close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal - May 17, 2018

код для вставкиСкачать
.
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.
Periodicals postage paid at New York, N.Y., and other mailing offices.
Postmaster: Send address changes to The Wall Street Journal,
200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.com; By phone: 1-800-843-0008
GOT A TIP FOR US? 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 wsjcontact@wsj.com 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 tteachout@wsj.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.
Hi
86
81
68
97
75
72
72
76
84
79
65
85
69
83
71
Today
Lo W
60 s
70 t
59 r
69 s
57 t
47 s
50 c
52 pc
64 pc
53 pc
55 pc
48 s
52 c
59 pc
61 t
Tomorrow
Hi Lo W
85 60 pc
83 69 t
62 54 r
94 70 s
68 55 r
60 44 s
74 52 pc
80 53 s
82 61 pc
71 53 t
66 54 pc
80 45 s
69 54 pc
77 58 c
68 61 r
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
58
83
95
92
75
74
62
57
98
56
60
Today
Lo W
46 s
67 s
70 s
79 c
61 sh
52 t
43 s
45 r
83 s
42 pc
42 s
Tomorrow
Hi Lo W
59 47 s
82 63 s
98 72 s
91 79 t
83 59 pc
72 50 pc
62 43 s
61 45 sh
95 80 s
61 46 pc
62 43 pc
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei City
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
71
68
83
91
80
90
88
65
63
78
96
58
82
75
74
93
66
83
97
70
84
74
99
88
68
95
80
68
66
66
63
Today
Lo W
47 pc
49 t
70 t
81 sh
65 pc
76 t
68 s
46 s
42 s
55 pc
81 pc
52 c
57 pc
56 t
59 sh
81 pc
44 pc
72 pc
78 s
55 pc
74 pc
61 r
79 t
78 c
50 s
79 t
67 c
49 c
52 pc
53 t
47 t
Tomorrow
Hi Lo W
69 51 pc
70 50 pc
82 72 t
90 80 c
75 64 pc
90 76 t
92 70 s
67 46 pc
65 46 s
75 55 pc
97 81 s
62 49 sh
82 56 pc
77 60 t
75 57 t
93 79 pc
64 45 s
84 73 s
90 77 pc
74 57 pc
84 75 pc
67 52 r
92 69 t
87 80 c
67 53 s
99 79 pc
80 67 pc
63 48 pc
67 51 pc
66 49 t
69 48 pc
22 Movie credits
Clinic offering
extras,
Billionaire Broad
sometimes
More sensible
17
18
19
25 Louts
Enchanted
26 TV blocking
20
21 22
23
object in
device
“Beauty and
24
25
26
the Beast”
27 Big D hoopster
27
28
29
65 MoMA site
28 USSR jets
Down
31 Super
30
31
32 33
1 White tunics
33
In addition
34
35
36
37 38 39
2 Tax lawyer’s
35 Made an easy
40
41
42
find
basket
3 French press
43 44 45
46 47
48
37 Unwrap
alternative
impatiently
49
50
51
4 They’re tough
38 “Gadzooks!”
to argue with
52
53
54
55
39 Show since Oct.
5
Downwind
1975
56
57
58 59
6 “Code Switch”
43
Hero of Castile
60
61
62
broadcaster
44 Crystal-filled
63
64
65
7 “Already?”
rocks
8 Important
45 Longest river
woman in le
entirely in
SPRINGING FOR DRINKS | By Brian Thomas
Nouveau
Washington
Across
27 One may lead
43 Valley of the
Testament
47 Cupid, e.g.
to
a
mate
Queens
setting
1 Rimpfischhorn,
9 “Botch-___”
48 Stock holder?
e.g.
28 Javier’s hand
46 Corn syrup brand
(1952 hit song)
50
Keypad key
4 Wave producers, 29 Dominate
48 Labrador’s
10 “Time to split!”
at times
51
Reply of
playtime
quarry
11 Traditional
30 Manchester
feigned
8 Future
Hawaiian
mugful
49 The Summer
innocence
pyroclastic rock
wedding
dress
Olympics
are
31 Nonexistent,
54 Filing pros
13 Head of
held in them
12 Historical
as chances of
Parliament?
55 Tale with scale
records
something
51 Mistrustful
14 Boxer’s brand
happening
57 Suffix with
16 Odometer
52 Carbonized fuel
15 Check figure
colour
increment
32 USS Arizona
53 Advisory group
Memorial
17 Bar tenders?
59
Good Grips
18
Dark
time
in
the
to POTUS
location
kitchen brand
ad biz
19 Adjust for a
54 Buick bling
34 Sensation
second set, say
56 “Hooray for my
Previous Puzzle’s Solution
after getting
20 Pixie
D E L L A
D A L E S
R A T
achievement!”
high?
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 henninger@wsj.com.
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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
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. Miller, Features
& Weekend; Shazna Nessa, Visuals;
Rajiv Pant, Technology; Ann Podd, News
Production; Matthew Rose, Enterprise;
Michael Siconolfi, Investigations;
Nikki Waller, Live Journalism;
Stephen Wisnefski, Professional News;
Carla Zanoni, Audience & Analytics
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Chief Innovation Officer;
Anna Sedgley, Chief Operating Officer
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Kenneth Breen, Commercial;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Chief Commercial Officer;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Suzi Watford, Chief Marketing Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
George Bush’s low approval ratings
and corruption scandals engulfing
House Republicans, and by empowering DCCC chairman Rahm Emanuel to
recruit viable candidates in swing
districts. She contradicted the Washington maxim that you can’t beat
something with nothing; there was
no Democratic version of the 1994
Contract with America. Mrs. Pelosi
did not build a mandate for a national progressive platform, preferring to abide another maxim that you
shouldn’t interfere when your opponent is destroying himself.
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.
You’ll be glad to have three 2017 vintage Provence classics in today’s collection,
all sharing that exquisite pale color and summer berry character fans look for.
40%
30%
20%
10%
2012
2013
2014
2015
2016
2017
Italian winemakers experienced a similarly tiny harvest, with superstar Alberto
Antonini crafting even less than usual of his vibrant, cherry-rich Aglianico. It’s never
tasted better. And, over in Spain’s premier wine region, Ruth Chavarri produced a
supremely pretty Rioja rosado that’s delightful with grilled lamb.
A summer invitation to tickle you pink
This is a special welcome to the WSJwine Discovery Club. Every three months,
we’ll reserve for you an exciting new dozen. We’ll put you down for more rosé, but
we make it really easy to switch cases (you might prefer all reds, or a mix of reds
and whites). You take only the cases you want and each one is a great value at
just $149.99, saving you at least 20%. Plus, every wine comes with expert notes
and our money-back guarantee. Beat the rosé rush — limited cases available.
Nielsen: Americans drank 67% more
rosé in 2017 than they did in 2016
BONUS TRIO
Top-Estate
Provence Rosé
Château Terrebonne’s
award-winning 2017
is presented in the
traditional flûte à
corset Provençal.
(worth $59.97).
ORDER NOW AT wsjwine.com/rose
or call 1-877-975-9463 and quote code 9145009
Offer available to first-time WSJwine Discovery Club members only and limited to one case per household. Wines and offer may vary by state. 100% money-back guarantee applies to all wines. All orders fulfilled by licensed
retailers/wineries and applicable taxes are paid. You must be at least 21 years old to order. Delivery is available to AZ, CA (offer may vary), CO, CT, FL, IA, ID, IL, IN, LA, MA, MI, MN, MO, NC, ND, NE, NH, NJ (offer may
vary), NM, NV, NY, OH, OR, SC, TN, TX, VA, WA, WI, WV, WY and DC. WSJwine is operated independently of The Wall Street Journal’s news department. Full terms and conditions online. Void where prohibited by law.
.
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.
Understanding its aftermath provides a highly revealing window on the forces
that brought about the Renaissance, the Protestant Reformation, and modernity
itself. Speaking to the full magnitude of this world-changing historical moment,
The Black Death: The World’s Most Devastating Plague, taught by celebrated
medievalist Dorsey Armstrong of Purdue University, takes you on an unforgettable
excursion into the time period of the plague, its full human repercussions, and its
transformative effects on European civilization.
Offer expires 05/31/18
TGCU.
/88 1-800-832-2412
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Europe on the Brink of the Black Death
The Epidemiology of Plague
Did Plague Really Cause the Black Death?
The Black Death’s Ports of Entry
The First Wave Sweeps across Europe
The Black Death in Florence
The Black Death in France
The Black Death in Avignon
The Black Death in England
The Black Death in Walsham
The Black Death in Scandinavia
The End of the First Wave
Medieval Theories about the Black Death
Cultural Reactions from Flagellation to Hedonism
Jewish Persecution during the Black Death
Plague’s Effects on the Medieval Church
Plague Saints and Popular Religion
Artistic Responses to the Black Death
Literary Responses to the Black Death
The Economics of the Black Death
The Black Death’s Political Outcomes
Communities That Survived the First Wave
Later Plague Outbreaks: 1353–1666
How the Black Death Transformed the World
The Black Death: The World’s Most Devastating Plague
Course no. 8241 | 24 lectures (30 minutes/lecture)
SAVE UP TO $200
DVD
Video Download
CD
Audio Download
$269.95
$234.95
$199.95
$149.95
NOW $69.95
NOW $49.95
NOW $49.95
NOW $29.95
+$10 Shipping & Processing (DVD & CD only) and Lifetime Satisfaction Guarantee
Priority Code: 160802
For over 25 years, The Great Courses has brought the world’s foremost
educators to millions who want to go deeper into the subjects that
matter most. 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. Today’s TVs
have tiny speakers with weak sound. Our new AccuVoice®
Speaker uses advanced computer algorithms to lift voices
out of background sounds. Dialogue is incredibly clear, even at
low volumes. Only 17" wide, it fits anywhere. Hookup is simple –
one connecting cord. Room-filling home theater sound, with
the clearest voices we’ve heard on any speaker, at any price.
Travel tip: comfortable feet make everything
more fun. The Un-Sneaker combines the comfort
of a sneaker with the style of a shoe. Travel well!
“Great for folks who have trouble hearing the TV.”
Great Sound. Made Simple.
800-291-4349
30-Day Home Trial | Free Shipping | zvox.com
® ZVOX & AccuVoice are registered trademarks of ZVOX Audio.
Free shipping and returns. Order online or call 844.482.4800.
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%$ " &!
""!#)+
0%$ " " &+
"2*
0%$ "0- " &+
. %
&" ""/"
%$ %
+ ""*2
%$ & %
! &
""&"61
. " &
+ ""&"6
. " !!+ "
""&"6-
. " "
""+ +!/
.0 &
& +!3
.0 " " !
""&04
.0 "-% +
!&5
77%$ %
" "
&&08
7 "# &
++ "
+-/!
"204 %
"
"+4+
%) %!
" "&
26!
) "5 "
%"
!
! ""
2&
" &+ "
!&!3.!
.) &
"
!&"!3
) 0 &
! "!
!&"+%!
) "+
!&%%+
60 + !&%0)"
60 "7$& %+
+ !!"6.
$%$ "0 "" !!"1.!
$%$ " ! &
!!"&+
$%$ 0- &
" ++")-
2% 0 %
& #'9 ):: %:(:;( ) ( <:= = $< :(9 = .> 19
%( $,? ):( .:(: ??':( ( ? '::' :? ,? @<
A$,?BC > '(,'(; ?:? = ':( ':: ; < $,?
$< ):: @:? D( <(C > == :( ? < $,? ><,
',? ?(:(? 'E(:(? F?? (; : <
$,? >< ?' < ):: @F' :? < )::C ><
?' :( < (=:( <( ( < $,?G? ????( (',(;
><, :( :( ==(; '',: < D(:(': (=:( %&
' $< ?:? > < : "" E? E(, 2? )$ !!
& (&' & :? :E? <: < ?: = < ?',? ?
:
E : : ( < ? >< ? :? : H,:D :(
> ?,
I' : ?E E - :(: (=:( (',(; ><
?' H,:D ?:,? :( :( '? = :( (E? ?(
:( :( )(D(: ;( '(:' #:E )> /== 0:(
: : '>J'9?': ' I<:(J'9?': '
?'E <( : @C "!"! =:'? : @C "!+ : :?? "" E? 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
...
CapOpAdml r 161.09 +1.51
NA EMAdmr
38.23 +0.28
77.20 +0.27
EqIncAdml
NA ExplrAdml
97.11 +0.85
88.28 +0.63
ExtndAdml
NA
GNMAAdml 10.13 -0.01
GrwthAdml
76.15 +0.36
10.9
HlthCareAdml r 84.58 +0.70
0.2
HYCorAdml r 5.74
...
2.5
25.07 -0.04
InfProAd
8.2
IntlGrAdml 101.48 +0.61
5.7
ITBondAdml 10.82 -0.03
10.3
ITIGradeAdml 9.33 -0.01
0.6
9.64 -0.05
-0.1 LTGradeAdml
2.6 MidCpAdml 195.10 +0.88
MorgAdml
98.06
+0.42
5.2
11.18
...
-2.8 MuHYAdml
13.84
...
10.4 MuIntAdml
11.37
...
2.3 MuLTAdml
10.81
...
MuLtdAdml
NA
15.69
...
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: heard@wsj.com
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.
Документ
Категория
Журналы и газеты
Просмотров
615
Размер файла
20 858 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа