces, backed by
U.S. airstrikes and American
special forces on the ground,
on Tuesday said they had secured a sports stadium in the
A New Curse
On the Cubs:
No Chalupas!
i
i
city the group had converted
into a fortified compound.
“The military operations
within the city are completely
over,” said Talal Silo, a spokesman for the SDF, which led the
monthslong battle against Islamic State in Raqqa. “We are
combing through the city to
make sure there are no sleeper
cells and to defuse the mines.”
Army Col. Ryan Dillon, a
spokesman for the U.S.-led coalition fighting Islamic State,
said the extremist group is “on
the verge of a devastating de-
feat,” adding that 90% of
Raqqa has been cleared.
Islamic State hasn’t commented.
With the fall of Raqqa—Islamic State’s last major urban
stronghold in the Middle East—
the self-declared caliphate is
meeting an inglorious end.
The first significant city to
Please see RAQQA page A7
Iraqis push deeper into
Kurdish areas............................. A7
Yaroslav Trofimov: Conflicts
flare up as ISIS fades........... A7
The Other Weinstein
Was an Abusive Boss
i
Fans rally to save
their beloved
ballpark Taco Bell
BY BRIAN COSTA
CHICAGO—Fans of the Chicago Cubs are famous for demonstrating fierce loyalty to their
most beloved traditions and
symbols, and for heaping wrath
on all who dare besmirch them.
Their latest cause célèbre is a
Taco Bell.
The fast-food joint, which
sits just a home run’s length
away from historic Wrigley
Field, is not remarkable on its
face. It stays open 22 hours a
day and has a drive-through
lane. A Chalupa Supreme can be
obtained on the premises for a
base price of $2.99.
But the recent sale of the
property to a developer that
Please see CUBS page A8
Former associates describe a volatile temper
BY ALEXANDRA BERZON
AND BEN FRITZ
Over the years, movie producer Bob Weinstein has belittled and bullied employees,
shoved an executive’s spouse
and pressured a subordinate
to date him, people who
worked for him said.
Bob Weinstein hasn’t been
accused of the kind of severe
sexual misconduct that led to
the ouster of his brother, Harvey, from Weinstein Co., the
film and television studio they
jointly ran. Instead, according
to multiple former employees
and business associates, he
was a volatile executive whose
behavior, which went on for
years at his companies,
wouldn’t be tolerated in most
American corporations.
Jeffrey Katzenberg, who ran
Walt Disney Co.’s movie studio
for some of the time it owned
the brothers’ former studio
Miramax, said it was Bob
Weinstein who caused problems for Disney executives.
“Bob Weinstein was genuinely
abusive to people in my company,” Mr. Katzenberg recalled
in an interview Monday at The
Wall Street Journal’s WSJ
D.Live technology conference.
“The one person who revealed
himself in a way that was unacceptable to me was, in fact,
Bob.”
Last year, Bob Weinstein,
then recently divorced from
his second wife, pressed television producer Amanda Segel
to join what he said were
work-related dinners in which
he seemed to be pressuring
Please see STUDIO page A10
Amazon executive quits amid
sex claim.................................... A10
Pretax profit margin at Morgan Stanley's
wealth-management business
25%
22% 22%
20%
18%
12%
9%
2010
10%
2011
2012
*through Sept. 30
Source: the company
2013
2014
2015
2016
2017*
THE WALL STREET JOURNAL.
NBA
IS LIVE.
Powered by SAP HANA®, the NBA gives fans
a live, statistical experience that spans from
1946 to the most recent play. While financial,
travel, and HR solutions from SAP help the
NBA run live—on and off the court.
sap.com/nbalive
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A2 | Wednesday, October 18, 2017
THE WALL STREET JOURNAL.
* ***
U.S. NEWS
U.S. Nafta Negotiator Takes Aim at Rivals
BY JACOB M. SCHLESINGER
AND WILLIAM MAULDIN
WASHINGTON—President
Donald Trump’s top trade negotiator exchanged public
barbs with his Mexican and
Canadian counterparts as well
as U.S. businesses on Tuesday,
magnifying large gaps over
the North American Free
Trade Agreement and highlighting the obstacles to keeping the pact alive.
“Frankly, I’m surprised and
disappointed by the resistance
to change from our negotiating partners,” U.S. Trade Representative Robert Lighthizer
told reporters after a week of
talks on renegotiating Nafta,
as Mexican and Canadian ministers stood beside him.
The resistance, countered
Canadian Foreign Minister
Chrystia Freeland, was in response to a “troubling” vision
of change that would “turn
back the clock on 23 years of
predictability, openness, and
collaboration” and in some
cases would violate global
trading rules.
Mexican Economy Minister
Ildefonso Guajardo was more
muted in his criticism, but in a
later press briefing talked
openly about the need for an
alternative plan should the
talks fall apart. Ms. Freeland
did the same.
Mr. Lighthizer also made
clear that any successful negotiation, in his view, will have
to run roughshod over big U.S.
business groups like the U.S.
Chamber of Commerce, which
have traditionally been the
backbone of support for freetrade pacts. Mr. Lighthizer escalated his war of words with
the Chamber and other groups
that have campaigned to
quash the Trump administra-
have the market decide, but
we would like to have political
risk insurance paid for by the
U.S. government,’ ” Mr. Lighthizer said. “To me that’s absurd. You’re either in the market or you’re not in the
market.”
Despite the harsh disagreements among the government
representatives, they all
agreed to keep on talking to
try to salvage and modernize
Nafta, setting a new round for
late November in Mexico, and
agreeing to push the talks
past their earlier year-end
deadline into the first quarter
of 2018, according to a joint
statement from the three
countries.
And while business groups,
economists, and Mexican and
Canadian officials have been
‘We don’t really have
a plan beyond trying
to get a good
agreement.’
tion’s proposals aimed at redefining Nafta in a way that
would weaken many of its incentives and protections for
creating a more integrated regional economy.
“Business says ‘we want to
increasingly vocal about their
worries Mr. Trump would follow through on his threats to
pull out of Nafta, Mr. Lighthizer went out of his way to
play down that prospect.
“There’s not an active process going on right now” reviewing termination, he said.
“We don’t really have a plan
beyond trying to get a good
agreement.”
One proposal of Mr. Lighthizer that has drawn particular business scorn would inject a sunset clause into Nafta,
forcing it to expire after five
years unless the three countries took action to renew it.
Another would dilute a provision aimed at arbitrating disputes between foreign investors and foreign governments,
giving multinationals confi-
U.S. WATCH
Pennsylvania Welcomes Fall Foliage
EDUCATION
MARK MORAN/THE CITIZENS’ VOICE/ASSOCIATED PRESS
States Sue Over Rule
On For-Profit Schools
COOL DOWN: Frost was visible on bales of hay near a farm in Monroe Township, Pa., on Tuesday, after temperatures dropped overnight.
SEAN GALLUP/GETTY IMAGES
SOROS
Continued from Page One
outside investors’ money several years ago and became a
family office, a structure increasingly popular with wealthy
clans.
Mr. Soros began his giving in
1979 and stepped it up to fight
communism across Eastern Europe. In 1984, he set up a foundation in Hungary, the country
of his birth, that distributed
photocopiers to universities and
libraries to break the government’s hold on information.
Having lived under both
communism and a Nazi occupation in Hungary, Mr. Soros
hoped to foster “open societies”
in places where authoritarian
governments held power. He
named his foundation after a
book by the philosopher Karl
Popper, one of his teachers, that
defended liberal democracies.
Open Society today operates
through a network of more than
40 foundations and offices in
countries from Afghanistan to
South Africa. It has funded refugee relief, public-health efforts
and programs including a mobile court for gender crimes in
the Democratic Republic of the
Congo. It also advocates for
rights of the Roma, one of Europe’s largest ethnic minorities.
Open Society’s activism has
sometimes angered nationalist
governments, such as the current one in Hungary, which has
run poster campaigns singling
Mr. Soros out for his support of
refugees. He has urged developed countries in Europe and
elsewhere to share the burden
of increased migration from
conflict-ridden countries.
In the U.S., where Mr. Soros
is a major contributor to liberal
and Democratic causes, he is a
lightning rod for conservatives.
Open Society has supported efforts to overhaul immigration
policies and the criminal-justice
system, including prisons, and
funded mentoring programs for
black and Latino young men. It
has supported activists working
on issues raised by the Black
Lives Matter movement.
In all, Mr. Soros and Open
Society have given $14 billion so
far, the foundation said.
A Hillary Clinton supporter,
Mr. Soros was an outspoken
critic of Mr. Trump, whose campaign cited him in a closing ad
as part of a “global power structure” the ad said disadvantaged
the working class. After the
election, Open Society said it
would spend $10 million to fight
Investor George Soros has given nearly $18 billion, the bulk of his
fortune, to his philanthropy, Open Society Foundations.
hate crimes, a problem Mr. Soros said had been inflamed by
the Trump campaign.
When it comes to investments, philanthropic foundations typically focus more on
preserving capital than maximizing returns. Now that Soros
Fund Management’s main client
is a philanthropy, several people
close to the firm say they expect it to curtail its tradition of
large “macro” trades—wagers
on the direction of currencies,
stocks, commodities or interest
rates.
Mr. Soros declined to be interviewed. Ms. Fitzpatrick, the
new investment chief, said the
firm isn’t backing away from
macro investing but expects future opportunities to be more
fleeting and smaller. “There are
fewer currencies, [and] central
banks are savvier and more coordinated now,” she said.
Mr. Soros immigrated to
Britain as a youth, studied philosophy and then became a
stock trader, before moving to
the U.S. and setting up what became Soros Fund Management
in 1969.
In a trade that brought him
wide attention, he made a giant
“short” wager against the British pound in the early 1990s,
which paid off when Britain devalued its currency and withdrew from that era’s European
Exchange Rate Mechanism. Mr.
Soros’s firm earned roughly $1
billion; he was dubbed the man
who broke the Bank of England.
A run of rich annual returns
hit a pothole in 2000, when the
flagship Quantum fund lost
heavily on cratering technology
and biotech stocks. Discord with
Mr. Soros over the soured tech
bets factored in the departure
of his investment chief of 11
years, Stanley Druckenmiller, to
whom Mr. Soros credited the
idea for the pound trade.
dence to operate in countries,
like Mexico, that don’t offer
developed-world legal protections.
Business groups say those
changes would inject new uncertainty and unpredictability
into Nafta, making it harder
for them to plan around it.
Mr. Lighthizer said that
was precisely the point. Nafta,
he said has been “a great deal
for businesses that want to
take advantage of a situation”
encouraging them to invest in
Mexico.
“I think it’s possible take a
little bit of the sugar away
and have them still say we’re
doing pretty well,” he said.
A Chamber of Commerce
spokeswoman declined to
comment on Mr. Lighthizer’s
latest remarks.
Open Society
Projects
Open Society's activities fall
under 10 main themes, which
make up part of a 2017 budget
of $940.7 million.
Economic Governance
and Advancement
$99.5M
Justice Reform
and the Rule of Law
$89.6M
Equality and
Anti-Discrimination
$82.8M
Human Rights
Movements and Institutions
$81.7M
Democratic Practice
$80.2M
Health and Rights
$57.2M
Journalism
$25.5M
Early Childhood and Education
$22.4M
Higher Education
$21.4M
Information and Digital Rights
$14M
Cross-Thematic
$12.8M
Source: Open Society Foundations
THE WALL STREET JOURNAL.
That marked the start of
continued change atop the firm
as chief investment officers cycled through. Some operations
also were rejiggered, which exemployees said was partly to
make way for Mr. Soros’s eldest
sons. Despite regularly telling
others he was retired, Mr. Soros
occasionally stepped back into
active trading, such as during
the financial crisis, when he
helped guide his firm to big
gains. Former employees say
some past investment chiefs
bristled at how Mr. Soros inserted himself in operations.
The longest-serving recent
investment chief, Scott Bessent,
stopped by Mr. Soros’s estate in
Southampton, N.Y., one July
weekend in 2015 and said he
was thinking of leaving to start
a hedge fund of his own, adding
he would want more authority
were he to stay. He didn’t get it.
Mr. Bessent soon left, ending a
strong run of 4 1/2 years with a
$2 billion investment in his new
fund from Mr. Soros.
The departure, the fifth by a
Soros investment chief in 15
years, coincided with a steppedup pace of change at the firm.
Mr. Soros decided that year to
form the Open Society investment committee that now
wields power, and his wealth
transfers to the philanthropy
accelerated around the same
time.
That most of his fortune
would eventually go to Open Society has long been known. He
plans to give it most of the rest
in his lifetime or upon his
death, said people familiar with
the matter.
Ms. Fitzpatrick, a former options trader who began in
April, arrived from UBS Asset
Management, where she oversaw teams managing more than
$500 billion. Her priority isn’t
making her own trades but
moving money as opportunities
shift, said people familiar with
the Soros firm.
They added she is whittling
the number of managers given
money to invest and is seeking
to build a more collaborative
approach, such as by linking
employee pay more closely to
returns of the firm as a whole.
The firm has about $6 billion in
private-equity and related investing, from African cellphone
towers to a stake in a restaurant
chain called Dinosaur Bar-BQue. The overseers of this
chunk of money report to Open
Society’s investment committee.
Ms. Fitzpatrick, 47, and Mr.
Soros speak regularly, with Mr.
Soros sharing his view of the
markets but so far refraining
from interfering in her decisions.
Mr. Soros now spends about
half the year on the road in connection with Open Society’s
work and rarely visits his office
at his firm’s Manhattan headquarters. He still gets a daily
copy of its profit-and-loss statement.
A coalition of Democratic attorneys general from 18 states
and the District of Columbia
filed a lawsuit Tuesday against
the U.S. Education Department
and Education Secretary Betsy
DeVos for refusing to enforce an
Obama-era rule intended to protect students and taxpayers
from predatory for-profit
schools.
This summer Mrs. DeVos
suspended the so-called gainful
employment rules before they
took effect. If enacted they
would have cut off federal funding for schools where students
leave with high debt and end up
in jobs with low salaries.
The suit, filed in the U.S. District Court in Washington, D.C.,
calls Mrs. DeVos’s suspension
of those rules “unlawful” and accuses her of trying to “run out
the clock” through a series of
delays until she can implement
new regulation.
“Failing to implement the
Gainful Employment Rule leaves
students vulnerable to exploitation and fraud,” said New York
Attorney General Eric T. Schneiderman, who is among those
who filed the suit.
Liz Hill, spokesman for Mrs.
DeVos, called the suit politically
motivated.
—Douglas Belkin
ECONOMY
Industrial Production
Rises Modestly
U.S. industrial output picked
up modestly in September, a
sign a key sector of the economy is weathering the hurricane-related disruption that hit
the prior month.
Industrial production—a measure of output at factories,
mines and utilities—increased a
seasonally adjusted 0.3% in September from the prior month,
the Federal Reserve said.
Tuesday’s report estimated
Hurricanes Harvey and Irma held
down the growth in total industrial production in September by
0.25 percentage point.
A decline in industrial production in August was revised upward, suggesting storm-related
disruptions were less severe
than initially reported. Production slipped 0.7% that month instead of the first estimate of
0.9%. Industrial output was up
1.6% on the year to September.
—Harriet Torry
CALIFORNIA
FEMA Head Visits
Fire-Hit Wine Country
Federal Emergency Management Agency director Brock
Long toured fire-impacted areas
of California’s wine country
Tuesday as firefighters continued to make progress, but a
new blaze has broken out in another county.
The Bear Fire, which began
Monday night in the Santa Cruz
mountains about 70 miles south
of San Francisco, by Tuesday
had burned 200 acres, destroyed
four structures and threatened
150 others. Five firefighters
were hurt, but their injuries were
not life threatening, officials said.
Since the wildfires started
across California on the evening
of Oct. 8, more than 245,000
acres have burned across the
state, with more than 11,000
firefighters fighting the blazes,
state fire officials said. The
death toll remained at 41 Tuesday with more than 5,700 structures destroyed.
State fire officials said more
than 34,000 people remained
evacuated Tuesday, though
many evacuation orders are being re-evaluated or lifted.
Mr. Long met with state and
local officials and visited disaster
assistance centers in Sonoma
and Napa counties.
—Jim Carlton
and Alejandro Lazo
CORRECTIONS AMPLIFICATIONS
In countries where people
are automatically cleared to
donate organs unless they register not to, an average of
about 90% remain in the donor pool. The Intelligent Investor column on Saturday incorrectly said that 90% end up
donating. In countries where
people must actively choose to
donate organs, roughly 15%
join the donor pool. The column incorrectly said 15% become donors.
Virginia is one of the
states where plans to expand
Medicaid programs were put
on hold as Congress debated a
repeal of the Affordable Care
Act. A U.S. News article Tuesday about a Maine vote on
Medicaid expansion incorrectly said West Virginia was
one of the states.
Reporter Christina Goldbaum’s surname was misspelled as Goldblaum in some
editions Tuesday on a World
News article about the recent
Somalia bombings.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | A3
U.S. NEWS
About 150,000 college students in Texas are still enrolled in
high school, an increasing share, thanks to a rise in dual-credit
course participation.
Dual-enrollment
programs gain steam
despite little research
into long-term impact
BY MELISSA KORN
More high-school students
are taking college classes as
districts push low-cost paths to
higher degrees.
The classes, often referred
to as dual-enrollment programs, are expanding nationwide, with some states posting
stunning growth in response to
policy changes and legislative
directives to increase the educational attainment levels of
their residents.
In California, nearly 70,000
high-school students were enrolled in a college class last
spring, double the count from
fall 2014. More than 65,000
Educators Question
Quality of Courses
Some institutions of higher
education are questioning
whether dual-enrollment courses
really count as college-level work.
In Ohio, more than half such
classes are now delivered at high
schools to classes made up entirely of high-school students.
The share is increasing as schools
push to boost enrollments in the
programs. Historically, the small
number of high-school students
who took college courses did so
Hinkley High School in Aurora, Colo. The state is studying the benefits of its increasingly popular dual-enrollment programs.
Ohio high-school students participated in dual-enrollment offerings last year, based on preliminary tallies. And in Texas,
the number of dual-enrollment
students jumped by one-third
since 2012, to about 150,000
last fall. The classes are generally taught via area community
colleges.
“Dual credit can be a tremendous boon for students. It
reduces the cost of higher education; [students] can save 15,
20, 30 hours of college credit,”
said Raymund Paredes, commissioner of higher education
for Texas.
School districts, which typically pay for the programs, are
increasingly pitching them to
young people with middling academic records, or who may be
undecided on college. The goal
is to make more students marketable in an economy where
well-paying careers in fields in-
cluding technology and health
care often require credentials
beyond a high-school diploma.
They also attract academically advanced students looking
to shorten their path to a twoor four-year degree or gain an
advantage in admissions,
though some experts question
their rigor as compared with
Advanced Placement courses
capped by standardized exams.
Classes range from vocational offerings suited to individuals who want to earn associate’s degrees and become
automotive technicians straight
out of high school, to general
education math and English
classes that fulfill basic requirements at most public colleges.
Research has found that earlier groups of students in dualenrollment programs got better
grades, stayed in college and
ultimately graduated at higher
rates than those who didn’t
at a college, surrounded by regular college students.
Utah Valley University
teaches many of its classes in
designated sections of nearby
high schools decorated with
university paraphernalia. High
schoolers across Colorado can
take college classes down the
hall from their homerooms.
That convenience helps boost
participation, advocates say. Accreditors say they maintain quality control by mandating that
teachers hold the same credentials as adjunct professors and
that course materials are reviewed by university faculty.
Still, there is widespread
skepticism. Tulane University in
New Orleans will consider awarding credit only for dual-enrollment classes taught on a college
campus, by a college professor,
and intended mainly for college
students—such as extra classes
taken during the summer.
“Those are going to equate
most to a real college course because they are college courses,”
said Tulane undergraduate admission director Jeff Schiffman,
adding that the quality of
classes run through high schools
can be harder to determine.
—Melissa Korn
S A K S F I F T H AV E N U E
C E L E B R AT E S
ITALIAN
STYLE
WITH BRUNELLO CUCINELLI
participate. But outcomes for
more recent cohorts, which include a more diverse set of students and not just academic
stars, are still unknown.
“There are some elements of
the rapid expansion that concern me,” Mr. Paredes said.
“We can expand as rapidly as
the pool of high-school students that are college-ready
grows. I think we’ve outstripped that.”
Mr. Paredes said Texas has
roughly 120,000 high-school
students meeting its “collegeready” benchmarks, below the
150,000 now taking dual-credit
classes. A 2015 law in that state
allowed high-school freshmen
and sophomores to join upperclassmen in taking dual-enrollment courses.
Texas officials are awaiting
results of a third-party study
to determine outcomes for students included in that expanded pool.
Colorado, meanwhile, said
this month it received a
$400,000 federal grant to
study the benefits of its increasingly popular dual-enrollment programs.
“We need to be sure we understand how well the programs are functioning,” said
Kim Hunter Reed, executive director of the Colorado Department of Higher Education.
For example, prior research
there showed participants ultimately earned more college
credits than other students. But
racking up credits doesn’t necessarily equate to obtaining a
degree if the courses don’t
count toward a major.
©T&CO. 2017
High Schools
Push Classes
For College
CHET STRANGE FOR THE WALL STREET JOURNAL
Dual-credit enrollment in public universities
Dual-credit enrollment in community and technical colleges
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A4 | Wednesday, October 18, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
BY BRENT KENDALL
ban, saying the measures are
needed to protect national security. Critics have argued the
bans are all akin to the kind of
Muslim ban that Mr. Trump
called for during last year’s
presidential campaign.
The administration vowed a
quick appeal of Tuesday’s ruling, setting the stage for proceedings that could bring the
matter back to the Supreme
Court, which hasn’t yet had an
opportunity to rule definitively on Mr. Trump’s efforts.
The justices recently canceled
oral arguments on the second
travel ban after the president
announced his new version of
the policy.
Judge Watson, an Obama
appointee, said the new restrictions, announced by Mr.
Trump on Sept. 24, make improper judgments about the
risks of certain travelers based
on their nationality. The judge,
who ruled against Mr. Trump’s
previous ban, said the president still hasn’t demonstrated
President Donald Trump’s
new effort to impose a travel
ban drew fire Tuesday from a
federal judge who blocked implementation of restrictions
on people from six Muslimmajority countries, on the eve
of the policy taking full effect.
U.S. District Judge Derrick
Watson in Hawaii on Tuesday
became the first judge to
weigh in on the new travel restrictions, which target eight
countries. The judge said the
ban was likely unlawful and issued a temporary restraining
order that prohibits the
Trump administration from
enforcing it for the Muslimmajority countries.
The decision by Judge Watson marks a new chapter in a
tussle between the courts and
the president that began
shortly after Mr. Trump took
office.
Mr. Trump is trying for the
third time to impose a travel
GEORGE F. LEE/ASSOCIATED PRESS
Judge Deals Blow to New Travel Ban
U.S. District Judge Derrick
Watson in Hawaii
that existing law is insufficient
to protect national security.
The president’s latest ban
“suffers from precisely the
same maladies as its predecessor: it lacks sufficient findings
that the entry of more than
150 million nationals from six
specified countries would be
detrimental to the interests of
the United States,” the judge
wrote in a 40-page opinion.
The White House called the
ruling “dangerously flawed”
and said it “undercuts the
president’s efforts to keep the
American people safe and enforce minimum security standards for entry into the United
States.”
The new ban applies to
countries based on their “inability or unwillingness to
share critical information necessary to safely vet applications, as well as a threat assessment related to terrorism,
instability and other grave national security concerns,” the
White House said.
The latest travel ban sought
to apply a range of restrictions
to people from Chad, Iran,
Libya, North Korea, Somalia,
Syria, Venezuela and Yemen. It
was slated to go into full effect on Wednesday.
Some of the countries were
facing a near-total ban, while
WASHINGTON
WIRE
others were facing more tailored restrictions that allowed
some travelers, such as students, to come to the U.S. on
nonimmigrant visas.
The restrictions involving
North Korea and Venezuela
were unaffected by the ruling
because the state of Hawaii,
which brought the lawsuit,
didn’t challenge those provisions.
“This is the third time Hawaii has gone to court to stop
President Trump from issuing
a travel ban that discriminates
against people based on their
nation of origin or religion,”
Hawaii Attorney General Doug
Chin said. “Today is another
victory for the rule of law. We
stand ready to defend it.”
Other cases are pending
around the country, and a
judge in Maryland held a public court session on Monday, in
three combined cases brought
by civil-rights and immigrantrights groups. A ruling in that
case could come at any time.
CENTRAL BANK
President to Choose
Fed Leader Soon
President Donald Trump said
he soon would choose a Federal
Reserve chairman, having narrowed his search to five finalists.
“Honestly, I like them all, I
do,” the president said at a news
conference Tuesday in the Rose
Garden. “I have a great respect
for all of them.”
A White House official said
earlier Tuesday that Mr. Trump
is expected to make a decision
before his trip to Asia, which begins Nov. 3.
The Republican president said
he would make the decision over
the next “fairly short period of
time.”
The finalists are current Fed
Chairwoman Janet Yellen, who is
scheduled to meet with the
president Thursday; Fed governor Jerome Powell; former Fed
governor Kevin Warsh; National
Economic Council Director Gary
Cohn; and Stanford University
economist John Taylor, the
White House official confirmed.
—Peter Nicholas
and Kate Davidson
Trump Warns McCain After Senator’s Sharp Speech
BY SIOBHAN HUGHES
ADMINISTRATION
FCC Chief Champions
First Amendment
The nation’s top telecommunications regulator brushed aside
President Donald Trump’s suggestion that the government revoke licenses of network television outlets over their news
coverage.
“I believe in the First Amendment,” said Ajit Pai, the chairman
of the Federal Communications
Commission, at a Washington
conference on Tuesday. “The FCC
under my leadership will stand
for the First Amendment, and
under the law the FCC does not
have the authority to revoke a
license from a broadcast station
based on the content of a particular newscast.”
Mr. Trump complained last
week about a report by NBC
News that the president had
sought a 10-fold increase in the
nation’s nuclear arsenal. The Republican president denied that,
saying such an increase was “totally unnecessary” and that he
favored modernization of the arsenal instead.
“With all of the Fake News
coming out of NBC and the Networks, at what point is it appropriate to challenge their License?
Bad for country!” Mr. Trump
tweeted. NBC News declined to
comment at the time.
Mr. Pai’s remarks drew criticism on Tuesday from some
Democrats who said the FCC
chairman should have spoken
sooner and more forcefully.
—John D. McKinnon
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
WASHINGTON—President
Donald Trump fired back at
Sen. John McCain, one day after the GOP lawmaker from
Arizona took aim at the nationalist and isolationist rhetoric that has swept through the
Republican Party and was part
of Mr. Trump’s 2016 campaign.
“People have to be careful,
because at some point I fight
back,” Mr. Trump told The
Chris Plante radio show when
asked about a late Monday
speech in which Mr. McCain
condemned “half-baked, spurious nationalism cooked up
by people who would rather
find scapegoats” than solve
problems.
“You know, I’m being very
nice. I’m being very, very
nice,” the GOP president said.
“But at some point I fight back
and it won’t be pretty.”
“It’s fine with me,” Mr. McCain, a fellow Republican, responded on Tuesday to Mr.
Trump’s remark. “I’ve faced
some fairly significant adversaries in the past.”
The verbal sparring was the
latest round of animosity between Mr. Trump and Mr. McCain, who was a prisoner of
war in Vietnam. The president
has criticized Mr. McCain,
most recently for his vote
dooming a Republican plan to
repeal the Affordable Care
Act; during the presidential
campaign, Mr. Trump said Mr.
McCain was “not a war hero”
and that “I like people who
weren’t captured.”
In Philadelphia on Monday
Sen. John McCain arrived at the Capitol in Washington on Tuesday. His speech the night before sparked a rebuttal from President Trump.
night, Mr. McCain spoke after
the National Constitution
Center bestowed on him an
award honoring his fight for
liberty. He emphasized the
benefits that arise from the
U.S.’s willingness to engage
with the world.
“To fear the world we have
organized and led for threequarters of a century, to abandon the ideals we have ad-
vanced around the globe, to
refuse the obligations of international leadership and our
duty to remain ‘the last best
hope of earth’ for the sake of
some half-baked, spurious nationalism cooked up by people
who would rather find scapegoats than solve problems is
as unpatriotic as an attachment to any other tired dogma
of the past that Americans
consigned to the ash heap of
history,” he said.
The senator, who is undergoing treatment for an aggressive form of brain cancer,
delivered his remarks at an
outdoor ceremony on a chilly
autumn night in the company
of his friend, former Vice
President Joe Biden, a Democrat whose son died two
years ago from the same
brain cancer that Mr. McCain
is now battling.
Mr. McCain appeared to
choke up as he accepted the
award.
“Among the few compensations of old age is the acuity
of hindsight,” Mr. McCain, 81
years old, said toward the
end of his remarks. “I see
now that I was part of something important.”
BY MICHELLE HACKMAN
AND ANNA WILDE MATHEWS
Tuesday’s bipartisan healthcare deal contains wins for
Democrats—primarily a twoyear guarantee that certain
ACA subsidies will be paid—
and includes several GOP priorities that make insurance
plans more flexible.
What do Democrats get?
The Alexander-Murray deal
addresses the Democrats’ most
immediate concern: subsidies
known as cost-sharing reduction payments, billions of dollars paid to insurers to limit
out-of-pocket costs for low-income consumers. President
Donald Trump said last week he
would discontinue making the
payments. Democrats and
health analysts feared cutting
them off would send costs soaring in the ACA market and
might prompt some insurers to
exit. A two-year guarantee will
lend the law some measure of
stability at a time when Democrats are attempting to ward off
repeated GOP efforts to kill it.
Democrats also successfully
negotiated for $106 million in
funding for outreach ahead of
the law’s open enrollment period, set to begin Nov. 1. That
money helps make up for the
$116 million the Trump administration planned to cut from
its outreach budget. The funding will pay for advertising
around open enrollment and
navigators,
on-the-ground
groups who help people sign
up for ACA coverage.
What do Republicans get?
Sen. Lamar Alexander, the
lead GOP negotiator, said the
deal expands the usefulness of
ACA waivers that allow states
to sidestep certain ACA rules to
remold some aspects of the law,
such as how premium subsidies
are distributed or how much insurers can be permitted to
charge their oldest customers.
Under the deal, states can apply
for waivers on a quicker timeline, and those waivers will be
governed by looser budgeting
requirements, expanding the
range of actions states can take.
The bill will also allow anyone to buy catastrophic plans,
which come at a lower price
point but carry large deductibles. The ACA prohibited people over age 30 from purchasing such plans to encourage
them to get more expensive,
ACA-compliant plans with
fuller coverage.
What does the plan mean
for health insurers?
Insurers have been pushing
for months for a deal in Congress to lock in the cost-sharing payments. But the pact
comes so late that it might
add more uncertainty, at least
in the short term. Many insurers have already locked in
their 2018 premiums and plan
offerings on the ACA exchanges, with extra rate increases to cover the expense
of the canceled federal costsharing payments. The plans
are due to go on sale to consumers on Nov. 1, giving Congress a small window to act.
Continued from Page One
“Anything propping it up is only
saving what Republicans promised to dismantle.”
Still, the House would be under intense pressure to take action if the Senate passes the
bill, particularly given Mr.
Trump’s support for the deal.
While the GOP president had
said he wouldn’t sign a bipartisan deal that preserved payments to insurers, he has in the
past week signaled he would
support an agreement if it came
with more flexibility for states.
Expressing support on Tuesday, Mr. Trump said, “The solution will be for about a year or
two years. And it’ll get us over
this intermediate hump.”
The president said he ultimately believed block grants to
states would be the answer, referring to a GOP plan that
would have turned the health
law’s funding over to states to
spend on their own health systems. That proposal never
gained enough GOP support to
move ahead.
A longer fix would fall to the
next head of the Health and Human Services Department. For
that post, Mr. Trump is considering Alex Azar, a White House
official said Tuesday.
Mr. Azar, a lawyer who has
worked as an executive at Eli
Lilly & Co. could replace former
HHS Secretary Tom Price who
resigned in September.
For Democrats, the bill preserves for two years the billions
of dollars in payments made to
insurers to help offset consumers’ out-of-pocket costs, lawmakers and aides said.
Mr. Trump said last week
TOM WILLIAMS/ZUMA PRESS
How Democrats, GOP, HEALTH
Insurers Fare in Deal
Sen. Patty Murray (D., Wash.) and Sen. Lamar Alexander (R.,
Tenn.) at a Senate hearing on Tuesday.
that his administration would
end the payments, which he
claimed were giveaways to insurance companies. Democrats
and health analysts feared the
canceled subsidies would lead
to rising premiums and scant
insurer participation on the individual exchange markets.
But Mr. Trump had told at
least one senator he was open
‘The uncertainty and
the dysfunction
cannot continue,’ Sen.
Patty Murray said.
to a deal and he cheered on Mr.
Alexander in weekend discussions. “President Trump has encouraged us. He said he doesn’t
want people to get hurt in these
next two years,” Mr. Alexander
said, summarizing his phone
calls with Mr. Trump. “There’s
an emerging, encouraging consensus.”
The bill also appeals to Dem-
ocrats because it would restore
$106 million in federal funding
for outreach over the ACA’s
open-enrollment season that
begins Nov. 1, people familiar
with the deal said. Mr. Trump’s
administration said in August it
would cut much of that money.
Democrats have said that
cutting the outreach is designed
to undermine the law and is
sowing confusion.
“The uncertainty and the
dysfunction cannot continue,”
Ms. Murray said Tuesday.
The legislation would also
initiate changes sought by Republicans, including allowing
more people to buy “catastrophic plans,” which are less
comprehensive plans with high
deductibles but low premiums.
Under the law, those plans
are limited to people with financial hardships and those under
age 30. Republicans have said
expanding access to the plans
would drive down monthly payments for many consumers.
It would also take steps
aimed at making it easier and
faster for states to get federal
waivers from the 2010 law, a
change Republicans have also
sought. The bill would allow for
a shorter federal review period,
for example, and other changes
that would give states greater
leeway to experiment with different health care models.
It is unclear how many people could be affected by the
changes, but the waivers can
touch some provisions that affect small businesses. That potentially expands the scope of
the changes.
“Waivers are primarily about
the individual insurance market,
particularly since that’s where
the subsidy dollars are,” said
Larry Levitt, a senior vice president at the Kaiser Family Foundation, a nonprofit focused on
health policy. “But, there are
some provisions affecting small
businesses that can be waived—
such as the essential benefits—
and there’s nothing stopping a
state from providing financial
assistance to small businesses
as part of a waiver.”
But a House GOP aide said
there was little appetite to take
up a plan that they view as bailing out insurers without doing
enough to fix the system and
that most insurers had already
priced ending the subsidies into
their 2018 rates.
Still, the Senate deal received
at least some GOP praise in the
House. A bipartisan group of 23
House Republicans and 23
House Democrats, led by Reps.
Tom Reed (R., N.Y.) and Josh
Gottheimer (D., N.J.), commended the agreement in a
statement Tuesday.
“It aligns closely with our
framework and we look forward
to working closely with Congress and the White House to
pass bipartisan legislation,”
Messrs. Reed and Gottheimer
said.
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | A5
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A6 | Wednesday, October 18, 2017
THE WALL STREET JOURNAL.
* *
U.S. NEWS
Drug-Czar Pick Withdraws Name
WASHINGTON—President
Donald Trump’s pick for White
House drug czar removed himself from consideration after a
backlash over his reported role
in a 2016 law that made it
tougher to limit the spread of
opioid drugs.
In a Twitter post Tuesday
morning, the president said
that Rep. Tom Marino (R., Pa.)
“informed me that he is withdrawing his name” to lead the
White House Office of National
Drug Control Policy. The office,
founded during the Reagan-era
War on Drugs, coordinates policy among federal agencies
that enforce criminal antidrug
laws and focus on substanceabuse treatment.
Mr. Marino’s withdrawal
leaves three of the major federal
agencies responsible for managing the opioid crisis—the White
House drug-control office, the
Department of Health and Human Services and the Drug Enforcement Administration—
without nominees to lead them.
A national opioid commission formed by Mr. Trump to
counter the crisis is expected
to release a final report with
recommendations next month.
Mr. Marino had come under
BILL CLARK/CONGRESSIONAL QUARTERLY/ZUMA PRESS
BY PETER NICHOLAS
AND MICHELLE HACKMAN
Rep. Tom Marino (R., Pa.) had come under fire for his role in a 2016 law involving opioid drugs.
fire from Democrats in Congress
in recent days after the Washington Post and CBS News’s “60
Minutes” reported he had
helped shepherd legislation
weakening DEA power over
pharmaceutical companies that
produce opioid drugs.
Mr. Marino, in a statement
on Tuesday night, defended his
actions along with the law he
supported. “This landmark legislation will help to facilitate a
balanced solution for ensuring
those who genuinely needed access to certain medications
were able to do so, while also
empowering” the DEA “to enforce the law and prevent the
sale and abuse of prescription
drugs,” Mr. Marino said.
White House press secretary
Sarah Huckabee Sanders said
Tuesday that Mr. Trump “remains committed to confronting
the opioid epidemic, which
claimed over 60,000 lives last
year alone.”
Frank Guinta, a former New
Hampshire congressman who
More Males Select Nursing as a Profession
BY SHARON NUNN
More men are joining the
nursing field than have in previous decades.
Men made up about 13% of
the nursing field in 2015, up
from 2.2% in 1960 and 11.3% in
2010, according to a new study
by economics professors Elizabeth Munnich and Abigail
Wozniak.
More high-school-educated
men and the increased demand for nurses as the U.S.
expands its medical facilities
have largely driven the trend.
“What positively moved
men into nursing over time is
the rising demand for healthcare workers overall, but we
also find a sizable role for educational attainment,” Ms.
Wozniak said.
In previous decades, areas
of the country that saw rising
numbers of male nurses also
saw rising numbers of men
graduating from high school.
In essence, when more men
have a high-school degree,
which is often a requirement
for nursing certification and
college-degree programs, more
men have the ability to join the
nursing field, and they have.
The simultaneous expansion
of health-care offerings na-
tionwide, by way of new services in established medical
facilities and new medical facilities in areas that previously
lacked access, has helped drive
demand for more nurses over
the years.
“As baby boomers are aging, they’re needing more
health-care services. They are
now the Medicare population.
[And] on average, people
across all ages have more
chronic conditions, like kidney
disease, diabetes, conditions
that require more health care,”
Ms. Munnich said.
Changing views on men and
women’s responsibilities at
a different
kind of
hero
AS THE SON AND GRANDSON
OF VETERANS, I KNOW THOSE
WHO SERVE ARE HEROES.
Military caregivers, who care for our
wounded veterans at home, are heroes too.
If you are a military caregiver, access helpful
resources and connect with other caregivers at:
HiddenHeroes.org
The Elizabeth Dole Foundation’s Hidden Heroes
initiative increases support for America’s
5.5 million military caregivers.
Ryan Phillippe,
Hidden Heroes Ambassador
home and in their careers has
also contributed to the rising
number of men in nursing, the
study found.
“As broad perspectives on
gender roles become more
similar, and more nontraditional roles become more accepted, more men have joined
the nursing field,” Ms. Munnich said.
The growth of men in the
female-dominated nursing field
hasn’t been similar in other female-dominated industries. In
the previous three decades, the
share of men who said they
were a primary or secondary
schoolteacher decreased.
helped write a 2016 law called
the Comprehensive Addiction
and Recovery Act, is considered
a leading contender for the job,
according to two people familiar
with discussions.
Mr. Marino’s withdrawal
came a day after Mr. Trump
said he would likely make a
“major announcement” on the
opioid epidemic next week.
The president is expected to
declare a national emergency,
a move he promised over the
summer but has since described as “complicated.”
Sen. Chuck Schumer of New
York, the Democratic leader,
said “confirming Rep. Marino
as our nation’s drug czar is
like putting the wolf in charge
of the hen house.”
Sen. Joe Manchin, a West
Virginia Democrat who had
urged the president to pull Mr.
Marino’s nomination, praised
the withdrawal.
The report from the Washington Post and CBS News described Mr. Marino as the
leading “advocate” of the law,
passed last year at the behest
of the drug industry. The news
outlets said the new “industry-friendly legislation” made
it more difficult for the DEA to
crack down on drug companies that were supplying narcotics to “corrupt doctors.”
Gender Shift
Share of nurses who are men
15%
10
5
0
1900
’50
’10
Source: Census Bureau via Elizabeth Munnich
and Abigail Wozniak
THE WALL STREET JOURNAL.
Chinese
Men Face
Fentanyl
Charges
BY DEL QUENTIN WILBER
AND ARUNA VISWANATHA
Two Chinese men were
charged with running massive
drug networks that manufactured and shipped thousands
of doses of the potentially lethal drug fentanyl directly to
U.S. consumers.
Deputy Attorney General
Rod Rosenstein said in Washington that such dealers were
responsible for helping drive
an increase in U.S. overdose
deaths. More than 20,000
Americans died last year after
taking fentanyl, an opioid painkiller that has gained favor
among drug users in the U.S.
“Chinese fentanyl distributors are using the internet to
sell fentanyl directly to U.S.
customers,” Mr. Rosenstein
said. “They use multiple identities to disguise their activities and their shipments.”
Federal grand juries in Mississippi and North Dakota returned indictments in September against the two Chinese
nationals, Xiaobing Yan, 40
years old, and Jian Zhang, 38.
The charges were unsealed
Monday. Messrs. Yan and
Zhang are in China and not in
U.S. custody, Justice Department officials said.
Mr. Rosenstein said, “We
are optimistic and hopeful
that the Chinese will take appropriate action to ensure
they are held accountable.”
The department also announced charges against three
Americans allegedly tied to
Mr. Zhang’s network: Elizabeth
Ton, 26, and Anthony Gomes,
33, of Davie, Fla., and Darius
Ghahary 48, of Ramsey, N.J.
All three were arrested last
week, officials said.
Robert Malove, an attorney
for Mr. Gomes and Ms. Ton,
said his clients are “100% not
guilty.” A lawyer for Mr. Ghahary couldn’t be located.
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Wednesday, October 18, 2017 | A6A
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That’s why U.S. Bank proudly supports, invests and volunteers in communities like yours.
Because we believe the changes we make today will inspire even greater change tomorrow.
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THE WALL STREET JOURNAL.
A
D
E
T
A
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I DO
A CHILD’S ABILITY TO READ HAS
A BIG IMPACT ON THEIR FUTURE.
DONATE AND GIVE THE GIFT
OF LITERACY, OPPORTUNITY,
AND SELF-SUFFICIENCY.
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Wednesday, October 18, 2017 | A7
THE WALL STREET JOURNAL.
WORLD NEWS
Iraqis Push Deeper Into Kurdish Areas
Baghdad government’s
gains come a day after
its army captured the
northern city of Kirkuk
ERBIL, Iraq—Kurdish forces
relinquished control over a
huge swath of northern Iraq
on Tuesday, ceding territory
they gained during the war
with Islamic State to triumphant Iraqi forces, who raised
their flag over dozens of
towns and villages for the
first time in three years.
The retreat of Kurdish
Peshmerga forces from the
town of Sinjar and other disputed territories marks a dramatic reversal of fortunes for
the semiautonomous region,
which only three weeks ago
voted in a controversial referendum to become an independent state.
It also shows how the political map of Iraq is shifting. As
the threat of Islamic State recedes, disparate forces that
came together to fight the terror group are now jockeying
for position and territory.
Iraqi troops and government-backed paramilitaries
advanced across a wide area
stretching from the border
with Iran to Syria, after recapturing the oil-rich city of Kirkuk on Monday. They faced
only light resistance from
Kurdish forces, despite vows
to defend it until death.
Peshmerga soldiers, who
fought to drive Islamic State
ARI JALAL/REUTERS
BY ISABEL COLES
AND ALI A. NABHAN
Kurdish Peshmerga fighters, seen on Tuesday in Karez east of Kirkuk, are being forced back into their semiautonomous region in northern Iraq by government forces.
from the area, described feelings of betrayal after being
asked to withdraw.
“My feelings are worse
than zero,” said Hassan Nasih,
a Peshmerga fighter whose
unit on the Gwair front pulled
back early Tuesday. “For three
years we haven’t slept. We
have gone hungry and we
have spilled blood. It was all
for nothing.”
In his first public words
since Iraqi forces began their
advance last week, the re-
gion’s president, Masoud Barzani, insisted the dream of
statehood wasn’t dead: “Your
loud voice calling for the independence of Kurdistan, which
has reached the international
community, will never be
wasted or sacrificed,” he said
in a brief written statement.
Baghdad has said it would
push the Kurds back only as
far as the positions they held
before the Islamic State onslaught in 2014, when the
Iraqi army’s northern defenses
disintegrated.
Peshmerga
forces filled the vacuum and
drove the militants back, expanding the territory under
their control as much as 40%.
Iraqi Prime Minister Haider
al-Abadi said Tuesday there
would be no civil war and that
the disputed territories must
be controlled by joint forces
under Baghdad’s command.
The advance comes as the
war against Islamic State
draws to a close more than
three years after the militants
overran about one-third of
Iraq and declared a caliphate
for all Muslims straddling the
border with Syria.
Islamic State fighters in
Syria suffered a crushing blow
Tuesday, when the Kurdishled Syrian Democratic Forces,
backed by U.S. airstrikes and
American special forces on
the ground, reclaimed the
group’s de facto capital of
Raqqa. The city was the militant group’s last major urban
stronghold in the Middle East.
Although Kurdish groups in
Iraq and Syria have been key
partners for the U.S. in the
war against Islamic State,
they lean in opposite directions ideologically and have
adopted different approaches
to the same cause.
The fallout from the referendum has also exposed divisions between the two Kurdish factions that have
dominated the region for decades and are now trading
blame for the turn of events.
Simmering Conflicts Flare Up as Islamic State Fades
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
DUBAI—Islamic State may
still be around, but the Middle East has moved on.
The extremist group’s
ouster from
its main remaining
stronghold of
Raqqa on
Tuesday is a
watershed moment. But, as
Islamic State’s once vast territory has shrunk to a few
RAQQA
Continued from Page One
come under Islamic State’s
control, in 2014, Raqqa became a template for the
group’s brutality. Militants in
the city carried out public beheadings for blasphemy and
crucifixions for murder. Child
soldiers were taught to kill.
The city also held some of the
most important assets and institutions for the group’s
statelike operations in Syria,
such as its highest courts.
Raqqa became a funnel for
thousands of people from
places as disparate as the U.K.,
China and Saudi Arabia to join
the group. The recruits were
processed and given their
marching orders in the city, and
some were given explosives
training before being shuttled
back to Europe to plan attacks
there, Western officials said.
Islamic State’s empire is
now largely destroyed. At the
height of its power in 2014,
the group ruled a contiguous
territory in Iraq and Syria the
size of Belgium, while affiliates have sprung up from Nigeria to the Philippines. Now
many of the cities it occupied
have been reduced to rubble.
At the same time, Islamic
State leaves in its wake radicalized youth and an extensive
internet network still actively
recruiting new jihadists.
For months, U.S. war planners have warned the insurgency is seeking to exploit a
power vacuum in Libya. Islamic State in the Sahara, a
new affiliate, killed four U.S.
Green Berets in an ambush in
Niger this month.
dwindling pockets in eastern
Syria and western Iraq, the
region is turning its focus to
new, different conflicts amid
changing alliances.
Now, it’s all about who will
take advantage of the vacuum
previously filled by Islamic
State, and how.
“The fall of ISIS is now
seen as a fait accompli.
There is no longer a common ground between forces
that opposed it, and with
the demise of ISIS a lot of
new conflicts will flare up in
the region,” said Basem
Chabb, a Lebanese parliament member.
Islamic State isn’t about to
be completely eliminated in
Syria and Iraq, let alone its
far-flung affiliates from Libya
to the Philippines. In fact, the
extremist group is likely to
lash out with renewed attacks in the region and the
West, attempting to prove it
Even if Islamic State leader
Abu Bakr al-Baghdadi is killed,
U.S. officials say the group will
continue, much as al Qaeda did
after Osama bin Laden’s death
in 2011. The U.S. and its allies,
as well as other countries that
have fought Islamic State and
other militant groups in recent
decades, have been unable to
kill off the extremist ideology
that feeds the groups.
In a defiant speech in September, Mr. Baghdadi said that
although his fighters were being uprooted across the Middle
East, his organization’s ideology and appeal will live on.
“We will remain steadfast,
patient,” he vowed, and laid
out the group’s strategy for
defeating the U.S. and its allies
by drawing them into costly,
asymmetrical warfare.
U.S. and European officials
predict that Islamic State will
prioritize attacking Western
capitals to remain relevant as
the group is pushed out of the
last patches of territory it
holds in eastern Syria and
western Iraq.
In Washington, Pentagon officials have long expected a defeated Islamic State to evolve
into an general insurgency, potentially aligning with al Qaeda
in Syria and fueling sectarian
tensions by presenting itself as
a Sunni vanguard against Syrian President Bashar al-Assad
and his Iranian backers.
Newly uprooted fighters
also are likely to pose a persisting threat by moving about
the region, hovering in border
areas or even trying to exploit
the territorial struggle in Iraq
between Iraqi forces and Kurdish units, experts said on
Tuesday. The departure of
Kurdish fighters from areas
hasn’t been defeated. The
group’s leader, Abu Bakr alBaghdadi, promised to continue the fight in a recording
released last month.
Islamic State to liberate the
other major city the extremists held, Mosul, just a few
months ago. Baghdad took
control of the ethnically
mixed city of Kirkuk from
Iraqi Kurdish forces on Monday after a brief fight,
and seized several other strategic areas on Tuesday.
Y
et the group is no longer in a position to redraw the map of the
Muslim world.
Ever since Islamic State’s
rapid advances in 2014, the
fight against the group created unusual alliances—including a de facto one between the U.S. and its
regional nemesis Iran. The
need to confront Islamic State
also held in check longstanding rivalries between some of
the region’s main players.
Nothing highlights the collapse of this temporary unity
more than this week’s clash
between Iraq’s central government and the country’s
Kurds, the two forces that
fought side-by-side against
P
otential for a similar
confrontation lurks
across the Syrian border. Syrian Kurds, backed by
the U.S., were the main force
driving Islamic State out of
Raqqa—which a spokesman
for the U.S.-led coalition
fighting Islamic State said
had been 90% cleared—and
before that out of a huge
chunk of eastern Syria.
Yet now, it is probable that
they, too, would be subjected
to an assault by their country’s central government. It’s
unclear whether the U.S.,
which proclaimed neutrality
in Iraq’s dispute with that nation’s Kurds, will do anything
to protect its Syrian Kurdish
allies if that happens.
“The next conflict in Syria
will be between the forces of
the Syrian regime and the
Syrian Kurds. These are the
two major military powers
left in the country now,” said
Marwan Kabalan, a Syrian academic at the Arab Center for
Research and Policy Studies,
a think tank in Qatar. “We
may see in the next few
months the repetition of
what is going on in Kirkuk.”
Other fractures, which
emerged as Islamic State lost
its sway, are sucking up the
region’s attention and resources. Saudi Arabia and its
allies the United Arab Emirates, Bahrain and Egypt are
locked in a struggle against
the Persian Gulf monarchy of
Qatar—a fight that has given
Shrinking Caliphate
U.S.-backed forces said they have captured Raqqa, Islamic State’s de facto capital in Syria, wrenching
away its last major urban stronghold in the Middle East. Its shrinking territory over the past two years:
Islamic State control
Islamic State support/attack zones
Sept. 15, 2015
TURKEY
50 miles
50 km
Hasakah
Aleppo
Med.
Sea
Deir Ezzour
SYRIA
Erbil
Mosul
Raqqa
Kirkuk
IRAQ
Homs
Tikrit
Palmyra
LEB.
IRAN
Damascus
Baghdad
Ramadi
JORDAN
Oct. 17, 2017
TURKEY
50 miles
50 km
Hasakah
Aleppo
Med.
Sea
SYRIA
Erbil
Mosul
Raqqa
Deir Ezzour
Kirkuk
IRAQ
Homs
Tikrit
Palmyra
LEB.
IRAN
Damascus
Baghdad
Ramadi
JORDAN
THE WALL STREET JOURNAL.
Source: Institute for the Study of War
such as Kirkuk, Sinjar and
Khanaqin in the east could
create security gaps, said Jennifer Cafarella, an analyst at
the Washington-based Insti-
tute for the Study of War.
The U.S. military estimates
there are roughly 100 Islamic
State fighters remaining in
Raqqa, from a peak of 2,500.
Some of those fighters have
resettled in other parts of
Syria and Iraq where about
6,500 militants remain, said
Col. Dillon, the coalition
Iran an extra foothold in the
region and perplexed Western powers.
T
he disappearance of Islamic State as an entity
with territory, subject
populations and natural resources, means it’s no longer
as dangerous to the main
players—allowing them to
square off against each other,
be it in Iraqi Kurdistan or Qatar, said Hisham Hellyer, a
nonresident fellow at the Atlantic Council.
“The fact that Islamic
State had territory meant
that it threatened the very
nature of the nation-states in
the region,” Mr. Hellyer said.
“When it turns into a
group like al Qaeda, it becomes dangerous for other
reasons. But these terrorist
groups, in general, don’t
threaten the very existence of
the states.”
spokesman. About 400 have
surrendered over the past
month, he added. By comparison, a Defense Intelligence
analysis concluded there are
as many as 1,500 Islamic State
fighters in Afghanistan, 1,000
in Egypt and 500 in Libya.
On Tuesday, Col. Dillon
stressed that the fight against
the extremists isn’t over and
there are still swaths of territory on the Iraqi-Syrian border
still under militant control.
The head of Britain’s domestic intelligence agency,
MI5 chief Andrew Parker, said
on Tuesday that there has
been a dramatic uptick in the
threat of Islamist extremism
to the U.K. He said the types
of threats are changing rapidly, leaving authorities with a
smaller window to intervene.
A U.S. official specializing in
European security said that
while intelligence experts had
predicted a flow of foreign
fighters returning to Europe,
so far it hasn’t happened. The
U.S. official cautioned the trend
could reverse, but for now European officials have told their
counterparts they don’t expect
the fall of Raqqa to trigger a
migration of militants.
Western counterterrorism
officials say they worry Islamic State will try to take advantage of the crisis facing
Myanmar’s Rohingya Muslims.
“They’re already messaging
that the Rohingya are the new
Palestinians, using it to recruit,” one U.S. counterterrorism official said. “Southeast
Asia is the new concern.”
—Nazih Osseiran in Beirut,
Julian E. Barnes in Brussels
and Nancy A. Youssef
in Washington
contributed to this article.
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A8 | Wednesday, October 18, 2017
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Again
China’s Xi Sets Stage for Long Rule U.S.
Withholds
Leader likely to emerge
from Communist
Party congress with
new allies, powers
Currency
Complaint
BY JOSH ZUMBRUN
BEIJING—Chinese President
Xi Jinping is set to emerge from
a Communist Party congress
that started Wednesday with all
of the allies and authority he
needs to monopolize decision
making for the next five years.
The affirmation of Mr. Xi’s
political supremacy suggests he
will double down on a drive to
reassert party control at home,
and project power abroad, during a second term likely to be
marked by a slowing economy
and volatile foreign relations,
especially over North Korea.
Beyond that looms the question: Will he step down come
2022?
The twice-a-decade congress
is expected to endorse Mr. Xi’s
rise to a level of political control in modern China comparable only to Deng Xiaoping or
Mao Zedong. Both remained
dominant figures till death.
As well as packing top party
posts with Mr. Xi’s lieutenants,
the 2,280 delegates are expected to enshrine his political
theory in the party’s constitution and grant him even tighter
control over China’s armed
forces, political insiders and analysts say.
And the congress could go
further, opening a window for
64-year-old Mr. Xi to stay in
power after his second term expires, political insiders say, despite retirement norms to protect against one-man rule.
Expectations that he will
break with precedent by blocking a potential successor from
joining the Politburo Standing
Committee, the top leadership
body, have mounted since one
GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES
By Jeremy Page,
Lingling Wei
and Chun Han Wong
A Chinese soldier stood guard outside the Great Hall of the People in Beijing on Tuesday, the eve of the Communist Party congress.
of two leading candidates was
suddenly fired in July.
“The issue of potentially extending Xi’s tenure will be discussed,” according to one person directly involved in
preparations for the congress.
The person said the idea would
be proposed by a senior party
figure who would praise Mr.
Xi’s achievements.
Another possibility is that
Mr. Xi gets a new title he could
keep beyond 2022, such as
party chairman—most closely
associated with Mao.
China’s government press
office didn’t respond to questions on whether such discussions would take place or any
other expected outcomes of
the congress.
Mr. Xi, in a speech at the
opening of the congress,
hailed the achievements of the
last five years and called on
party members to “secure a
decisive victory” in building a
modern, prosperous, socialist
nation in the “new era.”
“We have solved many
tough problems that were long
on the agenda but never resolved, and accomplished
many things that were wanted
but never got done,” he said.
“What we now face is the contradiction between unbalanced
and inadequate development
and the people’s ever-growing
needs for a better life.”
In recent weeks, Chinese
authorities have gone to
lengths reminiscent of the
Mao era in lavishing praise on
Mr. Xi’s muscular leadership
and his “China Dream” to rejuvenate the nation.
That resonates with many
Chinese, who saw his predecessor, Hu Jintao, as out of touch
and unable to protect China’s
international interests.
“Xi Jinping is different from
other Chinese leaders,” said Zhai
Yifan, a 32-year-old railway engineer visiting a Beijing exhibition focused on Mr. Xi’s achievements. “As a Chinese person,
this makes me feel proud.”
Still, that doesn’t translate
into unanimous popular support for Mr. Xi staying on after
2022. There are no official public-opinion surveys on that issue, let alone independent ones,
but at the Beijing exhibition,
views were mixed.
Internationally, Mr. Xi is expected to continue asserting
China’s territorial claims and
expanding its military activities, while positioning China as
a champion of global trade
through its Belt and Road Initiative to build new East-West
trade and transport links.
U.S. officials hope Mr. Xi will
take bolder action to help halt
North Korea’s nuclear program
and open Chinese markets, and
will look for signals when President Donald Trump visits China
in early November.
The U.S. Treasury declined
again to label China a currency
manipulator, although it continued to criticize Beijing for
its large trade surplus and restrictions on foreign investors.
“Treasury remains concerned by the lack of progress
made in reducing the bilateral
trade surplus with the United
States,” the department said
of China in its semiannual report on international exchange
rates. “China should take concrete steps to level the playing
field for American workers
and firms.”
The department’s report,
released Tuesday, is the document in which Washington can
formally criticize Beijing for
manipulating the yuan lower
to boost its exports.
As a presidential candidate,
Donald Trump said he would
label China a currency manipulator, but this is now the second of the semiannual reports
in which his administration has
declined to make the designation, a move that would intensify trade tensions.
The report comes as the U.S.
is trying to encourage China to
work with it in cracking down
on trade and finance flows to
North Korea.
The U.S. praised Beijing for
allowing the yuan to rise this
year and noted that China’s
trade surplus has been narrowing.
The report kept China on
the Treasury’s formal Monitoring List, which is what the
U.S. uses to place countries on
notice that the government
considers their currency and
other economic policies to be
putting the U.S. at unfair disadvantage.
President Uses Big Data to Tighten Big Brother’s Grip
SHANGHAI—From Stalin to
Mao, old-style central planners all faced the same problem: The system didn’t work.
The Soviets had their
bread lines,
and a quota
for chandeliers
set in tons
that made
them too
heavy to hang
from the ceilings. Mao’s delusionary target for steel production had peasants hurl
their pots and pans into home
furnaces. Famine ensued.
For all his talk about giving markets a “decisive”
role, Xi Jinping ultimately
believes the state should
lead. On the cusp of his elevation to Mao-like status, he
aspires to use big data and
artificial intelligence to correct the planning errors of
the past and micromanage
the Chinese economy while
for a few minutes and then left.
Mike Wszolek, a 36-year-old
graphic designer who lived
nearby until recently, recalled
seeing a man walk in one night
with a snake hanging from his
neck. “They had to tell him to
leave,” he said. “He was like, ‘I
just want some tacos.’ ”
Last week, about 90 minutes
after the Cubs beat the Washington Nationals in Game 3 of
the division series, the Taco Bell
was just starting to fill up. Five
private guards patrolled the inside and parking lot.
At a window table, 53-yearold Bev Thoren ate tacos with
her two sons. They lamented
the expected demise of a place
they have frequented for years.
It comes on the heels of another
nearby restaurant being razed
for a four-star hotel under construction. “First the McDonald’s
went,” she sighed. “Now this.”
Two men sat down at an ad-
jacent table and said they almost never ate here but wanted
to see the restaurant before it
was gone. They declined to give
their names, saying they were
inebriated.
A spokeswoman for Taco Bell
said the company and a local
franchisee are in talks with developers in the area to find a
new location. Though initial
news reports had the Taco Bell
closing when its lease expires
next summer, people with
knowledge of the agreement
said the lease has since been extended to mid-2019. The restaurant isn’t expected to survive
beyond then, these people said.
Mr. Yoders, the local magazine editor, worries that preservation efforts may have reached
their limit. “Beyond the awareness that we’ve gotten out there
now, there’s not a lot more we
can do,” he said. “At the end of
the day, it’s a Taco Bell.”
W
T
he party calls the mission “top-level design,” and it is intended to guide the next
stage of growth led by advanced technologies such as
robotics, 3-D printing and
driverless vehicles.
Technicians are working
on a plan to monitor the performance of these machines
using sensors and cameras
and measure it against industrial goals. Corporate
data feeds will give regulators the ability to spot credit
and investment flows in real
time, along with fraud. Algorithms will supposedly use
this granular information to
optimize macroeconomic decision making, keep markets
on an even keel and avoid
speculative bubbles.
In public at least, the chief
executives of China’s data
oligopolies, including Alibaba
ith the government
as the best customer, such ventures
can have enormous impact
on Chinese life. A Shanghaibased company is attempting
to develop a facial-recognition database with the Ministry of Public Security that
will identify any of China’s
1.4 billion people within three
seconds. A linked “socialcredit” system will collect
data on all citizens and use it
to rate their trustworthiness.
The huge planning experiment “presents a fundamental challenge to democratic
political systems,” Mr. Heilmann writes.
For years, Western politicians believed China would
keep moving steadily toward
a free-market economy to
rectify the weaknesses created by state planning.
Greater economic openness,
the thinking went, would induce political liberalization. If
China delayed, it would be
punished by low productivity.
Mr. Xi is upending these
assumptions.
Even as China’s stateowned industries like steel,
aluminum and shipbuilding
create monumental excess that
burdens the economy with
debt, the consumer shortages
that are the bane of planned
economies are history.
“Smart” planning could
help China shift to a more
modern economy; what
could go wrong?
First, data overload; collecting it is one thing, analyzing it intelligently quite
another. Second, and more
ominously for ordinary Chinese and the tech companies,
bureaucratic overreach. A
telling sign is a move by regulators to force the biggest
tech companies to hand over
a 1% equity stake to the government along with decisionmaking powers. The enthusiasm of tech moguls for Mr.
Xi’s planning ideas could rapidly wane if party apparatchiks start calling the shots.
Ultimately, Mr. Xi’s approach takes the notion of
“Big Brother” to a new level.
Economic planning “is not
merely control of a sector of
human life which can be separated from the rest,” wrote
the Nobel Prize-winning economist F.A. Hayek in “The Road
to Serfdom.” “It is the control
of the means for all our ends.”
That was written in the
1940s. Neither Hayek nor
Mao could have imagined the
knowledge-fueled totalitarianism that Mr. Xi has in mind.
are joining Chinese startups
in areas like health care and
computer vision.
FILIP SINGER/EUROPEAN PRESSPHOTO AGENCY
CHINA’S WORLD
By Andrew Browne
keeping tabs on its citizens.
Information technology,
far from undermining
China’s authoritarian model
as many thought it would, is
reinforcing it.
The German political scientist Sebastian Heilmann
coined the term “digital Leninism” to describe the program Mr. Xi has engineered
to try to ensure the Communist Party’s survival.
President Xi Jinping, seen in July, aims to fix past planning errors.
and Tencent, are evangelists
for the project that requires
them to sluice gushers of
consumer data to state superhubs. Alibaba founder
Jack Ma in a seminar last
year likened the role of big
data in economic manage-
ment to an X-ray or CT-scan
in medical diagnosis. In the
next 30 years, he declared,
“the planned economy will
get bigger and bigger.”
A number of young Stanford and MIT-educated software engineers and M.B.A.s
FROM PAGE ONE
CUBS
Continued from Page One
plans to replace the restaurant
with a three-story retail complex awoke the sort of reverence
Cubs fans typically reserve for
the ballpark’s iconic ivy-covered
outfield walls. There was talk of
a protest and the hashtag
#savetacobell began spreading
on social media. “Hey guys if
you need me, you can find me
chained to the Wrigleyville Taco
Bell because they’re CLOSING
IT!,” one die-hard wrote on
Twitter. Someone even made a
tribute song.
The uproar comes as the
neighborhood
surrounding
Wrigley Field in the midst of an
upscale makeover. All around
the site of this week’s National
League Championship Series,
there are buildings under con-
struction, including a new hotel,
restaurants, apartments and
stores. That all sounds fabulous,
activists say, but leveling the
Taco Bell is simply more change
than they can digest.
“The one thing we thought
we could always count on was
the Taco Bell being open late at
night,” said Jeff Yoders, a 41year-old magazine editor. “But I
guess that’s not true anymore.”
The Taco Bell preservation
crusade started in August. C.J.
Black, a 23-year-old area resident who works in financial
software, created a Facebook
page titled “Save the Wrigleyville Taco Bell.” He scheduled
a two-hour demonstration at
the restaurant for Aug. 26,
imagining it would be a lighthearted gathering of friends.
Before long, however, he said
several thousand people had expressed interest in attending.
“We can stop this if we stand
together!” wrote one fan. “To
say I’m horrified is an understatement. I may start a petition,” wrote another. Before
long, someone posted a recording of a voice-over accompanied
by the tune of a popular Sam
Smith song. “Why can’t
you…stay with me/Taco Bell…by
Wrigley,” it went.
Mr. Black couldn’t believe it.
“That’s when I knew it was getting away from me,” he said.
Shortly before the scheduled
protest, he canceled it, fearing
that the size of the crowd would
unduly inconvenience employees. He had too much respect
for the Taco Bell.
The outpouring of nostalgia
has continued as the Cubs, who
won the World Series last year
for the first time since 1908,
make another October run.
Since its opening in 1994, the
Taco Bell at 1111 W. Addison
Street has embraced its fortu-
itous location. An oversize Cubs
hat hangs from a large Taco Bell
sign out front and a Cubs flag
flies on the roof.
Devotees say much of their
affection stems from the fact
that Taco Bell offered cheap
food after nights of heavy drink-
An oversize Cubs hat
hangs from the Taco
Bell sign and a Cubs
flag flies on the roof.
ing. But it has also been a prime
spot for people-watching.
Michael Paladines, who managed the restaurant for two
years not long after it opened,
recalled the night a pair of
streakers entered the front door,
ran around the restaurant naked
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.
WORLD WATCH
Duterte, Aides Differ
On Fight for Marawi
President Rodrigo Duterte declared the southern city of
Marawi freed of Islamic Statelinked militants, apparently contradicting his own commanders.
“Ladies and gentlemen, I
hereby declare Marawi City liberated from the terrorist influence,” Mr. Duterte told troops
Tuesday a short distance from
the front lines in Marawi, where
the military is fighting a few
dozen remaining militants after
more than four months of battle.
The military on Monday said
it killed the militants’ last two
leaders. But in a joint press conference, spokesmen for Mr. Duterte and the military said the
two leaders’ deaths, while a positive development, don’t signal
“the end of the hostilities nor the
end of the fighting in Marawi,”
an armed forces spokesman said.
—Jake Maxwell Watts
AFGHANISTAN
Taliban Kill Dozens
In Attacks on Police
Taliban fighters struck two
police compounds in southern
Afghanistan, killing at least 66
people in attacks that underscored the difficulties the Kabul
government faces in securing
many areas of the country.
In the first assault, militants
overran a police headquarters in
the district of Andar, in the
province of Ghazni, shortly after
midnight, leaving at least 19 lo-
WORLD NEWS
cal and national police dead, government officials said.
Hours later, six Taliban fighters disguised as police officers
stormed a police compound in
the city of Gardez, about 55
miles east of Andar, which
houses the provincial headquarters of the national police, border police and Afghan army.
That attack began when a
truck and Humvee, both packed
with explosives, were detonated at
the compound’s main gate, authorities and witnesses said.
—Habib Khan Totakhil
and Ehsanullah Amiri
UNITED KINGDOM
MI5 Chief Warns of
Rising Terror Threat
The head of Britain’s domestic intelligence agency said there
has been a dramatic uptick in
the threat of Islamist extremism
to the U.K., with plots occurring
faster than at any point in his
career.
In a rare public speech, MI5
chief Andrew Parker said Tuesday the types of threats are
changing rapidly and sometimes
accelerate from inception to action in just a handful of days,
leaving authorities with a
smaller window to intervene.
“Today there is more terrorist
activity coming at us more
quickly and it can be harder to
detect,” Mr. Parker said. “There
is a similar picture across Europe and beyond.”
Five attacks have hit the U.K.
this year, killing 36 people and
injuring many more.
—Jenny Gross
Judge Warns on Brazil Graft
BY LUCIANA MAGALHÃES
AND SAMANTHA PEARSON
CURITIBA, Brazil—Brazil’s
Car Wash corruption investigation has in the past three
years led to more than 160
convictions, inspired a blockbuster movie and implicated
hundreds of politicians, including the current president
and four of his predecessors.
But as Judge Sergio Moro,
who has headed the probe,
prepares to finish the core investigation under his jurisdiction, he stressed that Brazil’s
fight against corruption ultimately depends on the will of
the very politicians who perverted the country’s political
mores to change the laws and
prevent their successors from
doing the same thing.
“We shouldn’t be under the
illusion that the problem of
corruption can be solved
merely by the criminal-justice
system. It just treats its most
evident symptoms,” said Mr.
Moro, 45 years old, in a rare
interview in this southern city.
Without new legislation
that dramatically alters how
money is spent in politics, he
said, Brazil is in danger of following the same path as Italy.
There, the Clean Hands investigation in the 1990s, which he
used as a model for Car Wash,
led to a power vacuum, fueled
a degree of cynicism about judicial power and ultimately
did little to reduce graft in the
long term.
Super-Moro, as the judge is
known by his followers, has
made many enemies in Con-
RODOLFO BUHRER/REUTERS
PHILIPPINES
Wednesday, October 18, 2017 | A9
NY
* *
A supporter holds up an effigy of Judge Sergio Moro, who has led Brazil’s biggest corruption probe.
gress, where targeted politicians have called him a wannabe celebrity and an
autocrat.
Mr. Moro, a part-time law
professor who briefly studied
at Harvard, landed the case of
his lifetime in 2014 when a local money launderer led him
to uncover Brazil’s largestever corruption scheme at
state-controlled oil company
Petróleo Brasileiro SA.
As most of Mr. Moro’s trials in this case near completion, the investigation will
now center on courts in other
jurisdictions investigating offshoots of the original corruption network. Also continuing
the work will be regional
judges hearing appeals and the
Supreme Court, which is the
only body in Brazil allowed to
sentence sitting politicians.
Mr. Moro urged lawmakers
to consider changes to protections offered to politicians in
office, and said Brazil must
cut the cost of its expensive
election campaigns and end
political appointments at
state companies.
“It’s necessary for other institutions to also do their part
with reforms that reduce the
opportunities and incentives
for corruption,” Mr. Moro said.
The judge’s comments come
as Brazil’s Congress has done
little to cut campaign costs,
instead approving this month
a controversial new bill to increase public funding for politicians after attempts at wider
political reforms failed.
Mr. Moro’s team in Curitiba
has sentenced more than a
hundred people for involvement in corruption crimes.
That has won him praise here
and beyond Brazil and raised
hopes about an end to crony
capitalism and impunity.
He predicted that other important investigations could
come his way. “Who knows,”
he said, “maybe in a few years
I will have other cases in my
hands that are just as big.”
EU Faces Brexit Risks Too, BOE’s Carney Says
NAVESH CHITRAKAR/REUTERS
BY JASON DOUGLAS
FIELD OF FLOWERS: In Kathmandu, Nepal, a woman collects
marigolds to be made into garlands for the Tihar festival.
LONDON—Bank of England
Gov. Mark Carney issued his
clearest warning yet that a
disorderly Brexit would pose
a major risk to the European
economy, not just to the U.K.
In testimony to lawmakers
in Parliament, Mr. Carney
said European Union policy
alexa
makers are just beginning to
understand the magnitude of
the financial-stability risks
that could arise if the U.K.
leaves the EU without a deal.
“I think that there’s a
learning process under way
on the scale of some of the
financial stability issues,” Mr.
Carney said. He listed a
range of possible threats, in-
cluding the risk that legal
contracts underpinning trillions of euros of derivatives
become null and void and
British insurers become unable to pay out to European
customers. European banks
might be left unable to operate in the U.K. without setting up a dedicated subsidiary, he added.
In the event that no agreement on divorce is reached,
the U.K. will emerge after
Brexit in 2019 “long financial
services,” with the EU short
of capital, collateral and people relative to London, he
said.
European officials have
played down the risks of
Brexit to the EU.
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A10 | Wednesday, October 18, 2017
* *****
THE WALL STREET JOURNAL.
IN DEPTH
Roy Price steps down
at entertainment studio
days after harassment
allegation emerges
BY JOE FLINT
Roy Price is out as head of
Amazon Studios, days after details of a two-year-old accusation of sexual harassment became public.
The company said Tuesday
that Mr. Price had resigned. Mr.
Price didn’t respond to requests
for comment.
Mr. Price, who had overseen
Amazon.com Inc.’s film and
television operations, was suspended late last week when Isa
Dick Hackett, a producer on the
Amazon program “The Man in
the High Castle,” went public
with her complaint that Mr.
Price sexually harassed her in
2015. Ms. Hackett said Mr. Price
had made inappropriate and
crude remarks about his genitalia and then sexually propositioned her.
Albert Cheng, the chief operating officer of Amazon Studios,
will serve as interim head of
the entertainment studio.
Mr. Price’s resignation comes
in the wake of the scandal at
Weinstein Co. where co-chairman Harvey Weinstein was
forced out after disclosures of
multiple allegations of sexual
harassment and assault.
Since then, other actresses
and executives have come forward with stories of verbal
and physical abuse at the
hands of Mr. Weinstein and
others, amid a rising backlash
against what is seen as a culture of harassment against
women in Hollywood at the
hands of male executives.
Mr. Price had also received
PAUL ZIMMERMAN/WIREIMAGE
Amazon Executive Quits Amid Sex Claim
Roy Price, seen in July, oversaw Amazon’s film and TV operations.
criticism for his close business
relationship with Mr. Weinstein.
Earlier this year, Weinstein Co.
purchased an idea for a television show from Lila Feinberg, a
writer who was Mr. Price’s fiancée at the time.
The concept was originally
pitched by Mr. Price to Amazon
but after a conflict-of-interest
review, the studio declined to
buy the script, people familiar
with the matter said. Mr. Price’s
wedding to Ms. Feinberg was
recently called off, a person
close to her said.
Ms. Feinberg declined to
comment.
Weinstein Co. also had two
other shows in development
with Amazon. One, a drama
starring Robert De Niro and
Julianne Moore with director
David O. Russell on board as
well was canceled last week.
Another show from “Mad
Men” creator Matt Weiner is
continuing.
Ms. Hackett said she made
her initial complaints to Amazon about Mr. Price in July 2015.
She said she was interviewed by
an outside investigator but
never told of the results nor did
she receive any apology. Former
Amazon employees said the
only reprimand to Mr. Price was
that he was told not to drink at
company events anymore.
An Amazon spokesman
didn’t respond to a request
for comment.
Last week, after the revelations about Mr. Weinstein, Ms.
Hackett said she felt compelled to break her silence.
She told The Wall Street Journal that she was inspired by
the women who spoke out
against Mr. Weinstein and
hoped that telling her story
would inspire others.
Amazon’s creative efforts under Mr. Price were a mixed bag.
Critical successes include
“Transparent” and “One Mississippi” but neither drew big audiences. Several producers who
made shows for Amazon, including David E. Kelley and
Shawn Ryan, have complained
that the company was not artist
friendly nor well-versed in the
ins and outs of production.
Ms. Hackett said Tuesday
that “I’m pleased Amazon is
taking steps to address the
issues.”
Continued from Page One
her to date him, Ms. Segel said.
At the time she was working on
a show for the studio Weinstein
Co. At one point, Bob Weinstein
asked Ms. Segel’s immediate
boss before a work dinner if she
had a boyfriend, she said. Ms.
Segel said she invented one.
Ms. Segel later told Mr.
Weinstein in an email she
wasn’t interested in him romantically. Soon after, on a conference call with several people
discussing a coming episode of
the show, he was highly critical
of the series and her work, she
said. She told a top network executive, in an email seen by the
Journal, that Mr. Weinstein was
a “disgusting predator.”
Ms. Segel’s immediate boss,
who she said had witnessed
some of her interactions with
Mr. Weinstein, told her in an
email reviewed by the Journal:
“Obviously he needs to respect
that you just want to keep it
friendly and stop flirting with
you. He is your employer.”
In a subsequent email to Ms.
Segel, Mr. Weinstein denied he
had sexually harassed her and
asked her to take back the accusation. She later had a lawyer
call a top Weinstein Co. executive and Mr. Weinstein’s outside
lawyer to seek assurances that
she would not have to interact
with him further, she said.
Those calls ended their contact,
she said. Ms. Segal’s allegations
were first reported Tuesday by
the trade magazine Variety.
“There is no way in the world
that Bob Weinstein is guilty of
sexual harassment, and even if
you believed what this person
asserts, there is no way it would
amount to that,” said lawyer
Bert Fields on behalf of Mr.
Weinstein.
Mr. Weinstein said in a written statement: “At times I have
a temper, but I would not describe it as volatile, and I’m definitely not a bully.” He said he
was surprised by the comments
of Mr. Katzenberg, whom he
considers a friend. “In my experience, I have had nothing but a
cordial relationship with him,”
he said.
‘At times I have a
temper, but I would
not describe it as
volatile.’
No one has suggested to the
Journal that Bob Weinstein engaged in the degree of alleged
misconduct that led to his
brother’s ouster from Weinstein
Co., which includes accusations
of sexual harassment and assault. Harvey Weinstein has
apologized for past behavior
with colleagues, and his spokesman has denied any allegations
of nonconsensual sex.
Nevertheless, the saga of the
lesser-known Weinstein appears
to be entering a new chapter,
with his future at the company
and as a Hollywood mogul on
the line.
Bob, 62 years old, said as recently as Friday that “business
is continuing as usual” at Weinstein Co., with him in charge of
the studio. In the wake of the allegations against Harvey, however, the company’s board has
entered into exclusive talks with
private-equity firm Colony Capital to sell some or all of the
company’s assets.
People close to the talks believe it is unlikely Bob Weinstein
would stay on after any sale.
BARBARA ALPER/GETTY IMAGES
STUDIO
Bob Weinstein, left, and his brother, Harvey Weinstein, in 1989. People who have known both say they had a complicated relationship dating back to childhood.
One possibility is that Mr. Weinstein could retain control of his
Dimension Film label, a person
with knowledge of the Colony
talks said.
Bob Weinstein has denied
any knowledge of his brother’s
alleged sexual misconduct. “I’m
shocked by the inhumane actions that my brother has been
accused of and I feel for the victims that have been subjected to
any of his abuse,” he said
through a spokeswoman Monday. Mr. Weinstein added that
he wouldn’t comment on the future of the company until “the
pieces of this puzzle are more
clearly defined.”
Though he is more introverted than his older brother
and has long had a lower public
profile, Bob Weinstein was instrumental in the duo’s Hollywood success. A college dropout, he booked movies at a
theater in Buffalo, N.Y., in the
1970s, while his brother booked
concerts. He came up with the
name “Miramax,” combining the
names of their mother Miriam
and father Max, when the two
started a film-distribution venture.
Miramax eventually became a
powerhouse of the independentmovie scene and was bought by
Disney in 1993. Bob worked primarily behind the scenes, running finance and administration,
while Harvey bought and produced the movies.
As competition for indie
movies mounted, Bob in 1992
began buying inexpensive horror movies to diversify revenue.
That spawned a division, Dimension, that Bob oversaw.
Within a few years, the quiet
finance guy became a producer
on his own, making hits such as
the surprise smash “Scream”
and the parody “Scary Movie.”
By the late 1990s, Dimension
was regularly earning more than
the higher profile, more expensive prestige movies overseen
by Harvey, according to former
company executives.
As Bob Weinstein’s power inside the company grew, many
employees came to know him as
a tempestuous and mercurial
boss, according to interviews
with many people who worked
with him.
“In his element, he’s a really
Weinstein Bidder Is
A Hollywood Regular
Thomas J. Barrack Jr., the
wealthy private-equity investor
who is in negotiations to buy
the Weinstein Co., has spent
most of his career trading real
estate. But bailing out troubled
celebrities has long been a favorite hobby.
The 70-year-old Los Angeles
native made headlines outside
the property world when his
firm, Colony Capital, now part of
Colony NorthStar Inc., took control of Michael Jackson’s Neverland ranch in 2008. That arrangement enabled the King of
Pop to escape debts on the
property, which Mr. Barrack’s
firm still owns.
Mr. Barrack helped out Annie
Leibovitz, a photographer famous for her work with musicians and movie stars, a few
years ago by buying out her millions of dollars of debt. He
helped her raise the money back
by promoting exhibits of her
work and sales of limited-edition
prints.
Now, his firm is negotiating
to buy “all or a significant portion” of the Weinstein Co.’s assets, the companies said Monday. The deal could be a lifeline
for the film company. It isn’t
clear if either Mr. Weinstein or
his brother Bob Weinstein
would have roles at the firm.
The Weinstein Co. deal appears to be a variant of the
Barrack playbook of providing
much-needed capital to companies or people in exchange for
greater control over their holdings. Under the Weinstein Co.
deal, the companies said, Colony
would provide an undisclosed
amount of cash up front while
it explores an acquisition of the
studio’s assets. A spokeswoman
for Mr. Barrack said he declined
to comment.
Mr. Barrack followed a welltrod path from Wall Street to
Hollywood. Private-equity manager Ronald Burkle backed the
struggling Relativity Media. Financier Steven Mnuchin, now
Treasury secretary, was a Holly-
wood player who co-financed
movies through his RatPac-Dune
Entertainment LLC venture.
Mr. Barrack has also been in
the limelight for embracing another powerful figure shunned
by much of Hollywood: President
Donald Trump. The real-estate
investors got to know each
other when Mr. Barrack was
working for Texas investor Robert Bass and helped his boss sell
the Plaza Hotel to Mr. Trump for
around $400 million in 1988.
The two struck up a friendship. Mr. Barrack was a fundraiser for Mr. Trump and served
as chairman of the president’s
inauguration committee.
Mr. Barrack created a mediaand-entertainment fund, whose
partners included actor Rob
Lowe. Colony, as part of a consortium, purchased Miramax
from Walt Disney Co. for $660
million—which had bought the
company from the Weinsteins. It
then sold Miramax to Qatarbased BeIN Media Group in 2016
for an undisclosed amount.
—Craig Karmin,
Erich Schwartzel
funny guy and people just want
to be liked by him,” said Michael
Neithardt, a former assistant of
Mr. Weinstein’s. “But he was really socially awkward. The way
he dealt with it was by just being a bully.”
People who have known both
Weinsteins say they had a complicated relationship dating back
to childhood that often involved
Harvey belittling Bob, who frequently sought his older
brother’s approval. As Bob’s Dimension unit became successful,
he “became more confident and
he’d stand up to Harvey more,”
said a former Miramax executive.
After “Scary Movie 5” performed poorly in 2013, Harvey
said to Bob, “Why would anyone
make that movie?” recalled a
person who witnessed the conversation.
“F— you,” this person recalls
Bob responding. “I don’t work
for you.”
Nonetheless, Bob would
brook no criticism of his brother
in his presence. Richard Potter,
a former assistant of Bob Wein-
stein’s who rose to become a
key executive at Dimension in
the late 1990s, said that when
he once went to tell Bob of what
he considered threatening and
unfair behavior by Harvey, Bob
grew angry and said, “No one
gets in between me and my
brother.” Bob Weinstein said he
didn’t recall the conversation.
Bob Weinstein was less likely
than his brother to blow his top,
people who worked with the
pair said.
“Bob didn’t yell the way Harvey did,” said Brendan Deneen,
a former Miramax, Dimension
and Weinstein Co. executive.
“He was more snarky and cutting.”
Once, when a marketing executive showed him a potential
trailer for the film “I Got the
Hookup” and asked, “What do
you think?” Bob Weinstein responded, “I think it f—ing
sucks,” and threw the videotape
over an employee’s head, according to a person who witnessed the incident. Mr. Weinstein denied the incident
occurred.
At the 2000 premiere of
“Scary Movie,” a Dimension executive attempted to introduce
his wife to his boss. Bob Weinstein stuck out his arm and
shoved the woman back, the
former executive recalled, as he
made a beeline for stars Marlon
and Shawn Wayans and director
Keenen Ivory Wayans, with
whom he hoped to sign a deal to
make more movies. Mr. Weinstein denied that that occurred.
In the late 1990s, Mr. Weinstein called an assistant when
he was lost on the way to a
screening, irate that the assistant had hired a car service that
didn’t know the way, according
to a former employee.
“Take your shit and get the
f— out of here,” he said to the
assistant, according to the former employee. “You’re fired.”
Later he called the assistant
back to rehire him, the former
employee said. Mr. Weinstein
said that didn’t happen.
As Weinstein Co. has fallen
apart in the past two weeks,
some former employees have
sought to distance themselves
from Bob as much as Harvey.
Others say Bob Weinstein had a
softer side that only people who
worked closely with him got to
know.
“Bob was a tough taskmaster
and a challenging boss, but also
humane, with a great sense of
humor,” said Sanjeev Lamba, a
former vice president at Dimension. When Mr. Lamba left Dimension to work for India’s Reliance Entertainment, he said, Mr.
Weinstein wrote him “a wonderful and warm handwritten
note.”
Bob and Harvey Weinstein
feuded on-and-off for many
years, said people who worked
with them. During one period
around 2003, the two communicated only through handwritten
notes, which assistants passed
between them, according to a
former employee.
“As I’ve stated before, I have
had very little communication
with my brother in the last five
years,” Mr. Weinstein said.
In about 2011, after an argument over how to allocate the
studio’s resources between their
respective movies, Harvey Weinstein punched his brother in the
face in front of about a dozen
other Weinstein Co. executives,
knocking him to the ground,
said two people who were present. “I’ve been assaulted!” Bob
yelled, according to those people. Bob, who was bloodied,
wanted to press charges, but
was talked out of it, according
to a person familiar with the incident.
Weinstein Co. hasn’t had
many box office hits in the past
few years. Dimension Films has
been a particular laggard after
the brothers were ousted in
2005 by Disney, then Miramax’s
owner, and launched a new
company. Dimension has had a
number of flops. Its only major
success since 2010 was “Paddington,” a surprise turn into
animated family entertainment.
“He had the pulse of what
Americans wanted at one time,”
said a former Dimension executive. “Can you get that back?”
Mr. Weinstein said he feels
confident about his coming
films.
—Jim Oberman
and Lisa Schwartz
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
NY
* * * *
Wednesday, October 18, 2017 | A10A
GREATER NEW YORK
Old New Jersey Bell
building will become
a mixed-use tower
in latest city upgrade
BY KEIKO MORRIS
Investors who redeveloped
and leased a historic Newark
department-store site have
secured more than $100 million in financing to revive another city landmark.
L+M Development Partners
Inc. and Prudential Financial
Inc. have closed on funding
that will allow the venture to
convert the old New Jersey
Bell headquarters building
at 540 Broad St. into a mixeduse tower with 263 marketrate and affordable apartments as well as office and
retail space.
The partners are hoping to
continue the city’s development momentum, which has
brought residents to its
downtown, revitalized parks
and spurred plans for more
office and retail space.
State and city leaders are
pitching Newark, along with
up to $7 billion in tax incentives, to Amazon.com Inc. as
the tech giant conducts a
countrywide search for a second headquarters location.
Part of the venture’s mission is to revitalize Newark’s
downtown as a round-theclock neighborhood, injecting
a residential element, said
Ommeed Sathe, vice president
and head of impact investments at Prudential.
“We wanted to be fuel for
that momentum,” said Jonathan Cortell, vice president of
development at L+M Development Partners. “This is a
great city that has long been
overlooked and has such
great infrastructure.”
Citi Community Capital is
providing a $71 million construction loan and will provide $14 million in funding
through historic tax credits.
Goldman Sachs Urban Investment Group is providing $13.5
million in funding through
various tax-credit programs.
The venture and its financing partners are no strangers
to complex historic redevelopment projects. L+M, Prudential and Goldman Sachs
Urban Investment Group
teamed up to redevelop the
Hahne & Co. building, where
Rutgers University, Whole
Foods Market and a bookstore
operated by Barnes & Noble
Education Inc. are tenants.
The project included 160
apartments, 40% of which are
designated affordable. Marketing began last winter, and
those
apartments
were
quickly leased, Mr. Cortell
said.
“There is strong continued
demand on the residential
side,” Mr. Sathe said. “And
you are starting to see projects in surrounding municipalities start to advertise the
proximity to Newark. It’s a
great sign of where we think
the city is heading.”
The 1929 art deco Bell
building, purchased last year
from Verizon Communications Inc., was designed by
architect Ralph Walker of
Voorhees, Gmelin & Walker, a
firm known for designing
buildings for the Bell companies, according to federal documents. Rising 20 stories, the
building’s facade features
massive sandstone figure reliefs representing telephone
company workers, such as a
lineman, operator and a repairman.
When the building is converted, 20% of the apartments will be affordable at
levels up to 50% of the area’s
median income.
The venture will replace
the windows and remove a
stairwell from the east side of
the building, which has views
of the New York skyline, and
is considering a corporate auditorium space for options
such as a community theater,
Mr. Cortell said.
The project “represents a
commitment to jobs, development, and to bring quality
housing and economic growth
to our downtown,” Newark
Mayor Ras Baraka said.
ELSA/GETTY IMAGES
Newark Revival Gains Convert
Yankees Win, Even the Series
GAME FOUR: Todd Frazier and Greg Bird celebrated the Yankees’
comeback victory over the Astros Tuesday night in the Bronx.
Man Convicted
In Ponzi Scheme
Gets 6 to 18 Years
THEODORE PARISIENNE FOR THE WALL STREET JOURNAL
BY THOMAS MACMILLAN
A runaway male calf trotted around a ballfield in Brooklyn before being tranquilized and captured by New York City police officers.
Fugitive Hoofs It to Prospect Park
BY ZOLAN KANNO-YOUNGS
A runaway calf raced along
a Brooklyn highway and into
Prospect Park, knocking a toddler out of a stroller before it
was captured following a
standoff with police Tuesday,
authorities said.
The chase began at about
11:25 a.m. when the male calf
was seen running north on the
Prospect Expressway between
exits 2 and 3, police said.
The bovine ran into a 2-
year-old girl being pushed in a
stroller by her mother at Prospect Park West and Park Circle, a law-enforcement official
said. The child was jolted from
the stroller and was treated at
a hospital for a cut on her lip,
the official said.
The New York Police Department deployed its Emergency Service Unit and officers
mounted on horses to Prospect Park after learning the
calf had entered the area, Officer Arlene Muniz said.
By 12:45 p.m., dozens of onlookers surrounded a field in
Prospect Park to watch the police contain the calf.
Instead of rushing to engage the animal, members of
the Emergency Service Unit,
who are trained to de-escalate
tense situations with suspects,
watched as it trotted around
the field until about 1:20 p.m.
“They want to make sure it
doesn’t get hurt as well,” Officer Muniz said. “It’s a baby.”
The young bull was “in cus-
School-Bus Driver Violations
Targeted by Attorney General
BY MELANIE GRAYCE WEST
School-bus companies in
New York rack up hundreds of
tickets a year for red-light violations caught on camera, but
companies aren’t required to
report the tickets to the state
or consider them in driver assessments, according to a report released Tuesday by Attorney
General
Eric
Schneiderman.
The loophole has potentially deadly repercussions, according to Mr. Schneiderman.
He said state laws should be
changed to require bus companies to report red-light violations to the state and school
districts, and to include those
violations in driver evaluations.
“We must crack down on
the problem now, before it
turns tragic,” Mr. Schneiderman said in a statement.
Investigators for the attorney general’s office randomly
selected 15 bus companies in
Westchester and Suffolk counties and found hundreds of
tickets—300
alone
in
Westchester in 2016—for red-
light camera violations.
Under state law, bus companies must upon request provide to the state Department
of Motor Vehicles reports on
bus-driver convictions and accidents, but not red-light camera violations, which capture
offenses not seen by a police
officer. School-bus companies,
not individual drivers, are
ticketed for red-light camera
‘We must crack down
on the problem now,
before it turns tragic.’
New York state attorney general
violations. But school-bus
companies maintain detailed
records and know the driver of
an individual bus, investigators found.
New York state generally
has some of the toughest laws
regulating bus drivers, who
must complete medical exams
before employment and are
subject to criminal history re-
views. They also have to pass
regular road tests after starting work. If a school-bus
driver operating a personal
vehicle receives three tickets from a police officer for
running a red light in an 18month period, state law would
prohibit that person from
driving a school bus for a year.
Al Roney, a spokesman for
the New York School Bus Contractors Association, a trade
group, said safety is the priority for bus companies and the
association will work closely
with the attorney general’s office to ensure that any loopholes are addressed.
In instances where a driver
is found to have gone through
a traffic light, said Mr. Roney,
the offense is taken seriously.
“While different companies
may have different disciplinary procedures, the driver is
subjected to retraining, suspension or possible termination,” he said.
“School buses are, by far,
the safest mode of transportation for students to get back
and forth to school each day,”
said Mr. Roney.
tody” shortly after 1:30 p.m.,
Officer Brian Magoolaghan
said. Authorities said the animal was tranquilized and then
put in a horse trailer.
The calf was taken to the
Animal Care Center of New
York City facility on Linden
Boulevard in East New York,
Brooklyn. An ACC spokeswoman said the runaway—
now nicknamed Jimmy K.—
was transferred to Skylands
Animal Sanctuary & Rescue in
New Jersey.
A former investment manager was sentenced Tuesday to 6 to 18 years in prison
for stealing nearly $7 million
in a Ponzi scheme.
Steven Canady, 45 years
old, who owned the now-defunct Alliance Warburg Capital Management, received the
sentence in Manhattan federal court following a June
conviction on larceny, fraud
and forgery charges.
Between May 2010 and
June 2015, Mr. Canady stole
millions of dollars by persuading companies looking
for loans to pay him “fully
refundable
due-diligence
fees” in exchange for the
promise of funding, prosecutors say. Mr. Canady would
then take the money for himself, using some of it to pay
off other companies he had
previously lured into the
scheme.
Mr. Canady also stole
$150,000 from one company
with the false promise of a
big 30-day return on an investment in one of his business ventures, according to
prosecutors.
Mr. Canady created fake
personas, invented business
relationships and forged documents to get clients to pay
him, prosecutors say. He
showed companies fake bank
documents indicating he had
more than $500 million in
assets, prosecutors say.
Mr. Canady’s lawyer didn’t
respond to a request for
comment.
“In this multimillion-dollar Ponzi scheme, there was
nothing legitimate about the
defendants’ business dealings, and every contract, letter, and bank account was
used to commit fraud and
steal from victims across the
country, who lost hundreds
of thousands of dollars,”
$7M
Amount stolen by ex-investment
manager Steven Canady
Manhattan District Attorney
Cyrus Vance Jr. said in a
statement.
Mr. Canady’s sister, Ruby
Canady Summers, 48, also
played a part in the scheme,
by pretending to be a lender
and creating forged bank
statements showing more
than $1 billion in an account,
according to prosecutors.
Ms. Summers, who was
also convicted in June, was
sentenced last month to
three to nine years in prison
on
larceny
and
fraud
charges.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10B | Wednesday, October 18, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
METRO MONEY | By Anne Kadet
3 D AYS A U TO M AT I C
ACC I A I O - 4 5 M M
( R E F. 674 )
AMERICANA MANHASSET . TEL. 516 627 7475
EAST HAMPTON . TEL. 631 329 3939
WESTFIELD AT WORLD TRADE CENTER . TEL. 212 381 9455
When a
newly built,
two-bedroom
home in the
Goethals Community on
Staten Island sold at the end
of September, it fetched a record-busting high price for
the neighborhood: $150,000.
Yes, that is actually a freakishly low figure for a home in
New York City. But there is
good reason—Goethals is the
city’s only trailer park.
The 14-by-60-foot home,
manufactured by Eagle River
Homes with tan carpets, Formica counters and faux-wood
flooring, sold before it was
even installed on lot C-11, said
Goethals resident manager
George Valente.
Mr. Valente said he has a
waiting list of more than 100
prospective buyers. With the
median price for a two-bedroom in Staten Island’s North
Shore area topping $425,000,
the prospect of a similar-sized
home selling for one-third the
price appeals to many.
Prices for used homes are
even lower. Realtor Geralyn
Liverani recently listed a 1983
two-bedroom on lot F-5 for
$90,000. The home, with its
hardwood floors, Jacuzzi and
stainless-steel appliances, sold
within a month.
Such prices only look like a
bargain relative to other local
options, of course. A new,
two-bedroom manufactured
home would typically cost
less than $50,000 in a trailer
park outside the city.
Installation costs are
higher in New York City, “but
it’s mostly about market
forces,” said Richard Freedman, chief executive of Garden Homes Management
Corp., which owns 97 manufactured housing communities
in the Northeast, including
Goethals. “Our cost is, in the
end, besides the point.”
Zoning laws make it nearly
impossible to build a new
manufactured-home commu-
BYRON SMITH FOR THE WALL STREET JOURNAL (2)
Trailer Park Is a Hot Property
Rich Auchmoody, top, prefers the comforts of his manufactured
home in the Goethals Community, above, to apartment dwelling.
nity anywhere near the city,
so the supply “has been effectively fixed for decades,” Mr.
Freedman said.
Goethals is home mainly to
retirees like Suzanne Marano,
a former Wall Street executive
who used to share a ranch
house five minutes away with
her mother and sister. She
bought a manufactured home
in 1990 as a gift for her mom.
The three used it as a vacation house.
“There’s something about
Italian people—they like a
second home, and this was
the best I could do,” she said.
Ms. Marano now lives
there full-time and has the
place furnished with photos
of Pope Francis, matching flo-
ral-print sofas and a very,
very large television.
She has paid the mortgage
so her housing expenses are
limited to $585 a month in lot
rent, which covers water, private sewer service and trash
removal. Gas and electric cost
another $150 a month.
“If you’re retired, it’s wonderful,” she said.
The site originally served
as a dump, then as a golf
range. Two brothers bought
the land in the 1980s and
turned it into a trailer park.
When they raised the lot fees,
residents staged a rent strike.
After residents lost the ensuing court battle, many
couldn’t pay their back rent
and had to leave. Opportun-
ists bought homes from desperate sellers—sometimes for
less than $5,000—and hauled
them away. When Garden
Homes bought the land in
1995, there were just 68
homes remaining on the 128lot site. “It was lonesome,”
Ms. Marano said.
The community has long
since rebounded and is fully
occupied. The homes, in
shades of white, beige and
light blue, are packed 15 feet
apart. Many residents install
screened-in porches, back
decks and gardens. Try that
with your $425,000 co-op!
Folks say they enjoy relative quiet. While it fronts the
entrance to the busy Goethals
Bridge, the community backs
up to the Graniteville Swamp,
commonly referred to as “the
marsh.” It is home to falcons
and muskrats, not to mention
an endless parade of deer
who boldly stroll the community’s asphalt lanes.
Residents acknowledge
that trailer parks get a bad
rap. But at Goethals, prospective buyers have to pass a
screening interview with Mr.
Valente, who keeps out the
riffraff. “One guy was so high
on heroin, he couldn’t even
stay awake for the meeting.”
He is also responsible for
enforcing four densely printed
pages of regulations: No hot
tubs, skateboard ramps or
trampolines. Grass not to exceed 4 inches. No loud singing.
But there is still room for
expression. Rich Auchmoody,
a retired truck driver, has his
carport festooned with Christmas lights, a ceiling fan, three
barbecues and a fuzzy, lifesize, singing deer head.
Mr. Auchmoody serves as
the community’s handyman,
grows tomatoes and does his
shopping on nearby Forest
Avenue. A former apartment
dweller, he prefers his current
digs.
“You got more room, more
chance to do things,” he said.
Isn’t there any downside to
living in a trailer park on
Staten Island?
“You tell me!” he said.
“We’ll both know!”
anne.kadet@wsj.com
GREATER NEW YORK WATCH
NEW YORK CITY
Sergeants Union
Backs Malliotakis
State Assemblywoman Nicole
Malliotakis’s mayoral campaign
got a boost Tuesday with an endorsement from the Sergeants
Benevolent Association, a
13,000-member New York City
Police Department union.
“She looks at the issues and
she sees people,” said Ed Mullins,
president of the SBA.
The union has an acrimonious
relationship with Mayor Bill de
Blasio, a Democrat running for reelection. Tensions rose when a
sergeant was charged with murder earlier this year after shooting
an unarmed mentally ill woman in
the Bronx. Mr. Mullins lambasted
the mayor as too quick to pass
judgment in the case.
Ms. Malliotakis, a Republican
from Staten Island, told the SBA:
“Like so many other New Yorkers you recognize the damages
this mayor has done to our city
and to your police department.”
Mr. de Blasio’s campaign
spokesman defended the mayor’s
record on police relations, saying
he “strongly supports the uniformed men and women who
serve New York City proudly.”
—Mike Vilensky
NEW YORK STATE
Solitary Confinement
Standards Adopted
New York is adopting new
standards for the treatment of
prisoners held in solitary confinement in local jails, including
mandated time outside their cell
and increased reporting requirements, in an effort to prevent
prisoner mistreatment.
Under the new rules, issued
Tuesday by the state’s Commission on Correction, inmates held
in isolation in local jails must be
provided with at least four hours
outside their cells each day. Local
jail officials would have to notify
the state when a prisoner who is
pregnant or under the age of 18
is placed in solitary, or whenever
an inmate is held in seclusion for
more than a month.
—Associated Press
CORRECTIONS AMPLIFICATIONS
A photo of Ahmad Rahimi
that accompanied an article
about his conviction for planting bombs in Manhattan was
taken by Mike Segar of Reuters. In some editions Tuesday,
the photo credit was incorrectly given as Brent N.
Clarke/Filmmagic/Getty Images.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
LIFE&ARTS
Wednesday, October 18, 2017 | A11
WORK & FAMILY | By Sue Shellenbarger
Mom, Dad: Welcome to the Conference
More schools are including students at parent-teacher meetings, and sometimes even calling on them to lead the discussion
of a 2015 book on student-led
learning. Students also collect
samples of their drafts and finished work in notebooks, digital
files, portfolios or posters to show
their parents.
Tanya Marchman-Twete, a fifthgrade teacher at Lone Tree Elementary School in Lone Tree,
Colo., says more parents attend
student-led conferences because
their children get excited about
leading the conferences.
And students sometimes think
more deeply about problems when
they describe them with both their
teacher and their parents present,
she says. When one fifth-grader
complained about conflicts he was
having with other students, he had
a eureka moment. The student realized he was fueling the tensions
by always insisting on doing
things his own way in games.
Kelli Lumaye says she had a
similar epiphany when her 11-yearold daughter Eliza declared herself
“bad in math” during a student-led
conference two years ago. Eliza
was more anxious about math than
she had realized, she says. Both
she and Ms. Marchman-Twete reassured Eliza that many students
have similar problems and she
wasn’t as far behind as she feared,
Ms. Lumaye says. They agreed on
some exercises Eliza could do with
Ms. Lumaye’s help at home. She
has since gained confidence.
Many teachers see traditional
conferences with parents as stressful, tiring and time-consuming, research shows. Anxious parents
Ace Your Child’s
Parent-Teacher
Conference
Some tips to help the meeting
when your child is there, too:
1. Let your child take the lead.
2. Ask her to show some of her
work.
3. Look for and comment on
signs of progress.
4. Ask what she’s most proud of.
5. Ask what her goals are for
the term, semester or year.
6. Ask what you can do to help
your child meet her goals.
7. Ask for an explanation of
standards or goals you don’t understand.
8. Praise effort rather than
grades.
9. Save sensitive family or social
topics for a private meeting with
the teacher.
FROM TOP: ROBERT NEUBECKER; JENNIFER CHU
BON AND JUDSON Crowder arrived at a parent-teacher conference for their 8-year-old daughter
Kate last spring hoping to discuss
some troublesome teasing on the
playground.
They spent the 20-minute meeting listening to Kate talk about
what she was doing in first grade
instead. While Ms. Crowder enjoyed watching Kate, having a
child present at a parent-teacher
conference can be awkward: “It’s
really hard to discuss social issues
when your kid is sitting right
there,” she says. She and her husband waited until a later event at
the Houston school to mention the
playground problem to Kate’s
teacher, who quickly resolved it.
Some educators are rethinking
the parent-teacher conference.
More students are attending and
sometimes even leading fall conferences, starting even in the
youngest grades.
The shift is gradual, accelerating in the past few years. It reflects a growing emphasis on what
educators call personalized learning—tailoring students’ work to
their individual needs and interests, and pressing them to take responsibility for mastering agreedupon skills. The aim is to spawn
lifelong learners who can adapt
nimbly to change.
The format can be jarring at
first for parents. “The first time
you do it, it’s a little disconcerting.
You’re wondering, ‘why am I going
to school to have a student-led
conference with you when I could
just talk to you at home?’ ” says
Beth Simek of Surprise, Ariz.,
president of the 20,000-member
Arizona PTA.
But after participating in student-led conferences starting in elementary school for her son Andy,
who is now 16, Ms. Simek says she
was pleased to see how proud he
was of his work with other students on group projects. Letting
students lead “gives your child a
chance to show you the personality they have at school, and who
they are when they’re away from
you,” she says.
Some schools have students attend all parent-teacher conferences. Others allow teachers to decide whether students are present.
Students often lead, but sometimes
just take part. Principals at public
schools in Arlington, Va., began
embracing student-led conferences
about five years ago, starting in
fourth or fifth grade, a school district spokeswoman says. About half
of the district’s 28 elementary and
middle schools now have students
take the lead. Some private schools
have included middle- and highschool students in parent-teacher
conferences, but many are extending the practice to lower grades.
Teachers begin preparing for
these sessions weeks in advance.
They help students set learning
goals, make plans to reach them
and understand what their work
will look like after they’ve succeeded, says Kara Vandas, a Castle
Rock, Colo., professional-development consultant to schools and coauthor with Mary Jane O’Connell
The Park children of Tiburon, Calif., have led parent-teacher conferences at
their school. From left to right: Sydney and Andy Park, 14 and 12, their mother,
Jennifer Chu and their father, John Park.
closely monitor every word the
teacher says and try to show
they’re good parents by criticizing
their child before the teacher does,
says Danielle Pillet-Shore, an associate professor of communication
at the University of New Hampshire, who has analyzed videos of
the conversations.
A student’s presence “changes
the dynamic tremendously,” Dr.
Pillet-Shore says, shifting the focus away from the parent.
Parents can help by focusing on
what the student is learning,
rather than grades, and praising
the student’s effort. Most important, experts say, is for parents to
ask, “What can I do to help you
meet your goals?”
Student-led conferences can go
awry if parents focus on disappointing grades, join the teacher in
criticizing the student and demand
to know why he or she isn’t doing
better, says Ms. O’Connell, a Sedalia, Colo., professional-development consultant. This can leave a
student feeling deflated and wanting nothing more than to get everyone off his back, she says.
Kyle Redford, who teaches fifth
grade at Marin Country Day
School in Corte Madera, Calif.,
says student-led conferences help
ensure that everyone is getting the
same story from the student. A
student might pretend at school
that he’s managing his work just
fine, then have an emotional meltdown about it at home.
Ms. Redford saves 10 minutes at
the end of student-led conferences
for parents to speak with her privately about a child’s social skills,
friendships or family issues.
“That’s the most valuable part for
me,” says Jennifer Chu, a Tiburon,
Calif., parent of two former students of Ms. Redford’s, Andy, 12,
and Sydney, 14. “I get to know
what she really thinks, and I get to
tell her what’s going on outside
the classroom.”
TELEVISION
WHAT MAKES ‘THE WALKING DEAD’ SO HOT
AMC (2)
BY PAUL VIGNA
Above, Melissa McBride as Carol Peletier and Norman Reedus as Daryl Dixon; right, the walkers.
BY NOW, YOU’VE LIKELY seen the
barbed-wire baseball bat. You’ve probably
heard somebody say, “look at the flowers,
Lizzie.” You’re aware that there’s some
scruffy character out there named Daryl,
and that women swoon over him, and everybody’s threatening to riot if he dies. But
you’re still not a fan of “The Walking Dead.”
“The Walking Dead” returns to AMC on
Sunday for its eighth season, premiering
with its 100th episode. Over its first seven
seasons, this zombie show has become a
ratings monster. In the key demographic of
18-49 year olds, “The Walking Dead” is the
most popular show on television. It’s bigger
than the NFL. The controversial Season 7
premiere drew 17 million people. That episode, in which the villain Negan bludgeons
to death two main characters, was so
graphic that it sparked the first backlash
against the show’s violence. The audience
drifted off (and producers toned down the
bloodshed), down to around 10-11 million by
midseason, but not enough for any other
show to take the top spot.
“The Walking Dead” is the story of Rick
Grimes (Andrew Lincoln), a small-town
sheriff’s deputy who wakes from a coma to
find society destroyed by a zombie plague.
The show follows Rick as he finds his family
and leads a small band of survivors through
the southeast, trying to fight off both the
zombies and the living, who can sometimes
be just as deadly.
Why all the fuss over a lowbrow zombie
splatterfest? Here are some of the reasons
for the show’s success, and if you’re willing
Please see DEAD page A13
THE WALL STREET JOURNAL.
A12 | Wednesday, October 18, 2017
LIFE & ARTS
MY RIDE | By A.J. Baime
Gracie Hackenberg, 21, a senior
at Smith College in Northampton,
Mass., on her 1999 Mazda Miata
racing car, as told to A.J. Baime.
This weekend, roughly 40 teams
from all over the country will compete at the Grassroots Motorsports
$2017 Challenge at Gainesville
Raceway in Florida. The basic
rules are, you build a racing car
for no more than $2,017, and that
includes all the parts except safety
equipment. Drivers compete in
drag racing, autocross (racing one
at a time through a course to see
who’s fastest), and a concours
(participants have three minutes
to present their cars to judges).
I grew up in a car family, and I
started helping my grandfather—a
NASA engineer—work on his vintage cars when I was seven. I got
hooked on racing around the time
I got my driver’s license at age 17.
(I admit, I got some speeding tickets.) As an engineering student, I
was looking for a motor-sports
project I could take on. The Grassroots Motorsports event was perfect because it was accessible in
terms of resources, and a really
supportive community.
I began building my car last
summer while interning for Hale
Motorsports, a race shop in Old
Saybrook, Conn. Randy Hale, my
mentor, sold me a gutted Mazda
Miata for $600 and taught me how
to weld in a roll cage. The Miata is
the most popular production vehi-
cle for people who want to build
race cars but do not have professional budgets, so it was an ideal
start.
At the beginning of the school
year, I took the car to campus.
Even though the project is independent (I am not being graded), I
got help from fellow students; the
lab coordinator for the engineering
department, Sue Froehlich, has
been my main adviser.
At the beginning, I had about 40
Smith students helping, but the
work got so intense over the last
eight weeks (on top of school
work); there are three left. While
my teammates raised money for
the car and travel expenses
through a Smith college engineering grant and a GoFundMe page, I
focused on the car. Working in a
school machine shop, I installed an
exhaust system, fabricated custom
seat brackets, and installed the
race seat, safety harness, and a
spoiler. The 1.8-liter motor and the
manual transmission are stock
1999 Miata.
As you read this, my adviser Ms.
Froehlich’s husband will be driving
the car on a trailer to Florida, and
I will be flying down to compete
this weekend. Winners will get trophies and bragging rights, and I
am gunning to bring them home
for the whole Smith college team.
MEGAN HALEY FOR THE WALL STREET JOURNAL (5)
A Race Car She
Built Herself
Clockwise: Gracie Hackenberg will race her self-built car this weekend; Ms. Hackenberg strapping into the harness she
installed; the 1999 Miata sports the Smith College banner; the seat, among the car’s many used parts; the car’s nose.
Contact A.J. Baime at
Facebook.com/ajbaime.
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | A13
LIFE & ARTS
CULTURAL COMMENTARY
Seeing a Donor’s Vision
The overhauled Freer is returned to its patron’s original intent
A gallery in the newly renovated Freer Gallery, above, and a
coffin for a cat (B.C. 664-332 or later), left, in ‘Divine Felines’
nasty (second century) or Whistler’s
portrait (1902) of
Freer himself.
Its sister institution, the Smithsonian’s
Arthur M. Sackler Gallery, opened in 1987 to
house a gift of some
1,000 works of Asian art
from the New York psychiatrist and medical
publisher, has likewise
been refreshed, although
a more striking and awkward marriage with
Freer’s building would
be hard to imagine
(because they
are connected
underground,
they are regarded as a single museum).
The building is a postmodern eyesore. Entering through
a neo-Victorian pavilion, the visitor
descends into a warren of windowless subterranean galleries. A
greater challenge to curators
would be hard to contrive.
Director Julian Raby’s desire to
attract, engage, instruct and sometimes amuse a large audience informs the temporary exhibitions in
the Sackler celebrating the museums’ reopening. It’s an approach
that Freer might have frowned on,
but is a perhaps necessary nod to
the different cultural climate in
which the museum is operating.
Divided into five thematic sections, “Divine Felines: Cats of Ancient Egypt” (organized by the
Brooklyn Museum and on through
Jan. 15, 2018) is an intriguing, often lighthearted, examination of
“the role and meaning” of the animal in Egyptian society. It will appeal to the legion of cat lovers who
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may view statuettes of cats, cats
on rattles, and even a feline’s coffin. They also may be fascinated to
learn that when a pet cat died, its
owners shaved their eyebrows.
Featuring “two experiential
spaces,” video, digital tablets and
more than 300 objects spanning 18
centuries, “Encountering the Buddha: Art and Practice Across Asia”
(through Nov. 29, 2020) seeks to
“illuminate the ways in which art
and place express the teaching of
Buddhism.” The exhibition serves as
a good introduction, not only to one
of the world’s major religions and
the diversity of its interpretations,
but also to some of the grandest
objects in the museum’s collection,
including two imposing busts of arhats from the Ming dynasty.
“Resound: Ancient Bells of
China” (through 2020) is a userfriendly display exploring the
many functions of Chinese bells.
One learns that these bells—there
are 60 of them here—are works of
art that just happened to ring.
Their history, manufacture, use
and different sounds are interestingly explored, the last through
digital graphs generated by visitors
tapping two modern bells.
There’s also an installation piece
by the contemporary Indian artist
Subodh Gupta (through Feb. 3,
2019) featuring towers (some 13
feet high) made of brass food containers interwoven with strings.
Cognoscenti of Asian art as well
as tourists to the National Mall
will find joy, knowledge and instruction in the Freer and Sackler
Galleries. It’s good to see them in
such fine fettle.
Mr. Cole, a former chairman of the
National Endowment for the
Humanities, is a senior fellow at
the Ethics and Public Policy Center.
AMC (2)
Washington
WHEN IT OPENED in 1923, the
Freer Gallery of Art was the Smithsonian’s first art museum. Charles
Lang Freer (1854-1919), a Detroit
railroad tycoon, had been encouraged to donate his collection of
Asian art and work by James Abbott McNeill Whistler to the nation.
Among the treasures of what is
now a 26,000-work collection are a
superbly carved sandstone Bodhisattva from northern China (c.
sixth century), a fierce red wooden
Japanese Aizen Myo’o (1293), and
John Singer Sargent’s “Breakfast in
the Loggia” (1910), a marvel of dappled sunshine and shadow.
In addition, the museum boasts
over a thousand Whistlers, including the famed Peacock Room, a
sumptuously painted London dining room Freer bought in 1904 and
reassembled in his Detroit home.
An autodidact guided by Whistler and the Asian art scholar Ernest Fenollosa, Freer pored over
catalogs, read avidly, and traveled
to explore works in situ (including
five trips to China) and buy for his
collection of Western and Asian
objects. He believed that all art
is linked by a beauty that is
universal. Like those of his
contemporaries Henry Clay
Frick and Isabella Stewart
Gardner, Freer’s collection is
a product of the taste of
one discerning person with
a hunger for art and deep
pockets to fulfill it.
For the museum, Freer
worked with Beaux Arts
architect Charles Platt to
design an elegant neo-Renaissance building
whose beautifully proportioned, luminous
rooms, around a garden court, perfectly
showcase his collection. Sadly, Freer died
before it was completed.
It has now reopened after a major upgrade. Much of the work was
done behind the scenes—improving climate control, security, the
elevators and auditorium. But in
the public areas, the Freer has
been restored to its donor’s intent.
Platt’s rooms, marvels of architectural reticence complementing the
art they house, and his severe barrel-vaulted corridors, wisely left
unadorned, are themselves well
worth a visit. Carpeting has been
removed to reveal restored terrazzo floors, architectural details
have been refreshed and natural illumination maximized.
Now seen in elegant, unobtrusive vitrines, the museum’s treasures are beautifully illuminated by
natural and artificial light. The objects are carefully paced, encouraging the breathing room, leisurely
study and silent contemplation
that Freer wanted for masterpieces
like a jade Bi disk from the Han dy-
FROM TOP: FREER GALLERY OF ART AND ARTHUR M. SACKLER GALLERY, BROOKLYN MUSEUM
BY BRUCE COLE
Above, Melissa McBride as Carol Peletier embracing Lizzie, portrayed by
Brighton Sharbino; below, Andrew Lincoln as Rick Grimes.
DEAD
Continued from page A11
to binge-watch 99 hours or so of
programming, you could catch up
before Sunday.
Zombies!
Let’s not kid ourselves, you’re
not going to get very far into this
show if you can’t abide zombies.
If you can stomach them, the
zombie effects are great, and the
show takes particular joy in coming up with creative new
ways to showcase —
and dismember —
its “walkers.” On
this show and its
spinoff, “Fear the
Walking Dead,”
zombies have
myriad nicknames: walkers,
geeks, biters, infected, lamebrains,
roamers, rotters—but
never zombie. The pilot
gave us “bicycle girl,” a zombie
severed in half at the waist.
There was the “well walker”
from Season 2, literally a waterlogged zombie in a drinking well.
Focus on the Living
What separates “The Walking
Dead” from other zombie stories
is the focus on character. These
aren’t comic-book heroes; they
are almost stereotypically average people. That makes them
more relatable.
Take Carol Peletier, a survivor
played by Melissa McBride. Carol
goes from battered, cowed
housewife in Season 1 to fullfledged action hero by Season 7,
but is still tortured by what she
has to do. Often that means
“braining” a zombie (the only
way to kill the undead), but that
is not all. In Season 4, she protects the living by executing an
insane young girl she had adopted as her own. “Look at the
flowers, Lizzie,” Carol says
through tears, drawing her revolver. Carol keeps count of her
kills; each one haunts her.
It’s grueling to watch these relatable people in constant life-ordeath struggle, and the resulting
dynamic is an unusually close
bond between viewer and charac-
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ter. We don’t just root for them.
We’re worried sick about them.
Politics, Man, Politics
Is “The Walking Dead” a political
show? Depends on who you ask.
Some see it as a socialist fable—
it is, after all, about little pods of
people working together for the
greater good—and others criticize it for being too fascist—
Negan (Jeffrey Dean Morgan) is a
classic demagogue. Frankly, the
show is political only because it
portrays how societies form.
The first few seasons were
about individuals in a
collapsed society. The
next few were about
those individuals
coming together
in small, walled
communities.
When Season 8
starts, the survivors are in all-out
war between
Negan’s followers
and an alliance of
three communities led by
the hero Rick Grimes. “The
Walking Dead” is about the
Hobbesian process of going from
the “natural state of man” to the
implementation of the “leviathan”–government.
The Real ‘This Is Us’
In its own way “The Walking
Dead” is the most realistic show
on television. It portrays people
who look like us enduring incomprehensible circumstances, and
finding ways to survive it. “We
do what we have to do, and then
we get to live,” Rick tells his followers, and that is the real trick
of it. In a world of financial crises, terrorist attacks and natural
disasters, the message hits home.
Hope
One of the most surprising
things in talking to “Walking
Dead” fans is how much inspiration they draw from the show.
Sure, it is just a TV show. But
when you combine all those elements, you end up with, in its
own grim way, something that
looks like hope. “Everything
works out the way it is supposed
to,” Carol says.
Of course, that was right before she told Lizzie to look at the
flowers.
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 | Wednesday, October 18, 2017
SPORTS
MLB
A Hidden Key to Success: Throwing Slower
Big league pitchers are throwing fastballs harder than ever, but baseball’s best teams specialize in the curveball
BY JARED DIAMOND AND BRIAN COSTA
Houston Astros pitcher Dallas Keuchel uses his
off-speed pitches to keep hitters off balance.
BASEBALL IN 2017 revolves around power.
Batters this year hit the most home runs in
the sport’s history, shattering the previous
record by more than 400. Pitchers throw
harder than ever before, with the average
fastball now traveling at a blistering 93
mph, a full 2 mph faster than a decade ago.
But the pitching staffs on the postseason
stage this month reveal a counterintuitive
trend: They enjoyed more success than their
peers not by blowing balls past batters—but
by relying less on power than just about everyone else.
No team in the major leagues threw fastballs less often than the New York Yankees,
according to the statistics website FanGraphs. Their opponent in the American
League Championship Series, the Houston
Astros, had the fourth lowest fastball rate,
while the Cleveland Indians, the squad the
Yankees beat in a thrilling five-game division series, had the second lowest.
The pattern continues in the National
League. The Los Angeles Dodgers, who at
104-58 finished with the best regular-season
record of any team since 2004, ranked 24th
in fastball rate.
“If you ask hitters what they want, they
want the heater,” Astros pitching coach
Brent Strom said. “They all want fastballs.
They grow up being able to hit it. They
want it straight.”
The smartest teams this season refused
to oblige with the hitters’ wishes, attacking
opposing lineups with a barrage of off-speed
pitches and breaking balls.
Of the eight teams who most frequently
threw curveballs in 2017, seven reached the
playoffs, led by the Indians and Dodgers,
who just so happened to post baseball’s two
best ERAs in the regular season. The AL
East-champion Boston Red Sox, the team
with the fourth-best ERA, finished third in
curveball rate, while the Yankees threw
more sliders than anybody else.
All told, pitchers across the league turned to
the fastball just 55.6% of the time this season,
down from 56.7% last year and 60.7% in 2008.
“The game is changing,” Astros closer
Ken Giles said. “Guys are catching up to
fastballs nowadays, so you need to be creative with your secondary stuff.”
Consider David Robertson, a standout reliever for the Yankees who in his 10-year career has thrown fastballs about 70% of the
time. In Game 5 of the ALDS last week, he
took the mound in the sixth inning to face the
heart of the Indians’ lineup.
In such a crucial situation, Robertson all
but abandoned his heater. Instead, he threw
curveballs on six of his seven pitches in that
frame, quickly setting down Jason Kipnis,
Jose Ramirez and Edwin Encarnacion in order. In the seventh, he threw curves on 16 of
20 pitches, including the final 10 straight.
Robertson worked 2 2/3 innings that night,
earning the win. Robertson has allowed one
run in 10 innings during these playoffs,
throwing breaking balls 70% of the time.
“Guys can hit 103 if it’s in the strike zone,
but when you throw that hard, they have to
cheat a little bit,” said Rick Peterson, a former
major-league pitching coach. “That makes the
breaking ball that much more effective.”
Pitchers view the change in philosophy as
Dangerous Curves
TEAM
CURVEBALL
RATE
TEAM ERA
RECORD
17.6%
14.9%
14.6%
14.4%
14.2%
14%
14%
12.8%
3.30 (1st)
3.38 (2nd)
3.70 (4th)
4.78 (25th)
4.12 (11th)
3.95 (7th)
4.59 (19th)
3.66 (3rd)
102-60
104-58
93-69
67-95
101-61
92-70
85-77
93-69
Indians
Dodgers
Red Sox
White Sox
Astros
Cubs
Twins
Diamondbacks
T-B: PRESS POOL/GETTY IMAGES; WALLY SKALIJ/ASSOCIATED PRESS
Teams with the highest curveball rate and their
team ERA. The White Sox were the only team in
the top eight to miss playoffs.
Source: FanGraphs; WSJ
Dodgers’ Clayton Kershaw is a curveball ace.
a response to a new generation of hitters
who approach them differently than they did
even five years ago. Utilizing new statistical
tools made possible by Statcast, like launch
angle, batters have increasingly tailored their
mechanics to maximize home-run power, resulting in swings with a slight uppercut.
As teams become more sophisticated
about managing their bullpens, constantly
cycling through fresh relievers who throw
close to 100 mph, offenses have concluded
that this all-or-nothing strategy represents
their best chance to generate runs.
Peterson said that two pitches best combat that style of hitting. One is the elevated
Weather
fastball, which has returned to prominence
after a long stretch of pitching dominated
by sinkerball specialists. But Peterson
pointed out that high heat “is dangerous,”
since mistakes up in the zone are particularly easy to drive. The other, safer option,
is the breaking ball.
“It’s hard to string together three, four hits,
so what you’re really trying to do is eliminate
the one big hit,” Dodgers pitcher Brandon
Morrow said. “Off-speed pitches are harder
generally to time up and to lift in the air.”
The data backs up that theory. Washington Nationals ace right-hander Stephen
Strasburg threw his fastball less often this
season than any other point in his career by
a wide margin. He threw his curveball almost twice as frequently as he did in 2016.
In turn, Strasburg gave up the fewest home
runs per nine innings in the majors.
It reflects another change in pitchers
adapting to evolving hitters. Not long ago,
pitchers primarily worked horizontally, trying to move their fastballs to the inner and
outer halves of the plate. Now, Peterson
said, it’s more of “an up and down game.”
“Guys are getting so good at not swinging
at pitches out of the zone that you have to be
able to throw a pitch that looks like a strike
that they want to swing at,” Dodgers righthander Brandon McCarthy said. “The best
pitch for that is a breaking ball. It looks like
a strike the whole way, and then it’s not.”
Hitters put up a .459 slugging percentage
against fastballs this season, according to
Statcast. Against curveballs, that figure
plummeted to .355. As McCarthy put it,
“Hitters don’t want to hit curveballs.”
Baseball goes in cycles, with certain pitches
falling in and out of favor. Pitchers evolve,
hitters adjust, and then pitchers evolve again.
The rise of data analytics only means “the
copycatting will be faster,” McCarthy said.
That’s why pitchers believe that, sooner
rather than later, curveballs will again fade
into the background, and something else
will take their place. But the teams who figured out the value of the breaking ball first
are the ones who have a chance to go home
in 2017 with rings.
“Everybody’s on curveballs now, so what
will guys work on this offseason?” McCarthy
said. “Hitting curveballs.”
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.
40s
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75 t
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53 s
53 sh
43 t
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67 s
56 pc
51 s
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56 c
69 s
67 s
51 s
78 t
53 c
61 c
79 pc
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71 57 s
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88 72 s
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78 66 s
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55 43 r
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5
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27 Every mineral on
Earth?
7 1991 Oliver Stone 30 Addict’s torment
movie
31 Opposition
member
10 Big wind
16 Secret target?
17 Individually
18 Dusky
19 Brawny
henchman
20 Plainly visible
mannerisms?
34 Presidential
Medal of
Freedom
recipient Jackson
5 Mystical
bookstore
section
36 Really stand out
37 Letters on a red
cap
39 Knickknack
shelves
42 Eye angrily
32 “The Big Bang
Theory”
character
44 Organic
compound used
in solvents
9 Citrus with an
edible skin
45 ER attendants
10 “You can do it,
sister!”
QUILL POWER | By Samuel A. Donaldson
15 Sch. address
ender
3 Sundial number
33 As ___
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8 Letters on a
bank door
54
61
14 Blot on one’s
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32 Show again
7 Force followers
55
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2 Nero or
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51
52
29 Org. in a July
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31
35
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11
22
25
27
44 Bird hunter’s
danger?
48 Acropolis
honoree
46 Savory tart
11 Treasure
47 Jazz fan, often
12 Hunk’s asset
48 Target of a
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Arabia” attack
13 Young’s
accounting
partner
49 Bulb product
51 Pecan, e.g.
21 Michele of
“The Mayor”
52 Thoroughly
Putinesque?
22 Dusky
53 Diamond
quartet
23 Words of
resignation
54 Numbered
instruction
24 Dragster engine
58 Tulsa sch.
55 Shoe retailer in
many malls
35 Skyscraper
components (not 56
made by Apple)
57
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61
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not know
myself”: Macbeth 62
CPR pro
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side of the
Pyrenees
Brawny
henchman
23 Exclamation
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of a frame
40 Shipping unit
41 “Fixer Upper”
carrier
64 Abbey nook
26 Prelude to civil
war
43 Hamburger
home
66 Follows
63 Bad blood
65 Bakery meas.
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
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t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
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City
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Anchorage
36 26 s
35 20 s
Atlanta
71 49 s
75 49 s
Austin
82 55 s
83 64 pc
Baltimore
72 44 s
73 49 s
Boise
73 48 pc 74 46 pc
Boston
69 53 s
72 55 s
Burlington
67 51 s
71 47 pc
Charlotte
71 42 s
75 47 s
Chicago
70 52 s
70 51 s
Cleveland
72 51 s
73 49 s
Dallas
83 57 s
83 63 pc
Denver
76 43 s
76 48 s
Detroit
69 50 s
71 44 s
Honolulu
86 77 pc 87 76 pc
Houston
83 62 s
86 66 pc
Indianapolis
70 50 s
73 50 s
Kansas City
74 49 s
76 56 s
Las Vegas
85 63 s
87 62 s
Little Rock
77 49 s
80 51 s
Los Angeles
86 64 s
78 63 pc
Miami
87 76 pc 88 78 t
Milwaukee
69 51 s
68 51 s
Minneapolis
70 42 s
69 53 s
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74 45 s
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72 55 s
72 55 s
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78 53 s
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25 “The Dragons
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | A15
OPINION
A Trumpian Victory at P&G
Procter
&
Gamble could
have done
worse than
name Nelson
Peltz to its
board. His
BUSINESS
hedge fund
WORLD
owns 1.5% of
By Holman W.
the stock. He
Jenkins, Jr.
has relevant
experience.
And he was supported by the
three big proxy-advisory firms
and a majority of professional
money managers.
Yet if the preliminary count
holds up, Mr. Peltz lost last
week’s proxy fight by a smidgeon, and in ways that have
much in common with another
election that took place last
November.
P&G is unusual for a large
company. Some 38% of the
shares are held by individual
investors, many of them employees and retirees in P&G’s
hometown of Cincinnati. Like
Donald Trump’s campaign
strategists and unlike Hillary’s,
P&G focused on the votes it
needed, not the votes it would
be nice to have.
“Even though most of the
big institutional investors
sided with Peltz,” wrote editor
Rob Daumeyer of the Cincinnati Business Courier, “thousands upon thousands of Proctoids—your
uncle,
your
neighbor, your friend—stayed
loyal to management.”
CEO David Taylor cut a
special video aimed at these
employees, retirees and alums, whom he said “hold
more P&G shares than any
single entity—five times more
shares than” Mr. Peltz.
Former CEOs were rolled
out to warn of job losses and
plant closings. John Pepper,
who retired in 2002, stressed
that even today his office remains “just across the street”
from company headquarters.
A.G. Lafley, who retired in
2015, aimed his jibes at the national media, saying we were
“puppets and parrots” of Mr.
Peltz.
For the first time in a decade, the P&G Alumni Global
Conference held its annual
convention in the company’s
hometown—to coincide with
last week’s vote. The day of the
vote a panel was scheduled
consisting entirely of backers
of management.
By a teensy 0.2% of the ballots P&G this week claimed to
have prevailed in a preliminary
count. If so, leadership of an
institution with national and
global responsibilities will
have been decided by a handful of people in the Midwest—
just like the 2016 election.
Also, these voters will quickly
discover how little such a contest actually settles.
P&G still faces a competitive world. Mr. Peltz isn’t going away—he still owns $3.5
billion in Procter stock. Hundreds of professional fund
managers who sided with him,
and who are restlessly judged
on how much money they can
make for the clients, aren’t going away.
The fundamental problem
isn’t going away: Procter’s
venerable brands no longer
command the loyalty of younger consumers the way they do
older ones. Mr. Taylor argues
the solution is to step up innovation under P&G’s existing
brands—e.g., Tide Pods or
Crest White Strips. Mr. Peltz
stresses the need to develop
new brands to capture the affection of millennials.
Guess what? P&G needs to
do both, and will still need to
focus on cost-cutting and productivity improvements.
Now, let’s notice that
growth is the closest
thing to a solution to
make everyone happy.
Mr. Peltz, to his credit, understood the fight wasn’t just
about a higher share price.
Trumpian concerns mattered
too. “It’s not going to decimate
Cincinnati,” he said of his proposal to redeploy 9,000 of
P&G’s 10,000 headquarters
staff to operational business
units. “We’re going to make
the people in corporate be
productive.”
He doesn’t even like being
called an “activist” investor,
which he says implies a shortterm interest. “I’m an engaged
shareholder,” he told the local
press.
Locals, in voting against the
hedge fund manager, didn’t fail
to notice that he was previously
involved in brutal shake-ups at
Heinz, Kraft Foods, PepsiCo,
DuPont and other firms. At the
same time, they realize that
many such lean-and-mean firms
are now P&G’s competitors.
The good folks of Cincinnati
aren’t dumb, any more than
many who voted for Mr.
Trump. A financial columnist
for the Cincinnati Enquirer last
week touted management’s
“huge win,” then promptly
chided readers for being overinvested in P&G stock. The city
itself, even as it rallied around
lumbering Procter & Gamble,
joined nearby Dayton in bidding for a new Amazon headquarters, never mind the dire
threat Amazon poses to locally
headquartered retail chains
such as Macy’s, Kroger and
Meyer.
Since his own Trumpian triumph, Mr. Trump has proved
one thing: He doesn’t need to
deliver the miracles he promised his voters to keep them
loyal. If he did, many of his
most popular-sounding nostrums would make things
worse. Not a few of his casually held ideas are the enemy
of growth, jobs and income
gains.
Mr. Peltz wanted a board
seat, not a breakup of the
company. He didn’t even call
for Mr. Taylor’s head. Having
won, Mr. Taylor knows he
can’t save every job or keep
every plant open or secure every future. P&G voters, like
Trump voters, seized an opportunity to signal that their
priorities are not necessarily
those of the marketplace or
the apostles of efficiency.
That’s worth taking on board,
but Mr. Taylor still knows the
best way to reconcile the interests of multiple P&G constituencies is to keep the
share price growing.
Is Populism a Threat to Democracy?
After Emmanuel Macron’s
startling
emergence as
the dominant
force
in
POLITICS French politics, it became
& IDEAS
fashionable to
By William
argue that the
A. Galston
populist wave
sweeping the
democratic West was receding. If the subsequent success
of the Alternative for Germany challenged this optimistic view, the results of Sunday’s legislative elections in
Austria should refute it. The
transnational protest against
existing political arrangements goes on.
Austria’s far-right Freedom
Party, whose first leader was
once an SS officer, increased
its share of the popular vote
from 20.5% in 2013 to 26% in
the current election. The center-right People’s Party did
even better, increasing its
share from 24% to 31.7%. In
December 2016 the Freedom
Party polled as high as 35%.
Some have mistakenly drawn
comfort from the drop-off, but
the People’s Party prevailed,
in part, by adopting a toneddown Freedom Party agenda.
The two parties are now likely
to join forces in a coalition
government.
Immigration drove the results. Like Germany, Austria
accepted a large number of refugees at the height of the 2015
crisis, with similar political
consequences. Sebastian Kurz,
the 31-year-old People’s Party
leader and likely the country’s
next chancellor, embraced a
comprehensive anti-immigrant
agenda. As foreign minister
and minister of integration in
the current government, he
demanded closure of the Balkan route on which immigrants traveled from Turkey
to Austria and Northern Europe. He also imposed a burqa
ban.
As a candidate, Mr. Kurz
proposed cutting welfare benefits for immigrants, penalizing new arrivals who do not
work hard enough to integrate into Austrian society,
and sending migrants rescued
in the Mediterranean to
camps in North Africa while
their applications for asylum
are evaluated.
All traditional center-right
parties throughout the West
essentially face the same
choice: either retain a moderate stance on immigration and
lose ground to the far right,
which is what happened to
Angela Merkel, or adopt a portion of the far right’s anti-immigrant agenda and retain
public support.
The center-right prime
minister of the Netherlands,
Mark Rutte, turned back a
stiff challenge from Geert
Wilders’s anti-Islam Freedom
Party in March by shifting toward Mr. Wilders’s stance on
immigration. Two months before the general elections,
Mr. Rutte wrote an open letter saying those who “refuse
to adapt” should “behave
normally, or go away.” It cannot be right, he declared in
an interview, for a Muslim
bus driver to say, “I refuse to
shake a woman’s hand because that doesn’t fit my belief”—and for a Dutch human
rights board to back his refusal. “That’s precisely why I
and many other people are
rebelling.”
Disagreements over
immigration and
sovereignty needn’t
imperil basic norms.
While populist parties in
Northern and Western Europe
challenge assumptions and
policies long shared by centerleft and center-right parties in
Europe, they do not represent
a frontal assault on democratic institutions and norms.
Control of national borders is
an attribute of sovereignty, after all. The tension between
the European Union and its
member states on this question is a quarrel within democracy, not about democracy. Nor is it unreasonable to
expect immigrants to act in
accordance with the basic political and social tenets of societies that have chosen to admit them.
As European publics have
altered their views of immigration, their political systems
are bound to adapt. This is
what democracies do.
A boundary exists between
legitimate policy change and
subversion of democracy itself.
The publics in established democracies endorse the former, but not the latter. A new
survey from the Pew Research Center shows that in
North America and most of
Europe, public support for
representative democracy remains high—much higher
than for any alternative.
This is no reason for complacency. The same survey
finds high levels of dissatisfaction with the performance
of elected officials, along with
low levels of trust in government. Supporters of populist
parties are more likely than
others to express mistrust.
Many who back democracy in
principle favor a greater measure of direct public involvement—through national referendums and other devices—in
shaping policy. This is a further sign of party systems and
representative institutions in
disrepair.
Democracies must wrestle
with these challenges, but
they are not evidence of impending collapse. Ideological
opposition to liberal democracy was at its peak in the
1920s and ’30s. Even then, not
a single established democracy collapsed from within.
“Once democracy takes root,”
conclude Agnes Cornell, Jørgen Møller and Svend-Erik
Skaaning, who have studied
the interwar period in detail,
“it tends to be remarkably stable, even in very difficult circumstances.” Not so for
newer, less-established democracies, which are vulnerable in tough times.
Notable & Quotable: ‘The Most Wonderous Land’
From Sen. John McCain’s “One day, in what now seems
remarks at the 2017 Liberty another lifetime, it wrapped its
Medal ceremony, Oct. 16:
arms around the finest sons
any nation could ever have, and
Some years ago, I was pres- it carried them to a better
ent at an event where an ear- world.”
lier Liberty Medal recipient
He could barely get out the
spoke about America’s values last line, “May God bless them,
and the sacrifices made for and may God bless America,
them. It was 1991, and I was at- the most wondrous land on
tending the ceremony com- earth.”
memorating the 50th anniverThe most wondrous land on
sary of the attack on Pearl earth, indeed. I’ve had the
Harbor. The World War II vet- good fortune to spend 60
eran, estimable patriot and years in service to this wongood man, President George drous land. . . . I’ve tried to deH.W. Bush, gave a moving serve the privilege as best I
speech at the USS Arizona me- can, and I’ve been repaid a
morial. I remember it very thousand times over with adwell. His voice was thick with ventures, with good company,
emotion as he neared the end and with the satisfaction of
of his address. I imagine he serving something more imwas thinking not only of the portant than myself, of being a
brave Americans who lost their bit player in the extraordinary
lives on December 7, 1941, but story of America. And I am so
of the friends he had served very grateful.
with and lost in the Pacific
What a privilege it is to
where he had been the Navy’s serve this big, boisterous,
youngest aviator.
brawling, intemperate, striv“Look at the water here, ing, daring, beautiful, bounticlear and quiet . . .” he directed, ful, brave, magnificent country.
With all our flaws, all our mistakes, with all the frailties of
human nature as much on display as our virtues, with all the
rancor and anger of our politics, we are blessed. . . .
We are blessed, and we
have been a blessing to humanity in turn. The international order we helped build
from the ashes of world war,
and that we defend to this day,
has liberated more people
from tyranny and poverty than
ever before in history. This
wondrous land has shared its
treasures and ideals and shed
the blood of its finest patriots
to help make another, better
world. And as we did so, we
made our own civilization
more just, freer, more accomplished and prosperous than
the America that existed when
I watched my father go off to
war on December 7, 1941.
To fear the world we have
organized and led for threequarters of a century, to abandon the ideals we have advanced around the globe, to
refuse the obligations of international leadership and our
duty to remain “the last best
hope of earth” for the sake of
some half-baked, spurious nationalism cooked up by people
who would rather find scapegoats than solve problems is
as unpatriotic as an attachment to any other tired dogma
of the past that Americans
consigned to the ash heap of
history.
We live in a land made of
ideals, not blood and soil. We
are the custodians of those
ideals at home, and their
champion abroad. We have
done great good in the world.
That leadership has had its
costs, but we have become incomparably powerful and
wealthy as we did. We have a
moral obligation to continue
in our just cause, and we
would bring more than shame
on ourselves if we don’t. We
will not thrive in a world
where our leadership and ideals are absent. We wouldn’t
deserve to.
BOOKSHELF | By Steven Poole
The Cruel
And the Kind
The Fear Factor
By Abigail Marsh
(Basic, 302 pages, $28)
E
veryone, it seems, is fascinated by psychopaths.
They make up an estimated 1% to 2% of the population, so there may be more than six million of them
in the U.S. alone. Most of them, of course, are not sadistic murderers like Hannibal Lecter, but they all have one
thing in common: an abnormal lack of empathy. But what
is the cause of that lack, and can it teach us anything
about ordinary moral behavior?
In “The Fear Factor,” Abigail Marsh, a psychologist
and neuroscientist, describes her research into that question with great verve. The results center on the ancient
brain area called the amygdala. This region is known to
be involved in processing emotions, including fear. And
what do you see when you put psychopaths in a functional-MRI scanner? One, their amygdalas are on average
smaller than ordinary people’s. Two, their amygdalas
activate much less when
shown images of frightened people. Indeed,
when looking at various
facial expressions,
psychopaths easily name
joy, surprise, confusion
and so on—but they get
stuck on fear. They don’t
seem to know what it is.
This compelling scientific detective story spirals
outward into realms that
affect everyone. Psychopathy is probably, like many
other disorders, on a spectrum: There is a “compassion
continuum.” So what about the
opposite end of the spectrum? Ms. Marsh
got interested in that too: What drives some people to
perform acts of “extreme altruism,” defined as risking
their lives to save others? To answer that question, she
studied people who had donated kidneys to recipients
whom they didn’t know or ever meet.
It turns out the amygdalas of altruists are the opposite to those of psychopaths: They are bigger and more
active than ordinary people’s when shown frightened
faces. In other words, they have an unusually high empathetic response to others’ fear. Together with that, altruists tend to be more frightened themselves by things,
and there seems to be a strong link between this fear
and a more vivid understanding of the fear of the others
they feel driven to save, whether by donating an organ
or running into a burning house.
Such findings lead to a larger evolutionary narrative
about “alloparenting,” which is the habit, very common
in mammals, of parenting children not one’s own or not
even of one’s species. In captivity, domestic dogs have
successfully parented tiger cubs. And in traditional
hunter-gatherer societies, a newborn infant is taken care
of by someone other than the mother up to 85% of the
time. We are also alloparenting, Ms. Marsh argues, when
we look after our pet dogs and cats.
Studying the brains of psychopaths and altruists
shows a fundamental difference in their abilities
to recognize feelings of fear in others.
This suggests an answer to the question: What is the
purpose of the ability that psychopaths lack and that
altruists have in excess—being able to understand that
another person is afraid? It used to be thought commonsensical that frightened facial expressions acted as an
“alarm call,” to warn others of danger. But, as Ms. Marsh
points out, this doesn’t make much sense: If the frightened person is looking at you, you have no idea where
or what the danger is. Instead she proposes that a
frightened facial expression is a defensive mechanism
against aggression. A scared face, she argues, resembles
the face of an infant (wide eyes, gaping mouth). An
adult with a normally functioning brain, seeing such a
face, will find his or her nurturing, alloparenting instincts kicking in and will be disinclined to do harm. But
a psychopath doesn’t have this reaction, and so his
aggression is uninhibited.
Toward the end of “The Fear Factor,” Ms. Marsh looks at
some very large questions, such as whether we are actually
becoming more caring and empathetic as a society—surprisingly, she answers yes, invoking among other things Steven
Pinker’s argument, in “The Better Angels of Our Nature”
(2011), that human civilization has become much less
violent. She even suggests that altruism toward strangers
may be more likely in individualistic societies like the U.S.
than in collectivist societies like China. This seems counterintuitive, but the idea is that in individualistic societies
there is more social fluidity—strangers might always
become friends, so it makes more sense to help them.
Perhaps most interesting politically is the moment when Ms.
Marsh, almost in passing, comments that her research gives
the lie to the idea that human nature is fundamentally selfish. “People vary,” she insists.
This final discussion of large issues goes beyond the
author’s pure scientific expertise, but most readers will
agree that by this stage she has earned such intriguing
speculations. The book is overall a model of careful
popular science writing, rebutting common
oversimplifications. It is fatuous, she says, to call the
hormone oxytocin, which is involved in mothering and
pair-bonding, simply “the love hormone”—it is also
involved, for example, in social memory and cognition—
and while the amygdala is very important, it is not the
only part of the brain implicated in fear, and there is
much that is still not known.
Best of all, her writing style is vivid and personable.
Describing the extraordinary evolutionary change that
enabled mammalian mothers to feed their young with
milk, she writes: “Imagine if you one day discovered that
you could shoot hamburgers out of your armpits at will.
That’s basically how incredible lactation is.” And despite
the book’s optimistic message, there are moments—as
when she describes a psychopathic teenage girl she
tested as someone “with whom I would have been unwilling to spend a night alone in a house”—that send a chill
down the spine.
Mr. Poole is the author of “Rethink: The Surprising
History of New Ideas.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A16 | Wednesday, October 18, 2017
OPINION
R
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Realtors Take a Tax Hostage
The Many Reasons Americans Own Firearms
epublicans had hoped to mute opposi- in marginal tax rates. But that is also the point
tion to their tax blueprint by preserv- of reform—to lower rates across the board
ing the deduction for mortgage inter- rather than subsidize one form of economic or
est, but no bad policy goes
social behavior (like owning
They want to keep
unpunished. The Realtors are
a home) over another.
still howling that the reform
The Realtors say the GOP
middle-class rates high framework
will hurt homeowners, and
would reduce the
to save their subsidy.
they’re trying to take a cenincentive to buy and own
tral element of reform as a
homes. This is highly doubtpolitical hostage.
ful. Home-ownership is
One goal of the GOP framework is to sim- higher in countries with no deduction such
plify the tax code by eliminating preferences as Canada (69%) and the United Kingdom
that distort economic behavior. Most itemized (71%) than in the U.S. (64%). The U.S. also
deductions other than mortgage interest and heavily subsidizes housing in other ways,
charitable contributions would be nixed. But such as the low-income housing tax credit
the individual standard deduction would in- and Fannie Mae and Federal Housing Admincrease to $12,000 from $6,350 ($24,000 for istration loan guarantees.
married couples) to reduce taxes for most
The subsidies get baked into higher home
Americans.
prices, thereby making ownership less affordThe Realtors are upset because they say this able for lower- and middle-income earners.
middle-class tax cut would make fewer taxpay- California, Washington, D.C., New York and Haers use the mortgage-interest deduction. The waii have among the largest mortgage-interest
National Association of Realtors trashed the tax deduction claims per return but the lowest
framework in a statement, saying it “would all home-ownership rates. On the other hand, taxbut nullify the incentive to purchase a home payers in Southern and Midwestern states
for most, amounting to a de facto tax increase” with high home-ownership derive less benefit
and ensure “that only the top 5 percent of from the deduction.
Americans have the opportunity to benefit
Taxpayers in coastal states that benefit
from the mortgage interest deduction.”
most from the state and local tax break also
Where to begin? The brokers are right that reap some of the biggest gains from the mortthe reforms would reduce the utility of the gage-interest deduction. Many of these states
mortgage-interest deduction for many middle- have higher home prices due to scarcity of
income earners who currently itemize. But this land and restrictive zoning. Homes in Califoris a virtue, not a bug. While only those with nia’s coastal metros are four to five times
large mortgages and charitable contributions more expensive than in most of the rest of the
would likely continue to benefit from the country, but the disparity in rents is about
break, this doesn’t mean other homeowners half as large.
would be worse off.
This is another way of saying that the mortTwo-thirds of all income-tax filers already gage-interest deduction subsidizes housing
take the standard deduction. Increasing it to consumption for the upper and upper-middle
$12,000 would mainly affect homeowners class. Republicans could help tax fairness if
earning between $50,000 and $100,000 who they reduced the current $1 million cap on the
on average itemize $7,000 in mortgage interest size of a deductible loan to $500,000. The Tax
and $6,342 in local and state taxes. Some of Foundation estimates this would raise about
these middle-income itemizers—particularly $300 billion in revenue over 10 years, which
those with smaller mortgages who live in could be used to lower tax rates. GOP tax writlower-tax states—would instead take the stan- ers should do this if the Realtors insist on pardard deduction. But if their overall tax liability tially restoring the state and local tax deducis reduced, they’re still better off. The Realtors tion.
want to keep taxes higher on all Americans so
Like other carve-outs, the mortgage-interthey can keep their subsidy.
est deduction favors some taxpayers over othThe well-to-do with large mortgages could ers and distorts economic decisions. Tax restill itemize deductions—the average mort- form would benefit all Americans in lower
gage-interest deduction for those earning rates and faster economic growth, and Repubmore than $250,000 is $15,500—but the sub- licans should hold fast against the housing
sidy’s value would diminish due to a decline lobby’s self-serving tax flimflam.
A
Jerry Brown’s Title IX Veto
regular test of the Trump era will be whether federal and state actions to prevent and
hewing to fundamental principles de- redress sexual harassment and assault—well-inspite polarization over the 45th Presi- tentioned as they are—have also unintentionally
dent. Full marks, then, to Govresulted in some colleges’ failCalifornia’s Governor ure to uphold due process for
ernor Jerry Brown, the
California Democrat, who on
accused students.”
stands up for due
Sunday vetoed a bill that would
Mr. Brown said accused
process on campus.
have codified Obama-era polistudents must be granted
cies on campus sexual assault.
“the presumption of innoThe Obama Administration
cence until the facts speak
in 2011 issued the notorious “Dear Colleague” otherwise” and warned that “depriving any
guidance, which ordered universities to create student of higher education opportunities
Title IX kangaroo courts or risk losing federal should not be done lightly, or out of fear of losfunds. Education Secretary Betsy DeVos is mov- ing state or federal funding.” He added, in an
ing to replace that guidance with new regula- affront to the idols of identity politics, that “we
tion restoring due process.
have no insight “ into “whether there is disproBut the California Legislature, in full resis- portionate impact on race or ethnicity.” All of
tance mode, passed a law explicitly “to protect which is true.
the Obama-era guidelines,” said Santa Barbara
Mr. Brown’s second term ends next year, so
state Senator Hannah-Beth Jackson, the bill’s perhaps he feels politically liberated to resist
sponsor. Adherence would be “a condition of re- the resistance mob when it tramples bedrock
ceiving [state] financial assistance.”
due-process protections. But adults in both poEnter Mr. Brown, who echoed Mrs. DeVos’s litical parties need to keep their eyes on those
concerns in a letter with his veto: “Thoughtful principles regardless of what they think of the
legal minds have increasingly questioned Trump Administration.
F
Prosecutorial Impunity
ederal appeals judge Alex Kozinski has information. Yet the trial judge looked at the
noted that abusive behavior by prosecu- same facts and concluded the opposite. Judge
tors is reaching “epidemic proportions.” Raggi’s ruling means in practice that there is no
That epidemic will get worse
mechanism for an innocent
An appeals court winks person like Mr. Ganek to seek
after Tuesday’s ruling by the
Second Circuit Court of Apif a claim is a lie, and
at false evidence that redress
peals absolving prosecutors
no legal remedy.
destroyed a hedge fund.
for using false information to
This is incentive for proseput David Ganek’s hedge fund
cutors to think they can get
out of business.
away with lying as long as
A three-judge panel, led by prosecutorial they have other evidence to dress up a warrant.
soft-touch Reena Raggi, overturned a lower Never mind that in this case the warrant was
court ruling and found that prosecutors and FBI used to justify a raid on an innocent party and
investigators have immunity from Mr. Ganek’s destroy his business.
suit seeking damages. The court ruled that imThe Ganek raid and smear were typical of
munity applies even though prosecutors falsely former federal prosecutor Preet Bharara’s
claimed Mr. Ganek had traded shares based on method in his assault on Wall Street. The
what he was told was inside information.
smearing continued even during the oral arguAn FBI informant in fact testified that he had ment at the Second Circuit. Sarah Normand, an
never told Mr. Ganek the information had been assistant U.S. Attorney, accused Mr. Ganek of
illegally obtained, and an FBI agent corrobo- participating in “a scheme with regard to many,
rated that testimony. Yet the FBI and prosecu- many pieces of inside information from many
tors included the false claim in an affidavit to public companies.”
obtain a warrant for a highly publicized raid on
This was long after her office had decided
Mr. Ganek’s firm. Mr. Ganek was never charged, not to charge Mr. Ganek. But instead of remorse
but the negative publicity forced him to roll up or an apology, Ms. Normand doubled down on
his Level Global fund in 2011.
prosecutorial innuendo.
Prosecutors deserve some measure of immuMr. Ganek could appeal, but the Supreme
nity lest they be sued every time they lose a Court is unlikely to take a case that hangs on
close case. But immunity should not be impu- such a factual dispute. The Justice Department
nity, and Judge Raggi’s opinion all but provides could discipline the prosecutors for spreading
it by refusing to let Mr. Ganek’s suit proceed to false information, and it ought to investigate
gather evidence about whether prosecutors whether it was a lie, but Justice is an insider’s
knew the information was false.
club. The only real check on prosecutorial abuse
Her opinion says this doesn’t matter because are judges willing to enforce standards of honthe search warrant against Mr. Ganek’s firm esty. Judge Raggi has set a standard that will
would have been justified even without the false encourage more dishonesty.
Peggy Noonan’s “The Culture of
Death—and of Disdain” (Declarations,
Oct. 7) overlooks the main reason I
have guns. I no longer trust my government to do the right thing, to protect our nation and its Constitution or
my family. I’m a retired naval officer
who came by this distrust reluctantly
and over a long period. I took an oath
to protect and defend our Constitution against all enemies, foreign and
domestic, and I took both parts of
that oath seriously. So I watch politicians’ actions more than their words.
They want to remove our guns so we
won’t have that reason to be fearful. I
live in Texas and see what has happened in neighboring Mexico where
the drug lords have guns and the citizens don’t. I read about Chicago, the
gun-control mecca and murder capital. Does strict gun control work in
England? Maybe, but I don’t see it
working here.
CDR. HAL DANTONE, USNR (RET.)
Kingsville, Texas
in recognition that our Second
Amendment was intended only to
guarantee that a new and fragile republic could quickly raise an army to
defend itself, we’ll have too many
guns and too many mass shootings.
MICHAEL W. SHERER
Mercer Island, Wash.
Americans have guns because they
are independent, free, have always
had arms and will continue to do so.
Americans are not fearful. Americans
have the right to protect themselves
at all times. Americans expect the
right to self-defense and self-determination and this, a singular trait of the
U.S., makes it different from other
countries. When elites and politicians
argue that arms ownership by the citizens should be restricted, Americans
go out and buy weapons. I did after
many years of not owning any guns
because I was determined to exercise
my right to self-defense. Americans
don’t like government coercion.
D. SCOTT STEWART
Niceville, Fla.
Why is it when trucks are used to
drive into crowds and kill people, all
Dear Ms. Noonan: We carry guns
the talk is about mental health, but
when guns are used, it’s all about the because, unlike the elite, rich and
privileged, we cannot afford armed
guns?
NICK HEBERT guards.
Akron, Ohio
STEVE SZYMCZAK
Klein, Texas
I find it ironic that the same day
Why do Americans have so many
Ms. Noonan’s column ran, the World
guns? It’s because Americans have
Watch section reported 51,000 firearms were collected by Australian au- so much of everything. We collect
thorities during a gun amnesty drive. guns for the same reason we collect
shoes, handbags, guitars, fine wine,
More fascinating is the statistic that
cars and watches. It isn’t due to
only 13% of homicides in Australia in
2014 were gun related compared with class or political differences. It isn’t
64% in the U.S. Why? Because Austra- a culture of death. It’s a culture of
lia has had the political will to impose consumerism.
PAUL R. MANUELE
tougher gun laws.
Whitestone, N.Y.
Until we impose similar sanctions
What Wasn’t Considered in the College Survey
We, along with the presidents of
Agnes Scott College, St. John’s College and Bennington College, worry
that your exclusion from The Wall
Street Journal/Times Higher Education College Rankings of some of the
most outstanding small colleges in
the country simply because their enrollments don’t top 1,000 students or
because they don’t meet a specific
level of faculty research output does a
disservice to your readers and to the
very students and parents you are attempting to help (“U.S. College Rankings,” Journal Report, Sept. 27).
These colleges have amazing reputations for outstanding classroom
teaching, strong student living and
learning communities, innovative research conducted by faculty experts
and their undergraduate students,
cutting-edge pedagogy development
and achievements in preparing graduates to become successful leaders in
multiple disciplines. They have been
noted for their successes in various
national rankings, in news stories
highlighting their work and accomplishments, in academic scholarly re-
search on effective teaching methods
and across a spectrum of other media. By any meaningful measure,
these small colleges are each providing students with unique and wonderful educational experiences and
are highly cherished for their efforts.
Their exclusion from your rankings
deprives readers of valuable information for making college choices.
College size can be a crucial consideration when families are selecting
the appropriate college experience.
With their small student-to-faculty
ratios, our colleges are focused primarily on providing the highest quality teaching for undergraduates. In
many cases, colleges like ours have
made conscious choices to remain
small to better serve our students
and our missions.
GREGORY D. HESS PH.D.
President
Wabash College
Crawfordsville, Ind.
MARIA KLAWE PH.D.
President
Harvey Mudd College
Claremont, Calif.
Sen. Paul’s Proposal Won’t Solve the Problems
Sen. Rand Paul brings out the
fact that if every senator cast exactly the same vote that was cast in
the 2015 repeal attempt, repeal of
ObamaCare would have passed in
2017. This seems naive because
those who voted as they did in 2015
knew that their vote was meaningless since the president would have
vetoed anything they passed (“I’m
Champion of the Real ObamaCare
Repeal,” Letters, Oct. 3).
The good senator’s position that
it is better to live to fight another
day for complete ObamaCare repeal
is preferable than voting for Graham-Cassidy is preposterous. There
Justice Holmes on Free
Speech, Listening, Certainty
Richard Dooling’s tutorial on Oliver Wendell Holmes Jr.’s stance on
free speech (“Justice Holmes’s FreeSpeech Lesson,” op-ed, Oct. 13)
could have been enhanced by including a phrase famously attributed to
the great jurist: “Certitude leads to
violence.” These few words encapsulate Holmes’s sentiments on the
matter of free speech, that it is really not a matter of speaking but
rather of failing to listen. It is likely
that he came to this profound observation not from his years on the Supreme Court but from his three harrowing, grievous Civil War injuries—
the latter being a more forceful
mentor for the need to modulate
one’s convictions than even the
courtroom.
MYRON GANANIAN
Menlo Park, Calif.
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.
won’t be another day. The 2018
elections will probably punish the
current Republican Congress by
putting Democrats back in the majority and paving the way for the
single-payer insurance being pushed
by progressive Sens. Elizabeth Warren and Bernie Sanders.
Sen. Paul says he has a plan to
solve the problems in ObamaCare
by allowing individuals to buy
health insurance across state lines.
This indicates a lack of understanding because this does nothing to
solve out-of-control Medicaid
spending and doesn’t deal with
mandatory policy provisions that
increase premiums dramatically.
Nor does it cover individual and
employer mandates, medical-device
taxes, taxes mandated by ObamaCare, provide a realistic method to
cover those with pre-existing conditions or deal with the financial disarray in exchanges mandated under
ObamaCare.
BILL STEPHENSON
Nichols Hills, Okla.
Pepper ...
And Salt
THE WALL STREET JOURNAL
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Wednesday, October 18, 2017 | A17
OPINION
By Laurence Kotlikoff
And Jack Mintz
T
he Republican framework
for tax reform is taking considerable heat. Former
Treasury Secretary Lawrence Summers calls it an
“atrocity.” Economics Nobel Laureate
Paul Krugman describes it as “ten big
lies.” These strong reactions rest in
large part on a preliminary analysis of
the plan from the Tax Policy Center. It
claims that the tax plan won’t expand
America’s economy or its tax base but
will produce massive deficits. This
pessimistic view does not reflect the
best economic analysis.
The Tax Policy Center’s
models don’t simulate how
the GOP plan would draw
investment to the U.S.
Start on the business side. By our
estimate, the GOP framework reduces the tax on investing in the U.S.
from 34.6% to 18.6%. That’s a hefty
tax cut and should greatly stimulate
investment. The extra capital should,
in turn, make workers more productive, raise their wages, and increase
tax revenues. Given how little revenue the corporate tax collects thanks
to its many loopholes, this part of
the framework could, conceivably,
pay for itself.
So why does the Tax Policy Center assume there will be “little macroeconomic feedback effect on revenues”? One answer might be that
the framework’s changes to personal
income taxes would create huge
government deficits. Some “closed
economy” models of a single country suggest such deficits would absorb Americans’ savings that would
otherwise be invested, negating the
positive effects of the business tax
reform.
But this isn’t the answer given by
the Tax Policy Center. Its analysis estimates that the personal tax reforms
will generate more revenue, not less.
The huge deficits it foresees will
come, it says, solely on the business
side.
The Tax Policy Center justifies this
curious position based on its study
last year of the framework’s predecessor—the “Better Way” plan released by House Republicans. Following the trail back, we find that last
year’s study relied on two closedeconomy models that do not simulate
the current, let alone the future,
global capital market. Yet it’s impossible to guess how corporate tax
changes would affect America’s open
economy without explicitly factoring
in the conditions in competing countries—including not just their corporate tax rates, but their propensities
and capacities to save and, thus, supply capital to the world.
Fortunately, a study posted this
week co-written by one of us (Kotlikoff), along with MIT’s Seth Benzell
and the Inter-American Development
Bank’s Guillermo Lagarda, fills the
gap. The study estimates the effects
of the GOP tax framework using the
Global Gaidar Model. The GGM simulates the entire world capital market—every country is included, broken down into 17 regions—and is
calibrated using demographic information from the United Nations and
fiscal data from the International
Monetary Fund. It was developed over
ISTOCK/GETTY IMAGES
Where Critics of Tax Reform Go Wrong
three years by Kotlikoff and a team of
Russian and U.S. economists.
The GGM is a direct descendant of
the AK model, an early macroeconomic simulation developed in the
late 1970s by Alan Auerbach, a
Berkeley economist, and Kotlikoff.
Closed-economy versions of the AK
model are used by the Congressional
Budget Office, the Joint Committee
on Taxation and even the Tax Policy
Center.
Building and calibrating a singlecountry AK model is one thing. Creating a 17-region version is a much bigger challenge. Consequently, the GGM
may well be the world’s only up-todate global AK model. In our view, it’s
the only one that is up to the task of
predicting the effects of the Republican tax framework.
Unlike the “closed-economy models” being used by the Tax Policy Center, the GGM recognizes that foreigners can put capital into the U.S. Hence,
the amount of investment depends on
two things: the attractiveness of investing here, and the global supply of
savings. It doesn’t depend on the size
of Washington’s deficit because foreigners can buy the extra bonds issued by Uncle Sam. Putting it more
formally, deficits leave our bills to our
kids, but in an open economy they
don’t “crowd out” domestic investment. That the Tax Policy Center suggests the opposite shows it is using
the wrong models.
Simulating the Republican tax
framework in the GGM produces a
very different estimate. The GOP
plan would raise America’s gross domestic product by 3% to 5%, depending on the year in question. It would
increase the U.S. capital stock by 12%
to 20%. And it would raise real wages
by 4% to 7%, which translates into
roughly $3,500 a year for the average working household. Moreover,
due to the economy’s expansion, the
framework’s tax plan is essentially
revenue-neutral.
The GGM’s strong supply-side response to the corporate tax reform
reflects the mobility of global capital
and the inefficiency of today’s tax
code—with its high investment disincentive and many loopholes. But the
model does not have a built-in supply-side bias. The GGM predicts that
cutting personal income taxes would
produce deficits, crowd out capital
and diminish long-run economic welfare. It also estimates that setting the
corporate tax much below the 20%
rate proposed by the GOP framework
would necessitate personal income
tax increases to prevent America’s
debt-to-GDP ratio from rising.
The Tax Policy Center also suggests that the Republican framework
is highly regressive. This ignores,
however, the increase in workers’
wages predicted by the GGM. That
said, we do share critics’ concern that
the plan would disproportionately
benefit the top 1%. One way to rectify
the fairness problem and address the
country’s long-term fiscal gap would
be to add, as the framework foresees,
a fourth personal tax bracket for
those with very high incomes.
No economic model is perfect. But
some are far better than others when
it comes to the specific questions
they were designed to answer. Unfortunately, notwithstanding its truly
outstanding staff, the Tax Policy Center is influencing a critical debate using closed-economy models. Such
models are simply unable to simulate
accurately how the GOP tax plan will
affect the economy—let alone its tax
revenue, wages and fairness.
Mr. Kotlikoff is a professor of economics at Boston University. Mr.
Mintz is a fellow at the University of
Calgary’s School of Public Policy.
Thurgood Marshall’s Approach to Politics Still Deserves Respect
One of the final
scenes in “Marshall,” a new film
about the early legal
career of civil rights
superstar Thurgood
Marshall, shows the
UPWARD
Supreme
MOBILITY future
Court justice in a
By Jason L.
train station in MisRiley
sissippi. It’s 1941—
peak Jim Crow—and
a large “Whites Only” sign hangs
above a water fountain beside him.
Marshall ignores the sign, takes a
paper cup from the dispenser, and
draws water from the fountain. An elderly black gentleman quietly watches
him, in seeming awe of this defiant
act. The two men exchange glances
but no words as Marshall exits the
station, yet his message to the older
man is clear: Don’t be afraid.
The cultural critic James Bowman
has remarked that movie history is
history for suckers, and that’s often
the case. But “Marshall” gets a lot of
the history right, even as it fudges
details of the sensational trial at the
center of the movie, which involves a
black man who is accused of raping
and attempting to murder a wealthy
white woman in Connecticut. Marshall is a young lawyer for the NAACP
who traipses the country representing black defendants the organization
believes were unjustly accused out of
racial prejudice. The movie is, above
all else, a wondrous glimpse back at
how a previous generation of black
leaders dutifully went about the task
of advancing the race and making
America more just.
Marshall is portrayed as a confident, intelligent and fearless advocate
who went about his work under the
most difficult circumstances. He tried
cases in courthouses with no bathrooms or water fountains available
for blacks. His challenge was not simply to win cases but also to survive
the aftermath. That could mean
sneaking in and out of court buildings
to represent clients and hiding his
whereabouts when he wasn’t in court.
It was not uncommon for him to be
run out of town at gunpoint after a
trial, or to have to resort to decoy
drivers to evade lynch mobs.
Yet he continued to put himself in
harm’s way for the cause. It is hard
to square this kind of fortitude with
black leaders today who become
squeamish at the sight of Confederate statues or melt down over a “microaggression.”
“He was almost lynched once after a trial in Columbia, Tennessee,”
Marshall biographer Juan Williams
told me recently. “And there are
other instances where people bring
him into town in the back of a hearse
The civil-rights hero
saw later black leaders as
‘a carnival, a distraction,’
says a biographer.
so that it won’t be obvious that it’s
Thurgood Marshall coming into
town. And then they move him from
house to house at night so you can’t
tell where he’s sleeping.”
Mr. Williams, author of several
black civil-rights histories, said
black leaders of yesteryear obsessed
over their public appearance and
presentation: “How they spoke, how
they dressed. It mattered to them.”
Marshall frowned on the violent activism of the late 1960s and believed
outward demonstrations of black selfregard and self-respect were essential
to improving race relations. What
Marshall and other civil-rights leaders of his era personified—and what
“Marshall” celebrates—is what many
of today’s liberal elites derisively call
“respectability politics.”
People today who encourage underprivileged blacks to adopt middle-class mores are accused by
prominent black thinkers like Michael Eric Dyson and Ta-Nehisi
Coates of playing down the role of
white racism in racial disparities. But
an older generation of blacks believed that it mattered how they
were perceived by nonblacks, not because it guaranteed protection from
racist misconduct—it didn’t—but because it would help facilitate black
upward mobility. In 2016, according
to census figures, the U.S. poverty
rate was 22% for blacks and 11% for
whites, but it was only 7.5% for married blacks. Maybe Marshall’s generation was on to something.
Fifty years ago this month, Thurgood Marshall was sworn in as the
first black justice on the Supreme
Court, but he’d already earned his
place in the history books decades
earlier. Notwithstanding his reliably liberal jurisprudence, many
black activists in the 1970s and ’80s
viewed him as a member of the
conservative law-and-order establishment.
He didn’t much care for them, either, according to Mr. Williams.
“Marshall was so contemptuous of
the Jesse Jacksons and Al Sharptons
in the 1980s,” he told me. “To him,
they weren’t seriously advancing the
constitutional protection of rights,
which is what Marshall was all about,
and they weren’t advancing goals like
better education or employment opportunities. He saw them as a carnival, a distraction.”
Sadly, the carnival continues and
if anything has gotten sillier. (In August the NAACP urged blacks to “exercise extreme caution” while traveling in Missouri due to recent police
shootings in the state.) But for anyone interested, “Marshall” vividly recalls a time when civil-rights activists and organizations deserved to be
taken seriously.
Why the Eurocrats Can’t Stand Poland’s Law and Justice Party
By Ryszard Legutko
S
ince Poland’s last parliamentary elections in November
2015, members of the losing
Euro-federalist party, Civic Platform,
have accused the ruling Law and Justice Party of violating the Polish Constitution and steering the country toward authoritarianism. The charge
has been loudly repeated by European Union officials. But what critics
call authoritarianism is merely an attempt to reclaim for the Polish state
the basic instruments of power held
by governments in France, Germany
and every other European state
State institutions in postcommunist societies have always been weak
and prone to corruption. As one Civic
Platform member said in a wiretapped 2013 conversation with a colleague: “The Polish state exists only
in theory.” Law and Justice was
elected on a promise to reform the
Polish judicial system, much of which
retains troubling connections to the
communist past. Judges who sent
anticommunist activists to prison in
the 1980s still sit on Poland’s Supreme Court. Some are former members of the Communist Party.
Many Polish judges are unabashedly partisan. They attend political
rallies, make public statements on
partisan issues, and openly work
with politicians to advance certain
policies. In 2012 the president of the
district court in Gdansk accepted a
call from a journalist who pretended
to be working for then-Prime Minister Donald Tusk, a co-founder of
Civic Platform. The judge seemed
ready to accommodate the phony
aide’s requests. Mr. Tusk’s son had
been employed by a company owned
under a pyramid scheme that had
been tried before that very judge,
making the judge’s solicitousness all
the more suspect.
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Law and Justice’s proposed reforms included restoring checks and
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several professional associations
representing judges. In most European countries the goal is to incorporate political input while maintaining
judicial independence. In Poland,
however, the judges have been
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In July, Poland’s president, Andrzej Duda, vetoed two of the three
proposals put forward by his Law
and Justice colleagues, but reiterated
his commitment to radical reform. In
this, he has the support of a vast majority of the population who are
clearly dissatisfied with how the
courts work. Whatever their current
Notable & Quotable
From an interview with historian
Jacob Remes at PSMag.com, Oct. 4:
What’s the central idea behind disaster studies as a field?
At the heart [of the field] is a saying that became common in the
1970s: There’s no such thing as a
natural disaster. There are hazards,
some of which are natural (earthquakes, tornadoes, river floods) and
some of which aren’t (industrial
fires, pollution, dam collapses, nuclear bombings). But what makes
them a disaster is how they intersect
with individual and community vulnerability, which is socially constructed. Once we understand this
fundamental paradigm, we can understand how disasters are political
events with political causes and solutions, not just . . . technical failures.
differences, the president and Parliament are unlikely to give in to EU
pressure and drop the reforms.
Why did reasonable reforms provoke such strong reactions from the
European Commission and the European Parliament? One reason is the
double standards that plague European institutions. When Mr. Tusk’s
government changed the law to
Seeing Eastern European
countries regain their
political agency drives
them crazy in Brussels.
have the Constitutional Court composed almost entirely of Civic Platform appointees, no one in the EU
raised an eyebrow. When the Law
and Justice government sought a
more balanced court, the EU saw it
as a threat to the rule of law. When
the previous government sent antiterrorist forces to interrupt an editorial board meeting at Wprost, a
weekly magazine that had published
transcripts of conversations among
high-ranking Civic Platform officials, European newspapers ignored
the story.
Poland is now accused of controlling the media, which is an absurd
charge. Poland has a robust and independent media, representing a far
larger spectrum of opinion than you
find in France or Germany. Poland is
one of the few countries in Europe
where political correctness has not
managed to stifle the public discourse.
The European Commission simply
has it out for Poland because we dare
to oppose the centralizing tendencies
in Europe, defend national sovereignty as delineated by the EU
founding treaties, and insist that the
treaties be respected. The “Rule of
Law Recommendations” the commission issued this summer exceeded
the power granted to it by Europe’s
founding treaties. Targeting Poland
is a part of Commission President
Jean-Claude Juncker’s plan to make
the body “more political.”
Western European governments
and the leadership of EU institutions
have long treated the countries of
Eastern European as adolescents under their tutelage. European commissioner Günther Oettinger asked the
Polish government to bring legislative proposals to Brussels before
submitting them to the Polish parliament. During an informal meeting
with Polish politicians last year, German Chancellor Angela Merkel
couldn’t disguise her irritation at Poland’s new economic relationship
with China, arguing that such an
opening should have had the blessing
of “friends.”
Most irritating to the Eurocrats
has been the growing cooperation
among the Visegrád Four—the Czech
Republic, Hungary, Poland and Slovakia—and the Trimarium, composed
of the V4, the three Baltic states,
Austria, Slovenia, Croatia, Bulgaria
and Romania. Poland has played a
major role in bringing these Central
and Eastern European perspectives
together.
The EU functionaries seek to enlarge their power by centralizing it.
Watching Eastern European countries
regain their political agency drives
them crazy. After all, in politics no
one likes their power taken away.
Mr. Legutko is co-chairman of the
Conservatives and Reformist Group
in the European Parliament, a professor of philosophy at Krakow’s
Jagiellonian University, and author
of “The Demon in Democracy: Totalitarian Temptations in Free Societies”
(Encounter, 2016).
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A18 | Wednesday, October 18, 2017
THE WALL STREET JOURNAL.
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TECHNOLOGY: BANK ROBBERY IS LINKED TO NORTH KOREAN CYBERCRIME RING B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2559.36 À 0.07%
S&P FIN g 0.55%
THE WALL STREET JOURNAL.
* * * **
S&P IT g 0.03%
DJ TRANS g 0.33%
WSJ $ IDX À 0.17%
Wednesday, October 18, 2017 | B1
LIBOR 3M 1.357
Morgan Stanley Thrives
Wealth management’s
strength delivers best
showing for the first
nine months since ’07
BY LIZ HOFFMAN
Morgan Stanley chief
James Gorman’s outsize bet on
wealth management is paying
off in a big way.
The firm’s army of brokers—
many of them far from Wall
Street, scattered at 600 offices
from Eugene, Ore., to Alpharetta, Ga.—more than compensated for a continued slowdown in trading and set Morgan
Stanley on track for its most
profitable year in a decade.
Morgan Stanley’s $5.5 billion in net income for the first
nine months of the year is its
best showing since 2007. In
the third quarter, the firm
posted earnings of 93 cents a
share and revenue of $9.2 billion, which were both higher
than a year earlier and easily
beat analysts’ expectations.
Morgan Stanley, along with
Goldman Sachs Group Inc.,
rounded out big banks’ quarterly earnings Tuesday. The
five biggest Wall Street firms
all improved from a year ago,
each relying on a different
cocktail to overcome continued
torpor in the once-lucrative securities business. J.P. Morgan
Chase & Co. and Citigroup
Inc. leaned on commercial
lending and credit cards. Bank
of America Corp. was aided by
lending and expense discipline,
while investment gains and
merger fees helped Goldman.
Morgan Stanley’s engine
increasingly is its wealthmanagement business, which
oversees $2.3 trillion for 3.5
million Americans and continues to rake in assets. It is
the centerpiece of Mr. Gorman’s effort to turn Morgan
Stanley from Wall Street’s
problem child to a steadier
firm prized by investors,
largely by focusing on wealth
and asset management.
Those businesses are ascendant on Wall Street. Baby
boomers have hit their peak
earning years and are manag-
NIKKEI (Midday) 21354.56 À 0.09%
Blue Streak
Change from a year earlier in IBM’s total revenue
2%
ing for retirement, while the
number of millionaires looking
for advice and concierge services is growing.
Meanwhile, postcrisis rules
and quiet markets have shackled trading desks and raised
the cost of the capital they
need to operate.
The boom in wealth management extends beyond Wall
Street. Regional brokerage Edward Jones recently passed
the $1 trillion mark in total
client assets.
At Morgan Stanley, the
firm’s multiyear purchase of
Citigroup Inc.’s brokerage,
Smith Barney, is now fully integrated, and executives have
squeezed much of the obvious
Please see MORGAN page B2
0
–2
–4
–6
3Q 2017
$19.2B
▼0.4%
–8
–10
–12
–14
2012
’13
’14
KAEL ALFORD FOR THE WALL STREET JOURNAL
Chesapeake Energy officials
examined a polymer gel at a
Haynesville Shale fracking site.
Gas Guzzlers
Shale drilling is coming back to the Haynesville gas field as demand from industrial users and power plants rises.
Natural gas consumption by sector
50 rigs
35 trillion cubic feet
30
40
Transportation
Commercial
25
30
Residential
20
’16
’17
THE WALL STREET JOURNAL.
IBM Says Profit
And Sales Drop
International
Business
Machines Corp. had gains in
its hardware and artificial-intelligence divisions in the
third quarter but overall profit
and sales declined, a sign the
company’s drawn-out transformation still has a way to go.
Revenue fell 0.4% from a
year earlier to $19.2 billion, a
minor drop but enough to
make it the 22nd consecutive
quarter of year-over-year declines.
Still, revenue from the
hardware division, which
rolled out new mainframe
computers over the summer,
marked its first gain from a
year earlier since 2015.
Profit fell 4.5% to $2.73 billion. Margins narrowed overall
and in most business units,
though progressively less
since the start of the year—a
hopeful sign of stabilization.
IBM’s results were buoyed
by currency-exchange rates
that, according to David
Grossman of Stifel, worked in
the company’s favor for the
first time since 2011. IBM
makes roughly half its sales
outside the U.S.
“We said we’d have a better
second half than first, and we
did a bit better on the revenue
line,” IBM Chief Financial Officer Martin Schroeter said in
an interview. “We’re well-posi-
Electric power
tioned to deliver exactly what
we said in the fourth quarter.”
Wall Street agreed, sending
shares of Big Blue up 5.4% in
after-hours trading after finishing off slightly at $146.54
during the regular trading day.
The stock had fallen 12% this
year, compared with the S&P
500’s gain of 14%.
IBM is trying to transition
from older, shrinking businesses such as building and
maintaining technology on
customers’ premises to highergrowth operations such as delivering pay-as-you-go services
over the internet.
The company has placed big
bets on emerging technologies
such as its Watson AI platform
and blockchain, the networked
ledger at the heart of digital
currencies such as bitcoin.
The newer businesses IBM
calls strategic imperatives,
which include cloud computing and Watson-driven applications in health care and finance, grew 11% to $8.8
billion. Cloud revenue rose
20% to $4.1 billion.
Strategic imperatives are
the crux of IBM’s prospects for
transformation. Those newer
businesses accounted for 45%
of total revenue in the past 12
months, up 2 percentage
points from a quarter ago, and
are approaching the mark
where they could push the
company back to growth.
INSIDE
15
20
’15
Sources: S&P Capital IQ; the company
BY TED GREENWALD
Active drilling rigs in the Haynesville gas field in Louisiana and Texas
See more at WSJMarkets.com
10
Industrial
10
5
0
Projections
0
O
N
*Estimate
D
J
F
M
A
M
J
J
A
S
2010
2016*
2020
2030
2040
THE WALL STREET JOURNAL.
Sources: Baker Hughes (rig count); U.S. Energy Information Administration (consumption)
Energy Boost Revives Shale Spot
Haynesville natural-gas field buzzes with help from new fracking techniques
BY LYNN COOK
An early center of American shale
drilling is roaring back to life, boosted
by a building boom of petrochemical
plants, fertilizer factories and gas-export terminals along the Gulf Coast.
The Haynesville Shale, a giant natural-gas field in northwest Louisiana,
was one of fracking’s hottest spots a
decade ago. But it fizzled out about
five years ago as gas prices plunged
and drillers focused on finding oil next
door in Texas. Now, the Haynesville is
being reborn as companies with longstanding positions in the area, such as
Chesapeake Energy Corp., and newcomers seeking opportunity rush back
in and drill again.
Gas production from the Haynesville
has risen more than 20% so far this
year, to more than seven billion cubic
feet a day from less than six billion in
January, according to the U.S. Energy
Department. The number of rigs active
in northern Louisiana parishes and the
Texas portion of the field has more
than tripled in the past year to 44, according to oil-field-services company
Baker Hughes Inc.
“The Haynesville is where it began,” said Frank Patterson, Chesapeake
Energy’s vice president of exploration
and production.
The company has been learning how
Please see FRACKING page B2
HEARD ON THE STREET | By Paul J. Davies
A Credit Suisse Breakup Isn’t the Answer
Calls to
split up global
banks became
quieter as
profits revived and Europeans finally grasped the
nettle of deep restructuring,
but it couldn’t last.
Credit Suisse Group, part
way through a multiyear
overhaul, has a new activist
investor buzzing around. Full
details of the plan from RBR
Capital Advisors, a small
Swiss investment firm, are
to be published later this
week, but it has been talking
to the bank about a threeway split into investment
banking, asset-management
and wealth-management
firms. It is an odd time to
make this move. Credit
Suisse’s stock is far below its
value when Tidjane Thiam
became chief executive in
2015, but the shares are up
almost 20% since its $4 billion rights issue in June.
Mr. Thiam appears to be
winning shareholder support
for his plan. Compared with
rivals Barclays and Deutsche
Bank, Credit Suisse has made
progress. However, its position is far from secure, and
RBR would be right to point
out inconsistencies in what
it does. Like Barclays and
Deutsche Bank, it has continued to shed revenue and
lose market share to U.S.
peers in investment banking,
only partly deliberately.
The bank’s overarching
strategy is to do three main
things for its wealthy clients.
One is to lend them money
so they can enjoy wealth
without selling their businesses. Another is to help
them expand businesses and
perhaps eventually sell them.
The last is to find them all
kinds of investments, especially higher-margin complex, private and illiquid assets that typically only
institutional investors would
buy.
It isn’t easy to say why
some of its businesses fit
with that.
The trouble is that not all
of Credit Suisse’s pieces
would stand on their own.
The wealth-management
arm, untethered from the
poor returns on the investment bank, might be more
highly valued than today. Asset management, under pressure from passive investing
and small in the grand
scheme of things, could
struggle to be relevant.
A stand-alone investment
bank would certainly be too
small and too expensive to
fund, unless it slashed more
of its financing and trading
businesses.
There are things about
Credit Suisse that don’t
make sense, but RBR seems
unlikely to provide the answer.
FRONTLINES
SHIFT FAST
IN TECH WARS
HARLEY SALES
AREN’T HIGH
ON THE HOG
WSJ D.LIVE, B4
EARNINGS, B11
SoftBank to Launch
Cellular Sites in U.S.
BY DREW FITZGERALD
Japanese telecom giant
SoftBank Group Corp. plans
to form a joint venture with
Australia’s Lendlease Group
to build or manage about
8,000 cellular sites across
the U.S., challenging tower
operators that dominate the
industry.
Most of the infrastructure
will initially come from Sprint
Corp., which plans to shift its
leases for rooftop transmitters
and other sites to the joint
venture, according to the companies. SoftBank, which owns
about 80% of Sprint’s outstanding shares, has struggled
to turn the carrier into a profitable business since it took a
controlling stake in the company in 2013.
SoftBank and Lendlease will
each initially contribute $200
million toward the new infrastructure company, called
Lendlease Towers, with plans
to snap up $5 billion of telecom assets “over the medium
term” as the venture grows, a
Lendlease spokesman said.
The new company also plans
to strike agreements with
more wireless carriers.
“Our intention is to become sizable in this arena,”
said Denis Hickey, chief of
Lendlease’s business in the
Americas.
The venture’s backers
didn’t say how much of that
future commitment they plan
to fund themselves but said
they are seeking more capital
partners. A Sprint spokesman
said the arrangement could
help the company cut its expenses in the long run.
SoftBank
Chairman
Masayoshi Son has placed big
bets on a variety of companies
big and small over the past
year. Many of the investments
Please see SPRINT page B4
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, October 18, 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.
Deutsche Bank ...... B1,B8
C-D
Canyon Bridge...........B16
Capital One ...............B10
CBOE Holdings..........B17
Cheniere Energy..........B2
Chesapeake Energy .... B1
Children's Inv Fund.....B8
Citigroup......................B1
Colony Capital...........A10
Colony NorthStar......A10
Common Living...........B8
CompStak....................B8
Comstock Resources .. B2
Cooley..........................B8
Credit Agricole............B8
Credit Suisse Group ... B1
Crown Castle...............B4
CSX..............................B7
Dalian Wanda ........... B12
DaVita HealthCare....B10
Denham Capital..........B2
E-F
Equity Residential......B8
Exxon Mobil................B2
Facebook................B4,B5
G-H
General Motors ..... B3,B4
Goldman Sachs Group
.................B1,B2,B17,B18
Harley-Davidson ....... B11
Harriman Capital........B8
HSBC Holdings....B8,B17
I-J-K
IAC/InterActiveCorp...B4
IEX Group..................B17
Imagination Tech......B16
Intel.............................B4
International Business
Machines...................B1
J&J ....................... B3,B17
J.P. Morgan..........B1,B16
Khazanah Nasional.....B7
Kobe Steel...................B3
L-M
Lattice Semi..............B16
LendLease Group........B1
Lightspeed POS........B11
Lyft..............................B4
Malaysian Airlines......B7
Microsoft........B4,B5,B12
Mitsui Fudosan...........B8
Moody's.......................B8
Morgan Stanley
...................... B1,B17,B18
N-O-P
Nasdaq ...................... B17
Netflix.........................B4
Newmark Knight.........B8
News Corp.................B12
Nvidia..........................B4
NYSE Group .............. B17
OMERS........................B8
Oxford Properties.......B8
Petróleo Brasileiro ..... A9
Pilgrim's Pride............B2
Q-R-S
QEP Resources............B2
Related........................B8
RockStep Capital ........ B8
Ryanair Holdings ........ B7
SAP............................B10
Saudi Arabian Oil ..... B16
SBA Communications.B4
SoftBank Group..........B1
Soros Fund..................A1
Sprint .......................... B1
Starbucks..................B10
Sunseeker Internatl..B12
T-U
Tencent Holdings........B4
Tesla..........................B12
Third Point..................B8
Time Warner...............B8
Toyota Motor..............B3
Tyson Foods................B2
Unilever.....................B10
United Airlines..........B11
UnitedHealth ....... B7,B17
V-W-Z
Vantiv........................B17
Vine Oil & Gas............B2
Volvo..........................B12
Walt Disney ........ A1,A10
Wanda Film...............B12
Weibo..........................B4
Weinstein............A1,A10
Wells Fargo.................B8
WePay.......................B16
Worldpay Group........B17
Zhejiang Geely..........B12
INDEX TO PEOPLE
A-B
Adelstein, Jonathan...B4
Barrett, Sean............B16
Bellew, Peter .............. B7
Berry, Keith.................B8
C-D
Cain, Rob...................B12
Cunningham, Nick.......B3
De Castelbajac, Patrick
.....................................B3
Diller, Barry.................B4
Dimon, James...........B16
Dobrowski, Thomas....B8
Doerksen, Cameron .... B3
Dugan, Regina.............B5
Gellasch, Tyler .......... B17
Gorman, James...........B1
Grossman, David.........B1
H-K
Harrison, Hunter.........B7
Hemsley, Stephen.......B7
Hickey, Denis .............. B1
Hollinger, Karen..........B8
Honohan, Patrick......B16
Hutcheson, Blake........B8
Katzenberg, Jeffrey....A1
L- M
Lyngen, Ian................B17
Mark Carney ............... A9
Mueller, Christoph......B7
F-G
P-R
Franklin, Robert..........B2
Freeman, Mark..........B17
Gao, Jack...................B12
Parr, Nigel.................B16
Pick, Edward ............... B2
Polman, Paul.............B10
Pruzan, Jonathan........B2
Ramsey, Doug...........B18
Rees, Gardner.............B8
Ren, Zhiwei...............B17
Rushing, Daniel.........B18
Ryan, Ronan..............B17
S-T
Schroeter, Martin.......B1
Schultz, Howard ....... B10
Son, Masayoshi .......... B1
Stanley, Charles..........B2
Thiam, Tidjane............B1
Tsai, Joseph................B4
Tull, Thomas.............B12
W-Z
Weinstein, Bob...........A1
Weinstein, Harvey......A1
Wichmann, David........B7
Wolf, Michael J...........B4
Zeng Maojun.............B12
FRACKING
USDA
Pulls Rule,
A Big Blow
To Farmers
BY JACOB BUNGE
AND HEIDI VOGT
The Trump administration
reversed efforts to make it
easier for livestock farmers to
challenge meatpackers over
pricing and allegations of uncompetitive practices.
Some farmers have complained for years that big meat
companies enjoyed excessive
control over farmers’ livelihoods by leveraging their
broad influence over pricing
and supplies needed to raise
poultry and livestock. The U.S.
Department of Agriculture in
December outlined the new
rules that would have made it
easier for farmers to contest
their big customers.
Meatpackers had argued
the rules would have mired
processors and farmers in
costly litigation and made U.S.
meat more expensive.
Nearly all domestic chickens are owned by companies
like Tyson Foods Inc. and Pilgrim’s Pride Corp., and raised
by farmers under contract. A
large portion of hogs are
raised under similar deals.
The planned rules would
have established new grievance procedures to handle disputes between farmers and
meatpackers and detailed unfair practices. The system was
never implemented, and the
agency said Tuesday that it
was dropping the rules because of “serious legal and
policy concerns.”
Some poultry farmers who
had pushed for the rules said
they felt abandoned by the
new administration and USDA
Secretary Sonny Perdue, previously governor of Georgia, one
of the largest chicken-producing states.
“I am extremely disappointed in the Trump administration and I’d like to know
how this applies to making
America great again,” said
Mike Weaver, a West Virginia
chicken farmer who said he
posted Trump campaign signs
in his front yard last year. “All
this does is support the big
corporations, not the farmers.”
Mike Brown, president of
the National Chicken Council,
a Washington-based group
representing the U.S. poultry
industry, said the decision
“recognized these rules would
have come with deep economic consequences for American poultry and livestock producers.”
Continued from the prior page
to get more out of the
ground by drilling and fracking longer wells, Mr. Patterson told investors this
month. Chesapeake, which
produces over 1.2 billion cubic feet of gas daily in
the Haynesville, plans to
boost efforts to re-frack old
wells where production is
starting to peter out to
squeeze more out of them,
using newer technology.
QEP Resources Inc. is
also re-fracking 30 Haynesville wells this year.
“The payouts on these
wells are extremely attractive at $3 gas,” said Charles
Stanley, QEP’s chairman and
chief executive. Gas this year
has averaged roughly $3 per
thousand cubic feet at Louisiana’s Henry Hub, a benchmark for U.S. prices.
Comstock Resources Inc.
sold some Texas oil properties in 2015 to fund new gas
wells in the Haynesville, and
now has three rigs running
in the area. The company ex-
MORGAN
Continued from the prior page
savings from the business.
Quarterly revenue of $4.2 billion and a profit margin of
26.5% in the quarter were both
records.
“The obvious low-hanging
fruit is off the table,” Mr. Gorman said Tuesday. “But these
businesses are scale businesses,”
so profitability should improve
as account balances grow.
A key initiative is pushing
mortgages and other loans to
wealth-management
clients,
which hit a record $76 billion at
the end of the quarter. Another
is adding digital offerings: Morgan Stanley is rolling out a robo
adviser for smaller account balances—hopefully without losing
the loyalty of its 15,800 human
brokers.
The old model of charging clients commissions to buy and sell
stocks is falling away, with Morgan Stanley and rivals embracing a model where advisers
charge a flat fee to manage portfolios.
Morgan Stanley’s assets in
this type of account topped $1
trillion for the first time last
quarter, up from $855 billion a
year ago. Bank of America,
which encompasses the giant
brokerage Merrill Lynch, also
surpassed $1 trillion in fee-based
assets in the quarter, up from
$871 billion a year ago. These accounts face fewer regulations
and appear to better align brokers’ incentives with those of clients. And because they don’t
rely on clients to buy and sell
End to Gas Glut Predicted
Oil companies defend
big bets, citing the
rising demand for LNG
in China and India
will be true for BP PLC within
a decade—much of it via liquefied natural gas, which can be
shipped around the world like
oil.
That new potential for natural-gas supply comes as big
petrostates like Qatar and
Russia also plan to produce
more gas. The flood of supply
has depressed LNG prices and
raised uncertainty about
where all the new natural gas
will be consumed.
Many countries don’t have
the infrastructure to import
the fuel or the money to make
the required changes.
Developing LNG markets
still lack a coherent business
model, said Charif Souki,
chairman of Tellurian, which
develops natural-gas projects.
“We lack the infrastructure,”
Mr. Souki said.
The question’s urgency was
underscored by an entire day
of talks at Oil & Money about
natural gas, the first time the
organizers have devoted a day
to a fuel source other than
crude oil.
The fuel is widely seen as a
relatively
low-emissions
bridge from dirtier fuels such
as coal to a future where re-
newable energy sources such
as wind and solar become
more prominent.
The U.S. remains the largest emitter of carbon dioxide
but has reduced its carbon
output 21% over 10 years by
shutting old coal-fired power
plants and launching new natural-gas power stations.
Fossil-fuel producers underestimate renewables growth at
their peril, said Otto Waterlander, a senior partner at
McKinsey & Co.
Mr. Franklin of Exxon took
aim at two policies that have
dented the outlook for natural-gas growth: Trump administration
climate-change
moves and European regulations favoring renewables.
Mr. Franklin bemoaned the
U.S. move to exit from the
Paris climate accord, saying
that the company’s chief executive, Darren Woods, “implored” President Donald
Trump not to walk away from
the deal to curb greenhouse
gas emissions.
And he called European
policies to promote solar and
wind power growth “frankly
ineffective subsidies,” saying
gas-fired power stations do
more to help the environment.
The White House didn’t immediately respond to a request for comment. Mr. Trump
has said he is open to negotiating a better climate deal for
the U.S.
The Trump administration
has also made moves to support the coal industry.
—Sarah Kent,
Georgi Kantchev
and Christopher Alessi
contributed to this article.
pects. The U.S. Energy Department forecasts that between now and 2040,
consumption of natural gas
will increase more than that
of any other fuel source, as
demand from big industrial
users rises and power plants
replace coal-fired facilities.
Regional producers can
now also export their liquefied natural gas. Che-
niere Energy Inc.’s Sabine
Pass LNG plant, an exporting
facility that opened in Louisiana last year, is sending cargoes of liquefied natural gas to Asia, Europe and
South America. A dozen
other LNG projects are under
construction or are permitted and planned in Texas,
Louisiana, Mississippi and
Maryland.
panded a Haynesville deal
with USG Properties and
plans to drill a further 34
wells as part of that joint
venture in East Texas.
A new report by the U.S.
Geological Survey estimates
the Haynesville and nearby
Bossier shales contain over
300 trillion cubic feet of natural gas, up from roughly 70
trillion cubic feet in its previous survey in 2010.
Private companies have
piled into the Haynesville
over the past 15 to 18
months, thanks to backing
from private-equity firms.
Dallas-based Covey Park,
backed by Denham Capital,
and Vine Oil & Gas LP,
backed by Blackstone Group
LP, have collectively
spent billions buying property in the area from Royal
Dutch Shell PLC, Exxon Mobil Corp. and others.
“If you have Haynesville acreage, it’s a good time
to drill,” said analyst Clay
Lightfoot of energy consulting firm Wood Mackenzie.
Driving the trend is a
sharp cut in costs. Three
years ago, the Haynesville
had the most expensive well
costs in the Lower 48 States,
in part because its fuel-bearing rocks are the deepest in
the U.S., some more than
15,000 feet underground. But
in 2014, when oil prices
started to plunge from over
$100 to less than $50, some
companies refocused on natural gas and began experimenting with technology
such as long lateral wells,
helping improve the economics of extraction.
Rising demand for gas has
boosted the area’s pros-
stocks and bonds to generate
fees, they are more resilient in
calm markets, when trading appetite falls. They are also less
vulnerable to the shift from actively managed portfolios to passive approaches.
Like Morgan Stanley, Bank of
America’s wealth division also
had a strong quarter. Its business posted a pretax profit margin of 27%. Morgan Stanley’s return on equity, which is a key
measure of how profitably it invests shareholders’ money, stood
at 9.6% in the quarter and 9.8%
through the first nine months of
the year. Mr. Gorman has targeted a minimum of 9% for the
full year.
“We saw the same issues that
most others did,” Chief Financial
Officer Jonathan Pruzan said.
Revenue from stock-trading
was flat at $1.9 billion. As Wall
Street’s leader in that business,
with a 30% share of fees, Morgan
Stanley has little room to grow.
But guarding its turf remains
a priority for Edward Pick, who
now runs the firm’s overall trading operation.
BY LYNN COOK
LONDON—The world’s biggest oil companies have defended their giant bets on natural gas at a major energy
conference, saying demand
will soon emerge for the huge
supplies of fuel they are bringing to the market.
Robert Franklin, Exxon Mobil Corp.’s vice president in
charge of gas and power, said
natural gas demand was rising
in China, where imports of liquefied natural gas are up 40%
in the past year. He said he believed India would follow
China’s lead soon, recalling
talks this month among energy executives and Indian
Prime Minister Narendra Modi
who sought ideas for switching India to a gas-based economy.
“If I’m bullish about gas
generation in China and India,
then I’m bullish about natural
gas,” Mr. Franklin said at Oil &
Money, a major energy conference in London that draws executives, investors and government officials.
Exxon and its rivals have
invested more than $700 billion dollars in new natural-gas
projects from the U.S. to Africa to Australia from 2007 to
2016, unleashing huge new
quantities of gas. Exxon and
Royal Dutch Shell PLC both
say they produce more gas
than oil now, and the same
O K LAHO M A
AR KAN SAS
Haynesville shale
Dallas
T EXAS
LOUIS IA NA
Houston
Gulf of Mexico
Source: Energy Information Administration
THE WALL STREET JOURNAL.
Goldman Posts
Rise in Earnings
Goldman Sachs Group
Inc.’s investment bankers and
portfolio managers drove a
surprise increase in quarterly
profit, compensating for another rough spell for the Wall
Street firm’s once-unstoppable
traders.
Earnings of $5.02 a share
and revenue of $8.33 billion
were both higher than last
year and ahead of the expectations of analysts, who thought
Goldman would be the only big
bank to make less money than
it did a year ago.
Goldman lacks the big lending and consumer businesses
that buoyed larger rivals last
quarter. Instead, its gains came
courtesy of its merger unit and
a rising stock market that
boosted the value of Goldman’s own investments in
other companies.
CHARLES MOSTOLLER/BLOOMBERG NEWS
A-B
Activate.......................B4
Airbus...................B3,B18
Alibaba Group.............B4
Alphabet ................ B4,B5
Amazon.com...A10,B4,B8
AMC Entertainment.B12
American Tower..........B4
Apple......................B4,B5
Avalonbay....................B8
BAE Systems..............B4
Bank of America
........................ B1,B8,B16
Bank of China.............B8
Barclays........B1,B16,B17
BlackRock....................B8
Blackstone Group ....... B2
Boeing..................B3,B18
Bombardier..........B3,B18
Bozzuto Group............B8
Oil companies have invested heavily in natural-gas projects.
Those gains were enough to
overcome a 17% decline in its
trading arm, which is on pace
for its worst year since 2008.
Goldman is under pressure
to revive its flagging trading
businesses and, absent a quick
turnaround there, find new areas to grow. Last month, it laid
out a blueprint to earn an extra
$5 billion in revenue by 2020,
nearly half of which it expects
to come from a new focus on
lending, a steadier business that
will become more attractive as
interest rates rise.
Still, investors and analysts
remain skeptical. The firm’s
shares fell 2.6% Tuesday, their
biggest drop in six weeks, despite Goldman dangling the
prospect of a dividend increase.
Goldman’s return on equity,
a key measure of profitability,
was 10.9%. It and J.P. Morgan
Chase & Co. were the only two
of the six big U.S. banks to exceed a 10% theoretical cost of
capital this quarter.
—Liz Hoffman
How much is your
broker charging you?
US Margin
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7.50%
$6.95
Interactive
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | B3
REGIS DUVIGNAU/REUTERS
BUSINESS NEWS
An Airbus A320neo and a Bombardier CSeries jet near Toulouse, France, Tuesday. Under the companies’ tie-up, Airbus plans to use its sales and marketing infrastructure to help sell CSeries aircraft.
Airbus Takes Wingman in Boeing Fight
European plane maker
adds Bombardier deal
to increase strength in
single-aisle jet market
BY ROBERT WALL
Airbus SE and Boeing Co.
have spent decades trying to
outbuild and outsell each
other at air shows and on factory floors around the world.
On Monday, their battle for
the $200-billion-a-year commercial aviation market took a
turn into the deal room: Airbus agreed to take a majority
stake in Bombardier Inc.’s
CSeries jetliner project, effectively pulling the Canadian
company into the European
plane maker’s corner.
The deal is the first of its
kind for Airbus, which is putting in no equity upfront for
its 50.01% stake. Bombardier
has agreed to finance as much
as $700 million of any nearterm funding needs. Airbus,
meanwhile, will take operational control and put its
enormous sales and marketing
infrastructure to work selling
the CSeries.
The tie-up sent Bombardier’s share price to its high-
est level in over two years—
erasing losses this year—as it
renewed investors’ confidence
in a program that has been
plagued by delays, the threat
of crippling U.S. tariffs and
customer concerns about the
company’s financial health.
The single-aisle jet has won
positive reviews from passengers and airlines. Bombardier
has struggled to sell the plane,
however, amid uncertainty
over whether the Canadian
company had the money to
sustain the program. That
worry is now gone.
Whether Airbus’s backing
alone can make the plane a hit
is another question. The plane
is slightly smaller than the
workhorses that have become
the industry’s best sellers. It is
a plane size Boeing and Airbus
have stayed away from in the
past, amid questions over demand from airlines, especially
in the U.S. They have tended
to prefer either smaller regional planes seating as many
as 100 passengers or larger
short-haul planes carrying 150
people or more and even bigger intercontinental versions.
Airbus expects the CSeries,
which typically seats between
100 and 150 passengers, to
dominate what it says is a new
market for 6,000 planes over
the next two decades, said
Patrick de Castelbajac, Airbus
head of strategy. “We see a big
growth reservoir in a market
that is largely untapped,” he
said. Bombardier has so far
sold just 360 CSeries planes in
almost a decade.
The pact would give
Airbus a majority
stake in Bombardier’s
CSeries jet project.
Shares in Airbus rose 4.8%
in Paris on Tuesday, while
Bombardier’s stock closed up
16% in Toronto.
Airbus, of Toulouse, France,
and Chicago-based Boeing
have effectively had a duopoly
in the market for big commercial planes—ones that seat
over 100 passengers—since
1997, when Boeing bought rival McDonnell Douglas.
The Airbus-Bombardier tieup is much more limited in nature than that megadeal. It
nonetheless presents the biggest potential change in the
balance of power in the mar-
ket in 30 years.
For decades, Boeing and
Airbus have essentially engaged in trench warfare. The
rivalry has been most fierce in
the narrow-body sector, the
hottest market for big planes
in recent years. Airbus had
won 5,202 orders through
September for its workhorse
in the category, the A320neo.
It has delivered 158. Boeing
has won 3,902 orders so far
for its 737 Max. It has delivered about 30. The new Airbus
plane rolled out before the latest Boeing version.
The deal “strengthens Airbus’s hand in that duopoly,”
said Nick Cunningham, aerospace analyst at investment
adviser Agency Partners.
Russia and China in May
each began flight testing rival
single-aisle planes as well,
though they might not enter
service for several more years.
Airbus decided to make a bid
for the CSeries in part to
avoid the plane maker falling
into the hands of Chinese rivals, said a person close to the
talks. Airbus held talks with
Bombardier in 2015 about a
partnership on the CSeries before that deal unraveled.
—Jacquie McNish
contributed to this article.
Full Fleet
Airbus is expanding its dominance of the single-aisle market by
adding Bombardier's CSeries to its product mix.
Aircraft orders
Airbus
Boeing
Bombardier
= 100 (rounded)
A320neo
5,202
737 Max
3,902
CSeries
360
Aircraft by size
PLANE
RANGE
A321neo
4,258 miles
737 Max 10
3,700
737 Max 9
4,045
SEATS
240
230
220
737 Max 8
4,045
A320neo
4,258
737 Max 7
4,401
A319neo
4,315
160
CS300*
3,798
160
CS100*
3,567
Source: the companies
200
189
172
133
*CSeries
THE WALL STREET JOURNAL.
Bombardier’s Stock Flies High Amid Jet Agreement
REGIS DUVIGNAU/REUTERS
BY JACQUIE MCNISH
AND PAUL VIEIRA
The cockpit of a Bombardier CSeries jet. Shares in the company rose nearly 19% in Toronto early Tuesday, before finishing up 16%.
cember. Cameron Doerksen, an
analyst with National Bank,
said in a report Tuesday that
the partnership will improve
Bombardier’s cash flow and
lower production costs as it
shifts production for U.S. sales
to Airbus’s Alabama plant.
Although the move might
cost Canadian jobs, one union
official supported the alliance.
“This was a question of survival,” Jerry Dias, president of
Canadian union Unifor, told
Canada’s CTV network. “Am I
thrilled that they will be building CSeries aircraft in Alabama? No. But ultimately I
don’t see that any other decision could be made.”
Unifor represents some
Bombardier workers.
Canadian officials said
Monday night that the government had guarantees from Airbus about CSeries production
and employment levels in Canada and maintaining headquarters in Montreal.
The deal is subject to a foreign-investment review, but
officials signaled that approval
is likely. Airbus’s investment
in the CSeries represents “the
survival of the aerospace industry in Canada,” said François-Philippe Champagne, Canadian trade minister.
Bombardier Inc.’s share
price soared to its highest
level in more than two years
as investors responded to
news that Airbus SE agreed to
take control of the company’s
CSeries jetliner family.
Class B shares in Bombardier rose nearly 19% to 2.80
Canadian dollars (US$2.24) a
share in heavy early-morning
trading Tuesday on the Toronto Stock Exchange. The
company’s stock price hasn’t
traded that high since early
2015. The shares closed up
16%, at C$2.73.
The market reaction reflects renewed investor confidence in Bombardier’s faltering bet on its CSeries line of
narrow-body jets. The program has been plagued by delays, potentially devastating
U.S. tariff decisions and customer concerns about the
health of the Montreal-based
transportation company.
Although Airbus isn’t investing any money to acquire
control of the CSeries, the
French plane maker’s financial
and marketing muscle is expected to revive sales of the
jets that have stalled since De-
J&J Net Income Falls U.S. Looking Into Kobe Steel Scandal
After Actelion Deal
BY JONATHAN D. ROCKOFF
AND CARA LOMBARDO
Johnson & Johnson increased its 2017 sales and adjusted profit guidance for the
third quarter in a row, though
net income in the quarter fell
because of one-time items and
amortization related to the
company’s Actelion acquisition.
J&J, one of the largest
health-products companies by
revenue based in the U.S.,
urged lawmakers in Washington to “unite behind” a plan to
overhaul the corporate tax
system but said its 2017 guidance doesn’t assume there will
be a tax overhaul this year.
Overall in the third quarter,
J&J’s revenue rose 10% to
$19.7 billion. The company
posted earnings per share of
$1.37 on net income of $3.7
billion, which decreased 12%
from $4.3 billion in the previous year’s quarter.
A J&J spokesman said
profit fell because of “amortization and inventory step-up
charges primarily related to”
the company’s recent $30 billion acquisition of rare-disease
drugmaker Actelion.
Adjusted earnings per
share, which exclude one-time
items and amortization expenses, were $1.90 on adjusted
net income of $5.2 billion,
which rose 11% from a year
ago.
J&J is now forecasting adjusted earnings per share for
the year of $7.25 to $7.30, up
from $7.12 to $7.22. The company also raised its sales outlook to $76.1 billion to $76.5
billion, from $75.8 billion to
$76.1 billion.
TOKYO—The U.S. Justice
Department is wading into
Kobe Steel Ltd.’s spiraling
data-falsification scandal.
Kobe Steel said Tuesday
that it received a request from
the department to hand over
information related to substandard products sold to customers in the U.S. The company is complying with that
request, a company spokesman said.
The involvement of the Justice Department raises the
specter of legal action for the
first time since Kobe Steel admitted on Oct. 8 to doctoring
product-quality paperwork.
Workers at the factories rewrote product-quality information that gets shipped to
customers on tens of thousands of tons of metal. The information was changed to
make it seem that the product
met customer specifications
when it didn’t, the company
said.
The scandal threatens to
shake confidence in Japan’s
manufacturing industry. Kobe
Steel is one of the country’s
largest producers of steel and
aluminum—and a vital sup-
plier to the auto industry.
The government has set a
deadline for the end of this
month for Kobe Steel to determine whether there are any
safety issues with its products.
Since the initial disclosure,
Kobe Steel has gone on to
make a series of admissions
about a widening scope of
KIM KYUNG-HOON/REUTERS
BY SEAN MCLAIN
Kobe Steel executives say 500 companies are affected.
data falsifications, which
brought the total number of
companies affected by the
scandal to 500. Some of the
falsifications went back as far
as 2007.
Kobe Steel said the investigation into its operations is
continuing and more disclosures about further productquality issues could be made
as they are found.
The Justice Department request was sent to Kobe Steel’s
U.S. subsidiary on Monday.
Kobe Steel said it was unsure
what impact the request
would have on its business.
Shipments of substandard
aluminum made it into vehicles made by General Motors
Co. and Toyota Motor Corp.,
and airplanes made by Boeing
Co. So far no safety problems
have been reported that are
connected to the issue and no
recalls have been ordered.
B4 | Wednesday, October 18, 2017
THE WALL STREET JOURNAL.
* *
TECHNOLOGY
WSJ.com/Tech
Tech Firms Muscle Into Each Other’s Turf
Michael Wolf gives
outlook, noting that
extra $300 billion a year
in revenue is at stake
Screen time
Average hours spent on daily activities per U.S. adult in 2016
Sleep
7:06
Other non-work
BY ELIOT BROWN
Work
5:13
Video
5:05
Other media
2:27
Audio
Gaming
Social media
NIKKI RITCHER FOR THE WALL STREET JOURNAL
LAGUNA BEACH, Calif.—
The war for tech supremacy is
shifting quickly to newer technologies such as augmented
reality and voice assistants.
That is one finding presented Tuesday at The Wall
Street Journal’s WSJ D.Live
technology conference by Michael J. Wolf, co-founder and
managing director of the consulting firm Activate Inc.
Alphabet Inc., Facebook
Inc., Amazon.com Inc., Apple
Inc. and others are poised to
bump into each other in online
sports viewing, movies, news
and even podcasting.
Up for grabs is an extra
$300 billion a year in revenue
that Activate projects will flow
into the $1.7 trillion global
consumer media and internet
market by 2021, through internet-access fees, ads and paid
content. Activate estimates
the market will grow 4.1% a
year.
Mr. Wolf’s outlook estimates people spend 12 hours a
day on average consuming
tech and media, including moments when they are multitasking.
“Everybody’s trying to get
into everybody else’s space because what they’re really
6:55
Media /
consumer
tech
2:09
1:17
1:06
Note: Total adds up to more than 24 hours because of multitasking
Source: Activate 2016 Consumer Tech & Media Research Study
THE WALL STREET JOURNAL.
Michael J. Wolf, co-founder of Activate, discussed industry trends at the WSJ D.Live 2017 conference.
fighting for is somebody else’s
time,” said Mr. Wolf, a former
Yahoo Inc. board member, in
an interview before his presentation.
The most fertile ground is
the digital voice assistant
found in smart speakers and
smartphones.
With Amazon’s Alexa, Alphabet’s Google Assistant and
Apple’s Siri, the internet giants are rushing to make more
advanced products. Sales of
smart speakers, though, will
likely peak in 2019, Mr. Wolf
said, as the voice interface
breaks free of the devices.
“The real war is about who
gets to win the digital assistant and the voice interface,”
Mr. Wolf said. “It’s an existential threat to each of the major
technology companies.”
Along with opportunities to
shape the future of voice-enabled devices, there are potential clashes as tech giants in-
vade each other’s turf. Many
questions asked of Alexa, for
instance, require general web
searches—Google’s expertise—
while people who own a
Google Home might shop for
everyday goods, a task in
which they otherwise might
have turned to Amazon.
In shopping, Activate suggests consumers will move
even further toward generic or
private-label goods and foods
as online retailers push their
own products.
Other growing markets include podcasts, an older technology enjoying a resurgence.
Activate estimates the U.S.
podcast audience will nearly
double to 112 million active
monthly listeners in 2021.
Revenues, though, are still
tiny in the young industry,
expected to rise to $642 million from $237 million this
year.
A similar nascent fight is
shaping up in virtual and
augmented reality, where Microsoft Corp., Google and
Facebook have already dived
in—and others are watching.
Despite years of high expectations, virtual reality will still
be slow growing, Activate
projects. Augmented reality,
including glasses that display
digital images over a person’s
view of the real world, has big
potential with sales to businesses, however. Activate estimates the AR and VR markets
combined will grow to $71 billion in sales by 2021, up from
$6 billion this year, with 66%
made up by augmented reality
sales to businesses.
In the news business, Mr.
Wolf said he expects trusted
brands to take on an increasingly dominant role amid
concerns of fake news and
dimming revenue prospects
for small and local publications.
MORE ON MOBILE
WSJ
.COM
Get the latest
news from WSJ’s
D.Live technology
conference, at
WSJ.com/Tech.
HIGHLIGHTS FROM WSJ D. LIVE CONFERENCE
Diller Anticipates
More Regulation
The dominance of the biggest
U.S. technology companies is
reaching a point when the government will need to regulate
their expanse, media mogul
Barry Diller said Tuesday.
“Inevitably it has to face regulation,” said Mr. Diller in an interview at The Wall Street Journal’s
WSJ D. Live technology conference. “This is a different situation
than the standard fear that down
the street in a garage somewhere is your competitor…The
dominant companies do not have
fundamental competition.”
Mr. Diller, chairman of IAC/InterActive Corp., didn’t specify
which companies he thinks will
face greater regulation, but his
comments come at a time of
widening concern about the influence of tech giants including
Facebook Inc., Amazon.com Inc.
and Google parent Alphabet Inc.
Mr. Diller said that “everyone
and their mother” is trying video
on the web. But in Mr. Diller’s
view, only two companies are
succeeding unequivocally: Netflix
Inc. and Amazon.
—Eric Schwartzel
Alibaba’s Tsai Gives
Views on China’s Role
Alibaba Group Holding Ltd.
Executive Vice Chairman Joseph
Tsai pushed back on perceptions
that the Chinese government
has access to all Chinese corporations’ data, as Beijing pushes
for a stake in some of China’s
tech giants. “I would disagree
with the premise that the central
government has access to all
this corporate data. That’s just
not true,” he said. “If they want
data from you, just like in the
U.S., they have to have a reason.”
He added that just like other
governments, Beijing will ask for
access to data when it comes to
security and terrorism, which he
called “understandable.”
The Chinese government is
pushing for a stake in some of
China’s tech giants, including social-media powers Tencent Holdings Ltd. and Weibo Corp., as
well as Youku Tudou, a YouTubelike video site owned by Alibaba.
—Jack Nicas
Facebook Pitches In
On Intel’s New Chip
Intel Corp. on Tuesday said it
is working with Facebook Inc.
and other firms on a coming chip
specially designed for artificial intelligence, as the semiconductor
company moves to capitalize on
a fast-growing market and aims
a direct shot at rival Nvidia Corp.
Intel’s new chip will be among
the first of a new breed of processors designed from the
ground up to accelerate the popular AI technique known as deep
learning, which enables computers to recognize objects in photos, words in spoken statements,
and other features that otherwise
would require human judgment.
Called the Nervana Neural
Network Processor, the chip is
the fruit of Intel’s acquisition
last year of startup Nervana
Systems. Intel expects to ship
the initial version on a limited
basis later this year and make it
widely available next year
through Intel Nervana Cloud, a
cloud-computing service, and as
an appliance that customers can
install in their own data centers.
—Ted Greenwald
and Jack Nicas
GM to Make Systems
For Autonomous Cars
General Motors Co. plans
to make the bulk of the systems that go into an autonomous car, a shift from its
previous strategy that
thrusts it into direct competition with tech giants.
GM wants to have a hand in
the creation of the software,
electrical architecture, sensors
and large-scale manufacturing of
the next wave of vehicles, President Dan Ammann said Tuesday.
“The approach that we are taking to that is to control a lot of
that system ourselves because it
allows us to move more quickly,”
Mr. Ammann said.
At first, GM seemed eager to
team up. In early 2016, for example, GM announced a $500 million
investment in Lyft Inc., where Mr.
Ammann sits on the board of directors, and a partnership with
the ride-sharing company to develop self-driving vehicles.
—Georgia Wells
North Korea Ties Seen in Taiwan Bank Cyberheist
HONG KONG—A North Korea-linked cybercrime ring
suspected of raiding Bangladesh’s central bank last year
was likely responsible for the
recent theft of $60 million
from a Taiwanese bank, cybersecurity researchers say.
The ring, called the Lazarus
group, has been implicated in
an $81 million theft from the
central bank of Bangladesh, as
well as the disruptive WannaCry ransomware attack earlier
this year and the 2014 hack of
Sony Pictures Entertainment.
In a blog post Tuesday, cybersecurity researchers at U.K.
defense company BAE Sys-
Wireless Carriers Hit
Bump in California
The wireless industry suffered a setback this week after
California’s governor vetoed a
bill designed to make it easier
for companies to install new
cellular transmitters.
Gov. Jerry Brown said Sunday that he wouldn’t sign a
state bill easing deployments
of so-called small cells, or
short-range networking gear.
He said a simpler permitting
process for new technology
should be balanced with the interest local governments have
in managing their own rights
of way.
The decision was a rare
setback for cellphone companies, which have lobbied for
simpler rules for new radio
transmitters that can fit onto
streetlamps, traffic signals and
other structures that usually
belong to cities or local utilities.
Jonathan Adelstein, head of
the Wireless Infrastructure Association, an industry-backed
tems PLC also implicated Lazarus in the Taiwanese theft,
saying that tools used in the
attack on the Far Eastern International Bank include those
used by Lazarus in the past.
“The attack this month on
Taiwanese Far Eastern International Bank has some of the
hallmarks of the Lazarus
group,” BAE researchers
wrote.
The suspected ties to Lazarus suggest the group’s continued focus on financial cybercrimes. Besides the suspected
Bangladesh Bank theft, the
BAE researchers said the
group has been targeting bitcoin and is behind attacks on
banks in Mexico and Poland.
group, said the bill would have
helped carriers handle more
traffic.
“California needs to enact
laws that streamline the permitting process and grant greater
access to public rights of way or
its residents will be left behind,”
he said.
Wireless companies say
they are counting on small cells
to handle the loads of data their
customers are downloading on
the go and to support next-generation technology standards.
Their new infrastructure model
relies on thousands of radios to
carry the network traffic a
handful of cellphone towers
alone can’t handle.
Most states have granted
the items on wireless companies’ wish lists this year. At
least 12 states have passed
laws that limit cities’ abilities to
charge excessive fees or hold up
the approval process for the
small cells, according to the
CTIA, a telecom trade group. Local government advocates say
many state laws override residents’ right to control their
streetscapes.
—Drew Fitzgerald
Security researchers suspect the group has links to
North Korea. U.S. authorities
have said that one hack also
linked to Lazarus—the 2014
Sony Pictures hack—originated in North Korea.
The country has denied being behind the attack.
The BAE researchers said
they found further evidence of
the group’s North Korea links,
saying that they observed infrastructure in North Korea
controlling the malware used
in a previous Lazarus-linked
attack.
Representatives at North
Korea’s Beijing embassy and
Hong Kong consulate weren’t
available to comment.
The post sheds further light
on the breach of the Taipeibased Far Eastern International Bank. The breach re-
The Lazarus group
has been linked to
thefts from banks and
ransomware attacks.
sulted in the transfer of funds
to accounts in Sri Lanka, the
U.S. and Cambodia after the
perpetrators penetrated the
bank’s access to the financialmessaging service known as
the Society for Worldwide Interbank Financial Telecommunication, or Swift.
Other cyberattacks in the
past year have penetrated
banks’ access to Swift, including the Bangladesh Bank theft.
In a written statement,
Swift said: “We have no indication that our network and
core messaging services have
been compromised.”
Sri Lankan authorities arrested two people suspected in
the theft, Taiwanese state media reported last week, with
one of the individuals caught
after trying to withdraw the
equivalent of about $520,000.
A representative from the Far
Eastern International Bank
didn’t respond to a request to
comment.
The BAE researchers said
they found clues implicating
Lazarus in the Taiwanese
breach. Among them was the
use of accounts in Sri Lanka
and Cambodia as destinations
for the stolen funds, as well
as the use of malware previously used in Lazarus attacks
on banks in Poland and Mexico.
While the group has succeeded in penetrating financial
institutions, it still has trouble
making off with its plunder,
the BAE researchers said.
They said payments are often quickly reversed after they
are uncovered.
SPRINT
Continued from page B1
have come from his $100 billion Vision Fund, a massive
private-equity arm backed by
partners that include Apple
Inc. and Saudi Arabia’s sovereign-wealth fund. It was unclear whether the latest U.S.
tower investment will come
from that fund or from the
Japanese telecom company.
The investment could put
pressure on the few companies that own most U.S. cell
towers and the land beneath
them. American Tower Corp.,
Crown Castle International
Corp. and SBA Communications Corp. have enjoyed
strong returns over the past
decade by renting their structures to wireless companies,
serving as suppliers to a sector that spends billions of dollars a year on capital improvements.
The market already has the
makings of a free-for-all as
new entrants lay the groundwork for miniaturized cell radios that can be installed on
streetlamps, traffic signals
DANIEL ACKER/BLOOMBERG NEWS
BY DAN STRUMPF
Sprint plans to shift its leases for rooftop transmitters and other sites to the new joint venture.
and the like. These small cells
allow some carriers and fiberoptic cable owners to compete
with tower operators, though
many, including Sprint, are
struggling with local resistance.
Shares of Sprint, now the
No. 4 carrier by subscribers,
have barely appreciated over
the past five years. Mr. Son,
who is also Sprint’s chairman,
has privately complained that
limits on where carriers can
install their gear has made it
harder for the company to invest in the infrastructure it
needs, according to people familiar with his thinking.
—Ryan Knutson contributed
to this article.
THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | B5
NY
* *
TECHNOLOGY
WSJ.com/Tech
Head of
Facebook’s
Hardware
Lab Resigns
The head of Facebook Inc.’s
cutting-edge hardware lab,
Building 8, is stepping down
after a year and a half.
Regina Dugan, formerly a
Pentagon research chief and
top executive at Alphabet
Inc.’s Google, will leave Facebook in early 2018 “to focus
on building and leading a new
endeavor,” she announced on
Tuesday in a Facebook post.
Ms. Dugan has been in charge
of Building 8 since the lab’s
creation in April 2016.
Ms. Dugan didn’t mention
her next project.
In her post, she quoted
from John F. Kennedy’s 1961
inaugural address. The speech
urged Americans to find a
common bond despite differences, in hopes that “a beachhead of cooperation may push
back the jungle of suspicion.”
In a separate statement
provided by a Facebook
spokeswoman, Ms. Dugan tied
her departure to the tech industry’s broader reckoning
with the way their products
are used for harm. Facebook,
in particular, has been in the
spotlight since it disclosed last
month that Russian actors
purchased advertisements on
its platform in hopes of stoking divisions before and after
the 2016 U.S. presidential election.
“There is a tidal shift going
on in Silicon Valley, and those
of us in this industry have
greater responsibilities than
ever before,” Ms. Dugan said
in the statement. “The timing
feels right to step away and be
purposeful about what’s next,
thoughtful about new ways to
contribute in times of disruption.”
Building 8 focuses on bleeding-edge ideas, such as technology that can allow people
to type directly from their
brains and “hear” with their
skin.
ANDREW HARRER/BLOOMBERG NEWS
BY DEEPA SEETHARAMAN
Microsoft CEO Satya Nadella casts a shadow on a Washington stage. The company is expanding its offerings of the Surface computer to compete with Apple.
Microsoft Expands Surface Lineup
BY JAY GREENE
storage and memory amounts,
for $100 less. The MacBook
Pro, though, doesn’t have
touch capabilities or a detachable screen like the Surface
Book 2.
The new 15-inch Surface
Book 2, along with an updated
13.5-inch model that starts at
$1,499, can be ordered Nov. 9
and will be available Nov. 16.
The computers are part of
an expanding Surface lineup
that includes the Surface Pro
tablet-laptop hybrid refreshed
in May, the lightweight Surface Laptop introduced the
same month and the 28-inch
touch-screen Surface Studio
PC launched a year ago.
Microsoft is expanding the
Surface portfolio despite the
brand seeing uneven results.
In April, fiscal third-quarter
revenue for the entire Surface
line fell 26% to $831 million,
something Amy Hood, Microsoft’s finance chief at the time,
attributed to stiff price competition as well as a dearth of
new Surface products. Microsoft narrowed those revenue
declines to 2% in the fiscal
fourth quarter.
The overall PC market isn’t
making things any easier. Earlier this month, market-research firm Gartner Inc. reported global PC shipments
slid 3.6% in the third quarter,
the 12th consecutive declining
quarter. The U.S. market saw a
particularly steep 10% drop, in
part because of a “very weak
back-to-school sales season,”
the firm said.
Still, Microsoft sees these
Surface devices as show-
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Even as personal computer
sales slow, Microsoft Corp. is
adding yet another model to
its growing line of Surface
computers.
The software giant on Tuesday announced a new 15-inch
laptop geared toward creative
professionals seeking a powerful device to work with images, video, music, software
design and the resource-guzzling programs they use.
Microsoft’s 15-inch Surface
Book 2 is aimed squarely at
Apple Inc.’s MacBook Pro with
an Intel Core i7 processor, 256
gigabytes of storage and 16 gigabytes of memory, at a starting price of $2,499. Apple offers a 15-inch MacBook Pro
with the same processor, and
cases—premium computers intended to both highlight the
capabilities of its Windows operating system and inspire
high-end designs from the
company’s hardware partners.
In an interview, Terry Myerson, Microsoft’s executive vice
president in charge of Windows, said the new 15-inch
Surface Book 2 is a mobile
workstation that can handle
robust videogames as well as
high-end computing work.
The software giant also began rolling out a new major update to its Windows 10 operating system on Tuesday,
something it now does twice a
year. The latest update includes
a new photo application that
uses artificial intelligence to
suggest animated slideshows
from a user’s media collection,
pulling together snaps of
horses, for example, based on
image recognition technology.
Microsoft is adding new virtual-reality and augmented-reality features to Windows. The
update includes Microsoft’s
Mixed Reality Viewer, software
that lets users see 3-D objects
on their computer screens.
The company’s first virtualreality headsets that connect to
Windows 10 PCs—from Acer
Inc., Dell Inc., HP Inc. and Lenovo Group Ltd.—are available
in stores and online. A VR
headset from a fifth partner,
Samsung Electronics Co., is
available for preorder and will
be in stores Nov. 6.
In May, Microsoft said 500
million devices were running
Windows 10; it declined to update that figure.
ADVERTISEMENT
Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
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THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
BUSINESS NEWS
ADVERTISEMENT
UnitedHealth Group Inc.’s
core insurance and healthservices businesses grew in
its latest quarter, despite a
dent in revenue caused by the
company’s decision to pull
out of most Affordable Care
Act markets.
The results from UnitedHealth come as the market
faces policy changes related to
the ACA. President Donald
Trump last week signed an order seeking to provide lowercost plans in the individual insurance market, and he has
said his administration will
end payments to insurers that
offset subsidies to low-income
Revenue was hit by a
decision to pull out of
most Affordable Care
Act markets.
consumers. And Tuesday, two
senators finalized the contours
of a bipartisan deal to shore
up ACA health-insurance markets, though it’s not yet clear
that a bill can pass Congress.
Guiding the nation’s largest
health insurer through the shifting landscape is David Wichmann, the former UnitedHealth
president who took the reins as
chief executive Sept. 1. Former
CEO Stephen Hemsley now
serves as executive chairman.
During a call with analysts,
Mr. Wichmann said UnitedHealth has “a great deal of experience in the areas covered”
in the president’s executive order, which are short-term health
policies, association plans and
health-reimbursement arrangements. UnitedHealth said it has
around 300,000 people currently enrolled in association
plans and the “performance is
strong.” The insurer also said it
was seeing an “incredible increase in the growth” of shortterm plans before the Obama
administration capped their duration at three months, and the
company would be “excited” to
see the Trump administration
expand the length again, as the
executive order suggested.
Mr. Wichmann also said he
expects “any impact to be extremely small” related to the
Trump administration’s move
to end the cost-sharing reduction payments to insurers.
Shares were up 5.5% at
$203.89. They are up 27% year
to date.
UnitedHealth also said
Tuesday it expects 2017 earnings on an adjusted per-share
basis to “approach” $10, up
from its prior forecast of $9.75
to $9.90.
For 2018, Mr. Wichmann
said that earnings could be affected by an ACA tax on health
plans that is slated to return
next year after being suspended. If the tax isn’t reinstated, Mr. Wichmann said
UnitedHealth earnings next
year will likely grow in the
13%-to-16% range. If the tax
does return next year, the impact on earnings-per-share
growth would be roughly 75
cents, the company said. Overall, the CEO said that UnitedHealth expects adjusted pershare earnings for next year
“within a typically sized range,
with the top side of that
range” in line with analysts’
current consensus estimates.
UnitedHealth has grown in
recent months after it bought
Surgical Care Affiliates Inc. and
confirmed last month it was exploring the purchase of Banmédica, a health-care company
in Chile, in what analysts estimate could be a $2.8 billion deal.
The Advisory Board Co. recently said it was selling its
health-care business to Optum,
UnitedHealth’s health-services
business, in a deal that is expected to close at the end of
this year or early next year.
Overall, UnitedHealth reported adjusted net earnings
of $2.6 billion, or $2.66 per
share, compared with $2.1 billion this time last year. Analysts were predicting $2.56
per share. Revenue rose 8.7%
to $50.3 billion, but consolidated revenue took a $1.6 billion-dollar hit from ACA-related factors, including the
withdrawal from markets.
The Mart
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ANNOUNCEMENTS
!" #$
% BUSINESS OPPORTUNITIES
CEO Is Optimistic
After Service Snags
CSX Corp. Chief Executive
Hunter Harrison said the railway
expects to win back any market
share lost during the summer and
sought to reassure investors that
service problems were resolved.
Speaking Tuesday on the
company’s third-quarter earnings
call, Mr. Harrison once again
blamed poor execution of his socalled precision scheduled railroading plan for congestion, delays and erratic service in July
and August. Customers scrambled to ship goods by truck and,
where possible, a competing railroad to keep orders flowing and
factories running. Mr. Harrison
said that any lost business
should shift back “immediately”
once the service is sorted out.
“This is about who’s got the
best product, who’s got the lowest price,” Mr. Harrison said. “We
think we’re going to be there.”
Service problems hit industries including producers of
chemicals and coals, auto makers and food companies, and culminated in a hearing before federal railroad regulators last week.
They also softened thirdquarter results, as revenue rose
just 1% in the period as pricing
rose 3.5% on a slight increase in
volume. Earnings rose to $459
million, or 51 cents a share,
matching the average forecast
by analysts.
—Paul Ziobro
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Malaysia Airlines Bhd. Chief
Executive Peter Bellew said
Tuesday he is leaving the company, in a surprise resignation
that could upset the Southeast
Asian carrier that lost two jets
that killed hundreds in 2014.
Mr. Bellew, who was promoted to what he described as
the “toughest job in aviation” in
July last year after his boss
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Christoph Mueller abruptly quit,
wasn’t available for a comment.
Mr. Bellew is returning to
Ryanair Holdings PLC as chief
operations officer. In a statement by the Irish discount carrier, Mr. Bellew said he was “excited to return home.” Before
joining Malaysia Airlines, he was
involved in a senior operations
role at Ryanair.
The announcement caught
Malaysia Airlines by surprise. The
airline said it “takes note of the
unexpected announcement” by
Ryanair, adding that Mr. Bellew
had “expressed his commitment”
to Malaysia Airlines last month.
Malaysia Airlines, which said
its turnaround remains “on track
and on schedule,” has made
some progress after it was taken
private by its main shareholder—
Malaysia’s sovereign-wealth fund
Khazanah Nasional Bhd.
Malaysia Airlines is associated with two of aviation’s
worst disasters. In March 2014,
Flight 370 disappeared en route
from Kuala Lumpur to Beijing,
with 239 people on board a Boeing 777. Four months later, another Malaysia Airlines Boeing
777 was shot down over
Ukraine, killing 298 people.
—Gaurav Raghuvanshi
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B8 | Wednesday, October 18, 2017
* ***
THE WALL STREET JOURNAL.
THE PROPERTY REPORT
Amazon Locks Up Delivery Deal
Online firm signs pacts
with apartment
landlords to install
lockers in buildings
Amazon.com Inc. is taking
over the package rooms of
some of the country’s largest
apartment landlords, in a
move that could help consolidate its control over how
goods make it from the warehouse floor to the front door.
Amazon has signed contracts with apartment owners
and managers representing
more than 850,000 units
across the U.S. to begin installing Amazon locker systems in their buildings, according to the landlords.
Amazon has commitments to
install the lockers in thousands of properties, many before the peak holiday shopping
season, according to a person
familiar with the matter.
Several of the nation’s largest operators, AvalonBay
Communities Inc., Equity
Residential, Greystar and
Bozzuto Group, have signed
up, company executives said.
For several years, landlords
have struggled with how to
manage the mountains of
packages they receive each
day. Staff at larger buildings
end up devoting several hours
a day sorting mail, while boxes
are piled in every spare
cranny. Most say it is the single largest problem they face.
Amazon’s move, if successful, is likely to shift how the
biggest apartment operators
deal with packages toward a
fully automated system that
residents will be able to access
24 hours a day.
BOZZUTO GROUP
BY LAURA KUSISTO
Amazon’s newly installed locker storage units at a Bozzuto apartment building in Shady Grove, Md.
The locker program, dubbed
Hub by Amazon, will accept
packages from all carriers and
not just for purchases made
on Amazon. They will be open
only to residents, not the
wider community. Residents
will receive a notification
when they have a package and
a code allowing them to open
one of the slots.
Apartment owners pay
about $10,000 to $20,000 to
purchase the lockers initially
and don’t pay a monthly fee.
Most landlords said they don’t
plan to charge residents initially but to offer it as an amenity. They could also make
back some of that cost in savings on staff labor.
Greystar, the largest apartment manager in the U.S. with
more than 415,000 units, has
commitments to install the
Hub system in 125 communities over the next several
months. Next year it plans to
offer the locker system to all
buildings that Greystar owns
or manages, said Gardner
Rees, senior managing director of Advantage Solutions for
Greystar.
Karen Hollinger, vice president of corporate initiatives at
AvalonBay, which has an ownership interest in about
80,000 apartments, said the
average apartment community
in the company’s portfolio receives some 1,000 packages a
month, up from 650 a year
ago. She said AvalonBay has
seen a 20% to 30% annual increase in the volume of packages it receives for the past
four years.
Ms. Hollinger said the company has experimented with
using other locker systems but
will install only Amazon systems. AvalonBay started installing the lockers about a
month ago. It plans to install
the lockers in 30 communities
this year and at least 70 more
in 2018 if that goes well.
Toby Bozzuto, chief executive at Bozzuto Group of
Greenbelt, Md., which manages roughly 68,000 apartment units, said staff at one of
his apartment complexes
spend about three hours each
day sorting packages, which
are cluttering up his buildings.
“I think about how much
money I spend on my amenity
spaces and all of a sudden we
were in a situation pre-Amazon hub where we had boxes
stacking up,” he said. Bozzuto
is in the process of installing
the lockers in four buildings.
Amazon has been searching
for ways to make deliveries
cheaper. It has recruited a
fleet of citizen drivers via its
Flex program, which allows
people to drop off packages
PLOTS & PLOYS
MOODY’S
from their cars. It has developed its own air and cargo
networks, too.
The most expensive leg of
any delivery is known as the
last mile: getting a package to
the doorstep. Amazon already
has added lockers throughout
the U.S., including an announcement that it is rolling
them out at its newly acquired
Whole Foods stores.
For Amazon, or any package carrier, it is all about density. The more places a driver
has to stop and drop off a
package, the more expensive
the process. It also increases
the likelihood of a stolen order
if it is dropped off unsupervised.
Delivering a load of packages in one spot, like a locker
or apartment office, is a huge
cost saver. And as apartment
managers become frustrated
with more deliveries, lockers
become more attractive.
One issue for landlords has
been that it is challenging to
update lockers as demand increases
and
technology
changes. Amazon will make
lockers that can be placed
both indoors and outdoors,
making it easier for landlords
to add lockers if the volume of
packages that residents order
exceeds the space they have in
mailrooms. The lockers will
also have cellular connectivity
so apartment owners don’t
have to worry about connecting an Ethernet cable.
Several other startups have
sprouted up in recent years
that sell or rent locker systems to landlords.
Owners said Amazon is offering its lockers at about half
of the cost some other companies had been charging.
—Laura Stevens
contributed to this article.
Analytics Unit Buys
Stake in Tech Startup
A unit of Moody’s Corp. acquired a minority stake in CompStak Inc., a real-estate technology startup that collects
detailed information on commercial property leases and sales
through crowdsourcing.
Moody’s Analytics plans to
use CompStak’s data to help
banks, insurance companies, asset managers and other clients
measure and manage risk. For
example, Moody’s will combine
CompStak’s lease data with historical default and macroeconomic data to help predict
whether particular loans may
run into trouble, said Keith
Berry, who is responsible for
Moody’s Analytics’ emergingbusiness unit.
—Peter Grant
HARRIMAN CAPITAL
Firm to Invest
In Co-Living Projects
A fledgling private-equity firm
is planning to invest $15 million
in developing four residential
properties as “co-living” buildings
that rent out individual rooms
rather than entire apartments.
Harriman Capital Inc. cut a
management deal with Common
Living Inc., a two-year-old
startup. Common has over 450
rooms under management in
New York, San Francisco, Chicago and Washington, D.C., and
is planning to expand into the
Los Angeles area.
The four properties in the Los
Angeles and New York regions
are a combination of vacant land
and buildings. Harriman hopes to
open the first of the four in New
York in the fall of 2018.
—Peter Grant
The U.S. has far too many
malls trying to attract consumers as online shopping is
tightening its grip.
That doesn’t mean middling
malls will die quickly, however.
Projections for hundreds of
shopping centers to close in
the next five years could prove
too pessimistic. A more likely
outcome, analysts said: Many
weaker malls will turn into
zombies, staying open for
years as they cycle through
less successful retailers before
finally being repurposed or
leveled.
“It takes a very long time to
transition these malls,” said
Thomas Dobrowski, executive
managing director of capital
markets at real-estate services
firm Newmark Knight Frank.
“They don’t die of heart attacks.”
Part of the reason for weak
malls’ persistence lies in contracts signed years or decades
ago. Landlords typically strike
leases of 10 or 20 years with
multiple tenants, making
speedy exits difficult. In some
cases, lease buyouts can be negotiated, but the process can
be expensive and lengthy.
Owners hoping to close
malls and redevelop them for
other uses might also run into
regulatory hurdles. Getting
buy-in from the community
takes time, and rezoning approvals might not happen, especially in areas where sales
tax revenue makes up a big
chunk of the local government’s budget.
Of the 41 malls Mr. Dobrowski has helped to sell
since 2012, most of which
were distressed sales, only
one, Granite Run Mall in Media, Pa., has been closed and
redeveloped. The others are
still operating as malls.
The two-story Granite Run
Mall was foreclosed on in 2010
after struggling with vacancies. It was sold in 2013 to
BET Investments, which is redeveloping the site into a
mixed-use property with openair retail, entertainment and
roughly 400 apartments. The
demolition started in 2016 as
the firm waited for leases to
expire and for government approvals for the redevelopment.
“You can’t just tear it down
while tenants are in there,”
said Bruce Toll, principal at
BET Investments and a cofounder of home builder Toll
Brothers Inc.
Roughly 200 malls have
closed since 2007, according
to Newmark Knight Frank. But
the amount of square feet of
retail space has increased 10%
over the period, according to
data from CoStar Group Inc.
Part of that is due to the continued development of mixeduse centers in urban markets,
but the steady growth in supply is also partly due to the
slow pace of demolishing or
transforming struggling malls
for other uses.
From 2007 to 2016, at least
275 enclosed malls, strip malls
and open-air shopping centers
were foreclosed on after the
owners ran into difficulties repaying securitized mortgage
loans, according to data from
Trepp LLC. Most of the properties live on as retail entities,
with some adding medical
clinics, tax and insurance offices, and gyms to the tenant
mix.
After foreclosure, distressed retail assets are sometimes sold at rock-bottom
prices. Some owners do minimal work on the newly acquired shopping centers because operating them at high
vacancy rates might still be
profitable given lower property taxes and reduced maintenance bills.
Other landlords might be
compelled to improve properties, buying out leases from
tenants that have fallen out of
favor and renovating the vacated space.
Some retailers or restaurant owners on the fence of
whether to stay open might be
persuaded to remain even if
vacancy rates go up during the
renovation period.
“If you buy these assets
dramatically below replacement costs and become one of
the lowest cost providers of
real estate within a region,
you can repurpose these shopping centers for alternative
uses,” said Andy Weiner, president at Houston-based realestate investment firm RockStep Capital, which invests in
shopping centers in small
towns alongside local businesses.
The Hudson Yards development in Manhattan under construction in June. Most of the debt and equity capital sources are from overseas.
Global Investors Bullish on New York
BY PETER GRANT
Architect A. Eugene Kohn
recalls touring a windswept
rail yard on Manhattan’s far
west side in 2005 and being
doubtful about its potential
for commercial development.
“Who in the world would
want to live over here or work
over here,” Mr. Kohn, whose
firm went on to become the
master planner of the site, recalled thinking at the time.
“Who is going to put the
money up?”
Last month, lead developer
Related Cos. took another big
step toward answering those
questions by announcing it
had completed the $3.8 billion
financing of 50 Hudson Yards,
what will be the development’s biggest tower.
The deal increased to $18
billion the total amount of equity and debt raised for the
first seven buildings in the
project, the first phase of
which spans several blocks
from West 30th to West 34th
streets between 10th and 11th
avenues.
The anchor tenant for 50
Hudson Yards, asset manager
BlackRock Inc., is the latest
blue-chip firm to agree to
move to the 28-acre development.
Meanwhile, the capital
sources for the development
that is rising like a new Manhattan mountain range reads
RELATED-OXFORD
BY ESTHER FUNG
PETER FOLEY FOR THE WALL STREET JOURNAL
Some Malls Manage
To Stay Alive After
Years of Ill Health
A rendering of 50 Hudson Yards, the project’s tallest tower.
like a who’s-who list of bigname global financial institutions.
The roster speaks volumes
about the sources of capital
for megaprojects at what
seems to be a late stage in a
lengthy bull market in commercial real estate.
For starters, most of the
debt and equity capital
sources are from overseas.
U.S. banks Wells Fargo & Co.
and Bank of America Corp.
were the lead banks on the
construction financing for two
of the seven buildings in the
first phase of development.
But foreign lenders from 11
countries have provided the
bulk of the debt. The list includes Deutsche Bank AG,
Bank of China Ltd., HSBC
Holdings PLC, Credit Agricole
SA and Children’s Investment
Fund of the U.K.
U.S. banks have been more
wary than foreign institutions
of construction financing since
the 2008 financial crisis.
“With all the regulatory burdens on U.S. banks these days,
they are very cautious about
having too much commercial
real estate exposure,” said Jeff
Blau, Related’s chief executive.
Foreign banks held $71.6
billion in loans backed by U.S.
commercial real estate at the
end of the second quarter of
this year, according to debt
tracker Trepp LLC. That is up
from $59.3 billion at the same
time in 2016 and $38.3 billion
in the second quarter of 2015,
Trepp said.
Much of the equity capital
for Hudson Yards also is com-
ing from foreign investors,
with the exception mostly of
Related and some of the project’s tenants that have bought
their spaces, like Time Warner Inc. and KKR & Co. For example, Related’s main partner
on the project is Oxford Properties Group, the real estate
investor for OMERS, one of
Canada’s largest municipal
pension plans.
The other equity investor in
50 Hudson Yards is the U.S.
unit of Mitsui Fudosan Co.,
one of Japan’s largest real estate companies. Mitsui also
provided the lion’s share of
the equity for 55 Hudson
Yards, an office tower under
development where tenants
will include hedge fund Third
Point LLC and law firm Cooley LLP.
The lopsided participation
of foreign investors partly reflects the appeal of the U.S. as
a haven for investments and of
construction projects as a
source of higher yield in a
low-interest-rate world. Some
major financial institutions,
like Oxford, have been active
investors globally because
their home markets are too
small to provide enough opportunity.
“You can very quickly grow
out of Canada,” said Blake
Hutcheson, Oxford Properties
Group’s chief executive. “Most
of our growth has been in foreign markets.”
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.
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THE WALL STREET JOURNAL.
B10 | Wednesday, October 18, 2017
MANAGEMENT
These Firms Pay You to Learn Your Job
Corporate boot camps, lasting six weeks to a nearly a year, are aimed at younger hires
BY KELSEY GEE
BY VANESSA FUHRMANS
T.J. KIRKPATRICK FOR THE WALL STREET JOURNAL
A handful of companies
are building corporate finishing schools to attract and
keep the skilled workers
they need.
Capital One Financial
Corp., software firm SAP SE
and kidney-health provider
DaVita Inc. are among the
companies hiring workers to
attend boot-camp-style
training courses where they
learn the coding, patient
care or communication skills
they will need on the job.
Workers are paid during the
stints, which can last from
six weeks to nearly a year,
after which they start fulltime as a software developer,
project manager or nurse.
For companies, the programs solve a problem similar to the “last mile” hurdle
in supply chains, in which
getting goods over the final
mile to their destination can
be the costliest and trickiest
segment of the journey.
Employers’ last-mile programs help companies get
workers with the right attitudes and attributes fully
ready for the job. Plus, employers say it allows them to
recruit from a broader group
of potential hires by dropping lengthy experience requirements in favor of sharpening young talent in-house.
Companies also reason
that the academies, which
have emerged over the past
five years, are less expensive
than hiring more-experienced workers who don’t
end up being a good fit for
the role. One of the programs pays slightly more
than minimum wage during
the training period.
Learning how to do your
first job is like learning how
to drive a car, said Dave Hoerman, chief wisdom officer at
DaVita. While nursing school
When
The Good
Goes Bad
For CEOs
Capital One engineers and other employees lead courses on cloud computing and app development at an academy in Virginia.
equips entry-level clinicians
with technical expertise, the
company’s training program
gives new hires the confidence and context to do their
jobs well, he said.
In July, Capital One
opened a developer academy
for 60 new-graduate hires
who will spend six months in
bank-owned classrooms
learning programming skills
and business processes. Capital One engineers and other
employees lead courses on
cloud computing and app development. Academy hires
are also assigned a company
mentor to help them understand the firm’s culture and
provide on-the-job advice.
Capital One doesn’t ask
academy recruits to commit
to a set period of time, but
Devin Lipawsky, the firm’s
leader of technology talent,
said that young employees
will be motivated to stay
with a company that has invested in them.
Diego Jimenez, 25 years
old, said he joined the Capital One academy to step up
into a software-engineering
role. Mr. Jimenez graduated
from the University of California, Santa Cruz with a degree in technology and information management, but
said employers were hesitant
to hire him without a computer science degree.
The daily lectures, coding
labs and team projects allow
him to apply lessons to company problems, he said.
U.S. employers’ spending
on training has increased
during the past several
years, reaching a high of
$1,252 per employee in
2015, according to the latest
data from the Association
for Talent Development,
from $1,229 the year before.
Many employers skimp on
training for entry-level
workers, said Peter Cappelli,
a management professor at
University of Pennsylvania’s
Wharton School.
New talent-development
agencies such as Revature
LLC and MemoryBlue have
set up their own paid boot
camps in recent years, hoping to tap those corporate
dollars. Revature hires new
college grads who make from
$8 to $15 per hour while taking classes in programming
languages and software platforms that client companies
like Accenture PLC and Wall
Street regulator Finra demand. MemoryBlue uses a
similar model to train workers to become sales consul-
tants for partner firms in the
tech industry.
Dialysis provider DaVita
in 2014 began a program
paying newly minted registered and licensed practical
nurses to learn clinical skills.
More than 6,000 clinicians
are trained each year, reducing turnover and cutting the
amount of time it takes for
new hires to get up to speed
from 12.7 weeks to 10, a
company spokeswoman said.
Every year, German business-software giant SAP
brings new grads to Silicon
Valley for a nine-month program on how to sell the
firm’s software and services.
More than 20,000 applications have been received so
far this year for the 322 positions in its sales academy,
said Jenny Dearborn, SAP’s
chief learning officer.
CEOs beware: Being a dogooder could get you fired.
Many corporate chieftains
argue companies should be
good corporate citizens. From
Starbucks Corp. Chairman
Howard Schultz to Unilever
PLC Chief Executive Paul Polman, leaders variously promote efforts to reduce company carbon footprints, work
with sustainable suppliers, and
produce healthier products.
“My personal mission is to
galvanize our company to be
an effective force for good,”
Mr. Polman says on his
LinkedIn page.
But a new study shows that
socially responsible initiatives
can be a double-edged sword
for CEOs, helping to shield
them from being ousted during more prosperous times but
increasing the likelihood they
would be fired in bad times.
Examining the exits of Fortune 500 company bosses over
several years, researchers
found that those who heavily
invested company resources in
good corporate citizenry were
84% more likely to be fired
amid sluggish financial results
than CEOs at poor-performing
companies that spent less on
do-good initiatives.
On the flip side, spending
on corporate social responsibility acted as a protective
buffer for company chiefs who
presided over robust profitability. They were 53% less
likely to be ousted than other
leaders of high-performing
companies that didn’t invest
so much in measures to bolster social welfare, according
to the study, published in the
November issue of Strategic
Management Journal.
ADVERTISEMENT
Business Real Estate & Services
To advertise: 800-366-3975 or WSJ.com/classifieds
,-., /01
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | B11
* *
BUSINESS NEWS
Officers Fired Over
Forced Removal of
United Passenger
Riders at a Harley-Davidson festival this year. The company aims to lift sales by training new riders and expanding its motorcycles’ appeal.
Harley’s Sales Continue to Slide
BY ANDREW TANGEL
Harley-Davidson Inc. said
retail sales continued to slide
in the third quarter, highlighting the motorcycle maker’s
uphill climb to increase its domestic customer base and
boost overseas sales.
Global retail sales of its
bikes fell 7% in the third quarter and revenue dropped about
10% to $1.2 billion, with executives citing recent natural disasters in the U.S. and Mexico
for part of the decline.
The weak sales came as the
Milwaukee-based company reported forecast-beating profits
and maintained guidance for
shipping 241,000 to 246,000
motorcycles to dealers worldwide in 2017, a drop of 6% to
8% from last year. Harley
pared its guidance in July,
having previously expected
shipments to be flat or slightly
down.
Executives said they were
optimistic about Harley’s latest product lineup and the im-
ich said Harley has trained
more than 51,000 motorcyclists so far this year and
The iconic motorcycle maker continues to struggle.
boosted sales to newly minted
Change from a year earlier in
Quarterly net income
“hog” riders. The company has
global motorcycle sales
3Q 2017 rolled out new leasing deals
2%
$300 million
$68.2 M and a program to pair new
motorcyclists with experi▼40%
enced riders.
250
0
“Training someone doesn’t
necessarily make them a
200
rider,” Mr. Levatich said. “We
–2
have to have a long view of
150
what it actually takes to build
confident, safe, avid riders,
–4
and in my view we’re just get100
ting started.”
–6
Harley’s U.S. motorcycle
3Q 2017
50
sales fell 8.1% to 41,793, while
64,209
its non-U. S. retail sales were
▼7%
–8
0
off 4.6% at 22,416.
2015
’16
’17
2015
’16
’17
World-wide retail motorcyTHE WALL STREET JOURNAL. cle sales fell 7% in the quarter,
Sources: the company; S&P Capital IQ
and executives attributed 2
pact of a weakening U.S. dol- ness to 50% of its total annual percentage points of the delar, as well as progress in volume from around 38%. The cline to hurricanes that batdeveloping new riders.
company is working to expand tered the U.S. They also said
Harley aims to add two mil- its appeal to women, minori- Mexican earthquakes hurt
lion new riders in the U.S. ties, young adults and city sales in that country.
over the coming decade, and dwellers.
Harley shares closed up 2%
increase its international busiChief Executive Matt Levat- Tuesday at $47.52.
Low Gear
Startup Lightspeed Raises
$160 Million in New Funding
BY DAVID GEORGE-COSH
TORONTO—Lightspeed
POS Inc., whose technology
provides point-of-sale, cloudbased services for retailers,
has raised about 200 million Canadian dollars (US$160
million) in a new round of
venture-capital funding, one
of the biggest investments for
a Canadian startup, according
to people familiar with the
matter.
The people said the financing will give Lightspeed a valuation near C$1 billion, placing it close to a rare breed: a
billion-dollar tech startup in
Canada.
The investment could also
put it on track to file an IPO
within the next two years, one
of the people said.
Lightspeed plans to use the
new funds to pay off earlier
investors, while adding cash to
its treasury for growth, the
person added.
New financing gives
the startup a
valuation near C$1
billion.
A Lightspeed spokesman
declined to comment on the financing round.
The Montreal-based company’s mobile point-of-sale
and commerce software platform is used by more than
45,000 retailers in more than
100 countries to help manage
inventory, provide sales analytics and assist with customer
relations, according to its
website.
The software processes
more than $15 billion in transactions annually, the company
said on its website. Lightspeed
has about 600 employees in
eight offices around the world,
including Europe and Australia.
The investment round was
led by Caisse de dépôt &
placement du Québec, Canada’s second-biggest pension
fund by net assets, while Investissement Québec, iNovia
Capital and Silicon Valley Bank
also participated in the financing, according to people familiar with the deal. The Caisse
de dépôt, iNovia and Inves-
tissement Québec are current
investors in the company, according to its website.
The latest financing round
is the second-biggest venture capital investment for a
Canadian company, behind
BlueRock Therapeutics LP, and
the largest such investment
for a technology-based company, according to Dow Jones
VentureSource.
Lightspeed has previously
raised a total of $126 million
over three rounds of financing
since it was founded in 2005.
Lightspeed’s investment is
also likely to push Canada’s
total venture-capital investment to a record this year, after reaching an all-time
high of C$3.7 billion in 571
deals in 2016, according to
Thomson Reuters. Canadian
startups have received a total
of C$3.1 billion in the first six
months of the year in 330
deals.
Chicago’s aviation department fired two airport police
officers involved in the removal of a passenger from a
United Airlines flight in April,
city officials said Tuesday.
An aviation security officer
who “improperly escalated the
incident” involving Kentucky
physician David Dao at O’Hare
International Airport was
fired, as was a sergeant involved in the filing of misleading reports about the case, according to the city inspector
general’s office.
The Chicago Department of
Aviation also suspended two
other aviation officers involved in the incident.
The other two employees
were terminated in August, a
department
spokeswoman
said.
The case sparked a
firestorm of criticism directed
at United, Chicago airport authorities and the state of modern air travel. United has apologized to Dr. Dao for his
treatment during the incident.
An inspector general’s report found the aviation officer
who pulled Dr. Dao from the
plane violated the aviation department’s use-of-force policy
when he “escalated a nonthreatening situation into a
physically violent one by
forcefully removing a passenger from the aircraft.”
In the April 9 incident, Dr.
Dao suffered a concussion,
broken nose and two lost teeth
after he refused to give up his
seat on United Flight 3411. Dr.
Dao later reached a settlement
with the airline. Its terms haven’t been disclosed.
The report said the officer’s
“use of excessive force caused
the passenger to hit his face
on an armrest,” resulting in
his injuries.
“As we have clearly stated,
the department is taking every
action in our power to ensure
that an incident like this
never, ever occurs again,” the
aviation department spokeswoman said.
The aviation department
employees are contesting their
terminations, said the inspector general’s office.
Thomas Demetrio, an attorney for Dr. Dao, said the outcome should serve as a cautionary
tale
for
law
enforcement.
“There is a lesson to be
learned here for police officers
at all levels,” Mr. Demetrio
said. “Do not state something
that is clearly contrary to
video viewed by the world.
But for the video, the filed report stating that only ‘minimal’ force was used would
have been unnoticed.”
—Shibani Mahtani
contributed to this article.
REUTERS
ZUMA PRESS
BY ANDREW TANGEL
A video screengrab of Mr. Dao.
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THE WALL STREET JOURNAL.
B12 | Wednesday, October 18, 2017
BUSINESS NEWS
Volvo Unveils Electric Car
BY TREFOR MOSS
BY WAYNE MA
ASSOCIATED PRESS
SHANGHAI—In a direct
challenge to Tesla Inc., Volvo
Cars unveiled its first highperformance electric-car model
in Shanghai, doubling down on
its commitment to make only
electric or hybrid vehicles
starting in 2019.
Polestar, a new stand-alone
premium electric-vehicle company owned by Volvo, will
bring its first two vehicles to
market that same year, with
Volvo and its Chinese owner
Zhejiang Geely Holding
Group Co. pledging to invest
$755 million to develop the
company.
Polestar will build its cars
at a new plant in the western
Chinese city of Chengdu,
which already hosts a Volvo
factory.
“We want to be leaders in
electrification,” said Volvo
Chief Executive Hakan Samuelsson at the event.
The launch of the first
Polestar marks the latest step
in a global shift toward electric vehicles which, led by
China, is quickly gathering
pace. Last month, the Chinese
government told all auto makers, foreign and domestic, to
start building electric vehicles, or EVs, by 2019, having
also outlined plans to ban
gasoline cars. Beijing is
spending billions of dollars on
subsidies to boost the efforts
of domestic auto makers to
develop EVs.
The Polestar 1 hybrid
coupe, which made its debut
in Shanghai, will go on sale in
the first half of 2019, followed
by the all-electric Polestar 2
later that year.
The second vehicle is designed to go head-to-head with
the Tesla Model 3, said Polestar CEO Thomas Ingenlath,
throwing down the gauntlet to
the California-based pioneer of
Wanda’s Main Man
In Hollywood Exits
After Stir Over Deal
Event attendees looking at Volvo’s Polestar 1 electric car during its unveiling in Shanghai on Tuesday.
premium EVs.
China accounts for a fifth of
Volvo’s sales and Polestar has
the same target there, Mr.
Samuelsson said, with Europe
and the U.S. also key markets
for the new brand.
Tesla is the leading maker
of premium electric vehicles,
but the broader automotive industry is taking aim at the Silicon Valley upstart. In addition
to Volvo’s Polestar, the big
German auto makers Mercedes-Benz, BMW AG, Audi
AG, and Porsche are planning
to launch dozens of new highend electric vehicles and hybrids in the next few years.
Maserati, Jaguar, Bentley and
other luxury brands are also
getting in on the act.
But targeting high-end EV
sales is risky, especially in
China, some analysts say.
While China is the world’s biggest EV market, demand for
upscale electric cars will be
weak for several years, with
most auto makers launching
bargain vehicles designed to
fulfill the government’s production quota. Tesla—which
exports cars to China in low
volumes—won’t start selling
locally assembled cars before
the early 2020s and has yet to
announce firm plans for a
China plant.
“The market for high-end
EVs is still very small,” said
Jing Yang, an associate director at Fitch Ratings.
Mr. Samuelsson dismissed
concerns about premium EV
demand. He said demand for
premium cars is strong and
growing in China, claiming
Geely ownership would give
the company an edge.
“This is our second home,”
Mr. Samuelsson said. “We are
the only [foreign auto] company that really has control
over business” in China thanks
to Volvo’s autonomy within
the Geely group, he said, comparing Volvo with other foreign car makers that must operate through local joint
ventures.
Polestar is the latest sign of
Geely and Volvo’s determination to be at the forefront of
the auto industry’s transformation. “Electrification and
new energy is the focus of the
wider Zhejiang Geely Holding
Group,” a Geely spokesman
said.
The Hangzhou-based company has emerged as China’s
leading privately owned Chinese auto maker by sales, with
Geely Auto selling over
827,000 cars in the first nine
months of 2017, up 80% from
the year-earlier period.
Geely’s stable of brands is
also growing fast. Last year it
opened Yuan Cheng, a domestic commercial-vehicle maker,
before acquiring a controlling
stake in Malaysia’s Proton and
taking over Lotus Cars in May.
Lynk & Co., a new brand targeting young people, goes on
sale in China next month.
—William Boston in Berlin
contributed to this article.
BEIJING—Dalian Wanda
Group’s frontman in Hollywood
resigned, further clouding the
Chinese company’s future in
the global entertainment business.
The executive, 59-year-old
Jack Gao, oversaw Wanda’s international investments as a
senior vice president. He also
served as interim chief executive of Hollywood production
company Legendary Entertainment following the resignation
of co-founder Thomas Tull in
January.
Wanda’s 2016 acquisition of
Legendary for $3.5 billion,
which Mr. Gao helped to engineer, was one of six foreign
acquisitions that came under
fire by Chinese regulators
seeking to limit capital outflows.
That clampdown led Wanda
to retrench its ambitions to
become a major player in international entertainment and
was a factor in Mr. Gao’s departure, according to people
familiar with the matter.
Mr. Gao was among a relatively small group of Wanda
executives who could straddle
the line between Hollywood
and China. A naturalized U.S.
citizen who grew up in China
and attended the University of
California, Los Angeles, he
previously led China operations for Microsoft Corp. and
later News Corp, which owns
The Wall Street Journal.
“He’s a pretty rare person,
and there are very few that
have his grounding in China
and in Hollywood,” said Rob
Cain, a Los Angeles-based film
producer and entertainment
industry consultant to Holly-
wood studios operating in
China. “It’s another indication
of the symptom of the Chinese
crackdown on foreign investment and entertainment overseas.”
Mr. Gao, whose resignation
was earlier reported by the
Hollywood Reporter, couldn’t
be reached to comment.
Mr. Gao often represented
Wanda at entertainment-industry events and served on
the boards of companies it acquired—including Legendary,
U.S. theater chain AMC Entertainment Holdings Inc., U.K.
yacht maker Sunseeker International Ltd. and World Tri-
Jack Gao helped
engineer the purchase
of Legendary, which
Beijing criticized.
athlon Corp., owner of the
Ironman brand and races.
Zeng Maojun, also known
as John Zeng, will take Mr.
Gao’s place as interim CEO of
Legendary.
Messrs. Gao and Zeng were
rivals inside Wanda, according
to the people familiar with the
matter. Earlier this year, Mr.
Zeng became head of Wanda
Film Holding Co., which includes theater chain and
movie-production businesses
in China.
Last month, it was Mr.
Zeng, not Mr. Gao, who privately met with Hollywood executives to assure them that
Wanda was still committed to
Hollywood, the Journal has reported.
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BANKRUPTCIES
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THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | B13
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
22997.44 s 40.48, or 0.18%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 20.98 20.11
P/E estimate *
19.39 17.46
Dividend yield
2.23
2.59
All-time high 22997.44, 10/17/17
Nasdaq Composite Index
Last
2559.36 s 1.72, or 0.07%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.55 24.33
P/E estimate *
19.39 18.12
Dividend yield
1.95
2.15
All-time high: 2559.36, 10/17/17
Last Year ago
6623.66 t 0.35, or 0.01%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.19
24.15
P/E estimate *
21.15
19.55
Dividend yield
1.10
1.22
All-time high: 6624.00, 10/16/17
Current divisor 0.14523396877348
Session high
UP
Close
t
DOWN
Session open
2560
6600
22600
2530
6500
22200
2500
6400
21800
2470
6300
21400
2440
Open
t
Close
23000
Session low
65-day moving average
65-day moving average
6200
65-day moving average
21000
6100
2410
Bars measure the point change from session's open
20600
July
Aug.
Sept.
6000
2380
Oct.
July
Aug.
Sept.
July
Oct.
Aug.
Sept.
Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
23002.20 22948.23 22997.44
9876.04
9799.68
742.44
733.30
740.57
5.66
26537.92 26491.54 26530.34
686.95
683.44
684.08
4.88
-2.29
Nasdaq Stock Market
Nasdaq Composite
6628.60
Nasdaq 100
6122.82
0.18
40.48
-0.33
9824.14 -33.01
6613.21
6103.66
6623.66
6122.61
0.77
0.02
-0.33
-0.01
-0.35
8.08
Standard & Poor's
500 Index
2559.71
2554.69
2559.36
1.72
MidCap 400
SmallCap 600
1821.50
910.45
1814.63
903.94
1816.34
905.20
-3.12
-2.94
Other Indexes
Russell 2000
1505.80
1495.90
1497.50
12357.64 12332.25 12349.98
0.13
0.07
16.4
7967.02
22.7
8.6
6.4
754.80
625.44
12.1
12.3
9.6
26530.34 21514.15
687.05
521.59
19.9
26.4
14.0
13.7
10.6
11.3
6624.00
6122.61
5046.37
4660.46
26.3
26.5
12.0
23.0
25.9
15.9
17.1
2085.18
19.6
14.3
10.7
-0.32
1819.96
918.72
1476.68
703.64
18.9
22.8
9.4
8.0
11.2
13.2
-5.18
-0.34
1512.09
1156.89
23.0
10.3
11.4
-0.17
-9.54
-0.08
541.32
541.93
-0.66
-0.12
NYSE Arca Biotech
4315.94
4270.61
4298.53
25.59
NYSE Arca Pharma
Value Line
26.6
10038.13
2559.36
543.09
NYSE Composite
22997.44 17888.28
12362.06 10289.35
0.60
0.81
16.9
11.7
6.4
545.78
455.65
14.5
7.1
5.5
4304.77
2834.14
40.3
39.8
12.5
557.94
550.85
556.65
4.48
556.65
463.78
12.0
15.6
3.9
KBW Bank
99.87
98.68
-0.72
-0.72
100.76
71.83
37.5
7.6
PHLX§ Gold/Silver
98.79
13.9
85.88
84.78
85.76
-0.38
-0.44
96.72
73.03
0.5
8.7
3.6
-0.72
117.79
-16.6
802.88 50.2
9.19 -32.5
PHLX§ Oil Service
PHLX§ Semiconductor
CBOE Volatility
138.73
136.33
137.32
-0.99
1225.01
10.46
1218.38
9.78
1224.12
10.31
-0.87
0.40
192.66
-0.07
Philadelphia Stock Exchange
1224.99
22.51
4.04
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Volume, Advancers, Decliners
Region/Country Index
Close
Most-active issues in late trading
Volume
(000)
Last
iShares MSCI Emg Markets EEM
5,001.0
46.38
GE
General Electric
VanEck Vectors Gold Miner GDX
4,297.2
3,411.9
Company
Symbol
Net chg
After Hours
% chg
High
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
617.01
Sao Paulo Bovespa 76201.25
S&P/TSX Comp
15816.90
S&P/BMV IPC
50140.52
Santiago IPSA
4162.25
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
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5889.60
Shanghai Composite 3372.04
Hang Seng
28697.49
S&P BSE Sensex
32609.16
Nikkei Stock Avg
21336.12
Straits Times
3329.03
Kospi
2484.37
Weighted
10723.15
-0.02
46.50
46.38
23.19
…
unch.
25.08
23.07
23.35
-0.07
-0.30
23.43
23.25
4.68
4.55
GLUU
3,014.2
4.62
-0.01
-0.22
SPDR S&P 500
SPY
2,884.4 255.40
-0.07
-0.03 255.48 255.18
Cnsmr Staples Sel Sector XLP
2,543.1
54.39
…
unch.
54.39
54.34
Ford Motor
2,100.4
12.23
-0.04
-0.33
12.28
11.96
2,019.7
48.40
…
unch.
48.48
48.21
588.2
4.19
0.19
4.75
4.27
4.00
1,855.7 153.46
6.92
4.72 154.33 146.01
F
Verizon Communications VZ
Percentage gainers…
TransEnterix
TRXC
IBM
IBM
Spectrum Pharmaceuticals SPPI
Cloud Peak Energy
14.3
15.00
0.54
3.73
15.00
14.46
6.6
4.49
0.16
3.70
4.49
4.30
21.3 170.99
3.83
2.29 170.99 167.16
CLD
Canadian Pacific Railway CP
...And losers
MobileIron
MOBL
13.7
3.45
-0.35
-9.21
3.80
3.40
Select Comfort
SCSS
152.7
29.30
-1.08
-3.55
30.38
27.68
-25.3 -17.0
MGIC Investment
MTG
23.4
12.70
-0.41
-3.13
13.11
12.70
35.0 28.6
-26.6 -22.3
Criteo ADR
CRTO
10.0
44.66
-1.43
-3.10
46.09
44.66
Cree
CREE
378.8
28.50
-0.84
-2.86
29.49
26.69
–6.98
–0.82
–1.20
Latest
% chg
YTD
% chg
16.7
17.4
20.9
–0.24
–0.21
–0.46
0.01
0.04
–690.59 –0.90
0.09
14.20
0.84
419.51
–0.04
–1.58
14.2
26.5
3.5
9.9
29.1
–0.25
–0.97
–0.02
–0.06
0.20
7.98
–0.03
–1.51
–0.07
–8.64
0.03
0.39
–90.53 –0.40
–0.01
–0.05
–11.62 –1.00
0.35
35.40
–0.14
–0.83
–0.05
–4.73
–0.14
–10.80
8.0
11.6
12.8
10.3
13.2
–1.8
16.1
13.1
–0.5
9.2
9.4
12.8
5.2
390.44
390.94
4068.77
5361.37
12995.06
1443.68
22337.78
546.62
1146.62
10216.80
585.08
9269.86
7516.17
42.80
–6.43
4.69
–24.48
80.56
5.97
4.32
–51.06
0.73
–0.19
–0.08
0.02
0.38
0.18
0.17
–0.47
4.0
8.6
30.4
22.5
11.6
15.6
22.6
15.9
Company
Symbol
Social Reality Cl A
TransEnterix
TerraForm Power
Syntel
DB Base Mtls Double Shrt
SRAX
Benitec Biopharma ADR
GRAVITY ADR
Cloud Peak Energy
Trillium Therapeutics
WW Grainger
BNTC
SORL Auto Parts
Overstock.com
Voyager Therapeutics
HTG Molecular Diagnostics
Tabula Rasa HealthCare
SORL
High
52-Week
Low
% chg
8.95 1.11
5.00 0.45
...
...
26.64 15.82
19.70 7.05
-19.7
112.8
...
-8.3
-39.2
ADOMANI
DB Agriculture Long ETN
Immune Design
TDH Holdings
Inotek Pharmaceuticals
ADOM
2.77 0.44
GRVY
50.08 7.39
CLD
4.33 0.61
TRIL
6.80 0.80
GWW 205.42 23.06
18.88
17.31
16.40
13.33
12.65
5.48 1.30
54.00 4.50
8.04 2.78
15.87 4.15
262.72 155.00
92.4
901.6
-29.5
-55.8
-0.2
Ardelyx
Trevena
Helios Matheson Analy
Yangtze River Development
MannKind
ARDX
5.70
33.80
22.89
2.50
26.84
12.43
11.55
11.50
11.11
10.45
9.74 2.68
35.60 13.05
25.99 8.10
13.25 1.20
28.53 10.39
23.1
127.6
85.8
-4.9
92.7
VirnetX Holding
Badger Meter
Applied DNA Sciences
Vical
Hebron Technology
VHC
TERP
SYNT
BOM
OSTK
VYGR
HTGM
TRHC
0.63
3.50
2.36
0.25
2.54
Most Active Stocks
Company
Symbol
TransEnterix
Neothetics
General Electric
Ford Motor
Bank of America
TRXC
Micron Technology
Finl Select Sector SPDR
iShares MSCI Emg Markets
Cemex ADR
VanEck Vectors Gold Miner
MU
Volume % chg from Latest Session
(000) 65-day avg Close % chg
135,907
61,550
53,898
53,153
47,472
NEOT
GE
F
BAC
39,378
37,140
33,827
33,716
29,362
XLF
EEM
CX
GDX
Selected rates
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
t
3.00
t
2.00
10-year Treasury
note yield
1.00
0.00
N D J FMAM J J A S O
2016 2017
3.75%
Fidelity Bank Trust
Dubuque, IA
3.63%
563-557-2300
Fortune Financial, Inc.
Englewood, CO
3.63%
303-706-0920
Residential Mortgage Services, Inc
3.63%
South Portland, ME
855-999-7014
RockBottom Mortgage LLC
3.63%
Des Plaines, IL
855-219-4661
Tuesday
t
30-year fixed-rate
mortgage
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.36
1.36
Money market, annual yield
0.32
0.32
Five-year CD, annual yield
1.46
1.46
30-year mortgage, fixed†
3.93
3.86
15-year mortgage, fixed†
3.21
3.17
Jumbo mortgages, $424,100-plus† 4.38
4.44
Five-year adj mortgage (ARM)† 3.40
3.54
New-car loan, 48-month
3.07
3.06
HELOC, $30,000
5.25
5.21
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.54
l
2.81
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.36
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.13
-0.10
-0.05
-0.12
0.02
-0.06
-0.20
-0.16
0.78
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
BMI
APDN
VICL
HEBT
-2.65
-0.49
-0.51
3.59
-0.17
42.07
26.46
46.82
10.37
25.93
16.45
19.40
33.94
6.91
18.58
Inspire Global Hope ETF
Yintech Invt Holdings ADR
GRAVITY ADR
China Rapid Finance ADR
Concurrent Computer
BLES
27.1
-27.8
-29.6
276.0
-29.5
40.39
26.17
46.39
8.09
23.42
NYSE Arca
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
0
1.50
–5
0.75
–10
0.00
–15
30
High
52-Week
Low
% chg
4.83
10.51
8.20
24.60
2.22
-1.67
-2.91
-1.90
-4.62
-0.37
-25.69
-21.68
-18.81
-15.81
-14.29
18.31
13.46
13.05
31.75
8.05
4.77
9.43
4.50
6.02
0.85
...
-8.6
14.7
...
-71.9
5.50
1.84
18.23
13.40
4.75
-0.90
-0.29
-2.68
-1.93
-0.67
-14.06
-13.62
-12.82
-12.59
-12.36
16.30
8.00
38.86
25.47
6.96
4.05
1.83
2.20
3.50
0.67
-58.5
-69.5
203.8
204.5
106.6
5.70
44.60
2.23
2.53
3.07
-0.80
-6.20
-0.30
-0.33
-0.40
-12.31
-12.20
-11.86
-11.54
-11.53
8.75 1.70
52.10 29.30
3.45 0.90
3.70 2.05
7.02 2.50
58.3
45.3
-28.1
-13.1
...
HUNT
SCAC
BXC
DBO
YIN
GRVY
XRF
CCUR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
2,918
150
305
395
7,519
4995
2634
1760
1548
1474
12.02
9.83
10.00
8.37
8.86
-0.91
0.00
0.00
-9.81
-0.23
12.51
10.50
14.29
11.78
9.91
129
652
230
1,426
305
1307
1190
954
909
903
27.48
14.71
50.08
11.43
6.29
-0.18
8.96
17.31
4.77
0.96
27.68 25.01
22.97 8.53
54.00 4.50
12.86 5.60
7.10 4.63
8.03
7.99
9.82
6.36
7.40
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
10%
WSJ Dollar index
5
Latest Session
Close Net chg % chg
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
s
Euro
s Yen
Country/currency
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Americas
Argentina peso
.0577 17.3345
Brazil real
.3166 3.1581
Canada dollar
.7986 1.2522
Chile peso
.001608 621.70
Colombia peso
.0003392 2947.92
Ecuador US dollar
1
1
Mexico peso
.0532 18.7845
Peru new sol
.3083 3.243
Uruguay peso
.03401 29.4000
Venezuela b. fuerte .098968 10.1043
9.2
–3.0
–6.8
–7.2
–1.8
unch
–9.4
–3.3
0.2
1.1
Asia-Pacific
2016 2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.075
2.079
2.237
1.466 –1.391 1.813
2.300
3.002
2.560
5.121
2.800
1.880
2.343
2.994
2.570
5.109
2.830
1.927
2.609
3.390
2.790
6.448
3.120
2.516
1.740
2.648
2.050
4.948
2.170
1.677
1.838
2.406
0.839
7.330
0.647
2.336
806.429
5.406
5.438
6.290
5.279
5.662 5.940
1.632
3.804
2.304
4.393
2.104
2.546
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7845 1.2747
China yuan
.1512 6.6125
Hong Kong dollar
.1281 7.8086
India rupee
.01540 64.916
Indonesia rupiah .0000741 13499
Japan yen
.008913 112.20
Kazakhstan tenge .002995 333.84
Macau pataca
.1243 8.0420
Malaysia ringgit
.2368 4.2230
New Zealand dollar
.7172 1.3943
Pakistan rupee
.00950 105.305
Philippines peso
.0195 51.335
Singapore dollar
.7374 1.3561
South Korea won .0008840 1131.21
Sri Lanka rupee
.0065091 153.63
Taiwan dollar
.03312 30.196
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–8.2
–4.8
0.7
–4.5
–0.2
–4.1
0.04
1.6
–5.9
–3.4
0.9
3.5
–6.3
–6.4
3.5
–7.0
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
.03020 33.110 –7.5
.00004402 22719 –0.2
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04568 21.891 –14.8
.1581 6.3265 –10.5
1.1766 .8499 –10.6
.003820 261.81 –11.0
.009488 105.40 –6.7
.1259 7.9444 –8.1
.2778 3.6004 –14.0
.01744 57.341 –6.4
.1226 8.1551 –10.5
1.0222 .9783 –4.0
.2728 3.6662 4.0
.0378 26.4550 –2.3
1.3190 .7582 –6.4
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6515 .3771 –0.01
.0567 17.6515 –2.7
.2848 3.5118 –8.7
3.3096 .3022 –1.1
2.5973 .3850 0.01
.2752 3.634 –0.2
.2666 3.7506
...
.0747 13.3923 –2.2
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.61
0.15 0.17 –6.81
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
Nasdaq
Total volume*1,625,737,120 164,109,723
Adv. volume* 744,778,664 59,715,161
Decl. volume* 861,036,794 100,685,768
Issues traded
3,046
1,274
Advances
1,065
444
Declines
1,834
783
Unchanged
147
47
New highs
95
81
New lows
58
12
Closing tick
73
59
Closing Arms†
0.67
0.93
Block trades*
6,563
1,036
Ranked by change from 65-day average*
NEWS
1463.653
EMBI Global, J.P. Morgan
MNKD
NewStar Financial
Hunter Maritime Acqn
Saban Capital Acquisition
BlueLinx Holdings
PowerShares DB Oil Fund
10-yr Treasury, Ryan ALM 1739.727
DJ Corporate
380.718
Aggregate, Barclays Capital 1943.500
High Yield 100, Merrill Lynch 2864.270
Fixed-Rate MBS, Barclays 1989.360
Muni Master, Merrill
523.375
Treasury, Ryan ALM
YERR
0.45
0.30
22.83
10.47
16.11
2.25
Close
HMNY
5.00
2.63
32.38
13.27
26.43
Corporate Borrowing Rates and Yields
Bond total return index
TRVN
5195.3 4.00 42.35
6954.9 1.72 231.15
27.1 23.19 -0.73
49.1 12.27 1.24
-28.0 26.20 -0.15
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
ITEK
Symbol
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
Community Trust Bank, Inc.
3.63%
Ashland, KY
888-443-8504
PETZ
Company
Forex Race
notes and bonds
t
4.00%
IMDZ
52-Week
High
Low
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.86%
Bankrate.com avg†:
AGF
Volume Movers
s
U.S. consumer rates
Symbol
70.73
42.35
34.72
27.23
22.85
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
2.03
1.19
3.34
5.20
1.86
4.90
4.00
12.96
24.30
10.00
TRXC
Total volume* 689,454,331 20,335,135
Adv. volume* 299,944,375 14,520,783
Decl. volume* 375,149,910 5,239,308
Issues traded
3,063
328
Advances
1,263
120
Declines
1,660
189
Unchanged
140
19
New highs
139
5
New lows
26
4
Closing tick
59
9
Closing Arms†
0.98
0.20
Block trades*
6,155
100
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
-0.01
Glu Mobile
Percentage Gainers...
Net chg
2953.31
382.85
258.69
The Global Dow
DJ Global Index
DJ Global ex U.S.
Interest rate
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
596.60
-3.54
184.24
51.88
2.962
1283.00
-0.38
0.01
0.016
-16.90
-0.59
600.13
527.06
-0.21 195.14
54.45
0.02
3.93
0.54
-1.30 1346.00
166.50
42.53
2.56
1127.80
% Chg
9.68
YTD
% chg
5.17
-2.92 -4.30
3.16 -3.43
-9.22 -20.46
1.76 11.57
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B14 | Wednesday, October 18, 2017
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Oct
3.2170
3.2170
3.1770
3.1805 –0.0435
Dec
3.2425
3.2430
3.1875
3.1955 –0.0435
Gold (CMX)-100 troy oz.; $ per troy oz.
Oct
1295.10 1295.10
1283.10 1283.00 –16.90
Dec
1297.20 1298.40
1283.20 1286.20 –16.80
Feb'18
1301.60 1302.40
1287.70 1290.40 –16.90
April
1306.10 1306.10
1292.50 1294.40 –17.00
June
1310.40 1310.40
1296.30 1298.40 –17.00
Dec
1321.80 1321.80
1310.90 1310.70 –17.20
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Oct
985.00
985.00 s
985.00
977.05 –0.35
Dec
970.35
987.00
969.40
975.95 –0.35
March'18 968.20 973.00
964.30
964.90
0.10
Platinum (NYM)-50 troy oz.; $ per troy oz.
Oct
934.50
934.50
934.50
932.10 –7.30
Jan'18
933.70
938.90
928.40
934.80 –7.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Oct
17.000
17.010
17.000
16.987 –0.328
Dec
17.260
17.280
16.985
17.041 –0.328
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Nov
51.93
52.25
51.21
51.88
0.01
Dec
52.20
52.51
51.48
52.11 –0.03
Jan'18
52.40
52.69
51.67
52.28 –0.06
March
52.58
52.88
51.90
52.46 –0.13
June
52.45
52.82
51.88
52.35 –0.22
Dec
51.85
52.14
51.32
51.65 –0.29
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Nov
1.8139
1.8258
1.7909
1.8098 –.0031
Dec
1.8162
1.8249
1.7906
1.8090 –.0028
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Nov
1.6195
1.6394
1.6089
1.6301 .0132
Dec
1.6051
1.6215
1.5918
1.6123 .0129
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Nov
2.955
3.026
2.921
2.962
.016
Dec
3.119
3.182
3.095
3.128
.020
Jan'18
3.240
3.292
3.215
3.248
.021
Feb
3.250
3.298
3.225
3.257
.020
3.213
2.966
March
April
Open
interest
Contract
High hilo
Low
3.256
2.990
Settle
3.188
2.951
Open
interest
Chg
3.218
2.970
.016 169,052
.010 122,739
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
1,203
177,212
Dec
350.25
351.75
348.50
350.00
March'18 363.75 365.25
362.00
363.75
Oats (CBT)-5,000 bu.; cents per bu.
Dec
259.75
264.75
259.25
264.75
March'18 263.50 267.25
261.50
266.50
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
990.00
990.50
982.50
984.75
Jan'18
1000.75 1000.75
992.75
995.25
Soybean Meal (CBT)-100 tons; $ per ton.
324.00
324.00
321.20
321.60
Dec
Jan'18
326.00
326.20
323.40
323.90
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.66
33.74
33.35
33.59
Dec
Jan'18
33.79
33.88
33.52
33.74
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1212.00 1215.00
1211.50 1213.00
Jan'18
1243.00 1244.50
1241.50 1242.50
Wheat (CBT)-5,000 bu.; cents per bu.
436.50
440.75
433.50
434.75
Dec
March'18 455.25 459.25
452.50
453.75
Wheat (KC)-5,000 bu.; cents per bu.
Dec
434.00
437.00
431.50
433.25
March'18 451.75 455.25
449.75
451.25
Wheat (MPLS)-5,000 bu.; cents per bu.
610.25
614.75
608.75
611.00
Dec
March'18 623.50 629.00
623.00
625.25
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
153.950 154.200
152.100 152.150
Oct
Jan'18
152.600 152.900
150.325 150.400
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Oct
112.050 112.725
111.100 111.175
Dec
117.200 117.475
115.825 115.975
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
64.000
64.500
61.975
62.175
Feb'18
68.475
68.775
66.950
67.150
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
318
409,518
67,095
13,972
11,869
10,786
1
31,867
3,094
11
69,716
401
145,057
165,521
542,279
292,691
240,764
197,386
256,859
73,660
104,589
76,663
127,706
162,085
222,536
197,237
77,471
–.50 778,885
–.50 296,567
5.25
4.00
4,765
1,526
–6.25 250,745
–6.25 226,329
–2.90 149,921
–2.80 85,608
… 171,963
–.01 99,105
1.00
…
5,389
4,301
–1.75 255,263
–1.25 100,886
–.50 140,600
–.50 82,449
1.50
1.75
36,115
24,309
–1.850
–2.150
5,210
19,367
–.550
8,453
–.850 148,639
–1.525 118,735
–1.150 46,346
Cash Prices | WSJ.com/commodities
Tuesday, October 17, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Tuesday
Tuesday
17.1100
12875
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
0.9414
1.0576
2.890
2.850
2.790
2.580
2.690
1.010
2.800
55.500
11.750
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Metals
Other metals
LBMA Platinum Price PM
*945.0
Platinum,Engelhard industrial
931.0
Platinum,Engelhard fabricated
1031.0
Palladium,Engelhard industrial
990.0
Palladium,Engelhard fabricated
1090.0
Aluminum, LME, $ per metric ton
*2144.0
Copper,Comex spot
3.1805
Iron Ore, 62% Fe CFR China-s
61.7
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Fibers and Textiles
Gold, per troy oz
1288.84
1385.50
1284.75
1426.07
*1305.15
*1303.30
1335.67
1348.52
1348.52
1556.48
1261.87
1348.52
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.
17.1000
20.5200
16.9850
21.2310
£12.9600
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6150
0.6777
*78.50
61.000
n.a.
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
Grains and Feeds
n.a.
74
3.1500
80.8
467.8
228
86
228
2.9725
375.00
24.00
7.7238
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
Tuesday
323.10
9.4300
7.3850
4.2150
3.6525
5.2238
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
175.48
166.33
0.8444
2.4000
168.50
172.00
74.50
2359
1.2308
1.4199
1.0550
14.80
n.a.
63.18
1.0250
0.8976
n.a.
162.00
Fats and Oils
35.5400
n.a.
n.a.
0.3222
n.a.
0.3200
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
Contract
High hilo
Low
Open
Settle
Chg
Open
interest
Nov
433.50
434.40 s
425.40
428.50 –1.30
3,796
Jan'18
419.70
419.70 s
413.10
416.30 –1.20
2,679
Milk (CME)-200,000 lbs., cents per lb.
Oct
16.78
16.82
16.76
16.80
.04
3,886
Nov
16.17
16.37
16.13
16.31
.16
4,542
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
2,043
2,074
2,028
2,064
20 104,904
March'18
2,059
2,083
2,040
2,075
18 84,875
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
123.75
125.05
123.00
124.15
.40 116,289
March'18 127.65 128.80
126.85
128.00
.40 58,501
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.11
14.33
13.99
14.03
–.15 427,047
May
14.22
14.41
14.11
14.15
–.13 126,239
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March
27.00
27.00
27.00
26.99
…
2,538
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec
67.57
68.60
67.45
67.77
.24 121,508
March'18
67.34
68.17
67.26
67.48
.16 73,391
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
152.55
153.75
151.60
152.75
.40
3,121
Jan'18
153.60
153.60
151.80
152.75
.40
4,538
Interest Rate Futures
Contract
High hilo
Low
Open
Dec
153-240 154-030
153-100 154-020
11.0 838,803
March'18 152-150 152-270
152-090 152-280
11.0
139
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
125-145 125-165
125-070 125-140
.5 3,059,891
March'18 125-025 125-035
124-295 125-040
.5
7,112
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-120 117-135
117-077 117-110
… 2,936,833
March'18 117-035 117-035
117-010 117-040
–.2
260
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-225 107-232
107-215 107-225
… 1,740,140
March'18 107-162 107-172
107-162 107-172
…
1,714
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Oct
98.848
98.848
98.845
98.845
… 234,155
Jan'18
98.645
98.650
t 98.635
98.645 –.005 353,306
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.438 101.516
101.281 101.500 –.047 28,811
1 Month Libor (CME)-$3,000,000; pts of 100%
Nov
...
...
... 98.7575 –.0025
828
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5900 98.5900
98.5800 98.5800 –.0025 97,693
Dec
98.4950 98.5000
98.4850 98.4900 –.0050 1,987,810
March'18 98.3550 98.3650
98.3450 98.3500
… 1,318,500
Dec
98.0700 98.0850
98.0500 98.0600 –.0050 1,644,170
Nov
Dec
.8929
.8939
.8935
.8949
.8901
.8913
.8925
.8938
Sept. index
level
Week
Latest ago
Chg From (%)
Aug. '17 Sept. '16
U.S. consumer price index
0.53
0.19
246.819
252.941
All items
Core
2.2
1.7
Britain
Australia
Oct
Dec
.8010
.7992
.8018
.7995
.7968
.7945
.7964 –.0022
254
.7977 –.0013 169,131
Nov
Dec
1.3247
1.3274
1.3290
1.3312
1.3173
1.3177
1.3202 –.0056
766
1.3214 –.0056 178,888
Dec
March'18
1.0294
1.0310
1.0299
1.0363
1.0234
1.0307
1.0264 –.0023
1.0335 –.0023
.7852
.7847
.7847
.7842
.7870
.7857
.7855
.7852
.7843
.7870
.7817
.7812
.7812
.7810
.7865
Dec
.05195
.05282
.05166
.05209 .00021 189,310
Nov
Dec
1.1808
1.1836
1.1811
1.1836
1.1754
1.1774
1.1788 –.0022
6,119
1.1809 –.0022 432,699
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Nov
Dec
Jan'18
March
June
International rates
Latest
Week
ago
Mexican Peso (CME)-MXN 500,000; $ per MXN
Euro (CME)-€125,000; $ per €
52-Week
High
Low
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
1.11
1.20
0.25
1.50
1.38
0.15
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
22895
22880
22973 s
22958 s
22886
22878
22951
22937
2555.20
2557.50 s
2552.50
2556.90
S&P 500 Index (CME)-$250 x index
Dec
Mini S&P 500 (CME)-$50 x index
Dec
2555.50 2557.75 s
2552.25 2557.00
March'18 2555.50 2558.00 s 2553.00 2557.25
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1819.10 1821.70
1814.40 1816.10
Mini Nasdaq 100 (CME)-$20 x index
Dec
6119.8
6125.5 s
6105.0
6123.8
March'18 6130.5 6137.8 s
6117.8
6136.3
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1505.00 1508.50
1495.60 1499.00
March'18 1497.00 1497.00
1497.00 1499.50
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1417.20 1417.80
1415.70 1417.50
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
93.14
93.59
93.14
93.35
March'18
92.87
93.29
92.87
93.06
3.4
1943.50
0.00
0.50
1.75
1.75
1.00
Federal funds
1.2000 0.3500
1.3125 0.5625
5.7
U.S. Corporate
2623.88
4.0
Intermediate
9.7 Long term
3855.63
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
AMLP
XLY
XLP
DGP
DZZ
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
11.01
91.39
54.39
25.34
5.52
68.33
26.17
96.56
83.16
71.95
110.05
105.22
123.34
64.98
55.86
62.06
257.21
181.08
74.29
58.56
109.71
94.93
72.02
51.10
12.36
121.39
88.51
116.27
107.13
70.00
42.64
69.34
62.57
46.39
43.46
57.58
338.12
111.28
128.01
142.23
119.72
179.83
148.81
124.50
151.61
199.92
85.72
205.71
146.64
–0.90 –12.6
0.05 12.3
5.2
–0.37
–1.86 25.9
1.51 –19.5
0.06 –9.3
–0.49 12.6
–0.01 11.4
1.34 20.6
–0.26 15.6
1.7
–0.05
0.3
0.04
0.7
–0.05
–0.31 21.2
–0.46 31.6
–0.35 22.9
0.06 14.3
9.5
–0.17
8.0
–0.24
0.02 14.2
1.5
–0.04
7.2
–0.08
–0.15 17.6
0.24 13.0
–0.72 11.6
3.6
–0.02
2.3
0.15
5.5
0.05
0.7
–0.04
–0.10 18.3
–0.70 27.9
–0.26 20.1
–0.52 25.5
–0.51 32.5
–0.14 25.6
–0.10 17.8
0.38 27.4
2.9
0.13
0.10 22.0
0.04 14.3
6.9
0.03
–0.23 16.8
–0.29 10.4
4.7
–0.38
0.05 14.0
–0.04 11.8
6.6
–0.10
–0.17 12.9
0.15 20.4
Closing Chg YTD
Symbol Price (%) (%)
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
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
–3.20
92,270
3.5 276,313
3.5
1,111
–6.50
–6.50
64,524
59
…
295
.19
.18
43,322
1,818
Source: SIX Financial Information
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
2.5
Mortgage-Backed
1.9
Ginnie Mae (GNMA) 2.740 2.060 3.090
3.130 2.870 3.520
1166.59
2.6
Fannie mae (FNMA) 2.820 2.220 3.120
2.670 2.300 3.010
1796.85
2.7
Freddie Mac (FHLMC) 2.830 2.230 3.130
4.110 4.110 4.710
523.38
4.9
Muni Master
1.880 1.677 2.516
7-12 year
1.912 1.674 2.618
2.800 2.170 3.120
568.47
4.3
Double-A-rated
2.600 2.230 2.870
366.07
718.64
6.4
Triple-B-rated
3.420 3.220 3.870
410.81
6.5
12-22 year
2.311 2.114 3.047
396.01
6.7
22-plus year
2.803 2.567 3.622
High Yield Bonds Merrill Lynch
417.27
7.4
417.41
8.5 Triple-C-rated
High Yield Constrained 5.446 5.399 6.858
10.275 9.584 13.189
Global Government J.P. Morgan†
n.a.
n.a.
Global Government
n.a. n.a. n.a.
Canada
n.a. n.a. n.a.
2864.27
6.7
High Yield 100
5.121 4.948 6.448
n.a.
n.a.
378.85
7.6
Global High Yield Constrained 4.979 4.979 6.450
n.a.
n.a.
EMU§
n.a. n.a. n.a.
306.12
6.7
Europe High Yield Constrained 2.126 2.126 3.814
n.a.
n.a.
France
n.a. n.a. n.a.
n.a.
n.a.
Germany
n.a. n.a. n.a.
U.S Agency Bloomberg Barclays
1640.77
2.2
U.S Agency
1.940 1.320 1.960
n.a.
n.a.
Japan
n.a. n.a. n.a.
1466.81
1.4
10-20 years
1.780 1.140 1.780
n.a.
n.a.
Netherlands
n.a. n.a. n.a.
20-plus years
2.900 2.630 3.460
n.a.
n.a.
U.K.
n.a. n.a. n.a.
Yankee
2.780 2.410 3.090
806.43
7.7
4.8
2457.14
9.1 Emerging Markets ** 5.406 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
108.95
38.48
113.66
84.32
106.64
125.92
115.49
101.79
149.04
46.55
23.24
37.25
122.13
33.95
61.85
61.04
229.85
330.23
255.47
92.99
60.72
54.35
23.42
156.87
128.62
96.09
44.01
44.92
58.43
53.66
135.30
154.61
82.48
84.76
88.16
117.36
148.92
106.79
84.47
234.66
79.72
80.01
142.54
81.98
54.79
55.78
131.51
71.99
101.25
65.31
56.16
–0.05
–0.03
–0.18
0.01
–0.04
0.13
0.01
...
0.13
–0.02
0.13
0.16
–0.68
–0.21
0.02
0.03
0.17
–0.14
0.07
0.19
...
0.59
–0.17
–0.05
–0.22
0.09
–0.23
–0.49
–0.44
–0.28
0.01
1.14
0.10
–0.01
0.07
0.08
–0.02
–0.11
0.12
0.06
–0.03
–0.05
–0.14
0.01
0.02
–0.27
0.05
–0.04
0.13
0.21
–0.04
7.5
3.4
0.4
–0.2
1.7
5.7
18.6
0.5
25.8
12.0
–0.5
2.2
11.4
22.7
14.2
14.6
16.4
9.4
14.3
8.7
25.6
11.9
12.0
29.1
6.3
12.8
20.4
25.5
21.9
21.5
21.4
22.0
8.9
2.0
2.9
14.6
13.1
9.9
2.4
14.3
0.3
0.8
10.5
1.5
0.9
21.6
14.0
18.0
8.9
13.8
13.4
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
0.995 1.015 1.300 0.240
10
13 weeks
1.090 1.085 1.180 0.340
0.000
26 weeks
1.240 1.220 1.240 0.470
1.000
0.000
0.500
30 days
3.416 3.463 3.865 2.960
60 days
3.438 3.485 3.899 2.990
Other short-term rates
Week
Latest
ago
3.00
3.00
3.00
n.a.
1.30
Year ago
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
l
1.538
2.305
1.380
2.204
0.815
1.768
1.921 s
2.773 s
l
1.913
1.949
1.741
37.9
37.5
l
2.756
2.749
2.316
47.3
45.1
54.8
France 2 -0.530 s
10 0.622 t
l
-0.532
-0.482
-207.0
-142.7
l
0.636
0.714
-0.613 -207.2
0.344
-167.8
-166.8
-142.4
Germany 2 -0.727 s
10 0.367 t
l
-0.731
-0.699
-226.9
-146.7
l
0.374
0.434
-0.652 -226.9
0.054 -193.3
-193.1
-171.4
Italy 2 -0.151 t
10 2.003 t
l
-0.132
-0.072
-0.088
-169.3
-167.0
-90.2
l
2.037
2.079
1.412
-29.8
-26.7
-35.6
Japan 2 -0.135 s
10 0.070 s
l
-0.139
-0.144
-0.269
-108.4
0.065
0.021
-167.7
-0.056 -223.0
-167.7
l
-223.9
-182.4
Spain 2 -0.306 t
10 1.547 t
l
-0.298
-0.301
-0.214
-184.9
-183.6
-102.9
l
1.570
1.603
1.121
-75.4
-73.5
-64.7
0.411 t
1.279 t
l
0.451
0.436
0.193
-113.1
-108.7
-62.2
l
1.339
1.309
1.032
-102.1
-96.6
-73.6
2.050
0.100
0.100
1.450
1.750
U.K. 2
4.250
10
2.25
Commercial paper (AA financial)
1.30
Month ago
l
2.750
52-Week
high
low
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.542 s
10 2.300 t
0.050
30-year mortgage yields
90 days
Largest 100 exchange-traded funds, latest session
ETF
0.75 3,046,741
0.75 29,411
5.4
Australia 2
1.1600 0.2400
1.1700 0.3000
1.1900 0.3200
Exchange-Traded Portfolios | WSJ.com/ETFresearch
ETF
52,984
1956.72
2.560 2.050 2.790
U.S. Aggregate
2783.26
2.750
Call money
Tuesday, October 17, 2017
Closing Chg YTD
Symbol Price (%) (%)
0.70
1989.36
U.S. Corporate Indexes Bloomberg Barclays
2.750
Fannie Mae
Effective rate 1.1700 1.1700
High
1.3125 1.3125
Low
1.0000 1.0500
Bid
1.1600 1.1600
Offer
1.1800 1.1700
53 158,601
52
1,380
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
4 weeks
Treasury bill auction
Secondary market
Discount
1.75
–.0002
469
–.0002 134,553
–.0001
320
–.0002
601
–.0001
242
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
1.375
2.250
Week
Latest ago
U.S. government rates
Prime rates
U.S.
Canada
Japan
0.25
1.50
Overnight repurchase
U.S.
.7844
.7840
.7839
.7834
.7830
52,972
168
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
—52-WEEK—
High Low
—52-WEEK—
High Low
0.25
1.50
0.25
1.50
.0001
2,875
.0001 248,278
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Global Government Bonds: Mapping Yields
October 17, 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.
Inflation
Open
interest
Chg
Currency Futures
** EMBI Global Index
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Settle
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
3367.81
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 10/16
Source: WSJ Market Data Group
WSJ.com/commodities
0.62
Libor
92.7
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
One month
1.23777 1.23778 1.23889 0.52400
Three month
1.35733 1.35667 1.35917 0.87567
Issuer
Symbol Coupon (%)
Six month
1.54522 1.52433 1.54522 1.24267
One year
1.82122 1.80678 1.82761 1.55622
Deutsche Bank AG*
Bank of America
Entergy Arkansas
JPMorgan Chase
DB
BAC
ETR
JPM
7.500
8.000
3.700
7.900
April 30, ’49
Jan. 30, ’49
June 1, ’24
April 30, ’49
Societe Generale
Viacom
Wells Fargo
Citibank
SOCGEN
VIA
WFC
C
7.875
5.875
3.450
2.100
Dec. 18, ’49
Feb. 28, ’57
Feb. 13, ’23
June 12, ’20
Euro Libor
One month
-0.405 -0.401 -0.376 -0.405
Three month
-0.375 -0.376 -0.319 -0.381
Six month
-0.312 -0.309 -0.212 -0.312
One year
-0.230 -0.222 -0.071 -0.230
Euro interbank offered rate (Euribor)
One month
-0.373 -0.371 -0.366 -0.375
Three month
-0.329 -0.329 -0.311 -0.332
Six month
-0.274 -0.274 -0.209 -0.275
One year
-0.183 -0.181 -0.069 -0.183
Latest
Value
Traded
52-Week
High
Low
DTCC GCF Repo Index
Treasury
1.161
27.500 1.366 0.244
MBS
1.169
92.670 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Oct
98.875 -0.005 4996 1.125
Treasury Nov
Treasury Dec
98.875 0.005 5490 1.125
98.725 unch. 1991 1.275
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.
Maturity
Current
Spread*, in basis points
One-day change
335 –24
–111
–17
36 –13
–99 –12
257
340
90
31
–12
–12
–11
–10
Last week
Stock Performance
Close ($)
% chg
357
–28
n.a.
–58
16.71
26.20
…
97.62
–0.06
–0.15
…
–0.22
280
290
n.a.
34
...
33.95
53.19
72.19
...
0.59
–1.13
0.59
…And spreads that widened the most
Philip Morris International
Macy's Retail Holdings
Bank of America
General Motors Financial
PM
M
BAC
GM
3.600
5.125
2.625
3.200
Nov. 15, ’23
Jan. 15, ’42
April 19, ’21
July 13, ’20
73
325
44
60
16
11
9
7
77
n.a.
47
63
112.65
…
26.20
…
–0.77
…
–0.15
…
NewMarket
Broadcom
Michael Kors
NEU
AVGO
KORS
4.100
3.625
4.000
Dec. 15, ’22
Jan. 15, ’24
Nov. 1, ’24
96
83
178
7
6
6
n.a.
79
174
430.21
242.62
48.99
0.15
–1.64
0.76
High-yield issues with the biggest price increases…
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Bombardier
Tenet Healthcare
Community Health Systems
DaVita
BBDBCN
THC
CYH
DVA
7.500 March 15, ’25
8.125
April 1, ’22
7.125 July 15, ’20
5.000
May 1, ’25
107.250
101.000
87.750
99.000
1.63
1.50
1.24
Staples
Compucom Systems
ENSCO
Noble Holding International
SPLS
COMPCO
ESV
NE
8.500 Sept. 15, ’25
7.000
May 1, ’21
8.000 Jan. 31, ’24
7.750 Jan. 15, ’24
93.813
100.000
100.250
90.750
1.06
1.00
1.00
1.00
Coupon (%)
Maturity
7.38
Last week
Stock Performance
Close ($)
% chg
n.a.
100.125
87.250
97.750
...
13.60
6.43
56.49
...
5.34
8.98
–0.77
94.000
99.250
99.000
88.750
...
...
5.58
…
...
...
–1.41
…
69.500
105.125
100.500
93.000
...
…
14.93
4.20
...
…
–2.23
–1.87
78.500
96.000
99.861
106.284
…
19.38
...
42.97
…
3.03
...
1.03
…And with the biggest price decreases
Intelsat Luxembourg S.A.
DISH DBS
Freeport–McMoran
Foresight Energy
INTEL
DISH
FCX
FELP
8.125
5.875
4.000
11.500
June 1, ’23
Nov. 15, ’24
Nov. 14, ’21
April 1, ’23
68.500
101.375
100.900
91.000
Revlon Consumer Products
SUPERVALU
QVC
Aramark Services
REV
SVU
QVCN
ARMK
6.250
6.750
5.450
5.125
Aug. 1, ’24
June 1, ’21
Aug. 15, ’34
Jan. 15, ’24
77.250
95.250
99.795
105.375
–1.75
–1.38
–1.20
–1.00
–1.00
–1.00
–0.94
–0.75
*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.
Wednesday, October 18, 2017 | B15
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE, NYSE
Arca, NYSE MKT and Nasdaq Stock Market listed
securities. Prices are composite quotations that
include primary market trades as well as trades
reported by Nasdaq OMX BXSM (formerly
Boston), Chicago Stock Exchange, CBOE, National
Stock Exchange, ISE and BATS.
The list comprises the 1,000 largest companies
based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
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.
Tuesday, October 17, 2017
Stock
Net
Sym Close Chg
NYSE
s
t
s
s
s
s
s
t
s
s
s
s
s
s
s
s
s
t
s
ABB
ABB 25.03 0.06
AES
AES 11.19 -0.08
Aflac
AFL 83.76 -0.42
AT&T
T
36.23 0.06
AbbottLabs ABT 55.06 0.43
AbbVie
ABBV 92.17 1.13
Accenture
ACN 138.65 -0.44
AcuityBrands AYI 163.64 -1.12
Adient
ADNT 85.16 0.36
AdvanceAuto AAP 88.09 2.08
AdvSemiEngg ASX
6.29 -0.09
Aegon
AEG
5.77 0.02
AerCap
AER 52.43 -0.01
Aetna
AET 155.90 4.46
AffiliatedMgrs AMG 193.79 -1.51
AgilentTechs A
66.12 -0.79
AgnicoEagle AEM 45.08 -0.44
Agrium
AGU 107.18 -1.59
AirProducts APD 153.47 0.25
AlaskaAir
ALK 80.52 0.05
Albemarle
ALB 139.41 -0.75
Alcoa
AA
47.77 -0.47
AlexandriaRealEst ARE 124.10 0.60
Alibaba
BABA 175.32 -4.24
Alleghany
Y
556.27 4.66
Allegion
ALLE 87.00 -1.14
Allergan
AGN 197.78 -0.63
AllianceData ADS 226.94 -1.83
AllianceBernstein AB
25.00
...
AlliantEnergy LNT 43.44 0.32
Allstate
ALL 91.41 -1.05
AllyFinancial ALLY 24.41 -0.14
AlticeUSA
ATUS 24.49 -0.11
Altria
MO 64.87 -0.50
AlumofChina ACH 22.44 -0.54
Ambev
ABEV 6.83 -0.01
Ameren
AEE 60.95 0.31
AmericaMovil AMX 18.34 0.39
AmericaMovil A AMOV 18.16 0.46
AmCampus ACC 44.40 0.29
AEP
AEP 73.20 0.08
AmericanExpress AXP 91.69 -0.27
AmericanFin AFG 104.14 -0.34
AIG
AIG 63.63 -0.35
AmerTowerREIT AMT 139.13 -0.46
AmerWaterWorks AWK 86.03 0.82
Amerigas
APU 44.90 0.15
Ameriprise AMP 152.35 -1.04
AmerisourceBrgn ABC 79.95 0.95
Ametek
AME 67.92 0.15
Amphenol
APH 86.70 -0.24
AnadarkoPetrol APC 48.90 0.45
Andeavor
ANDV 104.45 0.63
AB InBev
BUD 126.02 0.30
AnnalyCap
NLY 12.32 0.06
AnteroResources AR
19.65 0.09
Anthem
ANTM 187.26 3.50
Aon
AON 149.20 -0.75
Apache
APA 42.76 0.03
ApartmtInv AIV 44.24 -0.01
ApolloGlobalMgmt APO 31.75 0.37
AquaAmerica WTR 35.26 0.36
Aramark
ARMK 42.97 0.44
ArcelorMittal MT
28.86 -0.13
ArcherDaniels ADM 43.67 -0.03
Arconic
ARNC 26.84 -0.33
AristaNetworks ANET 190.61 1.82
ArrowElec
ARW 83.08 0.02
AstraZeneca AZN 34.78 0.13
Athene
ATH 54.23 -0.56
AtmosEnergy ATO 86.22 -0.03
Autohome
ATHM 58.11 -2.82
Autoliv
ALV 125.81 -0.99
AutoZone
AZO 607.87 9.32
Avalonbay
AVB 180.02 0.82
Avangrid
AGR 48.11 0.33
AveryDennison AVY 101.58 -0.60
AxaltaCoating AXTA 28.39 0.04
BB&T
BBT 46.52 -0.51
BCE
BCE 47.42 0.44
BHPBilliton BHP 42.42 -0.23
BHPBilliton BBL 37.55 -0.21
BP
BP
38.69 -0.50
BRF
BRFS 14.08 -0.19
BT Group
BT
18.11 -0.29
BWX Tech
BWXT 59.43 -0.12
BakerHughes BHGE 33.79 0.09
Ball
BLL 41.98 -0.21
BancoBilbaoViz BBVA 8.50 -0.01
BancodeChile BCH 93.41 -0.81
BancoMacro BMA 125.87 -1.22
BcoSantChile BSAC 31.06 -0.46
BancoSantander SAN
6.55 0.03
BanColombia CIB
44.05 0.62
BankofAmerica BAC 26.20 -0.04
BankofMontreal BMO 78.10 0.20
BankNY Mellon BK
53.96 -0.75
BkNovaScotia BNS 64.43 -0.02
Barclays
BCS 10.07 0.04
Bard CR
BCR 324.54 1.26
BarrickGold ABX 16.22 -0.02
BaxterIntl
BAX 63.92 0.27
BectonDickinson BDX 203.07 2.25
Berkley
WRB 68.45 0.24
BerkHathwy A BRK.A 281050-910.00
BerkHathwy B BRK.B 187.39 -0.57
BerryGlobal BERY 58.98 0.06
BestBuy
BBY 54.65 -0.26
Bio-RadLab A BIO 218.94 -4.02
Bio-RadLab B BIO.B 218.83 -4.02
BlackKnight BKI
46.00 -0.85
BlackBerry
BB
11.27 -0.10
BlackRock
BLK 475.55 -2.41
BlackstoneGroup BX
33.22 -0.04
BoardwalkPipe BWP 14.69 -0.20
Boeing
BA 258.62 -1.13
BorgWarner BWA 52.02 -0.15
BostonProperties BXP 128.06 -0.32
BostonScientific BSX 29.40 0.24
Braskem
BAK 29.21 -0.19
Bristol-Myers BMY 64.18 0.53
BritishAmTob BTI
64.21 -0.17
BrixmorProp BRX 19.04 0.03
BroadridgeFinl BR
82.99 -0.11
BrookfieldMgt BAM 42.82 0.19
BrookfieldInfr BIP
43.57 -0.06
Brown&Brown BRO 49.01 0.04
Brown-Forman A BF.A 57.06 0.88
Brown-Forman B BF.B 56.07 0.65
BuckeyePtrs BPL 54.03 -1.01
Bunge
BG
71.21 0.43
BurlingtonStores BURL 88.80 0.37
CBD Pao
CBD 24.24 -0.01
CBRE Group CBG 39.66 0.14
Net
Sym Close Chg
Stock
CBS B
CBS 56.66
s CF Industries CF
37.00
CGI Group
GIB
53.37
CIT Group
CIT
49.03
CMS Energy CMS 47.81
CNA Fin
CNA 49.99
CNOOC
CEO 129.85
CPFLEnergia CPL 17.27
CRH
CRH 35.93
CVS Health CVS 72.63
CabotOil
COG 25.88
CamdenProperty CPT 93.02
CampbellSoup CPB 46.14
CIBC
CM
89.72
CanNtlRlwy CNI
80.08
CanNaturalRes CNQ 33.26
CanPacRlwy CP 167.16
Canon
CAJ 35.68
CapitalOne COF 86.07
CardinalHealth CAH 65.08
Carlisle
CSL 100.29
CarMax
KMX 75.37
Carnival
CCL 68.13
Carnival
CUK 67.83
Caterpillar
CAT 130.54
Celanese A
CE 104.27
Cemex
CX
8.09
CenovusEnergy CVE
9.85
Centene
CNC 93.80
CenterPointEner CNP 29.53
CentraisElBras EBR
6.40
CenturyLink CTL 19.02
s Chemours
CC
56.85
Chevron
CVX 120.22
ChinaEastrnAir CEA 24.93
ChinaLifeIns LFC 15.44
ChinaMobile CHL 50.66
ChinaPetrol SNP 74.63
ChinaSoAirlines ZNH 35.01
ChinaTelecom CHA 52.83
ChinaUnicom CHU 14.47
Chipotle
CMG 329.30
Chubb
CB 150.08
ChunghwaTelecom CHT 34.19
Church&Dwight CHD 47.70
Cigna
CI
187.20
CimarexEnergy XEC 116.32
Citigroup
C
72.19
CitizensFin CFG 36.68
Clorox
CLX 131.87
Coach
COH 39.64
Coca-Cola
KO
46.52
Coca-Cola Euro CCE 41.90
Coca-Cola Femsa KOF 71.19
Colgate-Palmolive CL
74.96
ColonyNorthStar CLNS 12.56
Comerica
CMA 74.80
SABESP
SBS
9.88
ConagraBrands CAG 34.21
ConchoRscs CXO 133.42
ConocoPhillips COP 49.72
ConEd
ED
83.56
s ConstBrands A STZ 213.64
s ConstBrands B STZ.B 213.56
ContinentalRscs CLR 37.31
Cooper
COO 235.98
Corning
GLW 29.67
Coty
COTY 16.00
Credicorp
BAP 207.15
CreditSuisse CS
16.02
CrestwoodEquity CEQP 23.90
CrownCastle CCI 101.38
CrownHoldings CCK 60.04
Cullen/Frost CFR 95.84
s Cummins
CMI 174.72
DTE Energy DTE 110.16
DXC Tech
DXC 92.11
Danaher
DHR 85.26
Darden
DRI 81.56
DaVita
DVA 56.49
Deere
DE 128.69
DellTechnologies DVMT 80.99
DelphiAutomotive DLPH 97.24
DeltaAir
DAL 52.76
DeutscheBank DB
16.71
DevonEnergy DVN 35.73
Diageo
DEO 134.63
DigitalRealty DLR 122.72
DiscoverFinSvcs DFS 64.66
Disney
DIS
98.36
DolbyLab
DLB 59.20
DollarGeneral DG
82.10
DominionEner D
78.96
Domino's
DPZ 192.27
Donaldson
DCI
46.84
s DouglasEmmett DEI
41.02
Dover
DOV 94.05
DowDuPont DWDP 70.88
DrPepperSnap DPS 89.37
DrReddy'sLab RDY 36.45
DukeEnergy DUK 87.51
DukeRealty DRE 28.95
ENI
E
32.79
EOG Rscs
EOG 97.45
EQT
EQT 63.32
EQT Midstream EQM 73.87
EastmanChem EMN 87.30
Eaton
ETN 78.07
s EatonVance EV
50.99
Ecolab
ECL 132.58
Ecopetrol
EC
9.97
EdisonInt
EIX 77.60
EdwardsLife EW 110.05
s EmersonElectric EMR 65.48
EnbridgeEnPtrs EEP 15.40
Enbridge
ENB 41.30
Encana
ECA 11.42
s EnelAmericas ENIA 10.88
EnelChile
ENIC 6.10
EnelGenChile EOCC 27.10
EnergyTrfrEquity ETE 17.74
EnergyTransfer ETP 18.15
s Entergy
ETR 84.60
EnterpriseProd EPD 26.13
Equifax
EFX 108.58
EquityLife
ELS 87.48
EquityResdntl EQR 66.88
EssexProp
ESS 261.38
EsteeLauder EL 110.51
EverestRe
RE 236.40
EversourceEner ES
61.74
Exelon
EXC 39.60
ExtraSpaceSt EXR 82.19
ExxonMobil XOM 82.96
FMC
FMC 94.42
FactSet
FDS 179.47
FederalRealty FRT 129.63
-0.24
0.11
0.53
-0.17
0.40
-0.64
0.38
0.04
-0.31
0.19
0.19
-0.76
-0.51
0.05
-0.15
0.09
-1.30
-0.09
-0.78
0.45
0.66
-0.09
-0.11
-0.08
-0.93
-2.83
0.28
0.12
2.88
0.07
-0.09
-0.74
-0.16
0.09
-0.53
0.01
0.09
-0.73
-0.90
0.13
0.01
8.91
-0.24
0.08
-0.16
2.21
0.44
0.42
-0.37
0.06
0.32
-0.10
-0.10
0.48
-0.79
0.02
-0.54
-0.11
-0.29
0.15
...
0.71
3.19
6.02
-0.11
-0.97
-0.22
-0.83
-1.19
0.11
-0.30
-0.47
-0.02
-1.28
0.59
0.53
0.62
-0.87
1.36
-0.44
0.97
-0.11
-0.74
-0.86
-0.01
-0.12
-0.85
0.98
-0.69
0.23
-0.28
-0.02
-0.07
-0.92
-0.07
0.15
-0.72
-0.05
-0.26
-0.17
0.38
0.01
-0.28
0.24
0.76
-0.80
-0.57
-1.16
-0.11
-1.87
0.14
-0.04
1.53
1.04
-0.04
-0.21
0.10
-0.02
...
0.08
-0.01
-0.15
1.19
-0.20
-0.12
0.66
-0.39
0.36
-0.77
-1.72
0.54
-0.07
0.32
0.15
-0.59
1.71
0.82
Stock
s
s
s
t
t
s
s
s
s
Net
Sym Close Chg
FedEx
FDX 220.10
Ferrari
RACE 115.77
FiatChrysler FCAU 17.34
FibriaCelulose FBR 16.43
FidelityNatlFin FNF 34.40
FNFV Group FNFV 17.80
FidelityNtlInfo FIS
94.38
58.com
WUBA 68.80
FirstData
FDC 18.08
FirstRepBank FRC 96.46
FirstEnergy FE
32.17
FleetCorTech FLT 162.64
Flowserve
FLS 44.58
Fluor
FLR 42.54
FomentoEconMex FMX 93.03
FordMotor
F
12.27
ForestCIty A FCE.A 25.07
Fortis
FTS 37.16
Fortive
FTV 71.49
FortBrandsHome FBHS 66.08
Franco-Nevada FNV 79.64
FranklinRscs BEN 44.39
Freeport-McMoRan FCX 14.93
FreseniusMed FMS 48.10
GGP
GGP 21.57
Gallagher
AJG 61.88
Gap
GPS 26.55
Gartner
IT
122.18
Gazit-Globe GZT
9.73
GeneralDynamics GD 211.54
GeneralElec GE
23.19
GeneralMills GIS
51.70
GeneralMotors GM
45.02
Genpact
G
29.54
GenuineParts GPC 96.86
Gerdau
GGB
3.53
Gildan
GIL
31.01
GlaxoSmithKline GSK 40.83
GlobalPayments GPN 97.68
GoDaddy
GDDY 43.85
Goldcorp
GG
13.14
GoldmanSachs GS 236.09
Graco
GGG 125.22
Grainger
GWW 205.42
GreatPlainsEner GXP 32.18
GpoAvalAcciones AVAL 8.99
GpFinSantandMex BSMX 9.08
GrupoTelevisa TV
23.65
GuidewireSoftware GWRE 77.21
HCA Healthcare HCA 76.82
HCP
HCP 26.48
HDFC Bank HDB 94.60
HP
HPQ 21.55
HSBC
HSBC 49.11
Halliburton HAL 44.46
Hanesbrands HBI 23.13
HarleyDavidson HOG 47.52
Harris
HRS 136.09
HartfordFinl HIG 55.81
HealthcareAmer HTA 29.92
Heico
HEI
89.28
Heico A
HEI.A 74.40
Herbalife
HLF 77.58
Hershey
HSY 110.82
Hess
HES 45.96
HewlettPackard HPE 14.61
Hilton
HLT 71.22
HollyFrontier HFC 36.32
HomeDepot HD 163.35
HondaMotor HMC 30.41
Honeywell
HON 143.43
HormelFoods HRL 31.51
DR Horton
DHI 41.49
HostHotels HST 19.34
HuanengPower HNP 25.34
Hubbell
HUBB 118.88
Humana
HUM 240.43
HuntingtonIngalls HII 235.23
Huntsman
HUN 29.20
HyattHotels H
61.70
ICICI Bank
IBN
8.32
ING Groep
ING 18.37
Invesco
IVZ
36.19
IDEX
IEX 124.20
IllinoisToolWks ITW 153.07
Infosys
INFY 14.46
Ingersoll-Rand IR
91.10
Ingredion
INGR 123.62
ICE
ICE 68.17
InterContinentl IHG 54.23
IBM
IBM 146.54
IntlFlavors
IFF 148.58
IntlPaper
IP
58.14
Interpublic
IPG 21.04
InvitationHomes INVH 22.65
IronMountain IRM 40.11
IsraelChemicals ICL
4.34
ItauUnibanco ITUB 13.98
JPMorganChase JPM 97.62
JacobsEngineering JEC 58.23
JamesHardie JHX 14.22
JanusHenderson JHG 35.13
J&J
JNJ 140.79
JohnsonControls JCI
41.20
JonesLangLaSalle JLL 130.54
JuniperNetworks JNPR 26.11
KAR Auction KAR 48.05
KB Fin
KB
50.29
KKR
KKR 20.18
KT
KT
14.61
KSCitySouthern KSU 101.47
Kellogg
K
61.74
KeyCorp
KEY 18.19
KeysightTechs KEYS 42.50
KilroyRealty KRC 72.83
KimberlyClark KMB 118.28
KimcoRealty KIM 19.26
KinderMorgan KMI 18.68
Knight-Swift KNX 38.46
Kohl's
KSS 43.30
KoninklijkePhil PHG 40.52
KoreaElcPwr KEP 17.61
Kroger
KR
20.48
Kyocera
KYO 66.15
LATAMAirlines LTM 13.62
L Brands
LB
41.51
LG Display
LPL 12.73
LINE
LN
36.75
L3 Tech
LLL 186.10
LabCpAm
LH 149.73
LambWeston LW
50.22
LasVegasSands LVS 62.31
Lazard
LAZ 45.60
Lear
LEA 173.04
Leggett&Platt LEG 47.73
Leidos
LDOS 61.82
Lennar A
LEN 55.97
New Highs and Lows | WSJ.com/newhighs
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Tuesday, October 17, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
EtnVncEqtyInco EOI
NYSE highs - 139 EtnVncEqtyInco II EOS
AbbVie
ABBV 92.78
9.05
AberdeenJapanEqu JEQ
AlabamaPwrPfdA ALPpQ 26.56
6.88
AlpnGlblPrProp AWP
30.51
AmEqtyLf
AEL
AmerStWater AWR 54.68
AmerWaterWorks AWK 86.13
68.19
Ametek
AME
AnnalyCapPfdF NLYpF 26.29
ApolloGlobalMgmt APO
31.83
AquaAmerica WTR 35.26
AveryDennison AVY 102.55
BcoSantChile BSAC 31.61
BankofAmWtA BAC.WS.A 14.30
26.43
BankofAmerica BAC
Bard CR
BCR 324.71
72.37
BarnesGroup B
BerkHathwy A BRK.A 282999
54.42
Bitauto
BITA
47.55
BlackKnight
BKI
15.58
BlkRkMunQlty BAF
10.55
BoulderGrowth BIF
29.88
Braskem
BAK
83.27
BroadridgeFinl BR
BrookfieldMgt BAM 42.98
50.24
Brown&Brown BRO
14.96
Buenaventura BVN
CACI Intl
CACI 144.70
39.84
CBRE Group
CBG
37.39
CF Industries CF
CSS Industries CSS
29.93
42.45
CalWtrSvc
CWT
CampingWorld CWH 44.10
CedarRealty6.5%PfC CDRpC 25.20
Chegg
CHGG 16.23
57.68
Chemours
CC
CherryHillPfdA CHMIpA 25.79
12.86
ChinaRapidFin XRF
68.40
ChoiceHotels CHH
ColonyNorthPfdJ CLNSpJ 25.29
ConstBrands B STZ.B 213.88
ConstBrands A STZ 213.90
35.11
Corts Aon KTN KTN
175.32
Cummins
CMI
114.28
CurtissWright CW
29.31
Dana
DAN
41.09
DouglasEmmett DEI
EPAM Systems EPAM 91.97
92.48
EastGroup
EGP
51.88
EatonVance
EV
1.2
...
-0.6
-0.1
-0.9
1.4
1.0
0.2
0.5
1.2
1.0
-0.6
-1.5
-0.8
-0.2
0.4
-0.2
-0.3
-4.7
-1.8
-0.6
0.1
-0.6
-0.1
0.4
0.1
0.5
-0.7
0.4
0.3
0.4
1.1
2.7
1.0
-2.3
-0.3
0.6
4.8
1.0
...
2.9
1.5
2.3
0.3
-0.1
...
0.4
-0.2
-0.4
-0.2
14.39 0.3 PrefApartment
15.33 0.3 Primerica
0.6 PureStorage
1.6 PutnmHiInco
-0.2 PzenaInvtMgmt
1.4 RE/MAX
2.1 RadianGroup
-0.6 RoyalBkCanada
-1.2 SJW Group
0.4 SafeBulkersPfdC
0.1 SafeBulkersPfdD
-0.4 SensataTech
-0.8 Square
1.8 Stantec
0.7 SteelPtrsPfdA
-1.5 STMicroelec
1.0 TRI Pointe
4.2 TableauSoftware
0.3 TaiwanSemi
0.6 Teradyne
-0.3 ThaiFund
0.6 ThomsonReuters
0.3 ThorIndustries
0.7 Torchmark
0.4 Tronox
0.5 TurningPoint
-0.9 UnitedHealth
0.4 UrstadtBiddlePfdH
-0.6 VenatorMaterials
-0.2 Vishay
3.4 VMware
-4.7 VoyaAsiaPacHiDiv
1.6 Westwood
-1.3 Yirendai
0.6 ZayoGroup
0.4 Zoetis
-0.8
0.4
2.2
0.2 AmCampus
1.5 BT Group
0.4 BuckeyePtrs
0.1 CapitolInvIV A
7.3 Volaris
-1.4 Corts JCPen JBR
0.8 EastmanKodak
-0.1 FootLocker
0.3 HCP
0.4 HarleyDavidson
... KeyEnergySvcs
-0.3 KinderMorganPfdA
0.2 Luby's
-1.0 Mallinckrodt
EmbotellAndinaA AKO.A 26.40
66.10
EmersonElectric EMR
EnelAmericas ENIA 10.95
84.60
Entergy
ETR
EssentGroup ESNT 43.49
FairIsaac
FICO 148.32
31.75
FederatedInvest FII
23.79
Ferro
FOE
15.26
FT EnhEquity FFA
62.36
Gallagher
AJG
Generac
GNRC 51.19
23.05
GeneralCable BGC
29.85
GettyRealty
GTY
Graco
GGG 127.25
32.21
GreatPlainsEner GXP
GpoSupervielle SUPV 26.11
8.82
GuggEnhEquFd GPM
43.66
HFF
HF
HannonArmstrong HASI 24.70
34.95
HawaiianElec HE
41.64
DR Horton
DHI
28.74
IndependenceHldg IHC
Ingevity
NGVT 70.45
17.80
InvescoMtg
IVR
InvescoMtgPfdB IVRpB 26.04
InvescoMtg7.5%PfdC IVRpC 25.38
JPMorganWt JPM.WS 56.87
98.18
JPMorganChase JPM
141.12
J&J
JNJ
25.17
JupaiHoldings JP
27.09
Kemet
KEM
Kemper
KMPR 58.91
26.44
KronosWorldwide KRO
66.15
Kyocera
KYO
122.80
LCI Inds
LCII
13.27
MGIC Investment MTG
MaxarTech
MAXR 62.71
McDonalds
MCD 166.02
MiXTelematics MIXT 10.29
50.33
MorganStanley MS
18.25
MS Asia
APF
11.95
NL Industries NL
NVR
NVR 2970.00
NextEraEnergy NEE 152.86
NuvDow30Dyn DIAX 17.31
17.04
NuvTaxAdDivGr JTD
64.19
OrmatTech
ORA
181.97
ParkerHannifin PH
PA REIT PfdD PEIpD 25.38
PennyMacPfdB PMTpB 25.32
Pentair
71.36
PNR
52-Wk %
Sym Hi/Lo Chg
APTS
PRI
PSTG
PCF
PZN
RMAX
RDN
RY
SJW
SBpC
SBpD
ST
SQ
STN
SPLPpT
STM
TPH
DATA
TSM
TER
TTF
TRI
THO
TMK
TROX
TPB
UNH
UBPpH
VNTR
VSH
VMW
IAE
WHG
YRD
ZAYO
ZTS
20.43
89.60
16.36
9.01
12.10
67.25
19.92
79.73
63.78
24.25
24.20
49.36
33.31
28.60
21.10
20.19
14.83
79.04
41.25
39.20
11.09
48.61
131.34
82.25
27.25
18.90
206.62
26.82
25.13
21.30
115.85
11.08
69.32
53.49
35.75
66.11
0.1
-1.8
-0.4
0.1
0.4
1.3
1.2
0.4
0.5
0.1
0.5
-0.2
-1.6
0.5
2.4
-0.1
0.5
0.9
0.9
1.1
0.1
1.6
-0.5
-0.2
-0.2
1.0
5.5
0.9
0.4
1.7
0.4
-0.2
-0.2
1.0
1.9
0.2
NYSE lows - 26
ACC
BT
BPL
CIC
VLRS
JBR
KODK
FL
HCP
HOG
KEG
KMIpA
LUB
MNK
-1.25
-1.04
-0.33
-0.49
-0.21
-0.50
-0.83
0.33
0.07
-0.20
0.11
1.95
-0.06
-0.03
-0.07
0.15
-0.15
0.29
-0.53
-0.22
-0.13
-0.36
-0.34
0.01
0.12
-0.24
-0.65
-1.77
-0.04
-1.90
-0.17
-0.11
-0.74
-0.08
0.85
-0.04
0.04
-0.03
-1.66
-0.02
0.08
-6.32
-1.91
23.06
0.31
0.03
-0.20
0.48
-0.95
1.63
0.26
-1.93
-0.24
-0.23
-0.15
-0.26
0.95
0.19
-0.27
0.12
-0.51
-0.75
-1.18
-0.12
-0.08
-0.25
0.09
0.23
-0.87
...
-0.32
-0.01
0.12
-0.06
-0.52
-0.86
3.26
-0.70
0.11
0.21
-0.19
...
-0.13
-0.86
-0.34
-0.16
-0.20
-0.67
-0.23
-0.09
-0.29
-1.20
0.42
0.37
0.01
0.30
-0.13
-0.01
-0.22
-0.77
0.19
-0.09
4.67
-0.55
-0.77
0.07
0.10
-0.15
-0.02
-0.22
-0.43
-0.17
-0.24
...
...
0.06
...
-0.13
-0.38
0.44
-0.02
0.20
0.04
0.29
-0.26
0.23
-0.21
-0.79
-0.25
0.06
-0.47
-0.49
-0.30
-1.04
-0.06
-0.26
0.11
43.46
18.05
53.04
9.76
10.67
12.91
6.40
30.58
26.11
45.25
11.75
39.42
2.43
31.51
0.7
-1.6
-1.8
-0.2
-1.7
-1.1
-0.8
0.2
1.0
2.0
-1.2
-0.8
...
0.2
Net
Sym Close Chg
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.
s
s
s
s
t
s
s
Lennar B
LEN.B 47.03 0.28
LennoxIntl
LII
180.19 -0.90
LeucadiaNatl LUK 25.65 -0.06
Level3Comms LVLT 53.47 -1.21
LibertyProperty LPT 41.45 -0.37
EliLilly
LLY
86.06 0.11
LincolnNational LNC 74.75 -0.70
LionsGate A LGF.A 30.32 -0.06
LionsGate B LGF.B 29.48 -0.07
LiveNationEnt LYV 41.41 -0.37
LloydsBanking LYG
3.57 0.01
LockheedMartin LMT 318.27 -0.67
Loews
L
48.66 -0.40
Lowe's
LOW 81.11 -0.09
LyondellBasell LYB 98.21 0.51
M&T Bank
MTB 164.14 -0.08
MGM Resorts MGM 30.49 0.80
MPLX
MPLX 34.59 -0.06
MSCI
MSCI 122.45 -1.03
Macerich
MAC 57.91 0.34
MacquarieInfr MIC 72.27 -0.32
Macy's
M
19.95 0.06
MagellanMid MMP 69.08 -0.08
MagnaIntl
MGA 53.45 0.35
Manpower
MAN 120.75 -2.05
ManulifeFin MFC 20.70 -0.07
MarathonOil MRO 13.96 0.11
MarathonPetrol MPC 56.51 0.79
Markel
MKL 1068.44 -4.81
Marsh&McLennan MMC 83.53 -0.38
MartinMarietta MLM 203.48 -2.06
Masco
MAS 38.90 -0.06
Mastercard MA 145.93 -0.29
McCormick MKC 99.17 0.04
McCormickVtg MKC.V 98.75 -0.07
McDonalds MCD 165.40 0.39
McKesson
MCK 146.41 -0.20
Medtronic
MDT 78.00 0.27
Merck
MRK 63.22 -0.12
MetLife
MET 52.38 -0.49
MettlerToledo MTD 662.22 -4.76
MichaelKors KORS 48.99 0.37
MicroFocus MFGP 32.17 -0.30
MidAmApt MAA 107.16 -0.39
MitsubishiUFJ MTU 6.51 -0.07
MizuhoFin
MFG 3.59 -0.04
MobileTeleSys MBT 10.54 0.01
MohawkIndustries MHK 258.73 1.55
MolsonCoors A TAP.A 82.71 -3.07
MolsonCoors B TAP 82.70 -0.05
Monsanto
MON 122.15 -0.27
Moody's
MCO 144.13 -0.62
MorganStanley MS
49.12 0.18
Mosaic
MOS 21.06 -0.84
MotorolaSolutions MSI 88.88 -0.48
NRG Energy NRG 26.00 -0.62
NTTDoCoMo DCM 23.51 0.09
NVR
NVR 2902.98 -42.58
NationalGrid NGG 62.10 0.46
NatlOilwell
NOV 34.92 -0.07
NatlRetailProp NNN 42.71 0.23
NewOrientalEduc EDU 90.93 -2.70
NY CmntyBcp NYCB 12.72 -0.08
NewellBrands NWL 41.94 -0.81
NewfieldExpln NFX 30.22 0.20
NewmontMining NEM 38.35 0.36
NextEraEnergy NEE 152.67 1.15
NielsenHoldings NLSN 40.00 0.38
Nike
NKE 52.00 0.63
NiSource
NI
26.45 0.08
NobleEnergy NBL 27.74 -0.16
Nokia
NOK
5.83 -0.04
NomuraHoldings NMR 5.79 -0.12
Nordstrom
JWN 41.45 1.05
NorfolkSouthern NSC 129.48 -0.32
NorthropGrumman NOC 294.32 -1.46
Novartis
NVS 86.34 -0.03
NovoNordisk NVO 49.31 -0.01
Nucor
NUE 57.11 -0.10
NuSTAREnergy NS
36.08 -1.26
OGE Energy OGE 36.92 0.20
ONEOK
OKE 56.42 0.17
OccidentalPetrol OXY 64.64 -0.13
Och-Ziff
OZM 3.25 -0.05
Olin
OLN 34.81 -0.65
OmegaHealthcare OHI 31.97 0.31
Omnicom
OMC 75.59 1.66
Oracle
ORCL 49.19 0.33
Orange
ORAN 16.30 -0.07
OrbitalATK OA 133.28 -0.16
Orix
IX
86.08 0.24
Oshkosh
OSK 86.90 -0.93
OwensCorning OC
79.40 -0.14
PG&E
PCG 57.44 4.01
PLDT
PHI 33.00 0.96
PNC Fin
PNC 134.26 -0.77
POSCO
PKX 73.19 -1.42
PPG Ind
PPG 112.96 -0.21
PPL
PPL 37.48 0.08
PVH
PVH 124.16 -0.51
PackagingCpAm PKG 116.75 -0.25
PaloAltoNtwks PANW 149.42 0.41
ParkHotels PK
28.59 -0.12
ParkerHannifin PH 181.46 0.05
ParsleyEnergy PE
26.72 -0.07
Pearson
PSO 8.74
0.54
PembinaPipeline PBA 33.82 -0.42
Pentair
PNR 70.42 -0.68
PepsiCo
PEP 112.19 -1.38
PerkinElmer PKI
70.41 -0.84
Perrigo
PRGO 88.58 1.54
PetroChina PTR 64.74 -0.39
PetroleoBrasil PBR 10.49 0.01
PetroleoBrasilA PBR.A 10.19 0.03
Pfizer
PFE 36.20 0.22
PhilipMorris PM 112.65 -0.87
Phillips66
PSX 90.63 -0.24
PinnacleFoods PF
57.02 -0.24
PinnacleWest PNW 87.76 0.49
PioneerNatRscs PXD 145.35 1.66
PlainsAllAmPipe PAA 20.81 0.09
PlainsGP
PAGP 21.48 0.21
PolarisIndustries PII 103.94 0.49
PostHoldings POST 86.30 -0.73
Potash
POT 19.16 -0.25
Praxair
PX 141.44 0.15
PrincipalFin PFG 67.57 0.25
Procter&Gamble PG
92.80 -0.34
Progressive PGR 48.55 -0.43
Prologis
PLD 64.31 -0.69
PrudentialFin PRU 108.79 -0.58
Prudential
PUK 48.02 -0.22
PublicServiceEnt PEG 48.60
...
PublicStorage PSA 215.88 -1.68
PulteGroup PHM 27.32 0.21
QuantaServices PWR 37.45 -0.39
QuestDiag
DGX 92.18 0.65
QuintilesIMS Q
99.67 0.34
RELX
RENX 21.72 -0.04
RELX
RELX 22.63 -0.03
RPM
RPM 51.64 -0.09
RalphLauren RL
86.01 -0.04
RaymondJames RJF 84.11 -1.53
Raytheon
RTN 188.65 -0.06
RealtyIncome O
57.09 0.19
RedHat
RHT 121.12 0.23
RegencyCtrs REG 65.06 0.83
RegionsFin RF
14.78 -0.18
ReinsuranceGrp RGA 143.23 0.08
RepublicServices RSG 62.99 0.23
ResMed
RMD 78.42 0.69
RestaurantBrands QSR 67.23 0.32
RiceEnergy RICE 27.81 0.49
RioTinto
RIO 49.79 -0.23
RobertHalf RHI 48.98 -0.07
Rockwell
ROK 186.27 -0.14
RockwellCollins COL 134.53 -0.15
RogersComm B RCI
53.98 0.28
Rollins
ROL 47.81 0.14
RoperTech
ROP 250.70 -1.07
52-Wk %
Sym Hi/Lo Chg Stock
MedleyCapital MCC
NaturalGrocers NGVC
NuSTAREnergy NS
NuSTAR GP
NSH
OFGBancorp
OFG
RAIT Financial RAS
RAIT FinNt
RFT
SocialCapHedWt IPOA.WS
Supervalu
SVU
3D Systems
DDD
TriangleCap
TCAP
WideOpenWest WOW
5.53
4.79
35.46
18.90
8.20
0.51
16.61
1.75
18.50
11.45
12.47
14.00
-2.1
-5.4
-3.4
-1.6
-1.2
-6.7
3.9
-2.8
3.0
-0.2
-9.1
0.3
NYSE Arca highs - 81
AdvShDorseyADR AADR
ColumbiaIndiaInfr INXX
CSAxela3xLgBrent UBRT
CS FI LC Grwth FLGE
DBAgricLongETN AGF
DiamondHillVal DHVW
DirexCSIChinaInt CWEB
DirexHlthcrBull3 CURE
DirexHmbldrBull3 NAIL
ETFMG VideoGame GAMR
EcoLogicalStrat HECO
FidelityMomFactor FDMO
FT Dow30EW EDOW
FT DJ SelMicro FDM
FT FinlsAlpDx FXO
GlbXSciBetaJapan SCIJ
GSAccessHYCorpBd GHYB
GSActiveBetaUSLC GSLC
GuggS&P500PureGr RPG
GuggS&P400PrGrwth RFG
GuggS&P500Top50 XLG
HullTacticalUS HTUS
IQ AustraliaSC KROO
IQ50%HdgFTSEIntl HFXI
IQLeadersGTAATrkr QGTA
InnovatorIBD50Fd FFTY
iPathCBOE S&P500BW BWV
iShCoreS&P500ETF IVV
iShCurrHdgNikk400 HJPX
iShCurrHdgMSCICda HEWC
iShUSHealthcare IYH
iShUS Finls
IYF
iShU.S.Technology IYW
iShiBondsDec2027Cp IBDS
iShMSCIPacificxJp EPP
iShMSCIPhilippines EPHE
iShMorningstarLC JKD
iShMornLCGrowth JKE
iShRussell1000Gwth IWF
iShRussellTop200Gr IWY
iShRussellTop200 IWL
iShS&P100
OEF
iShS&P500Growth IVW
iShGlobalHealthcr IXJ
PwrShCEF Incm PCEF
PwrShDynBldg&Con PKB
PwrShDynSemicon PSI
58.38 -1.0
15.20 0.5
113.51 8.0
205.70 0.1
13.46 -21.7
30.45 ...
56.62 -3.0
48.00 4.0
61.10 -0.3
46.00 -0.1
42.74 0.4
29.92 0.1
20.75 0.2
47.40 -0.6
30.21 -0.2
31.26 0.9
50.18 0.5
50.80 0.1
102.10 0.1
147.41 0.1
181.49 0.3
27.92 0.1
18.85 0.4
21.37 -0.6
23.97 0.2
33.42 -0.4
76.89 ...
257.25 0.1
29.04 0.9
26.06 0.8
175.32 1.2
114.28 -0.4
154.88 ...
25.06 0.1
47.54 0.3
37.92 0.5
153.75 0.2
149.37 0.2
128.06 0.1
69.47 0.1
58.74 0.1
113.37 0.1
146.69 0.2
114.21 0.8
24.24 ...
32.30 -0.2
52.07 0.2
Stock
Net
Sym Close Chg
s RoyalBkCanada RY
79.62
RoyalBkScotland RBS
7.28
RoyalCaribbean RCL 127.22
RoyalDutchA RDS.A 60.70
RoyalDutchB RDS.B 62.26
SAP
SAP 111.34
S&P Global SPGI 161.68
SINOPECShanghai SHI
62.27
SK Telecom SKM 26.17
SLGreenRealty SLG 102.01
Salesforce.com CRM 96.72
Sanofi
SNY 49.59
Sasol
SSL 29.13
Scana
SCG 49.13
Schlumberger SLB 66.50
SchwabC
SCHW 43.39
ScottsMiracleGro SMG 99.15
SealedAir
SEE 44.27
SemicondctrMfg SMI
6.50
SempraEnergy SRE 114.04
s SensataTech ST
49.16
ServiceCorp SCI
34.34
ServiceMaster SERV 46.41
ServiceNow NOW 122.75
ShawComm B SJR 22.11
SherwinWilliams SHW 382.68
ShinhanFin SHG 43.60
Shopify
SHOP 96.21
SimonProperty SPG 167.10
SmithAO
AOS 60.72
Smith&Nephew SNN 38.09
Smucker
SJM 104.65
Snap
SNAP 16.09
SnapOn
SNA 152.25
SOQUIMICH SQM 59.96
Sony
SNE 36.95
Southern
SO
51.14
SoCopper
SCCO 43.48
SouthwestAirlines LUV 58.73
SpectraEnerPtrs SEP 43.97
SpectrumBrands SPB 110.88
SpiritAeroSys SPR 79.07
Sprint
S
7.09
s Square
SQ
32.69
StanleyBlackDck SWK 156.64
StateStreet STT 97.15
Statoil
STO 20.40
Steris
STE 90.79
s STMicroelec STM 20.07
Stryker
SYK 148.79
SumitomoMits SMFG 7.82
SunCommunities SUI
89.00
SunLifeFinancial SLF 39.47
SuncorEnergy SU
33.74
SunTrustBanks STI
59.17
SynchronyFin SYF 30.98
Syngenta
SYT 92.01
Sysco
SYY 54.83
TAL Education TAL 35.07
TE Connectivity TEL 87.73
Telus
TU
36.03
Ternium
TX
30.79
TIM Part
TSU 19.08
TJX
TJX 71.80
s TableauSoftware DATA 79.02
s TaiwanSemi TSM 41.25
TargaResources TRGP 45.38
Target
TGT 60.17
TataMotors TTM 32.82
TechnipFMC FTI
26.04
TeckRscsB
TECK 22.48
TelecomArgentina TEO 31.45
TelecomItalia TI
9.03
TelecomItalia A TI.A
7.19
TeledyneTech TDY 161.53
Teleflex
TFX 240.76
TelefonicaBras VIV 16.05
Telefonica
TEF 10.51
TelekmIndonesia TLK 32.30
Tenaris
TS
26.94
s Teradyne
TER 39.07
TevaPharm TEVA 14.74
Textron
TXT 53.07
ThermoFisherSci TMO 188.77
s ThomsonReuters TRI
48.06
s ThorIndustries THO 129.82
3M
MMM 217.75
Tiffany
TIF
94.94
TimeWarner TWX 101.46
Toll Bros
TOL 43.04
s Torchmark
TMK 81.89
Toro
TTC 61.95
TorontoDomBk TD
56.84
Total
TOT 53.96
TotalSystem TSS 67.40
ToyotaMotor TM 123.31
TransCanada TRP 50.53
TransDigm
TDG 266.00
TransUnion TRU 49.66
Travelers
TRV 128.65
TurkcellIletism TKC
9.59
TurquoiseHill TRQ
3.35
Twitter
TWTR 18.28
TylerTech
TYL 175.62
TysonFoods TSN 70.94
UBS Group UBS 17.24
UDR
UDR 38.77
UGI
UGI 47.68
US Foods
USFD 27.33
UltraparPart UGP 24.89
UnderArmour A UAA 16.31
UnderArmour C UA
15.11
Unilever
UN
60.98
Unilever
UL
59.49
UnionPacific UNP 110.57
UnitedContinental UAL 67.51
UnitedMicro UMC 2.63
UPS B
UPS 117.68
UnitedRentals URI 143.34
US Bancorp USB 53.88
US Steel
X
26.63
UnitedTech UTX 119.36
s UnitedHealth UNH 203.89
UniversalHealthB UHS 108.46
UnumGroup UNM 52.00
VEREIT
VER
8.22
VF
VFC 64.59
Visa
V
107.54
VailResorts MTN 218.99
Vale
VALE 10.26
ValeroEnergy VLO 77.62
Vantiv
VNTV 69.02
VarianMed
VAR 104.20
Vedanta
VEDL 20.40
VeevaSystems VEEV 59.58
Ventas
VTR 63.20
Verizon
VZ
48.40
VistraEnergy VST 19.01
s VMware
VMW 115.60
VornadoRealty VNO 78.28
VoyaFinancial VOYA 39.50
VulcanMaterials VMC 117.01
WABCO
WBC 148.04
WEC Energy WEC 65.50
W.P.Carey
WPC 69.28
Wabtec
WAB 75.34
Wal-Mart
WMT 85.98
WasteConnections WCN 70.18
WasteMgt
WM 76.84
Waters
WAT 180.92
Wayfair
W
67.76
WellCareHealth WCG 174.03
WellsFargo WFC 53.19
Welltower
HCN 68.19
WestPharmSvcs WST 93.00
WestarEnergy WR 52.57
WesternGasEquity WGP 39.39
WesternGasPtrs WES 50.68
WesternUnion WU 19.70
WestlakeChem WLK 83.65
0.32
-0.07
-0.17
-0.17
-0.33
-0.50
-0.78
-0.18
-0.44
-0.86
-0.43
-0.04
-0.32
-0.04
-0.30
-1.08
-0.60
-0.38
-0.09
-0.42
-0.09
0.05
-0.15
1.35
0.12
-1.39
-0.53
-0.77
1.77
-0.49
0.08
-1.31
0.02
0.23
-1.49
-0.10
...
-0.22
-0.15
-0.41
0.65
-0.53
-0.06
-0.53
-2.01
-1.39
-0.13
0.12
-0.03
1.50
-0.12
1.00
0.10
0.11
-0.63
-0.52
0.01
0.08
-1.03
-0.54
0.09
-0.87
0.09
0.63
0.69
0.36
-0.31
0.02
-0.46
-0.51
-0.52
0.10
-0.02
0.02
-0.42
1.73
-0.01
-0.11
-0.24
-0.31
0.44
0.03
-0.27
-2.51
0.78
-0.70
-0.97
0.25
0.34
0.28
-0.16
-0.21
0.09
-0.52
-0.28
-0.11
0.38
2.38
0.25
-0.17
0.37
-0.01
-0.05
-3.96
0.39
-0.04
0.01
0.36
0.04
0.07
0.06
0.13
-0.20
-0.35
-1.52
0.56
-0.02
-0.66
-2.45
-0.38
-0.04
0.35
10.69
2.86
-0.42
-0.04
0.50
-0.76
2.57
-0.24
0.20
-0.79
1.37
-0.42
0.93
0.06
0.31
0.02
0.45
-0.65
-0.19
-0.32
-1.69
0.47
-0.30
0.43
0.24
0.67
0.15
-3.72
-1.97
6.11
-0.61
0.12
-2.53
0.44
-0.04
-0.24
-0.06
-0.59
52-Wk %
Sym Hi/Lo Chg Stock
PwrShDynLC Grwth PWB
PwrShGlbClEngy PBD
PwrShRussMC EW EQWM
PwrShRussMCGrw PXMG
PwrShS&P500HiBeta SPHB
ProShHdgReplic HDG
ProShShtVIXST SVXY
ProShrUltraDow30 DDM
ProShrUltraQQQ QLD
ProShUltDow30 UDOW
SPDRS&P500Growth SPYG
SPDRS&PTechHardwr XTH
SPDRGenderDivers SHE
SPDRSSgAIncmAllctn INKM
SchwabUS LC Grw SCHG
SPDR DJIA Tr DIA
SPDR S&P 500 SPY
UBS FIEnhLCGrw FBGX
VanEckNDRCMGLg LFEQ
VanEckSemiconduc SMH
VanEckVietnam VNM
VangdMegaCap MGC
VangdS&P500 Grw VOOG
VelocityShVIXShrt XIVH
WBITacticalLCS WBIL
WBITacticalSMG WBIA
WisdTrCBOES&P500 PUTW
WisdTrGlbxUSDiv DXUS
WisdTrIntlHdgQual IHDG
WisdTrJpnHdgQuDiv JHDG
WisdTrUSEarn500 EPS
WisdTrUSLCValueFd EZY
XtrkrsMSCIEAFE DBEF
XtrkrsMSCIEurope DBEU
40.00
13.23
45.92
39.50
40.33
45.17
105.63
113.85
67.37
75.55
31.70
79.62
70.91
33.40
67.27
229.96
255.52
205.20
26.23
97.75
15.41
87.78
131.59
66.41
25.91
24.72
29.60
26.60
31.30
28.07
88.86
77.21
31.62
28.74
0.1
0.4
0.3
0.3
-0.5
-0.1
-0.2
0.4
0.2
0.6
0.2
0.3
0.1
...
0.2
0.2
0.1
0.2
...
...
-0.7
0.1
0.1
...
0.2
-0.4
...
...
0.1
0.7
0.4
0.3
...
...
VolitionRX
Stock
Net
Sym Close Chg
WestpacBanking WBK 26.11
WestRock
WRK 59.60
Weyerhaeuser WY 35.03
WheatonPrecMetals WPM 19.89
Whirlpool
WHR 176.34
Williams
WMB 29.92
WilliamsPartners WPZ 39.39
Wipro
WIT 5.37
WooriBank WF
45.56
Wyndham
WYN 109.63
XPO Logistics XPO 64.64
XcelEnergy XEL 48.72
Xerox
XRX 32.75
Xylem
XYL 63.23
YPF
YPF 22.80
YumBrands YUM 76.19
YumChina
YUMC 42.68
ZTO Express ZTO 14.96
s ZayoGroup ZAYO 35.17
ZimmerBiomet ZBH 119.93
s Zoetis
ZTS 65.81
NASDAQ
s
s
s
s
s
s
t
t
s
t
s
s
s
s
AGNC Invt
AGNC 21.85
Ansys
ANSS 129.69
ASML
ASML 176.34
Abiomed
ABMD 172.47
ActivisionBliz ATVI 61.66
AdobeSystems ADBE 150.38
AkamaiTech AKAM 50.58
AlexionPharm ALXN 143.16
AlignTech
ALGN 194.27
Alkermes
ALKS 51.48
AlnylamPharm ALNY 118.70
Alphabet A GOOGL 1011.00
Alphabet C GOOG 992.18
Altaba
AABA 66.78
Amazon.com AMZN 1009.13
Amdocs
DOX 66.10
Amerco
UHAL 367.84
AmericanAirlines AAL 52.07
Amgen
AMGN 186.19
AnalogDevices ADI 88.94
Apple
AAPL 160.47
AppliedMaterials AMAT 55.13
ArchCapital ACGL 99.59
Atlassian
TEAM 39.75
Autodesk
ADSK 118.72
ADP
ADP 113.72
BOK Fin
BOKF 88.67
Baidu
BIDU 270.32
BankofOzarks OZRK 45.14
Biogen
BIIB 344.47
BioMarinPharm BMRN 93.54
Bioverativ
BIVV 60.07
BlueBuffaloPet BUFF 28.00
bluebirdbio BLUE 140.20
BrighthouseFin BHF 60.63
Broadcom
AVGO 242.62
CA
CA
33.59
CBOE Holdings CBOE 109.53
CDK Global CDK 64.73
CDW
CDW 68.54
CH Robinson CHRW 76.02
CME Group CME 136.19
CSX
CSX 54.23
CadenceDesign CDNS 41.81
Carlyle
CG
24.05
Celgene
CELG 138.86
Cerner
CERN 72.51
CharterComms CHTR 357.84
CheckPointSftw CHKP 116.95
ChinaLodging HTHT 132.73
CincinnatiFin CINF 75.93
Cintas
CTAS 151.05
CiscoSystems CSCO 33.60
CitrixSystems CTXS 81.99
Cognex
CGNX 120.74
CognizantTech CTSH 73.97
Coherent
COHR 254.89
Comcast A CMCSA 36.47
CommerceBcshrs CBSH 56.48
CommScope COMM 31.66
Copart
CPRT 36.39
CoStarGroup CSGP 283.72
Costco
COST 158.38
Ctrip.com
CTRP 54.61
DISH Network DISH 48.85
DentsplySirona XRAY 59.50
DiamondbackEner FANG 102.61
DiscoveryComm B DISCB 22.50
DiscoveryComm A DISCA 19.16
DiscoveryComm C DISCK 18.09
DollarTree
DLTR 91.53
E*TRADE
ETFC 43.78
EastWestBancorp EWBC 57.09
eBay
EBAY 37.49
ElbitSystems ESLT 151.44
ElectronicArts EA 115.98
Equinix
EQIX 461.58
Ericsson
ERIC 5.90
Exelixis
EXEL 28.30
Expedia
EXPE 149.14
ExpeditorsIntl EXPD 58.02
ExpressScripts ESRX 57.21
F5Networks FFIV 116.28
Facebook
FB 176.11
Fastenal
FAST 47.94
FifthThirdBncp FITB 27.97
Fiserv
FISV 126.63
Flex
FLEX 17.60
FlirSystems FLIR 42.50
Fortinet
FTNT 39.26
Gaming&Leisure GLPI 36.68
Garmin
GRMN 55.20
Gentex
GNTX 20.34
GileadSciences GILD 80.24
Goodyear
GT
33.03
Grifols
GRFS 21.51
HD Supply
HDS 36.11
Hasbro
HAS 96.56
HenrySchein HSIC 82.45
Hologic
HOLX 36.81
JBHunt
JBHT 102.43
HuntingtonBcshs HBAN 13.81
IAC/InterActive IAC 125.15
IdexxLab
IDXX 160.00
IHSMarkit
INFO 43.76
INC Research INCR 54.30
IPG Photonics IPGP 200.98
IcahnEnterprises IEP
55.85
Icon
ICLR 113.77
Illumina
ILMN 206.48
Incyte
INCY 115.64
Intel
INTC 39.79
InteractiveBrkrs IBKR 47.40
Intuit
INTU 145.50
IntuitiveSurgical ISRG 355.00
IonisPharma IONS 63.85
JD.com
JD
39.59
JackHenry
JKHY 104.35
JazzPharma JAZZ 140.50
JetBlue
JBLU 20.18
KLA Tencor KLAC 108.01
KraftHeinz
KHC 77.54
LKQ
LKQ 37.41
LamResearch LRCX 194.55
LamarAdvertising LAMR 68.69
LibertyBroadbandA LBRDA 92.98
LibertyBroadbandC LBRDK 93.99
LibertyGlobal A LBTYA 32.47
LibertyGlobal C LBTYK 31.51
LibertyLiLAC A LILA 21.91
LibertyLiLAC C LILAK 22.20
LibertyQVC B QVCB 22.53
LibertyQVC A QVCA 22.92
LibertyVenturesA LVNTA 57.88
LibertyFormOne A FWONA 38.41
LibertyFormOne C FWONK 40.12
52-Wk %
Sym Hi/Lo Chg Stock
VNRX
Stock
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
TSRO 118.53 -1.78
0.05 LibertyBraves A BATRA 24.72 -0.11 OldDomFreight ODFL 107.95 -0.30 TESARO
0.47 LibertyBraves C BATRK 24.68 -0.06 ON Semi
ON
19.60 0.01 T-MobileUS TMUS 60.94 -0.03
0.01 LibertySirius A LSXMA 43.41 0.16 OpenText
OTEX 33.70 0.03 TRowePrice TROW 94.73 -0.09
-0.11 LibertySirius B LSXMB 42.90 -0.23 PTC
PTC 60.26 0.24 TakeTwoSoftware TTWO 103.90 -0.88
TSLA 355.75 5.15
-0.43 LibertySirius C LSXMK 43.34 0.15 Paccar
PCAR 72.70 -0.01 Tesla
-0.02 LincolnElectric LECO 94.44 -0.43 PacWestBancorp PACW 46.62 -1.47 TexasInstruments TXN 94.27 0.04
TractorSupply
TSCO 59.10 0.46
-0.07 LogitechIntl LOGI 36.72 0.25 Paychex
PAYX 62.90 -0.55
TRMB 41.05 0.07
-0.09 LogMeIn
LOGM 115.30 -1.20 PayPal
PYPL 66.67 -0.64 s Trimble
21stCenturyFoxA
FOXA 26.88 0.19
-0.68 lululemon
LULU 58.93 0.73 People'sUtdFin PBCT 18.09 -0.19
-0.39 MarketAxess MKTX 191.39 -1.00 PilgrimPride PPC 29.64 0.31 21stCenturyFoxB FOX 26.22 0.12
UltaBeauty
ULTA
202.28 8.58
-2.10 Marriott
MAR 115.04 0.29 Priceline
PCLN 1934.53 -1.02
UltimateSoftware ULTI 193.24 -1.21
0.23 MarvellTech MRVL 18.36 0.09 Qiagen
QGEN 34.26 -0.26
UniversalDisplay OLED 136.95 1.45
-0.34 MatchGroup MTCH 26.08 0.46 Qorvo
QRVO 72.27 -0.26 VEON
VEON 4.02 -0.01
-2.73 s MaximIntProducts MXIM 49.86 0.36 Qualcomm
QCOM 52.41 0.03
VRSN 108.55 0.09
0.04 MelcoResorts MLCO 23.28 -0.43 RandgoldRscs GOLD 97.28 -1.12 VeriSign
VeriskAnalytics
VRSK 84.31 0.24
-0.02 MercadoLibre MELI 234.79 1.79 RegenPharm REGN 442.56 -3.12
VertxPharm
VRTX 155.05 0.35
0.02 MicrochipTech MCHP 91.70 -0.19 RossStores ROST 63.24 0.33
Viacom A
VIA 33.95 0.20
-0.33 MicronTech MU
40.39 -1.10 RoyalGold
RGLD 87.59 -0.01 Viacom B
VIAB 26.57 0.31
0.66 Microsemi
MSCC 51.28 -0.16 Ryanair
RYAAY 106.37 -0.27 Vodafone
VOD 28.99 -0.01
0.42 Microsoft
MSFT 77.59 -0.06 SBA Comm SBAC 148.46 -0.65 WPP
WPPGY 92.77 1.41
0.10 Middleby
MIDD 120.80 -1.85 SEI Investments SEIC 63.32 -0.40 t WalgreensBoots WBA 67.40 0.09
Momo
MOMO 33.35 -1.03 Sina
SINA 114.26 -0.73 Weibo
WB 98.18 -0.89
Mondelez
MDLZ 41.13 -0.42 s SS&C Tech SSNC 41.56 -0.02 WesternDigital WDC 85.78 -1.05
SIVB 181.64 -3.56 s WillisTwrsWatson WLTW 158.94 -0.01
0.09 MonsterBeverage MNST 56.52 0.30 SVB Fin
WDAY 107.62 0.39
MYL 38.54 0.36 ScrippsNetworks SNI
83.24 -0.13 Workday
-1.62 Mylan
NXPI 115.15 0.21 Seagate
STX 33.96 -0.53 WynnResorts WYNN 146.40 -0.41
-0.25 NXP Semi
XLNX 72.37 -0.29
NDAQ 74.71 0.60 SeattleGenetics SGEN 64.08 1.19 Xilinx
1.92 Nasdaq
YNDX 31.75 -0.14
SHPG 152.05 -3.23 Yandex
0.18 NatlInstruments NATI 44.21 -0.23 Shire
ZBRA 110.88 0.72
NTAP 44.08 0.36 SignatureBank SBNY 123.72 -1.02 ZebraTech
-0.08 NetApp
Zillow
A
ZG
41.51 0.41
NTES 279.85 -2.73 SiriusXM
SIRI
5.71 0.01
-0.15 Netease
Zillow
C
Z
41.62 0.48
s
Netflix
NFLX
199.48
-3.20
Skyworks
SWKS
107.35
0.37
2.32
ZionsBancorp
ZION
45.99 -0.80
SPLK 63.97 -0.30
0.90 NewsCorp A NWSA 13.62 -0.06 Splunk
NewsCorp
B
NWS
13.95
-0.10
Starbucks
SBUX
54.51
-0.40
0.73
NDSN 123.11 -0.11 SteelDynamics STLD 36.17
...
-3.19 Nordson
SRCL 71.27 1.20 CheniereEnergy LNG 47.94 0.22
1.65 NorthernTrust NTRS 91.10 -0.82 Stericycle
SYMC 32.01 -0.05 CheniereEnerPtrs CQP 28.90 -0.29
0.18 NorwegianCruise NCLH 58.61 -0.31 Symantec
-1.26 s NVIDIA
SNPS 83.72 -0.35 CheniereEnHldgs CQH 25.93 0.10
NVDA 197.75 -0.18 Synopsys
2.79 OReillyAuto ORLY 212.01 2.99 TD Ameritrade AMTD 47.22 -0.55 ImperialOil
IMO 31.90 0.37
0.49
0.08
-0.20
4.29
0.11
0.59
0.09
Tuesday, October 17, 2017
0.67
0.20
MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR
5YR
-0.48 Type
-0.86
-1.38
Savings
0.11 0.07 0.07 0.12 0.20 0.35 0.48 0.47 0.93
-2.50
0.21 0.07 0.07 0.14 0.22 0.39 0.52 0.50 0.98
-0.26 Jumbos
8.79
-1.12
0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.00
0.91 Savings
0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.02 0.01
-1.12 Jumbos
-3.10
0.39
-4.05
-0.12
-0.17
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-0.03
0.25 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
-1.31 of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
-1.33 not an indication of financial strength or weakness. Information is believed to be reliable, but not
1.39
guaranteed.
-0.16
-0.05
2.15
Yield
Bank/rank
Yield
0.43 Bank/rank
-4.76 Phone number
Minimum
(%)
Phone number
Minimum (%)
-1.12
-2.18
-0.49 DollarSavingsDirect /4
M.Y. Safra Bank, FSB /4
$1
1.40
$5,000
1.37
-0.17
(212) 652-7200
0.06 (866) 395-8693
VirtualBank /4
$100
1.35
$10,000
1.36
0.38 CIT Bank /4
0.55 (855) 462-2652
(877) 998-2265
-0.20
Barclays /4
First Internet Bank of Indiana /4 $1,000
$0
1.30
1.35
1.01
(888) 873-3424
-0.14 (888) 720-8756
-0.52
-0.22
0.12 M.Y. Safra Bank, FSB /4
ableBanking,adivisionofNortheastBank/4 $1,000
$5,000
0.30
1.70
-2.50 (212) 652-7200
(888) 426-2253
-0.43
VirtualBank /4
CD Bank /4
$10,000
0.15
$10,000
1.65
-0.86
(888) 201-8185
-0.18 (877) 998-2265
0.31 AloStar Bank of Commerce /4 $1,000
Goldman Sachs Bank USA /5
0.10
$500
1.65
0.01 (877) 738-6391
(855) 730-7283
0.75
0.10
0.04
Congressional Bank /4
$10,000
0.15
$25,000
1.85
-0.42 VirtualBank /4
(301) 978-3290
-0.71 (877) 998-2265
-1.54 Applied Bank /5
First Internet Bank of Indiana /4 $1,000
$1,000
0.05
1.81
-0.28 (800) 616-4605
(888) 873-3424
-1.37
VirtualBank
/4
$10,000
1.81
-1.50
(877) 998-2265
0.23
-0.01
-0.72
0.65 M.Y. Safra Bank, FSB /4
Goldman Sachs Bank USA /5
$500
2.40
$5,000
1.15
-0.85 (212) 652-7200
(855) 730-7283
0.40
Barclays /4
$5,000
1.01
$0
2.35
0.49 EverBank /3
(888) 720-8756
1.59 (855) 228-6755
0.68 First Internet Bank of Indiana /4 $1,000
Synchrony Bank /5
1.00
$25,000
2.35
-0.40
(888) 873-3424
(800) 903-8154
-0.57
-0.01
- Minimum is $100,000
-0.10
0.32
-0.36
0.05
M.Y. Safra Bank, FSB /4
1.30
1.37
0.13 ableBanking,adivisionofNortheastBank/4
0.29 (877) 505-1933
(212) 652-7200
-0.01 M.Y. Safra Bank, FSB /4
VirtualBank /4
1.26
1.36
0.01
(212) 652-7200
(877) 998-2265
0.63
First Internet Bank of Indiana /4
1.35
1.25
-0.57 BBVA Compass /3
0.54 (800) COMPASS
(888) 873-3424
0.91
0.79
-0.11 M.Y. Safra Bank, FSB /4
ableBanking,adivisionofNortheastBank/4
1.70
0.30
0.33
(888) 426-2253
1.45 (212) 652-7200
My e-BAnC by BAC Florida Bank /4
1.65
0.22
-0.05 USAA /5
-1.45 (800) 583-8295
(855) 512-0989
2.29
VirtualBank /4
M.Y. Safra Bank, FSB /4
0.15
1.63
-0.05
(212) 652-7200
-1.91 (877) 998-2265
0.25
-0.96
0.03 VirtualBank /4
First Internet Bank of Indiana /4
1.81
0.15
-0.32 (877) 998-2265
(888) 873-3424
0.76
Applied Bank /5
VirtualBank /4
0.05
1.81
1.45
(877) 998-2265
2.70 (800) 616-4605
-0.08 Citizens Trust Bank /4
My e-BAnC by BAC Florida Bank /4
1.81
0.01
-0.62 (404) 659-5959
(855) 512-0989
...
-0.06
0.68
Synchrony Bank /5
1.15
2.35
-0.11 M.Y. Safra Bank, FSB /4
(800) 903-8154
-0.05 (212) 652-7200
2.19 Luana Savings Bank /4
First Internet Bank of Indiana /4
2.30
1.05
-0.07 (800) 666-2012
(888) 873-3424
-0.67
EverBank
/3
EverBank
/3
1.01
2.30
-0.62
(855) 228-6755
-0.12 (855) 228-6755
-0.05
-0.86 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
-0.68 are based on method of compounding and rate stated for the lowest required opening deposit to
-0.89 earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
0.40 month, three (3) of which may be checks. Rates are subject to change.
-0.47
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
0.12
Internet: www.bankrate.com
0.08
NYSE AMER
BANKRATE.COM® MMA, Savings and CDs
Average Yields of Major Banks
National average
Weekly change
Consumer Savings Rates
High yield savings
Money market and savings account
Six-month CD
One-month CD
One-year CD
Two-month CD
Two-year CD
Three-month CD
Five-year CD
High yield jumbos
Money market and savings account
Six-month CD
One-month CD
One-year CD
Two-month CD
Two-year CD
Three-month CD
Five-year CD
52-Wk %
Sym Hi/Lo Chg Stock
2.28 -3.4 FidelityNasdComp ONEQ 261.15 0.1
24.98 -0.2
FT DorseyDyn5 FVC
29.66 0.1
33.00 1.4
72.93 0.3
FormFactor
FORM 17.85 1.1
196.04 0.5
GRAVITY
GRVY 54.00 17.3
12.38 -0.9 GencorIndustries GENC 18.45 ...
15.45 6.2 GilatSatellite
6.68 -0.9
GILT
55.28 0.2 GladstonePfd2024 GLADN 25.94 1.1
65.98 -0.6 GladstoneLand LAND 14.15 0.7
8.37 0.8 GlbXLongevityThem LNGR 19.85 1.0
31.80 -0.5 GlbX Robotics&AI BOTZ 23.08 0.9
274.97 -0.9 GluMobile
4.71 4.8
GLUU
53.82 0.5 Hardinge
HDNG 15.88 -2.9
348.65 2.6 HeritageFin
HFWA 30.50 -0.2
145.40 -2.2 HollysysAuto HOLI
22.21 3.7
32.59 1.5 HowardBancorp HBMD 22.30 -1.6
84.10 0.3 IPG Photonics IPGP 201.22 1.2
20.80 1.0 Ignyta
RXDX 14.75 7.1
209.98 ... Insulet
PODD 61.84 2.0
26.75 -2.6 IntegratedDevice IDTI
28.12 0.4
26.71 0.7 IonisPharma
64.19 4.4
IONS
121.99 0.5 iShMSCIUSAESGOpt ESGU 56.02 0.1
64.15 ... iShPHLXSemicond SOXX 165.86 -0.1
23.14 -0.6 Itron
79.95 -0.1
ITRI
92.22 -0.5 KingoldJewelry KGJI
2.15 0.5
9.83 ... KraneCSIChInt KWEB 60.52 -1.6
15.57 0.9 LamResearch LRCX 195.49 1.1
232.50 0.3 MCBCHoldings MCFT 22.78 ...
61.42 -0.1 MDC Partners MDCA 11.75 4.0
53.74 0.9 MGPIngredients MGPI 65.08 -1.7
176.13 0.9 MKS Instrum MKSI 99.80 0.8
Nasdaq highs - 95 FTFonarNasdSemicon FTXL
FONR
AdvAcceltrApp AAAP
AlignTech
ALGN
AmerSoftware AMSWA
AmtechSystems ASYS
AppliedMaterials AMAT
AspenTech
AZPN
AudioCodes
AUDC
AxcelisTechs
ACLS
Baidu
BIDU
BeaconRoof
BECN
Biogen
BIIB
bluebirdbio
BLUE
Brooks Auto
BRKS
CabotMicro
CCMP
ChefsWarehouse CHEF
ChurchillDowns CHDN
Citizens&Northern CZNC
ClearBr AC Grw CACG
Cognex
CGNX
ConnecticutWater CTWS
DavisFinl
DFNL
DollarTree
DLTR
DraperOakwood DOTA
ElectroScientific ESIO
EnstarGroup
ESGR
ExlService
EXLS
FS Bancorp
FSBW
Facebook
FB
Net
Sym Close Chg
52-Wk %
Sym Hi/Lo Chg Stock
MaximIntProducts MXIM
MiddlesexWater MSEX
NMI Holdings NMIH
Netflix
NFLX
NorthwestPipe NWPX
NuvNasd100Dyn QQQX
NVIDIA
NVDA
Overstock
OSTK
Paylocity
PCTY
PeregrinePharmPf PPHMP
Potlatch
PCH
PwrShDWANasdMom DWAQ
PwrShQQQ 1 QQQ
PreformedLine PLPC
Pro-Dex
PDEX
ProgressSoftware PRGS
ProShUltPrQQQ TQQQ
RepublicBcpKYA RBCAA
RigelPharm
RIGL
SS&C Tech
SSNC
Sigmatron
SGMA
Sohu.com
SOHU
SolarEdgeTech SEDG
SprottFocus
FUND
TexasRoadhouse TXRH
Trimble
TRMB
UltraClean
UCTT
UTStarcom
UTSI
VangdRuss1000Grw VONG
VSInverseVIXSTerm XIV
WillametteValley WVVI
WillisTwrsWatson WLTW
49.89
46.33
13.90
204.38
21.11
23.23
198.90
35.60
50.98
23.76
52.82
100.79
149.06
75.40
8.00
41.49
122.75
41.84
4.29
41.92
9.24
70.86
31.00
7.85
52.02
41.31
34.12
3.17
131.30
109.98
8.77
159.60
0.7
1.6
3.0
-1.6
-2.0
0.8
-0.1
11.6
1.6
2.4
-0.4
-0.2
0.1
-0.9
...
0.1
0.4
-0.7
9.3
...
3.2
-3.3
0.8
0.1
1.4
0.2
0.8
4.0
0.1
-0.1
1.9
...
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
WisdTrUSQltyDiv DGRW 38.88 0.4 ImprimisPharm IMMY
INOD
XOMA
XOMA 23.72 7.0 Innodata
INSY
5.73 9.6 InsysTherap
Xunlei
XNET
iShMSCIQatarCapped QAT
JMU
JMU
MYndAnalytics MYND
ADOMANI
ADOM 4.77 -25.7 NabrivaTherap NBRV
1.70 -10.3 NuCana
AcelRxPharm ACRX
NCNA
1.95 2.0 OpGenWt
AchieveLifeSci ACHV
OPGNW
0.64 -8.1 OrganovoHoldings ONVO
Aemetis
AMTX
AlcentraCapital ABDC 10.19 -0.5 PrimoWater
PRMW
5.02 -0.6 ProShUltraProShQQQ SQQQ
AquaMetals
AQMS
ArgosTherap
0.16 -2.5 Radisys
ARGS
RSYS
AstroNova
ALOT 12.40 ... RealIndustry
RELY
4.90 -7.0 RennovaHealth RNVA
BorqsTechnologies BRQS
CAS MedSys CASM 0.74 0.9 RexEnergy
REXX
2.87 -7.7 RitterPharm
CUI Global
CUI
RTTR
1.82 -3.1 RosettaGenmcs ROSG
CardiomePharma CRME
0.99 -6.3 SearsHoldings SHLD
ConcordiaIntl CXRX
0.13 -7.5 ShiftPixy
DexteraSurgical DXTR
PIXY
DiscoveryComm A DISCA 18.61 0.5 TandemDiabetes TNDM
DiscoveryComm C DISCK 17.58 0.2 TileShop
TTS
ElbitImaging
EMITF 2.60 -0.6 Trevena
TRVN
7.40 0.3 US Gold
EndoIntl
ENDP
USAU
8.54 -4.6 Valeritas
EnergyXXIGulfCoast EXXI
VLRX
ExpressScripts ESRX 56.62 0.7 VS2xVIXMedTerm TVIZ
FFBW
FFBW 11.30 -2.1 VS2xVIXShortTerm TVIX
12.13 -2.2 VSVIXShortTerm VIIX
FTD
FTD
11.45 -2.1 VeraBradley
FrontierComm FTR
VRA
3.80 -9.3 Vivus
FulgentGenetics FLGT
VVUS
8.06
-4.6
GenMarkDiagn GNMK
WalgreensBoots WBA
I-AM Capital Wt IAMXW 0.26 ... WheelerREITPfdD WHLRD
Nasdaq lows - 58
1.40 1.4
1.25 ...
7.27 1.5
15.04 -0.8
1.12 -2.6
2.81 -6.0
6.51 -6.5
13.05 -1.1
0.03 39.3
1.32 2.7
10.47 0.2
24.92 -0.3
1.23 -2.3
1.45 -3.0
1.35 -1.4
2.00 -6.9
0.32 1.9
0.81 -10.0
5.48 -3.3
2.13 -2.1
2.33 -3.1
8.20 -1.8
1.83 -13.6
1.57 -4.2
2.04 1.1
11.24 -0.6
8.78 0.3
14.64 0.3
7.51 0.7
0.78 -3.7
66.92 0.1
21.22 -2.7
NYSE Arca lows - 12 Dividend Changes
19.47 -0.3
PathS&P500VIXMT VXZ
iPathS&P500VIXST VXX
DirexTechBear3 TECS
ProShShtDow30 DOG
ProShShortQQQ PSQ
ProShShrtS&P500 SH
ProShUltVIXST UVXY
ProShUltShtDow30 SDOW
ProShrUSHlthCr RXD
ProShUltShtQQQ QID
ProShrUSTech REW
ProShsVIXMTFut VIXM
34.66
8.23
16.12
37.23
31.63
16.06
24.64
30.43
14.72
18.56
23.58
0.3
0.1
-0.2
-0.1
...
0.5
-0.4
-3.0
-0.1
-0.5
-0.3
NYSE American highs - 5
AlphaProTech
Chase
CloughGlblOpp
PacGE pfH
TransEnterix
4.10 1.9
APT
117.70 -1.0
CCF
11.53 ...
GLO
PCGpH 29.54 16.8
5.00 42.3
TRXC
NYSE American lows - 4
AsteriasBiotherap AST
NuverraEnvl
NES
Pfenex
PFNX
2.80 -3.4
9.48 -7.1
2.54 1.9
Dividend announcements from October 17.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
CIT Group
CIT
1.3
.16 /.15
Q
Nov24 /Nov10
.0281
.1075
.0675
.0512
.0437
.08254
.03699
.00914
.10193
.05372
.05686
.04257
M
M
M
M
M
M
M
M
M
M
M
M
Oct20 /Oct18
Oct19 /Oct18
Nov15 /Oct31
Nov15 /Oct31
Nov15 /Oct31
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Funds and investment companies
iPath Asian & Gulf Curr
Master Income ETF
NeubergerBerman
NeubergerBermanCA
NeubergerBerrmanNY
VicSh Developed Enh Vol
VicSh Div Accelerator
VicSh EM Vol Wtd
VicSh Intl Volatility Wtd
VicSh US 500 Enh Vol Wtd
VicSh US 500 Vol Wtd
VicSh US Disc Enh Vol Wtd
PGD
HIPS
NBH
NBW
NBO
CIZ
VSDA
CEZ
CIL
CFO
CFA
CSF
0.7
7.1
5.3
4.3
4.1
2.9
1.7
0.4
3.1
1.4
1.5
1.2
Company
Symbol
VicSh US EQ Incm Enh Vol
VicSh US LC High Div Vol
VicSh US Multi Min Vol
VicSh US SC Hi Div Vol
VicSh US SC Vol Wtd
WBI Tactical Hi Incm
WBI Tactical Incm Shares
WBI Tactical SMY Shares
Amount
Yld % New/Old Frq
Payable /
Record
CDC
CDL
VSMV
CSB
CSA
WBIH
WBII
WBIC
3.8
3.7
2.3
3.6
1.2
2.7
2.7
0.4
.14058
.1349
.05018
.12829
.04495
.05663
.05669
.00788
M
M
M
M
M
M
M
M
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
Oct19 /Oct18
AON
CPG
SANpA
VET
1.0
3.8
6.5
5.9
Q
.36
.02408 M
Q
.425
.17257 M
Nov15 /Nov01
Nov15 /Oct31
Nov21 /Nov06
Nov15 /Oct31
Foreign
Aon PLC
Crescent Point Energy
Santander Fin 6.8%s 4
Vermilion Energy
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
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
B16 | Wednesday, October 18, 2017
THE WALL STREET JOURNAL.
BANKING & FINANCE
IPO Is Still
Ireland Hits Banking Reset Aramco
On Track for 2018,
BY MAX COLCHESTER
Saudi Official Says
The Central Bank of Ireland is preparing to hire about 50 new staffers to handle an expected influx.
Moving Out
Ireland's total foreign bank assets
€400 billion
300
200
100
0
2011
’12
’13
’14
€1 = $1.17
Source: Central Bank of Ireland
’15
’16
’17
THE WALL STREET JOURNAL.
day, according to the Irish
central bank.
To rectify this, the Irish Development Agency is traveling
across Europe, Asia and the
U.S. to pitch Ireland to bank
executives. This summer, J.P.
Morgan Chase & Co. Chief Executive James Dimon was welcomed by the Irish prime minister, before heading to a
Dublin pub. The largest U.S.
bank by assets is buying office
space in the capital, in part to
house its custody business. Barclays PLC is also
ramping up in the city.
The Irish central bank is
preparing to hire some 36 new
staffers to help authorize finance companies coming to
Ireland and 10 regulators experienced in winding down
failed banks.
Not everyone is delighted
by Ireland’s push back into
banking.
“Does Ireland have a record
of competence in this sector?
Absolutely not,” says Sean
Barrett, an economics professor at Trinity College, Dublin,
who sat on a yearslong inquiry
into Ireland’s banking collapse.
“Ireland has a tradition not so
much of light touch, but no supervision.”
Central bank officials say
they are better prepared for
the risks. Ireland’s financial
crisis was caused by domestic
banks going on a property
lending binge, not foreign investment banks, they say. Furthermore, banking regulation
in the eurozone is now overseen by the European Central
Bank.
Still, Irish central bank regulators aren’t treating all
banking business equally.
While retail and corporate
banking is being welcomed,
business related to swaths of
derivatives are being treated
with less relish, according to
some bankers. Irish central
bank officials insist they are
open to all business.
Brexit came at a good time
for Ireland’s financial sector.
Ireland had already made
moves to beef up the industry.
Ireland’s pitch to banks: a
competitive tax rate, an English-speaking workforce and a
similar legal system to Britain’s. But the wooing had to be
done delicately so as not to
antagonize the British.
Now, the shackles are
off. To service European clients after Brexit, banks will
likely need to build subsidiaries in the EU and are expected
to move to places where they
already have a footprint.
Dublin has some downsides,
bankers say. While office
space is being built, much of it
is already full and rents are
rising fast. It is also unclear
how the rest of Ireland will
benefit.
U.K. Toughens Foreign Takeovers
BY BEN DUMMETT
AND PHILIP GEORGIADIS
The
U.K.
government
moved to extend its powers to
block foreign acquisitions of
British
companies
that
threaten national security to
include makers of advanced
technology alongside militaryequipment manufacturers.
Proposals also include measures that would let the government scrutinize much
smaller deals than current
rules allow.
The plans come as China’s
appetite for foreign technology
companies raises concerns
over the Asian giant’s access to
intellectual property that could
potentially be used against the
U.S. and Europe both economically and militarily.
Such concerns surfaced in
the U.S. in September, when
President Donald Trump rejected an attempt by Beijingbacked Canyon Bridge Capital
Partners LLC to acquire Lattice Semiconductor Corp., a
Portland, Ore.-based chip
maker. Mr. Trump was uphold-
ing a decision by the country’s
Committee on Foreign Investment to block the $1.3 billion
deal. CFIUS is a multiagency
panel that reviews deals on the
grounds of national security.
Canyon Bridge is also trying
to expand into Britain, agreeing last month to acquire
Imagination Technologies
Group PLC, a U.K.-based chipdesign firm, for £550 million
($728.8 million). That deal is
structured to both avoid
CFIUS scrutiny and appease
any concerns U.K. authorities
may have with the transaction.
The structure underscores the
increased challenges that Chinese and other acquirers face
making foreign acquisitions.
To avoid a CFIUS review,
Canyon Bridge’s deal for Imagination excludes the U.K. company’s embedded-processor
business in the U.S. The Chinese-backed investment firm
has also indicated it would
maintain Imagination’s U.K.
headquarters and had no plans
to cut jobs or change management. The U.K. didn’t reference any individual companies
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Fund
Data provided by
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Net YTD
Tuesday, October 17, 2017
Net YTD
NAV Chg %Ret Fund
American Century Inv
44.13 +0.13
Ultra
American Funds Cl A
31.44 +0.01
AmcpA p
AMutlA p 41.04 +0.05
27.24
...
BalA p
BondA p
12.98
...
63.05 -0.02
CapIBA p
CapWGrA 51.94 -0.04
EupacA p
56.88 -0.12
62.61 -0.08
FdInvA p
50.52 +0.02
GwthA p
10.49 +0.01
HI TrA p
40.94 +0.05
ICAA p
23.45 -0.04
IncoA p
44.58 -0.08
N PerA p
NEcoA p
26.5 NwWrldA
SmCpA p
17.2 TxExA p
13.1 WshA p
11.5
3.5
12.1
20.3
28.7
17.2
20.2
6.7
14.3
10.6
26.2
NAV Chg %Ret Fund
46.75 -0.07
66.19 -0.14
56.21 -0.14
13.06 +0.02
44.97 +0.03
30.0
28.6
22.2
5.1
14.0
10.93
...
11.29
...
BlackRock Funds A
GlblAlloc p 20.24 -0.01
BlackRock Funds Inst
22.81 +0.03
EqtyDivd
20.37
...
GlblAlloc
7.86 +0.01
HiYldBd
...
StratIncOpptyIns 9.97
Bridge Builder Trust
4.0
4.4
Baird Funds
AggBdInst
CorBdInst
11.3
11.7
11.6
7.6
4.2
CoreBond
Net YTD
NAV Chg %Ret
10.22
Dimensional Fds
5GlbFxdInc 11.03
EmgMktVa 30.31
EmMktCorEq 22.45
IntlCoreEq 14.17
IntlVal
19.77
21.48
IntSmCo
23.45
IntSmVa
US CoreEq1 21.82
US CoreEq2 20.72
36.22
US Small
US SmCpVal 38.83
US TgdVal 24.92
38.46
USLgVa
Dodge & Cox
... 3.9
...
-0.16
-0.07
-0.04
-0.04
-0.08
-0.07
-0.01
-0.03
-0.14
-0.18
-0.09
-0.06
2.3
28.3
31.2
23.7
20.7
25.6
24.0
14.6
12.6
7.8
4.3
4.6
11.2
Balanced
GblStock
Income
Intl Stk
Stock
in making its proposals.
The European Union, which
Britain is in the process of
leaving, has signaled plans to
more closely scrutinize acquisitions of the region’s harbors,
energy infrastructure, and defense-technology firms by foreign, state-owned companies.
“It is a political responsibilThe U.S. halted
a China-backed
firm’s attempt
to buy Lattice
Semiconductor,
whose chip is
shown.
ity to know what is going on
in our backyard so that we can
protect our collective security
if needed,” European Commission President Jean-Claude
Juncker said in his state of the
union address last month.
The U.K.’s Department for
Business Energy and Industrial
Strategy is proposing to lower
the threshold for reviewing
deals to businesses with U.K.
Net YTD
NAV Chg %Ret Fund
108.88 -0.21 8.8
14.04 -0.02 17.9
13.84
... 4.1
47.03 -0.02 23.4
200.90 -0.61 12.1
DoubleLine Funds
... 3.8
TotRetBdI 10.72
Edgewood Growth Instituti
EdgewoodGrInst 29.47 -0.04 32.7
Federated Instl
... 12.6
StraValDivIS 6.48
Fidelity
500IdxInst 89.55 +0.06 16.1
500IdxInstPrem 89.54 +0.06 16.1
500IdxPrem 89.54 +0.06 16.1
ExtMktIdxPrem r 62.41 -0.13 13.7
IntlIdxPrem r 43.12 -0.07 22.2
SAIUSLgCpIndxFd 13.73 +0.01 16.1
TMktIdxF r 74.33 +0.01 15.7
TMktIdxPrem 74.32 +0.01 15.7
... 3.4
USBdIdxInstPrem 11.64
Fidelity Advisor I
NwInsghtI 32.83
... 22.9
Fidelity Freedom
16.66 -0.02 12.9
FF2020
14.41 -0.02 13.8
FF2025
18.04 -0.02 16.2
FF2030
Freedom2020 K 16.66 -0.02 NS
Freedom2025 K 14.41 -0.01 NS
Freedom2030 K 18.04 -0.02 NS
Freedom2035 K 15.12 -0.02 NS
Freedom2040 K 10.63 -0.01 NS
Fidelity Invest
23.60 +0.01 13.7
Balanc
85.96 -0.01 30.3
BluCh
124.21 +0.05 27.0
Contra
124.20 +0.05 27.1
ContraK
revenue of more than £1 million from over £70 million previously.
Proposals also include removing a market-share test,
where a merged entity would
have to supply 25% or more of
the U.K. market for the government to take action. The
proposals are subject to a
four-week consultation period
before new legislation can be
adopted, the government said.
The new rules, if adopted,
are unlikely to significantly
hinder deal making in the U.K.
The government can already
invoke national-security concerns to block small mergers
in the defense sector in which
the target company has revenue of less than £70 million.
Further, the changes don’t
involve creation of a new review body such as CFIUS in
the U.S., said Nigel Parr, a
competition lawyer at Ashurst
LLP, an international law firm.
The government stressed
the move is meant to close a
loophole in its merger rules
rather than discourage foreign
investment outright.
Net YTD
NAV Chg %Ret Fund
10.29
...
CpInc r
41.28 -0.13
DivIntl
179.87 -0.10
GroCo
GrowCoK 179.81 -0.11
7.95
...
InvGB
11.31 -0.01
InvGrBd
52.25 +0.08
LowP r
LowPriStkK r 52.21 +0.08
104.11 +0.05
MagIn
OTC
106.84 +0.19
22.89 +0.01
Puritn
SrsEmrgMkt 21.28 -0.13
SrsGroCoRetail 17.66 -0.01
SrsIntlGrw 16.20 -0.03
10.81 -0.03
SrsIntlVal
TotalBond 10.70
...
Fidelity Selects
Biotech r 231.71 +0.28
First Eagle Funds
GlbA
60.20 -0.08
FPA Funds
FPACres
35.21 -0.03
FrankTemp/Frank Adv
...
IncomeAdv 2.37
FrankTemp/Franklin A
NA
...
CA TF A p
NA
...
Fed TF A p
2.39
...
IncomeA p
RisDv A p 59.95 +0.02
FrankTemp/Franklin C
...
Income C t 2.42
FrankTemp/Temp A
GlBond A p 12.18 +0.04
Growth A p 27.00 -0.02
FrankTemp/Temp Adv
GlBondAdv p 12.13 +0.04
Harbor Funds
10.4
24.0
31.5
31.6
3.7
4.0
14.0
14.1
20.6
34.1
14.7
35.5
32.2
26.6
18.0
4.0
33.1
10.9
9.2
8.1
NA
NA
8.0
14.9
7.9
3.8
14.6
4.0
CapApInst
IntlInst r
Net YTD
NAV Chg %Ret Fund
74.08 -0.07
70.20 -0.27
Harding Loevner
NA
...
IntlEq
Invesco Funds A
11.22 -0.01
EqIncA
John Hancock Class 1
15.91 -0.01
LSBalncd
LSGwth
17.05 -0.01
John Hancock Instl
DispValMCI 23.91 -0.04
JPMorgan Funds
...
MdCpVal L 39.81
JPMorgan R Class
11.68
...
CoreBond
Lazard Instl
EmgMktEq 19.80 -0.07
Loomis Sayles Fds
LSBondI
14.27 +0.02
Lord Abbett A
...
ShtDurIncmA p 4.28
Lord Abbett F
ShtDurIncm 4.27 -0.01
Metropolitan West
10.69
...
TotRetBd
...
TotRetBdI 10.69
...
TRBdPlan 10.06
MFS Funds Class I
ValueI
40.66 -0.09
MFS Funds Instl
IntlEq
25.43 -0.05
Mutual Series
32.69 -0.05
GlbDiscA
Oakmark Funds Invest
33.79 -0.04
EqtyInc r
83.85 -0.15
Oakmark
OakmrkInt 29.00 -0.08
Saudi Arabia still plans to
publicly list a portion of its
state oil company in 2018, the
kingdom’s energy minister
said Tuesday, after reports
that the effort may be abandoned.
“We are on track,” Saudi
energy minister Khalid al-Falih
said outside the Oil & Money
energy conference in London.
Doubts about the initial
public offering of Saudi Arabian Oil Co., better known as
Aramco, have grown in recent
days as news organizations including The Wall Street Journal have reported that the
kingdom might not go forward
with the plan.
The Journal reported last
week that Aramco was interested in selling a stake to a
private investor and that a
Chinese company had made an
offer.
Asked if Saudi Arabia still
planned a local listing for
Aramco in Riyadh and an international listing, Mr. Falih
said, “No change.”
“You will know the venue
and the exact date in due
course,” said Mr. Falih, who
also is Aramco’s chairman.
Prince Mohammad bin Salman, the kingdom’s heir apparent, announced the IPO of
up to 5% of Aramco in January
2016 and estimated the company’s value at between $2
trillion and $3 trillion.
If that valuation held true,
the IPO could fetch more than
$100 billion—by far the largest ever.
The Journal has reported
that the IPO has been delayed
by questions over the valuation and difficulty untangling
the vast state company from
the government.
Saudi Arabia is considering
giving up on its plan to list its
state-owned oil company in
New York, London or any
other international stock ex-
change, and may instead offer
shares only on the kingdom’s
exchange in Riyadh, according
to people familiar with the
matter.
Saudi Arabia is also considering an offer from a Chinese
investor interested in privately
acquiring a stake in Aramco,
according to one of the people
familiar with the matter.
Another option the company is considering is doing
the IPO in two stages, with a
listing on Riyadh’s Tadawul
exchange in 2019 and an international listing a year later,
that person said.
An international listing had
long been planned for 2018,
with New York and London as
the leading candidates.
Saudi Arabia’s leaders are
weighing these options as they
confront the monumental
challenge of untangling the
world’s biggest oil company
from a royal family that has
long used it as a piggy bank.
If the IPO goes forward, it
would be one of the biggest
ever. Its proceeds have been
pegged for Saudi Arabia’s sovereign-wealth fund, which
would become the world’s
largest and would drive a
transformation of the kingdom’s economy into one less
dependent on oil.
KOROTAYEV ARTYOM/ZUMA PRESS
BY BENOIT FAUCON
NIALL CARSON/PA WIRE/ZUMA PRESS
Almost a decade after the
Irish economy was crippled by
a banking crisis, the country is
reopening its arms to lenders
to take advantage of shifts in
Europe’s finance industry triggered by Brexit.
Take Bank of America
Corp. Once Ireland’s biggest
bank by assets, the U.S. lender
shifted billions of dollars of
derivatives out of Dublin to
London following the financial
crisis.
But after Britain voted to
leave the European Union, it
now plans to move some of
those assets back across the
Irish Sea, according to people
familiar with the matter.
Financial centers across Europe are competing to lure
London-based banking operations that need an EU base
once the U.K. leaves the bloc.
But for Ireland, there is an
added urgency: The U.K. is its
biggest trading partner.
Brexit may hit some 40,000
Irish jobs, mainly in manufacturing and agriculture if exports to the U.K. fall, according to the Central Bank of
Ireland. The Irish government
hopes to lure 10,000 financial
services jobs to soften the
blow.
“Faced with Brexit, Ireland
has no choice but to adapt,”
says Patrick Honohan, a former governor of the Central
Bank of Ireland. “Whether we
like it or not, financial services is part of that.”
Across Europe, governments are weighing the benefits of attracting London’s financiers against the risks of
big bank balance sheets.
In Ireland, the gamble is a
particularly bold one. In 2010,
the country was bailed out
with €67.5 billion ($79.6 billion) of International Monetary Fund and EU money after
its banking system collapsed.
In the ensuing lean years, Ireland retrained its workforce
and pushed through austerity
measures. Now, thanks in part
to investment by U.S. companies, Ireland’s “Lost Decade”
has ended, with the economy
surpassing its peak level hit in
2007.
One sector that hasn’t fully
recovered is banking. Foreign
bank assets in Ireland nearly
halved from €417 billion at the
end of 2010 to €220 billion to-
Saudi oil official Khalid al-Falih
J.P. Morgan Will Buy
Payments Firm WePay
BY PETER RUDEGEAIR
J.P. Morgan Chase & Co.
said it agreed to buy payments
company WePay Inc. in the
bank’s first sizable acquisition
of a financial-technology
startup.
The banking giant plans to
roll out WePay’s technology to
J.P. Morgan’s four million
small-business customers, said
Matt Kane, CEO of Chase Merchant Services.
WePay, which has roughly
200 employees, helps online
marketplaces and crowdfunding websites such as GoFundMe to process payments.
The two companies didn’t
disclose terms of the deal. But
a person familiar with the
matter said the price was
above the roughly $220 million valuation that Redwood
City,
Calif.-based
WePay
achieved in a 2015 fundraising.
The growing popularity of
e-commerce and mobile shopping has fueled deal making in
the payments sector recently.
There have been 166 deals involving payments companies
in 2017 for a total of at least
$29.3 billion, the most in any
segment of fintech, according
to investment bank Financial
Technology Partners LP.
Financial institutions have
Net YTD
NAV Chg %Ret Fund
30.8 Old Westbury Fds
20.2 LrgCpStr
14.86 -0.02
Oppenheimer Y
NA DevMktY
42.41 -0.21
42.88 -0.17
IntGrowY
7.4 Parnassus Fds
43.24 -0.09
ParnEqFd
12.7 PIMCO Fds Instl
16.0 AllAsset
NA
...
TotRt
10.33 +0.01
11.4 PIMCO Funds A
IncomeFd
NA
...
9.4 PIMCO Funds D
IncomeFd
NA
...
3.7 PIMCO Funds Instl
IncomeFd
NA
...
24.7 PIMCO Funds P
IncomeP
NA
...
7.3 Price Funds
BlChip
95.27 +0.06
2.3 CapApp
29.51 +0.04
34.58
...
EqInc
2.3 EqIndex
68.76 +0.04
68.79 +0.10
Growth
2.9 HelSci
74.54 +0.47
3.2 InstlCapG
38.62 +0.07
3.3 IntlStk
19.25 -0.04
15.38 -0.04
IntlValEq
13.5 MCapGro
91.11 -0.11
30.99 -0.05
MCapVal
25.5 N Horiz
54.84 -0.16
9.52 -0.01
N Inc
8.7 OverS SF r 11.34 -0.02
23.13 -0.02
R2020
11.1 R2025
17.82 -0.02
15.7 R2030
26.24 -0.02
27.8 R2035
19.17 -0.02
R2040
15.8 Value
32.7
23.6
11.0
NA
5.2
NA
NA
NA
NA
31.2
12.7
11.4
15.9
29.2
26.2
32.1
25.9
20.1
20.9
6.6
26.6
3.7
25.0
13.3
15.0
16.5
17.7
Net YTD
NAV Chg %Ret Fund
27.53 -0.02
38.25 +0.05
PRIMECAP Odyssey Fds
35.56 -0.02
Growth r
Principal Investors
DivIntlInst 13.94 -0.05
Prudential Cl Z & I
14.58 +0.02
TRBdZ
Schwab Funds
39.97 +0.03
S&P Sel
TIAA/CREF Funds
19.19 +0.01
EqIdxInst
IntlEqIdxInst 20.24 -0.04
Tweedy Browne Fds
GblValue
28.39 -0.08
VANGUARD ADMIRAL
500Adml 236.44 +0.16
33.92
...
BalAdml
CAITAdml 11.86 +0.01
CapOpAdml r155.68 +0.12
37.36 -0.12
EMAdmr
EqIncAdml 75.90 +0.02
ExtndAdml 81.99 -0.17
...
GNMAAdml 10.54
...
GrwthAdml 69.65
HlthCareAdml r 90.98 +0.61
HYCorAdml r 5.98
...
25.72 -0.04
InfProAd
IntlGrAdml 94.76 -0.43
ITBondAdml 11.46 -0.01
ITIGradeAdml 9.83 -0.01
LTGradeAdml 10.67 +0.01
MidCpAdml 184.42 -0.03
MuHYAdml 11.44 +0.02
MuIntAdml 14.24 +0.01
MuLTAdml 11.73 +0.02
...
MuLtdAdml 10.99
been eager to snap up tech
companies like WePay that embed payments into the background of software that businesses use to handle their
main tasks. Over the past five
years, First Data Corp., Vantiv
Inc. and other traditional payment providers have spent
more than $10 billion on acquisitions of so-called integrated
payments firms, according to
451 Research, which focuses on
technology advisory work.
Even though J.P. Morgan
hasn’t made many large acquisitions of fintech companies, it
has been an active investor in
such startups. Over the past 12
months, it participated in a
$100 million fundraising for
business-to-business payments
firm Bill.com Inc. and a $50
million fundraising for LevelUp, which enables customers
to pay at restaurants and coffee shops using smartphones.
Earlier this year, J.P. Morgan also acquired the technology behind MCX, a mobilepayments network of big
merchants that failed to gain
widespread adoption. The
bank hoped the deal would expand the reach of its Chase
Pay mobile wallet. It also
joined with On Deck Capital
Inc. in 2016 to help make loans
to small-business customers.
Net YTD
NAV Chg %Ret Fund
...
18.6 MuShtAdml 15.80
13.7 PrmcpAdml r134.42 +0.11
REITAdml r 119.72 +0.15
24.2 SmCapAdml 68.28 -0.15
STBondAdml 10.45
...
...
26.7 STIGradeAdml 10.69
TotBdAdml 10.80
...
TotIntBdIdxAdm
21.89
+0.03
6.0
TotIntlAdmIdx r 29.92 -0.07
16.1 TotStAdml 64.02 +0.02
14.13 -0.03
TxMIn r
39.50 +0.05
15.7 ValAdml
68.59 +0.04
WdsrllAdml
22.3
WellsIAdml 65.13
...
WelltnAdml
73.35 +0.01
13.4
WndsrAdml 78.47
...
VANGUARD FDS
16.1
26.20 +0.01
DivdGro
10.7
HlthCare r 215.66 +1.46
5.1
INSTTRF2020 22.46 -0.01
25.3
INSTTRF2025 22.72 -0.01
28.0
INSTTRF2030 22.90 -0.01
13.2
INSTTRF2035 23.09 -0.01
13.7 INSTTRF2040 23.27 -0.01
2.1 INSTTRF2045 23.40 -0.02
22.6 IntlVal
39.13 -0.10
20.0 LifeGro
33.00 -0.02
7.1 LifeMod
26.84 -0.01
1.9 PrmcpCor
26.85 +0.01
40.7 SelValu r
32.85 -0.07
4.1 STAR
27.07 -0.01
4.3 STIGrade
10.69
...
9.6 TgtRe2015 15.88 -0.01
14.3 TgtRe2020 31.51 -0.01
7.1 TgtRe2025 18.47
...
4.8 TgtRe2030 33.34 -0.02
6.0 TgtRe2035 20.47 -0.01
2.7 TgtRe2040 35.24 -0.02
1.4
23.5
5.2
11.5
1.5
2.3
3.4
1.8
23.9
15.7
22.7
11.1
11.1
7.9
10.8
14.3
13.5
20.0
11.5
13.0
14.2
15.5
16.7
17.2
23.2
15.5
12.2
21.1
14.1
15.1
2.2
9.4
11.5
13.0
14.2
15.4
16.7
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg %Ret
22.13 -0.02
35.60 -0.03
13.55
...
10.95 +0.02
26.88
...
42.47
...
38.65 +0.02
VANGUARD INDEX FDS
500
236.42 +0.15
ExtndIstPl 202.33 -0.43
SmValAdml 55.25 -0.13
TotBd2
10.76
...
TotIntl
17.89 -0.04
63.99 +0.01
TotSt
VANGUARD INSTL FDS
33.93
...
BalInst
DevMktsIndInst 14.15 -0.03
DevMktsInxInst 22.12 -0.04
81.99 -0.17
ExtndInst
...
GrwthInst 69.65
10.48 -0.01
InPrSeIn
233.27 +0.15
InstIdx
233.29 +0.15
InstPlus
InstTStPlus 57.42 +0.01
MidCpInst 40.74 -0.01
MidCpIstPl 200.92 -0.03
SmCapInst 68.28 -0.15
...
STIGradeInst 10.69
TotBdInst
10.80
...
TotBdInst2 10.76
...
TotBdInstPl 10.80
...
TotIntBdIdxInst 32.85 +0.04
TotIntlInstIdx r119.66 -0.25
TotItlInstPlId r119.68 -0.25
64.03 +0.02
TotStInst
39.50 +0.05
ValueInst
Western Asset
...
CorePlusBdI NA
17.2
17.1
7.0
1.8
7.8
10.8
11.1
16.0
13.7
7.6
3.4
23.8
15.6
10.7
22.8
22.8
13.7
22.6
1.9
16.1
16.1
15.6
14.4
14.4
11.6
2.3
3.5
3.4
3.5
1.8
23.9
23.9
15.7
11.1
NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, October 18, 2017 | B17
* * * *
MARKETS
BY DANIEL KRUGER
The U.S. dollar rose as investors bet the Federal Reserve would raise interest
rates later this year amid
signs that U.S. industry remained healthy despite hurricanes last month.
The WSJ Dollar Index,
which measures the U.S. curr e n c y
CURRENCIES
against 16
others,
climbed
0.2%, to 86.61, gaining against
the euro, the yen and the British pound. The index has advanced 0.4% this month.
Data showing that U.S. industry is thriving even as inflation has remained largely
quiescent could help investors
accept some central bankers’
contention that prices will
soon face pressure to rise and
that an interest-rate increase
by the end of the year is warranted. Fed Chairwoman Janet
Yellen said at a banking conference on Sunday that “ongoing strength of the economy
will warrant gradual increases” in short-term rates.
Higher interest rates make
the dollar more attractive to
investors as they would boost
returns on assets denominated
in the currency.
The dollar gained as industrial production—a measure of
output at factories, mines and
utilities—increased a seasonally adjusted 0.3% in September from the prior month, the
Fed said Tuesday. Economists
surveyed by The Wall Street
Journal had expected a 0.3%
gain for September. A decline
in industrial production in August was also revised, suggest-
0.4%
The increase in the WSJ Dollar
Index this month
ing hurricane-related disruptions were less severe than
initially reported. Production
slipped 0.7% that month instead of an estimate of 0.9%.
The dollar “got a little bit
of a bump” from the data, said
Brad Bechtel, a currency strategist at Jefferies Group LLC.
“The Fed is pretty much
locked in and doing everything
in its power to make December happen.”
Capacity utilization, reflecting how much industries are
producing relative to potential
output, rose by 0.2 percentage
point to 76.0% in September.
Tuesday’s report estimated
hurricanes Harvey and Irma
held down the growth in total
industrial production in September by 0.25 percentage
point.
Dow Tops 23000 During Trading
Blue chips close at a
Dow's Dalliance
record, helped by two The last time the Dow crossed a thousand-point milestone intraday
health-care companies, but didn't close above was November 2013, when it touched 16000.
23000
but below milestone
BY CORRIE DRIEBUSCH
AND JON SINDREU
The Dow Jones Industrial
Average briefly crept above
23000 for the first time,
buoyed by gains in shares of
health-care companies.
The
blueTUESDAY’S chip
index
MARKETS
crossed
the
milestone in intraday trading,
reaching as high as 23002.20,
before paring gains. The index
closed up 40.48 points, or
0.2%, at 22997.44, its 50th record finish of 2017.
The S&P 500 rose 1.72
points, or 0.1%, to 2559.36, a
fresh record, while the Nasdaq
Composite slipped 0.35 point,
or less than 0.1%, to 6623.66.
Corporate earnings have
helped boost major stock indexes to fresh highs in 2017,
and the third quarter is on
track to provide more fuel to
22990
22980
22970
Dow Jones
Industrial Average
Tuesday: 22997.44
22960
9:30 a.m. 10
11
noon
Source: SIX Financial
1
2
3
THE WALL STREET JOURNAL.
the market’s rise, analysts say.
“At the end of the day,
earnings are going to continue to lead the market,” said
Mark Freeman, chief investment officer and portfolio
manager at Westwood Holdings Group. He said that backdrop, as well as investors’ attitudes, are the reason he
isn’t concerned as stock
prices climb to new highs.
“In the conversations I have
with clients, I don’t have anyone telling me they’re euphoric. I view that as a positive,” he said.
Investors’ optimism about
solid economic growth across
the globe is also pushing
stocks higher, analysts say.
Though some investors worry
stocks are trading at prices
that are high compared with
the earnings generated by
companies, others are willing
to brush off these valuation
concerns because of this positive global growth.
“In the U.S. markets, there’s
no question that valuations are
elevated, but the general economy is going really well,” said
Jeremy Bryan, portfolio manager at Gradient Investments,
who nonetheless believes there
are better opportunities in Europe and emerging-market
economies.
UnitedHealth
Group’s
shares rose $10.69, or 5.5%, to
$203.89 on Tuesday, giving a
big boost to the Dow industrials, after the large health insurer reported an increase in
profit and raised its guidance.
Separately, Johnson &
Johnson raised its sales guidance, lifting shares of the
health-products company by
4.67, or 2.7%, to 140.79. Together, the two health-care
companies added about 106
points to the Dow industrials.
The health-care sector extended gains after two senators
announced contours of a bipar-
tisan deal that lawmakers and
aides said would preserve for
two years the billions of dollars
in payments made to insurers
to help offset consumers’ outof-pocket costs. Health-care
companies in the S&P 500
ended the day up 1.3%.
Goldman Sachs Group’s
third-quarter profit rose, beating earnings expectations.
Still, the bank’s results showed
its trading arm is on pace for
its worst year since 2008, and
shares of the Dow component
slipped 6.32, or 2.6%, to
236.09.
Morgan Stanley shares
rose 18 cents, or 0.4%, to 49.12
after the investment bank’s
earnings and revenue beat analysts’ expectations.
Last week, U.S. lenders reporting results were generally
punished in the stock market,
but financial shares walked
back some of those losses
Monday.
In Asia early Wednesday,
shares were off to a soft start
ahead of China’s Communist
Party Congress. Korea’s Kospi
was up 0.1% and Japan’s Nikkei
was 0.2% higher after 11straight session gains.
Two-Year Yield Hits Highest Level Since ’08
BY GUNJAN BANERJI
The yield on the two-year
Treasury note breached its
highest level in almost a decade, reflecting investors’ confidence that the Federal Reserve will maintain a steady
course of interest-rate increases.
CREDIT
The yield on
MARKETS the
two-year
note advanced
for a second
consecutive day to 1.550%, the
highest since October 2008,
from 1.542% on Monday. The
yield on the 10-year note fell
to 2.300%, compared with
2.309% Monday. Bond yields
move inversely to prices.
Investors sold short-dated
U.S. government bonds and
scooped up longer-term Treasurys, narrowing the gap between the yields on five-year
and 30-year Treasurys to the
smallest since 2007, according
to The Wall Street Journal’s
Market Data Group.
“It’s rare to see this pattern,” wrote Ian Lyngen, head
of U.S. rates strategy at BMO
Capital Markets, in a note
Tuesday, adding that it reflects investors’ differing expectations for short- and longterm government bonds as
they anticipate a hawkish Fed
and limited inflation.
Shorter-dated government
bonds tend to be more sensitive to expectations for Fed
policy and have been weakening in anticipation of higher
interest rates in the near term
and the prospect of new Fed
leadership that might be more
aggressive about rate increases, analysts said. Yields
on longer-term bonds are
more sensitive to the outlook
for economic growth and in-
MARK ELIAS/BLOOMBERG NEWS
Dollar
Moves Up
On Rate
Hopes
U.S. import prices rose 0.7% in September from a month earlier, helping to boost the 10-year Treasury yield, which later retreated.
flation. President Donald
Trump plans to meet Thursday
with Fed Chairwoman Janet
Yellen, whose term expires in
February, and has narrowed
his search to five candidates.
U.S. stocks hit records this
week and some investors may
be getting jittery over a potential pullback, turning to longer-dated government bonds
as a hedge for their exposure
to stocks, said Zhiwei Ren, a
portfolio manager at Penn Mutual Asset Management.
Earlier, the 10-year yield
had climbed as high as 2.327%
after data showed that U.S.
import prices rose 0.7% in
September from a month earlier, the biggest month-overmonth increase since June
2016, the Labor Department
said. Economists surveyed by
the Journal expected a 0.6%
increase in import prices.
The Fed looks at the import-price index to gauge how
quickly overall prices for products are rising. Treasury
prices tend to fall on strong
inflation data because inflation is a threat to long-term
government bonds, chipping
away at the purchasing power
of their fixed payments.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$129,632,467,500
Applications
$40,000,165,700
Accepted bids
$495,731,000
" noncompetitively
$100,000,000
" foreign noncompetitively
99.922611
Auction price (rate)
(0.995%)
1.010%
Coupon equivalent
19.11%
Bids at clearing yield accepted
912796MC0
Cusip number
The bills, dated Oct. 19, 2017, mature on Nov. 16, 2017.
Exchanges Criticize SEC’s Trading Plan Barclays M&A Unit
WASHINGTON—The country’s largest stock exchanges
are resisting a move by regulators to suppress incentives
they offer to attract trading to
their markets.
In a letter dated Friday, designed to pressure the Trump
administration’s new leader at
the Securities and Exchange
Commission, the operating
chiefs of NYSE Group Inc.,
Nasdaq Inc. and CBOE Holdings Inc. told SEC Chairman
Jay Clayton that the effort
could make it harder and costlier to trade some stocks. They
said the SEC should first undertake a broader effort to
change how the stock market
works, including imposing new
transparency and conflict-ofinterest rules on trading platforms run by brokerage firms.
“The current proposal
would thus merely favor the
intermediaries whose fees
would be reduced at the expense of issuers, investors, liquidity providers and exchanges,” the executives wrote.
The letter was signed by CBOE
President Chris Concannon,
Nasdaq Stock Market CEO
Thomas Wittman and NYSE
President Thomas Farley.
The SEC is preparing to
BILL CLARK/CONGRESSIONAL QUARTERLY/ZUMA PRESS
BY DAVE MICHAELS
Stock-exchange officials hope to sway SEC Chairman Jay Clayton.
propose a pilot program that
would alter a system known as
“maker-taker”—where
exchanges earn fees by paying a
rebate to certain traders and
charging a slightly higher
price to others. Some critics
argue the rebates are a kickback to brokers for sending orders to whichever market offers the highest rebate. An SEC
advisory committee recommended in July 2016 that the
agency conduct a two-year test
of trading in certain stocks
with much lower fees and re-
bates. An SEC vote on the pilot
program could come in the
next few weeks, say people familiar with the matter.
The exchanges say the program shouldn’t be launched
before the SEC completes
other overhauls, including a
rule that would require brokers to disclose how successfully they execute clients’ orders. The disclosure also could
shine more light on brokers’
practices of sending orders to
their own trading platforms,
known as dark pools.
Exchanges account for
about 63% of total U.S. share
volume, while off-exchange
platforms operated by brokers
and other competitors make
up 37%, according to data from
Tabb Group LLC.
Tyler Gellasch, a former
SEC lawyer who now leads an
industry trade group, said he
didn’t think the letter would
dissuade the commission from
launching the experiment.
“It’s aggressive, but they are
basically trying to buy time,”
said Mr. Gellasch, who leads the
Healthy Markets Association.
“An extended maker-taker pilot
program could threaten their
competitiveness when there is
already a significant amount of
off-exchange volume.”
Some exchange operators
support the pilot program. Ronan Ryan, IEX Group Inc. president, said the payments “are a
conflict and hurt trading quality.” IEX, one of the smallest
U.S. exchanges by share volume,
has tried to position itself as an
alternative to bigger exchanges
by avoiding perks that lure
more activity by high-frequency
traders or broker-dealers.
NYSE Group, Nasdaq and
CBOE defended the maker-taker
system, saying it has helped reduce costs for investors and
promotes steady trading.
Hires HSBC Banker
BY BEN DUMMETT
LONDON—Barclays
PLC
poached a senior investment
banker from HSBC Holdings
PLC to co-head its U.K. mergers-and-acquisitions operations.
The British-based bank
hired Omar Faruqui to oversee
U.K. M&A along with current
co-head Derek Shakespeare,
The deal-making
climate in the U.K. is
clouded by uncertain
fallout from Brexit.
according to a memo, as the
bank aims to deepen its relationships with U.K. clients.
Based in London, Mr. Faruqui, 42 years old, will assume
his new role in January. He
brings more than 20 years of
investment-banking experience
across U.K. corporate-finance
and private-equity firms.
Barclays is involved in some
of the most high-profile U.K.
cross-border deals, including
Vantiv Inc.’s $10 billion-plus
cash-and-stock deal to acquire
Worldpay Group PLC.
At the same time, the dealmaking climate in the U.K. is
clouded by the uncertain political and economic fallout from
Britain’s continuing efforts to
split from the European Union.
Foreign acquisitions of U.K.
companies are down about
15% measured by total value
and down about 5% by volume
so far this year from the yearearlier period, according to
data provider Dealogic.
That potentially highlights
concerns by some foreign
companies over the economic
outlook for the U.K. Similarly,
the uncertain political climate
may give U.K.-focused companies reason to expand abroad
as a way to reduce their reliance on the domestic economy. Supporting that view,
outbound deal making measured by value and volume is
up significantly so far in 2017,
according to Dealogic.
Mr. Faruqui, who left HSBC
last week to join Barclays, was
head of M&A origination at
HSBC, and before that was European co-head of financial
sponsors for the bank. Over
the years, he has worked on
several acquisitions and sales
for blue-chip U.K. companies.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
B18 | Wednesday, October 18, 2017
MARKETS
Market’s Unlucky-Sevens Streak in Danger
The rise of blue-chip
stocks this year since
the start of August
defies the trend
BY SPENCER JAKAB
Unless the rising stock market suddenly slams into reverse, a pattern for U.S. bluechips that has held for 130
years is about to end.
For the past 13 times that a
year has ended in seven, going
back to 1887, the Dow Jones
Industrial Average or its predecessor has suffered a sharp
downturn at some point between August and November.
The average drawdown has
been a little over 13%, according to the research firm
Leuthold Group.
The most memorable of
those drops was 30 years ago
this Thursday. The 1987 stockmarket crash sent the Dow
tumbling 22.6%, its worst single-day percentage loss ever.
Including a selloff that began
earlier, 1987’s drop wiped 36%
off the Dow’s value at its nadir. The sharpest drop for a
year ending in seven was a
40% tumble in 1937, during the
Great Depression.
Now this streak looks to be
in jeopardy. August this year
was a fairly calm month, and
September and the first half of
October have broken multidecade records for their lack of
volatility. The CBOE Volatility
Index, or VIX, has registered
more single-digit readings
than any period for which the
measure has been calculated,
and the Dow hasn’t fallen by
more than 1% in a single session for 42 days. The average
daily change in the index this
year has been 0.3%, or just
half of its average in the preceding five years.
In order to meet the unofficial definition of a stock-market correction, the Dow would
have to shed nearly 2,300
points from Tuesday’s close in
Stocks’ Run Threatens Age-Old Pattern
A streak of market unrest dating back more than a century is on the verge of coming to
an end this year. Each year ending in 7 dating back to 1887 has included a sharp decline
in late summer or early fall, but this year the sailing has been smooth—at least so far.
Dow Jones Industrial Average's performance for August-November in years ending in 7
20%
2017
1927
2007
1897
0
1947
1967
1997
1977
1957
–20
1917
1907
1987
1937
–40
Trading days
10
20
30
40
50
60
70
Biggest declines in Dow from peak to trough during the August-November period
0%
–10
–20
–30
–40
1897
1907
1917
1927
1937
1947
1957
1967
1977
the 31 remaining trading days
between Tuesday and the end
of November.
Those late-year slumps
have tended to come during
down years overall for the
stock market—something that
a mere 10% correction
1987
1997
2007
THE WALL STREET JOURNAL.
Sources: FactSet (four-month performance); Leuthold Group (biggest declines)
wouldn’t accomplish at this
point.
Going back to the 1880s,
years ending in seven are one
of only two that have been
overall losers with the average
change in the Dow being negative 2.5%, according to the
Stock Trader’s Almanac.
Leuthold’s Doug Ramsey wrote
this month that 2017 is most
similar to 1927, which saw
stocks rally in November.
Even so, the last three
years ending in seven, including even infamous 1987, have
seen the Dow rise for the year.
Far-off 1907, 1917 and 1937, all
of which saw sharp bear markets, are responsible for much
of the damage.
Another historic market
pattern also could flop this
year. Stocks typically perform
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Look Out for Chinese Contagion
Can financial turmoil in
China play havoc with the
rest of the world? It has already happened.
On the first trading day of
2016, China’s central bank
sent shock waves around the
world by sharply lowering
the value of the yuan. The
decline in the currency itself,
which came after the bursting of a stock-market bubble,
wasn’t the biggest concern.
Rather it was a sudden loss
of confidence in China’s
growth story that reverberated around the world.
No matter how closed
China’s financial system is,
the country’s heft as the
world’s second-largest economy, as the biggest buyer of
nearly all commodities and
as the biggest exporter
means that what happens in
China won’t stay there.
How the ripples of China’s
actions played out over the
next several weeks shows
what could happen if the
country’s dependence on
borrowing to fuel growth
hits a wall. China’s stock
market plummeted, pulling
the S&P 500 down 11% from
the start of the year to Feb.
80
China Sneezes, World Catches Cold
China's devaluation of the yuan caused global tremors.
5%
0
Yuan*
Australian
dollar*
–5
–10
–15
–20
KBW Nasdaq
Bank Index
U.S. crude oil
–25
–30
January 2016
February
*Value against the U.S. dollar
Source: FactSet
THE WALL STREET JOURNAL.
11, when it bottomed. Oil and
other commodities fell
harder.
Currencies of commodityproducing nations like Australia and Brazil were hit.
Saudi Arabia’s currency peg
to the U.S. dollar came under
speculative attack. Commodity trading houses like Switzerland’s Glencore and Hong
Kong’s Noble Group faced
fears over their solvency.
This turmoil had knock-on
effects on financial companies. Banks that made loans
to oil drillers and miners
looked exposed to defaults.
The prospect of lower
growth in China and commodity-producing emerging
markets sent global interest
rates lower, impairing banks’
profit margins. In the U.S.,
banks were among the hardest-hit sectors, with the KBW
Nasdaq Bank Index falling
23% by Feb. 11.
No two crises are exactly
the same, and China is unlikely to allow its domestic
stock market to become so
stretched again. But if the
Federal Reserve keeps raising
interest rates, it could put renewed downward pressure
on the yuan. The country’s
new capital controls haven’t
been tested by a big shock either. China’s shadow banking
system has increased significantly, so any attempt to rein
it in, or any breakdown in
the Byzantine chain of
wealth-management products, could threaten Chinese
growth.
A Chinese financial crisis
likely wouldn’t play out like
the U.S. housing bust, which
caused the worst global recession in decades. But
China’s stumble in early 2016
didn’t require the collapse of
a complex financial product
or the failure of a major
bank to hit markets around
the world. The combination
of plain old commodities and
leverage were enough to
spread the damage.
Anyone searching for
ground zero of the next crisis should look closely at
how a crack in China’s
growth story could be transmitted globally.
—Aaron Back
OVERHEARD
We knew they were addictive, just not that addictive.
A hankering for Krispy
Kreme Doughnuts got a Florida man in trouble in 2015,
but it wound up earning him
a lot of dough in the end.
Daniel Rushing was arrested by Orlando police
when they saw what appeared to be flakes of crystal
methamphetamine on the
floor of his car. He insisted
that he had been eating
doughnuts in his vehicle and
that the substance was just
sugar, but he had pulled out
of an area where there had
been some drug activity reported.
The officers suspected
that there was a hole in his
story. They administered a
roadside drug test, but it
falsely said the substance
was an illegal drug.
A subsequent test done in
a laboratory showed that the
substance was, in fact, sugar.
Mr. Rushing recently received a check from the city
for $37,500. That’s worth
about 56,000 original glazed
doughnuts.
Boeing’s Fight With Bombardier Blows Up in Its Face
Boeing thought it was
picking on a pipsqueak. Instead, it has drawn its biggest rival to the fight.
Airbus’s surprise deal announced late Monday to take
control of Bombardier’s
CSeries jet program is a
coup for the European aerospace giant. Boeing had just
last month successfully got
the Commerce Department
to impose a 300% tariff on
the new line of Bombardier
jets. It seemed like a perplexing complaint, because
Boeing doesn’t compete in
the 100-to-140-seat space
that the CSeries targeted.
The tariffs targeted sales to
CSeries biggest customer,
Airbus Effect
Bombardier bonds due in 2021,
yield to maturity
5%
4
3
J
F M A M J
J
A
S O
Source: Tradeweb
Delta Air Lines.
Now, Airbus will move
some assembly of the
CSeries to its Alabama plant,
a neat workaround to Bombardier’s tariff problem.
More than 50% of the
CSeries already contained
U.S. origin parts, according
to Bombardier. So in the
confusing world of point-oforigin trade fights, the plane
is coming home.
While Airbus has protected its downside with
commitments from Bombardier to fund cost overruns,
its clout and size essentially
give the CSeries new life.
CSeries customers fearing
for Bombardier’s long-term
health are now assuaged
with Airbus standing behind
the program. Bombardier’s
bonds, a barometer of its
solvency, rallied sharply
Tuesday. Plugging the
CSeries into Airbus’s large
aftermarket service network
gives airlines confidence to
operate the planes globally.
The deal creates reasonable upside for Airbus, and
its shares rose 4.8% Tuesday,
a rare bump for the buyer in
an M&A deal. In the CSeries,
it acquires a jet program
that has received accolades
from critics and is arguably
past the riskiest phases of
development, having been
flying for over a year. It is
small enough that it doesn’t
immediately cannibalize the
heart of Airbus’s A320 line.
Airbus also gains an entirely new fuel-efficient technological platform. It can in-
corporate the best of the
CSeries into its next generation of jets or use it wholesale as a new platform for
larger iterations, including a
possible CSeries CS500, putting it more squarely in competition with the smaller of
Boeing’s 737s.
If Boeing had left Bombardier alone, it would have
faced an extremely weak
competitor in a plane size it
long ago decided not to play
in. The risk for Boeing investors is that the company
now feels enough small-jet
envy that it goes and spends
money to do something
about it.
—Alex Frangos
far less well in the months between May and October than
in the period of November
through April. With a couple
of weeks to go, though, the
Dow is up by 9.8% since May,
well above its historical pace.
The blue-chip index is up
16% year to date, which would
upend another trade that has
been favored by market timers. The year after a presidential election has been the
worst for the Dow or its predecessors of the four-year
presidential cycle, with a gain
of just 2.5% on average since
1833, according to the Stock
Trader’s Almanac. The year
before an election has been
the best, with a gain of 10.2%.
Some
perspective
is
needed, though. The decennial
pattern, for example, was
identified with decades of
hindsight and drops of 10% or
more aren’t all that uncommon. One of the years, 1947,
didn’t even breach the technical definition of a correction.
There may be something to
the presidential cycle and the
admonishment to “sell in May
and go away.” When the stock
market was more domestically
focused, a president seeking
re-election or the election of
his party’s candidate had a lot
of power to prime the economic pump or to make promises ahead of an election. The
year after the election, or his
first in office, typically was
the time for an economic reality check.
Seasonal patterns also were
more powerful when an agrarian economy soaked up credit
during the summer growing
season, leaving money tight
for the rest of the economy,
including stock speculators.
The period from November
through April, by contrast,
was a time of easy money.
With the gold standard long
gone and central banks providing copious liquidity all
year long, it should be little
surprise that this seasonal
pattern has fizzled.
WSJ.com/Heard
It’s Time
To Get Back
Into Goldman
Wall Street’s big two investment banks have shown
that they can perform reasonably well even when the
environment is tough. What
happens if things get better?
Morgan Stanley and
Goldman Sachs Group on
Tuesday both reported better-than-expected results for
the third quarter. Slow trading activity remained a drag,
but this was expected.
What is reassuring is that
both banks have diverse
enough businesses that moribund trading hasn’t stood in
the way of decent performances. For the first nine
months of the year, both
posted a return on equity of
roughly 10%.
At Morgan Stanley, wealth
management was the hero,
with revenue in this business
rising 9% this year and margins expanding. At Goldman
Sachs, the big standout was
its investing and lending
business line.
This points to an important distinction between the
two banks: Goldman remains
more of a risk-taker. That
makes for a rougher ride
when markets don’t cooperate but bigger upside potential when they do.
Volatility could rise again
if the Federal Reserve keeps
raising rates, while tax overhauls could boost mergers
and other investment-banking opportunities. Both argue for Goldman, which is
now trading at a slight discount to Morgan Stanley for
the first time in many years.
As a percentage of its market cap, its planned $8.7 billion buyback is much bigger
than Morgan Stanley’s.
For those who can stomach some risk in exchange
for higher potential returns,
it may be time to wade back
into Goldman Sachs.
—Aaron Back
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