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The Wall Street Journal 27 July 2017

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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
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Salesforce
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12.4%
1,000+ Employees Segment, 2015
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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.
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“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 wsjcontact@wsj.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
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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
tteachout@wsj.com.
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© 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.
Weather
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t
Edmonton
70s
Calgary
C
Seattle
90s
10s
60s
60s
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Billings
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70s
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Salt LLake
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Sacramento
San
an Francisco
80s
70s 100s
90s
Las
V
Vegas
Los A
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San Diego
80s
70s
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70s
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Phoenix
70s
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kl homa City
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A
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ll
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Jack
Jackson
Atl
t
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h
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t
Houston
New
ew Orleans
l d
Orlando
U.S. Forecasts
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
67
88
117
89
85
71
70
74
113
63
62
Today
Tomorrow
Lo W Hi Lo W
58 pc 68 60 sh
73 pc 88 72 s
86 s 119 89 s
77 t
89 78 pc
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83 69 c
58 c
70 58 sh
56 pc 69 60 sh
62 pc 76 62 pc
97 pc 111 96 s
53 sh 63 52 sh
51 sh 62 52 sh
6
8
9
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28
33
25
30
35
38
31
32
40
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100+
41
42
43
45
Warm
44
46
47
Rain
48
54
49
50
55
Cold
T-storms
59
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Stationary
Snow
63
64
Showers
Flurries
66
67
56
61
Miami
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
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Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
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Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
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Vancouver
Warsaw
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Today
Tomorrow
Hi Lo W Hi Lo W
73 57 sh 72 59 sh
78 61 sh 77 59 pc
91 75 pc 92 74 pc
92 82 sh 91 82 sh
88 71 t
82 72 pc
90 75 pc 89 76 c
91 73 s
88 70 s
65 41 s
67 41 s
68 56 sh 68 60 sh
99 70 s
99 69 s
84 79 r
83 79 t
57 46 c
57 47 pc
75 55 pc 76 54 pc
90 64 pc 92 70 pc
80 61 t
83 68 pc
86 80 sh 86 79 sh
73 58 pc 73 60 pc
79 64 s
79 68 s
113 83 s 112 81 s
85 68 pc 84 70 pc
89 79 sh 89 80 sh
87 75 pc 86 75 r
101 84 s 100 84 s
90 79 c
89 80 c
64 51 pc 70 47 pc
95 79 pc 96 80 pc
84 77 c
90 79 c
81 63 sh 74 59 pc
72 56 pc 73 57 s
75 56 sh 72 56 t
73 58 sh 74 54 sh
51
57
58
62
65
68
24 Equivalent of
four roods
5 Grounds for a
Medal of Honor
27 Cause of a
shootout
10 Stadium surface
28 Switch
magazines,
say
13 Bow in movies
15 Letter three after 30 Clay pigeon
57-Down
launcher
16 It may be shot in 33 Shucker’s
the open
workplace
17 One can
perform a giant
swing on it
35 Potter, for one
19 Words with
profit or loss
38 Iron targets
20 Encourages to
misbehave
21 Firefox feature
23 “What’d I tell
you!”
37 Ring outcome
40 Potent java,
slangily
41 Nonexistence
32 Many an emailed
document
33 “Works for me!”
2 Virtual journals
3 Harbor sight
34 Receptionist’s
reassurance
4 Early birds, say
35 Cull
5 Prussian
preposition
36 Sea spot
37 Explosive initials
6 Qty.
52
HIGH STANDARDS | By Alice Long
Across
1 See 50-Across
31 One Israeli out of
five
68 Carbonnade, e.g.
36
39
29 Decorate a
copperplate
Down
1 Not quite smart
27
29
66 Crumb claimer
67 Onetime Edison
employee
22
26
34
37
12
19
21
24
11
16
18
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70s
7
15
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46 Driving-amidobstacles
competition
39 Hit the buzzer?
7 Took for the
summer, perhaps 42 Home to some
wild camels
8 Eyeball
44 They speak up
9 Capital
46 Cujo’s affliction
southwest of
Gibraltar
48 Explode
10 Competition
begun in the
mid-1950s
51 Blot lightly
52 Get on the
soapbox
11 Solemn words
53 Fancy do
47 Weaken
12 Lacking life
49 About
14 Dye group
54 School near
Windsor
50 Repeated five
times, a song by
1-Across
18 Ready for
shipping out
55 Matching
53 Spot for
MacBook medics
56 Stud feature
59 Put away
60 Set higher
standards, and
what you must
do five times in
this puzzle
63 Deli delicacy
43 Like much blues
music
64 Political attack
45 Neophyte
65 Really hot
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
65 55 pc 62 53 c
Atlanta
91 74 t
89 73 t
Austin
101 74 s 103 76 s
Baltimore
88 71 pc 81 65 r
Boise
92 67 pc 97 67 s
Boston
77 66 pc 78 63 c
Burlington
79 61 t
74 56 c
Charlotte
89 72 pc 84 69 t
Chicago
82 67 t
80 64 s
Cleveland
81 68 t
77 64 r
Dallas
101 81 s 100 80 s
Denver
84 62 t
88 62 t
Detroit
82 67 t
75 60 sh
Honolulu
87 75 s
87 76 pc
Houston
96 77 pc 98 79 s
Indianapolis
75 68 r
77 58 pc
Kansas City
83 67 t
84 63 pc
Las Vegas
102 85 pc 103 84 pc
Little Rock
97 77 s
89 71 t
Los Angeles
85 67 pc 84 67 pc
Miami
93 81 pc 92 81 t
Milwaukee
77 66 c
76 63 pc
Minneapolis
84 63 s
83 62 s
Nashville
92 74 t
85 69 t
New Orleans
93 76 t
93 76 s
New York City
82 70 c
80 67 t
Oklahoma City
99 73 pc 92 70 c
5
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60s
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84 65 c
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83 68 t
98 82 c
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72 56 pc
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81 60 pc
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3
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City
Hi Lo W
Omaha
85 65 pc
Orlando
91 74 t
Philadelphia
86 72 pc
Phoenix
107 84 s
Pittsburgh
80 67 pc
Portland, Maine 74 61 pc
Portland, Ore.
80 57 s
Sacramento
100 64 s
St. Louis
87 72 r
Salt Lake City
91 73 pc
San Francisco
74 55 s
Santa Fe
85 60 t
Seattle
73 57 pc
Sioux Falls
82 58 s
Wash., D.C.
88 74 pc
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Pierre Sioux
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cord of 24-14, but they quickly fell
apart, going 54-70 the rest way,
prompting their current trajectory.
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
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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 henninger@wsj.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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
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
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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
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S&P 2477.83 À 0.03%
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Slowing Down
Facebook’s ad revenue, change
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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
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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.”
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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.
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Continued from page B1
nonfiction and lifestyle programming.
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
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Norfolk Southern Wins Customers From Rival CSX
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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.
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B6 | Thursday, July 27, 2017
THE WALL STREET JOURNAL.
* ****
BUSINESS NEWS
Anthem
Warns of
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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: heard@wsj.com
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.
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