. DJIA 24768.93 À 62.52 0.3% NASDAQ 7398.30 À 0.6% STOXX 600 393.21 À 0.2% 10-YR. TREAS. g 3/32 , yield 3.093% OIL $71.49 À $0.18 GOLD $1,290.20 À $1.30 Old Rival’s Release Opens Door to New Chapter in Malaysia What’s News S hari Redstone moved to block CBS’s efforts to strip her family of voting control, with the family’s holding company dictating a change to board rules. A1 Macy’s reported a rise in same-store sales amid signs the department-store chain is pulling out of a slump. B2 The SEC said it hasn’t been able to collect more than $800 million in fines for ill-gotten gains after a court ruling set time limits. B10 Zuckerberg will meet with European officials amid criticism of Facebook’s handling of users’ data. B4 Commercial oil stocks in industrialized economies have fallen to their lowest level in three years, the IEA said. B11 Fox named the new leaders of what would continue as an independent enterprise if the Disney deal closes. B6 World-Wide A GOP-led Senate panel backed a finding that Moscow tried to boost Trump’s 2016 campaign by hacking and spreading misinformation, breaking with a House committee’s position. A1 A new financial disclosure from Trump acknowledged that he reimbursed Cohen for a $130,000 payment to an adult-film actress. A4 Michigan State agreed to pay $500 million to victims of sexual abuse by Nassar, leaving unclear the university’s future financial path. A1 Trump still plans to hold a summit with North Korean leader Kim, U.S. officials said, brushing off sharp comments from Pyongyang. A6, A7 The Senate intelligence panel recommended Haspel as the next CIA director, clearing the path for her confirmation by the full chamber. A3 The Assad government took control of Syria’s largest province, state media said, as it pushed to capture remaining rebel-held territory. A9 Taliban insurgents gave up their bid to take over the capital of the western Afghan province of Farah. A9 GOP centrists are pushing for a House vote on immigration bills, sparking conservative opposition. A2 The Senate voted to reinstate net-neutrality rules, but the measure faces long odds of passage in the House. A2 U.S. births last year hit a 30-year low as American women had children at the lowest rate on record. A3 CONTENTS Banking & Finance... B10 Business News.. B3,6 Crossword.............. A16 Heard on Street. B12 Life & Arts...... A13-15 Management.......... B5 Markets............. B11-12 Opinion.............. A17-19 Sports........................ A16 Technology............... B4 U.S. News............. A2-5 Weather................... A16 World News....... A6-9 > s Copyright 2018 Dow Jones & Company. All Rights Reserved AHMAD YUSNI/EPA/SHUTTERSTOCK The Russell 2000 index of small stocks hit a record, reflecting tax-overhaul gains and signs growth in the U.S. looks more robust than overseas. B1 Other U.S. indexes rose, getting a boost from retail shares. The Dow ended 62.52 points higher at 24768.93. B11 YEN 110.40 WASHINGTON—A GOP-led Senate committee backed U.S. intelligence agencies’ finding that Moscow tried to boost Donald Trump’s 2016 presidential campaign by hacking and spreading misinformation, a bipartisan conclusion that breaks with a House panel’s position and the president’s rejection of the notion that Russia wanted him to win. Disney executives have discussed bringing back animation guru Lasseter, who is on leave after accusations about his behavior, in a new role. B1 Credit card issuers’ returns are being pressured by rising loan losses and increased rewards expenses. B1 EURO $1.1807 Russia Tried to Promote Trump, Panel Says Business & Finance Vista and Thoma Bravo are seeking to raise money for what would be the buyout firms’ biggest funds. B1 HHHH $4.00 WSJ.com THURSDAY, MAY 17, 2018 ~ VOL. CCLXXI NO. 115 * * * * * By Byron Tau, Rebecca Ballhaus and Erica Orden HANDOFF: Former opposition leader Anwar Ibrahim was released from detention Wednesday in Kuala Lumpur, a week after the election of Malaysia’s new prime minister, Mahathir Mohamad. Mr. Mahathir has pledged to hand over power to Mr. Anwar in a year or two. A7 Shari Redstone Hits Back at CBS Move aims to block attempt to strip her family’s voting power over media company BY KEACH HAGEY AND JOE FLINT Shari Redstone fired back at CBS Corp., moving to block the media company’s efforts to strip her family of voting control. In a power move to protect its position as the media giant’s controlling shareholder, the Redstones’ family holding company dictated a significant change on Wednesday to the rules of how Gymnast Payout Rocks University Michigan State University agreed to pay $500 million to more than 300 victims of sexual abuse by Larry Nassar, the sports-medicine doctor it employed, a sum that is among the largest for victims of abuse and leaves unclear the future financial path for one of the nation’s top public universities. By Douglas Belkin, Louise Radnofsky and Melissa Korn Officials at the 50,000-student campus declined to say how they would pay for the settlement, and it isn’t clear if they have figured out how. They declined to rule out raising tuition or a state bailout, and they can’t use the university’s endowment. Michigan State’s interim President John Engler also didn’t rule out bankruptcy in testimony before the Michigan State Senate in March. The East Lansing, Mich., university will pay $425 million to the victims, or about $1.25 million each. It will set aside an additional $75 million in a trust to protect any future claims of sexual abuse against Nassar. The settlement dwarfs the more than $100 million issued by Pennsylvania State University to settle civil claims filed by more than 33 men who said they were sexually abused by retired assistant football coach Jerry Sandusky. The Michigan State settlement covers lawsuits filed by young athletes, many of them gymnasts, who claimed that Nassar was abusing his patients for two decades. The university’s board of trustees agreed to the settlement terms Tuesday night. On Wednesday morning, the board’s chairman, Brian Breslin, issued a statement saying the board was “truly sorry to all the survivors and their Please see NASSAR page A2 CBS’s board operates. The adjustment would make it nearly impossible for the current directors to be able to water down the family’s voting power. The decree marks a significant escalation in the battle breaking out between Ms. Redstone and CBS Chief Executive Les Moonves in a longrunning disagreement over the future of the media company and Ms. Redstone’s desire to recombine CBS with Viacom Inc. The fight has been thrust into the courts as both sides attempt to outmaneuver the other and decide the fate of the television powerhouse. CBS said in a lawsuit this week that it wants to prevent Ms. Redstone and her family’s National Amusements Inc. holding company from overhauling CBS’s board and forcing a merger with Viacom. The Redstones and National Amusements responded Wednesday in a legal filing, saying they had no such intentions. They called CBS’s attempts to issue new voting shares to reduce their nearly 80% voting control to 17% “egregiously overboard and unjustified.” They also argue that CBS would have other options legally that wouldn’t require diminishing the Redstones’ voting interest, More Seats for Frequent Fliers including challenging the removal of any director. “This is an unprecedented usurpation of a controlling stockholder’s voting power,” National Amusements’ lawyers wrote. The documents filed by the Redstones were in opposition to the motion for a temporary restraining order that CBS’s special committee of independent board members filed on Monday. The committee is seeking to block National Amusements from replacing board members or modifying the company’s governance documents before CBS convenes a special meeting Please see CBS page A8 How the six major U.S. airlines stack up in a survey of frequentﬂier rewards availability Crown prince has leveraged businesses connected to government % OF SEAT PT. CHG. AIRLINE AVAILABILITY FROM 2017 Southwest 100% No change BY JUSTIN SCHECK AND BRADLEY HOPE JetBlue 94.3% No change RIYADH—Prince Mohammed bin Salman was a teenager when he realized his father, Prince Salman bin Abdulaziz, was, by Saudi royal standards, a pauper. While other sons of Saudi Arabia’s founder grew wealthy from government business, Salman, then the governor of this capital city, supported his family with handouts from his brother the king. Mohammed decided to change that, he later told associates. Nearly two decades later, Salman is king, and Mohammed bin Salman, known as MBS, is the crown prince who says he wants to crack down on corruption and remake the Saudi economy along more modern lines. Prince Mohammed is also fantastically wealthy. In recent years, he has acquired one of the world’s larg- American 82.1% +27.8 United 75.5% +10.7 Delta 72.1% –2.2 Alaska 69.3% –12.1 Note: The research, sponsored by CarTrawler, in March looked for two award seats on each airline’s 10 busiest long routes and 10 busiest medium-length routes for 14 different round-trip dates between June and October. Source: IdeaWorks At the Disease Job Fair, Typhoid Battles E. coli for the Sickest Talent i i CDC divisions compete to recruit outbreak detectives; cookies, balloons BY BETSY MCKAY Trump discloses reimbursement tied to Stormy Daniels.............. A4 Novartis executive departs over payments to Cohen firm..... A4 Watchdog readies report on FBI’s Clinton email probe.... A4 Airbus Deal Powered Saudi Royal Family’s Wealth Some airlines are making it easier to cash in miles. A13 i The Senate Intelligence Committee’s conclusion, made public Wednesday after a closed-door hearing with former intelligence chiefs, is part of the panel’s continuing probe, begun 14 months ago, into alleged Russian interference in the 2016 election. It supports the findings of the intelligence agencies under former President Barack Obama, a Democrat. The Republican president and many of his allies have repeatedly dismissed the idea that Moscow meddled on his behalf—particularly disputing that the Russian effort might have had an impact on the election’s outcome. A House Intelligence Committee report released earlier Please see RUSSIA page A4 class last month to its elite training program for outbreak Elizabeth Soda, a physician investigators. It was time to dewho has investigated dangerous cide where within the agency bacteria all over the world, was the new investigators would on the hunt for the best candi- spend their next two years—esdates to help her find and stop pecially challenging since this year there are life-threatening illonly 66 recruits to nesses for the respifill 99 openings. ratory diseases On a hotel conbranch of the Cenference floor in ters for Disease ConYummy Atlanta, the comtrol and Prevention. petition was feNaturally, she put on a bright orange-and-white verish. “Join the fight against evil Nemo fish costume she picked bacteria!” scientists urged on a up on Amazon. “Finding Pneumo with RDB,” poster inviting coveted candiread a handmade sign pinned dates to discuss diphtheria, onto her back. “Meet us in room meningitis and whooping cough 206-207.” over breakfast. “You gotta stand out, right?” Admission to the CDC’s Epishe said. demic Intelligence Service, as This is outbreak-themed the fellowship program is called, is almost as tough as to an Ivy speed dating. Please see JOBS page A12 The CDC admitted a new est yachts, a French palace and a $450 million Leonardo da Vinci painting that was later donated to the United Arab Emirates. How the prince amassed his wealth exemplifies ways that the autocratic kingdom, essentially a family business, continues to intermingle commercial ventures and Saudi government connections to a degree far from Western norms. While it’s been long known the Saudi royal family keeps a share of the nation’s oil income, other business dealings involving the family’s dominant branch have been held more closely. Among the connections: Prince Mohammed is managing director—and 20% owner—of a chemical producer that supplies large, statecontrolled firms, Saudi corporate filings showed as recently as last year. A company Please see PLANES page A12 World’s First “Self-Driving” Database Oracle Autonomous Database No Human Labor – Half the Cost No Human Error – 100x More Reliable oracle.com/selfdrivingdb Human labor refers to tuning, patching, updating, and maintenance of database. Copyright © 2018, Oracle and/or its affiliates. All rights reserved. . A2 | Thursday, May 17, 2018 * *** THE WALL STREET JOURNAL. U.S. NEWS Senate Makes Play For Net Neutrality LOREN ELLIOTT/REUTERS BY JOHN D. MCKINNON U.S. Border Patrol agents and people who illegally crossed the border, near McAllen, Texas, last week. Republican centrists in the House want votes on bills that include a path to citizenship for young immigrants, and conservatives are trying to block that. Immigrant Bills Split House GOP WASHINGTON—Support grew in the House for an effort to force a vote on several immigration proposals, sparking some conservatives to consider using a coming vote on the farm bill as leverage to try to block them. GOP Reps. John Katko of New York and David Trott of Michigan on Wednesday joined a push from 18 other centrist Republicans to force a House floor vote on a series of immigration bills, including ones with a path to citizenship for young undocumented immigrants known as Dreamers. That left the GOP centrists just five GOP votes shy of the 218 signatures needed to trigger the votes, assuming all Democrats later join them. The push is pitting one wing of the Republican Party against another. Centrists facing tough re-election fights in November are clamoring for an immigration vote that could widen their appeal at home, while conservatives threatened to potentially derail the farm bill to avoid that outcome. The farm bill includes federal support for farmers and tighter work requirements for food-stamp recipients. Rep. Carlos Curbelo (R., Fla.), one of the immigration push’s leaders, said his group was “very close” to securing enough support. That “could happen this week,” he said. The momentum for the immigration push alarmed some of the House’s more conservative members, who take a tougher line on immigration and worry that the centrists’ effort could end up allowing a bill to pass with mostly Democratic support. “This immigration thing is coming to a head,” said Rep. Jim Jordan (R., Ohio), one of the founders of the House Freedom Caucus, roughly three U.S. WATCH ANTITERRORISM Report Puts Price Tag At About $2.8 Trillion The U.S. has spent as much as $2.8 trillion on the fight against terrorism since the Sept. 11, 2001, attacks, according to a study published Wednesday. The report from the Washington-based Stimson Center think tank said the figure included spending on the wars in Afghanistan, Iraq and Syria, in addition to homeland-security efforts and overseas programs.. The report said that the U.S. lacked a system for accounting for spending on counterterrorism and that loopholes have increasingly allowed billions to be spent on items that shouldn’t qualify for emergency funding. “The Stimson study group found a variety of weaknesses in definitions, tracking, and consistencies that limit accuracy and contribute to a lack of transparency regarding the current data,” the report said. “These weaknesses make it difficult to evaluate whether CT spending has been effective.” —Jessica Donati STATE DEPARTMENT Ex-Secretary Tillerson Says Freedom at Risk Former Secretary of State Rex Tillerson said a crisis in integrity and ethics among America’s leaders is putting the country’s freedom and democracy at risk, delivering the message in a commencement address at the Virginia Military Institute. Mr. Tillerson, speaking to graduates Wednesday in a rare public appearance since he was fired by President Donald Trump via a Twitter message two months ago, said every American citizen has a duty to seek the truth and hold leaders accountable. “If our leaders seek to conceal the truth, or we as people become accepting of alternative realities that are no longer grounded in facts, then we as American citizens are on a pathway to relinquishing our freedom,” he said. The former chief diplomat didn’t name Mr. Trump in his speech but appeared to refer to the president’s clashes with news organizations. A spokeswoman for Mr. Tillerson didn’t respond to a request for further comment. —Jessica Donati CALIFORNIA Explosive Device Killed Woman at Spa A blast that killed one woman at a day spa in Southern California was caused by an explosive device, authorities said. Investigators don’t know who set off the explosion or why, but it is being investigated as a criminal act, Don Barnes, Orange County undersheriff, said Wednesday. Bomb technicians have been sorting through the wreckage. “The damage at the scene was extensive, so it’s hard to identify some of the pieces of the potential device,” said Paul Delacourt, assistant director in charge of the Federal Bureau of Investigation’s Los Angeles field office. “What we have identified are some items that are not consistent with a business of that type.” The explosion went off Tuesday afternoon at a medical building in Aliso Viejo, sparking a fire and injuring three other people. —Zusha Elinson THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. 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SUBMIT IT AT WSJ.COM/TIPS dozen of the most conservative Republicans. “We’re nervous about what kind of bill that would be,” he said. “Our party wasn’t elected to put together a bill with 190 Democrats and a handful of Republicans.” The centrist Republicans are seeking to use a rarely employed procedure known as “Queen of the Hill,” under which the House would vote on four immigration measures, and the one with the most votes would pass. The measures range from a Democratic proposal to offer a path to citizenship to Dreamers to a far more conservative bill from House Judiciary Committee Chairman Bob Goodlatte (R., Va.) that emphasizes interior enforcement and provides $30 billion for the border wall. They also include a placeholder that House Speaker Paul Ryan (R., Wis.) can fill with legislation of his choosing. Mr. Ryan, who has said he wants to find an immigration solution, says the centrists’ approach turns power over to Democrats. Leaders of the centrist group met Wednesday evening with top House GOP leaders, who were hoping to find a plan that would satisfy all sides. “We have our plan, we’re sticking to it, but we’re willing to see what theirs looks like,” Mr. Curbelo said as he left the meeting. Conservatives, worried that one of the more centrist or Democratic measures might pass, were discussing whether to try to prevent that outcome by withholding support for the farm bill expected to come to the House floor on Friday. House GOP leaders have been working for weeks to find enough GOP support for the farm bill. Most Democrats are expected to oppose the bill over their objections to its work requirements for food stamps. WASHINGTON—The Senate voted Wednesday to reinstate Obama-era open-internet rules, handing a symbolic defeat to the Trump administration over its efforts to roll back those regulations. The measure, adopted 52 to 47, faces long odds of passage in the House. The White House says it supports the new rules, adopted by the GOP-run Federal Communications Commission late last year, and many Republicans believe President Donald Trump would veto the reinstatement measure if it ever reached his desk. The Obama-era FCC’s netneutrality rules, adopted in 2015, required internet service providers such as cable and wireless firms to treat all online traffic equally. The rules barred them from blocking and throttling websites, or creating fast and slow lanes. The debate is sure to continue for months, in part because Democrats view it as good politics as well as good policy. Democratic leaders have said they believe battling with Republicans over reinstatement of the 2015 open-internet rules will help them get more millennials—especially millennial males—to support them at the polls in November. They also held out hope that the Senate action could frighten embattled House Republicans into supporting the measure, leading to an upset policy victory. They noted that in Wednesday’s vote three Senate Republicans crossed over to support the reinstatement. “There’s good momentum The measure to bring back Obama-era rules faces long odds of passage in the House. competition.” The Obama-era rules were supported by big internet firms such as Amazon.com Inc. and Alphabet Inc.’s Google, as well as smaller services. All said they worried the big internet service providers such as cable and wireless firms could use their leverage over the internet’s pipes to compete unfairly. Providers such as Comcast Corp. and AT&T Inc. said they supported net neutrality, too, but adamantly opposed the 2015 rules. They feared the measure would open the door to regulation of their rates. NASSAR Continued from Page One families for what they have been through, and we admire the courage it has taken to tell their stories.” Michigan Sen. Tonya Schuitmaker, chair of the subcommittee for higher education appropriation, said the university hadn’t approached the state for money to cover the settlement. “I would certainly hope before they agreed to a settlement they figured out how to pay for it,” she said. A Michigan State spokeswoman said the school “will be working on the solution in the near future,” and that the school was in negotiations with its insurer about how much of the settlement it would cover. In testimony earlier this year before the state legislature, Mr. Engler warned that the costs for the settlement ultimately would be borne by “students and taxpayers.” “I don’t know if it would force bankruptcy [for the university] or not,” he said. “I hope not.” Ms. Schuitmaker said she didn’t believe the costs would be passed on to students in the form of higher tuition. The state allocated the university $289 million for the current year, or 11% of its budget. That money comes with a cap on tuition. If the school tried to raise tuition to pay for the settlement they would lose $289 million, she said. The school’s estimated annual revenue for this year of $1.36 billion is matched by its expected expenditures. Nassar pleaded guilty last year to 10 counts of sexual REBECCA COOK/REUTERS BY KRISTINA PETERSON for net neutrality,” said Sen. Brian Schatz (D., Hawaii) in an interview. “People didn’t think we were going to succeed in the Senate…so now it’s on to the House of Representatives.” House Energy and Commerce Committee Chairman Greg Walden (R., Ore.) said recently that he doesn’t expect the reinstatement measure to come to the House floor. FCC Chairman Ajit Pai said he was disappointed by the Senate vote but that the internet “will continue to be free and open” after his rule takes effect on June 11, just as it was before the 2015 Obamaera order. He added that the current FCC’s “light-touch approach will deliver better, faster and cheaper internet access and more broadband Former Michigan State gymnastics doctor Larry Nassar, who pleaded guilty to sexual assault, at his sentencing hearing in February. abuse in Michigan state court to resolve the claims of scores of women who alleged he sexually abused them under the guise of medical treatment. He also pleaded guilty to childpornography counts and was sentenced to more than 200 years behind bars. The settlement doesn’t address similar claims also brought by athletes against USA Gymnastics, the United States Olympic Committee and others. The Nassar case rocked the world of elite gymnastics and spurred leadership overhauls at USA Gymnastics, the U.S. Olympic Committee and Michigan State, where the president and athletic director resigned. USA Gymnastics issued a statement Wednesday saying it was “very encouraged” by the settlement in principle, adding: “We remain committed to con- tinuing our mediation efforts to reach resolution as well.” Michigan State still faces an investigation by the Michigan Attorney General’s office into its handling of complaints against Nassar, as well as investigations by the U.S. Department of Education and at least two congressional committees. Elite gymnasts including 2012 Olympic gold medalists McKayla Maroney, Aly Raisman and Jordyn Wieber alleged negligence by Michigan State in failing to act on reports of abuse going back to the late 1990s. The three are covered by the Michigan State settlement, their lawyer said. National-team gymnasts are also suing USA Gymnastics and the U.S. Olympic Committee, as well as individual officials and coaches in some instances, alleging negligence. Meanwhile, CORRECTIONS AMPLIFICATIONS Tencent Holdings Ltd. has bought stakes in 277 startups since 2013. In some editions Wednesday, a Page One What’s News item incorrectly gave the year as 2014. Amazon.com Inc. introduced Prime in 2005 for $79 annually. A Business News article Wednesday about Prime customers’ discounts at Whole Foods incorrectly said that the service was introduced in 1995 for $75 annually. The Closed-End Funds table that appeared in Monday’s Business & Finance section incorrectly contained data from the week ended May 4. The data as of Friday, May 11 are available at WSJ.com/Corrections. American Henry Ford introduced assembly-line-produced automobiles to the world. A Review essay Saturday about the World Cup soccer tournament incorrectly said the automobile was a U.S. invention. Also, the last name of the essay writer’s collaborator on a book about soccer, Michael Davies, was misspelled as Davis. An Off Duty article Saturday about “bonus preppers” incorrectly called Nick Robbins’s fiancée his wife, and the article failed to mention that she is employed by the company that makes their home’s water system. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. some of the Michigan girls and women have also filed suit against USA Gymnastics, alleging that Nassar’s link to the elite team allowed him to attract new patients and that USA Gymnastics knew or should have known about his actions. The per-victim settlement amount tracks closely with the $1.25 million USA Gymnastics agreed to pay Ms. Maroney, in December 2016, to resolve her sexual-abuse claims against Nassar, The Wall Street Journal has reported. Ms. Maroney filed a lawsuit in December against Michigan State, the U.S. Olympic Committee and others, seeking in part to be released from the confidentiality agreement attached to that earlier settlement. Mr. Engler said at the time of his legislative testimony that he hoped insurance would cover settlement costs. Judy Galliher, a spokeswoman for United Educators, which provides insurance for Michigan State, said Wednesday she couldn’t share any information related to the insurer’s portion of the settlement. A person familiar with higher-education insurance policies said an insurer could try to lump together all of the losses related to a serial offender into one policy year, capping their liabilities at the one-year maximum—in this case, $39 million. The person noted that universities generally have additional liability coverage as well, besides the primary insurance policy. The school could argue, however, that claims should be paid from multiple years’ of insurance policies, because the claims allege abuse from different years. “There would be an argument that a separate policy and a separate limit would come into play. This happens a lot in asbestos, and it’s a very complex issue legally,” said James Lynch, chief actuary of the Insurance Information Institute, a trade group representing insurance companies. As part of the settlement, there will be no confidentiality agreements or nondisclosure agreements, according to attorneys for the survivors. “This historic settlement came about through the bravery of more than 300 women and girls who had the courage to stand up and refuse to be silenced,” said John Manly, an attorney for the victims. —Rebecca Davis O’Brien and Kris Maher contributed to this article. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A3 * * U.S. NEWS Last year’s fertilityrate drop was the largest one-year decline since 2010 BY JANET ADAMY American women are having children at the lowest rate on record, with the number of babies born in the U.S. last year dropping to a 30-year low, federal figures released Thursday showed. Some 3.85 million babies were born last year, down 2% from 2016 and the lowest number since 1987, according to the Centers for Disease Control and Prevention’s National Center for Health Statistics. The general fertility rate for women age 15 to 44 was 60.2 births per 1,000 women— the lowest rate since the government began tracking it Fewer Babies Births per 1,000 women reached an all-time U.S. low in 2017 120 births per 1,000 women 110 100 90 2017 60.2 80 70 60 50 1920 ’40 ’60 ’80 2000 ’17 Source: CDC’s National Center for Health Statistics THE WALL STREET JOURNAL. more than a century ago, said Brady Hamilton, a statistician at the center. The figures suggest that a number of women who put off having babies after the 2007-09 recession are forgoing them altogether. Kenneth M. Johnson, senior demographer at the University of New Hampshire, estimates 4.8 million fewer babies were born after the recession than would have been born had fertility rates stayed at prerecession levels. “Every year I expect the number of births to go up and they don’t,” said Prof. Johnson. This dearth of births could exacerbate the problems of America’s aging population. Many baby boomers are in or are near retirement, leaving a smaller share of young workers to pay into Social Security and Medicare. The postrecession baby lull appeared to be ending when births ticked up in 2014. But they’ve now fallen for three straight years, and last year’s fertility-rate drop was the largest one-year decline since 2010. Even women in their 30s—a group that had increasingly carried America’s childbearing in recent years—saw their fertility rate decrease in 2017. For women age 30 to 34, there were 100.3 births per 1,000 women, down 2% from the prior year. Among women age 35 to 39, the birthrate was 52.2 births per 1,000 women, down 1% from 2016. The only age group that had babies at a higher rate in 2017 was women in their early 40s, with those age 40 to 44 having 11.6 births per 1,000 JOSH GALEMORE/CASPER STAR-TRIBUNE/ASSOCIATED PRESS Births Hit Lowest Number Since 1987 Federal figures show that American women are having children at the lowest rate on record. Above, a newborn in Casper, Wyo., in April. women, up 2% from the prior year. One bright spot in Thursday’s figures, which are preliminary, is a continued sharp decline in teen births, which fell 7% last year. Since 2007, the teen birthrate has declined by 55%, and is down 70% since its peak in 1991. Children born to adolescents are more likely to have poorer educational, behavioral and health outcomes throughout their life. “I’m absolutely astounded at the continuing decline in teen birthrates,” Mr. Hamilton said. Public health advocates credit the broader use of longacting birth control such as intrauterine devices with helping drive down these rates, though many factors are likely at play. CIA Nomination Advances in Senate BY BYRON TAU WASHINGTON—The Senate Intelligence Committee recommended Gina Haspel as the next Central Intelligence Agency director, clearing the path for her confirmation by the full chamber. The committee on Wednesday voted 10-5 to advance Ms. Haspel’s nomination to be the first woman to lead the agency, forwarding it to the full Senate. Republican leaders are hoping to confirm her this week, though the vote could slip into next week. She has the support of at least six Democrats, all but assuring her confirmation. Ms. Haspel, 61 years old, would become only the second person to lead the CIA after spending an entire career undercover. During her confirmation, Democratic lawmakers have voiced frustration over the limited amount of information available about her past and long CIA career. The CIA has said she is a native of Ashland, Ky.; a graduate of the University of Louisville; and a Johnny Cash fan. It also said she has spent 33 years with the agency rising through the ranks of the CIA’s post-Soviet European operations to hold top jobs supervising covert actions, managing U.S. spies’ collection of human intelligence and working on counterterrorism. Her nomination was, at times, mired in controversy because of certain parts of her furtive career. Between 2003 and 2005, Ms. Haspel was in charge of a secret detention center where at least one detainee was waterboarded, which the U.S. now considers torture. And she wrote a memo that led to the destruction of 92 videotapes showing detainees being subject to harsh interrogation. A CIA review said the decision to destroy the tapes was made by Ms. Haspel’s boss, Jose Rodriguez, who was then director of the National Clandestine Service. Ms. Haspel became deputy director of the agency in 2017. After her predecessor, Mike Pompeo, was confirmed as secretary of state in April, she also became acting director. North Carolina Teachers Latest to Protest CHARLES MOSTOLLER/BLOOMBERG NEWS Thousands of teachers marched in support of increased school funding on Wednesday in Raleigh, N.C., trying to harness momentum from protests in other states to draw attention to deteriorating buildings and salaries that lag the national average. Pennsylvania Contest Is Contrast of Styles BY SCOTT CALVERT Pennsylvania State Sen. Scott Wagner, who has been likened to President Donald Trump, captured the Republican primary for governor Tuesday, winning the right to challenge Democratic Gov. Tom Wolf this fall. Mr. Wagner took the primary with 44% of the vote after a bruising, expensive campaign. Retired health-care consultant Paul Mango finished second with 37% and lawyer Laura Ellsworth came in third with 19%. The general election pits two wealthy businessmen from York County in the south-central part of the state. Mr. Wagner owns a large waste-hauling firm, and Mr. Wolf previously owned a cabinet company. But the two men share little else in common, personally or politically. While the 69-year- old Mr. Wolf comes across as reserved and professorial, Mr. Wagner, 62, is known for his blunt political rhetoric. The election could wind up as a referendum not only on Mr. Wolf’s first term as governor, but also as a gauge of Mr. Trump’s standing in Pennsylvania, said Chris Borick, a political-science professor at Muhlenberg College in Allentown, Pa. “I think Wagner is very much the type of candidate that’s going to be a test of Donald Trump’s agenda and approach to politics this fall,” Mr. Borick said. “He is in many ways of style and ideology aligned with the president.” The general-election campaign is sure to be expensive. Mr. Wolf, who didn’t face a primary challenger, has a $14 million war chest, according to campaign finance reports. Mr. Wagner, whose campaign spent more than $12 million in the primary, including more than $3 million of his personal money, had $2.2 million on hand in late April. Registered Democrats account for 48% of the state’s 8.5 million voters, and Republicans make up 38%, according to the Pennsylvania Department of State. “Other parties” account for 13%. In 2014, Mr. Wolf defeated then-Gov. Tom Corbett, a Republican, 55% to 45%. In the 2016 presidential contest, Donald Trump narrowly defeated Democrat Hillary Clinton in Pennsylvania, 48.6% to 47.9%. In his victory speech Tuesday evening, Mr. Wagner said the state needs more jobs and economic development, and he said property taxes were too high. “The people will have a clear choice this fall: a bold disrupter who isn’t afraid to tell you like it is or a timid leader who is more interested in getting re-elected than getting things done,” Mr. Wagner said in his prepared remarks. The Wolf campaign went on the offensive Wednesday, posting a web video that calls Mr. Wagner “the very worst of Harrisburg.” It asks, “Do we really want a guy like Scott Wagner as our Governor?” The Wagner campaign responded by saying Mr. Wolf “seems to have changed his mind on attack ads” after criticizing Republicans for running negative campaigns. Jack Hanna, chairman of the Pennsylvania Democratic Party, issued a statement calling Mr. Wagner an “extremist” and said he is “absolutely unfit” to be governor. Mr. Hanna said the Democratic Party stands for issues like good jobs, a higher minimum wage and access to good health care. HANDCRAF TED MODERN CHAIN V I S I T O U R S O H O B O U T I Q U E AT 118 P R I N C E S T R E E T . A4 | Thursday, May 17, 2018 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL. U.S. NEWS Trump Discloses Repaying Cohen Watchdog Readies A top executive at Swiss drugmaker Novartis AG is stepping down amid the controversy over payments that corporations made to a company owned by President Donald Trump’s longtime personal lawyer. Novartis said general counsel Felix Ehrat, 61 years old, is retiring from the company in connection with $1.2 million in payments it made over the course of a year to Michael Cohen’s shell company, Essential Consultants LLC. Novartis has said the payments, made in $100,000 monthly installments under a contract that ended in February, were aimed at gaining insight into U.S. health-care policy. Novartis Chief Executive Vasant Narasimhan last week called the agreement a mistake and denied any involvement himself. —Brian Blackstone BY ARUNA VISWANATHA AND SADIE GURMAN Donald Trump disclosed reimbursing Michael Cohen, above, for a payment to Stormy Daniels, below. refer the matter to the Justice Department for criminal prosecution. Mr. Trump’s lawyers didn’t immediately respond to a request to comment. Overall, the president’s financial picture appeared to remain largely the same as the last time he reported his finances, about a year ago. He listed assets of at least $1.4 billion and income of at least $452 million, slightly less than in his previous financial disclosure—which included several months of 2017 and all of 2016. The new report covers only 2017. The properties Mr. Trump has frequented as president appear to be driving his income. The Trump International Hotel in Washington produced more than $40.4 million, his Mar-aLago private club in Florida more than $25 million, and Trump National Doral golf club near Miami about $75 million— making it potentially his highest-earning asset. Mr. Trump’s new disclosures include income from several entities that were formed during his presidency, including more than $100,000 in sales from T Retail LLC, which is described as a startup online retail business. He also reported more than $20,000 in management fees from Westminster Hotel Management LLC, an entity created in May 2017. Although Mr. Trump’s sons are running the business, the president maintains significant ownership, including in entities formed during his time in the White House. Most of the Westminster management company is owned by DJT Holdings LLC, which is in turn owned by the Donald J. Trump Revocable Trust, one of the primary vehicles for the president’s holdings. Among other new items, the president reported receiving $1,900 in golf equipment from pro golfers Kevin Streelman and Bryson DeChambeau. Mr. Trump also disclosed an actor’s pension, which was $6,543 in 2017. He also received royalties from appearances in “The Fresh Prince of Bel-Air” and “The Little Rascals.” Multiple subjects of a report on the Justice Department’s handling of a 2016 investigation into Hillary Clinton’s email use have been notified that they can privately review the report by week’s end, signaling the long-awaited document is nearing release. Those invited to review the report were told they would have to sign nondisclosure agreements in order to read it, people familiar with the matter said. They are expected to have a few days to craft a response to any criticism in the report, which will then be incorporated in the final version to be released in coming weeks. Michael Horowitz, the Justice Department’s inspector general, told lawmakers last month he expected to issue the report in May, but Tuesday’s notification was the first indication that Mr. Horowitz has largely completed his inquiry. Congressional committees are expected to review the report in coming weeks. Mr. Horowitz’s office issued a related report last month, which laid the groundwork for the firing of former FBI Deputy Director Andrew McCabe, finding that he misled investigators probing his role in providing information to a reporter for The Wall Street Journal. Mr. McCabe disputed the allegations. The inspector general’s yearlong review is expected to yield sharp criticism of actions by several top officials, including former Federal Bureau of Investigation Director James Comey’s announcement in July 2016 that Mrs. Clinton had been reckless with the nation’s secrets but he was recommending against prosecuting her. RUSSIA Continued from Page One this year said Russia didn’t aim to boost Mr. Trump’s chances of winning the election but instead sought to subvert the notion of free and fair elections and spread “chaos and discord” in the U.S. Russia’s alleged role in the election—and whether there was any collusion between Mr. Trump’s associates and the Kremlin—is a central part of special counsel Robert Mueller’s investigation, which is separate from the congressional probes. Several guilty pleas and criminal indictments of Mr. Trump’s associates have arisen from Mr. Mueller’s investigation, including charges of tax fraud and conspiracy to launder money. None of the charges relate to collusion with Russia, and the House Intelligence Committee report said it found no evidence of coordination between the campaign and Moscow. Mr. Trump has denied there was any collusion and has criticized Mr. Mueller’s probe as a “witch hunt.” Russia has denied interfering in the election. The Senate Intelligence Committee is expected to release a more detailed evaluation in the coming weeks that addresses the question of collusion. The president hailed the House Intelligence Committee’s findings last month, tweeting, “As I have been saying all along, it is all a big Hoax.” He issued no public comment, as of Wednesday evening, on the Senate panel’s release, and the White House didn’t respond to a request for comment. A separate Senate committee release Wednesday detailed several attempts by a billionaire Russian-Azerbaijani family to communicate with Mr. Trump’s associates over Russia’s interest in a repeal of the Magnitsky Act. The 2012 U.S. law targets Russian human-rights abuses. The Senate Judiciary Committee released transcripts of interviews it had conducted that suggest the Agalarovs sought to act as a conduit, before and after the election, for Russians seeking the law’s repeal. Most notably, Rob Goldstone, a representative of the Agalarovs, arranged a meeting MARY ALTAFFER/ASSOCIATED PRESS Novartis Executive Exits Over Payment Report on FBI Probe DREW ANGERER/GETTY IMAGES A new financial disclosure from President Donald Trump acknowledged that he reimbursed his lawyer, Michael Cohen, for a $130,000 payment to an adult-film star just before the 2016 election, the first time the president has officially stated the payment in government disclosures. A footnote in Mr. Trump’s 2017 financial disclosure released Wednesday documented a reimbursement of between $100,001 and $250,000 for expenses in 2016 to his attorney for payment to Stephanie Clifford, known professionally as Stormy Daniels. The payment wasn’t listed in his previous financial disclosure, released last year. Disclosure rules require liabilities to be listed. The Office of Government Ethics said Wednesday that it considered the payment to Mr. Cohen to be a liability that needed to be disclosed, and flagged the matter to the Justice Department. The Wall Street Journal previously reported that Mr. Cohen struck an agreement with Ms. Clifford weeks before the presidential election. Through a limited liability company, Mr. Cohen paid Ms. Clifford $130,000. Mr. Trump’s attorney, Rudy Giuliani, said recently that the president paid monthly installments of $35,000 to Mr. Cohen beginning in early 2017 to reimburse him. Mr. Giuliani said he wasn’t aware of whether Mr. Cohen had advised the president about why he had paid Ms. Clifford, who alleged a sexual affair with Mr. Trump. Mr. Trump has denied a relationship with Ms. Clifford. The Office of Government Ethics’ acting director, David Apol, wrote in a letter Wednesday to Rod Rosenstein, U.S. deputy attorney general, that he was forwarding Mr. Trump’s financial disclosures from this year and last in case there is any open inquiry. “OGE has concluded that the information related to the payment made by Mr. Cohen is required to be reported and that the information provided meets the disclosure requirement for a reportable liability,” the new financial disclosure says. The letter to Mr. Rosenstein notes that Citizens for Responsibility and Ethics in Washington had filed a Justice Department complaint in March alleging that Mr. Trump had improperly failed to note the reimbursement to Mr. Cohen in a report he signed in June 2017. Presidents aren’t required to submit financial disclosure forms in their first year in office, and Mr. Trump did so voluntarily last year, following the tradition of previous presidents. He certified the form as true. Such a certification means that if a person knowingly included incorrect financial information, the OGE can seek a civil penalty such as a fine or HECTOR RETAMAL/AGENCE FRANCE-PRESSE/GETTY IMAGES BY JULIE BYKOWICZ AND RICHARD RUBIN President Trump’s son-in-law, Jared Kushner, and Donald Trump Jr. in Trump Tower in 2016. The meeting, which was previously reported and is being investigated by Mr. Mueller, was pitched by Mr. Goldstone as an opportunity for Russians to share incriminating information on Democratic presidential nominee Hillary Clinton, Mr. Trump’s 2016 rival. It was attended by the president’s eldest son, Donald Trump Jr., his son-in-law, Jared Kushner, and his then-campaign chairman, Paul Manafort. Mr. Goldstone and Russian lawyer Natalia Veselnitskaya, among others, also attended. Donald Trump Jr. asked the Russia’s alleged role in the election is a central part of Robert Mueller’s probe. visitors if they had dirt on Mrs. Clinton, according to the testimony of one of the Russians who attended. But the Russians provided scant information and focused instead on the Magnitsky Act, with Ms. Veselnitskaya asking the younger Mr. Trump to “look out for this,” according to Mr. Goldstone’s testimony. Donald Trump Jr., according to Mr. Goldstone, told her to take her concerns to Mr. Obama’s administration and ended the meeting. The president hasn’t called for the Magnitsky Act to be overturned. In 2015, shortly after Mr. Trump launched his campaign, Mr. Goldstone offered to ar- range a meeting between Mr. Trump and President Vladimir Putin of Russia. That never took place. Weeks after the election,Mr. Goldstone also sent Mr. Trump’s personal assistant a document noting that the Magnitsky Act was “one of the key issues” preventing a thaw in U.S.-Russia relations. The assistant forwarded the document to Steve Bannon, then the incoming White House chief strategist. The U.S. intelligence community issued a finding in January 2017 that Mr. Putin ordered a campaign to influence the outcome of the 2016 election and that Mr. Putin aspired to help Mr. Trump to victory and denigrate Mrs. Clinton as part of a broader ambition to undermine Western liberalism. The Senate Intelligence Committee’s members “see no reason to dispute the conclusions,” Sen. Richard Burr (R., N.C.), the panel’s chairman, said in a statement Wednesday. Sen. Mark Warner of Virginia, the committee’s top Democrat, said: “Despite the short time frame they had to prepare it, the intelligence community did a very good job.” The House and Senate intelligence committees were both charged in early 2017 with examining the evidence around what happened during the presidential election and writing a public report. The House committee process has been rife with partisan infighting over the course of the yearlong investigation. The Senate Intelligence Committee has remained more unified throughout the process. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A5 * * * * U.S. NEWS BY TIMOTHY PUKO ANDREW HARNIK/ASSOCIATED PRESS WASHINGTON—Scott Pruitt, the head of the Environmental Protection Agency, continued to defend himself on Wednesday against a growing list of allegations involving management missteps and spending at the agency, denying some and deflecting others in a Senate subcommittee hearing. Sen. Tom Udall (D., N.M.) counted up 16 continuing federal reviews of Mr. Pruitt’s actions, including two at the White House. They range from issues involving travel and security costs, to personnel moves at the agency and how he obtained rental housing connected to a Washington lobbyist. “Every day there seems to be a new scandal and you at dead center,” said Mr. Udall, the top Democrat on the subcommittee and a longtime critic of Mr. Pruitt. “I’m worried you are spending all of your time enriching yourself and your friends while betraying your mission to protect human health and the environment.” Mr. Udall also alleged that an EPA staffer helped Mr. Pruitt look for housing in Washington and that work qualifies as a gift in violation of federal law. Mr. Pruitt reiterated past defenses that some of the accusa- tions are false, and that other actions he took were justified by policy needs or cleared by ethics and security officials. He said he did get help from a staff member with house hunting, but that staff member was a longtime family friend helping on her own time. In regards to reports that he rented accommodations in Washington at below-market rates from the family of an energy lobbyist, Mr. Pruitt has noted that his agency’s ethics officer signed off on his lease agreement. That review came months later and the ethics office has since said it is revisiting the issue. Mr. Udall said he has asked the Government Accountability Office to investigate whether the agency has violated a ban on political speech in government social media. He singled out an April 13 tweet in the EPA’s official account that said “the Democrats couldn’t block the confirmation of” former coal lobbyist Andrew Wheeler to the agency’s No. 2 post. “I was unaware of the tweet and that shouldn’t have occurred,” Mr. Pruitt said. Mr. Pruitt also confirmed there is a legal fund set up for his personal defense when he was asked about it by Sen. Chris Van Hollen (D., Md.). EPA’s Scott Pruitt faces questions on a growing list of allegations. Canadian Leader Addresses NYU Graduates Industrial Output Increased In April BY JOSH MITCHELL DREW ANGERER/GETTY IMAGES Pruitt Is Grilled At Senate Hearing DRAWING A CROWD: Prime Minister Justin Trudeau was at Yankee Stadium on Wednesday to speak at New York University’s commencement ceremony and pick up an honorary doctor of laws degree. Trump Says Mexico ‘Does Nothing for Us’ on Border BY PETER NICHOLAS WASHINGTON—President Donald Trump on Wednesday portrayed Mexico as a poor ally in a meeting with local California officials devoted to illegal immigration, maintaining that the country “does nothing for us.” Mr. Trump made his remarks at a round-table discussion in the White House Cabinet Room that reporters were invited to attend. A San Diego official had told the forum about the case of a gunman who had shot to death a San Diego man earlier this year and is now living “openly and freely” in Tijuana. Kristin Gaspar, a Republican supervisor in San Diego County, said criminals have the luxury of finding sanctuary either “across the border” in Mexico or in California, where she said they are “shielded by Gov. Moonbeam”—a deroga- tory nickname for California’s Democratic governor, Jerry Brown. Ms. Gaspar is a candidate for the House seat currently held by Darrell Issa (R., Calif.), who is retiring. Mr. Trump, after listening to her account, asked: “Do you find Mexico helps us or does nothing for us?” Ms. Gaspar replied that Mexico “does not help with cases like this because it will take years.” Broadening the issue, Mr. Trump said: “Mexico does nothing for us.” He continued: “Mexico talks but they do nothing for us, especially at the border. They certainly don’t help us much on trade, but especially at the border they do nothing for us.” At one point, as the discussion turned to gang members, Mr. Trump touted his record in expelling people from the country. “We have people coming into the country, or trying to come in—and we’re stopping a lot of them—but we’re taking people out of the country. “You wouldn’t believe how bad these people are,” he continued. “These aren’t people. These are animals. And we’re taking them out of the country at a level and at a rate that’s never happened before.” The Mexican embassy didn’t respond to a request for comment about Mr. Trump’s remarks. In a tweet to Mr. Trump in response to Wednesday’s round-table discussion, Mr. Brown accused the president of “lying about the laws” of California. “Flying in a dozen Republican politicians to flatter him and praise his reckless policies changes nothing.” Mr. Trump’s administration is negotiating with Mexico and Canada on an overhaul of the 24-year-old North American Free Trade Agreement. WASHINGTON—U.S. industries pumped out more goods in April to meet growing demand from consumers and businesses, another sign the economy is gaining momentum. Industrial output—reflecting everything produced by factories, mines and utilities— rose a seasonally adjusted 0.7% in April from a month earlier, the Federal Reserve said Wednesday. That marked the third straight month of higher production. Production increased broadly across all sectors and has risen 3.5% over the past year. Households are buying more consumer goods and companies are stepping up investment in equipment as they gain confidence in the economy. Factories, in turn, are stepping up output. Factory output rose 0.5% over the month and 1.8% over the past year. The industrial sector is a slice of the overall economy. But the boost in output suggests the economy is strengthening. The nation’s gross domestic product—the broadest measure of goods and services produced in the U.S.—rose at a 2.3% annual rate in the first quarter, according to a government estimate, and many economists project growth is approaching a 3% rate in the current quarter. A separate measure suggests the industrial segment of the economy is firming but not to the extent that inflation seems about to surge. Capacity utilization—reflecting how much industries are producing, relative to their potential output—rose 0.4 percentage point last month to 78%, the highest level in three years. Securing the Robertsons’ Amazing Vacation. Airports around the world rely on Unisys to process luggage securely – over a million bags a month. Which means families everywhere, just like the Robertsons, will have swimsuits to wear on vacation. Find out more at Unisys.com/Travel. Consulting | Services | Technology . A6 | Thursday, May 17, 2018 * * THE WALL STREET JOURNAL. WORLD NEWS North Korean Remarks Don’t Deter U.S. Trump officials proceed with plans for summit despite tough talk from Pyongyang PARK CHUL-HONG/YONHAP/ASSOCIATED PRESS President Donald Trump is still planning to hold a summit meeting in Singapore with North Korean leader Kim Jong Un, U.S. officials said, brushing off sharp comments by one of Pyongyang’s senior diplomats that caught the Trump administration by surprise. By Michael R. Gordon and Nancy A. Youssef in Washington and Jonathan Cheng in Seoul While proceeding apace with summit plans, Mr. Trump and his foreign-policy team on Wednesday also refrained from firing back with tough words of their own. Mr. Trump previously has called North Korean leader Kim Jong Un “rocket man” and warned of American “fire and fury.” Secretary of State Mike Pompeo spoke to his South Korean counterpart as part of a broader effort to coordinate for the June 12 summit, and called Singapore’s foreign minister to thank his government for agreeing to host the summit, the State Department said. “This is something we fully expected,” White House press secretary Sarah Sanders said of the North Korean warning. “The A U.S. F-22 jet fighter landed in Gwangju, South Korea, on Wednesday during a military exercise. president is very used to and ready for tough negotiations.” The administration’s uncharacteristically subdued response followed North Korea’s angry denunciation of the Max Thunder air exercise in South Korea, which involve F-22s, some of the most-advanced U.S. fighters. Most significant were the comments of Kim Kye Gwan, North Korea’s first vice minister at the Ministry of Foreign Affairs, who objected to U.S. as- sertions that Pyongyang should quickly dismantle its nuclear arsenal in return for economic benefits. John Bolton, Mr. Trump’s national-security adviser, has suggested that the dismantlement of North Korea’s nuclear arsenal should be based on Libya, where leader Moammar Gadhafi agreed to give up his nascent nuclear program. “It is absolutely absurd to dare compare the DPRK, a nuclear-weapon state, to Libya, which had been at the initial stage of nuclear development,” Mr. Kim said. Some U.S. experts said North Korea’s comments may be an effort to strengthen its bargaining position after Trump administration officials asserted their “maximum pressure” campaign had driven the North Korean leader to the bargaining table. “They are putting down some markers and resetting expectations,” said Robert J. Ein- horn, a former U.S. negotiator, adding it was a message that North Korea’s flexibility shouldn’t be taken for granted. But Anthony Ruggiero, a former Treasury Department official, asserted the comments showed North Korea was still clinging to its decades old strategy of trying to get economic benefits up front while deferring hard decisions on dismantling its arsenal. “They could have been written in the 1990s,” Mr. Ruggiero said of the North Korean statements. “This indicates there has been no change in their thinking.” There have been a number of indications that the U.S. and North Korea may not mean the same thing by denuclearization. Trump administration officials have referred to a speedy approach that might be accomplished within a year under which sanctions relief and economic benefits wouldn’t be conferred until the end. Mr. Kim has suggested he was interested in a phased and potentially prolonged approach in which benefits would be delivered along the way. The Trump administration, for now, appears determined to get Mr. Trump and Mr. Kim together to explore if the gap might be bridged and is seeking to avoid provocations. After North Korea denounced the Max Thunder exercise on Wednesday, South Korean officials made clear that it wouldn’t include American B-52s, a nuclear-capable bomber that worries Pyongyang. American officials insisted B-52s were never part of the exercise and refused to discuss operations of the bombers, which are stationed on Guam. A spokesman for South Korea’s president on Wednesday said the “current situation is a difficult process” but played down the possibility that the North would back out of the summit. Over the Years, Twists, Turns and Backtracking in North’s Negotiations BY CHRIS GORDON North Korea over the past 25 years has altered course or backtracked on a string of international commitments pertaining to its weapons programs. Here are some previous instances of North Korean diplomatic shifts: The Non-Proliferation Treaty, 1993: In the early 1990s, North Korea, a signatory of the international nuclear Non-Proliferation Treaty, drew suspicions from the International Atomic Energy Agency, the United Nations body charged with regulating compliance of the treaty through inspection agree- ments. After the IAEA was refused access to sites it suspected contained hidden nuclear-weapons material, the U.N. Security Council insisted that North Korea comply with the agreement. In March 1993, North Korea said it was withdrawing from the NPT, though it later suspended the decision. The Six Party Talks, 2003-2009: These talks were launched in August 2003 among the U.S., China, South Korea, Russia, Japan and North Korea. In 2005, North Korea promised to give up its nuclear weapons and programs and return to the NPT. In return, it would receive aid and security guarantees. In October 2006, North Korea conducted its first nuclear test. In 2007, talks were restarted. North Korea disabled its nuclear reactor at Yongbyon and allowed the IAEA to send inspectors. North Korea, however, insisted the inspections be restricted to Yongbyon. In April 2009, North Korea test-fired a three-stage Unha-2 rocket. North Korea said the test firing was for a civilian space program. The U.N. Security Council said it was a violation of a resolution banning ballistic-missile tests. As a result, North Korea said it would no longer be bound by the Six Party Talk agreements. One month later, the country conducted its second nuclear test. WSJ TALK / E XPERIENCE / OFFER / GE TAWAY Learn to Cook With AwardWinning Chefs Take your ambition to the kitchen with 50% off a one year membership to Panna, the James Beard Award-winning cooking video app for foodies. From weeknight dinners to holiday feasts, stream recipes, tips and hacks— anytime, anywhere. EXCLUSIVE TO WSJ MEMBERS REDEEM NOW AT WSJPLUS.COM/PANNA50 © 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6494 . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A7 * * * * * WORLD NEWS Bolton Draws Pyongyang Ire Old Rivals Chart Malaysia’s Path After Upheaval BY JAMES HOOKWAY KEVIN LAMARQUE/REUTERS WASHINGTON—President Donald Trump’s new national security adviser has suddenly become the administration’s political lightning rod in talks with North Korea, which delivered an unusually personal attack on Wednesday in threatening to pull out of June’s highstakes summit with the U.S. John Bolton, known for his bushy white mustache and his confrontational foreign-policy views, is a longstanding figure in the capital’s foreign-policy circles and has quickly established himself as the president’s prime confidant since taking the job five weeks ago. Mr. Bolton has become a constant presence at Mr. Trump’s side, a position once held by chief of staff John Kelly, whose sway with the president has waned. Mr. Bolton has moved to quickly consolidate power by forcing out rivals jockeying for influence in the White House, current and former Trump administration officials said. He has sought to dispel his image among detractors as a pompous warmonger by building bridges with other administration officials including Defense Secretary Jim Mattis and Jared Kushner, Mr. Trump’s son-in-law and a key presidential adviser. On Wednesday, North Korea unleashed a blistering condemnation of Mr. Bolton, who came to the White House job after arguing publicly that the U.S. had the right to strike the country even if it didn’t pose an imminent threat to America or its allies. Mr. Bolton has championed a hard-line negotiating position ahead of the planned June 12 summit in Singapore. In television interviews, he has warned that the U.S. won’t ease economic pressure until North Korea gets rid of its nuclearweapons program. He has cited Libya’s agreement in 2003 to eliminate its nascent nuclear program as a template for talks with North Korea, which de- ‘It’s what the North Koreans do,’ national security adviser John Bolton said of the criticism. nounced the comparison as an insulting and “sinister move.” “We shed light on the quality of Bolton already in the past, and we do not hide our feeling of repugnance toward him,” said Kim Kye Gwan, North Korea’s first vice minister for foreign affairs. It wasn’t the first time North Korea has singled out Mr. Bolton for criticism. In 2003, when he was serving as an undersecretary of state while President George W. Bush tried to negotiate with North Korea, Mr. Bolton delivered a speech in Seoul where he denounced then-North Korean leader Kim Jong Il. “I knew I had struck home when the DPRK’s news agency denounced me as ‘human scum,’ probably the highest accolade I received during all my service in the Bush years,” Mr. Bolton wrote in his memoir, “Surrender is Not an Option.” On Wednesday, Mr. Bolton dismissed the latest criticism. “They called me a blood- sucker. They said I was a very ugly fellow,” Mr. Bolton said on Fox News Radio. “So I kind of get used to it. It’s what the North Koreans do. The question is whether this really is a sign that they’re not taking our objective of denuclearization seriously.” Mr. Bolton has pushed out some people and brought in his own allies. Mr. Trump and his press secretary, Sarah Sanders, brushed off North Korea’s threats. Some analysts suggested North Korea might trying to marginalize Mr. Bolton’s more uncompromising views within the administration and encourage Mr. Trump to lean more on new Secretary of State Mike Pompeo, the former Central Intelligence Agency director who has traveled to North Korea twice. A former ambassador to the U.N., Mr. Bolton has worked to build trust and bring in his own allies. Mr. Bolton pushed out Tom Bossert, the president’s former homeland-security adviser and eliminated the White House cyber coordinator position, a move some Democrats criticized because it came amid growing cyberthreats. Mr. Bolton also nudged out two top deputies who had been loyal to his predecessor, Lt. Gen, H.R. McMaster, and brought in one ally known for feuding with Mr. Mattis and the Pentagon leadership. The swift personnel moves, in additional to a reorganization of the NSC that merged several directorates, demonstrated that Mr. Bolton had the president’s ear, one person familiar with his thinking said. KUALA LUMPUR, Malaysia— When it finally came, Anwar Ibrahim’s release from detention Wednesday was almost as dramatic as the democracy leader’s first arrest more than 22 years ago—ordered by the man who is again leading Malaysia, Prime Minister Mahathir Mohamad. Swarmed by news-camera teams at the hospital where he had been serving a sentence on what he says were trumped-up sodomy charges, Mr. Anwar was hustled into a black SUV by prison guards for a trip to the national palace to see the country’s king, Sultan Muhammad V. Along the way supporters waved banners and chanted “Long live Anwar!” in Malay and English and “Reformasi!” (Malay for “reform”). After a brief ceremony with the king and a handshake with Mr. Mahathir, Mr. Anwar left a free man for the first time in three years, saying he would rest and travel before considering his political role. “I will be informed and I will take an interest,” Mr. Anwar said, looking trim and with a tidy goatee. “But I don’t have to serve in the cabinet for now.” His return will likely revive a decades-old rivalry with Mr. Mahathir, political insiders say—this time, to direct the ragtag coalition they formed to defeat former Prime Minister Najib Razak and the United Malays National Organization, which had led the country since independence in 1957. One complication is that the 92-year-old Mr. Mahathir has already pledged to hand power to Mr. Anwar in a year or two, making him something of a lame duck. The two are at odds on economic policy, Mr. Anwar more a free-market advocate and Mr. Mahathir a champion of economic nationalism during his first stint in office, from 1981 until his 2003 retirement. Many in Mr. Anwar’s camp are wary of Mr. Mahathir’s autocratic tendencies, although he has said he would try to rein himself in. The two have a long and complex history. Two decades ago, helicopter searchlights swept the streets outside Mr. Anwar’s home as police moved in to arrest him. The prime minister had fired Mr. Anwar as his deputy after a dispute over how to steer the economy through the 1990s Asian financial crisis. Knowing he was facing arrest on sodomy charges, Mr. Anwar took to the streets, organizing mass protests against Mr. Mahathir and the ruling coalition. Mr. Anwar spent six years in prison before his conviction was overturned. In an interview before his release, Mr. Anwar said he accepted Mr. Mahathir’s offer to hand over power and had agreed to put their conflicts behind him. —Yantoultra Ngui in Putrajaya, Malaysia, and Jake Maxwell Watts in Kuala Lumpur, Malaysia, contributed to this article. LAI SENG SIN/REUTERS BY DION NISSENBAUM AND MICHAEL C. BENDER Anwar Ibrahim kisses his wife after his release Wednesday. . A8 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. * * WORLD NEWS WORLD WATCH Origin Rules Pose Brexit Challenge BY JASON DOUGLAS Estimated percentage of domestic and foreign inputs in U.K. exports U.K. inputs EU Non-EU Fishing and aquaculture Mining and quarrying Basic pharmaceuticals Chemicals Autos CHRIS RATCLIFFE/BLOOMBERG NEWS At a Ford Motor Co. plant near London, workers manufacture cylinder blocks, crankshafts and other components for Ranger pickup trucks that are sold to buyers across the European Union. The finished vehicles don’t roll out of a factory in the U.K. or anywhere else in the EU. The components made in Britain are sent to South Africa, where the trucks are put together and shipped back thousands of miles to European dealers. This continent-spanning assembly line highlights what executives and trade experts say will be one of Brexit’s challenges: Rules of origin in trade with the EU. The rules are used by customs authorities to establish where a product came from in order to waive or levy a tariff. For vehicles, smartphones and other products that include raw materials and manufactured components from around the world, making that determination can be fiendishly complex. Some of the world’s toughest trade disputes revolve around the issue. U.S. President Donald Trump has taken aim at the origin provisions of the North American Free Trade Agreement between the U.S., Canada and Mexico. Goods currently move freely between member states inside the EU’s customs union. But U.K. Prime Minister The- Assembly Lines Transport equipment Electrical equipment Metals Computers Petroleum products 0 25 Engines are assembled at Vauxhall factory in Luton, England. resa May’s plan to leave the customs union will bring rules of origin into play. Mrs. May wants to replace the customs union with a freetrade agreement with the EU. For the 80% of British exporters that sell to the EU, that will create new costs. Complying with rules of origin is “quite a laborious process—and an expensive one,” said Nimisha Raja, founder of Sittingbourne, England-based Nim’s Fruit Crisps, which makes and sells dried-fruit chips world-wide. Costs include legal fees, auditing fees and occasionally translation fees. “Selling to the EU is like selling to someone in Manchester,” Ms. Raja said. But she 50 75 100% Source: Center for European Reform/Absolute Strategy Research reckons that after Brexit, complying with rules of origin for the 40% of her sales that currently go to the EU would absorb around 6% of the average sale price, and up to 15 hours a month of her staff’s time. Rules of origin have been a feature of free-trade accords for decades. The goal, according to Sam Lowe, a trade policy expert at the Center for European Reform, a nonpartisan London think tank focused on EU policy, is to prevent one party to a trade agreement passing off cheap imports as homemade, in order to qualify for preferential access to another party’s market. When products include components from a variety of THE WALL STREET JOURNAL. sources, the proportion of “homemade” content is carefully calculated depending on the amount of work carried out in the home country. Localcontent thresholds needed to qualify for preferential access vary depending on the product. Around 50% is typical. Trade agreements also allow for so-called cumulation, which permits components and other inputs to be designated as local content for a finished product provided they originate from the parties to that trade deal. Consider Ford’s Ranger. The U.K. is a member of the EU and the EU has a free-trade accord with South Africa. That means the crankshafts and other Ford parts made near London are treated as European components of the South Africa-made vehicle, which is currently able to enter the EU tariff-free. The concern for Ford is that won’t necessarily be the case once the U.K. exits the EU. Those crankshafts and cylinder blocks won’t qualify as local content for the EU—unless the U.K. can agree on new cumulation agreements with the EU and South Africa. Absent such a deal, “the components would have to be sourced from South Africa or the EU in order for Ford to continue to meet the rules-oforigin requirements for the Rangers produced in South Africa for the EU market,” a Ford spokeswoman said. A Modern Love Story, a More Modern Monarchy Prince Harry and Meghan Markle’s marriage promises to bring British aristocracy in step with Britain BY JENNY GROSS Long Growth Streak Comes to an End Japan’s economy contracted in the first three months of 2018 on weak private consumption and business investment, putting the brakes on the nation’s longest growth streak in 28 years, government data showed. The world’s third-largest economy shrank at an annualized pace of 0.6% in the January-March period, compared with revised 0.6% growth in the final quarter of 2017. The contraction was the first since the final quarter of 2015. It comes as the Japanese economy seemed to have finally escaped decades of stagnation, helped by economic policies including the Bank of Japan’s aggressive monetary easing. The new data are a setback for Prime Minister Shinzo Abe, who has used the run of growth as evidence of the success of his economic platform. Still, officials and analysts expect the decline to be temporary. Some analysts expect the economy to rebound as soon as this current April-June quarter. —Megumi Fujikawa TURKEY Currency Hits Dollar Low Before Uptick The lira tumbled to a record low against the U.S. dollar, extending a steep slide that investors attribute to President Recep Tayyip Erdogan’s unorthodox economic approach and concerns over his influence over the central bank. The lira, which hit a low of 4.5011 to the dollar in early trading Wednesday, reversed its daily losses after the central bank issued a statement saying it would take “necessary steps” to shore it up. In afternoon trading, the lira was up 0.5% at 4.4250 to the dollar. Mr. Erdogan, who has said high interest rates are “the mother and father of all evils,” is campaigning for re-election on a pledge that the central bank will continue to lend on the cheap. —Yeliz Candemir NILE RIVER Riparian States Agree to Joint Study and Ms. Markle have been the subject of intense scrutiny in the press. In recent days, her family has been the focus, with TMZ.com reporting that her father won’t attend the wedding, and the Times of London saying some family members were “determined to milk everything they could out of their relationship to the royal bride.” Officials from Ethiopia, Egypt and Sudan made progress after months of acrimony over how to share the waters of the Nile river, smoothing tensions in a conflict that has threatened to upset the political balance in the Horn of Africa. The spat is pitting Egypt against a rising Ethiopia, which is building a $4.2 billion dam on the Nile’s main tributary that Egypt, which depends on the Nile for its water supply, fears will divert too much water and place pressure on its agriculture. Another tributary of the Nile flows through Sudan to where the two channels meet at Khartoum. The foreign ministers of Egypt and Ethiopia and Sudan’s water minister agreed at a meeting in Cairo to a joint scientific study of how quickly the dam being built by Ethiopia should be filled. They signed a document calling for the leaders of the three countries to meet every six months. —Matina Stevis-Gridneff starter for Mr. Moonves. A CBS spokesman said, “There could not have been a deal on price in isolation from the other aspects of this transaction.” CBS said in court documents that its special committee came to the conclusion last weekend that a merger wasn’t in the best interests of CBS shareholders. In determining to take action to dilute the Redstones’ voting interest, CBS pointed to media reports, including in The Wall Street Journal, that Ms. Redstone was considering replacing board members. While National Amusements denies it ever considered a wholesale overhaul of CBS’s board, it said in its filing that it did push to replace one CBS board member: Charles Gifford. A major figure in Boston’s financial community and chairman emeritus of Bank of America, Mr. Gifford is close to Mr. Moonves and sat on CBS’s powerful compensation committee, according to people familiar with the matter. He also sits on CBS’s special committee, which consists of five independent directors evaluating the merger. All five were named as plaintiffs along with CBS in Monday’s lawsuit against Ms. Redstone and National Amusements. Last Friday, Mr. Klieger, who is Ms. Redstone’s lawyer in addition to being a CBS director, resurfaced longstanding concerns about Mr. Gifford and his behavior, and asked that he be removed from the board. CBS said in a statement that it is “unfortunate and revealing that NAI has resorted to baseless personal attacks.” Mr. Gifford referred a call to CBS and its statement. National Amusements argues that voting to strip it of its controlling position would be “a breach of fiduciary duty by the directors who vote in favor of it” with “simply no precedent in Delaware law.” CBS countered that it is a “basic principle of Delaware law that a controlling stockholder cannot use its control over corporate process to harm other stockholders.” —Peg Brickley contributed to this article. PHIL NOBLE/REUTERS LONDON—When Prince Harry marries American actress Meghan Markle in a pomp-filled ceremony on Saturday, it will mark a giant step in the modernization of the British monarchy, as its younger members increasingly take center stage and recast the family as a less tradition-bound clan. The grandson of Queen Elizabeth II and Ms. Markle have planned a wedding outside Windsor Castle that seeks to include members of the public. But the glare of media attention around the nuptials underscores continued tension between the royal family and the British press. The wedding between Prince Harry, the sixth in line to the throne, and Ms. Markle, a mixed-race, divorced star of the popular American television series “Suits,” marks a seismic shift in the once-stodgy reputation of the British monarchy. “Someone who has been divorced and doesn’t come from an aristocratic family shows the monarchy is adapting to a modern age,” says Vernon Mogdanor, a professor in U.K. constitutional history at King’s College London. Ms. Markle’s father is a white cinematographer, and her mother is an African-American social worker and yoga instructor. JAPAN Wax figures of Prince Harry and Meghan Markle are on display in Windsor, England, ahead of the couple’s nuptials there on Saturday. Prince William and his wife, Catherine, the Duchess of Cambridge, have helped reboot the image of the royal family by presenting a more polished image in the media than the previous generation of royals. But Prince Harry, 33, and Ms. Markle, 36, promise to do more to bring the British aristocracy in step with modern Britain. Indeed, while the pomp and circumstance of the ceremony Saturday will be rooted in centuries-old customs, the wedding will break with tradition in other ways. At the reception, Ms. Markle is expected to give a speech, a first for a royal wedding, according to local media reports. And Ms. Markle’s mother, Doria Ragland, may walk her down the aisle. Broadcasters are planning blanket coverage of the festivities, while cable channels and television networks are rolling out reality shows, documentaries and series related to the event. But the media and the royal family have long had a complicated and, at times, troubled relationship. Since their romance became public, Prince Harry CBS Continued from Page One on Thursday to vote on diluting the Redstones’ control. In a Wednesday hearing in Delaware Chancery Court, the judge ordered an effective standstill to prevent both sides from making any more moves before he issues a decision on CBS’s request for the temporary restraining order. The written decision was expected by Thursday before CBS’s board meeting. Judge Andre Bouchard ordered the short-term standstill in response to National Amusements’ last-minute maneuvering before the hearing. “I have never seen anything quite like what transpired here,” he said. A half-hour before the start of the hearing, National Amusements announced a change to CBS’s bylaws requiring a supermajority of board members to approve actions such as dividends and amendments to bylaws. The effort to dilute National Amusements’ voting power is structured as a stock dividend, and as long as National Amusements is still the controlling shareholder, it has the power to change CBS’s bylaws without signoff by the board. The supermajority requires 90% of CBS’s 14 board members to approve such a change, according to a person familiar with the matter. Because Ms. Redstone, who is vice chairman of CBS, would likely have the support of the two Redstone family lawyers also on the board, Rob Klieger and David Andelman, that would make CBS’s proposed dilution of the Redstones’ voting control unlikely to pass, the person said. Neither Mr. Klieger nor Mr. Andelman responded to a request for comment. “The latest step by NAI provides further evidence of why we concluded that we had no choice but to file our action in the Delaware courts, in order to protect the interests of all CBS shareholders,” CBS said in a statement in response to the bylaw change. “We continue to be confident in our position JESSE GRANT/GETTY IMAGES FOR VIACOM FROM PAGE ONE Shari Redstone is embroiled in a fight to keep control of CBS. and look forward to presenting our case in court.” In court documents, National Amusements said that while it had no intention of overhauling CBS’s management and board, CBS’s latest actions “have forced NAI to consider exercising its rights.” Ms. Redstone has been urging CBS and Viacom, the two companies National Amusements controls, to consider a merger for the better part of two years. After dropping an effort in late 2016, she revived it at the start of the year. According to the National Amusements’ lawyers, the CBS and Viacom special committees considering the merger came to an economic agreement on the terms of the merger, and were simply held up over Ms. Redstone’s desire that Viacom Chief Executive Bob Bakish get a board seat in the merged company—a non- . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A9 * * * * WORLD NEWS Top Maduro Rival Riles Venezuelan Vote As opposition parties boycott Sunday election for president, Falcón campaigns Lawyers Publicize Caracas Prison Riot With Inside Video TURMERO, Venezuela— Henri Falcón, the top Venezuelan opposition candidate in Sunday’s presidential election, faces two obstacles to winning: his friends and his foes. He must not only outmaneuver a ruling administration using state machinery to dominate the vote. But Mr. Falcón must also overcome the reluctance of a coalition of like-minded opposition parties boycotting a contest they say is rigged. Mr. Falcón’s message, in contrast, is: You can’t win if you don’t participate. “I decided to show my face to the country,” Mr. Falcón told followers last week from a stage in this hard-bitten industrial town southwest of Caracas. “I don’t care about the criticism....It’s the moment of truth now, a time for common sense, for being rational.” Mr. Falcón, a 56-year-old retired soldier, ex-governor and, most notably, a former government ally, has emerged as the sole politician with a chance to end a government whose poor stewardship has sparked an exodus of as many as three million Venezuelans to other countries. Polls are mixed, but some show Mr. Falcón ahead of the unpopular president, who is running for a second term. To win, Mr. Falcón acknowledges, he needs to deliver a substantial victory. “We are going to be recognized by the world because who could not recognize eight million, seven million Venezuelans in the street, celebrating that they have a new government,” he told The Wall Street Journal in an interview. He appeals to the needs of the working-class voters, those most hurt by an economy that OSCAR B.CASTILLO/FRACTURES COLLECTIVES FOR THE WALL STREET JOURNAL BY KEJAL VYAS AND JUAN FORERO Candidate Henri Falcón, campaigning recently in Turmero, is leading the unpopular Venezuelan President Nicolás Maduro in some polls. has contracted 40% in the past five years, punctuated by blackouts and a broken waterdelivery system, hunger, high crime rates and hyperinflation. Mr. Falcón is campaigning in towns like this one, in Venezuela’s heartland, where President Nicolas Maduro's administration’s popularity has waned. Among Mr. Falcón’s pledges: He would welcome humanitarian aid from abroad that the government blocks and stop subsidizing Venezuela’s Caribbean neighbors with oil shipments. Wearing a Tshirt with the slogan “better to welcome than to say goodbye,” he said he wanted fleeing Venezuelans to return. Though a leftist who is loath to criticize socialism, Mr. Falcón nevertheless has offered what would be a radical recipe for Venezuela: replace the bolivar with the dollar to help poor Venezuelans who have lost all purchasing power, eliminate exchange controls that deter foreign investment, and seek help from the International Monetary Fund. Not all of his supporters are enthusiastic but see him as the ‘It’s the moment of truth now, a time for common sense, for being rational.’ best chance to defeat Mr. Maduro. “He’s not Winston Churchill, but he’s what we’ve got,” said one longtime politician who publicly supports Mr. Falcón. “People say, ‘I don’t like Falcón.’ I say, ‘I don’t either.’ But the alternative is Maduro.” Many in the opposition ar- gue that it is self-defeating not to support Mr. Falcón, no matter the odds. A Brookings Institution study over a 20-year period of 171 situations where politicians threatened or carried out boycotts found that the tactic is counterproductive. Vicente Díaz, an opponent of the government who served on the electoral board, has publicly said he would vote for Mr. Falcón. And if millions of others do the same, Mr. Díaz said, then the government wouldn’t be able to steal the election. “If an avalanche of votes is produced it could swamp any electoral condition,” he said. Mr. Falcón’s camp is trying to defend from fraud by deploying 34,000 monitors at most of Venezuela’s 14,000 voting centers to help compare the voting-machine receipts with the final count. But even supporters like Pe- dro Nikken, an elections expert here who has advised Mr. Falcón, said it would be challenging. “The possibility that he wins is big,” he said. “The possibility that the win be recognized isn’t.” Polls show most voters are ignoring the call to abstain. Yolanda Campos, 55, who says she loved Mr. Maduro’s predecessor, former President Hugo Chávez, is ready to back Mr. Falcón. Her daily wage is now about 12 cents. She has gone six months without diabetes and blood pressure pills because she can’t afford them. Running water is but a memory in her home. She welcomes Mr. Falcón’s plan to dollarize the economy and said that she, her four children and many neighbors in her slum will vote for him. “Falcón is the best option to get Maduro out of there,” she said, “anything but Maduro.” CARACAS—U.S. and Venezuelan rights lawyers condemned what they said was a riot that broke out here Wednesday at a detention center controlled by the intelligence police where more than 50 political prisoners are held, including a Utah man who has been locked up without trial since 2016. In a series of cellphone videos that lawyers said were distributed on social media by families of detainees, American Joshua Holt and several Venezuelan political dissidents made a desperate plea for help as inmates took control of a part of the Helicoide prison in Caracas. Rights lawyers said the inmates were protesting against torture and their indefinite jailing without due process. “The only people kidnapping me is the government of Venezuela,” Mr. Holt, a 26year-old former Mormon missionary who was arrested with his Venezuelan wife on espionage and weapons charges, said in one of the videos. The reported uprising comes just ahead of President Nicolás Maduro’s re-election bid on Sunday. The U.S. government and much of Latin America have deemed the vote a sham and have promised heavier sanctions against Venezuela. In two Twitter messages, Attorney General Tarek William Saab, a Maduro loyalist, said a team of Venezuelan prosecutors was working to resolve the situation but didn’t provide details. Calls to the country’s Information Ministry seeking comment weren’t immediately returned. —Kejal Vyas and Ryan Dube Ex-First Lady Drops Mexico Presidential Bid MARCO UGARTE/ASSOCIATED PRESS BY JUAN MONTES AND ANTHONY HARRUP Polls this month showed Margarita Zavala trailing badly. MEXICO CITY—Former first lady Margarita Zavala said she is withdrawing her candidacy for the July 1 presidential election, likely giving a boost to Ricardo Anaya of the conservative National Action Party, who polls say is in second place, ahead of a Sunday debate. Wednesday’s announcement, which narrowed the field to four, was followed by gains in the peso against the dollar. Ms. Zavala’s withdrawal could narrow the double-digit poll lead of leftist nationalist Andrés Manuel López Obrador, who is widely seen as the least marketfriendly of the candidates. “The most likely thing is that Margarita’s supporters will move to Ricardo Anaya, and [her decision] will give him momentum ahead of the debate. That could add fuel to the PAN candidacy,” said Luis Carlos Ugalde, a political consultant and former head of Mexico’s electoral agency. Campaign aides said that so far, Ms. Zavala isn’t throwing her support behind any candidate, although people close to her said she could eventually join Mr. Anaya’s campaign. Ms. Zavala, a former lawmaker and the wife of former president Felipe Calderón, made the announcement in a roundtable program with the Televisa network that was to be aired late Wednesday. Televisa posted a brief excerpt from the program online. Ms. Zavala said she was leaving the race “out of a principle of congruence and politi- cal honesty, but also to allow the people who generously supported me the freedom to make their decision in this difficult contest.” She broke with the PAN in October to run as an independent candidate after an internal dispute with Mr. Anaya, who was party president at the time. Mr. Anaya refused to organize a party primary to choose the PAN candidate, then agreed on a coalition with two other smaller parties and himself as the candidate. Both the PAN and the ruling Institutional Revolutionary Party said they would invite Ms. Zavala to join their campaigns. Ms. Zavala’s campaign suffered from lack of funding, and she has been losing support in recent polls. A survey conducted May 11-13 by Consulta Mitofsky showed Mr. López Obrador with 44.5% of voter preferences, compared with 28% for Mr. Anaya and 19.8% for José Antonio Meade of the ruling party. Independent candidate Jaime Rodríguez had 4% and Ms. Zavala 3.7%. Taliban Quit Attempt For Syria, Another Milestone in Conflict To Seize Afghan City KABUL—Taliban insurgents gave up their bid to take over the capital of the western province of Farah on Wednesday, slipping out of the city in the early-morning darkness without any apparent resistance from government forces, residents said. By Craig Nelson, Habib Khan Totakhil and Ehsanullah Amiri After a day of intense fighting with government forces, backed by Afghan and U.S. fighter aircraft and drones, Taliban fighters were unable to seize control of the remote provincial capital—a goal Afghanistan’s largest insurgency has been unable to achieve anywhere in the country since 2015. To avert further bloodshed, roads out of the capital, which bears the same name as the province, were left open by government forces so Taliban fighters could withdraw to the sparsely populated and largely rural areas outside the city, said one local man contacted by telephone from the Afghan capital, Kabul. By late morning, he and authorities said, shops were open in Farah and residents who had fled were returning to their homes, some on streets still littered with bodies and where government tanks and armored vehicles were posted. Meanwhile, offensive operations by government troops were continuing outside the capital, said Army Lt. Col. Martin O’Donnell, spokesman for U.S.-led international forces in Afghanistan. It wasn’t immediately known whether the ease with which the Taliban left the city resulted from an explicit agreement between commanders on both sides. Breaking off fighting to avoid further bloodshed is a time-honored and frequently practiced tradition in civil conflicts in Afghanistan. Abdul Basir Salangi, the provincial governor, said the Taliban were “shamefully defeated” in their attempt to capture the city. Mr. Salangi said more than 300 Taliban fighters were killed or wounded in the fighting. Among government soldiers and police, 10 were killed and another 10 wounded. Three civilians also died, he said. The casualty figures couldn’t be independently verified. The extent of property damage in Farah wasn’t clear. Thwarted in their original aim to seize control of Farah, the Taliban, in the aftermath of the fighting, sought quickly to redefine success. They issued a statement describing their fighters’ departure from the city as a strategic retreat ordered by commanders. The Syrian government took control of the country’s largest province, state media said, as the Assad regime moved ahead with its Russiaand Iran-backed campaign to capture remaining territory from rebels after more than seven years of conflict. Rebel fighters and thousands of civilians are leaving the last opposition-held enclave in central Homs province this week under evacuation deals with Damascus, after years of government siege and a recent military assault that forced their surrender. The Homs province and its eponymous capital played an important role in the uprising against President Bashar alAssad as its neighborhoods and towns were some of the first in the country to break free of government control. The Assad regime is increasingly consolidating control over large parts of the country, further throwing into doubt the likelihood of a negotiated peace settlement. The Assad government in early April completely captured Eastern Ghouta, the last rebel stronghold near the capital Damascus, after nearly two months of a Russiabacked assault that included a suspected chemical-weapons attack. Since then, it has accelerated its push to seize small, isolated pockets under rebel control through the LOUAI BESHARA/AGENCE FRANCE-PRESSE/GETTY IMAGES BY RAJA ABDULRAHIM Syrian security forces raise the government flag in the town of Rastan in Homs province. same strategy: siege and bombardment. Limited U.S., French and British missile strikes on Syrian-government targets in response to the chemical attack haven’t slowed the regime’s drive to seize territory. Although ostensibly protected under an internationally backed agreement brokered last year by Turkey, Russia and Iran, the Homs enclave came under air attacks by regime warplanes following the government capture of Ghouta. More than 30,000 people already have left the opposition Homs enclave, according to the United Nations. Others wanting to leave have been slowed by a shortage of buses. More than 120,000 people have been displaced from various parts of Syria as a result of the recent surrender agreements, according to the U.K.based Syrian Observatory for Human Rights. Those who have been displaced have been bused to one of the last opposition strongholds, an area in northwest Syria which includes Idlib and northern Aleppo provinces. The U.N. estimates 2.2 million people are in Idlib, twothirds of them having been dis- placed from elsewhere in Syria. Jan Egeland, head of the U.N. task force for humanitarian aid to Syria, has called it “the biggest refugee camp on earth.” And those being displaced aren’t necessarily finding safety. On Wednesday, the Organization for the Prohibition of Chemical Weapons confirmed that chlorine gas was likely used as a chemical weapon in February on the town of Saraqib, in Idlib province. It didn’t issue blame for the attack, which injured a number of people. —Nour Alakraa contributed to this article. . A10 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A11 . THE WALL STREET JOURNAL. A12 | Thursday, May 17, 2018 IN DEPTH PLANES REMY DE LA MAUVINIERE/EPA/SHUTTERSTOCK Continued from Page One majority-owned by two of the crown prince’s younger brothers was awarded a coveted broadband license from the government, Saudi records showed. Additionally, in 2015, Prince Mohammed helped engineer a multibillion-dollar deal between European plane giant Airbus SE and Saudi Arabia’s state-owned Saudia Airlines, according to documents reviewed by The Wall Street Journal and interviews with more than a dozen people involved in the transaction. The deal is worth tens of millions of dollars to his family, the documents show. A spokeswoman for the Saudi embassy in Washington declined to comment about Prince Mohammed’s business dealings. Crackdown JOBS Continued from Page One League school. Nearly 500 doctors, veterinarians, nurses and researchers applied for the 66 spots in this year’s incoming class—the smallest in more than 20 years, due to tight funding. CDC veterans were out to generate as much excitement for their diseases as possible at a four-day conference in April. “Ask me about brain-eating amebas,” a supervisor in the waterborne disease prevention branch beckoned on a sign. She was referring to Naegleria fowleri, an organism found in warm lakes and rivers that can travel up the nose to the brain and destroy tissue. Aside from promises of cutting-edge epidemiologic investigations and travel to exotic locales, agency scientists use costumes, signs, balloons and tables groaning with chocolatechip cookies and Nerds candies—which staff pay for out of pocket—to entice candidates to steer their careers toward one Prince Mohammed bin Salman and then-French President François Hollande stand in the background at a 2015 signing ceremony. $100,000 to invest in Saudi stocks, he has said. Prince Mohammed kept trading through college and law school. Through the early 2010s, as his father moved up the royal ranks, he was appointed to a series of government positions. During that time Prince Mohammed made billions of Saudi riyals—hundreds of millions of dollars—on the Saudi stock market, he has told several people interviewed by the Journal. Prince Mohammed also branched into business. Saudi corporate records as of 2017 show he owns stakes in at least five real-estate development companies, as well as a recycling firm. He is also 20% owner of Watan Industrial Investment Co. Ltd., a chemical producer that supplies state-controlled firms including Aramco, the government’s oil company, the documents show. A company called Tharawat has emerged as a key player in the business activities of Prince Mohammed’s family. According to corporate filings, one of his younger brothers, Turki bin Salman, owned 99% of the investment firm as of May 2017, while another brother, Naif, owned the remaining 1%. Prince Turki has since bought his brother’s stake, according to Ammer al Selham, Tharawat’s CEO. In practice, Prince Mohammed controls and benefits from Tharawat’s business, say several people familiar with their dealings, including two who have discussed the firm with him. Mr. Selham disputed that, saying: “At no time was HRH Prince Mohammed bin Salman a shareholder or a beneficiary of the company.” Tharawat and a subsidiary own the majority of a tech firm called Jawraa that was awarded a coveted broadband license from the Saudi government in 2014, Saudi records show. The license allowed it to become one of three companies operating new mobile-phone networks in the country. Tharawat has had interests in fish farms, real estate, tech services, agricultural-commodity trading and restaurants. It owns an office park in Riyadh. An investment vehicle Tharawat owns, Nasaq Holding, says on its website that it is investing in awful disease over another. It’s an attempt at viral marketing for jobs that are also described in a dense 180-page government-issue booklet. EIS officers are dispatched to the front lines of outbreaks of all kinds, from deadly Ebola in West Africa and Zika in Brazil to bedbugs in Tennessee and toxoplasmosis from venison kebabs on a men’s church retreat in Wisconsin. They also help combat smoking, obesity and HIV. Founded in 1951, it’s a critical program, said Anne Schuchat, the agency’s principal deputy director, a former EIS officer herself. Her first outbreak involved a fungal infection traced to sphagnum moss that had been used to pack tree saplings. For the investigation, Dr. Schuchat interviewed members of a small-town garden club. It was “lovely,” she recalls. “They had ice tea and lemonade, and I was drawing blood.” At this year’s job fair, staff from the division of health-care quality promotion wore T-shirts with the slogan “Superbugs Beware! Resistance is Futile.” “It shows we’re fun,” said The Airbus Deal A 2015 plane deal by Saudi Arabia's state-controlled airline, Saudia, sent proﬁts to a company owned by Turki bin Salman — son of the Saudi king and brother of crown prince, Mohammed bin Salman. Saudia Airlines Airbus to invest $100 million in ALIF if the fund bought only Airbus planes. On June 23, 2014, Airbus and IAFC held a “signing ceremony” in London, hosted by Prince Turki bin Salman, International Airfinance said in a press release. Then, in January of 2015, King Abdullah died and the original Saudia-Airbus plane deal stalled. New plan Leased 50 planes Sold 50 planes ALIF fund % of ALIF fundraising proﬁt Investors Quantum Tharawat owns 54% Tharawat Holding owns Prince Turki, brother of crown prince Siemond Chan/The Wall Street Journal Source: Documents from companies construction to take advantage of “the government’s tenth development plan including investments worth $358.2 billion in real estate.” Saudi corporate filings show that Tharawat owned a company that partnered with Ochsner Health System in New Orleans to bring Saudis to the U.S. for organ transplants. The kingdom’s struggling flagship air carrier, Saudia Airlines, provided Tharawat with another lucrative opportunity. In 2014, at the advice of Western “transformation” experts, the money-losing airline reached a tentative deal with Airbus to revitalize its aging fleet. The arrangement would have provided Saudia with dozens of jets financed by the Saudi government’s Public Investment Fund, or PIF, says a person involved in the talks. By THE WALL STREET JOURNAL. agreeing up front to take 50 planes, Saudia would get a major discount. As it turned out, Prince Mohammed’s family was at that very moment eyeing its own investment in airplanes. Tharawat in 2014 acquired a 54% stake in Quantum Investment Bank, a Dubai-based company with scant history of deal making, corporate documents show. Prince Turki, Mohammed’s younger brother, became Quantum’s chairman. Quantum executives didn’t respond to requests for comment. Executives from Quantum and another small bank formed a company called International Airfinance Corp., or IAFC, to enter the jet-leasing business. IAFC became the manager of a fund called ALIF, structured to follow Muslim strictures against paying interest. Airbus agreed Soon after Salman took the throne, Saudi officials told Airbus they had a new plan, say people familiar with the deal: Rather than selling the jets to the Saudi government, Airbus would sell them to ALIF—the fund connected to the bin Salman family—which would in turn rent the planes to Saudia. People involved in the process say Saudia didn’t solicit competitive bids from leasing companies, and rebuffed the advances of companies seeking to offer competitive rates before choosing ALIF to do the deal. Saudia Vice President Abdulrahman Altayeb said in an email that “the aircraft acquisition transaction was in accordance with Saudia’s internal procedures, which included a review of the lease price to ensure its competitiveness against the market benchmark, as well as aircraft delivery schedule being in line with Saudia’s requirements related to its fleet plan.” At the time of the deal, some Airbus executives had reservations. Airbus faced investigations into potential corruption overseas by Western law enforcement, including a probe by the U.K.’s Serious Fraud Office into possible bribery by an Airbus subsidiary in Saudi Arabia, and didn’t want further problems. “When I saw Turki was taking over, it kind of brought cold water on all our excitement about the fund,” says a person involved. Ultimately, this person said, Airbus relented. It was one of the biggest plane deals of the year. Plus, a person involved with the discussions said, Airbus officials decided “we don’t want to prevent the son of the king doing business.” Others with a stake in the deal were thrilled by the involvement of a Saudi prince. At the time of the deal, some Airbus executives had reservations. share staff, according to statements by Quantum and IAFC and people familiar with the companies. A person involved in structuring the deal defended the fund’s high projected returns, and said the lease rate shouldn’t be compared with other airplane-leasing deals. There are few comparable arrangements, this person said, since it involved many planes and an Islamic-finance component. Prince Mohammed finalized the deal during a 2015 visit to France, says a Saudi official. Not long after, the crown prince took credit for the transaction, according to a person who was present. “I am the mastermind behind this deal,” the prince said, explaining how it showed his success in balancing state financial interests with his family’s. BETSY MCKAY/THE WALL STREET JOURNAL (3) The story of the Airbus deal suggests this mixing of business and government remains a staple of the Saudi economy, despite the crown prince’s highly publicized crackdown on many other royals who the prince said abused their power to get rich. Indeed, Airbus decided to go into business with the king’s family despite its reservations over the blurry distinction between private and public financial interests, according to people familiar with the matter. An Airbus spokesman declined to comment, saying the company had a policy of not discussing any of its business dealings that could potentially be under investigation by law enforcement agencies. The modern Saudi state was created in 1932 when Abdulaziz ibn Saud united two regions of the Arabian peninsula and became the first king. American geologists would soon discover oil in the desert, providing a gusher of cash to fund a lavish lifestyle for the royal family. Many of Abdulaziz’s sons— he had dozens—and grandsons started companies to take on no-bid government contracts or otherwise profit from their political power. Those practices continued after King Abdulaziz died in 1953 and the crown passed to a succession of his sons. One prince held the country’s only expressmail license, via a joint venture with DHL, the shipping company now owned by Deutsche Post AG, which became an oftrepeated example of how the royal family steered business toward itself. A DHL spokeswoman declined to comment. Prince Salman didn’t focus so much on gathering wealth, say people close to the family. While his brothers built fortunes, Salman gathered power. He spent 48 years as Riyadh’s governor, overseeing the city’s expansion from a dusty desert enclave to a petrodollar-fueled metropolis of modern skyscrapers and wide boulevards. It was around 2000 when the teenage prince had what he would later call a shocking realization: His father wasn’t rich. Salman subsisted on money from his brother, then-King Fahd, Prince Mohammed has told people. He lived a hand-tomouth existence—if a lavish one—spending the cash on family expenses, rather than saving or investing. The concerned prince, seeking more financial independence, scraped together about Different divisions of the Centers for Disease Control and Prevention competed to attract new members of the Epidemic Intelligence Service during a recent job fair. Kim Skrobarcek, a physician who tapped her skills as a former college sorority social chair to design them. Not to be outdone, the malaria branch hung a blue net over its table, studded with hand-drawn paper cutouts of mosquitoes. Printouts of popular Instagram and Snapchat memes—Kermit the Frog, Willy Wonka, and movie heroes from “Black Panther” and “The Matrix”—lay scattered on the table and taped along a nearby hallway. “We’re attracting millennials,” explained Anjoli Anand of the malaria branch. The division of foodborne, waterborne and environmental diseases, which investigates salmonella and E.coli outbreaks, decorated tables with balloons in the shape of a poop emoji and in- vited recruits to a spread including cupcakes with neon frosting. “We try to keep it pretty safe,” Matthew Wise, deputy chief of the outbreak response and prevention branch, said. The charm offensive feels unusual to the new recruits, who are accustomed to stiff competition for coveted medical residencies and Ph.D. programs. “We’re sort of hiring them Some Saudi officials were left scratching their heads. Within the government and airline, says one official, “everyone thought it makes more sense for the PIF to finance that deal,” since buying 50 planes at once would net Saudia a huge discount. Under the lease deal, Saudia wouldn’t get the benefit of that discount. Deal documents the Journal reviewed and interviews with people involved in the deal detail a convoluted chain of transactions that ends up benefiting Tharawat, the bin Salman company. As one government official put it, “at the end it went to Tharawat, who got others to finance it, and made huge profits without risking any of their money.” The chain begins with Quantum, the bank Tharawat coowns, and where Turki bin Salman was appointed chairman. Quantum arranged funding from investors and banks for buying planes, receiving a payment for each equity investment and tranche of debt raised, people familiar with the arrangement say. The ALIF fund raised about $4 billion as of 2017, according to IAFC’s website. ALIF used the money to buy Airbus planes at a big discount—more than 60% off the list price, say people familiar with the deal. By leasing the planes to Saudia at about market-rate, rather than passing on the discount, ALIF targeted 15% returns. That’s higher than the normal 7% to 9% returns for a fund handling such leases to an airline like Saudia, says Paul Lyons of U.K. aviation-business consultancy IBA Group Ltd. IAFC, which manages ALIF, has a potentially big upside itself: It stands to get a big chunk of the deal’s profit, even though it doesn’t have any equity in the fund. Deal documents show IAFC gets 35% of profits above 7% return on investment, and 50% of profits above 10%. Mr. Selham, the Tharawat CEO, said neither Quantum nor Turki bin Salman is a shareholder of IAFC, which is registered in the Cayman Islands and doesn’t disclose its ownership. However, IAFC’s operations are intermingled with the bank’s. Quantum’s chief executive is also managing partner of IAFC, and IAFC and Quantum rather than them hiring us, and that’s a very new experience,” said Alexandra Medley, a veterinarian and incoming EIS officer. Making the rounds, Dr. Medley, 32, peppered EIS officers with questions. Would she be able to work with many different bugs? What about overseas projects? Jared Rispens, a 30year-old physician, quizzed supervisors of the vessel sanitation program, which responds to gastrointestinal outbreaks on cruise ships. He wanted to make sure he’d be able to spend lots of time out in the field—meaning at sea. The program’s table was topped with an armada of stress balls shaped like ships. “So people will remember us,” explained Amy Freeland, a program epidemiologist. An algorithm fine-tuned by CDC statisticians helped match officers with jobs. Dr. Rispens landed in vessel sanitation, Dr. Medley in global migration and quarantine, their top choices. The job fair is “like a crazy form of speed dating in a lot of ways,” said Eric Pevzner, chief of the EIS program. “But there’s a lot of science behind it.” . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A12A NY * * GREATER NEW YORK Clash Looming Over Port Authority At issue in standoff between Govs. Cuomo and Murphy is balance of power at the agency BY PAUL BERGER Just four months after taking office, New Jersey Gov. Phil Murphy looks set to square off with his New York counterpart over control of a sprawling bistate agency that oversees many of the region’s most important transportation infrastructure. The two Democratic governors share control of the Port Authority of New York and New Jersey, an agency with an annual budget of $8.1 billion which runs the region’s major airports, six bridges and tunnels as well as the 16-acre World Trade Center site. A Murphy administration official confirmed that the governor wants to fill the Port Authority’s deputy executive director post, a dormant position that came to symbolize the agency’s politicization amid the scandal over lane closures at the George Washington Bridge. But Mr. Murphy needs the agreement of New York Gov. Andrew Cuomo, who appoints half the agency’s board and wields veto power over the panel’s actions. “We cannot take steps backward,” Dani Lever, a spokeswoman for Mr. Cuomo, said in a statement Wednesday. If Mr. Cuomo blocks the appointment, Mr. Murphy could use his own veto power over the board’s agenda, holding up key projects, in particular at LaGuardia and John F. Kennedy airports where Mr. Cuomo is pursuing an ambitious infrastructure agenda. The Port Authority appears to be the first area in which the two governors are headed for public disagreement. The pair have collaborated on a range of issues, including gun control and opposition to the federaltax overhaul. News of Mr. Murphy’s intention to fill the Port Authority post first surfaced on New Jersey Globe, a news site founded by David Wildstein, a former Port Authority appointee who was at the center of the Bridgegate scandal. Mr. Wildstein in 2015 pleaded guilty to two counts of conspiracy for his role in mastermind- ing Bridgegate. The lane closures, over five days in 2013, caused gridlock in Fort Lee, N.J. Mr. Wildstein testified in federal court that they were intended to punish the town’s mayor for refusing to endorse Gov. Chris Christie’s reelection bid that year. Mr. Christie, a Republican, was never charged. But his top appointee at the Port Authority, Deputy Executive Director Bill Baroni, was convicted in 2016 in the conspiracy. He has appealed his conviction. A special panel convened by Govs. Christie and Cuomo recommended that Mr. Baroni’s former position be merged with that of the executive director— an appointment traditionally filled by New York’s governor— to create an impartial chief ex- ecutive officer’s position. The authority has spent two years looking for a chief executive, but the search failed in large part because legislators in New Jersey refused to pass a bill enshrining the position. The current executive director, Rick Cotton, was appointed by Mr. Cuomo. His principal New Jersey counterweight is the agency’s chairman, Kevin O’Toole, who was appointed by Mr. Christie. John Degnan, a former Port Authority chairman, said that as long as the chief executive post is unfilled, it makes sense for Mr. Murphy to pursue filling the deputy executive director role. “Because at the moment,” Mr. Degnan said, “the management of the Port Authority is dominated by New York people.” Powerful Storms Leave a Trail of Destruction Plan to Privatize Airport Is Reassessed BY JOSEPH DE AVILA Westchester County officials are putting the brakes on a plan to privatize the county airport. George Latimer, the Democratic county executive who took office in January and has been critical of the airport deal, said the county would reevaluate the previous administration’s proposal that would hand over operations to a private company. “What is the standard by which we give up public authority?” Mr. Latimer said at a news conference Wednesday. “We ought to have a public debate about what is the trade-off.” A few days after Republican County Executive Rob Astorino lost his bid for a third term in office this past November, his administration tapped Macquarie Infrastructure Corp. to take over the operations of the airport. Under that deal, Macquarie would have received a 40-year lease, during which it would have paid the county $595 million and invested $550 million in airport upgrades. The county legislature never voted on the accord and it never took effect. Mr. Astorino had argued that $550M SETH WENIG/ASSOCIATED PRESS Cost of upgrades once planned for Westchester County Airport. THE BIG CLEANUP: A man in Newburgh, N.Y., on Wednesday walked past damage caused by thunderstorms that pummeled the Northeast. At least three people were killed and more than 200,000 homes and businesses were without power. New York Gov. Andrew Cuomo deployed the National Guard to assist with recovery. SOS to Rescue Ship From Scrap Heap of History U.S COAST GUARD CAMDEN, N.J.—Preservationists are sounding the alarm about the future of the Barnegat, a historic but dilapidated light ship docked at a private marina here. Preservation New Jersey, a private nonprofit, is including the Barnegat on its 2018 list of 10 most-endangered historic places in the state with hopes of sparking a grass-roots fundraising effort. The ship is in dire need of maintenance and repair, said the group’s director, Courtenay Mercer. “Eventually, if nobody does anything to restore it, it’s just going to fall apart,” she said. “There seem to be no plans or funding to restore it.” Built in New Jersey in 1904 and listed on the National Register of Historic Places, the Barnegat is believed to be one of fewer than two dozen light ships remaining in the U.S. A total of 179 light ships were built for the U.S. government from 1820 to 1952 for use as “floating lifehouses,” with KATE KING/THE WALL STREET JOURNAL BY KATE KING Built in 1904 and docked in New Jersey, the Barnegat is believed to be one of fewer than two dozen light ships remaining in the U.S. crews that deployed flashing lights and foghorn signals to warn commercial ships away from shallow water, rocks, sandbars and other dangers. In their heyday in 1909, there were 51 stationed in the U.S. “This was before GPS and the satellite-navigation systems that we have today,” said Michael Lang, director emeritus for the Camden Shipyard & Maritime Museum. Like most light ships, the Barnegat is easily recognizable from afar by its name, which is painted in large white letters on its red hull. But for years the historic ship, which is now covered in rust and peeling paint, has sat unused and largely hidden from the public at Pyne Poynt Marina in Camden. Rod Sadler, who owns Pyne Poynt Marina and chairs the nonprofit that owns the Barnegat, bought the ship in 1993. He was interested in the Barne- gat partly because his father worked on it in 1944, maintaining and repairing its body. Mr. Sadler said he would like to fix up the Barnegat and make it accessible to the public as a museum, but the ship is now in need of a total overhaul, which he estimated could cost several million dollars. During the final years of World War II, Barnegate was used as an examination vessel, intercepting and inspecting ships entering the Delaware River. The ship was decommissioned in March 1967 and then spent several decades docked in Maryland and Philadelphia. Mr. Lang said the Barnegat is an important historical touchstone for New Jersey that’s worth preserving. “If and when this ship no longer exists because there’s nobody maintaining it,” he said, “there will be quite a few people who say, ‘that was an opportunity missed.’ ” the deal would make money for the county and produce a better-run airport. But some residents worried that would lead to more flights at the airport and more noise. Mr. Latimer said the county legislature and the public will be allowed to weigh in on whether the county should hand over operations of the airport to a private firm. Westchester County Board of Legislators Chairman Ben Boykin, a Democrat, said he looked forward to reviewing the privatization plan. “Whatever choices are made about the best way to govern the airport, the decision-making process needs to be thorough and transparent,” Mr. Boykin said. “Any decisions must be sensitive to the concerns of everyone involved—taxpayers, airport customers and surrounding residents—while protecting our environment.” If the county decides to privatize the airport, it could also review proposals from other companies, not just Macquarie, Mr. Latimer said. “Since we didn’t adopt what happened last year, we are not bound to dealing with just that proposal,” Mr. Latimer said in reference to Macquarie’s offer. A Macquarie spokeswoman said the company respects Mr. Latimer’s decision to review the privatization plan with the public. “We stand ready to participate in the discussion as he and his team deem appropriate,” she said. While Mr. Latimer said the county could still move forward with privatization, he expressed skepticism about using the airport to make money. He said the airport’s impact on the environment, its role as a transportation hub and how it interacts with its neighbors were higher priorities for him. OYSTER PERPETUAL GMT-MASTER II rolex oyster perpetual and gmt-master ii are ® trademarks. . A12B | Thursday, May 17, 2018 NY THE WALL STREET JOURNAL. * *** GREATER NEW YORK A Firehouse Is Converted Into Fortune Queens building once described as a ‘white elephant’ is on the market for a record $5.5 million BYRON SMITH FOR THE WALL STREET JOURNAL Back in 1981, Megan Dees Friedman happened upon a sturdy red brick building with marble trim that had been the local firehouse in the age of horse-drawn engines. She had to have it. The building was across the East River from her home on Manhattan’s Upper East Side, in a drab PROPERTY working-class section of Long Island City known as Dutch Kills. The listing broker described it as a “white elephant.” They settled on a price of $115,000. Nearly four decades later, that part of Queens has become a destination brimming with restaurants, bars, hotels and apartment towers. And Ms. Friedman is putting the firehouse, with a glass-walled addition on top, on the market for $5.5 million—an ambitious price that would set a record for Long Island City. The listing shows how some people, through luck, vision or inertia, stand to become winners in New York City’s real-estate marketplace as the fortunes of the city—beyond Manhattan— have soared in recent years. The 25-foot-wide, threestory, two-family house at 38-06 28th St. stands out in the neighborhood, a few blocks north of the approach ramps to the Ed Koch Queensboro Bridge, where there is a mix of small woodframe houses, mostly clapboard buildings re-clad in white aluminum or vinyl siding, along with low-rise industrial buildings, and newer hotels and apartments. The firehouse was built in the mid-19th century in the federal style, long before the street was populated with small houses. It was home to Engine 161, a horse-drawn steam-powered pumper in the 1890s, after the volunteer THE CORCORAN GROUP; GARY URBANOWICZ (BELOW) BY JOSH BARBANEL Soaring Prices Sales price for homes in northwest Queens* $5 million A former Long Island City firehouse has been transformed into a top-dollar residential property. fire department in Long Island City was replaced by professional crews. The city rented the building for many years at $600 annually, rising to $660 a year in the 1920s. In 1932 a new bigger cityowned fired house opened on 29th Street. Ms. Friedman, then known as Megan Dees, grew up in Manhattan and had a brief career as a model in Paris and New York City, working alongside her identical triplet sisters. When she bought the house, with her then husband, they owned several Manhattan boutiques and imported clothing and handmade crafts from Latin America and India. They turned the basement and ground floor into warehouse and office space, and moved into an upstairs apartment. The couple quickly discovered one of the key selling points for Long Island City: Its proximity to Manhattan, 1-3 family highest price 4 3 Condo highest price 2 1-3 family median price 1 Condo median price 0 2008 ’10 ’12 ’14 ’16 * Includes Long Island City, Astoria and Sunnyside Source: Stribling & Associates THE WALL STREET JOURNAL. especially the Upper East Side, by car and by subway. Later, after Ms. Friedman divorced, she was quickly able to rent out the ground floor as an apartment by placing a classified ad with the key-phrase “two stops from Bloomingdales.” When they moved in, the nearby homes were occupied by mainly older working-class families, often city employees whose children didn’t want to stay in the neighborhood, she recalled. When neighbors learned she had paid $115,000 for the building, they said it was three times what the house was worth. In the early 2000s, Ms. Friedman and her second husband, John Friedman, a lawyer, undertook a major renovation of the house. Working with Rick Corsini, a Los Angeles architect, they added a third story with a loft-like, open, modern design, and extended the back of the house. A wide wall of windows above the original brick front created a double-height space, flooding the large kitchen with light. At the rear of the third floor, a Unborn Child of Actress Dies BY ZOLAN KANNO-YOUNGS The unborn daughter of Ruthie Ann Blumenstein, the Tony-Award winning actress who was severely hurt while pregnant in a Brooklyn crash, has died from injuries sustained in the accident, said a lawyer for Ms. Blumenstein. Ms. Blumenstein’s 5-year-old daughter, Abigail, and Joshua Lew, 20 months, were killed in March when Dorothy Bruns, a 44-year-old Staten Island motorist, plowed into pedestrians in the Park Slope crosswalk. The unborn baby, Sophia Rosemary Wong Blumenstein, died on Friday May 11, according to a statement from Ben Rubinowitz, who represents Ms. Blumenstein. Ms. Blumenstein was 39 weeks into her pregnancy. The tragedy revived calls for a crackdown on traffic violations across the city. Ms. Bruns, who has pleaded not guilty, was charged with manslaughter in the incident. The Brooklyn District Attorney’s office said she ignored warnings from doctors not to drive due to a medical condition. David Jacobs, the attorney for Ms. Bruns, declined to comment on Wednesday. Celebrated Places. Legendary Experiences. large living room features a stone fireplace and a wall of glass opening onto a 25-foot wide limestone terrace facing Manhattan, with views of midtown skyscrapers. An elevator was added, too. Prices have been rising sharply in Long Island City and nearby neighborhoods for years, with the median oneto-three-family house price jumping 67% to $1.07 million between 2011 and 2017, according to data from Stribling & Associates. The median condo price is up 69% during the same period, to $830,000. The priciest home sale in Long Island City was for $4 million in December 2015. That 20-foot wide, threestory townhouse is at 21-16 45th Ave. in a small historic district in Hunters Point. Cary Tamura of Corcoran, who is listing Ms. Friedman’s house, said the Dutch Kills firehouse has several advantages, including a cobblestone driveway, a parking garage for rare off-street parking, and a 25-foot-wide footprint. He is listing the house with two other Corcoran brokers, Frans Preidel and Rajan Khanna. “The price would set a record,” said Patrick Smith, a broker at Stribling & Associates. “It is aspirational.” GREATER NEW YORK WATCH CONNECTICUT Police: Alligator Used In Extortion Attempt Police in Connecticut have arrested a man they say placed a 3-foot alligator on top of a man in an extortion attempt. Isaias Garcia, 30 years old, of Garland, Texas, was held on $250,000 bail after pleading not guilty Tuesday to several charges including kidnapping and threatening. Authorities said a 21-year-old man called his aunt April 6 to say he had been kidnapped and his abductor was demanding $800. The aunt contacted police who told her to demand proof her nephew was OK. Police said she received a photograph of her nephew face down in a bathtub, the open-mouthed alligator on top of him. Police traced the suspect’s phone to a Shelton, Conn., hotel where he was arrested. Online judicial court records didn’t list an attorney for Mr. Garcia. —Associated Press NEW JERSEY Kykuit the Rockefeller Estate Discover a world of art and beauty in the home of one of America’s most prominent families. TOURS MAY - NOVEMBER Sleepy Hollow, NY Take Metro-North and receive a $5 discount! BUY TICKETS ONLINE AND SAVE hudsonvalley.org or call 914.366.6900 School Settles Over Sexual Misconduct A New Jersey prep school that acknowledged sexual misconduct against students and other children committed by three faculty members in the 1970s has reached a settlement with nearly two dozen victims. The Pingry School in Basking Ridge will pay an undisclosed amount to the 21 victims and improve programs to protect students on campus as part of the settlement reached last week. The school has said it’s “deeply sorry” for the sexual misconduct. It issued a 44-page report in March 2017 by a private firm that investigated abuse allegations made by former students. The report said the allegations by former students against the three faculty members were corroborated. Pingry officials didn’t know about the alleged abuse, except for a board member who heard about a faculty member’s behavior but never officially reported it. —Associated Press . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A13 LIFE&ARTS THE MIDDLE SEAT | By Scott McCartney FROM TOP: PATRICK T. FALLON/BLOOMBERG NEWS; BAYNE STANLEY/ZUMA PRESS Top Frequent-Flier Programs for 2018 Southwest leads a survey of award availability on 25 airlines, along with Air Canada, Turkish and JetBlue; American makes a big move to open up seats A FEW OF THE BIGGEST airlines level—25,000 miles for a domestic are making big changes to their U.S. round-trip, for example—on 14 frequent-flier programs, actually specific travel dates June through opening up availability and cutting October. Each airline’s 10 busiest the number of miles needed for long routes and 10 busiest metickets to places people really dium-length routes are queried to want to go. get the fullest picture of award The annual IdeaWorks survey of availability. award availability shows that while overall ability to find flights at basic “saver” levels was about Travelers have the same as last year at 25 aircomplained for years lines, American Airlines significantly relaxed its grip on award about skimpy availability seats, especially to Hawaii and Euof award seats. rope. American had availability on 80% of the possible trips IdeaWorks checked, up from about 50% last year. That moved American from the Travelers have complained for lowest award-seat availability years about skimpy or nonexistent among U.S. airlines to No. 3 behind availability of award seats and big Southwest and JetBlue. United increases in the number of miles made changes, too, and its availneeded for awards. Savvy travelers ability was up more than 10 perknow they can get more bang for centage points to 76% overall. their miles if they use them for Most of United’s improvement first-class upgrades and internacame on domestic routes rather tional business-class seats, or rethan long international trips, acdeem them on partner airlines. But cording to Jay Sorensen, president the basic-economy ticket is still of IdeaWorks, an aviation consultancy based in Shorewood, American boosted Wisc. availability of frequent“These are not flier award seats at its accidental things,” lowest ‘saver’ level, he says. “They have especially on flights to upped their game.” Hawaii and Europe. The annual survey, sponsored by travel-technology firm CarTrawler, looks at how difficult it is for travelers to redeem frequent-flier miles and points for trips. During March, IdeaWorks made more than 7,000 trip searches among 25 airlines, looking for two seats at the basic “saver” award the most widely used, and an important comparison of each program’s stinginess or generosity with award seats. While a few airlines showed big improvement, overall availability was about the same as last year, according to IdeaWorks. A few airlines showed declines of around 12 percentage points in their success rates in using awards for a specific trip, including the carrier Alaska. Alaska says it hasn’t changed its award allocations and that whatever reduced availability for the flights IdeaWorks found in its March searches was temporary. For years American has been near the bottom of the IdeaWorks survey in availability. In 2012, for example, American had award seats available on only 17% of trips longer than 2,500 miles—a key measure as travelers often want to use miles for long trips. This year, the long-trip success rate was 71%. After American’s dismal showing last year, Bridget Blaise-Shamai, American’s vice president of customer loyalty, promised change. It turned out to be dramatic. American says it made more seats available so it would be comparable in award availability to competitors like United and Delta. American jumped ahead of both, though United also showed improved availability. “Not only have we increased availability but it’s to markets that our customers value,” Ms. BlaiseShamai says. “It’s got to be where they want to go.” American says it compares its availability with that of competitors by looking at the percentage of passenger traffic on frequentflier awards reported to the Securities and Exchange Commission annually. For 2017, United and Delta were both over 7.5%; American just 6.1%. Ms. Blaise-Shamai Award Trafﬁc Some airlines disclose what percentage of passenger trafﬁc involves frequent-ﬂier awards used for tickets or upgrades. Percentage of trafﬁc on frequent-ﬂier awards 2017 2016 Southwest 13.8% 12.7% Delta 7.9% 7.9% United 7.5% 7.7% American 6.1% 6.3% JetBlue 5.0% 4.0% Notes: Passenger trafﬁc measured in revenue passenger miles; one RPM is one passenger ﬂown one mile Source: The airlines THE WALL STREET JOURNAL. says American’s changes came during 2017 and its low percentage reflects a poor start to the year in frequent-flier traffic. United says it made adjustments in November to increase availability of saver awards in the U.S. and Canada. Between November and April, MileagePlus members booked 400,000 more saver awards than during the same period a year earlier, the airline says. “Looking forward to our peak summer months, we see a doubledigit increase in award redemption,” a United spokeswoman says. Southwest and JetBlue liberally make seats available for awards and again topped the survey, along with Air Canada at 96% availability and Turkish at 95%. Mr. Sorensen says low-cost airlines consistently yield the best value for travelers in terms of free coach tickets. Six low-cost carriers in the survey averaged about 78% availability; traditional carriers, 72%. Southwest had seats available at 25,000 points or less for a domestic round-trip on 100% of queries, the same as last year. JetBlue’s success rate was 94%, also unchanged from 2017. Annual SEC filings show that customers are cashing in a lot more points than in previous years at Southwest and JetBlue. On Southwest, a staggering 13.8% of passenger traffic was on Rapid Rewards tickets in 2017, up from 12.7%. Remarkably, on average, nearly one of every seven passengers on any flight is riding on an award ticket. Southwest says redemption has been on an upward trend as customers find more ways to earn miles, such as with credit cards. That’s what the airline wants—it gets paid for miles sold to creditcard companies. Once customers use an award ticket, they rank Southwest higher in customer satisfaction surveys and are more likely to buy higherpriced fares, use a Southwestbranded credit card more frequently and buy ancillary add-ons like early boarding, says Jonathan Clarkson, Southwest’s senior director of loyalty, partnerships and products. That spending helps pay for “free” tickets. “The people who earn and redeem more points also do a lot of other things we like,” he says. “All that fosters engagement and sort of a more genuine loyalty to our brand versus just simple reward seats.” JetBlue jumped from 4% of its passenger traffic in 2016 on awards to 5%, a 25% boost. Like Southwest, JetBlue says its customers are accumulating more points and reaching levels where they can cash them in for awards faster. More airlines are giving out miles or points based on the price of a trip instead of distance. Eleven of the 25 airlines in the survey now use price; Air France/ KLM and Lufthansa made the switch in the past year. But there’s no correlation between the cash price of a ticket and the number of miles or points needed to buy it at most airlines, Mr. Sorensen says. The exceptions are Southwest, JetBlue and Norwegian, where points have specific buying power in terms of the ticket price. At other airlines, the value of a point or mile is hidden. “That is yet another point of disappointment for the consumer,” Mr. Sorensen says. INFLUENCERS HOW TO TURN FAILURE INTO ‘BILLIONS’ SASHA MASLOV FOR THE WALL STREET JOURNAL BY CHRIS KORNELIS Brian Koppelman, host of ‘The Moment,’ in the mixing studio at Goldcrest Post Productions in New York. BRIAN KOPPELMAN is miserable when he doesn’t write. And he didn’t write until he was 30. “My desire to be better than I was, my desire to be perfect on the page, my knowledge that I would fail to be as good as I wished as I was,” he says, “stopped me from doing the work.” Doing the work helped him overcome his fear of it. For two hours every morning, whether he wanted to or not, Mr. Koppelman and his writing partner, David Levien, worked on a movie script about two poker-playing friends. Mr. Koppelman, who spent his 20s working in the record industry, says it was transformative. “Those two hours changed me,” he says. “I was finally facing this thing that scared the shit out of me, and I was trying every day to do it.” His career changed, too. After many rejections, the script eventually sold and became the 1998 movie “Rounders,” starring Matt Damon and Edward Norton. In the two decades since, there have been successes, such as writing “Ocean’s 13,” and disappointments, from flopped movies (“Runner Runner”) to being fired by Martin Scorsese from the showrunner job on HBO’s “Vinyl.” (Mr. Scorsese’s representative didn’t respond to a request for comment.) Showtime is now airing the third season of “Billions,” for which he and Mr. Levien are executive producers, co-creators and showrunners. Along the way, Mr. Koppelman launched “The Moment,” a podcast in which he invites people who create things—actors, musicians, writers, chefs—to talk about their career paths. Guests range from wellknown names like the novelist John Grisham, who recounted the initial commercial failure of “A Time to Kill,” to behind-the-scenes types like screenwriter Eric Heisserer, who detailed the years of rejections he waded through en route to an Oscar nomination for “Arrival.” Mr. Koppelman, 52 years old, Please see KOPPELMAN page A15 . THE WALL STREET JOURNAL. A14 | Thursday, May 17, 2018 LIFE & ARTS WORK & FAMILY | By Sue Shellenbarger Don’t Get Too Used to Your Own Desk Before You Take Away Their Desks... To help employees adapt to unassigned seating: n Set and enforce rules for using shared meeting spaces. n Require online reservations for conference rooms. n Build soundproofing into shared workspace areas. n Allow more working from home and elsewhere. n Require senior executives to set an example by using various spaces wisely. n Encourage work groups to set team rules on social behavior. n Provide apps to help teammates find each other and communicate. n Provide technology to replace paper notes and files. n Offer etiquette training to curb slobs and squatters. n Provide shared office and cleaning supplies. Perkins + Will, above, converted its Minneapolis offices to unassigned seating. Genentech, right, moved to unassigned seating for some groups at its California headquarters. Kate Lister, research chair of an International Facility Management Association committee on the evolving workplace. The new designs “give people all these places and spaces to work—some quiet, some for group work or socializing,” she says. Unilever recently consolidated several offices into one redesigned space at its U.S. headquarters in Englewood Cliffs, N.J. About 1,500 employees share 1,200 desks and other workspaces. Eliminating offices along the windows leaves plenty of daylight for everyone, says Mike Clementi, Unilever’s vice president of human resources. Molly Kennedy, a senior global brand manager for Unilever, was a little anxious at first that “you might sit down in one place in the morning and come back and later find somebody had taken your seat,” she says. That hasn’t happened. Plus, she has gained more freedom to work from home or elsewhere, Ms. Kennedy says. Unilever has long had a policy allowing employees to work from anywhere, but the shift to unassigned seating has led to more use of the policy. Another plus for employees is often improved technology. When Fifth Third Bancorp recently shifted to unassigned seating for about half of the 3,000 employees at its Cincinnati headquarters, it added more computer monitors so employees could review and compare documents without printing them. The redesign offers a variety of seating, including treadmill and cycling desks, says Donna Burnell, managing director of enterprise workplace services. The shift is a challenge for some. “We have five generations coexisting in the workplace, from the traditionalist who has aspired to a corner office for their entire career, to the millennial who couldn’t care less where they sit,” Ms. Burnell says. She encourages resistors to see the redesign as bringing the comforts of home into the office, with multiple choices of seating and décor. Some 11% of employers meet resistance from employees, according to a 2015 survey of 538 employers by the International Facility Management Association. “Some people don’t really want a locker. They want a desk for pictures of their family and their dog, and a sense that it’s ‘mine.’ And FROM TOP: COREY GAFFER; TIM GRIFFITH/GENENTECH MANY WORKERS still miss the private offices that their employers started tearing down years ago. Now companies are planning a new surprise: They’re taking away your desk, too. Employers are replacing traditional one-desk-per-employee setups with a smaller number of first-come, first-served desks, plus additional workspaces with names like huddle rooms and touchdown spaces. Some 25% of employers are placing at least some employees in unassigned seating, and 52% of the rest plan to in three years, according to a survey of 138 employers by the real estate services firm CBRE and CoreNet Global, a real estate professional group. While some employees embrace the flexibility and ambience of unassigned seating, losing a desk is a wrenching change for others. Getting used to it requires time, some give-and-take by employers and often a little etiquette training. The Minneapolis offices of the architecture firm Perkins + Will shifted to unassigned seating two years ago, offering 52 adjustable sit-stand desks for the 70 employees there. The firm offered more seats in conference rooms, smaller huddle rooms, workbenches and a cafe. The setup makes it easy for teams to work closely together and gather around shared project files in different areas, workplace director Lisa Pool says. Each employee has a personal locker. One of Ms. Pool’s colleagues takes a family photo from his locker and sets it up on his desk every day, but most keep digital photos on computers and phones. Anyone who leaves a desk for more than two hours is expected to pack up and wipe it down with sanitary wipes from one of several officesupply carts. Ms. Pool totes a backpack with her work gear. Others carry oversize purses or briefcases. At first, Perkins + Will marketing manager Brooke Doepke couldn’t imagine giving up her assigned desk. “I had Post-its everywhere,” she says, plus a drawer filled with proposals and a standing file on her desk. She learned to use OneNote, a note-taking and file-sharing app, and found she was able to move from one team to another using only digital files. “I became a total convert, skeptic to believer, once I got the burden of paper out of the way,” she says. Employers reap savings on real estate by reducing average space per employee. Some 20% to 40% of traditional desks are already unoccupied on average because employees are working elsewhere, CBRE executives estimate. Companies also are taking a cue from the co-working spaces popular among young workers by adding a variety of seating and décor, says they want to sit with the same people every day,” Ms. Lister says. Like many employees who work in such setups, Cristina Harnden, a regional vice president with Teknion, a Toronto furniture-design firm, still tends to work at the same desk every day. Unassigned seating fosters more conversation and sharing of information among employees, and she likes walking among different work areas, she says. Still, “I find it a little harder to connect with my team,” she says. “Sometimes I don’t know who’s here and who isn’t.” Untidy colleagues can be more annoying if they make messes in shared spaces. Some 10% of employers offering unassigned seating also added more cleaning services, the facility-management association survey says. And 9% provided etiquette training to curb behaviors like squatting, or usurping shared space for oneself. Genentech for several years has given employee groups the option of moving into “neighborhoods” with customized technology, a variety of seating and private breakaway rooms, says Carla Boragno, vice president of site services for the South San Francisco, Calif., biotech firm. All must first reach agreement on social rules, such as not interrupting a colleague working in a breakaway room. Many of the groups are increasing productivity by collaborating more and reducing email and formal meetings, she says, but only after a few months of adjustment. “It does take time to get used to this,” Ms. Boragno says. TRENDING BY KEVIN LINCOLN SINCE THE 2001 release of “Super Troopers,” the five men who co-wrote and starred in the lowbudget police comedy have watched it develop a cult following. So when Fox, which released the first one, said it wasn’t sure an audience existed for a sequel, the filmmakers decided to prove there was. The five of them—Jay Chandrasekhar, Kevin Heffernan, Steve Lemme, Paul Soter, and Erik Stolhanske—started an Indiegogo campaign to raise money for “Super Troopers 2,” with the understanding that if they brought in $2 million or more, Fox would distribute the film. They passed that benchmark in a little over a day, according to Mr. Chandrasekhar, and by 30 days had raised $4.4 million. “Super Troopers 2” opened on April 20, grossing about $15 million and landing No. 4 in its first weekend, exceeding studio and analyst expectations. Like the original, it focuses on the antics of the Vermont Highway Patrol, this time in a French Canadian town as it becomes a part of the U.S. For the filmmakers, who collectively call themselves Broken Lizard, bringing the movie to theaters with the help of individual donors, then seeing it open strongly, validated their belief that a sequel would be successful. “This business is all about expectations, and there was a real common expectation that the movie was going to make $5 million or $6 million the opening weekend, enough that people on Wednesday were already like, ‘Sorry guys! We tried!’ ” says Mr. Chandrasekhar, who directed both movies. “It was going to either be the end of Broken Lizard, or this, which is more to come.” According to Larry Baldauf, coexecutive vice president of marketing at Fox Searchlight, the studio was particularly pleased with the work the Broken Lizard members put into selling the movie. He credits their efforts with helping get fans to see it in theaters, rather than wait for it on home video. “I have never experienced a group of people that understood their brand and rolled up their sleeves like they did to support their property,” Mr. Baldauf said. “These guys effectively said, if you don’t see this in a theater, you can forget about seeing Super Troopers 3, 4 and 5. They just kept hammering that theater experience.” Other filmmakers have used crowdfunding services to get projects off the ground, including Zach Braff, who raised $3.1 million for his movie “Wish I Was Here,” and the makers of a “Veronica Mars” movie who raised $5.7 million. But neither took off at the box office, with the former man- FOX SEARCHLIGHT (2) SURPRISE SUCCESS FOR ‘SUPER TROOPERS 2’ Above from left, Jay Chandrasekhar, Steve Lemme, Erik Stolhanske, Paul Soter and Kevin Heffernan in ‘Super Troopers 2.’ Left, Rob Lowe. aging $3.6 million domestically and the latter $3.3 million, according to Box Office Mojo. While “Super Troopers 2” ticket sales slowed in its second and third weekends, with the arrival of Disney blockbuster “Avengers: Infinity War,” “Troopers 2” has still exceeded its initial ticket-sales projections. “This movie sort of behaved somewhat like the last presidential election. The votes were coming from places you weren’t expecting,” Mr. Chandrasekhar says. “The biggest town in the country for us was Madison, Wis. Idaho was huge, middle and northern Califor- nia were huge. All these places that don’t ever scratch a top 10 in typical comedy grosses, we were getting massive numbers in. I’m not saying we’re the Trump of movies, but it behaved in a similar sense that the experts couldn’t predict it.” Producer Rich Perello believes that the film’s success has as much to do with the promotional efforts of its creators as it does the robust home-entertainment success of the original over time. Broken Lizard self-released its first film, “Puddle Cruisers,” by taking it on a tour of college campuses, and has applied that approach to subsequent projects. For “Super Troopers 2,” the filmmakers com- bined that DIY strategy with Fox’s advertising and promotion. “The crowdfunding campaign was really just the beginning,” Mr. Perello says. Earlier this year, Broken Lizard members met with fans and performed live during the “Super Troopers 2” tour, partly to thank donors and to assure them that they wouldn’t take the money and disappear. Does the latest film’s box-office success mean there will be a third? Neither Fox Searchlight nor Broken Lizard can say quite yet, though both are enthusiastic about their experience on the second one—and they expect that if there is a third movie, fans won’t have to wait 17 years for it. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A15 LIFE & ARTS HIROYUKI ITO/GETTY IMAGES James Levine leading the Met Orchestra in 2015. SIGHTINGS | By Terry Teachout Portrait of the Artist as an Unperson IN THE WAKE of Bill Cosby’s conviction on three counts of sexual assault, the board of trustees of the Kennedy Center has voted to rescind his 1998 Kennedy Center Honor for lifetime achievement in the performing arts, as well as his 2009 Mark Twain Prize for American Humor. A written statement explained the decision as follows: “The Board concluded that [Cosby’s] actions have overshadowed the very career accomplishments these distinctions…intend to recognize.” I can’t say I’m surprised, any more than I am by the fast-growing list of colleges and universities that have shredded the honorary degrees they previously conferred upon Mr. Cosby. He was already well on the way to becoming a cultural unperson when the Kennedy Center joined Johns Hopkins, Notre Dame and Yale—among many others—in the #MeToo-triggered pile-on. In addition, none of his old TV shows is being telecast anymore, and even the Academy of Motion Picture Arts and Sciences has given him the bum’s rush, simultaneously expelling Roman Polanski for good measure. (Yes, it took them long enough to do something about Mr. Polanski, but that’s another column.) It’s worth pointing out, however, that the Kennedy Center, the Motion Picture Academy and Yale were deliriously happy to ride on the capacious coattails of Mr. Cosby’s ce- lebrity once upon a time. Yale went so far as to confer an honorary doctorate of “humane letters” upon him in 2003 for his “contributions to society.” We are now invited to suppose that those contributions have lost all meaning in light of the revelations about the viciousness of his sex life. Meanwhile, Met Opera Radio, the Metropolitan Opera’s Sirius XM satellite radio channel, has admitted that it is no longer broadcasting live recordings conducted by James Levine, who performed at the Met from 1971 until last December, when he was suspended and subsequently fired after an investigation in which the Met claimed to have found “credible evidence” that he “en- gaged in sexually abusive and harassing conduct toward vulnerable artists…over whom [he] had authority.” (Mr. Levine continues to deny the accusations, and unlike Mr. Cosby he has not been charged with any crimes.) The Met says that recordings of his performances “will be reintroduced to the programming at an appropriate time.” It would be hard to come up with a statement less transparent, or more evasive, than that. I won’t lose any sleep over the twin descents of Messrs. Cosby and Levine into the dark pit of disgrace. But there’s a difference—a huge one—between shunning such men and rewriting the history of which they are a prominent part. Not only was Mr. Cosby the first black man to star in a weekly dramatic TV series, “I Spy,” but “The Cosby Show,” for which he is now best remembered, was universally praised for portraying a middle-class black family in a way that appealed to viewers of all races. As for Mr. Levine, he was one of the halfdozen greatest opera conductors of the postwar era. Yet the Kennedy Center and Met Opera Radio seem to be trying to pretend that neither man ever existed. Few of us like to admit it, but most human beings are impossibly complicated, none more so than artists. You can simultaneously be a great comedian and a sexual predator, a great musician and a pedophile. To argue otherwise is to falsify history, and to falsify history is to dynamite the foundations of reality. I used the word “unperson” earlier in this piece. It was coined by George Orwell in “Nineteen EightyFour,” his 1948 dystopian fantasy about a totalitarian society similar to the Soviet Union whose ruler, Big Brother, rewrites history every day to expunge his enemies from the record books. To this end, his Ministry of Truth prints new editions of books and newspapers from which the names of politically incorrect “unpersons” have been scissored out, even as the offenders themselves have been jailed and brainwashed. As a character explains, “If the Party could thrust its hand into the past and say of this or that event, it never happened—that, surely, was more terrifying than mere torture and death?” Perhaps it doesn’t matter all that much that the Kennedy Center has hosed Mr. Cosby’s name off its increasingly trivial roll of pop-culture sycophancy. But Met Opera Radio did something far more consequential when it chucked Mr. Levine’s historic recordings into the memory hole, an act of suppression that bears a distant but nonetheless definite resemblance to book-burning. By doing so, it effectively declared that great musicians must also be good men—a position that can be defended only by the tone-deaf. Mr. Teachout, the Journal’s drama critic, writes “Sightings,” a column about the arts, twice monthly. Write to him at email@example.com. 59 99 $ TO TA L VA LU E $ 12 9 REBECCA BROOKS .90 Mr. Koppelman, right, interviews Food Network host Guy Fieri for ‘The Moment.’ KOPPELMAN Continued from page A13 spoke with the Journal about rejection, failure and what comes next. Here are edited excerpts: You seem genuinely curious about how people have made it in creative fields. Is that because there are so few replicable paths to success? I only will put people on the show if I’m fascinated by their story or their work, ideally both. Why is failure such intriguing territory for you? It feels like a death. But what these stories of the people on the podcast show me over and over is that almost all failures are only temporary and can be used as fuel to get you to the next success. That’s not just a platitude. We have hundreds of examples of people figuring it out, like Dave Chang almost not being able to keep his payroll at Ssäm Bar, then they redo the whole thing and boom, it succeeds. How have you used failure as fuel in your career? When I was younger I certainly used business rejections as a way to stoke a kind of anger and determination, but I don’t do that anymore. I feel like anger works really well when you’re young, but when you’re old, if you keep using it, I don’t think it burns clean. Was there any correlation between losing the “Vinyl” job and “Billions” happening? Only in that it made us determined to write our own thing next. Because “Vinyl” was never our project. How do you differentiate between rejection and failure? Well, “Runner Runner” there was no rejection, it was just a failure. Rejection doesn’t equal failure at all. I think those are entirely different things. I’m only now interested in Who Is He? Name: Brian Koppelman What He Does: Screenwriter, showrunner, producer, host of “The Moment” How He Got There: Worked as an A&R man for record labels while he wrote his first screenplay, “Rounders,” with his childhood friend and collaborator, David Levien. His Big Break: “Rounders” opened up the door to a writing and producing career that has led to three—going on four—seasons as the co-creator and showrunner of “Billions.” In “The Moment,” he mines the stories of success and failure from creatives like Jon Bon Jovi, Amy Schumer and Salman Rushdie. His Obsession: Morning pages, a daily exercise in Julia Cameron’s book “The Artist’s Way.” “When David Levien gave me that book, and then I started doing the exercises in it, it freed me from [my] perfectionism.” failure for its impermanence. It’s not romantic to me. What I’ve come to view it as is just a stop along the way, unless you let it be a final stop. How do you talk people down after and during failure in a way that’s not Pollyanna-ish? Just do the thing. If you’re a singer or you’re a songwriter, find a way to do that thing for an hour a day in a way where no one else is judging you, where you’re not asking anyone else for permission, where you’re not trying to get an agent to say yes or a music publisher to say yes or someone to book you into their club. Now that you’ve reached a level of success that won’t quickly be taken away, what kind of failures do you continue to experience and that you’re on the lookout for? You’re a writer, so you know: the failure of not being as you hope you can be on the page. ##### 12 (4 oz) Filet Mignon with Bacon (#V312) NOW $59.99* C U S T O M E R R AT E D Introductory Offer P U R C H A S E 12 filet mignon WRAPPED IN HICKORY BACON for $59.99 * and get 8 F R E E STEAKBURG E R S PLUS a free Kansas City Steak Book with cooking instructions and recipes, and free seasoning packet. kansascitysteaks.com /J805WJ or call 8 0 0 . 7 9 3 . 9 14 4 USE PRIORITY CODE J805WJ For Father’s Day Delivery ORDER BY NOON (ct) JUNE 13TH Oﬀer expires 6/30/2018. *$9.95 shipping applies to standard delivery only. Additional fees will apply to Overnight, Saturday, Alaska and Hawaii deliveries. Cannot be combined with other oﬀers or promotions. Limit of 5 shipments per customer. 8 free 4 oz. Steakburgers must ship with the order to same address. Some restrictions may apply and you must use Priority Code at time of purchase to receive this oﬀer. Not valid in the retail store. The Kansas City Steak Company ® reserves the right to cancel or modify oﬀer at any time. Oﬀer valid while supplies last. . A16 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. * ***** SPORTS NBA PLAYOFFS The NBA’s YouTube Generation Jayson Tatum has spent his entire life watching basketball on YouTube. It shows. BY BEN COHEN PHOTO ILLUSTRATION BY FERNANDO ACOSTA/THE WALL STREET JOURNAL (PHOTO: BRIAN BABINEAU/NBAE/GETTY IMAGES) Boston JAYSON TATUM is unlike any of the other precocious 20-year-olds near Boston in almost every way. He already has a job. And he’s phenomenally good at it. He’s the leading scorer on a Celtics team only two wins away from the NBA Finals, and to watch him these days is to wonder how Tatum is this good this young. But one of the reasons he’s this good is because he’s this young. Tatum is young enough that he grew up with YouTube. There was never a time in his life that he couldn’t watch any clip of any NBA player any time he wanted. “That’s how young I am,” Tatum said. He was 7 when YouTube was invented, and it wasn’t long until he was searching for Kobe Bryant videos. “I’ve been watching Kobe ever since I can remember,” he said. But what made him the player he is today is not that Tatum simply watched Kobe. It was what he watched. And how he watched it. He studied Kobe. “Not just watching the dunks, but actually trying to learn,” he said. “I think I learned that at a very young age.” Tatum is the youngest player still in the NBA playoffs, and he’s already played more postseason minutes than anyone his age ever had. He’s also the most reliable playmaker on a Celtics team with an unlikely 2-0 lead on LeBron James and the Cleveland Cavaliers in the Eastern Conference Finals. He does things that rookies should not be able to do. But it’s not only Tatum who plays beyond his years. This is happening across the entire league. The best NBA players are getting better younger. They were born with advantages that weren’t available to older players and had access to more information than anyone before them in the history of basketball. Justin Tatum, a high-school basketball coach, could tell his son to watch clips with three words: “YouTube this guy.” Which sounds totally normal until you remember it wasn’t possible until very recently. NBA players who grew up watching Michael Jordan couldn’t even watch clips of Michael Jordan. LeBron James didn’t have YouTube. He’s been in the league for longer than YouTube has been a company. But today’s young players have There was never a time in 20-year-old Jayson Tatum’s life that he couldn’t watch any clip of any NBA player any time he wanted. spent their entire lives watching basketball on demand. The extraordinary amount of knowledge at their disposal is one of the reasons they’re entering the league with polished skills and making their influence felt immediately. YouTube allowed Kristaps Porzingis to admire Kevin Durant all the way from Latvia, Joel Embiid to emulate Hakeem Olajuwon and Tatum to geek out about Bryant. “I wanted to be just like Kobe,” Tatum said. He tried to be like Kobe by watching Kobe on YouTube. “Any chance that I could,” he said. When Tatum was 13 years old, which was not long ago, he was a promising enough player to have a trainer, Drew Hanlen, who put him through a series of unusual workouts in which they didn’t shoot, dribble or do anything resembling basketball. They analyzed the intricacies of Bryant’s footwork. Tatum watched and rewatched with Hanlen and his assistant Sam Limon, who made Bryant mixtapes on YouTube and was such a Kobe fan that “Kobe fan” was in his email address, until he was deconstructing the subtleties of something as specific as Bryant’s shot fakes. He spent hours taking note of granular details imperceptible to the untrained eye. “The skills within the skill itself,” Hanlen said. “Think about that. Thirteen years old, and he was focusing on the nuances of the jab step.” But there were only so many Bryant videos that Tatum could watch and re-watch on his phone, You watch cat videos on YouTube. Jayson Tatum watched Kobe Bryant’s footwork on YouTube. Hanlen’s laptop and his mother Brandy Cole’s computer. Over time he began incorporating skills he swiped from Carmelo Anthony, Paul George, Kevin Durant, Tracy McGrady and Paul Pierce. He incorporated those elements to his own game during 6 a.m. training sessions every morning before school. If his coaches were late, they found Tatum there shooting by himself. On the days when Hanlen was on the road, he monitored Tatum’s progress Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 60s d Edmonton V Vancouver 30s 70s 40s 50s Seattle 50s Billings 50s 80s C heyenne y Cheyenne 60s 80s San Diego 90s 70s Ph i Phoenix Tucson Alb q q Albuquerque Littlee Rock 70s El P Paso Ft. Worth Honolulu l l 70s D ll Dallas A ti Austin 100s 90s Jackson 60s b Mobile 80s 90s h ngton g oon D.C. DC Washington h d Richmond 100+ 80s Warm Rain Cold T-storms Stationary Snow Showers Flurries JJacksonville k l d Orlando Ta p Tampa Miami 70s U.S. Forecasts 70s Ph hil d lph Philadelphia i h Raleigh C h Charlotte C b Columbia 60s Ice City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. 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A X I OM E C O N O E V E 21 ___-Wan Kenobi U P SW I N G N U T S S I X 58 “The Simplest 36 Bust supports B O A R E R E R U D E S T 23 IRS enforcer Seuss for I S E E H Y E N A 40 “In that case...” U P S I D E S O F MA R C H Youngest Use,” 24 Lusty desire, O N R E D TWE E C O O 41 Eerie ability or what parts of slangily A C E S B E R L E T H U G 17-, 25and H A S B A L E WE E P S 42 Last hour of 25 Activity U P SWE L LW I S H E R S 49-Across are the workday, presenting a high C O R D S MO O N B R O OM S C P R B L E U seemingly bar to clear 60 Downfall E A R U P S H O T H E A D S 1 2 13 3 4 14 5 6 7 8 15 9 10 11 12 16 Solve this puzzle online and discuss it at WSJ.com/Puzzles. s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 51 44 sh 55 44 pc Atlanta 81 67 t 82 68 t Austin 95 70 s 95 71 s Baltimore 68 60 t 65 55 r Boise 74 53 sh 75 50 pc Boston 72 55 pc 56 50 pc Burlington 70 44 s 68 49 s Charlotte 77 67 r 80 66 t Chicago 78 55 pc 76 56 pc Cleveland 74 56 pc 69 57 r Dallas 94 75 s 94 73 s Denver 82 50 t 72 45 t Detroit 78 53 s 70 55 pc Honolulu 86 74 pc 86 74 s Houston 96 69 s 95 71 s Indianapolis 79 59 c 70 59 c Kansas City 84 61 pc 85 63 pc Las Vegas 87 66 s 89 71 s Little Rock 89 64 c 87 66 pc Los Angeles 71 57 s 69 58 pc Miami 83 72 t 83 72 t Milwaukee 67 50 pc 67 51 s Minneapolis 85 62 pc 83 65 pc Nashville 80 64 t 84 64 t New Orleans 93 71 s 94 72 pc New York City 70 58 sh 62 52 r Oklahoma City 85 66 pc 89 70 pc 60s 70s t Houston an Antonio A t i San 50s t Boston tford Hartford ew Y New Yorkk Atl t Atlanta h Birmingham ew Orleans New 80s 50s 60s Anchorage A h g Kansas St.. Louis LLouisville Lou ill Lou hit Wichita City h Nashville Oklahoma City Mem phi Memphis Santaa Fe 20s 30s 40s Springfield Pit b h Pittsburgh Charles h Charleston 30s 40s 80s C d Cleveland Chi Chicago d p Indianapolis Topeka C d Colorado p Springs LLas Ve Vegas 80s h Omaha Denver 80s n Francisco San k Milwaukee Detroit t es Moines Des 60s Montreal A Augusta A b y Albany T t Toronto ff l Buffalo p s /St. Paul Mpls./St. oux FFalls ll Sioux Salt lt Lake L ke Cit C Cityy ttawa Ottawa 50s Pierre 40s 50s Sacramento Los A Ange l Angeles 70s Bismarckk 60s Boise 10s 20s 60s g Eugene Reno 50s p Winnipeg Por P d Portland Helena <0 0s C g y gary Calgary maturation of 21-year-old Jaylen Brown and the 20-year-old Tatum. They have entrusted Tatum with more responsibility during the playoffs, and he’s responded. Ainge marvels at how Tatum’s mind works. There’s a reason he plays as if he’s seen an incredible amount of basketball: because he actually has. Ainge can tell. It’s not uncommon for Celtics coach Brad Stevens to propose hypothetical situations in practice and gauge Tatum’s response. If your defender is on this side, Stevens might say, how would you get open on the other side? “It’s fascinating to me that he’s got an answer,” Ainge said. “He knows how he would do it. And it would probably work.” Tatum was inundating himself with data right after his warm-up before Game 2 on Tuesday night. He took a seat on the bench, and for the next five minutes, his eyes didn’t leave Celtics assistant coach Micah Shrewsberry’s laptop screen. But he doesn’t need a coach’s encouragement. If he’s curious about something, he still grabs his phone sometimes and watches the NBA he always has. “I go on YouTube,” Tatum said. The WSJ Daily Crossword | Edited by Mike Shenk Weather 60s through FaceTime. In the summer of 2013, when Tatum was still in that high-school gym, Boston president of basketball operations Danny Ainge made a deal with the desperate Brooklyn Nets for their draft picks in 2014, 2016 and 2018 and maybe the most valuable piece of all: the right to swap picks in 2017. Four years later, the Celtics won the NBA draft lottery and could have taken anyone with the No. 1 pick. Instead they traded it for the No. 3 pick and what could be another top pick next year. Their rationale at the time: “We think there’s a really good chance the player we’ll take at 3 is the same player we would have taken at 1,” Ainge said. That player was Tatum. It turned out to be a brilliant decision. His development into a player with star potential has enormous implications for the future of the NBA. These playoffs have shown there may be no team with a brighter outlook than the Celtics, who could win the East this year and then get a lot better next year when Kyrie Irving and Gordon Hayward return from injuries, but they wouldn’t be here without the rapid 61 62 63 64 T I P A D S D O R I S A T O N E R A N G E S T E E D . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A17 OPINION America’s So-Called Allies No one has suggested yet that the Trump withdrawal from B a r a c k Obama’s nuWONDER clear-weapons LAND deal will cause By Daniel the sea level to Henninger rise, but we’re almost there. The chain reaction of postwithdrawal disasters cataloged by the global media includes the possibilities that Iran will race now toward building a nuclear weapon, that a war between Iran and Israel could engulf the Middle East, and that America has become “divided” from its allies. Then it got worse. One week later, the U.S. moved its embassy in Israel to Jerusalem, creating more “friction” with our allies. America’s unhappy allies are the U.K., France and Germany, cosigners of Mr. Obama’s deal, along with antiallies Russia and China. “America’s three closest friends in Europe,” the Washington Post reported, “are near-bursting with anger and exasperation at the United States.” A rule of thumb suggests itself: Might European anger correlate directly with the correctness of U.S. policy, such as this decision to withdraw from the Iran deal and restart the sanctions regime? And when does an ally become something less than that? Once the media takes ownership of any fixed thought— here that the U.S. withdrawal from the Obama agreement will drive Iran to build a nuclear weapon—no other fact or consideration is permitted to intrude. The nuclear intentions of Iran’s government are a serious subject at all times. That is why the Trump administration is fixated on the agreement’s so-called sunset provisions. At the Iranians’ insistence, Mr. Obama and John Kerry agreed that the restriction on Iran’s first-generation centrifuges would end in 2025. After that, and another sunset in 2030 on low-enriched uranium, Iran’s centrifuges could produce material for a bomb in weeks. France’s president, Emmanuel Macron, seemed to be aware of the problem in his April address to Congress. “As for Iran, our objective is clear: Iran shall never possess any nuclear weapons,” he said. “Not now, not in five years, not in 10 years. Never!” By the time he returned to France, Mr. Macron had rejoined the chorus that the Obama deal can’t be breached. Ever. One would like to take seriously Europe’s concerns about Iran’s bomb, but history makes that difficult. In fact, the Iranian nuclear threat is a European red herring, a distraction whose purpose is to take our eyes off other realities. For the Europeans, the likelihood of Iran going nuclear is a secondary concern. What’s it to them? Iran’s targets are Israel, the Gulf Arabs and the Great Satan. European nations’ active strategic interest in the Middle East ended decades ago with their decision after World War II to elevate domestic welfare and demote the continent’s military significance. Europe became an economic power whose interests are solely commercial. Despite the Middle East’s continued strategic importance, Europe’s view of it is entirely bloodless—a region that is merely a dependable trading partner for Europe’s biggest companies. For the Europeans, Obama’s nuclear deal with Iran was always about the money. When in 2013 Mr. Obama raised the possibility of a deal that would lift the Iranian sanctions regime, the Europeans were all in. Whatever Mr. Obama’s nuclear dreams, the deal’s primary attraction for Europe—and Iran—was always overwhelmingly about money. Recall that in 2012, the European Union’s growth rate had fallen below zero. Europe was also dealing with an existential threat in the Greek debt crisis, which required several multibillion-euro bailouts. Once the Obama nuclear deal became final in 2015, Europe’s deal makers were inside Iran like a shot. European Union members, led by Germany, quickly became the mullahs’ main trading partners. Bear in mind that the agreement’s flaws were recognized at the time, such as ignoring Iran’s messianic and imperial projects. Just days after the agreement was reached in July 2015, the head of Iran’s Quds Force, Qasem Soleimani, was in Moscow, no doubt discussing the Russo-Iranian alliance in Syria, which quickly drove torrents of refugees into Europe. In other words, the ObamaKerry deal with Iran helped to destabilize Europe’s politics. The European publics should demand a new deal. The U.S. Treasury recently identified how Iran’s central bank has been laundering money through Iranian companies to acquire dollars in other Middle Eastern countries and then finance its Quds Force in Syria and other regional proxies. Which is to say, Iran’s European trading partners are underwriting, in part, the Irandriven Middle Eastern mess— from Syria and Lebanon, through Iraq to Yemen. The U.S., as always, is supposed to clean it up. Americans don’t have the luxury, literally, of being AWOL from the world’s most difficult problems. As someone might say, this is a bad deal. On Wednesday, The Wall Street Journal reported that French, German and Danish companies—such as Total, Wintershall and Maersk Tankers— are winding down their business ties with Iran in response to the U.S. sanctions. That should start closing the spigot on Iran’s revenue sources. The world will be a better place. We are going back to the status quo before the Obama Iran deal—back to reality. Write firstname.lastname@example.org. North Korea, and Iran, and Iraq! Oh, My! By Karl Rove T he world doesn’t postpone challenges so that policy makers will have time to prepare. Mike Pompeo was sworn in as secretary of state three weeks ago, and John Bolton walked into the West Wing as national security adviser 2½ weeks earlier. Along with President Trump, the two newcomers are facing three huge foreign-policy challenges coming like a runaway freight train. First is the scheduled June 12 meeting in Singapore between Mr. Trump and the “Little Rocket Man.” Kim Jong Un is not some moronic playboy. Although only in his 20s when he became North Korea’s “supreme leader” in 2011, Mr. Kim quickly consolidated power. He is ruthless in eliminating potential rivals, having ordered the killings of his halfbrother, an uncle, the uncle’s family and some of the uncle’s associates. Mr. Kim is also crafty. Angered by military exercises between South Korea and the U.S., he decided Tuesday to cancel a coming meeting with South Korean President Moon Jae-in. He also threatened to call off the Singapore summit if the U.S. demands unilateral North Korean nuclear disarmament. Of course, he knew about the drills and the U.S. insistence on denuclearization before he accepted Mr. Trump’s and Mr. Moon’s invitations. The North Korean leader is throwing a preplanned hissy fit, testing American and South Korean leaders to see how they respond. Both governments should ignore his antics. Mr. Trump cannot appear to want this summit more than Mr. Kim does. The North Korean dictator agreed to attend only because his economy had tanked after years of international sanctions, and his saber-rattling had caused Japan and South Korea to strengthen Pompeo and Bolton have hardly settled in, but history already has come knocking. their militaries and draw closer to the U.S. The Chinese government, whose wishes Mr. Kim has too often ignored, also pressured him to the table. Mr. Kim may view the Singapore summit as a publicity stunt, signaling goodwill so as to coax the U.S. and South Korea into a bad bargain. In light of this possibility, Mr. Trump’s message needs to be clear: If Mr. Kim doesn’t go to Singapore with intent to begin denuclearizing, it’s his loss. All this messiness shows that the talk of a Nobel Peace Prize for Mr. Trump is wildly premature. The negotiations will be complicated and difficult, and there is no certain outcome. What Mr. Kim means by “denuclearization” might be entirely different from what Mr. Trump means. And Mr. Kim can’t be trusted. He, his father and his grandfather have made at least five pledges to end or disable North Korea’s nuclear-weapons program—in 1985, 1994, 2005, 2007 and 2012. Each time, they broke the commitment. Experts like David Kay, former United Nations chief weapons inspector, have pointed out that it would be extremely difficult to verify if North Korea has ended its program, turned over its fissile material, and destroyed its warheads in compliance with any agreement. So when Messrs. Trump, Pompeo and Bolton arrive in Singapore, they’d better have a plan. No winging it, no daylight between the U.S. and South Korea, and no sanctions relief for Pyongyang until the results are locked in. The three Americans must present a unified front, insisting on concrete goals and clearly defined paths to implement them. The second big foreign-policy challenge is Iran. On May 8 the president announced the U.S. would withdraw from the Obama nuclear deal and reimpose sanctions in 90 days. Mr. Pompeo signaled that Europe was welcome to try getting a better deal from Iran. That’s smart, as long as the Trump administration spells out what kind of agreement it wants. If the “3Ms”—French President Emmanuel Macron, British Prime Minister Theresa May and German Chancellor Angela Merkel—get Iran to agree to anytime-anywhere inspections, an end to enrichment (instead of caps), and a dead stop to its missile programs, the U.S. should happily oblige. But even if the 3Ms can’t get such a treaty, letting them try might make it easier later to gain international support for reinstituting sanctions. In any event, Mr. Trump’s new foreign-policy team has to pull it off before the 90-day clock runs out in August. That won’t be easy. Finally there’s Iraq. Its elections Saturday presented the U.S. with the prospect of a new government controlled by Moqtada al-Sadr, the Shiite cleric whose militias attacked American soldiers during the Iraq war. Keeping Baghdad from drifting toward radicalism, or further into Iran’s orbit, will require adroit maneuvering by the U.S. and regional allies. If Messrs. Pompeo and Bolton can help President Trump to success in these three challenges, the world will owe them thanks. If they fail, instability and violence could follow. In case they had any doubt, these stakes should remind the new Trump foreign-policy team how unforgiving being on the world stage can be. Mr. Rove helped organize the political-action committee American Crossroads and is the author of “The Triumph of William McKinley” (Simon & Schuster, 2015). At the CIA, Immorality Is Part of the Job By Fay Vincent T he confirmation hearings for Gina Haspel to head the Central Intelligence Agency became a theater of the absurd, as senators pressed her for an assurance that she would apply “moral” standards to intelligence-gathering, including interrogation of terrorists. As I watched, I kept thinking of Sen. Frank Church and the disaster his Senate select committee inflicted upon the CIA in 1975. The committee was troubled by the disclosures of various misguided, even bizarre CIA endeavors during the Cold War, including an attempt to kill Fidel Castro. It ultimately adopted a series of proposals to rein in the agency that led the Carter administration to impose broad changes. The effort to reform intelligence operations to make them moral was a noble one— and the damage it wrought to national security took decades to undo. The new generation of CIA veterans like Ms. Haspel must wonder if anyone in the current Senate has even heard of the Church Committee. Senators today seem to assume there is agreement on what constitutes moral conduct in spycraft. But recruiting spies Spying is a dirty yet necessary business, not best examined in open hearings. is not the work of moralists. The CIA’s mission involves persuading others to disregard their deepest moral and legal obligations. It is a dirty yet necessary business, not best examined in open hearings. In 1977 my friend Dick Helms was prosecuted by the Carter Justice Department for perjury after he denied in an open Senate hearing that the CIA had been involved in the 1973 overthrow of the Allende government in Chile. Helms was bound by his oath as a CIA officer never to reveal classified secrets. Yet before the Senate he was under the perjury threat if he fulfilled his obligation to preserve intelligence secrets. What was the moral thing to do in that situation? Helms lied because he was operating under longstanding directions he and others at the agency had received from senior senators, including Democrat Richard Russell of Georgia, who worried candid answers in open hearings might risk “the lives of our boys.” They instructed Helms to protect intelligence operations in such hearings. Helms’s defense lawyer. Edward Bennett Williams, warned the Justice Department he would have Helms testify in open court to numerous examples of CIA officials lying to Congress to preserve secret agency activities, with the likely exposure of important top-secret operations. The government relented, and Williams arranged for Helms to plead guilty to a misdemeanor with no penalty. In 1983 President Reagan recognized Helms’s long service with a National Security Medal as an implicit apology. No CIA director has since been charged with a crime. Intelligence work can involve complex judgments about morality and even legality. The law must remain our bulwark, morality a sweet frosting. To serve as head of the CIA is to be in charge of vital operations that must be subject to the rule of law, not the moral sensitivities of any one person. Dick Helms died in 2002. His portrait hangs in honor at CIA headquarters. There is no portrait of Frank Church. Mr. Vincent, a retired lawyer, was commissioner of Major League Baseball, 1989-92. BOOKSHELF | BY Jonathan Marks Teaching Tolerance Speak Freely By Keith E. Whittington (Princeton, 208 pages, $24.95) Hate By Nadine Strossen (Oxford, 199 pages, $24.95) W hen it comes to tolerating offensive speech, American colleges and universities often hold themselves to a lower standard than the rest of society. Kentucky State University, for instance, includes “embarrassment” on its list of sanctionable “offenses against persons.” Dickinson College promises to sic its Bias Education & Response Team on those whose speech is deemed “offensive or inflammatory to some”—even if no rule has been violated. In “Speak Freely: Why Universities Must Defend Free Speech,” Keith Whittington argues that even free societies are shaky on the proposition that “free speech is essential to the advancement of knowledge,” but for the university, “free inquiry and debate” are “the only possible means” of advancing its “core mission” of “producing and disseminating knowledge.” As such, it should demand even more freedom for speech than the society it inhabits. It must welcome the unorthodox and reject “those who prefer to be sheltered” from challenge. Mr. Whittington, a professor of politics at Princeton, knows that all is not well in academia. Bad enough, for example, that students shouted “We are in pain!” in front of Emory University’s administration building in protest of Trump-friendly slogans written on campus. Worse, the school’s president responded by suggesting that Emory would be a better institution if students were spared exposure to disfavored electioneering speech. When “those who prefer to be sheltered” are thus encouraged, Mr. Whittington writes, “the university has lost sight of its core mission.” Consider the “safe spaces” controversy, over student demands for places of refuge from speech they consider threatening. Universities serve their function best when they offer arenas in which students can debate each other rigorously, but also places where those who share a common view or interest can reason from a common starting point. The university benefits, too, when there are places where students can feel comfortable and recharge themselves to face challenges anew. But the call for “safe spaces” often suggests that the debate itself is an affront, that the invitation to “let us reason together” is a ruse to slow down social justice. Students can espouse that position, but a university must cede no ground to it. Don’t look to “Speak Freely” for an indictment of snowflakes and radicals, though. Mr. Whittington, who claims his “inner Texas populist” puts him well outside the faculty political mainstream, nevertheless defends his “welcoming colleagues” and thoughtful students. Universities can be “subverted by insiders” who “do not appreciate” the Colleges are becoming increasingly soft on free speech when they should be adhering to an even higher standard than the societies they inhabit. institution’s “value and fragility,” but the vast majority of faculty pray not for a revolution but for students to “read their assignments and pay attention” in class. The universities are not yet lost—but if they ever are, it will be because these same faculty members who guard their individual classrooms so well neglected the overall climate of the university. Some arguments for campus free speech have little to do with the university’s special characteristics. Nadine Strossen makes these arguments better than anyone. In “Hate: Why We Should Resist It With Free Speech, Not Censorship,” the former president of the American Civil Liberties Union and a professor at New York Law School aims to “refute the argument that the United States,” like many other nations, “should adopt a broad concept of illegal ‘hate speech.’ ” She puts the term in quotes because it has “no single legal definition” and “has been used loosely to demonize a wide array of disfavored views.” The argument Ms. Strossen addresses has intuitive appeal. Hateful speech directed against vulnerable groups, the argument goes, is uniquely dangerous. It is not enough to restrict such “hate speech” when it constitutes a “true threat” or “harassment” or otherwise sits outside the First Amendment’s protection zone. Hate speech is so potent a source of violence, discrimination and psychic harm that it compels us to bend the rule that restricts government from suppressing “disfavored, disturbing, or feared” speech. But, Ms. Strossen argues, despite the power of speech to motivate and wound, there is “insufficient evidence” that constitutionally protected hate speech contributes significantly to violence, discrimination or psychic harm. There is little evidence, too, that hate-speech laws are effective. We do know, however, that such laws are often enforced “to the disadvantage of disempowered and marginalized groups” and used by authorities to suppress dissent. “Non-censorial” methods can also be very effective. Although government action is Ms. Strossen’s main subject, she does consider campus speech, and her arguments are readily transferred even to private universities, which, though outside the First Amendment’s purview, “should not suppress constitutionally protected ‘hate speech.’ ” Hatespeech policies are no more effective, or less subject to abuse, at universities than they are elsewhere. Mr. Whittington is right that the university, in principle, “has no place for those who prefer to be sheltered” from “searching interrogations.” In practice, however, universities welcome many such people, who come mainly to advance their prospects. Like people outside of universities, their first impulse on encountering speech they find appalling is to want the speaker to shut up. Neither of these books explains how such students might be moved to cherish free speech. Yet both of these authors involve their readers in the pleasures of confronting a difficult problem, treating the dangerous views of determined adversaries with an open mind and proceeding with greater confidence as a result. This summer, “Speak Freely” will be distributed to every Princeton freshman for consideration and discussion. That’s a start. Mr. Marks is a professor of politics at Ursinus College. . THE WALL STREET JOURNAL. A18 | Thursday, May 17, 2018 OPINION W REVIEW & OUTLOOK LETTERS TO THE EDITOR Funny Business at the Labor Board Fix, Don’t Avoid, Hard Immigration Issues e wrote a couple of months ago about ions. Did Mr. Berry ask Ms. Ketcham to stand how Democrats in cahoots with the down and change her opinion about Mr. EmanNational Labor Relations Board In- uel? (We sought comment from Mr. Berry and spector General were weapMs. Ketcham but received no How dubious backstage reply.) onizing ethics rules to protect the Obama joint-employer NLRB General Counsel Pepolitics saved a prostandard. New evidence shows ter Robb and Hy-Brand have union Obama ruling. they may also have overfiled motions supporting Mr. stepped their legal authority. Emanuel that ask the board to The Obama NLRB in 2015 reconsider its vacatur. Hyjettisoned 30 years of labor law with its Brown- Brand notes that the IG’s determination is uning-Ferris ruling that held businesses responsible precedented, and the three-member panel “abfor workers of subcontractors if the businesses rogated its responsibility to consider whether exercised indirect control over employment the IG Report was erroneous, valid, or should be terms. This made it easier for unions to organize returned for further investigation.” workers. In December the Trump NLRB overAn analogy to judges is relevant here. Judges turned Browning-Ferris in its Hy-Brand decision. don’t have to recuse themselves from cases on i i i issues on which they have previously expressed Prodded by Democrats in Congress, IG David opinions or represented clients. Federal judge Berry then launched an investigation into Allison Burroughs, who was appointed by Barack whether board member Bill Emanuel had vio- Obama, is now hearing a case regarding off-label lated White House ethics rules by participating drug promotions though she previously reprein Hy-Brand. An executive order requires ap- sented a pharmaceutical company in a similar pointees to recuse themselves from a “particular case. Why should Mr. Emanuel be held to a matter involving specific parties” that are “di- higher standard than Judge Burroughs? rectly or substantially” related to a former emThe National Labor Relations Act also doesn’t ployer or client. allow three board members to delegate to themMr. Emanuel’s former employer Littler Men- selves authority to make decisions as the panel delson didn’t represent any party in Hy-Brand, did when they vacated Hy-Brand. What’s to stop so there was no reason to recuse himself. Yet Mr. a plurality of the board—or of any independent Berry concluded that Mr. Emanuel should have bipartisan commission—from doing so whenstepped aside because Littler had represented ever it’s politically expedient? subcontractor Leadpoint Business Services in Hy-Brand also asserts that the IG’s disclosure Browning-Ferris. According to the IG, the two of confidential pre-decision-making board comcases were the same because the majority opin- munications in his reports violates its due proion in Hy-Brand drew on similar arguments as cess rights and agency policy. In 2012 Mr. Berry the dissent in Browning-Ferris. reprimanded a board member for disclosing After Chairman Philip Miscimarra stepped similar deliberative information. down, the board’s two Democrats and one RepubInvestigative information somehow leaked to lican sidelined Mr. Emanuel and on Feb. 26 vacated Democratic Senators, who then attacked Mr. Hy-Brand. The panel cited a Designated Agency Emanuel and pressured board members to vaEthics Official’s (DAEO) determination that Mr. cate Hy-Brand. Hy-Brand claims that the leaks Emanuel should have been disqualified from the violate its “right to a fair hearing on the facts on case. The panel didn’t disclose the DAEO’s recom- law, rather than political considerations and mendation or analysis. This is odd. Congressional pressures.” The National Right to Mr. Emanuel’s counsel wrote to the IG on Work Foundation and Competitive Enterprise March 22 that nobody had advised him to recuse Institute recently filed Freedom of Information himself. After Democratic Senators complained, Act requests seeking the IG’s communications he consulted the DAEO, Lori Ketcham, who told with Members of Congress, and the board should him he was under no obligation to do so. Mr. respond promptly. i i i Emanuel asked for the opinion in writing. But “a The NLRB is less constrained by administraday or two later, the DAEO told Member Emanuel that she had been told by the OIG” not to pro- tive law than most executive agencies, which allowed Obama appointees to freelance. But now vide it, according to Mr. Emanuel’s counsel. The IG wrote in a March 20 report that “the Democrats want to use White House ethics rules DAEO is required to seek the services of the OIG to handcuff President Trump’s appointees. NLRB when appropriate” and should not “interfere in Chairman John Ring shouldn’t indulge phony our investigative efforts.” But the purpose of ethics charges and should promptly hold a vote agency ethics officials is to provide legal opin- to reinstate its Hy-Brand decision. N Korean Summit Maneuvers orth Korea is threatening to cancel the Kim is talking because he wants the U.S. to pay June 12 summit between Kim Jong Un him for promises of denuclearization and a few and Donald Trump if it means giving up concessions such as the closure of his nuclear its nuclear weapons unilatertesting facility. In other words, Kim Jong Un thinks ally, and credit the North for he is repeating the strategy of candor. The North is restating his grandfather and father in he can resist immediate its long-time position, and negotiating with the U.S. denuclearization. better for the world to know And why not? Kim believes the truth going into the sumhe is in the driver’s seat. In the mit than bank on false hopes. last year he has tested a more The Trump Administration is treating the powerful warhead and launched missiles able statement as a fit of pique, and in one sense to hit Chicago. Now a U.S. President has agreed that’s right. Kim isn’t likely to walk away from to parley directly with him, and China is backthe summit, a diplomatic prize Pyongyang has ing him. Kim met with Chinese President Xi Jinsought for decades. But the North’s threat ping last week and the two agreed that the should bust some pre-summit illusions, not North and U.S. should undertake “phased and least in the Oval Office. synchronous measures” toward denuclearizaThe Trump Administration has talked up the tion. That is far from the complete, verifiable chances of a breakthrough based on Kim’s sus- and irreversible denuclearization that White pension of his nuclear and missile tests and his House national security adviser John Bolton willingness to discuss denuclearization of the says the U.S. wants. Note that the Korean stateKorean Peninsula. But the two sides have very ment attacked Mr. Bolton personally. different ideas about what that means, as well Mr. Trump says he will walk away from talks as how and when it would happen. if Kim isn’t serious about denuclearization. But Mr. Trump credits his “maximum pressure” his bluster and the silly chatter about a Nobel of sanctions and diplomatic isolation for bring- Prize are making it more difficult to leave the ing Kim to the table. Certainly his Administration table. Kim’s maneuvering ahead of the summit has done more than its predecessors to pressure suggests he is confident he can resist immedithe North. But the sanctions weren’t in place long ate denuclearization. Mr. Trump needs to make enough to bring the regime to its knees. clear that won’t happen. I Magical Thinking in Italy taly has had more than 60 governments in 73 years, so the new mooted coalition government of the 5-Star Movement and the League probably won’t last much longer than the others. Then again, Italian financial markets dipped Wednesday with good reason after the plans of this populist left-right coalition were leaked to the press. The two parties share populist impulses, despite 5-Star’s roots in impoverished regions of southern Italy and the League’s wealthier, northern base. Five-Star’s Luigi Di Maio and the League’s Matteo Salvini ran against the failures of the established political parties and took staunchly anti-immigration stances, albeit with different solutions. Five-Star wants expansive welfare payments for poor Italians, revenues to pay for it not included. Italy’s public debt to GDP, at 132%, is already second-highest in the eurozone behind Greece. Poor Italians need more economic growth to generate job opportunities, not public handouts that discourage work. The League’s promise of a pro-growth 15% flat tax is a far better idea, especially in a country where tax avoidance is rife. The two parties would also reverse the 2011 Monti government pension reforms, which raised the retirement age and moved Italy to- ward a contribution-based benefit system. Those measures averted an imminent financial crisis and put Rome on a sounder financial footing. Recent labor-market reforms may also be on the block. More problematic for the rest of Europe are the two parties’ demand for an exemption from the European Union’s 3% GDP cap on annual budget deficits. Mr. Salvini, who has dubbed the euro a failed currency, posted on Facebook Wednesday he’d like to return to a “pre-Maastricht setting,” implying when Italy had the lira and no guardrails from Brussels. Running against the EU is popular in Italy, but it isn’t clear how much risk the new coalition is willing to take. Messrs. Di Maio and Salvini are holding out the threat of a referendum on leaving the EU if negotiations with Brussels fail. The Huffington Post Italia reported Tuesday that the two parties want the European Central Bank to cancel some €250 billion in Italian debt. That won’t happen but it could be used as a threat to win other concessions. Both parties also oppose sanctions on Russia, which could create more problems for EU-U.S. relations. The Italians have a genius for surviving bad governments, so perhaps the best to be said is they’ll find a way to survive this one too. Your editorial “One More Immigration Try” (May 11) mischaracterizes my bill, the Securing America’s Future Act (SAFA). This legislation not only provides certainty via an indefinite renewable legal status for those who are currently in limbo due to the Deferred Action for Childhood Arrivals program, it also provides reforms to discourage illegal immigration in the future. The bill contains tools to thwart surges at our nation’s borders. It closes loopholes in asylum law to reduce fraud and tightens standards to prevent people from gaming the system. It ensures unaccompanied minors who make the dangerous trek to the border are returned home safely and quickly. Further, the SAFA includes reforms to ensure the enforcement of our immigration laws in the interior of our country. It requires employers to use E-Verify to ensure they hire legal workers. E-Verify is simple, easy to use and much less cumbersome than the current paper-based I-9 system. Those who view E-Verify as a poison pill don’t want to provide meaningful enforcement of our laws. The bill both decreases “chain migration” and modernizes our legal immigration system by increasing the number of green cards for foreign nationals who bring the skills needed to boost our economy and create jobs for American workers. It also creates a new, workable agricultural guestworker program for America’s farmers and ranchers, which is supported by over 200 agricultural groups. Unlawful immigrants currently working in the agriculture sector will be able to adjust so they can legally participate in the program. This isn’t selfdeportation. While the recently filed discharge petition would allow for a vote on my bill and others, the petition is the wrong approach to fix our immigration system. It would lead to an unbalanced approach and is likely to ignore the tough issues that need to be addressed to prevent parents from bringing their children here illegally in the future. REP. BOB GOODLATTE (R., VA.) Roanoke, Va. Mr. Goodlatte is chairman of the House Judiciary Committee. Time for a Market-Based Monetary System? Stanley F. Druckenmiller is correct in noting that we move further away from capitalism with each new administration (“Where’s the Invisible Hand When You Need It?”, op-ed, May 3). But his defense of capitalism is weaker than it should be. Most notably, it is odd that he starts his essay with a criticism of Japan’s ill-fated commitment to industrial policy and ends it with praise for Alexander Hamilton, the godfather of American industrial policy. Odd, too, is his monetarist deference to the Fed, attributing to it the power “of controlling long-term interest rates.” Money and credit are a world-wide dynamic and long rates are driven by endless market forces. Thousands of well-paying jobs depend on the myth of an omnipotent Fed, but it is a myth. Finally, why this obsessive fear of deflation? Gently falling asset prices are a bonus of capitalism. With a market monetary system price declines occur at the point of productivity gains, hence, no relative price distortions and no malinvestment. Inflation, on the other hand, inherently distorts relative prices depending on where the new artificial credit enters the economy, leading eventually to recession. EDWARD H. CRANE President emeritus, Cato Institute Falls Church, Va. Before 1913, annual U.S. GDP fluctuated between +/- 15%. Since 1913, annual U.S. GDP has only fluctuated between +/- 6%, a major improvement. It would seem that having a central bank is a good thing. SINCERELY, P. GARTSIDE Cedar Hills, Utah Another Look at Foreign Investments in U.S. After reading my May 8 letter on why U.S. trade deficits don’t necessarily imply greater American indebtedness, Steven Crow describes the examples that I use to make my point as all involving “transferring U.S. assets to foreign creditors” (Letters, May 14). Mr. Crow is mistaken. Consider my example of BMW building a factory in South Carolina. This factory was created by BMW. Because it didn’t exist before BMW created it, this factory cannot possibly have been a U.S. asset that was transferred to foreigners, be they creditors or otherwise. BMW’s factory in Greer, S.C., exists only because BMW conceived of it, financed it, built it and operated it profitably for the past quarter-century. It is neither an asset that ever belonged to an American nor one whose creation resulted in any further American indebtedness. What the U.S. supplies in this case (as in countless others) is chiefly the promising economic opportunity—including the relatively free-market economy—that makes investment in South Carolina attractive. We Americans can take pride in this fact. But we play directly and stupidly into the hands of protectionists if we persist in mislabeling all foreign investments We Fixed One Gender Issue But Have Created Another Dean Paula Marantz Cohen (“It’s the Era of Feelings, and Not Necessarily Good Ones,” May 5) mentions that feelings are a bigger part of college life than when she was in college in the 1970s. She gives several examples of then and now. In 1975 male college graduates outnumbered female graduates in society 17.6% to 10.6%. By 2016 33.7% of American females were college graduates as opposed to 33.2% of males. Since these figures are cumulative, it masks the dramatic change in current enrollees. Now females outnumber males 60% to 40% in college. Cry-ins and crying rooms now appear on leading colleges. But what about the males who don’t even attend college? What does this portend for the future in this highly competitive global economy? Feelings only go so far in decision-making. Reality, reason and the rule of law aren’t to be denied. MICHAEL Y. WARDER SR. Upland, Calif. Mr. Warder was vice chancellor of Pepperdine University 2005-2014. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. in the U.S. as being either increases in American indebtedness or transfers of American assets to foreigners. PROF. DONALD J. BOUDREAUX George Mason University Fairfax, Va. Prof. Steven Crow comments on the sale of Manhattan in terms of balance of trade. He raises the question in an illustration of whether the American Indians or the Dutch got the better deal in this transaction. Consider the power of compound interest via the 1626 purchase of Manhattan Island by Peter Minuit, director-general of New Netherland from the Man-a-hat tribe for an apparently ridiculously low sum of $24 in trinkets. Suppose that sum had been deposited in an investment earning 6%plus over the next 364 years (16261990), it would have grown to a tidy sum of over $39 billion, which was the value of all land in the borough of Manhattan as of April 1990 according to the city assessor’s office (excluding streets and rights of way). It may not have been such a bad deal for the tribe. The deal was even sweeter for the Man-a-hats since American Indians customarily didn’t view themselves as landowners. JAMES H. BOYKIN, PH.D. Richmond, Va. How Many Judges Recused? Regarding your editorial “Have We Got a Muni Bond for You” (May 11): The Illinois Supreme Court in 2015 concluded that “pensions are constitutionally protected.” How many of the judges who were enrolled in the state pension plan recused themselves from the case because of their blatant conflict of interest? GEORGE C. CHRISTY Pasadena, Calif. Pepper ... And Salt THE WALL STREET JOURNAL “Instead of a movie, let’s just stay home and read a comic book.” . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | A19 OPINION The GOP’s Ambitious College Reform Plan C ollege administrators have barely had time to digest the full impact of tax reform, but they are already facing a new challenge as Washington weighs a major piece of legislation that could shake up the way higher education does business. The 1965 Higher Education Act, one of the brightest stars in Lyndon B. Johnson’s Great Society constellation, is due for reauthorization this year. The legislation was intended, in Johnson’s words, “to strengthen the educational resources of our colleges and Simplify student loans, expand vocational options, protect free speech, end ‘public service’ subsidies. universities and to provide financial assistance for students in postsecondary and higher education.” Half a century later, the Education Department manages more than $1 trillion in federal money flowing through six student-loan programs, as well as nine repayment plans, eight forgiveness programs and 32 deferment options. The HEA has also given the department extraordinary power to dictate policy at every level of college and university life, from sexual-assault hearings to the definition of a “credit hour” and how many such hours should be required per course. The unwieldy federal funding system has led to unintended consequences. North Carolina Rep. Virginia Foxx, chairman of the House Committee on Education and the Workforce, told the Carolina Journal that “having allowed students to basically have unlimited borrowing with unlimited forgiveness has driven the cost of college upward. . . . The more money the federal government was putting into higher education, the higher the cost of going.” Since the HEA’s last reauthorization in 2008, undergraduate tuition and fees have increased by 25% in real terms. The HEA might have expanded access to college, but the soaring costs—and the borrowing required to meet them—has turned the process into a kind of debt peonage for many students. “I live in fear,” Michael Arceneaux, a graduate of Howard University, wrote in a New York Times op-ed, “that one day I may fall behind on payments, and fear of what that would mean for my mother, who co-signed my loans with great trepidation.” Instead of a clean reauthorization of the HEA, Rep. Foxx wants a complete overhaul. On Dec. 12, her committee passed a bill called Prosper, or “Promoting Real Opportunity, Success, and Prosperity through Education Reform.” At 590 pages, Prosper is not a quick study. But it reaches for four important goals. sought the party’s nomination in 2016, sensing it was a valuable prize given Hillary’s weaknesses, Democrats are lining up to challenge Mr. Trump. It is hard to imagine the next revelation will shake Mr. Trump’s core supporters, but it is also hard to imagine a strong economy winning over his most hardened detractors. Meanwhile, the Democrats’ radical leftward turn leaves those moderates who will not vote for Mr. Trump ripe to support an independent bid. Mr. Kasich, are you listening? for loan absolution if a student entered government service, disappears—undercutting a major tool for the recruitment of bureaucrats. Also under the bill, no institution benefiting from federal funding will be allowed to restrict student speech through “speech codes” or “freespeech zones.” Nor will they be permitted to deny student religious organizations the same “right, benefit, or privilege that is generally afforded to other student organizations at the institution.” And it limits the ability of the Education Department to issue new mandates or regulations without congressional hearings. What’s the case against Prosper? The Center for American Progress charges that it won’t “put a dent in unacceptable gaps in access and completion by race and income”—even though low-income students and minorities have suffered disproportionately under the current debt-laden system. The American Federation of Teachers is, unsurprisingly, appalled at the drying up of the PSLFP, since that might dampen the appeal of teaching to recent graduates. And David Stacy of the Human Rights Campaign, a gay-rights organization, was incensed that Prosper would allow religious colleges of all sizes to be, well, religious. “You’re not just talking about a little Bible college,” Mr. Stacy told the New York Times. “When you think about Catholic universities, there are a lot of those, and quite a few of these universities would discriminate against same-sex student relationships.” The bill may have little difficulty in the House, but it still has to undergo review by the Senate’s Health, Education, Labor and Pensions Committee, where chairman Lamar Alexander will likely have to make concessions to Democrats, especially about PSLFP, to bring it to the floor. More significantly, Prosper dodges the nagging question of what, exactly, a college education should be—presumably neither a political indoctrination camp nor a mere hatchery for worker bees. But if passed, it will help the HEA promote, if not a great society, at least a freer and more prosperous one. Mr. Jindal served as governor of Louisiana, 2008-16, and was a candidate for the 2016 Republican presidential nomination. Mr. Guelzo is a visiting professor in the James Madison Program in American Ideals and Institutions at Princeton University. ISTOCK/GETTY IMAGES By Allen C. Guelzo The first is rationalization of student loans. Prosper consolidates the six existing student-aid programs into a single Federal ONE Loan Program, and likewise streamlines grants into a single program. It replaces the existing repayment plans with a single 10-year plan of 120 equal payments and a single incomebased plan (in which borrowers would pay back 15% of their discretionary income, down to a minimum of $25 a month). And it simplifies the dreaded Free Application for Federal Student Aid so that families can complete it more easily. Second, Prosper opens up new incentives for students, especially at community colleges, to make the transition to gainful employment by increasing funding for private-sector apprenticeships. “The legislation is going to expand student access to— and the ability to participate in—industry-led ‘earn and learn’ programs,” Rep. Foxx explained. And to ensure that students can target, in advance, the college programs that will benefit them most, Prosper directs the secretary of education to create a “data dashboard” for comparison shopping. These changes are unlikely to please higher-ed lobbyists. But it’s Prosper’s other goals that are setting off eruptions, since they grind directly on several campus sore spots. Under Prosper’s terms, the Public Service Loan Forgiveness Program (PSLFP), which offered a rare avenue Kasich Could Be Trump’s Best Hope By Bobby Jindal D onald Trump once joked that he could shoot someone on Fifth Avenue and not lose votes. That may be true—his approval ratings have inched up recently, tweetstorms and Stormy Daniels notwithstanding. But can he be re-elected? He’s unlikely to face an opponent as unpopular and uninspiring as Hillary Clinton in 2020. His best hope may be John Kasich. The departing Ohio governor has made noises about challenging Mr. Trump in the primaries, but an independent bid would be better for the president. An independent candidacy could split voters who dislike the Democrats but can’t abide the president. A Kasich candidacy would not threaten Mr. Trump’s hold over base voters. While some in the Republican establishment pine for someone to represent the “real” party, GOP voters are generally happy with Mr. Trump. Donors wonder why their millions are spent on winning elections only to pursue social policies they consider distractions at best, whereas millions of primary voters feel their votes are no longer wasted electing politicians who support unfair trade deals and open borders. Mr. Trump has been assailed for waffling on social issues like abortion and gun control, for an economic policy that embraces runaway spending and rejects free trade, for being too conciliatory toward Russia, and for an entitlement policy that is unsustainable. His defenders cite his successes in appointing conservative judges and cutting corporate taxes. He benefits, ironically, from the qualities that earn him scorn from the media. As was evidenced during the Republican primary, it is ineffective to attack Mr. Trump from the right while he is vowing to build a border wall and ban Muslim immigration. He is willing to go rhetorically further than even the most antiestablishment politician, leaving no room in 2016 for Ted Cruz or in 2020 for another conservative challenger. But the base isn’t enough to win, and Mr. Trump so far shows little sign of picking up new supporters. Thus a challenger is not sufficient— Mr. Trump needs a candidate who siphons off not only Republican Never Trumpers, but moderates who might otherwise vote for the Democrat. Fortunately for him, the Democrats are making themselves increasingly unattractive to those moderates. While the media obsesses over all things Trump, they ignore the Democrats’ infighting. Rep. Dan Lipinski barely survived a well-funded primary challenger despite strong union support in a safe blue district due to progressives’ outrage over his prolife views. The Democratic Congressional Campaign Committee has angered grass-roots liberals with its heavy-handed attacks on Laura Moser in a Texas primary. Sen. Elizabeth Warren is attacking Democrats for working with Republicans to lighten the regulatory burden imposed by Dodd-Frank. Democrats are fleeing to increasingly radical policy positions to immunize themselves against attacks from the likes of Ms. Warren and Sen. Bernie Sanders. Whereas President Obama refused to include a public option in his signature health bill, potential presidential contenders like Sens. Warren, Cory Booker, Kirsten Gillibrand and Kamala Harris have rushed to cosponsor Mr. Sanders’s single-payer bill, which would take away private health insurance— along with Medicare—from everyone who has it. Many moderate Democrats who used to support school choice, or at least charter schools, are now silent or reversing their positions. House Minority Leader Nancy Pelosi attacked the Republican-passed tax cut and mocked the resulting bonuses and salary increases. Billionaire Tom Steyer is spending millions insisting impeachment need not wait for the results of Robert Mueller’s investigation. Democratic extremism may not be enough for Republicans to hold Congress this November. Republican control of government has accomplished what Mr. Obama failed to do—make ObamaCare popular and increase funding for Democrats’ priorities. The GOP failure to repeal ObamaCare and approval of a bloated omnibus spending bill will dampen conservative voters’ enthusiasm. While the administration bears much blame, House Republicans are likely to pay a price this November. Yet Democrats’ improving midterm prospects do not necessarily herald success in 2020. In 2006 Mrs. Pelosi became speaker by focusing on PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Gerard Baker Editor in Chief Matthew J. Murray Executive Editor Karen Miller Pensiero Managing Editor Jason Anders, Chief News Editor; Thorold Barker, Europe; Elena Cherney, Coverage Planning; Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; Alex Martin, Writing; Michael W. 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In 2018 she is trying to repeat history, and it may work—but Democrats in 2020 will have to offer more. Just as seemingly every Republican . A20 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. A Exclusively for readers of The Wall Street Journal Rosé Rush SAVE $161 Enjoy 12 Fresh-Vintage Pinks Plus 3 Bonus Bottles 15 wines (worth $261.85) for JUST $99.99 SHIPPING In a few short years, dry rosé has gone from trade secret to official drink of summer. To see you through the season in style, we present 15 freshly landed pinks for only $99.99, shipping included. That’s a $161 savings, while stocks last … INCLUDED Year-Over-Year Growth of Imported Rosé Source: Nielsen 60% 50% “Smallest harvest since 1945” — The Drinks Business The annual race to secure Provence’s world-class pinks has taken on a new urgency this year, thanks to France’s historically low-yielding (high-quality) 2017 vintage. 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TECHNOLOGY: PAY ATTENTION OR YOUR BOSS MAY TAKE YOUR PHONE AWAY B5 BUSINESS & FINANCE © 2018 Dow Jones & Company. All Rights Reserved. S&P 2722.46 À 0.41% S&P FIN À 0.10% * * * ** S&P IT À 0.38% THE WALL STREET JOURNAL. DJ TRANS À 0.82% WSJ $ IDX g 0.05% Thursday, May 17, 2018 | B1 LIBOR 3M 2.326 NIKKEI (Midday) 22817.88 À 0.44% Disney Weighs Top Executive’s Fate BY ERICH SCHWARTZEL AND BEN FRITZ LOS ANGELES—Executives at Walt Disney Co. have discussed bringing animation guru John Lasseter back to the company in a new role that would HEARD ON THE STREET By Jacky Wong Tencent Gets Back In the Game Tencent Holdings, the world’s largest videogame company, has lost almost $90 billion of its market value since March due to concerns about slowing growth and shrinking margins. Its latest report card should put those worries to bed. China’s most valuable firm reported a 48% increase in revenue and a 61% jump in net profit for its first quarter—both handily beating analysts’ estimates. That came after Tencent’s rare miss in revenue growth the quarter before, which had prompted worries about a slowdown in games sales, its largest profit driver. The market also had worried that Tencent’s spending plans for its videos, artificial intelligence and mobile payments could hurt its margins. But neither of those things happened in the latest quarter. Gaming revenue hit another record as sales from smartphone games jumped 68% from a year ago. And Tencent’s margins have actually expanded—mainly thanks to its videogame unit. Gross profit margins in its cloud and payment businesses also improved. Tencent is banking next on the latest global phenomenon—“battle royale” games, in which a large group of players shoot each other until only one remains standing. The company owns the right to distribute “PlayerUnknown’s Battlegrounds” and “Fortnite”— the two most popular titles in this genre—in China. It has developed a mobile version of the former that is available globally, while it owns nearly half of Epic Games, Fortnite’s developer. Tencent’s investors had become used to its shares going up and up, until recent months. Its share price has slipped to 36 times expected earnings, down from 43 times at its recent peak in March, according to S&P Global Market Intelligence. That still isn’t cheap. But investors can now expect a return to the good old days of Tencent’s shares heading ever higher. Tencent’s net profit jumps on videogames, services ........... B4 reduce his managerial power but allow him to retain creative influence, according to a person familiar with the matter. Those discussions come as a six-month leave taken by Mr. Lasseter following accusations of unwelcome hugging and other touching winds down. So far, Disney has given no indication whether or not Mr. Lasseter will return. It is also possible that Monday, which marks the end of the leave, will pass with no decision. Pixar Animation Studios and Walt Disney Animation, which Mr. Lasseter helped develop into family-entertainment powerhouses, have adapted to operating in his absence, even as staff members remain in the dark about who will lead them, employees said. The entertainment giant faces a tricky situation in deciding what to do about Mr. Lasseter, a predicament facing many companies in the #MeToo era as they address infrac- tions they don’t consider severe enough to warrant a manager’s termination. In Mr. Lasseter’s case, Disney executives led by Chief Executive Robert Iger are deciding the fate of a man long considered one of Hollywood’s most bankable and well-known creative geniuses. In his position as chief creative officer of Disney’s studios, a title he has retained while on leave, Mr. Lasseter steered a number of the com- pany’s most valuable franchises, including “Toy Story” and “Finding Nemo.” After Disney acquired Pixar in 2005, he helped lead a revival of Disney Animation Studios, which made “Frozen” and “Zootopia,” and consulted on everything from toy design to theme park attractions. Along the way, Mr. Lasseter became something of a celebrity himself, showing up at Disney fan conventions to present Please see DISNEY page B2 Russell 2000 s5.3% 6% year to date 4 Stacking Up Money raised by private-equity funds focused on information technology $200 billion 150 100 50 0 2007 ’10 ’15 ’17 Source: Preqin THE WALL STREET JOURNAL. Tech Buyout Rivals Face Off BY LAURA COOPER AND DAWN LIM 2 0 –2 S&P 500 s 1.8% –4 January February March April May Small Business Optimism Index Flows into small-cap equity funds, in billions* 110 $1 105 0 100 –1 95 –2 –3 90 2016 ’17 ’18 2014 ’15 ’16 ’17 ’18 *Monthly inﬂows and outﬂows comprise Morningstar-tracked small-cap growth, value and blended funds. Sources: FactSet (index performance); National Federation of Independent Business (optimism index); Morningstar (ﬂows) THE WALL STREET JOURNAL. Small Stocks Speed Past Large Caps BY AKANE OTANI AND MICHAEL WURSTHORN Shares of small U.S. companies climbed to a fresh record, reflecting their gains in the recent tax overhaul and signs that U.S. growth once again looks more robust than that from overseas. The rally marks a remarkable rebound for small caps, which fell behind large stocks last year as investors poured INSIDE money into multinational companies they felt were best positioned to benefit from a synchronized pickup in the global economy. Yet in recent weeks, data have suggested that momentum around the world could be faltering. Growth in the eurozone appears to have slowed in the first quarter of the year, while data Tuesday showed Japan’s economy contracted over the same period, ending the country’s longest growth streak in 28 years. The comparatively rosier outlook for the U.S. has drummed up fresh optimism among investors in small caps—especially with many expecting small companies, which tend to pay higher effective tax rates than multinationals, to get a boost from corporate tax cuts. The Russell 2000 index of smaller U.S. companies rose 1% Wednesday to 1616.37, topping its Jan. 23 closing high. For the year, the index is now up 5.3%, outperforming both the S&P 500, which has risen 1.8%, and the Dow Jones Industrial Average, which is up 0.2%. Those indexes are still more than 5% below their January highs. “When you have an environment where we’re deregulating as opposed to increasPlease see SMALL page B10 Plot Thickens for MoviePass BY BEN FRITZ ZUCKERBERG PUTS ON BEST FACE FOR EUROPE SOCIAL MEDIA, B4 OIL SUPPLY RECEDES TO THREE-YEAR LOW COMMODITIES, B11 Michael D’Ariano has saved a lot of money thanks to MoviePass. But he has lost even more. As one of the more than 2.7 million subscribers to the service that lets people see a new film every day for just $9.95 a month, he has watched more than 40 movies this year. The Bronxville, N.Y., salesman believes in MoviePass so much that he bought 1,000 shares of stock in its parent company, Helios & Matheson Analytics Inc., over the past four months. He thought it could be the next Netflix Inc. His investment is turning out more like a grisly drama than a feel-good comedy. Shares in Helios have dropped 93% since the end of January. Since May 7, they are down 68%, closing Wednesday at 68 cents. Two of the largest technology-focused private-equity firms are competing to raise money for what would be their biggest funds, ratcheting up an already heated race for buyouts in the industry. Vista Equity Partners Management is attempting to raise $12 billion for its latest buyout fund, while Thoma Bravo LLC is looking for around $10 billion, according to people familiar with the matter. Vista’s effort hasn’t previously been reported. The moves represent quick returns to the fundraising market for the firms and underscore their voracious appetites for deals. Vista and Thoma Bravo, until recently not widely known on Wall Street, have become some of the most active and aggressive players in technology investing, in some cases competing with each other for deals. There is no guarantee the firms will reach those targets, and it is possible they will exceed them. Investors believe the funds would still likely be smaller than the $15 billion tech-focused pool that investor Silver Lake raised in 2017. Assuming Vista and Thoma Bravo succeed in their fundraising efforts, their next chalPlease see FUNDS page B4 Card Issuers Grapple With Harder Times BY ANNAMARIA ANDRIOTIS RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS Company discusses role for a creative star who went on leave after accusations See more at WSJMarkets.com The service has loyal subscribers but loses money on ticket sales. “I’m saving $70 a month going to the movies and losing thousands investing in the company that’s letting me do that,” lamented Mr. D’Ariano. Since slashing its monthly subscription price last August from as much as $99, Mov- iePass has built the kind of brand loyalty that most companies dream about. Users evangelize on what may be the best consumer value in America. On average, a movie ticket in the U.S. costs $9.16, accordPlease see PASS page B2 Rising loan losses and increased rewards expenses are pressuring credit-card lenders’ returns, raising concerns that one of the most profitable consumer-lending categories in recent years may have hit a peak. Cards remain highly lucrative for banks, but the benefits of a rising interest-rate environment have been muted lately. The added revenue of cardholders paying more in interest payments each month has been offset by competition from lenders trying to poach card customers by offering lower rates. “The easy money has been made in card lending,” said Don Fandetti, consumer finance analyst at Wells Fargo & Please see CARD page B6 . B2 | Thursday, May 17, 2018 INDEX TO BUSINESSES 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. E Eaton Vance..............B12 Essential Consultants ...................................B12 Exxon Mobil................B6 B Banca Mediolanum...B11 Banco BPM................B11 Barracuda Networks...B4 Bayer...........................B5 Bitmain Technologies ...................................B10 BJ's Restaurants......B10 BlackRock..................B12 BMW ........................... B5 BP................................B6 Breyer Capital...........B10 C Caesars Entertainment .....................................B2 Cambridge Analytica..B4 Capital One Financial.B6 CBS..............................A1 Celgene......................B12 Churchill Downs..........B2 Circle Internet Financial ...................................B10 Citigroup......................B6 Coinbase Global........B10 Comcast.......................B6 D Daimler........................B3 Digital Currency Group ...................................B10 Discover Financial Services.....................B6 F Facebook......................B4 FanDuel ....................... B2 Fiat Chrysler Automobiles ............. B3 Fidelity Investments B12 Ford Motor..................B3 G General Catalyst.......B10 General Motors...........B3 Goldman Sachs Group ...................................B10 H Helios & Matheson Analytics...................B1 Hulu.............................B6 I IDG Capital................B10 Isuzu Motors...............B3 J News Corp...................B6 Nordstrom...................B2 Novartis...............A4,B12 P Paddy Power Betfair..B2 PowerSchool Group....B4 R Royal Dutch Shell.......B6 S SailPoint Technologies Holdings....................B4 Silver Lake..................B1 Sky...............................B6 Southwest Airlines .... B3 Synchrony Financial....B6 T Tencent Holdings ..........................A2,B1,B4 Thoma Bravo...............B1 Tibco Software ........... B4 T. Rowe Price Group.B12 Turing Pharmaceuticals ...................................B12 Tusk Ventures...........B10 21st Century Fox........B6 J.C. Penney..................B2 U M UniCredit...................B11 US WorldMeds............B4 Macy's..................B2,B12 Malibu Boats ............ B10 Mercator Advisory Group.........................B6 Morgan Stanley........B12 Mylan.........................B12 V N Valeant Pharmaceuticals International...........B12 Viacom ........................ A1 Vista Equity Partners Management.............B1 National Amusements .....................................A1 Navistar InternationalB3 Walmart......................B2 Walt Disney...........B1,B6 W INDEX TO PEOPLE A Houchois, Philippe......B5 Avakian, Stephanie...B10 K B Bell, Oliver................B12 Kelly, Gary...................B3 King, Matt...................B2 Kokesh, Charles........B10 F L Fandetti, Don..............B1 Lasseter, John.............B1 Levin, Kip....................B2 Bakish, Bob.................A8 Farnsworth, Ted..........B2 Peikin, Steven...........B10 Pruett, William.........B12 R Redstone, Shari..........A1 Rupkey, Chris............B11 M Moonves, Les..............A1 T Gennette, Jeff ............ B2 N-P Trojan, Gregory.........B10 Nelms, David...............B6 Nelson, Erik...............B11 Zuckerberg, Mark ....... B4 DISNEY Continued from the prior page new footage or sell versions of his signature Hawaiian shirts. Rosé from his family’s Sonoma Valley vineyard is still available at Disneyland and Walt Disney World. A representative for Mr. Lasseter didn’t respond to a request for comment. If Mr. Lasseter returns in his prior role, Disney risks alienating employees and opening itself to blame for any future inappropriate behavior on his part. Some current and former Pixar employees have told media outlets, including The Wall Street Journal, that Mr. Lasseter regularly hugged or otherwise touched them without consent. The company appears to be trying to keep the benefit of Lasseter’s creative input. After closing dozens of stores, Macy’s Inc. reported higher sales at locations still open amid signs that the department-store giant is pulling out of a prolonged slump. The results were buoyed by a strong economy, with low unemployment and recent tax cuts that should give consumers more money to spend. They bode well for other retailers scheduled to report earnings this week, including Walmart Inc., J.C. Penney Co. and Nordstrom Inc. “The customer is feeling confident, and is out there ready to spend,” said Macy’s Chief Executive Jeff Gennette. Macy’s said same-store sales in its fiscal first quarter rose 3.9% from a year earlier, and by 4.2%, including licensed departments. A big driver of the sales increase was a promotional event that shifted into the first quarter; last year it occurred during the second quarter. Stripping out this event, same-store sales on an owned-plus-licensed basis would have risen 1.7% for the period ended May 5, according to the company. But Macy’s is also taking internal steps that are boosting performance, including a streamlined merchandising structure and a new incentive On the Rise Shares in Macy’s surged after the retailer reported sales growth that surpassed analysts’ estimates. Comparable store sales Macy’s daily share price Change from previous year 5.0% 1Q 2018 t3.9% 2.5 $34 Wednesday $33.17 ▲11% 32 0 30 –2.5 28 –5.0 –7.5 26 2015 ’16 ’17 ’18 Sources: the company (sales); FactSet (shares) plan that lets all full- and part-time staff share in the gains, based on local store and corporate performance. “We’re moving better and faster than ever before,” Mr. Gennette said. Shares in Macy’s shot up nearly 11% Wednesday after the retailer reported samestore sales growth that widely surpassed analysts’ estimates and raised its projections for the year. Macy’s said it now expects to earn between $3.75 and $3.95 a share on an adjusted basis, a range 20 cents higher March April May THE WALL STREET JOURNAL. than its prior guidance. The company also raised the prospects of seeing annual sales growth. The department-store chain now expects annual sales to be in a range of down 1% to up 0.5%, compared to its prior forecast of sales falling between 0.5% and 2%. Macy’s revenue rose 3.6% to $5.54 billion. Profit climbed 78% to $139 million, or 45 cents a share. On an adjusted basis, the company earned 48 cents a share. Macy’s had less excess inventory to clear in the period, and customers also spent more on full-priced goods. That helped the average ticket price rise 5%, according to the company. The retailer also benefited from a rebound in spending by international tourists after they pulled back in recent years due to the strong dollar. Mr. Gennette said Macy’s was getting traction from revamped shoe and fine jewelry departments as well as a new loyalty program that offers tiered rewards based on spending. It is also adding new categories to its website through its vendor direct program, such as drones and decorative home goods. Mr. Gennette also pointed to the rollout out of Macy’s Backstage, the company’s discount concept, as helping to buoy sales. In the first quarter, Macy’s opened about 20 of these stores. It plans to open 100 this fiscal year. The company also said earlier this month it bought a New York City concept store called STORY that changes what it is selling and its design every four to eight weeks. Macy’s also said that STORY’s CEO and founder, Rachel Shechtman, will become a brand experience officer at Macy’s. Heard: Macy’s results are a miracle on 34th Street....... B12 Z Pixar’s “The Incredibles 2,” out June 15, and Disney Animation’s “Ralph Breaks the Internet: Wreck-It Ralph 2” in November. Other projects that have advanced without his involvement include “Toy Story 4” and “Frozen 2,” scheduled for 2019. In considering a redefined role for Mr. Lasseter, Disney leadership appears to be attempting to maintain the benefit of his creative input without the liabilities that could come from his being in charge of thousands of employees, as he previously was. Day-to-day management duties, including hiring or firing capabilities, would be removed or contained in the scenario being considered, the person familiar with the matter said. Limiting Mr. Lasseter’s managerial oversight could be a challenge, however, as his power came less from his official title than his unofficial standing as Disney’s most-valued creative employee, people who worked with him said. It is still possible he could leave altogether or come back with his old job unchanged, the person added. His absence has been felt in every corner of Disney’s animation business, current and former employees say. Though he personally directed only five movies, he consulted on every movie at Pixar and Disney Animation, weighing in every few weeks to every few months depending on how smoothly production was going, employees said. Approval from Mr. Lasseter was necessary to move past benchmarks in writing, storyboarding, production and editing. Now Disney is relying primarily on a panel of artists, producers and executives at each studio to make creative decisions, according to current and former employees, a more diffuse approach than Mr. Lasseter’s arrangement. —Jim Oberman contributed to this article. DAN STEINBERG/INVISION/ASSOCIATED PRESS Some employees said that Mr. Lasseter’s behavior didn’t bother them. However, others, particularly younger women, said they were uncomfortable and came forward in the light of the #MeToo movement. In announcing his leave in November, Mr. Lasseter, 61 years old, said: “I especially want to apologize to anyone who has ever been on the receiving end of an unwanted hug or any other gesture they felt crossed the line in any way, shape, or form.” Since then, Mr. Lasseter has disappeared from public view. Disney employees said they hadn’t heard from him and didn’t know his whereabouts. He left immediately before the debut of Pixar’s Oscar-winning “Coco” and has remained absent even as the studios ready two high-profile releases: BY SUZANNE KAPNER AND ALLISON PRANG S G-H Gwirtzman, Randy....B10 Macy’s Sales Take a Positive Turn Samana, Sameer ...... B10 Shechtman, Rachel ............................. B2,B12 Springer, Jack ........... B10 Foran, Brian ................ B6 Gifford, Charles..........A8 BUSINESS & FINANCE John Lasseter’s influence was pervasive at the animation studios. ROB CARR/GETTY IMAGES A Accell Group..............B10 Airbus........................A12 Amazon.com...............A2 American Express.......B6 Ashmore Group.........B12 Autonomous Research .....................................B6 THE WALL STREET JOURNAL. * *** Churchill Downs, which hosts the Kentucky Derby, is one of a number of firms looking for a foothold in a new sports-gambling market. Gambling Firms Chase the Sports Bet BY CHRIS KIRKHAM AND AUSTEN HUFFORD Ladies and gentlemen, place your bets. Gambling firms are wagering that the U.S. sportsbetting market is the next frontier after the Supreme Court lifted limits on the business, and several are vying to be first out of the gate with offerings. Businesses on both sides of the Atlantic are working to launch or expand U.S. operations, hoping to get a piece of what could be a multibilliondollar industry. Paddy Power Betfair PLC, a Dublin gambling company, said Wednesday it is in talks to merge its U.S. business with FanDuel Inc., a fantasy-sports company that offers games PASS Continued from the prior page ing to an industry trade group, and much more in major cities. For barely more than that, a dedicated MoviePass user can see every Hollywood release and several obscure independents or Bollywood imports to boot. Some said the offer was too good to be true, an opinion that may now merit a “spoiler alert” warning. In its annual report, filed last month, the independent auditor for Helios expressed “substantial doubt” about its ability to continue operating. MoviePass pays theaters full price for every movie ticket its members order, meaning that its core business is designed to operate at a loss. The company’s plan, executives have said, is to take advantage of a user base that has grown nearly 150-fold in nine months to sell advertisements and to persuade theaters to give them a cut of revenue. Despite some successes, including email ads for the comedy remake “Overboard” and deals with small cinema chains, MoviePass lost $98.3 million on $48.6 million of revenue in the quarter ended March 31, Helios reported Tuesday. In a daily. FanDuel, based in New York City, declined to comment. Churchill Downs Inc., which hosts the Kentucky Derby, said Wednesday it is planning to expand its sportsbetting business. That came on the heels of similar announcements from casino operators, including Caesars Entertainment Corp. The Supreme Court on Monday opened the door to legal sports betting across the country by invalidating federal prohibitions from 1992 that had essentially restricted the legal market to Nevada. Gambling operators, sports leagues and state governments are now vying for their share of the potential revenue, as state lawmakers discuss tax rates and possibly fees to be charged by sports leagues, such as the National Basketball Association and Major League Baseball. Paddy Power Betfair has already been in the U.S. market for years, operating a horseracing TV channel and related online betting. The company also runs an online casino in New Jersey, where lawmakers have said they would move quickly to pass legislation to regulate and tax legalized sports betting. Kip Levin, chief executive of the Paddy Power Betfair’s U.S. operation, said his company plans to move quickly into the New Jersey market, and expects to be offering wagers on National Football League games this fall. If it acquired FanDuel, Paddy Power Betfair would get a database of six million users, most of whom have handed over their credit-card information. Paddy Power last year acquired a smaller daily fantasy-sports company called Draft. DraftKings Inc., another fantasy-sports operator, also said Monday it would enter the sports-betting market. Even before Monday’s decision, FanDuel Chief Executive Matt King said he had a team of people working on making sports-betting products, an expansion from the company’s paid fantasy offerings. Churchill Downs said Wednesday it would enter online-gambling and sports-betting markets in New Jersey and Pennsylvania. Boom and Bust Shares in MoviePass's parent company have surged and plunged since the company made its movie-a-day offering. Helios & Matheson share price $35 30 25 Aug. 15, 2017 Helios & Matheson acquires majority control of MoviePass, slashes price to $9.95 a month for one ﬁlm a day Wednesday $0.68 Feb. 8 Surpasses 2 million subscribers 20 Sept. 14 Hits 400,000 subscribers from fewer than 20,000 in just 30 days 15 10 Jan. 9, 2018 1.5 million subscribers May 8 Helios reports it has only $15.5 million cash available April 17 Annual report reveals auditors have ‘‘substantial doubt’’ Helios can remain a growing concern 5 0 2017 ’18 THE WALL STREET JOURNAL. Source: FactSet regulatory filing last week, Helios, which generates more than 98% of its revenue from MoviePass, said it had only $15.5 million cash and $27.9 million of accounts receivable. The revelation sent its already struggling stock into a tailspin. Helios Chief Executive Ted Farnsworth, however, wasn’t in crisis mode when reached by phone Friday at the Cannes Film Festival in the south of France, which he described as “a riot, one big party.” He was seeking new films his company could invest in through its MoviePass Ventures, which buys stakes in motion pictures that it can market to its users. MoviePass Ventures already owns part of “Gotti,” a biopic of the crime boss starring John Travolta that premiered at Cannes. Mr. Farnsworth argued that the company has access to hundreds of millions of dollars through other means, including a deal to sell up to $150 million of new stock that, when announced last month, also sent shares plummeting. Recent changes, such as banning seeing the same movie twice, have brought MoviePass’s monthly burn rate down by 40%, he said. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | B3 * * BUSINESS NEWS Southwest Completes Inspection Of Engines ANNAPOLIS, Md.—Southwest Airlines Co. said it has completed engine inspections across its fleet of more than 700 jets after a fatal accident on one of its flights last month. Chief Executive Gary Kelly on Wednesday said Southwest has sent a small number of engine fan blades back to their maker for further tests and is working with manufacturers and regulators on the potential redesign of parts and inspection protocols. The April 17 engine blowout on a flight from New York to Dallas sent debris from the engine cowling into parts of the jet’s wing and fuselage, breaking a window and killing passenger Jennifer Riordan. Afterward, Southwest canceled around 500 flights to perform the engine inspections across its fleet. Mr. Kelly said at Southwest’s annual meeting that the airline remained in contact with Ms. Riordan’s family. Mr. Kelly said that bookings were still down as the airline has pulled back on marketing in the wake of the accident. The carrier of the most U.S. domestic passengers still expects revenue per available seat mile to decline between 1% and 3% in the second quarter. Southwest said 1 to 2 percentage points of that decline was attributable to the recent softness in bookings. Before the accident, analysts had expected that unitrevenue measure to be flat to down 2% from a year earlier. The airline’s stock has been the industry’s worst performer this year, falling around 20% as investors fret over plans to add capacity that could spark competition with other carriers to cut fares. AJ MAST FOR CHEVROLET BY DOUG CAMERON General Motors is re-entering a market segment that it abandoned around the time of its 2009 bankruptcy. The auto maker’s new, beefier Chevrolet Silverado model. Heavy-Pickup Contest Heats Up With a new entry, GM hopes to cut into Ford’s traditional lead in a growing market BY MIKE COLIAS The business of big trucks is bigger than ever, opening up a new front in the market-share battle between General Motors Co. and Ford Motor Co., which dominate the production of pickups that significantly outweigh conventional models. A strong U.S. economy and the December tax overhaul are helping lift sales of commercial vehicles, mainly pickup trucks and delivery vans used by farmers, general contractors and other skilled trades, auto dealers say. While Ford, with its F-Series pickup, has long held a sizable lead in the battle for business customers, GM this year plans to reintroduce a so-called medium-duty commercial truck, a category the auto giant abandoned around the time of its 2009 bankruptcy. The beefy new Chevrolet Silverados will be built under an agreement with truck maker Navistar International Corp. at a plant in Springfield, Ohio. The trucks are as much as three times as heavy as a regular Silverado, and users convert them into everything from dump trucks to ambulances. GM’s return to the segment reflects Detroit’s sharper focus on trucks and sport-utility vehicles as demand for passenger cars recedes. GM, Ford and Fiat Chrysler Automobiles NV are adding new truck models in a bid to boost profits. Big pickup trucks and the SUVs that share the same frames offer fatter profit margins than cars and generate the majority of global profit at the companies. Ed Peper, head of GM’s fleet business, believes the return of the medium-duty Silverado truck to GM’s lineup will bring back business customers who defected to Ford. “We’ve been losing customers because we don’t have this,” Mr. Peper said. John Ruppert, general man- Truck Trailer GM hopes to close the gap with Ford in the lucrative market for commercial vehicles. U.S. commercial vehicle sales Ford GM 350,000 vehicles 300,000 250,000 200,000 150,000 100,000 50,000 0 2012 ’15 ’17 *Excludes sales to government entities Source: Bobit Business Media ager of Ford’s commercial sales, is confident Ford can protect its medium-duty business because it has strong relationships with business customers and the companies that convert the trucks for specific use. Ford and GM are going after customers like Fred Hollmann, owner of a landscaping company near Cincinnati. Mr. Hollmann said he plans to buy several pickup trucks through next year to update his fleet of about 50 vehicles. Business is strong, and his lower taxes have improved cash flow, he said. Provisions in the tax law allow business owners to fully write down the depreciation of a heavy truck the same year it was purchased, an incentive Mr. Hollmann said he plans to utilize. “We’ve got several trucks that have just gone by the wayside and need to be replaced,” Mr. Hollmann said. The medium-duty truck segment is relatively small—there were about 150,000 sold last year, according to Columbus, Ind.-based ACT Research Co. But buyers tend to be big spenders and typically purchase many types of vehicles from the same auto maker, said Steve Tam, an ACT vice president. Medium-duty trucks, which are more customizable than other types of trucks, can go for more than $60,000, plus hefty conversion costs. Ford is the segment’s major player, with about 45% market share, according to ACT. But GM will face other competitors, too, including Fiat Chrysler’s Ram division, Daimler AG’s Freightliner brand and Isuzu Motors Ltd. GM’s overall commercial business suffered after bankruptcy, which scared away some customers. The company’s sales to business customers totaled about 165,000 vehicles in 2012, down by nearly half from 2006. The medium-duty Silverados will be the biggest vehicles GM sells, though it will leverage other parts of its truck business. For example, the cabin—typically no-frills—will be similar to the interior of a regular Silverado, with creature comforts like Wi-Fi and Apple Car Play. Keith McCluskey, a Cincinnati Chevrolet dealer, was a major seller of medium-duty trucks before GM killed the line. He has already fielded calls from customers eager to check out the new one, but he believes winning back business from Ford will be tough. ADVERTISEMENT The Black Death: The World’s Most Devastating Plague Taught by Professor Dorsey Armstrong UU U E IT D TIME OF R FE 70% off O RD E R BY MA 31 LIM U Y How Did the Black Death Change History? In the late 1340s, a cataclysmic plague—known to us as the Black Death—left up to 75 million dead across Europe. While the story of the Black Death is one of destruction and loss, it is also one of the most compelling and deeply intriguing episodes in human history. 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No exams. No homework. Just a world of knowledge available anytime, anywhere. Download or stream to your laptop or PC, or use our free apps for iPad, iPhone, Android, Kindle Fire, or Roku. Over 600 courses available at www.TheGreatCourses.com. . B4 | Thursday, May 17, 2018 * *** THE WALL STREET JOURNAL. TECHNOLOGY WSJ.com/Tech FUNDS BY WAYNE MA A U.K. protester carries a papier-mâché head of the Facebook founder amid criticism of data handling. Zuckerberg Seeks to Ease Strains on European Visit BY NATALIA DROZDIAK AND SAM SCHECHNER BRUSSELS—Facebook Inc. CEO Mark Zuckerberg will meet with French President Emmanuel Macron and other European officials next week, as the Silicon Valley giant tries to calm tension with regulators and policy makers on both sides of the Atlantic. Mr. Zuckerberg will meet with top European lawmakers in Brussels to discuss the social network’s handling of its users’ personal information, and its potential impact on European elections, said European Parliament President Antonio Tajani. The hearing won’t be open to the public, an EU official said. In Paris, Mr. Zuckerberg will participate in a lunchtime meeting Wednesday at France’s Élysée Palace called “Tech for Good” that will include such tech executives as Uber Technologies Inc. CEO Dara Khosrowshahi, a French official said. Mr. Zuckerberg will also have a private meeting with Mr. Macron, the official added. “We are looking forward to meeting next week with the president of the French Republic Emmanuel Macron,” the company said, adding of its meetings with EU lawmakers: “We…appreciate the opportunity for dialogue, to listen to their views and show the steps we are taking to better protect people’s privacy.” A Facebook spokesman declined to comment when asked if Mr. Zuckerberg would travel to other European capitals or meet with other officials. Facebook has come under fire in recent months over revelations that the social network allowed personal information of as many as 87 million users to be obtained by data-analytics company Cambridge Analytica. Face- The Facebook CEO will meet with French President Macron and EU officials. book also has faced heat over interference in the 2016 U.S. presidential election by Russian operatives using the social network. Ahead of European Parliament elections in 2019, the EU has been pushing platforms to do more to halt the spread of misinformation or “fake news,” on their sites, or face possible regulation. Mr. Macron has also directed his government to work on proposing a law to rein in fake news during election periods. Some EU lawmakers criticized the decision to hold the meeting in Brussels behind closed doors. “Given the deep mistrust caused by the Cambridge Analytica scandal, this meeting must be public. There should not be double standards for the U.S. Congress and the European Parliament,” said Green group leaders Philippe Lamberts and Ska Keller. A trip by Mr. Zuckerberg next week would coincide with the bloc’s sweeping new privacy laws, which enter into force on Friday, May 25. Facebook has said it would implement some privacy controls inspired by the law world-wide. European lawmakers have stepped up calls for Mr. Zuckerberg to testify in Brussels about the Cambridge revelations after he spoke before U.S. lawmakers in mid-April. In the U.K., a British parliamentary committee requested that Mr. Zuckerberg testify about Facebook’s handling of user data or face a formal summons. Facebook has said Mr. Zuckerberg had no plans to go to the U.K., and a spokesman Wednesday said he had “nothing else to add right now.” The company sent a top executive to testify before the committee last month. In January, Facebook Chief Operating Officer Sheryl Sandberg also met with Mr. Macron in Paris, and with EU officials in Brussels. —Valentina Pop, Jenny Gross and William Horobin contributed to this article. The Incredible Father’s Day FIRST CLASS TRAVEL FOR YOUR FEET 17999 $ SALE! SAVE $20 Can’t Hear Voices On TV? Our AccuVoice® Speaker uses hearing aid technology to make TV dialogue crystal clear. Can’t hear dialogue on TV? You’re not alone. 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ORDER AT ZVOX.COM CNET BEIJING—Tencent Holdings Ltd. blew past expectations, reporting a 61% increase in net profit for the first three months of the year on the strength of mobile games and other digital content, and its fast-growing mobile payments business. The company’s earnings in the quarter offer a window into the forces shaping China’s consumers, who are increasingly relying on their smartphones for entertainment content and making purchases. Tencent’s core business remains online games, with consumers continuing a rapid migration from PC to mobile. Revenue from PC games was flat from a year earlier, while mobile-game revenue was up 68%. The company—known for its WeChat social-messaging app that recently topped one billion users—said its mobile games continue to dominate download charts, particularly QQ Speed Mobile, a racing game similar to Nintendo’s Mario Kart released for smartphones in December. Tencent’s fastest-growing businesses are payments, cloud services and digitalcontent subscriptions. Video subscriptions were up 85%, while cloud-services revenue doubled from a year earlier. Revenue in the segment containing those ancillary businesses more than doubled in the first quarter, making up 22% of overall revenue, up from a 15% share in the yearearlier period. Tencent’s costs, however, are rising as it spends heavily to buy content to keep users glued to its products. The company, based in Shenzhen, China, said cost of revenue, which includes content costs, rose by 51% in the quarter when compared with the same period last year. Tencent reported net profit Wednesday of 23.29 billion yuan ($3.66 billion) for the first quarter, beating the 17.1 billion yuan estimate of analysts polled by S&P Global Market Intelligence. Revenue rose 48% to 73.53 billion yuan. Shares of Tencent, which has a market capitalization of 3.75 trillion Hong Kong dollars (US$478 billion), ended 0.4% lower at HK$397.60 in Hong Kong on Wednesday before the earnings release. QILAI SHEN/BLOOMBERG NEWS DANIEL LEAL-OLIVAS/AGENCE FRANCE-PRESSE/GETTY IMAGES Continued from page B1 lenge will be to invest all that money without further inflating the prices of tech businesses and driving down the buyout firms’ returns. Skyrocketing demand from private-equity and sovereign-wealth funds already has pushed up purchase prices sharply. Technology has been the most popular sector for privateequity investors in recent years, accounting for 20.5%, or $79.5 billion, of all acquisitions globally in 2017, according to Dealogic. Buyers acquired controlling stakes in technology companies larger than $10 million at an average price of 23 times earnings before interest, taxes, depreciation and amortization last year, matching the 2015 peak, according to Dealogic. Buyout firms have been drawn to technology, particularly so-called software-as-service companies, for their promise of recurring revenues, which can help support the hefty debt loads the investors tend to use to finance takeovers. Vista, which was founded in 2000 and manages over $31 billion, has invested in companies including educationalsoftware provider PowerSchool Group LLC and dataanalytics provider TIBCO Software Inc. The Austin, Texas, firm just closed an $11 billion-plus fund last year. A 2014 Vista fund delivered roughly 1.25 times invested capital as of December 2017, according to pension data and research firms. The result doesn’t include a recent deal to sell part of its stake in PowerSchool, which is expected to generate nearly four times invested capital. Vista, which focuses exclusively on software, employs over 200 people. About half of them are part of a consulting arm that works to improve operations at businesses the firm owns. In recent years, Vista has expanded beyond its core buyout funds into other strategies, including small-cap deals and credit. The firm has also set its sights on a fund with a longer life span than traditional private-equity deals. Thoma Bravo, with more than $21 billion in assets, has invested in cloud-security business Barracuda Networks Inc. and cybersecurity firm SailPoint Technologies Holdings Inc. Thoma Bravo, which has offices in Chicago and San Francisco, raised $7.6 billion for its prior flagship fund in late 2016. Its 2014 fund delivered 1.58 times invested capital as of December 2017, according to pension-fund data. Thoma Bravo invests more broadly, and besides software focuses on technology-enabled services. The firm, which has 85 employees and operating executives, has expanded into funds that invest in smaller deals too. —Laura Kreutzer contributed to this article. Tencent’s Net Jumps On Games, Services A WeChat conference. Tencent is known for the messaging app. FDA Clears Nonopioid Drug For Withdrawal Symptoms BY AISHA AL-MUSLIM The U.S. Food and Drug Administration has approved the first nonopioid treatment to help adults manage opioid withdrawal symptoms as the agency looks to continue to encourage the development of therapies to help patients suffering from addiction. The FDA granted the approval of Lucemyra to Louisville, Ky.-based pharmaceutical company US WorldMeds LLC, the agency said Wednesday. The company also develops products for patients with Parkinson’s disease, malignant hyperthermia and other medi- cal conditions. “We’re developing new guidance to help accelerate the development of better treatments, including those that help manage opioid withdrawal symptoms,” FDA Commissioner Scott Gottlieb said in prepared remarks. “We know that the physical symptoms of opioid withdrawal can be one of the biggest barriers for patients seeking help and ultimately overcoming addiction.” The treatment, which isn’t designed to be a treatment for opioid addiction, is expected to be commercially available in the U.S. in August. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | B5 MANAGEMENT Eye on the Ball, Not on the Phone To keep staff focused, managers try to keep devices at a distance; is the effort Prohibition-like? BY JOHN SIMONS BY NINA TRENTMANN OTTO STEININGER Two thousand six hundred seventeen times a day. That is how often the average person taps, pokes, pinches or swipes their personal phone. It all adds up to about 2 hours and 25 minutes, according to a study by mobile app research firm Dscout Inc. And a good chunk of that time comes during work hours. Jason Brown had had enough of it. Two years ago, the chief executive of Brown, Parker & DeMarinis Advertising paused for a moment to look across the meeting room as he delivered a presentation. The majority of those gathered were fiddling with their phones. “I lost it,” says Mr. Brown. In his anger, he issued a companywide edict: “Don’t show up at a meeting with me with your phone. If someone shows up with their phone, it’ll be their last meeting.” Many managers are conflicted about how—or even whether—to limit smartphone use in the workplace. Smartphones enable people to get work done remotely, stay on top of rapid business developments and keep up with clients and colleagues. But the devices are also the leading productivity killers in the workplace, according to a 2016 survey of more than 2,000 executives and humanresource managers conducted by CareerBuilder, an HR software and services company. There is also some evidence that the mere presence of smartphones hurts productivity. When workers in a recent study by the University of Texas and University of California had their personal phones placed on their desks—untouched—their cognitive performance was lower than when their devices were in another location, such as in a handbag or the pocket of European Executives Are Upbeat Despite Headwinds a coat hanging near their workspace. “I firmly believe that multitasking is a myth,” says Bill Hoopes, an IT project manager at L3 Technologies Inc. Mr. Hoopes put his convictions into practice at group gatherings when he took over a team of about 25 people at the aerospace defense company three years ago. “Every time someone’s phone went off, they had to stand for the rest of the meeting,” he says. Before long, he asked the group to leave their phones at their desks when two or more people got together. Over time, he says, he has noticed not only an improvement in the quality of conversation and ideas in meetings, but also that his people seem to show more respect and appreciation for one another’s work. Mat Ishbia, CEO of United Wholesale Mortgage, banned May 22, 2018 | technology from meetings about two years ago and recently asked that his executive team and other managers not check their phones as they walk to and from meetings. “Don’t act like we’re too important to say hello,” he says he told them. “Make eye contact with people.” Mr. Ishbia is now piloting another solution to phone addiction. A group of about 250 workers are part of an experiment in which they refrain from all personal phone use at their desks. If they want to use their devices they must go to a common area designated for phone use and socializing. Forty-five days into the trial run, workers are checking their phones a lot less, he said. Bryan Lee, a product manager at enterprise software company Docker Inc., suspected that his daily phone Four Seasons Hotel | use was a problem, so last month he installed an app called Moment on his iPhone that tracks the total amount of daily time he spent on his phone. His first measurement revealed four hours in a day. Since early April, he has reduced that to roughly an hour. At work, Mr. Lee persuaded his team of eight to download the app and post their daily phone hours on a whiteboard. The team member with the lowest time gets bragging rights. “We’re thinking of having a trophy we can pass around—or maybe just shaming the loser,” he says. Shane Wooten, CEO of enterprise video platform company Vidplat LLC, has limited personal devices at meetings with his employees since January—and he faced some resistance. Workers argue their phones are vital for staying in touch with a sick child or researching information relevant to the meeting. “I told them we’re not in middle school,” he says. “I’m not collecting phones in a bucket. Just don’t have it out face up on the table.” The no-phones-at-meetings rule at Mr. Brown’s ad agency lasted about two months as it wasn’t all that effective. Instead of phones, staffers wore smartwatches to meetings or brought their laptops, which were just as distracting, he says. Now, he tells his 40 employees not to attend meetings unless they really have to be there and are ready to fully engage. Mr. Brown missed his phone, too, and likened the experience to outlawing alcohol during the Prohibition era: “A theoretical state that almost no one wants to live in, including those making the rules,” he says. European companies are reporting slower profit growth as currency headwinds and higher costs squeeze earnings. Their outlook is shadowed by the specter of potential tariffs, despite a robust economic forecast for the region. Still, more European executives are optimistic about their company’s outlook, said Merrill Lynch strategist Manish Kabra, who reviewed 411 transcripts from first-quarter European company events. “The mind-set is positive but slowing down,” Mr. Kabra said. As of Monday, 58% of the 363 companies in the Stoxx Europe 600 that had reported quarterly results beat analysts’ earnings expectations, according to JPMorgan Chase & Co. A year ago, 66% of all companies listed on the index beat forecasts. Per-share earnings were up 10% from a year earlier, compared with a 25% advance for 2017’s first quarter, according to JPMorgan. “Raw material costs and currency effects are the two main factors European companies are battling with,” said Philippe Houchois, an analyst at Jefferies LLC. The euro has appreciated more than 15% against the dollar from a year ago. Oil and other commodity prices crept up during the quarter. Bayer AG, the German chemicals company, said currency effects held back earnings by around €160 million ($191.5 million). Higher prices for steel and plastics were a drag on profitability for car manufacturer BMW AG, which also suffered from fluctuations in the value of the Chinese yuan and the Russian ruble. Washington, D.C. How innovation is revolutionizing the business of health This spring, the editors of The Wall Street Journal will convene experts from across the health and health-care industries to focus on the innovations transforming this critical sector. SPEAKERS Scott Gottlieb, M.D. Rear Adm. Anne Schuchat, M.D. Steven H. Collis Commissioner, U.S. Food and Drug Administration Acting Director, Centers for Disease Control and Prevention Chairman, President and CEO, AmerisourceBergen Corporation Andrew Bremberg Mark T. Bertolini Alex Gorsky Assistant to the President and Director, Domestic Policy Council, The White House Chairman and CEO, Aetna Inc. Chairman and CEO, Johnson & Johnson Mary E. Klotman, M.D Michael A. Mussallem Chairman and CEO, Eli Lilly and Company Dean, School of Medicine and Vice Chancellor for Health Affairs, Duke University Chairman and CEO, Edwards Lifesciences Regina M. Benjamin, M.D. George M. Church, Ph.D. Founder and CEO, BayouClinic, Inc. Professor of Genetics, Harvard Medical School Surgeon General of the United States (20092013) Director, PersonalGenomes.org Alexis Borisy Anthony S. Fauci, M.D. Director, Third Rock Ventures Director, National Institute of Allergy and Infectious Diseases, The National Institutes of Health David A. Ricks Peter B. Bach, M.D. Director, Center for Health Policy and Outcomes and Faculty Member, Department of Epidemiology and Biostatistics Memorial Sloan Kettering Cancer Center Stephanie Domas, P.E., C.E.H. Vice President of Research, MedSec David N. Osser, M.D. Associate Professor of Psychiatry, Harvard Medical School Attending Psychiatrist, Domiciliary Treatment Program for Homeless Veterans, Veterans Affairs Boston Healthcare System Eric Topol, M.D. Founder and Director, Scripps Translational Science Institute, Professor of Molecular Medicine and Executive Vice President, The Scripps Research Institute Daphne Zohar Co-Founder and CEO, PureTech Health plc. Feng Zhang, Ph.D. Core Institute Member, Broad Institute of MIT and Harvard PROUDLY SPONSORED BY: Request your invitation: healthforum.wsj.com © 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6496 Steven J. Corwin, M.D. President and CEO, NewYork-Presbyterian Thomas McLellan, Ph.D. Co-Founder and Scientiic Director (19922015), Treatment Research Institute Deputy Director and Senior Scientist (20092011), White House Ofice of National Drug Control Policy Sarah E. Wakeman, M.D. Medical Director, Substance Use Disorders Initiative, Massachusetts General Hospital Assistant Professor of Medicine, Harvard Medical School . THE WALL STREET JOURNAL. B6 | Thursday, May 17, 2018 BUSINESS NEWS Downstream Flow Proﬁts from reﬁning divisions, long a laggard, have outpaced drilling... BP proﬁt before interest and taxes . $30 billion Exploration and production 25 Reﬁning and marketing 20 15 Oil Firms Tap Refining, Retailing Petrochemicals, gas stations offer growth, as swings in crude prices roil drilling Major oil companies are doubling down on gas stations, refineries and processing plants, betting on a once-unloved part of the energy business to shore up profits and expand their customer bases. BP PLC plans to open thousands of gas stations in new markets such as Mexico and India over the next three years. Exxon Mobil Corp. is investing heavily to expand its petrochemical operations, which make products like plastics and the basic ingredients for all sorts of household goods. In November, Royal Dutch Shell PLC started work on a massive petrochemical complex in Pennsylvania—its first big new plant in the U.S. since the 1960s. Companies are expected to add 7.7 million barrels a day of new refining capacity by 2023, according to the International Energy Agency. In petrochemicals, the agency estimates that over the next five years investment in the U.S. alone will add 13 million tons a year of new capacity to produce ethylene, the main component of plastic. American refining, in particular, is booming. Surging shale production has provided cheap and plentiful oil close to the country’s petrochemical heartland around the Gulf Coast. Fuel demand is expected to rise. All those dynamics helped drive Marathon Petroleum Corp.’s agreement to buy rival Andeavor last month for $23 billion, a deal that would create the country’s largest refiner. As smaller refiners consolidate, the world’s major oil companies are promising that investment in their so-called card issuers—American Express Co., Capital One Financial Corp., Citigroup Inc., Discover Financial Services and Synchrony Financial— generated a median return of 2.1% on their assets for common shareholders in the first quarter, up from 2% a year earlier but down from 2.6% two years ago, according to analysis by Autonomous Research. The recent peak was 3.7% in the second quarter of 2011, according to an industry analysis by Autonomous at the time. “The industry was at an unsustainable high…so coming down is expected,” David Nelms, Discover’s chief executive, said in an interview. The pickup in returns for most banks in the first quarter was primarily the result of tighter underwriting, which helped slow the rate of loanloss increases and the amount of money banks are setting aside for future losses. U.S. tax-law changes that lowered corporate tax rates also helped. Still, returns remain largely unchanged—and in some cases down—from about 2½ years ago when the Fed began raising rates. “Rising rates [are] a mixed blessing for the card issuers at this point,” said Brian Foran, analyst at Autonomous Research. Companies aren’t getting the full benefit of the higher rates because while interest charges on cards are rising, so are the interest rates card issuers are having to pay bank customers for their online deposit accounts. Some analysts predict that profitability will keep falling, though it remains significantly higher than many other banking products. Credit cards delivered a projected 3.8% return on assets to 14 large banks highly concentrated in the card business last year, compared with an overall 1.35% projected return for all commercial banks, according to payments consulting firm BY SARAH KENT 10 5 0 -5 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ...though margins have fallen as crude prices recovered Industrywide reﬁning margins, U.S. Gulf Coast $20 .per barrel 15 10 5 0 1Q 2017 2Q 3Q 4Q 1Q ’18 Sources: the company (proﬁt); International Energy Agency (reﬁning margins) THE WALL STREET JOURNAL. CARD Continued from page B1 Co. Credit cards became an appealing loan category for banks in the wake of the last recession. Card balances increased at an accelerating pace in recent years, reaching a 7% year-over-year growth rate early last year. Total balances exceeded $1.03 trillion in January, the highest on record, according to the Federal Reserve. But that coincided with an increase in loan losses from historically low levels, as banks set aside more money for future write-offs. They also tightened their underwriting standards, resulting in slowing growth. Card-balance growth in March was up 4.8% from a year earlier, compared with a 6.1% increase in March 2017 from the year-ago period. Five of the largest credit- The Marketplace NOTICE OF SALE BANKRUPTCIES !" # $%&' ()&&( * + ' , - + ( , &(&.&(/ ' */ 0 / $ 1/2 3 * 4/0' 3 04 (/& ( 04 (/& 04 (/& 04 (/& 5 ( - 4 , 4 ./ ' ( $ 1*2 & 4&6 /&' 0 & 0 ( 3 & & 0 & *6&6 ) 3 * & *.0 &( 0 /&( 3 (& ' 0/ 3 */& ( 3 ( 0 3 & ( & 7 ) &3) & */ ( ) & ) 04* 4/0'890) :/ 0' 3 3/ &0 3 3 7 ( !"#$ $ %& %'() $* +'' ,- ;& /*90 & 1:/ 3 &02 ( '/ ) 0) ' */& ) &3 &0 * ) &&6 (( /)* ( ) & (( & *(' 3 ) & , ( 3 *90&6 (&6 /< )& . ( & /( ' ' " = # ( &6 ( 3 /( ' %/ = # ( ' > = # & &+"&!2#6 3%- "0 & && &&" 3 "0 & &- 0) 0 %+ " &" &!0 0$ & & &+ 0$ & " & "&0+ 0%$ " &! 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E(, 2? )$ !! $< $,? ? :,<K : ?,'< ?:? = < $,? ? :E?: ? H, :': :> ?L @C ?' < ?'E ? ( ,'<:?? = < : E (D ?', @< A)::BC ? <? >< > ?( :( :; <: < : ,'<:?(; = < >( :'',( = (E?( :( ( >< : E> < ? ,( ?: = :( = ?,'< :??? @C E= <: :'< 'D': = < ?', ? :? : ;( ?, ?:(: < ==' <: ?,'< ?', <:? ( ( ;? ,( < ',? ' = +&& :? :( :( : ( ?? = ( E:( = < E?(? = ?: ' @C ?': :( =,? ;E :( >::( @< <:( :? C :( @EC ? ?,'< < :(? '((? ( '(('( >< :( ?,'< ?: :? < $,? ? ('??: :E?: BUSINESS OPPORTUNITIES and profits. Oil companies’ “upstream,” or oil exploration and development, meanwhile, was suffering from lower prices. “Upstream at some point was not making money,” said Tufan Erginbilgic, head of BP’s refining and retail arm. That Mercator Advisory Group Inc. Mercator projects that card returns will fall in 2018 to 3.5% due to losses and challenges cutting further costs. Stocks of card companies have reflected the concern, with Discover shares up 0.7% this year, and Synchrony Financial, the largest U.S. store credit-card issuer by purchase volume, down 10%, compared with a 4% gain in the KBW Nasdaq Bank Index. Credit-card losses have been mostly rising over the past two years after hovering around near-record lows. The average net charge-off rate— the share of outstanding debt that issuers wrote off as a loss—for eight of the largest credit-card issuers reached a nearly five-year high of 3.46% in the first quarter, according to Fitch Ratings. The increases have become worrisome indicators for some shareholders of consumers’ inability to pay debts at a time when unemployment is low. BY AISHA AL-MUSLIM To advertise: 800-366-3975 or WSJ.com/classiﬁeds !!"#" $%$ && '( ( " %)*+ $ % , -.! ) . , " &+ %$ " , &&& ) % , "! &!+)/" 0" % , !" &!++" "$) %! , &1 )2 ! % , &+&" &3 )2 ") %! , & !/ )2 40 , & +"-4 %$ & , &! &"+)% -0$ %& , " &&/4! -.) " % , &&/ -.) " %" , && &!-1 3% , &! 3% #& , " ""5#" %$ " %" , &! "&$ % &.) % , &+& "+*#+ %% "2%) " , &"6. .)0$ &" , & !"$+ )0$ " , " &&" 7 " , !!"& $%$ 03 , &" ! " #$ "3%*& 0 0! % "31+ 0 "0 % & " 0 0" % "+ 0 ) 0 ! " / ) 0& % ! 4 ) "0 !+ 6! ) & % ! ! 44 ) )2 % " + 4 ) )2 % & &" % % "" &!! % "& % /2 2! %+ & & &!+02 0! % ! &!+ "0 % " " !%&3! ) %& !%5 ) % % !&1+ )2$ " % "+ ! .& )2 ) + &-! )2 40 %& +0" )2 40 % & &!4 )2 % +! +"-) %$ ! & +"-)8+ %$ " & & &.%" --% "-- +"& " & --% -- % " &"33 -0 - " &"30 -0 - " " ! &"+-& -0$ ) %! + + &"+ -0$ ") "" & &&/) -.) "& % ! & &+"&!2#*+ 3%- "0 !&+ BP says it is on track to open 500 retail sites in Mexico by the end of the year. TRAVEL Save Up To 60% 21st Century Fox has named the new leaders of what would continue as an independent Fox enterprise if its pending deal to sell much of the company to Walt Disney Co. closes. Lachlan Murdoch will serve as chairman and chief executive of the so-called New Fox, while Rupert Murdoch will serve as co-chairman, 21st Century Fox said Wednesday. Its finance chief, John Nallen, would take a broader role as the company’s chief operating officer. The Wall Street Journal last week had reported the expected roles for Lachlan Murdoch and Mr. Nallen, citing people familiar with the matter. It also reported that 21st Century Fox Chief Executive James Murdoch, Lachlan’s younger brother, is planning to strike out on his own if the Disney deal closes, most likely by starting a venture-capital fund to invest in digital and interna- !" # $ %!& ' ( # ) *+, %( -. EARN 11% up to INVESTING IN 1st MORTGAGES Short Term, High Yield, Low LTV. Secure & Great Monthly Income. Call 800-359-1111 Proﬁt Push Return on assets at large card issuers* 4% 3 1Q 2.1% 2 1 0 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Average net charge-off rate, large card issuers† 10% 8 6 Highest since 2Q 2013 1Q 3.5% 4 2 0 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 *Based on median returns for common shareholders †Includes American Express, Bank of America, Capital One, Citigroup, Discover, JPMorgan Chase, U.S. Bancorp and Wells Fargo Sources: Autonomous Research (return); Fitch Ratings (charge off) THE WALL STREET JOURNAL. www.cooktravel.net (800) 435-8776 THE MARKETPLACE (800) 366-3975 For more information visit: wsj.com/classifieds © 2018 Dow Jones & Company, Inc. All Rights Reserved. tional media businesses. In December, Disney said it agreed to purchase the bulk of Fox for $52.4 billion, marking the possible end of an era for Executive Chairman Rupert Murdoch and his family, which have a 39% voting interest in Fox. Lachlan Murdoch currently serves as executive co-chairman of 21st Century Fox and executive co-chairman of News Corp. 21st Century Fox and Journal parent News Corp share common ownership. The all-stock Disney deal involves the sale of the Twentieth Century Fox TV and film studio, cable networks such as FX and National Geographic, international businesses including Fox’s 39% stake in European pay-television company Sky PLC, and a stake in the streaming business Hulu. Fox said in December that it expected the deal would take 12 to 18 months to close. Meanwhile, cable giant Comcast Corp. is making prep- arations to potentially pursue a hostile, all-cash bid for the same assets, people familiar with the matter say. Before the Disney deal was reached, Comcast had submitted an offer for the Fox assets that was 16% higher than Disney’s, but Fox turned it down partly over fears that it wouldn’t pass muster with antitrust regulators, according to a regulatory filing last month and people familiar with the situation. The new Fox would feature such assets as Fox News Channel, Fox Business Network, Fox Broadcasting Co., Fox Sports, Fox Television Stations Group and sports cable networks FS1, FS2, Fox Deportes and Big Ten Network. “The new Fox will begin as the only media company solely focused on the domestic market; focused on what Americans love best—sports, news and entertainment, built and delivered for a U.S. audience,” Rupert Murdoch said Wednesday in prepared remarks. May 16, 2018 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Inflation April index Chg From (%) level March '18 April '17 U.S. consumer price index 250.546 257.025 All items Core 0.40 0.16 2.5 2.1 International rates INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! ADVERTISE TODAY www.earn11.com ising new growth. They offer access to emerging markets, where demand for fuel is expected to be especially robust. BP says it is on track to open 500 retail sites in Mexico by the end of the year, up from zero at the start of 2017. A geographically wide network of branded retail outlets also could create new opportunities where the industry now sees threats—such as electric charging stations. Last year, Shell bought one of Europe’s biggest electric-vehicle charging companies, New Motion. It has teamed up with a group of car manufacturers to install more than 500 fastcharging points at existing Shell stations, across 10 countries in Europe over the next two years. The rise of electric vehicles is “a reality, and an opportunity,” Shell’s downstream director, John Abbott, told analysts in March. “We are adjusting our offer to meet this new demand.” Borrowing Benchmarks | WSJ.com/bonds Money Rates First & Business gave his unit a fresh imperative to “really significantly contribute to group performance, because we have to.” Today, higher crude prices pose a risk that margins from refining won’t be as strong as they have in recent years. And all the new investment in capacity could end up swamping the market, analysts warned. “It remains to be seen the way demand is going to shape up,” said Jonathan Leitch, research director at Edinburghbased consultancy Wood Mackenzie. Investor pressure also has mounted on the major oil companies to start positioning for an age when fossil fuels may no longer power the world’s fleet of passenger cars. Executives are betting their big petrochemical plants can offer diversification. According to the IEA, petrochemical production is expected to be the biggest driver of oil demand growth in the coming decades. Gas stations, too, are prom- Fox Sets Leaders After Sale ADVERTISEMENT & " ! + & " ! + & downstream businesses—and restructuring efforts they are simultaneously pursuing to improve efficiency—will add billions of dollars to earnings. The downstream focus sharpened amid a period of lower oil prices and concerns over long-term oil demand. Cheaper crude—the primary feedstock for refining—boosted margins Latest Week ago Treasury bill auction 1.655 1.660 1.720 0.695 1.890 1.840 1.890 0.905 2.035 2.000 2.035 1.020 4 weeks 13 weeks 26 weeks Secondary market Fannie Mae 52-Week High Low Prime rates U.S. Canada Japan 30-year mortgage yields 30 days 60 days 4.75 4.75 4.75 4.00 3.45 3.45 3.45 2.70 1.475 1.475 1.475 1.475 Latest 0.00 0.50 0.50 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 1.84 U.S. 1.78 2.18 0.76 Discount 2.25 2.25 2.25 1.50 1.7300 1.9500 1.6800 1.6800 1.7200 1.7300 1.9500 1.7100 1.7200 1.7400 0.8600 1.0625 0.7500 0.8200 0.8300 Federal funds Effective rate High Low Bid Offer 1.7300 1.9500 1.6900 1.6800 1.7200 —52-WEEK— High Low 2.49438 2.51813 2.52375 1.39906 2.76148 2.77094 2.78031 1.69511 Six month One year Euro Libor -0.398 -0.352 -0.313 -0.233 One month Three month Six month One year -0.401 -0.353 -0.317 -0.243 -0.397 -0.351 -0.274 -0.144 -0.420 -0.389 -0.339 -0.263 -0.371 -0.326 -0.272 -0.188 One month Three month Six month One year 52-Week high low Latest -0.371 -0.327 -0.269 -0.189 Value Traded -0.366 -0.325 -0.250 -0.129 -0.374 -0.332 -0.279 -0.194 52-Week High Low DTCC GCF Repo Index 3.50 3.50 3.50 2.75 Treasury MBS 2.17 2.19 2.31 1.04 Libor 1.93500 1.92851 1.93875 1.00356 2.32563 2.35575 2.36906 1.17172 1.789 1.803 34.040 2.068 0.791 96.810 1.971 0.794 Open Implied Settle Change Interest Rate Commercial paper (AA financial) One month Three month U.S. government rates Week ago Call money 90 days Overnight repurchase Week Latest ago Euro interbank offered rate (Euribor) 4.288 4.244 4.288 3.253 4.317 4.273 4.317 3.281 Other short-term rates Policy Rates Euro zone Switzerland Britain Australia —52-WEEK— High Low DTCC GCF Repo Index Futures Treasury May Treasury Jun Treasury Jly 98.208 -0.005 1163 1.793 98.040 unch. 732 1.960 97.925 unch. 464 2.075 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 March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective March 22, 2018. 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; Tullett Prebon Information, Ltd. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | B7 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 24768.93 s 62.52, or 0.25% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 24.32 20.06 P/E estimate * 16.41 17.72 Dividend yield 2.17 2.39 All-time high 26616.71, 01/26/18 Nasdaq Composite Index Last 2722.46 s 11.01, or 0.41% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio * 24.28 23.83 P/E estimate * 17.05 18.45 Dividend yield 1.91 1.97 All-time high 2872.87, 01/26/18 Last Year ago 7398.30 s 46.67, or 0.63% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 24.99 26.09 P/E estimate * 20.25 21.02 Dividend yield 1.01 1.10 All-time high: 7588.32, 03/12/18 Session high Current divisor 0.14523396877348 t DOWN Session open t Close 2800 7500 26000 2750 7300 25200 2700 7100 24400 2650 6900 UP Close 26800 Open 65-day moving average Session low 65-day moving average 65-day moving average 23600 2600 22800 2550 22000 2500 6700 6500 Bars measure the point change from session's open Feb. Mar. Apr. Feb. May Mar. Apr. 6300 Feb. May Mar. Apr. May *Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes Late Trading Trading Diary Volume, Advancers, Decliners 24801.19 24672.79 24768.93 62.52 0.25 26616.71 20606.93 20.2 0.2 35.6 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 50,000 shares. Transportation Avg 10760.70 10610.64 10702.54 86.87 0.82 11373.38 8783.74 21.8 0.9 23.3 Most-active issues in late trading 774.47 647.90 -3.5 -6.8 15.1 29630.47 24391.29 757.37 624.99 15.9 18.2 2.2 3.9 8.4 8.7 High Latest Close Low Net chg % chg High 52-Week Low % chg % chg 3-yr. ann. YTD Dow Jones Industrial Average 680.65 Utility Average Total Stock Market Barron's 400 671.65 -6.12 -0.90 0.46 28339.54 28161.18 28280.10 129.84 740.53 732.31 7.38 738.50 Nasdaq Stock Market Nasdaq Composite 7413.32 Nasdaq 100 6944.54 S&P 500 Index 674.05 7356.16 6891.65 2727.76 7398.30 6929.97 2712.17 1.01 0.63 46.67 41.43 2722.46 11.01 0.60 7588.32 7131.12 0.41 2872.87 MidCap 400 SmallCap 600 1949.96 997.80 1932.00 984.43 1943.81 994.09 13.14 11.66 0.68 1.19 1995.23 994.09 Other Indexes Russell 2000 1620.64 1601.03 1616.37 16.03 1.00 1616.37 6011.24 5580.55 2357.03 7.2 8.3 23.1 24.2 13.6 15.5 15.5 1.8 1691.67 817.25 14.8 20.9 2.3 6.2 8.3 11.6 1355.89 19.2 5.3 9.1 39.17 0.31 11.6 -0.5 4.3 561.16 565.64 4.48 0.80 589.69 503.24 11.0 0.6 3.2 NYSE Arca Biotech 4707.10 4661.11 4695.68 28.35 0.61 4939.86 3507.64 30.8 11.2 5.1 NYSE Arca Pharma 533.62 530.68 532.02 2.38 KBW Bank 111.40 110.44 -0.08 PHLX§ Gold/Silver 110.92 82.33 81.64 0.16 PHLX§ Oil Service 81.93 167.23 164.49 166.72 2.20 1372.03 14.91 1355.65 13.21 1370.10 13.42 PHLX§ Semiconductor Cboe Volatility 12764.55 12706.74 12743.80 Close Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan Thailand SPY 9,171.5 272.19 -0.05 -0.02 272.40 271.50 Cisco Systems CSCO 4,289.3 43.50 -1.66 -3.68 45.41 43.04 Principal Invt Grd Corp IG 4,000.0 24.62 -0.18 -0.73 24.62 24.62 iShares Russell 2000 ETF IWM 2,286.4 161.03 0.11 0.07 161.05 160.65 CIEN 2,102.4 25.38 … unch. 25.38 25.36 Vipshop Holdings ADR VIPS 2,080.0 12.68 0.02 0.16 12.70 12.56 Wells Fargo WFC 1,732.1 55.04 … unch. 55.07 53.56 General Electric GE 1,517.8 15.06 0.03 0.20 15.08 15.00 153.0 165.02 25.52 Percentage gainers… LOXO Loxo Oncology Inovalon Holdings Cl A INOV 18.29 165.95 139.49 60.2 10.20 0.30 3.03 10.20 9.85 20.10 0.59 3.02 20.80 19.09 Immunomedics IMMU 68.2 Extreme Networks EXTR 111.6 9.00 0.25 2.86 9.05 8.68 Enbridge ENB 135.2 33.19 0.49 1.50 33.24 32.44 3.0 -2.4 -3.3 ...And losers 88.87 24.8 3.9 13.9 Jounce Therapeutics JNCE 134.3 12.75 -4.92 -27.84 18.05 12.28 93.26 76.42 -5.3 -3.9 2.9 Acxiom ACXM 64.1 25.07 -2.49 -9.03 27.70 24.25 1.34 166.72 117.79 13.5 11.5 -8.8 Cisco Systems CSCO 4,289.3 43.50 -1.66 -3.68 45.41 43.04 1.41 1445.90 37.32 1020.51 33.0 9.14 -13.9 9.3 21.6 24.5 2.7 Jack in the Box JACK 62.2 88.22 -3.15 -3.45 92.30 86.01 Flowers Foods FLO 104.8 21.20 -0.42 -1.94 22.02 20.00 Net chg 4.67 0.84 –0.03 DJ Americas 653.04 Sao Paulo Bovespa 86536.97 S&P/TSX Comp 16108.06 S&P/BMV IPC 46419.77 Santiago IPSA 4262.52 3.06 1406.55 10.25 160.81 11.98 Stoxx Europe 600 Euro Stoxx Bel-20 OMX Copenhagen CAC 40 DAX Tel Aviv FTSE MIB AEX RTS Index FTSE/JSE All-Share IBEX 35 OMX Stockholm Swiss Market BIST 100 FTSE 100 FTSE 250 393.21 394.52 3857.69 916.67 5567.54 12996.33 1502.42 23734.22 565.13 1189.77 58621.77 10111.00 585.88 8973.88 102157.88 7734.20 20828.79 S&P/ASX 200 6107.00 Shanghai Composite 3169.57 Hang Seng 31110.20 S&P BSE Sensex 35387.88 Nikkei Stock Avg 22717.23 Straits Times 3533.05 Kospi 2459.82 TAIEX 10897.57 SET 1750.62 Latest % chg 0.15 0.21 0.2 0.8 –0.3 0.47 1.65 0.06 0.35 0.28 1.7 13.3 –0.6 –5.9 1.2 –0.01 0.84 –0.17 –0.68 –0.49 –18.88 2.00 14.38 26.29 10.57 –562.95 –2.32 0.64 11.01 730.00 –96.60 –0.95 –0.15 –0.90 –0.23 –20.34 617.49 11.22 43.87 9.20 –22.55 –41.83 –156.06 –100.79 –7.18 1.28 22.84 –16.24 YTD % chg 0.21 0.22 0.26 0.20 0.71 0.11 0.93 1.26 0.61 0.15 0.21 0.15 –0.71 –0.13 –0.44 –0.44 –0.20 0.05 0.21 –0.92 1.0 2.3 –3.0 –1.1 4.8 0.6 –0.5 8.6 3.8 3.1 –1.5 0.7 3.0 –4.3 –11.4 0.6 0.5 0.7 –4.2 4.0 3.9 –0.2 3.8 –0.3 2.4 –0.2 Sources: SIX Financial Information; WSJ Market Data Group Company Symbol Blink Charging Eleven Biotherapeutics 21Vianet Group ADR Carver Bancorp Check-Cap BLNK HUYA ADR CompX IntlA Abaxis Bilibili ADR Pain Therapeutics HUYA Gemphire Therapeutics Flanigan's Enterp Phoenix New Media ADR Daqo New Energy ADR Sea ADR GEMP BDL FENG DQ SE -18.1 116.4 30.4 3.9 -79.5 Purple Innovation Evolus Netshoes (Cayman) Cemtrex Red Violet PRPL 22.50 3.50 15.55 2.40 83.34 11.59 14.11 1.95 10.62 1.44 18.42 18.25 16.15 16.04 15.69 22.75 12.00 16.63 12.30 83.78 43.66 14.35 9.62 12.80 3.10 ... 10.7 77.2 ... 144.7 Omeros Corp ENDRA Life Sciences Social Reality Cl A Verastem BSQUARE OMER 6.33 27.25 5.55 67.27 11.98 14.05 14.02 13.96 13.88 12.59 21.59 4.75 30.95 20.20 8.14 2.43 72.50 19.00 16.99 10.06 -40.8 9.0 74.5 201.4 ... Tyme Technologies BIO-key International Euro Tech Holdings resTORbio NII Holdings TYME 0.78 3.35 0.68 8.20 1.34 Most Active Stocks Neovasc Advanced Micro Devices iShares MSCI Emg Markets Micron Technology Macy's NVCN General Electric SPDR S&P 500 Chesapeake Energy Bank of America JC Penney GE 167,115 72,357 58,736 57,288 52,467 AMD EEM MU M 99.8 27.7 -13.4 7.7 438.1 49,774 44,693 43,794 42,152 40,547 SPY CHK BAC JCP U.S. consumer rates Selected rates A consumer rate against its benchmark over the past year Money market accounts t 0.80 -31.4 15.03 2.18 -55.3 272.24 0.42 27.4 3.93 5.93 -39.0 31.06 -0.51 149.2 3.07 5.50 0.40 t 0.00 J J A S O ND J FMAM 2017 2018 MyeBanc,ADivisionofBACFloridaBank 1.50% Coral Gables, FL 855-512-0989 Radius Bank Boston, MA 1.50% 800-242-0272 American Express National Bank 1.55% New York, NY 866-215-8754 Yield/Rate (%) Last (l)Week ago Federal-funds rate target 1.50-1.75 1.50-1.75 Prime rate* 4.75 4.75 Libor, 3-month 2.36 2.33 Money market, annual yield 0.44 0.45 Five-year CD, annual yield 1.68 1.69 30-year mortgage, fixed† 4.63 4.65 15-year mortgage, fixed† 4.11 4.12 Jumbo mortgages, $424,100-plus† 4.91 4.83 Five-year adj mortgage (ARM)† 4.78 4.53 New-car loan, 48-month 4.25 4.28 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.75 l l 4.00 l 1.17 0.25 l l 1.31 l 3.73 l 2.99 l 4.21 l 3.22 l 2.85 1.50 4.75 2.37 0.45 1.69 4.65 4.12 4.96 4.78 4.28 1.50 1.50 2.05 0.11 0.25 0.70 0.99 0.65 1.56 1.34 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 One year ago 1 3 6 month(s) 1 2 3 5 710 years maturity * 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. NIHD 2.25 5 1.50 0 0.75 –5 0.00 –10 30 High 52-Week Low % chg 6.83 10.70 2.14 2.05 7.80 -3.11 -3.95 -0.73 -0.60 -2.14 -31.29 -26.96 -25.44 -22.64 -21.53 13.90 17.50 26.96 4.55 46.40 6.76 6.75 2.00 1.90 4.35 -31.4 ... -88.7 -48.0 ... 20.01 2.15 3.91 4.61 3.35 -4.43 -0.31 -0.55 -0.63 -0.45 -18.13 -12.45 -12.33 -12.02 -11.84 27.09 5.88 7.95 5.71 5.84 8.36 2.05 1.11 1.92 2.90 23.1 ... 141.4 105.8 -30.2 3.02 2.07 4.00 10.14 2.47 -0.40 -0.27 -0.50 -1.27 -0.30 -11.70 -11.37 -11.11 -11.10 -10.83 9.50 3.67 8.45 21.10 3.35 2.01 1.20 2.00 7.55 0.22 -8.5 -27.5 27.0 ... 374.9 Ranked by change from 65-day average* SYLD GSEU FARM GTXI BOOT GEMP NESR PIO Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 4,229 259 150 1,491 1,798 2767 2082 2067 1860 1680 83.34 38.90 32.22 25.95 18.43 16.15 0.55 -0.30 7.90 10.69 83.78 41.00 33.94 35.05 23.40 43.66 33.17 29.45 23.60 2.73 2,561 7,419 1,412 1,380 131 1496 1427 1379 1273 1272 10.70 -26.96 24.52 11.66 6.33 14.05 10.07 0.10 25.87 0.43 17.50 26.25 21.59 10.70 ... 6.75 5.90 4.75 9.39 ... Currencies U.S.-dollar foreign-exchange rates in late New York trading 15% 10 Latest Session Close Net chg % chg CURRENCIES & COMMODITIES Euro US$vs, YTDchg Wed in US$ per US$ (%) Yen Vietnam dong Argentina peso .0412 24.2702 30.5 Brazil real .2722 3.6737 10.9 Canada dollar .7818 1.2791 1.7 Chile peso .001585 630.80 2.5 Ecuador US dollar 1 1 unch Mexico peso .0511 19.5730 –0.5 Uruguay peso .03271 30.5700 6.1 Venezuela b. fuerte .00001469912.5251 675915.7 Europe WSJ Dollar index 2017 2018 52-Week High Low Total Return (%) 52-wk 3-yr 1414.434 2.941 2.861 2.941 10-yr Treasury, Ryan ALM 1644.301 DJ Corporate n.a. Aggregate, Barclays Capital 1887.780 High Yield 100, Merrill Lynch 2853.604 Fixed-Rate MBS, Barclays 1941.530 Muni Master, Merrill 516.516 3.093 n.a. 3.420 6.040 3.550 2.590 3.004 3.934 3.350 6.027 3.490 2.555 3.093 n.a. 3.420 6.319 3.550 2.653 1.818 –2.767 2.058 –5.359 n.a. n.a. 2.380 –1.052 4.948 2.139 2.660 –1.056 1.736 0.623 771.369 6.504 6.601 6.601 5.279 –1.578 3.858 0.211 –0.837 n.a. 0.965 3.327 0.757 2.192 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7515 1.3307 China yuan .1569 6.3715 Hong Kong dollar .1274 7.8500 India rupee .01475 67.775 Indonesia rupiah .0000710 14093 Japan yen .009058 110.40 Kazakhstan tenge .003038 329.19 Macau pataca .1236 8.0888 Malaysia ringgit .2520 3.9675 New Zealand dollar .6897 1.4499 Pakistan rupee .00865 115.626 Philippines peso .0192 52.144 Singapore dollar .7463 1.3400 South Korea won .0009279 1077.73 Sri Lanka rupee .0063227 158.16 Taiwan dollar .03350 29.852 Thailand baht .03121 32.040 Commodities 3.9 –2.0 0.5 6.1 4.5 –2.0 –1.0 0.5 –2.3 2.8 4.5 4.4 0.2 1.0 3.0 0.6 –1.7 US$vs, YTDchg Wed in US$ per US$ (%) Country/currency Americas Asia-Pacific Yield (%) Last Week ago EMBI Global, J.P. Morgan NYSE Arca * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days Corporate Borrowing Rates and Yields Treasury, Ryan ALM TORC EOLS Yen, euro vs. dollar; dollar vs. major U.S. trading partners 3.00 Close CLWT Evolus Boot Barn Holdings Gemphire Therapeutics Natl Energy Svcs Reunited PwrShrs Glbl Water Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Bond total return index BKYI 29.47 12.73 286.63 235.43 5.87 2.53 33.05 22.07 5.63 2.35 s Money market account yields 1.50% 866-242-1924 t 1.20 EverBank Jacksonville, FL BSQR ABAX s Federal-funds target rate VSTM Abaxis Cambria Shareholder Yield GS ActiveBeta Europe Farmer Bros. GTx Forex Race 3.75% t SRAX 0.03 9.04 39.82 26.85 17.41 Country/currency Wednesday NDRA 1.89 15.65 52.08 63.42 33.40 0.03 -7.04 12.82 2.97 47.18 1.51 56.50 4.61 33.17 10.83 s 1.60% 1.50% 888-720-8756 RDVT Symbol Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets notes and bonds Barclays Wilmington, DE CETX Company Track the Markets 0.45% Bankrate.com avg†: NETS 52-Week High Low * Volumes of 100,000 shares or more are rounded to the nearest thousand Benchmark Yields Treasury yield curve and Yield toRates maturity of current bills, Consumer Rates and Returns to Investor EOLS Volume Movers Volume % chg from Latest Session Symbol (000) 65-day avg Close % chg Company Symbol 1.28 0.62 4.17 2.01 3.12 CHEK PTIE Company 33.70 3.50 9.59 7.95 25.08 CARV BILI High 31.68 24.15 24.00 20.92 20.25 VNET ABAX 52-Week Low % chg 1.73 0.64 1.32 0.64 0.82 7.19 3.29 6.82 3.70 4.87 EBIO CIX Nasdaq Total volume*2,047,800,539 189,967,225 Adv. volume*1,340,320,427 147,283,075 Decl. volume* 681,183,539 42,296,011 Issues traded 2,984 1,318 Advances 1,858 956 Declines 972 339 Unchanged 154 23 New highs 146 55 New lows 67 66 Closing tick 572 26 Closing Arms† 0.97 0.95 Block trades* 10,887 1,122 Percentage Losers Latest Session Close Net chg % chg CREDIT MARKETS Interest rate Low SPDR S&P 500 Percentage Gainers... 3093.87 400.53 265.90 The Global Dow DJ Global Index DJ Global ex U.S. EMEA Eurozone Belgium Denmark France Germany Israel Italy Netherlands Russia South Africa Spain Sweden Switzerland Turkey U.K. U.K. After Hours % chg High Sources: SIX Financial Information; WSJ Market Data Group Region/Country Index Americas Brazil Canada Mexico Chile Net chg 514.66 International Stock Indexes World Last 593.12 0.20 Nasdaq PHLX Volume (000) 116.52 0.45 -0.07 19.00 -1.21 -8.27 13637.02 11423.53 Symbol Ciena 8.6 567.00 NYSE Composite Value Line Company NYSE NYSE Amer. Total volume* 744,468,541 9,625,917 Adv. volume* 498,315,610 5,850,338 Decl. volume* 237,526,745 3,670,440 Issues traded 3,068 328 Advances 1,924 170 Declines 1,030 147 Unchanged 114 11 New highs 125 2 New lows 54 10 Closing tick 328 6 Closing Arms† 0.82 0.81 Block trades* 6,503 166 .00004391 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 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6503 .3773 0.1 .0559 17.8760 0.6 .2787 3.5887 3.1 3.3099 .3021 0.2 2.5970 .3851 0.03 .2746 3.642 –0.2 .2666 3.7505 ... .0804 12.4380 0.6 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.87 –0.05–0.05 -0.05 203.76 71.49 2.815 1290.20 0.31 0.18 -0.021 1.30 1.04 Sources: Tullett Prebon, WSJ Market Data Group Wednesday 656.77 0.3 .04627 21.612 1.6 .1585 6.3076 1.7 1.1807 .8470 1.7 .003737 267.62 3.3 .009583 104.35 0.8 .1238 8.0789 –1.6 .2764 3.6176 4.0 .01620 61.714 7.0 .1149 8.7052 6.3 .9988 1.0012 2.8 .2265 4.4141 16.3 .0381 26.2405 –6.8 1.3490 .7413 0.2 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity 22773 -0.01 % Chg YTD % chg 659.25 532.01 16.90 5.02 0.15 204.52 71.49 0.25 3.63 -0.74 0.10 1362.40 166.50 42.53 2.55 1208.60 11.20 45.69 -11.81 2.60 5.10 18.32 -4.67 -1.23 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 . THE WALL STREET JOURNAL. B8 | Thursday, May 17, 2018 COMMODITIES Futures Contracts Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. May 3.0350 3.0605 3.0350 3.0585 0.0160 July 3.0605 3.0800 3.0440 3.0705 0.0145 Gold (CMX)-100 troy oz.; $ per troy oz. May 1290.90 1294.00 t 1285.40 1290.20 1.30 June 1290.10 1296.40 t 1285.70 1291.50 1.20 Aug 1295.50 1302.30 t 1291.80 1297.40 1.20 Oct 1304.20 1308.20 t 1297.90 1303.70 1.20 Dec 1308.20 1314.80 t 1304.50 1310.20 1.30 Feb'19 1311.80 1315.70 t 1311.80 1316.70 1.50 Palladium (NYM) - 50 troy oz.; $ per troy oz. June 976.80 984.30 972.60 982.50 –0.70 Sept 973.50 981.00 970.50 979.40 –0.70 Platinum (NYM)-50 troy oz.; $ per troy oz. June 890.80 890.80 t 890.70 888.60 –7.30 July 897.50 900.90 t 888.10 889.80 –7.40 Silver (CMX)-5,000 troy oz.; $ per troy oz. 16.240 16.390 16.155 16.331 0.106 June July 16.285 16.435 16.190 16.371 0.102 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 71.00 71.59 70.66 71.49 0.18 June July 71.06 71.67 70.75 71.56 0.19 Aug 70.80 71.45 70.56 71.35 0.20 Sept 70.34 71.02 70.15 70.93 0.21 Dec 69.05 69.65 68.88 69.56 0.22 Dec'19 62.71 63.19 62.66 63.13 0.15 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 2.2405 2.2712 2.2312 2.2692 .0202 June July 2.2347 2.2652 s 2.2258 2.2630 .0199 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 2.2005 2.2525 s 2.1939 2.2499 .0451 June July 2.2000 2.2474 s 2.1933 2.2455 .0410 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 2.829 2.844 2.809 2.815 –.021 June July 2.845 2.862 2.830 2.837 –.017 Sept 2.836 2.848 2.821 2.832 –.012 Oct 2.841 2.855 2.828 2.837 –.013 Jan'19 3.058 3.073 3.048 3.059 –.009 March 2.905 2.922 2.902 2.914 –.004 Open interest 1,309 137,817 11.38 11.72 11.61 11.89 .09 487,691 .04 257,099 July Sept 24.65 25.20 24.65 25.20 24.60 25.20 24.60 25.24 … .04 July Dec 83.88 80.10 85.39 81.38 83.63 79.98 84.35 80.69 .59 130,975 .58 118,815 July Sept 169.55 169.80 168.15 168.40 170.05 169.85 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. June Sept 141-090 141-190 140-160 140-240 140-260 140-000 140-300 140-030 –4.0 854,984 –4.0 20,253 June Sept 118-215 118-255 118-095 118-135 118-140 118-020 118-175 118-050 –2.0 3,698,262 –2.0 164,259 June Sept 112-305 113-007 112-205 112-225 112-265 112-165 112-280 112-177 –1.0 3,540,835 –1.0 304,503 June Sept 105-282 105-287 105-212 105-217 105-267 105-197 105-272 105-202 –.5 2,079,581 –.5 150,694 98.298 98.298 … 214,474 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.298 98.055 May July 98,371 135,628 137,462 272,231 147,629 141,836 104,499 93,662 Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ June Sept .9088 .9140 June Dec .7771 .7815 4,319 1,017 June Sept 1.3523 1.3578 999.75 –19.00 415,891 1009.00 –15.75 242,811 June Sept 1.0019 1.0094 June July Aug Sept Dec .7473 .7500 .7560 .7476 .7524 June Sept .05049 .04959 June Sept 1.1867 1.1951 243.00 258.75 238.50 253.75 241.25 256.75 July Nov 1017.75 1024.00 1018.50 1024.75 998.75 1008.25 July Dec 383.00 374.40 383.10 374.90 376.40 369.40 376.60 369.60 –5.70 234,050 –4.80 103,974 July Dec 31.05 31.79 31.09 31.81 30.55 31.34 30.59 31.39 –.53 256,792 –.45 99,264 Soybeans (CBT)-5,000 bu.; cents per bu. Soybean Meal (CBT)-100 tons; $ per ton. Soybean Oil (CBT)-60,000 lbs.; cents per lb. Rough Rice (CBT)-2,000 cwt.; $ per cwt. July Sept 1250.00 1199.50 1263.00 1200.00 1249.00 1192.00 1255.00 1197.00 July Dec 493.75 531.75 498.75 535.75 491.00 528.75 494.25 531.75 Wheat (CBT)-5,000 bu.; cents per bu. Wheat (KC)-5,000 bu.; cents per bu. –3.00 807,576 –2.25 490,933 1.00 … 6.50 5.00 516.25 561.00 508.50 553.00 514.00 558.25 4.25 134,097 3.50 53,700 July Sept 606.25 613.25 612.75 620.25 605.50 613.25 611.25 617.75 5.00 4.50 30,875 11,653 May Aug 133.500 138.100 134.550 138.900 132.650 136.550 132.725 –.825 136.725 –1.725 3,449 26,079 Wheat (MPLS)-5,000 bu.; cents per bu. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Cattle-Live (CME)-40,000 lbs.; cents per lb. 101.650 98.875 Hogs-Lean (CME)-40,000 lbs.; cents per lb. .0008 160,369 .0009 1,916 .7825 .7853 .0049 120,450 .0050 4,000 June Sept 2708.90 ... June Sept 2711.25 2715.75 1933.30 July Sept 629.00 614.60 629.00 s 614.60 s 626.80 614.60 629.00 614.60 10.00 10.00 5,240 941 June Sept 6895.5 6912.5 May June 15.30 16.12 15.30 16.14 s 15.21 15.92 15.25 16.02 … –.10 3,875 3,827 June 1600.30 June 1502.30 .7517 .7518 .7520 .7523 .7531 .0046 170,863 .0046 617 .0046 170 .0046 1,415 .0046 421 1.1882 1.1965 t t .05020 .04948 .05071 .00026 181,700 .04997 .00025 1,654 1.1790 1.1877 1.1828 –.0048 489,179 1.1912 –.0048 7,288 24778 24788 24614 24363 24740 24755 2727.00 2730.20 2704.40 ... 2728.00 2732.00 2704.50 2708.75 1951.10 1929.10 Mini Nasdaq 100 (CME)-$20 x index 6953.5 6976.5 6875.5 6901.8 Mini Russell 2000 (ICE-US)-$100 x index 1622.80 s 1600.30 1503.40 1498.50 Mini Russell 1000 (ICE-US)-$100 x index 56 130,456 53 54,686 113.25 117.30 .0010 103,442 .0011 194 80 81 99,229 2,572 2722.90 2727.40 13.90 14.20 82,609 16,962 2723.00 2727.50 14.00 2,903,781 14.25 102,396 1944.60 13.40 Mini S&P Midcap 400 (CME)-$100 x index June 112.45 116.85 .05085 .05011 Mini S&P 500 (CME)-$50 x index 53,566 65,329 Coffee (ICE-US)-37,500 lbs.; cents per lb. 1.0014 1.0095 .7448 .7456 .7538 .7457 .7524 S&P 500 Index (CME)-$250 x index 1.175 1.025 2,730 2,755 1.0007 1.0090 .7524 .7520 .7567 .7526 .7524 24676 24677 June Sept 75.900 78.725 2,629 2,657 1.0042 1.0122 1.3504 –.0023 184,674 1.3564 –.0023 3,416 Index Futures 74.750 77.450 2,740 2,764 1.3475 1.3539 Mini DJ Industrial Average (CBT)-$5 x index 76.025 78.875 Cocoa (ICE-US)-10 metric tons; $ per ton. 1.3540 1.3594 Euro (CME)-€125,000; $ per € 75.075 78.000 Milk (CME)-200,000 lbs., cents per lb. .7770 .7803 Mexican Peso (CME)-MXN 500,000; $ per MXN June July t .9088 .9147 Australian Dollar (CME)-AUD 100,000; $ per AUD 101.825 –1.150 74,047 99.050 –1.350 151,374 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. .7832 .7852 Swiss Franc (CME)-CHF 125,000; $ per CHF .75 234,758 .25 92,122 510.00 555.00 114.50 117.55 .9076 .9140 British Pound (CME)-£62,500; $ per £ 5,372 2,687 July Dec 114.50 117.05 .9106 .9163 Canadian Dollar (CME)-CAD 100,000; $ per CAD 240.50 258.00 May July 98.300 98.055 t 98.050 98.055 .005 306,081 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 92.297 92.328 t 91.906 92.031 –.125 29,343 June 1 Month Libor (CME)-$3,000,000; pts of 100% 97.8800 97.8900 97.8800 97.8875 .0050 3,402 June Eurodollar (CME)-$1,000,000; pts of 100% 97.7125 97.7175 97.6725 97.6825 –.0300 1,652,924 June Sept 97.5350 97.5450 97.5050 97.5150 –.0150 1,515,428 Dec 97.3400 97.3500 t 97.3050 97.3200 –.0100 2,031,815 Dec'19 96.9500 96.9650 t 96.9000 96.9150 –.0200 1,941,026 84,053 129,207 July Dec U.S. Dollar Index (ICE-US)-$1,000 x index 93.52 s 93.08 s 93.22 92.81 June Sept .35 1 .35 133,177 6937.3 6962.3 Crude oil and petroleum prod Crude oil excluding SPR Gasoline Finished gasoline Reformulated Conventional Blend. components Natural gas (bcf) Kerosene-type jet fuel Distillates Heating oil Diesel Residual fuel oil Other oils 1,185,519 ... 432,354 232,014 21,907 29 21,878 210,107 -400 ... -1,200 ... ... ... 434 236 22 0 22 214 1,432 ... 1 41,267 114,946 8,958 105,989 32,790 270,285 ... -1,400 ... ... ... ... Net crude, petroleum products, incl. SPR 1,847,556 41 115 9 106 33 267 ... 4-week avg 5-year avg Current Current Expected Previous change week .19 .19 37,701 1,721 Expected Previous change week Year ago 4-week avg 5-year avg 7,986 836 32 0 32 804 7,586 774 32 0 32 742 2 1 2 ... ... ... ... ... 20,548 19,484 motor gasoline Kerosene-type 9,531 ... 9,775 9,452 ... ... ... ... ... ... ... ... ... 74 128 58 70 369 1,020 158 161 53 108 223 726 119 101 17 84 216 846 3,163 4,631 2,885 jet fuel Distillates Residual fuel oil Propane/propylene Other oils 1,650 4,222 326 1,002 3,797 128 165 56 107 219 884 1,550 4,307 408 977 3,531 1,910 4,215 108 548 3,251 1,632 4,191 325 969 3,575 1,508 4,084 268 ... ... 2250 t Natural gas, lower 48 states 1250 250 M J 2017 J A S O N D J F M A 2018 Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session ETF Wednesday, May 16, 2018 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR FT DJ Internet HealthCareSelSect IndSelSectorSPDR iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFE iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500 iShCoreS&P MC iShCoreS&P SC iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShEdgeMSCIUSAMom iShFloatingRateBd iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCI ACWI iShMSCIBrazil iShMSCI EAFE AMLP XLY XLP XLE XLF FDN XLV XLI CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV MTUM FLOT IAU LQD HYG EMB MBB ACWI EWZ EFA 10.33 105.35 49.68 77.55 28.24 131.40 82.96 74.60 103.50 118.68 67.39 57.07 64.04 274.10 194.38 81.78 62.57 105.17 97.31 73.95 52.43 110.87 51.00 12.39 114.03 85.44 108.46 103.01 73.49 40.58 71.48 1.18 –4.3 6.7 0.83 0.71 –12.7 7.3 0.35 1.2 0.18 0.53 19.6 0.3 0.56 0.36 –1.4 –0.03 –1.0 –0.10 –2.8 2.0 0.22 0.3 1.51 1.5 0.50 2.0 0.47 2.4 0.70 6.5 1.19 2.3 0.50 –0.11 –3.8 0.38 –1.3 1.3 0.11 0.15 –0.7 7.5 0.42 0.4 ... –0.08 –1.0 –0.13 –6.2 0.13 –2.1 0.21 –6.6 –0.07 –3.4 1.9 0.45 0.3 1.10 1.7 0.14 ETF ETF Closing Chg YTD Symbol Price (%) (%) iShMSCI EAFE SC iShMSCIEmgMarkets iShMSCIEurozone iShMSCIJapan iShNasdaqBiotech iShNatlMuniBd iShRussell1000Gwth iShRussell1000 iShRussell1000Val iShRussell2000Gwth iShRussell2000 iShRussell2000Val iShRussell3000 iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500Value iShUSPfdStk iShShortTreaBd iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500EW PwrShSrLoanPtf SPDR BlmBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF SHV TIP SHY IEF TLT IWP MINT QQQ RSP BKLN JNK GLD SCHF SCHB 66.35 47.18 44.38 61.17 107.53 108.17 141.78 151.69 122.75 201.09 160.92 129.62 161.81 211.37 88.13 224.55 161.53 111.93 36.94 110.30 111.27 83.11 100.42 116.80 126.62 101.49 168.98 101.81 23.09 35.70 122.29 34.54 66.04 0.17 1.51 –0.30 0.30 0.89 –0.03 0.51 0.47 0.39 1.08 1.04 0.91 0.50 0.46 0.43 0.77 0.44 0.49 0.08 –0.01 –0.14 ... –0.21 –0.38 0.60 0.01 0.66 0.55 –0.04 0.17 –0.16 0.20 0.47 2.9 0.1 2.3 2.1 0.7 –2.3 5.3 2.1 –1.3 7.7 5.5 3.1 2.3 1.6 –1.1 4.0 5.7 –2.0 –3.0 0.1 –2.5 –0.9 –4.9 –7.9 5.0 –0.1 8.5 0.8 0.2 –2.8 –1.1 1.4 2.4 4.060 3.030 4.060 1137.92 -2.3 Fannie mae (FNMA) 3.560 2.670 3.560 Intermediate 3.760 2.530 3.760 1752.68 -2.4 Freddie Mac (FHLMC) 3.580 2.680 3.580 Long term 4.710 3.990 4.710 516.52 -1.1 Muni Master 2.590 1.736 2.653 549.92 -3.0 Double-A-rated 3.510 2.470 3.510 359.33 -1.7 7-12 year 2.640 1.744 2.702 692.06 -3.9 Triple-B-rated 4.350 3.340 4.350 405.94 -1.5 12-22 year 2.943 2.213 3.004 393.83 -1.6 22-plus year 3.304 2.716 3.411 3640.19 -7.5 High Yield Bonds Merrill Lynch 416.74 -0.2 High Yield Constrained 6.315 5.373 6.417 Global Government J.P. Morgan† 2.2 U.S Agency Bloomberg Barclays Global Government 1.660 1.300 1.660 Canada 2.430 1.570 2.440 EMU§ 1.213 0.956 1.311 -0.2 France 0.950 0.690 1.040 -0.6 Germany 0.630 0.330 0.740 Japan 0.390 0.350 0.460 0.2 1613.15 -1.5 U.S Agency 2.870 1.690 2.870 289.72 1449.84 -0.8 10-20 years 2.760 1.510 2.760 557.36 -0.6 Netherlands 0.730 0.460 0.830 -1.6 U.K. 1.710 1.340 1.830 3214.59 -5.0 20-plus years 3.530 2.730 3.530 915.87 2393.18 -2.8 Yankee 3.740 2.610 3.740 771.37 0.4 -4.5 Emerging Markets ** 6.504 5.279 6.601 SchwabUS Div SchwabUS LC SchwabUS SC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdSC Grwth VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFinls VangdFTSEAWxUS VangdGrowth VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdRealEst VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue Closing Chg YTD Symbol Price (%) (%) SCHD SCHX SCHA DIA MDY SPY SDY XLK GDX VGT VBR VBK VIG VEA VWO VGK VFH VEU VUG VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV 49.45 65.12 72.86 247.97 353.85 272.24 91.92 69.52 22.29 182.20 134.95 172.61 101.83 45.35 46.01 59.92 71.27 55.21 147.94 84.39 79.96 82.87 125.12 157.53 111.16 76.12 250.09 77.85 77.85 153.92 78.40 54.36 57.40 140.47 75.45 105.57 † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years 2.375 2.875 4.500 Australia 2 10 0.000 0.000 0.500 1.400 l l l 10 1.400 2.057 s 2.894 s Germany 2 -0.577 t 10 0.607 t Italy 2 l 0.068 s 2.118 s l l l Japan 2 -0.136 t 10 0.056 t l Spain 2 -0.315 s 10 1.400 s l 2.000 U.K. 2 4.250 10 Yield (%) 3 4 Previous 2 l l 0.350 0.100 1 l France 2 -0.466 t 10 0.853 t 2.000 0.100 0 U.S. 2 2.577 t 10 3.090 s 2.250 0.750 Latest(l)-2 -1 l l 0.825 t 1.505 t l l Month ago Year ago 2.589 3.076 2.377 2.829 1.303 2.327 2.040 2.103 1.657 2.840 2.756 2.592 -0.462 -0.484 0.865 0.755 -0.540 -0.577 0.649 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago -54.9 35.4 -19.6 -23.6 26.4 -0.426 -304.3 0.884 -223.7 -305.1 -172.8 -221.1 -144.3 -312.9 -195.9 0.527 -0.656 -315.3 0.436 -248.3 -242.8 -189.2 -0.254 -0.296 -0.211 -250.9 -284.3 -151.4 1.951 1.805 2.220 -97.2 -112.5 -10.7 -0.133 -0.148 -0.163 -271.2 -272.2 -146.5 -301.9 -228.0 -290.6 -159.3 0.057 0.041 -0.317 -0.327 -0.290 1.347 1.243 1.603 0.844 0.929 1.518 1.465 -51.9 0.048 -303.4 -289.2 -169.0 -172.9 -72.4 0.133 -175.2 -174.5 -116.9 1.134 -158.5 -155.8 -119.3 Source: Tullett Prebon in that same company’s share price. 3250 ... ... ... ... ... U.S. Corporate -2.4 Investment-grade spreads that tightened the most… 4250 Finished 9,444 -4.0 2557.07 Corporate Debt Billions of cubic feet; weekly totals t 3.550 2.660 3.550 2685.01 6,056 Natural gas storage 20,060 19,812 9,370 -2.2 ** EMBI Global Index 7,323 8,590 803 696 101 18 0 0 101 18 702 678 20,527 1909.62 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds Five-year average for each week Total petroleum product Mortgage-Backed Ginnie Mae (GNMA) 3.510 2.630 3.510 504.50 ... ... ... ... ... ... 5-year avg -2.3 709.19 7,601 721 11 0 11 710 4-week avg U.S. Corporate Indexes Bloomberg Barclays 1941.53 Europe High Yield Constrained 2.924 1.897 2.957 465 226 29 0 29 197 Year ago 3.420 2.380 3.420 U.S. Aggregate -0.02 433 236 23 0 23 213 Weekly Demand, 000s barrels per day -2.9 Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1887.78 YTD total return (%) 306.29 521 241 22 0 22 219 2,568 Index Total return close 371.10 9,845 1,924 Yield (%) Latest Low High Global High Yield Constrained 5.826 4.934 5.826 10,232 1,849 YTD total return (%) -0.6 9,855 10,636 1,850 2,028 Total return close 376.82 66 29.5000 0.2400 n.a. 0.2894 0.2450 n.a. 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 -1.1 6.80 Fats and Oils Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u Bonds | WSJ.com/bonds Tracking Bond Benchmarks -1.5 1510.20 201.32 180.70 1.1642 2.3800 158.00 160.00 84.75 n.a. 1.1606 1.3669 0.9150 16.15 n.a. 66.10 0.9996 1.0064 116.00 166.88 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; M=monthly; 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 5/15 Source: WSJ Market Data Group 537.95 ... 137 77 0 77 249 860 16.3500 19.6200 16.3230 20.4040 *£12.1200 743.52 9,773 40 133 13 120 39 253 n.a. 90 3.7150 136.4 493.0 263 108 305 2.8875 25.75 7.0450 387.10 6.040 4.948 6.319 1,232 40 118 9 108 33 266 Grains and Feeds Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u SoybeanMeal,Cent IL,rail,ton48%-u Silver, troy oz. Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 0.5800 0.8335 *92.10 61.500 6.00 9.794 9.607 11.091 1,185 43 147 10 137 40 283 1294.85 1391.96 1291.25 1433.28 *1310.05 *1295.00 1343.89 1356.81 1356.81 1566.01 1269.61 1356.81 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 9.6350 7.5375 4.9000 4.9900 5.8250 Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w Fibers and Textiles 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 High Yield 100 Imports, 000s barrels per day 1,186 1,340 Metals Gold, per troy oz Triple-C-rated Source: SIX Financial Information Inventories, 000s barrels LBMA Platinum Price PM *901.0 Platinum,Engelhard industrial 895.0 Platinum,Engelhard fabricated 995.0 Palladium,Engelhard industrial 992.0 Palladium,Engelhard fabricated 1092.0 Aluminum, LME, $ per metric ton *2313.0 Copper,Comex spot 3.0585 Iron Ore, 62% Fe CFR China-s n.a. Shredded Scrap, US Midwest-s,m n.a. Steel, HRC USA, FOB Midwest Mill-s n.a. -0.3 10,592 Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u Other metals 429.54 17.00 93.28 92.84 0.9555 1.0690 2.780 2.750 2.320 2.080 1.810 1.000 2.660 60.400 12.450 Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Wednesday *16.4100 12103 2853.60 1618.90 93.02 92.60 Wednesday (U.S.$ equivalent) Coins,wholesale $1,000 face-a 46.8 237,303 47.0 10,839 Inventories, imports and demand for the week ended May 11. Current figures are in thousands of barrels or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import Natural-gas import and demand data are available monthly only. Year ago Wednesday Energy 77,134 Macro & Market Economics Watching the Gauges: U.S. Supply and Demand Expected Previous Current change week Wednesday, May 16, 2018 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. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 193,717 486,617 215,295 235,800 321,527 162,661 399.25 417.00 2,650 2,680 11,852 1,847 Interest Rate Futures 795 137,494 Cash Prices 2,836 1,770 .15 .05 Treasury Notes (CBT)-$100,000; pts 32nds of 100% 398.00 415.50 July Sept 171.80 s 171.55 s 21 73,503 404.75 421.50 103.750 101.025 11.62 11.90 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 401.75 418.75 102.500 100.000 11.50 11.80 14,092 9,488 July Dec June Aug July Oct Cotton (ICE-US)-50,000 lbs.; cents per lb. 106 246,322 182,929 9,667 64,432 4,035 Open interest Chg Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Agriculture Futures Oats (CBT)-5,000 bu.; cents per bu. Settle Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Metal & Petroleum Futures Corn (CBT)-5,000 bu.; cents per bu. Contract High hilo Low Open WSJ.com/commodities 0.71 0.42 0.86 0.27 0.69 0.42 0.43 0.45 0.13 0.52 0.83 0.74 0.54 0.31 1.41 0.15 0.18 0.51 0.48 0.44 –0.12 –0.10 0.44 0.47 0.59 –0.30 0.43 –0.06 –0.04 0.76 –0.08 ... 0.49 0.49 0.51 0.40 –3.4 2.1 4.5 0.2 2.4 2.0 –2.7 8.7 –4.1 10.6 1.6 7.3 –0.2 1.1 0.2 1.3 1.8 0.9 5.2 –1.4 –4.6 –5.2 2.1 1.8 –0.4 –8.3 2.0 –1.6 –1.8 4.1 –3.9 –0.0 1.0 2.3 1.6 –0.7 Issuer Symbol Coupon (%) Bank of Nova Scotia Boeing DTE Electric Kellogg BNS BA DTE K 3.125 8.750 2.650 4.300 Morgan Stanley Citibank NA Anheuser–Busch Inbev Finance Oracle MS C ABIBB ORCL 5.550 July 15, ’49 2.125 Oct. 20, ’20 2.650 Feb. 1, ’21 1.900 Sept. 15, ’21 Maturity April 20, ’21 Aug. 15, ’21 June 15, ’22 May 15, ’28 Current Spread*, in basis points One-day change Last week 30 –31 30 –25 33 –21 117 –19 82 –18 51 –17 29 –16 25 –14 Stock Performance Close ($) % chg 64 n.a. n.a. 137 63.11 340.97 … 61.49 0.88 –0.34 … 0.39 n.a. 67 47 38 54.97 … ... 46.73 0.22 … ... –0.17 …And spreads that widened the most JPMorgan Chase Intesa Sanpaolo Spa* BAE Systems Holdings KeyCorp JPM ISPIM BALN KEY 4.250 5.017 4.750 4.100 Oct. 15, ’20 June 26, ’24 Oct. 7, ’44 April 30, ’28 62 277 144 113 13 10 10 21 62 270 n.a. 117 113.34 ... ... 20.35 0.27 ... ... –0.59 Welltower Wells Fargo Morgan Stanley Viacom WELL WFC MS VIA 4.250 2.625 5.450 5.850 April 15, ’28 July 22, ’22 July 15, ’49 Sept. 1, ’43 157 81 46 257 10 10 9 9 n.a. 84 72 232 54.84 55.04 54.97 33.85 ... 0.53 0.22 –3.01 High-yield issues with the biggest price increases… Issuer Symbol Coupon (%) American Tire Distributors TMX Finance Neiman Marcus Hornbeck Offshore Services ATD TMXFIN NMG HOS 10.250 March 1, ’22 8.500 Sept. 15, ’18 8.000 Oct. 15, ’21 5.875 April 1, ’20 Murray Energy Dish DBS Intelsat Luxembourg S.A. California Resources MURREN 11.250 DISH 7.750 INTEL 7.750 CRC 8.000 Maturity April 15, ’21 July 1, ’26 June 1, ’21 Dec. 15, ’22 Bond Price as % of face value Current One-day change Last week 2.75 2.25 2.00 1.50 53.250 96.000 68.250 63.250 ... ... ... 3.21 ... ... ... 2.88 44.250 87.900 73.000 90.500 ... … ... 35.02 ... … ... 1.30 100.000 83.250 69.750 68.750 ... … ... 3.79 ... … ... –2.07 99.927 98.625 119.750 n.a. ... 67.14 ... 43.02 ... –0.25 ... –0.51 51.750 98.250 69.500 67.500 42.000 87.000 78.875 90.500 1.50 1.13 0.88 0.75 Stock Performance Close ($) % chg …And with the biggest price decreases Vertiv DISH DBS PetSmart Sanchez Energy CORTNP DISH PETM SN 9.250 5.875 5.875 6.125 Oct. 15, ’24 Nov. 15, ’24 June 1, ’25 Jan. 15, ’23 97.000 83.000 68.000 68.063 Endeavor Energy Resources Lamb Weston Holdings Ngpl Pipeco Tallgrass Energy Partners ENDENR LW NGPLCO TEP 5.500 4.875 7.768 5.500 Jan. 30, ’26 Nov. 1, ’26 Dec. 15, ’37 Jan. 15, ’28 98.438 98.250 118.250 98.250 –2.50 –1.54 –1.26 –1.19 –1.06 –1.00 –1.00 –1.00 *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 . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | B9 * * BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE American and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq BX (formerly Boston), Chicago Stock Exchange, Cboe, NYSE National and Nasdaq ISE. 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. 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. Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Wednesday, May 16, 2018 Stock Net Stock Sym Close Chg Net Sym Close Chg BeiGene BGNE 182.49 -4.50 Berkley WRB 76.45 0.25 BerkHathwy B BRK.B 197.83 0.47 BerkHathwy A BRK.A 296300100.00 BerryGlobal BERY 47.70 ... s BestBuy BBY 78.51 -0.09 s Bio-RadLab A BIO 291.71 7.67 Biogen BIIB 281.51 5.45 BioMarinPharm BMRN 89.52 0.82 BlackKnight BKI 50.25 0.10 BlackBerry BB 11.61 -0.09 BlackRock BLK 533.90 0.69 Blackstone BX 31.29 0.19 BlockHR HRB 27.94 0.14 bluebirdbio BLUE 178.40 3.80 Boeing BA 340.97 -1.15 BookingHldgs BKNG 2074.59 6.84 s BoozAllen BAH 41.26 0.29 BorgWarner BWA 51.82 1.07 BostonProps BXP 117.12 -1.88 BostonSci BSX 29.97 0.35 Braskem BAK 27.12 1.33 BrighthouseFin BHF 47.58 -0.84 Bristol-Myers BMY 52.21 -0.09 BritishAmTob BTI 51.68 0.17 Broadcom AVGO 240.51 -1.07 BroadridgeFinl BR 115.09 -0.52 BrookfieldMgt BAM 40.48 -0.29 BrookfieldInfr BIP 38.32 0.32 Brown&Brown BRO 27.30 0.07 s Brown-Forman B BF.B 58.26 0.30 Brown-Forman A BF.A 55.95 1.25 BuckeyePtrs BPL 39.05 -0.19 Bunge BG 70.59 -0.45 s BurlingtonStrs BURL 140.49 0.65 CA CA 35.13 0.11 CBRE Group CBRE 47.42 0.49 CBS B CBS 53.83 -0.59 CBS A CBS.A 53.90 -0.79 CDK Global CDK 64.59 0.60 CDW CDW 78.64 0.54 CF Industries CF 40.55 -1.19 CGI Group GIB 60.16 0.31 CH Robinson CHRW 85.74 0.56 CIT Group CIT 54.22 0.49 CME Group CME 160.67 0.22 CMS Energy CMS 44.40 -0.23 CNA Fin CNA 49.62 0.57 s CNOOC CEO 182.54 3.35 CPFLEnergia CPL 11.94 0.10 CRH CRH 36.55 0.44 CSX CSX 63.28 0.67 CVS Health CVS 66.13 0.29 CabotOil COG 23.28 0.08 CadenceDesign CDNS 41.03 -0.05 CaesarsEnt CZR 13.20 0.50 CamdenProperty CPT 83.75 -0.39 CampbellSoup CPB 39.48 0.04 CIBC CM 91.20 0.65 CanNtlRlwy CNI 83.18 2.44 CanNaturalRes CNQ 36.70 0.29 CanPacRlwy CP 183.77 -1.22 Canon CAJ 34.30 0.02 CapitalOne COF 95.75 1.10 CardinalHealth CAH 54.51 0.49 Carlisle CSL 105.60 0.59 Carlyle CG 21.90 0.30 CarMax KMX 65.90 0.90 Carnival CCL 65.46 0.28 Carnival CUK 67.19 0.21 Caterpillar CAT 153.80 1.21 CboeGlobalMkts CBOE 108.45 0.34 Celanese A CE 111.11 2.86 Celgene CELG 81.36 -0.62 Cemex CX 6.02 0.19 CenovusEnergy CVE 10.88 0.02 Centene CNC 113.06 -0.04 CenterPointEner CNP 25.50 -0.28 CentraisElBras EBR 5.09 -0.09 CenturyLink CTL 19.26 -0.11 Cerner CERN 59.97 1.67 CharterComms CHTR 272.33 2.02 CheckPoint CHKP 96.40 -0.45 Chemours CC 52.28 1.13 CheniereEnergy LNG 62.75 0.36 CheniereEnerPtrs CQP 32.59 0.54 CheniereEnHldgs CQH 27.95 0.01 Chevron CVX 129.56 -0.18 ChinaEastrnAir CEA 42.05 1.14 ChinaLifeIns LFC 14.35 0.20 s ChinaLodging HTHT 171.59 2.09 ChinaMobile CHL 46.93 0.02 ChinaPetrol SNP 102.78 -0.23 ChinaSoAirlines ZNH 56.08 1.64 ChinaTelecom CHA 48.29 0.45 ChinaUnicom CHU 14.15 0.15 Chipotle CMG 444.67 18.11 Chubb CB 134.57 0.09 ChunghwaTel CHT 36.04 0.06 Church&Dwight CHD 46.61 0.09 Cigna CI 177.15 1.09 CimarexEnergy XEC 98.99 0.58 CincinnatiFin CINF 70.76 -0.13 Cintas CTAS 182.15 -1.00 CiscoSystems CSCO 45.16 -0.32 Citigroup C 71.95 -0.73 CitizensFin CFG 42.54 -0.18 CitrixSystems CTXS 105.88 -0.26 Clorox CLX 118.38 0.98 Coca-Cola KO 41.55 -0.17 Coca-Cola Euro CCE 38.00 -0.13 Coca-Cola Femsa KOF 60.17 0.15 Cognex CGNX 48.27 0.88 CognizantTech CTSH 75.39 -0.07 ColgatePalm CL 62.09 0.44 ColumbiaSportswr COLM 84.79 2.02 Comcast A CMCSA 32.55 0.54 Comerica CMA 99.02 0.62 CommerceBcshrs CBSH 65.24 0.16 ConagraBrands CAG 37.78 0.06 ConchoRscs CXO 149.33 -0.32 ConocoPhillips COP 69.85 -0.24 ConEd ED 74.56 -0.34 ConstBrands A STZ 221.46 -0.31 ConstBrands B STZ.B222.40 -1.62 ContinentalRscs CLR 68.12 -0.18 Cooper COO 231.54 -0.70 s Copart CPRT 56.12 0.73 Corning GLW 28.12 0.40 CoStar CSGP 381.08 -6.92 Costco COST 198.71 3.23 Coty COTY 14.51 0.44 Credicorp BAP 221.56 -3.41 CreditAcceptance CACC 342.92 1.08 CreditSuisse CS 16.73 -0.11 A B C ABB ABB 23.91 0.09 AES AES 12.28 -0.02 Aflac AFL 45.41 0.31 AGNC Invt AGNC 18.88 0.01 ANGI Homesvcs ANGI 14.16 0.02 Ansys ANSS 165.28 -0.20 ASML ASML 202.88 2.95 AT&T T 32.30 0.21 AbbottLabs ABT 60.77 0.23 AbbVie ABBV 105.04 0.86 s Abiomed ABMD 381.97 1.62 Accenture ACN 154.08 0.01 ActivisionBliz ATVI 70.33 0.16 AdobeSystems ADBE 237.39 0.79 AdvanceAuto AAP 119.03 -0.89 AdvMicroDevices AMD 12.82 0.37 Aegon AEG 6.92 -0.04 s AerCap AER 55.80 0.21 Aetna AET 177.47 0.37 AffiliatedMgrs AMG 167.33 0.77 AgilentTechs A 61.94 -0.56 AgnicoEagle AEM 43.83 0.19 AirProducts APD 166.54 0.46 AkamaiTech AKAM 74.59 -1.70 AlaskaAir ALK 59.10 0.35 Albemarle ALB 102.35 1.54 Alcoa AA 50.19 -0.35 AlexandriaRlEst ARE 122.64 -1.51 AlexionPharm ALXN 121.00 -0.55 Alibaba BABA 198.11 1.50 AlignTech ALGN 287.96 4.19 Alkermes ALKS 47.68 1.44 Alleghany Y 583.35 -1.61 Allegion ALLE 77.02 0.56 Allergan AGN 155.25 2.44 AllianceData ADS 209.68 1.82 AlliantEnergy LNT 40.89 -0.16 AllisonTransm ALSN 43.04 0.26 Allstate ALL 95.62 -0.24 AllyFinancial ALLY 26.63 0.03 AlnylamPharm ALNY 101.59 -0.40 Alphabet C GOOG 1081.77 2.54 Alphabet A GOOGL 1084.09 -0.78 Altaba AABA 77.02 0.58 AlticeUSA ATUS 20.23 0.73 Altria MO 54.87 0.35 AlumofChina ACH 13.90 0.13 Amazon.com AMZN 1587.28 11.16 Ambev ABEV 5.80 -0.02 Amdocs DOX 65.82 0.04 Amerco UHAL 354.35 -1.50 Ameren AEE 55.94 -0.48 AmericaMovil A AMOV 16.71 0.07 AmericaMovil AMX 16.82 -0.02 AmerAirlines AAL 44.06 0.87 AEP AEP 66.15 -0.66 AmerExpress AXP 100.59 -0.15 AmericanFin AFG 109.86 -0.13 AmHomes4Rent AMH 19.90 -0.15 AIG AIG 53.71 0.48 AmerTowerREIT AMT 136.47 -0.23 AmerWaterWorks AWK 80.52 -0.96 Ameriprise AMP 139.91 1.75 AmerisourceBrgn ABC 85.99 0.32 Ametek AME 74.92 0.67 Amgen AMGN 173.80 2.78 Amphenol APH 88.35 0.49 s AnadarkoPetrol APC 70.32 0.63 AnalogDevices ADI 94.77 1.21 Andeavor ANDV 140.71 -0.52 AndeavorLog ANDX 44.23 -0.29 AB InBev BUD 93.93 0.34 AnnalyCap NLY 10.26 -0.07 AnteroResources AR 19.32 0.35 Anthem ANTM 232.40 1.53 Aon AON 139.99 -0.78 Apache APA 42.66 0.14 ApartmtInv AIV 39.31 -0.42 ApolloGlbMgmt APO 30.07 0.35 Apple AAPL 188.18 1.74 ApplMaterials AMAT 55.17 1.08 s Aptiv APTV 97.86 1.86 AquaAmerica WTR 33.37 -0.28 Aramark ARMK 38.14 0.09 ArcelorMittal MT 36.21 0.47 ArchCapital ACGL 78.76 0.62 ArcherDaniels ADM 44.52 0.45 Arconic ARNC 18.01 0.03 AristaNetworks ANET 249.13 -0.42 ArrowElec ARW 75.00 -0.74 AspenTech AZPN 93.57 1.21 AstraZeneca AZN 36.50 0.26 AthenaHealth ATHN 148.59 -0.43 Athene ATH 46.29 -0.42 Atlassian TEAM 61.77 -0.03 AtmosEnergy ATO 85.88 -0.68 Autodesk ADSK 135.93 -0.23 Autohome ATHM 105.21 -1.32 Autoliv ALV 145.30 -0.26 ADP ADP 128.02 0.95 AutoZone AZO 647.93 -6.23 Avalonbay AVB 159.50 -1.15 Avangrid AGR 51.75 -0.20 AveryDennison AVY 107.89 1.55 AxaltaCoating AXTA 31.95 0.65 BB&T BBT 55.31 -0.18 BCE BCE 42.37 0.25 s BHPBilliton BHP 51.47 0.80 s BHPBilliton BBL 47.05 0.79 BOK Fin BOKF 104.97 0.29 BP BP 46.71 -0.08 t BT Group BT 13.79 -0.25 BWX Tech BWXT 68.35 0.59 s Baidu BIDU 284.07 12.15 BakerHughes BHGE 36.85 0.78 Ball BLL 38.15 0.41 BancoBilbaoViz BBVA 7.81 -0.14 BancodeChile BCH 96.20 1.89 BcoSantChile BSAC 33.10 0.12 BcoSantMex BSMX 6.86 -0.03 t BancoSantander SAN 6.31 -0.17 BanColombia CIB 46.75 -1.25 BankofAmerica BAC 31.06 -0.16 BankofMontreal BMO 79.19 0.59 BankNY Mellon BK 57.06 0.17 BkNovaScotia BNS 63.11 0.55 BankofOzarks OZRK 48.90 0.34 Barclays BCS 11.47 -0.10 BarrickGold ABX 13.20 0.03 BaxterIntl BAX 70.74 0.29 BectonDicknsn BDX 224.87 0.12 Mutual Funds Net Sym Close Chg Stock CrownCastle CCI 102.99 CrownHoldings CCK 44.24 Ctrip.com CTRP 42.74 Cullen/Frost CFR 118.86 Cummins CMI 147.18 CurtissWright CW 131.68 CypressSemi CY 16.52 -0.29 0.38 -0.12 0.15 0.74 -0.03 0.27 D E F DCT Industrial DCT 64.10 DISH Network DISH 32.98 DTE Energy DTE 100.47 DXC Tech DXC 100.76 Danaher DHR 100.70 Darden DRI 87.22 DaVita DVA 66.83 Deere DE 147.35 DellTechs DVMT 74.22 DeltaAir DAL 53.48 DentsplySirona XRAY 47.89 t DeutscheBank DB 13.00 DevonEnergy DVN 41.40 DexCom DXCM 86.54 Diageo DEO 145.79 DiamondbkEner FANG 132.13 DigitalRealty DLR 106.90 DiscoverFinSvcs DFS 77.43 DiscoveryB DISCB 28.00 DiscoveryA DISCA 23.69 DiscoveryC DISCK 22.45 Disney DIS 105.04 DocuSign DOCU 45.23 DolbyLab DLB 62.82 DollarGeneral DG 96.20 DollarTree DLTR 94.49 DominionEner D 63.77 Domino's DPZ 247.34 Donaldson DCI 47.42 DouglasEmmett DEI 37.07 Dover DOV 77.60 DowDuPont DWDP 68.03 DrPepperSnap DPS 119.03 Dropbox DBX 30.74 DukeEnergy DUK 76.03 DukeRealty DRE 27.96 ENI E 39.02 s EOG Rscs EOG 121.50 EPAM Systems EPAM 123.54 EQT EQT 53.55 E*TRADE ETFC 64.39 EXACT Sci EXAS 50.96 s EastWestBncp EWBC 70.83 EastmanChem EMN 108.58 Eaton ETN 77.33 EatonVance EV 57.59 eBay EBAY 38.35 Ecolab ECL 147.71 Ecopetrol EC 22.34 EdisonInt EIX 61.42 EdwardsLife EW 136.42 ElectronicArts EA 130.86 EmersonElec EMR 71.95 Enbridge ENB 32.70 Encana ECA 13.44 EncompassHealth EHC 63.27 EnelAmericas ENIA 10.45 t EnelGenChile EOCC 21.89 Energen EGN 66.32 EnergyTransferEq ETE 16.69 EnergyTransfer ETP 18.86 Entergy ETR 76.97 EnterpriseProd EPD 28.21 Equifax EFX 114.47 Equinix EQIX 385.76 EquityLife ELS 87.24 EquityResdntl EQR 60.25 EssexProp ESS 230.13 EsteeLauder EL 144.70 EverestRe RE 229.07 EversourceEner ES 57.44 Exelixis EXEL 20.41 Exelon EXC 39.79 Expedia EXPE 115.59 ExpeditorsIntl EXPD 71.89 ExpressScripts ESRX 73.73 ExtraSpaceSt EXR 92.19 ExxonMobil XOM 82.02 F5Networks FFIV 171.04 FMC FMC 91.77 Facebook FB 183.20 FactSet FDS 197.67 Fastenal FAST 53.02 FederalRealty FRT 114.09 FedEx FDX 247.12 Ferrari RACE 133.84 FiatChrysler FCAU 22.28 FibriaCelulose FBR 19.08 FidNatlFin FNF 37.93 FidNatlInfo FIS 104.84 FifthThirdBncp FITB 34.35 58.com WUBA 87.32 s 51job JOBS 104.75 FirstAmerFin FAF 53.19 FirstData FDC 19.50 FirstHorizonNatl FHN 19.46 FirstRepBank FRC 99.12 FirstSolar FSLR 72.77 FirstEnergy FE 33.67 Fiserv FISV 72.28 FleetCorTech FLT 203.33 Flex FLEX 14.47 FlirSystems FLIR 54.74 Fluor FLR 49.25 FomentoEconMex FMX 85.28 FordMotor F 11.40 Fortinet FTNT 58.61 Fortis FTS 32.69 Fortive FTV 76.78 FortBrandsHome FBHS 56.41 Franco-Nevada FNV 70.99 FranklinRscs BEN 33.65 FreeportMcM FCX 16.64 FreseniusMed FMS 50.65 G H I GGP GGP 20.30 Gallagher AJG 66.62 Gaming&Leisure GLPI 34.89 Gap GPS 31.57 GardnerDenver GDI 33.75 Garmin GRMN 59.69 Gartner IT 135.73 Gazit-Globe GZT 9.21 GeneralDynamics GD 200.50 GeneralElec GE 15.03 GeneralMills GIS 43.05 GeneralMotors GM 38.03 Genpact G 30.59 Gentex GNTX 23.83 GenuineParts GPC 92.45 Gerdau GGB 4.94 Gildan GIL 28.76 GileadSciences GILD 67.55 GSK GSK 39.88 GlobalPayments GPN 115.17 GoDaddy GDDY 69.81 Goldcorp GG 13.57 GoldmanSachs GS 240.96 Goodyear GT 26.40 Graco GGG 45.84 GrafTechIntl EAF 18.83 Grainger GWW 306.37 GreatPlainsEner GXP 32.23 Grifols GRFS 22.73 GrubHub GRUB 102.67 GpoAvalAcc AVAL 8.44 GpoFinGalicia GGAL 45.95 GrupoTelevisa TV 18.18 Guidewire GWRE 91.75 HCA Healthcare HCA 102.92 HCP HCP 23.33 HDFC Bank HDB 98.58 HD Supply HDS 40.77 HP HPQ 22.23 HSBC HSBC 50.31 Halliburton HAL 52.97 Hanesbrands HBI 17.70 HarleyDavidson HOG 42.32 Harris HRS 153.70 HartfordFinl HIG 52.86 Hasbro HAS 88.28 Heico HEI 90.14 Heico A HEI.A 74.00 Helm&Payne HP 72.74 HenrySchein HSIC 72.40 Hershey HSY 93.64 s Hess HES 63.61 HewlettPackard HPE 17.63 s Hexcel HXL 69.89 Hill-Rom HRC 89.82 Hilton HLT 84.20 s HollyFrontier HFC 68.96 Hologic HOLX 38.70 HomeDepot HD 186.38 HondaMotor HMC 33.15 Honeywell HON 147.55 HormelFoods HRL 36.38 DR Horton DHI 40.97 HostHotels HST 20.21 HuanengPower HNP 28.12 Humana HUM 289.82 JBHunt JBHT 125.12 HuntingtonBcshs HBAN 15.10 HuntingIngalls HII 220.59 Huntsman HUN 32.72 HyattHotels H 81.27 IAC/InterActive IAC 145.14 ICICI Bank IBN 8.76 IdexxLab IDXX199.42 IHSMarkit INFO 51.63 t ING Groep ING 15.74 Invesco IVZ 28.51 IPG Photonics IPGP 252.47 IQVIA IQV 99.13 IcahnEnterprises IEP 66.66 Icon ICLR 122.19 IDEX IEX 137.41 IllinoisToolWks ITW 144.31 Illumina ILMN 268.84 ImperialOil IMO 32.63 Incyte INCY 67.02 Infosys INFY 17.55 Ingersoll-Rand IR 88.50 Ingredion INGR 113.09 Intel INTC 54.64 InteractiveBrkrs IBKR 78.14 ICE ICE 72.27 InterContinentl IHG 64.91 IBM IBM 144.63 t IntlFlavors IFF 124.06 s IntlGameTech IGT 30.59 IntlPaper IP 55.03 Interpublic IPG 24.04 Intuit INTU 190.41 IntuitiveSurgical ISRG 461.04 InvitatHomes INVH 22.19 iQIYI IQ 20.43 IronMountain IRM 32.62 IsraelChemicals ICL 4.63 ItauUnibanco ITUB 13.06 -0.72 0.99 -1.00 -0.11 0.46 -0.08 0.54 1.82 0.30 1.11 -0.05 -0.29 0.12 -0.72 1.38 3.60 -0.33 1.12 ... 0.73 0.75 2.12 -0.23 0.21 2.20 -0.80 -0.75 0.24 0.04 -0.42 0.65 0.88 -0.34 1.19 -0.90 -0.09 -0.87 1.27 -1.45 1.30 0.19 0.19 0.35 1.08 0.60 0.71 0.27 1.50 -0.69 -0.13 -0.01 0.75 0.12 -0.37 0.06 0.63 0.01 0.11 -0.34 0.17 0.06 -0.58 0.32 0.45 -2.56 -0.59 -0.75 -3.65 2.54 JD.com JD 36.43 1.05 JPMorganChase JPM 113.34 0.05 JackHenry JKHY 122.28 -0.60 JacobsEngg JEC 63.48 -0.42 JamesHardie JHX 17.81 1.59 JanusHenderson JHG 33.20 -0.14 JazzPharma JAZZ 161.24 0.49 JetBlue JBLU 19.47 -0.33 J&J JNJ 125.35 0.23 JohnsonControls JCI 36.42 -0.16 JonesLang JLL 169.42 1.77 JuniperNetworks JNPR 26.86 -1.12 KAR Auction KAR 53.84 0.95 KB Fin KB 53.41 0.52 KKR KKR 22.32 -1.02 KLA Tencor KLAC 113.67 -0.22 KT KT 12.98 -0.05 KSCitySouthern KSU 108.96 -0.10 Kellogg K 61.49 -0.26 KeyCorp KEY 20.35 -0.30 KeysightTechs KEYS 53.53 0.14 KilroyRealty KRC 72.48 0.04 KimberlyClark KMB 104.89 1.54 KimcoRealty KIM 14.00 3.36 KinderMorgan KMI 16.40 0.02 Knight-Swift KNX 40.11 -0.11 Kohl's KSS 64.42 0.26 KoninklijkePhil PHG 42.37 1.16 KoreaElcPwr KEP 16.69 -0.67 KraftHeinz KHC 59.29 0.04 Kroger KR 24.94 0.19 Kyocera KYO 60.30 1.13 LATAMAirlines LTM 13.62 0.10 L Brands LB 34.19 -0.24 LG Display LPL 10.60 0.77 LINE LN 35.93 0.50 LKQ LKQ 30.62 0.18 s LPL Financial LPLA 69.69 -0.68 L3 Tech LLL 193.37 ... LabCpAm LH 176.87 0.53 LamResearch LRCX 206.91 0.45 LamarAdv LAMR 67.84 -0.14 LambWeston LW 67.14 0.09 LasVegasSands LVS 78.36 0.68 Lazard LAZ 55.62 0.02 Lear LEA 201.88 Leidos LDOS 61.48 t Lennar B LEN.B 40.93 LEN 50.97 -0.12 Lennar A -0.24 LennoxIntl LII 199.71 0.42 LeucadiaNatl LUK 23.50 0.41 LibertyBroadbandA LBRDA 71.85 0.12 LibertyBroadbandC LBRDK 72.26 0.46 LibertyGlobal C LBTYK 28.77 0.56 LibertyGlobal B LBTYB 30.35 0.05 LibertyGlobal A LBTYA 29.54 -1.15 LibertyFormOne C FWONK 30.09 J K L Data provided by Fund Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. 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. rRedemption 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 Wednesday, May 16, 2018 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund American Century Inv 47.25 Ultra American Funds Cl A 33.77 AmcpA p AMutlA p 40.82 27.12 BalA p BondA p 12.42 61.10 CapIBA p CapWGrA 52.59 57.75 EupacA p 63.64 FdInvA p 53.24 GwthA p 10.14 HI TrA p ICAA p 41.04 23.01 IncoA p N PerA p 45.41 48.92 NEcoA p 68.16 NwWrldA 58.18 SmCpA p 12.76 TxExA p 46.34 WshA p Baird Funds AggBdInst 10.46 10.81 CorBdInst BlackRock Funds A 19.62 GlblAlloc p BlackRock Funds Inst 22.92 EqtyDivd 19.75 GlblAlloc StratIncOpptyIns 9.83 Bridge Builder Trust CoreBond 9.78 Dimensional Fds +0.19 +0.15 +0.05 -0.01 -0.03 +0.14 +0.20 +0.32 +0.29 -0.01 +0.20 +0.04 +0.21 +0.29 +0.36 +0.28 -0.01 +0.15 8.8 EmgMktVa 7.2 0.5 0.3 -2.9 -2.0 3.3 2.7 2.6 7.5 -0.1 2.0 -0.8 5.2 9.6 1.9 4.3 -1.1 2.0 -0.01 -2.9 -0.01 -2.8 ... -0.4 +0.06 1.1 ... -0.3 ... -0.1 -0.02 -2.8 Net YTD NAV Chg % Ret ... -0.6 TMktIdxPrem 78.29 +0.14 2.7 USBdIdxInstPrem 11.14 +0.12 -0.8 Fidelity Advisor I 33.53 +0.01 1.8 NwInsghtI -0.03 2.4 Fidelity Freedom 16.27 +0.03 1.7 FF2020 14.20 ... 0.6 FF2025 17.82 FF2030 +0.15 3.0 +0.15 2.4 Freedom2020 K 16.25 +0.38 3.8 Freedom2025 K 14.18 +0.43 4.0 Freedom2030 K 17.80 +0.27 3.5 Freedom2035 K 15.10 +0.24 0.6 Freedom2040 K 10.61 Fidelity Invest Dodge & Cox 24.18 Balanced 105.64 +0.34 0.3 Balanc 95.63 13.81 +0.05 -0.4 BluCh GblStock 130.76 Contra 13.39 -0.02 -1.8 Income 130.72 ContraK 46.20 -0.02 -0.3 Intl Stk 10.25 CpInc r Stock 204.24 +1.16 1.8 40.19 DivIntl DoubleLine Funds 196.61 GroCo NA ... NA CoreFxdIncmI GrowCoK 196.64 TotRetBdI NA ... NA InvGB 7.64 Edgewood Growth Instituti InvGrBd 10.84 EdgewoodGrInst 32.75 +0.10 10.8 LowP r 55.55 Fidelity MagIn 105.13 95.32 +0.41 2.5 OTC 500IdxInst 12.05 500IdxInstPrem 95.32 +0.41 2.6 Puritn 23.88 500IdxPrem 95.32 +0.41 2.5 SrsEmrgMkt 21.25 ExtMktIdxPrem r 64.75 +0.47 4.4 SrsGroCoRetail 18.38 IntlIdxPrem r 43.74 -0.05 1.4 SrsIntlGrw 16.36 SAIUSLgCpIndxFd 14.65 +0.07 2.6 SrsIntlVal 10.76 TMktIdxF r 78.30 +0.38 2.9 TotalBond 10.29 5GlbFxdInc +0.24 EmMktCorEq IntlCoreEq IntlVal IntSmCo IntSmVa US CoreEq1 US CoreEq2 US Small US SmCpVal US TgdVal USLgVa 10.80 32.05 23.03 14.80 20.94 21.63 23.10 23.41 22.04 37.23 39.42 25.73 39.18 Net Sym Close Chg +0.38 2.9 -0.01 -2.9 +0.10 7.0 +0.02 +0.03 +0.04 +0.02 +0.03 +0.04 +0.05 +0.04 0.6 0.9 1.3 0.6 0.9 1.4 2.0 2.0 +0.06 +0.50 +0.39 +0.39 +0.03 +0.03 +1.13 +1.13 -0.01 -0.02 +0.25 +0.39 +0.07 +0.07 +0.15 +0.10 +0.06 -0.04 -0.01 2.2 9.0 8.4 8.5 0.9 0.4 10.1 10.1 -2.7 -2.6 1.9 5.4 9.7 2.3 -0.7 10.5 1.3 0.7 -2.3 0.32 0.56 1.09 -0.03 0.62 0.77 0.10 0.14 0.56 0.15 0.67 0.66 0.07 -0.60 0.64 0.23 -0.95 5.52 -0.27 -0.16 2.03 0.07 0.64 0.26 0.75 1.86 -0.04 -0.91 0.97 0.19 0.12 0.25 0.43 1.19 -1.18 0.13 1.11 -0.51 -1.30 1.28 -0.05 0.99 0.15 0.23 0.07 2.22 1.18 0.06 0.82 -1.60 0.30 0.20 0.42 0.39 -0.13 0.70 -0.59 1.87 -0.05 2.27 0.42 0.91 0.42 -0.13 -9.50 -0.09 -0.14 0.10 0.70 -2.97 -0.27 -0.79 0.29 -1.65 5.09 -0.09 -0.21 0.03 -0.38 0.90 0.72 -0.43 0.37 0.71 0.89 0.11 0.47 1.22 -0.16 0.64 4.21 -0.13 -1.00 -0.13 0.06 0.09 Stock Net Sym Close Chg Net Sym Close Chg Stock Stock Net Sym Close Chg Net Sym Close Chg Stock PRGO 75.68 0.13 RoyalCaribbean RCL 107.99 1.37 STMicroelec STM 23.83 -0.44 -0.01 Perrigo SYK 171.76 3.54 0.09 PetroChina PTR 78.06 0.11 RoyalDutchA RDS.A 72.42 -0.23 Stryker 0.19 s PetroleoBrasil PBR 17.14 0.29 RoyalDutchB RDS.B 74.99 -0.53 SumitomoMits SMFG 8.39 0.02 -2.66 s PetroleoBrasilA PBR.A 14.89 0.29 RoyalGold RGLD 88.25 -0.29 SunComms SUI 91.92 -0.55 RYAAY 110.54 0.65 SunLifeFinancial SLF 43.42 0.47 PFE 35.68 -0.01 Ryanair 1.07 Pfizer SAP 114.16 0.52 SuncorEnergy SU 41.04 0.19 1.15 PhilipMorris PM 80.89 0.96 SAP PSX 118.16 -0.16 S&P Global SPGI 198.18 -0.21 SunTrustBanks STI 68.91 -0.37 -0.08 Phillips66 -0.47 PinnacleFoods PF 63.48 0.25 SBA Comm SBAC 157.75 0.08 Symantec SYMC 22.35 0.02 -0.21 PinnacleWest PNW 76.95 -0.29 SEI Investments SEIC 64.43 0.72 SynchronyFin SYF 34.59 0.38 SINA 90.26 -1.19 Synopsys SNPS 88.95 0.29 -0.07 s PioneerNatRscs PXD 206.08 3.03 Sina SHI 70.46 2.83 s SynovusFin SNV 54.18 0.25 -0.05 PlainsAllAmPipe PAA 24.43 0.06 s SINOPEC PAGP 24.62 -0.07 SK Telecom SKM 23.02 0.05 Sysco SYY 63.35 0.40 -0.44 PlainsGP -0.04 PolarisIndustries PII 109.88 2.08 SLGreenRealty SLG 95.12 -1.36 SS&C Tech SSNC 49.17 0.61 POOL 149.30 1.57 0.22 Pool SIVB 322.09 0.80 PX 159.00 0.42 s SVB Fin -0.18 Praxair TAL Education TAL 40.90 0.18 SABR 24.05 0.06 2.70 PrincipalFin PFG 59.43 0.27 Sabre SageTherap SAGE 175.33 1.61 TD Ameritrade AMTD 60.61 -0.10 3.14 Procter&Gamble PG 73.53 0.58 TE Connectivity TEL 95.31 0.43 Progressive PGR 61.61 -0.30 Salesforce.com CRM 128.77 0.64 TU 35.72 0.18 SNY 38.50 0.35 Telus Prologis PLD 63.40 -0.82 Sanofi Ternium TX 41.18 0.74 Proofpoint PFPT 122.55 -1.00 SantanderCons SC 19.76 -0.02 TIM Part TSU 19.47 0.42 M&T Bank MTB 184.26 -0.13 PrudentialFin PRU 101.17 0.63 s SareptaTherap SRPT 93.95 1.28 s TJX TJX 85.19 -0.01 MGM Resorts MGM 31.92 0.19 SSL 37.69 0.06 Prudential PUK 51.86 -0.12 Sasol T-MobileUS TMUS 56.53 0.16 MKS Instrum MKSI 116.65 2.20 PublicServiceEnt PEG 49.87 -0.37 Schlumberger SLB 73.11 1.51 s TRowePrice TROW 120.75 3.61 MPLX MPLX 35.17 0.18 SCHW 58.88 0.06 PublicStorage PSA 205.60 -0.31 SchwabC MSCI MSCI 158.32 -0.39 STX 59.37 1.60 TableauSftwr DATA 92.76 0.27 PulteGroup PHM 29.41 0.11 Seagate TaiwanSemi TSM 39.79 0.49 Macerich MAC 54.46 0.35 Qiagen QGEN 35.13 0.15 SealedAir SEE 43.67 0.23 TakeTwoSoftware TTWO 113.07 -0.40 Macy's M 33.17 3.24 Qorvo QRVO 81.05 0.95 SeattleGenetics SGEN 58.50 1.20 Tapestry TPR 44.34 -0.90 MadisonSquGarden MSG 267.22 0.67 SemicondctrMfg SMI 6.78 0.08 Qualcomm QCOM 56.70 1.06 TargaResources TRGP 48.59 -0.12 MagellanMid MMP 69.41 0.42 QuestDiag DGX 101.80 -0.33 SempraEnergy SRE 103.34 -1.90 Target TGT 75.23 2.15 MagnaIntl MGA 66.25 0.99 QurateQVC A QRTEA 22.37 0.47 ServiceCorp SCI 37.42 0.28 Manpower MAN 94.61 -0.59 s ServiceMaster SERV 57.76 -0.34 TataMotors TTM 22.91 0.22 ManulifeFin MFC 19.49 0.15 ServiceNow NOW 171.15 -2.27 TechnipFMC FTI 33.18 1.21 MarathonOil MRO 21.18 -0.09 ShawComm B SJR 20.43 -0.05 TeckRscsB TECK 28.71 0.61 RENX 21.21 -0.05 SherwinWilliams SHW 381.12 1.47 TelecomArgentina TEO 22.59 -0.98 MarathonPetrol MPC 76.73 -0.56 RELX RELX 21.64 0.06 ShinhanFin SHG 44.89 0.30 TelecomItalia A TI.A 8.06 -0.23 Markel MKL 1130.18 3.50 RELX MarketAxess MKTX 202.24 0.92 RPM RPM 50.44 0.60 Shire 9.06 -0.50 SHPG 173.13 2.45 TelecomItalia TI Marriott MAR 140.44 1.58 RSP Permian RSPP 47.31 -0.04 Shopify SHOP 142.28 -0.22 TeledyneTech TDY 195.89 0.27 Marsh&McLen MMC 80.62 -0.11 RalphLauren RL 112.17 0.71 SignatureBank SBNY 131.63 0.10 Teleflex TFX 259.10 -0.22 MartinMarietta MLM 218.27 1.13 RandgoldRscs GOLD 78.15 0.06 SimonProperty SPG 154.31 1.61 Ericsson ERIC 7.66 -0.04 MarvellTech MRVL 21.87 0.17 RaymondJames RJF 96.41 2.46 s SiriusXM SIRI 6.93 0.06 TelefonicaBras VIV 13.02 0.20 Masco MAS 37.91 0.56 Raytheon RTN 210.15 0.75 Skyworks SWKS 98.84 0.95 Telefonica TEF 9.47 -0.02 Mastercard MA 192.38 0.38 RealtyIncome O 51.90 0.18 SmithAO AOS 63.08 0.10 TelekmIndonesia TLK 24.53 0.75 MatchGroup MTCH 39.69 0.39 RedHat RHT 161.96 -1.60 Smith&Nephew SNN 35.74 0.30 s Tenaris TS 39.49 0.73 MaximIntProducts MXIM 58.49 0.76 RegencyCtrs REG 56.29 -0.11 Smucker TER 37.56 1.69 SJM 112.04 1.05 Teradyne McCormickVtg MKC.V 106.05 0.53 RegenPharm REGN 303.21 2.76 Snap TSLA 286.48 2.30 SNAP 10.58 -0.07 Tesla McCormick MKC 106.62 0.65 RegionsFin RF 19.30 -0.09 SnapOn SNA 150.76 1.22 TevaPharm TEVA 20.88 0.58 McDonalds MCD 162.87 -0.19 ReinsGrp RGA 150.53 ... SOQUIMICH SQM 58.16 1.00 TexasInstruments TXN 111.40 2.19 McKesson MCK 150.16 0.57 RelianceSteel RS 93.65 1.00 Sony TXT 65.65 0.26 SNE 47.82 0.31 Textron Medtronic MDT 85.55 1.18 RepublicSvcs RSG 66.90 -0.58 Southern SO 43.89 -0.32 ThermoFisherSci TMO 210.67 1.59 MelcoResorts MLCO 31.11 ... ResMed RMD 102.39 1.21 SoCopper SCCO 52.03 0.25 ThomsonReuters TRI 38.97 0.91 MercadoLibre MELI 305.13 14.38 RestaurantBrands QSR 56.19 -0.12 SouthwestAir LUV 53.01 1.31 3M MMM 200.21 -2.20 Merck MRK 59.75 0.55 RingCentral RNG 75.50 1.90 SpectraEnerPtrs SEP 33.10 -0.08 Tiffany TIF 104.05 2.17 MetLife MET 47.89 0.41 s RioTinto RIO 58.93 1.41 SpiritAeroSys SPR 83.87 -0.15 TimeWarner TWX 94.19 -0.23 MettlerToledo MTD 560.75 4.31 s RobertHalf RHI 63.35 0.59 Splunk TOL 41.70 0.81 SPLK 115.15 2.07 Toll Bros MichaelKors KORS 65.79 1.34 Rockwell ROK 180.04 1.86 Spotify SPOT 161.39 2.68 Torchmark TMK 85.30 0.41 MicroFocus MFGP 18.06 0.98 RockwellCollins COL 135.08 -0.12 Sprint TTC 59.33 1.13 S 5.07 -0.06 Toro MicrochipTech MCHP 93.51 0.15 RogersComm B RCI 48.57 0.48 Square SQ 56.59 1.94 TorontoDomBk TD 59.08 0.47 MicronTech MU 56.50 2.49 Rollins ROL 50.06 -0.08 StanleyBlackDck SWK 141.41 -0.77 Total TOT 63.21 -0.66 Microsemi MSCC 68.59 0.04 RoperTech ROP 275.75 -2.72 Starbucks SBUX 57.15 0.51 TotalSystem TSS 85.92 -0.37 Microsoft MSFT 97.15 0.25 RossStores ROST 83.37 0.60 StateStreet STT 101.10 -0.11 ToyotaMotor TM 137.35 1.13 MidAmApt MAA 88.90 -0.33 RoyalBkCanada RY 79.16 0.57 Statoil STO 27.14 0.05 TractorSupply TSCO 71.01 0.15 Middleby MIDD 104.97 0.12 RoyalBkScotland RBS 7.97 -0.03 s SteelDynamics STLD 50.94 1.49 TransCanada TRP 42.78 -0.49 MitsubishiUFJ MUFG 6.49 -0.06 MizuhoFin MFG 3.68 -0.01 MobileTeleSys MBT 10.22 0.18 MohawkInds MHK 210.55 1.57 MolsonCoors B TAP 60.11 0.06 Momo MOMO 37.30 -0.06 Mondelez MDLZ 39.52 0.11 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Monsanto MON 125.44 0.15 American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low MonsterBev MNST 48.09 -0.11 in the latest session. % CHG-Daily percentage change from the previous trading session. Moody's MCO 172.24 1.35 Wednesday, May 16, 2018 MorganStanley MS 54.97 0.12 Mosaic MOS 27.73 0.16 52-Wk % 52-Wk % 52-Wk % Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg MotorolaSol MSI 107.30 -0.68 Stock Mylan MYL 39.18 0.68 25.71 2.5 lululemon DSW DSW LULU 101.94 2.7 NICE NICE 103.56 1.29 DeckersOutdoor DECK 101.75 0.1 Luminex LMNX 26.28 2.7 NRG Energy NRG 33.75 ... 50.53 1.2 MCBCHoldings MCFT 30.42 4.7 DelekUS DK 21.75 ... 3.96 3.2 MI Acqns Wt MACQW 0.95 6.0 DenburyRscs DNR NVR NVR 2917.00 15.00 AXA Equitable EQH Abaxis ABAX 83.78 16.2 DorchesterMnls DMLP 19.15 3.0 MYR Group MYRG 39.69 1.1 NXP Semi NXPI 108.84 -1.21 Abiomed ABMD 387.21 0.4 EOG Rscs 33.40 10.8 EOG 121.87 1.1 Macy's M Nasdaq NDAQ 90.24 0.29 AerCap 56.13 0.4 AER NationalGrid NGG 56.49 -0.14 AllstatePfdG ALLpG 25.49 0.5 EastWestBncp EWBC 71.37 0.5 MadisonSquGarden MSG 270.29 0.3 44.10 0.7 MagnaIntl 66.52 1.5 EldoradoResorts ERI MGA NatlOilwell NOV 42.17 0.78 AltairEngg ALTR 35.35 4.8 EloxxPharm ELOX 16.08 -1.9 MalibuBoats MBUU 44.11 2.5 NatlRetailProp NNN 39.31 0.21 AmerEagle 22.67 4.2 EmmisComm EMMS 5.84 -0.5 MarineMax AEO 24.45 0.2 HZO NektarTherap NKTR 85.80 2.40 AnadarkoPetrol APC 70.67 0.9 Endocyte ECYT 13.18 3.7 Materion MTRN 56.55 1.3 APPF 58.40 2.2 EnovaIntl NetApp NTAP 70.68 0.14 AppFolio ENVA 34.50 -0.1 McGrathRentCorp MGRC 64.81 1.0 Netease NTES 266.00 -0.35 AptevoTherap APVO 6.06 -2.6 EnphaseEnergy ENPH 6.04 5.7 Medifast MED 131.84 1.1 APTV 98.20 1.9 EnsignGroup Netflix NFLX 328.19 2.06 Aptiv ENSG 34.05 0.9 MercerIntl MERC 16.00 5.6 ARCB 49.25 2.3 EnterpriseFinSvcs EFSC 54.10 0.9 MerchantsBancorp MBIN 24.74 3.5 Neurocrine NBIX 93.87 0.95 ArcBest 3.53 4.9 EvercoreA ArQule ARQL EVR 109.35 1.1 MeritMedical MMSI 52.65 2.6 NewOrientalEduc EDU 93.20 -0.01 3.34 11.9 Exponent AscenaRetail ASNA EXPO 94.40 1.9 Methanex MEOH 71.51 1.7 NewResidInvt NRZ 18.07 0.06 AstroNova ALOT 19.75 0.3 FTI Consulting FCN 60.94 0.4 Microsemi MSCC 68.59 0.1 NY CmntyBcp NYCB 11.97 0.04 AtlCapitalBcshs ACBI 20.63 1.5 58.75 1.4 FairIsaac FICO 181.89 1.0 Moelis MC NewellBrands NWL 26.50 0.16 AtlasAir AAWW 70.00 1.4 FangHoldings SFUN 5.69 -3.6 MomentaPharm MNTA 22.70 4.4 NewfieldExpln NFX 28.95 -0.16 BHPBilliton 51.83 1.6 FederatedNatl FNHC 20.93 0.1 Morningstar BHP MORN 114.71 1.1 NewmontMin NEM 39.69 0.18 BHPBilliton 47.31 1.7 51job BBL JOBS 105.58 3.3 MudrickCap MUDSU 10.30 0.4 BIDU 284.22 4.5 FirstBanCorp NewsCorp B NWS 16.25 ... Baidu 7.88 1.2 NICE FBP NICE 104.10 1.3 79.90 -0.1 FstCmntyBcsh FCBC BBY NewsCorp A NWSA 15.89 0.10 BestBuy 33.97 2.6 Nanometrics NANO 38.57 1.4 14.35 16.0 FirstCash BILI NextEraEnergy NEE 157.17 -1.68 Bilibili 91.85 2.8 NatlBankHoldings NBHC 37.41 0.6 FCFS 9.00 -2.7 FlyLeasing BLFS 14.75 2.8 NatlEnerSvs FLY NESR 10.70 0.1 Nike NKE 71.34 1.84 BioLifeSols 293.43 2.7 GATX Bio-RadLab A BIO GATX 75.35 1.8 NatlEnerSvsWt NESRW 1.25 -8.3 NiSource NI 24.40 -0.29 BisonCapAcqn BCACU 10.99 4.2 GWPharm 151.98 2.1 42.25 1.9 NatlOilwell GWPH NOV NobleEnergy NBL 35.56 0.25 BlinkChargingWt BLNKW 3.40 115.2 GeneralFin 10.70 0.5 NaturalGrocers NGVC 10.91 5.3 GFN Nokia NOK 6.24 -0.02 Blucora BCOR 35.40 5.4 GeoPark 23.65 0.3 GPRK 15.81 1.6 NavigantConsult NCI NomuraHoldings NMR 5.50 -0.02 BootBarn BOOT 26.25 11.7 GluMobile 5.60 1.1 Nelnet 62.03 2.1 GLUU NNI Nordson NDSN 134.18 1.97 BoozAllen 41.38 0.7 GoldResource GORO BAH 5.69 6.0 Neurocrine 94.30 1.0 NBIX Nordstrom JWN 51.05 1.19 BostonBeer SAM 240.00 0.7 Graham 24.66 1.1 Nike 71.51 2.6 GHM NKE NorfolkSouthern NSC 150.88 0.14 Bristow 18.82 0.6 Greenhill BRS 27.15 3.3 NoahHoldings NOAH 67.11 2.6 GHL 58.50 0.5 GriffinIndlRealty GRIF NorthernTrust NTRS 108.19 0.28 Brown-Forman B BF.B 39.90 0.3 NobleEnergy 35.63 0.7 NBL 26.21 3.0 Guess BKE NorthropGrum NOC 321.16 1.19 Buckle 25.86 1.6 NomadFoods NOMD 17.86 1.7 GES 9.95 -5.1 HUYA 22.75 18.4 Noodles NDLS NorwegCruise NCLH 52.50 0.79 BurlingtonStrs BURL 142.23 0.5 HUYA 89.39 1.5 NoEuroOil 9.40 6.5 HAE NRT Novartis NVS 77.60 0.15 CAS MedSys CASM 1.55 10.4 Haemonetic CB FinSvcs CBFV 34.95 -0.9 HaymakerAcqnUn HYACU 10.15 0.6 NorthrimBanCorp NRIM 39.15 5.1 NovoNordisk NVO 48.86 0.63 20.00 0.8 Hess CBIZ CBZ 63.84 0.2 NuSkinEnts 79.40 1.6 HES NUS Nucor NUE 64.98 1.98 CNOOC CEO 182.58 1.9 Hexcel 70.44 0.1 Nuvectra HXL NVTR 17.74 -1.2 Nutanix NTNX 57.35 0.16 CONSOL Energy CEIX 44.85 -2.5 10.25 0.2 HibbettSports HIBB 29.35 0.7 OCI Partners OCIP Nutrien NTR 51.72 0.02 CVR Energy 41.97 0.1 HollyFrontier CVI 69.49 0.1 OFGBancorp 14.38 1.4 HFC OFG NVIDIA NVDA 246.01 0.45 CVR Refining CVRR 20.15 2.0 HomeTownBkshs HMTA 13.00 0.7 OasisPetrol 12.34 3.1 OAS Cactus WHD 36.39 0.4 HoustonWire HWCC 8.40 2.5 OhioValleyBanc OVBC 49.40 2.3 36.36 4.2 ICU Medical Caleres CAL 70.75 1.3 ICUI 273.05 1.2 Ollie'sBargain OLLI CanadaGoose GOOS 40.46 3.2 Immersion 3.25 1.5 IMMR 14.00 3.8 OpticalCable OCC OGE Energy OGE 33.61 -0.03 CantelMedical CMD 128.31 2.1 77.80 0.8 OxfordLane IndependentBank IBTX OXLC 11.35 -0.3 ONEOK OKE 66.65 -0.02 CarpenterTech CRS 59.97 1.6 InfinityPropCas IPCC 141.50 1.2 PBF Energy 42.41 0.5 PBF OReillyAuto ORLY 271.26 -1.19 CarrizoOil CRZO 26.81 -1.6 Ingevity NGVT 83.21 3.4 PennVirginia PVAC 65.08 3.7 OccidentalPetrol OXY 84.26 -0.01 CenterStateBank CSFL 31.63 0.8 InnSuitesHosp IHT 3.70 34.3 PennyMacTr 18.59 0.2 PMT OldDomFreight ODFL 145.64 0.98 CeridianHCM CDAY 37.41 0.7 Insperity 89.90 2.3 Perma-Fix 5.05 2.1 NSP PESI CHFN 25.21 0.6 InspireMedical INSP 32.65 0.4 PetroleoBrasil PBR 17.20 1.7 OldRepublic ORI 20.83 0.19 CharterFin CHE 333.94 1.7 IntlBcshs 43.15 1.5 PetroleoBrasilA PBR.A 14.98 2.0 IBOC Omnicom OMC 74.79 0.31 Chemed 30.96 1.6 PioneerEnerSvcs PES 5.70 5.6 ON Semi ON 23.82 0.16 ChinaLodging HTHT 173.76 1.2 IntlGameTech IGT OpenText OTEX 34.13 0.08 ChurchillDowns CHDN 314.60 2.9 ItauCorpBanca ITCB 16.26 2.4 PioneerNatRscs PXD 206.85 1.5 Codexis CDXS 14.30 5.3 Kaman 68.79 2.7 KAMN 71.31 1.0 Plantronics PLT Oracle ORCL 46.73 -0.08 77.00 1.5 KaryopharmTherap KPTI ColliersIntl CIGI 18.88 0.7 QAD B QADB 36.90 -3.4 Orange ORAN 17.23 -0.05 ColumbiaFin CLBK 17.00 1.9 Kemper 13.14 0.2 KMPR 75.00 1.7 QEP Resources QEP OrbitalATK OA 133.28 -0.10 CommerceHub C CHUBK 22.76 ... Kirby 91.45 1.7 Quidel KEX QDEL 62.15 2.3 Orix IX 89.10 -0.22 Conmed CNMD 69.00 0.8 LPL Financial LPLA 70.95 -0.1 REGENXBIO RGNX 51.20 -3.9 OwensCorning OC 64.79 -0.82 ContainerStore TCS 7.10 10.0 LegacyReserves LGCY 9.65 11.0 RF Industries RFIL 6.45 0.8 PG&E PCG 42.58 -0.37 Copart CPRT 56.25 1.3 LegacyResPfdA LGCYP 17.00 6.1 RavenIndustries RAVN 41.50 2.2 126.61 1.8 LegacyResPfdB LGCYO 14.92 8.0 RenewableEnergy REGI CLB 15.85 1.3 PLDT PHI 26.29 -0.25 CoreLabs 59.27 2.5 RIO PNC Fin PNC 149.95 -0.84 CrestwoodEquity CEQP 30.35 0.8 LigandPharm LGND 194.42 4.2 RioTinto 27.10 1.4 LonestarRscs LONE 6.94 11.1 RobertHalf 63.70 0.9 CRY RHI POSCO PKX 85.94 0.69 CryoLife 9.80 4.4 LoxoOncology LOXO 143.62 -0.8 RocketPharm RCKT 21.87 6.6 PPG Ind PPG 103.50 0.47 Cytosorbents CTSO LibertyFormOne A FWONA 28.82 LibertyBraves A BATRA 24.25 LibertyBraves C BATRK 24.70 LibertySirius B LSXMB 45.14 LibertySirius C LSXMK 45.63 LibertySirius A LSXMA 45.70 LibertyProperty LPT 42.71 EliLilly LLY 81.18 LincolnNational LNC 67.97 LiveNationEnt LYV 43.83 LloydsBanking LYG 3.55 LockheedMartin LMT 319.33 Loews L 51.30 LogitechIntl LOGI 40.68 Lowe's LOW 85.51 s lululemon LULU 101.65 LyondellBasell LYB 115.31 T U V M N s s s R S s t s s s s New Highs and Lows | WSJ.com/newhighs Highs 0.31 0.31 s 0.82 0.79 0.05 -0.31 -1.62 0.46 0.22 0.15 1.59 0.03 0.92 0.57 0.72 2.34 -0.16 0.34 0.24 -0.12 0.08 -0.25 0.89 0.02 -0.04 0.43 1.23 0.52 -0.22 0.25 0.19 -0.48 0.17 0.88 t ... -0.95 0.30 -0.06 t PPL PPL 27.01 1.34 PTC PTC 84.40 1.04 PVH PVH 155.21 4.72 Paccar PCAR 63.91 0.36 PackagingCpAm PKG 119.04 -0.17 PacWestBancorp PACW 54.38 0.48 PagSeguroDig PAGS 32.55 0.44 PaloAltoNtwks PANW 199.78 5.39 ParkHotels PK 30.38 -0.05 ParkerHannifin PH 176.87 -0.30 ParsleyEnergy PE 31.88 -0.24 Paychex PAYX 64.96 0.58 PaycomSoftware PAYC 101.67 -0.29 PayPal PYPL 77.82 0.46 Pearson PSO 12.28 0.53 PembinaPipeline PBA 34.64 -0.31 Pentair PNR 45.62 -0.20 People'sUtdFin PBCT 18.76 -0.25 PepsiCo PEP 97.19 -0.02 PerkinElmer PKI 73.79 O P Q Net YTD NAV Chg % Ret Fund First Eagle Funds GlbA 59.36 +0.13 FPA Funds 35.07 +0.19 FPACres FrankTemp/Frank Adv 2.30 +0.01 IncomeAdv FrankTemp/Franklin A 7.27 ... CA TF A p 2.32 +0.01 IncomeA p RisDv A p 61.49 +0.39 FrankTemp/Franklin C 2.35 +0.01 Income C t FrankTemp/Temp A 11.82 +0.02 GlBond A p 27.25 +0.03 Growth A p FrankTemp/Temp Adv GlBondAdv p 11.77 +0.02 Harbor Funds 76.44 +0.33 CapApInst 68.87 +0.20 IntlInst r Harding Loevner NA ... IntlEq Invesco Funds A 11.00 +0.03 EqIncA John Hancock Class 1 LSBalncd 15.26 +0.03 16.36 +0.05 LSGwth John Hancock Instl 23.56 +0.10 DispValMCI JPMorgan Funds 39.82 +0.18 MdCpVal L JPMorgan R Class 11.19 -0.02 CoreBond Lazard Instl 19.35 +0.18 EmgMktEq Lord Abbett A ShtDurIncmA p 4.18 ... Lord Abbett F ShtDurIncm 4.18 ... Metropolitan West 10.29 -0.01 TotRetBd TotRetBdI 10.28 -0.01 9.68 -0.01 TRBdPlan MFS Funds Class I 39.80 +0.15 ValueI -0.22 -0.25 0.64 0.39 4.11 0.62 0.34 -2.46 -0.11 0.21 -0.07 0.69 0.10 0.03 0.03 0.01 0.62 -0.01 0.39 -0.04 Stock Net Sym Close Chg TransDigm TDG 323.52 s Transocean RIG 13.60 TransUnion TRU 69.20 Travelers TRV 130.15 Trimble TRMB 34.78 TripAdvisor TRIP 48.71 TurkcellIletism TKC 7.42 TurquoiseHill TRQ 2.98 21stCenturyFoxA FOXA 38.16 21stCenturyFoxB FOX 37.71 Twitter TWTR 32.77 TylerTech TYL 226.92 TysonFoods TSN 68.56 UBS Group UBS 16.08 UDR UDR 35.00 UGI UGI 49.05 US Foods USFD 35.28 USG USG 41.51 UbiquitiNetworks UBNT 80.53 UltaBeauty ULTA 252.02 s UltSoftware ULTI 263.99 UltraparPart UGP 14.73 UnderArmour A UAA 20.52 UnderArmour C UA 18.31 Unilever UN 55.83 Unilever UL 55.13 UnionPacific UNP 141.36 UnitedContinental UAL 69.74 UnitedMicro UMC 2.73 UPS B UPS 116.32 UnitedRentals URI 169.48 US Bancorp USB 50.99 US Steel X 37.51 UnitedTech UTX 124.78 UnitedHealth UNH 241.72 UniversalHealthB UHS 118.48 UnumGroup UNM 38.47 VEREIT VER 6.92 VF VFC 79.58 VICI Prop VICI 19.65 Visa V 130.89 VailResorts MTN 235.99 s Vale VALE 15.13 ValeantPharm VRX 22.08 ValeroEnergy VLO 114.99 VarianMed VAR 117.94 Vedanta VEDL 16.98 VeevaSystems VEEV 76.68 Ventas VTR 52.04 VeriSign VRSN 127.12 VeriskAnalytics VRSK 104.68 Verizon VZ 47.86 VertxPharm VRTX 156.16 Viacom B VIAB 28.27 Viacom A VIA 33.85 Vipshop VIPS 12.66 VistraEnergy VST 23.08 VMware VMW 138.58 t Vodafone VOD 26.60 VornadoRealty VNO 66.64 VoyaFinancial VOYA 53.66 Stock Net Sym Close Chg Stock -1.87 VulcanMatls VMC 128.22 0.21 0.07 0.29 WABCO WBC 128.56 0.23 WEC Energy WEC 60.97 0.34 s WEX WEX 180.74 0.04 W.P.Carey WPC 64.73 0.04 WPP WPP 87.24 0.29 WPX Energy WPX 18.58 0.36 Wabtec WAB 94.57 0.02 WalgreensBoots WBA 65.74 0.29 Walmart WMT 86.13 1.28 WasteConnections WCN 75.28 -0.12 WasteMgt WM 81.62 -0.28 Waters WAT 190.65 -0.36 Watsco WSO 180.30 0.32 Wayfair W 85.05 0.08 Weibo WB 103.84 -0.08 WellCareHealth WCG 217.09 1.63 WellsFargo WFC 55.04 3.15 Welltower WELL 54.84 0.07 WestPharmSvcs WST 88.85 1.64 WestarEnergy WR 53.66 1.18 WestAllianceBcp WAL 61.71 -0.32 WesternDigital WDC 87.02 -0.29 WesternGasEquity WGP 35.42 1.07 WesternGasPtrs WES 51.79 1.71 WesternUnion WU 20.02 ... s WestlakeChem WLK 120.73 0.71 WestpacBanking WBK 21.84 3.93 WestRock WRK 61.89 -0.13 Weyerhaeuser WY 36.13 1.65 WheatonPrecMet WPM 21.47 0.23 Whirlpool WHR159.56 2.22 Williams WMB 27.37 1.07 WilliamsPartners WPZ 38.42 0.36 WillisTowers WLTW 153.24 -0.07 Wipro WIT 4.67 1.00 WooriBank WF 44.08 0.30 Workday WDAY 133.97 -0.21 Worldpay WP 80.95 -0.14 Wyndham WYN 112.66 0.22 WynnResorts WYNN 192.51 0.52 XPO Logistics XPO 105.84 -0.11 XcelEnergy XEL 44.25 0.72 Xerox XRX 28.55 0.19 Xilinx XLNX 70.99 1.00 Xylem XYL 71.45 -0.22 YPF YPF 19.88 0.46 YY YY 104.72 -0.36 Yandex YNDX 34.19 0.07 YumBrands YUM 83.57 0.62 YumChina YUMC 37.58 -0.02 ZTO Express ZTO 17.40 -1.05 ZayoGroup ZAYO 33.56 0.58 ZebraTech ZBRA 156.04 -0.06 Zillow A ZG 52.77 -2.52 Zillow C Z 53.00 -0.44 ZimmerBiomet ZBH 114.54 -0.69 ZionsBancorp ZION 57.76 0.47 Zoetis ZTS 82.85 52-Wk % Sym Hi/Lo Chg Stock RosettaStone RST RudolphTech RTEC S&T Bancorp STBA SINOPEC SHI SMTC SMTX SPX SPXC SVB Fin SIVB SareptaTherap SRPT SeacoastBkgFL SBCF ServiceMaster SERV SimmonsFirstNat SFNC SimulationsPlus SLP SiriusXM SIRI SophirisBio SPHS StaarSurgical STAA SteelDynamics STLD SteinMart SMRT StevenMadden SHOO Stoneridge SRI SupernusPharms SUPN Surmodics SRDX SynovusFin SNV TJX TJX TPGPaceEnergyWt TPGE.WS TPGPaceEnergyA TPGE TRowePrice TROW TechTarget TTGT Teladoc TDOC Tenaris TS TenetHealthcare THC TierReit TIER TradeDesk TTD Transocean RIG Travelzoo TZOO Tredegar TG TriNet TNET TrinityMergerUn TMCXU Triple-S Mgmt GTS TriStateCapital TSC TurningPoint TPB TurtleBeach HEAR UMB Fin UMBF UltSoftware ULTI UnionBankshares UBSH UtdCmntyBcp UCBA UnitedInsurance UIHC USBrentOilFd BNO USGasolineFd UGA UnitedStatesOilFd USO US12moOilFd USL UnivInsurance UVE UrbanOutfitters URBN UsanaHealth USNA Vale VALE Veritex VBTX Verso VRS VillageSuper A VLGEA WEX WEX WebsterFin WBS WellesleyBancorp WEBK WestlakeChem WLK WhitingPetrol WLL WintrustFin WTFC XO Group XOXO XeniaHotels XHR Yext YEXT ZionsBancorpWt ZIONW 15.93 32.70 44.67 70.53 2.86 34.48 325.38 95.67 30.19 58.41 31.25 19.55 7.01 3.70 25.85 51.70 4.04 51.50 31.93 59.05 49.25 54.51 87.31 2.49 10.74 121.80 24.40 49.85 39.59 33.67 21.57 83.37 13.73 16.45 21.35 53.59 10.05 34.85 26.30 24.21 20.36 79.99 264.65 40.92 26.30 21.28 22.09 35.92 14.48 25.33 35.60 42.84 114.30 15.24 30.37 20.48 28.14 181.93 64.65 33.75 121.94 49.73 94.80 29.91 23.29 15.30 25.40 0.88 W X Y Z 0.8 1.6 1.3 4.2 1.1 2.5 0.2 1.4 1.6 -0.6 1.5 2.1 0.9 -0.3 6.7 3.0 1.4 2.1 2.6 0.4 5.2 0.5 ... 1.4 0.5 3.1 1.8 0.8 1.9 1.2 5.1 0.7 1.6 5.0 1.4 1.1 0.3 4.3 1.3 1.8 4.2 0.1 1.2 0.3 0.8 -0.2 1.3 2.2 0.4 0.6 2.5 3.7 1.5 1.5 2.4 7.6 0.9 0.8 0.6 -1.8 1.5 1.3 1.3 0.7 0.8 1.0 0.6 Lows 2.35 -5.0 Ability ABIL 8.45 -1.4 AngloGoldAsh AU 0.29 -5.8 AntheraPharm ANTH AtlanticAmerican AAME 2.65 -3.5 0.80 -37.0 aTyrPharma LIFE 13.72 -1.8 BT Group BT 6.27 -2.6 BancoSantander SAN ... -0.35 1.41 -0.02 0.91 0.40 1.38 1.13 1.61 0.36 -0.56 0.65 1.53 0.46 -0.71 1.25 0.29 ... -0.35 -0.24 0.11 4.04 -0.10 -0.15 -0.01 1.73 0.15 1.03 0.17 0.07 2.30 0.11 0.83 -0.71 0.05 1.13 0.54 -0.75 2.00 2.34 -0.83 -0.30 0.04 0.57 -0.62 ... 0.63 0.29 0.23 0.52 0.08 0.06 1.59 1.19 0.90 1.35 0.17 -0.17 52-Wk % Sym Hi/Lo Chg BeaconRoof BECN Biocept BIOC Biolase BIOL BlueknightEner BKEP BlueknightEnPtrsA BKEPP BostonPrivPfdD BPFHP BridgelineDigital BLIN Bsquare BSQR CVD Equipment CVV CedarRealtyPfC CDRpC Celyad CYAD Cemtrex CETX CescaTherap KOOL ChinaRapidFin XRF Coca-Cola Bottl COKE ContinentalMatls CUO DeutscheBank DB DominionEnerUn DCUD DrReddy'sLab RDY ENDRA LifeSci NDRA EXFO EXFO EchoStar SATS EcoStimEnergy ESES Egalet EGLT ElbitSystems ESLT EnelGenChile EOCC EntreeRscs EGI Hovnanian HOV ING Groep ING InfoSonics IFON Inpixon INPX IntlFlavors IFF InternetGold IGLD Itron ITRI KeyCorpPfdE KEYpI Lazydays LAZY Lennar B LEN.B LevelOneBncp LEVL LinkMotion LKM MarinSoftware MRIN MedleyMgmt MDLY MohawkInds MHK NatlRetailPropPfE NNNpE Neovasc NVCN Netshoes NETS NE Realty NEN NobilisHealth HLTH NorthernDynasty NAK ObalonTherap OBLN OhrPharm OHRP OrmatTech ORA PLDT PHI PPL PPL PSBusParksPfdY PSBpY PacGE pfI PCGpI ParkCity PCYG PartnerComms PTNR ProAssurance PRA PurpleInnovation PRPL RR Donnelley RRD RigNet RNET RiminiStreet RMNI SenecaFoods B SENEB SenesTech SNES SpiritofTexas STXB SpragueRscs SRLP SunstoneHotelPfF SHOpF SuperCom SPCB Switch SWCH TVA Bds D TVC UnicoAmerican UNAM US ShortOilFd DNO UnityBiotech UBX VictoryCapital VCTR Vodafone VOD XpresSpa XSPA 38.71 -1.4 0.17 -13.6 1.20 -5.1 3.30 ... 6.46 -0.8 24.92 -0.2 1.40 -6.4 2.90 -11.8 7.60 -2.3 18.86 0.3 27.96 -8.0 1.90 -22.6 0.52 -30.9 3.74 -6.0 125.56 -0.6 16.55 -6.3 12.90 -2.2 43.16 -1.1 29.17 -1.0 2.05 -12.4 3.55 1.4 50.52 -0.4 0.80 -0.9 0.49 -11.7 111.05 -0.5 21.48 0.5 0.33 -1.4 1.65 -1.2 15.69 -0.9 3.66 -3.4 0.29 -13.2 123.19 0.1 3.29 -4.4 59.65 -3.9 27.01 0.3 8.54 -2.7 40.31 -0.7 28.40 -0.4 0.55 -50.4 5.70 -7.3 4.90 -3.9 206.74 0.8 23.48 -0.7 0.03 -7.0 2.00 -25.4 66.55 -0.3 1.20 -7.4 0.70 -7.6 2.60 -8.1 0.19 -3.4 51.39 -1.3 25.50 -0.9 26.88 -0.8 22.04 ... 19.00 -1.3 7.20 -2.7 3.70 -2.4 39.78 -1.4 6.76 -31.3 6.28 2.1 12.63 0.4 5.48 -4.1 27.45 -4.7 0.30 -1.9 20.77 -0.1 22.80 0.6 23.60 -3.3 1.84 -3.6 12.85 0.3 24.21 -0.9 7.20 -5.9 46.57 -0.3 14.50 -2.9 9.85 -1.2 26.54 -1.6 0.38 -28.9 Dividend Changes Dividend announcements from May 16. Company Symbol Amount Yld % New/Old Frq Payable / Record Increased Agree Realty Leggett & Platt Lennox International M&T Bank MetLife Floating Ser A ADC LEG LII MTB METpA 4.3 .54 /.52 3.6 .38 /.36 1.3 .64 /.51 1.7 .80 /.75 4.1 .2556 /.25 Q Q Q Q Q Jul13 /Jun29 Jul13 /Jun15 Jul13 /Jun29 Jun29 /Jun01 Jun15 /May31 3.3 M Jun15 /May31 Foreign Crescent Point Energy Net YTD NAV Chg % Ret Fund MFS Funds Instl 25.82 +0.01 0.5 IntlEq Oakmark Funds Invest 32.08 +0.18 1.1 EqtyInc r Oakmark 86.63 +0.48 28.54 -0.04 -0.3 OakmrkInt Old Westbury Fds LrgCpStr 14.75 +0.04 -1.5 -0.4 Oppenheimer Y NA ... 0.8 DevMktY 44.42 +0.08 IntGrowY -0.6 Parnassus Fds 43.37 +0.21 ParnEqFd 0.9 PIMCO Fds Instl NA ... AllAsset ... ShortT 9.89 -0.01 9.89 -0.01 TotRt 0.9 PIMCO Funds A NA ... 10.1 IncomeFd PIMCO Funds I2 2.0 NA ... Income NA PIMCO Funds Instl IncomeFd NA ... 0.7 Price Funds 106.81 +0.35 BlChip 33.29 +0.10 EqInc 0.7 EqIndex 73.21 +0.32 1.7 67.78 +0.25 Growth 74.34 +0.64 HelSci 1.1 InstlCapG 40.73 +0.16 18.78 +0.03 IntlStk -1.1 15.11 -0.01 IntlValEq 31.20 +0.14 MCapVal -2.5 MidCap 91.57 +0.31 9.13 -0.02 N Inc -3.3 58.03 +0.29 NHoriz 11.57 ... OverS SF r -0.2 R2020 NA ... NA ... R2025 -0.2 R2030 NA ... R2035 NA ... -2.7 R2040 NA ... -2.7 Value 37.04 +0.10 -2.6 PRIMECAP Odyssey Fds AggGrowth r 50.27 +0.77 -2.1 Growth r 41.35 +0.44 CPG .0235 Net YTD NAV Chg % Ret Fund 32.63 +0.25 Stock r 1.4 Principal Investors 14.10 +0.02 DivIntlInst -0.3 Prudential Cl Z & I 2.7 TRBdZ 13.96 -0.01 -0.1 Schwab Funds 42.24 +0.18 S&P Sel 2.0 TIAA/CREF Funds 10.40 -0.01 BdIdxInst NA EqIdxInst 20.21 +0.10 1.8 IntlEqIdxInst 20.50 ... Tweedy Browne Fds 2.0 GblValue 29.44 +0.01 VANGUARD ADMIRAL NA 500Adml 251.95 +1.08 0.9 BalAdml 34.76 +0.08 -2.8 CAITAdml 11.57 ... 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NA MuShtAdml NA PrmcpAdml r 140.95 +1.15 107.88 -0.27 RealEstatAdml NA NA SmCapAdml 73.71 +0.57 -0.8 STBondAdml 10.20 -0.01 STIGradeAdml 10.43 -0.01 10.33 -0.02 13.4 TotBdAdml 11.0 TotIntBdIdxAdm 21.71 -0.01 Company Symbol FirstService Vermilion Energy FSV VET Amount Yld % New/Old Frq 0.8 6.3 .135 .18013 Q M Payable / Record Jul06 /Jun29 Jun15 /May31 Special MSB Financial Skyline Corp MSBF SKY .445 .62381 Jun13 /May31 May31 /May25 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Net YTD NAV Chg % Ret Fund Net YTD NAV Chg % Ret Fund Net YTD NAV Chg % Ret 27.13 +0.05 1.2 DevMktsIndInst 14.58 +0.02 1.4 2.3 TotIntlAdmIdx r 30.78 +0.08 1.1 STAR 68.37 +0.33 2.9 TgtRe2015 15.34 +0.02 0.1 DevMktsInxInst 22.78 +0.02 1.4 TotStAdml 88.28 +0.64 4.5 14.56 +0.02 1.4 TgtRe2020 31.52 +0.05 0.4 ExtndInst 1.4 TxMIn r 76.15 +0.35 5.5 41.18 +0.16 ... TgtRe2025 18.63 +0.04 0.7 GrwthInst ValAdml 10.21 -0.02 -1.8 67.51 +0.28 0.6 TgtRe2030 33.97 +0.08 1.0 InPrSeIn -3.1 WdsrllAdml 248.67 +1.07 2.5 WellsIAdml 61.34 -1.87 -5.4 TgtRe2035 20.96 +0.06 1.3 InstIdx 248.69 +1.07 2.6 70.65 -1.09 -2.1 TgtRe2040 36.35 +0.12 1.6 InstPlus 2.5 WelltnAdml 60.78 +0.29 2.9 80.26 +0.44 1.6 TgtRe2045 22.90 +0.08 1.8 InstTStPlus WndsrAdml 43.10 +0.19 2.2 TgtRe2050 36.85 +0.13 1.8 MidCpInst -2.9 VANGUARD FDS 212.56 +0.96 2.2 26.65 +0.16 1.5 TgtRetInc 13.47 +0.01 -0.3 MidCpIstPl 2.8 DivdGro 73.71 +0.57 4.5 ... 0.4 SmCapInst 1.6 INSTTRF2020 22.63 +0.04 0.4 TotIntBdIxInv 10.86 INSTTRF2025 23.03 +0.05 0.7 WellsI 25.32 -0.77 -5.4 SmCapIstPl 212.75 +1.64 4.5 40.91 -0.63 -2.1 STIGradeInst 10.43 -0.01 -0.9 3.3 INSTTRF2030 23.36 +0.06 1.0 Welltn 10.33 -0.02 -2.9 38.04 +0.16 0.6 TotBdInst INSTTRF2035 23.68 +0.06 1.3 WndsrII 10.30 -0.02 -3.0 TotBdInst2 2.5 INSTTRF2040 24.01 +0.08 1.7 VANGUARD INDEX FDS 10.33 -0.02 -2.9 251.93 +1.09 2.5 TotBdInstPl 0.6 INSTTRF2045 24.23 +0.09 1.8 500 217.85 +1.56 4.5 TotIntBdIdxInst 32.58 -0.01 0.4 -0.8 INSTTRF2050 24.25 +0.09 1.8 ExtndIstPl 123.08 +0.30 1.1 TotIntlInstIdx r 40.21 ... 0.8 SmValAdml 57.94 +0.46 2.0 4.9 IntlVal 19.85 +0.02 -0.2 TotBd2 10.30 -0.02 -3.0 TotItlInstPlId r 123.11 +0.31 1.1 0.3 LifeCon 68.38 +0.33 2.9 34.14 +0.10 1.4 TotIntl 18.40 +0.05 1.1 TotStInst -0.4 LifeGro 41.18 +0.16 ... 27.30 +0.05 0.6 TotSt 68.34 +0.33 2.8 ValueInst 9.8 LifeMod Western Asset VANGUARD INSTL FDS 27.60 +0.23 2.6 PrmcpCor 4.5 NA ... NA 30.18 +0.15 -3.5 BalInst 34.76 +0.07 0.6 CorePlusBdI -2.1 SelValu r 5.5 0.1 -1.1 -1.8 6.2 Performance of IPOs, most-recent listed first % Chg From % Chg From -3.8 Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day -3.2 Company SYMBOL close ($) price close IPO date/Offer price close ($) price close -7.7 IPO date/Offer price 2.2 VectolQ Acquisition 10.00 ... Origin Bancorp 36.77 ... 8.1 –1.9 8.1 VTIQU May 16/$10.00 OBNK May 9/$34.00 -0.9 Trinity Merger 10.04 0.3 ASLAN Pharmaceuticals 6.20 –11.8 10.5 0.4 -1.0 TMCXU May 15/$10.00 ASLN May 4/$7.03 -1.3 22.50 23.63 24.4 –1.3 -0.1 HUYA 87.5 40.1 Carbon Black 0.4 HUYA May 11/$12.00 CBLK May 4/$19.00 5.5 AXA Equitable Hldgs 21.60 6.2 Construction Ptnrs 12.04 8.0 0.3 –0.5 -7.3 EQH May 10/$20.00 ROAD May 4/$12.00 4.5 -1.1 Evelo Biosciences 16.01 1.0 –2.9 0.1 –1.5 Spirit of Texas Bancshares 21.21 -0.9 EVLO May 9/$16.00 STXB May 4/$21.00 -2.9 0.4 IPO Scorecard Sources: WSJ Market Data Group; FactSet Research Systems . B10 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. * *** BANKING & FINANCE SEC Says Court Ruling Hurts Investors Regulator hasn’t been able to collect more than $800 million in penalties from firms BY DAVE MICHAELS WASHINGTON—U.S. securities regulators haven’t been able to get more than $800 million in disgorgement of illgotten gains since a 2017 Supreme Court case limited the time they have to recover funds for harmed investors. The amount is a meaningful percentage of the total fines that the Securities and Exchange Commission imposes on wrongdoers, a top SEC official told House lawmakers Wednesday. Now, under the court’s decision, the SEC has only five years to sue bad actors after a fraud occurs. “We can’t reach back beyond five years and pull money out of the pocket of wrongdoers and return it to investors,” SEC enforcement co-director Steven Peikin told a panel of the House Financial Services Committee. “This is going to have a significant impact on the recovery we achieve for investors.” The Supreme Court case, Kokesh v. SEC, focused on an SEC investigation of Charles Kokesh, an executive accused of stealing money from thousands of small investors who put cash into funds that he managed during the 1990s and the early part of the past decade. A lower court ruled in 2005 that Mr. Kokesh should pay $34.9 million in disgorgement, an amount his attorneys argued was excessive because the SEC could reach back only five years to calculate fines. The SEC argued that disgorgement, or forfeiting illgotten gains, wasn’t a penalty because the money goes to pay back harmed investors. The Supreme Court, in a unanimous opinion, decided that disgorgement is a penalty and thus subject to a five-year statute of limitations that covers such fines. Republicans and Democrats on the House panel appeared taken back by the magnitude of disgorgement that the SEC has given up since the Kokesh decision. Mr. Peikin said the $800 million tally stems from enforcement cases that are in litigation or have been settled since the court’s ruling. Congress could change the law to give the SEC more time to file charges against people and firms suspected of defrauding investors. The SEC has been aided by an abundance of whistleblower tips in recent years, but says it sometimes still discovers well-concealed frauds too late. Two of the committee’s top Republican and Democratic members appeared open to writing legislation to extend the statute of limitations for seeking disgorgement. “What I want to know…is what we as Congress can do to insure that bad actors aren’t able to profit from their misbehavior and their fraudulent actions?” said Rep. Bill Huizenga (R., Mich.), who is chairman of the subcommittee that met on Wednesday. Rep. Carolyn Maloney (D., N.Y.) also raised the prospect of giving the SEC more time. “Absent an extension of the statute of limitations, we’re going to live with this,” Mr. Peikin said. “But there will be cases where there is ongoing fraud for years and we don’t discover it until some of that money is out of our reach.” The SEC obtained fines against public companies totaling $65 million during the first half of 2018, the lowest amount since at least 2009, according to Cornerstone Research, an economic consulting firm. Cornerstone reported this week that the SEC’s highest settlement with a public company in 2018 was $14 million, by far the lowest amount in any half-year of its data set, which covers the past eight years. The SEC officials told House lawmakers that penalty totals aren’t the best measure of their caseload. Stephanie Avakian, the co-director of SEC enforcement, said a better gauge is whether the regulator recoups money for victimized investors and succeeds in expelling bad actors from the financial industry. Fintech Firm Circle’s Equity Valuation Soars BY TELIS DEMOS MICHAEL BUCHER/THE WALL STREET JOURNAL A digital-currency startup backed by Goldman Sachs Group Inc. is now worth about $3 billion after a new fundraising round. Circle Internet Financial Ltd. disclosed the new valuation Tuesday, which made it one of the most highly valued financial-technology startups in the U.S. The increase in the Bostonbased trading firm’s value, more than seven times the level achieved at a prior fundraising in 2016, stems from the recent explosion of interest in bitcoin and other socalled digital assets. Indeed, despite a 40% decline this year, bitcoin is still making fortunes for companies that deal in the volatile currency. In particular, it shows how some of the biggest winners from last year’s 1,375% surge in bitcoin, which was bested by other tokens including ether, may be the service firms that have formed to facilitate cryptocurrency trading and investment. Those firms include Coinbase Inc., the most popular consumer bitcoin wallet, and Bitmain Technologies Ltd., a Chinese builder of computer chips for digital-currency transactions that is leading the $110 million investment round in Circle announced Tuesday. The fundraising, one of the largest ever among cryptostartups, also includes new investments by venture-capital The cryptocurrency-obsessed surged to 8,300, carrying a sense that this was the dot-com boom from the late 1990s all over again. Crypto Enthusiasts Mob Conference BY ALISON SIDER AND BEN EISEN Seth Kaye, a pink-haired designer, arrived in New York for the Consensus crypto conference this week, hoping that someone would talk to him about his idea to fund solar projects with a digital currency. What he found was a mix of “cool techie people” and “greedy assholes”—though he did eventually run into someone who might help along his project. The price of a bitcoin has dropped more than 50% since December, but enthusiasm for cryptocurrencies and related projects has hardly been dented, judging by the throngs that descended on the New York Hilton, where the fourth annual conference took place. Bankers and accountants found their way into the mix. And of course, there were droves of people pitching initial coin offerings, a means of raising money by issuing digital tokens that has attracted heavy scrutiny from regulators. As the conference opened Monday, lines snaked through the Hilton; some participants said they waited as long as two hours to get in. Tickets started at $1,000, but some paid as much $3,000 at the door. That SEC Launches Site To Combat Scams Washington wants you to know what a cryptocurrency scam looks like, so regulators made one up. The Securities and Exchange Commission, an 84year-old agency not known for its digital communications savvy, on Wednesday launched a website that touts a fake initial coin offering, an unregulated way of raising funds that has raised more than $12 billion. The SEC says many ICOs are probably fraudulent, with bad guys evading investor protections and selling digital tokens that turn out to be worthless for the buyers. The SEC’s fake token, “HoweyCoin,” plays up many of the features of ICOs that regudidn’t seem to deter the cryptoobsessed—8,300 people attended, up from 2,700 last year. All three floors were wall-towall people, with sessions such as “Boosting Blockchain Together” and “Brands, Seals and Crypto Collectibles.” Throughout, there was a lators say are red flags, including celebrity endorsements and guaranteed returns on investment. The mock token sale includes a “white paper” to explain the fake project, which is styled as a partnership with the travel industry. HoweyCoin will be the “coin of the realm” for travel, the paper says. Regulators say investors should be suspicious of token sales that offer discounts to early buyers. The HoweyCoin site advertises tiers of discounts, including a “double 25% discount” for buyers who invest by June 1. People who click on the “Buy Coins Now!” link are taken to an SEC webpage that says: “If you responded to an investment offer like this, you could have been scammed— HoweyCoins are completely fake!” —Dave Michaels healthy dose of glitz and sense that this was the dot-com boom from the late 1990s all over again. One booth hocked “crypto jewelry,” including an $8,700 gold Super Bowl-size ring with the bitcoin logo. Outside, three Lamborghinis hugged the curb, a symbol for those who made big money in bitcoin. “We thought it would be a cheeky way of getting our name out there,” said Greg Dwyer, a spokesman for the virtual exchange BitMEX, which rented the cars and said the move was a spoof on the obsession with Lambos. “Some of my friends are millionaires now, but they’re down to earth,” said Codey Vargas of his compatriots who were early crypto investors. Mr. Vargas was talking to people about a TV show he was working on called Sharkchain, a play on Blockchain, the technology that underpins bitcoin. At the end of the days, the crypto crowd lined up behind velvet-rope lines around Manhattan to get into after-parties. Some invites were hard to get: Greg Rempe, who provides tech services for blockchain companies, said he didn’t make the cut for one event because he didn’t meet the minimum investment threshold. Bankers and other traditional business people got the cold shoulder, with many in the crypto world viewing them as graybeards. “They don’t want to talk to me,” said Ville Sointu, a banker from Finland who had flown in for the conference. New Crypto King Large U.S. crypto/blockchain private fundraisings MINTAHA NESLIHAN EROGLU/ANADOLU/GETTY IMAGES Consumers at boat shows ‘were not lookers, they were buyers,’ says Malibu Boats CEO Jack Springer. search note last month. “When you think about what’s going on with trade and tariffs, small caps tend to be much more domestically oriented, so they would be less affected,” said Sameer Samana, global equity and technical strategist at Wells Fargo Investment Institute. The recent divergence in growth outlooks between the U.S. and the rest of the world has also contributed to the rally in small caps, whose fortunes are more closely tied than multinationals to fluctuations in the U.S. economy. Broad measures of the U.S. economy continue to show signs of expansion, with Commerce Department data on Tuesday showing Americans ramped up spending at the start of the spring despite a run-up in gasoline prices. Signs of strength among consumers have boosted the fortunes of smaller businesses, especially given household spending accounts for more than twothirds of U.S. economic output. “Middle-income consumers are finally starting to spend at rates we would expect in an economic recovery,” Gregory Circle 2018 $110 million R3 2017 107 Coinbase 2017 100 Coinbase 2014 80 Circle 2016 60 Digital Asset 2016 60 Uphold 2018 58 Ripple 2016 55 Source: Dow Jones VentureSource SMALL Continued from page B1 ing regulations and we’re reducing taxes, [small business] managers are going to feel more confident,” said Randy Gwirtzman, a co-manager of Baron Discovery Fund, a $226 million fund that focuses on small-cap companies. “We really think this environment can continue, and valuations for companies aren’t out of the ordinary in terms of being overly expensive.” Smaller publicly traded companies broke away from the broader market in March and pushed higher, even as bouts of volatility related to fears of protectionist trade policies and missteps by technology companies caused the S&P 500 to slide. One reason why small caps withstood the turmoil: Investors have bet that continuing skirmishes over trade policy between the U.S. and China, among other nations, are less likely to dent profits among domestic firms. The S&P 500 gets about 30% of its revenue from outside the U.S., compared with 21% for the Russell 2000, according to a Bank of America Merrill Lynch re- firm Blockchain Capital and Tusk Ventures, as well as more money from existing investors IDG Capital, Breyer Capital, General Catalyst, Accel and Digital Currency Group. Goldman wasn’t among the new round’s investors. Five-year-old Circle’s first product was designed for buying bitcoin and moving traditional money between individuals by using bitcoin as a medium of exchange. But in the past year, its other business, facilitating big trades of digital currencies, has surged in volume and revenue. That desk, called Circle Trade, says it has traded about $4 billion in the past month, handling trades from institutions, companies and wealthy individuals, Circle said. The company has said it generated $250 million in revenue from November to January. By one measure, Circle is the most valuable U.S. cryptocurrency startup. Its $3 billion equity valuation surpasses that of Coinbase, which raised money at a $1.6 billion valuation late last year, according to Dow Jones VentureSource. Circle is one of a handful of so-called over-the-counter market makers who augment the smaller-value trades on exchanges, alongside such firms as Cumberland Mining. As part of the funding, Bitmain also will join Circle’s new project to launch new digital coins that can be exchanged for a fixed amount of traditional, or fiat, currency. Trojan, chief executive of BJ’s Restaurants Inc. said on the firm’s April earnings call. “This is helping improve restaurant traffic everywhere, and we are a key beneficiary.” BJ’s shares are 44% higher for the year. A measure of confidence among small-business owners edged up in April to remain near records, buoyed by optimism around consumer spending, lower taxes and strong earnings, according to a survey from the conservativeleaning National Federation of Independent Business. “Consumers are confident in the U.S. economy, and tax reform has added a layer of optimism this year: Consumers were more prevalent at boat shows and they were not lookers, they were buyers,” Jack Springer, chief executive of Malibu Boats Inc., said on the company’s May earnings call. Shares of Malibu Boats are up 47% for the year. Not all analysts are convinced that small caps can sustain their rally. With investors becoming increasingly bullish, small caps could run in danger of becoming a crowded trade, something that outperforms the broader market until it suffers a sudden reversal. THE WALL STREET JOURNAL. The Russell 2000 had rallied after the Nov. 8, 2016, election and in the period leading to the passage of the tax cuts late last year, only to give up its gains as investors moved back into the stocks of fast-growing multinational companies, especially those in the technology sector. Small-cap-focused funds saw some of their biggest monthly inflows in years in late 2016 and early 2017, only to then suffer 14 straight months of outflows through April, according to Morningstar Inc. data. Any signs of a slowdown in the U.S. economy, which has appeared to gather momentum following a slow start to the year, could once again lift multinationals past their smaller peers, analysts say. But for now, many are feeling optimistic, citing the tailwinds from tax cuts and stronger consumer spending. Outflows among small-cap funds appear to be easing, too, with redemptions totaling just $128.4 million in April, the weakest in more than a year, after investors put nearly $770 million into growth-focused small-cap funds, according to Morningstar. “Small caps will basically go as the economy goes,” said Wells Fargo’s Mr. Samana. . THE WALL STREET JOURNAL. Thursday, May 17, 2018 | B11 * * * * MARKETS Oil Supply Hits Three-Year Low Treasury Yields Maintain Elevation Glut of the past few years has evaporated as production cuts took hold, IEA says BY AKANE OTANI Dollar Is at Highest vs. Euro in 2018 BY DANIEL KRUGER The dollar rose versus the euro amid concerns about a new coalition government in Italy, while edging broadly lower as the pace of rising bond yields moderated and cooled demand for the currency. The WSJ Dollar Index, which measures the currency against a basket of 16 others, declined less than 0.1% to 86.87, ending a two-session streak of gains. Still, the index is at its second-highest closing level this year. The dollar rose 0.3% against the euro to $1.1807, its highest late New York level against the unified currency since Dec. 18. The dollar’s rise relative to the euro was fueled by concerns about the formation of a new governing coalition in Italy. Two Italian antiestablishment parties are seeking to set up a coalition government that investors worry could increase the chances of the country exiting from the euro. “The dollar rally is running a little out of steam,” said Erik Nelson, a currency strategist at Wells Fargo Securities. The International Energy Agency lowered its global oil-demand forecast for 2018 to 1.4 million barrels a day from 1.5 million barrels. Crude Prices Keep Marching Higher U.S. crude prices settled up 18 cents, or 0.3%, at $71.49 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 85 cents, or 1.1%, to $79.28 barrel on ICE Futures Europe. Oil prices have climbed more than 18% this year, boosted by production cuts by major producers tightening supplies and increased geopolitical tensions amid rising unease in the Middle East. The nearly $8-a-barrel difference between global and U.S. oil prices is spurring a wave of exports of U.S. crude. Oil was shipped abroad at a rate of 2.56 million barrels a day last week, according to EIA data. But pipeline bottlenecks are keeping some oil from reaching the Gulf Coast. “The local market flooded but not the balance of the world,” said John Kilduff, founding partner at Again Capital. Members of OPEC have pledged to ramp up production if needed. However, for now, it is “business as usual” as the cartel continues to adhere to its agreement to cut supplies, said Stephen Brennock, an analyst at brokerage PVM. —Sarah McFarlane Below the Mark The Organization for Economic Cooperation and Development countries' crude inventories have fallen below their ﬁve-year average. OECD stocks, amount above or below ﬁve-year average Crude and other natural-gas liquids Reﬁned petroleum 250 million barrels 200 150 100 50 0 –50 –100 2014 ’15 ’16 Source: International Energy Agency result of production outages in Venezuela, according to the IEA. However, the Paris-based organization lowered its global oil-demand forecast for this year to 1.4 million barrels a day from a previous estimate of 1.5 million barrels a day, meaning world oil demand should average 99.2 million barrels a day in 2018. The IEA attributed the downward revision mainly to higher oil prices. Crude prices climbed by more than 50% in the second half of last year, largely on the back of strong compliance with the OPEC-led plan. The market also has been bolstered by geopolitical risk to supply. President Donald Trump’s decision earlier this month to pull the U.S. out of the Iran nuclear deal sent oil prices above 3½-year highs. ’17 ’18 THE WALL STREET JOURNAL. Iran exports around 2.4 million barrels a day of crude, according to the IEA. The U.S. is set to reimpose economic sanctions on OPEC member Iran, which will frustrate the OPEC members’ oil output and further reduce global oil supplies. Treasury prices inched lower following a mixed batch of economic data, driving the yield on the 10CREDIT year note to a MARKETS fresh multiyear high. The yield on the 10-year Treasury settled at 3.093% on Wednesday, compared with 3.082% Tuesday, remaining at its highest closing level since July 2011. Bond yields, which rise as prices fall, struggled for direction overnight as North Korea threatened to pull out of a June summit and amid concerns that a new antiestablishment government in Italy could raise the chances of the country leaving the euro. Signs of geopolitical uncertainty helped drum up some demand for Treasurys, although analysts warned bonds would likely remain under pressure in the absence of significantly weaker U.S. economic data. Economic reports were mixed Wednesday, showing U.S. housing starts falling more than expected in April, but industrial output—reflecting everything produced by factories, mines and utilities— rising for a third straight month. “The recovery in residential housing construction remains an incomplete story with danger signs on the horizon from higher interest rates,” wrote Chris Rupkey, chief financial economist at MUFG. And the data on industrial output came with a caveat, too, with increases in mining production, driven by rising oil prices, behind much of the move, Mr. Rupkey said. Together, the data provided investors few reasons to make big moves following Tuesday’s selloff, which had marked the biggest one-day advance in the 10-year yield since March 2017. Stocks Get a Boost From Retailer Rebound BY AMRITH RAMKUMAR AND DAVID HODARI Higher Ground U.S. stocks climbed, lifted by gains in shares of retailers despite worries about tighter financial conditions and geopolitical tensions. Investors have been concerned recently about rising inflation and interest rates pushing up WEDNESDAY’S borrowing MARKETS costs, but some analysts expect strong earnings and economic data to buoy stocks. Corporate earnings are increasing at their fastest pace in years, and some expect a wave of share buybacks to also fuel indexes. Although the yield on the 10-year Treasury note has hit its highest level since 2011, some analysts don’t think that mark is high enough to hurt stocks in the long run. “We don’t believe that those specific levels dictate the end of this expansion; it’s just the markets have to get comfortable and adjust to a higher rates regime,” said Michael Hans, chief investment officer of Clarfeld Financial Advisors. On Wednesday, the Dow The SPDR S&P Retail ETF has risen in four straight sessions to its highest level since January. $50 Jan. 22 $48.91 48 May 16 $46.95 46 LAURA BUCKMAN/BLOOMBERG NEWS Commercial oil stocks in industrialized economies have fallen to their lowest level in three years, the International Energy Agency said Wednesday, in the latest sign that the global supply glut has been mopped up and the market rebalanced. In its monthly oil market report, the IEA said commercial oil inventoENERGY ries for the OrMARKETS ganization for Economic Cooperation and Development countries declined in March by 26.8 million barrels month on month to 2.819 billion barrels. That is 1 million barrels below the latest five-year average metric widely used by oil-market participants to assess the rebalancing process. The IEA suggested the drawdown in stocks was evidence that efforts led by the Organization of the Petroleum Exporting Countries to cut crude output had succeeded in clearing up excess global supply that has weighed on the oil market since late 2014. OPEC and 10 producers outside the oil cartel, including Russia, have been holding back crude production by roughly 1.8 million barrels a day since the start of last year. The agreement, which was extended in November, is set to expire at the end of this year. “For the first time since 2014, OECD stocks were below the five-year average metric widely cited to measure the success of the OPEC/nonOPEC” agreement, the reported noted. Since the OPEC accord was implemented, OECD stocks have declined by 233 million barrels, the agency added. OPEC crude output fell month on month in April by 130,000 barrels a day to 31.65 million barrels a day, mainly a ANDREY RUDAKOV/BLOOMBERG NEWS BY CHRISTOPHER ALESSI 44 42 January February March Target was among the S&P 500’s best performers, gaining 2.9%. Source: FactSet Jones Industrial Averaged rose 62.52 points, or 0.3%, to 24768.93. The blue-chip index remains 6.9% off its record hit in January. The S&P 500 added 11.01 points, or 0.4%, to 2722.46, with nine of its 11 sectors rising, and the techoriented Nasdaq Composite climbed 46.67 points, or 0.6%, to 7398.30. Macy’s shares surged $3.24, or 11%, to $33.17, after the department-store chain exceeded same-store sales expectations More investors now are anticipating three additional Federal Reserve interest-rate increases this year compared with the central bank’s previous projection of two. Higher rates tend to push up borrowing costs and Treasury yields, making stocks less attractive to some investors. Still, some investors think markets can withstand higher rates as long as the Fed sticks with its gradual pace of tightening. “I don’t think it’s been in the most recent quarter and lifted its targets for fiscal 2018. Other retailers such as Target and L Brands were also among the S&P 500’s best performers, rising 2.9% and 2.6%, respectively. Rosy retail sales data Tuesday also have supported consumer stocks and expectations for robust growth in the U.S., though the figures also reignited worries about higher interest rates. April May THE WALL STREET JOURNAL. at a speed that’s too difficult to deal with,” said Jeff Garden, senior research analyst and portfolio manager at Lido Advisors. “This has been coming for a long time.” Elsewhere, the Stoxx Europe 600 edged up 0.2%, with the index’s basic resources and technology sectors among the best performers. Early Thursday, Japan’s Nikkei Stock Average rose 0.47%, and the Shanghai Composite Index was down 0.02%. Italian Bonds, Bank Shares Drop on Worries of a Euro Exit BY MIKE BIRD Concerns Climb Italy's government-bond yields moved more sharply upward against their German peers, with the biggest daily increase in spreads since the U.K's EU referendum. Spread between 10-year Italian and German government-bond yields 1.50 percentage points 1.45 1.40 1.35 1.30 1.25 6 a.m. 7 Source: Tradeweb 8 9 10 11 Note: Through 4 p.m. in London noon 1 2 3 4 THE WALL STREET JOURNAL. Political uncertainty returned to Italy as investors dumped Italian bonds and bank stocks, worried that a new antiestablishment government has increased chances of the country’s exit from the euro. On Sunday, the populist 5 Star Movement and anti-immigration League party reached a broad agreement for a new government. Tuesday, Huffington Post Italia posted a draft government program that proposed the introduction of procedures within the eurozone to allow countries to quit the euro and said they would ask the European Central Bank to write off €250 billion ($296 billion) of government debt. The market “was running under the understanding that 5 Star had dropped its antieuro rhetoric. The document [on Tuesday] was a cold shower in that regard,” said Giada Giani, Italian economist at Citigroup. “Even discussing the idea of a parallel currency or figuring out a coordinated exit from the monetary union, the very fact that it’s put in a document suggests there are very strong forces pushing in that direction,” she added. The 5 Star Movement and League on Wednesday said the draft was out of date and details had changed significantly, and that more recent discussions didn’t put Italy’s membership in the common currency into question. But bond investors took note, with spreads between 10year Italian and German government bonds rising from 1.28 percentage points in late trading Tuesday to as high as 1.5 points Wednesday. The move represents the largest singleday increase in the spread since the U.K. vote to leave the European Union in June 2016. The FTSE MIB, Italy’s benchmark equity index, dropped 2.3% Wednesday. Major banks led the decline, with UniCredit, Banca Mediolanum and Banco BPM each down between 4% and 5.4%. “With a public debt of 130% of GDP, it remains quite a risk, especially with these parties, because they won’t step forward with reforms. They might even step back,” said Fabrizio Quirighetti, co-head of multiasset at SYZ Asset Management. Yet Italian stocks have outperformed their European peers and government-bond spreads are still below their levels at the end of 2017. Before the election, analysts had judged the prospect of a coalition of antiestablishment parties to be a remote yet concerning one. . B12 | Thursday, May 17, 2018 THE WALL STREET JOURNAL. * *** MARKETS Argentina’s Woes Trip Up Big Investors Argentina’s ailing currency and stock market are pounding funds managed by some of the world’s biggest investors, including Fidelity Investments, T. Rowe Price Group Inc. and Morgan Stanley, reversing some of the outsize gains they enjoyed last year. These investment firms often own Argentine stocks through specialized funds that invest in some of the world’s least developed countries, known as frontier markets, or through Latin American funds. Because Argentina’s stocks represent about 19% of the MSCI Frontier Markets Index, even money managers that have positions at less than the index weighting still have significant exposure to the country’s stocks and have taken a beating. Frontier markets funds at T. Rowe Price, Morgan Stanley and Ashmore Group PLC have 16% or more of their portfolios in Argentine stocks, according to Morningstar data. Their funds have suffered declines between 5% and 8% over the past month, Morningstar said. Emerging markets and Latin America-focused stock funds at Fidelity, BlackRock Inc. and Eaton Vance Corp. are also down between 2.5% and 5%, in large part because of their holdings in Argentina stocks. The Argentine peso’s sudden collapse this year seemed to catch even longtime investors off guard. “We went into a meeting, the peso was down 1%, we come out and the peso is down 5%,” said William Pruett, portfolio manager for the Fidelity Latin America Fund. The dollar rose nearly 9% against the Argentine currency on Monday. The peso has rebounded a bit since Returns for stock funds that invested heavily in Argentina have plunged in the past month. 10% How many Argentine pesos one U.S. dollar buys MSCI Argentina Index Argentina’s central bank key policy rate 14 Argentine pesos 4500 50% 16 4000 40 18 3500 30 20 3000 20 22 2500 10 5 Scale inverted to show weakening peso 24 LOSSES OR GAINS* BY JULIE WERNAU AND IRA IOSEBASHVILI 2017 2000 0 2017 ’18 2016 ’18 ’17 ’18 0 Frontier markets funds at T. Rowe Price, Morgan Stanley and Ashmore Group have 16% or more of their portfolios in Argentine stocks Eaton Vance Emerging markets –5 Ashmore Group Frontier Wasatch Frontier BlackRock Latin America Fidelity Latin America –10 0% T. Rowe Price Frontier Emerging markets and Latin America-focused stock funds at Fidelity, BlackRock and Eaton Vance have 4% or more of their holdings in Argentine stocks. 5 10 PERCENTAGE EXPOSURE TO ARGENTINA STOCKS Morgan Stanley Frontier 15 20 Note: Data for 238 funds with exposure to Argentine stocks *Between April 17 and May 15, 2018, in base currency Sources: Morningstar (funds); Tullet Prebon (currency); Thomson Reuters (MSCI); Argentina’s central bank (rate) Ana Rivas/THE WALL STREET JOURNAL. then, but is still down 17% since late April, when the country began intervening in currency markets. Many investors decided to sell before the central bank tried to roll over about $30 billion in short-term, peso-denominated securities known as Lebacs on Tuesday, as any signs that the government debt sale for a developing country. Last year, the government sold 100-year bonds with a yield of only 7.9%. The country’s stock market rose 77% in 2017, while localcurrency bonds offered yields of about 20%. Those returns attracted investors who didn’t normally invest in frontier markets but was having trouble refinancing this debt would further rattle investor sentiment and punish Argentina’s financial markets. The government said late Tuesday that 100% of the expiring debt was successfully covered. Many of the big investment firms increased their bets on Argentina’s stocks and bonds last year, when investor optimism surged with the new, business-friendly government led by President Mauricio Macri. Argentina resolved a 15year-long dispute with creditors in 2016 and returned to markets with a $16.5 billion bond offering, which at the time was the largest-ever HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Email: firstname.lastname@example.org they did so in Argentina near the end of last year, following capital-market overhauls and midterm elections that reaffirmed support for Mr. Macri. Many of these investors also were betting that MSCI would elevate Argentina to its Emerging Markets Index, which includes more advanced developing countries and would likely bring more money into Argentine stocks from investment firms that follow the index. Those new inflows caused the country’s proportion of the MSCI Frontier Markets Index to balloon to 24% last year, as stocks surged. Now, some dedicated frontier managers say, the more opportunistic investors are fleeing as quickly as they came in. “They don’t follow the country closely enough and now they’re panicking,” said Oliver Bell, a frontier-markets portfolio manager at T. Rowe Price, who has 20% of his portfolio in Argentina stocks. Many investors have been spooked by a series of emergency interest-rate increases that began last month, as Argentina’s central bank has moved rates up to 40%. Argentina said last week that it is in negotiations with the International Monetary Fund for an emergency loan to shore up its finances, as the country faces looming inflation and a possible slowdown in growth. “The country is doing everything right,” Fidelity’s Mr. Pruett said, adding there has been a “crisis of confidence that’s weighing on the currency.” With 4% of assets invested in Argentina, his fund has fallen more than 7% over the past month. Mr. Pruett said he hasn’t changed his exposure to the country because he believes the administration is making the right moves to stabilize the selloff. WSJ.com/Heard Emerging Markets’ Weakest Links Macy’s Results Are a Who’s next? The fear of contagion is stalking emerging markets again, but Argentina and Turkey have put themselves in the firing line while others have distanced themselves from it. The shakeout in emerging markets sparked by the “taper tantrum” of 2013 put the spotlight on countries with relatively wide current-account deficits. The turmoil that has hit some vulnerable countries as U.S. rates have risen started with similar weak links, but there are fewer immediately obvious follow-on targets. Right now, the spotlight is on Argentina, where the peso has fallen more than 23% against the dollar this year and the country is seeking support from the International Monetary Fund, and Turkey, where the lira has fallen more than 15%. Both stand out for having currentaccount deficits estimated by the IMF in 2018 at more than 5% of gross domestic product. Those two countries’ vulnerability has been exacerbated by domestic policy missteps, especially on monetary policy. Turkey faces a credibility challenge, with President Recep Tayyip Erdogan saying he would seek to exert greater influence on monetary policy, which has sent the lira to a record low. But many other nations have narrower current-account deficits than in the past, having taken account of what happened in 2013. Their currencies are under less pressure this time. South Africa, for instance, ran a current-account deficit of 5.9% of GDP in 2013 on the IMF’s numbers and the rand fell around 20% against the dollar that year. But the forecast deficit for 2018 is substantially narrower, at 2.9%, and there is enthusiasm around the political and economic change that new President Cyril Ramaphosa may bring; the rand has Standing Out Current-account deﬁcit as a share of gross domestic product, 2018 forecast Turkey 5.4% Argentina 5.1 South Africa 2.9 India 2.3 Indonesia 1.9 Mexico 1.9 Brazil 1.6 Source: International Monetary Fund THE WALL STREET JOURNAL. given up its gains against the dollar this year but is down only 0.5% in May. In Latin America, current-account deficits for Mexico and Brazil are forecast at less than 2% of GDP in 2018. Deficits aren’t the only thing for investors to worry about, of course. Russia runs a surplus, but the ruble has been battered by new U.S. sanctions this year and is down 7.5% against the dollar. Notably, however, it has rebounded from its lows and is slightly up against the dollar in May even as clouds have gathered over emerging markets, helped by surging oil prices. That, in turn, may weigh on the deficits of crude importers. And then there is politics, a potential worry for investors in Brazil and Mexico, where elections are looming. A further rise in the dollar and U.S. Treasury yields— with the 10-year yield now decisively above 3%—will put more pressure on emerging markets in general. For now, though, Turkey and Argentina are being singled out because they are different from other emerging-market nations. Investors are right to be nervous that these are the first cracks in a broader crisis, but contagion may be an issue only for those with pre-existing conditions. —Richard Barley More Drug-Price Drama Is on the Way The next leg of the Trump administration’s plan to lower the cost of drug prices could get ugly for investors. As soon as Thursday, the Food and Drug Administration plans to publish a database of complaint letters from generic-drug companies to the agency alleging anticompetitive activities from branded pharmaceutical companies. At issue are FDA rules under a program called REMS, which often call for limited distribution of drugs to protect against possible safety issues. Generic-drug companies have long contended that branded companies game the rules to withhold sufficient samples needed to develop cheaper alternatives. Sticker Shock Annual Revlimid sales $12 billion 9 6 3 0 2010 ’15 ’20 Note: 2018-20 are analyst projections Source: FactSet For example, Mylan sued Celgene for allegedly thwarting efforts to develop a generic version of blood cancer drug Revlimid back in 2014. Mylan alleged that those tactics helped stave off cheaper competitors. Now regulators are get- ting involved. “We know that certain brand-name manufacturers are abusing the system by blocking access to samples, and hiding behind FDA’s rules when they do it,” Health and Human Services Secretary Alex Azar said in a speech on Monday. He said the agency has received more than 150 complaints from generic manufacturers regarding challenges accessing drug samples. While the FDA doesn’t have the authority to halt this practice entirely absent new legislation, that is false comfort for investors in the owners of the patents. The likelihood of congressional action only needs to increase for stock prices to come un- der pressure. Investors should recall that the surging Nasdaq Biotechnology Index plunged by nearly 40% from its July 2015 peak when price-gouging headlines begat promises from politicians to crack down on the sector. At issue was pricing practices from companies like Turing Pharmaceuticals and Valeant Pharmaceuticals international, which weren’t even in the index. This time, the biotech index is roughly flat so far this year, which should cushion any blow from new scrutiny. Still, with midterm elections looming in the fall, investors shouldn’t be surprised if a sequel is in store. —Charley Grant Miracle on 34th Street Macy’s was brimming with optimism when it reported results for the end of 2017: It had recorded positive sales growth for the first time in three years. Yet, with the shares up 18% so far this year, skepticism abounded. Analysts at Morgan Stanley and Deutsche Bank put out bleak notes warning of declining sales and limited upside. Macy’s has done it again, though, reporting first-quarter earnings that smashed expectations. It posted earnings per share of 48 cents compared with a consensus estimate of 37 cents as measured by FactSet and revenue that rose 3.6% to $5.5 billion, exceeding the estimate of $5.4 billion. The strong quarter has prompted the retailer to raise its outlook for 2018. Macy’s now expects earnings for the year between $3.75 and $3.95 a share, 5% more than 2017 and a 20-cent increase over its previous 2018 outlook. The shares rose by nearly 11% Wednesday. The retailer’s momentum reflects Macy’s healthier inventory and willingness to experiment—for instance, with new concept stores like Macy’s Backstage, its offprice business. Yet it was also driven by Macy’s decision to shift its “Friends & Family” sale from the second quarter to the first. Samestore sales increased 4.2% for the quarter. If one strips out the promotional sale, though, samestore sales would have risen only about 1.7%, according to Macy’s. That is still slightly better than analysts’ expectations of a 1.4% increase, but it suggests that Macy’s may struggle to maintain its momentum in the sales-free second quarter. The company isn’t sitting still as it bets on new ventures. It wants to bring Macy’s Backstage to the West Coast and it recently bought Story, a New York concept store. Macy’s also has a new brand experience officer in Story’s founder and CEO, Rachel Shechtman. The focus on innovation and agility is smart. As the recently floundering retailer keeps raising its outlook, though, it also risks creating expectations it can’t meet. —Elizabeth Winkler OVERHEARD “Beginning our journey to rebuild trust with society” aren’t words investors want to hear from a company they own. Novartis told its shareholders just that Wednesday in its investor day presentation. The company highlighted “select ongoing issues” like the controversial payments to Essential Consultants, the firm of Michael Cohen, Donald Trump’s personal lawyer, as well as other investigations into the company’s business practices in the U.S., Greece and Korea. Novartis says it is on the case. The company plans to roll out a new professional practices policy and an independent ethics board. The company also plans “deployment of big data analytics system for compliance monitoring.” Missing from the slide deck, however, was the biggest news of the day: Novartis announced its general counsel plans to retire on June 1.