DJIA 21711.01 À 97.58 0.5% NASDAQ 6422.75 À 0.2% STOXX 600 382.74 À 0.5% 10-YR. TREAS. À 12/32 , yield 2.285% OIL $48.75 À $0.86 GOLD $1,249.00 g $2.70 U.S. Adds Venezuela Sanctions as Protests Against Maduro Erupt What’s News Business & Finance oxconn said it would build a $10 billion plant in Wisconsin to make display panels, the company’s first major U.S. investment. A1 F Facebook’s profit jumped 71% in the second quarter, as the company looks beyond its news feed to slot ads. B1 Viacom is out of the running to acquire Scripps Networks, leaving Discovery as the only remaining suitor. B1 The U.K. said it would ban the sale of cars powered by traditional internal-combustion engines by 2040. B3 Boeing earnings beat forecasts, lifting shares 10%, as the firm clamped down on the cost of building jets. B2 Goldman and Fidelity struck a partnership that will enable the Wall Street firm to move deeper into lending. B10 Ford’s net rose 4% on a lower tax rate and financingarm profits, but shares fell on revised 2017 guidance. B3 Berkshire Hathaway won a round against Elliott Management in the competition for Texas utility Oncor. B5 World-Wide Trump said he would bar transgender people from the military, citing “medical costs and disruption” at odds with a Pentagon report. A3 Kushner and lawmakers are discussing criminal-justice changes that could clash with Sessions’ agenda. A4 White House aides and Trump’s friends have urged the president to back off his criticism of Sessions. A4 The EU threatened action against the U.S. over a Russia sanctions bill that would penalize European firms. A5 The EU warned it could still pursue sanctions against Poland even after the president vetoed legislation to replace the Supreme Court. A5 The U.S. leveled sanctions on 13 Venezuelan officials for alleged corruption, human-rights violations and undermining democracy. A6 China is close to completing a long-targeted overhaul of operations at its state-owned enterprises. A7 The Taliban attacked an Afghan army base in southern Kandahar province and killed at least 26 soldiers. A7 Minneapolis tightened rules on police body cameras after the fatal shooting of an Australian woman. A3 Cardinal Pell will plead not guilty to charges of sexual abuse in Australia. A7 CONTENTS Business News B3,5-6 Capital Account.... A2 Crossword.............. A12 Heard on Street. B12 Life & Arts......... A9-11 Markets............. B11-12 Middle Seat............ A9 Opinion.............. A13-15 Sports........................ A12 Technology............... B4 U.S. News............. A2-4 Weather................... A12 World News........ A5-7 > s Copyright 2017 Dow Jones & Company. All Rights Reserved GOP Sets Fallback Plan for Health with plans to move factories to Mexico, underscoring the scale of the economic forces that confront Mr. Trump’s plans. Asia’s sophisticated electronics supply chain and deep labor pool have made it the dominant power in producing devices ranging from TVs to smartphones. Mr. Gou and U.S. officials are banking on the display factory in Wisconsin becoming the cornerstone of a new manufacturing network. Please see PLANT page A2 Republican senators said they recognized passing a “skinny repeal” would essentially postpone tough decisions on health care until later, but they seized on it as potentially their best option as the Senate this week began considering and rapidly discarding other plans, with no alternative appearing likely to attract the 50 Republican votes needed to pass. A measure to repeal most of former President Barack Obama’s 2010 health law, with a two-year expiration date to allow lawmakers to craft a replacement, failed in a 45-55 vote on Wednesday, as seven GOP senators joined all Democrats in voting against it. That came after the latest version of the broader Senate Republican bill was defeated 43-57 on Tuesday, leaving the leaders with few options. Senate Majority Leader Mitch McConnell (R., Ky.) has pitched the skinny repeal plan in recent days. GOP leaders say that passing it could be their only alternative to giving up on a health overhaul, and that the Please see HEALTH page A4 Amazon pushes to staff its expansion..................................... B4 Anthem warns of further ACA cuts....................................... B6 RISING TENSIONS: A two-day strike called by opposition leaders turned violent in Caracas as the U.S. government leveled sanctions on 13 high-ranking Venezuelan officials for alleged corruption, human-rights violations and undermining the country’s democracy. A6 Foxconn to Build U.S. Plant Taiwanese electronics manufacturer to spend $10 billion in first major U.S. investment BY TRIPP MICKLE AND REBECCA BALLHAUS Foxconn Technology Group, which helped cement China’s dominance in electronics manufacturing, said it would build a $10 billion plant in Wisconsin to make display panels used in televisions and other products. The plan, announced Wednesday at a White House ceremony, marks the first major U.S. investment for Taiwan’s Foxconn, the world’s largest contract manufacturer of electronics and the maker of iPhones and other gadgets for Apple Inc. Foxconn, which also owns Sharp Corp., said the factory would be the first in a series of U.S. investments. Company Chairman Terry Gou is betting the U.S. can rebuild an electronics supply chain that largely shifted to China and other lower-cost Asian countries in recent decades. The factory is expected to employ 3,000 people initially and as many as 13,000 people eventually. The state is providing Foxconn with a $3 billion, 15-year incentive package of tax credits, said Wisconsin Gov. Scott Walker. President Donald Trump, who routinely invites CEOs to meet with him at the White House to showcase his emphasis on jobs, has vowed to revive U.S. manufacturing and singled out companies for criticism for building plants outside the country. Yet many major corporations have plowed ahead Samsung Poised to Upset Apple Senate GOP leaders picked up support for a plan to pass a scaled-back bill to repeal a handful of elements in the ACA and open talks with House Republicans. A1 YEN 111.18 By Kristina Peterson, Michelle Hackman and Stephanie Armour CARLOS GARCIA RAWLINS/REUTERS U.S. stock indexes hit records as earnings continued to beat estimates. The Dow rose 97.58 to 21711.01. B11 EURO $1.1735 WASHINGTON—Senate GOP leaders picked up support Wednesday for their plan to pass a scaled-back bill to repeal a handful of elements in the current health law, and then open negotiations with House Republicans to try to bring together their two very different bills. Samsung delivered record-breaking results, positioning the tech giant to top Apple in quarterly profit. B1 The Fed signaled readiness to start shrinking its bondholdings as soon as September, as it held rates steady. A2 Treasury yields fell slightly and the dollar dipped after the central bank issued its policy statement. B11 HHHH $4.00 WSJ.com THURSDAY, JULY 27, 2017 ~ VOL. CCLXX NO. 22 * * * * * AUTOMATION STALKS FINANCIAL ADVISERS Samsung Electronics posted its biggest-ever quarterly profit, leaning on its strength as a supplier of electronics parts, and positioning it to top Apple’s projected quarterly earnings. B1 Quarterly operating proﬁt Apple Samsung $25 billion Algorithms generate investment advice, undercut traditional 1% fees online, over the phone or by Automation is threatening By Jason Zweig, videoconferencing, with fees as one of the most personal busiAnne Tergesen low as zero. The goal is to pronesses in personal finance: adand Andrea Fuller vide good-enough quality at a vice. much lower price. Over the past decade, finan“It’s always been questionable whether or cial advisers in brokerage houses and independent firms have amassed trillions in asnot advisers were earning our money at 1% sets helping individuals shape investment and up,” said Paul Auslander, director of fiportfolios and hammer out financial plans. nancial planning at ProVise Management They earn around 1% of these assets in anGroup in Clearwater, Fla., who says potential nual fees, a cost advisers say is deserved beclients now compare him with less expensive cause they understand clients’ particular sitalternatives. “The spread’s got to narrow.” uations and can provide assurance when The shift has big implications for financial markets fall. firms that count on advice as a source of staIn the latest test of the reach of technolble profits, as well as for rivals trying to ogy, a new breed of competitors—including build new businesses at lower prices. It also Betterment LLC and Wealthfront Inc. but could mean millions in annual savings for Please see ADVICE page A8 also initiatives from established firms such as Vanguard—is contending even the most personal financial advice can be delivered Wall Street’s new frontier.......................................... B1 20 15 10 5 0 2013 ’14 ’15 ’16 *Latest Apple ﬁgure is a July 25 estimate. Sources: S&P Global Market Intelligence; Samsung A School’s Glorious Mystery: How to Spend IPO Riches BY GEORGIA WELLS MOUNTAIN VIEW, Calif.— Simon Chiu has been wrestling with an unusual dilemma: how the Catholic high school he leads should spend one of the most extraordinary windfalls in Silicon Valley. A $15,000 investment by Saint Francis High School five years ago turned into $34 million in March when Snapchat parent Snap Inc. went public. Since the school hit the jackpot, Mr. Chiu has had to weigh competing ideas for what to do with the money. Students speculated they wouldn’t have to pay tuition next year. Parents asked whether annual fundraisers were still necessary. Some adPlease see SNAP page A6 ’17 THE WALL STREET JOURNAL. Evacuate the Sandbox! Japan Is Freaking Out About Fire Ants i i i Stinging insects spook sumo wrestlers, grandmas; industrial-strength ponchos BY ALASTAIR GALE AND SEAN MCLAIN TOKYO—The first invaders, hiding in a cargo container, landed in western Japan on May 20. They possessed powerful fangs to hold their victims down before pumping them with venom. The intruders were caught and promptly destroyed, but as more marauders breached the nation’s borders, televi- A fire ant sion-news shows began fanning concerns of a crippling attack. Workers distributed wanted posters. Inspectors armed with poisoned bait swept through cargo ports with orders to kill entire colonies on sight. Even sumo wrestlers began taking precautions. At the Kobe Municipal Minatojima Kindergarten about 2 miles from the first discovery site, children were banned from the sandbox. “It’s on the most likely path of infiltration,” explained the principal, Fumiko Miki. The miscreants now terrorizing Japan are, in fact, ants. Fire ants, to be precise—a genus famous for its reddishbrown color and for painful jabs delivered from stingers in their abdomens. Please see ANTS page A8 Oracle #1 SaaS Enterprise Applications Revenue #1 Oracle Cloud 14.5% #2 Salesforce Cloud 12.4% 1,000+ Employees Segment, 2015 oracle.com/applications Source: IDC “Worldwide SaaS Enterprise Applications Market Shares, 2015: The Top 15 by Buyer Size,” doc #US41913816, Dec. 2016; Table 4. For the purposes of this report, SaaS enterprise applications include the following application markets: CRM, engineering, ERP, operations and manufacturing, and SCM. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. A2 | Thursday, July 27, 2017 THE WALL STREET JOURNAL. * *** U.S. NEWS CAPITAL ACCOUNT | By Greg Ip Leading Horses to Water in Virginia JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES The Mythical Do-Nothing Presidency THE SWIMMING OF THE PONIES: Wild ponies made their way toward land on Wednesday. Ponies are herded each year into the water so that they move from Assateague Island to Chincoteague Island, Va., where a portion of the herd is sold at auction. Fed Ready to Shrink Bondholdings BY NICK TIMIRAOS WASHINGTON—The Federal Reserve signaled Wednesday that it is ready as soon as September to start slowly shrinking its holdings of more than $4 trillion in bonds it bought to try to buoy the economy. The rate-setting Federal Open Market Committee said it expects to begin shrinking the bondholdings “relatively soon,” using a phrase that often has preceded action at the next policy meeting. The statement provided the group’s most specific indication so far of when officials could initiate plans to taper the reinvestments of maturing Treasury and mortgage securities. Officials offered little indication that several weak inflation readings had altered their plans to raise short-term interest rates once more this year. They voted unanimously to leave their benchmark rate in a range between 1% and 1.25%. The Fed raised rates by one-quarter percentage point in March and again in June, when officials penciled in one more quarter-point move this year. Many analysts expect that increase in December, after the Fed initiates the bondrunoff process this fall. One potential complication would be a congressional Fed to leave rates unchanged Wednesday and were looking for signals about whether the slowdown in inflation this spring might alter its plans for another rate increase this year. The statement issued after a two-day FOMC meeting noted the recent weakness in inflation but didn’t deviate significantly from the statement released after last month’s meeting. After the meeting Wednesday, investors placed a 3% probability of a rate increase in September. standoff over raising the Treasury’s borrowing limit. The Treasury Department employed emergency cashconservation steps that Secretary Steven Mnuchin said should last through September. After that, the U.S. risks being unable to make timely payments on government bills if Congress hasn’t raised the debt ceiling. One way for the Fed to sidestep any fiscal issues would be to announce at its Sept. 19-20 meeting the start date of the portfolio runoff and to set that date a few weeks later, well beyond the debt-limit deadline. Investors had expected the Heard on the Street: Investors may feel left out.......................B12 Continued from Page One The announcement confirms plans reported Monday by The Wall Street Journal. Foxconn was exploring investments in seven states including Illinois, Indiana, Michigan, Ohio, Pennsylvania and Texas. Some of those states, including Wisconsin, were pivotal to Mr. Trump’s victory in 2016, and are home to many of the working-class voters who were seen as key to his win. Mr. Trump also foreshadowed Foxconn’s plans in an interview with the Journal Tuesday. In the same interview, he said Apple Chief Executive Tim Cook had committed to build three big manufacturing plants in the U.S. The remarks thrust Apple into an uncomfortable position, creating expectations it would build manufacturing plants in the U.S. for the first time in decades. Apple declined to comment. A White House official said those plants were separate from the planned Foxconn facility announced Wednesday. Jared Kushner, the president’s son-in-law and senior adviser, who heads the White House’s Office of American Innovation, led discussions with Foxconn in recent months, along with Reed Cordish, assistant to the president for intragovernmental and technology initiatives. Both Messrs. Kushner and Trump met with Mr. Gou over the course of the discussions, a White House official said. Wisconsin’s tax credits are tied to job creation, capital expenditure and purchases of construction materials, a state VCG/GETTY IMAGES PLANT Workers on a Foxconn production line in China. official said. In addition to the potential 13,000 factory workers, state officials said analysts with Ernst & Young estimate the plant would create 22,000 indirect jobs and another 10,000 construction jobs. Mr. Walker said the plant could draw as many as 150 supporting suppliers to Southeastern Wisconsin and nearby states. Mr. Walker said the average salaries for the 13,000 jobs at the factory would be $53,000 annually, plus benefits. The 20 million-square-foot campus would primarily produce high-resolution liquidcrystal displays, known as 8K resolution LCD, used in smartphones and car dashboards as well as TVs. The facility would be located in House Speaker Paul Ryan’s district, which stretches from just south of Milwaukee to the Illinois border, according to Mr. Ryan’s spokesman. The exact location is still being determined. 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: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? CONTACT CUSTOMER SUPPORT. By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat “We’re calling this corridor in Wisconsin the Wisconn Valley,” Mr. Walker said in an interview. Foxconn, based in Taiwan, operates factories across China, where it employs hundreds of thousands of workers, and last year reported about $140 billion in revenue. Mr. Gou started the company as Hon Hai Precision Industry Co. in 1974 making plastic channel-changing knobs for blackand-white television sets. He turned it into the world’s foremost contract manufacturer and one of China’s largest exporters, making products for a range of other customers in addition to Apple. Mr. Gou has wanted to open a U.S. display factory for years in hopes of reducing the costs of shipping large-screen TVs from Asia. In 2014, Foxconn raised the possibility of investing $40 million in manufacturing and research facilities in Pennsylvania. The project never made headway because U.S. local governments didn’t offer terms that were favorable enough, the Journal previously reported. Speaking Wednesday at the White House ceremony, Mr. Gou said the Trump administration’s and Republicans’ support of American-made products gave Foxconn confidence that American manufacturing projects could be a success. “Because of you, we are also committed to creating great jobs for the American people,” said Mr. Gou, who met with Mr. Trump three times during the planning process. Mr. Gou didn’t elaborate on how the displays would be assembled into TVs or other devices. Much of that work is currently done in Asia where an array of suppliers are based, making it easy to ship components to a plant to assemble products. Many TVs sold in the U.S. are assembled in Mexico, so it is possible that the displays made in Wisconsin could be shipped across the border to be installed in TVs that are later shipped back to the U.S. for sale, said Paul Gagnon, who analyzes the TV set market for research firm IHS MarkIt. “As far as what state are you going to build this in to make it most efficient, Wisconsin is a little far from the Mexican border,” said Mr. Gagnon. However, with the cost of resources in China rising, labor shortages mounting and automation increasing, now could be the right time for such an ambitious effort, said David Sullivan, a partner with Alliance Development Group, a Chinese-focused strategy firm that advises technology firms. CORRECTIONS AMPLIFICATIONS A funeral was held Tuesday in Scottsdale, Ariz., for 10 members of a family killed on July 15 in a flood near Payson, Ariz. In Wednesday’s edition, a caption with a U.S. News photo of the funeral incorrectly said they died in Scottsdale. Oliver Schmidt, a former Volkswagen AG compliance executive, is scheduled to appear Aug. 4 at a plea hearing. A Business & Finance article Wednesday about his plans to plead guilty to U.S. charges related to VW’s emissions cheating incorrectly said he is scheduled to be sentenced. Anheuser-Busch InBev brews Goose Island and Wicked Weed brand beers but not Leinenkugel’s. A Heard on the Street article on Wednesday about beer incorrectly said that AB InBev owns all three. Readers can alert The Wall Street Journal to any errors in news articles by emailing email@example.com or by calling 888-410-2667. Six months into his presidency, Donald Trump’s detractors portray him as a do-nothing president with no big wins on issues such as health care, taxes and infrastructure. That may be true if the benchmark is legislation, but that is an incomplete benchmark. To gauge a president’s impact, you have to go beyond the laws he signs to the vast authority he wields through departments and agencies that apply the law. On that score, Mr. Trump is on track to do a lot. On finance, the internet, immigration and drugs, to name just a few issues, Trump appointees have begun nudging the economy and the country in a more conservative, pro-business direction. Whether that is good or bad is to a great extent in the eye of the beholder. What isn’t debatable is that the imperial presidency, after expanding under Barack Obama, remains just as formidable under Mr. Trump. In recent weeks, headlines have been dominated by the Senate’s stop-start efforts to repeal and replace the Affordable Care Act. Away from this drama, Mr. Trump’s Labor Department moved to undo Mr. Obama’s expansion of eligibility for overtime pay, financial regulators dropped efforts to tighten restrictions on banker pay and the Interior Department signaled it would rescind proposed rules on oil and gas fracking on federal land. On Wednesday, Mr. Trump announced transgender individuals couldn’t serve in the military, reversing an Obama-era decision. In Mr. Trump’s first six months, rule making has changed dramatically. The latest update on regulatory actions released last week by the White House Office of Management and Budget contained 1,731 preliminary, proposed or final rules, down 40% from its peak under Mr. Obama in 2011 and a 17-year low, according to Sofie Miller of George Washington University’s Regulatory Studies Center. Many actions taken under Mr. Trump are actually reversals of earlier rules. Ms. Miller says of 66 completed actions at the Environmental Protection Agency, a third were rule withdrawals. This may not yet meet Mr. Trump’s promise to repeal two rules for every new rule written, and, indeed, agencies may find they are legally compelled to have a rule whether they like it or not. N onetheless, the shift is clear. Deciding not to act can be just as consequential as deciding to act, given the discretion presidents have in how they enforce existing laws. Mr. Obama, for example, chose to not deport some classes of illegal immigrants. Mr. Trump’s playbook is similar. His ap- pointees have signaled they will use the discretion allowed under the Dodd-Frank postcrisis regulatory overhaul to loosen the reins on finance. Keith Noreika, the acting comptroller of the currency, has suggested he may reinterpret the “Volcker rule” prohibition on proprietary trading to make it less onerous. Mr. Trump has been criticized for how few officials have been confirmed to key jobs. Time will take care of that, and in the meantime, understaffed agencies can still get plenty done. The Federal Communications Commission is moving quickly to undo the Obama-era decision to regulate internet-service providers like utilities even though two of the commission’s five seats are vacant. M r. Trump may be distracted with investigations into his campaign’s links to Russia or cable news, but that doesn’t matter to regulators who have enormous freedom to act without input from the White House. A shift in the political winds can also prompt agency staff, companies and individuals to fall in line. Amicus Therapeutics, a biotech company, recently applied for approval of a drug treating a rare genetic disorder without the additional clinical trial the Food and Drug Administration had previously demanded, a sign the agency is pushing faster approvals. In Mr. Trump’s first six months, rule making has changed dramatically. Now that the Department of Homeland Security is prioritizing deportation, fewer illegal immigrants are attempting to enter the U.S., judging by reduced apprehensions at the Southwest border. There are of course reallife limits to executive authority. Mr. Trump was ready to tear up the North American Free Trade Agreement until other countries and firms persuaded him that would be rash. And there are still the courts. Mr. Obama’s limits on power-plant carbon-dioxide emissions and his overtimepay rule were both halted by courts, as was Mr. Trump’s initial ban on travel from several majority-Muslim countries. But courts generally defer to regulators under a 1984 Supreme Court precedent called “Chevron deference.” The fruits of Mr. Trump’s presidential actions, like Mr. Obama’s, could be swept away as soon as another president takes office. But for the time being, don’t underestimate how much a president can shape the economy with no input at all from Congress. Not to Act Is to Act Rules under consideration by federal departments and agencies have dropped signiﬁcantly under Donald Trump. Final rules Proposed rules Prerules† 3,000 rules 2,500 2,000 1,500 1,000 500 0 2000 ’02 ’04 ’06 ’08 ’10 ’12* ’14 ’16 Note: Beginning in 2012, only rules likely to be acted on in the next 12 months are included. *Figures are semiannual, except for 2012 when there was only one report. †Rules that have received preliminary study but haven't been formally proposed Source: Regulatory Studies Center, George Washington University THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A3 THE WALL STREET JOURNAL. U.S. NEWS Trial Looms in Case Trump Cited BY QUINT FORGEY BY ZUSHA ELINSON Less than a month after Illinois’s Democratic Legislature overrode Republican Gov. Bruce Rauner’s veto to pass the state’s first budget in more than two years, lawmakers are back in Springfield and at loggerheads with the governor. Mr. Rauner called a special session that began Wednesday focused on approving a new K-12 school-funding formula before the start of fall classes. The $36 billion budget package passed earlier this month included a funding increase of roughly $350 million for K-12 schools, but the state must still establish a mechanism to distribute the new money. The General Assembly approved legislation in May to enact a funding formula allocating funds to the neediest school districts first, but the governor has pledged to use his veto pen to rewrite the bill. The governor has said the new funding formula, outlined in Senate Bill 1, favors the hard-pressed Chicago Public Schools district—the only school district in Illinois that funds its teacher pension system without state aid. Senate Bill 1 would allocate CPS roughly $221 million in extra funds to help cover those pension costs. “The point of the school-reform bill is to ensure every child in Illinois, including kids in Chicago, get the education they deserve,” Mr. Rauner said in a video message last week. “What we’re not here to do is bail out CPS’s mismanaged teacher pension system at the expense of every other child in the state.” Backers of Senate Bill 1 say it attempts to establish adequate funding levels for school districts based on students’ and institutions’ individual needs, and takes into account factors such as districts’ property-tax contribution to school funding. “We have the most inequitable system of school finance in the country,” said Democratic Sen. Andy Manar, the bill’s lead sponsor in the Senate. “The bill is well-vetted and it represents the culmination of four years of public discussion, and there’s only one person who is opposed to it today, and that’s Gov. Rauner.” Officials with the state Board of Education said the new funding formula must be signed into law by early August to give the board enough time to issue vouchers for state aid payments by Aug. 10. SAN FRANCISCO—During his campaign, President Donald Trump repeatedly pointed to the wrenching story of Kate Steinle—a young woman allegedly murdered by an undocumented Mexican—as a prime example of violent crimes committed by illegal immigrants. The man accused of killing Ms. Steinle, Juan Francisco Lopez-Sanchez, will soon be on trial, refocusing attention on an issue that Mr. Trump has continued to emphasize as president. A hearing scheduled for Friday could determine whether the owner of the stolen gun used in the killing will testify. The defendant, a repeat Killing of San Francisco woman, allegedly by an illegal immigrant, played role in campaign felon who was deported five times, has pleaded not guilty to second-degree murder in the death of Ms. Steinle, 32 years old, who was shot as she walked on a pier with her father on July 1, 2015. The single bullet that killed Ms. Steinle ricocheted off the ground before hitting her, ballistics experts have testified. Prosecutors often face skeptical juries in liberal-leaning San Francisco and antiTrump sentiment won’t help, legal experts said. At the same time, the population’s aversion to firearms could benefit the prosecution, they added. Mr. Trump and Attorney General Jeff Sessions frequently cited the case as an example of crimes committed by illegal immigrants as they seek to crack down on sanctuary cities like San Francisco and tighten the country’s borders. The case inspired legislation making its way through Congress called “Kate’s Law,” which would in- MICHAEL MACOR/PRESS POOL/REUTERS School Funding Is New Fight In Illinois Juan Francisco Lopez-Sanchez pleaded not guilty to murder. crease penalties for criminal aliens caught re-entering the country. Overall, illegal immigrants are incarcerated at a lower rate than native-born Americans, according to research by the Cato Institute, a libertarian think tank. Immigration in general ei- WASHINGTON—President Donald Trump will bar transgender individuals from serving in the U.S. military, he said Wednesday, arguing their service brought “tremendous medical costs and disruption”—a conclusion at odds with a report commissioned by the Pentagon last year as part of a comprehensive policy review. “After consultation with my generals and military experts, please be advised that the United States government will not accept or allow transgender individuals to serve in any capacity in the U.S. military,” Mr. Trump tweeted Wednesday morning. “Our military must be focused on decisive and overwhelming victory and cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail. Thank you.” The announcement, which left unclear the status of those currently serving in the military, appeared to take many in the Pentagon by surprise. “The tweet was the first we heard about it,” said a defense official familiar with the matter. White House spokeswoman Sarah Huckabee Sanders said the White House informed Defense Secretary Jim Mattis after the president made his decision on Tuesday. She said Mr. Trump made his decision der in San Francisco,” said Mr. Gonzalez. “If he didn’t fit into the immigrant crime narrative I doubt this case would’ve been charged.” A spokesman for San Francisco District Attorney George Gascón declined to comment. An attorney for Ms. Steinle’s family didn’t return requests for comment. Mr. Trump’s frequent commentary on the case may actually help in Mr. Lopez-Sanchez’s defense, said Anthony Brass, a former San Francisco prosecutor who now works as a criminal defense attorney. “That favors the defense because people find Trump’s views distasteful” in the city, said Mr. Brass. “San Francisco is about as anti-Trump as you get.” Mr. Brass said the jury pool in San Francisco is often skeptical of prosecutors and police. But in this case, one factor may work in the prosecution: the gunplay. “Politically left jurors despise firearms and their negligent use,” he said. City Tightens Body-Camera Rules After Death Minneapolis Mayor Betsy Hodges tightened rules Wednesday on the use of police body cameras following the July 15 fatal shooting of a 40-year-old Australian woman who had called police about a possible assault in her alley. The incident has gained international attention and led to the resignation of Minneapolis Police Chief Janeé Harteau on Friday. “It has been a tough 10 days for the city,” particularly for the family of the victim, Ms. Hodges said. The new policy, which will take effect Saturday, mandates that officers turn on their body cameras as soon as they are dispatched to any call or during any self-initiated activity, including traffic stops. Noncompliance with the policy could result in repercussions ranging from a 10hour suspension to termination of employment. “We need to build and regain our community’s trust,” said interim Police Chief Medaria “Rondo” Arradondo. “The one thing we cannot equip [officers] with is the benefit of the doubt, and they have to gain that through their relationships with the community.” The city rolled out its body camera program about eight months ago, joining departments around the country seeking greater transparency in policing after a series of high-profile deaths of young black male suspects during encounters with police or in po- AARON LAVINSKY/ZUMA PRESS BY QUINT FORGEY Australian Justine Ruszczyk’s fatal shooting by police earlier this month in Minneapolis wasn’t recorded by the officer’s body camera. lice custody. The original Minneapolis policy gave officers more discretion over when to turn on their cameras. “I can tell you this policy enhancement has been in progress for a few months now,” Mr. Arradondo said. “There are some officers, quite frankly, who are not using them enough,” the interim police chief said. Mohamed Noor, an officer with the Minneapolis Police Department for 21 months, shot Justine Ruszczyk two weekends ago after responding to a 911 call from Ms. Ruszczyk just after 11:30 p.m., state investigators said in a news release. Officer Matthew Harrity, who has been with the Minneapolis Police Department for one year, accompanied Mr. President’s Military Ban Causes Storm BY REBECCA BALLHAUS AND BEN KESLING ther has no effect on crime or is linked to a decrease in crime, according a recent analysis of 51 studies on the topic conducted by Charis Kubrin, a criminology professor at University of California, Irvine. Mr. Lopez-Sanchez had been freed from San Francisco County jail on an old drug charge months before the shooting, despite a request from Immigration and Customs Enforcement to the city’s sheriff’s department that would have enabled the federal agency to take him into custody. The city doesn’t honor these requests from ICE. Mr. Lopez-Sanchez’s public defender, Matt Gonzalez, said in an interview that the shooting was an accident. Mr. Gonzalez said his client found the gun after it had been stolen from a U.S. Bureau of Land Management ranger’s parked vehicle. “I’m unaware of a ricochet ever being charged as a mur- Transgender Troops A 2016 Rand Corp. study found that extending transition-related care to transgender soldiers—who make up a small fraction of active duty troops—would have a minuscule effect on health-care spending. Estimated number of transgender personnel in the U.S. military $2.4 million to $8.4 million a year Estimated increase in Military Health System costs if the military extended gender transition– related care to personnel Active duty 2,450* Reserve 1,510† $6 billion Total active duty health-care expenditures in FY2014 *Out of a total active duty force of 1.3 million. †Out of a total reserve force of 831,992. Source: Rand Corp. THE WALL STREET JOURNAL. with the “consultation” of his national security team. “Sometimes you have to make decisions, and once he made a decision he didn’t feel it was necessary to hold that decision,” she told reporters at a White House news briefing. Ms. Sanders said she couldn’t answer questions about whether transgender individuals currently serving openly would be thrown out of the military, saying the policy hasn’t been formed yet. “That’s something that the Department of Defense and the White House will have to work together on as implementation takes place,” she said. Ms. Sanders said she expected the Pentagon to take the lead on forming the policy. Former Defense Secretary Ash Carter, who opened the department to transgender troops, said the decision would hurt the military. “There are already transgender individuals who are serving capably and honorably,” he said. “This action would also send the wrong signal to a younger generation thinking about military service.” The decision was criticized by Republican and Democratic lawmakers and by civil-rights groups. Joshua Block, a senior staff attorney with the Ameri- can Civil Liberties Union, called the move “outrageous and desperate.” Rep. Adam Smith, the top Democrat on the House Armed Services Committee, called the move an “unwarranted and disgraceful attack on men and women who have been bravely serving their country.” Sen. John McCain (R., Ariz.), chairman of the Senate Armed Services Committee, said Mr. Trump’s tweet was “yet another example of why major policy announcements should not be made via Twitter,” calling the statement unclear. “Any American who meets current medical and readiness standards should be allowed to continue serving,” Mr. McCain said. The decision drew praise from conservative groups while igniting a storm of criticism from many U.S. actors and celebrities. In June 2016, the Obama administration moved to lift the U.S. military’s longstanding ban on transgender individuals serving openly and began to establish a process for enlisted personnel to undergo treatment while serving. A report by Rand Corp. commissioned by the Pentagon on the effects of allowing transgender individuals to serve openly, found that the policy shift would have little to no impact on military cohesion or readiness, and that costs would be negligible. Noor on the call, and was startled by a loud sound near the squad car, according to investigators. Mr. Harrity told investigators Ms. Ruszczyk approached the driver’s side window of the vehicle, and Mr. Noor discharged his weapon, striking her through the open driver’s side window, the release said. Mr. Noor has declined to be interviewed by investigators. Ms. Ruszczyk, who was engaged to be married and was already using her fiancé’s last name of Damond, died of a single gunshot wound to the abdomen, the investigators said. The officers’ body cameras weren’t turned on until after the shooting, and both Mr. Harrity and Mr. Noor have been placed on administrative leave. A4 | Thursday, July 27, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL. U.S. NEWS Kushner, Attorney General Split on Crime Mandatory minimum sentences and other issues divide Trump’s son-in-law, ex-senator President Donald Trump’s son-in-law and senior adviser, Jared Kushner, and some Republican lawmakers are discussing potential changes to the criminal justice system, including to mandatory minimum sentencing, that could conflict with Attorney General Jeff Sessions’ tough-on-crime agenda. Mr. Kushner met this month with House Judiciary Chairman Bob Goodlatte (R., Va.), continuing a dialogue with lawmakers that began in March with Senate Judiciary Chairman Chuck Grassley (R., Iowa) and Sens. Dick Durbin (D., Ill.) and Mike Lee (R., Utah). Mr. Kushner also has huddled with leaders of organizations involved in criminal justice. “He’s quietly listening to all sides, including outside groups, to understand what’s possible and to ultimately be able to make a recommendation to the president,” said a White House official familiar with the meetings. “It’s a personal issue to him, given his father spent time in prison. He got to know the families and got to see what’s wrong with the federal prison system.” Mr. Kushner’s father, Charles Kushner, a real-estate executive, was sentenced in 2005 to two years in prison after pleading guilty to tax evasion. ALYSSA SCHUKAR FOR THE WALL STREET JOURNAL BY BETH REINHARD Jared Kushner has discussed curbing long mandatory-minimum sentences, while Attorney General Jeff Sessions favors them. Mr. Kushner’s discussions have included a range of issues, including curbing long mandatory-minimum sentences for nonviolent drug offenders. In contrast, Mr. Sessions is promoting mandatory minimums as a pivotal crimefighting tool that helps prosecutors get cooperation from suspects and keeps dangerous offenders behind bars. Mr. Kushner has met with Mr. Sessions and is trying to find common ground, according to the White House official. However, Mr. Sessions appears to have lost favor with the president for recusing himself from a probe into Russian interference in the 2016 election. Mr. Trump has taken to berating Mr. Sessions publicly. On Monday, Mr. Trump referred to Mr. Sessions as “our beleaguered A.G.” “Everyone does see it as a challenge that some people in the White House and Congress want to do criminal-justice re- form but are at odds with actions the attorney general is taking,” said Greg Mitchell, a federal lobbyist who has worked on criminal-justice issues for years, representing groups that favor shorter sentences. The attorney general recently scuttled an Obama administration policy discouraging prosecutors from bringing charges that carry long sentences for nonviolent, lowerlevel drug offenders. As an Alabama senator last year, Mr. Sessions helped doom bipartisan legislation backed by Sens. Grassley, Durbin and Lee that would have limited mandatory-minimum sentences for less-dangerous drug offenders. Mr. Sessions’ policies are backed by police unions and prosecutors’ groups. “We’re not talking about getting arrested with a joint. We’re talking about massive quantities of drugs, and there Aides, Friends Urge Trump to Lay Off Sessions Attorney General Jeff Sessions was about 45 minutes into a routine meeting Wednesday morning at the White House with fellow cabinet members when President Donald Trump, from another part of the building, took to Twitter. “Why didn’t A.G. Sessions replace Acting FBI Director Andrew McCabe,” whom the president accused of being aligned with former Democratic presidential nominee Hillary Clinton, his message read. “Drain the Swamp.” It marked the third consecutive day that Mr. Trump used Twitter to attack the leadership of the Justice Department. Privately, friends and White House aides have urged Mr. Trump to back off, but he has shown no sign of letting up, and he and Mr. Sessions haven’t yet met to see if they can resolve differences. “We’ve seen some of the tweets increase, and all I can tell anyone is I don’t understand it. I’m not part of it, and I’m a little befuddled by it,” said Rep. Chris Collins (R., N.Y.), the first member of Congress to endorse Mr. Trump in the 2016 campaign. White House aides describe an impasse: Mr. Trump isn’t about to fire his attorney general, but he also wouldn’t be sorry if Mr. Sessions were to quit. In the past week, Mr. Sessions’ chief of staff, Jody Hunt, told White House Chief of Staff Reince Priebus that the attorney general wasn’t going to resign, according to a person familiar with the conversation. Mr. Sessions’ departure could upend the investigation led by special counsel Robert Mueller into Russian interference in the 2016 presidential HEALTH GOP Tax Principles Set to Be Released Continued from Page One bill could be improved in Senate-House talks. With no other plan capable of unifying Republicans, the skinny repeal plan gained traction with senators from the party’s conservative and centrist wings, as well as rank-andfile Republicans who didn’t want the health-care push to die in their chamber. The House narrowly passed a far more sweeping bill in May. “I’ve been saying for months we should start with what we agree on, and try to build up,” said Sen. Rand Paul (R., Ky.). “The previous strategy was to start big and try to have the whole kitchen sink in there.” The proposal under discussion would likely end the muchdebated requirement under the Affordable Care Act that most people have insurance or pay a penalty. It would also overturn the requirement that most employers provide health insurance to their workers. But it would leave in place much of the broad shape of the Obama administration’s signature health law, including the expansion of the Medicaid program for low-income Americans in 31 states; regulations that require insurers to cover people regardless of their health status; and a mandate that most health plans cover a raft of specific benefits such as maternity care. Republicans haven’t been able to agree on how, or whether, to modify or cut those elements. Insurers and Democrats reacted with alarm to the idea Top congressional Republicans and Trump administration officials plan to release their tax-policy principles at the end of this week, said two people briefed on those discussions. The plan will include highlevel principles, said one of the people. An administration official said the statement will reflect areas of agreement in the group. The so-called Big Six officials on tax policy have been meeting for months and gathered Wednesday evening, in what was expected to be their final session before the congressional summer recess. It is unclear what concluthat Republicans might pass the scaled-back bill. Health insurers warn of the danger of ending the individual mandate without other provisions to prod young, healthy people to buy insurance. Without such efforts, individual insurance markets have in the past gone into meltdowns known as “death spirals,” they say, meaning cycles of rising premiums and shrinking enrollment, leaving insurers covering the sickest, costliest patients. Some GOP senators, including Shelley Moore Capito of West Virginia and Mike Lee of Utah, were undecided on the idea Wednesday, and it isn’t clear it will have the votes to pass. Mr. McConnell presides over a narrow 52-48 Republican majority and can lose no campaign and whether the Trump campaign colluded in that. Both Mr. Trump and Russia have denied doing so. According to a January report from the U.S. intelligence agencies, Russia’s interference was directed from the highest levels of its government. Its tactics included hacking state election systems, infiltrating and leaking information from party committees and political strategists, and disseminating through social media and other outlets negative stories about Mrs. Clinton and positive ones about Mr. Trump, the report said. Driving Mr. Trump is a conviction that Mr. Sessions’ decision last year to recuse himself from the Russia probe is now fueling the investigations, White House aides and friends of the president said. White House spokeswoman Sarah Huckabee Sanders, in a press briefing Wednesday, suggested Mr. Trump hadn’t given up on Mr. Sessions. One White House official said Wednesday that the open criticism of Mr. Sessions is eroding morale inside the administration and making it sions they will reach and how those will go beyond what they have already said. The broad strokes—lower tax rates in a deficit-neutral tax-code revamp—have generally been agreed on for months. What isn’t clear yet is how the principles released this week will address the House GOP’s plan for border-adjusting the corporate tax. House members have been sticking to that idea—taxing imports and exempting exports—even though it has faced heavy criticism from senators and retailers. The six officials are Treasury Secretary Steven Mnuchin, White House economic policy chief Gary Cohn, House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Chairman Kevin Brady. When Congress returns, lawmakers expect to start the more-detailed tax-policy work. Members of the group have said they hope to pass a new law by the end of the year. Rep. Mark Meadows (R., N.C.), head of the conservative House Freedom Caucus, said he welcomed the principles as a way of clarifying where Congress is heading, but that doesn’t mean House members will accept it. “History shows you that when six people get together and agree on anything, it doesn’t necessarily make for 218 votes in the House,” he said Wednesday. —Richard Rubin more than two Republicans, with Vice President Mike Pence breaking a potential 50-50 tie. The proposal appealed to some centrist Republicans, who have been uneasy over $756 billion in cuts to federal Medicaid funding that was part of earlier GOP proposals. Sen. Dean Heller (R., Nev.) said he appreciated that the skinny repeal didn’t seek to make cuts to federal funding for Medicaid and viewed it “favorably” on Wednesday. But Mr. Heller and other senators acknowledged that passing such a measure would open up unpredictable negotiations with House Republicans, who would likely lobby to return Medicaid cuts and other conservative measures. The House could take up and pass the skinny repeal bill as is, if it clears the Senate, but that appears unlikely as a first step. Rep. Mark Meadows (R., N.C.), the chair of the conservative House Freedom Caucus, said he would oppose such a move. Health and Human Services Secretary Tom Price signaled support for the skinny repeal plan Wednesday, urging lawmakers to vote in favor of any measure that stands a chance of passing. In a move that could siphon support for the skinny repeal proposal, a group of five GOP governors and five Democratic governors pressed senators to abandon the idea. The governors wrote in a letter to Senate leaders Wednesday night that a skinny repeal plan is “expected MICHAEL REYNOLDS/EUROPEAN PRESSPHOTO AGENCY BY PETER NICHOLAS AND BYRON TAU Attorney General Jeff Sessions has faced mounting criticism. tougher to recruit new staff. Sen. Lindsey Graham, a South Carolina Republican, unleashed a flurry of criticism of Mr. Trump’s behavior in remarks to reporters on Capitol Hill Wednesday, saying that publicly berating his own attorney general was unseemly, inappropriate and belittling and humiliating. Sen. John Cornyn (R., Texas) said Mr. Trump “ought to sit down and talk with the attorney general man-to-man and work it out.” Mr. Trump could attempt to make a recess appointment during a break in the Senate’s schedule, such as the one in mid-August. But in recent years, the Senate has been holding what are called pro forma sessions rather than adjourning, in part to prevent the president from making such appointments. —Aruna Viswanatha contributed to this article. to accelerate health plans leaving the individual market, increase premiums, and result in fewer Americans having access to coverage.” They instead urged senators to work with governors and colleagues from both parties to shore up the individual insurance market. Attacking the proposal, Sen. Elizabeth Warren (D., Mass.) said the skinny plan would boost premiums for many Americans, in part because Senate passage would usher in a period of uncertainty. “The Senate Republicans will be responsible for every dollar of premium increases that occur over the weeks and months that follow, as this bill sits in a conference with the House and insurance companies jack up prices because they don’t know what they might be required to cover,” Ms. Warren said. About 15 million fewer people would have coverage in 10 years if the ACA individual mandate is repealed, according to an estimate last year from the nonpartisan Congressional Budget Office. Premiums on the individual market would increase 20% because healthier and younger people, who help offset the costs of older and sicker consumers, would likely drop coverage, the CBO found. A new CBO analysis released Wednesday night, which was requested by Democrats based on reports of the skinny repeal plan, pegs the number of additional uninsured at 16 million over the next decade. —Natalie Andrews, Anna Wilde Mathews and Janet Hook contributed to this article. are always guns and violence associated with that,” said Chuck Canterbury, national president of the Fraternal Order of Police. “I would be surprised to see any legislation related to drug crime pass muster with the attorney general or the president.” Critics of mandatory minimums say they contribute to disproportionate numbers of African-Americans serving time in costly prisons without improving public safety. A number of states, including several led by Republicans, have revamped or eliminated mandatory-minimum sentencing laws that became popular during the “war on drugs” in the 1980s. Mr. Grassley, in a recent speech outlining his agenda at the American Enterprise Institute, a conservative think tank, said he is awaiting input from the White House before reviving the sentencing bill. Supporters cast it as a bipartisan initiative that demonstrates the growing consensus around reducing the prison population. “It is consistent to be both tough on crime and still support sentencing reform,” Mr. Grassley said at AEI. “Passing a sentencing bill remains a top legislative priority for me as chairman.” Advocates of less-punitive drug-sentencing laws view Mr. Kushner as their chief ally in the White House. However, Mr. Kushner’s responsibilities are broad, from Middle East politics to overhauling the federal bureaucracy. He has also been drawn into the Russia probes. WASHINGTON WIRE CONGRESS Scalise Discharged From Hospital House Majority Whip Steve Scalise (R., La.), who was shot at a congressional baseball practice last month, has been discharged from a Washington hospital and will now undergo inpatient rehabilitation. MedStar Washington Hospital Center said Mr. Scalise “has made excellent progress in his recovery from a life-threatening gunshot wound six weeks ago.” The hospital said the congressman was discharged on Tuesday and is “now beginning a period of intensive inpatient rehabilitation.” Mr. Scalise was shot at a baseball field in Alexandria, Va., on June 14. The gunman, James T. Hodgkinson, was killed by police. Mr. Scalise was shot in the hip, and the wound caused extensive internal damage, leaving him near death when he got to the hospital, according to his doctors. Mr. Scalise underwent multiple surgeries, and new concerns of infection sent him back to the intensive care unit at MedStar earlier this month. —Sharon Nunn STATE DEPARTMENT Brownback Is Choice For Ambassador Role The White House on Wednesday announced that President Donald Trump plans to nominate Kansas Gov. Sam Brownback to serve as ambassador-at-large for international religious freedom. If confirmed by the Senate, he will run the State Department’s Office of International Religious Freedom. Kansas officials expect Mr. Brownback to step down when he is confirmed, but his office wouldn’t discuss his plans Wednesday evening. Mr. Brownback’s fellow Republicans called the job a good fit, and some conservative religious groups had pushed for the appointment. Mr. Brownback’s departure would automatically elevate fellow conservative Lt. Gov. Jeff Colyer to governor. Mr. Brownback, 60 years old, served in the Senate before his election as governor in 2010. He was an early advocate of U.S. action to stop genocide in Sudan’s Darfur region, and visited Congo and Rwanda to decry humanitarian crises. In a tweet, Mr. Brownback called religious freedom “the first freedom” and said he was honored “to serve such an important cause.” —Associated Press THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A5 WORLD NEWS EU Cautions U.S. Over Russia Sanctions Bloc says it will retaliate if Washington fails to resolve its concerns over penalties bill Trade Fallout Commerce between the European Union and Russia, which sank after Brussels imposed sanctions in 2014, risks falling below 2009 lows if European companies are targeted by U.S. penalties. €250 billion BY LAURENCE NORMAN Sanctions 2014 200 STEPHANIE LECOCQ/EUROPEAN PRESSPHOTO AGENCY BRUSSELS—The European Union stands ready to act against the U.S. within days if the bloc’s concerns about American legislation to impose new sanctions on Russia aren’t addressed, the top EU official said. The bill, which the House of Representatives passed Tuesday, would let President Donald Trump penalize European companies working on the development, maintenance, modernization or repair of energy export pipelines. European officials, while not specifying what actions they could take, say that poses a threat to a range of regional energy projects. “The EU is fully committed to the Russia-sanctions regime,” European Commission President Jean-Claude Juncker said Wednesday, adding that “close coordination among allies are at the heart of” making the measures effective. Mr. Juncker said the bill could have “unintended unilateral effects” on the EU’s energy security interests and that the bloc will respond swiftly if its concerns aren’t addressed. “ ‘America First’ cannot mean that Europe’s interests come last,” Mr. Juncker said. American lawmakers tried European recession 150 Imports from Russia 100 Exports to Russia 50 0 2006 2010 EU Commission President Juncker spoke Wednesday in Brussels. Note: € 1 billion = $1.17 billion Source: European Commission to ease Europeans’ concerns, adapting draft legislation to say that any sanctions on pipeline projects would be undertaken “in coordination with allies of the United States,” said Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee. But that wasn’t enough for European leaders, who said they would closely follow the U.S. legislative process and be ready to act. European officials have long chafed at U.S. legislation which seeks to target foreign companies with sanctions, saying that runs against international law. Mr. Trump has expressed skepticism about Russian interference and opposes a portion of the bill that the White House says infringes on his executive authority. Russia also denies it. The bill was aimed partly at forcing Mr. Trump to seek congressional approval before lifting restrictions. The compromise measure must now pass the Senate, which approved a different version of the bill last month. Lawmakers could make further changes to the legislation before presenting it to Mr. Trump. The U.S. leader told The Wall Street Journal Tues- They also worry Mr. Trump could use the legislation as leverage to pressure European governments on other issues, like trade. Austrian Chancellor Christian Kern slammed the bill as an unacceptable “mixing of political interests with economic ones, at the cost of European jobs.” Against Mr. Trump’s wishes, lawmakers passed legislation in an overwhelmingly bipartisan vote Tuesday that would punish Russia after the U.S. intelligence community concluded that Moscow had sought to interfere in the 2016 presidential election. 2016 THE WALL STREET JOURNAL. day that he hasn’t yet decided whether to sign it into law. It could become law if it goes unsigned for 10 days. The sanctions would come on top of others passed by the U.S. and EU after Russia’s intervention in Ukraine and its annexation of Crimea in 2014. EU officials say the bloc has paid a higher price from those broad economic sanctions since EU-Russia trade was greater than U.S. economic ties before Ukraine crisis. The EU and the U.S. have tied the easing of sanctions to Russia’s implementation of the 2015 Minsk cease-fire and peace accords. The bloc recently extended its sanctions for an extra six months. The EU acknowledged U.S. lawmakers had made a number of changes to the draft bill to lower the risk of American legal action against European firms. German Foreign Ministry spokesman Martin Schaefer said lobbying from the EU and from Germany had helped improve the draft legislation. Among the changes was a higher threshold of Russian involvement in projects which could lead to European companies being sanctioned, with the latest version setting a 33% threshold for crude-oil projects, instead of the original 10%. And it now applies only to new investments in projects, not to existing ones. The new bill says the president, in making his decision, should “continue to uphold and seek unity with European and other key partners.” The EU hasn’t spelled out what action it would take if the legislation takes effect without further changes. Officials said any action wouldn’t come until a final bill is enacted. Additional retaliation could follow if the legislation is implemented in an aggressive way, they said. One possible channel for retaliation is a complaint at the World Trade Organization. The EU also could apply legislation drawn up over a decade ago—the so-called blocking statute—which orders European companies to not obey U.S. extraterritorial sanctions. Spain’s Rajoy Testifies In Trial AGENCJA GAZETA/REUTERS BY JEANNETTE NEUMANN Protesters demonstrated in Wroclaw on Tuesday against government efforts to replace the entire Supreme Court, a move that prompted an EU threat of sanctions. Bloc Threatens Poland Over Court Standoff The European Union warned it could still pursue unprecedented sanctions against Poland, trying to pressure the government as both sides weigh By Emre Peker in Brussels and Drew Hinshaw in Warsaw their next moves after the president vetoed legislation to replace the entire Supreme Court. The European Commission— the bloc’s executive—on Wednesday warned that democratic rule of law remains at risk in Poland, even after President Andrzej Duda vetoed legislation that would have retired every high court judge. The Commission gave Warsaw a month to respond to recommendations that would bring Polish law back in line with EU norms. Poland and the EU are in an extraordinary standoff over whether the former communist country can put virtually the entire judiciary under the control of the justice minister and remain a full-fledged member of the union. Last week, Poland’s parliament approved three laws that would have allowed the government to directly or indirectly restaff the judicial bench, from the Supreme Court down to small, local courts. Mr. Duda vetoed the heart of that legislation, but allowed the government to now EU Urges Dismissal Of Legal Challenge To Migrant Quotas Slovakia and Hungary’s legal challenge against a European Union program to distribute migrants from Africa and the Middle East more evenly across the bloc should be dismissed, the top lawyer for the European Court of Justice advised, in a decision that is likely to deepen divisions over the EU’s response to the crisis. Bratislava and Budapest, which has been supported by Poland, argued the EU’s 2015 decision to introduce a quota system to relocate migrants across the bloc was unlawful. But the court’s top lawyer, Yves Bot, on Wednesday said that quota system was a propor- tionate response to the crisis and would help Italy and Greece, the two countries that have been at the forefront of the crisis. The court is expected to issue its final ruling on the issue this year. The EU’s plan was controversial in Central and Eastern Europe, which has had little experience of absorbing Muslim migrants. Governments said protecting Europe’s borders should come first. “We continue to interpret the decision on the mandatory resettlement quota as a decision that contravenes European law,” Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó said. “The primary task, duty and responsibility of Hungary’s government is to protect the security of the country and of the people of Hungary, and accordingly it will continue to do everything in its power to ensure that illegal immigrants cannot come here,” he added. The Slovak foreign ministry said the opinion isn’t binding, suggesting it could be ignored in the final ruling. However, most court opinions are upheld in the final rulings. The court case comes two years after the European Commission, the EU’s executive arm, put forward a binding plan to distribute across the EU as many as 120,000 migrants who were living in Italy and Greece. Fewer than 25,000 people have been moved under the EU’s plan. The commission has separately started legal proceedings against Hungary, Poland and the Czech Republic for refusing to accept any asylum seekers under the relocation plan. —Valentina Pop decide who appoints judges to lower, criminal courts. His veto hasn’t allayed fears in Brussels. The laws “would have a very significant negative impact on the independence of the Polish judiciary and would increase the systemic threat to the rule of law,” the commission’s first vice president, Frans Timmermans, said. The EU has limited room to maneuver in its showdown with Poland. The ruling party, Law and Justice, says the reforms are needed to purge officials who entered public life during the tainted communist era. Previous warnings have done little to sway the government. The bloc’s most severe punishment—stripping EU voting rights—requires a unanimous decision of all the countries in the bloc, which looks unlikely. It must also weigh how much to criticize the country and face accusations of outsider meddling or to remain silent and take flak for that. “The EU was designed to shame its members into compliance, but shame is obviously not working for Poland,” said Roman Rewald, president of the Lewiatan Mediation Center, a legal institution in Warsaw. The government remained defiant following the commission’s statement. The ruling party said its changes were in line with the Polish constitution. “We will not tolerate the pressure and blackmail of EU officials,” it tweeted. A majority of Poles oppose the overhaul: In one poll last week, 55% of voters wanted Mr. Duda to veto the bill. But at the same time, the ruling party is Poland’s most popular, with about a third of voters behind it. Many are Poles who say they resent the EU’s attempts to guilt their nation into becoming a liberal democracy. The commission said it is ready to launch an effort to punish Poland, which would begin with asking EU governments to formally warn Poland to reverse course. The process could eventually escalate to a discussion of stripping Poland of its EU voting rights. But while EU governments would need a four-fifths majority for an initial formal warning, sanctioning Poland would require unanimity. Hungary has already said it would veto measures against Poland, whose vision for what a European democracy should look like is shared by Budapest. Mr. Duda has called for a revised Supreme Court bill and said this time he would like to help write it. It isn’t yet clear if the new bill would also serve to expand government control of the judiciary or help Poland address EU concerns. “They’re determined to push forward on this,” said Paul Ivan, senior policy analyst at the European Policy Centre in Brussels. MADRID—Spanish Prime Minister Mariano Rajoy testified in court on Wednesday as a witness in a graft trial, focusing attention on the corruption allegations that have plagued his conservative political party and cost him votes. Lawyers tried to discern what Mr. Rajoy knew about the finances of his center-right Popular Party when he was a senior party official in the early 2000s, the period the trial centers on. During nearly two hours of testimony, Mr. Rajoy said he had no knowledge of the alleged illegal financing scheme that helped fund the party. Mr. Rajoy responded repeatedly that his responsibilities as a party official had been political, not financial. “I have never dealt with economic matters in the party,” he said. Mr. Rajoy’s court appearance complicates the prime minister’s efforts to focus Spaniards’ attention on the robust economic growth that has taken place on his watch rather than on continuing corruption investigations involving current and former members of his party. Mr. Rajoy was called as a witness in what is known as the “Gurtel” case and hasn’t been accused of wrongdoing. The image of a sitting prime minister testifying in court in a corruption trial, however, was one Mr. Rajoy and his party had sought to avoid. Mr. Rajoy had asked to testify before a three-judge panel via videoconference, but the court rejected his request. Corruption has been a top concern for Spaniards for several years; they named it as the second-greatest problem facing the country after unemployment in a June survey by Spain’s Center for Sociology Research. Mr. Rajoy has tried to emphasize Spain’s economic comeback. The economy grew 3.2% in 2015 and 2016, one of the fastest rates among major eurozone countries. Growth is expected to top 3% again this year. Mr. Rajoy became prime minister in 2011, when Spain was in recession, and was reelected in 2016 but lost his parliamentary majority. Despite overseeing a weak minority government, Mr. Rajoy has been able to approve the 2017 budget with support from smaller parties. THE WALL STREET JOURNAL. A6 | Thursday, July 27, 2017 WORLD NEWS More high officials are sanctioned in bid to get Maduro to cancel vote skirting congress BY JOSÉ DE CÓRDOBA The U.S. government leveled sanctions on 13 highranking Venezuelan officials for alleged corruption, humanrights violations and undermining the country’s democracy, days before a scheduled vote for a constitutional assembly that many believe would deal a death blow to Venezuela’s democracy. The officials targeted by the U.S. Treasury on Wednesday include Tibisay Lucena, the head of the country’s electoral agency, as well as the chiefs of the Venezuelan Army, National Guard and National Police. The U.S. also blacklisted the finance chief of state oil firm Petróleos de Venezuela; Elías Jaua, a leading politician close to President Nicolás Maduro; and Erick Malpica Flores, a nephew of Venezuela’s powerful first lady, Cilia Flores. Under the sanctions, the officials’ U.S. assets are frozen and their U.S. visas revoked. The measures also prohibit U.S. citizens and institutions from doing business with them. The U.S. government warned that any individuals who become members of the constituent assembly to be elected on Sunday risked being added to the U.S. sanctions list. “The United States will not ignore the Maduro regime’s ongoing efforts to undermine democracy, freedom, and the rule of law,” said U.S. Treasury Secretary Steven Mnuchin. Mr. Maduro responded to the U.S. move with defiance in a broadcast to the nation on Wednesday evening. “We will never kneel, and our vengeance will be our victory on Sunday July 30th,” he said. The newest round of sanctions comes days after U.S. President Donald Trump called Mr. Maduro a “bad leader who dreams of becoming a dictator.” The Trump administration says Mr. Maduro’s push to create the assembly—to be tasked with rewriting the constitution—is the final step toward a full dictatorship. “We see July 30th as a critical line that, if crossed, could be the end of democracy in Venezuela,” a senior Trump administration official said. The U.S. put eight Venezuelan Supreme Court justices under similar sanctions in May after the court issued rulings that gutted the country’s opposition-led congress. Vice CARLOS GARCIA RAWLINS/REUTERS U.S. Raises Pressure On Venezuela Demonstrators gathered at a roadblock in Caracas on Wednesday during a strike called to protest President Maduro’s government. President Tareck El Aissami was placed on a U.S. Treasury blacklist in February for allegedly aiding drug traffickers. U.S. authorities have frozen “hundreds of millions of dollars” in assets linked to Mr. El Aissami, a senior U.S. official said Wednesday. Mr. Jaua, the Venezuelan official in charge of creating the constituent assembly, appeared unmoved. “The Empire’s sanctions are an acknowledgment of my 34 years of struggle for national sovereignty and for the poor of this Mr. Trump and other world leaders have called on Mr. Maduro to abandon the vote, which polls show 80% of Venezuelans oppose. Last week, more than 7.5 million people voted in an unofficial referendum whose results showed overwhelming opposition to creating the new assembly. Mr. Maduro dismissed that referendum as a nonbinding internal consultation by the opposition, but as the president and his aides move ahead with their plans to hold Sunday’s vote, anxiety about the Earth. We will overcome!,” he wrote on his Twitter account. Mr. Maduro’s efforts to convene a constituent assembly are being boycotted by Venezuela’s opposition coalition. Once elected Sunday, the assembly is set to become the country’s supreme political institution, with power to rewrite the constitution and dissolve the opposition-dominated congress. The opposition has called a two-day general strike—its second in as many weeks—starting Wednesday in an attempt to stop the constituent assembly. WORLD WATCH Ill Child to Get Care in Hospice EUROPEAN UNION Court Keeps Hamas On Terrorism List BY JOANNA SUGDEN AND AMANDA COLETTA RUNGROJ YONGRIT/EUROPEAN PRESSPHOTO AGENCY The EU’s top court ruled Wednesday that Palestinian group Hamas should be kept on the bloc’s terror list, reversing a lower court decision, but said the striking down of a Sri Lankan terror-group listing was appropriate. The decisions won’t have an immediate effect. Both groups were relisted on new grounds by the EU earlier this year and any funds connected to the groups remain frozen. However, the earlier ruling on Hamas in 2014 had added to tensions with Israel and raised questions about the bloc’s counterterror work. In the case of Hamas, the European Court of Justice said the lower court’s 2014 decision wrongly demanded stronger evidence from EU member states to keep the group on the terror list. “We welcome the ECJ ruling, which confirmed the legality of Hamas listing in 2010-2014,” the EU embassy in Israel said in a statement. “The EU continues to consider Hamas a terrorist organization; measures restricting its activity remain in force.” For the Tamil Tigers, the court said the EU didn’t explain why it believed the Sri Lankan group, following its military defeat in 2009, continued to pose a terror risk. The court therefore confirmed the lower court’s decision to an- SHELLEBRATION: Children release turtles to the sea on Wednesday ahead of Thailand’s King Maha Vajiralongkorn’s 65th birthday on Friday, part of a marine-conservation effort. nul the freezing of Tamil Tiger funds from 2011 to 2015. —Laurence Norman UNITED KINGDOM Economy Grew 0.3% In Second Quarter Economic growth remained subdued in the second quarter, as a modest revival in consumer spending offset shrinking industrial production, a sign that a hoped-for shift toward export- adverse international reaction has been high inside the Miraflores Presidential Palace, according to people close to the ruling Socialist Party. Trump administration officials said expanded sanctions on the country’s vital oil industry, which provides 95% of Venezuela’s foreign exchange, were possible if Mr. Maduro carried out his plans. “All options are on the table,” the senior official said. —Ian Talley, Kejal Vyas and Anatoly Kurmanaev contributed to this article. led growth remains elusive. Economists say that businesses—particularly exporters— will need to compensate for consumers squeezed by rising prices if the U.K. economy is to avoid stuttering just as Britain’s exit talks with the European Union get under way. Quarterly growth stood at 0.3% in the April-June period, the U.K.’s Office for National Statistics said, a slight improvement on the 0.2% growth rate of the preceding quarter, but still less than half the pace of growth at the end of last year. Proponents of Brexit have suggested that the pound’s steep depreciation in the wake of last year’s referendum could boost overseas demand for British products, strengthening the manufacturing industry and decreasing the economy’s reliance on domestic demand. But so far, the economy has showed little sign of that shift. —Wiktor Szary and Jason Douglas LONDON—Charlie Gard’s parents agreed on Wednesday to take their gravely ill baby to a hospice to die, as a judge granted them a chance to try to find a medical team that would give them more time to spend with him there in his final days. Connie Yates and Chris Gard are nearing the end of a high-profile legal battle with Great Ormond Street Hospital over the fate of the 11-monthold child, in a wrenching final fight over exactly how and where his life will end. The couple had hoped to spend their last few days with their son in their own home as his treatment is withdrawn, but the hospital where the boy is on a ventilator said it would be too difficult to provide intensive care there. As a compromise, Great Ormond Street suggested a hospice, which can offer only a few hours of artificial ventilation before it is removed. The ventilation process requires round-the-clock attention from a clinical team, including a pediatric intensive-care specialist. Judge Nicholas Francis granted Ms. Yates a chance to find a team that could help him remain alive longer, but ruled that if an agreement couldn’t be reached by the parents, Charlie’s guardian and the hospital by Thursday at noon, then “matters have to be taken to their very, very sad conclusion. “It’s in Charlie’s best interests to be moved to a hospice” and for his artificial ventilation to be removed when his treating team thinks it appropriate, the judge ruled. The time and place of his death will remain undisclosed until after it has happened, he said. The attorney for the hospital told the court earlier that Charlie should be moved to the hospice no later than Friday morning. “The strain on the family and those who are caring for Charlie is simply too much,” Fiona Paterson said. Ms. Yates left the hearing in tears before the judge announced his decision. His father remained at Charlie’s bedside during the hearing. Ms. Yates and Mr. Gard on Monday gave up their monthslong fight to take Charlie to the U.S. for experimental therapy after new scans showed his muscular damage was too extensive and the window for treatment to have a chance of success had closed. change nude photos of themselves—a poor fit with Saint Francis’ image. Saint Francis’ fund nearly sold its stake in 2014 for $5.5 million. At the last minute, an adviser to the school’s fund called Mr. Makley to warn against the sale. After news emerged that Snap was working on an IPO, school officials started realizing how big their payoff could be. Saint Francis, which has 1,750 students in grades nine to 12, sits in one of the wealthiest parts of the country, but the potential payout far outstripped its $25 million endowment and nearly equaled its $34.7 million annual operating budget. Mr. Chiu, Saint Francis’ president since 2015, met with other decision makers in February to weigh everything from putting all the money in the school’s endowment to spending the full amount on new buildings. The school decided to place the bulk of the IPO proceeds in its endowment, where it will be used to bolster financial aid for lower-income families. The school also plans to expand the program to include families with household incomes in the six figures but who are squeezed by skyrocketing housing costs. Tuition next year will cost $17,980. Unlike the school’s venturecapital fund, the endowment sticks largely to conservative investment strategies. Some money went to a bonus fund for teachers, who each received $8,000 on average. The school is now considering plans for a new chapel and classrooms. Meantime, the school plans to continue its fundraising campaigns, the school’s spokeswoman said. Mr. Eggers said other schools in the area have called him for advice on how to start venture-capital funds similar to that at Saint Francis. He tries to temper expectations: “I don’t think you can count on another Snapchat happening.” SNAP Continued from Page One visers urged school officials to construct a new chapel. It is rare to net such a huge return on an initial public offering. In fact, most venture-capital bets fail. Between 1990 and 2010, about 60% of such wagers lost or were losing money, according to investment firm Cambridge Associates. Saint Francis’ bet returned more than 2,200 times the initial investment based on Snap’s valuation at the time of the IPO. “We are blessed,” Mr. Chiu said in an interview about how Saint Francis will spend the money. “But we don’t want to become a cautionary tale.” The school sold two-thirds of its shares, for roughly $24 million, in the IPO. The rest is subject to a late-July lockup, after which the school is free to sell its remaining shares. Concerns about stake sales by big investors after the expi- ration of the lockup period and intensifying competition from Facebook Inc. have weighed on Snap’s shares. The stock on Wednesday fell 3.5% to $13.40, down 21% from the IPO price, diminishing the value of Saint Francis’ remaining holdings. The investors who advise the school’s venture-capital fund warned Mr. Chiu that Snap’s shares could be volatile after the IPO. The school hasn’t yet decided what to do when the lockup expires but plans to reevaluate the rest of its holding with the aim of getting the best price for the remaining shares. Saint Francis doesn’t plan to hold on to its shares long-term, a spokeswoman said. Typically, venture-capital funds sell their shares in listed companies because the funds aren’t focused on public markets. Saint Francis’ jackpot almost didn’t happen. The school began investing in startups in the ’90s at the behest of two parents in the venture-capital in- SAINT FRANCIS HIGH SCHOOL FROM PAGE ONE Saint Francis High School reaped millions from the Snap IPO. dustry. In 2012, the fund they created chose Snapchat at the urging of Barry Eggers, a parent at the school and one of the fund’s advisers, who had noticed his children were glued to the app. His firm, Lightspeed Venture Partners, was Snapchat’s first investor. The company changed its name to Snap last year. The stake quickly became a headache, recalled Kevin Makley, who was the school’s president when the investment was made. Early reports suggested people used Snapchat, which became popular because it deleted messages and photos after they were shared, to ex- THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A7 WORLD NEWS Cardinal Denies Sex-Abuse Charges Beijing Revamps MELBOURNE, Australia— Cardinal George Pell, Pope Francis’ finance chief, will plead not guilty to multiple charges of sexual abuse leveled against him in Australia, his lawyer told a court on Wednesday. During a brief filing hearing, an administrative process in which no plea is expected and the accused isn’t required to attend, lawyer Robert Richter, who is representing Cardinal Pell, said that because of the public interest, his client would indicate a plea of not guilty to all charges. The 76-year-old cardinal sat quietly during the six-minute hearing, where it was decided that the prosecution would serve a brief of evidence to the court in the coming weeks and that Cardinal Pell would return to the Melbourne Magistrates’ Court for a preliminary hearing in October. Cardinal Pell is the highestlevel Vatican official to face charges in the sexual-abuse scandal that has beset the Catholic Church during the past two decades. The decision to indicate a plea was made to “avoid any TRACEY NEARMY/EUROPEAN PRESSPHOTO AGENCY BY ROBB M. STEWART Pope Francis’ top financial adviser, Cardinal George Pell, said through his lawyer he wasn’t guilty. confusion or doubt” about the cardinal’s intentions, Mr. Richter said after the hearing. In late June, police in southern Victoria state charged Cardinal Pell with multiple counts of sexual abuse involving multiple complainants, alleged to have occurred in Australia decades earlier. Details of the charges haven’t been disclosed. From Rome, before his return to Australia, Cardinal Pell said he was innocent of the charges. Pope Francis granted him a leave of absence to clear his name in court, he said. The pope told reporters last year that he wouldn’t comment on the Pell cases “until the justice system passes judgment,” adding, “Once it has spoken, then I will speak.” The cardinal was escorted in and out of court by almost a dozen police officers and was applauded by several people each time. A second room was opened to accommodate those unable to get into the packed courtroom so they could watch the proceedings on a video screen. Outside the court building, a handful of protesters against Cardinal Pell stood among dozens of reporters and cameras. The next step will be the preliminary hearing, set for Oct. 6, where the judge may give permission to cross-examine witnesses and discuss areas of dispute. That will be followed by another hearing, when the court will decide whether a jury might convict the accused and whether the case should proceed to a higher court. Cardinal Pell rose through the ranks of the church after being ordained as a priest in 1966, according to the Archdiocese of Sydney. He was ordained as auxiliary bishop of Melbourne’s archdiocese in 1987. In 1996, Pope John Paul II appointed him as the seventh metropolitan archbishop of Melbourne before naming him archbishop of Sydney five years later. In February 2014, Pope Francis appointed Cardinal Pell prefect of the newly created Secretariat for the Economy at the Vatican. He also sits on the international nine-member Council of Cardinals, which advises the pope on overhauling the Vatican and governance of the world-wide church. BY EHSANULLAH AMIRI KABUL—The Taliban attacked an Afghan army base in southern Kandahar province and killed at least 26 soldiers, the Defense Ministry said, as the insurgent group increases pressure on government forces. The attack took place as some 60 Afghan soldiers were on duty in Khakrez district, north of the provincial capital Kandahar City, ministry spokesman Mohammad Radmanish said on Wednesday. More than a dozen others were wounded, he said. Kandahar is the birthplace of the Taliban, and shares a restive border with neighboring Pakistan. Security in the long-troubled province has deteriorated since most foreign troops withdrew in 2014. The Taliban claimed responsibility for the assault, saying their fighters had seized military equipment from the base, including Humvees, weapons and ammunition. It came two days after a Taliban suicide car bombing targeted a minibus carrying government employees in western Kabul, killing 31 people and injuring dozens more. The Taliban regularly target Afghanistan’s military and civilians who work for the gov- ernment, taking advantage of worsening security. They have been intensifying assaults throughout Afghanistan, piling pressure on President Ashraf Ghani’s government, which this week lost districts in Faryab, Paktia and Ghor provinces. The U.S. military has in recent months stepped up efforts to back the Afghan government in preventing major territorial losses to the group, dramatically increasing the number of airstrikes it carries out on Taliban positions, as President Donald Trump’s administration rethinks U.S. strategy in the country. MUHAMMAD SADIQ/EUROPEAN PRESSPHOTO AGENCY Dozens Die in Taliban Attack on Afghan Army Base An Afghan soldier guarded a military base in Kandahar Wednesday. State-Run Companies BEIJING—China is close to completing a long-targeted overhaul of operations at its state-owned enterprises, or SOEs, saying a modernization of their corporate structures will be finished this year. All major companies owned by the central government, excluding financial and cultural firms, will be transformed into limited-liability or joint-stock companies by Dec. 31, according to a plan released by the State Council, or cabinet, Wednesday. About 90% of these stateowned companies have completed the restructuring, the cabinet said. As part of the overhaul, companies are setting up boards of directors to make important decisions, such as those related to hiring and compensation, the State Council said. However, the ruling Communist Party, which currently appoints senior managers at the SOEs, is expected to maintain a strong influence over decisionmaking at the companies. The cabinet said the enterprises must ensure the party’s “core leadership” role through their appointments of company officers and establishment of party organizations. The statement came as the government continues efforts to energize China’s often-lumbering state companies and make them more competitive, including through combining some into larger entities. Ying Wang, a senior director at Fitch Ratings, said the overhaul was an initial step toward increasing efficiency and improving internal controls at state companies. A party congress to be held this fall is expected to further endorse “mixed ownership” structures allowing state companies to sell stakes to attract private capital—a process already under way. —Liyan Qi THE WALL STREET JOURNAL. A8 | Thursday, July 27, 2017 Trillions in assets The number of advisory firms grew to almost 3,900 in 2017, up from fewer than 750 in 2002, according to a Wall Street Journal analysis of Securities and Exchange Commission data. This universe of firms handles at least $100 million in assets each and provides both investment management and financial planning to individuals. As of March 2017, such firms collectively had $5.5 trillion in assets on which they made investment decisions, the Journal’s analysis found. That is about six times as much as in 2002. Throughout this period, advice fees have largely held steady—typically 1% of assets, with a potential discount for big accounts. One reason the standard held is many clients value aspects of advice that can’t always be measured or easily compared. C. Lansdowne Hunt, 72, of Burke, Va., said he became ‘Robo’ advisers tempt young clients with fees as low as zero for the smallest accounts. terrible mistake,” said the 74year-old retired electrical engineer. “I found I didn’t really have the discipline to stick with my own plan.” He thought about hiring a traditional adviser in Florida who charges 1% of assets under management. His wife wasn’t comfortable entrusting money with someone she didn’t know, he said. Mr. McDonald said he first invested in a mutual fund from Vanguard in 1983. He liked its 0.3% fee on an account with advice, and moved his roughly $500,000 in retirement ac- Seeking Advice The number of ﬁrms providing investment management and ﬁnancial planning to individual clients has grown steadily. Investment advice ﬁrms Assets under management 4,000 ﬁrms $5 trillion 4 3,000 3 2,000 2 1,000 1 0 0 2002 ’05 ’10 ’15 2002 ’05 ’10 ’15 Note: Based on ﬁrms with at least $100 million in total assets under management. Assets charted are those for which the ﬁrm, rather than the client, makes investment decisions. Data for 12-month periods ending March 31. Source: Securities and Exchange Commission THE WALL STREET JOURNAL. ANTS Continued from Page One These South American arthropods are generally no larger than 6 millimeters and are so commonplace in U.S. southern states that there is an annual festival named after them in Ashburn, Ga. Nevertheless, since Japan first learned that these insects had arrived by hitching rides on foreign cargo, each new discovery has caused another round of breathless official reports, some of which have described the interlopers as foreign “assassins.” No one is saying fire ants are pleasant. A swarm can consume small animals such as frogs, birds and even young livestock. Their sting is comparable to that of a wasp. In rare cases, an allergic reaction results in swelling or, in extreme situations, death. To some outsiders, however, this island nation may be making a mountain out of an anthill. “This had to happen sometime,” said Adam Cronin, an ecologist at Tokyo Metropolitan University. “The re- sponse is a bit of the Japanese overreacting to anything that’s a bit scary.” Japan’s fevered response is partly the result of a government ministry’s report that said the ants were responsible for 100 deaths a year in the U.S. The ministry backpedaled on July 18, saying it couldn’t verify the death figures and had removed the reference. Around 100 people die in the U.S. from allergic reactions to insect stings every year, according to the American College of Asthma, Allergy and Immunology, an association of doctors. More than half are from bee and wasp stings. It doesn’t provide data on casualties caused by fire ants. At a park near a Tokyo port where fire ants were found, a group of women playing tennis said they were warning their grandchildren about the invaders. One, Yoshiko Seki, 63 years old, said she wanted the government to import fire-ant detective dogs from elsewhere in Asia but feared they would take too long to arrive. “I am a bit scared,” she said. After about two dozen fire ants were found in Nagoya in June, sumo wrestlers at a Financial advisers Ann Gugle, above, and Elyse Foster, below, are both at firms that have reduced the annual fees clients pay. counts there. “Expenses don’t mean a whole lot if you are making 10% a year,” Mr. McDonald said, ”but if you are making 2% or 3% a year, they are a real big deal.” At Schwab, assets handled by financial advisers, including those at independent firms that use Schwab’s services, now account for more than half of the firm’s total assets. In recent years, the discount brokerage firm has added a range of options for those seeking advice, including a “robo” service introduced in 2015 that uses algorithms to build and monitor portfolios. At Fidelity, assets handled with financial advice, either from the firm or from independent advisers who use its services, have nearly doubled over five years. Part of the shift is generational, as younger adults appear to trust technology more than what they see as salesmanship. “Kids are saying to their parents, ‘Why the hell are you paying so much to your adviser? Is it worth 1% a year to have somebody to play golf with?’ ” said Joe Duran, chief executive of United Capital Financial Advisers LLC, an investment-management and financial-planning firm that also provides services to advisers. Independent robo advisers that target younger customers—with fees as low as zero for the smallest accounts— have enjoyed hefty growth. Betterment and Wealthfront say they manage $9.7 billion and $7.1 billion in assets, respectively, up from $5.1 billion and $3.5 billion a year ago. Morgan Stanley, UBS Group AG, Wells Fargo & Co. and Bank of AmericaCorp.’s Merrill Lynch, known for providing full-frills service at top rates, are testing or have already launched automated-advice ventures that charge less than their standard fees. The goal is to keep fee-conscious and lower-balance customers. Some deal makers are buying up traditional financial advisers with an eye toward consolidating and cutting costs, saying the industry has too tournament there last week added sandals when outside the ring, upending their tradition. “Better safe than sorry,” said one wrestler. Yoshiaki Hashimoto, an ant expert at the University of Hyogo in western Japan who helped identify the first specimens, said fire ants were probably in Japan already before the confirmed discoveries. “The mild panic here is partly due to sensationalism in the mass media, with some reports falsely depicting fire ants as murderous,” said Mr. Hashimoto. Joshua Blu Buhs, author of “The Fire Ant Wars: Nature, Science, and Public Policy in Twentieth-Century America,” said worries about non-native animals often reflect more general concerns about human immigrants and changes in national character. He drew a parallel in Japan’s experience with how U.S. fire ant infestations in the 1950s were caught up in fears about communism. Some newspapers at the time referred to fire ants as “the red peril” and “fifth columnists,” he said. DANIEL BRENNER FOR THE WALL STREET JOURNAL Continued from Page One consumers and could expand the overall market for advice. Competitors across the spectrum agree the demand is there. Advice “is big and growing—it’s what clients are looking for,” said Roger Hobby, executive vice president of private wealth management at Fidelity Investments. The hunger for help marks a shift from the 1990s, when do-it-yourself investing was in vogue. Back then, the adoption of 401(k) plans moved responsibility for investment choices to company employees just as one of the biggest bull markets in history was boosting individuals’ confidence in their investing prowess. Meanwhile, pioneering online brokerage firms made trading inexpensive and convenient. After internet stocks collapsed in 2000, along with the broader stock market eight years later, many individuals sought help. In the past decade, baby boomers started to retire and wanted technical guidance on drawing down their assets. The advice industry expanded with the demand. Besides managing people’s investment portfolios—handling the trades, not merely suggesting them—some financial advisers also provide help with budgets or tax and estate planning. many firms with outmoded technology and high overhead. The first half of 2017 was the most active yet for mergers and acquisitions among financial advisers, according to consulting and investment-banking firm DeVoe & Co. The myriad pressures have traditional financial advisers investing in timesaving technology to cut costs. Some are passing along part of the savings to clients through fee reductions, while others are adding services to justify maintaining their fees. According to a survey from research firm Cerulli Associates, 79% of executives at advisory firms expect their fees to fall within the next five years. Ann Gugle, a principal at Alpha Financial Advisors in Charlotte, N.C., said her firm recently cut its annual fee on assets of over $5 million to 0.125% from 0.25%. “If you do the math, you realize your practice will be worth significantly more if you’re smart about aligning your pricing with the value you deliver,” said Ms. Gugle. “If not, you’re going to be mincemeat.” Robert Schmansky, a solo practitioner in Livonia, Mich., dropped his advisory fee to 0.85% from 1% earlier this year. Until recently, Mr. Schmansky said, he has mainly marketed himself as a fiduciary— someone committed to working in the client’s best interests. Now he finds himself in direct competition with Vanguard, Schwab and others that also call themselves fiduciaries. “My key marketing distinction is being eroded by these firms in some ways.” He said he works with a lot of younger investors, and “when I tell them my fee is 1%, they know immediately that Betterment costs less.” Vanguard’s move Of all the initiatives, Vanguard’s is widely cited as the most threatening to the status quo. The firm’s size, brand recognition and aggressive pricing will create a challenge un- THE YOMIURI SHIMBUN/ASSOCIATED PRESS ADVICE more price-conscious after his portfolio fell 31% in the late-2008 stock-market meltdown. So in 2012, he switched to a less expensive adviser, and this year, asked for a discount on its 0.9% fee. After being rebuffed, Mr. Hunt shopped for a new adviser for his $1.3 million portfolio at firms including Charles Schwab Corp., TD Ameritrade Inc. and Edward Jones. The former Naval officer and defense-contractor employee concluded his current Virginia advisory firm offers services, such as tax-sensitive investing and stock picking, that might be hard to replicate for a lower cost. “I couldn’t get the exact twin,” he said. Many firms are wagering that other customers will take less, for less. About two years ago, Vanguard Group, known for serving do-it-yourselfers, started undercutting the financial-adviser industry with an annual advice fee of 0.3%. Assets in its service, which combines recommendations from computer-driven algorithms with phone, video and email consultations with human advisers, grew to about $35 billion in the first year and to $83 billion by end of last month, according to the firm. Joe McDonald of Titus, Ala., was an early customer. Long a do-it-yourself investor, he decided he needed an adviser after making an ill-timed move into an all-cash portfolio after Barack Obama’s 2008 election. “I pulled out and stayed in cash until 2014, which was a MIKE BELLEME FOR THE WALL STREET JOURNAL IN DEPTH City workers in Fukuoka checked for fire ants this month near the port. The invasive species has entered Japan on foreign cargo. Japan is a largely homogeneous nation with tight restrictions on immigration. It has been slowly opening its doors to foreign workers as it faces labor shortages. At an emergency ant-policy meeting last week, Prime Minister Shinzo Abe told government ministers, “We will exert every effort to prevent the infiltration and settlement of fire ants.” He added, “It is necessary for everyone in the nation to recognize correctly the characteristics of fire ants and address the matter calmly.” Fire ants are one of the most aggressive types of ant and have spread to several countries in Asia. The wave of fear in Japan began when a cluster of fire ants that came in on a shipping container like anything independent advisers have seen before, said Michael Kitces, director of wealth management at Pinnacle Advisory Group Inc. in Columbia, Md.—much as Vanguard’s index funds have wreaked havoc on the traditional mutual-fund business. Vanguard’s Personal Advisor Services (minimum investment: $50,000), has gained traction because customers want it, said Karin Risi, head of the firm’s retail investor group: “They didn’t just want to invest in a fund with us— they were saying they needed more help.” So far, only about 10% of assets in the program comes from clients new to the firm. Advisers and industry analysts say it is only a matter of time before the service starts poaching more clients from competitors. Vanguard has devoted about 500 financial advisers to its venture, said Ms. Risi. She expects the firm to hire roughly 100 advisers annually for the next several years. Clients with more than $500,000 get a dedicated adviser, who is a certified financial planner; those with less interact with rotating advisers drawn from a pool, some not yet CFPs. Many traditional advisers suggest that partially automated services such as Vanguard’s provide basic, cookiecutter advice inferior to what an experienced financial planner can provide. Ms. Risi said the firm’s advisers go through “pretty impressive training.” Elyse Foster, an adviser in Boulder, Colo., has taken note. Three years ago, she cut financial-planning fees by an average of 40% at her firm, Harbor Financial Group Inc. It also has invested in technology that allows clients to open accounts online, automatically rebalances portfolios to a target mix of stocks and bonds, and shares software so clients can simulate their own planning scenarios. “We are aware consumers are more price-conscious and are lowering our fees proactively,” said Ms. Foster. “We are trying to stay ahead of the industry.” from China were found in the western port of Kobe. Later, a container that arrived in the port of Tokyo from southern China brought in over 100 fire ants as well as larvae and eggs. Queen ants have since also been identified, raising fears the insects will build nests and are here to stay. Shares of pesticide makers have surged on the Tokyo Stock Exchange, and one manufacturer started selling ponchos made from industrialstrength material that allegedly protects the wearer from fire ants. One problem: identifying what is a fire ant and what isn’t. The self-taught expert who writes the “Fire Ant Police” Twitter feed in Japan said he has responded to hundreds of photos sent in of suspect ants. “I just want to be helpful and relieve a bit of the people’s anxiety,” he said in an interview. “As of today, I have not yet been sent a picture of something I believe is actually a fire ant.” —Koji Everard and River Davis contributed to this article. THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A8A NY * * GREATER NEW YORK Subway Financing Tiff Escalates Mayor says state has diverted MTA funds and balks at putting up $418 million for repairs BY MARA GAY AND MELANIE GRAYCE WEST The political fight about who should pay for a rescue plan for New York City’s beleaguered subway system deepened Wednesday, with state and city officials deadlocked over funding disputes that reach back more than half a decade. Mayor Bill de Blasio said the city wouldn’t contribute additional funds toward the $836 million plan unveiled by Metropolitan Transportation Authority Chairman Joe Lhota this Cuomo: U.S. Cash Needed for Big Project week until the state returned the nearly half a billion in funds it has drawn from MTA coffers since 2011. Mr. Lhota has asked for $456 million in operating costs and a one-time capital infusion of $380 million to take on urgently needed repairs, which he expects the MTA to complete in a year’s time. “Why would I want to give up NYC taxpayer dollars, which are not abundant?” Mr. de Blasio said at a news conference. “The state has not reimbursed the MTA for the money it took. Let’s do that first.” At an MTA meeting, Mr. Lhota said the city and state needed to be equal partners in funding the immediate subway repairs. He has asked the city to put up half the money in the plan, $418 million. “There’s a need for partnership between the city and the state to come to the aid of riders,” Mr. Lhota said. The MTA chairman added that he has “yet to hear a specific example” about how the ‘Why would I want to give up NYC taxpayer dollars, which are not abundant?’ MTA has been inefficient with costs, an assertion made by Mr. de Blasio. The mayor said the $456 million sum is about the amount the state diverted from the transit agency’s operating funds for other uses. “What a coincidence,” Mr. de Blasio said. A spokesman for Mr. Cuomo, who controls the MTA, didn’t immediately comment. Mr. Lhota called the back and forth “silly” and said he has proposed “a fair 50/50 split” between the city and state. “The Governor has stepped up and agreed to be partner in addressing the problem, and it’s time for the mayor be a part of the solution as well,” Mr. Lhota said in a statement emailed to The Wall Street Journal. Richard Ravitch, a former lieutenant governor who served as MTA chairman in the early 1980s, said the political squabbling about funding the subway, a critical transit system that serves some 6 million riders daily, is disgraceful. “It’s so demeaning to me, that the greatest city in the world should be experiencing this as a political fight between a mayor and a governor. I find it disgusting,” Mr. Ravitch said in a phone interview. The tussle over funding comes while riders are grappling with rising delays. Transit experts say the city’s more than 100-year-old subway system is stretched to its limit amid record ridership and years of underinvestment in infrastructure and everyday maintenance. Mr. Lhota faced questions from the MTA board on Wednesday about the need for more cost savings and new sources of revenue. Board members expressed concerns about future fare increases and additional borrowing for operating and capital costs. Funding Gap MTA’s revenue has been rising but so have its expenses. Total operating revenue Total operating expenses after noncash liability adjusted $15 billion 10 5 0 2007 ’09 ’11 ’13 ’15 Source: Metropolitan Transportation Authority THE WALL STREET JOURNAL. “We have to come up with new, innovative ways to fund this agency,” said MTA board member Susan Metzger. After Decades of Service, Bridge Gets a Lift Out of Town OUT WITH THE OLD: A barge carrying part of the old Kosciuszko Bridge approached the Brooklyn Bridge on the East River on Wednesday. A new span opened in April. Judge’s Death a Suicide L.I. Leaders Call for Changes BY ZOLAN KANNO-YOUNGS Judge Sheila Abdus-Salaam, the first African-American woman on New York’s highest court, committed suicide earlier this year, the city medical examiner ruled Wednesday. “The cause of death is drowning,” the Office of Chief Medical Examiner said in a statement. “The manner of death is suicide.” Judge Sheila Abdus-Salaam, 65 years old, was found in the Hudson River near West 132nd Street on April 12 with no obvious signs of trauma, authorities said. Previously, police said Judge Abdus-Salaam’s death likely was a suicide, although the official cause hadn’t been released. Facts uncovered during their investigation supported the official cause of death, law-enforcement officials said. Nine surveillance cameras showed Judge Abdus-Salaam walking alone in the area between her Harlem home and Riverbank State Park, which borders the Hudson River. It isn’t clear how long she was in the park, but she was shown To Migrant-Youth Program BY JOSEPH DE AVILA MIKE GROLL/ASSOCIATED PRESS WASHINGTON—New York Gov. Andrew Cuomo on Wednesday asked the Trump administration to restart efforts to build new rail tunnels beneath the Hudson River, as he urged the White House to spend federal money to fulfill the president’s $1 trillion pledge to rebuild American infrastructure. Mr. Cuomo, a Democrat, pointed to the stalled rail project as an example where no other funding sources will work. “If we’re going to be serious about infrastructure, which this administration said they were going to be, the money’s going to have to come from the federal government,” the governor said. A White House spokeswoman referred a request for comment to the Transportation Department. A spokeswoman for the agency didn’t respond to a request for comment. The administration says it hopes private investors will provide the bulk of the financing for an infrastructure program, supplying upfront cash in exchange for proceeds from sources such as highway tolls and water and sewer fees. The administration says it also would do some direct federal funding of projects, especially in rural areas with less appeal to private investors. In 2015, the Obama administration said the federal government would pay half the cost of the Hudson River tunnels project, which includes a new bridge and platforms abutting New York Penn Station. The most recent estimates put the cost of the entire project at $29.1 billion. The Trump administration has yet to signal whether it will stand by that funding commitment. Alarm is rising among supporters of the project that it might be indefinitely stalled. Despite years of planning and permitting work, progress on the new Hudson River tunnels won’t take place until a funding agreement is in place. On Wednesday, Mr. Cuomo struck an urgent tone. “We’re doing the planning work,” he said. “I want to hear that we’re actually going to fund the tunnel.” MARY ALTAFFER/ASSOCIATED PRESS BY TED MANN Judge Sheila Abdus-Salaam there alone shortly before 12:30 a.m. on April 12. Police responded to a 911 call later that day and found her body in the river at about 1:35 p.m. A senior law-enforcement official said it was likely her body was in the water for most of the time, indicating to police that there was no criminality in the case. Judge Abdus-Salaam was chosen as an associate justice on the New York Court of Appeals in March 2009. Ahead of President Donald Trump’s planned visit Friday to a Long Island community that has been reeling from violence tied to the Central American gang MS-13, local officials are raising concerns about federal support for migrant children. Suffolk County has been rocked by 17 murders committed since January 2016 that law-enforcement officials say are tied to MS-13. The Trump administration has attributed the spike in gang-related homicides to weak border security and has pointed to inflows of unaccompanied children fleeing gang violence in Central America. Rep. Peter King (R., N.Y.) of Long Island called for the unaccompanied-children program to be overhauled in light of ties to the gang. He wants more stringent vetting, with additional follow-ups with the family or friends, known as sponsors, who care for the minors while they await immigration proceedings. Currently, all sponsors are required to complete a background check. Congress provided more than $900 million in funding for the Office of Refugee Resettlement’s unaccompanied-children program for the fiscal year that ended in September 2016. Funding has been cut slightly for the current fiscal year. Long Island, with a large population of Central American immigrants, has been one of the main destinations for the immigrant youth. There have been 941 unaccompanied children sent to live with sponsors in Suffolk County from October 2016 through May, according to the Office of Refugee Resettlement. That is the fourth-highest amount for any county in the U.S. Nationally, 33,000 unaccompanied children were apprehended by border patrol between October and the end of June, according to U.S. Customs and Border Protection. The numbers have been on a decline in recent years after peaking at 68,000 in the year ended September 2014, CBP said. Organizations that work with unaccompanied children say the Trump administration has unfairly singled out these vulnerable children who are already marginalized in the U.S. “What we see are young people who are fleeing gang violence who have been targeted for forced recruitment,” said Lisa Koop, associate director of legal services for the National Immigrant Justice Center. Mr. King said the issue is people who commit violent crimes. “That is politically correct nonsense. We are talking about human beings being killed,” he said. Suffolk County Police Commissioner Timothy Sini has called for assistance to schools to help newly arrived youth avoid falling in with gangs. OYSTER PERPETUAL 39 rolex and oyster perpetual are ® trademarks. A8B | Thursday, July 27, 2017 NY * * THE WALL STREET JOURNAL. GREATER NEW YORK Wave of Sales Gives Hamptons a Boost The luxury market in the Hamptons regained some of its luster in the second quarter, following an extended period of weak sales, market reports show. There were 12 sales above $10 million in the quarter, compared with four in the same period in 2016, according to brokerage Brown Harris Stevens. Four sales recorded in the quarter topped $20 million, including an oceanfront former carriage house in Southampton that changed hands for $31 million in May. In the second quarter last year, two sales topped $20 million. “We are seeing more sales at the upper end of the market, something that was lacking last year,” said Scott Durkin, chief operating officer at Douglas Elliman Real Estate. In the overall market, the number of sales rose to their highest level in two years, according to appraiser Jonathan Miller, who prepared a market report for Douglas Elliman. Sales were up 23% in the second quarter compared with the same quarter last year, he said. The median sales price was up 5.6% to $1.03 million. HOME SALES Brooklyn, Queens Outpace Manhattan Home sales and prices increased across New York City during the second quarter, with activity in Brooklyn and Queens far outpacing that in Manhattan. Manhattan, which remains the most expensive borough, accounted for more than half of the $13.4 billion in total sales during the second quarter, according to a report by the Real Estate Board of New York. But other boroughs are gaining. Sales rose 17% in Queens and 15% in Brooklyn in the second quarter compared with the same quarter in 2016. Manhattan sales, lagging behind the rest of the city, were up 6%. Overall, the report found that the number of homes, including both apartment and house sales, increased 15%. The report put the median home price at $630,000 in the city, up 8% from the same quarter last year. —Josh Barbanel Centuries-old Hamptons residence was to be razed after a sale, until a billionaire stepped in BY JOSH BARBANEL A farmhouse that dates to the 17th century is being saved from demolition in a tony Bridgehampton neighborhood sprouting new $8 million mansions with pools and tennis courts. The house is being prepped to be PROPERTY lifted and moved to a nearby horse farm next month—not by preservationists but by David Walentas, a billionaire New York City real-estate developer who once owned it. Mr. Walentas, who has had a sometimes stormy relationship with preservationminded Southampton town officials, said he was driven by a mixture of motives: Nostalgia for the weekend house where he lived for many years, a desire to “do the right thing” and a chance to add a little extra appeal to the remaining 65 acres of a horse farm and polo center he built on a former potato farm in the 1990s. Mr. Walentas has put the horse farm, which can’t be developed, on the market for $17.995 million. The house, a sagging sliver of history, has been significantly altered, though it still has its original foundation of locust-timber posts and exposed ceiling joists. “There was certainly no reason to tear it down. It is part of the history of Bridgehampton,” Mr. Walentas said of the house where he and his wife, Jane, lived for well over a decade. “We love old houses. It was the right thing to do,” he said. The residence, known as the “Haines House,” dates to 1679, when this section of the Hamptons was first divided into 40-acre lots and settled by colonists, according to a 1916 history of Bridgehampton by James Truslow Adams. The Haines family built the house and lived there until the early 20th century. It originally was a one-story house with a pitched roof, and a second story was added a century later. During a renovation after the Haines family sold the house, the year 1679 was found marked in a timber, and beneath that the words “built (or rebuilt) by James BROWN HARRIS STEVENS LUXURY MARKET Farmhouse Saved—and Moved The Bridgehampton farmhouse dating to 1679 will be lifted up and transported in August to the spot below on a nearby horse farm. Haines 1779,” according to an account cited by Mr. Adams. The house was remodeled several more times, most recently by Mr. Walentas, who redid the interior and added an extension in the rear with a sun room. He also built a pool and tennis court nearby. Mr. Walentas created an equestrian center, known as Two Trees Farm, in the 1990s, on fields used to grow corn and potatoes. It once extended to at least 114 acres, with two indoor riding arenas, three barns, stalls for about 100 horses, polo fields and a row of eight apartments for staff. For years it was the site of the MercedesBenz Polo Challenge, a notable event on the Hamptons social calendar. In 2008, after a lawsuit against the town, Mr. Walentas won permission to subdivide the property into 18 residential lots, but only if a lot with the remaining 65-acre section of the farm would be permanently preserved. Eventually, after listing the entire farm including house lots for as much as $95 million, Mr. Walentas began selling off residential lots and JOSH BARBANEL/THE WALL STREET JOURNAL PROPERTY WATCH building houses a few years ago. Last year, Christopher Burnside, a broker at Brown Harris Steven, sold the lot with the 1679 farmhouse to a New York derivatives trader for $3.65 million. The buyer planned to keep the farmhouse but changed his mind after discussing plans with an architect. Mr. Walentas then sprang into action. He developed a proposal to save the house and move it to a new foundation within the preserved part of the farm. Alex Forden, a development manager for Two Trees who is overseeing the move, said he noted signs of centuries-old fire damage in the house. When the old farmhouse is moved it will add living space of about 2,000 square feet including five bedrooms to the farm site, though its use would be restricted to the owner and agricultural workers. “I thought it added value” to the farm,” Mr. Walentas said, noting that he didn’t preserve and move the house to make money. “I am rich enough that it doesn’t matter.” Tribeca Penthouse Expected to Fetch a Record Price NOË & ASSOCIATES/THE BOUNDARY BY CANDACE TAYLOR A rendering of 70 Vestry, a 46-unit condominium building in the Tribeca neighborhood of Manhattan. A penthouse that is listed for $65 million at a condominium building being constructed in Manhattan is under contract at a price expected to set a new sales record for downtown, according to the development company. Benjamin Joseph, executive vice president at Related Cos., the developer, declined to specify the sale price or buyers for the five-bedroom apartment at 70 Vestry. It is one of two penthouses in the 46-unit Tribeca building, which started sales in April of last year and is expected to be completed in the spring of 2018. The record for downtown Manhattan is $50.9 million paid for a unit at Chelsea’s Walker Tower in 2014. Mr. Joseph said the buyers of the 70 Vestry penthouse were attracted to the unit’s Hudson River views and outdoor spaces, as well as the building’s privacy; when completed, the Robert A.M. Stern Architects-designed building will have a drive-in courtyard to help shield residents from prying eyes. High-end residential sales in Manhattan appear to be picking up after a slow 2016. The second quarter saw 316 luxury closings in the borough, up 15.3% from the same period last year, according to a quarterly report from Douglas Elliman Real Estate. In June, at another Sterndesigned Manhattan condo, 520 Park Ave. on the Upper East Side, two units went into contract for more than $70 million each within a week. Still, the inventory of newdevelopment units for sale in Manhattan is rising, up 3.1% in the second quarter from the prior-year quarter, according to the Elliman report. The penthouse at 70 Vestry will span about 7,800 square feet on the top two floors, plus a roughly 2,000-square- foot wraparound roof deck. Several other terraces bring the total outdoor space to approximately 3,700 square feet. The unit will have a private interior elevator serving all three levels. Plans call for a library, a study and a solarium with a wet bar, as well as four kitchens: indoor kitchens on the first and second floors, in addition to outdoor kitchens on two of the terraces. The building’s other penthouse, which had been listed at $50 million, went into contract in January. More than 80% of the units at 70 Vestry have been sold, Mr. Joseph said, noting that the developer has raised prices during the past year. Buyers include Tom Brady and Gisele Bündchen, Mr. Joseph said. The building also will have a squash court, 82-foot-long indoor swimming pool, a gym with yoga and Pilates studios, a children’s playroom, a billiards room and cafe. Airbnb, New York Housing Activists Take Spat to State Ethics Agency BY MIKE VILENSKY Airbnb and hotel unions have sparred for the past year over union-backed efforts to restrict the home-sharing service in New York. Now the battle is turning to allegations of lobbying violations the two sides say the other committed during the fight over regulations. On Wednesday, Airbnb took aim at Share Better, a coalition of anti-Airbnb activists, politicians and unions, with a complaint to New York state’s ethics agency. The complaint to the Joint Commission on Public Ethics alleges that the coalition’s political strategy firm, Metropolitan Public Strategies, and its founder, Neal Kwatra, failed to register as lobbyists for work done on behalf of Share Better. It comes on the heels of three similar complaints this month—two from a unionbacked housing activist, and another from Airbnb—all alleging their opponents conducted improper lobbying while fighting for their policy position. A spokesman for Metropolitan Strategies, Austin Shafran, said Share Better is a “branding tool” for the coalition of groups involved and not an of- ficial organization. “The groups that fund Share Better as well as Metropolitan Strategies have filed all their lobbying activities appropriately on the city and state level,” he said. New York legislators last year passed a law cracking down on some types of Airbnb rentals in New York. Since then, lawmakers have introduced legislation that would loosen regulations against the service, but it hasn’t yet gotten a vote. Last week, an anti-Airbnb activist who is part of Share Better, Tom Cayler, filed two complaints with the Joint Commission against the company. The first accused Kirsten John Foy, a director for the civil rights group National Action Network, of unregistered lobbying for Airbnb. The second claimed two Airbnb employees had lapsed in their lobbyist filings. Mr. Foy said Wednesday that he advocated for Airbnb and spoke to elected officials about the service but hasn’t lobbied on any specific legislation. Mr. Foy, who was paid for his work on behalf of Airbnb, called the complaint “baseless.” Peter Schottenfels, a spokesman for Airbnb, said, the claims against Airbnb were merely retaliation for the company’s complaints against Share Better and were a The two sides, in dueling complaints, accuse one another of improper lobbying. “sham.” The Joint Commission regularly levies monetary penalties against organizations for lob- bying violations. In June, the agency fined Uber nearly $100,000 for omissions in its filings of lobbying activity against Mayor Bill de Blasio’s administration. Uber said the omissions were unintentional. Dick Dadey, an ethics watchdog who runs Citizens Union, expressed concerns about the groups dueling at the Joint Commission, often referred to as JCOPE. “It appears JCOPE is a battleground in their larger war against each other,” Mr. Dadey said. “But both may have legitimate claims, and JCOPE needs to rule on it.” THE WALL STREET JOURNAL. THOMAS PITILLI LIFE&ARTS Thursday, July 27, 2017 | A9 IF YOU BUY an assigned seat at a theater, sports or concert venue, you get the seat you picked. But an assigned seat on an airline is radically different: Every so often, you don’t get it, even when you pay extra for it. Premium-seating fees guarantee nothing. It’s happened to families who see their children reassigned rows away from their parents. It’s happened to single travelers when airline computers automatically shuffle seats on full flights. And it famously happened to political commentator Ann Coulter, who erupted in a Twitter tirade earlier in July after Delta moved her from a preferred aisle seat to a window seat in the same extra-legroom row. Delta roared back, calling her out for attacking employees and the airline over what was at best a minor inconvenience. Airlines started letting fliers pay an ancillary fee for a preferred seat, often with extra legroom—in about 2010. But they didn’t really change their procedures at airport gates to match the marketing. That means passengers’ expectations often don’t match up with reality. Good gate agents are skilled puzzle-solvers who historically have moved people around liberally. They still have wide latitude despite the seat-assignment advance sales. (In Ms. Coulter’s case, Delta said an agent made a mistake while trying to help another customer. It refunded her $30 fee for the preferred seat.) Agents try to seat families together, take care of VIPs, find seats for high-fare or top-tier fliers and squeeze in passengers from canceled flights. Airlines swap planes for particular trips, triggering shuffling of seats when replacement planes have different seating configurations. When most seats on a plane THE MIDDLE SEAT | By Scott McCartney That Airline Seat You Paid for Isn’t Yours Frustrated fliers discover that paying extra for a preferred seat with more legroom on their flights guarantees them nothing were similar, passengers knew seat assignments were fluid. But now passengers think they can buy the rights to a specific seat. If 15F costs $32 extra and you buy it, you think you own 15F for that flight. Airlines say that legally, you don’t. They can sell you one thing and deliver something else because the terms and conditions on seat purchases give them discretion. United and American use the same wording in their terms and conditions: “Seat assignments are not guaranteed.” Delta says it can reassign seats, paid or not, “at any time, even after boarding of the aircraft, for operational, safety or security reasons.” Airlines say they attempt to assign the same or similar seat type and location when they make changes. They also try to keep traveling companions together when they are booked in the same reservation. (Tip: If you are traveling together on separate passenger records, call ahead and ask the airline to link the two records.) Delta says it’s encouraging agents to confer with customers and get consent before making a seating change. American says it’s studying ways to address what it recognizes is a source of frustration for travelers. Doug Greenberg, a co-owner of a San Diego storage business, got separated from his 9-year-old son on a June 24 United flight even though Travelers also grumble when they have to reach out to airlines for refunds after a switch. they had confirmed seats together. (His wife and infant were on a separate passenger record.) United substituted a larger plane for a Houston-to-Jamaica leg of their trip and the family was scattered. When he asked United agents why they seated a child alone when they had the age in the passenger record, the agents blamed an automated system. “This is really just a complete lack of thoughtfulness for the customer’s needs,” Mr. Greenberg says. “A 9-year-old should never be taken and seated in another section of the plane.” A United spokeswoman says the airline regrets it was unable to seat the Greenbergs together. Jim Hatch, a Philadelphia consultant, booked a trip to Tampa, Fla., for himself, his wife and an adult daughter with Down syndrome. He paid extra for preferred seats on American so they’d be sure to sit together. In an emergency, his daughter would need assistance. It turned out the March flight was switched from an A320 to a smaller A319, and American told him seats would be assigned at the gate. The seats were in the last row, where legroom is tighter, but together. He checked on the return flights a week later and discovered they no longer had any seats on that flight, let alone their paid preferred seats. When seats were assigned, they were not together. A gate agent reseated them to three seats together in the last row again. “It’s tremendously frustrating,” Mr. Hatch says. American refunded the full cost of the seat fee, $121, after he complained, and they each got 5,000 miles. American spokesman Josh Freed says the airline reserves a few seats—often the last row, among others—on all flights for gate agents to assign so they can keep families together after changes like aircraft switches or canceled flights. Lisa Jadwin of Rochester, N.Y., suffered what she calls a “bait and switch” twice on one round trip to San Francisco on Delta. The college English professor selected flights with available Comfort Plus seats. The seats got changed on one flight west to San Francisco and again on one of her return flights east. No extra legroom; not even a seat assignment on one flight. Ms. Jadwin’s husband, Steve Derne, complained to Delta about his wife’s seating shuffle and received an apology, a refund of $69 for Comfort Plus upgrades and 7,500 miles for her account. He thought a refund should be automatic and quick, not requiring a customer complaint. Ms. Jadwin says her return trip with a connection in Minneapolis was especially stressful. Not having a seat on the connecting flight meant three hours of wondering if she’d be stranded in the Twin Cities. “They gave no explanation and I had a confirmed seat assignment,” she says. “Why does this keep happening?” Delta says Ms. Jadwin’s assigned seats were taken away by an automated process that was attempting to seat several passengers for full flights. On the return to Rochester, the system was actually attempting to upgrade her to first class, a spokesman says, “but ultimately didn’t.” MUSIC DONALD FAGEN’S NEW BACKUP BAND BON JANE BY MARC MYERS Donald Fagen, in purple jacket and green chair, surrounded by four of the five musicians in his new backup band, the Nightflyers, clockwise from left, Will Bryant, Lee Falco, Brandon Morrison and Connor Kennedy. DONALD FAGEN needs to keep busy. Starting Aug. 3, the 69-yearold co-founder of Steely Dan will tour for two months in the U.S. and Japan with the Nightflyers, his newly formed backup band. Like many classic rockers today, Mr. Fagen is hitting the road in part to pay bills once covered by album sales. “When the bottom fell out of the record business a bunch of years ago, it deprived me of the luxury of earning a living from records,” he said. “I don’t sell enough albums to cover the cost of recording them the way I like to. For me, touring is the only way to make a living.” Mr. Fagen formed Steely Dan in 1972 with guitarist Walter Becker, pioneering a form of rock that incorporated modern jazz and soul. With Mr. Fagen as lead singer and keyboardist, many of their songs, including “My Old School,” “Deacon Blues” and “Hey Nineteen,” were odes to hipster subcultures and social outcasts. Albums such as “Katy Lied,” “Aja” and “Gaucho” were the results of long periods in the studio with session musicians. It was an expensive business model given that Messrs. Fagen and Becker stopped performing in 1974 and didn’t resume until the 1990s. In addition to helping financially, Mr. Fagen’s coming Nightflyers tour will allow him to expand creatively. “Walter wanted to have a light summer,” he said. “Touring alone lets me play songs from my four solo albums and cover other artists’ material, which I don’t get to do with Steely Dan.” Mr. Fagen also will perform new songs. “One is a noir thing I wrote recently called ‘Hardboiled Life.’ Another is about ’50s film creeps— guys who only went to see foreign films. People who now go to film school, I guess.” Touring without Mr. Becker is nothing new. Mr. Fagen did so for two of his four solo albums, and he assembled a touring band with Steely Dan musicians in 2006. He also performed with Michael McDonald and Boz Scaggs in 2010 and 2012 as the Dukes of September. Please see FAGEN page A10 THE WALL STREET JOURNAL. A10 | Thursday, July 27, 2017 LIFE & ARTS ART REVIEW Political Theory In Artistic Practice BY PETER PLAGENS Donald Fagen, above right, with Steely Dan co-founder Walter Becker in 1977 and below, performing at the Rainbow Theatre in London in 1974. FAGEN GETTY IMAGES (2) JEAN-MICHEL SANEJOUAND/PHILADELPHIA MUSEUM OF ART Philadelphia THERE’S AN OLD JOKE about teams of engineers from Germany, Britain and France testing an irrigation system they’ve installed in a developing country. First, the Germans check the switches and gauges and pronounce them fine. Next, the British turn on the power and give a thumbs-up to the way the water flows through the pipes. Last comes the head of the French team, who steps forward and says, “Ah, but does it work in theory?” Installed in two off-thebeaten-path galleries in the enormous Philadelphia Museum of Art, “Unlimited: Painting in France in the 1960s & 1970s,” a cheerfully austere little exhibition of what might be called French “painting-based” abstract art, demonstrates the Gallic predilection for theory. In the exhibition, theory precedes the work that follows, albeit with a connection as tenuous as the one with the waterworks. In the 1960s—culminating in 1968’s violent “days of May”—the youthful Jean-Michel Sanejouand’s ‘Toile de bâche à rayures et châssis bois’ (1964) French art world got drunk on ideas garnered from Roland Barthes, Jacques Derrida, Claude Viallat. Despite the difficult a clutch of avant-garde artists Jacques Lacan and Louis Althusser, attempt, as one of the show’s labels whose work has an aesthetic comalong with quotations from Chairsays, to “demystify painting,” the re- ponent of any size ever being proman Mao. They aimed to dismantle sult is an attractive exhibition that, ductively linked to a “national and and deconstruct practically everywere it to appear in a serious galinternational people’s struggle”; thing in the name of revolution. lery today, would look utterly hip. the Russian Constructivists learned Oddly, the fine art of painting For instance, there’s Mr. Sanejthat the hard way under Stalin. But wasn’t cast aside wholesale as a ouand’s “Toile de bâche à rayures that doesn’t mean the painters in retrograde individualist, beauty-feet châssis bois” (1964), a clean “Unlimited” were insincere in their tishizing and money-entwined brown stretcher frame covered political hopes for art. The heat of bourgeois indulgence. Instead, it only down the middle, with about temporary circumstances, such as was reconceived as a candidate for an empty foot on either side, with the tumult in France in the 1960s, left-wing reinvigoration. awning fabric that’s striped in red, cools down over time, and the art Painters, the thinking went, are dark green, golden yellow and sky created in that moment ends up manual laborers working alone in blue. The piece is simply, albeit re-emerging as simply art. bare-bones studios; they’re not wittily, beautiful. All of the artists in “Unlimited” part of teams of greedy capitalists Mr. Dezeuze’s “Flexible Wood save for Cadere, who died in his 40s, in Pierre Cardin suits crunching Ladder” (1974) is a vertical grid of are still with us, but only Buren benumbers in leather-appointed ofthin wooden strips hanging from came an international art star. The fices. If they’d just forego tradihigh up on the wall down to the museum should be commended for tional oil paints, linen canvas, and concrete floor, where it rolls in on mounting this modest exhibition of the inviolable flat rectangle, it was itself. It’s as formally graceful as an under-known tributary of modern surmised, they might have a shot almost anything the great Ameriart. Not many people, I’d guess, will at being, as the tract of one politican sculptor Martin Puryear has view it. (It’s as hard to find on the cally inclined cohort, Supports/ produced. And “Square Wooden PMA’s website as it is in its floorSurfaces, put it, “a coherent group Bar” (1970) by Cadere, a nominal plan.) Those who do see “Unlimited” linked to the national and internapainting compressed as if by a will get a little jolt, however unintional people’s struggle.” compacting machine into a tall tentional, of artistic joie de vivre. Theory in place, artists with such wooden pole—black but punctua political outlook could go about ated with glowing cross-stripes of Unlimited: Painting in France in reconstituting painting, using such bright color—was carried by the the 1960s & 1970s materials as dish towels, shop awartist in a kind of performance nings, printed fabrics, wooden slats piece into galleries and exhibitions. Philadelphia Museum of Art, through Sept. 24 and rope. In “Unlimited,” the paintMerely leaning against a white muers (listed here democratically in alseum wall almost 50 years after it phabetical order) are Daniel Buren, was made, the work is as elegant Mr. Plagens is an artist and writer André Cadere, Daniel Dezeuze, Noël as modern art gets. in New York. Dolla, Jean-Michel Sanejouand and It’s hard to conceive, though, of Continued from page A9 But the Nightflyers are a little different. Four of the five musicians are in their 20s, which Mr. Fagen says presents exciting challenges. “These guys are used to jamming, so their spontaneity adds a new kind of energy and looseness to the music They have a lot of juice.” The idea for the Nightflyers began in 2014 when Mr. Fagen spotted guitarist Connor Kennedy playing with organist Will Bryant, bassist Brandon Morrison and drummer Lee Falco at the annual Bob Dylan Birthday Celebration concert in Woodstock, N.Y. “The following year I performed with them up there and we played a few local gigs,” he said. “They also backed my stepdaughter (and singer-songwriter) Amy Helm.” Ms. Helm is the daughter of the late Levon Helm and Libby Titus, who is now Mr. Fagen’s wife. Earlier this year, when Mr. Fagen suggested they tour, Mr. Kennedy and the other musicians were ready. “We’ve always been into Donald’s music,” he said. “We don’t have a jazz background, but we love making the music our own thing.” The Nightflyers were named for Mr. Fagen’s 1982 debut solo album, “The Nightfly,” which reached #11 on Billboard’s album chart and was nominated for seven Grammys. As the idea of a late-summer tour took hold, Mr. Fagen decided to add a fifth Nightflyer—Zach Djanikian, a friend of the other band members who sings harmony and plays saxophone and guitar. Gravitating to Woodstock in the 2000s when they were in their teens, many of the Nightflyers were exposed to folk, bluegrass and rock through a network of musicians from the 1960s and ’70s who lived in the area and performed there. “These guys are kind of like me,” Mr. Fagen said of the band. “I’m half trained and half selftaught. Which I think is a good way to develop an original feel. I was defined by my limitations. As a kid, I had what they now call ADHD and a bit of dyslexia, so I had trouble reading music. I learned the way most jazz musicians have since the 1940s—by imitating records.” Several weeks ago at Levon Helm Studios in Woodstock, Mr. Fagen and the Nightflyers rehearsed several songs from Mr. Fagen’s solo albums (“Miss Marlene,” “Green Flower Street,” “Counter- moon” and “New Frontier”). The band also took on Steely Dan songs (“Green Earrings,” “Bad Sneakers,” “Home at Last” and “Dirty Work”) and covers of the Rolling Stones’ “Beast of Burden” and the Beatles’ “I’ll Cry Instead.” Other cover songs are planned for the tour. “I put Chuck Berry’s ‘You Can’t Catch Me’ in a minor key and changed the feel,” Mr. Fagen said. “We’re also doing the Grateful Dead’s ‘Shakedown Street.’ It’s a really nice, funky tune.” Before taking a break, the band rehearsed “Dirty Work.” At the end, one of the Nightflyers suggested adding a higher vocalized “oh yeah” to broaden the harmony. Mr. Fagen, seated at an electric Yamaha keyboard, thought it through for a few seconds. “Yeah, that’s good,” he said. “Let’s do that.” BURNING QUESTION | By Heidi Mitchell DOES MUSIC HELP YOU CONCENTRATE? CAN LISTENING TO MUSIC while preparing a presentation or doing homework help you concentrate? One expert, Alexander Pantelyat, an assistant professor of neurology and the co-founder and co-director of the Johns Hopkins Center for Music and Medicine, sounds off on music’s relationship to language—and whether background music can help you focus on a task. can light up many different parts of the brain. “Music activates as many, if not more, parts of the brain at the same time than any other activity,” Dr. Pantelyat says. This includes the nucleus accumbens, the so-called pleasure center; the caudate nuclei, which are involved in movement planning; and the temporal plane, which is in the heart of the Wernicke area. Around 80% of people process language on the left, or the analytical, side of the brain, Dr. Pantelyat says, and everyone processes music on both sides of the brain. Increased connectivity in the parts of the brain that understand and produce language has been observed in people who studied music for as little time as two years. That may make it harder for those who “speak” the language of music to focus on other language-related tasks—but it may also have other benefits that aren’t clear. “I’ve been playing violin since I was 7, and I personally find it hard to disengage from actively processing any music analytically, and my colleagues say the same,” he says. He finds that music distracts him from work. A study published in the journal Nature in 1993 showed that listening to specific music can affect spatial task performance, though the reasons remain unclear. The theory was called the Mozart Effect because the researchers used Mozart’s Sonata for Two Pianos in D major in their study, which involved 36 students. Several follow-up studies have suggested that Mozart’s music may have a small, positive short-term effect on the ability to draw conclusions about objects from limited visual clues. The original studies were on adults; later research included babies. Some of the findings were so popular that in 1998 the governor of Georgia proposed earmarking more than $100,000 to buy Mozart tapes and CDs for parents of newborns to increase their babies’ IQs. The problem, Dr. Pantelyat says, is that the Mozart Effect hasn’t been shown to have clear benefits beyond the 10 to 15 minutes during which subjects in studies were engaged in tasks. Could There Be a Slayer Effect? If you’re drawn to a particular type of music, such as classical, you’re more likely to focus TAYLOR CALLERY The Mozart Effect better while hearing that rather than a genre you don’t like. “If you enjoy heavy metal, you might be more focused when you listen to it,” says Dr. Pantelyat, who studies how music can be used as medicine and how musicians should be treated for occupational ailments. However, loud and fast sounds also have been shown to be fairly distracting. The distractions increase when words en- The Work Playlist ter the picture. “If you add lyrics, you’re activating the Wernicke area, where language is processed, and other parts of the temporal lobe, and this may divert your attention or possibly overload the brain’s attentional capacity,” he says. “Imagine listening to two languages at the same time while working. Of course that’s distracting.” Lots of studies have suggested that music Dr. Pantelyat says that if you accept that music can make a person feel happy or sad, then you can see how it can influence attention. However, the effects of listening to music are highly individual and based on experience and pleasure. When trying to focus, Dr. Pantelyat says, listen to music that you enjoy that doesn’t have lyrics or settle for ambient noise: “Just put the pedal to the metal and avoid any other ongoing narrative in the brain.” THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A11 LIFE & ARTS SIGHTINGS | By Terry Teachout Pittsfield, Mass. NORMAN ROCKWELL’S greatest painting is being hijacked—by the museum that owns it. “Shuffleton’s Barbershop” is a 1950 portrait of three amateur musicians that Rockwell gave to the Berkshire Museum in Pittsfield, Mass., not far from his Stockbridge home. Widely known and loved, the painting is even admired by critics who sneer at the rest of his homey oeuvre. Nevertheless, the museum is putting it on the block, along with a second Rockwell and 38 other works by such major artists as Albert Bierstadt, Alexander Calder and Augustus Saint-Gaudens. The reason? Van Shields, director of the Berkshire Museum, wants to “reboot” (his word) the institution, transforming it into a museum of science, history and the arts full of up-to-the-minute interactive technology. The price tag is $60 million—$20 million to renovate the museum’s 1903 building and the rest for a much-needed endowment. The art is being sold to pay the tab because, in the bland language of the museum’s press release, it is “deemed no longer essential to the Museum’s new interdisciplinary programs.” Proceeds will go toward the endowment first, with anything left over directed toward the building costs. It’s not unusual for museums to sell art, but an offloading of this size can’t help looking like a fire sale. That’s triggered a storm of protest led by Laurie Norton Moffatt, director of Stockbridge’s Norman Rockwell Museum, who told the Berkshire Eagle, “To think that selling the art will save the future [of the museum] is simply to push the challenge down the road while diminishing the strength of the institution.” The announcement has also caught the eye of professional bodies. Because art museums are public institutions whose collections are held in trust, strict rules govern the “deaccessioning” (selling) of works from their collections. Rule No. 1 is that art can be sold only to acquire more art, and the Association of Art Museum Directors further stipulates that proceeds may never be used “as operating funds, to build a general endowment, or for any other expenses.” Not surprisingly, the AAMD and the American Alliance of Museums issued a joint statement on Tuesday calling the proposed sale “an irredeemable loss for the present and for generations to come.” © 1950 SEPS/CURTIS LICENSING INDIANAPOLIS, IN A Museum Schedules a Fire Sale Norman Rockwell’s ‘Shuffleton’s Barbershop’ (1950), in the collection of the Berkshire Museum The Berkshire Museum, however, is not an art museum per se. A collection of 40,000-odd objects ranging from Hudson River School paintings to mummies and stuffed birds, it’s reminiscent of the New England “historical societies” that John P. Marquand described in a novel as charmingly eccentric muddles of “aboriginal arrowheads, muskets, candle molds, foot warmers, pine dressers, Chippendale sideboards, Lowestoft, pewter, and whales’ teeth and four-poster beds.” Its eccentricity was once part of its charm. But can an old-fashioned curiosity shop hold its own amid newer outposts like Mass MoCA and expanded, revitalized institutions like the Clark Art Institute—not to mention the Rockwell Museum itself? Probably not. In any case, the Berkshire Museum has already evolved into something closer to a children’s museum, a place where no one goes to see art. When I dropped by on Monday, the big draw was a show called “Guitar: The Instrument That Rocked the World.” “Shuffleton’s Barbershop” hasn’t been on view since 2015. Sadly, the Berkshire Museum isn’t alone in its change of priorities. As public taste continues to shift, more and more museums now see themselves not just as temples of fine art but also as clean, well-lighted community centers where busy people go for casual entertainment and a good lunch. Small wonder, then, that their permanent collections are coming to be viewed as cash machines. When the University of Iowa was flooded in 2008, a group of legislators proposed that the UI Museum of Art sell Jackson Pollock’s “Mural” (1943) to underwrite the cleanup. Fortunately, that didn’t happen, but plenty of smaller museums own a few world-class works that could easily be sold off to raise funds for any number of worthysounding causes. I’m unalterably opposed to monetizing museum collections. On the other hand—reluctant as I am to admit it—I fear that “Shuffleton’s Barbershop” has no place in a trend-chasing museum of the kind that Mr. Shields Should hungers to build. If masterpieces be so, then it needs a new home, and sold to fund there’s a better a ‘reboot’? way to get it. In 2006, Philadelphia’s civic leaders joined forces to stop Thomas Eakins’s “The Gross Clinic” from being sold to Arkansas’ Crystal Bridges Museum by the local medical college where it had hung since 1875. Now it’s jointly owned by the Philadelphia Museum of Art and the Pennsylvania Academy of Fine Arts, meaning that a masterpiece by a Philadelphia artist depicting a prominent Philadelphian has remained in the city of its birth. In response to the controversy over the proposed sale, Mr. Shields told the Berkshire Eagle that “at the end of the day, the board [of the museum] chose this community over national professional associations.” Fine— but if he really cares about the community, let him give first dibs on “Shuffleton’s Barbershop” to a local museum, thus ensuring that it stays in Rockwell country. Otherwise, it will be hard to escape the conclusion that what Mr. Shields and his board are doing is auctioning off a piece of Pittsfield’s soul to the highest bidder. Mr. Teachout, the Journal’s drama critic, writes “Sightings,” a column about the arts, every other week. Write to him at firstname.lastname@example.org. WSJ TALK / E XPERIENCE / OFFE R / GE TAWAY Learn From Master Chefs at Home From weeknight dinners to holiday feasts, learn from James Beard Award winning chefs with a complimentary online cooking class from Panna. In the comfort of your own kitchen, choose from more than 20 classes and dive into a range of cuisines and topics. EXCLUSIVE TO WSJ MEMBERS REDEEM NOW AT WSJPLUS.COM/PANNA © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5779 A12 | Thursday, July 27, 2017 THE WALL STREET JOURNAL. * *** SPORTS TENNIS DJOKOVIC WILL MISS U.S. OPEN BY TOM PERROTTA DAVID BANKS/GETTY IMAGES AFTER A disappointing season and increasing pain in his right elbow, tennis star Novak Djokovic said he is done for the year, including next month’s U.S. Open. Djokovic said that the decision came after consulting with several doctors, including a few in Toronto that Djokovic met with the help of Andre Agassi, the former No. 1 American who has been working with Djokovic since May. Djokovic said Agassi agreed that his recent pain has been too much and that he needed a break. “My elbow is hurt due to excessive playing, and it troubles me constantly when serving, and now when playing forehand as well,” Djokovic said. “My body has its limits.” The precise details of Djokovic’s elbow woes remain unknown. The pain is clear, as it was at Wimbledon this season, when Djokovic retired in his quarterfinal match. He seemed to have similar struggles in last year’s U.S. Open final too, when he lost to Stan Wawrinka. But Djokovic, who said he will make no more comments on his injury, did not say whether or not he would need surgery to heal properly. Instead, he seems likely to rest and then slowly work on his strokes and health, and then return to competition at the start of 2018. By then his ranking, now No. 4, will have fallen further. “I will use the upcoming period to strengthen my body and also to improve certain tennis elements that I have not been able to work on over the past years, due to a demanding schedule,” Djokovic said. “There is so much I want to do.” Djokovic has another role during his time off, too: Being with his wife, Jelena, when she delivers their second child. “These are things that fill me with greatest happiness and delight,” Djokovic said. “I’m confident I will be ready for start of the new season.” The Chicago White Sox recently promoted Yoan Moncada, who the team acquired in an offseason deal with the Boston Red Sox for pitcher Chris Sale. MLB A Blueprint for a Brighter Future The Chicago White Sox have embarked on a scorched-earth rebuild that could set a new standard A day later, they shipped outfielder Adam Eaton to the Washington Nationals for three more prospects, including former firstround draft pick Lucas Giolito. Then in the past two weeks, they blew the rest up, swinging deals with the Chicago Cubs and New York Yankees that netted them seven more minor-leaguers in exchange for star lefty Jose Quintana, infielder Todd Frazier and relievers David Robertson and Tommy Kahnle. And there could still be more to come before the July 31 non-waiver trade deadline. The White Sox, the American League’s worst team, have already acquired 15 prospects in trades over the last eight months, including three ranked in the top 12 in baseball by MLB.com. That, coupled with the signing of heralded outfielder Luis Robert, a 19-yearold from Cuba, has turned a unremarkable White Sox farm system into arguably the industry’s best— a stunningly rapid turnaround. The promise of that future has started to arrive. The White Sox promoted Moncada last week to replace Frazier, with others likely to follow in the next year or two. “We’re certainly pleased with how things have started off in this process,” Hahn said. “We know it’s going to take time, and we know we still have a lot of work to do.” At this point, it’s impossible to deny that Chicago’s current ap- BY JARED DIAMOND ALASTAIR GRANT/ASSOCIATED PRESS ABOUT THIS TIME last year, Rick Hahn stood in front of the Chicago media corps and uttered the phrase that could come to define his tenure as White Sox general manager: “mired in mediocrity.” Hahn had used the news conference to announce that the White Sox, a franchise stuck in neutral despite repeated bold attempts to contend, needed a significant change. He also gave baseball on the South Side a memorable slogan. “Once I finished, our VP of communications said, ‘You had to use alliteration? You know that alliteration is going to be what’s taken away,” Hahn said in a recent interview. “Although inadvertent, it was reflective of the conversations I had with others around the organization expressing similar frustrations with annually trying to patch this thing together, instead of trying to build something sustainable for an extended period of time.” Since then, the White Sox have embarked on a scorched-earth rebuild that could set a new standard for how to repair a struggling franchise. In December, they traded ace Chris Sale to the Boston Red Sox for a package that featured Yoan Moncada, perhaps the sport’s best prospect, and Michael Kopech, a pitcher who throws over 100 mph. 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By the time Hahn dealt Sale and Eaton, Frazier said he knew that if the White Sox didn’t jump out to a hot start, “Some things are going to happen.” Once Quintana was traded, Frazier recognized it was only a matter of time. “I said, ‘All right, who’s next?’” Frazier said. “It was a flip of a coin between a couple guys.” In Hahn’s ideal world, the White Sox might have gotten here sooner. He said that there have been other moments where he and Williams proposed a total rebuild, as the team heads toward its fifth straight losing season. A few years ago, the White Sox fan base might not have been quite so understanding. The same goes for longtime owner Jerry Reinsdorf, who at age 81 is quick to remind Hahn that he “is in a little different position in terms of the patience he has to show in the short term,” Hahn said. The difference now is that fans are more receptive to this approach than ever before, Hahn said, because they “have seen the success of similar such processes around the league.” “We weren’t sure how it was going to be received,” Hahn said. “Even if, for whatever reason, fans didn’t take to it, we believe it’s going to be short-term suffering for long-term benefit.” The WSJ Daily Crossword | Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 60s proach—one that Hahn and executive vice president Ken Williams advocated for heavily—works. The Cubs, the reigning World Series champions, and the Houston Astros, the AL’s best team, proved as much. Under the direction of progressive, data-driven leaders, both franchises opted to completely dismantle their rosters in order to rebuild from the ground up, enduring several seasons of misery to accumulate talent. Whether you call it “tanking” or simply a sound strategy, this much seems clear: The most successful rebuilds are the most aggressive rebuilds. Teams that try to tread water drown; the ones that survive dive into the water headfirst. After all, whether the White Sox lose 100 games or 85 games in a given season, the result is the same: They miss the playoffs. At least the 100-loss season leads to a coveted high draft pick, one of the few ways for teams to acquire potential stars before their primes. It’s that realization that has made these kinds of rebuilds more prevalent. Not long ago, the White Sox thought they had the foundation of a championship team already in place. They had a formidable duo at the top of the rotation in Sale and Quintana, a proven closer in Robertson and powerful sluggers in Frazier and first baseman Jose Abreu. The White Sox felt vindicated when they opened 2016 with a re- 57 Letter three before 15-Across 22 Nabisco bestseller 58 Was attractive 25 Reactor part 61 Mineo of movies 26 Stiff 17thcentury collars 62 Paleozoic, for one Previous Puzzle’s Solution A L V A C O A T S M A N T A S T A B S P A U L A A K R O N E N D I V E E A T E R I RW I Q U I E S E N S T M A R L I E N N T E E R A D V L E T O W I A N T N M T A E Y A R A T A T S E A G A Y N O O N E N Y M P E H S P S N T E R R A D V A V I I L A S S H O E C U T S A A R B U A G G A R N E N I G M A A R E MO R T E R M A Y E R O D E O N S E R F S E A V E S S N A G S A N A T THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A13 OPINION The Post-Hillary Democrats On climate change, Democrats believe they know to the 10th decimal place that Earth is on the WONDER brink of an LAND a p o c a l y p s e. By Daniel But by their Henninger own admission this week, they don’t have a clue about which way the wind is blowing with the American voter. On Monday the Democrats released something called “A Better Deal,” a set of policy ideas to win back voters. Think of it as the party laying down the first quarter-mile of blacktop on its road back to power. The short version of “A Better Deal” is that they would bust up corporate trusts (Teddy Roosevelt, circa 1902), ramp up public-works spending (FDR, circa the Great Depression) and enact various tax credits (Washington, circa eternity). The more interesting question here lies in the document’s unspoken subtext: How in God’s name did we lose a presidential election to . . . him? In a recent Washington Post interview, one of Hillary Clinton’s closest advisers, Jake Sullivan, admits, “I am still losing sleep. I’m still thinking about what I could have done differently.” Who wouldn’t? What happened Nov. 8 was like losing five Super Bowls in one day. Hillary Clinton has taken to citing one fact: “Remember, I did win more than three million [more] votes than my opponent.” True, notwithstanding the pesky two-centuries-old Electoral College vote, which she lost. Here’s another fact that still poses a maddening question for many: Donald J. Trump got more than 62 million votes. It wasn’t long before Election Day that many political sophisticates wondered how Donald Trump would get 620 votes, much less 62 million—after the McCain slander, the “Access Hollywood” tape, the generalized ignorance. A conventional explanation for the loss—and we know this because Chuck Schumer conventionalized it last weekend—is to blame her. “When you lose to somebody who has 40% popularity,” said Sen. Schumer, “you don’t blame other things—Comey, Russia— you blame yourself.” This is rich. It’s almost oxymoronic. The reason Democrats lost to him is that they had an unelectable candidate. But if both parties were running “unelectable” candidates, then a lot of that day’s 138 million voters based their decisions on something more concrete than the personalities of two celebrities. Hillary Clinton was running as the extension of Barack Obama’s two-term presidency. If the Democrats are now throwing her under the bus, Mr. Obama is down there with her. The Obama presidency was a watershed for the Democratic Party for reasons having little to do with his historic candidacy. Mr. Obama moved his party significantly to the left, arguably as Ronald Reagan had moved his to the right. But those two buzzwords—left and right—have substantive meaning. In practice, the Obama years constituted an abrupt enhancement of state power. ObamaCare was the tip of the iceberg. How in God’s name, they wonder, did we ever lose the 2016 election to him? Barack Obama was as smooth as Bill Clinton was slick, and he used his eloquence to soften the hard edges of the many policy coercions by his Justice, Labor and Education departments and the omnipresent EPA. In 2016, the Clintons, especially the ex-president, recognized the risks of running on this leftward legacy in a general election. Thus Hillary’s efforts to essentially talk and fog her way past that reality. But Bernie Sanders wouldn’t let her. Like Banquo’s ghost, Bernie reminded voters for months what the real face of the Democratic Party looked like—the unelectable left. Yes, some forgotten voters in Pennsylvania, Wisconsin and Michigan tipped the vote to Mr. Trump. But those states turned because millions of more-easily identified voters dumped the Obama Democrats, too. A total surprise? I’d say there were at least five canaries in the Democrats’ fatal 2016 mineshaft. Any map of the party’s famous “blue wall” of electoral votes includes Maryland, Massachusetts, Michigan, Wisconsin and Illinois. What each of those deep-blue states has in common is that their presumably liberal, Democratic voters have elected Republican governors—Larry Hogan in Maryland, Charlie Baker in Massachusetts, Rick Snyder in Michigan, Bruce Rauner in Illinois and Scott Walker in Wisconsin. Throw in Chris Christie in irredeemably blue New Jersey. Maryland’s Mr. Hogan is the benchmark. He won in 2014 because his Democratic predecessor, Martin O’Malley, desperate for revenue, had taxed Maryland’s people unto death. Naturally, Mr. O’Malley then ran for the Democratic presidential nomination. Obama-era Democrats barely admit the states as part of the American system, and they obviously dismissed as irrelevant these GOP governors winning inside blue-wall states. I almost forgot—the Better Deal. It sounds a lot like the federal spending initiatives in JFK’s New Frontier, except for one element: the Kennedy tax cuts of 1964. In anyone’s lifetime, a tax under a Democratic president can go only one way. “Better” would not be the word for it. That, too, is the sort of thing voters would notice when forced to choose between a Democrat and a Trump. Write email@example.com. How Long Can the Trump Tumult Go On? By Karl Rove E ven for this dramatic administration, the past seven days have been extraordinary. Start a week ago Wednesday, when President Trump said Attorney General Jeff Sessions “should have never recused himself” from the investigation of Russian electoral meddling, calling the recusal “very unfair.” These comments were followed by the unlikely rumor that the Trump legal team would go after Special Counsel Robert Mueller’s staff, along with more-plausible suggestions that the president might fire Mr. Mueller. On Friday, Mr. Trump appointed New York financier Anthony Scaramucci as White House communications director, prompting press secretary Sean Spicer to resign. This all sparked speculation about the standing of chief of staff Reince Priebus and chief strategist Steve Bannon, both of whom allegedly opposed hiring Mr. Scaramucci. Then on Monday, a Senate panel interviewed White House senior adviser Jared Kushner about a July 2016 meeting with a Russian lawyer. That meeting was organized by Donald Trump Jr., who had received an email saying Russian officials possessed “documents and information that would incriminate Hillary.” Young Mr. Trump was told this “very high level and sensitive information” was “part of Russia and its government’s support” for his father. The following day, the president renewed his attacks on his attorney general, tweeting that Mr. Sessions had taken “a VERY weak position on Hillary Clinton crimes (where are E-mails & DNC server) & Intel leakers!” Later, during a Rose Garden presser, Mr. Trump lamented that he was “very disappointed in Jeff Sessions.” This has been a wild week, even for him. It also ought to be a wake-up call. During this swirl of events, Team Trump portrayed Mr. Scaramucci’s appointment as a major reset, saying the president was his administration’s best communicator and that he would benefit from delivering more of his message directly. But this is a misdiagnosis of what ails the administration’s public relations. The president’s job-performance rating has dropped from an even 44% approval and disapproval on Jan. 27 to 40% approval and 55% disapproval this Wednesday, according to the RealClearPolitics average. Mr. Trump’s ratings are sliding because of his own messages and actions, not those of his subordinates. In addition, although Mr. Scaramucci is an effective, personable advocate for Mr. Trump, his ultimate value must come from planning and executing a coherent communications strategy that results in a disciplined message and advances the president’s agenda. This requires working with the entire White House leadership, the rest of the administration, congressional Republicans and outside allies. It can be done only with consultation, thoughtfulness, collegiality and constant thinking ahead. The communications director’s job is complicated even in normal presidencies, which this isn’t. One of Mr. Scaramucci’s strengths is his relationship with Mr. Trump. He can assist the president most by using his influence to help Mr. Trump resist his worst impulses. The president could demonstrate that this isn’t an impossible hope by ending his public humiliation of Mr. Sessions, which is unfair, unjustified, unseemly and stupid. Mr. Trump should consider how ugly the next six months will be if he continues attacking Mr. Sessions. If he fires the attorney general, the president will guarantee that every other message is buried under bad press as he deals with the fallout and searches for an acceptable replacement. Senate Democrats would spend months tormenting that person during confirmation proceedings, and even Republican senators would raise tough questions. If Mr. Trump instead makes a recess appointment, a crisis will ensue. For the record, Justice Department rules require Mr. Sessions to recuse himself from any investigation that touches the Trump campaign. Those rules—required by federal law—dictate that no Justice official “shall participate” in an investigation “if he has a personal or political relationship with . . . any person or organization substantially involved . . . that is the subject of the investigation.” This is why then-Attorney General John Ashcroft recused himself after the Valerie Plame incident. (I was involved in the matter and had previously been Mr. Ashcroft’s campaign consultant.) Mr. Sessions, a decent and principled man, is doing his best to further the Trump agenda and restore the Justice Department’s tattered reputation. That the president is publicly shaming him, heedless of the damage it’s causing, shows just how vindictive, impulsive and shortsighted Mr. Trump can be. This past tumultuous week should wake up the president and all those around him. If Mr. Trump continues this self-destructive behavior, he will drown out his message and maybe even blast his presidency to bits before his first year in office is even out. Mr. Rove helped organize the political-action committee American Crossroads and is the author of “The Triumph of William McKinley ” (Simon & Schuster, 2015). Striking the Right Balance on Asset Seizures By George J. Terwilliger III A critical way of ensuring crime doesn’t pay is for law enforcement to seize the proceeds of drug deals or other illegal activity. This process, called asset forfeiture, is a valued part of a comprehensive criminal-justice program, but proper oversight is needed to prevent abuse. Last week Attorney General Jeff Sessions restarted the longstanding practice, suspended by the Obama administration in 2015, of allowing state authorities to use federal forfeiture procedures. Mr. Sessions also introduced important safeguards to protect innocent people. Still, critics challenged the practice’s reinstatement, citing instances when police wrongly took property from people who turned out to be innocent. The correct response to such concerns, however, isn’t to end asset forfeiture but to fix it. Every day brings news of American families devastated by violence or drug use. Overdoses are a common occurrence. These tragedies are the work of criminal gangs that flood the streets with drugs and turn urban cores into combat zones. Such gangs exist for one simple reason: to make money. Forfeiture is a vital tool, and safeguards will prevent abuse. Trafficking drugs, firearms and human beings is a means to their enrichment. Gang leaders get the cash but often evade prosecution by remaining distant from the provable dirty work. Taking away their money is therefore as important as seizing their contraband and putting their minions in prison. At the same time, it’s important to protect innocent people from erroneous seizures. Mr. Sessions’s new guidelines say that state or local agencies seeking forfeiture under federal law must demonstrate probable cause within 15 days of the seizure. The sponsoring federal agency must notify the property’s owner within 45 days, so he can challenge it, including by going to court. Both of these time lines are twice as fast as required by law. And the probable-cause standard is the same one police have to meet before making an arrest or getting a search warrant. Mr. Sessions also strengthened oversight for seizures of smaller amounts of cash— $10,000 or under—and directed greater caution and restraint in forfeiting homes and vehicles. Scrutiny of these types of seizures by Justice Department lawyers will be ratcheted up to prevent and catch any overuse or abuse. Police generally are careful and conscientious, including with asset forfeiture, which is why wrongful seizures are the exception. Smart law-enforcement leaders also know that if the practice is abused and innocent people are hurt, they could lose access to this valuable tool. President Trump has directed his administration to attack the violence and drug trafficking afflicting American cities and towns. Drug money and other proceeds of organized crime fuel the engine of cartel and gang violence, while corrupting foreign government officials. It makes sense to target that money for seizure and then use it to offset the financial burden criminals impose on taxpayers. The increased scrutiny of asset forfeiture Mr. Sessions has directed will help ensure the innocent are protected—while still allowing police to turn dirty money against the criminals who illegally acquired it. Mr. Terwilliger, a partner in the Washington office of McGuireWoods LLP, was deputy attorney general, 1991-93. BOOKSHELF | By Vincent J. Cannato The Pragmatist And the Reformer Kennedy and King By Steven Levingston (Hachette, 511 pages, $28) W as John F. Kennedy a champion of civil rights, as much of the public today imagines, or merely a bystander swept up by the movement? Was Martin Luther King Jr. a moderate who sought only a color-blind nation, or was he a socialist seeking a broader, more radical transformation of American society? In his insightful and well-crafted “Kennedy and King,” Steven Levingston attempts to bring greater clarity to these questions, illuminating the stories of both men and their complicated relationship during a tumultuous era. Mr. Levingston’s history charts the uneasy dance between the young civil-rights leader and the charismatic Massachusetts politician in the 1950s and ’60s. The book begins with parallel biographical sketches of Kennedy and King, whose stories converge during the 1960 presidential race and intertwine over the course of the Freedom Rides, the March on Washington and other dramatic episodes in the campaign for civil rights. Using mostly secondary sources, Mr. Levingston argues that King’s leadership nudged a reluctant president to act. Mr. Levingston makes clear, for example, that it wasn’t until the very end of his life that Kennedy, despite becoming “the nation’s first civil rights president,” developed an emotional feel for the concerns of black Americans. King was imbued with a deep moralism, but Kennedy was ever the pragmatist, always seeking out the optimal political angle. Kennedy knew that, for any Democrat of his era, a successful run at the White House would mean appeasing white Southern segregationists. Though he eventually voted for the 1957 Civil Rights Act, Kennedy first supported his Southern colleagues’ successful efforts to water down the bill. The cloud of those efforts hung over the 1960 presidential race against Richard Nixon. Kennedy faced a difficult balancing act: Southern votes may have been essential to victory, but Kennedy also needed black support in states like New York, Illinois and Pennsylvania. He initially sought to woo baseball great Jackie Robinson away from his traditional support for Republicans, but when Robinson proved cool to the Massachusetts senator’s overtures, Kennedy turned to the leading black celebrity of the period: singer Harry Belafonte. It was Mr. Belafonte who informed Kennedy of the importance of King and who brokered a meeting between the two men in June. Kennedy and King left mutually unimpressed. It wasn’t until the eve of the election that Kennedy began to make inroads. When King was jailed in Georgia in October 1960, Kennedy’s brother-in-law Sargent Shriver persuaded the Democratic presidential candidate—over the angry objections of Bobby Kennedy—to place a call to King’s wife, Coretta. The conversation lasted less than two minutes, but the simple gesture began to change perceptions of Kennedy in the black community. While it was not enough to secure King’s endorsement, King’s father publicly announced that he was switching his vote from Nixon to Kennedy. It was Harry Belafonte who told JFK about the importance of Martin Luther King Jr. When the two leaders met, they were mutually unimpressed. After the election was won, however, King had to push Kennedy to use his powers for the cause of civil rights, and the process was slow. When a ceremony was planned, for September 1962, to honor the 100th anniversary of the Emancipation Proclamation, Kennedy bowed out of an appearance, preferring instead to be in Newport, R.I., for the America’s Cup races. And when Mississippi Gov. Ross Barnett, in the same month, brazenly defied the Supreme Court and refused black student James Meredith admission to Ole Miss, the Kennedy Justice Department preferred to bargain with the segregationist holdout behind the scenes. This move reflected the administration’s general approach: keep the peace while moving integration ahead at a moderate pace. Kennedy’s speech to the nation on the Mississippi resistance was, in King’s estimation, disappointingly legalistic, failing to educate the country about the incident’s deeper moral truths. By June 1963, however, Kennedy’s rhetoric had changed. Mr. Levingston argues that it was the spectacle of Gov. George Wallace, on June 11, blocking the schoolhouse door to black students at the University of Alabama that led Kennedy to act. He instructed his speechwriter, Ted Sorensen, to come up with a major civil-rights address that would be televised live that evening. In those remarks, Kennedy described civil rights as “a moral issue . . . as old as the scriptures and . . . as clear as the American Constitution” and announced his intention to send a civil-rights bill to Congress. Mr. Levingston contends that this speech marked the turning point in Kennedy’s evolution on civil rights, whereby the president had now fully “embraced black justice.” The arc of Kennedy’s moral evolution as presented by Mr. Levingston is perhaps a bit too pat. Kennedy’s eventual (though still tempered) embrace of the black freedom struggle may have been a legitimate moral conversion spurred by King and others, or it may have been a political calculation based on the idea that the era of Southern segregationists was waning. The full picture is surely more complicated and less knowable than Mr. Levingston suggests. After a near storybook ending, Mr. Levingston veers offcourse with his conclusion. Noting recent high-profile police shootings of African-Americans, he writes that, after the civil-rights movement’s great successes, “America has stumbled backward.” Today’s race problems may be challenging, but to ignore the tremendous progress that has been made since the early 1960s is myopic. Despite this bow to progressive politics, “Kennedy and King” is fundamentally traditional—a book about “great men” in history and their centrality in shaping events. Without slighting the grass-roots civil-rights movement, Mr. Levingston shows how the long-running conversation between King and Kennedy—only rarely conducted face to face—helped pressure segregationists and place civil rights on the Washington agenda. At a time when cynicism about our political system abounds, Mr. Levingston’s story reminds us that outsiders can prod those in power toward progress and reform. Mr. Cannato teaches history at the University of Massachusetts Boston. THE WALL STREET JOURNAL. A14 | Thursday, July 27, 2017 OPINION REVIEW & OUTLOOK P Why Jeff Sessions Recused resident Trump lashed out again presidential election and that includes investiWednesday at Jeff Sessions, and his fury gating the nature of any links between individuover the Attorney General’s recusal from als associated with the Trump campaign and the the Russia campaign-meddling Russian government and The AG wasn’t weak. probe may take the President whether there was any coordidown a self-destructive path. nation.” He was following the So this is a good moment to exSome legal sages say this law and sound advice. means Mr. Sessions did not plain why Mr. Sessions felt obliged to recuse himself and have to recuse himself because why it was proper to do so. this was a “counterintelliMr. Trump seems to think Mr. Sessions re- gence,” not a criminal, probe. But you have to cused himself in March due to a failure of politi- be credulous to think Mr. Comey would ignore cal nerve after news broke that he had met with potential crimes if he found them in the course the Russian ambassador during the 2016 cam- of counterintelligence work. Mr. Sessions might paign. Mr. Sessions did recuse himself shortly have become a subject of the probe because of after that story broke, and the AG didn’t help by his meetings with the Russian ambassador. forgetting to report those meetings during his The AG had no way of knowing where the inconfirmation hearing. vestigation would lead, and the ethical considBut Mr. Sessions and his advisers had been erations were serious as the post-Watergate considering recusal long before that story statute makes clear. During his confirmation broke—and for reasons rooted in law and Jus- hearing in January, Mr. Sessions had promised tice Department policy. that “if a specific matter arose where I believed After Watergate in 1978, Congress passed a my impartiality might reasonably be queslaw requiring “the disqualification of any officer tioned, I would consult with Department ethics or employee of the Department of Justice, in- officials regarding the most appropriate way cluding a United States attorney or a member to proceed.” of such attorney’s staff, from participation in a Mr. Sessions fulfilled that promise, and on particular investigation or prosecution if such March 2 he announced that he’d recuse himself participation may result in a personal, financial, “from any existing or future investigations of any or political conflict of interest, or the appear- matters related in any way to the campaigns for ance thereof.” President of the United States” based on the adThe Justice Department implemented this vice of senior career Justice officials. Imagine the language with rule 28 CFR Sec. 45.2. This bars media storm if word leaked that Mr. Sessions had employees from probes if they have a personal ignored his department’s ethics officials. or political relationship with “any person or orMr. Sessions’s recusal helped Mr. Trump for ganization substantially involved in the conduct a time by eliminating an easy conflict-of-interthat is the subject of the investigation or prose- est target for Democrats. The calls for a special cution” or which they know “has a specific and prosecutor died down. They only erupted again substantial interest that would be directly af- in May after Mr. Trump fired Mr. Comey and fected by the outcome of the investigation or tweeted his phony threat that there might be prosecution.” White House tapes. This language didn’t apply to Mr. Sessions We understand Mr. Trump’s anger at special during his confirmation process because he counsel Robert Mueller’s open-ended Russia didn’t know the contours of the FBI and Justice probe, and Deputy AG Rod Rosenstein made a investigation. But the AG soon learned after he mistake in appointing Mr. Mueller, who is close arrived at Main Justice in February that the in- to Mr. Comey and part of the FBI fraternity. Mr. vestigation included individuals associated with Rosenstein should have selected a more disinthe Trump presidential campaign. terested special counsel, and even now the Mr. Mr. Sessions had worked on the campaign, Rosenstein should insist that Mr. Mueller inand he clearly had personal and political rela- vestigate Clinton campaign contacts with the tionships with probable subjects of the investi- Russians, as our colleague Holman Jenkins Jr. gation. These included former National Security has argued. Adviser Michael Flynn, former campaign manBut Mr. Trump will only compound the probager Paul Manafort, and potentially others. lem now if he fires Mr. Sessions and appoints a James Comey publicly confirmed this on replacement who fires Mr. Mueller. He will cause March 20 when he told the House Intelligence multiple resignations and bipartisan talk of imCommittee that the FBI “as part of our counter- peachment. Mr. Sessions acted honorably in reintelligence mission, is investigating the Russian cusing himself, and the President should let him government’s efforts to interfere in the 2016 do his job without harassment. Michigan Union to Animal Crew: Hoof It M uch fuss has been made about robots white kid born this spring. stealing workers’ jobs, but at Western The union claims the goats actually count as Michigan University caprine competi- subcontractors, and by that anthropomorphic tion has the goat of the union reasoning it’s claiming a violarepresenting landscapers. Af- Four-footed competition tion of the school’s collectivescme Local 1668 is moving forbargaining agreement. puts the fear of goat ward with a grievance after Though the formal union into organized labor. the university deployed a 20grievance is exempt from pubgoat crew to clear poison ivy lic disclosure, a Local 1668 and other weeds from campus Facebook post blamed the anithis summer. mals for the fact that nine union members had WMU insists that the goats have not displaced lost jobs on campus. workers. Before the university hired the animals, WMU’s students, who graduate with more the wooded areas grew wild. The toxic plants than $26,000 in debt on average, may wish would otherwise require chemical removal, and more work could be assigned to animals. Last human workers would risk rashes and thistles, year the university estimated that by using but the goats can eat up to five pounds of tough goats instead of groundskeepers, it could save vegetation a day. The WMU community even got $1,350 for each acre cleared. Plus, they’re exto name the littlest worker, a plucky brown and perts in the field. T ObamaCare’s GOP Preservers he Senate voted 45-55 Wednesday not ocrats will portray as a vote for repeal. But the to repeal ObamaCare with a two-year GOP voters who helped him eke out a roughly delay to replace it, and the only conso- 10,000-vote victory in 2012 will rightly judge lation for Republicans is the the opposite from WednesSeven Republicans clarity of seeing who voted to day’s vote. Don’t bet the forpreserve and protect rather tune in the Vegas casinos or on pull a switcheroo as than repeal and replace. a second Heller term. repeal fails, 45-55. Congress had passed and Then there’s Rand Paul of sent to Barack Obama’s desk Kentucky and Mike Lee of a similar measure in 2015, Utah, who voted for repeal with support from every current Senate Re- and will soon be flaunting their self-styled reppublican except Susan Collins of Maine. This utations as the only political saints in Sin City. time seven voted no, including Rob Portman The reality is that their long refusal to vote for of Ohio and Shelley Moore Capito of West Vir- less-than-perfect repeal gave decisive leverage ginia, who aren’t up for re-election until 2022 to Senate GOP moderates, who have combined and 2020, respectively. If you’re going to re- to water down reform. nege on your political promises, better to do The practical effect will likely be to squander it early, we suppose. a historic opportunity to put Medicaid on a susThe repeal failure follows a Tuesday vote tainable budget and better serve the truly in which nine Republicans defeated a package needy rather than able-bodied adults. Can we to replace parts of the law and rehabilitate at least no longer hear lectures from Mr. Paul Medicaid, which went down 43-57. Only three of the kind he offered in January that we “can Republicans voted against both, or to maintain absolutely not balance a budget” without adthe undiluted status quo: Ms. Collins, Lisa dressing entitlements? Murkowski of Alaska, and Dean Heller of NeThe Senate is continuing to debate amendvada. ments in a crush of votes, and no one knows In 2015 Ms. Murkowski’s office put out an what will result. The most likely possibility is encomium to her many efforts to unwind a “skinny repeal” that kills discrete features of ObamaCare, which she voted against in 2009. ObamaCare like the employer and individual (See nearby.) Ms. Murkowski has co-sponsored mandates and medical device tax. Moving even bills to delay the individual mandate and to nix a “skinny bill” into a conference negotiation the law’s “Cadillac tax” on expensive plans. She with the House is better than nothing, but it is bragged about her vote to eliminate the medical light years from the bold Republican Senate device tax and published op-eds on the “harm- promises of 2015-2016. ful impacts” of ObamaCare. This was apparThe best outcome of Wednesday’s repeal ently make-work for her staff. vote would have been to send the bill to a ReMr. Heller is the only Republican likely to publican President who is willing and even deshave a tough re-election fight next year, and this perate to sign it. But at least voters have clarity week he made it that much tougher. The Neva- about which GOP Senators are willing to ratify dan voted Tuesday to allow debate, which Dem- President Obama’s achievements. LETTERS TO THE EDITOR Golden State’s Medi-Cal Is Not That Golden Allysia Finley’s attack on California’s Medi-Cal program leaves out a crucial fact (“Medicaid’s Potemkin Health Coverage,” op-ed, July 19). According to the California Department of Health Care Services, “More than 80% (10.1 million) of Medi-Cal members in all 58 counties receive their health care through 22 managed care health plans.” If doctors are paid too little, then the criticism ought to be with the managed-care plans. By law, Medi-Cal health plans are supposed to ensure “network adequacy.” And if there are too many ER visits, then the managed-care plans aren’t managing and coordinating care which they are handsomely paid to do. Managed care obviously isn’t working in California. The writer should also report the salaries, bonuses, stock options and other perks enjoyed by the insurancecompany executives who oversee this failing managed-care experiment. Plan A for all Medicaid reform was to do away with fee-for-service payments and put all the Medicaid patients into managed-care plans. Now that appears to be a failed experiment in California and most other states. So, what is Plan B in the state laboratories of health care reform? Send the patients to Mexico? BRANT S. MITTLER, M.D., J.D. San Antonio Ms. Finley describes the California Medicaid (Medi-Cal) paradox of massively increased enrollment but at the same time massively declining physician appointments. She attributes this occurrence to the egregiously low physician-reimbursement rates, so that physicians refuse to see Medi-Cal patients. Ultimately the high-cost ER system of California bears the brunt of this health-care dystopia. Just as the California Medical Board requires a certain amount of continuing medical-education credits (CME) for licensure, why not require a mandated number of Medi-Cal patient visits as well. This number can be adjusted by the state as necessary every two years, when physicians must renew their license to practice. And as an added incentive (to prevent physician egress from California) the state could provide a nominal bonus for those physicians exceeding the minimum mandate. What’s not to like? BRUCE KLEINMAN, M.D. Oak Park, Ill. The Los Angeles Times article “Medi-Cal’s big problem with its own 1%” (July 16) states that “somewhere in California, one child’s medical expenses in 2014 totaled $21 million—a bill covered entirely by Medi-Cal.” The article also mentions that 1% of Medi-Cal patients account for 23% of spending. Cleverly, the reporter uses the word Californians. It is a shame that we cannot break down these numbers based on legal Californians rather than illegal Californians. With open borders and unlimited medical coverage, we will shortly become another Greece. California isn’t alone. According to the same article, “an insurer in Iowa disclosed that a child there with hemophilia had health-care costs totaling $12 million” this year. Our country cannot afford to go down this rabbit hole. LESLIE MARTIN Thousand Oaks, Calif. Progressives Opposed to Due Process for Men? Your editorial “Betsy DeVos’s Due Process” (July 20) reflects the opinion of many of us in higher education. The Education Department’s Office for Civil Rights has been churning out guidelines and “dear colleague” letters to explain and interpret their own regulations for several years, and each of these “interpretations” is more confusing than the last. Those of us who are tasked with the responsibility for student conduct have long believed that the hearings were “tipped in favor of the accuser,” but we had no recourse under the Title IX guidelines and dear colleague letters. Conform or have your federal funds cut off. You also refer to students being found guilty. In campus disciplinary hearings we use the term “found responsible” for violating our standards of conduct—a subtle distinction, but an important one. We don’t prosecute crimes, but simply discipline students who violate our rules. Maybe it would solve some of the perceived mystique around campus rapes if survivors were to go to criminal court where the crime can be adjudicated under the rules of due process and the accused may be found guilty or not. DONALD D. GEHRING, ED.D. St. Simons Island, Ga. Why does the left pull out all of the legal stops to protect the rights of those accused of heinous crimes, including brutal murders committed off campus, but oppose any generally accepted protections for those accused of sexual assault on campus? With regard to the former, the Innocence Project scrutinizes records of arrests, evidence, trials and convictions to make sure that the scales of justice weren’t tilted against the accused. Yet young males on college campuses—who represent 99% of those accused of sexual assault—are deemed guilty until proven innocent; and proof of innocence must come without due process and without clear and convincing evidence presented by the accuser. Ideology may creep unavoidably into social-justice matters, but it should not be part of criminal justice, on campus or off. GARY DANIELS Sarasota, Fla. Working a Summer Job Should Be a College Must Regarding your editorial “America’s Summer Labor Shortage” (July 18): Perhaps it would serve our nation better if summer labor was a reThis is America, and due process quirement of all university students. for the accused is embedded in our Sixty years ago a summer job for culture, not to mention our law. high-school and college students was ROBIN FAWSETT the norm. It gave us real-life work exHighlands, N.C. periences which both made us better students and more involved citizens as we matured. This work experience is invaluable for the student, the diversity it brings to the university campus and to the I see parallels between the negaeconomy. It avoids the imported “seative claims about artificial intellisonal labor.” Work too hard? Hours gence and the doom-and-gloom pre- too long? Really. This is what the curdictions regarding Y2K (“Tesla Boss rent young generation needs instead Warns on Artificial Intelligence,” of being overprotected. Business News, July 17). However, The pay was never that great. One unlike the specific point in time of summer working in construction I got the year 2000, it will take decades the lowest union scale which was for the ignorance being propagated more than I earned during the next to be shown as hype and nonsense. nine years of medical college, internYes, AI and other technologies are ship and residency. The first-hand doing some amazing things. But the lessons learned, including about only potential threat would be the union shops, was far more important level of human dependence on than even that low wage. them. There will never be a day BOB AUSTIN, M.D. Pensacola, Fla. when we will be powerless to stop them. MICHAEL CHIARITO Summerville, S.C. Mr. Musk’s Concerns About AI Are Mostly Unfounded In the wake of the warning by Tesla CEO Elon Musk about the coming threat from AI, including his view that powerful technology will “threaten all human jobs” and “could even spark a war,” Hollywood is said to be working on a movie that will take advantage of the growing interest in the subject. The working title for the movie is “Planet of the Apps.” THOMAS COFFEY Wytheville, Va. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. Pepper ... And Salt THE WALL STREET JOURNAL “Come on, Melanie – it’s not a game you know.” THE WALL STREET JOURNAL. Thursday, July 27, 2017 | A15 OPINION Connect the Dots to Stop Terror Plots By Adam Klein Congressional barriers to information-sharing would heighten the risk of another 9/11. The proposal would affect Section 702, a 2008 law that allows the intelligence community to collect the communications of foreign intelligence targets when the communications travel across U.S. internet cables or are stored on U.S. servers. This has been an effective counterterrorism tool because foreign targets’ messages often touch the U.S. internet infrastructure. DAVID KLEIN W hy didn’t intelligence agencies prevent 9/11? According to the 9/11 Commission, before the attacks, information from intelligence agencies “often failed to make its way to criminal investigators” at the Federal Bureau of Investigation. By the summer of 2000, the Central Intelligence Agency already knew that two future hijackers were associates of known terrorists, that both men held visas to enter the U.S., and that one had in fact flown to Los Angeles in March 2000. Unfortunately, the FBI learned of this in August 2001—at which point the men had already made their last, fateful entry into the U.S. With better information-sharing, the FBI might have arrested the terrorists and prevented the 9/11 attacks. Some members of Congress now propose to erect new barriers against information-sharing within the intelligence community that could make it even more difficult for officials to spot future terrorists before they strike. Foreign targets are not protected by the Fourth Amendment, so the government has the authority to collect their messages under Section 702 without a warrant. But when foreign targets communicate with Americans, those messages are collected as well, raising privacy concerns. Another key aspect of the privacy debate around Section 702 is what intelligence agencies should be allowed to do with that data. Courts have allowed agencies to search their 702 records for foreign intelligence purposes and, in the FBI’s case, for evidence of crime, which sometimes includes searches for information about Americans. Privacy-minded House members from both parties are now reportedly considering amending Section 702 to bar government officials from searching 702 data for information about an American unless they get a warrant, based on probable cause, from a federal judge. Reformers have leverage this year because Congress must pass a 702 reauthorization bill before the law sunsets on Dec. 31. But keeping officials from searching this data would make it more difficult to prevent homegrown terrorist attacks. In 2009 the National Security Agency used 702 to collect emails in which an unknown person in the U.S. asked an al Qaeda member in Pakistan for advice on making explosives. Those emails led the FBI to Najibullah Zazi, a Colorado man with imminent plans to bomb the New York subway system. Catching him saved dozens if not hundreds of lives. If an American appears to be radicalizing, the first thing the FBI should do is check the information already in its database to see whether that person has been in contact with known ISIS or al Qaeda operatives. Privacy advocates argue that agencies could continue to run these searches as long as they obtain a warrant. The problem is that database checks are most useful at the early stages of an inquiry, when officials are seeking to determine whether a person of interest has connections to terrorists. At that point, investigators rarely have gathered enough evidence to demonstrate probable cause. For that reason, requiring a warrant will make these queries effectively impossible. Courts have found that this practice comports with the Constitution. In November 2015, the Foreign Intelligence Surveillance Court held that the Fourth Amendment does not require the FBI to get a warrant before conducting routine database checks, which include some 702 data. The scale of the potential privacy concern also appears small: In 2016 only one FBI search for information about an American in a non-national-security criminal investigation led the FBI to review messages collected under 702. Congress is right to examine the privacy implications of Section 702; powerful tools require powerful constraints. But members concerned about 702 should focus on bolstering the program’s oversight and transparency—by strengthening judicial review and requiring more transparency about how prosecutors use 702 information—rather than creating barriers to information-sharing within the intelligence community. The 9/11 Commission report taught that “connecting the dots” using the intelligence government agencies already possess is the key to disrupting terrorist plots. With the threat of terrorism still high, let us not forget this lesson now. Mr. Klein is a senior fellow at the Center for a New American Security, a bipartisan national-security think tank in Washington. Obama IRS Abuse Should Unite Trump and Sessions By Jerome Marcus P resident Trump has been feuding this week with Attorney General Jeff Sessions over matters related to last year’s campaign. But here’s an issue on which Messrs. Trump and Sessions should be able to find common ground: The Justice Department should stop defending Obama administration corruption. I’m referring to the cases, still on file today, challenging or seeking to expose Internal Revenue Service policies that delayed applications for tax-exempt status from conservative groups. That’s viewpoint discrimination, a clear First Amendment violation. The Obama Justice Department fought these cases intensely. It tried to get them thrown out of court before the plaintiffs had the chance to gather evidence. When that failed, Justice lawyers resisted discovery, to prevent disclosure of documents showing what the Obama administration was really doing. That’s normal behavior for a defendant in a lawsuit. But since Jan. 20, the Justice Department has reported to Mr. Trump, who denounced each of the corrupt policies at issue in these cases. So why is the department handling the cases as if it were still run by Eric Holder or Loretta Lynch? Because many of the career lawyers who were put on these cases by Obama Justice Department officials continue working on them, with no supervision from this administration. Those lawyers are still doing now what they have always done: fighting as hard as they can to prevent disclosure of what the Obama IRS, and the rest of the Obama administration, was doing to the country. In one of these cases I represent the plaintiff. Z Street is a pro-Israel nonprofit that educates on Zionism and how to oppose terror. It applied in 2009 for tax-exempt status under section 501(c)(3) of the tax code. For months, Z Street’s lawyers fielded duplicative IRS requests for information about its board of directors, but after long delays the IRS hadn’t made a decision on the application. In July 2010 Z Street asked why, and an IRS agent revealed that the applications of many organizations connected to Israel “are being sent to a special unit in the D.C. office to determine whether the organization’s activities contradict the [Obama] administration’s public policies.” We sued to stop and expose this clear violation of Z Street’s First Amendment rights. Justice Department lawyers representing the IRS argued that the case should be thrown out even if Z Street was right about its constitutional claim, because a statute allowed the organization to sue in court for tax-exempt status nine months after its application date. In 2015 the U.S. Circuit Court of Appeals for the District of Columbia rejected that position by a 3-0 vote. During oral argument Chief Judge Merrick Garland observed that the department’s position would mean “the government is free to constitutionally discriminate against its citizens for 270 days.” Since then we’ve been in discovery, and Justice has been fighting to prevent Z Street from learning how the IRS policy was formed, by whom, and at whose direction. The IRS finally granted Z Street its taxexempt status last year, after the D.C. Circuit made clear that was a necessary condition for throwing out the case. Other important cases are in the same posture. A class action is pending in Ohio brought by many other nonprofits victimized by policies similar to the one that delayed Z Street’s application by over six years. Judicial Watch is suing to force the IRS to release information on its Obama-era policies of viewpoint discrimination. And the problem isn’t limited to the IRS. Judicial Watch has also sued the State Department seeking release of PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Executive Chairman, News Corp Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Matthew J. Murray Deputy Editor in Chief DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head Hillary Clinton’s emails and document-retention policies. The government lawyers in all these cases are working hard to prevent anyone from finding out what the Obama administration was doing. Cleta Mitchell, who has represented tea-party organizations in the IRS Career Justice Department lawyers are still defending the old administration’s indefensible positions. viewpoint-targeting scandal, says Justice Department lawyers “have been stalling, obfuscating and doing all they can in these cases to avoid holding the IRS accountable.” That’s true even though all these lawyers now work for President Trump. And it’s true even though Mr. Trump knows full well that the Obama IRS violated the Constitution by discriminating against opposing viewpoints, and that the Obama State Department wrongfully shielded Mrs. Clinton’s emails from public view. Messrs. Trump and Sessions, as well as Deputy Attorney General Rod Rosenstein and Associate Attorney General Rachel Brand, should all be able to agree on this. The executive branch, through the Justice Department, can on its own agree to release the desired information and end these cases, without any permission from Congress or CNN. That would lighten the workload at Justice and shine sunlight on clearly improper Obama policies. A famous Justice Department lawyer said long ago that “the government wins when justice is done.” Now’s the time for the Department of Justice to do justice. Mr. Marcus is a Philadelphia lawyer. Notable & Quotable: Murkowski From a Dec. 3, 2015, press release from the office of Sen. Lisa Murkowski (R., Alaska): As the Senate begins to take a series of votes to repeal key provisions of the Affordable Care Act (ACA), U.S. Senator Lisa Murkowski spoke on the Senate floor to lay out how the ACA is drastically harming the people of Alaska. Senator Murkowski referred to specific examples from Alaskans, including families, small businesses, and school districts across the state, who have reached out to share the financial burdens the failed healthcare law is placing on them. In her speech, Murkowski outlined how in Alaska, the rising healthcare costs have gone too far: “. . . This law is not affordable for anyone in Alaska. That is why I will support the bill that repeals the ACA and wipes out its harmful impacts. . . .” Senator Murkowski has long been an opponent of the Affordable Care Act, recognizing from day one that the one-size-fits-all bill would never work in a rural, sparsely populated state such as Alaska. • December 2009: Senator Murkowski votes against S. 3590, the Patient Protection and Affordable Care Act. • May 2013: Murkowski co-sponsors the Forty Hours is Full Time Act, to redefine full-time employee status within the ACA to the conventional 40 hours workweek. • July 2013: Murkowski and 45 other Senators write a letter to the White House urging the entire healthcare reform law be permanently postponed. • September 2013: Senator Murkowski co-sponsors one year delay for individual mandate. • October 2013: Murkowski votes to repeal the medical device tax on pacemakers, joint replacements, defibrillators, and other items under the ACA. • November 2013: Murkowski cosponsors the “If You Like Your Plan, You Can Keep It” Act. • September 2014: Murkowski pens an opinion editorial on the harmful impacts of the ACA on Alaskans. • January 2015: Senator Murkowski re-introduces the Forty Hours is Full Time Act, to re-define “full time” employee status within the ACA to the conventional 40 hour workweek. • January 2015: Murkowski cosponsors the Hire More Heroes Act, to incentivize companies to hire more American veterans by exempting potential employees already receiving health coverage from being counted toward the 50 employee threshold for the ACA’s employer mandate. • June 2015: Senator Murkowski responds to the announcement that Premera and MODA were forced to drastically increase premium rates as a result of the “Affordable” Care Act. • June 2015: Senator Murkowski pens an opinion editorial on how the Affordable Care Act has become one of the most ironically named pieces of legislation for Alaska in history. • September 2015: Senators Lisa Murkowski and Dan Sullivan co-sponsored legislation to repeal the Cadillac Tax, which would place a 40% excise tax on high-cost insurance plans. • October 2015: The PACE Act is signed into law, which Senator Murkowski co-sponsored to halt a change of what is considered “small employer” within the ACA. Charter Grads Get a Leg Up In College By Richard Whitmire T he NAACP on Wednesday reported findings from its nationwide “listening tour” on charter schools, and there were no surprises: Charters must be stopped. The National Education Association, even less surprisingly, said the same thing earlier this month in Boston. The nation’s oldest civil-rights organization and the largest teachers union worry about charters for similar reasons. Independently run charters generally don’t employ unionized teachers, and they pull students from traditional district schools to which the NAACP is deeply committed. In short, charters disrupt the status quo—for adults. The NAACP and NEA have chosen the wrong time to double down on failing traditional schools. The timing of the intertwined anticharter campaigns, however, may prove awkward because of new data just released by The 74. The data comes from the first cohort of charter students, who are beginning to graduate from college. Here’s what we know now that the NEA and NAACP didn’t know when they adopted their anticharter positions: Graduates from the top charter networks—those with enough high school alumni to measure college success accurately—earn four-year degrees at rates that range up to five times as high as their counterparts in traditional public schools. These are low-income, minority students from cities such as Los Angeles, Chicago and Newark, N.J. Their college success is going to make bashing charter schools far more challenging for the NEA and the NAACP. Before this revelation, charterschool gains were largely measured by upticks in student test scores. Critics often wrote them off as meaningless, suggesting that charters abandoned educating kids in favor of “teaching to the test.” But now we see that charter school gains in the K-12 years have real-world consequences. Higher test scores, along with a swarm of strategies charter networks employ to make their students more successful after they graduate, lead to actual fouryear college degrees. Roughly half the graduates of Uncommon, YES Prep and the KIPP New York schools—among the biggest and best known charter networks in the country—earn bachelor’s degrees within six years. About a quarter of the graduates of the lower-performing charter networks earn degrees within six years. That may not strike wealthy parents as something to brag about. Eighty percent of children from America’s wealthiest families earn four-year degrees within six years. But charters primarily serve low-income families, where only 9% of students earn such degrees. Charters make a difference for poor families. Charter networks are doing something traditional school districts have never considered: taking responsibility, at least in part, for the success of their students after they receive their diplomas. Low-income and traditionally low-opportunity students, nearly all of whom are the first in their families to attend college, need special help: Which courses to sign up for? How many credits to juggle in a semester? How to be the only minority in an allwhite class? There are ways to address all those issues, as charter networks such as KIPP and Uncommon are discovering. And they are more than willing—even eager—to share what they have learned with traditional district schools. That sharing needs to start soon, but the aggressive anticharter stances taken by both the NAACP and the NEA will only make that process harder. It’s difficult to identify an antipoverty program that has been as successful as charter schools, but don’t expect the NAACP or the NEA to acknowledge that. The teachers unions especially are more concerned with the needs of the adults employed by school districts than the welfare of the students passing through them. But the charter movement’s success will make defending that position more difficult, especially for governors, legislatures and urban school officials under pressure from parents to open more of these high-performing schools. Mr. Whitmire writes “The Alumni” series at The 74 and is the author of “The Founders: Inside the Revolution to Invent (and Reinvent) America’s Best Charter Schools.” THE WALL STREET JOURNAL. A16 | Thursday, July 27, 2017 “…the most powerful TV show in America.” -The New York Times EVERY MORNING AT 6AM ET TECHNOLOGY: AMAZON TO HOLD GIANT JOB FAIR B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2477.83 À 0.03% S&P FIN g 0.61% Slowing Down Facebook’s ad revenue, change from a year earlier 90% * * * ** S&P IT À 0.20% BY TIMOTHY W. MARTIN 70 2Q 2017 s47% 60 50 40 30 20 10 0 2014 ’15 ’16 ’17 Source: the company THE WALL STREET JOURNAL. DJ TRANS g 0.06% WSJ $ IDX g 0.63% LIBOR 3M 1.314 Thursday, July 27, 2017 | B1 NIKKEI (Midday) 20093.41 À 0.22% See more at WSJMarkets.com Samsung Soars After Rough Year AND EUN-YOUNG JEONG 80 THE WALL STREET JOURNAL. SEOUL—Samsung Electronics Co. delivered its biggest-ever quarter of profits, shrugging off a year of tumult by leaning on its dominance as a supplier of electronics components that even its rivals can’t do without. Samsung said net profit jumped to 11.05 trillion South Korean won ($9.9 billion) for the three months ended June 30, an 89% rise from 5.85 trillion won for the same period a year earlier. Revenue shot up to 61 trillion won from April to June, rising from the prior year’s second quarter of 50.94 trillion won. The South Korean technology giant blew past its previous record quarterly net profit of 8.24 trillion won, which came nearly four years ago as booming smartphone sales drove growth. In a shift from those days, components such as semiconductors and display panels, sold to competitors such as Apple Inc. or Sony Corp., account for about 70% of the firm’s bottom line. Samsung’s profits were also boosted by strong sales of the Galaxy S8, its first premium smartphone since last year’s global recall of the Galaxy Note 7. Samsung said the Galaxy S8 and the larger S8+, which won strong reviews for their sleek design, have outsold its predecessor, the Galaxy S7, in almost all regions. Operating profit rose 73% to 14.07 trillion, an all-time high, from the 8.14 trillion reported for the same period last year. The record-breaking results also position Samsung to top Apple in quarterly profit. Apple has a projected net income of $8.2 billion for the three-month period, according to analysts polled by S&P Global Market Intelligence, in what is traditionally a weaker quarter for the world’s mostvaluable company. Apple, set to launch its 10th-anniversary iPhone, is still projected to notch up larger full-year profit than Samsung. Samsung Electronics shares are trading near alltime highs and have risen more than 60% over the past year. On Thursday, Samsung said it would continue a 9.3 trillion won share-buyback program this year, repurchasing 670,000 common shares and 168,000 preferred shares over the next three months. Samsung has so far repurchased about 5 trillion won worth of shares. Less than a year ago, Samsung’s potential ascension to the world’s most-profitable technology company, even for a singular quarter, would have Please see PROFIT page B2 Facebook’s Ad Shifts Power Its Earnings BY DEEPA SEETHARAMAN Heard on the Street: Enjoy growth while it lasts........... B12 Wall Street’s New Frontier Denver and other inland locations draw financial firms and jobs fleeing costly coastal cities PHOTOGRAPHS BY MICHAEL BUCHER/THE WALL STREET JOURNAL Facebook Inc.’s news feed is running out of room for advertisements, but the social media giant is making up for it with higher prices and new slots for ads in videos and its messaging apps. The company on Wednesday said profit spiked 71% in the second quarter. While growth is still rapid, Facebook warned that the number of ads in the news feed—its primary source of revenue—is hitting a ceiling. Facebook and Google revamped advertising by making digital the dominant platform over the past decade. Google, part of Alphabet Inc., and Facebook together accounted for 99% of the online ad industry’s growth last year, according to Pivotal Research. But now both tech giants are trying to figure out the next generation of online advertising. Google said earlier this week that it is serving up more ads on smartphones and on YouTube, its video platform. While the newer ad formats drove a 52% surge in the number of clicks, they are less lucrative than search ads, Google’s legacy business. Facebook, meanwhile, is looking beyond the highly profitable news feed to the rising consumption of video and its two chat apps, Messenger and WhatsApp, for growth. Chief Executive Mark Zuckerberg predicted video would become the largest driver of Facebook’s business over the next two to three years, while messaging could yield dividends within five years. He added that artificial intelligence could help advertisers figure out which audiences to target on Facebook. That shift isn’t without risk to Facebook. These emerging ad formats don’t earn Facebook as much money as ones shown in its news feed, executives said. They also need to build new types of ads that can work outside the standard stream of posts that make up Facebook’s news feed and its photo-sharing app Instagram, which together drive nearly all of the company’s revenue. “There are real questions there that we need to manage well,” Mr. Zuckerberg said, of the company’s embrace of video as a future source of ad revenue. Facebook recently started testing mid-roll ads, which appear at some point during a video on the social network. Mr. Zuckerberg also showed newfound urgency to cash in on messaging. WhatsApp, he said, is now used by 1 billion people a day. This month, Facebook introduced ads on Messenger, a rollout that will inform how Facebook monetizes WhatsApp, executives said. “I want to see us move a little faster here, but I’m confident that we’re going to get this right over the long term,” Please see ADS page B2 The Denver area’s investing sector is expanding at twice the U.S. average. Clockwise from top, a Charles Schwab office, downtown Denver and construction cranes. BY ASJYLYN LODER Wedged into a rent-controlled two-bedroom apartment near San Francisco’s famed Haight-Ashbury neighborhood and already overrun by their son’s toys, Kari Droller and her husband weighed having a second child against the skyrocketing costs of a larger home nearby. Instead, Ms. Droller, managing director of Charles Schwab Corp.’s exchangetraded-fund platform, put in for a transfer to Denver, joining a tide of financial professionals who are forsaking high-cost coastal meccas for America’s inland cities. Traditional finance hubs have yet to recover all the INSIDE COCA-COLA ZEROES IN ON NEW DIET SODA MARKETING, B3 EARNINGS DRIVE STOCKS TO RECORDS EQUITIES, B11 jobs lost during the recession, but the industry is booming in places like Phoenix, Salt Lake City and Dallas. The migration has accelerated as investment firms face declining profitability and soaring real-estate costs. The market’s shift to lowcost passive investing—in which funds aim to match the returns from an index— compounds those difficulties, pushing firms to look for new ways to cut costs. Charles Schwab is emblematic. Since announcing its relocation strategy in 2013, the company has shrunk its San Francisco headquarters to fewer than 1,300 people, a 45% decrease. Its 47-acre campus south of Denver is now Schwab’s largest office, em- ploying almost 4,000 people. An expanded office in Austin, Texas, will be completed next year, and construction is under way on a new location near Dallas. “San Francisco is a wonderful place, but unfortunately it’s an expensive place from a real-estate standpoint,” said Brian McDonald, a senior vice president for Schwab. “So we had to identify other places where we could make things work.” While the finance industry has been relocating entrylevel jobs since the late 1980s, today’s moves are claiming higher-paid jobs in human resources, compliance and asset management, chipping away at New York City’s middle class, said Please see COSTS page B2 Outbound Finance job growth in cheaper cities has outpaced traditional hubs. Finance jobs, cumulative change since January 2007 Orlando, Fla. Jacksonville, Fla. Houston Denver 10% Boston San Francisco New York 0 –10 –20 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Source: Bureau of Labor Statistics HEARD ON THE STREET By Paul J. Davies Leveraged Loans Too Popular Imagine just asking for a rate cut on your loan and getting it. That is what is going on in the leveragedloan market this year. Investors have been piling into U.S. and European loans for riskier, often privately backed companies. One reason loans are attractive is protection against rising interest rates: Lenders get interest calculated from a base rate linked to centralbank rates, plus a fixed spread. So, when the Federal Reserve raises rates, the interest a loan investor receives goes up, too. But that doesn’t work when borrowers can cut the spread, and this year that has proved startlingly easy to do. Take Tipico, a littleknown German gambling group that sold a majority stake to private-equity firm CVC Capital Partners last summer. CVC’s investment was backed with a €620 million loan ($722.2 million), which started with an interest rate of 5.5% on top of a fixed minimum 1% rate for Euribor, the market-base rate in Europe. In March, that loan was repriced to just 3.5% with a minimum for Euribor of zero. With base rates negative in Europe, that amounts to a 3percentage-point cut in borrowing costs for Tipico less than a year after it first got the loan. CVC also Dallas 20% increased the loan size, first to €700 million, then this month to €890 million. This was done without lenders getting a penny in fees or compensation for lost interest. Tipico is a standout case for such a large cut to its interest costs, which started high mainly because Tipico was unknown. But many companies have cut loan costs by 0.5 to 1 percentage point and some, by more. Loans performed well through the last rate-rising cycle, though less well than high-yield bonds. U.S. loans saw a total return of 12% between mid-2004 and mid2006, according to S&P Global LCD, when U.S. rates Please see HEARD page B2 Note: Includes real estate and insurance, for metropolitan statistical areas THE WALL STREET JOURNAL. Viacom Ends Scripps Bid; Discovery Is Lone Suitor BY AMOL SHARMA AND JOE FLINT Viacom Inc. is out of the running to acquire Scripps Networks Interactive Inc., leaving Discovery Communications Inc. as the only remaining suitor in talks to purchase the cable TV programmer, people familiar with the situation said. Viacom, owner of cable TV networks including MTV and Comedy Central, saw promise in combining its youth-skewing networks with Scripps channels like HGTV and Food Network that specialize in Please see SCRIPPS page B4 B2 | Thursday, July 27, 2017 INDEX TO BUSINESSES BUSINESS & FINANCE A F Advanced Micro Devices ...................................B11 Airbus..........................B2 Akamai TechnologiesB11 Alphabet ................ B1,B4 Alpha Financial Advisors .....................................A8 Amazon.com...B4,B6,B11 American Electric Power .....................................B6 Anheuser-Busch InBev ............................... A2,B3 Anthem ....................... B6 Apple ................ A1,B1,B4 AT&T..........................B11 Facebook..............B1,B12 Fiat Chrysler Automobiles ............. B3 Fidelity Investments ............................. B2,B10 Ford Motor...........B3,B11 Foxconn Technology Group ........................ A1 Beijing Shareco Technologies.............B6 Berkshire Hathaway Energy.......................B5 Boeing..................B2,B11 BP..............................B11 British Broadcasting Corp...........................B3 C Cerulli Associates.......A8 Charles Schwab.....A8,B1 Chevron ..................... B11 Chipotle Mexican GrillB6 Coca-Cola ............. B3,B11 CSX..............................B5 CVC Capital Partners..B1 D Daimler........................B3 Discovery Communications.......B1 E Edward Jones ............. A8 Elliott Management ... B5 Energy Future Holdings .....................................B5 Exact Sciences..........B12 Exxon Mobil..............B11 G General Motors...........B3 GGP............................B10 GlaxoSmithKline.........B6 Global Eagle Entertainment..........B6 Goldman Sachs Group ...................... B2,B10,B11 H Harbor Financial Group .....................................A8 Hershey.......................B6 HNA Group..................B6 Honda Motor...............B3 Hon Hai Precision Industry .................... A2 I Invenergy .................... B6 J Jana Partners ............. B6 Janus Henderson Group .....................................B2 JBS .............................. B6 J&F Investimentos ..... B6 K Nintendo......................B4 Norfolk Southern........B5 O Oncor Electric Delivery .....................................B5 P Partners Group Holding .....................................B2 PayPal Holdings...B6,B12 Petróleos de Venezuela .....................................A6 Pinnacle Advisory Group .....................................A8 PricewaterhouseCoopers .....................................B2 R Royal Dutch Shell.....B11 S Samsung Electronics..B1 Scripps Networks Interactive.................B1 Sharp...........................A1 Simon Property Group ...................................B10 Snap............................A1 Sony.............................B1 State Street..............B10 T Target..........................B4 Tesla............................B3 TIAA ............................ B2 Tipico...........................B1 Total .......................... B11 Toyota Motor..............B3 V Kik ............................. B10 L Lampix.......................B10 Vanguard Group..........A8 Viacom.........................B1 M-N W Macerich....................B10 Macy's.........................B4 Microsoft.....................B4 NextEra Energy...........B5 Wal-Mart Stores.........B4 Whole Foods Market ............................... B4,B6 Worldpay Group........B12 INDEX TO PEOPLE A Fritz, Janet..................B2 Abbasi, Yousef..........B11 G Q B Gilvary, Brian............B11 Gou, Terry...................A1 Gove, Michael.............B3 Grubbs, Heather ......... B2 Quincey, James...........B3 Barclay, Jessica Zofnass .....................................B2 Bechtel, Brad ............ B11 Buffett, Warren..........B5 C Cairns, Matthew.......B12 Clayton, Jay .............. B10 Cook, Timothy.............A2 Coppola, Arthur ........ B10 D de Larouzière, Olivier ...................................B12 Devine, Brian .............. B4 Draghi, Mario............B12 Droller, Kari ........... B1,B2 Durbin, Mike ............. B10 F Feroli, Michael..........B12 H Harding-Rolls, Piers ... B4 Haun, Kathryn...........B10 I Iacobelli, Alphons.......B3 K Kaiser, Andrew ......... B10 L Lee Jae-yong, ............ B2 M Mackey, John..............B6 McDonald, Brian....B1,B2 Popescu, George.......B10 R Rajoy, Mariano............A5 Rockett, Will...............B2 S Sandberg, Sheryl ...... B12 Singer, Paul.................B5 Sontchi, Christopher...B5 Swedish, Joseph R.....B6 W Walia, Jags ............... B11 Walker, Scott..............A1 Walmsley, Emma........B6 Witty, Andrew............B6 Wood, Roger...............B5 Wylde, Kathryn...........B2 O-P Z O'Hern, Thomas........B10 Olsen, John.................B4 Zerah, Charles...........B12 Zuckerberg, Mark ..... B12 HEARD Continued from the prior page rose 4.25 percentage points. Meanwhile, high-yield bonds delivered almost 18% total returns, according to the Bank of America Merrill Lynch index. In the past year, U.S. loans have returned 6% while rates have risen 0.75 percentage point. Repricing activity is dominating loan markets in the U.S. and Europe. More than $260 billion of loans were repriced in the first quarter, outstripping loan issuance of $247 billion, according to S&P Global LCD. Investors have little power, because loans are repayable without penalty any time after the first six months, typically. That is different from a bond, which has a fixed maturity. When demand is strong, any investor that declines the lower yield risks seeing another buyer take their place, and many are battling PROFIT Continued from the prior page seemed bold. Last fall, its Galaxy Note 7 devices overheated, and some caught fire, handing Samsung a crisis that ended with a global recall that cost the company more than $5 billion. In February, Samsung’s de facto leader, Lee Jae-yong, was put behind bars, accused of having a role in the country’s corruption scandal. Mr. Lee denies wrongdoing and is standing trial. Even without its leader, its chic brand tarnished, the Suwon, South Korea-based firm saw its profit balloon due to voracious demand for its memory chips and flexible displays, mundane products that few consumers even realize are Samsung-made. More than a decade ago, Samsung began plowing billions of dollars into 3-D NAND semiconductors that can store more content in a small chip, allowing gadgets extra memory capacity. The company also moved aggressively into flexible Pile-Up Total assets in U.S. loan funds $120 billion 100 80 60 40 20 0 2003 ’05 ’10 ’15 ’17 Source: Lipper THE WALL STREET JOURNAL. to keep their money invested. However, the more that yields get squeezed, the harder it will be for loan funds to make the returns promised to investors—and the more that investors will realize loans might not be the guard against rising rates they had hoped. OLED displays, short for organic light-emitting diodes, which enable phone makers to create sleeker, thinner devices. Despite the record quarter, the question hanging over the company’s head is the fate of Mr. Lee, Samsung Electronics vice chairman and grandson of the company’s founder. Mr. Lee isn’t known as a micromanager, but in South Korea’s family-run chaebol system, his signoff is required for overall strategy moves and important decisions. The Harvard-educated Mr. Lee has tried to modernize the company’s opaque and hard-driving culture since his father, Samsung’s chairman, became incapacitated with a heart attack in 2014. He has also pushed the Samsung conglomerate, which spans dozens of enterprises as varied as theme parks and lithium-ion batteries, to slim down and pivot to new areas such as biotechnology. Per South Korean law, Mr. Lee, 49 years old, can be detained until late August. A verdict is expected from a lower court next month, and Mr. Lee is expected to testify next week in court. Boeing Tops Expectations Shares surge 10% as aerospace firm raises full-year profit target, boosts production BY DOUG CAMERON Boeing Co. continues to clamp down on the cost of building jetliners, boosting profits at the world’s largest aerospace company and on Wednesday driving its shares up nearly 10%. The company reported forecast-beating earnings for a fifth quarter in a row on Wednesday. It also lifted its full-year profit target again as it boosts production from an order book of 5,700 aircraft and defense equipment worth almost $500 billion. Boeing has emerged from a long stretch beset by problems building new jets such as the 787 Dreamliner, with the smoother launch of new models and a focus on reducing expenses through a mix of thousands of job cuts and more efficient factories. It is also chasing a bigger share of the market for maintaining aircraft for airlines and military customers, a pursuit that has unsettled relations with some of the suppliers that are crucial to boosting output of its commercial jetliners. “There’s some sense of ner- Flight Plan Boeing shares surged following a strong earnings report and an improved outlook for the year. Proﬁt/loss in billions $2.5 Share price 2Q 2017 $1.76B 2.0 $240 Wednesday $233.45 ▲9.9% 220 1.5 200 1.0 180 0.5 160 0.0 –0.5 140 2015 ’16 ’17 2017 THE WALL STREET JOURNAL. Sources: S&P Capital IQ; WSJ Market Data Group vousness and uncertainty as we ramp up,” Chief Executive Dennis Muilenburg said. “There’s going to be some places where we make some tough decisions, develop alternatives.” He said Boeing was keeping a close watch on the supply chain as it works to boost production of its 737 workhorse jet by more than one-third over the next three years, countering slower sales of its larger widebody planes. The slimmer workforce and new manufacturing processes are also being used to test the potential for profitably building an all-new twin-aisle jet seating more than 200 passengers. Boeing shares have climbed by almost 50% this year as investors gain confidence that the rise in global airline passenger traffic will ensure that airlines follow through on all of the jet orders placed in recent years with the U.S. company and rival Airbus SE, which reports Thursday. The surge in Boeing’s stock Wednesday, up 9.9% at $233.45, made it the largest component in the Dow Jones Industrial Average, overtaking Goldman Sachs Group Inc. Boeing’s cost-cutting efforts helped it generate more than twice as much free cash as analysts were expecting for the latest quarter, prompting a bump to planned stock buybacks. The company is also prepaying big pension commitments due over the next four years. Mr. Muilenburg said free cash flow is expected to rise year on year through the end of the decade. Boeing plans to lift stock buybacks to $10 billion this year and will return all of its free cash to shareholders in the form of repurchases and dividends. Boeing reported quarterly profit of $1.76 billion, or $2.89 a share, swinging from a yearearlier loss of $234 million that reflected charges on its commercial and military programs. Revenue fell to $22.74 billion from $24.76 billion, as Boeing delivered fewer jets as it transitioned to an upgraded version of the 737 and slowed output of its 777 jetliner. The company still expects to deliver 760 to 765 jetliners this year, and Mr. Muilenburg said plans to sell aircraft to airlines in Iran next year remain on track. Its order book rose to $482 billion. Boeing boosted its 2017 earnings guidance for the second time this year, adding 60 cents for a range of $9.80 to $10 a share. —Ezequiel Minaya contributed to this article. COSTS Continued from the prior page Kathryn Wylde, president and chief executive of the Partnership for New York City, a nonprofit that represents the city’s business leadership. “This industry isn’t just a bunch of rich Wall Street guys,” Ms. Wylde said. “It’s a big source of employment that’s disappearing from New York.” Mass relocations can be messy. Some people don’t want to leave big cities. Not all employees are invited to make the move, Ms. Wylde said. Those who stay behind are often left without a job. For a number of employees, remaining near family outweighs the cost savings of moving to another city, and companies often lose good employees through the process. When Partners Group AG said last year that it would relocate its San Francisco operations to Denver, 60% of its 34 San Francisco employees declined to make the move and had to find jobs elsewhere, according to a spokeswoman. Still, the trend shows few signs of slowing. Denver’s investing sector is expanding at twice the national average, bolstered by the expansion of the exchange-traded-fund industry. Janus Henderson Group PLC, which owns VelocityShares ETFs, is based in the tony Cherry Creek neighborhood, while ALPS, one of the largest ETF distributors in the U.S., is near the art museum. When industry group Women in ETFs opened a new chapter in Denver, the goal was 50 members in the first ADS Continued from the prior page he said during a conference call with analysts. Facebook’s stock was 3.3% higher in after-hours trading, building on a 44% increase since the beginning of the year. In the second quarter, net income totaled $3.9 billion, surpassing its larger rival Alphabet, whose bottom line was hit by a fine from European regulators. Revenue jumped 45% to $9.3 billion, boosted by a 24% increase in Facebook’s average ad price, executives said during the call. Showing too many ads could turn off the more than two billion people who check Facebook at least once a month. Today, one of every seven to 10 posts is an ad in Facebook’s news feed, said Jan Dawson, senior analyst with Jackdaw Research. The company is buying original video programming— some shows as long as 30 minutes an episode—that could in turn offer opportuni- MICHAEL BUCHER/THE WALL STREET JOURNAL 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. B THE WALL STREET JOURNAL. * **** Denver resident Jessica Zofnass Barclay and her husband, Colin Barclay, now have a backyard. year, said Heather Grubbs, a vice president of marketing for Fidelity Investments. At the inaugural meeting in January, 135 people signed up. The Denver region is competing for 12 new finance projects representing 4,000 potential jobs, including a lending firm from San Francisco and a potential 1,200-job expansion by a New York-based firm, said Janet Fritz, spokeswoman for the Metro Denver Economic Development Corp. On the banks of the South Platte River, not far from where Denver got its start as a gold rush town, financial-services company TIAA is renovating its 1,500-person office. After completing a new call center in 2013, Fidelity has expanded its staff near Denver to 800 people. Accounting and advisory firm Pricewater- houseCoopers plans to expand its area staff, too. Partners Group expanded its temporary offices as its Denver workforce increased to 80 people, including workers who requested relocation from its ties for advertising as part of Mr. Zuckerberg’s broader desire to transform Facebook into a “video-first” company. “Video is part of what’s going to expand the inventory of ads on Facebook,” Mr. Dawson said. “A half an hour of video is potential for more ads.” The mid-roll video ads Facebook has been testing have lower margins than news feed ads, executives said on the call. Facebook shares a portion of the ad revenue with the creator in this model. The success of ad breaks “will depend both on the ad breaks and on the content,” Chief Operating Officer Sheryl Sandberg said in an interview. Many advertisers are still repurposing television ads to use on Facebook. The television ads “do not work as well as ads that are natively mobile,” Ms. Sandberg told analysts Wednesday. Ads that are developed for mobile, Facebook’s primary format, are shorter and the brand is mentioned faster than in TV spots, she said. She compared the strategy to the early days of TV ads when people read ads in front of a microphone on screen. ADVERTISEMENT ‘The reverse sticker shock is wonderful,’ says Kari Droller, speaking of Denver. offices in New York, Houston and overseas. Erica Escalante, who left New York five years ago and works for Janus Henderson, says she nearly wept when she realized she would have a washer and dryer in her own apartment. Jessica Zofnass Barclay has met more than a dozen other “recovering coastals” since moving to Denver in 2013. The population boom has had some unwelcome side effects. With more than 1,000 people moving to Denver every month, traffic jams routinely clog area highways, and the housing market has become one of the most fastmoving in the country. While Denver home prices reached a record in June, they are still far below San Francisco. “If you’re talking to someone who’s been in Denver, they’ll say it’s getting unaffordable, but if you’re coming from San Francisco, the reverse sticker shock is wonderful,” Ms. Droller said. —Paul Overberg contributed to this article. Franchising To advertise: 800-366-3975 or WSJ.com/classiﬁeds FRANCHISE OPPORTUNITIES Pile-Up Total assets in U.S. loan funds $120 billion 100 80 60 40 ! " "# $ %& ' ( " )* 20 *"+ " " , %" " #"" + 0 - -*".#*! 2003 ’05 " * /01233344 56012 7 8 9 :: ’10 Source: Lipper THE WALL STREET JOURNAL. ’15 ’17 THE WALL STREET JOURNAL. Thursday, July 27, 2017 | B3 * * BUSINESS NEWS BY CHRISTINA ROGERS Ford Motor Co.’s net income rose slightly in the second quarter due to a betterthan-expected tax rate and healthy financing-arm profits, but Wall Street reacted negatively to revised full-year guidance, sending the auto maker’s stock down nearly 2% in trading on Wednesday. The lower stock performance illustrates the challenges facing new Chief Executive Jim Hackett, who is trying to address concerns about the company’s ability to weather softer conditions in the U.S. market. The Dearborn, Mich., auto maker on Wednesday said the lower tax rate, strong pricing on pickup trucks and SUVs, and strengthening conditions for its Ford Credit lending arm led to a $2 billion net profit for the second quarter, a 4% improvement over the same period a year ago. However, the company issued new 2017 guidance, indicating weaker pretax profit than originally forecast. Ford is now projecting adjusted earnings per share between $1.65 and $1.85, equating to $7.8 billion to $8.7 The automobile manufacturer lowered its forecast for pretax profit for 2017. billion on a pretax operating basis. That is below Ford’s previous outlook of $9 billion for full-year 2017 and far lower than the $10.4 billion earned last year. Ford’s stock closed down 1.9% at $11.06 a share. “We expect a negative reaction to the implicit reduction in pretax profit,” said J.P. Morgan analyst Ryan Brinkman. “This also may amount to a bit of ‘clearing the decks’ following the recent change in leadership.” Mr. Hackett was hired in May after the board ousted Mark Fields, who had delivered a string of healthy profits over a three-year tenure as CEO but failed to deliver a clear vision of how the company will confront a slate of changes threatening to reshape the auto industry. Ford’s stock price also struggled under Mr. Fields, and analysts expressed concern about a weakening profit outlook. A former office-furniture executive who until recently ran Ford’s smart mobility unit, Mr. Hackett is spending his first 100 days on the job reviewing all corners of the auto maker’s business in an effort to craft a comprehensive turnaround plan. Company executives are expected to release details of the plan this fall. Mr. Hackett described the second-quarter performance as “solid” but added that “no one here is satisfied.” U.K. Targets Gasoline, Diesel Cars Joining European push, country sees internal-combustion engines banned by 2040 BY ERIC SYLVERS AND JOHN D. STOLL The U.K. said it would ban the sale of cars powered by traditional internal-combustion engines by 2040, joining other European regulators in a bold push toward populating roads with electric cars that remain unpopular in the mass market. The initiative, announced Wednesday, follows a similar move by France and efforts by several European cities from Munich to Madrid to ban or restrict diesel engines. These moves could play a role in the global tug of war over how people will get from Point A to B in the future. Efforts to shift the way cars are powered aren’t new. Regulators set to work in the 1990s on standards intended to drastically reduce the number of conventional automobiles rolling out of factories. Fuel-cell vehicles and electric cars were expected to be dominant by now, but they still face infrastructure hurdles, high costs and concerns about driving range. Today, with gasoline or diesel powertrains still powering nearly every one of the 90 million vehicles sold annually across the globe, auto makers are spending heavily to make those engines more efficient even as they slowly introduce electric cars. Rule makers want them to shift focus. “We can’t carry on with diesel and petrol cars, not just because of the health problems, but also because the emissions they cause will accelerate climate change,” said U.K. Environmental Secretary Michael Gove in an interview with the British Broadcasting Corp. The U.K. is planning a package of more than £200 million ($260.5 million) that will enable local authorities to draw up plans— including placing restrictions on drivers—to target roads and areas with high pollution levels, FACUNDO ARRIZABALAGA/EUROPEAN PRESSPHOTO AGENCY Ford’s Net Rises, but Its Shares Take a Hit London’s mayor called the government’s plan ‘half-hearted,’ adding that air pollution contributes to 9,000 deaths a year in the capital. Critics Fume Over U.K. Pollution Effort The U.K.’s plan to ban the sale of vehicles with gasoline and diesel engines beginning in 2040 could eventually lead to a drop in the use of fossil fuels and a decline in pollution, but in the country’s capital it failed to win over a key constituent. London Mayor Sadiq Khan called the government’s plan “half-hearted,” adding that air pollution contributes to 9,000 deaths a year in the British capital and 40,000 across the country. “Londoners suffering right now simply can’t afford to wait until 2040,” Mr. Khan said. Environmental campaigners also slammed the plan, with Anna Heslop, a lawyer for nonprofit organization ClientEarth, saying the U.K. needed to enact measures that will have an impact in the coming weeks and months. London is facing record levels of pollution, in part because of emissions from diesel and gasoline cars. In a bid to lessen congestion and air pollution, the city has a steep charge for cars entering the city center. Many of Europe’s other large cities have long struggled to keep pollution under control. Some have taken matters into their own hands by banning or restricting diesel vehicles. Governments have been reluctant to take aggressive stances against the car industry, which employs hundreds of thousands in relatively well-paid jobs across the European Union’s largest countries. Car manufacturers are likely to lobby against what they have argued is a premature move to ban gasoline and diesel engines. The lobby representing the U.K. car industry has already said a ban could cripple the sector and cost jobs. —Eric Sylvers and Jenny Gross Mr. Gove said. The U.K. and France account for about one-third of new cars sold in the European Union, but pale in comparison to the U.S. and China—which together sell nearly half of the world’s light vehicles. U.S. regulators, prompted by the Trump administration to revisit strict emissions regulations set for 2025, indicated this week they are considering a rollback of those rules. China envisions millions of EVs on its roads in coming years and is working to both dissuade purchases of conventional cars while funding the emergence of a domestic supply chain to provide alternative technology both at home and abroad. Electric-vehicle mandates face stiff headwinds, including pressure that will likely emerge from oil companies and auto makers that play big roles in the U.K. economy and employment picture. Regulators in several countries, including the U.S., have tried to impose aggressive emissions-elimination policies on car companies, only to roll back the standards amid relatively cheap fuel prices and a lack of consumer acceptance of electric cars. Auto makers have warmed to electric-car technology follow- ing the initial success of Tesla Inc.’s pricey Model S and stiffening rules in China, California and the European Union. Volkswagen AG, Honda Motor Co. and Daimler AG are among major car companies signaling big commitments to replace a sizable portion of their internal combustion engines with batteries or fuel cells in coming decades. Toyota Motor Corp. has said it envisions an emissionsfree fleet by 2050, a decade behind the U.K.’s timetable. Detroit auto makers, once fiercely committed to selling hydrogen fuel-cell vehicles by 2020, have focused on making gasoline engines more efficient while slowly expanding electric offerings. Volkswagen’s 2015 dieselemissions scandal, which centered on a multiyear effort to dupe regulators with software that misrepresented the harmful pollutants its cars emitted, kicked off a new round of concern about diesel engines in Europe and all but killed the technology in the U.S. Gasoline engines are being made more efficient via turbochargers and other innovations, but are still considered dirtier than electric vehicles. —Jenny Gross contributed to this article. Coca-Cola Zeroes In on New Diet Soda for U.S. BY JENNIFER MALONEY Coca-Cola Co. is replacing Coke Zero in the U.S. with another diet soda in an effort to hold on to consumers cutting back on sugary drinks. Coca-Cola Zero Sugar, which the Atlanta-based company said Wednesday has been a strong seller in Europe, the Middle East and Latin America, will become available in the U.S. in August. Although both diet sodas are sugar-free and contain the same artificial sweeteners, Coca-Cola said Zero Sugar tastes more like original Coke and looks more like it, too, with a red circle on cans and bottles in contrast with Coke Zero’s black design. In a conference call Wednesday, Coca-Cola Chief Executive James Quincey said the new recipe “will actually help people stay in the Coca-Cola franchise.” Zero Sugar, which like Coke Zero is sweetened with aspartame Soda Streams U.S. retail sales of Coca-Cola and Diet Coke have been falling, while Coke Zero hit a plateau. 6 billion liters Coca-Cola Diet Coke Coke Zero 5 4 3 2 1 0 2007 ’08 ’09 ’10 ’11 Source: Euromonitor and acesulfame K, was first introduced last year in the U.K. The company launched Coke Zero in 2006, but gains by that product haven’t compensated for declines in consumption of ’12 ’13 ’14 ’15 ’16 THE WALL STREET JOURNAL. aspartame-sweetened Diet Coke, said Mr. Quincey, who took over the beverage giant in May. Rather than switching to Coke Zero or Diet Coke, fans of original Coca-Cola can now “stay with the brand they love. It just comes with a couple of variants—one with sugar and one without sugar,” Mr. Quincey said on a call with journalists. Coke has been aiming to cut sugar from its products and diversify beyond soda as more countries implement taxes on high-calorie beverages to combat rising rates of obesity and diabetes, and as consumers switch to healthier beverages. The Zero Sugar name is intended to better communicate to consumers that it contains no sugar. But Susan Cantor, chief executive of branding firm Red Peak, which isn’t involved with the new Coke product, said some shoppers may find it confusing. “Sugar is a bad word these days, so I question their thought process in putting it so prominently on the package,” she said. “This could possibly call attention to the very ingredient that they have eliminated.” Coke Zero was the No. 10 soda brand in the U.S. last year, with sales growth of 3.5%, according to Beverage Digest, an industry tracker. Diet Coke was the third-biggest brand but has been losing fizz, with a 2% drop in sales. In the latest quarter, Coca-Cola’s low- and no-calorie soda volume notched percentage gains in the mid-single digits, the company said. Coke reported second-quarter profit of $1.37 billion, or 32 cents a share, down from $3.45 billion, or 79 cents a share, a year earlier. —Imani Moise contributed to this article. Ex-Fiat Executive Is Charged A federal grand jury indicted a former Fiat Chrysler Automobiles NV executive on charges he made illegal payments to United Auto Workers By Chester Dawson and Christina Rogers union leaders and pocketed money from a fund set up to train workers, U.S. officials said Wednesday. Alphons Iacobelli, 57 years old, a former head of labor relations at Fiat Chrysler, was indicted Wednesday for allegedly violating the Labor Management Relations Act, along with the wife of a former UAW vice president, according to court documents filed by the U.S. Attorney’s Office for the Eastern District of Michigan. “Today’s indictment exposes a disturbing criminal collaboration that was ongoing for years between high-ranking officials of FCA and the UAW,” said David P. Gelios, special agent in charge of the Federal Bureau of Investigation’s Detroit Division. The 42-page indictment alleges Mr. Iacobelli and others “acting in the interest of FCA” were involved in a scheme to divert $1.2 million in payments and other gifts between 2009 and 2014 to union employees, including a now-deceased UAW vice president, General Holiefield, during a time when he was the union’s top negotiator for bargaining with Chrysler. The gifts included travel, clothing, jewelry and a $262,219 payment to Mr. Holiefield, who died in 2015, for the mortgage on his Michigan home, the indictment alleges. Mr. Iacobelli was also charged with tax violations for using $1 million in funds from the accounts belonging to the UAW-Chrysler National Training Center for his own benefit, federal investigators charge. Mr. Iacobelli declined to comment on the allegations. He referred inquiries to his attorney, who couldn’t be reached for comment. Attempts to reach Monica Morgan, 54, who was married to Mr. Holiefield, were unsuccessful. The UAW said it had no knowledge of the allegations before being informed by the government, with which it said it is fully cooperating. Mr. Iacobelli left Fiat Chrysler before the start of union negotiations in 2015 and more recently consulted for General Motors Co. A spokesman for GM said the company is looking into the matter, but wouldn’t say if Mr. Iacobelli is currently employed by the auto maker. FCA said it learned of the allegations from the government in June 2015 and since then has worked with the UAW to improve financial controls at the training center. FCA said it is cooperating with federal prosecutors and “intends to pursue all potential legal remedies against Mr. Iacobelli and any other culpable parties.” Want Great Rates + Safety? It’s a day at the beach. Relax with a great CD rate and special term from Synchrony Bank. SPECIAL OFFER 15-MONTH CD % 1.55 APY * $2,000 minimum opening deposit Visit us at synchronybank.com or call 1-800-753-6870 to get started. * Annual Percentage Yield (APY) is accurate as of 7/1/17 and subject to change at any time without notice. A minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Visit synchronybank.com for current rates, terms and account requirements. Offer applies to personal accounts only. © 2017 Synchrony Bank B4 | Thursday, July 27, 2017 * *** THE WALL STREET JOURNAL. TECHNOLOGY WSJ.com/Tech Amazon Pushes to Staff Its Expansion BY LAURA STEVENS Amazon.com Inc. aims to fill 50,000 new positions in the U.S. by hosting a giant job fair next week, where it will be making offers on the spot. The event, scheduled for Aug. 2 in a dozen locations around the country including 10 of its warehouses, shows how Amazon is pushing to make good on its pledge to hire 130,000 full- and parttime employees, as it competes with other logistics companies for hard-to-find workers. With fulfillment of the hiring pledge, which is targeted for mid-2018, the online retailer’s U.S. workforce would swell to around 300,000, compared with 30,000 in 2011. Still, the current logistics labor market is tight, according to supply-chain industry executives. The crunch is expected to worsen as retailers and logistics companies start preparing for the holiday- shopping season, for which hiring can begin as early as September. “It’s clear people have choices. That is obvious,” said John Olsen, vice president of Amazon’s world-wide operations human resources. Amazon is counting on competitive wages, benefits and programs like one that pays for tuition to attract job candidates, he said. Nearly 40,000 of the newly offered jobs are full-time at the company’s fulfillment centers, including some facilities that will open in the coming months. Most of the remainder are part-time positions available at Amazon’s more than 30 sorting centers. The additions are equal to roughly 14% of the company’s world-wide head count as of the end of the first quarter. Starting wages for the hourly workers vary based on location. For example, a fulltime warehouse position starts at $13 to $14 an hour in Baltimore, while a similar job near Tampa in Ruskin, Fla., starts at $11. Wages have been rising rapidly in the logistics industry as companies increasingly compete for the same workers, Retailer’s Value Exceeds $500 Billion ADAM GLANZMAN FOR THE WALL STREET JOURNAL As part of longer-term plan, online retailer girds for holiday rush in tight labor market The company aims to add 50,000 jobs in the U.S. fairly soon. said Brian Devine, senior vice president at ProLogistix, one of the largest logistics-staffing companies in the U.S. Unemployment rates in some major logistics hubs are lower than they were a year ago ahead of the holiday season, considered the peak period for e-commerce-related employment, when hundreds of thousands of seasonal workers are added to the ranks. “We continue to order more and more stuff online,” Mr. Devine said. “The workers that used to work in the retail stores, now we need those same workers in warehouses.” But because warehouses tend to be grouped together in areas with good access to highways, airports and population, “there aren’t enough people to fill all these jobs,” he added. Amazon’s warehouse jobfair events, held coast-tocoast, will introduce applicants to current Amazon workers and allow them to tour the warehouse, Mr. Olsen said. retail firms. Amazon shares have taken another leg higher since June 16, when the company announced a $13.7 billion deal to acquire Whole Foods Market Inc. The acquisition would make Amazon a heavyweight in the grocery business, where it has struggled to gain a foothold. Since the announcement, Amazon’s market cap has gained about $31 billion, more than twice the price of the Whole Foods deal. It took Amazon 210 trading sessions to climb to $500 billion from $400 billion, versus 240 days for the prior $100 billion gain. The $100 billion rise to $300 billion took a mere 139 days in 2015. This year is shaping up to be one in which investors bet heavily that a few technology giants will be the blue-chip companies of the future. Amazon, the fourth-largest S&P 500 company by market cap, is up 40%. Microsoft Corp., the third-largest is up 19%, while Google parent Alphabet Inc., the secondlargest, is up 22%. Apple Inc., the biggest, is up 33%. —Ben Eisen Amazon.com Inc. is now valued at more than half a trillion dollars, underscoring how much faith investors have in the e-commerce giant’s ability to transform how consumers shop. On Wednesday, its shares rose 1.2% to a record high of $1,052.80, boosting Amazon’s market value to $503.2 billion, its first close above $500 billion. The company is due to report its quarterly results after the closing bell on Thursday. Amazon’s gain this year has come as shares of brickand-mortar retailers like Target Corp. and Macy’s Inc. have fallen sharply. And Amazon is now valued at more than double the $237.8 billion market cap of Wal-Mart Stores Inc., the world’s largest retailer by revenue. Still, some investors have questioned whether the stock market is casting too definitive a vote on the retail shake-out. In recent months, some bargain hunters have snapped up shares of old-line TOKYO—Nintendo Co. kept its sales forecast for the Switch console unchanged despite strong demand, reflecting what analysts said is a supply bottleneck that could hurt the company during the year-end holiday season. Kyoto-based Nintendo said Wednesday it sold 1.97 million units of the handheld-console hybrid game machine in the April-June quarter and is sticking to its forecast of 10 million for the current fiscal year, which ends next March. That would bring cumulative sales since the console’s March 3 debut close to 13 million, short of analysts’ forecasts of more than 15 million by March 2018. Analysts said the April-June sales figure wasn’t bad but could have been better if Nintendo had been able to deliver more units. Demand is strong, with game fans in some cases lining up for blocks to get their hands on a Switch. Some people involved in Nintendo’s supply chain said there are manufacturing prob- lems. A Nintendo spokesman declined to comment on that but said the company is doing its best to make more units. Piers Harding-Rolls, an IHS Markit analyst, said he still expects Nintendo to beat its annual forecast, “but it all depends on supply into the market.” Since the Switch’s introduction, demand has kept rising, thanks to a lineup of popular games such as “The Legend of Zelda: Breath of the Wild” and “Mario Kart 8 Deluxe.” Nintendo plans by the end of 2017 to release more titles for the Switch, including a Pokémon game in September and “Super Mario Odyssey” in October. It started selling “Splatoon 2” last week. In the April-June quarter, the first of its fiscal year, Nintendo reported an operating profit of ¥16.2 billion ($144.8 million) on revenue of ¥154.1 billion, a turnaround from a year-earlier loss of ¥5.1 billion as the company phased out its unpopular Wii U console. Net profit totaled ¥21.3 billion, compared with a loss of ¥24.5 billion. The company isn’t raising its sales forecast for its handheld console despite strong demand. A Switch exhibit in Los Angeles in June. SCRIPPS ADVERTISEMENT The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES LIFE SAVING MEDICAL INFUSION DEVICE FOR SALE $9MM POTENTIAL WORLDWIDE SALES OF $5 BILLION, WITH PROFITS OF $2+ BILLION PER YEAR. PATENTED US AND EUROPE AND WORKING DEVICE IN PLACE. GO TO WWW.AIRINLINE.COM CALL Dr. Green 310-600-5052 EARN 11%+ INVESTING IN 1st MORTGAGES Short Term, High Yield, Low LTV. Secure & Great Monthly Income. Call 949-346-1217 CAPITAL WANTED High Yield 8-12% Fixed $5.5 Million Capital Needed. 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But the media company faced financial constraints and didn’t want to overpay for the asset, one of the people familiar with the situation said. Scripps has a market value of almost $11 billion. After reviewing bids from both companies, Scripps determined it would prefer to negotiate exclusively with Discovery, the people familiar with the situation said. A deal would have been a significant pivot by Viacom’s relatively new chief executive, Bob Bakish, who in his first months on the job has been focused on stabilizing the company’s balance sheet, turning around film operations and emphasizing a set of core cable networks. Doubling down on the cable TV business would have been viewed as a surprising move by many on Wall Street. Viacom had more than $12 billion in debt as of March 31 and is clinging to the lowestlevel of investment-grade credit rating, according to Moody’s Investors Service, meaning that a deal involving a substantial amount of cash would have risked a downgrade to junk. The value of Discovery’s offer wasn’t clear, but it involves a mix of 70% cash and 30% stock, according to one of the people familiar with the situation. The Scripps family, which controls about 92% of the company’s voting stock, had indicated an interest in receiving a substantial portion of cash in any transaction. Negotiations between Discovery and Scripps could take several days, one of the people said. There is no guarantee DAVID PAUL MORRIS/BLOOMBERG NEWS BY TAKASHI MOCHIZUKI CHRISTIAN PETERSEN/GETTY IMAGES Nintendo Signals Supply Difficulties for Switch For Viacom’s chief, Bob Bakish, a deal would have been a significant pivot. they will reach a deal. Discovery and Scripps have held talks about a combination more than once in the past decade but have never been able to agree on terms. Both Viacom and Discovery are looking for ways to fortify their business as more consumers cut the cable TV cord and midsize media companies face the challenge of getting their channels carried in new online TV services that offer slimmed-down packages of networks. Gaining scale can theoretically help negotiations with those distributors as well as advertisers. Scripps is a compelling target, in part because some of its channels—especially HGTV, home to shows like “Property Brothers” and “Fixer Upper”— have enjoyed ratings growth over the past several years as many general entertainment cable networks have sunk in viewership. Scripps also offers some of the most femaleskewing networks on the cable dial, making it a must-buy for advertisers trying to reach women. In some ways, Viacom and Scripps would have been an odd match. Scripps channels, which also include DIY Network and Travel Channel, function primarily as lifestyle brands aimed at families, homeowners and women, while Viacom’s core brands like Nickelodeon and Comedy Central focus more on kids, teens and young adults. But Viacom was drawn by the benefits of scale. Together, the companies would account for about 18% of TV ratings, on par with conglomerates like Walt Disney Co. and Comcast ’s NBCUniversal, according to RBC Capital Markets. Viacom could also have injected some of its ad-targeting prowess into Scripps’ business and helped the lifestyle networks gain greater carriage overseas. Before its surprising pursuit of Scripps, Viacom was more focused on unloading noncore assets to raise cash, like the sale of its stake in pay-television channel Epix for about $600 million. Mr. Bakish also had set out to turn around the struggling Paramount film unit. Without a merger, investors’ attention will once again shift back to those turnaround efforts. The company continues to confront turbulence in the ratings and in its dealings with cable providers. Some of its flagship networks have been put into more expensive tiers by cable companies, reducing their reach. MTV’s ratings have shown signs of stabilizing, though they are still down 28% since 2013, while Comedy Central is down nearly 50% over that span, according to Nielsen. —Sarah Rabil contributed to this article. THE WALL STREET JOURNAL. Thursday, July 27, 2017 | B5 NY * * BUSINESS NEWS ADVERTISEMENT Norfolk Southern Wins Customers From Rival CSX Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds GENE J. PUSKAR/ASSOCIATED PRESS BANKRUPTCIES Norfolk Southern Corp. said it is starting to win over customers to its railway amid disruptions at rival CSX Corp., where the network is undergoing an overhaul under a new chief executive. “We have seen some business move over to us,” Norfolk Southern Chief Marketing Officer Alan Shaw said on an earnings call Wednesday. “It’s a small amount, I’ll tell you that, but it’s early.” CSX is the midst of change under CEO Hunter Harrison, who joined in March promising to quickly cut costs and implement a network with more precisely scheduled trains. Already, he has closed a number of yards that sort railcars and put thousands of railcars and hundred of locomotives in storage. The changes have disrupted operations for shippers, some of whom have seen days added to transit times for cars. Mr. Harrison last week told analysts that shippers need to brace for “a little pain and suffering” amid the changes, which he said will ultimately lead to better service and faster trains. Norfolk Southern appears to be capitalizing to some degree on the changes at its primary Eastern U.S. rival for long-haul rail shipments. —Paul Ziobro Berkshire Wins a Round In Competition for Oncor BY ANDREW SCURRIA Warren Buffett has won the first round against Paul Singer in the billionaires’ competition for one of the largest U.S. power transmission businesses. A bankruptcy judge said he will consider approval of Berkshire Hathaway Energy Co.’s proposed takeover of Texas utility Oncor Electric Delivery Co. on Aug. 21. Mr. Singer’s Elliott Management Corp. had sought a later date, saying it needed more time to raise financing for its rival restructuring proposal. But lawyers for Oncor’s bankrupt owner, Energy Future Holdings Corp., argued that extending the timetable could alienate Berkshire and put its $9 billion all-cash offer at risk. Berkshire had threatened to walk away if the merger agreement, including a $270 million breakup fee, wasn’t approved by Aug. 21. “We could lose a bird in hand,” Energy Future Holdings attorney Chad Husnick said. The scheduling order issued Wednesday provides Elliott with only a narrow path to victory in the duel for Oncor, the Texas power-transmission business that is considered the crown jewel asset in the Energy Future Holdings bankruptcy. Mr. Singer’s hedge fund is challenging Berkshire’s offer with a $9.3 billion bid, but hasn’t yet locked down the capital to finance it. Elliott adviser Roger Wood said he had received nonbinding commitments from investors interested in Oncor at a time of rising utility valuations. The Aug. 21 date fixed by U.S. Bankruptcy Judge Christopher Sontchi amounts to an 11day extension for Elliott to persuade an investment consortium to finance its plan. Berkshire was clear it would walk away, or at least lower its price, if the timetable were lengthened any further, Mr. Husnick said. The proposed cash deal by Berkshire Hathaway Energy, Warren Buffett’s energy unit, also needs approval from Texas regulators overseeing the state’s energy infrastructure. Energy Future Holdings plans to return to bankruptcy court in October to seek confirmation of a bankruptcy exit plan that pays off creditors with proceeds from the Berkshire sale. In between, Berkshire has to nail down support for the buyout from the Public Utility Commission of Texas. Twice before, Energy Future Holdings has won approval of chapter 11 plans predicated on the sale of Oncor, a stable, revenue-generating business 80% owned by Energy Future Holdings. Both of those plans failed when regulators rejected the sale terms. Rather than first seeking plan confirmation in bankruptcy court and then asking for the Texas PUC’s blessing, Energy Future Holdings this time is putting the Texas regulators first in line to evaluate the buyout. But the swift timeline sparked objections from Elliott, the largest Energy Future Holdings bondholder, which claims its alternative plan would generate more value for creditors. Meanwhile Berkshire has been busy rounding up support from Oncor’s customers and from participants in the Texas wholesale energy markets. Until June, Oncor was to have been sold to NextEra Energy Inc., a Florida power company. NextEra’s buyout proposal ran into a regulatory buzzsaw, however, and Energy Future Holdings began talking to others about different exit strategies. That means NextEra is now owed a $275 million breakup fee that is eating into potential bondholder recoveries. Energy Future Holdings, the former TXU Corp., filed for bankruptcy protection in 2014 under the weight of tens of billions in debt left over from a boom-era buyout seven years earlier. ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds NOTICE OF SALE # ) )> ? # ) 5() 5( #)! !!) ! !" # $ " " ## # "$ %& '( # " !) *" +) , -). , -). * %& ' ( ) )) * +, - # )" .# * +, ) " )! /" )" .# * +, ) " )! /" # /" /" ''0 ))"! )" 1 * +, ) " )! )" 1 * +, ) " )! 2 3 !# " /"4 1 !! /" ''0 ) " )! 3 # !! # 2 4 ) "2 3 !! , 5 6'&6 ' 6 &6 6 6 6 7 6' 6 *+ *+8 6% *+ *+8 6 9 *+ *+8 6: *+ *+4 1 " # ;#) *2)" % ' < )"! 3 # ;#) *2)" % ' < = " /" /" !2 2 4 1 " + /0 123 4 " " ) 12 5 33 3 133- 63 3 7 85- 329- + + 3 353 53 85 : - 3 - 23 3 2 # " " "# ! $ ! " " ) " ! ) $ 4 2 # " 4 2 # > 4 ; ! ) " ")# $ " ? ) @ A B )! 7'' < &'' < >!C#4)4 D " ) " #) " 2# ";<<,,,"(=!4 ; !!2 " ) $) " $ " " %5'' ;44 ) 1 ;# ' 94 1 " " @ A B )! * +, *4 :79:'4 !" #!$ %& %'()* +,((+& , - ., / +(01( ., ! 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B6 | Thursday, July 27, 2017 THE WALL STREET JOURNAL. * **** BUSINESS NEWS Anthem Warns of Further ACA Cuts Whole Foods Extends Sales Slide Streak now stands at two years after 1.9% same-stores decline; CEO notes late burst Still Wilting Whole Foods’ comparable store sales, change from previous year 10% BY HEATHER HADDON 8 Whole Foods Market Inc. said Wednesday that comparable sales fell again in the latest quarter, extending a streak going back two years as the natural grocer faced up to tougher competition. Same-store sales fell 1.9% during its fiscal third quarter ended July 2, compared with a year ago. Whole Foods plans to sell itself to Amazon.com Inc. and has promised to reverse the sales losses by the end of its current fiscal year in September. John Mackey, the company’s chief executive and co-founder, said same-store sales turned positive in the last three weeks of July. “Our comparable store sales improved,” Mr. Mackey said. The company’s stock closed Wednesday at $41.81, compared 6 4 DANIEL ACKER/BLOOMBERG NEWS 2 Subpoena Issued Over Outbreak Chipotle Mexican Grill Inc. said it received a subpoena related to a recent norovirus outbreak in Virginia. The disclosure of the grand jury subpoena related to the outbreak that sickened more than 135 patrons at a Sterling Chipotle came in a regulatory filing. The subpoena is part of an investigation related to a series of outbreaks in 2015, a Chipotle spokesman said. The probe is being conducted by the U.S. Attorney’s Office for the Central District of California, in conjunction with the Food and Drug Administration’s Office of Criminal Investigations. —Julie Jargon JBS Debt Pact Reached In Wake of Scandal Brazilian meatpacking giant JBS SA reached a deal with banks to renegotiate 20.5 billion reais ($6.5 billion) in debt as part of an effort to address the fallout of a bribery scandal. The agreement, disclosed in a –4 FY2011 ’12 ’13 ’14 ’15 ’16 ’17 *Ended July 2. 2017 Source: the company THE WALL STREET JOURNAL. with the $42 a share purchase price from Amazon. The merger would be the third-largest retail tie-up in the U.S. since 1995, according to Dealogic. Whole Foods reported several hours ahead of schedule after a J.P. Morgan Securities The company decided to release its results two hours later. The company skipped an investor call Wednesday because of the pending deal. Net profit fell to $106 million in the quarter from $120 million a year earlier. Per share earn- tal problem by investors, who have been stung by some highprofile failures in recent years. Glaxo until now has had a very broad research pipeline, unlike many peers that have pruned their own pipelines. Ms. Walmsley said that spreading its bets too thinly had hurt Glaxo’s competitive edge, but that research investment would stay roughly the same overall. The biggest research area to face the cut is rare diseases, which Ms. Walmsley’s predecessor, Andrew Witty, had highlighted as promising. Glaxo said it was deciding how best to unload these projects, which include research into new gene therapies that recently produced a cure for children born with a rare immune-system condition known as “bubble-boy disease.” LLC analyst released some of the company’s earnings numbers in a research note. A Whole Foods spokeswoman said an earnings table was inadvertently posted on the company’s website while testing its “functionality.” It was removed minutes later. filing, comes after JBS’s owners this year admitted to paying millions of dollars to politicians in exchange for favors. JBS’s parent, J&F Investimentos, agreed to pay more than $3 billion in penalties. —Luciana Magalhaes AMERICAN ELECTRIC POWER Investment Set In Wind Farm American Electric Power Co. said Wednesday that it will spend $4.5 billion to develop one of the largest single wind farms in the U.S. and a related 350mile transmission line. When complete, the 2,000megawatt project in the Oklahoma Panhandle would also be one of the largest single purchases of renewable energy by a utility company. AEP said it had a deal with Invenergy to purchase the project. —Russell Gold HNA GROUP Deal for U.S. Stake Falls Through Chinese conglomerate HNA Group Co.’s planned $416 million Anthem Inc. said that if it doesn’t quickly get more certainty about the future of the Affordable Care Act exchanges, it will likely further pull back its planned participation for next year, a threat that adds to the pressure on Senate Republicans as they struggle to pass health-care legislation. The big insurer, speaking during its second-quarter earnings call Wednesday, emphasized that it needed answers about the future of federal payments that help reduce out-of-pocket costs for low-income ACA exchange-plan enrollees. Chief Executive Joseph R. Swedish said that without greater clarity, particularly around the cost-sharing payments, “we will need to revise our rate filings to further narrow our level of participation.” He added that the insurer may make decisions “in a relatively short period of time” and in September at the latest. Overall for the second quarter, Anthem reported a profit of $855.3 million, or $3.16 a share, compared with $780.6 million, or $2.91 a share, a year ago. Excluding items, the company earned $3.37 a share, compared with $3.33 a year ago. Analysts polled by Thomson Reuters had expected $3.23 in earnings per share. Premium rate increases and growing enrollment also drove up operating revenue 4.3% from last year to $22.2 billion. Anthem also boosted its fullyear outlook. On its pharmacy-benefit business, Mr. Swedish said the insurer’s bidding process for a new contract “has further validated our expectation to be able to lower our pharmacy costs by more than $3 billion annually.” He said Anthem is still looking at a “hybrid” model that would have it work with an outside vendor while controlling aspects of the process. —Cara Lombardo contributed to this article. SWEET! Hershey Profit, Dividend Get Fatter Hershey Co. reported second-quarter profit rose by 39% and beat analysts’ estimates, and the candy company announced an increase in its quarterly dividend. BUSINESS WATCH CHIPOTLE MEXICAN GRILL –2 BY ANNA WILDE MATHEWS MIKE SEGAR/REUTERS LONDON—GlaxoSmithKline PLC axed more than 30 drug-research projects to focus on four key disease areas, in a push by new Chief Executive Emma Walmsley to sharpen the company’s research-anddevelopment operations. U.K.-based Glaxo said Wednesday it will now focus its research on respiratory diseases, HIV and other infectious diseases, cancer and immunoinflammatory conditions. The company plans to pour more investment into 16 drug candidates that it believes stand the best chance of becoming big sellers, while shelving 13 drug-development programs and around 20 earlystage research projects. Glaxo’s low research productivity is viewed as a fundamen- 0 The company reported earnings several hours ahead of schedule. Glaxo Hones R&D Focus to 4 Diseases BY DENISE ROLAND 3Q 2017* ▼1.9% ings fell to 33 cents from 37 cents. Earnings-per-share and same-store sales beat forecasts. Earlier this year, Whole Foods faced demands from activist investors to explore a sale and replace its board, among other issues. Mr. Mackey forged the deal with Amazon in part because the company saw that partnership as more favorable than contending with the activist demands, according to a corporate filing. Investors are expected to vote on the deal Aug. 23. Hedge fund Jana Partners LLC fund sold its nearly 9% stake in Whole Foods last week for a profit of roughly $300 million. Roughly a dozen members of Congress have called for a close review of the Whole Foods-Amazon deal. The Consumer Watchdog group is lobbying the Federal Trade Commission to block it on allegations that Amazon’s pricing discounts are misleading. An Amazon spokesman said those assertions “are flat out wrong.” —Laura Stevens contributed to this article. Earnings for the latest quarter rose to $203.5 million, or 95 cents a share, from $146 million, or 68 cents, a year earlier. Adjusted earnings per share were $1.09, compared with the FactSet consensus of 90 cents. Hershey also raised its dividend by 6% to about 66 cents on common stock. —Emma Court Borrowing Benchmarks | WSJ.com/bonds Money Rates purchase of a stake in a Los Angeles-based in-flight entertainment company has collapsed, the companies said. Global Eagle Entertainment Inc. and HNA affiliate Beijing Shareco Technologies Co. terminated the deal because they couldn’t get approval from the Committee on Foreign Investment in the U.S. before a deadline set in their investment agreement, Global Eagle said in a filing. —Julie Steinberg PAYPAL HOLDINGS User Growth Reaches Milestone PayPal Holdings Inc. said Wednesday that new milestones reached in user growth and payment volume helped boost its second-quarter profit by 27%. The San Jose, Calif.-based payments company reported a quarterly profit of $411 million, or 34 cents a share. That compares with a profit of $323 million, or 27 cents a share, in the same period of 2016. Excluding certain items, its per-share earnings rose to 46 cents, above the estimate of analysts polled by Thomson Reuters. —Peter Rudegeair July 26, 2017 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Inflation June index level Chg From (%) May '17 June '16 U.S. consumer price index 0.09 0.07 244.955 252.014 All items Core 1.6 1.7 International rates Latest Week ago 52-Week High Low Prime rates U.S. Canada Japan 4.25 4.25 4.25 3.50 2.95 2.70 2.95 2.70 1.475 1.475 1.475 1.475 Policy Rates Euro zone Switzerland Britain Australia 0.00 0.50 0.25 1.50 0.00 0.50 0.25 1.50 0.00 0.50 0.50 1.75 0.00 0.50 0.25 1.50 1.05 1.09 1.38 0.15 Effective rate High Low Bid Offer 1.1800 1.3125 0.9700 1.1700 1.1800 1.2000 1.3125 1.1600 1.1700 1.1900 0.3300 0.5625 0.2000 0.2800 0.3000 One month Three month Six month One year One month Three month Six month One year Secondary market One month Three month Six month One year 30-year mortgage yields 3.548 3.492 3.865 2.808 3.578 3.519 3.899 2.837 0.49390 0.75150 1.08670 1.41360 -0.399 -0.378 -0.300 -0.187 -0.398 -0.376 -0.303 -0.185 -0.369 -0.302 -0.191 -0.064 -0.405 -0.378 -0.308 -0.190 -0.372 -0.330 -0.272 -0.153 Week Latest ago Latest 52-Week high low 3.00 3.00 3.00 1.75 1.00 90 days 1.26 1.24 1.26 1.101 1.143 Treasury MBS 2.25 23.35 1.5 ... 23.64 47.8 1.4 Calyxt CLXT July 20/$8.00 Kala Pharmaceuticals KALA July 20/$15.00 10.44 30.5 –7.2 18.98 26.5 2.7 TPG RE Finance Trust TRTX July 20/$20.00 19.75 –1.3 0.9 RBB Bancorp RBB July 26/$23.00 PetlQ PETQ July 21/$16.00 % Chg From Wed3s Offer 1st-day close ($) price close Federal Street Acquisition 10.15 FSACU July 19/$10.00 Akcea Thera 14.48 AKCA July 14/$8.00 Co-Diagnostics CODX July 12/$6.00 Byline Bancorp BY June 30/$19.00 Tintri TNTR June 30/$7.00 1.5 0.5 81.0 52.7 8.4 2.7 7.00 ... –3.7 Dividend Changes Company Dividend announcements from July 26. Initial Symbol Amount Yld % New/Old Frq Payable / Record Increased Amphenol Cl A BB&T Corp Charter Financial Comerica Inc Community Trust Bancorp Discover Finl Svcs EQT GP Holdings EQT Midstream Partners First Community Bncshrs Penske Automotive RPC Sotherly Hotels Total System Services Wells Fargo Western Refining Logistic APH BBT CHFN CMA CTBI DFS EQGP EQM FCBC PAG RES SOHO TSS WFC WNRL 1.0 .19 /.16 2.8 .33 /.30 1.5 .07 /.065 1.7 .30 /.26 3.0 .33 /.32 2.2 .35 /.30 2.9 .21 /.191 4.9 .935 /.89 2.6 .18 /.16 2.9 .32 /.31 1.1 .06 /.05 6.6 .11 /.105 0.8 .13 /.10 2.8 .39 /.38 7.3 .4675 /.4525 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Oct11 /Sep18 Sep01 /Aug11 Aug24 /Aug10 Oct01 /Sep15 Oct01 /Sep15 Sep07 /Aug24 Aug23 /Aug04 Aug14 /Aug04 Aug18 /Aug04 Sep01 /Aug10 Sep11 /Aug10 Oct11 /Sep15 Oct02 /Sep21 Sep01 /Aug04 Aug18 /Aug04 0.4 Q Oct02 /Sep15 Reduced MidSouth Bancorp MSL .01 /.09 63.250 1.366 0.244 92.850 1.506 0.257 Notes on data: U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; General Electric Capital Corp.; Tullett Prebon Information, Ltd. 4.60 –23.3 –20.8 20.59 52-Week High Low 98.885 0.005 7261 1.115 98.880 0.005 3086 1.120 98.865 unch. 2011 1.135 Treasury Jly Treasury Aug Treasury Sep Company SYMBOL IPO date/Offer price -0.375 -0.332 -0.274 -0.163 DTCC GCF Repo Index Futures Performance of IPOs, most-recent listed first % Chg From Wed3s Offer 1st-day close ($) price close Value Traded -0.366 -0.296 -0.183 -0.045 Open Implied Settle Change Interest Rate 0.59 IPO Scorecard Company SYMBOL IPO date/Offer price -0.373 -0.332 -0.274 -0.151 DTCC GCF Repo Index Call money Commercial paper (AA financial) 1.75 1.75 Company ERALDO PERES/ASSOCIATED PRESS 1.23333 1.31667 1.46544 1.82761 Other short-term rates Sources: WSJ Market Data Group; FactSet Research Systems Workers for JBS in Brazil. The meatpacker renegotiated debt amid fallout from a bribery scandal. 1.22889 1.30722 1.45322 1.73344 Euro interbank offered rate (Euribor) Fannie Mae 30 days 60 days 1.23333 1.31389 1.45722 1.73622 Euro Libor 0.980 0.955 0.980 0.160 1.180 1.050 1.180 0.250 1.130 1.105 1.130 0.395 4 weeks 13 weeks 26 weeks —52-WEEK— High Low Libor 1.1800 1.3125 1.1100 1.1500 1.1700 Treasury bill auction U.S. government rates Discount Week Latest ago Federal funds Overnight repurchase U.S. —52-WEEK— High Low Symbol Hess Midstream Partners Amount Yld % New/Old Frq .2703 HESM Payable / Record Aug14 /Aug04 Funds and investment companies AdvisorSh Pac Asst Enh FR AdvisorShares Newfleet AdvisorShares Sage Core AdvisorShs Peritus Hi Yd CWA Income ETF Horizons NASDAQ-100 Cvd Madrona Global Bond YieldShares Hi Incm FLRT MINC HOLD HYLD CWAI QYLD FWDB YYY 3.5 2.4 1.4 7.1 2.3 8.0 3.9 7.9 .14237 .09945 .11327 .2139 .04825 .15853 .08397 .13 M M M M M M M M Jul31 /Jul28 Jul31 /Jul28 Jul31 /Jul28 Jul31 /Jul28 Jul31 /Jul28 Aug01 /Jul28 Jul31 /Jul28 Jul31 /Jul28 CNI ETN EDU SANpA VTTI WCN 1.6 1.9 .3276 .60 .45 .425 .336 .12 Q Q Sep29 /Sep08 Aug18 /Aug04 Oct06 /Sep06 Aug21 /Aug06 Aug11 /Aug07 Aug22 /Aug08 Foreign Canadian Natl Railway Eaton Corp. PLC New Oriental Edu ADR Santander Fin 6.8%s 4 VTTI Energy Partners Waste Connections 6.5 6.8 0.7 Q Q Q KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. THE WALL STREET JOURNAL. Thursday, July 27, 2017 | B7 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 21711.01 s 97.58, or 0.45% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 20.79 19.49 P/E estimate * 18.35 17.72 Dividend yield 2.29 2.50 All-time high 21711.01, 07/26/17 Nasdaq Composite Index Last 2477.83 s 0.70, or 0.03% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.35 24.87 P/E estimate * 18.87 18.39 Dividend yield 1.97 2.12 All-time high: 2477.83, 07/26/17 Last Year ago 6422.75 s 10.57, or 0.16% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.37 23.75 P/E estimate * 21.42 19.64 Dividend yield 1.11 1.25 All-time high: 6422.75, 07/26/17 Current divisor 0.14602128057775 21800 2480 6380 21500 2450 6260 21200 2420 6140 20900 2390 6020 20600 2360 5900 Session high UP Close t DOWN Session open 65-day moving average Open t Close 65-day moving average 65-day moving average 5780 2330 20300 Session low Bars measure the point change from session's open May June Apr. July 5660 2300 20000 Apr. May June Apr. July May June July Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes High Latest Close Low Net chg % chg 21742.70 21683.29 21711.01 Transportation Avg Utility Average Total Stock Market Barron's 400 9413.34 9484.12 -5.36 0.45 722.68 714.34 722.59 6.73 -0.06 0.94 -0.05 25736.95 25655.20 25679.11 -13.14 662.01 658.30 658.79 -3.14 Nasdaq Stock Market Nasdaq Composite 6432.38 Nasdaq 100 5954.38 6416.30 5939.17 6422.75 5950.73 -0.47 0.16 10.57 20.09 Standard & Poor's 500 Index 2481.69 2474.94 2477.83 MidCap 400 SmallCap 600 1793.21 876.30 1775.98 869.33 1776.69 -15.24 870.23 -5.83 Other Indexes Russell 2000 1452.02 1441.25 1442.28 0.34 0.03 0.70 17.5 9.9 8.6 7648.44 20.6 4.9 4.0 Most-active issues in late trading 737.51 625.44 2.5 9.5 9.1 25692.25 21514.15 661.93 521.59 14.8 20.4 10.3 9.5 7.6 7.3 52-Week Low % chg YTD % chg 3-yr. ann. 6422.75 5950.73 5046.37 4660.46 25.0 26.5 19.3 22.4 13.0 14.5 2085.18 14.4 10.7 7.8 -0.67 1791.93 876.06 1476.68 703.64 14.7 16.8 7.0 3.9 8.1 9.7 -0.56 1450.39 1156.89 18.3 6.3 8.0 Company Volume (000) Symbol 11985.19 11956.41 11964.91 NYSE Composite -8.11 531.17 531.40 -2.22 NYSE Arca Biotech 4051.61 4022.03 4043.10 16.02 NYSE Arca Pharma -1.41 535.29 532.76 533.97 KBW Bank 97.17 95.53 PHLX§ Gold/Silver 95.77 86.74 82.88 86.13 PHLX§ Oil Service PHLX§ Semiconductor CBOE Volatility -0.01 -0.81 534.21 11965.72 10289.35 -0.42 0.40 -0.26 -0.99 -1.02 3.08 2.57 136.99 133.45 134.80 -0.72 1119.69 9.66 1108.51 8.84 1115.35 9.60 12.76 0.17 -0.53 Close 3.59 173.44 158.00 SPY SPDR S&P 500 VanEck Vectors Gold Miner GDX 6,544.2 247.51 0.08 0.03 247.60 247.28 5,816.3 22.88 0.04 0.18 22.91 British Amer Tobacco ADR BTI 5,170.0 68.70 ... unch. 69.32 68.61 Latest % chg Net chg World Americas Brazil Canada Mexico Chile DJ Americas 596.61 Sao Paulo Bovespa 65010.57 S&P/TSX Comp 15171.39 IPC All-Share 51600.26 Santiago IPSA 3830.80 Europe Euro zone Belgium France Germany Israel Italy Netherlands Spain Sweden Switzerland U.K. Stoxx Europe 600 Euro Stoxx Bel-20 CAC 40 DAX Tel Aviv FTSE MIB AEX IBEX 35 SX All Share Swiss Market FTSE 100 382.74 378.76 3952.70 5190.17 12305.11 1453.64 21577.56 527.72 10575.40 568.10 8990.34 7452.32 1.97 2.27 50.94 29.09 40.80 –1.59 120.11 3.03 52.00 3.24 52.44 17.50 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan DJ Asia-Pacific TSM 1669.49 S&P/ASX 200 5776.60 Shanghai Composite 3247.67 Hang Seng 26941.02 S&P BSE Sensex 32382.46 Nikkei Stock Avg 20050.16 Straits Times 3336.72 Kospi 2434.51 Weighted 10419.11 0.72 50.00 3.99 88.97 154.19 94.96 8.89 –5.39 –44.04 BAC 3,741.1 24.19 -0.02 -0.08 24.59 24.16 AT&T T 2,767.5 38.08 0.05 0.13 38.10 37.86 Cisco Systems CSCO 2,271.6 31.73 0.07 0.22 31.79 31.60 1,842.5 11.10 ... unch. 11.14 11.05 iPath S&P 500 VIX ST Fut VXX Percentage gainers… 118.3 47.88 3.64 8.22 47.88 44.24 Nutrisystem NTRI 47.0 67.50 4.55 7.23 69.75 62.95 AXT AXTI 166.7 8.10 0.50 6.58 8.90 7.50 NETGEAR NTGR 35.9 47.00 2.90 6.58 47.70 43.45 Innoviva INVA 23.8 14.00 0.81 6.14 14.00 13.19 11.4 8.2 2.9 10.6 5.0 2.4 4075.95 2834.14 21.4 31.5 13.7 554.66 463.78 -3.1 10.9 1.0 99.33 66.90 40.6 4.3 10.2 Community Health Systems CYH 45.3 7.32 -1.14 -13.48 8.53 7.18 112.86 73.03 -19.9 9.2 -5.4 Essendant ESND 11.8 11.75 -1.66 -12.38 13.42 11.05 126.75 -15.7 -26.7 -23.5 Buffalo Wild Wings BWLD 398.4 113.50 -9.15 -7.46 122.65 108.00 23.0 -31.6 F5 Networks FFIV 114.7 120.00 -8.20 -6.40 128.25 117.92 Mindbody MB -1.35 -5.17 755.73 43.9 9.36 -25.2 21.8 -8.9 ...And losers 5.3 YTD % chg 0.18 0.45 0.04 0.11 5.11 10.36 0.15 0.27 –0.06 –0.35 –657.05 –1.00 –0.20 –30.98 –0.22 –113.12 0.17 6.59 0.52 0.60 1.31 0.56 0.33 –0.11 0.56 0.58 0.49 0.57 0.59 0.24 0.04 0.87 0.12 0.33 0.48 0.48 0.27 –0.22 –0.42 12.6 2.1 13.2 16.1 10.4 7.9 –0.8 13.1 18.9 5.9 8.1 9.6 6.7 7.2 –1.2 12.2 9.2 13.1 6.3 9.4 4.3 17.3 2.0 4.6 22.5 21.6 4.9 15.8 20.1 12.6 Company Symbol China Lending iRobot Sachem Capital ADOMANI SMART Global Holdings CLDC Celadon Group Skyline Corp Tetraphase Pharma Heritage-Crystal Clean Everspin Technologies CGI Brinks Novogen ADR Mastech Digital Monarch Casino Resort SenesTech BCO 52-Week Low % chg High 24.75 -38.0 177.6 ... ... ... LSB Industries Eagle Pharmaceuticals Rosetta Genomics Amedisys Triumph Group LXU 4.85 SKY 7.35 TTPH 7.88 HCCI 18.35 MRAM 20.84 0.70 1.03 0.98 2.25 2.53 16.87 16.30 14.20 13.98 13.82 9.75 1.30 17.35 5.07 9.93 3.11 18.55 11.85 25.39 6.15 -40.5 -20.4 86.7 52.0 ... Kindred Healthcare Akamai Technologies Neurotrope Almost Family PAVmed KND 80.40 3.16 10.10 34.07 3.14 9.70 0.38 1.13 3.81 0.34 13.72 13.67 12.60 12.59 12.14 81.30 31.54 9.76 2.61 10.10 5.81 34.59 21.13 10.69 2.62 151.3 -58.9 29.7 45.8 ... Neuralstem Koss Wabash National USANA Health Sciences Global Eagle Ent CUR NVGN MHH MCRI SNES Most Active Stocks Company Symbol Advanced Micro Devices Ford Motor AT&T Bank of America VanEck Vectors Gold Miner AMD Delcath Systems AK Steel Finl Select Sector SPDR US Steel iShares MSCI Emg Markets DCTH Volume % chg from Latest Session (000) 65-day avg Close % chg 234,371 70,495 69,649 61,890 57,970 F T BAC GDX 57,765 55,446 54,301 48,635 48,398 AKS XLF X EEM Home Equity 6.00% 5.00 4.00 t 3.00 2.00 Adirondack Bank Utica, NY 1.99% 877-404-2265 Salem Five Salem, MA 3.75% 978-745-5555 National Bank of Arizona Salt Lake City, UT 3.86% 800-655-7622 First Northern Bank & Trust Co 3.95% Palmerton, PA 800-242-4671 BB&T Ashland, KY 3.99% 800-226-5228 4.00 Wednesday t One year ago 1 3 6 month(s) 1 2 3 5 710 years maturity Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.31 1.31 Money market, annual yield 0.32 0.32 Five-year CD, annual yield 1.44 1.44 30-year mortgage, fixed† 3.97 3.96 15-year mortgage, fixed† 3.17 3.15 Jumbo mortgages, $424,100-plus† 4.33 4.33 Five-year adj mortgage (ARM)† 3.32 3.45 New-car loan, 48-month 3.08 3.03 HELOC, $30,000 5.16 5.19 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.75 l 0.23 l 1.17 l l 3.44 l 2.70 l 4.02 l 3.07 l 2.87 l 4.57 1.25 4.25 1.32 0.36 1.44 4.33 3.50 4.88 4.03 3.36 5.20 1.00 1.00 1.08 -0.08 0.05 -0.40 -0.34 -0.38 -0.26 -0.13 0.66 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 KOSS WNC USNA ENT Nasdaq NYSE Arca Total volume*1,944,227,863 241,146,565 Adv. volume*1,099,617,871 186,476,698 Decl. volume* 783,091,451 53,058,312 Issues traded 3,001 1,321 Advances 1,379 825 Declines 1,472 476 Unchanged 150 20 New highs 191 250 New lows 35 34 Closing tick 67 12 Closing Arms† 0.67 0.59 Block trades* 10,058 1,327 * 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. -33.7 0.14 -7.55 199.4 6.24 -7.96 -21.2 25.05 -0.67 131.6 26.20 7.20 -7.6 44.01 0.82 6.49 11.39 25.32 41.83 44.06 0.02 3.87 18.94 15.72 33.94 Lands' End Team Amedisys MainSource Fincl Group iSh Cur Hdg MSCI ACWI US LE 0 2.00 –5 1.00 –10 0.00 –15 30 High 7.65 -2.98 -28.03 53.37 -16.67 -23.80 1.94 -0.59 -23.32 48.69 -10.72 -18.04 27.30 -6.00 -18.02 12.84 4.52 97.15 42.33 13.80 1.40 65.91 34.58 39.92 19.65 -35.8 13.7 -84.8 -7.6 -30.6 9.55 45.49 4.42 48.95 3.45 -1.65 -7.79 -0.75 -7.75 -0.53 -14.73 -14.62 -14.51 -13.67 -13.33 12.41 5.65 71.64 45.41 29.00 0.18 62.95 35.21 15.24 3.35 -21.4 -9.9 820.8 21.9 ... 2.47 1.77 20.91 57.45 2.98 -0.34 -0.24 -2.75 -7.30 -0.37 -12.10 -11.94 -11.62 -11.27 -11.04 6.60 2.20 3.69 1.59 24.16 10.74 75.00 52.55 9.73 2.61 -16.6 -19.5 49.9 -18.9 -62.9 EACQ GUID TTPH OEC TISI AMED MSFG HAWX Volume % chg from Latest Session (000) 65-day avg Close % chg 12,928 2,016 6,559 14,166 4,258 10165 4429 4065 3059 1608 1,969 4,544 3,071 923 163 1352 1144 1069 1006 910 6.05 0.00 3.04 14.20 -8.03 20.86 10.00 7.11 7.88 21.75 13.40 0.37 14.70 -5.16 48.69 -18.04 35.03 3.61 25.41 0.16 52-Week High Low 20.90 9.90 11.85 9.25 7.80 4.52 9.93 3.11 24.55 16.00 24.80 39.70 65.91 37.20 26.63 13.15 14.25 34.58 21.82 21.42 Currencies U.S.-dollar foreign-exchange rates in late New York trading WSJ Dollar index Euro s Yen Country/currency US$vs, YTDchg Wed in US$ per US$ (%) Americas Argentina peso .0571 17.5018 10.3 Brazil real .3186 3.1388 –3.6 Canada dollar .8036 1.2445 –7.4 Chile peso .001552 644.20 –3.8 Colombia peso .0003314 3017.39 0.5 Ecuador US dollar 1 1 unch Mexico peso .0569 17.5886 –15.2 Peru new sol .3081 3.246 –3.2 Uruguay peso .03511 28.4800 –3.0 Venezuela b. fuerte .098522 10.1501 1.6 Asia-Pacific 2016 52-Week Low % chg * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days 10% 5 Latest Session Close Net chg % chg Ranked by change from 65-day average* SNC 2017 Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 1456.679 1.993 1.982 2.237 1.233 –3.186 2.519 2.285 2.946 2.520 4.948 2.870 1.863 2.268 2.956 2.510 5.061 2.820 1.887 2.609 3.390 2.790 6.448 3.120 2.516 1.458 –0.201 2.561 2.488 1.109 3.951 1.860 –0.040 2.582 4.948 10.039 3.713 1.990 0.428 2.408 1.328 0.354 2.939 789.761 5.530 5.516 6.290 5.134 EMBI Global, J.P. Morgan PAVM State National Easterly Acquisition Guidance Software Tetraphase Pharma Orion Engineered Carbons 10-yr Treasury, Ryan ALM 1734.170 DJ Corporate 376.920 Aggregate, Barclays Capital 1929.360 High Yield 100, Merrill Lynch 2840.824 Fixed-Rate MBS, Barclays 1974.970 Muni Master, Merrill 519.013 Treasury, Ryan ALM AFAM 5.66 10.67 35.81 14.09 18.58 3.00 Close NTRP 15.65 13.99 43.50 25.80 31.79 Corporate Borrowing Rates and Yields Bond total return index AKAM 14.76 4.61 11.06 -1.86 38.03 5.00 24.21 -1.10 22.84 2.56 186.2 81.4 219.5 -20.6 14.8 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago TGI Symbol Yen, euro vs. dollar; dollar vs. major U.S. trading partners 5.00% 5.19% AMED Company Forex Race notes and bonds Bankrate.com avg†: ROSG 52-Week High Low * Volumes of 100,000 shares or more are rounded to the nearest thousand t A consumer rate against its benchmark over the past year EGRX Volume Movers s Selected rates Symbol 8.89 2.00 109.40 36.50 5.35 3.72 18.31 6.53 19.27 11.50 s U.S. consumer rates Company 38.18 21.15 20.48 18.51 17.07 Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, Consumer Rates and Returns to Investor 4.746 4.582 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .8005 1.2492 –10.0 China yuan .1481 6.7539 –2.7 Hong Kong dollar .1281 7.8093 0.7 India rupee .01554 64.355 –5.3 Indonesia rupiah .0000751 13308 –1.6 Japan yen .008995 111.18 –5.0 Kazakhstan tenge .003057 327.14 –2.0 Macau pataca .1243 8.0443 1.6 Malaysia ringgit .2334 4.2845 –4.5 New Zealand dollar .7517 1.3303 –7.9 Pakistan rupee .00950 105.308 0.9 Philippines peso .0198 50.613 2.0 Singapore dollar .7368 1.3573 –6.2 South Korea won .0008988 1112.60 –7.9 Sri Lanka rupee .0065181 153.42 3.4 Taiwan dollar .03308 30.233 –6.8 ONLINE Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com US$vs, YTDchg Wed in US$ per US$ (%) Country/currency .02994 33.400 –6.7 .00004400 22728 –0.2 Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound .04510 22.175 –13.7 .1578 6.3370 –10.4 1.1735 .8522 –10.4 .003851 259.70 –11.8 .009596 104.21 –7.7 .1267 7.8928 –8.7 .2760 3.6235 –13.5 .01679 59.576 –2.8 .1224 8.1704 –10.3 1.0516 .9509 –6.7 .2827 3.5373 0.4 .0387 25.8650 –4.5 1.3122 .7621 –5.9 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6514 .3772 ... .0558 17.9190 –1.2 .2810 3.5587 –7.5 3.3092 .3022 –1.1 2.5974 .3850 0.01 .2771 3.609 –0.9 .2666 3.7504 –0.01 .0769 13.0067 –5.0 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.14 –0.54–0.63 –7.31 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Wednesday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity WSJ .COM 27.40 3.80 1.05 106.49 18.59 SACH 5.00 0.85 ADOM 10.50 1.64 SGH 19.00 2.77 IRBT CREDIT MARKETS & CURRENCIES Interest rate 24.75 Total volume* 822,087,424 7,437,333 Adv. volume* 353,216,147 4,788,790 Decl. volume* 457,268,480 2,059,407 Issues traded 3,086 331 Advances 1,502 211 Declines 1,454 100 Unchanged 130 20 New highs 168 10 New lows 13 3 Closing tick 1 6 Closing Arms† 1.38 1.00 Block trades* 6,491 54 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group A S O N D J F MAM J J 2016 2017 22.84 Bank of America Percentage Gainers... The Global Dow 2849.53 The Global Dow Euro 2306.97 DJ Global Index 369.13 DJ Global ex U.S. 248.31 Prime rate Low 5.94 FB Sources: SIX Financial Information; WSJ Market Data Group Region/Country Index t After Hours % chg High 455.65 192.66 International Stock Indexes Home equity loan Net chg 533.62 1.16 1138.25 22.51 1.80 Philadelphia Stock Exchange Last NYSE NYSE Amer. 10,659.8 171.55 Facebook Cl A Robert Half International RHI Value Line World 21711.01 17888.28 2477.83 -0.85 Volume, Advancers, Decliners 9742.76 High 97.58 9527.43 Trading Diary Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares. Dow Jones Industrial Average Late Trading TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 568.41 4.85 179.45 48.75 2.924 1249.00 1.79 0.86 -0.020 -2.70 0.86 589.81 506.18 1.01 195.14 54.45 1.80 3.93 -0.68 -0.22 1364.40 166.50 39.51 2.55 1127.80 % Chg 11.21 YTD % chg 0.20 -0.09 -6.78 16.29 -9.25 9.43 -21.48 8.61 -5.85 THE WALL STREET JOURNAL. B8 | Thursday, July 27, 2017 COMMODITIES Futures Contracts Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. 2.8300 2.8815 s 2.8300 2.8690 0.0285 July Sept 2.8425 2.9055 s 2.8320 2.8720 0.0255 Gold (CMX)-100 troy oz.; $ per troy oz. July 1244.80 1247.40 1244.80 1249.00 –2.70 Aug 1250.30 1263.40 1243.20 1249.40 –2.70 Oct 1252.90 1266.60 1246.60 1252.50 –2.90 Dec 1256.20 1269.80 1249.40 1255.60 –2.90 Feb'18 1260.00 1272.80 1253.50 1259.10 –2.90 June 1264.20 1278.50 1260.20 1266.00 –2.90 Palladium (NYM) - 50 troy oz.; $ per troy oz. 864.00 865.00 864.00 867.90 5.95 July Sept 857.20 868.20 850.65 862.90 5.95 Dec 852.30 862.00 845.35 857.65 6.95 Platinum (NYM)-50 troy oz.; $ per troy oz. 929.30 929.30 928.60 919.50 –9.40 July Oct 929.40 934.70 919.30 922.70 –9.10 Silver (CMX)-5,000 troy oz.; $ per troy oz. 16.400 16.610 16.365 16.415 –0.082 July Sept 16.465 16.680 16.280 16.459 –0.083 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 48.51 48.87 48.01 48.75 0.86 Sept Oct 48.64 48.98 48.04 48.85 0.83 Nov 48.76 49.11 48.20 48.99 0.80 Dec 48.88 49.24 48.43 49.11 0.74 June'18 49.34 49.59 48.79 49.49 0.51 Dec 49.64 49.89 49.17 49.78 0.38 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.5776 1.5977 1.5672 1.5953 .0268 Aug Sept 1.5819 1.6019 1.5712 1.5995 .0265 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1.5995 1.6202 1.5810 1.6173 .0211 Aug Sept 1.5781 1.5974 1.5593 1.5944 .0224 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 2.944 2.965 2.895 2.924 –.020 Aug Sept 2.930 2.951 2.883 2.914 –.017 Oct 2.962 2.984 2.918 2.952 –.011 Nov 3.041 3.059 2.998 3.032 –.008 Jan'18 3.281 3.299 3.243 3.275 –.007 April 2.850 2.853 2.821 2.838 –.004 800 148,917 280.50 280.00 288.50 287.75 6.50 7.25 988.75 1000.25 321.30 327.90 314.40 320.50 319.80 326.50 1.50 21,043 1.60 161,089 Aug Dec 33.49 33.97 33.87 34.36 33.38 33.84 33.73 34.21 .23 31,996 .24 174,000 Sept Nov 1228.00 1252.50 1226.50 1249.50 1227.50 1250.50 Sept Dec 476.00 501.00 481.00 505.75 473.00 498.50 477.75 502.75 3.75 176,010 3.75 139,331 Sept Dec 474.00 500.75 480.50 s 507.50 s 472.25 499.50 475.50 502.50 2.75 109,357 3.00 79,444 734.00 744.25 712.75 722.25 717.50 726.00 –2.50 –2.50 730.00 740.00 146.900 147.675 148.425 148.900 144.925 145.700 146.475 147.075 –.050 –.075 Aug Oct 113.950 113.375 114.900 114.225 113.000 112.175 114.300 113.375 1.125 53,450 .600 186,024 Aug Oct 81.850 67.000 82.700 67.975 81.500 67.000 82.000 67.650 Sept Nov 377.40 360.00 381.40 364.80 376.00 360.00 377.50 362.00 July Aug 15.52 16.36 15.53 16.49 Sept Dec 1,916 1,955 1,940 1,973 t .01 –.06 Oct Dec 69.50 68.90 69.85 68.90 68.24 67.76 69.02 68.40 –.53 163 –.43 158,003 132.75 132.75 134.40 134.05 130.65 130.80 134.05 133.90 2,003 2,109 1.40 1.65 7,917 2,135 Sept Dec 152-160 153-100 151-100 152-000 152-080 151-010 153-050 151-290 17.0 729,813 18.0 879 Sept Dec 125-160 126-020 125-045 125-225 125-155 125-045 126-005 125-215 14.0 3,176,422 14.5 23,595 Sept Dec 117-267 118-072 117-190 117-262 117-265 117-177 118-062 117-277 10.5 2,964,764 10.7 8,347 Sept 108-025 108-057 108-022 108-055 3.0 1,364,255 … 267,882 .010 272,136 July Oct 98.850 98.815 98.850 98.835 98.848 98.815 98.850 98.830 Sept 101.313 101.938 101.125 101.891 .391 31,396 Aug … … … 98.7650 … 5,000 98.6650 98.6400 98.5200 98.2100 Aug Sept Dec Dec'18 98.6800 98.6700 98.5550 98.2650 98.6650 98.6400 98.5200 98.2050 98.6775 98.6650 98.5550 98.2650 .0150 82,945 .0200 1,495,102 .0300 1,880,446 .0550 1,370,674 Currency Futures .30 .70 –.01 .07 1,900 1,937 1,912 1,944 –14 115,858 –19 84,128 .8937 .8959 .9010 .9025 .8921 .8933 .8991 .9004 .0046 426 .0046 233,403 Aug Sept .7992 .8002 .8054 s .8062 s .7975 .7979 .8015 .8019 .0019 550 .0018 170,996 Aug Sept 1.3039 1.3052 1.3112 1.3147 1.3009 1.3021 1.3103 1.3117 .0058 413 .0057 197,972 Sept Dec 1.0537 1.0596 1.0560 1.0603 1.0458 1.0521 1.0528 –.0020 1.0591 –.0020 British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF 44,590 366 Australian Dollar (CME)-AUD 100,000; $ per AUD s .7877 .7973 .0035 607 s .7873 .7969 .0035 129,912 s .7865 .7960 .0035 1,943 s .7865 .7952 .0036 218 Mexican Peso (CME)-MXN 500,000; $ per MXN Aug … .56640 s .56040 .05655 .00047 64 Euro (CME)-€125,000; $ per € Aug 1.1658 1.1752 s 1.1625 1.1715 .0053 1,638 Sept 1.1680 1.1773 s 1.1646 1.1736 .0052 439,453 Aug Sept Dec March'18 .7938 .7931 .7924 … .8008 .8008 .7989 .7979 21687 s 21635 s 21563 21515 Sept Dec 21547 21507 S&P 500 Index (CME)-$250 x index 2479.30 s 2473.00 Sept 2472.00 Mini S&P 500 (CME)-$50 x index 2479.75 s 2477.50 s 2475.25 2472.25 Sept Dec 2471.50 2470.00 21646 21604 86 130,062 88 225 2473.30 –0.80 2473.25 2471.50 1791.10 1793.90 s 1774.90 Sept Dec 5933.8 5940.5 5958.0 s 5964.0 s 5927.0 5934.0 Mini Nasdaq 100 (CME)-$20 x index Mini Russell 2000 (ICE-US)-$100 x index 5948.0 5954.8 1374.40 s 1370.90 1372.70 .50 8,163 Sept Dec 93.96 93.72 93.22 93.05 93.51 93.30 –.38 –.37 47,777 1,746 Source: SIX Financial Information Expected Previous Current change week 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 1,315,276 ... 483,415 230,196 23,173 49 23,124 207,023 -2,600 ... -1,100 ... ... ... 491 231 23 0 23 208 2,973 ... 3 40,151 149,564 9,459 140,106 33,839 290,649 1,325 1,388 ... -500 ... ... ... ... Net crude, petroleum products, incl. SPR 1,994,161 39 151 9 142 33 291 ... 4-week avg 5-year avg Current 1,328 1,196 521 241 26 0 26 216 493 234 23 0 23 211 3 3 42 152 11 141 40 282 2,004 2,083 40 151 9 142 35 290 2,008 Current Total petroleum product Year ago 4-week avg Year ago 4-week avg 5-year avg ... 9,972 10,796 9,889 9,920 409 220 37 0 37 183 8,044 723 15 0 15 707 ... ... ... ... ... ... 7,996 8,437 591 869 10 92 0 0 10 92 581 778 7,848 645 23 0 23 622 8,004 597 46 0 46 552 3 ... ... ... ... 1,891 253 130 35 95 199 662 ... ... ... ... ... ... 4,588 ... ... 130 126 32 94 76 957 ... 192 93 12 81 176 906 175 122 42 81 162 830 4,435 6,218 71 101 22 80 213 827 4,435 6,191 Natural gas storage Weekly Demand, 000s barrels per day Expected Previous change week Expected Previous change week 10,128 39 135 17 118 37 262 5-year avg 21,289 ... 21,178 20,802 21,163 20,028 motor gasoline Kerosene-type 9,821 ... 9,592 9,797 9,726 9,377 jet fuel Distillates Residual fuel oil Propane/propylene Other oils 1,804 4,376 278 1,200 3,811 ... ... ... ... ... 1,735 4,334 374 701 4,442 1,777 3,856 470 878 4,024 1,870 4,223 416 957 3,972 1,668 3,817 267 ... ... 4250 t 3250 t Five-year average for each week 2250 1250 250 A S O N D J F M A M J 2017 2016 J 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 ETF Wednesday, July 26, 2017 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt DeutscheXMSCIEAFE EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCIACWIETF AMLP XLY XLP DGP DZZ DBEF XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI 12.00 91.42 55.27 23.59 5.73 30.27 65.88 25.05 94.42 80.11 68.63 110.19 105.46 123.87 62.51 53.03 59.42 249.14 177.13 71.44 56.65 109.64 92.74 70.38 49.69 12.12 121.09 88.97 115.34 107.04 67.40 0.08 –4.8 –0.04 12.3 6.9 –0.02 1.70 17.3 –1.72 –16.4 7.9 0.13 0.11 –12.5 7.7 –0.67 9.0 –0.20 –0.34 16.2 0.13 10.3 1.8 0.28 0.5 0.08 1.1 0.25 0.61 16.6 24.9 0.78 0.49 17.7 0.03 10.7 7.1 –0.91 3.9 –0.68 10.5 –0.12 1.5 0.19 4.7 –0.46 0.54 15.0 9.9 0.06 9.4 0.75 3.3 0.33 2.8 0.15 4.6 0.54 0.7 0.33 0.30 13.9 ETF ETF Closing Chg YTD Symbol Price (%) (%) iShMSCI EAFE iShMSCIEAFESC iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500ValueETF iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDRBloomBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB 66.87 59.55 44.01 41.69 54.24 325.90 110.90 122.82 137.75 116.96 173.15 143.25 119.80 146.69 195.13 85.03 200.52 141.37 106.14 39.24 113.47 84.56 106.81 123.77 110.38 101.74 144.87 45.06 23.27 37.42 119.88 32.68 59.86 0.62 0.64 0.82 0.85 0.33 0.65 0.11 0.16 –0.01 –0.20 –0.26 –0.56 –0.91 –0.07 –0.26 –0.33 –0.61 0.14 –0.21 0.26 0.29 0.07 0.32 0.16 –0.05 0.02 0.33 –0.13 0.04 0.13 0.81 0.65 –0.05 15.8 19.5 25.7 20.5 11.0 22.8 2.5 17.1 10.7 4.4 12.5 6.2 0.7 10.3 9.1 5.7 10.1 16.1 4.7 5.5 0.3 0.1 1.9 3.9 13.3 0.4 22.3 8.4 –0.4 2.7 9.4 18.1 10.5 SchwabUS LC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg Closing Chg YTD Symbol Price (%) (%) SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VIG VEA VWO VGK VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ 59.11 216.81 323.37 247.43 90.06 57.72 52.99 22.84 148.96 125.00 93.31 42.54 43.00 56.72 51.74 131.38 149.13 79.17 84.80 88.09 113.61 145.82 104.91 84.28 227.30 79.96 80.21 138.54 81.95 54.39 53.77 127.29 69.51 97.80 62.60 52.27 Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 2.7 U.S. Aggregate 1929.36 YTD total return (%) 2.520 1.860 2.790 U.S. Corporate Indexes Bloomberg Barclays 1974.97 1.7 Mortgage-Backed 1945.56 1.4 Ginnie Mae (GNMA) 2.830 1.870 3.090 2.870 1.990 3.120 3.110 2.760 3.520 1157.23 1.9 Fannie mae (FNMA) 2.880 2.020 3.120 2607.53 3.4 Intermediate 2.620 2.190 3.010 1782.39 1.9 Freddie Mac (FHLMC) 2.890 2.030 3.130 3764.19 7.1 Long term 4.210 3.970 4.710 519.01 562.25 3.4 Double-A-rated 2.570 2.020 2.870 363.52 3.400 3.180 3.870 4.5 U.S. Corporate 5.1 708.80 Triple-B-rated High Yield Bonds Merrill Lynch 6.1 High Yield Constrained 5.399 5.399 6.927 4.9 300.98 1.863 1.328 2.516 4.7 7-12 year 1.874 1.374 2.618 403.95 4.7 12-22 year 2.422 1.688 3.047 389.52 5.0 22-plus year 2.908 2.139 3.622 Global Government J.P. Morgan† 0.6 10.062 9.584 15.470 540.21 4.948 4.948 6.448 752.22 -0.2 Canada 2.010 1.240 2.050 Global High Yield Constrained 5.092 5.092 6.484 366.14 -0.8 EMU§ 1.208 0.512 1.363 Europe High Yield Constrained 2.457 2.457 3.836 702.22 -0.6 France 0.940 0.270 1.210 Germany 0.570 -0.100 0.620 Japan 0.420 -0.020 0.460 Netherlands 0.700 0.020 0.760 U.K. 1.570 0.960 1.790 7.4 Triple-C-rated 413.05 4.0 Muni Master Global Government 1.440 0.820 1.560 503.90 -2.1 U.S Agency Bloomberg Barclays 1636.01 1.9 U.S Agency 1.810 1.200 1.960 286.92 1465.70 1.3 10-20 years 1.610 1.030 1.750 555.23 -1.9 3316.38 6.1 20-plus years 2.960 2.430 3.460 917.99 2.720 2.340 3.090 789.76 3.9 Yankee -0.4 0.5 6.9 Emerging Markets ** 5.530 5.134 6.290 † 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 1.375 2.375 Year ago 1.390 2.338 1.336 2.140 0.758 1.568 l 1.849 1.669 1.562 50.3 45.9 l 2.699 2.385 1.928 45.3 36.1 36.0 France 2 -0.410 t 10 0.811 s l -0.384 -0.461 -0.534 -177.4 -129.2 l 0.810 0.606 0.199 -152.9 -136.9 Germany 2 -0.663 t 10 0.559 t l -0.653 -0.646 l 0.570 0.001 s 2.128 s l l Japan 2 -0.106 s 10 0.080 s l l 0.070 0.056 Spain 2 -0.277 t 10 1.549 s l -0.262 -0.293 l 1.531 1.373 1.121 0.292 t 1.237 t l 0.312 0.239 0.170 l 1.260 1.013 0.824 l l 1.850 s 2.736 s 2.750 Australia 2 10 1.000 0.000 0.500 0.050 Italy 2 2.200 10 0.100 0.100 2.750 1.500 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago Month ago U.S. 2 1.347 t 10 2.283 t 2.750 0.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous 1.750 U.K. 2 4.250 10 -175.7 -147.2 80.4 -204.3 -136.3 0.248 -0.605 -201.1 -0.026 -172.5 -176.9 -159.4 -0.004 -0.346 -0.047 -134.7 -139.4 -80.5 2.122 1.896 1.256 -15.6 -21.7 -31.2 -0.110 -0.100 -0.333 -145.4 -150.0 -109.1 -0.255 -220.3 -226.8 -182.3 -0.159 -165.2 -91.7 -80.8 -44.7 -105.5 -107.8 -58.8 -104.6 -107.8 -74.4 -162.4 -73.4 Source: Tullett Prebon Corporate Debt in that same company’s share price. Natural gas, lower 48 states Largest 100 exchange-traded funds, latest session Index Total return close Investment-grade spreads that tightened the most… Billions of cubic feet; weekly totals Finished Yield (%) Latest Low High ** EMBI Global Index Imports, 000s barrels per day Year ago YTD total return (%) *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds Inventories, imports and demand for the week ended July 21. 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. Inventories, 000s barrels Total return close 2435.20 Macro & Market Economics Watching the Gauges: U.S. Supply and Demand 38.1000 0.3150 n.a. 0.3298 0.3550 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 5.9 1373.70 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 373.03 –8.50 571,092 –8.60 380 4.70 69 3.3950 74.7 483.4 200 88 318 3.2600 389.00 21.88 7.6525 320.30 186.41 175.32 n.a. 1.0196 2.6075 146.00 170.75 86.00 n.a. 1.2955 1.5400 0.8250 14.90 0.78 86.03 n.a. 1.1012 117.00 162.09 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 7/25 Source: WSJ Market Data Group High Yield 100 Sept t t 16.4900 19.7880 16.4250 20.5310 £12.5412 16.3700 5.9 1441.40 1440.60 Grains and Feeds Silver, troy oz. Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price (U.S.$ equivalent) 0.5925 0.6752 *84.50 60.000 n.a. Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u SoybeanMeal,Cent IL,rail,ton48%-u 9.5350 8.1500 4.8000 4.3650 5.2138 Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers,dressed 'A'-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 1256.78 1351.04 1248.10 1385.39 *1252.00 *1254.40 1300.00 1312.50 1312.50 1515.13 1228.25 1312.50 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 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 LBMA Platinum Price PM *926.0 Platinum,Engelhard industrial 923.0 Platinum,Engelhard fabricated 1023.0 Palladium,Engelhard industrial 864.0 Palladium,Engelhard fabricated 964.0 Aluminum, LME, $ per metric ton *1896.5 Copper,Comex spot 2.8690 Iron Ore, 62% Fe CFR China-s 68.4 Shredded Scrap, US Midwest-s,w 296 Steel, HRC USA, FOB Midwest Mill-s 616 Metals Gold, per troy oz Wednesday 12464 Other metals 0.6944 0.8729 2.920 2.880 1.740 2.600 2.680 1.670 2.820 42.700 11.280 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 2840.82 1439.80 1440.00 Wednesday Coins,wholesale $1,000 face-a 93,036 1452.30 s 1440.00 94.12 93.88 Wednesday Energy 14.3 289,026 14.0 1,150 1775.70 –17.00 1449.60 1440.00 U.S. Dollar Index (ICE-US)-$1,000 x index Wednesday, July 26, 2017 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— separate from the futures price on an exchange, which reflects what the commodity might be worth in future months. 412.33 Sept Dec Mini Russell 1000 (ICE-US)-$100 x index 5,181 5,354 55,532 –0.75 2,962,640 –0.75 31,477 Mini S&P Midcap 400 (CME)-$100 x index Sept Cash Prices 2750.27 Index Futures Mini DJ Industrial Average (CBT)-$5 x index 3,539 768 15.50 16.38 Aug Sept Canadian Dollar (CME)-CAD 100,000; $ per CAD 22,159 16,707 15.48 16.30 Cocoa (ICE-US)-10 metric tons; $ per ton. 25.83 25.90 Eurodollar (CME)-$1,000,000; pts of 100% .550 35,742 .800 116,973 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Milk (CME)-200,000 lbs., cents per lb. 26.00 26.00 1 Month Libor (CME)-$3,000,000; pts of 100% 26,848 33,889 Aug Sept Hogs-Lean (CME)-40,000 lbs.; cents per lb. 26.81 26.00 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 8,292 1,188 12.50 13.00 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Cattle-Live (CME)-40,000 lbs.; cents per lb. 26.81 26.00 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 7.25 39,430 7.50 348,382 317.90 324.40 Sept Dec Sept Nov 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 1,378 4,961 Aug Dec Wheat (MPLS)-5,000 bu.; cents per bu. .33 419,126 .30 189,435 Japanese Yen (CME)-¥12,500,000; $ per 100¥ 290.00 290.00 Wheat (KC)-5,000 bu.; cents per bu. 14.23 15.00 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 17,700 317,611 189,467 86,755 122,519 104,336 284.75 280.00 Wheat (CBT)-5,000 bu.; cents per bu. 13.73 14.56 Treasury Notes (CBT)-$100,000; pts 32nds of 100% 24,946 130,026 Sept Dec 1235.50 s 1258.50 s 14.34 15.08 Interest Rate Futures 25,468 132,562 4.00 526,274 3.75 562,248 Rough Rice (CBT)-2,000 cwt.; $ per cwt. 13.82 14.68 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 621,693 173,495 121,973 336,227 124,777 170,465 372.75 386.00 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Oct March'18 Sept Nov 73 146,757 366.00 379.25 973.25 984.50 4.20 103,022 4.15 57,950 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. 6 63,821 373.25 386.25 991.00 1002.50 134.80 138.35 Cotton (ICE-US)-50,000 lbs.; cents per lb. 7 29,595 3,773 368.50 382.00 980.00 990.50 129.85 133.45 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 19 108,669 30,319 275,683 16,281 8,090 Sept Dec Soybean Meal (CBT)-100 tons; $ per ton. 135.20 138.70 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Agriculture Futures Aug Nov Open interest Chg 130.60 134.20 Sept Dec Open interest Corn (CBT)-5,000 bu.; cents per bu. Soybeans (CBT)-5,000 bu.; cents per bu. Settle Coffee (ICE-US)-37,500 lbs.; cents per lb. Metal & Petroleum Futures Oats (CBT)-5,000 bu.; cents per bu. Contract High hilo Low Open WSJ.com/commodities 0.05 0.44 –0.93 0.00 –0.46 0.38 0.95 2.56 0.18 –0.78 –0.41 0.64 0.73 0.75 0.51 0.26 –0.35 –0.03 0.26 0.38 –0.02 –0.21 –0.36 0.69 0.03 0.16 0.14 –0.51 0.24 0.11 0.54 –0.07 0.30 –0.20 0.10 –0.46 11.0 9.8 7.2 10.7 5.3 19.4 9.1 9.2 22.6 3.3 9.5 16.4 20.2 18.3 17.1 17.9 17.6 4.5 2.1 2.8 11.0 10.8 7.9 2.1 10.7 0.6 1.1 7.4 1.4 0.2 17.2 10.4 14.0 5.1 9.1 5.5 Spread*, in basis points One-day change Stock Performance Close ($) % chg Issuer Symbol Coupon (%) Wells Fargo Marathon Oil Seagate HDD Cayman Anadarko Petroleum WFC MRO STX APC 2.150 Jan. 30, ’20 3.850 June 1, ’25 4.875 June 1, ’27 5.550 March 15, ’26 40 159 297 153 –20 –10 –10 –9 45 180 277 166 54.91 12.18 … 45.17 –0.27 –1.30 … –1.20 Hess Microsoft Anheuser–Busch Inbev Finance Canadian Imperial Bank of Commerce HES MSFT ABIBB CM 5.800 2.375 2.625 2.350 277 16 65 44 –9 –9 –8 –8 294 n.a. n.a. n.a. 43.47 74.05 ... 86.14 –4.19 –0.19 ... 0.16 3302 222 173 n.a. 6.70 39.75 ... … 1.06 –1.49 ... … 84 230 42 177 61.22 26.58 ... … –1.40 2.51 ... … Maturity April 1, ’47 Feb. 12, ’22 Jan. 17, ’23 July 27, ’22 Current Last week …And spreads that widened the most Royal Bank of Scotland Viacom BPCE Seagate HDD Cayman RBS VIA BPCEGP STX 7.640 Sept. 30, ’49 5.875 Feb. 28, ’57 4.500 March 15, ’25 5.750 Dec. 1, ’34 Baxter International Discovery Communications American Honda Finance KKR Finance III BAX DISCA HNDA KKR 2.600 4.875 1.950 5.125 Aug. 15, ’26 April 1, ’43 July 20, ’20 June 1, ’44 3386 270 171 326 146 52 19 18 8 8 8 8 86 237 38 172 High-yield issues with the biggest price increases… Bond Price as % of face value Current One-day change Issuer Symbol Coupon (%) NGPL Pipeco Toys R US Freeport–McMoran Intelsat Luxembourg S.A. NGPLCO TOY FCX INTEL 7.768 7.375 5.400 8.125 Dec. 15, ’37 Oct. 15, ’18 Nov. 14, ’34 June 1, ’23 123.750 99.250 95.750 59.750 First Quantum Minerals MEG Energy Builders FirstSource Scientific Games International FMCN MEGCN BLDR SGMS 7.500 6.375 5.625 6.625 April 1, ’25 Jan. 30, ’23 Sept. 1, ’24 May 15, ’21 102.750 82.500 106.375 104.100 Maturity 3.50 1.88 1.75 1.75 1.50 1.50 1.38 1.23 Last week Stock Performance Close ($) % chg 119.000 n.a. 93.000 55.875 ... ... 15.06 ... ... ... 1.28 ... 101.750 80.500 104.250 n.a. ... ... 15.60 39.00 ... ... –1.08 2.63 104.375 84.375 n.a. 103.000 9.55 5.62 9.77 3.77 –14.73 –10.65 –1.31 –4.07 103.750 106.250 101.625 n.a. 43.27 45.01 19.06 … –5.36 –0.92 –2.36 … …And with the biggest price decreases Kindred Healthcare Sanchez Energy PHI CVR Partners KND SN PHII UAN 8.750 Jan. 15, ’23 6.125 Jan. 15, ’23 5.250 March 15, ’19 9.250 June 15, ’23 101.750 83.000 95.625 101.063 HealthSouth L Brands Tenet Healthcare Avis Budget Car Rental HLS LB THC CAR 5.750 5.625 6.750 5.125 103.000 105.375 100.250 100.270 Nov. 1, ’24 Oct. 15, ’23 June 15, ’23 June 1, ’22 –2.70 –2.52 –1.00 –0.94 –0.76 –0.75 –0.75 –0.73 *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, July 27, 2017 | B9 BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. 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, July 26, 2017 Stock Net Sym Close Chg NYSE ABB ABB 23.39 -0.08 AES AES 11.16 -0.08 Aflac AFL 77.35 -0.71 AGCO AGCO 71.81 -0.04 AT&T T 38.03 1.81 AXIS Capital AXS 64.88 -0.64 AbbottLabs ABT 50.40 -0.43 AbbVie ABBV 72.59 0.07 s Accenture ACN 129.51 0.56 AcuityBrands AYI 202.95 -3.30 Adient ADNT 69.05 0.80 AdvanceAuto AAP 106.70 1.41 AdvSemiEngg ASX 6.56 0.03 Aegon AEG 5.51 ... AerCap AER 48.80 -0.22 Aetna AET 155.69 -0.56 AffiliatedMgrs AMG 181.59 0.13 AgilentTechs A 59.72 -0.82 AgnicoEagle AEM 47.38 1.95 Agrium AGU 99.00 -1.09 AirProducts APD 143.90 -1.14 AlaskaAir ALK 87.72 0.59 Albemarle ALB 117.20 -1.60 Alcoa AA 36.63 -0.67 AlexandriaRealEst ARE 120.82 0.68 Alibaba BABA 155.79 3.35 Alleghany Y 614.65-12.33 Allegion ALLE 78.49 -0.61 Allergan AGN 256.15 1.53 AllianceData ADS 238.76 -3.31 s AllianceBernstein AB 24.90 -0.20 AlliantEnergy LNT 40.87 0.32 AllisonTransm ALSN 37.04 -0.06 Allstate ALL 89.40 -0.81 AllyFinancial ALLY 21.71 -0.32 AlticeUSA ATUS 31.60 0.52 Altria MO 71.73 -0.51 s AlumofChina ACH 15.88 0.48 Ambev ABEV 5.94 0.02 Ameren AEE 56.34 0.54 s AmericaMovil AMX 17.95 0.19 s AmericaMovil A AMOV 17.88 0.18 AmCampus ACC 47.48 0.33 AEP AEP 69.45 0.61 AmericanExpress AXP 85.30 -0.11 AmericanFin AFG 100.73 -2.04 AmerHomes4Rent AMH 23.17 0.13 AIG AIG 65.19 -0.10 AmerTowerREIT AMT 137.87 1.25 AmerWaterWorks AWK 81.35 0.59 Amerigas APU 45.02 0.07 s Ameriprise AMP144.65 5.81 AmerisourceBrgn ABC 94.21 -0.44 Ametek AME 61.51 -0.27 s Amphenol APH 74.94 -0.90 AnadarkoPetrol APC 45.17 -0.55 AB InBev BUD 115.71 1.75 Stock Net Sym Close Chg AnnalyCap NLY 11.83 0.03 AnteroMidstream AM 34.46 -0.07 AnteroResources AR 20.95 -0.32 Anthem ANTM 184.99 -5.59 Aon AON 138.95 -1.05 Apache APA 48.86 ... ApartmtInv AIV 43.88 0.45 s ApolloGlobalMgmt APO 28.18 0.07 AquaAmerica WTR 33.43 0.08 Aramark ARMK 39.88 -0.39 ArcelorMittal MT 25.71 -0.39 ArcherDaniels ADM 41.71 -0.25 Arconic ARNC 25.59 -0.33 AristaNetworks ANET 157.20 -0.80 ArrowElec ARW 83.65 -0.20 Assurant AIZ 105.14 -1.13 AstraZeneca AZN 33.94 0.16 Athene ATH 50.22 -0.50 s AtmosEnergy ATO 86.77 -0.13 s Autohome ATHM 48.70 0.35 Autoliv ALV 109.07 -0.75 AutoZone AZO 515.97 4.96 Avalonbay AVB 191.12 3.28 Avangrid AGR 45.67 0.23 AveryDennison AVY 92.34 1.07 AxaltaCoating AXTA 32.02 -0.27 BB&T BBT 46.75 -0.46 BCE BCE 46.81 0.29 BHPBilliton BHP 40.76 0.55 BHPBilliton BBL 35.62 0.52 BP BP 34.84 -0.06 BRF BRFS 11.88 0.19 BT Group BT 20.56 0.31 BakerHughes BHGE 36.05 0.80 Ball BLL 42.41 -0.10 BancoBilbaoViz BBVA 8.92 -0.04 BancodeChile BCH 84.42 0.33 BancoMacro BMA 88.94 0.26 s BcoSantChile BSAC 26.89 0.16 BancoSantander SAN 6.75 -0.03 BanColombia CIB 43.45 -0.47 BankofAmerica BAC 24.21 -0.27 BankofMontreal BMO 76.92 -0.02 BankNY Mellon BK 53.39 -0.34 BkNovaScotia BNS 62.24 -0.20 Barclays BCS 11.04 0.13 Bard CR BCR 321.20 -0.81 BarrickGold ABX 16.24 0.20 BaxterIntl BAX 61.22 -0.87 BectonDickinson BDX 202.72 -1.55 Berkley WRB 69.07 -3.13 BerkHathwy A BRK/A 259600189.98 BerkHathwy B BRK/B 173.02 0.08 BerryGlobal BERY 56.76 -0.13 BestBuy BBY 55.57 0.25 s Bio-RadLab A BIO 238.95 3.53 s BlackKnightFin BKFS 43.50 1.00 BlackRock BLK 432.71 1.36 BlackstoneGroup BX 34.49 -0.06 BlockHR HRB 30.18 -0.04 Stock Net Sym Close Chg BoardwalkPipe BWP 17.35 0.02 s Boeing BA 233.45 20.99 BorgWarner BWA 45.86 0.02 BostonProperties BXP 120.37 1.10 BostonScientific BSX 27.42 -0.16 Braskem BAK 24.50 0.15 Bristol-Myers BMY 55.98 0.03 BritishAmTob BTI 68.70 -0.51 BrixmorProp BRX 19.51 0.09 BroadridgeFinl BR 76.08 -0.58 BrookfieldMgt BAM 39.21 0.16 BrookfieldInfr BIP 40.63 0.08 Brown&Brown BRO 44.47 -0.18 Brown-Forman A BF/A 50.51 0.18 Brown-Forman B BF/B 48.99 0.16 BuckeyePtrs BPL 63.66 -0.68 Bunge BG 79.71 -0.88 BurlingtonStores BURL 87.14 0.31 CBD Pao CBD 22.73 0.72 CBRE Group CBG 38.34 -0.08 CBS A CBS/A 67.29 0.50 CBS B CBS 66.62 0.54 CF Industries CF 28.88 -1.29 s CGI Group GIB 53.53 0.44 CIT Group CIT 48.12 -0.48 CMS Energy CMS 46.53 0.37 s CNA Fin CNA 49.12 -0.91 CNOOC CEO 112.92 2.20 CPFLEnergia CPL 17.03 0.12 CRH CRH 35.64 0.33 CVS Health CVS 78.29 -0.62 CabotOil COG 25.16 0.04 CAE CAE 17.12 -0.12 CamdenProperty CPT 88.29 0.84 CampbellSoup CPB 52.61 0.08 CIBC CM 86.14 0.14 CanNtlRlwy CNI 79.59 -1.53 CanNaturalRes CNQ 30.79 0.38 CanPacRlwy CP 157.86 -1.31 Canon CAJ 34.34 0.09 CapitalOne COF 85.71 -1.38 CardinalHealth CAH 77.67 -0.02 Carlisle CSL 97.26 -2.83 CarMax KMX 66.73 0.55 Carnival CCL 66.70 -0.45 Carnival CUK 67.19 -0.32 Caterpillar CAT 113.52 -1.02 Celanese A CE 94.74 -1.05 Cemex CX 9.86 -0.24 CenovusEnergy CVE 7.97 0.03 Centene CNC 83.39 0.54 CenterPointEner CNP 28.08 0.16 CentraisElBras EBR 4.30 -0.11 CenturyLink CTL 22.86 -0.10 s Chemours CC 47.52 -0.50 Chevron CVX 105.12 0.73 ChinaEastrnAir CEA 27.35 -0.64 ChinaLifeIns LFC 16.12 -0.03 ChinaMobile CHL 53.85 0.24 ChinaPetrol SNP 77.38 1.35 New Highs and Lows | WSJ.com/newhighs Wednesday, July 26, 2017 Stock 52-Wk % Sym Hi/Lo Chg Stock TE Connectivity TEL NYSE highs - 168 Telus TIM Part Accenture ACN 129.61 14.86 AdamsDivEquityFd ADX AdvDisposalSvcs ADSW 24.33 16.80 AdvntClymrFd AVK 6.46 AdvntClymrSecII AGC 95.62 AlamoGroup ALG 25.30 AllianceBernstein AB 7.23 AllianzGIConv&Incm NCV 6.47 AllianzGICnvIncmII NCZ 20.44 AllianzGIEqtyConv NIE 13.51 AllnzGINFJDivInter NFJ 15.88 AlumofChina ACH AmericaMovil AMX 18.00 AmericaMovil A AMOV 17.88 Ameriprise AMP 145.88 77.47 Amphenol APH 28.50 ApolloGlobalMgmt APO AresDynamicCredit ARDC 16.56 ArtisanPtrsAsset APAM 33.85 AshfordHospPfdG AHTpG 25.15 13.54 AsiaPacificFund APB 87.09 AtmosEnergy ATO Autohome ATHM 49.31 14.68 AvenueIncmCrStrat ACP BcoSantChile BSAC 26.97 BankofAmPfdL BMLpL 24.80 239.91 Bio-RadLab A BIO BlackKnightFin BKFS 43.60 15.37 BlkRkCapEnIncoFd CII 9.01 BlckRkEnDivTr BDJ 13.66 BlkRkEnhGlbDiv BOE 18.40 BlkRkMultiIT BIT 233.98 Boeing BA 81.30 Brink's BCO 29.00 BrookfieldBusPtr BBU BrookfieldDTLAPf DTLAp 27.93 53.62 CGI Group GIB 50.15 CNA Fin CNA Chegg CHGG 15.37 48.59 Chemours CC 11.12 ChinaCordBlood CO 19.57 ChinaFund CHN 22.96 ChinaYuchai CYD 43.59 Coca-Cola Euro CCE CoreLogic CLGX 45.32 56.73 DCT Industrial DCT 15.10 DeutscheHiIncmOpps DHG 12.75 Dividend&IncomeFd DNI 11.41 DNB Select DNP 14.16 DominionDiamond DDC 21.18 DoubleLineIncm DSL DynagasLNG PfdA DLNGpA 26.98 EllieMae ELLI 114.95 15.17 EtnVncEqtyInco II EOS 147.02 Equifax EFX 99.16 EsteeLauder EL 8.20 Everi EVRI 78.30 FMC FMC FairIsaac FICO 146.13 FedAgriMtg C AGM 71.38 Ferrari RACE 105.66 FNFV Group FNFV 16.90 90.69 FidelityNtlInfo FIS 46.86 FirstAmerFin FAF 30.26 FirstIndRlty FR 13.89 FT StrHiIncm FHY 32.88 Flagstar FBC Fortis 35.87 FTS 47.65 FranklinRscs BEN 22.47 GabelliDividend GDV 7.05 GabelliUtility GUT 129.57 Gartner IT 29.00 Genpact G Globant GLOB 47.51 GreenDot GDOT 40.83 96.32 HDFC Bank HDB 18.04 HancockInvestors JHI 95.58 HanoverIns THG Heico A HEI/A 70.65 Honeywell HON 138.69 39.68 HoulihanLokey HLI 9.75 ICICI Bank IBN 18.52 ING Groep ING IDEX 118.08 IEX InterXion INXN 47.95 12.02 JapanSmlCap JOF 17.90 HancockHdgEquity HEQ 54.36 KB Fin KB 18.22 KT KT KeysightTechs KEYS 42.98 42.68 KoreaFund KF 33.25 La-Z-Boy LZB 164.22 LabCpAm LH 41.41 LeggMason LM LionsGate A LGF/A 29.85 LionsGate B LGF/B 27.95 29.91 MGMGrowthProp MGP MSCI MSCI 110.77 10.47 MVC Capital MVC 13.67 MacqFstTrGlbl MFD MacqGlblInfra MGU 25.53 MadisonSquGarden MSG 218.32 Markel MKL 1031.12 131.18 Mastercard MA 17.04 MS EmMktFd MSF 35.00 MS India IIF MotorolaSolutions MSI 92.19 NVR NVR 2705.16 NewOrientalEduc EDU 83.91 18.65 NYTimes A NYT NextEraEnergyUn NEEpQ 66.06 NextEraEnergy NEE 145.58 39.87 NextEraEnergy NEP 15.45 NuvCoreEqAlpha JCE 73.10 ONE Gas OGS 68.80 OwensCorning OC 22.87 PIMCODynamicCred PCI PIMCO DynIncmFd PDI 30.71 74.15 POSCO PKX 61.45 Prologis PLD 48.07 Prudential PUK 8.96 PutnmHiInco PCF QuakerChemical KWR 154.38 22.65 QuanexBldg NX 85.97 RaymondJames RJF ReinsuranceGrp RGA 136.59 RenaissanceRe RNR 152.00 43.89 Rollins ROL 9.94 RoyceGlbValueTr RGT 15.21 RoyceValue RVT ScorpioBulkNt19 SLTB 24.92 SensataTech 47.24 ST ServiceMaster SERV 42.94 SOQUIMICH 39.84 SQM SoCopper SCCO 39.82 72.95 Spire SR 27.68 Square SQ 96.26 StateStreet STT 0.4 ... 0.1 0.7 -0.2 -1.4 -0.8 0.1 -0.2 ... 0.2 3.1 1.1 1.0 4.2 -1.2 0.2 -0.4 -0.6 0.1 0.1 -0.1 0.7 -0.1 0.6 0.6 1.5 2.4 0.1 0.1 -0.1 0.3 9.9 13.7 1.7 1.1 0.8 -1.8 7.0 -1.0 3.1 0.4 -3.5 1.0 3.1 1.3 0.5 -0.1 1.2 ... -0.4 -0.1 -0.5 ... 1.0 0.2 4.1 -1.3 -0.1 -0.3 4.0 1.2 1.1 -0.6 0.8 0.2 1.3 0.8 -0.1 -0.4 0.1 0.8 0.7 1.6 0.3 1.5 1.2 -0.5 0.5 0.9 1.7 1.9 0.7 3.4 0.7 0.1 0.2 1.1 0.6 -0.7 0.6 0.2 2.7 0.9 0.3 0.3 1.5 0.1 0.1 1.1 0.1 0.9 -0.4 0.8 -0.3 0.8 0.5 0.2 2.7 -0.3 1.6 1.7 2.4 -1.0 0.3 6.2 -0.3 0.2 1.3 1.4 1.0 0.8 -2.4 -1.1 0.4 -1.4 0.9 4.5 0.2 -0.7 0.8 -1.9 6.3 1.0 0.9 0.6 1.6 1.9 TRI Pointe TaiwanFund TelecomItalia Teradyne TerrenoRealty TexasPacLand ThirdPointReins TotalSystem TransUnion Tri-Continental TurkcellIletism TylerTech Unitil Unilever Unilever Visa Vedanta VoyaGlbAdvantage VoyaGlbEquityDiv WGLHoldings WarriorMetCoal WasteConnections WasteMgt Wayfair Wipro WooriBank Workday TU TSU TPH TWN TI TER TRNO TPL TPRE TSS TRU TY TKC TYL UTL UN UL V VEDL IGA IGD WGL HCC WCN WM W WIT WF WDAY 85.20 36.30 16.93 14.21 20.81 10.23 36.86 34.86 340.74 14.70 64.94 46.32 25.02 9.07 182.49 52.15 58.35 57.13 100.99 17.70 11.00 7.79 85.95 20.48 67.14 76.00 80.40 6.20 53.50 106.26 -3.1 0.1 3.1 -0.4 0.5 0.6 1.9 0.9 1.6 ... 1.8 0.6 0.2 1.2 0.2 -0.2 0.9 0.8 0.9 0.9 -0.1 0.1 -0.2 2.3 1.9 -1.3 3.2 0.7 2.5 1.3 NYSE lows - 13 A10Networks ATEN ChinaDistanceEd DL DineEquity DIN EastmanKodakWt KODK/WS GlassBridgeEnts GLA IBM IBM Interpublic IPG LejuHoldings LEJU OmegaProtein OME SEACOR Marine SMHI Snap SNAP Team TISI Zymeworks ZYME 6.25 -1.8 7.06 -9.9 41.92 -1.8 0.20 -35.0 2.81 -0.7 144.47 -0.6 21.28 -3.2 1.40 -5.4 15.75 -1.8 15.08 -4.4 13.40 -3.5 14.25 -5.2 7.03 -2.5 NYSE Arca highs - 250 ALPSEmgDivDogs EDOG ALPS EqSecWgh EQL ARKIndlInnovation ARKQ AdvShNewTech FNG AlphaCloneAltAlpha ALFA BarcRetDisability RODI CambriaGlbMomentum GMOM CambriaGlbValue GVAL ClearSharesOCIO OCIO ColumbiaBeyBRICs BBRC ColumbiaEMQualDiv HILO ColumbiaEMConsumer ECON ColumbiaIndiaInfr INXX ColumbiaIndiaSC SCIN ColumbiaSustGlb ESGW CS FI LC Grwth FLGE CurrShAUD FXA CurrShCAD FXC CurrShEuro FXE DeepValueETF DVP DeutschexFTSEDev DEEF DeutscheXMSCIEMHdg DBEM DeutscheXUSDHiYd HYLB DiamondHillVal DHVW DirexAeroBl3 DFEN DirexDevMktBl3 DZK DirexESTOXX50Bl3x EUXL DirexEM Bull3 EDC DirexChinaBl3 YINN DirexFTSEEurBull3x EURL DirexFinlBull3 FAS DirexIndiaBull3 INDL DirexMexicoBl3 MEXX DirexS&P500Bl3 SPXL DirexSCBull2 SMLL DirexScBl1.25 LLSC DirexTechBull3 TECL Direx iBillionaire IBLN EmgMktInternetEcom EMQQ ETF Exposure TETF ETRACS2xLevxEn LMLP EthoClimateLeader ETHO FidelityMSCIIT FTEC FidelityMomFactor FDMO FidelityQualFactor FQAL FidelityValFactor FVAL FT FinlsAlpDx FXO FT Chindia FNI FT Long/Short FTLS FT TechAlphaDEX FXL FT USEquityOpp FPX FlexShIntQualDiv IQDE FlexShIntQuDivDyn IQDY FlexShIntlQualDiv IQDF FlexShEM FactTilt TLTE FlexMrnUSMktFtrTlt TILT FlexShQualDivDef QDEF FranklinIntlOpps FLIO FranklinLibEM FLQE GlbX ChinaFinls CHIX GlbX FTSEAndean40 AND GlbXMSCINigeria NGE GlbX MSCINorway NORW GlbXNextEmerging EMFM GlblXSuperDividend SDIV GSActiveBetaEM GEM GSActiveBetaIntlEq GSIE GSHedgeIndVIP GVIP GuggBRIC EEB GuggBull2020HY BSJK GuggBull2021HY BSJL GuggBull2022HY BSJM GuggBull2024HY BSJO GuggChinaAllCap YAO GuggFronMkts FRN GuggS&P500EWTech RYT GuggS&P600PrGrwth RZG GuggMSCIEMEq EWEM GuggRayJamesSB1 RYJ GuggS&P500Top50 XLG HartfordMultiDvxUS RODM HartfordMultiEM ROAM IQS&PHYLowVolBd HYLV InnovatorIBD50Fd FFTY iPathBloomCopperTR JJC iPath MSCI India INP iShCoreMSCIEmgMk IEMG iShCoreMSCIPacific IPAC iShS&PTotlUSStkMkt ITOT iShCurrHdgIntlHY HHYX iShCurHdgMSCIACWI HACW iShCurrHdgMSCIEM HEEM iShUSFinlServices IYG 24.85 65.33 30.15 21.23 41.31 70.27 25.82 24.89 25.45 18.21 14.49 27.71 14.31 20.42 29.77 190.10 80.15 79.45 113.52 29.28 28.03 22.83 51.56 29.24 31.50 71.29 26.69 102.00 26.76 33.80 53.29 91.65 33.36 36.61 44.86 33.35 84.56 30.37 34.99 17.07 15.72 31.65 45.50 28.94 29.25 29.92 29.60 38.49 36.89 46.34 61.45 24.99 27.47 26.14 55.99 104.09 41.12 28.06 31.63 16.58 9.30 20.08 12.74 22.72 22.01 33.23 28.47 50.05 34.40 24.99 25.31 25.59 25.90 31.97 14.31 132.00 106.48 33.42 40.99 175.47 27.87 24.30 25.52 29.85 32.92 82.60 53.08 55.50 56.83 27.36 27.43 25.18 116.83 0.6 ... 0.4 0.2 ... 1.4 0.2 1.1 0.2 0.6 0.3 1.2 0.9 0.2 0.4 0.5 0.7 0.4 0.6 0.9 0.5 0.4 0.2 -0.1 0.2 1.6 2.2 2.4 2.7 2.2 -0.8 2.7 1.3 ... 0.1 0.3 1.1 ... 1.1 -0.1 0.3 ... 0.1 -0.1 0.2 ... -0.6 1.4 0.2 ... -0.1 0.7 0.7 0.7 0.8 -0.4 ... 0.6 0.5 1.0 1.4 1.4 2.0 0.8 0.4 0.9 0.6 0.2 1.0 ... ... 0.1 0.2 0.4 0.4 0.1 -0.2 0.5 -0.3 0.2 0.8 0.1 ... 0.6 1.1 0.8 0.8 0.4 -0.1 0.4 1.1 0.2 -0.5 52-Wk % Sym Hi/Lo Chg iShUSAerospace&Def ITA iShUS Finls IYF iShU.S.Insurance IAK iShU.S.Technology IYW iShEdgeMSCIIntlMom IMTM iShEdgeMSCIIntVal IVLU iShEdgeMSCIMinVlEM EEMV iShEdgeMSCIMultInt INTF iShEdgeMSCIUSAMom MTUM iShEmgMktDividend DVYE iShiBoxx$HYCpBd HYG iShJPM EM LC Bd LEMB iShACWILowCarbon CRBN iShMSCIAustralia EWA iShMSCIAustriaCap EWO iShMSCIBRICETF BKF iShMSCICanadaETF EWC iShMSCIChileCapped ECH iShMSCIEmgMarkets EEM iShMSCIEmgMktSC EEMS iShMSCIItalyCapped EWI iShMSCIKLD400Soc DSI iShMSCIMexicoCap EWW iShMSCINetherlands EWN iShMSCIPacificxJp EPP iShMSCIPolandCap EPOL iShMSCISingapore EWS iShMSCISpainCapped EWP iShMSCIWorldETF URTH iShMornSCGrowth JKK iShRussell1000Gwth IWF iShRussell3000ETF IWV iShRussellTop200Gr IWY iShRussellTop200 IWL iShS&P100 OEF iShS&P500Growth IVW iShGlobalMaterials MXI iShIntlPfdStock IPFF iShS&PSC600Growth IJT iShNorthAmerTech IGM iShNATech-Software IGV iShDowJonesUS IYY iShChinaLC FXI iShUSBrokerDealers IAI HancockMultFinls JHMF HancockTech JHMT JPM DivRetEM JPEM JPM DivRetGlEq JPGE JPM DivRetIntlEq JPIN MadronaIntl FWDI OppESGRevenue ESGL OppenheimFclsSect RWW OppGlbESGRevenue ESGF PwrShCEF Incm PCEF PwrShDBBaseMtls DBB PwrShDynSoftware PSJ PwrShDynLC Grwth PWB PwrShAPac xJapan PAF PwrShDevMkt xUS PXF PwrShFTSE EM PXH PwrShIndia PIN PwrShRuss1000EqWt EQAL PwrShRussTop200G PXLG PwrShRuss2000Grw PXSG PwrShS&PEMLowVol EELV PwrShS&P500xRate XRLV PwrShS&PIntDev IDLV PwrShTreaColl CLTL ProShDJBrkGlIn TOLZ ProShShtVIXST SVXY ProShrUltraDow30 DDM ProShUlt Euro ULE ProShXinhuaChina25 XPP ProShrUltraFnl UYG ProShUltMSCIEAFE EFO ProShUltMSCIEM EET ProShrUltraQQQ QLD ProShUltDow30 UDOW PureFISEMobilePymt IPAY RenaissanceIPOETF IPO SPDRBloomBarCvSecs CWB SPDRBloomBarcHYBd JNK SPDRBloomBarInCpBd IBND SPDREUROSTOXXSC SMEZ SPDRMFSSysCore SYE SPDRMFSSysValueEqu SYV SPDRMSCIACWIIMI ACIM SPDRACWILowCarbon LOWC SPDREMFossilFuelFr EEMX SPDRMSTech MTK SPDRMomentumTilt MMTM SPDR S&P600SCpGr SLYG SPDRS&PCapitalMkts KCE SPDREmMktsDiv EDIV SPDRS&P500Buyback SPYB SPDRS&P1000ETF SMD SPDRS&PSft&Svs XSW SPDRGenderDivers SHE SPDRSSgAGlbAll GAL SchwabEM Equity SCHE SchwabFundEmgLrg FNDE SchwabFundIntLrgCo FNDF SchwabFundIntlSmCo FNDC SchwabIntEquity SCHF SchwabIntlSC SCHC SchwabUS BrdMkt SCHB SchwabUS LC SCHX SchwabUS LC Grw SCHG SchwabUS LC Val SCHV SchwabUS MC SCHM SchwabUS SC SCHA SPDR DJIA Tr DIA SPDR MSCI exUS CWI SPDREmMktSmlCp EWX SPDR SP China GXC SPDR SP EmAsPac GMF SPDR IntlSC GWX SPDR S&P exUS GWL TechSelectSector XLK UBS FIEnhGlbHY FIHD UBS FIEnhLCGrw FBGX VanEckAfrica AFK VanEckAgribus MOO VanEckFallAnglHYBd ANGL VanEckGlbAltEn GEX VanEckGlblSpinoff SPUN VanEckIntlHYBd IHY VanEckMornIntlMoat MOTI VanEckOilRefin CRAK VanEckPoland PLND VangdInfoTech VGT VangdSC Grwth VBK VangdAWxUSSC VSS VangdFTSEDevMk VEA VangdFTSE EM VWO VangdFTSE Pac VPL VangdFTSEAWxUS VEU VangdGrowth VUG VangdLC VV VangdMegaCap MGC VangdMegaGrwth MGK 165.24 110.31 64.75 147.89 29.04 24.94 57.57 27.19 92.69 41.81 89.04 47.97 111.04 22.95 22.77 40.28 28.15 45.80 44.06 48.57 29.63 91.73 57.62 30.64 46.67 25.66 24.96 34.02 82.43 167.28 122.96 147.04 66.75 56.79 109.52 141.47 63.09 18.67 160.20 153.82 145.16 124.34 42.57 55.29 33.79 37.54 55.32 59.03 57.56 28.41 28.73 62.85 29.36 23.99 16.93 58.70 37.63 58.13 43.14 21.15 24.79 29.27 41.92 30.37 24.84 31.08 33.18 105.71 43.87 93.43 101.54 17.01 69.82 109.08 119.21 80.89 63.92 63.63 31.69 26.16 51.36 37.46 34.43 59.43 69.97 60.86 73.54 84.95 66.23 77.04 105.35 222.50 51.77 31.43 57.05 95.65 65.17 68.55 36.39 26.35 28.23 28.90 33.76 32.73 34.83 60.00 59.23 65.31 51.09 49.50 65.80 217.16 36.95 48.51 96.32 96.61 34.38 29.97 57.82 154.72 189.39 23.36 56.77 29.97 61.94 23.50 25.50 34.82 24.83 19.57 149.22 150.28 112.34 42.59 43.02 67.58 51.85 131.45 113.81 84.99 103.73 ... -0.4 -1.2 0.1 0.5 0.4 0.3 1.1 ... 0.9 0.1 0.9 0.3 1.1 1.2 0.6 0.1 1.1 0.8 0.5 0.7 -0.1 0.9 0.9 0.7 2.1 0.8 0.6 0.2 -0.1 0.2 -0.1 0.2 0.1 0.1 0.1 0.2 0.2 -0.5 0.2 0.6 -0.1 1.0 -0.4 -0.2 -0.2 0.8 0.3 0.6 1.0 0.2 -0.5 0.3 0.2 0.1 ... 0.5 0.9 0.5 0.8 1.1 -0.4 0.8 0.2 0.7 -0.3 0.6 ... 0.5 -0.1 0.8 1.2 1.9 -0.8 0.7 1.6 0.6 1.7 0.5 0.1 0.5 0.1 0.9 1.0 -0.3 0.7 ... 0.5 1.8 0.2 0.1 -0.6 -0.3 0.8 0.3 -0.6 -0.1 -0.1 0.5 0.8 0.8 0.5 0.4 0.6 0.7 -0.1 0.1 0.2 -0.2 -0.4 -0.5 0.4 0.7 0.7 0.9 0.8 0.5 0.6 0.4 1.1 0.3 1.6 ... 0.4 ... 0.9 0.4 0.6 1.0 2.3 0.2 -0.2 0.7 0.6 0.7 0.5 0.5 0.3 ... ... 0.3 Net Sym Close Chg ChinaSoAirlines ZNH 39.03 ChinaTelecom CHA 48.09 ChinaUnicom CHU 14.75 Chipotle CMG340.60 Chubb CB 143.90 ChunghwaTelecom CHT 34.38 Church&Dwight CHD 53.67 Cigna CI 173.57 CimarexEnergy XEC 96.75 Citigroup C 67.98 CitizensFin CFG 35.17 Clorox CLX 133.43 Coach COH 47.89 Coca-Cola KO 45.74 s Coca-Cola Euro CCE 43.09 Coca-Cola Femsa KOF 88.33 Colgate-Palmolive CL 73.00 ColonyNorthStar CLNS 14.66 Comerica CMA 72.53 SABESP SBS 10.93 ConagraBrands CAG 33.83 ConchoRscs CXO 132.06 ConocoPhillips COP 43.70 ConEd ED 82.11 ConstBrands A STZ 193.38 ContinentalRscs CLR 33.12 Cooper COO 247.01 Corning GLW 30.42 Coty COTY 19.81 Credicorp BAP 187.38 CreditSuisse CS 15.35 CrestwoodEquity CEQP 24.75 CrownCastle CCI 99.56 CrownHoldings CCK 59.23 Cullen/Frost CFR 96.51 Cummins CMI 165.97 DTE Energy DTE 107.38 DXC Tech DXC 80.06 Danaher DHR 82.01 Darden DRI 85.83 DaVita DVA 64.89 Deere DE 127.82 DellTechnologies DVMT 64.02 DelphiAutomotive DLPH 90.67 DeltaAir DAL 51.13 DeutscheBank DB 19.06 DevonEnergy DVN 32.99 Diageo DEO 120.61 DigitalRealty DLR 113.32 DiscoverFinSvcs DFS 63.13 Disney DIS 106.94 DollarGeneral DG 74.60 DominionEner D 77.05 Domino's DPZ 186.43 Donaldson DCI 46.99 DouglasEmmett DEI 37.75 Dover DOV 83.36 DowChemical DOW 66.42 DrPepperSnap DPS 92.15 DrReddy'sLab RDY 41.67 DuPont DD 84.81 DukeEnergy DUK 84.45 DukeRealty DRE 28.42 ENI E 31.05 EOG Rscs EOG 94.75 EQT EQT 63.97 EQT Midstream EQM 76.18 EastmanChem EMN 85.05 Eaton ETN 79.00 EatonVance EV 49.15 Ecolab ECL 132.45 Ecopetrol EC 9.19 EdisonInt EIX 78.91 EdwardsLife EW 115.61 EmersonElectric EMR 59.80 EnbridgeEnPtrs EEP 16.05 Enbridge ENB 41.73 Encana ECA 10.02 EnelAmericas ENIA 10.58 EnelChile ENIC 5.66 EnelGenChile EOCC 23.71 EnergyTrfrEquity ETE 17.80 EnergyTransfer ETP 20.22 Stock The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. 52-Wk % Sym Hi/Lo Chg Stock Stock 0.65 0.33 0.02 -8.02 -3.46 0.07 0.34 -0.24 -0.69 -0.05 -0.68 0.56 -0.63 0.50 0.43 2.07 0.95 -0.04 -1.60 0.18 -0.33 0.36 0.05 0.60 -0.29 0.25 -3.82 -1.71 0.28 2.03 -0.01 -0.10 0.06 0.04 -1.49 -1.73 1.08 ... 0.02 -1.02 -0.48 -0.08 0.31 -0.26 -0.01 0.02 0.01 1.22 0.88 -0.66 0.52 1.03 0.26 -5.97 -0.66 -0.12 -0.92 -0.43 0.26 -0.09 -0.68 0.64 0.69 0.33 -0.12 -0.09 -0.11 -1.07 -0.33 -0.68 -0.45 -0.06 0.52 -0.26 -0.63 -0.08 0.04 -0.33 0.15 ... -0.21 -0.09 ... Stock Net Sym Close Chg EnLinkMidPtrs ENLK 17.10 Entergy ETR 75.64 EnterpriseProd EPD 27.60 EnvisionHlthcr EVHC 58.15 s Equifax EFX 146.21 EquityLife ELS 87.11 EquityResdntl EQR 67.36 EssexProp ESS 267.14 s EsteeLauder EL 98.92 EverestRe RE 260.02 EversourceEner ES 60.94 Exelon EXC 37.68 ExtraSpaceSt EXR 80.30 ExxonMobil XOM 80.37 s FMC FMC 77.00 FactSet FDS 165.47 FederalRealty FRT 132.70 FedEx FDX 213.63 FiatChrysler FCAU 11.90 FibriaCelulose FBR 10.41 FidelityNatlFin FNF 47.42 s FNFV Group FNFV 16.75 s FidelityNtlInfo FIS 90.69 58.com WUBA 50.63 FirstData FDC 19.04 FirstRepBank FRC 100.29 FirstEnergy FE 31.10 FleetCorTech FLT 153.75 Flowserve FLS 46.64 Fluor FLR 45.36 FomentoEconMex FMX 101.03 FootLocker FL 46.10 FordMotor F 11.06 ForestCIty A FCE/A 24.88 s Fortis FTS 35.77 Fortive FTV 62.18 FortBrandsHome FBHS 65.91 Franco-Nevada FNV 73.12 s FranklinRscs BEN 47.22 Freeport-McMoRan FCX 15.06 FreseniusMed FMS 47.55 GGP GGP 23.75 Gallagher AJG 58.67 Gap GPS 23.96 s Gartner IT 129.53 Gazit-Globe GZT 9.65 GeneralDynamics GD 194.66 GeneralElec GE 25.59 GeneralMills GIS 55.13 GeneralMotors GM 35.62 GenuineParts GPC 82.81 Gerdau GGB 3.32 Gildan GIL 30.72 GlaxoSmithKline GSK 40.85 GlobalPayments GPN 95.30 GoDaddy GDDY 43.79 Goldcorp GG 13.79 GoldmanSachs GS 222.25 Graco GGG 105.91 Grainger GWW 166.18 GreatPlainsEner GXP 30.42 GpoAeroportuar PAC 116.51 GpoAeroportSur ASR 219.10 GpoAvalAcciones AVAL 8.71 GpFinSantandMex BSMX 10.45 GrupoTelevisa TV 26.92 HCA Healthcare HCA 81.63 HCP HCP 31.99 s HDFC Bank HDB 96.32 HP HPQ 19.26 HSBC HSBC 49.36 Halliburton HAL 43.32 Hanesbrands HBI 23.39 HarleyDavidson HOG 48.64 Harris HRS 115.23 HartfordFinl HIG 53.22 HealthcareAmer HTA 30.33 Heico HEI 80.12 s Heico A HEI/A 70.45 Helmerich&Payne HP 55.07 Herbalife HLF 68.01 Hershey HSY 106.00 Hess HES 43.47 52-Wk % Sym Hi/Lo Chg Stock -0.06 0.22 0.02 -0.73 1.41 0.82 1.29 5.69 0.17 -6.71 0.46 0.66 0.82 0.10 -0.99 -1.27 0.57 -0.74 0.18 0.02 0.41 0.20 0.99 0.24 ... -1.85 0.23 3.25 -0.61 -0.32 0.53 0.35 -0.21 0.11 0.28 -0.89 -0.02 2.37 -0.06 0.19 -0.18 0.29 -0.43 -0.01 1.06 0.02 -8.90 0.15 0.01 0.05 -0.51 -0.14 0.27 -1.11 0.29 0.24 0.37 0.67 -1.86 -2.88 0.21 0.10 0.73 0.03 0.01 0.42 -0.55 0.29 1.46 -0.15 0.14 0.63 -0.18 0.50 0.26 -0.72 0.11 -0.14 0.35 -1.09 -1.24 -1.44 -1.90 52-Wk % Sym Hi/Lo Chg VangdMCGrowth VOT 120.85 ... GalmedPharm GLMD 8.60 5.8 VangdS&P600Grwth VIOG 137.29 -0.4 GemphireTherap GEMP 19.50 4.2 19.85 0.6 FINX 127.60 -0.1 GlbXFinTech VangdTotalStk VTI 69.54 0.3 GlbXMSCISuperDiv EFAS 18.26 1.1 VangdTotlWrld VT VelocityShVIXShrt XIVH 61.79 0.7 GlbXMillThematic MILN 18.16 0.4 WisdTrAPxJp AXJL 68.17 0.8 GlbX Robotics&AI BOTZ 19.72 0.6 YLCO 12.53 0.4 WisdTrEMxSOE XSOE 28.80 1.0 GlbX Yieldco 2.88 2.5 GLUU 43.00 0.9 GluMobile WisdTrEM HiDiv DEM 47.88 0.6 GreenBancorp GNBC 21.00 0.5 WisdTrEM SC DGS 15.65 0.3 67.05 0.7 HamiltonBancorp HBK WisdTrEuropeSC DFE 29.25 1.0 WisdTrGlbxUSDiv DXUS 25.64 0.6 HealthInsInnov HIIQ 18.55 14.0 WisdTrGlbHiDiv DEW 46.36 0.8 HeritageCrystal HCCI HFWA 27.40 1.7 26.46 0.8 HeritageFin WisdTrIndiaEarn EPI 65.62 0.7 IPG Photonics IPGP 158.61 0.2 WisdTrIntlMC Div DIM 72.09 0.5 IQ Chaikin US SC CSML 26.22 -0.7 WisdTrIntlSC DLS PODD 53.90 -0.5 87.81 0.2 Insulet WisdTrUSTotalEarn EXT 27.09 0.3 IntegratedDevice IDTI IntlMultiAssetDiv YDIV 18.69 1.6 iRobot IRBT 109.40 21.1 20.99 -0.7 iShCoreMSCITotInt IXUS PathS&P500VIXMT VXZ 59.55 0.5 10.91 0.4 iShFallAngelsUSDBd FALN 27.62 0.1 iPathS&P500VIXST VXX 14.75 -1.5 iShIndia50ETF INDY DirexDevMktBear3 DPK 35.77 1.0 11.89 -2.5 iShMSCIACWIETF ACWI 67.47 0.3 DirexEM Bear3 EDZ DirexEuroFinBr1 EUFS 15.35 -10.0 iShMSCIACWIexUSETF ACWX 47.31 0.6 8.56 -2.8 iShMSCIACxJpn AAXJ 71.25 0.6 DirexChinaBr3 YANG 15.59 0.8 iShMSCIChinaETF MCHI 59.06 1.0 DirexFinlBear3 FAZ DirexS&P500Br1 SPDN 33.15 ... iShMSCIEAFESC SCZ 59.67 0.6 9.76 -1.2 iShMSCIEMESGOpt ESGE 68.15 0.6 DirexTechBear3 TECS 24.18 -0.6 iShMSCIEuropeFinls EUFN 23.24 0.6 PwrShDB USDBull UUP 17.11 -0.4 iShMSCIEuropeSmCp IEUS ProShShtDow30 DOG 53.91 0.9 ProShShortEuro EUFX 40.58 -0.8 iShMSCIUSAESGOpt ESGU 54.22 0.8 21.59 -0.9 JD.com ProShShXinhuaCh25 YXI 46.85 3.2 JD 23.25 -0.2 JackHenry ProShShortHY SJB JKHY 107.14 0.2 26.98 -0.6 JohnsonOutdoors JOUT 50.65 1.3 ProShShMSCI EAFE EFZ 19.57 -0.8 LPL Financial LPLA ProShShtMSCI EM EUM 46.62 ... 38.37 -0.3 LamResearch LRCX 168.44 2.4 ProShShortQQQ PSQ 36.70 -0.2 Lantheus ProShShrtSC600 SBB LNTH 19.50 -0.8 ProShUltVIXST UVXY 28.20 0.2 LeggMasonDev DDBI 28.75 0.6 ProShUltShtDow30 SDOW 29.54 -1.3 LeggMasonEMDivCore EDBI 31.44 ... ProShUltShtAUD CROC 44.11 -1.3 LibertyExpediaA LEXEA 57.34 2.5 11.45 -0.8 Lumentum ProShUltShDow30 DXD 68.63 -3.1 LITE 21.89 -1.3 Macom Tech ProShUltShEuro EUO MTSI 65.99 0.9 34.50 -1.6 MGE Energy ProShrUltShFTSEEur EPV MGEE 68.70 -0.4 21.72 -1.9 MGPIngredients MGPI 60.62 -0.2 ProShXinhuaChina25 FXP 25.12 0.8 MainSourceFncl MSFG 37.20 3.6 ProShrUSFnl SKF 14.95 -1.7 Microsoft ProShUltMSCI Mex SMK MSFT 74.38 -0.2 21.31 1.1 MitekSystems MITK 10.75 2.4 ProShUltMC400 MZZ 10.00 -1.7 MonarchCasino MCRI 34.59 12.6 ProShrUS MSCI EM EEV 15.68 -0.6 MonolithicPower MPWR 107.87 1.8 ProShUltShtQQQ QID 18.51 -2.9 Nasdaq ProShrUlShtSmC600 SDD NDAQ 74.53 2.4 ProShsVIXMTFut VIXM 25.45 -0.5 NatlResearch B NRCIB 51.85 1.7 ProShsVIXSTFut VIXY 36.30 0.2 NeuroDerm NDRM 38.85 0.5 NWFL 44.37 ... WisdTrUSDBull USDU 25.64 -0.7 NorwoodFin 63.60 2.1 Nutrisystem NTRI NVIDIA NVDA 169.93 1.2 Orbcomm ORBC 11.85 1.5 7.60 0.4 PacificSpecialRt PAACR 0.60 ... AberdChileFd CH 25.98 -0.1 PetMedExpress PETS 50.65 5.1 CentralSecs CET 11.18 -0.3 PwrShBuybackAch PKW CloughGlblOpp GLO 54.82 0.4 15.75 1.4 PwrShDWA EM PIE DE CO MuniFd VCF 18.33 0.9 9.39 0.3 PwrShDWA Mom PDP EllsworthGrw&Incm ECF 48.65 0.1 HillmanGroupPfd HLMp 35.05 0.4 PwrShDWANasdMom DWAQ 95.10 0.2 9.03 5.1 PwrShDWASCMom DWAS 44.68 -0.1 inTEST INTT MastechDigital MHH 10.10 12.6 PwrShDynConDis PEZ 46.46 0.3 6.12 11.0 PwrShDynIndls PRN MexcoEnergy MXC 56.32 0.6 1.14 13.3 PwrShDynTech PTF TrilogyMetals TMQ 50.40 0.6 PwrShGoldDragon PGJ 42.00 1.6 PwrShIntlBuyBack IPKW 33.59 0.7 PwrShNasdInternet PNQI 112.46 0.6 0.30 -5.1 PwrShQQQ 1 AmericanLorain ALN QQQ 144.95 0.3 1.24 ... Priceline AsankoGold AKG PCLN 2037.00 0.8 0.38 -6.4 ProShUltPrQQQ TQQQ 113.98 0.9 Banro BAA Qualstar QBAK 13.20 -8.8 40.10 1.3 RealPage RP 12.75 5.8 RELV ASBBancorp ASBB 46.00 1.0 RelivIntl 116.01 0.8 Ryanair RYAAY ASML ASML 154.70 1.2 57.48 -1.1 62.64 2.8 SEI Investments SEIC ActivisionBliz ATVI 19.27 17.1 AdvMicroDevices AMD 15.65 4.6 SMART Global SGH 84.56 3.2 AirTransportSvcs ATSG 25.11 2.5 ScrippsNetworks SNI SMTC 41.08 1.4 AlliedMotionTech AMOT 30.31 0.2 Semtech 8.35 3.6 Sigmatron SGMA 1.2 Amazon.com AMZN1053.20 56.75 1.2 SILC 67.48 1.6 Silicom Amdocs DOX 16.15 -0.9 AmplifyOnlineRet IBUY 37.68 1.8 SimulationsPlus SLP 9.55 5.4 StarBulkNts2019 SBLKL 25.20 0.4 AmtechSystems ASYS 20.90 6.0 AppliedOptoelec AAOI 99.98 2.0 StateNational SNC Synopsys SNPS 77.25 0.4 ArchCapital ACGL 99.47 -0.1 24.31 -1.1 SyrosPharm SYRS ArrowInvDWATact DWAT 11.19 0.4 TICCCapNts24 TICCL 26.07 0.2 Atlassian TEAM 38.99 2.2 TRowePrice TROW 85.42 1.3 106.06 2.7 ADP ADP TakeTwoSoftware TTWO 81.49 0.8 AveXis AVXS 91.43 2.7 BldrsAsia50ADS ADRA 32.54 1.0 TimberlandBncp TSBK 27.20 4.0 Trimble TRMB 39.00 -1.1 BOK Fin BOKF 88.80 -3.0 Trupanion TRUP 24.19 -0.2 Baidu BIDU 201.23 2.1 2U TWOU 51.36 2.1 BioTelemetry BEAT 35.75 -0.7 5.90 1.8 USA Tech USAT Blackbaud BLKB 93.03 0.2 UltimateSoftware ULTI 233.42 -1.4 BldrsEmg50 ADRE 41.43 1.3 UplandSoftware UPLD 25.56 ... 258.19 1.1 Broadcom AVGO VangdGlblxUS RE VNQI 58.20 0.6 2.67 1.5 BroadwayFin BYFC 63.44 0.4 VangdIntlDivApp VIGI CBOE Holdings CBOE 94.59 0.7 VangdIntlHiDiv VYMI 64.84 0.5 CadenceDesign CDNS 37.50 1.5 VangdRuss1000 VONE 113.95 ... 8.84 0.2 CalamsGlblDynInc CHW VangdRuss1000Grw VONG 126.05 0.2 12.00 0.1 CalamosStratTot CSQ VangdTotIntlStk VXUS 53.89 0.5 CallidusSoftware CALD 25.30 2.5 96.91 -0.2 VSInverseVIXSTerm XIV Changyou.com CYOU 42.21 2.9 VeriSign VRSN 101.85 0.8 ClearBr AC Grw CACG 26.17 -0.1 33.35 0.6 VicShDevEnhVol CIZ CognizantTech CTSH 70.45 0.1 29.24 0.8 VicShEMVolWtd CEZ CommerceHub A CHUBA 18.78 1.6 35.65 0.8 VicShIntlHiDivVol CID CoStarGroup CSGP 283.45 -0.2 38.28 0.2 VicShIntlVolWtd CIL CryoPortWt CYRXW 3.46 13.3 VidentIntlEquityFd VIDI 26.81 0.5 7.18 7.9 CryoPort CYRX WebMD WBMD 66.17 0.1 Ctrip.com CTRP 60.11 3.2 WisdTrChinaxSOE CXSE 72.57 1.6 9.94 -0.4 DataIO DAIO WolverineBancorp WBKC 41.12 0.6 Datawatch DWCH 11.55 2.7 73.94 -2.6 YY YY DavisWorldwide DWLD 23.70 0.6 Descartes DSGX 25.50 1.8 EXACT Sci EXAS 42.18 6.2 118.11 3.8 AkamaiTech ElectronicArts EA AKAM 45.41 -14.6 ePlus PLUS 81.40 -0.2 AmerSupercond AMSC 3.33 -2.3 EuronetWorldwide EEFT 94.39 1.5 AntheraPharm ANTH 1.46 -2.6 Expedia EXPE 158.00 1.5 ArgosTherap 0.28 5.0 ARGS ExpeditorsIntl EXPD 59.90 0.1 BCommunications BCOM 13.87 -1.3 13.11 1.0 BedBath Ferroglobe GSM BBBY 27.99 3.3 FibroGen FGEN 35.85 0.9 Celsion 1.77 -1.1 CLSN 51job JOBS 48.74 -0.1 Cheesecake CAKE 48.65 -2.9 FirstBancorpNC FBNC 32.99 1.1 CoffeeHolding JVA 4.15 0.7 FirstFoundation FFWM 17.90 3.8 DianaContainer DCIX 0.19 -58.5 FirstSouthBancorp FSBK 17.45 ... Dryships 1.02 -26.2 DRYS 34.49 1.1 EasterlyAcqn EACQ FT APxJapan FPA 9.25 ... 28.12 0.9 FT BICK BICK Essendant ESND 13.11 -3.0 25.83 1.2 FORM FT ChinaAlphaDEX FCA 1.11 -15.4 FH 57.71 0.9 FiestaRestaurant FRGI FT DevMkts FDT 17.40 -2.2 23.93 -0.1 ForesightAuto FRSX FT DorseyDyn5 FVC 7.72 -4.8 25.72 -0.2 GSV Capital FT DorseyFoc5 FV 4.03 -1.2 GSVC 20.88 1.2 HawaiianHoldings HA FT DorseyIntl5 IFV 39.45 -5.2 25.52 1.4 InternetGold FT EM Alphadex FEM 5.86 -9.6 IGLD FT EuropeAlpha FEP 36.31 1.1 JounceTherap JNCE 12.61 -2.4 FT GerAlpha 45.04 1.7 Lands'End FGM 13.15 0.4 LE 33.43 0.7 MagneGas FT Intl IPO FPXI MNGA 0.62 -6.7 30.94 0.2 NabrivaTherap NBRV FT MegaCap FMK 9.82 -1.0 61.07 -0.8 NatlSecurity FT MC CoreAlpha FNX NSEC 13.11 -0.7 FT NasdClEdSmGr GRID 45.86 -0.1 OrionEnergySys OESX 1.00 -1.0 FT Nasd100xTech QQXT 47.54 0.3 OvidTherap 8.78 0.2 OVID FT Nasd100 EW QQEW 55.38 0.4 PhaseRx 0.72 -3.9 PZRX FT RiverFrDynAP RFAP 58.08 0.5 ProShUltraProShQQQ SQQQ 27.49 -0.9 62.24 0.7 Radisys FT RiverFrDynDev RFDI 2.43 -0.8 RSYS FT RiverFrDynEM RFEM 66.72 0.6 SG Blocks 3.80 -10.1 SGBX FT RiverFrDynEur RFEU 63.55 0.8 Senomyx 0.76 -2.7 SNMX 57.16 -0.6 SimplyGoodFoodsWt SMPLW 2.24 -8.6 FT SC CoreAlpha FYX 39.78 -0.3 VS2xVIXMedTerm TVIZ FT SC GrwthAlpha FYC 13.29 -1.2 66.62 3.8 VS2xVIXShortTerm TVIX FirstService 15.44 0.4 FSV FlexSTOXXGlbESGImp ESGG 88.25 0.2 VSVIXShortTerm VIIX 18.45 0.2 NYSE Arca lows - 34 NYSE American highs - 10 NYSE American lows - 3 Nasdaq highs - 191 Nasdaq lows - 35 Stock Net Sym Close Chg HewlettPackard HPE 17.61 Hilton HLT 62.52 HomeDepot HD 146.69 HondaMotor HMC 27.60 s Honeywell HON 138.49 HormelFoods HRL 34.01 DR Horton DHI 36.29 HostHotels HST 18.02 HuanengPower HNP 28.25 Hubbell HUBB 118.35 Humana HUM 233.50 HuntingtonIngalls HII 203.49 Huntsman HUN 27.42 HyattHotels H 54.62 s ICICI Bank IBN 9.72 s ING Groep ING 18.43 Invesco IVZ 36.44 s IDEX IEX 117.04 IllinoisToolWks ITW 140.07 Infosys INFY 15.91 Ingersoll-Rand IR 86.94 Ingredion INGR 123.10 ICE ICE 66.34 InterContinentl IHG 57.06 t IBM IBM 145.36 IntlFlavors IFF 133.38 IntlPaper IP 56.39 t Interpublic IPG 21.44 InvitationHomes INVH 21.43 IronMountain IRM 34.96 IsraelChemicals ICL 4.74 ItauUnibanco ITUB 11.72 JPMorganChase JPM 91.93 Jabil JBL 31.07 JacobsEngineering JEC 52.80 JamesHardie JHX 15.83 JanusHenderson JHG 34.00 J&J JNJ 130.95 JohnsonControls JCI 43.32 JonesLangLaSalle JLL 128.73 JuniperNetworks JNPR 28.06 KAR Auction KAR 42.24 s KB Fin KB 54.25 KKR KKR 19.31 s KT KT 18.17 KSCitySouthern KSU 104.20 Kellogg K 67.31 KeyCorp KEY 18.03 s KeysightTechs KEYS 42.53 KilroyRealty KRC 72.09 KimberlyClark KMB 122.24 KimcoRealty KIM 19.74 KinderMorgan KMI 20.34 KinrossGold KGC 4.27 Kohl's KSS 40.25 KoninklijkePhil PHG 38.11 KoreaElcPwr KEP 20.28 Kroger KR 23.72 Kyocera KYO 57.71 LATAMAirlines LTM 11.97 L Brands LB 45.01 LG Display LPL 14.27 LINE LN 34.20 L3 Tech LLL 175.52 s LabCpAm LH 161.17 LambWeston LW 44.28 LasVegasSands LVS 61.65 Lazard LAZ 47.91 Lear LEA 150.61 Leggett&Platt LEG 51.83 Leidos LDOS 53.48 Lennar A LEN 52.75 Lennar B LEN/B 44.91 LennoxIntl LII 169.92 LeucadiaNatl LUK 26.82 Level3Comm LVLT 58.08 LibertyProperty LPT 41.98 EliLilly LLY 81.84 LincolnNational LNC 71.51 s LionsGate A LGF/A 29.63 s LionsGate B LGF/B 27.70 LiveNationEnt LYV 36.70 LloydsBanking LYG 3.65 LockheedMartin LMT 289.85 Loews L 48.12 Lowe's LOW 75.98 LyondellBasell LYB 87.34 M&T Bank MTB 157.98 MGM Resorts MGM 33.87 MPLX MPLX 36.24 s MSCI MSCI 110.35 Macerich MAC 60.35 MacquarieInfr MIC 75.74 Macy's M 23.54 MagellanMid MMP 70.62 MagnaIntl MGA 48.34 Manpower MAN 105.21 ManulifeFin MFC 20.37 MarathonOil MRO 12.18 MarathonPetrol MPC 55.66 s Markel MKL 1023.34 Marsh&McLennan MMC 80.22 MartinMarietta MLM 227.55 Masco MAS 37.64 s Mastercard MA 130.99 McCormick MKC 94.70 McCormickVtg MKC/V 95.00 McDonalds MCD 156.51 McKesson MCK 166.35 Medtronic MDT 85.74 Merck MRK 61.80 MetLife MET 54.73 MettlerToledo MTD 597.85 MidAmApt MAA 102.24 MitsubishiUFJ MTU 6.34 MizuhoFin MFG 3.56 MobileTeleSys MBT 8.64 Mobileye MBLY 63.35 MohawkIndustries MHK 240.13 MolsonCoors B TAP 89.04 Monsanto MON 117.30 Moody's MCO 133.28 MorganStanley MS 47.21 Mosaic MOS 23.60 s MotorolaSolutions MSI 91.84 NRG Energy NRG 24.67 NTTDoCoMo DCM 23.23 s NVR NVR 2678.94 NationalGrid NGG 62.71 NatlOilwell NOV 33.34 NatlRetailProp NNN 40.55 s NewOrientalEduc EDU 82.87 -0.27 -0.56 -0.28 ... 1.24 -0.10 -0.71 -0.42 0.24 -2.30 -1.41 -0.13 -0.15 -0.62 0.18 0.13 -0.09 3.90 -1.58 0.10 -3.53 0.48 -0.04 0.30 -0.83 0.40 -0.51 -0.72 -0.21 0.10 -0.03 0.04 -0.87 -0.03 -0.19 0.29 -0.37 -0.93 -0.86 -4.14 -1.90 0.30 0.57 -0.15 0.11 -0.15 -0.26 -0.45 -0.30 -0.66 -2.44 0.07 0.09 0.16 0.28 0.13 0.11 0.04 0.98 0.03 -0.42 -0.22 -0.72 -1.79 4.24 -1.40 -0.97 0.02 4.64 -1.97 -0.41 -0.44 -0.55 -2.04 -0.27 -0.07 0.64 -0.35 -0.83 0.10 0.08 0.07 0.01 0.02 -0.36 0.29 -0.61 -3.52 -0.40 -0.01 0.09 1.11 -0.57 0.05 -0.39 0.32 -3.02 -0.27 -0.16 -0.36 -3.80 -0.34 -0.55 -0.10 1.01 -0.11 0.33 -2.56 -1.28 -0.19 -0.56 -0.97 -3.05 0.83 -0.03 -0.01 0.16 0.05 -1.14 0.46 -0.24 0.53 -0.40 -0.62 0.45 -0.34 0.01 5.43 0.91 -0.24 0.28 2.17 Stock Net Sym Close Chg NY CmntyBcp NYCB 12.77 NewellBrands NWL 52.75 NewfieldExpln NFX 27.99 NewmontMining NEM 36.96 s NextEraEnergy NEE 145.49 NielsenHoldings NLSN 39.89 Nike NKE 58.36 NiSource NI 26.51 NobleEnergy NBL 28.64 Nokia NOK 6.17 NomuraHoldings NMR 5.96 Nordstrom JWN 47.86 NorfolkSouthern NSC 116.41 NorthropGrumman NOC 263.86 Novartis NVS 84.85 NovoNordisk NVO 41.99 Nucor NUE 58.12 NuSTAREnergy NS 46.01 OGE Energy OGE 35.62 ONEOK OKE 55.59 OccidentalPetrol OXY 61.59 Och-Ziff OZM 3.06 OmegaHealthcare OHI 33.45 Omnicom OMC 78.83 Oracle ORCL 51.17 Orange ORAN 16.84 OrbitalATK OA 102.92 Orix IX 78.78 s OwensCorning OC 68.06 PG&E PCG 67.90 PLDT PHI 34.05 PNC Fin PNC 127.36 s POSCO PKX 74.08 PPG Ind PPG 106.75 PPL PPL 38.09 PVH PVH 118.41 PackagingCpAm PKG 108.80 PaloAltoNtwks PANW 138.73 ParkHotels PK 26.69 ParkerHannifin PH 164.66 ParsleyEnergy PE 29.59 Pearson PSO 8.38 PembinaPipeline PBA 34.60 Pentair PNR 62.37 PepsiCo PEP 117.19 PerkinElmer PKI 66.09 Perrigo PRGO 76.24 PetroChina PTR 65.30 PetroleoBrasil PBR 8.63 PetroleoBrasilA PBR/A 8.28 Pfizer PFE 32.89 PhilipMorris PM 117.65 Phillips66 PSX 83.70 PinnacleFoods PF 61.80 PinnacleWest PNW 86.89 PioneerNatRscs PXD 162.60 PlainsAllAmPipe PAA 26.74 PlainsGP PAGP 27.53 PolarisIndustries PII 89.99 Potash POT 17.70 Praxair PX 135.03 PrincipalFin PFG 66.66 Procter&Gamble PG 89.30 Progressive PGR 46.51 s Prologis PLD 61.14 PrudentialFin PRU 112.19 s Prudential PUK 47.95 PublicServiceEnt PEG 44.29 PublicStorage PSA 210.06 PulteGroup PHM 24.29 QuestDiag DGX 108.22 QuintilesIMS Q 91.70 RELX RENX 20.71 RELX RELX 21.79 RPM RPM 52.63 RalphLauren RL 74.66 s RaymondJames RJF 85.37 Raytheon RTN 168.88 RealtyIncome O 57.92 RedHat RHT 100.67 RegencyCtrs REG 65.67 RegionsFin RF 14.45 s ReinsuranceGrp RGA 134.18 RelianceSteel RS 73.90 s RenaissanceRe RNR 147.45 RepublicServices RSG 64.80 ResMed RMD 77.66 RestaurantBrands QSR 61.49 RiceEnergy RICE 27.78 RioTinto RIO 46.02 RobertHalf RHI 44.24 Rockwell ROK 162.78 RockwellCollins COL 109.55 RogersComm B RCI 52.02 s Rollins ROL 43.49 RoperTech ROP 233.76 RoyalBkCanada RY 74.89 RoyalBkScotland RBS 6.70 RoyalCaribbean RCL 114.45 RoyalDutchA RDS/A 54.52 RoyalDutchB RDS/B 55.53 SAP SAP 105.26 S&P Global SPGI 154.58 SINOPECShanghai SHI 56.46 SK Telecom SKM 27.02 SLGreenRealty SLG 101.84 Salesforce.com CRM 91.07 Sanofi SNY 48.02 Sasol SSL 29.56 Scana SCG 65.28 Schlumberger SLB 66.99 SchwabC SCHW 42.78 ScottsMiracleGro SMG 94.49 SealedAir SEE 45.06 SempraEnergy SRE 113.33 s SensataTech ST 45.81 ServiceCorp SCI 33.72 ServiceNow NOW 109.72 ShawComm B SJR 22.16 SherwinWilliams SHW 350.60 ShinhanFin SHG 47.63 Shopify SHOP 93.92 SimonProperty SPG 163.77 SmithAO AOS 54.19 Smith&Nephew SNN 34.56 Smucker SJM 120.71 t Snap SNAP 13.40 SnapOn SNA 150.04 s SOQUIMICH SQM 39.43 Sony SNE 40.80 Southern SO 47.40 s SoCopper SCCO 39.72 -0.55 -0.20 0.15 0.72 2.38 1.27 -1.03 0.49 -0.38 0.01 0.03 -0.23 -2.58 -0.19 0.65 -0.17 -2.80 -0.78 -0.03 -0.19 0.58 -0.05 0.22 -0.67 ... 0.21 -0.95 -0.44 3.97 0.39 0.14 -1.97 0.98 -0.36 0.12 -0.32 0.22 -0.73 -0.13 -1.32 0.07 0.10 -0.08 -0.90 0.74 -2.14 -0.04 2.22 -0.06 -0.05 -0.21 -0.17 -0.75 -0.20 0.79 ... -0.05 -0.07 -3.88 -0.29 -0.83 -0.50 0.16 -0.40 0.87 -1.33 0.48 0.43 2.34 -0.25 0.04 1.18 0.17 0.11 0.11 -0.32 0.38 -0.71 0.49 0.75 0.78 -0.11 -1.91 -2.31 1.37 -0.18 -0.02 -0.28 0.19 0.09 -3.56 -0.32 -0.18 0.03 1.88 0.34 -0.21 0.07 -0.47 0.15 0.27 1.39 -0.57 0.42 -0.38 -0.18 0.44 -0.05 -0.12 0.72 -0.02 -0.17 -1.78 -0.14 0.57 -0.89 -0.53 1.94 0.02 -1.62 0.24 1.76 2.20 -0.82 0.18 -0.31 -0.49 0.10 0.39 0.62 0.62 0.37 Net Sym Close Chg Stock SouthwestAirlines LUV 59.52 0.70 SpectraEnerPtrs SEP 45.29 -0.26 SpectrumBrands SPB 122.97 -1.00 SpiritAeroSys SPR 60.61 -0.22 Sprint S 8.55 -0.15 s Square SQ 27.31 0.42 StanleyBlackDck SWK 140.28 -1.97 StarwoodProp STWD 21.85 -0.01 s StateStreet STT 94.28 1.74 Statoil STO 17.87 0.16 Steris STE 82.50 -0.63 STMicroelec STM 17.05 0.36 Stryker SYK 145.75 -0.31 SumitomoMits SMFG 7.59 -0.03 SunCommunities SUI 88.33 0.54 SunLifeFinancial SLF 38.23 -0.25 SuncorEnergy SU 31.40 0.22 SunTrustBanks STI 56.73 -0.68 SynchronyFin SYF 30.57 -0.32 Syngenta SYT 92.20 -0.01 Sysco SYY 52.11 0.14 TAL Education TAL 149.20 4.72 s TE Connectivity TEL 80.65 -2.57 s Telus TU 36.09 0.05 Ternium TX 30.45 -0.77 s TIM Part TSU 16.88 0.50 TJX TJX 68.47 -0.23 TaiwanSemi TSM 36.22 0.12 TargaResources TRGP 46.25 -0.39 Target TGT 54.96 -0.14 TataMotors TTM 35.55 0.29 TechnipFMC FTI 27.74 0.18 TeckRscsB TECK 21.09 0.50 s TelecomItalia TI 10.14 0.06 TelecomItalia A TI/A 8.02 0.06 Teleflex TFX 212.03 -3.56 TelefonicaBras VIV 14.60 0.06 Telefonica TEF 10.98 0.10 TelekmIndonesia TLK 34.93 -0.18 Tenaris TS 31.78 -0.20 s Teradyne TER 36.80 0.70 Tesoro TSO 97.79 -0.01 TesoroLogistics TLLP 52.00 ... TevaPharm TEVA 33.04 0.28 Textron TXT 49.11 -0.18 ThermoFisherSci TMO175.06 -5.07 ThomsonReuters TRI 45.95 0.20 ThorIndustries THO 107.17 0.07 3M MMM 199.03 -0.36 Tiffany TIF 95.09 0.05 TimeWarner TWX 101.65 1.84 Toll Bros TOL 39.29 -0.50 Torchmark TMK 77.96 -0.83 Toro TTC 70.96 -0.56 TorontoDomBk TD 51.92 -0.06 Total TOT 50.39 0.57 s TotalSystem TSS 64.02 1.12 ToyotaMotor TM 110.77 0.64 TransCanada TRP 51.34 -0.15 TransDigm TDG 286.05 -1.55 s TransUnion TRU 45.53 0.29 Travelers TRV 126.00 -1.46 s TurkcellIletism TKC 9.00 0.11 TurquoiseHill TRQ 3.20 0.13 Twitter TWTR 19.61 -0.36 s TylerTech TYL 181.33 0.32 TysonFoods TSN 63.03 0.31 UBS Group UBS 18.11 -0.07 UDR UDR 39.19 0.51 UGI UGI 50.74 0.06 US Foods USFD 28.28 -0.04 UltraparPart UGP 23.20 -0.31 UnderArmour A UAA 19.65 -0.46 UnderArmour C UA 17.55 -0.57 s Unilever UN 58.30 0.53 s Unilever UL 57.08 0.43 UnionPacific UNP 104.42 -0.54 UnitedContinental UAL 70.24 0.76 UnitedMicro UMC 2.43 -0.13 UPS B UPS 112.29 -0.93 UnitedRentals URI 120.17 -1.01 US Bancorp USB 52.43 -0.74 US Steel X 26.20 1.76 UnitedTech UTX 119.54 -0.88 UnitedHealth UNH 190.75 0.35 UniversalHealthB UHS 112.88-10.02 UnumGroup UNM 48.23 -0.43 VEREIT VER 8.33 -0.02 VF VFC 60.87 -0.18 s Visa V 100.85 0.86 VailResorts MTN 212.75 2.88 Vale VALE 9.39 -0.18 ValeantPharm VRX 17.77 0.06 ValeroEnergy VLO 67.99 -0.45 Vantiv VNTV 64.57 -0.11 VarianMed VAR 102.59 -1.18 s Vedanta VEDL 17.63 0.16 VeevaSystems VEEV 65.05 0.12 Ventas VTR 68.08 0.18 Verizon VZ 44.40 0.42 Vipshop VIPS 12.00 0.28 VistraEnergy VST 16.51 -0.10 VMware VMW 92.36 -0.02 VornadoRealty VNO 78.06 -0.05 VoyaFinancial VOYA 38.26 -0.18 VulcanMaterials VMC 125.65 -1.45 WABCO WBC 137.07 -2.18 WEC Energy WEC 62.62 0.44 W.P.Carey WPC 67.91 0.19 Wabtec WAB 74.02 -4.46 Wal-Mart WMT 78.90 0.38 s WasteConnections WCN 66.00 1.25 s WasteMgt WM 74.66 -0.98 Waters WAT 172.58 -2.53 s Wayfair W 79.36 2.45 WellCareHealth WCG 180.04 -0.50 WellsFargo WFC 54.91 -0.15 Welltower HCN 73.29 0.28 WestPharmSvcs WST 92.67 -1.79 WestarEnergy WR 50.28 -0.03 WesternGasEquity WGP 42.04 0.14 WesternGasPtrs WES 52.70 -0.41 WesternUnion WU 19.48 ... WestlakeChem WLK 70.48 -0.52 WestpacBanking WBK 25.97 0.12 WestRock WRK 58.15 -0.68 Weyerhaeuser WY 33.92 -0.20 WheatonPrecMetals WPM 20.26 0.62 Whirlpool WHR 190.19 -0.76 Williams WMB 31.61 0.01 WilliamsPartners WPZ 41.00 -0.12 s Wipro WIT 6.16 0.04 Mutual Funds | WSJ.com/fundresearch Explanatory Notes Data provided by e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Wednesday, July 26, 2017 Net YTD Net YTD NAV Chg %Ret Fund TotRetBdN 10.72 +0.02 2.7 RisDv A p A American Century Inv 42.10 +0.11 Ultra American Funds Cl A 30.23 -0.02 AmcpA p AMutlA p 39.54 +0.03 26.70 +0.05 BalA p BondA p 12.96 +0.03 CapIBA p 62.27 +0.21 CapWGrA 50.62 +0.20 54.20 +0.37 EupacA p 60.88 +0.13 FdInvA p GwthA p 49.29 +0.09 10.51 +0.01 HI TrA p 39.77 +0.01 ICAA p 22.89 +0.04 IncoA p N PerA p 43.09 +0.20 43.94 +0.01 NEcoA p NwWrldA 62.67 +0.27 53.99 +0.02 SmCpA p 12.99 ... TxExA p WshA p 43.26 +0.08 20.7 12.6 8.4 8.9 2.9 9.8 16.8 22.7 13.6 17.2 5.6 10.6 7.2 22.0 22.2 21.8 17.4 3.8 9.2 B Baird Funds AggBdInst CorBdInst 10.89 +0.03 11.24 +0.03 BlackRock Funds A GlblAlloc p 19.87 +0.04 BlackRock Funds Inst 22.16 -0.05 EqtyDivd GlblAlloc 19.99 +0.04 7.84 ... HiYldBd ... StratIncOpptyIns 9.93 3.2 3.5 9.3 8.0 9.5 6.0 2.9 D Del Invest Instl 20.32 -0.01 Value Dimensional Fds 5GlbFxdInc 11.00 +0.02 EmgMktVa 29.54 +0.12 EmMktCorEq 21.56 +0.05 IntlCoreEq 13.61 +0.09 18.92 +0.11 IntlVal IntSmCo 20.63 +0.14 IntSmVa 22.51 +0.17 US CoreEq1 21.08 -0.05 US CoreEq2 20.05 -0.06 34.92 -0.29 US Small US SmCpVal 37.11 -0.33 US TgdVal 24.19 -0.21 37.38 -0.13 USLgVa Dodge & Cox Balanced 107.46 -0.22 13.83 +0.03 Income 45.73 +0.34 Intl Stk 196.25 -0.71 Stock DoubleLine Funds TotRetBdI 10.72 +0.01 Net YTD NAV Chg %Ret NAV Chg %Ret Fund 4.2 2.0 23.6 24.9 18.3 14.9 20.2 18.7 10.2 8.5 3.7 -0.5 1.3 7.5 6.6 3.3 20.0 8.8 2.8 57.37 -0.29 FrankTemp/Franklin C 2.40 ... FrankTemp/Temp A Edgewood Growth Instituti EdgewoodGrInst 28.76 +0.11 29.5 GlBond A p 12.20 -0.03 Growth A p 26.79 +0.10 FrankTemp/Temp Adv GlBondAdv p 12.15 -0.03 Federated Instl E Income C t F StraValDivIS 6.31 +0.03 9.0 Fidelity 500IdxInst 500IdxInstPrem 500IdxPrem ExtMktIdxPrem r IntlIdxPrem r TMktIdxF r TMktIdxPrem USBdIdxInstPrem 86.72 +0.02 86.72 +0.02 86.72 +0.03 60.13 -0.25 41.60 +0.30 71.62 -0.04 71.62 -0.03 11.63 +0.03 Fidelity Advisor I NwInsghtI 31.60 +0.03 Fidelity Freedom 16.27 +0.04 FF2020 14.05 +0.03 FF2025 17.51 +0.04 FF2030 FreedomK2020 15.13 +0.03 FreedomK2025 15.96 +0.03 FreedomK2030 16.50 +0.04 FreedomK2035 17.34 +0.04 FreedomK2040 17.37 +0.04 Fidelity Invest Balanc 24.21 +0.03 84.53 +0.31 BluCh 119.35 +0.34 Contra ContraK 119.32 +0.34 10.21 +0.02 CpInc r 39.92 +0.25 DivIntl 171.86 +0.84 GroCo GrowCoK 171.78 +0.84 7.93 +0.02 InvGB 11.29 +0.03 InvGrBd LowP r 54.04 -0.01 LowPriStkK r 54.02 -0.01 99.36 -0.08 MagIn OTC 107.63 +0.32 22.75 ... Puritn SrsEmrgMktF 20.17 +0.13 SrsInvGrdF 11.29 +0.02 TotalBond 10.70 +0.03 Fidelity Selects Biotech r 222.30 +0.80 First Eagle Funds 58.84 +0.04 GlbA FPA Funds FPACres 34.54 -0.06 FrankTemp/Frank Adv ... IncomeAdv 2.35 FrankTemp/Franklin A 7.49 ... CA TF A p ... Fed TF A p 12.06 IncomeA p 2.37 ... 11.9 11.9 11.9 9.6 17.9 11.5 11.5 2.7 18.3 9.6 5.8 3.3 13.7 3.4 H Harbor Funds CapApInst IntlInst r 70.60 +0.48 24.6 69.38 +0.23 18.8 Harding Loevner NA ... NA IntlEq I Invesco Funds A 11.02 -0.04 5.1 EqIncA J John Hancock Class 1 15.60 +0.03 LSBalncd 16.57 +0.02 LSGwth John Hancock Instl DispValMCI 23.23 -0.12 JPMorgan Funds MdCpVal L 39.35 -0.08 JPMorgan I Class 11.66 +0.02 CoreBond 10.8 JPMorgan R Class 11.68 +0.03 25.5 CoreBond 22.0 22.1 8.6 Lazard Instl 19.9 EmgMktEq 18.98 +0.02 25.6 Loomis Sayles Fds 14.38 +0.04 25.7 LSBondI 3.0 Lord Abbett A 3.2 ShtDurIncmA p 4.30 +0.01 9.2 Lord Abbett F ... 9.3 ShtDurIncm 4.29 15.1 29.2 11.4 Metropolitan West 28.1 TotRetBd 10.68 +0.03 10.67 +0.02 3.1 TotRetBdI 10.05 +0.03 3.2 TRBdPlan MFS Funds Class I 39.52 -0.13 27.7 ValueI MFS Funds Instl 24.42 +0.19 IntlEq 8.4 Mutual Series 33.19 ... 7.1 GlbDiscA 10.3 11.0 12.8 10.2 11.0 12.9 14.1 14.2 10.2 12.7 8.2 8.1 2.9 3.0 L 18.9 7.4 1.9 2.0 M 5.8 2.4 2.5 2.7 9.9 20.5 8.6 O Oakmark Funds Invest 4.5 EqtyInc r 32.70 -0.07 7.5 2.7 Oakmark 80.30 -0.11 10.8 5.7 OakmrkInt 27.61 +0.23 21.6 Net Sym Close Chg Stock Net Sym Close Chg s WooriBank WF 53.50 s Workday WDAY 105.20 Wyndham WYN 103.61 XPO Logistics XPO 61.62 XcelEnergy XEL 47.27 Xerox XRX 30.49 Xylem XYL 56.89 YPF YPF 20.07 YumBrands YUM 74.59 YumChina YUMC 36.51 ZTO Express ZTO 15.25 ZayoGroup ZAYO 32.40 ZimmerBiomet ZBH 128.70 Zoetis ZTS 62.06 1.33 KitePharma KITE 111.24 0.72 1.37 KraftHeinz KHC 87.66 0.24 LKQ 32.84 -0.06 -0.81 LKQ 0.04 s LamResearch LRCX 168.34 3.88 0.57 LamarAdvertising LAMR 71.36 -1.28 -0.54 LibertyBroadbandA LBRDA 89.11 0.18 -0.32 LibertyBroadbandC LBRDK 90.12 0.27 -0.39 LibertyGlobal A LBTYA 33.04 0.29 -0.21 LibertyGlobal C LBTYK 32.04 0.39 -0.29 LibertyLiLAC A LILA 25.44 0.48 0.14 LibertyLiLAC C LILAK 25.46 0.33 -0.10 LibertyQVC B QVCB 24.27 -0.12 -0.07 LibertyQVC A QVCA 24.20 -0.15 0.78 LibertyVenturesA LVNTA 55.59 0.26 LibertyFormOne A FWONA 33.06 -0.14 LibertyFormOne C FWONK 34.13 -0.22 LibertyBraves A BATRA 25.33 0.30 AGNC Invt AGNC 21.17 0.12 LibertyBraves C BATRK 25.24 0.32 Ansys ANSS 127.88 -0.03 LibertySirius A LSXMA 42.61 0.37 ASML ASML 154.53 1.80 LibertySirius C LSXMK 42.48 0.32 Abiomed ABMD145.08 -3.22 LincolnElectric LECO 86.56 -0.79 ActivisionBliz ATVI 62.64 1.69 LogitechIntl LOGI 37.34 0.79 AdobeSystems ADBE 149.78 1.57 LogMeIn LOGM 113.25 0.70 AkamaiTech AKAM 45.49 -7.79 lululemon LULU 61.47 -0.43 AlexionPharm ALXN 131.07 1.72 MarketAxess MKTX205.15 5.67 AlignTech ALGN 158.69 0.13 Marriott MAR 103.04 -0.02 Alkermes ALKS 57.57 -0.42 MarvellTech MRVL 16.05 0.05 AlnylamPharm ALNY 81.57 0.56 Mattel MAT 20.92 -0.17 Alphabet A GOOGL 965.31 -3.72 MaximIntProducts MXIM 45.19 0.57 Alphabet C GOOG 947.80 -2.90 MelcoResorts MLCO 21.32 -0.36 Altaba AABA 58.90 0.83 MercadoLibre MELI 286.02 6.76 Amazon.com AMZN 1052.80 12.93 MicrochipTech MCHP 82.69 1.75 Amdocs DOX 67.35 1.03 MicronTech MU 29.81 -0.09 Amerco UHAL 384.94 2.95 Microsemi MSCC 53.65 0.10 AmericanAirlines AAL 51.01 0.40 s Microsoft MSFT 74.05 -0.14 Amgen AMGN 175.89 -5.00 Middleby MIDD 130.11 -0.14 AnalogDevices ADI 80.72 1.20 Momo MOMO 44.01 -0.04 Apple AAPL 153.46 0.72 Mondelez MDLZ 44.22 -0.02 AppliedMaterials AMAT 47.45 1.05 MonsterBeverage MNST 53.57 0.18 ArchCapital ACGL 99.03 -0.09 Mylan MYL 39.19 0.37 AthenaHealth ATHN 145.75 -6.67 NXP Semi NXPI 109.93 0.22 Atlassian TEAM 38.84 0.84 s Nasdaq NDAQ 74.45 1.71 Autodesk ADSK 114.08 1.82 NatlInstruments NATI 42.99 -0.51 ADP ADP 105.98 2.80 NetApp NTAP 44.36 -0.40 BOK Fin BOKF 85.31 -2.61 Netease NTES 312.15 3.26 Baidu BIDU 201.17 4.12 Netflix NFLX 189.08 2.11 BankofOzarks OZRK 47.29 -1.08 NewsCorp A NWSA 14.23 0.11 Biogen BIIB 295.61 12.65 NewsCorp B NWS 14.60 0.05 BioMarinPharm BMRN 89.20 0.57 Nordson NDSN 124.45 -2.05 Bioverativ BIVV 63.45 -0.27 NorthernTrust NTRS 87.90 -0.25 Broadcom AVGO 257.01 2.71 NorwegianCruise NCLH 55.65 -0.10 CA CA 34.65 -0.38 s NVIDIA NVDA 167.26 1.91 CBOE Holdings CBOE 94.04 0.64 OReillyAuto ORLY 187.43 0.58 CDK Global CDK 66.19 0.13 OldDomFreight ODFL 100.40 0.48 CDW CDW 63.93 0.13 ON Semi ON 15.64 0.56 CH Robinson CHRW 65.91 -0.02 OpenText OTEX 34.42 1.08 CME Group CME 121.83 -0.06 PTC PTC 55.88 0.14 CSX CSX 52.06 0.50 Paccar PCAR 68.56 -0.08 CadenceDesign CDNS 37.18 0.54 PacWestBancorp PACW 48.20 -1.29 Carlyle CG 20.75 0.45 Paychex PAYX 58.11 0.68 Celgene CELG 137.75 1.31 PayPal PYPL 58.79 0.53 Cerner CERN 64.62 -0.93 People'sUtdFin PBCT 17.49 -0.41 CharterComms CHTR 348.77 0.77 PilgrimPride PPC 24.00 0.50 CheckPointSftw CHKP 107.57 1.23 s Priceline PCLN 2033.21 16.30 ChinaLodging HTHT 95.97 0.90 Qiagen QGEN 34.31 0.12 CincinnatiFin CINF 74.99 -0.70 Qorvo QRVO 69.54 0.25 Cintas CTAS 137.11 -0.19 Qualcomm QCOM 53.14 -0.13 CiscoSystems CSCO 31.66 -0.46 RandgoldRscs GOLD 92.09 2.08 CitrixSystems CTXS 81.52 -0.27 RegenPharm REGN 515.63 2.18 Cognex CGNX 95.40 0.27 RossStores ROST 53.96 -0.07 CognizantTech CTSH 70.05 0.08 s Ryanair RYAAY 115.95 0.87 Coherent COHR 272.31 -1.79 SBA Comm SBAC 135.57 0.12 Comcast A CMCSA 39.35 -0.40 s SEI Investments SEIC 56.60 -0.61 CommerceBcshrs CBSH 57.78 -1.33 Sina SINA 94.22 -0.08 CommScope COMM 36.01 0.27 SS&C Tech SSNC 39.68 -0.14 Copart CPRT 31.72 -0.17 SVB Fin SIVB 178.65 -4.34 CoStarGroup CSGP 281.32 -0.65 Sabre SABR 21.89 -0.15 Costco COST 152.09 -1.08 s ScrippsNetworks SNI 84.07 2.62 Ctrip.com CTRP 59.72 1.84 Seagate STX 32.34 -0.86 DISH Network DISH 64.27 -0.17 SeattleGenetics SGEN 55.02 0.51 DentsplySirona XRAY 63.17 0.12 Shire SHPG 169.80 3.69 DexCom DXCM 68.75 -1.25 SignatureBank SBNY 135.72 -1.99 DiamondbackEner FANG 96.48 0.76 SiriusXM SIRI 5.39 ... DiscoveryComm A DISCA 26.58 0.65 Skyworks SWKS 107.33 0.94 DiscoveryComm C DISCK 25.54 0.47 Splunk SPLK 62.06 0.58 DollarTree DLTR 70.92 0.33 Staples SPLS 10.14 0.02 E*TRADE ETFC 41.11 -0.81 Starbucks SBUX 57.94 -0.61 EastWestBancorp EWBC 57.38 -1.48 SteelDynamics STLD 36.34 -1.75 eBay EBAY 37.04 0.72 Stericycle SRCL 76.55 -0.91 EchoStar SATS 61.30 -0.19 Symantec SYMC 31.27 -0.25 ElectronicArts EA 118.00 4.34 s Synopsys SNPS 76.69 0.29 Equinix EQIX 440.04 3.08 TD Ameritrade AMTD 46.13 -0.84 Ericsson ERIC 6.30 -0.05 TESARO TSRO 130.06 1.11 ErieIndemnity A ERIE 123.92 -1.38 T-MobileUS TMUS 62.39 0.03 Exelixis EXEL 28.02 0.61 s TRowePrice TROW 84.92 1.09 Expedia EXPE 156.94 2.37 s TakeTwoSoftware TTWO 81.46 0.61 ExpeditorsIntl EXPD 59.66 0.06 Tesla TSLA 343.85 4.25 ExpressScripts ESRX 63.47 0.91 TexasInstruments TXN 82.53 1.14 F5Networks FFIV 128.20 0.18 TractorSupply TSCO 53.40 -0.13 Facebook FB 165.61 0.33 s Trimble TRMB 38.36 -0.43 Fastenal FAST 43.89 -0.19 21stCenturyFoxA FOXA 28.18 0.25 FifthThirdBncp FITB 26.18 -0.41 21stCenturyFoxB FOX 27.92 0.21 Fiserv FISV 127.01 0.62 UltaBeauty ULTA247.24 -9.37 Flex FLEX 16.98 -0.07 s UltimateSoftware ULTI 228.81 -3.22 Fortinet FTNT 40.58 -0.13 UnitedTherap UTHR 131.40 -0.98 Gaming&Leisure GLPI 38.29 -0.11 UniversalDisplay OLED 123.65 -1.45 Garmin GRMN 52.25 -0.31 VCA WOOF 92.55 -0.05 GileadSciences GILD 74.19 0.45 VEON VEON 4.11 0.08 Goodyear GT 35.79 -0.04 s VeriSign VRSN 101.82 0.84 Grifols GRFS 20.14 0.04 VeriskAnalytics VRSK 87.06 0.18 HD Supply HDS 32.18 0.05 VertxPharm VRTX 163.42 1.45 Hasbro HAS 106.10 -0.22 Viacom A VIA 39.75 -0.60 HenrySchein HSIC 184.74 ... Viacom B VIAB 34.37 -0.64 Hologic HOLX 45.14 0.05 Vodafone VOD 29.17 0.07 JBHunt JBHT 93.60 0.24 WPP WPPGY 101.15 -0.38 HuntingtonBcshs HBAN 13.18 -0.22 WalgreensBoots WBA 78.68 -1.38 IAC/InterActive IAC 107.27 -0.58 Weibo WB 76.35 0.35 IdexxLab IDXX 166.83 0.28 WesternDigital WDC 92.96 -0.79 IHSMarkit INFO 45.93 0.35 WholeFoods WFM 41.81 0.06 IPG Photonics IPGP 157.30 0.25 WillisTwrsWatson WLTW 148.51 -1.36 IcahnEnterprises IEP 53.90 0.56 WynnResorts WYNN 132.00 -6.98 Illumina ILMN 176.30 2.45 Xilinx XLNX 65.32 0.86 Incyte INCY 137.19 3.63 Yandex YNDX 31.84 0.10 Intel INTC 34.75 0.08 Zillow A ZG 45.59 -0.12 InteractiveBrkrs IBKR 39.09 0.08 Zillow C Z 45.44 -0.12 Intuit INTU 137.14 0.30 ZionsBancorp ZION 45.67 1.02 IntuitiveSurgical ISRG 943.91 -1.01 IonisPharma IONS 54.33 -0.38 JD.com JD 45.87 1.41 JackHenry JKHY 106.69 0.21 CheniereEnergy LNG 46.20 0.15 JazzPharma JAZZ 161.52 0.27 CheniereEnerPtrs CQP 30.21 -0.39 JetBlue JBLU 22.07 -0.70 CheniereEnHldgs CQH 25.96 -0.52 KLA Tencor KLAC 100.86 1.74 ImperialOil IMO 29.68 0.08 NASDAQ s s t s s s s s s s s s s s s s s s s s s s Fund Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. Fund Stock NYSE AMER Net YTD NAV Chg %Ret Fund Net YTD NAV Chg %Ret Old Westbury Fds ... MuLtdAdml 11.00 ... 14.49 +0.03 12.9 MuShtAdml 15.81 LrgCpStr Oppenheimer Y PrmcpAdml r127.73 +0.34 39.76 +0.17 24.4 REITAdml r 119.48 +0.78 DevMktY 41.16 +0.45 18.7 SmCapAdml 66.35 -0.34 IntGrowY STBondAdml 10.48 +0.02 STIGradeAdml 10.70 +0.01 TotBdAdml 10.79 +0.02 Parnassus Fds 42.50 +0.01 8.7 TotIntBdIdxAdm 21.73 +0.02 ParnEqFd TotIntlAdmIdx r 28.82 +0.14 PIMCO Fds Instl 12.01 +0.03 8.9 TotStAdml 61.95 -0.03 AllAsset 13.65 +0.07 10.26 +0.03 3.9 TxMIn r TotRt 38.16 -0.07 ValAdml PIMCO Funds A 67.18 -0.17 WdsrllAdml IncomeFd NA ... NA WellsIAdml 64.13 +0.05 PIMCO Funds D NA ... NA WelltnAdml 71.48 -0.02 IncomeFd WndsrAdml 76.45 -0.09 PIMCO Funds Instl IncomeFd NA ... NA VANGUARD FDS 25.60 -0.08 DivdGro PIMCO Funds P NA ... NA HlthCare r 215.83 +0.07 IncomeP INSTTRF2020 21.90 +0.03 Price Funds 91.47 +0.53 26.0 INSTTRF2025 22.09 +0.03 BlChip 28.92 -0.01 10.4 INSTTRF2030 22.21 +0.03 CapApp EqInc 33.51 -0.03 7.4 INSTTRF2035 22.34 +0.03 66.61 +0.01 11.7 INSTTRF2040 22.46 +0.03 EqIndex 66.49 +0.38 24.9 INSTTRF2045 22.57 +0.04 Growth 37.39 +0.20 HelSci 72.72 ... 23.1 IntlVal 19.52 +0.03 36.87 +0.25 26.1 LifeCon InstlCapG 31.93 +0.05 18.62 +0.09 21.8 LifeGro IntlStk 26.13 +0.03 LifeMod 14.92 +0.07 16.5 IntlValEq 25.60 +0.01 88.50 +0.03 17.4 PrmcpCor MCapGro 31.59 -0.06 SelValu r 30.64 -0.18 5.4 MCapVal 26.27 +0.05 STAR N Horiz 52.56 +0.05 21.4 10.70 +0.01 9.51 +0.02 3.0 STIGrade N Inc 15.56 +0.03 TgtRe2015 OverS SF r 10.86 +0.05 19.7 22.58 +0.04 10.6 TgtRe2020 30.73 +0.05 R2020 17.95 +0.02 TgtRe2025 R2025 17.36 +0.03 12.0 25.51 +0.05 13.2 TgtRe2030 32.35 +0.05 R2030 18.62 +0.04 14.3 TgtRe2035 19.81 +0.03 R2035 TgtRe2040 34.03 +0.05 R2040 26.70 +0.05 15.0 TgtRe2045 21.35 +0.04 37.26 -0.04 10.7 Value TgtRe2050 34.34 +0.05 Principal Investors 13.38 +0.02 DivIntlInst 13.24 +0.09 20.4 TgtRetInc ... TotIntBdIxInv 10.86 Prudential Cl Z & I 26.47 +0.02 WellsI 14.50 +0.04 4.7 TRBdZ 41.39 -0.01 Welltn 37.86 -0.10 WndsrII VANGUARD INDEX FDS Schwab Funds 228.99 +0.07 500 38.51 +0.01 11.9 ExtndIstPl 195.49 -0.84 S&P Sel SmValAdml 53.68 -0.43 10.75 +0.02 TotBd2 TIAA/CREF Funds 17.23 +0.08 TotIntl 18.49 -0.01 11.5 TotSt EqIdxInst 61.93 -0.03 IntlEqIdxInst 19.51 +0.12 17.9 VANGUARD INSTL FDS Tweedy Browne Fds 33.26 +0.01 BalInst 27.98 +0.05 11.7 DevMktsIndInst 13.67 +0.07 GblValue DevMktsInxInst 21.36 +0.11 79.21 -0.35 ExtndInst VANGUARD ADMIRAL GrwthInst 67.62 +0.16 10.49 +0.03 500Adml 229.00 +0.06 11.9 InPrSeIn 225.97 +0.06 33.26 +0.02 7.9 InstIdx BalAdml 225.99 +0.06 CAITAdml 11.83 ... 4.2 InstPlus CapOpAdml r147.22 +0.28 18.5 InstTStPlus 55.60 -0.03 35.57 +0.13 20.4 MidCpInst 39.88 -0.08 EMAdmr EqIncAdml 73.02 -0.08 8.2 MidCpIstPl 196.70 -0.38 ExplrAdml 91.57 -0.35 13.9 SmCapInst 66.35 -0.34 ExtndAdml 79.22 -0.34 9.6 SmCapIstPl 191.51 -0.98 GNMAAdml 10.53 +0.01 1.4 STIGradeInst 10.70 +0.01 10.79 +0.02 GrwthAdml 67.62 +0.16 18.7 TotBdInst HlthCareAdml r 91.04 +0.03 20.1 TotBdInst2 10.75 +0.02 HYCorAdml r 5.99 ... 6.0 TotBdInstPl 10.79 +0.02 25.75 +0.07 1.3 TotIntBdIdxInst 32.60 +0.02 InfProAd IntlGrAdml 87.99 +0.83 30.7 TotIntlInstIdx r115.26 +0.55 ITBondAdml 11.47 +0.04 3.6 TotItlInstPlId r115.28 +0.55 61.96 -0.04 ITIGradeAdml 9.83 +0.02 3.6 TotStInst 38.16 -0.07 LTGradeAdml 10.51 +0.02 7.0 ValueInst MidCpAdml 180.55 -0.34 11.5 ... 5.3 MuHYAdml 11.34 ... 4.0 Western Asset MuIntAdml 14.21 MuLTAdml 11.66 ... 4.6 CorePlusBdI NA ... P S T V 2.4 1.2 17.4 4.0 8.0 1.4 1.9 2.8 0.8 18.7 11.5 18.1 6.6 8.8 5.4 7.4 11.3 10.9 20.1 8.7 9.8 10.8 11.7 12.6 13.0 17.8 6.9 11.7 9.3 15.4 9.8 11.7 1.9 7.2 8.7 9.8 10.8 11.7 12.6 13.0 13.0 5.3 0.7 5.4 7.3 8.8 11.8 9.6 4.1 2.7 18.6 11.4 7.9 18.2 18.1 9.6 18.7 1.3 11.9 11.9 11.4 11.6 11.6 8.0 8.0 1.9 2.8 2.7 2.8 0.8 18.7 18.7 11.5 6.6 W NA B10 | Thursday, July 27, 2017 * *** THE WALL STREET JOURNAL. BANKING & FINANCE Goldman Expands Lending Business DAVID BECKER/ZUMA PRESS BY LIZ HOFFMAN AND SARAH KROUSE The Shops at Crystals at CityCenter in Las Vegas. The owners of the highest-quality malls are now feeling the pain from woes in the retail industry. Mall Executives Take Cut in Pay BY PETER GRANT Turbulence in the retail sector is hitting executives working for the top mall companies where it hurts: in their wallets. Senior management teams at the country’s largest mall owners, including Simon Property Group Inc., GGP Inc. and Macerich Co., are taking cuts to their compensation as they navigate an industry beset with struggling retailers and increasing competition from online shopping. The slide in compensation among retail landlords is un- usual in the corporate world. Executives at companies in other sectors are less likely to feel the pain of a rough patch because their pay isn’t as closely tied to stock performance. But the real-estate investment trust industry is ahead of most other sectors in designing pay plans to align the interests of shareholders and management, according to Jeremy Banoff, a senior managing director with FPL Associates LP, a compensation-consulting firm that focuses on the real-estate industry. Indianapolis-based Simon, the country’s largest mall owner with stakes in more than 325 properties, took the rare step of eliminating stock grants tied to the company’s long-term performance for top executives, according to State Street Falls Short in Bid for Women Directors BY JUSTIN BAER AND JOANN S. LUBLIN Roughly 400 publicly traded American companies with no women on their board ignored a request to make a bigger effort on gender diversity when approached by one of the largest asset managers in the world. Index-fund giant State Street Global Advisors, which oversees more than $2.5 trillion in assets, had pledged in March to throw its weight behind the issue this year. The company found 468 U.S. companies among its stock holdings that lacked a single female board member. Of that group, the Boston-based firm said about 400 companies failed The paucity of women directors has drawn more scrutiny in recent years. to address gender diversity in any meaningful way. The money manager, a unit of custody bank State Street Corp., then voted against the reelection of directors charged with nominating new board members at each of these companies. The paucity of women directors has drawn more scrutiny in recent years, emerging as a rallying cry for investors seeking to improve companies’ governance standards. Progress has been slow. Nearly a quarter of the companies in the Russell 3000 index lack a female director, according to ISS Analytics, a unit of Institutional Shareholder Services. “The fact that you have over 400 companies was surprising to me,” said Rakhi Kumar, head of asset stewardship as State Street Global Advisors. Boards have been slow to add women for various reasons, including their infrequent turnover and preference for experienced chief executives. But there also has been limited pressure from big institutional investors. State Street hopes to change that picture. Primarily a manager of exchange-traded funds and other passive investments, the firm reviewed companies within the Russell 3000 Index in the U.S., the U.K.’s FTSE 350 and S&P/ASX 300 in Australia. State Street, which owns a combined 3,500 stocks in those three indexes, said it contacted a total of 476 companies in those countries. Health-care companies were the worst-performing group, accounting for about a quarter of those with no women on their boards. 2020 Women on Boards, an organization that is working to bring better boardroom gender diversity, praised State Street’s action this proxy season. The votes set an example for “companies that may talk about diversity but don’t take action,’’ the group’s president, Malli Gero, wrote in an email. State Street is among the largest passive-fund managers in the world—a sector that is amassing significant governance power as investors pour billions into lower-cost index-tracking funds such as ETFs. Since those investments are through passive vehicles, it doesn’t have the ability to simply sell shares in a company. Instead, the firm has to use its voting power to bring about change. Fellow passive-investment giant BlackRock Inc. backed eight shareholder proposals this spring promoting gender diversity. In five of those instances, the money manager voted against the nominating committee chairman’s re-election. “We are an engagement-first company,” a BlackRock spokesman said. “We meet with 1,500 companies a year to talk about a variety of issues. We do that because we believe a vote against a director or management is the end of the engagement process.” its proxy statement filed with the Securities and Exchange Commission. Simon did this because of “the challenging business conditions in the retail industry that the company is facing,” according to the proxy statement. A spokeswoman for Simon declined to comment beyond what was written in the filing. Executives at other big mall owners suffered because their compensation is tied to the performance of their share prices, which have been hammered during the past 18 months as investors have fled the sector. Macerich Chief Executive Arthur Coppola had a target compensation package—including base salary, annual incentive and other benefits— potentially valued at $12 million in 2016. But because the company’s stock price dropped, Mr. Coppola was on track to receive only $5.7 million of that, according to the company’s proxy filing. “That’s the way the stock plans are structured,” said Macerich Chief Financial Officer Thomas O’Hern. “When the stock is down, we suffer from a compensation standpoint.” The retail sector was facing problems even before the e-commerce revolution. Rampant development left the U.S. with far more malls than it needed by the time the last recession hit. A decade later the country is still considered “overstored” and Americans are doing more than 8% of all shopping online, creating enormous headaches for mall owners. Space has emptied as big retailers like Macy’s Inc., J.C. Penney Co., Bebe Stores Inc. and Sears Holdings Corp. have closed stores across the U.S. Until now most of the pain has been suffered by the lower-quality malls, which have taken the greatest hits to occupancy and rents. More of these properties are being sold at steep discounts or going into default. But the cuts in compensation show that the pain is now spreading to the owners of the highest-quality malls. These popular malls, usually in higher-income areas, have done a good job thus far of keeping rents and occupancies from falling and replacing closing stores with new tenants, according to analysts. Gold Takes Its Cue From the Fed NARONG SANGNAK/EUROPEAN PRESSPHOTO AGENCY Compensation tied to stock at retail REITs wanes with the sector’s performance STILL PRECIOUS: Gold prices reversed losses Wednesday after the Federal Reserve kept interest rates unchanged. The central bank signaled concern about lower inflation. A gold shop in Thailand. Coin Firms Shrug Off Scrutiny BY PAUL VIGNA Some companies planning sales of digital coins said they wouldn’t be deterred by the Securities and Exchange Commission’s plans to restrain the hot, new fundraising method, possibly setting up a showdown with U.S. regulators. On Tuesday, the SEC made its first public comments on the topic of initial coin offerings. These digital tokens issued by startups have exploded in popularity this year, raising more than $1 billion from investors. But the tokens are only loosely defined, raising significant questions about what investors are buying and how they should be regulated. Digital currencies such as bitcoin fell sharply after the SEC report Tuesday, but largely stabilized Wednesday. Bitcoin and ether were both down about 1% on Wednesday. Some of the largest coins affiliated with the offerings rose, with EOS moving 3.2% higher, and Qtum rising 0.6% as of late afternoon in New York, according to Coinmarketcap.com. “Our plans have not changed in light of the SEC’s report,” said Kik, a Toronto-based firm that operates a messaging app and is planning a coin offering. It hasn’t determined a start date. Kik said its token will have a “consumptive use…and we believe that distinguishing this functionality takes us out of the purview” of what the SEC would consider a security. That question will be front and center for many coin offerings, since being registered as a security brings a higher level of financial disclosure and scrutiny that many purveyors of the tokens aren’t interested in. “We seek to foster innovative and beneficial ways to raise capital, while ensuring— first and foremost—that investors and our markets are protected,” SEC Chairman Jay Clayton noted in a release accompanying the SEC’s report. Many of the startups using the coin offerings have popped up in recent years to support and expand distributed ledger technology, also known as blockchain. Several of the companies Wednesday said they expected the SEC’s guid- ance and that it wouldn’t affect their plans to raise money through a coin offering. “We have the exact same views as the SEC, and this doesn’t change anything for us,” said George Popescu, the co-founder and chief executive of Lampix, which makes datamanagement tools. The firm has a coin offering scheduled to begin Aug. 9. Mr. Popescu said Lampix already structured it to meet SEC guidelines. It isn’t clear what the SEC’s next move will be. In its report, the SEC looked at one specific token offering, called the DAO, which in 2016 raised about $150 million of the digital currency ether. The SEC said that the DAO fit the test of a security, but that it was choosing not to pursue enforcement. It rather put the onus on the companies, and investors, to make sure they were adhering to securities regulations. If this was a warning, the next step could be to bring an enforcement action against a firm involved with coin offerings. “Make no mistake, it will come,” tweeted Kathryn Haun, a former federal prosecutor. Millions of Americans who want to borrow up to $25 million have a new potential lender: Goldman Sachs Group Inc. A new partnership with Fidelity Investments announced Thursday will enable the Wall Street firm to offer securities-based loans to roughly six million accounts managed by broker-dealers, family offices and wealth advisers that use Fidelity’s technology. Goldman currently offers such loans to fewer than 12,000 ultrawealthy clients of its private bank. The move enables Goldman to gain access to millions of potential borrowers at a time the bank has been trying to lend more. It is the latest attempt by a firm known for its investment banking and trading to reach Main Street customers without a network of brick-and-mortar branches. The centerpiece of the action is a new online platform, called GS Select, that will offer loans of between $75,000 and $25 million, with borrowers’ portfolios of stocks and bonds serving as collateral, the companies Securities-backed loans are a booming business on Wall Street. said Thursday. Goldman’s software can analyze the holdings and make a decision within a day about how much to lend and on what terms. Fidelity, meanwhile, gains another offering for the 3,850 wealth managers and brokers on its platform. Those firms use Fidelity to house, trade and manage their customers’ assets. Securities-backed loans are a booming business on Wall Street, as brokerages search for ways to offset falling trading commissions. Merrill Lynch parent Bank of America Corp. had $40 billion in such loans on its balance sheet at the end of last year, up 140% from 2010. Morgan Stanley’s customers had $30 billion in these loans, more than double from 2013. These loans can generate needed cash without triggering taxes for borrowers or forcing investors to sell higher-yielding investments. Borrowers often such loans to pay taxes, remodel homes and refinance more-expensive loans. Critics say they sometimes aren’t clearly explained and can saddle savers with unnecessary debt. Goldman currently offers securities-backed loans to clients of its private bank, where they account for more than half of the unit’s $29 billion in loans outstanding. But with fewer than 12,000 clients—versus, for example, Morgan Stanley’s 3.5 million—the demand is limited. Fidelity’s network represents six million accounts that could become Goldman borrowers, although the Goldman loans won’t be available to Fidelity’s own retail brokerage or wealthmanagement clients. Fidelity won’t make money on the loans, according to Mike Durbin, head of Fidelity institutional product. Instead, they are another way to retain customers. The partnership is the first of several Goldman expects to strike, said Andrew Kaiser, head of Goldman’s private bank. Small wealth advisers and independent broker-dealers are good fits because they aren’t already connected to a bank, he said. Goldman hasn’t historically been a major lender, an area it left to commercial-banking rivals. But it has been embracing loans over the past few years to replace declining revenue in core businesses like trading. Marcus, the online platform it launched last fall to make small personal loans, has lent more than $1 billion. Goldman is also building a robo adviser to attract consumer clients, according to people familiar with the effort. THE WALL STREET JOURNAL. Thursday, July 27, 2017 | B11 * * * * MARKETS Big Oil Urged to Show Discipline Treasurys Rebound Investors want companies to avoid budget-busting projects of the past As Dollar Takes a Hit BY SAM GOLDFARB Three years into an oil-price slump, investors want the world’s biggest oil companies to do something they have historically struggled with: maintain some financial discipline. The companies are under pressure to show they are continuing to move on from budget-busting projects once common in the COMMODITIES industry, as they head into secondquarter financial disclosures that begin Thursday with Royal Dutch Shell PLC and Total SA. Shell, Total and peers such as Exxon Mobil Corp. and Chevron Corp., which both report earnings Friday, have reined in spending through an oil-market downturn during which crude prices fell from $114 a barrel to $27 a barrel and remain about $50 a barrel. Those efforts paid off in the first quarter, when the companies returned to billion-dollar profits after years of losses or anemic earnings. Now, said Jags Walia, senior portfolio manager at Dutch pension-fund manager APG Asset Management, “there’s no room to take your foot off on capital discipline.” “I think that would be quite unforgivable,” said Mr. Walia, whose fund invests in several large oil companies, including Exxon, Shell and BP PLC. It is a call for big oil companies to keep their businesses steady in a tricky financial environment. International oil prices were up nearly 10% in the second quarter from the same time U.S. government-bond prices bounced back from a selloff the day before and the dollar slid after the Federal Reserve kept interest rates steady but signaled more concern about a recent slowdown in inflation. Bonds rallied Wednesday after the central bank held course and officials issued a statement that some investors and analysts said offered few surprises. MARKETS Among relatively few updates to their previous statement, officials said they could start shrinking the Fed’s large portfolio of bonds “relatively soon,” as opposed to “this year.” Fed officials also said inflation measures “are running below” their 2% target instead of “somewhat below” target, a tweak analysts said indicated slightly more concern about recently tepid inflation data and was supportive of bond prices but hurt the dollar. The yield on the 10-year Treasury note dropped to 2.285% from 2.328% Tuesday, recovering after its largest one-day increase in nearly five months. Yields fall when bond prices rise. Late in New York, the WSJ Dollar Index fell 0.6% to 86.14, snapping a two-day winning streak, and was down against the euro, yen and pound. “There were some minor tweaks to the statement that lean to the dovish side,” said Brad Bechtel, a currency strategist at Jefferies. “The market was anticipating that the statement would be completely unchanged.” With no press conference or new economic forecasts Wednesday, investors were focused on the statement for fresh clues on whether the weaker inflation trend will upset the Fed’s plans for raising rates one more time this year. Investors now see a roughly 44% chance that the Fed sticks to its plans to raise rates again in 2017, according to CME Group Inc. data. That is down from 52% earlier in the day. Expectations that U.S. rates will remain lower typically weigh on the dollar by encouraging investors to buy higheryielding currencies. The dollar on Wednesday also fell sharply against emerging-market currencies, sliding roughly 1% against the Mexican peso, Brazilian real and Turkish lira. This week’s swings are just the latest in a series for the bond market. Treasurys sold off sharply at the end of June amid signs that some central banks were poised to start scaling back stimulus programs. They then rallied as central-bank officials in the U.S. and Europe turned a spotlight on soft inflation, suggesting they would be cautious in tightening monetary policy. Inflation is a main threat to government bonds, eroding the purchasing power of their fixed returns. In addition to the Fed meeting, traders were keeping an eye on Washington, where the Senate is proceeding with an effort to overhaul the healthcare system. Some investors see the legislative maneuvering as a test for whether Congress can ultimately pass tax cuts, which could lead to higher bond yields by boosting inflation. Passing tax cuts could also force the government to issue more bonds, further weighing on the prices of outstanding Treasury debt. ANDREY RUDAKOV/BLOOMBERG NEWS BY SARAH KENT Energy companies must keep spending on exploration, development and acquisitions to replace pumped oil. A Shell facility in Russia. last year. But prices are still likely too low for many companies to cover spending and dividends with cash or break even. At the same time, the companies have to keep finding new oil to replace the barrels they are pumping. That means spending money on exploration, development and acquisitions. BP, which reports earnings Tuesday, faced criticism from investors and analysts after a flurry of acquisitions inflated its investment plans for 2017 and pushed up the oil price at which the company could break even to $60 a barrel. The company’s shares declined 4% after the February announcement. It has since said it is working to drive down its break-even oil price to between $35 to $40 a barrel by 2021. It isn’t just BP: The number of new projects approved this year across the industry is expected to creep up to between 20 and 25 from just 12 in 2016, according to Edinburgh-based consultancy Wood Mackenzie. The oil companies declined to comment ahead of their earnings reports. But they have moved to tackle the challenges. BP’s costs are down 40% since 2013 and it has vowed to maintain a budget cap of $17 billion a year out to 2021. When BP reported firstquarter results in May, Chief Financial Officer Brian Gilvary said the company intended to deliver on promises to increase cash flow and dividends in coming years by “maintaining strict discipline within our financial frame and staying focused on delivering returns.” Exxon’s capital spending last year was $12 billion lower than in 2015, though it has crept higher this year. The company says it is focusing a chunk of its firepower on shale developments that start to generate cash quickly. Cash Crunch Estimated ‘break even’ oil price for 2018, in dollars a barrel* BP $68 Shell $63 Exxon Mobil $57 Total SA Chevron $50 $43 Brent crude (Wednesday) $50.97 *After dividends and pre-disposals Source: Macquarie Research THE WALL STREET JOURNAL. Euro Hits Highest Level Against Franc Since 2015 BY BRIAN BLACKSTONE ZURICH—The euro hit its highest level on Wednesday versus the Swiss franc since the Swiss National Bank abandoned CURRENCIES its currency ceiling in early 2015, providing a reprieve for the SNB, which has spent vast sums on capping the currency’s strength. Brighter prospects for the eurozone economy and expectations that the European Central Bank will soon begin winding down its asset-purchase program have boosted the euro against a broad basket of currencies, including the U.S. dollar and franc. The exchange rate is particularly important for Switzerland as an export-dependent economy. A big share of its exports goes to the eurozone and a weaker franc will make its goods cheaper there. It will also ease pressure on the SNB to intervene in currency markets. The SNB has accumulated around 700 billion francs ($735 billion) in foreign currency reserves through its efforts to weaken the Swiss currency, though its reserves have stabilized in recent months. The euro traded at 1.1159 francs Wednesday afternoon in New York after fetching as much as 1.1176 earlier in the day. This is the highest level since the SNB stunned financial markets by dropping the franc ceiling on Jan. 15, 2015. The cap was announced in September 2011, when the SNB said it would intervene in markets to keep the euro from weakening below 1.20 francs. When it dropped the peg, the euro dived against the franc and has only slowly recovered since then. The franc is still relatively strong. It remains about 7% higher against the euro than it was when the franc ceiling was in place. It has also strengthened in recent weeks against the dollar. The SNB still maintains a deeply negative deposit rate in the hope of reducing the attractiveness of Swiss assets to global investors. The franc typically strengthens in times of global economic and political uncertainty due to Switzerland’s wealthy economy, low debt and stable political system. The franc’s surge in 2015 led to concerns that Switzerland’s economy would buckle. It has avoided recession, albeit with only modest growth, and has maintained a high trade surplus. Liftoff Boeing surpassed Goldman Sachs Group as the priciest stock in the Dow Jones Industrial Average. $250 Boeing +50% YTD 225 LUKE MACGREGOR/BLOOMBERG NEWS 200 Shares of Boeing jumped 9.9%, their largest one-day percentage increase since October 2008. Goldman Sachs –7% YTD 175 150 Jan. Feb. March April Source: WSJ Market Data Group May June July THE WALL STREET JOURNAL. Earnings, Commodity Gains Lift U.S. Stocks BY AMRITH RAMKUMAR AND RIVA GOLD U.S. stock indexes climbed to fresh records after corporate earnings continued to beat Wall Street expectations. The Dow EQUITIES Jones Industrial Average, S&P 500 and Nasdaq Composite posted all-time highs on the same day for the first time since July 19. Stocks stayed steady after Federal Reserve officials voted unanimously to leave interest rates unchanged and signaled that the central bank could start shrinking its balance sheet “relatively soon”—a decision that was widely expected by investors and analysts. “The Fed has done such a clear job in communicating some of their short-term and long-term goals,” said Yousef Abbasi, global market strategist at JonesTrading Institutional Services. “At this point, earnings take over and start to dominate,” he said. The Dow Jones Industrial Average advanced 97.58 points, or 0.5%, to 21711.01. The S&P 500 inched up 0.70 point, or less than 0.1%, to 2477.83 and the Nasdaq Composite added 10.57 points, or 0.2%, to 6422.75. Both indexes set records on consecutive days with earnings season at one of its busiest points. With the Fed’s commentary suggesting the central bank will keep rates low for now, investors say U.S. stocks should keep eking out gains, provided that earnings continue to be supportive. Roughly one-third of the S&P 500 has reported results so far, with 75% of the companies beating earnings estimates as of Wednesday afternoon, according to FactSet. Companies that have reported so far have posted 8.7% growth in earnings per share from the same quarter a year earlier, a higher figure than analysts projected entering reporting season. Boeing shares led the Dow industrials higher following the company’s quarterly earnings report, jumping $20.99, or 9.9%, to a record $233.45— their largest one-day percentage increase since October 2008. The aerospace giant added roughly 144 points to the bluechip index after beating profit expectations and raising its guidance for the year. With its advance, Boeing vaulted past Goldman Sachs Group to become the priciest stock in the Dow. After releasing results, shares of AT&T rose 1.81, or 5%, to 38.03—the stock’s best day since March 2009. Advanced Micro Devices shares climbed 65 cents, or 4.6%, to 14.76. Shares of Coca-Cola added 50 cents, or 1.1%, to 45.74, the stock’s largest advance in more than two months. Ford Motor fell 21 cents, or 1.9%, to 11.06, however, after the company revised its guidance. Akamai Technologies declined 7.79, or 14.6%, to 45.49, making it the worst performer in the S&P 500. Amazon.com shares rose 12.93, or 1.2%, to a record of 1,052.80 giving the e-commerce giant a market value above $500 billion for the first time, according to FactSet, ahead of its earnings Thursday. Government bonds rose, with the yield on the 10-year U.S. Treasury note edging down to 2.285% from 2.328% on Tuesday. Yields fall as prices rise. The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.6% after trading up before the Fed’s statement. Elsewhere, the Stoxx Europe 600 added 0.5%. Australia’s S&P/ASX 200 rose 0.9% after Australian inflation figures were weaker than expected but the Australian central bank dismissed a need to change its stance. Early Thursday, the index was up a further 0.3%. AUCTION RESULTS Here are the results of Wednesday's Treasury auctions. All bids are awarded at a single price at the market-clearing yield. Rates are determined by the difference between that price and the face value. TWO-YEAR FRNs $51,311,189,600 Applications $16,525,444,600 Accepted bids $8,347,200 " noncompetitively 0.060% Spread 61.06% Bids at clearing yield accepted 9128282M1 Cusip number The floating-rate notes, dated July 31, 2017, mature on July 31, 2019. FIVE-YEAR NOTES $91,047,660,000 Applications $37,457,038,900 Accepted bids $37,326,800 " noncompetitively $0 " foreign noncompetitively 99.957246 Auction price (rate) (1.884%) 1.875% Interest rate 12.57% Bids at clearing yield accepted 9128282P4 Cusip number The notes, dated July 31, 2017, mature on July 31, 2022. B12 | Thursday, July 27, 2017 THE WALL STREET JOURNAL. * * MARKETS Draghi’s ‘Whatever’ Pledge Bore Fruit Speech marked end of Eurozone’s sovereign-debt crisis but produced varied Turning Point effects, slow recovery Five years after Mario BY MIKE BIRD AND CHRISTOPHER WHITTALL Five years ago, European Central Bank chief Mario Draghi took the stage in London to give the speech that ushered in the beginning of the end of the Continent’s sovereign-debt crisis. Several features of the financial panic that had characterized the previous two years began to subside almost immediately after he spoke. But five years later, the economic performances of the bloc’s members are hugely varied, and the recent recovery has been painfully slow. On July 26, 2012, Mr. Draghi offered his assurances that the ECB wouldn’t allow the eurozone to collapse, with one key sentence standing out: “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro and believe me: It will be enough.” The speech signaled the ECB’s announcement a week later that it could conduct “outright open market operations,” buying unlimited eurozone government bonds from investors to reduce their yields and preserve the eurozone. The reaction in eurozone government-bond markets was rapid. Yields on the bonds of the most-fragile economies began to fall: Spanish and Italian 10-year bond yields dropped 1.5 percentage points over the rest of 2012. It was “the inflection point,” said Charles Zerah, a fixed-income fund manager at asset manager Carmignac. Mr. Draghi’s speech bought time for European politicians to put in place bailout funds and begin to fix the Continent’s ailing banking system, he added. As a result, “we started to Yields on 10-year government bonds 8% Bond yields for Italy and Spain began declining relative to their German equivalent in mid-2012. ‘Whatever it takes’ 7 Draghi’s speech ushered in the end of the region’s sovereign-debt crisis, the recovery has remained painfully slow as performance by bloc members varies. 6 5 4 3 2 Italy Spain 1 France Germany 0 –1 2007 ’08 ’10 ’11 ’12 ’13 Markets recovered quickly but a huge divergence is still clear in unemployment rates. The price of insuring European corporate debt slumped after the speech. Greece Itraxx Europe, annual cost to insure $10 million in debt Spain Italy 30% ‘Whatever it takes’ $200,000 ’09 150,000 Portugal ’14 ’15 The Euro Stoxx Banks index recovered from its postcrisis low reached in mid-2012. ‘Whatever it takes’ ‘Whatever it takes’ 250 200 150 100,000 10 50,000 100 0 0 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 50 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 2010 ’11 Sources: FactSet (yields, unemployment, Euro Stoxx Banks); IHS Markit (Itraxx Europe) think differently about investing in European assets,” said Mr. Zerah. The speech is seen as pivotal to reducing the risk of a eurozone breakup. With a promise to intervene in pre- carious debt markets, the ECB gave investors a reason to stop fleeing from Europe’s riskier bonds. Perceptions that a country would exit from the eurozone in short order never returned ’12 ’13 ’14 ’15 ’16 ’17 THE WALL STREET JOURNAL. to the heights that they reached in the summer of 2012. (And the ECB has never used the “outright” tools it developed.) But neither did markets revert to the prefinancial crisis era, when Greece bor- rowed at roughly the same cost as Germany. The ECB doesn’t want to go back to the days of “artificially low” borrowing costs, said Olivier de Larouzière, head of interest rates at Natixis Asset HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Facebook’s Growth Story at Risk Worthy Friends Facebook’s average revenue per user $5 4 3 2 1 0 1Q 2Q 2016 3Q 4Q 1Q 2Q 2017 Sources: the company; Elise Amendola/AP Photo THE WALL STREET JOURNAL. priced in, which makes it harder for the company to exceed them each quarter. This is particularly true as Facebook’s user growth slows. New users tend to come from outside the U.S., which makes them less valuable from the standpoint of advertising. The dynamic—and the fact that Facebook plans to stop inserting more ads in users’ feeds—heightens the pressure on the company to generate more revenue from existing users with new ad formats, including video. It also must begin generating revenue from its Messenger and WhatsApp platforms. Facebook started showing ads in Messenger this month, and Chief Executive Mark Zuckerberg said Wednesday that he wants the company to move faster on monetizing the two apps. But Chief Operating Officer Sheryl Sandberg emphasized that it was still early days for generating revenue from Messenger. Facebook did cheer investors when it narrowed the range of its expectations for full-year operating-expense growth to 40% to 45% from a previous 40% to 50%. It also said that full-year capital expenditures would come in at the lower end of its prior guidance of $7 billion to $7.5 billion. Based on the number of questions from analysts Wednesday about generating revenue from its Messenger app, Facebook needs another big platform to drive its next leg of growth. Until then, its stock-price performance could hit a slow patch. —Miriam Gottfried PayPal Should Tout Its Secret Weapon Investors are pleased for now with PayPal’s strategy of doing more for less. But with the payment company’s shares priced for perfection, it may need to start showing some new tricks soon. The company’s secondquarter results were basically an encore performance. Total payment volume handled by the company rose 23% from a year earlier, similar to the growth rate it has managed over the previous several quarters. The amount of revenue earned per transaction fell for at least the ninth consecutive quarter, though, to 2.58%. This is partly due to the growth of peer-to-peer transfers on PayPal’s Venmo platform, which are free for ’17 Germany 20 Email: firstname.lastname@example.org Facebook is as popular as ever. That may be making it a little harder for it to impress its friends. The social-networking giant on Wednesday reported second-quarter earnings and revenue that exceeded analysts’ expectations. Its monthly active user base exceeds two billion people. Some 66% of Facebook’s monthly active users continue to visit it daily. But while 45% top-line growth from a year earlier and 24% growth in average revenue per user would be impressive for almost any company, those figures represented Facebook’s slowest growth since the third quarter of 2015. Growth in daily and monthly active users also slowed sequentially. The slowdown matters because Facebook’s shares have shot up 44% since the beginning of the year, outperforming its Big Tech peers. High expectations already are ’16 Paying Up PayPal’s forward price/earnings ratio 30 25 20 2015 2016 2017 Source: FactSet users. Large merchants that start accepting PayPal payments also are paying a lower average rate. In addition, PayPal’s profit margin per transaction is falling as more users link their PayPal accounts to credit cards that charge the company fairly high interchange fees. Investors don’t care. They are focused on the company’s volume growth, driven by the shift to online and mobile shopping. PayPal’s shares have surged by more than 30% since its previous quarterly report, bringing its valuation to a rich 29 times forward earnings. That is well above the stock’s average multiple of 24 times since it was spun off from eBay in 2015. This rally was aided by Vantiv’s $10 billion deal for U.K. payment processor Worldpay, which put new focus on the payments sector. Worldpay’s main attraction was its global e-commerce business, which processes payments for online mer- chants. PayPal’s own Braintree platform performs the same service. It is a major part of PayPal’s vision to become a universal, “two-sided” platform, helping consumers and businesses handle payments. Yet it is frustrating that PayPal continues to offer so little detail on Braintree’s performance. In future earnings releases, the company might consider breaking out Braintree as a separate unit to give investors a better idea of its potential. Assuming the numbers are good, some added transparency about Braintree could freshen up PayPal shares before its volume-driven growth story gets stale. —Aaron Back Management. Stress in corporate-debt markets was high around the time of Mr. Draghi’s speech and declined afterward, never subsequently returning to the 2011-12 levels. “‘Whatever it takes’ means there are no systemic risks in the euro area,” said Mr. de Larouzière. The summer of 2012 marked the absolute postcrisis low for the eurozone’s banks, which held huge proportions of the government debt at risk of default. But the speech didn’t solve their problems. Bank stocks practically returned to their postcrisis nadir after the U.K.’s vote to leave the European Union, when yields fell to their most negative levels on record. While sovereign-bond spreads recovered quickly, and European companies no longer struggle to borrow, the real economy has bounced back far less quickly. Immediately before the financial crisis, the unemployment rates of Germany and Greece were separated by less than a percentage point. Unemployment has fallen in most countries, though less notably in Italy, but extreme regional divergence persists. The ECB’s commitment to intervention didn’t spark an immediate recovery for the eurozone, which remained in recession until the middle of 2013. The eurozone’s gross-domestic-product growth is only now starting to match the U.S.’s, five years after the sovereign-debt crisis began to subside. “‘Whatever it takes’ was a defining moment for the market, the turning point in terms of fighting the crisis, when the redenomination risk was priced out of government bonds,” said Matthew Cairns, senior strategist at Rabobank. “But even now,” he said, “growth has really yet to pick up to the levels that the ECB would like to see it at.” WSJ.com/Heard Investors May Feel Left Out of Fed Plans Can the Federal Reserve take away the punch bowl from the stock market without taking it away from the economy? The Fed left rates steady at the conclusion of its twoday policy meeting Wednesday and, given worries about low inflation, investors are doubtful another rate increase is coming this year. But the central bank doesn’t seem to have any qualms about starting to run down the stock of Treasury and mortgage securities it accumulated in the wake of the financial crisis. It said it plans to do that “relatively soon”—a signal that it could start shrinking its portfolio after its September meeting. It seems the Fed is making its rate decisions contingent on what inflation does, but that it is happy to go forward with its plan as long as the job market continues to do well, says J.P. Morgan Chase economist Michael Feroli. It is a mystery why. One possibility is that it wants to get the balancesheet process under way before Chairwoman Janet Yellen’s term ends in January, helping to make any successor’s move into the job smoother. But the Fed also may be mindful of differences in how rate increases and portfolio reductions might affect the economy. When the Fed raises rates, it increases banks’ borrowing costs and can make them less willing to extend credit. But when it starts reducing its balance sheet, it will increase the supply of Treasury and mortgage securities on the market, placing upward pressure on their yields. That will make them more attractive relative to stocks and bonds and could reverse an easing in market conditions that has come despite the Fed’s rate increases. This has the Fed worried. Indeed, minutes of its June meeting showed that some policy makers were concerned that investor complacency amid high valuations “could lead to a buildup of risks to financial stability.” For investors, whether financial markets are an element in the Fed’s thinking is beside the point: For whatever reason, it isn’t letting low inflation get in the way of its balance-sheet plan. That could make markets challenging. —Justin Lahart OVERHEARD A new diagnostic test is flying off the shelves. Exact Sciences reported second-quarter revenue of $57.6 million on Tuesday afternoon, thanks to strong growth in its signature product, Cologuard. The company reported more than 135,000 completed tests using Cologuard, which screens for colorectal cancer in patients with an average risk profile. Using Cologuard is less invasive than a traditional colonos- copy, but the method does come with its own hassles. Patients need to ship a stool sample to the company’s testing center, which analyzes the sample and provides the result to the patient’s physician. Those results have shareholders beaming. The stock was up 6.2% at Wednesday’s close and has tripled so far this year. It is less clear whether mail carriers are happy.