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DJIA 23435.01 À 57.77 0.2%
What’s
News
Business & Finance
T he White House has
told Fed governor Pow-
ell that Trump intends to
nominate him as the next
chairman of the central
bank, succeeding Yellen. A1
 The Fed left rates un-
changed, but suggested it
remained on course to lift
them before year’s end. A2
 Russian operatives tar-
geted Facebook users by
race, politics, religion and in-
terests, according to ad data
released by lawmakers. B1
 Facebook said it would
sacrifice some growth to in-
vest more in safety and se-
curity operations, as it posted
a 79% increase in profit. B3
 Tesla warned of months-
long delays in the produc-
tion of the Model 3. The
firm turned in its worst fi-
nancial quarter ever. B1
 Auto makers registered
strong U.S. sales for Octo-
ber, setting the stage for a
strong finish to 2017. B2
 Uber’s effort to close a
SoftBank investment is in
danger of derailing as co-
founder Kalanick tussles with
fellow board members. B1
 Qualcomm’s profit slid
89%, crippled by a Taiwan-
ese fine and Apple’s with-
holding of patent fees. B4
 The Dow rose 57.77
points to 23435.01. The
S&P 500 advanced while
the Nasdaq eased. B13
 Big insurers MetLife
and Allstate posted third-
quarter results that were
reduced by hurricanes. B7
 Under Armour is shed-
ding more of its senior
leadership as the firm grap-
ples with declining sales. B3
World-Wide
 Federal prosecutors filed
terrorism charges against
the man accused of killing
eight people in a truck at-
tack on a New York bike
path. Officials said the sus-
pect, a native of Uzbekistan
who came to the U.S. in
2010, was inspired by Is-
lamic State videos. A1, A6-7
 Trump called for an end
to the Diversity Visa Lot-
tery, the program under
which the truck-attack sus-
pect came to the U.S. A7
 Republicans may seek to
repeal the ACA’s requirement
that most people have health
insurance as part of the GOP
tax-overhaul package. A4
 Realtors launched a lob-
bying blitz to save deduc-
tions for mortgage interest
and property taxes. A4
 The administration said
it is slashing a drug subsidy
Medicare pays some hospitals,
prompting the AHA and others
to threaten legal action. A3
 Niger is open to allowing
U.S. drone strikes against
terror groups, its premier
said, in the wake of the kill-
ing of four U.S. soldiers. A8
 Two U.S. Navy collisions
that killed 17 sailors this
year were avoidable, a pair
of reports said, citing fail-
ures in a number of areas. A8
 South Korea’s president
said he opposes military ac-
tion against North Korea, days
before Trump’s Asia trip. A9
 Britain’s defense chief re-
signed after he was accused
of inappropriate conduct to-
ward a radio presenter. A8
 A U.K. panel will probe
whether a Brexit backer
broke finance rules. A8
CONTENTS
Business News.. B3,8
Crossword.............. A12
Heard on Street. B14
Life & Arts....... A11-15
Management.......... B6
Markets............. B13-14
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * *
NASDAQ 6716.53 g 0.2% STOXX 600 396.77 À 0.4%
Trump to Tap Powell as Fed Chief
Successor to Yellen is
likely to continue rate
policy but may seek
looser regulations
By Kate Davidson,
Peter Nicholas
and David Harrison
WASHINGTON—The White
House has told Federal Re-
serve governor Jerome Powell
that President Donald Trump
intends to nominate him as
JANE ROSENBERG/REUTERS
The suspect in Tuesday’s deadly rampage, Sayfullo Saipov, appeared on Wednesday in federal court.
Astros Are Baseball’s Champions
MATT SLOCUM/ASSOCIATED PRESS
LIFT-OFF: Houston celebrates after defeating the Los Angeles
Dodgers 5-1 on Wednesday, winning four of seven games and gaining
its first World Series title since the team’s founding in 1962. A16
Mère? Mutter?
Tiger Mom
Goes Global
i i i
New parents spark
publishing boom;
Achtung, baby
BY ELLEN GAMERMAN
Finnish children are getting
raised Dutch. Italian bambinos
are growing up like Danes.
American children may soon
get the German treatment.
And the Chinese are influenc-
Middle Seat........... A11 ing child-rearing world-wide.
Opinion.............. A17-19
Sports........................ A16 Books on foreign parenting
Technology............... B4 styles were once a U.S. pub-
U.S. News............. A2-7 lishing niche for a small group
Weather................... A12
of anxious Americans trying to
World News....... A8-9
give their children an edge.
Now, there are too many Ti-
> ger-Mom varieties to count.
“The Danish Way of Parent-
ing” says boys and girls thrive
with skolefritidsordning—a
“free-time school” where chil-
dren play until dinner. Rights
Please see BOOKS page A10
THURSDAY, NOVEMBER 2, 2017 ~ VOL. CCLXX NO. 105
10-YR. TREAS. g 1/32 , yield 2.378%
the next chairman of the cen-
tral bank, according to a per-
son familiar with the matter, a
move likely to combine conti-
nuity on interest-rate policy
with perhaps a lighter touch
on financial regulation.
If confirmed by the Senate,
Mr. Powell would succeed Fed
Chairwoman Janet Yellen, the
central bank’s first female
leader, whose four-year term
as Fed chief expires in early
February.
The president spoke with
Mr. Powell on Tuesday, accord-
ing to people familiar with the
How China
Outflanked the WTO
The U.S. helped create the group to smooth
global commerce. Now it’s a battleground.
BY JACOB M. SCHLESINGER
GENEVA—Inside the ce-
ment compound housing the
World Trade Organization
lies a colorful Chinese garden
of cultivated rocks, arches
and calligraphy. The gift from
the Chinese commerce minis-
try symbolizes “world pros-
perity through cross-cultural
fertilization,” according to a
marble plaque.
It’s not the only way China
has left its mark on the insti-
tution.
Sixteen years after becom-
ing a member, the world’s
second-largest economy is in
an increasingly tense stand-
off with the U.S. and Europe
that threatens to undermine
the WTO’s authority as an ar-
biter of global trade.
Rather than fulfilling its
OIL $54.30 g $0.08
matter who couldn’t describe
what they discussed.
Mr. Powell’s nomination
would mark the first time in
nearly four decades that a new
president hasn’t asked the
serving Fed leader to stay on
for another term, even though
that person was nominated by
a president of a different
party. The last time a first-
term president didn’t do that
was in 1978, when President
Jimmy Carter chose G. William
Miller to succeed Arthur
Burns.
In his five years at the Fed,
Disney’s Force Awakens
Against Local Movie Theaters
BY ERICH SCHWARTZEL
LOS ANGELES—The box-of-
fice domination of the “Star
Wars” franchise has given
Walt Disney Co. unprecedented
power over the nation’s movie
theaters.
Before exhibitors can begin
screening “Star Wars: The Last
Jedi” this December, they must
first commit to a set of top-se-
cret terms that numerous the-
ater owners say are the most
onerous they have ever seen.
Disney will receive about 65%
of ticket revenue from the
film, a new high for a Holly-
wood studio. Disney is also re-
mission of steering the Com-
munist behemoth toward
longstanding Western trading
norms, the WTO instead
stands accused of enabling
Beijing’s state-directed mer-
cantilism, in turn allowing
China to flood the world with
cheap exports while limiting
foreign access to its own
market.
“The WTO’s abject failure
to address emerging prob-
lems caused by unfair prac-
tices from countries like
China has put the U.S. at a
great disadvantage,” Peter
Navarro, a trade adviser to
President Donald Trump, said
in an interview. “Things have
to change.”
Such criticism has perco-
lated over many years in the
U.S. with growing bipartisan
Please see TRADE page A10
WSJ.com
GOLD $1,274.10 À $7.10
Mr. Powell has been a reliable
ally of Ms. Yellen and would
likely continue the Fed’s cur-
rent cautious approach to re-
versing the central bank’s cri-
sis-era stimulus policies as the
economy expands.
That would mean gradually
raising short-term interest
rates in quarter-percentage-
point steps through 2020
while slowly shrinking the
Fed’s $4.2 trillion portfolio of
Treasury and mortgage-backed
securities it purchased to
lower long-term rates.
Mr. Trump had settled on
Terror Charges
Are Filed Against
New York Suspect
Sayfullo Saipov, the 29-
year-old Uzbek man charged
Wednesday with killing eight
people and injuring 12 others
by driving a truck down a
crowded Manhattan bike path
on Tuesday, confessed to in-
vestigators that he was in-
spired by Islamic State videos
he watched on his phone.
Investigators said that Mr.
By Melanie Grayce
West, Zolan Kanno-
Youngs and
Rebecca Davis O’Brien
Saipov told them he wanted to
adorn the rented truck he used
in the attack with ISIS flags
and also intended to continue
the carnage by driving across
the Brooklyn Bridge. The
deadly rampage followed a
blueprint provided by Islamic
State to carry out such an at-
tack, according to officials.
Mr. Saipov, who was taken
into custody after being shot
by a New York City police offi-
cer at the scene, later told in-
vestigators “he felt good about
what he had done” and asked
to display an ISIS flag in his
quiring theaters to show the
movie in their largest audito-
rium for at least four weeks.
Ignoring the terms carries an
unusual penalty. If a theater vi-
olates any condition of the dis-
tribution agreement, Disney can
take an additional 5% cut,
bringing the studio’s total haul
to 70% of sales on a movie likely
to gross more than $500 million
at the domestic box office.
The case of “The Last Jedi”
highlights a perpetual but grow-
ing tension between the busi-
ness partners that bring movies
to the public: studios and the-
aters. Negotiations between the
two parties have grown pitched
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Mr. Powell by Saturday, but
people familiar with the pro-
cess had cautioned that he
could change his mind. The
president plans to formally an-
nounce the decision Thursday
before he leaves for a trip to
Asia on Friday.
Reached by phone Wednes-
day, both Mr. Powell and Ms.
Yellen declined to comment. A
Fed spokeswoman also de-
clined to comment.
Please see FED page A2
 Central bank holds rates
steady............................................ A2
hospital room, according to
the federal complaint. He said
he was motivated to commit
the attack after watching a
video in which Abu Bakr al-
Baghdadi, the leader of Islamic
State, questioned what Mus-
lims in the U.S. were doing in
response to the killing of Mus-
lims in Iraq.
The complaint accuses Mr.
Saipov of aiding the Islamic
State terror group and work-
ing with “others known and
unknown” to intentionally kill
and harm people by driving a
rented truck over cyclists and
pedestrians on the bike path.
Prosecutors provided no fur-
ther details on possible accom-
plices, though the Federal Bu-
reau of Investigation said it
Please see ATTACK page A6
ATTACK IN
NEW YORK
 Suspect plotted assault
for weeks.......................... A6
 Argentine friends’ reunion
shattered........................... A7
as Disney has become one of the
most powerful studios in Holly-
wood and theaters have lost le-
verage as box-office sales fall.
Box-office revenue is down 5%
so far this year.
The decline is accelerating
plans at other studios to nar-
row the theatrical window and
make movies available for
home viewing sooner. But Dis-
ney has said it wants to pre-
serve the current model, mak-
ing the studio an even more
indispensable supplier for ex-
hibitors over the long term.
That dynamic has exhibitors
across the country resigning
Please see DISNEY page A4
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip

Republican Plan: Tax People, Not Companies

A
For decades, later years to cope with the less mobile than capital, so dministration officials
Republican tax deficits this round of tax Corporate Tax Rates Feel Tug of Gravity governments tap sales, pay- assert the tax cuts will
reform has cuts would help generate. Most countries, except the U.S., have cut their corporate rates since roll and income taxes. spur so much growth
meant cutting Republicans still want 2000, but many at the same time have raised personal rates. Ireland boasts one of the they will pay for themselves,
the tax rate on lower taxes on the rich, but advanced world’s lowest cor- an argument largely lacking
America’s it’s harder to show that it Corporate rates* Personal rates porate tax rates, but its com- in historical precedent. Con-
highest earners. No longer. matters. Back in 1980, high bined top income and payroll gressional Republicans say
60% 60%
In the bill to be unveiled personal taxes were a plausi- rate rose from 43.6% in 2008 they’ll cut spending, espe-
this week, House Republicans ble disincentive to work. The Japan to 52% last year, while Brit- cially on entitlements. Yet
plan to keep the top personal top rate was 70% and be- France ain’s rose from 41% to 47%, they have shown little appe-
rate at 39.6%, even as the cause brackets weren’t in- 50 50 Canada according to the Organiza- tite to do so.
corporate rate is chopped to dexed to inflation, cost-of-liv- Ireland tion for Economic Coopera- History suggests that big
20% from 35%. It is a tacit ing adjustments kept pushing tion and Development. tax cuts are usually followed
U.S.
admission of something the people into higher brackets. 40 40 Germany While the Republican by tax increases. After Presi-
rest of the world has already Ronald Reagan fixed both, plan lowers most personal dents John F. Kennedy and
U.K.
concluded: It’s better to tax and the top rate has see- tax rates except the top one, Lyndon Johnson reduced
people than capital. sawed ever since; down to it isn’t clear individuals on taxes in 1962 and 1964, taxes
Make no mistake: The 28% in 1988, back to 39.6% 30 30 net would get a tax cut, be- were raised in 1966 and
GOP plan, if it makes it under Bill Clinton, down to cause some tax breaks 1968. President Reagan en-
through Congress, will be 35% under George W. Bush would be repealed. More- acted the largest tax cut in
generous to the rich. Taxes and back up to 39.6% under 20 20 over, if they are getting a history (relative to GDP) in
will be eliminated on estates Barack Obama. cut, it may not last. 1981. He then signed tax in-
and reduced on unincorpo- If the tax system has a It’s just math. Even with creases into law in 1982,
rated businesses. Moreover, problem now, it lies else- no tax cuts, the deficit will 1983 and 1984. President
the top rate will hit fewer where. Since the 1990s the 10 10 rise from 3.6% of economic George W. Bush fared better.
people than it does now, and corporate rate has remained output this year to 5.2% in The tax cuts he enacted in
while the rich will lose some 35% in the U.S. while drop- 2027 as an aging population 2001 and 2003 became per-
breaks, they will be the pri- ping in almost every other 0 0 and health costs inflate the manent in 2013 except for
mary beneficiaries of lower advanced economy. cost of federal entitlements the top rate, which rose.
corporate taxes since they 2000 ’10 2000 ’10 and interest rates slowly When the time comes to

T
own most of the stocks. he economic rationale
Yet the central mission of for lower corporate
tax reform is to catch up to rates is to increase the
the rest of the world, which return on projects and thus to
has already cut tax rates on stimulate hiring and invest-
corporations. The middle- ment. Countries have another
class tax cut dear to Presi- motive: to stop multinationals
dent Donald Trump is sec- from fleeing to tax havens.
ondary. It may also prove Reducing the corporate
short-lived if, as seems tax rate by 10 percentage
likely, taxes get raised in points relative to other coun-
*Combined federal and subnational rates
Source: Organization for Economic Cooperation and Development
tries boosts reported profits
by anywhere from 4% to 22%,
according to a survey of re-
search by Dhammika Dhar-
mapala at the University of
Chicago. Most countries have
concluded “it’s impossible to
THE WALL STREET JOURNAL.
police the shifting of profits,”
says Martin Sullivan, chief
economist of the publication
Tax Analysts. “So if you set
your rate too high you’re go-
ing to lose revenue.”
People, however, are a lot
normalize, according to the
Congressional Budget Office.
The federal debt, now 77% of
gross domestic product, will
rise to 91%. The tax plan
would add $1.5 trillion to
deficits in the coming de-
cade, or some 0.6% a year,
not counting any impact
from higher growth or inter-
est rates.
raise taxes, whose will go
up? Even a Democrat in the
White House would think
twice about tampering with
the corporate rate when
business threatens to up
stakes and leave. Which
leaves personal taxes—per-
haps the very ones now be-
ing cut. If you’re a benefi-
ciary, enjoy it while you can.

FED be the first Fed leader in three

decades without a Ph.D. in
economics. Before joining the
Fed board, Mr. Powell worked
Continued from Page One as an investment banker in
Ms. Yellen was among the New York City, as Treasury un-
five finalists for the position, dersecretary for financial in-
along with Stanford University stitutions in the George H.W.
economics professor John Bush administration, as a part-
Taylor, former Fed governor ner at the Carlyle Group and
Kevin Warsh and National Eco- as a scholar at the Bipartisan
nomic Council Director Gary Policy Center.
Cohn. That background could
Mr. Taylor and Mr. Warsh serve him well, said Aaron
didn’t respond to requests Klein, an economic studies fel-
seeking comment Wednesday. low at the Brookings Institu-
Mr. Cohn’s spokeswoman tion and director of the Center
didn’t immediately respond to on Regulation and Markets.
a request for comment. “He would represent conti-
Mr. Trump said in a video nuity of the Fed system and
ANDREW HARRER/BLOOMBERG NEWS
Central Bank Holds
Rates Steady
The Federal Reserve left
short-term interest rates un-
changed Wednesday, but sug-
gested it remained on course
to lift them before year’s end
amid signs the economy is
gaining momentum.
Officials have penciled in
one more move for 2017 if
the economy stays on track.
The Fed has one more meet-
ing scheduled before the end
of the year, on Dec. 12-13.
The central bank has raised

last week that he had “some- culture but a break from the its benchmark federal-funds
body very specific in mind” for predominance of monetary rate four times since late
the job. “It will be a person policy as the core background 2015, in quarter-percentage-
who hopefully will do a fantas- of the chair,” Mr. Klein said. point steps, to a current
tic job,” Mr. Trump said in a The decision marks the cul- range between 1% and 1.25%.
video posted to Instagram, mination of an unusually pub- “Economic activity has
adding, “I think everybody will lic and drawn-out search for been rising at a solid rate de-
be very impressed.” one of the top economic pol- spite hurricane-related disrup-
Fed officials began raising icy-making jobs in the world. tions,” the Fed said after its
their benchmark federal-funds Mr. Trump upended the two-day policy meeting.
rate in December 2015 after In His Own Words guidance and market June 2016 usually staid selection process Gross domestic product
holding it near zero for seven expectations have diverged, with On Low Rates by openly weighing the pros rose at a 3% annual rate in
years following the financial resulting spikes in volatility. Such “I am often asked why rates and cons of various candidates the third quarter, the Com-
crisis. They voted in June to Jerome Powell has served as situations may be difficult to remain so low now that we are and asking lawmakers, busi- merce Department said Friday.
lift rates to a range between Federal Reserve governor since avoid, given the use of new, near full employment. A big part nesspeople and media person- That followed 3.1% annualized
1% and 1.25% and in October May 2012. Here are samples of unconventional policy tools, of the answer is that, at least for alities for their input. growth in the spring, for the
started the process of shrink- what he has said on important although we always try to the time being, the appropriate Mr. Trump has other oppor- best six-month stretch of
ing the Fed’s bond portfolio. policy issues along the way. communicate policy as clearly as level of rates is simply lower than tunities to reshape the central growth in three years.
“The economy is as close to possible.” it was before the crisis. As a bank. Randal Quarles, his first Fed Chairwoman Janet
our assigned goals as it has June 2013 result, policy is not as stimulative nominee to the Fed’s powerful Yellen, in her most recent
been for many years,” Mr. On Volatility February 2015 as it might appear to be … I expect seven-member board of gover- public remarks, kept the door
Powell said in June. If it con- “Some volatility is On Fed Emergency Programs our economy to continue to make nors, took office in October. open to another rate increase
tinues growing as expected, “I unavoidable, and indeed is a “The evidence as of today is progress. Monetary policy will Three other seats remain this year, saying the “ongoing
would view it as appropriate necessary part of the process very strong that the Fed’s need to remain supportive of open. strength of the economy will
to continue to gradually raise by which markets and the actions generally succeeded and growth, as we work through the Ms. Yellen’s term as a Fed warrant gradual increases.”
rates.” economy adjust to incoming are a major reason why the U.S. challenging global environment.” governor doesn’t expire until But she didn’t say when the
Officials have penciled in information … I want to economy is now outperforming 2024, and she hasn’t ruled out next move was likely.
one more rate increase this emphasize the importance of those of other advanced nations April 2017 staying on in that position af- Market expectations for a
year. But they indicated in data over date … The path of … Given the scale of the Fed’s On Wall Street Regulation ter her term as chairwoman December increase are high,
September such increases are [bond] purchases is in no way actions during the crisis, it has “Some aspects of the new ends. The decision would be and Fed officials have done
likely to end at a lower point predetermined; we will monitor been not only appropriate but regulation are proving unusual, but not unprece- little to dispel them. Several
than they had previously pro- economic data and adjust our essential that these actions be unnecessarily burdensome and dented. Fed Chairman Marriner analysts said the Fed included
jected—at around 2.75%—con- purchases as appropriate.” transparent to the public and should be better tailored to Eccles remained a governor for no surprises in its statement.
siderably lower than where of- subject to close and careful meet our objectives. Some three years after not being re- —David Harrison
ficials have stopped raising June 2014 scrutiny by the Congress. And provisions may not need—may appointed to the top job by
rates in the past. On Fed Guidance that is exactly what happened. not be needed at all, given the President Harry Truman.
Mr. Trump told The Wall “My view is that forward So it is jarring to hear it asserted broad scope of what we’ve put Nominations for all board
Street Journal in July, “I’d like guidance has generally been that the Fed carries out its in place. I will support and I do positions, including chairman THE WALL STREET JOURNAL
to see rates stay low.” effective in providing support for duties in secret and is support adjustments designed and vice chairman, are subject (USPS 664-880)
(Eastern Edition ISSN 0099-9660)
The Fed on Wednesday left the economy at a time when the unaccountable to the public and to enhance the efficiency and to Senate confirmation. (Central Edition ISSN 1092-0935)
short-term interest rates un- federal-funds rate has been its elected representatives. The effectiveness of regulation Mr. Powell should have lit- (Western Edition ISSN 0193-2241)
changed, but signaled it would pinned at its effective lower Federal Reserve is highly without sacrificing safety and tle trouble winning Senate ap- Editorial and publication headquarters:
1211 Avenue of the Americas,
consider lifting them before bound … To be sure, there have transparent and accountable to soundness or undermining proval, but his views could New York, N.Y. 10036
year’s end amid signs the also been times when forward the public and to the Congress.” macro-prudential goals.” clash with those of some Re- Published daily except Sundays and general
economy is gaining momen- publican senators who have legal holidays. Periodicals postage paid at
tum. criticized him for supporting New York, N.Y., and other mailing offices.
Mr. Powell has never dis- meshes with Mr. Trump’s de- them from being burdened ful and relatively dovish ap- the Fed’s easy-money and Postmaster:
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sented on a Fed monetary or regulatory agenda. Mr. Powell with “an ever-increasing proach to monetary policy but postcrisis regulatory policies. Journal, 200 Burnett Rd., Chicopee, MA 01020.
regulatory policy vote and in has suggested softening the checklist.” with somebody who is a card- Some Republicans have All Advertising published in The Wall Street
speeches hasn’t deviated far Volcker rule barring banks “More regulation is not the carrying Republican and who suggested he could face diffi- Journal is subject to the applicable rate card,
from the board’s consensus. from using their own money best answer to every prob- is significantly more inclined cult questions. “I think we copies of which are available from the
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THE WALL STREET JOURNAL.
In Ohio, Drugmakers Fight Price Cap
Industry funded
campaign has spent
$49.1 million to try to
defeat ballot measure
BY PETER LOFTUS
One of the fiercest battles
yet over high drug prices is
playing out in Ohio, where an
approaching ballot referendum
on price caps has unleashed
tens of millions of dollars of
television advertising and
sharp rhetoric on both sides of
the issue.
The Nov. 7 ballot measure
would require state govern-
ment entities, including the
Medicaid health-insurance
program for low-income peo-
ple, to pay no more for pre-
scription drugs than what the
U.S. Department of Veterans
Affairs pays for veterans. Un-
der federal law, the VA buys
drugs at a mandatory 24% dis-
count to regular prices, and
negotiates additional dis-
counts with manufacturers.
A drug-industry-funded
campaign against the measure
has spent $49.1 million on TV
ads and other efforts to try to
defeat it, while the main pro-
ponent has spent $14 million
this year, making this one of
the most expensive ballot cam-
paigns in Ohio or U.S. history,
according to Josh Altic, ballot
measures project director for
political website Ballotpedia.
The campaigns have raised $75
million total, according to Bal-
lotpedia.
“There’s a lot riding on how
the election goes in Ohio” be-
cause it could influence
whether ballot measures tar-
geting drug prices spread to
Costly Campaigns
Ballot measures in U.S. states with most combined campaign contributions since 2006
YEAR MEASURE
2006 California prop. 87
2016
2012
California prop. 61
California prop. 30
2008
2016
California prop. 8
California prop. 56
2006
2017
California prop. 86
Ohio Issue 2
2014 California prop. 46 Increase cap on medical malpractice lawsuits
2009 Ohio amendment 3 Authorize casino construction
2016 California prop. 52
*Figures are total amounts raised by campaigns for and against the ballot measure †Amount not final
Source: Ballotpedia
Hospitals to Defend Drug Subsidies
BY MELANIE EVANS
The Trump administration
said it is slashing a lucrative
pharmaceutical subsidy Medi-
care pays some hospitals,
prompting the American Hos-
pital Association and other
powerful hospital groups to
threaten legal action to block
the move.
In a rule released Wednes-
day evening, the federal
agency that runs Medicare
said it would sharply lower
what Medicare pays for cer-
tain drugs that certain hospi-
tals buy and administer to pa-
New Therapies Mean Tough Choices
BY AMY DOCKSER MARCUS
Results from clinical trials
testing two therapies to treat a
rare disease called spinal mus-
cular atrophy illustrate a grow-
ing dilemma for families as ex-
panding knowledge of genetics
leads to new potential treat-
ments—and tough choices.
Families of children with
rare diseases who once had no
options must now decide
among experimental therapies
that may not offer a cure or
work at all. And going down
one path may preclude partici-
pation in later, more successful
trials or close other options;
researchers typically prefer to
study untreated children.
Two new studies, published
in the New England Journal
of Medicine, report findings
from a gene-therapy trial
sponsored by AveXis Inc., and
a trial of a so-called antisense
therapy, nusinersen, funded by
Biogen and Ionis Pharmaceu-
ticals. The trials enrolled chil-
dren with spinal muscular at-
rophy type 1, the most severe
and prevalent form of the mo-
tor neuron disease. Many chil-
dren with SMA type 1 don’t
* *
other states, Mr. Altic said.
Supporters have proposed sim-
ilar ballot measures in South
Dakota and Washington, D.C.,
for elections in 2018.
The Ohio vote could be
close. Recent polling by the pro
campaign found that 42% of
surveyed voters supported the
measure and 46% were op-
posed—within the poll’s mar-
gin of error—while the rest
were undecided, said Matt
Borges, consultant for the sup-
port campaign.
The Ohio proposal is the lat-
est legislative or ballot effort
in U.S. states to target rising
drug prices, which have con-
tributed to a doubling of U.S.
spending on prescription drugs
since 2003, according to the
Centers for Medicare and Med-
icaid Services.
Maryland this year enacted
a law barring steep price in-
creases for generic drugs,
while Vermont, Nevada and
California have passed laws
requiring companies to dis-
close information to justify
certain price increases.
The organization that pro-
posed the Ohio measure and
gathered enough signatures to
place it on the ballot is Los
Angeles-based AIDS Health-
care Foundation, a nonprofit
provider of medical care for
HIV and AIDS patients. The
foundation has contributed
$14 million this year to the
main group supporting the
measure, Ohio Taxpayers for
Lower Drug Prices, according
to the Ohio Secretary of
State’s office. The foundation
also proposed the California
measure that failed last year.
Supporters say the price cap
would save Ohio taxpayers
$400 million a year. Michael
DESCRIPTION
Impose severance tax on oil production
Cap prices state pays for prescription drugs
Raise sales and income taxes
Eliminate right of same-sex couples to marry
Increase tobacco tax
Increase cigarette tax
Cap prices state pays for prescription drugs
Require voter approval of changes to hospital fee uses
tients through the program.
The program, known as
340B, was created in 1992 and
was designed to help hospitals
with large numbers of unin-
sured patients. It has grown
rapidly in recent years.
Hospitals eligible for the
program buy drugs from phar-
maceutical companies at a
steep discount, and are cur-
rently reimbursed by Medicare
at a rate that is 6% above what
the average national sale price
for that drug is. Hospitals
keep the difference, which
they use to finance operations
or expand services to patients,
Valerie and Eric White had to choose whether to try to enroll
Henry, who is almost 2, in a gene-therapy trial or a drug study.
survive past the age of 2.
Both therapies aim to in-
crease production of a crucial
protein necessary for the
nerve cells in the spinal cord
and brain to work, with the
aim of improving motor func-
tion and survival.
In the nusinersen study of
122 infants, a significantly
higher percentage of infants
who received the drug showed
improvement compared with
infants who didn’t. The Food
Thursday, November 2, 2017 | A3
U.S. NEWS
OHIO TAXPAYERS FOR LOWER DRUG PRICES
A commercial supporting an Ohio ballot proposal to control drug prices depicts the pharmaceutical industry as a bully in a boxing ring.
Weinstein, president of the crease for Mylan NV’s EpiPen
AIDS Healthcare Foundation, emergency allergy treatment. " . . .T H E M O S T F L E X I B L E O F T H E
said in an interview he is try- Mylan spokeswoman Julie U.S. JET MEMBERSHIP PROGRAMS"
ing to combat “greedy pricing Knell said the company has Conklin & de Decker
by the drug companies” via a provided free EpiPens to some
ballot measure because “it Ohio schools, and its generic
hasn’t really been possible to medicines have saved money
move any significant legislation in Ohio.
to put a brake on the pricing.” Sen. Bernie Sanders (I., Vt.)
One ad supporting the ballot appears in another ad sup-
measure features mothers dis- porting the measure, as does
cussing the sharp price in- Max Cleland, a former Demo-
cratic senator from Georgia
and a disabled Vietnam vet-
eran who accuses drug compa-
nies of running false ads
against the measure.
*AMOUNT, IN MILLIONS The opposition campaign
$156.3 says the proposal would cause
companies to raise drug costs
$128.3
$120.5
for people not covered by Ohio F LY
government health programs to
$106.7
$106.5
make up for revenue lost to the
price cap. And companies would WITHOUT
be less willing to offer the VA
$83.3
$75.0†
additional discounts beyond the
mandatory level if they had to LIMITS
provide the same discount to
$72.9 Ohio government entities, Dale
$72.9 Butland, communications direc-
tor for the industry-funded J e t C a r d by Air Partner
$71.8
campaign, Ohioans Against the
Deceptive Rx Ballot Issue, said The worldwide private jet program
THE WALL STREET JOURNAL. in an interview.
that’s all about you. With 100%
fully refundable flight credit,
no blackout dates, flight hours
that never expire and the ability to
a p p l y f u n d s t o o n - d e m a n d c h a r t e r.
the AHA has said. Medical Colleges and Amer-
But critics of the program ica’s Essential Hospitals re- Call us now 888 - 359 - 4349
say the significant margin on sponded swiftly with a prom- Or visit www.airpartner.com/wj
the drugs encourages hospitals ise of legal action. The groups
to overuse certain drugs or believe the Centers for Medi-
choose high-priced options. care and Medicaid Services, or
The White House said the CMS, “overstepped its statu- Air Partner is not an air carrier. It acts as agents for its
customers in arranging flights operated by air carriers
new rule would lower drug tory authority with this pol- under FAR Part 135 (or foreign equivalent).
spending next year by Medi- icy,” Bruce Siegel, president
care and its enrollees by $1.6 and chief executive of Amer-
billion. “Medicare is taking ica’s Essential Hospitals, said
steps to lower the costs Medi- in a statement.
care patients pay for certain Hospital groups also plan to
drugs,” said Seema Verma, ad- lobby Congress to halt the
ministrator of the agency that new rules, Tom Nickels, execu-
oversees Medicare. tive vice president of the AHA
The Chicago-based AHA, said, calling the new rule “ill-
the Association of American advised and unfortunate.”
AveXis is enrolling patients
in a new trial of the therapy at
16 sites in the U.S., which it
hopes will lead to FDA ap-
proval. But any child who par-
ticipated in the nusinersen
trial or takes Spinraza isn’t el-
igible to enroll in the new
gene-therapy trial, says Sean
Nolan, president and chief ex-
ecutive of AveXis.
Eric and Valerie White of
AMY JO PHOTOGRAPHY
Cumming, Ga., say when their
son Henry was diagnosed with
SMA in January 2016, the pros-
pect of gene therapy was entic-
ing, but there were no open
slots or guarantee Henry would
qualify for a future one. Enroll-
ing in the nusinersen trial
meant a chance that Henry
and Drug Administration ap- would be randomly placed in a Trump® International Hotel Waikiki
proved the drug, sold as Spin- trial arm that didn’t receive Forbes Travel Guide Five-Star Hotel Award 2015 - 2017
raza, in December 2016. Spin- the drug. “It was extremely un-
raza requires repeated nerving,” says Mr. White.
administration via spinal tap They decided the trial was
every four months. the best option. Henry, who
In the gene-therapy trial, will be 2 at the end of the
which enrolled 15 infants, all month, doesn’t walk and has NEW YORK | CENTRAL PARK & SOHO CHICAGO LAS VEGAS WAIKIKI
of the children were alive as of other issues associated with MIAMI WASHINGTON, D.C. VANCOUVER PANAMA
August but the 12 children in the disease. But his parents say IRELAND | DOONBEG Estate Collection WINERY | CHARLOTTESVILLE
the highest-dose group fared he now rolls, moves his arms SCOTLAND | ABERDEEN Coming Soon BALI LIDO
the best and achieved various and legs, “gets into trouble like T R U M P H OT E L S .CO M
major milestones, such as sit- any 2-year-old” and, most im-
ting up, the paper reported. portant of all, is still alive.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Thursday, November 2, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X THE WALL STREET JOURNAL.

U.S. NEWS

Republicans Mull ACA Mandate Repeal

Some in GOP push to surance because of the man-
date also get government sub-
rescind health law’s sidies, and if the mandate were
insurance requirement repealed and those people
didn’t obtain coverage, the
as part of tax overhaul government would no longer
be paying for their subsidies.
BY STEPHANIE ARMOUR It would also reduce the num-
AND KRISTINA PETERSON ber of people on Medicaid.
The latest developments un-
Republicans may seek to re- folded on the first day of this
peal the Affordable Care Act year’s open enrollment period
requirement that most Ameri- for the ACA, which ends on
cans must have insurance cov- Dec. 15.
erage or pay a fine as part of Consumers began signing
their tax overhaul package, up for 2018 health plans at a
part of a push to undo or delay steady though not overwhelm-
parts of the health law in the ing clip, according to several
aftermath of the failure of a enrollment assisters across the
broader repeal effort. country contracted through
President Donald Trump, in the ACA to help people sign up
posts on his Twitter account for coverage.
Wednesday, threw his support In their tax overhaul, Re-
behind the proposal. publicans are scrambling to
“Wouldn’t it be great to Re- find ways to pay for the cost
peal the very unfair and un- of lowering both individual-
popular Individual Mandate in and corporate-tax rates. Their

JOE RAEDLE/GETTY IMAGES

ObamaCare and use those sav- proposal can add no more
ings for further tax cuts…for than $1.5 trillion over 10 years
the Middle Class. The House to the federal budget deficit to
and Senate should consider comply with Senate proce-
ASAP as the process of final dural rules.
approval moves along. Push House Republicans said re-
Biggest Tax Cuts EVER,” Mr. pealing the individual mandate
Trump wrote. People spoke with an insurance agent on Wednesday in Miami as they shopped for insurance under the Affordable Care Act. would help with their search
Republican leaders in both for revenues to offset the cost
chambers have been wary of of the tax cuts.
letting the political dynamics Opioid Report Calls the Opioid Crisis, headed by moved from federal patient Trump last week declared a “We need to have the pay-
surrounding health care inter- New Jersey Gov. Chris Christie. satisfaction surveys for physi- “public health emergency,” a de- fors that we can get,” said Rep.
fere with passing a rewrite of For New Initiatives The commission also said cians and hospitals “so that scription that doesn’t include Dennis Ross (R., Fla.) But Mr.
the tax code, but the presi- the government should increase providers are never incentivized additional money but is aimed Ross said he anticipated that
dent’s comments revived seri- its oversight of large employers’ for offering opioids to raise at spurring federal agencies to repealing the individual man-
ous consideration of including WASHINGTON—The federal health plans and their compli- their survey score.” take steps to fight drug abuse. date could spark pushback
a repeal of the individual man- government should set up drug ance with requirements to treat An earlier report by the Sen. Maggie Hassan, (D.- from some states.
date as part of the House GOP courts across the country, re- substance abuse as they would commission urged President N.H) said Mr. Trump should do While most Republicans in
tax bill. train medical prescribers on opi- other illnesses. It said the Edu- Donald Trump to declare the more to make sure more both chambers want to repeal
Republicans are also weigh- oid use and reduce incentives cation Department should work abuse of opioids to be an emer- money goes to fighting opioid the individual mandate, many
ing the option of trying to in- for doctors to offer the power- with states to upgrade schools’ gency. Mr. Trump had initially addiction. are hesitant about attaching it
clude the individual mandate ful painkillers, a high-profile drug-abuse programs, and that suggested he would declare a The White House and Mr. to the tax bill.
in a sweeping year-end legisla- presidential commission on opi- the federal government should national emergency, a designa- Christie both say they want “I’d like to see us repeal
tive package, which is increas- oids said Wednesday. engage with states to expand tion that might have carried a Congress to appropriate addi- the Obamacare individual
ingly likely to contain a long The proposals were among access to naloxone, an over- requirement for federal funding. tional opioid funding, potentially mandate. I think there’s bet-
list of unrelated items on Con- 56 recommendations from the dose-reversal drug. Instead, in a White House as part of a broad year-end ter places to do it,” said Rep.
gress’ to-do list. President’s Commission on The commission said ques- speech pledging to fight the spending deal. Tom MacArthur (R., N.J.) “I
White House press secre- Combating Drug Addiction and tions about pain should be re- “plague” of drug abuse, Mr. —Louise Radnofsky don’t want to make this bill
tary Sarah Huckabee Sanders more complicated than it al-
said Wednesday that the ready is.”
White House favors repealing through tax cuts,” she said. age. “My case, which is making He said he has been talking deficit by about $400 billion, Mr. Trump could also opt to
the individual mandate, but Sen. Tom Cotton (R., Ark.) a lot of headway, is this with key members of both according to a calculation from end the individual mandate on
not at the expense of passing said Wednesday that repealing doesn’t make the tax bill chambers. the nonpartisan Congressional his own.
tax legislation. the mandate would help the harder to pass. It makes it eas- Part of the repeal’s allure is Budget Office. That is because —Michelle Hackman
“We’re focused on pushing math on the tax overhaul pack- ier to pass,” said Mr. Cotton. that it could reduce the federal many individuals who get in- contributed to this article.

Realtors Launch Blitz to Save Popular Deductions

BY JULIE BYKOWICZ Among their goals: preserv-
ing deductions for mortgage
The long-awaited House Re- interest and property taxes,
publican tax legislation due both of which Republican law-
out Thursday will touch off a makers have taken aim at as a
lobbying frenzy as industries way to pay for lowering cer-
fight to preserve pet deduc- tain tax rates.
tions. But the nation’s real-es- The Realtors recently de-
tate agents already are veter- ployed personalized digital ad-
ans of the battle. vertisements in every district
After House Speaker Paul of House Ways and Means
Ryan (R., Wis.) warned last Committee members asking
year that he may not be able constituents to remind the
to fully save tax incentives lawmakers not to “let tax re-
they view as crucial to their form become a tax increase
industry, members of the Na- for middle class homeowners.”
tional Association of Realtors The association will expand
started developing an action that effort to Senate Finance
plan, the group’s officials said. Committee members’ states by
the end of the week, the come from all parts of the Not only does the associa- last major tax rewrite, signed
group’s officials said. The 15- country.” tion have 25 registered lobby- by President Ronald Reagan in
second online clips show im- “The Realtors are small- ists, according to federal lob- 1986, ended the ability of
ages of families laughing and business people, there are a bying records, but it boasts a home developers to deduct
playing in front of tidy subur- lot of people in both parties, membership of more than one real-estate losses against other
ban houses. for a business group they are million, many of whom re- income.
Realtors are among the pretty diverse,” Mr. Brown spond to the association’s calls The industry later argued
most influential advocacy said. “They have a lot of indi- to action. that that helped lead to a
groups because they are bipar- vidual personal relationships “With the narrow margin of cooler housing market.
tisan, mostly single-minded with a lot of members of Con- Republican control of the Sen- “They were the ground-zero
and work for a valuable na- gress.” ate, a group like that may have industry attacked in 1986, and
tionwide voting bloc: home- The National Association of an awful lot of leverage to a lot of people have long mem-
owners. Realtors has spent about $32 shape what happens on taxes,” ories on that,” said Mr. Gould,
Ohio Sen. Sherrod Brown, a million on lobbying so far this said Jim Gould, an indepen- who was a Senate aide at the
Democrat on the Finance Com- year and is routinely a top- dent tax consultant and a lob- time and later chief counsel
mittee, said the Realtors’ lob- three federal lobbying byist for most of the past 25 for the Senate Finance Com-
bying effort is notable on Cap- spender, according to the years. mittee.
itol Hill “because it’s mostly nonpartisan Center for Re- Helping propel the real-es- —Natalie Andrews
not [from] Washington, and sponsive Politics. tate industry’s approach: The contributed to this article.

FROM PAGE ONE

DISNEY Rise of the Empire

Walt Disney enjoys a dominant position in the box-office market
despite releasing fewer films than other major Hollywood studios.
Continued from Page One
themselves to a harsh business WALT DISNEY MARKET SHARE
reality: If you want to play Dis- 25%
ney’s blockbuster movies, get
used to Disney’s rules. 20
PHOTO BY HANNAH PETERS/GETTY IMAGES FOR DISNEY

“They’re in the most power-

ful position any studio has 15
ever been in, maybe since
MGM in the 1930s,” said one 10
film buyer who books movies
in theaters across the country. 5
A Disney spokesman de-
0
clined to comment on the ne-
gotiations. 2011 2012 2013 2014 2015 2016 2017*
The studio’s slate of surefire NUMBER OF DISNEY MOVIES RELEASED THAT YEAR
hits this year has included
“Beauty and the Beast” and
“Guardians of the Galaxy Vol.
2,” with “Thor: Ragnarok” *As of October 30

coming this weekend. ‘The Last Jedi’ is already drumming up excitement among fans, like this woman in New Zealand. Source: Box Office Mojo THE WALL STREET JOURNAL.
Last year, with just 13 new
releases, Disney accounted for saying the company’s dispro- rather than some studios’ prac- Previous “Star Wars” install- mastime. Soon after the “Last a $200 million movie.
26% of total domestic box of- portionate share of ticket sales tice of beginning a split at a ments gave Disney 64% of ticket Jedi” opens on Dec. 15, such Disney’s terms on “Last
fice, according to Box Office and four-week hold make little high figure and then lowering it sales and included four-week movies as Sony Pictures Enter- Jedi” kick in if the movie col-
Mojo. The No. 2 studio, Time economic sense—especially in in subsequent weeks. “When holds, and other releases from tainment Inc.’s “Jumanji: Wel- lects more than $500 million in
Warner Inc.’s Warner Bros., had small towns. [studios] get much bigger than the studio usually require a min- come to the Jungle” and Twen- the U.S. and Canada, which box-
a 17% market share with 23 “There’s a finite number of the other guys, that’s when all imum of two weeks of screen- tieth Century Fox’s “The office prognosticators say is a
movies. Disney is expected to moviegoers in my market, and these wacky rules come into ings. But Disney’s 5% penalty for Greatest Showman” will begin near certainty. The studio’s first
top the ranking this year, too. I can service all of them in a place,” said Mr. Akin. failing to meet terms on “Last jockeying for screen times. Rep- installment of the space opera,
Disney’s string of hits in re- couple of weeks,” said Lee Disney’s rules on “Star Jedi” is unusual. The charge will resentatives for Sony and Fox “The Force Awakens,” became
cent years—fueled by its ac- Akin, who operates a single- Wars” begin before tickets are be implemented for various vio- didn’t immediately respond to the highest-grossing domestic
quisition of Marvel Entertain- screen theater in Elkader, Iowa available online, with the stu- lations, including if a theater request for comment. Twenti- movie of all time, collecting
ment in 2009 and Lucasfilm in (population: 1,213). dio outlining presale terms to pulls even one “Star Wars” eth Century Fox’s owner, 21st $937 million in 2015.
2012—gives it sway over the- If he were to sign up for the theaters in contracts that are screening from its schedule or Century Fox Inc., and Wall Exhibition executives have
ater owners, many of whom movie under Disney’s terms, individually watermarked to begins marketing the movie be- Street Journal parent News already promised impatient in-
described the studio as exer- Mr. Akin said he would be stuck prevent leaks. fore Disney gives the go ahead, Corp share common ownership. vestors the movie will help bal-
cising unrivaled control over playing “Last Jedi” to near- Most theatrical releases according to theater operators. Of course, most exhibitors ance out a summer of duds.
every detail of a film’s release. empty auditoriums toward the send about 55% of ticket sales The four-week hold in a the- make more money on conces- Adam Aron, chief executive of
Few operators can afford to end of a monthlong run while back to studios, though the av- ater’s largest auditorium, mean- sion sales than box office, and No. 1 exhibitor AMC Entertain-
turn away a Disney windfall. still giving Disney 65% of those erage split is about 60% on ma- while, has frustrated distribu- a theater receiving 35% of ment Holdings Inc., called “Last
But some independent theaters paltry sales. The studio is ap- jor hits. Disney has deals with tion executives at rival studios ticket sales on a hit that Jedi” a “gift from heaven” ear-
have decided against screening plying the 65% split across all some exhibitors that give it less that also have major releases grosses $700 million fares bet- lier this year, and major exhibi-
“Last Jedi” when it is released, weeks of the film’s release, than 65% on “Last Jedi.” hitting theaters around Christ- ter than one receiving 50% on tors still see it as such.
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THE WALL STREET JOURNAL. Thursday, November 2, 2017 | A5

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A6 | Thursday, November 2, 2017 * ***** THE WALL STREET JOURNAL.

TERROR IN NEW YORK CITY

Suspect Plotted for Weeks, Officials Say In the seven years since Say-
Tracking the Defendant fullo Saipov left Uzbekistan for
The suspect in the attack on lower Manhattan, the U.S., the 29-year-old has
Sayfullo Saipov, is originally from Uzbekistan and lived in at least three states,
came to the U.S. in 2010 under a visa lottery started a family and began fol-
program. A look at his movements on the day of lowing radical Islamic teach-
the attack, and his ties elsewhere in the U.S. ings, law enforcement said.
By Joseph De Avila,
3 miles
Shibani Mahtani
and Thomas
MacMillan
NEW JERSEY
The suspect’s home in Paterson, N.J.
On Tuesday afternoon, police
2:43 p.m. said Mr. Saipov rented a Home
80
Mr. Saipov exits the George Depot truck in New Jersey,
Washington Bridge into NEW YORK drove over the George Washing-
2:06 p.m. 1 NYC and drives southbound ton Bridge and then accelerated
Mr. Saipov rents a large vehicle on West Side Highway at high speed down a Manhat-
BRONX
from Home Depot in Passaic, N.J.
2 95
tan bike lane taking aim at cy-
clists and pedestrians. Eight
people were killed and 12 oth-
R.
Department or the Federal Bu- Leaders of the Islamic Soci-
reau of Investigation. But it ap- ety of Akron and Kent, an Is-
pears that he may have been lamic community center and
connected to individuals who mosque a mile from Mr.
have been subjects of investiga- Saipov’s former home, de-
tions, officials said. scribed him as someone who
Mr. Saipov’s neighbors in kept to himself and wasn’t par-
Tashkent described him as a ticularly social. He never asked
friendly person who hadn’t ex- questions at sermons, the Is-
pressed radicalism, according to lamic Society’s leadership said,
an official statement from the and didn’t have a fully grown
Uzbek government. beard at daily prayers.
He finished a professional “No religion or community
college in 2005 and studied at teaches such hate and disregard
the Tashkent Financial Institute for life,” said Faheem Sheikh,
from 2005 to 2009; after gradu- the center’s president.
ating, he worked as an accoun- Azam Haque, who has volun-
tant at the Sayokhat Hotel in teered at the center, said he fre-
Tashkent, the statement said. quently saw Mr. Saipov at the
“He was brought up in a center’s mosque in the years he
prosperous family,” the state- lived in Ohio. He said he wasn’t
ment said. very social, and would “come

1,000 feet NYPD 1st Precinct 95 ers were injured. in, pray and dash off after that.”
on

Two officers respond, Law-enforcement officials Some in the area’s small but
ds

joined by a third at the scene said that Mr. Saipov had growing Uzbek community,
Hu

Mr. Saipov acted in

ute

95 planned the deadly drive for though, remember him as

Attack ro

MAN HATTAN
weeks and that he did it in the the name of Islamic someone who was hotheaded.
West St.

Stuyvesant name of Islamic State. A hand- Mr. Saipov and his family
High School 3:04 p.m. written note in Arabic was
State, according to moved into a brick building
MANHATTAN
Mr. Saipov’s vehicle enters a
bike lane at West Street
found near the truck stating law enforcement. with several apartments in Pat-
that Islamic State would endure erson, N.J., about a year ago,
and Houston Street
School bus 3 forever, police said. said neighbor Altana Dim-
CCrashed truck Mr. Saipov, who worked in itrovska. He and his wife lived
4 3:08 p.m.
Cha More than a dozen 911 calls report the U.S. as a truck driver and When he arrived in the U.S., with three children, two girls
mb
ers people down, a school bus accident Uber driver after training as an he stayed with a family in Cin- and a baby boy, she said.
St. and a man with a gun accountant in his home city of cinnati in a tidy brick two-story Mr. Saipov began plotting his
Tashkent, Uzbekistan, had dis- townhouse off a busy road. attack in recent weeks, accord-
played few signs of his emerg- Bekhzod Abdusamatov, 22, ing to a criminal complaint filed
Ohio ing radical tendencies, accord- whose family put up Mr. Saipov, by federal prosecutors.
First came to Cincinnati from Uzbekistan. Lived ing to interviews with his said he was puzzled that Mr. He practiced making turns
in Cuyahoga Falls, where he married his wife. friends and neighbors. Saipov was accused in the at- with a Home Depot truck ear-
Missouri Kobiljon Matkarov, 37 years tack. lier in October, according to the
Highway Patrol arrested Mr. Saipov after a old, said he met Mr. Saipov “I was very, very surprised,” complaint.
about five years ago in Fort My- Mr. Abdusamatov said. Mike Kawská, 25, a food de-
warrant was issued following his failure to
Ohio N.J. ers, Fla., where they bonded be- In 2013, Mr. Saipov married livery man from Clifton, N.J.,
appear in court for a 2015 traffic citation.
cause both are from Uzbekistan. Nozima Odilova in Cuyahoga said he saw Mr. Saipov eating
Mo. He pleaded guilty in November 2016.
Mr. Matkarov described Mr. Falls, Ohio, near Akron, accord- at Dunkin’ Donuts and talking
Florida Saipov as a mild-mannered per- ing to a marriage-license certif- to himself, distraught, in Arabic,
Lived in Tampa and Fort Myers. son who wasn’t violent and icate. Ms. Odilova couldn’t be saying “‘I hate America, I’m fed
didn’t speak about terrorism. reached to comment. up with America.’ ”
New Jersey “I know him from the good They lived in the Water’s In interviews with law-en-
Mr. Saipov most recently lived in Paterson with his side,” Mr. Matkarov said. “I Edge apartments on Americana forcement officials after the at-
wife and children. A neighbor had seen him park a know him as a good guy.” Drive in Cuyahoga Falls, Ohio, tack, Mr. Saipov said he felt
Fla. Home Depot truck on the street intermittently in Law-enforcement officials where there is a sizable Uzbek good about what he had done
the past several weeks. said Wednesday Mr. Saipov had community and many, like Mr. and asked to display an Islamic
never been the subject of inves- Saipov, are involved in the State flag in his hospital room,
Sources: NYPD (attack details); public records and court filings (suspect details); Google Earth THE WALL STREET JOURNAL. tigation by the New York Police trucking business. according to the complaint.

First Confusion, Then Horror at Scene of the Rampage

BY MIKE VILENSKY rounded by police officers.
AND REBECCA DAVIS O’BRIEN “I was scared so I bowed
down a little bit,” he said.
College student Tawhid Ka- “One of the students on the
bir was walking a footbridge bridge started screaming, ‘Did
over the West Side Highway in you see the cop just shot that
Manhattan when he looked be- guy? Oh my God.’ ”
low and saw a man who ap- Similar scenes of shock and
peared to be holding two guns horror took place around
near a mangled truck. lower Manhattan on Tuesday
“At first I thought it was a afternoon as one of New York
prank,” said Mr. Kabir, a 20- City’s busiest residential and
year-old student at the Bor- commercial neighborhoods
ough of Manhattan Commu- was transformed by a deadly
nity College, who began truck attack.
filming. “Then I heard five Eight people died when the
gunshots.” truck rammed into pedestrians
Mr. Kabir said when he and cyclists on a roughly mile-
looked at the highway again long stretch of a bike path
he saw the apparent gunman along the Hudson River. The
lying on the pavement sur- driver then got out of the car
with a pellet and paintball gun
before he was shot by a New
York Police Department offi-
cer, authorities said.
A dozen people were in-
jured, including the suspect,
officials said.
Witnesses described mo-
ments of confusion after they
saw the truck and bodies or
heard shots.
When Thomas Kendrick was
jogging along his usual path
just after 3 p.m. Tuesday, he
noticed a crying girl in his pe-
ripheral vision and figured it
was a routine bike accident.
Then a woman flagged down
the 36-year-old lawyer and
told him to call the police.
“I ripped out my head-
phones and dialed 9-1-1,” Mr.
Kendrick said.
He then came across three
motionless bodies. “I said, ’If
you can hear me, help is on
the way,’ and there was no re-
sponse,” he said.
Schools went into lockdown
as students called anxious par-
ents.
Inside Stuyvesant High
School, students were told no
one could enter or exit the
school, said Tahseen Chowd-
hury, a 17-year-old student
there. Mr. Chowdhury said
students called their parents
to reassure them they were all
right.
At the nearby Pixel Acad-
emy, a school for young chil-
dren in the area, staff member groups of two, chatting,” Mrs.
Ian Pearson said one of his col- Piedrabuena said. Her husband
leagues heard there was a gun- survived because he was at the
man on the loose. That build- back of the group, close to the
ing, too, went into lockdown. flower bed in the median of
The status of the people the road. The truck hit the cy-
who were injured wasn’t clear clists on his right, missing him
Wednesday. by 20 centimeters, she said.
Ariel Benvenuto was in New This was the first time the
York with a group of 10 group had traveled abroad to-
friends from Argentina, biking gether, and they had plans to
on the path when the truck ac- visit Central Park and bike
celerated into them, Mr. Benv- over the Brooklyn Bridge.
enuto’s wife, Cecilia Piedrab- By Wednesday, the neigh-
uena, told an Argentine radio borhood had begun returning
interviewer on Wednesday. to normal but people remained
Mrs. Piedrabuena said her rattled.
husband had called her late Mr. Kabir was back in lower
Tuesday to say five of his Manhattan for an 8 a.m. class,
friends were dead. but “there were a lot of ab-
The men “were biking in sences today,” he said.

ATTACK ney for the Southern District of

New York, said at a news con-
ference Wednesday night that
Mr. Saipov told investigators he
ington Bridge, which spans
from New Jersey to upper
Manhattan, at 2:43 p.m.
He then drove the truck
Continued from Page One had been planning the attack along the West Side of Man-
had located a second person of for two months. Mr. Saipov hattan, passing multiple
interest related to the attack. also admitted that he rented a densely packed tourist areas,
MARK LENNIHAN/ASSOCIATED PRESS, SHANNON STAPLETON/REUTERS (LEFT)

The FBI is interviewing Muk- truck on Oct. 22 to practice the
hammadzoir Kadirov, a 32- turns he would make on Tues-
year-old Uzbek man, according day, authorities said.
to a senior counterterrorism After obtaining a search
official. The official said Mr. warrant for Mr. Saipov’s cell-
Kadirov is currently being phones, officials said, they
questioned by federal authori- found that one phone had
ties because he is one of the about 90 videos related to
few people investigators found ISIS, including a beheading
to be a friend of Mr. Saipov. video and a video that appears
When Mr. Saipov appeared to show ISIS fighters running
in Manhattan federal court over a prisoner with a tank.
Wednesday evening, he was The complaint said Mr.
pushed in a wheelchair, Saipov began plotting the at-
dressed in a light gray top and tack about a year ago. Mr.
pants, with his hands and feet Saipov chose Halloween for
shackled. Magistrate Judge the attack because he believed
Barbara C. Moses asked Mr. there would be more people
Saipov to confirm that a Rus- on the street, according to
sian translator was relaying prosecutors.
her instructions to him Mr. Saipov’s plan was to
through a pair of small head- use the truck to strike pedes-
phones. “Yes, ma’am,” Mr. trians near the West Side
Saipov said, in English, in a Highway in Manhattan and
strong clear voice. Throughout then proceed to the Brooklyn
the brief proceeding, he nod- Bridge. He “wanted to kill as
ded several times, and an- many people as he could,” the
swered aloud in English. complaint said.
A court-appointed lawyer, Mr. Saipov—a legal perma-
David Patton of the Federal nent U.S. resident who came
Defenders of New York, said to the U.S. in 2010—was inter-
he wasn’t seeking to have Mr. viewed by police officials
Saipov released on bail at this Tuesday night at Bellevue
time. He didn’t enter a plea, Hospital, said John Miller, the
and a preliminary hearing was New York Police Department’s
set for Nov. 15. deputy commissioner of intel-
In a tweet late Wednesday, ligence and counterterrorism.
President Donald Trump said The attack is the first inci-
Mr. Saipov should get the dent of Islamist-linked terror
death penalty. on U.S. soil during Mr.
Mr. Saipov, who lives in Trump’s presidency. Mr.
Paterson, N.J., had been in the Trump, who campaigned on
hospital since the attack, after promises to clamp down on
the New York City police offi- immigration from Muslim-ma-
cer shot him in the abdomen. jority nations, on Wednesday
Joon Kim, acting U.S. attor- called for an end to the visa-
lottery program that brought
Mr. Saipov to the U.S.
Mr. Saipov was admitted to
the U.S. through a program
that randomly awards 50,000
green cards to foreigners each
year.
The NYPD has been on
heightened alert for terrorists
using trucks since dozens
were killed in a July 2016 ve-
hicle attack in Nice, France.
The department now regularly
uses large sand trucks to
guard parade routes and other
large gatherings. Since the
to a leafy patch of Manhattan
along the Hudson River.
Police say the suspect then
turned his truck onto a popu-
lar bike path, increased his
speed and rammed bicyclists
and pedestrians.
After just a few minutes,
the truck returned to the
street, striking a small school
bus with students aboard, po-
lice said. The suspect emerged
from the truck, shouted, bran-
dished a pellet and a paint gun
and was shot and wounded by
Ryan Nash, a 28-year-old po-
lice officer.
Mr. Saipov seemed to fol-
low the instructions laid out in
a November 2016 issue of Ru-
miyah Magazine, an ISIS pro-
Above, flowers on Wednesday paganda outlet that is often
were placed for victims of the referenced by NYPD counter-
attack on a bike path in lower terrorism officials.
Manhattan. The Home Depot The excerpt, called “Just
truck used in the rampage, left, Terror Tactics,” recommends
was removed from the crime obtaining a “load-bearing
scene by authorities. truck” that is “reasonably fast
in speed” and “double-
Sept. 11, 2001, attacks, there wheeled, giving victims less of
have been 25 terrorist known a chance to escape being
plots against the city, Mr. crushed by the vehicle’s tires.”
Miller has said. The magazine also advises
In Tuesday’s attack, Mr. against trucks with trailer
Miller, said the suspect rented compartments, “which cause
an inexpensive flatbed pickup the driver to lose control.”
truck from a Home Depot in Mr. Saipov, the NYPD’s Mr.
northern New Jersey, just a Miller said, “appears to have
few miles from his home, followed almost exactly to a T
shortly after 2 p.m. The sus- the instruction that ISIS put
pect, who worked as a driver out on social media channels.”
for Uber Technologies Inc., —Mara Gay,
drove the truck roughly 25 Thomas MacMillan,
miles, and a license-plate Mike Vilensky,
reader recorded the vehicle and Nicole Hong
exiting from the George Wash- contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Trump
Seeks End
Of Visa
Lottery
BY ALICIA A. CALDWELL
AND LAURA MECKLER
A marginal visa program
once tied to efforts to help
Irish migrants is taking center
stage in the immigration de-
bate after the deadly terror at-
tack in New York City, with
the president calling for the
program’s elimination.
The man accused of driving
a rented truck through a
crowd of cyclists and pedestri-
ans emigrated from Uzbeki-
stan in 2010 after winning the
Diversity Visa Lottery, accord-
ing to the U.S. Department of
Homeland Security. The pro-
gram, also known as the
green-card lottery, randomly
awards 50,000 visas annually
to foreigners around the
world.
“I’m going to ask Congress
to immediately initiate work
to get rid of this program,”
President Donald Trump said
at the White House on
Wednesday. “Diversity lottery.
Sounds nice. It’s not nice. It’s
not good. It hasn’t been good.
We’ve been against it. So we
want to immediately work
with Congress on the Diversity
Sayfullo Saipov came
from Uzbekistan in
2010 through the
diversity lottery.
Lottery Program, on terminat-
ing it, getting rid of it.”
Police in New York said of-
ficers shot Sayfullo Saipov, 29
years old, after he crashed the
rented truck into a school bus.
Eight people were killed and
about a dozen others injured
in the first deadly terror at-
tack in New York since the
Sept. 11 attacks.
Mr. Saipov is a legal perma-
nent resident, according to
New York City police, meaning
he would have been eligible to
apply for citizenship.
Democrats have defended
the diversity lottery as a way
to ensure that immigrants to
the U.S. come from a range of
nations, and they have argued
there is no evidence that these
immigrants are any more
likely to be criminals or ter-
rorists than others.
Republicans have opposed
the program, arguing that it is
vulnerable to fraud, offers a
pathway for terrorists into the
U.S., and that visas should be
reserved for those bringing
needed skills.
“Those in the world who
wish us harm can easily en-
gage in this statistical gamble
with nothing to lose,” Rep.
Bob Goodlatte (R., Va.), chair-
man of the House Judiciary
Committee, said Wednesday.
“Our immigration policy
should be based primarily on
our national needs, security,
and economics and not in part
on an arbitrary system.”
In 2011, Mr. Goodlatte
moved legislation to end the
program out of his committee,
but the bill was never was
considered by the full House.
This year, Mr. Trump em-
braced a Senate proposal to
eliminate the diversity lottery
as well as some family-based
immigration as part of an ef-
fort to reduce and overhaul le-
gal immigration.
The program was created in
1990 as part of a broader im-
migration bill that had biparti-
san support in the both the
House and Senate. Lottery
winners must be eligible to
come to the U.S. and have fin-
ished high school and have
two years of experience in a
job that requires two years of
training or experience. Unlike
most other immigrant visa ap-
plicants, lottery winners don’t
have to have family or employ-
ment ties to the U.S.
Just over 4,000 people
from Uzbekistan won the di-
versity lottery for the 2010
budget year, according to
State Department statistics.
* * * * *
Attack Shatters Friends’ Reunion
ROSARIO, Argentina—Just
after sunset Tuesday, Cecilia
Piedrabuena got a frantic call
from her husband, saying
something terrible had hap-
pened to a group of friends
who had flown to New York to
celebrate the 30th anniversary
of their high-school gradua-
tion.
By Taos Turner,
Alberto Messer
and Kate King
Her husband, Ariel Benve-
nuto, said that five men in the
Argentine group, all from the
city of Rosario, were among
the eight people killed Tues-
day when authorities say a
driver who showed affinity
with ISIS mowed over pedes-
trians on a bike path in lower
Manhattan.
“It was the first time they
had traveled abroad together,”
Mrs. Piedrabuena told a local
radio station. “All 10 of them
were riding their bikes, split
into two groups, chatting with
each other along the way.”
A sixth man in the group
was injured.
Police said the others who
died were Nicholas Cleves, 22
years old of New York City;
Darren Drake, 32, of New Mil-
ford, N.J.; and Ann-Laure Dec-
adt, 31, of Belgium, mother of
two sons, one 3 years old and
the other 3 months.
Ms. Decadt’s husband, Alex-
ander Naessens, released a
statement saying the loss was
“unbearable and impossible to
grasp.”
Eleven other people were
injured in the attack, officials
said, and four of nine people
who remain hospitalized are in
critical but stable condition.
The driver, who law-en-
forcement officials said
shouted “God is great” in Ar-
abic when confronted by po-
lice, was shot by an officer in
the abdomen and is in cus-
tody.
Not far from where the at-
tack occurred, Mr. Cleves lived
with his mother in an apart-
ment building in the West Vil-
lage. He was a software engi-
neer and analyst at Unified
Digital Group, a technology
company.
Mr. Cleves graduated last
year from Skidmore College,
where he majored in computer
science and met Bobby Carl-
ton, who at the time ran the
Officer Praised as a Hero After Stopping Suspect
BY CHARLES PASSY
AND ZOLAN KANNO-YOUNGS
On Tuesday afternoon, Ryan
Nash, a five-year veteran of the
New York Police Department,
was responding to a call about
an emotionally disturbed per-
son at Stuyvesant High School
in lower Manhattan.
The 28-year-old officer
learned of a much more dan-
gerous situation on the street:
A man on the loose, yelling
and brandishing weapons, ac-
cording to city officials and a
police-union representative.
Officer Nash, who is assigned
to the 1st Precinct, spotted the
man and saw people lying in the
street, police said. He then fired
multiple rounds at the man.
“Dozens more lives could
have been in danger,” New York
Police Commissioner James
O’Neill said at a news confer-
ence on Wednesday. “We owe
him a great debt of gratitude.”
Police later identified the
man as 29-year-old Sayfullo
Saipov, and said he had killed
eight people and injured 12 by
driving a rental truck down a
bike path along the Hudson
River. Mr. Saipov, who had
brandished paintball and pellet
guns after he exited the truck,
was shot in the abdomen by
Terrorist Attacks
In U.S. After 9/11
u July 4, 2002 An Egyptian
man opens fire at the El Al Is-
rael Airlines ticket counter at
Los Angeles International Air-
port, killing two people.
u July 28, 2006 A gunman kills
one and wounds five others at
Jewish Federation of Greater
Seattle.
u June 1, 2009 A U.S.-born
self-described jihad warrior
shoots two soldiers, one fatally,
outside an Army recruiting sta-
TERROR IN NEW YORK CITY
A vigil on Wednesday in Rosario, Argentina, for the victims of the Manhattan terrorist attack who hailed from that city.
campus Apple store. Mr. Carl-
ton said Mr. Cleves would eat
lunch in his office and the pair
would discuss Star Wars, bit-
coins and the latest Apple
technology.
“We would nerd out to-
gether,” Mr. Carlton said. “He
was just this great guy who
was a joy to be around and a
joy to talk with.”
At Brooklyn Fare market
next to Mr. Cleves’s apartment
building, baker Diane Cohen
described Mr. Cleves as a reg-
ular. “He was an absolutely
lovely guy, charming,” she
said.
Mr. Drake was a program
manager at Moody’s Analytics
working in the World Trade
Center, according to a state-
ment from the company.
Mr. Drake served on his
hometown’s Board of Educa-
tion from 2009 to 2013, ac-
cording to Superintendent of
Schools Michael Polizzi.
Michelle Ablamsky, 32,
who went to graduate school
at Fairleigh Dickinson Univer-
sity with Mr. Drake, said he
tended to go to bed early,
would often post Bible pas-
sages on social media, and
The NYPD’s Ryan Nash spoke to reporters Wednesday. He shot the suspect in Tuesday’s attack.
Officer Nash. He was taken to
a hospital and remains in po-
lice custody.
Officer Nash is being praised
for his decisive actions, which
ended a terror spree that stands
as the most deadly in New York
since the 9/11 attack on the
World Trade Center, blocks
south of Tuesday’s incident.
Officer Nash “is a hero,”
tion in Arkansas.
u Nov. 5, 2009 Army psychia-
trist Maj. Nidal Malik Hasan
opens fire at Fort Hood, Texas,
killing 13 people and wounding
30 others.
u April 15, 2013 Two crude
bombs explode near the finish
line of the Boston Marathon,
Victims of Tuesday’s attack, from left: Hernán Ferruchi, Alejandro
Damián Pagnucco, Ariel Erlij and Hernán Diego Mendoza
Other victims, from left: Diego Enrique Angelini, Ann-Laure
Decadt, Nicholas Cleves and Darren Drake
was studying for a second
graduate degree.
“He wouldn’t hurt a fly,”
she said.
Ms. Decadt, the woman
from Belgium, was visiting the
city with her mother and two
sisters, who were unharmed.
She was from Staden, a town
of 11,400 in Western Flanders,
Belgium, where Francesco
Mayor Bill de Blasio said at
Wednesday’s news conference.
“He was very humble about
what he did, but what he did
was extraordinary.”
New York Gov. Andrew
Cuomo agreed. “The NYPD is
not just the leadership. It is the
men and women who are out
there every day, who are on the
first line. And I think Officer
killing three people and injuring
more than 175. Bomber, and
older brother, Tamerlan Tsar-
naev, is killed in a shootout
with police; younger brother
Dzhokhar is later captured alive.
u June 25, 2014 In what was
later determined to be the third
in a series of shootings, college
student Brendan Tevlin is shot
eight times while waiting at a
light. Ali Muhammad Brown, set
for trial next year in New Jer-
sey for this killing, has also
been charged in Washington
state with the others.
u Dec. 18, 2014 John Bailey
Clarke of North Carolina is shot
Thursday, November 2, 2017 | A7
ERICA CANEPA FOR WSJ; TREVISAN FAMILY/AP (5); REUTERS (1); ALEXANDER NAESSENS (1); NEVON KIPPERMAN (1)
dead as Hernan Diego Men-
doza, Diego Enrique Angelini,
Alejandro Damian Pagnucco,
Ariel Erlij and Hernan Fer-
ruchi. The injured member of
the group, Martin Ludovico
Marro, was at Manhattan’s
Presbyterian Hospital.
Two members of the group
were already residing in the
U.S., but some couldn’t afford
to make the trip. So Mr. Erlij,
48, a successful Rosario en-
trepreneur and one of the big
proponents of the reunion,
covered the airfare for two of
them. Mr. Erlij was a huge fan
of local soccer club Rosario
Central and devoted father of
three boys, said Alejandro
Luca, a colleague and friend.
The high-school class was
planning to have a dinner next
week here to celebrate their
Vanderjeugd is mayor. “Staden 30th graduation anniversary,
is a small community and ev- Mr. Luca said.
eryone knows each other “We usually see terrorist
here,” he said. “People are tak- attacks as something that’s
ing it very hard.” very distant, and now we lost
The same is true is in Rosa- a friend who cannot be re-
rio, where flags were ordered placed,” said Mr. Luca.
to be flown at half-staff to —Santiago Pérez, Natalia
honor the five local victims. Drozdiak, Leslie Brody and
The Argentina Foreign Min- Thomas MacMillan
istry identified the Argentine contributed to this article.
played and I am grateful for
the recognition we have re-
ceived.”
Officer Nash, who lives in
Medford, N.Y., has made more
than 50 arrests during his five-
year tenure. He graduated in
2007 from Patchogue-Medford
High School, where he was on
the cross-country team, said
Kris Zito, a teammate.
Mr. Zito, who works as a
real-estate agent on Long Is-
land, said he wasn’t com-
pletely surprised to learn that
Officer Nash played an impor-
FRANK ELTMAN/ASSOCIATED PRESS
tant role in Tuesday’s incident
because he was known in high
school for his speed and deter-
mination. “He definitely had
some willpower behind him,”
Mr. Zito recalled.
Patrick Lynch, president of
the Patrolmen’s Benevolent As-
sociation of New York, praised
Officer Nash for his actions,
along with three other officers.
Nash really showed how impor- He noted that John Hasiotis,
tant they are and how talented Officer Nash’s partner, secured
and how brave,” he said. the scene and gathered wit-
After Tuesday’s incident, nesses, getting accounts that
Officer Nash was treated at are “critical to understanding
Manhattan’s Bellevue Hospital the event.” Michael Welsome
Center for ringing in his ears. and Kevin McGinn, two other
Late Wednesday afternoon, officers, secured the suspect’s
Officer Nash said: “I under- weapons and ensured “the
stand the importance of yes- safety of all those” in the area,
terday’s events and the role we Mr. Lynch said.
by a teenage neighbor who had grant Tashfeen Malik, who had
converted online to Islam. just pledged allegiance to the
leader of Islamic State, and her
u July 16, 2015 A 24-year-old American-born husband open
Kuwaiti-born man opens fire at fire on an office party in San
two military facilities in Tennes- Bernardino, Calif., killing 14 peo-
see, killing four Marines and a ple and wounding 21.
sailor and injuring three before
dying from a gunshot wound. u June 12, 2016 Omar Mateen
kills 49 people and wounds 53
u Dec. 2, 2015 Pakistani immi- more at an Orlando gay nightclub
before police fatally shoot him.
u Oct. 31, 2017 Eight people
are killed and at least a dozen
injured when a truck mows
down pedestrians and cyclists
in lower Manhattan.
—Source: Cato Institute
A8 | Thursday, November 2, 2017 * *** THE WALL STREET JOURNAL.

WORLD NEWS
Niger to Allow U.S. to Stage Drone Strikes can tell you that we’re satisfied
Premier says inquest
with the collaboration.”
seeks to determine The October attacks came
how deadly ambush after a steady stream of raids
against Nigerien forces along
occurred last month the Mali border. Last month,
an additional 12 Nigerien
BY VIPAL MONGA troops were killed by gunmen
AND JOE PARKINSON around 50 miles from the am-
bush on U.S. forces. Nigerien
TORONTO—Niger is open to officials say there have been
allowing U.S. drone strikes at least 40 attacks recorded in
against terror groups, the the region since last year.
West African nation’s prime The raids come amid an ex-
minister said, days after U.S. panding regional jihadist insur-
officials disclosed that an gency in the poor, sparsely
armed drone had been sought, populated Sahel territory south
but not sent, near where four of the Sahara, where compet-
American soldiers were killed ing Islamist franchises have
in an ambush last month. profited from centuries-old
In an interview with The contraband- and people-smug-
Wall Street Journal on Wednes- gling routes. For decades, this
day, Brigi Rafini called the desolate region has been so
American deaths “an accident,” clouded in obscure conflict and
adding that U.S. forces aren’t in criminal trafficking that the
the region to conduct war. U.S. and other Western powers
He said the government is have been at a loss for trust-
undertaking an inquest to find worthy partners on the ground.

JOE SKIPPER/REUTERS
out how the Nigerien and U.S. But localized insurgencies are
forces were ambushed, but sug- now fusing with Islamic State
gested informers in a local vil- and al Qaeda. Jihadists have
lage may have tipped off sus- stepped up attacks on civilian
pected Islamic State fighters. targets, regional forces and
Mr. Rafini said that while ji- United Nations peacekeepers.
hadists don’t have bases in the An honor guard took part in a service for Army Sgt. La David Johnson, who was among four Green Berets killed in Niger last month. Since the 1993 failure of
country, attackers can easily America’s military intervention
meld into the local population. operating in the country at the sought permission to send an peatedly modified the timeline. for security and through pro- in Somalia, Washington has
He said it is very possible that Nigerien government’s request. armed drone near a patrol of It is the deadliest military grams such as a $437 million tried to secure the Sahara from
villagers, paid to inform on local “Drones are among the Green Berets before the Oct. 4 clash for Americans since Presi- grant with the Millennium terrorists by training and
activities, phoned ahead to at- tools they have to use,” he ambush that left four American dent Donald Trump took office. Challenge Corp., an indepen- equipping local troops and leav-
tackers when U.S. and Nigerien said, speaking in French during soldiers and five Nigerien Sen. John McCain (R., Ariz.), dent agency created by Con- ing them to deal with the task.
forces stopped to get breakfast an interview on the sidelines troops dead, but the request chairman of the Senate Armed gress. The MCC is looking to The Green Beret deaths
and refill their canteens. of the Toronto Global Forum. was blocked in a chain of ap- Services Committee, has improve access to water and aren’t the first stumble: In
He added the inquest is also “You need to deploy them proval that snakes through the pressed for information, and a boost the country’s agriculture. 2013, some U.S.-equipped Ma-
trying to determine to what ex- for investigation and recon- Pentagon, State Department and public spat broke out about con- U.S. economic aid is helpful, lian soldiers joined al Qaeda,
tent the village chief was com- naissance,” he said, adding his the Nigerien government, offi- dolence calls Mr. Trump made he said, and so is help in areas and a U.S.-trained army cap-
plicit in the ambush. He said he country is open to allowing cials briefed on the events said. to families of the fallen soldiers. of security, he said. “They don’t tain, Amadou Sanogo, over-
doubts anyone in the Nigerien U.S. drones for combat “if we Questions continue to swirl On Wednesday, Mr. Rafini have permission to go onto our threw the Bamako govern-
army acted as an informant. need them for other uses.” around the circumstances of the said Niger appreciates U.S. in- territory to do the work of the ment, forcing Washington to
Mr. Rafini said the U.S. is U.S. military officials had attack, as U.S. officials have re- volvement in the country, both Nigerien army,” he said. “But I cancel training courses.

U.K. Defense Minister Resigns After Sex Allegations

BY JENNY GROSS
AND WIKTOR SZARY Electoral Watchdog of the UK Independence Party.
The investigation comes
LONDON—British Defense Probes Key Funder amid calls for scrutiny into
Secretary Michael Fallon re- Of Brexit Campaign whether the Russian govern-
signed Wednesday after he ment influenced the Brexit
was accused of inappropriate vote in June 2016, with Labour
conduct toward a radio pre- LONDON—Britain’s electoral lawmaker Ben Bradshaw say-
senter, becoming the first U.K. watchdog said it was investi- ing in Parliament last month
politician to quit over allega- gating whether one of the key that the government must re-
tions of sexual misconduct financial backers of the cam- assure the public that the
sweeping through the coun- paign to take the U.K. out of funds spent on the campaign
TOLGA AKMEN/AGENCE FRANCE-PRESSE/GETTY IMAGES

try’s ranks of power. the European Union breached were from permissible sources.
In a letter published by campaign-finance rules ahead Under British law, compa-
Prime Minister Theresa May’s of last year’s referendum. nies need to be “carrying on
office, Mr. Fallon said his past The Electoral Commission, business” in the U.K. to make
behavior hadn’t kept to the which regulates political fi- large donations to campaigners
ideals demanded by military nance in Britain, said it would and political parties.
services. Mr. Fallon, who isn’t look into whether British insur- Mr. Banks, a multimillion-
resigning from his position as ance magnate Arron Banks aire, called the investigation an
a lawmaker, didn’t specify was the true source of millions attempt to discredit the refer-
what behavior had been inap- of pounds in donations and endum’s results and said alle-
propriate. loans made in his and his com- gations that Brexit was funded
“A number of allegations pany’s name to Leave.EU, a by the Russian government are
have surfaced about MPs pro-Brexit group backed by Ni- “complete bollocks from begin-
[members of Parliament] in gel Farage, the former leader ning to end.”
recent days, including some U.K. Defense Secretary Michael Fallon seen after attending the weekly cabinet meeting on Tuesday.
about my previous conduct,”
he said. “Many of these have to the radio presenter at the Harvey Weinstein prompted the latest blow to the British ernment as it approaches a cusations of nonconsensual
been false but I accept that in time and considered the matter women in the U.K. to speak out. leader, whose authority has al- critical phase in Brexit talks. sex—British media have re-
the past I have fallen below closed. The presenter con- Another key ally of Mrs. ready been damaged badly af- Mrs. May said in response ported on what they call a
the high standard we require firmed the incident this week May, her deputy Damian Green, ter she lost her party’s major- to Mr. Fallon’s letter that she Conservative Party “dirty dos-
of the armed forces that I have but said she didn’t regard it as was also accused this week of ity in a snap election in June. appreciated the “characteristi- sier,” compiled by Parliament
the honor to represent.” “anything but mildly amusing.” making inappropriate advances Confidence in Mrs. May and cally serious manner in which workers. The dossier lists 36
Mr. Fallon’s resignation fol- She said she doubted it was the toward a woman, in this case a her Conservative Party, con- you have considered your posi- politicians from the ruling
lowed his apology after the tab- reason he resigned. political activist. Mr. Green has sumed by infighting over Brit- tion, and the particular exam- party, some of them sitting
loid The Sun published allega- Dozens of allegations denied the allegations. ain’s approach to negotiations ple you wish to set to service- ministers, and describes alle-
tions this week that he touched against British politicians have Neither he, Mr. Fallon nor on leaving the European men and women and others.” gations of extramarital affairs,
the knee of a female radio pre- surfaced after a flood of accu- any other accused lawmaker Union, is already low, and fur- In the wake of the allega- harassment and sexual indis-
senter at a dinner in 2002. His sations of sexual harassment has been charged with a crime. ther fallout from the accusa- tions against Mr. Weinstein— cretions. Most of the names
spokesman said he apologized against Hollywood producer Mr. Fallon’s resignation is tions could unsteady the gov- who apologized but denied ac- haven’t been made public.

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Leisure Travel Deadly Navy Collisions Were Avoidable

To advertise: 800-366-3975 or WSJ.com/classifieds BY GORDON LUBOLD day answered more of the out-
AND NANCY A. YOUSSEF standing questions about how
two modern American destroy-
FRANCE WASHINGTON—Two U.S. ers could collide with commer-
Navy collisions that killed 17 cial vessels in the Pacific Ocean.
CHRISTIAN SENYK/US NAVY HANDOUT/GETTY

sailors this year were avoid- In the case of the Fitzger-

able, according to a pair of re- ald, which collided with a
ports on the accidents released 29,000-ton commercial vessel,
Wednesday that cited failures the ACX Crystal, the Navy

 in a number of areas, from

steering and navigation to what
officials describe as the culture
found numerous failures by
the ship’s crew. These included
a failure to adhere to sound
aboard each of the ships. navigation procedures or exe-

 
Two destroyers, the USS cute basic watch-standing
John McCain and the USS practices, according to the ex-

  Fitzgerald, were involved in
separate wrecks. The Fitzger-
ald collided with a commercial
vessel in June, killing seven
sailors; the McCain collided
with a tanker in August, killing
10 sailors.
“Both of these accidents
were preventable and the re-
spective investigations found
multiple failures by watch-
standers that contributed to
the incidents,” said Chief of Na-

  
The USS Fitzgerald in dry dock after the wreck that killed seven.
on Thursday a series of ac-
tions to improve training, pro-
tocols and cultural issues that
officials believe contributed to
the two fatal collisions.
The incidents have cost
high-ranking naval officials
their careers. In addition to re-
moving senior officers on each
of the ships, the Navy also re-
ecutive summary of that re-
port. Investigators also found
the ship’s crew failed to prop-
Scott Swift, who was destined erly use navigation tools or to
to become the next U.S. Pacific deliberately and effectively re-
Command commander. But in spond “when in extremis.”
a rare move, Adm. Swift an- On the McCain, which col-
nounced in September he was lided with the commercial ves-
informed he wouldn’t get the sel Alnic MC in August, inves-
Pacific Command assignment tigators found there was a
and thus would seek to retire. “loss of situational awareness”
Adm. James Caldwell, the in response to mistakes made
head of Naval Reactors, has with the ship’s steering and
 

   val Operations Adm. John Rich- lieved the Seventh Fleet com- been appointed to conduct an propulsion system as it navi-
  
 ardson, in a statement Wednes- mander, Adm. Joseph Aucoin. independent review to deter- gated highly trafficked waters.
 day. “We must do better.” The controversy surround- mine whether additional disci- Sailors assigned as watch-
Adm. Richardson said the ing the collisions also essen- plinary actions should be taken, standers had insufficient pro-
Navy must learn from its tially ended the career of Pa- the Navy said Wednesday. ficiency and knowledge of the
lapses, and plans to announce cific Fleet commander, Adm. The reports issued Wednes- ship’s systems, the report said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Firms Get
Lift as Ties
To Beijing
Improve
BY EUN-YOUNG JEONG
SEOUL—South Korean com-
panies are hopeful that signs
of improved diplomatic ties
between Seoul and Beijing
mean their long-running dis-
pute, which is seen costing the
country’s economy billions of
dollars, is coming to an end.
China and South Korea said
Tuesday they would work to
patch up their relationship af-
ter the spat, which was
sparked around August 2016
by Seoul’s decision to install a
U.S. missile-defense system
that Beijing has said under-
mines its national security.
Since then, some South Ko-
rean companies—which had
grown increasingly reliant on
China—have faced an eco-
nomic backlash, suffering
sales slumps, product boy-
cotts, business suspensions
and a sudden cutoff in Chinese
tourism. South Korea’s econ-
omy is expected to take a
roughly $7.6 billion hit from
the discord this year alone, ac-
cording to a forecast by the
Seoul-based Hyundai Research
Institute in May.
However, shares of some
South Korean companies af-
fected by the dispute have re-
cently risen, indicating inves-
tors have started to bet on a
thaw in relations between the
two countries. Last month,
Seoul and Beijing renewed a
currency-swap agreement and
their defense ministers held
bilateral talks.
Shares of cosmetics maker
Amorepacific Corp.—among
the biggest beneficiaries of a
recent boom in Chinese inter-
est in Korean products—have
climbed 9.4% since the begin-
ning of last week. Over that
period, shares of Asiana Air-
lines Inc. and Hyundai Motor
Co. gained 12.3% and 6.0%, re-
spectively, compared with a
2.7% rise in the broader mar-
ket.
During a quarterly earnings
call last week, Han Chun-soo,
executive vice president of
Hyundai affiliate Kia Motors
Corp., had an optimistic out-
look for the coming months
regarding the situation in
China. “Anti-Korean sentiment
there appears to have diluted,”
Mr. Han said.
The dispute began shortly
after South Korea said that it
would proceed with the instal-
lation of the contentious Ter-
minal High-Altitude Area De-
fense, or Thaad, missile-
defense battery. China is
widely believed to have con-
ducted a campaign of eco-
nomic retaliation in response,
though Beijing has denied this.
—Lin Zhu in Beijing
contributed to this article.
BRAZIL
U.S. Family Missing
After Attack Found
An American couple and their
two young children were found
safe Wednesday in Brazil’s Ama-
zon, local police said, after the
barge they were traveling on
was allegedly boarded by river
pirates on Sunday, authorities
and family members said.
Brazilian authorities said the
couple, Adam and Emily Harteau,
39 and 36 years old, and their
daughters Colette, 6, and Sierra,
3, were being taken to Breves, in
the Brazilian northern state of
Para, for medical exams.
Ms. Harteau’s father, Warren
Brandle, had said earlier in a
phone interview that the couple
maintained a travel blog called
Our Open Road. They departed
California in their Volkswagen
van in October 2012 and have
been roaming Latin America
ever since.
— Paul Kiernan
and Paulo Trevisani
YEMEN
Airstrike on Hotel
Reportedly Kills 29
A suspected airstrike by the
Saudi-led coalition fighting Shiite
rebels in Yemen killed at least
29 people, including children, in
the country’s north, a Yemeni
health official said Wednesday.
Abdellah al-Ezi, head of the
health office of the northern
Saada province, said the airstrike
* * * *
Korean Leader Goes on Defensive
BY JONATHAN CHENG
SEOUL—South Korea’s
leader used a closely watched
speech to oppose military ac-
tion in countering North Korea,
as the U.S. builds up its forces
in the region and Donald
Trump prepares to make his
first trip to Asia as president.
In a nationally televised ad-
dress on Wednesday, President
Moon Jae-in also vowed to
bolster South Korea’s military
capabilities through increased
defense spending, but said
South Korea shouldn’t develop
or possess nuclear weapons.
“Our top priority is to
maintain peace on the Korean
Peninsula,” he said. “Thus,
armed conflict must be
avoided under any circum-
stance. No military action on
the Korean Peninsula shall be
taken without prior consent of
the Republic of Korea,” he
said, using the formal name
for South Korea.
The address to the National
Assembly was nominally a
budget speech, but was billed
domestically as a kind of “state
of the union” address six
months after his inauguration.
In his speech, Mr. Moon
called for a peaceful resolution
to the standoff with Pyong-
yang over its nuclear-weapons
program, even as he an-
nounced the biggest annual in-
crease in South Korea’s mili-
tary budget in nearly a decade
and pledged to maintain the
South’s “overwhelming mili-
tary superiority.”
The annual budget, which
must be approved by lawmak-
ers, calls for a 6.9% increase in
defense spending, and a 10.5%
rise in funding for projects that
he said would aid “the enhance-
ment of defense capabilities.”
The commitment to greater
defense spending comes after
the Moon administration, dur-
ing a visit to Seoul by Defense
Xi Looks to Past in Plotting China’s Future
BY CHUN HAN WONG
BEIJING—Days into a new
leadership term, Xi Jinping
went on the road to strike
home the defining message of
his administration, that only
the Communist Party can
guarantee his “China Dream”
of national rejuvenation.
In his first public appearance
since a party congress that in-
vested him with authority com-
parable with Chairman Mao Ze-
dong, Mr. Xi took his top
lieutenants back to the party’s
roots. At a brick house in
Shanghai’s French Concession
that hosted the party’s found-
ing congress almost a century
ago, the seven men raised and
clenched their right fists, pledg-
ing to “fight for communism”
and “never betray the party.”
The pilgrimage on Tuesday
WORLD WATCH
A suspected airstrike by a Saudi-led coalition on a small hotel in
Saada, Yemen, killed 29 people, a local official said.
struck a small hotel in a market,
wounding 28 other people.
Saada, which borders Saudi Ara-
bia, is a stronghold of the Iran-
backed rebels, known as
Houthis. The spokesman for the
Saudi-led coalition didn’t respond
to a request to comment.
International rights groups
have accused the coalition of
bombing civilian gatherings, mar-
kets, hospitals and residential ar-
eas across Yemen since its air
campaign against the Houthis
began in March 2015.
—Associated Press
MIDDLE EAST
Russia, Iran Discuss
Energy Ties, Syria
Russian President Vladimir
Putin and Iranian leaders in Teh-
ran agreed to boost energy ties
and discussed cooperation to
end Syria’s war, in which they
support President Bashar al-
WORLD NEWS
South Korean President Moon Jae-in on Wednesday said he opposes military action against North Korea.
Secretary Jim Mattis last
week, called for a speedier Beefing Up
handover of wartime opera- South Korean President Moon Jae-in's first budget calls for the
tional command from the U.S. biggest annual increase in defense spending in nearly a decade.
South Korea has day-to-day
control of its military, but in Defense budget
the event of a major conflict 50 trillion won
on the peninsula, the top U.S.
general in South Korea would 40
assume operational control of
both militaries, under an 30
agreement in place since the
Korean War in the 1950s. 20
Mr. Moon and his allies re-
gard that arrangement as an 10
encroachment on South Korea’s
0 0
sovereignty. It has also opened
up Seoul to charges from North 2007 2010 ’15 ’18*
Korea that the South is a pup- *Pending legislative approval
pet state of the U.S. Note: 1 trillion won=$894.1 million
Under the current agree- Source: Ministry of National Defense
ment, the transfer of wartime
operational control has been days before Mr. Trump begins
predicated on South Korea’s his visit to the region.
boosting its own defense capa- Mr. Trump will visit South
bilities to repel a North Ko- Korea on Tuesday as the sec-
rean attack. The allies reaf- ond stop on a five-country
firmed those conditions in a swing through Asia. He has re-
joint statement on Saturday. peatedly threatened U.S. mili-
Mr. Moon’s remarks come tary action against North Ko-
echoed a piece of political the- Group’s Stephen Schwarzman.
ater Mr. Xi led soon after tak- In a speech during Tues-
ing power in late 2012, when day’s trip, he reiterated the
he toured a Beijing museum defining theme of his leader-
exhibition tracing China’s re- ship: rekindling a sense of pa-
covery from foreign humilia- triotic purpose in his 89 mil-
tion, and declared his goal of lion-member ruling party.
steering his nation to global
prominence—a program en-
shrined last week in the
party’s constitution.
The president took
Mr. Xi has moved swiftly to lieutenants to the site
flex his new muscle, putting al-
lies in key posts and leading
of the first Communist
meetings with the party and Party congress.
military elite. China’s rubber-
stamp parliament reviewed a
bill that would place paramili-
tary police forces firmly under “A Communist’s original as-
the control of a commission led pirations should never
by Mr. Xi. He also found time change,” Mr. Xi said. “Only by
to greet American business remaining true to our original
leaders such as Facebook Inc.’s aspirations, can we answer to
Mark Zuckerberg, Tim Cook of history and our forebears, and
Apple Inc. and Blackstone win people’s hearts.”
In all, the agency said it re-
leased 470,000 files.
Descriptions by the CIA of
the files and the documents
themselves show that the terror
leader was still engaged in al
Qaeda’s global operations while
he was isolated in his Pakistani
hideout.
NAIF RAHMA/REUTERS
The documents show that
even as the terror leader plotted
against the U.S., he seemed to
enjoy American entertainment.
Among the video selections
found in the compound were
“Little House on the Prairie,”
several National Geographic spe-
cials, and American cartoons, ac-
Assad. cording to the CIA, which also
Mr. Putin’s visit to the Iranian said the videos included pornog-
capital, his first since 2015,
comes at a time of intensifying
raphy.
—Nancy A. Youssef
efforts to end the Syrian con-
flict. He met with Iranian Presi- CANADA
dent Hassan Rouhani and Su-
preme Leader Ayatollah Ali Ottawa Will Accept
Khamenei, who has final say in More Immigrants
matters of state. Russia and Iran
signed six preliminary agree- Canada pledged to increase
ments on energy cooperation. annual immigration levels by
—Aresu Eqbali more than 10% by the end of
and Asa Fitch the decade, saying Wednesday
that the country is prepared to
OSAMA BIN LADEN take a different course from its
developed-world peers to fuel
Documents Found in economic growth.
2011 Raid Released Canada’s Immigration Minis-
ter Ahmed Hussen said the
The Central Intelligence country would accept 310,000
Agency released a new tranche new permanent residents next
of documents, videos and audio year, up from an estimated
captured during the 2011 raid 300,000 this year. That intake is
that led to the death of al set to gradually rise to 340,000
Qaeda leader Osama bin Laden, by 2020, or roughly 1% of the
including 228 pages from his population.
handwritten journal. —Paul Vieira
Thursday, November 2, 2017 | A9
Ocean, a rare clustering of
military might. U.S. defense
officials have left open the
possibility that the carrier
strike groups may stay in the
area to conduct maneuvers.
Stratfor, an Austin, Texas-
based geopolitical consultancy,
told clients in a report Tuesday
that while the presence of the
three carriers doesn’t necessar-
ily mean that the U.S. is gearing
up to start a war with North
Korea, “these developments
suggest that the United States is
preparing for a confrontation.”
North Korea, meanwhile, hit
out at Washington for deploy-
ing aircraft carriers near the
ED JONES, PRESS POOL
peninsula, and said U.S. pres-
sure was ineffective.
“No matter whatever rub-
bish Trump may utter, that
can never take the army and
people of the DPRK by sur-
prise,” the state-run Korean
Central News Agency said on
Wednesday, using an acronym
for the country’s formal name,
the Democratic People’s Re-
public of Korea.
Mr. Moon’s rejection of any
Change from previous year interest in developing or pos-
10% sessing nuclear weapons was
an implicit rebuttal to demands
2018*
8 6.9% from conservative opposition
lawmakers that South Korea re-
6 introduce tactical U.S. nuclear
weapons in response to North
4 Korea’s rapid military advances.
Former President George
2 H.W. Bush withdrew Washing-
ton’s nuclear weapons from
South Korea in 1991.
2007 2010 ’15 ’18* Mr. Moon’s speech was also
notable for the lack of any of-
fer to meet directly with North
THE WALL STREET JOURNAL. Korean leader Kim Jong Un,
which has been a feature of
rea and said recently that the South Korean leader’s pre-
attempts at negotiations with vious addresses.
Pyongyang were a waste of Mr. Moon affirmed that he
time. regards sanctions and pressure
Meanwhile, for the first primarily as a way to restart
time in a decade, the U.S. has dialogue with North Korea.
positioned three aircraft carri- —Min Sun Lee
ers in the western Pacific contributed to this article.
Mr. Xi is signaling that reig- Many of the fresh faces on
niting missionary zeal among the Politburo are seen as close
the rank-and-file remains the to Mr. Xi, including officials
key focus for his second five- who worked under him in local
year term, said Wu Qiang, a bureaucracies. Some of them
current-affairs commentator assumed key posts as the
and former politics lecturer at party’s propaganda and person-
Beijing’s Tsinghua University. nel chiefs as well as party chiefs
For the 64-year-old son of a in Shanghai and the southern
revolutionary leader, harking province of Guangdong.
back to the Communist Party’s Last week, the official Xin-
early history could also boost hua News Agency reported
his personal legitimacy. “It re- that Mr. Xi had assumed per-
inforces Xi Jinping’s image as sonal oversight over high-level
an heir to the revolutionary appointments.
tradition,” Mr. Wu said. At the Shanghai brick
Heading a Politburo meeting house, Mr. Xi led his fellow
last week, Mr. Xi urged new ef- members of the Politburo
forts to ensure all party mem- Standing Committee in reciting
bers study and implement his the party’s oath of allegiance.
policy program. The 25-mem- State television showed Mr. Xi
ber Politburo described him as emerging from the building to
the party’s lingxiu, an honorific greet cheering crowds, shaking
meaning “leader” that is most hands amid constant chants of
closely associated with Mao. “Hello, General Secretary.”
Parents Toll-Free Helpline
1-855-DRUGFREE
(1-855-378-4373)
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Thursday, November 2, 2017
BOOKS
Continued from Page One
to the book about raising con-
fident children have been sold
to 23 countries. It hit the best-
seller list in Italy and is in its
ninth U.S. printing.
Another Nordic-loving book
claims a different secret: fri-
luftsliv, or “open-air living,”
encouraging children to climb
trees and get dirty playing
outdoors in what Swedish-
American author Linda Åkeson
McGurk calls their “mud
kitchen.” Her book, “There’s
No Such Thing as Bad
Weather,” was just released in
the U.S. and is bound for a
publishing house in Poland.
Apparently, no one wants to
parent like an American. Pub-
lishers can’t name a recent
U.S. hit on the subject. “I don’t
know that anyone’s written a
book about helicoptering,”
says Marnie Cochran, execu-
tive editor at Ballantine Books.
Besides, who can compete
with this Dutch title? “The
Happiest Kids in the World” is
selling in the U.S. and Eng-
land. The book, which has an
American co-author, Rina Mae
Acosta, describes mellow
TRADE
Continued from Page One
intensity. Now it is coming to a
head under the first American
presidency of an open free-
trade skeptic, in a case just
starting to wend its way
through the Geneva process.
The issue: whether China has
graduated to a “market econ-
omy,” a change of status that
would make it considerably
harder for other nations to
block imports they believe are
improperly aided by Chinese
government distortions.
China has sued both the U.S.
and European Union demand-
ing the change, calling it “non-
negotiable,” and Chinese offi-
cials are likely to reiterate that
demand when they talk trade
next week with President
Trump during his Beijing visit.
Steelworkers have jammed the
streets of Belgium and Ger-
many protesting that ultima-
tum, while Europe’s parliament
voted 546 to 28 to fight it, one
Italian lawmaker saying accep-
tance “would be carrying out
the suicide of the European in-
dustry.”
‘Cataclysmic’
“This is without question
the most serious litigation
matter we have at the WTO
right now,” Robert Lighthizer,
the Trump administration’s
trade representative, told Con-
gress in June. A China victory,
he added, “would be cataclys-
mic for the WTO.”
Washington’s role challeng-
ing the WTO marks a reversal
from the giddy mid-1990s hey-
day of globalization, and a re-
minder of how nationalism is
increasingly the byword in
global economic competition.
When the WTO was forged in
Morocco as a new international
trade overseer, replacing the
less-powerful General Agree-
ment on Tariffs and Trade, the
Cold War had ended and the
U.S. saw a chance to weave
economies together around
American-style capitalism.
GATT and the WTO have,
over the past seven decades,
greased the wheels of interde-
pendence. Under Geneva’s
guidance, tariffs have plunged
nearly 80% and trade’s share of
the global economy has more
than doubled..
The WTO’s defenders say it
still plays an important role.
Roberto Azevedo, the director-
general of the WTO, credits his
organization with preventing a
recurrence after the 2008 fi-
nancial crisis of the trade wars
that exacerbated the Great De-
pression. “If we didn’t have the
WTO, we would be in much
worse shape,” Mr. Azevedo
said in an interview.
Mr. Azevedo plays down U.S.
complaints that his body isn’t
properly equipped to handle
China. “We have 164 coun-
tries,” he said. “China is one of
those countries that have their
own practices, their own meth-
odologies. The system was de-
signed to respond to that di-
versity.”
But critics say the system is
badly in need of an overhaul.
After the violent 1999 street
battles that killed the Seattle
round and the effective 2015
death of the Doha Development
Round, the world trade regime
has now gone nearly a quarter-
century without a comprehen-
sive rules upgrade—the longest
Dutch parents who serve their
young ones chocolate sprin-
kles on toast with breakfast
and allow their teenagers “ro-
mantic sleepovers” at home.
It is available in Finnish,
Italian and, for parents inter-
ested in reading about them-
selves, Dutch. Japanese, Ko-
rean, Thai and Chinese
editions are coming soon.
(Just don’t ask the Danes
for comment: “The Dutch chil-
dren are the happiest in the
world, but the Dutch people as
adults are not the happiest—
the Danish people are con-
stantly in the top three,” says
Jessica Joelle Alexander, co-
author of “The Danish Way of
Parenting.”)
Russian, Polish and U.K.
publishers bought the rights
to “Achtung Baby,” a book ar-
riving in January by American
author Sara Zaske. It promotes
self-reliant German tots who
learn to wield sharp knives
and light matches.
“They are a familiar pitch—
I say, ‘All right, what country?
Got it. Send it along,’” Ms. Co-
chran says of such proposals,
including manuscripts she has
read on parenting in Finland
and Japan. “There are lots of
countries left in the world that
we haven’t explored, that we
A Chinese garden is on prominent display at the World Trade Organization’s Geneva headquarters.
World-Trade Disorganization
As China’s share of global trade has grown rapidly, nearing or eclipsing that of traditional powers...
Each nation's trade as a share of the global total
Exports
20%
16
12
8 8
4
0 0
1995 2000 ’05
...the U.S. and other countries have ramped up accusations of unfair trading practices, and invoked
those allegations to block Chinese imports.
Percentage of U.S. imports from China
covered by restrictions
10%
Antidumping
8
6 India
4 Canada
2 made a scapegoat. He added
0 U.K.
1995 2000 ’05
Amid those fights, China has become a more active participant in the WTO's courts, helping feed a backlog
and aggravating strains on the system.
Active WTO disputes per year
40
30
20
10
0 From compliance
1995 2000 ’05
*Countervailing duties †Through September
Sources: World Bank (exports and imports); Chad Bown, Peterson Institute for International Economics (restrictions); WTO (disputes per year);
Louise Johannesson and Petros C. Mavroidis (length of process)
such period since World War
II.
These failures have elevated
the importance of the WTO’s
judicial system, as countries
concluded their only option for
advancing their cause in Ge-
neva was litigation, not negoti-
ation.
At the WTO, disputes are
handled before “panels,” not
“courts,” terminology carefully
chosen in deference to home-
country political concerns
about sovereignty.
The courts are structured as
an arbitration system, with a
dispute-settlement panel and a
more powerful appellate body.
WTO officials call the process
their “crown jewel” and say
IN DEPTH
can perhaps learn from or ex-
ploit.”
Author Amy Chua helped
launch the foreign-parenting
boom in 2011 with “Battle
Hymn of the Tiger Mother,”
her book about raising chil-
dren with the discipline and
high expectations of Chinese
parents. It has been published
in roughly 30 languages and
inspired a TV sitcom in China.
Ms. Chua says parenting writ-
ers often send her culturally
themed pitches, including of-
ferings from a Mormon and a
Brazilian.
“Sometimes I’m thinking,
‘Hmm, I’m curious what there
is to add,’ ” she says. She
passes on ideas to her agent.
Dallas freelance writer Kate
Desmond was inspired by
reading “The Danish Way of
Parenting” and its embrace of
unsupervised outdoor play but
worries about busy city
streets. She tries to follow the
book’s advice on avoiding ulti-
matums. But, she says, “just
this morning, I bribed my 3-
year-old to get in the car with
a piece of candy corn.”
A few years ago, Tanja
Maier tried to do for Russian
parenting what U.S. expat Pa-
mela Druckerman did in 2012
with her best-selling book on
Imports
20%
16
China 12
U.S.
4
’10 ’15 1995
Imports affected by U.S. trade restrictions, in billions
China
S. Korea
Mexico
Japan
Antisubsidy*
Germany
France
’10 ’15
Length of dispute process, 1995–2016
Official deadline for each step
From request to panel
From panel to report
Appeals (2–3 mos.)
Agreed-upon time to
implement agreement
Compliance panel
appeal to final report
’10 ’15 ’17†
members comply with 90% of
its rulings.
One of the most active liti-
gants has been Beijing.
China’s 2001 WTO entry was
a transformative moment. Ne-
gotiations took 15 years and in-
cluded more strings and condi-
tions than had been imposed
on any other member. The
shared, underlying assumption
was that China’s economy was
undergoing a historic transi-
tion from state-run to market-
oriented, and that WTO mem-
bership would ensure, and
accelerate, that evolution.
The Chinese government
was at first shy about using
the WTO courts. But the surge
in Chinese exports following its
Father and child at the Baby Museum in The Hague.
French child-rearing, “Bring-
ing Up Bébé.” Ms. Maier
pitched a book on Moscow
mothers who zealously push
their children to succeed at
hobbies and keep them in hats
year-round to avoid a draft.
In their rejection letters,
one U.K. agent wrote, “the
Russian approach doesn’t re-
ally resonate.”
Ms. Maier did get one
bite—from the Russians. Ear-
2000 ’05 ’10
2016 estimate
2017 estimate
$0B $10 $20 $30 $40
Actual avg.
0 6 12
months
THE WALL STREET JOURNAL.
WTO entry, which suddenly
made it the world’s largest ex-
porter, thrust Beijing into the
center of the legal system.
Since 2007, China has been
party to more than a quarter of
all WTO cases.
Facing such pressures, Chi-
nese officials set about to mas-
ter the process. The Chinese
offered large stipends to prom-
inent American and European
trade-law scholars to teach
seminars in China for young
bureaucrats. They retained top
U.S. law firms. Steptoe & John-
son LLP became the go-to firm
for combating a new American
policy imposing extra-steep du-
ties on Chinese imports aided
by allegedly illegal subsidies.
THE WALL STREET JOURNAL.
moved to Moscow in the
1990s.
Some readers seek out
strict child-rearing like the
style described in the recently
released “Little Soldiers.” In
the book, American Lenora
Chu tells the story of enrolling
her 3-year-old son in a state-
run school in China.
She describes an education
ROBIN VAN LONKHUIJSEN/EPA/SHUTTERSTOCK
culture that can breed success
but also punishes children
through isolation and rewards
sitting still with shiny red
stars on the forehead. “The
book is about me trying to
find the middle ground as a
parent,” she says.
“Little Soldiers” is sold in
the U.K., Hungary, Russia, Aus-
tralia and New Zealand. It hit
a snag in China, where a deal
was contingent on excising a
chapter about political
lier this year, a Russian pub- thought control in the class-
lisher released a translated room, Ms. Chu says.
edition titled “Winter Hat, Parents in China are also
Grandmother, Kefir.” The book conflicted about child-rearing,
praises mothers who don’t let Ms. Chu says. In an interview,
their beauty routines slip and she describes a Chinese
raise children on porridge and woman who moved to Canada
kefir, a tangy milk beverage. for its carefree atmosphere
“It turns out, the Russians but now worries that all chil-
wanted to hear somebody say- dren do there is play outside.
ing something good about The grass, Ms. Chu says in
them,” says Ms. Maier, a 41- her book, “is always greener
year-old Arizona native who elsewhere.”
Beijing’s lawyers started
notching notable court wins
over the Americans who
shaped the system. In a series
cases,” as one judge warned in
a recent speech. At an Aug. 31
meeting of the committee
overseeing the courts, the U.S.
of rulings from 2011 through said it would block any at-
May 2017, the appellate body tempt to fill those slots until
concluded that Washington its “longstanding” complaints
had cut too many corners in about the courts were ad-
asserting that the state under- dressed.
writes Chinese exports. Those There’s no sign Mr. Trump
decisions, covering four dozen intends to follow through on
industries, from off-road tires the idea he once floated during
to wind towers to, literally, the 2016 campaign of pulling
kitchen sinks, raised the bar the U.S. out of the organiza-
for U.S. policy makers trying to tion. But aides have said they
block Chinese imports. are exploring a number of poli-
WTO defenders note the cies that openly challenge the
U.S. has still won the vast ma- WTO’s authority, reflecting
jority of cases it has filed in their skepticism about the
Geneva, and say it should be body’s ability to handle China.
pleased that China has chosen A looming challenge to the
to pursue its trade grievances WTO is the pending case deter-
through global arbiters. mining China’s official status in
XINHUA/ZUMA PRESS
“Since our accession to the the world trading system—
WTO, China has always fol- whether members are now re-
lowed the WTO rules,” Cui quired to treat it as a “market”
Tiankai, China’s ambassador to economy. The debate is compli-
the U.S., said in a recent inter- cated because there appears to
view with a Chinese TV sta- be no clear answer in WTO
tion. “Sometimes we don’t rules, which some participants
have 100% agreement with say were left intentionally
them, but still we play by the
rules. I hope America could do
vague in the agreement gov-
erning China’s entry.
the same.” Beijing reads the pact as
The losses rankled the having automatically guaran-
Washington trade community. teed it market status 15 years
In May 2016, aides to then- after its December 2001 acces-
President Barack Obama cited sion. The U.S., Europe, Japan
two rulings favoring China as and others say the change was
U.S. part of a broader list of griev- intended to be a privilege con-
ances designed to block the re- tingent on liberalization prom-
appointment of a South Korean ises Beijing has yet to keep.
China judge on the appellate body.
At a tense meeting at WTO
headquarters, the U.S. delegate
told fellow trade diplomats
China waged a
’15
that the judge, South Korean diplomatic campaign
law professor Seung Wha
Chang, had shown a pattern of
to gain ‘market’
judicial overreach and sug- status; now it’s suing.
gested that he had acted as an
“independent investigator or
prosecutor” on behalf of par-
ties such as Beijing. The penalty China pays for
It was seen as a surprisingly its WTO label as a “nonmarket
hostile act in the genteel Ge- economy” is high, as would be
neva community. Mr. Chang China’s benefits for wiping it
himself responded through an away. The “nonmarket” desig-
interview with a Korean news- nation makes it easier for trad-
paper, saying he had been ing partners to impose inflated
tariffs on goods they conclude
that the U.S. may have wanted have been “dumped”—or sold
him removed before the trade below “fair” value. That’s be-
$50 court heard a pending chal- cause prices and costs are seen
lenge to American restrictions as so distorted in a “nonmar-
on South Korean washing ma- ket economy” that other coun-
chine exports., an insinuation tries are given wide latitude to
U.S. officials have rejected. determine on their own what
they consider “fair.”
A flip from “nonmarket” to
Bigger problem “market” would boost EU im-
The Chang tensions exposed ports from China by as much
a bigger problem: The WTO’s as 21%, or $84 billion, accord-
failure to complete negotiating ing to a 2016 study by CEPII, a
rounds aimed at updating rules French-government affiliated
for 21st-century business has think tank on international
forced judges to use often-out- economics.
dated 1990s guidelines in set- China has waged a diplo-
18 tling disputes. That has fed matic campaign asking nations
complaints that the WTO to grant it market status, win-
courts were relying increasingly ning over more than 70 coun-
on their own interpretations of tries, mainly in Africa, Latin
those rules, engaging in judicial America and Asia. On Dec. 12,
overreach and activism. 2016—the day after the 15th
Since the WTO doesn’t have anniversary of its accession—
detailed rules governing Chi- Beijing filed separate com-
nese-type state-owned-enter- plaints in Geneva against the
prises, some observers say ju- U.S. and the EU demanding
rists have had to make similar treatment from them.
decisions case by case. WTO defenders and critics
The Trump administration alike say the Geneva courts are
has escalated the Obama ad- the wrong way to resolve what
ministration’s battle over the are ultimately political and
appellate body, blocking ap- economic questions.
pointments of any new judges “That gray zone is the key
and sparking fights even with point of tension,” says Chad
members sympathetic to the Bown of the pro-free-trade Pe-
U.S. campaign against China. terson Institute for Interna-
By year’s end, the seven-mem- tional Economics. “How you
ber appellate body will have deal with that is ultimately go-
three vacancies, heightening ing to determine whether the
worries about its ability to WTO system in its current
manage a mounting backlog form can hang together or
and a looming “tsunami of not.”
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THE WALL STREET JOURNAL.
GREATER NEW YORK
Takeover
Is Key in
Mayoral
Contest
BY KATE KING
Atlantic City residents will
go to the polls Tuesday in the
city’s first mayoral election
since Republican New Jersey
Gov. Chris Christie seized con-
trol of the financially troubled
coastal city.
The state’s intervention,
which began about a year ago,
is unpopular among local resi-
dents and officials, who say it
disenfranchises voters of their
constitutional right to elect
the people who run local gov-
ernment. With both major
party mayoral candidates op-
posed to the state’s control,
campaigning largely has fo-
cused on incumbent Mayor
Don Guardian’s record defend-
ing the city’s sovereignty and
grappling with its unprece-
dented financial problems.
Mr. Guardian, who took of-
fice in 2014 as the city’s first
Republican mayor in more
than 20 years, believes his
stewardship during some of
the city’s most challenging
years will win him a second
term. His opponent, Demo-
cratic City Councilman Frank
Gilliam, blames the mayor for
many of Atlantic City’s woes,
including rising property taxes.
There are no public polls of
the race. Atlantic County Exec-
utive Dennis Levinson said he
usually has a sense of which
candidate is ahead. Not this
year. “It’s really an election of
personalities with really no is-
sues,” said Mr. Levinson, a Re-
publican who lives in the
nearby town of Linwood.
Mr. Guardian, 64 years old,
grew up in northern New Jersey
and moved to Atlantic City in
1989, where he worked for the
Casino Reinvestment Develop-
ment Authority, before running
for mayor. His ouster of incum-
bent Democrat Lorenzo Lang-
ford in 2013 surprised many.
In an interview, Mr. Guard-
ian said he believes his char-
acter and record leading the
city is more important to vot-
ers than his political party. “I
think I’m going to be re-
elected now because I think
the vast majority of people re-
alize I did the best with what
I had; that everything came
tumbling down because of 40
years of mismanagement in
this city,” Mr. Guardian said.
Mr. Guardian came into office
with the support of Mr. Christie,
but their relationship soured af-
ter the governor seized control
of Atlantic City. Mr. Christie,
along with Democratic Senate
President Steve Sweeney, said
the takeover was necessary to
fix financial problems and pre-
vent the city from sliding into
bankruptcy. A spokesman for
Mr. Christie declined to com-
ment on local elections.
Mr. Gilliam, who has been
on the city council since 2007
and owns a tutoring company,
believes bankruptcy would
have been a better option for
Atlantic City. He said the
mayor should have done more
to prevent the city’s property-
tax increase. If elected, Mr.
Gilliam said he would seek to
make Atlantic City appealing
to both businesses and unions.
Mr. Guardian said Mr. Gilliam,
as a longtime city council mem-
ber, could have moved to fix the
city’s budget “before I became
mayor, and that was when the
city had plenty of money.”
Third-party candidates Jo-
seph Polillo and Henry Green
also will appear on the ballot.
OYSTER PERPETUAL
DATEJUST 41
* * * * *
Terrorist Attack Won’t Disrupt Marathon
Police will use more
sand trucks and boost
snipers, canines and
heavy-weapons teams
BY RACHEL BACHMAN
Security will be beefed up
but the New York City Mara-
thon will proceed as planned
Sunday despite the terrorist
attack that killed eight people
on a bike path in lower Man-
hattan.
More sand trucks and
blocker vehicles will be used
than before at the marathon,
said Carlos Gomez, New York
Police Department chief of de-
partment. The police presence
will be greater, including a
doubling of rooftop snipers, as
well as increased heavy-weap-
ons teams, canine units, and
officers in uniform and plain
clothes.
“The marathon will go on
because New York goes on,”
Gov. Andrew Cuomo said
Wednesday, a day after a pickup
truck plowed through pedestri-
ans and cyclists on the Hudson
River bike path. “It is an impor-
A New York Sanctuary, Violated by a Deadly Assault
BY JASON GAY
Those broken
bicycles were
both heartbreak-
ing and enraging.
The reports ar-
rived late Tuesday afternoon,
frantic but partial: An inci-
dent in lower Manhattan,
possibly road rage, possibly
not, gunfire, maybe terror,
multiple victims, several
dead, active situation, avoid
the entire area.
More became known as
darkness approached: This
was indeed a terrorist at-
tack, it involved a vehicle,
and there were dead, pedes-
trians and cyclists, as many
as eight.
Photos appeared: A
smashed yellow school bus;
an intersection cordoned off
by police tape; frightened
parents hurrying children
away from the scene.
And broken bicycles—
smashed and bent in ways
that bicycles shouldn’t smash
and bend.
If you ride a bicycle in
New York City, you know this
route, the West Side bike
path, very well. It is one of
the fastest ways to get up
and down the length of Man-
hattan, and it’s almost al-
ways busy, sometimes comi-
cally so. A way in and out of
town, it is nothing less than
a vital artery of city life, ev-
ery day of the year.
“One of the most impor-
tant stretches of asphalt in
the city,” said Andrew
Crooks, the owner of NYC
Velo, a bike shop with a store
just a block from the path.
The flat, two-lane path is
a haven for runners, walkers,
strollers, skaters, bladers,
boarders—basically every act
of nonmotorized transport
ever invented.
And there are bikes. Every
day, thousands of them.
Commuters atop their own
beater bikes, or loaners from
New York’s bike-share sys-
tem, Citi Bike. Recreational-
ists out for a gentle spin.
Racers and wannabes charg-
ing up to the George Wash-
ington Bridge and New Jer-
sey to crush training miles.
Beginners. Retirees. Kids.
I’m one of them. I’ve rid-
NY
An NYPD officer watched last year as New York City Marathon runners passed through Harlem.
tant event for all New Yorkers.”
The marathon course runs
through all five boroughs,
starting in Staten Island at the
Verrazano-Narrows Bridge and
snaking through Brooklyn,
Queens and the Bronx before
ending in Manhattan’s Central
New York City’s West Side bike path in 2013. Recent terrorist attacks have targeted some of the best urban public spaces in the world.
den the West Side bike
path—its proper name is the
Hudson River Greenway, but
no one really calls it that—
countless times. I’ve ridden
to work, back home late at
night, and so early on Sun-
day mornings that I’ve en-
countered folks still having
1,958
Number of bikes a day on West
Side bike path in September
their Saturdays.
Like a lot of things in the
city, the West Side path can
be hectic and maddening, but
also tranquil and surprisingly
beautiful. There are people
who adore it, and others who
vow to never ride it again. It
is unmistakably New York.
This is especially so in
Park.
More than 50,000 runners
are projected to finish the race
amid 2.5 million spectators.
The New York City Mara-
thon is the largest in the
world, with 51,394 finishers
last year. Runners from 124
2017, as the city has grown
to embrace cycling as alter-
native transportation and
gradually become more hos-
pitable to the bike. There’s a
lot of work left to do on that
front—too many cyclists are
still endangered on city
streets—but the numbers are
undeniable.
From the city’s own data:
1,958 bikes a day counted on
the West Side path in Sep-
tember 2006 versus 6,519 in
September 2017—a more
than triple increase. The Citi
Bike station at the corner of
West and Chambers streets,
where Tuesday’s rampage
ended, is the third-most-pop-
ular bike-share station in
New York, according to the
Transportation Department.
People are riding here, ev-
erywhere, all the time. And
an impressive chunk of those
cyclists are tourists. Five
of Tuesday’s victims were
visitors from Argentina, in
town for a reunion, who’d
Thursday, November 2, 2017 | A10A
later after a firefight with po-
lice. His younger brother was
later convicted on charges re-
lated to the bombing and sen-
tenced to death.
After the Boston Marathon
bombing, the New York City
Marathon doubled its security
budget to $1 million, added
more baggage-inspection areas
and banned backpacks, big hy-
dration packs that some run-
ners wore, and bulky cos-
tumes, race organizers say.
RICHARD B. LEVINE/NEWSCOM/ZUMAPRESS
Security measures already
in place for the New York City
Marathon included bag inspec-
tions, private security and po-
lice, and a ban on drones. An
NYPD spokeswoman declined
to give the number of officers
who work the marathon.
New York Road Runners,
which operates the marathon,
postponed media events
scheduled for Wednesday but
said other events this week
countries and all 50 states would proceed as planned.
competed. That includes Saturday’s Dash
Security at marathons has to the Finish Line 5K, which
been a heightened concern starts at the United Nations on
since two bombs exploded Manhattan’s east side and
near the finish line of the 2013 ends at the marathon finish,
Boston Marathon, killing three near Tavern on the Green on
people. One suspect died days the west side of Central Park.
NATALIE KEYSSAR FOR THE WALL STREET JOURNAL
rented bikes as a group. An- tions of the Regional Plan
other was from Belgium. Association, a planning and
This attack in lower Man- advocacy group. Ms. Si-
hattan is tragic on many mons—who used to work at
levels, but one infuriating Citi Bike—told me she’d been
aspect is that it happened in Barcelona this summer
in a place that’s supposed when terrorists hit that city.
to be a refuge. This bike Attacks, she said, have
path was designed to be the been targeting “some of the
rare place that’s not chaotic, best public spaces in cities
where even in busy hours it’s around the world…the
possible to leave the clamor things that make our cities
of the city and lose yourself great. The fact that people
in the water and the urban are trying to make them
landscape. places of fear is sickening
“It is as much of a sanctu- and sad.”
ary as anything else,” said It is sickening and sad.
Janette Sadik-Khan, former And New York is still raw,
DOT commissioner and now trying to comprehend an-
a principal at Bloomberg As- other attack that seems in-
sociates, a global consulting comprehensible. The heart-
firm for mayors world-wide. break will continue, as will
“A lot of people who don’t the anger. But I want to sug-
feel safe cycling on city gest an essential act of defi-
streets feel safe there—and ance, on the West Side of
that’s what makes this feel New York City and beyond:
like a violation,” she said. Ride.
I spoke to Dani Simons, a
transportation expert and a  Rampage may have deterred
vice president of communica- a few bikers ........................ A10B
rolex oyster perpetual and datejust
are ® trademarks.
A10B | Thursday, November 2, 2017
Broadway Is Losing Its Cachet
Developers are moving building entrances to nearby side streets to attract prospective residents
BY JOSH BARBANEL
B
roadway is no longer
the hot address in
Tribeca: Developers
are choosing more exotic ad-
dresses on nearby side
streets for new residential
condominiums.
The latest example is 91
Leonard St., an industrial-
style tower rising on the site
of two modest Broadway of-
fice buildings. It is connected
to Leonard Street by what
had been a narrow service
corridor that snaked behind
another building.
That 30-foot-long alley—
only 8-feet-wide in places—
will now be the main lobby
entrance for 111 new condo-
miniums under construction
in a 19-story building of
large windows and dark
terra-cotta panels. To com-
pensate for its narrow width,
the building entrance will
soar to a 25-foot height and
be lined with brick and illu-
minated bronze metal col-
umns in keeping with the in-
dustrial motif.
The new condos went on
the market last week by Toll
Brothers City Living, a divi-
sion of Toll Brothers Inc., at
prices ranging from
$795,000 for studios to $10.5
million for a four-bedroom
duplex penthouse with out-
door space.
Brokers and marketers say
that an evocative address
can translate into higher
prices and faster sales.
Throughout the last cen-
tury, Leonard Street—a short
narrow side street of com-
mercial and factory lofts—
was overshadowed by some
of the taller, grander build-
ings on nearby Broadway.
But it is Leonard Street
that has cachet now, espe-
cially after the construction
of a jaunty 821-foot-tall resi-
dential building at 56 Leon-
ard St., with a tower of
stacked boxes visible atop
the New York skyline. It
opened last year after a
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lengthy delay following the
2008 financial crisis.
“It put Leonard Street on
the map,” said Leonard
Steinberg, president of bro-
kerage Compass, who is list-
ing a 53rd-floor penthouse at
56 Leonard for $32.5 million.
The name Leonard Street
is valuable because it is
widely recognizable as
Tribeca, while a building on
Broadway could be anywhere
in Manhattan.
O
n another corner a
former office building
long known as 350
Broadway was converted to
condominiums in 2014. But
the 66 condos there use an
address of 101 Leonard St.
The building is named “The
Leonard.”
Just up the street, 361
Broadway was celebrated by
the Landmarks Preservation
Commission in a 1980 desig-
nation as one of the largest
cast-iron buildings in the
city. But when it was con-
verted to 13 condos last year,
it was listed as 67 Franklin
St. The building is named
“Cast Iron House.”
Richard Pandiscio, a
condo marketing consultant,
said that address naming is
TOLL BROTHERS CITY LIVING
a fine art, long used by up-
town developers and busi-
nesses who angle to be on
Fifth or Park Avenues.
“I often think of whether
homeowners are going to
feel good about saying their
address,” Mr. Pandiscio said.
“Part of it is the sound, part
of it is what they want” in
the new building.
He said that some vanity
addresses are confusing. “I
always appreciate it if an ad-
dress will tell me where
something is,” he said.
David Von Spreckelsen,
president of Toll Brothers
City Living, said the original
address of 351 Broadway
didn’t tell buyers where the
building was. “When you say
Leonard Street you know
that it is Tribeca,” he said.
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A Vanity Address
Can Boost Prices
Building owners sometimes
take extreme measures to be
able to find an address with
just the right cachet.
When the medical school at
Mount Sinai constructed a 518-
foot tall tower on East 102nd
Street a few years ago, it won
by the U.S. Government, $5 gold coins at the incredibly low price of only $115.00 each.
the right to use another ad-
dress, 1214 Fifth Ave., for 32
floors of rental apartments,
even though the entrance was
about 150 feet off the avenue.
In a letter to the Manhattan
borough president’s office,
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higher rents, and help the med-
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“The marketing of a ‘Fifth
Avenue’ address will exponen-
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the overall revenue perfor-
mance of this development,”
Donald Scanlon, chief financial
officer, wrote in 2011.
Recent monthly asking
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which is managed by the Re-
lated Cos., topped $4,600 for a
one bedroom.
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THE WALL STREET JOURNAL.
Rampage
May Have
Deterred a
Few Bikers
BY PAUL BERGER
The Hudson River Park bike-
way is one of the busiest bike
paths in the nation but Wednes-
day, a day after the deadly ter-
ror rampage, some people said
it was noticeably quiet.
“It seems like everybody’s
stayed away,” said Noah Sanni,
a cyclist who had been in the
area Tuesday an hour before a
man police identified as Say-
fullo Saipov barreled into rid-
ers and pedestrians with a
rented truck, killing eight peo-
ple and injuring 12 others.
Just north of Pier 40, where
several bouquets of flowers
lay against a fence, Philip
White stopped on Wednesday
to stretch following a midday
run. Mr. White, a West Village
resident, said the area was
normally busy with more
walkers, runners and cyclists.
Officials are discussing the
installation of bollards along
the West Side bike path, a
spokesman for Mayor Bill de
Blasio said Wednesday.
Manhattan Councilman
Ydanis Rodriguez, chairman of
the city’s transportation com-
mittee, said in a state-
ment Wednesday that he will
call for the city to expedite the
installation of the bollards and
other safety measures in areas
with high pedestrian volume.
“The city should clearly add
bike lanes to that list of public
spaces that in this day and age
must now be better fortified,”
said Paul Steely White, execu-
tive director of Transportation
Alternatives, a nonprofit advo-
cacy group.
Although the waterfront
was quiet Wednesday, some
people were undeterred. They
included Steve Gallant, a sailor
with the Royal Canadian Navy.
“We are not going to let
this change our visit,” he said.
—Mara Gay
contributed to this article.
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, November 2, 2017 | A11

LIFE&ARTS
THE MIDDLE SEAT | By Scott McCartney

Your Guide to
Holiday Travel
This Winter
Storms have changed tourist behavior, but
bookings remains strong for the next two months
HOLIDAY TRAVELERS are still
finding their beach.
After three major hurricanes
this fall, bookings are surging to
unscathed Caribbean islands for
Thanksgiving and Christmas, as
well as to Hawaii and other warm-
weather destinations. Those spots
will be more crowded because of
the destruction elsewhere that
have left some island resorts ex-
pecting to stay closed through
most of next year.
The number of airline tickets al-
ready sold for Jamaica jumped 17%
for Thanksgiving trips and 8% for
Christmas compared with the
same buying period last year, ac-
cording to Airlines Reporting
Corp., which processes tickets for
travel agencies. The number of
passengers already ticketed for the
Cayman Islands is up 11% for
Thanksgiving and 19% for Christ-
mas. Barbados is up 37% for
Christmas, ARC says.
Tickets sold for the U.S. Virgin
Islands, Puerto Rico, Antigua and
Barbuda, St. Maarten and Turks
and Caicos have plunged. The is-
lands hit hard by Irma, Maria or
both continue to struggle with slow
recovery. Puerto Rico faces short-
ages of food, water, electricity and
housing. The U.S. Virgin Islands re-
main under a nighttime curfew.
Rather than abandoning the Ca-
ribbean, beach-lovers have shifted
to undamaged islands. “The hurri-
cane season is over and they know
what’s available. I think we’re all a
bit surprised at the strength of
this region,’’ says Brian King, Mar-
riott’s global officer for digital,
distribution, revenue management
and sales.
Overall, holiday travel looks
strong again. Airlines for America,
the industry lobbying group, fore-
casts a 3% increase in passengers
over Thanksgiving. And increased
discount airline competition is
keeping airfare about the same as
last year, or even lower in some
markets. “For Thanksgiving and
Christmas, prices seem to be hold-
ing steady,” says Dave Solomito,
vice president of North American
marketing for the online travel
agency Kayak.
The average ticket price sold for
travel within the U.S., Caribbean
and Mexico has been $480 for
Thanksgiving trips, up 1%, and
$553 for Christmas, up 3.5% com-
pared with the same buying period
of 2016, ARC says.
Marriott, which still has nine
resorts closed in the Caribbean out
of 215 in the region, expected in-
creased bookings in Phoenix, Or-
lando, Fla., and other popular in-
land winter hot spots. There’s
been some, Mr. King says. But the
firm has been surprised with dou-
ble-digit growth at destinations
like Aruba, Grand Cayman and
some Mexican beach resorts, as
well as Hawaii.
The storms have created some
buying opportunities, though fares
to beach spots proving popular are
running more expensive than a
year ago. To remind travelers that
it wasn’t damaged by Hurricane
Irma and grab the attention of
people who had to change their
plans, Miami Beach’s Visitor and
Convention Authority has arranged
for several hotels to offer up to a
25% discount. It’s rare to see a
deal that sweet offered over the
holidays, spokeswoman Adrianne
Richardson says.
Travel companies say right af-
ter Halloween is the time people
get serious about booking trips
over Thanksgiving, Christmas and
New Year’s. Consumers have
Please see TRAVEL page A12
GETTY IMAGES/ISTOCKPHOTO (4)

Miami Beach, top, launched a hotel discount promotion that is unusual because it includes Thanksgiving and Christmas
vacations. More people are booking trips to Paris, Expedia says. Phoenix and Barbados, bottom left and right, also are
seeing increased bookings for the holiday travel season as a result of disruption at other popular destinations this year.

FILM

HUMOR AND SADNESS IN THE OZARKS

BY RICHARD TURNER
ABOUT 20 MINUTES into Martin
McDonagh’s new film, Mildred,
played by Frances McDormand, de-
livers a tongue-lashing soliloquy to
the local priest. He has come by her
house to warn her against taking
on the powers-that-be in their
small town. Her sudden rant, invok-
ing the history of the Crips and the
Bloods (don’t ask), tears the clergy-
man limb from limb—and leaves
the audience in delight, if slightly
uneasy.
For an Anglo-Irish playwright
like Mr. McDonagh, it is no big
stretch to take a swing at the
Catholic Church. “That’s what it’s
there for,” he says. “They’re been
doing it to us for years.”
That’s just one scene in “Three
FOX SEARCHLIGHT PICTURES
His style is a crazy quilt of over-
the-top moments, jolting from exis-
tential sadness to dopey comedy,
extreme violence to casual lunacy. A
rural cop in the film can be a bum-
bling yokel one minute, a vicious
racist the next, and maybe achieve
a measure of nobility later on. The
music will sway from a mournful
Irish ballad to a Townes Van Zandt
song to a Mozart piano sonata.
Mr. McDonagh’s first film,
2008’s black comedy “In Bruges,”
about two hit men in the gar-
goyled Belgian city, did well in Eu-
rope, but fared badly when it
played in the States. Some critics
complained they couldn’t decide
whether it was slapstick or melo-
drama, comedy or tragedy.
“That’s exactly what it was sup-
posed to be—hasn’t anyone seen
Billy Wilder?” says Mr. McDonagh,

Billboards Outside Ebbing, Mis- who says he reads his reviews “a

souri,” however, and soon he’s
moved on to something different.
Like the movie’s marketing-un-
friendly title—“I like its clunki-
ness”—he’s the opposite of pan-
dering: This writer/director does
Woody Harrelson and Frances McDormand star in Martin McDonagh’s ‘Three Billboards Outside Ebbing, Missouri.’ what he wants.
little too much,” partly because of
his background in theater, where
critics can destroy a play. “Maybe
people have forgotten, maybe
they’ve been spoon-fed—you go
with your girlfriend to see a com-
Please see FILM page A12
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

Expedia says demand
for tickets from the U.S.
to London, far left, is up
nearly 20% for
Thanksgiving trips. The
Westin St. John Resort
Villas in the U.S. Virgin
Islands, left, canceled all
reservations through
June 30 because of
extensive damage from
Hurricane Irma.

dinate resumption of
flights with hotel re-
opening plans, says St.
Croix received less
damage than St.
Thomas and St. John.
Some major hotels
on St. Croix will reopen
Hurricane Maria, to guests ahead of the holidays.
Hurricane Effect hotels that are On St. Thomas, significant re-
able to operate sorts will be closed most of next
GETTY IMAGES (2)

Change in airline tickets for Christmas

sold from the U.S. to selected are housing relief year. “The good news is that a
countries, compared with 2016. workers. Two year from now, we’ll have all new
cruise ships have product” on St. Thomas, Ms. Nich-
Jamaica 39% also ceased nor- olson-Doty says. Cruise-ship visits
Cayman Islands 37 mal operations to will resume service to the island

TRAVEL
going recovery,” he says. air ticket Bahamas 9 provide housing this year. Restaurants and shop-
Some destinations have bene- prices are for relief workers. ping will be open, many beaches
fited from both increased airline down around –31 St. Maarten It will be some look good and water has tested
service and travelers displaced 10%, Expedia –33 U.S. Virgin Islands time before tour- safe for swimming, she says. “Na-
Continued from page A11 from places hit hard by storms. In- says. –37 Puerto Rico ism resumes, ture just has a way of taking care
about another week to book for terest is up for holiday trips to Eu- Hawaii is travel companies of itself,” she says.
Thanksgiving before prices start rope, Kayak says, with the number benefiting Note: Tickets purchased before October 20 say. Ms. Nicholson-Doty says the
spiking, according to fare-tracking of searches surging 25%. from increased Source: Airlines Reporting Corp. On the U.S. Vir- tourism department is working to
firm Hopper. For Christmas, Bookings on Expedia for a trip airline service THE WALL STREET JOURNAL. gin Islands, some set up volunteer opportunities for
prices typically are lowest in from the U.S. to London over from the West resorts have de- visitors to participate in cleanup
early October and start rising Thanksgiving are up 20% com- Coast to the islands, and perhaps clared themselves closed for a year and rebuilding efforts. And condi-
slowly before big increases hit in pared with last year, with roughly from people choosing to avoid Ca- or more while they rebuild. Others tions on the islands are improving
early December. a 5% drop in the average ticket ribbean beaches this year. ARC able to operate are housing relief slowly. Airports on St. Thomas and
Hopper chief data scientist Pat- price. That’s largely a result of says the number of tickets to Ho- workers at least through the end St. Croix are operational, schools
rick Surry says he thinks people more flights across the Atlantic nolulu for Christmas is already up of October. have reopened and there are no
may be waiting longer to make creating more competition. It’s the 17%. Prices have run 5% higher Tourism commissioner Beverly longer huge lines at grocery stores
plans this year. “Uncertainty is same story for Christmas: Paris is than last year. Nicholson-Doty, who has been vis- and gas stations. “We are celebrat-
still out there from storms and on- almost 60% more popular, while On Puerto Rico, devastated by iting airline headquarters to coor- ing each milestone,” she says.

FILM
the police chief, William Wil- and plays, keeping them separate.
loughby (Mr. Harrelson). One by “If a story is set in a room with
one, they say, “Raped While Dy- four characters, it’s going to be a
ing”; “And Still No Arrests?”; play.” He says he has no interest in
Continued from page A11 “How Come, Chief Willoughby?” making films with higher budgets
edy, and you go on your own to see She’s dour, determined and because he feels the producers
some f---ed-up dark piece.” He says hardly lovable. “Lots of stuff she would meddle more. He was out-
he’s found the right balance in does is reprehensible,” says Mr. spokenly inhospitable to studio in-
“Three Billboards.” He confesses McDonagh. But Mildred does get terference on “In Bruges,” but he
that his second film, 2012’s “Seven their attention. says he was left alone on this one.
Psychopaths,” about a screenwriter, Mr. McDonagh, 47, wrote the He wants to stay under the radar,
gangsters and dognappers in Holly- film with Ms. McDormand in mind. like the very private Ms. McDor-
wood, with Woody Harrelson and She has said she used John Wayne mand. He is dutifully promoting
Sam Rockwell—who are also in his as a model for Mildred, along with the movie, but dreads parts of the
new film—went off-kilter. 1970s blaxploitation star Pam drill. He doesn’t want to name the
“It’s my fault,” he says. “I didn’t Grier, but without the sexuality. late-night talk show on which he’s
quite capture what I captured in “She’s brilliantly deadpan,” he nervously waiting to appear next
the first one or this. I didn’t want it says. “She knows what’s funny, but week. “Don’t put it in,” he begged.
to be smartass, but it kind of was.” she doesn’t seek or need affection, “People might actually watch it.”
FOX SEARCHLIGHT PICTURES

But festival viewers are buying even, let alone a laugh.” He doesn’t want to be “face-fa-
into this one: it won the people’s “Three Billboards,” though mous,” even though he burst into
choice award at the Toronto festi- filmed near Asheville, N.C., is set in theatrical recognition in the U.K.
val. Fox Searchlight thinks that its a fictional town in the Ozarks. Un- in 1996 with “The Beauty Queen of
popular, foul-mouthed online easy relations between the police Leenane,” first in Ireland, then
trailer, plus Oscar buzz for Ms. and Ebbing’s African-American resi- London and later Broadway. Seven
McDormand and more, will pro- dents are part of the story. Amid more productions, including “The
duce an indie hit. Made with a the shifting moods of humor and Writer/director Martin McDonagh on the set of ‘Three Billboards.’ Pillow Man” and “A Behanding in
budget of about $15 million, the sadness there are bits about politi- Spokane,” have followed, winning
movie opens Nov. 10. cal correctness, the media, identity think you can have a story about a covering the humanity in others accolades and awards.
The film begins seven months politics. There is a car salesman, a working-class woman in a south- and moving past the anger. “But “Hangmen,” a hit in London two
after an unimaginable crime in- dwarf (Peter Dinklage) who endures ern state who’s going to war with it’s not an easy, ‘we-should-all- years ago, is coming to New York
volving Mildred’s teenage daugh- cringe-making trash talk. There is a the cops and not address that at love-each-other’ type of movie. next year, and he’ll spend a few
ter. She is furious that the investi- scorching diatribe about the N- least in an oblique way,” he says. They’re usually really bad.” months in the city helping out. He
gation has cooled and the police word from Mr. Rockwell’s character. “The story isn’t about racialist is- Even if “Three Billboards” wins has written another play that
have no suspects. To get their at- Mr. McDonagh has no intention sues, but it’s certainly something an audience or statuettes, Mr. Mc- should open in London next fall.
tention, she rents three scruffy of sounding preachy. He has his she would use as a weapon.” Donagh says he’ll take another He says he can’t reveal what it’s
billboards on a remote road and opinions, but he’s interested in the He says the movie is really break before his next movie, and about, “but it’s my most f---ed-up
displays a message addressed to characters, not the issues: “I don’t about people muddling along, dis- continue to toggle between movies play yet.”

Weather 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.
20s 10s Edmonton
d t 10s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 65 Well 24 Lummox
40s 30s
30s 20s 0s
organized
Calgary
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V
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Winnipeg
ip 17 18 19 27 Conflict setting
Seattle
ttl 30s 20s 67 Kmart’s parent
50s
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Por
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Helena Montreal
40s Bismarckk Ottawa 68 Casual refusal film
Billings Augusta
A t
40s 23 24 25
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p / . Pa
pls Paul Toronto
T Albany
A bany
bany 50s 30 Not lit
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ll Hartford
rtford 60s 31 Delay
Milwaukeek Detroit Buffalo
40s Cleveland
Cleve d 70s New Yorkk
ew Y 34 35 36 37 2 Pilates target
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C h g 32 Tundra’s
Cheyenne
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Sacramento 50s 70s Omahah 70s Ph Philadelphia
hil d lphi
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50s Indianapolis
di p Pittsburgh
Pit b g h 38 39 40 3 Prairie dog neighbor
50s Kansas 90s
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City Springfield
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l igh
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Nashville components “His Accidency”
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Ph Albuquerque
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gh 52 53 54 55 56 57 58 59 6 Apple of the 39 Matches
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an Antonio Tampa for whom an
30s 80s plethora
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l l Showers Flurries 66 67 68 Antarctic sea
A h
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90s is named 47 Crafty
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COLLABORATIONS | By Dan Fisher 8 Grand 51 Huskies’ home
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 21 All at once 43 Really popular 9 Like many Etsy 52 Coup target
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Phoenix 82 60 pc 82 62 pc Hong Kong 83 71 s 80 69 c 100 pfennigs a shine to it
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THE WALL STREET JOURNAL.
What the Nazis Took
A window into Cornelius Gurlitt’s hoard, which contained hundreds of Nazi-looted works
BY A.J. GOLDMANN
Bern, Switzerland, and Bonn
WHEN CORNELIUS GURLITT was
stopped on a train between Zurich
and Munich in 2010 with €9,000
($12,000), no one could have imag-
ined that the ensuing investigation
would lead to the discovery of the
largest trove of European art since
the end of World War II.
Inside Mr. Gurlitt’s Munich
apartment and, later, his house in
Salzburg, Austria, authorities
found over 1,500 works inherited
from his father, the museum direc-
tor and collector Hildebrand
Gurlitt. Because of Gurlitt père’s
well-known dealings with the Third
Reich, much of the trove is sus-
pected of being Nazi-looted art.
Now the world gets its first
peek inside the hoard with
“Gurlitt: Status Report,” a two-
pronged show at the Kunstmuseum
Bern and the Bundestkunsthalle
Bonn that displays 375 works from
the trove. The exhibits assess the
findings from the point of view of
Nazi aesthetics and cultural policy,
the wartime art trade and the cur-
rent state of provenance research
into Nazi-plundered works, as well
as Hildebrand Gurlitt’s fascinat-
ingly slippery biography.
After the story broke in 2013,
Cornelius was thrust into the me-
dia spotlight. He agreed to cooper-
ate with a task force investigating
his collection and endorsed the
Washington Principles, a set of
guidelines for restitution of art
confiscated by the Nazis. In May
2014, when he died at the age of
81, it was revealed that he had des-
ignated the Kunstmuseum Bern his
sole heir.
Mr. Gurlitt’s choice remains a
mystery. Given that this museum
has received one of the largest do-
nations ever given to a public in-
stitution, the Swiss exhibit is
strangely anticlimactic. As curated
by Nikola Doll, Matthias Frehner,
Georg Kreis and Nina Zimmer, the
show’s theme is art that the Nazis
considered “degenerate.” With the
exception of three impressive oil
paintings, including a newly dis-
covered self-portrait by Otto Dix,
there are only works on paper
here. This portion of the show
seems, at least partially, designed
to deflate expectations. These
graphic works constitute a repre-
sentative sample of the trove:
1,246 of the 1,566 artworks that
Bern has inherited are prints,
sketches or watercolors (180 paint-
ings and 28 sculptures number
among the rest).
Cornelius Gurlitt’s flat file cabi-
net, used to house (or hide) many
of the 156 works seen here, sets
the tone. The Bern exhibit is highly
didactic, focusing on the current
state of provenance research.
In 1937, the Nazis began empty-
ing museums of 20,000 artworks
deemed to “insult German feeling,
or destroy or confuse natural form
or simply reveal an absence of ade-
quate manual and artistic skill.” In
Bern, 76 of the displayed works
were confiscated from German mu-
seums as part of the Degenerate
Art Purge between 1937 and 1938.
An additional 38 in that show ap-
pear very likely to have also been
confiscated during that period. The
show concludes that the majority
of the art on display—among them
works by Dix, Oskar Kokoschka and
Franz Marc—was emptied from
collections and acquired by Hilde-
brand Gurlitt starting in 1940.
Works by Ernst Ludwig Kirchner,
Erich Heckel, Emil Nolde and Max
Beckmann—the four artists most
looted by the Nazis—figure promi-
nently in both sections of “Gurlitt:
Status Report.”
Much of the pilfered work
wound up at auctions in order to
fund the Third Reich. Switzerland
became the stage for much of this
activity, including an infamous
auction held on June 30, 1939, by
Galerie Fischer in Lucerne. Among
the 125 lots were works by Van
Gogh, Klee and Picasso.
It isn’t known whether Gurlitt
was present that evening or
bought works there through a sur-
rogate. One acquisition was Otto
Mueller’s oil painting “Portrait of
Maschka Mueller” (1924-25).
i i i (1911), one of two watercolors by
After fairy-tale Switzerland, the
nondescript urban area of Bonn’s
Museum Mile seems especially
drab. The show here, which fea-
tures an additional 240 works, is
much more engaging, argumenta-
tive and, ultimately, satisfying. It is
also more visitor-friendly, with elo-
quent wall texts in both German
and English. (In Bern, pamphlets in
English and French will supple-
ment the German-only text.)
The Bundeskunsthalle has a
ART REVIEW
Below: Ernst Ludwig Kirchner’s ‘Two Nudes on a Bed
(Two Models)’ (c. 1907/08); clockwise from top
right: Otto Dix’s ‘Rifleman From Infantry Regiment
103’ (undated); Franz Marc’s ‘Seated Horse
(Sitzendes Pferd)’ (1912); Cornelius Gurlitt’s home in
Salzburg, Austria, with works by Monet, Picasso and
Rodin visible in the background; Thomas Couture’s
‘Portrait of a Young Woman’ (1850-55)
complex story to tell, and curators
Rein Wolfs and Agniezka Lulińska
tell it with bravura. They brings to-
gether many strands of Hildebrand
Gurlitt’s biography, his family his-
tory, and the art on display, while
cogently arguing how the fate of
art in Nazi-occupied Europe is tied
to the Final Solution.
Wall text and archival materials
describe anti-Jewish decrees, the
auctioning of Jewish property and
the fates of individual Jewish col-
lectors. Thirty lithographs by Ko-
koschka record the subtly changing
expressions of Kamilla Swoboda in
1920. A year later, they were issued
as a portfolio by the Viennese pub-
lisher Richard Lányi. In 1942, both
the artist’s subject and his pub-
lisher were deported to concentra-
tion camps.
When the Gurlitt story broke it
caused a media frenzy in Germany.
The value of the cache was esti-
mated at over a €1 billion—an in-
flated figure—and tabloids dubbed
Hildebrand Gurlitt “Hitler’s art
dealer.” The cover of Focus, the
magazine that broke the story,
screamed “The Nazi Hoard” above
a photo of Hitler superimposed on
Marc’s “Horses in Landscape”
that artist on display in Bern.
That kitschy cover, part of an
oversized collage, greets the visitor
to the Bundeskunsthalle. Under-
neath it is a suitcase from Corne-
lius Gurlitt’s apartment that was
found to contain over 100 works on
paper when a customs officer
opened it. This is a bit of mischie-
vous indirection at the beginning
of a fascinating, sobering exhibit.
The story that emerges is not one
of priceless masterworks popping
LIFE & ARTS
out of closets. It is the story of
Hildebrand Gurlitt, a connoisseur
who became an art dealer for the
Third Reich: a man who, during the
Weimar period, championed Ex-
pressionism and the Bauhaus at
museums in Hamburg and
Zwickau; a man who attended soi-
rees hosted by many of the Jewish
Thursday, November 2, 2017 | A13
tion. He became a museum direc-
tor in Düsseldorf and spent his
final years rehabilitating modern
art in postwar Germany, organizing
many shows. At the same time, he
lied to collectors and their descen-
dants about the whereabouts of
artwork they wanted back.
In 1938, the Leipzig music pub-
lisher Henri Hinrichsen sold Carl
Spitzweg’s “Playing the Piano” to
Gurlitt’s gallery in Hamburg for
300 Reichsmarks. A few years
later, Gurlitt flipped the drawing
for 12,000 RM to the Linz Commis-
sion, whose task was to furnish art
for the planned Führermuseum in
Hitler’s hometown of Linz, Austria.
Hinrichsen was killed in 1942 in
Auschwitz. After the war, Gurlitt
and his wife, Helene, repeatedly
denied to the publisher’s descen-
dants that they still had the draw-
ing. In Bonn, Spitzweg’s domestic
sketch is displayed alongside the
damning correspondence between
the Gurlitts and Hinrichsen’s fam-
ily.
The first work of art on view in
Bonn is Thomas Couture’s “Portrait
of a Young Woman” (1850-55). Just
over a week ago it was established
as having once belonged to
Georges Mandel, the French Jewish
politician and resistance leader ex-
ecuted by the Vichy government in
1944. The Couture is only one of
numerous works snatched up from
occupied France. Many were des-
tined for the Führermuseum, while
others Gurlitt appears to have col-
KUNST- UND AUSSTELLUNGSHALLE DER BUNDESREPUBLIK DEUTSCHLAND GMBH (TOP LEFT); ©KUNSTMUSEUM BERN (3); GURLITT ESTATE (PHOTO)
lected for himself.
Works on paper proved espe-
cially attractive, since they were
easy to transport. In the Bonn ex-
hibit, the range is breathtaking:
Dürer to Daumier, Seurat to Sig-
nac, Cranach to Courbet. Rounding
out the display are two additional
works from outside collections that
may have passed through Gurlitt’s
hands. The most impressive of
these include Peter Paul Rubens’s
imposing “St. Gregory With Ss.
Domitilla Maurus And Papianus”
(1606) and Hans Makart’s sensually
aesthetic “Female Falconer” (c.
1880), on loan from Munich, which
Hitler once gave Hermann Göring
as a birthday present.
A 1964 letter by Renate Gurlitt,
Cornelius’s younger sister, contains
a rare acknowledgment of her fa-
ther’s tainted collection. “For us, I
sometimes think, his most per-
sonal and most valuable legacy has
turned into the darkest burden,”
she wrote her brother. “What we
have is locked away in the graphics
cabinet or kept behind pinned-up
curtains—no one sees it, no one
enjoys it.” It may have taken many
decades, but that lock has finally
sprung open.
Mr. Goldmann writes about
European arts and culture.
Gurlitt: Status Report
collectors whose property he later “Degenerate Art”—Confiscated
helped to loot; a man who lent his and Sold
skill and expertise to the Commis- Kunstmuseum Bern, through March
sion for the Exploitation of Degen- 4, 2018
erate Art.
He was also a man who later Nazi Art Theft and Its Conse-
used his heritage—he had a Jewish quences
grandmother—to help clear him- Bundeskunsthalle, Bonn, Nov. 3-
self of any charges of collabora- March 11, 2018
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL.
A24 (2)
‘Lady Bird’: A Surpassing
High-School Beauty
Greta Gerwig’s debut as a writer-director follows a young woman through her senior year
GRETA GERWIG’S “Lady Bird”
has so many great zingers that it’s
hard to pick a single sample, but
here’s one for openers. The hero-
ine of the title, captured in the
cockeyed fullness of adolescence
by Saoirse Ronan, has just finished
her driving test, and her examiner
tells her she passed. “Really?
Thanks!” Lady Bird says. “It’s not a
thanking situation,” the examiner
replies. “You either pass or you
don’t.” Ms. Gerwig’s movie is very
much a thanking situation. Once
you’ve seen it—even while you’re
watching it, with a grin stuck on
your face—you want to give thanks
for how wonderful it is, how wise
and funny and full of grace.
Maybe this shouldn’t come as a
huge surprise. Since her 2010
breakout performance as the wist-
ful personal assistant in Noah
Baumbach’s dark comedy “Green-
berg,” Ms. Gerwig has taken her
place as one of the pre-eminent
actors of our time, and good ac-
FILM REVIEW | By Joe Morgenstern
tors often make good di-
rectors. Furthermore,
she’s no stranger to the
elusive art of the screen-
play, having co-written,
with Mr. Baumbach—as
well as starred in—two
of his most affecting
films, “Frances Ha” and
“Mistress America.”
Still, “Lady Bird,” the
first feature Ms. Gerwig
has written and directed
on her own, feels, quite
astonishingly, like the
work of a seasoned film-
maker, and a fearless
one. It’s conventional in
form, a loosely autobiographical
coming-of-age story that follows a
student at a Catholic high school
in Sacramento , Calif., through her
senior year, which includes the
parallel dramas of sex, parental
conflict, artistic ambition and col-
lege acceptance. But the deeper
drama of Lady Bird’s life is one of
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LIFE & ARTS
self-acceptance, while searching
out the self to accept.
She has yet to accept her given
name, Christine; Lady Bird is the
name she gave herself, she ex-
plains earnestly to her drama
teacher, Father Leviatch (Stephen
McKinley Henderson). Lady Bird’s
life is a one-for-the-seesaw state
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Thursday, November 2, 2017 | A15
Letts, as Lady Bird’s loving, sweet-
tempered father, Larry; and the
matchless, if not peerless, Ms.
Metcalf, whose portrayal of her
mother is heartbreaking and hilar-
ious in equal measure.
Marion is a past mistress of
passive aggression. She can’t help
being negative because her fears
and insecurities keep her from
seeing herself as she is, a bright
woman with a good heart and a
down-turned mouth that’s frozen
in regret. Larry is putting it mildly
when he tells his daughter that
she and her mother both have
strong personalities. Their person-
alities are combative, complemen-
tary and mercurial. Both mother
and daughter are given to flights
of cold hostility and spasms of
melting love, and watching the
two together is a rare treat. Ms.
Ronan was extraordinary as the
ardent heroine of “Brooklyn,” so
much so that she had audiences
wondering when, if ever, she’d get
another role fully worthy of her
gifts. This is it, all of it, the tender
yearning together with the envy
and guile of a girl from the wrong
side of the tracks.
I’m using that well-worn phrase
because Lady Bird uses it to de-
scribe herself, but in a way that
combines the subtlety of Ms. Ger-
wig’s script with the delicacy of
Ms. Ronan’s acting. “Are you from
the neighborhood?” asks a hand-
some classmate. “No, I’m from the
wrong side of the tracks,” she re-
plies with what could be a whiff of
apology or a tiny puff of pride; this
girl on the verge of adulthood may
already have begun to see herself
as a literary character, or a perfor-
mative legend. I’d love to tell you
what she learns about herself in
the end, but Lady Bird’s epiphany,
at once transcendent and down to
earth, is too lovely to spoil. I’ll
simply say it’s in the same league
with—and may have been meant as
a tribute to—the enduring beauty
of Thornton Wilder’s “Our Town.”
(Like Lady Bird, Ms. Gerwig grew
up in Sacramento.)
So many movies these days
market generic characters to the
audience by giving them readily
comprehensible personality traits
that other characters comment on
just to make sure everyone under-
stands. “Lady Bird” stakes out a
specific family, surrounds it with
Saoirse Ronan, above, and concentric circles of life at a spe-
Tracy Letts and Laurie cific time (2002, less than a year
Metcalf, left, in Greta after America’s transformation),
Gerwig’s ‘Lady Bird.’ then presents every character as a
mystery we’re free to explore on
of alternation between our own. Lucas Hedges and Timo-
asserting and deploring thée Chalamet are, respectively,
herself, with dependable Danny and Kyle, two loves of Lady
help in the deploring Bird’s life. Jordan Rodrigues is Mi-
phase from her end- guel, her older brother. Beanie
lessly negative mother, Feldstein is her friend Julie, un-
Marion, a nurse played swervingly faithful as long as she’s
by Laurie Metcalf. allowed to be. Odeya Rush is
At this point it’s Jenna, a rich kid from the right
worth noting that Ms. side of the tracks, at least in Lady
Gerwig has assembled a Bird’s estimation.
cast one might call Jon Brion contributed another
peerless, except that of his distinctive scores. Sam Levy
several of her players are peers in did the elegantly spare cinematog-
a self-effacing aristocracy of the raphy. The film was edited by Nick
American stage and screen: Mr. Houy. “I wish I could live through
Henderson, who gives his small something,” Lady Bird says long-
role memorable resonance; Lois ingly at the beginning of her story.
Smith, as Sister Sarah Joan, a By the end she, and we, have lived
kind, no-nonsense teacher who through a lot, and all for the good.
tells Lady Bird, “You have a per- This is one of the most endearing
formative streak, I think”; Tracy movies I’ve seen in years.
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Thursday, November 2, 2017
Astros Smash Their Way to a Title
BY JARED DIAMOND
LOS ANGELES—Jeff Luhnow in-
herited the worst team in the ma-
jors in the autumn of 2011, tasked
with the unenviable responsibility
of fixing a broken organization
with no direction, no plan and no
answers. The Houston Astros lost
106 games the season before Luh-
now arrived, saddled with a farm
system that ranked among the
league’s worst and a budget that
prevented them from spending
their way out of the abyss.
Less than six years later, those
Astros ascended to the top of the
baseball world, validating a para-
digm-shifting experiment that up-
ended the industry’s establish-
ment. They won the World Series
for the first time in a franchise
history that dates back to 1962,
defeating the Los Angeles Dodgers
with a 5-1 victory in Game 7.
After a heavyweight slugfest
for the ages that featured a bar-
rage of haymakers and crushing
blows on both sides through the
first six contests, Wednesday
night proceeded mostly drama-
free. It wrapped up an otherwise
thrilling matchup between two
evenly matched opponents that
will still go down as one of the
most memorable World Series
ever staged.
“Our sport is loved for many
reasons,” Astros manager A.J.
Hinch said. “This World Series
will be one of them.”
The Astros once again am-
bushed Yu Darvish on Wednesday,
exploding for five quick runs and
knocking him out in the second
inning. Center fielder George
Springer blasted another home
run, making him the first player
ever to homer in four straight
games of the same World Series.
Los Angeles ace Clayton Ker-
shaw threw four innings of shut-
out relief, redeeming himself from
his meltdown in Game 5, but it
didn’t matter. The Astros’ pitchers
somehow held the Dodgers in
check, who stranded 10 runners
on base. Charlie Morton retired
Corey Seager on a groundout to
second base for the last out,
sparking a delirious celebration.
It marked the end of a bold
journey that transformed the As-
tros from a perennial bottom-
WORLD SERIES
TRIUMPHS ON THE
FIELD, QUESTIONS OFF
BY GREGORY ZUCKERMAN,
JUSTIN BAER AND MARGOT
PATRICK
Not long after he led the pur-
chase of the Los Angeles Dodgers
for a record $2.15 billion in 2012,
Mark Walter met with the team’s
president, Stan Kasten, to discuss
how to build a winner. Mr. Kasten
laid out two traditional strategies:
Focus on scouting and grooming
young players—a tactic that is in-
expensive yet risky—or sign
proven but high-priced free
agents. “Let’s do both,” said Mr.
Walter, according to people famil-
iar with the conversation.
Five years later, the Dodgers are
playing in the World Series for the
first time since 1988, with a $240
million roster that is the highest
payroll in baseball but also fea-
tures a number of home-grown
stars. A win over the Houston As-
tros Wednesday night would give
the Dodgers the title Mr. Walter
promised he would deliver when
he bought the team.
An unconventional approach
and rapid results are typical for
the silver-haired 57-year-old, chief
executive officer of Guggenheim
Partners LLC, who in less than two
decades built his Chicago-based
firm into a powerhouse.
But after years operating pri-
marily behind the scenes, the suc-
cess of his team, a complicated
personal life of late, and turmoil
inside Mr. Walter’s $295 billion in-
vestment firm have forced him to
adjust to a higher profile.
“At almost any cost, he’d prefer
to be out of the limelight,” said
Tim Knowles, managing partner of
the Academy Group, a program
backed by Mr. Walter to prepare
underprivileged young people for
professional careers.
Guggenheim has endured a se-
ries of executive departures as
well as upheaval surrounding the
status of a key executive, a woman
George Springer celebrates after hitting a home run in the second inning of Game 7 to lead the Houston Astros to a 5-1 win over the Los Angeles Dodgers.
dweller into a powerhouse, prov-
ing the efficacy of their radical
rebuilding strategy.
Plenty of executives before
Luhnow struggled with some ver-
sion of the Astros’ conundrum,
but none of them ever attacked
the puzzle quite like this: Instead
of trying to improve right away,
they decided to make their roster
worse—on purpose.
They dealt away any asset with
even a modicum of value in order
to stockpile prospects. They re-
fused to waste a single cent on
outside talent in a veiled effort to
maintain respectability. They let
themselves sink to unparalleled
depths, averaging 103 losses in
Luhnow’s first three years at the
helm, to land the coveted high
draft picks that would rescue
them. From 2011 through 2013,
Houston set an ignominious re-
Mr. Walter has had a personal re-
lationship with, according to cur-
rent and former employees. Earlier
this year, the U.S. Securities and
Exchange Commission also began
looking at Guggenheim’s opera-
tions, certain investments and dis-
closures, according to people fa-
miliar with the situation.
A spokesman for Guggenheim
and Mr. Walter has said that “if
there were a relationship, the pros-
pect of a nonbusiness relationship
would have been fully and
promptly disclosed to the appropri-
ate parties at Guggenheim in accor-
dance with established processes
and procedures, which then would
have been fully implemented, to
avoid improper influence or favor.”
Guggenheim executives have
said they are cooperating with the
SEC’s examination.
There are no indications the
Guggenheim unrest will impact the
team, but for Dodgers fans the
prospect is an unsettling one. The
stormy tenure of the previous
owner, Frank McCourt, was
marred by an acrimonious divorce
that resulted in the team filing for
chapter 11 bankruptcy. Major
League Baseball said he used team
assets “to fund his lavish lifestyle.”
Mr. McCourt denied the allega-
tions, but agreed to sell the Dodg-
ers to Mr. Walter’s group.
A native of Cedar Rapids, Iowa,
and a graduate of Northwestern
Law School, Mr. Walter in 1996 co-
founded Liberty Hampshire Co.
LLC, a company focused on so-
called structured products. Hoping
to create a financial-services
power, in 2000 the founders
merged Liberty with a small group
that managed money for the sto-
ried Guggenheim family.
Mr. Walter took the helm of the
new firm, operating from his office
in Chicago, where he was a Cubs
ticket holder. As Guggenheim
made a series of insurance acquisi-
tions and expanded into invest-
ment banking, Mr. Walter pushed
SPORTS
WORLD SERIES
cord by posting triple-digit de-
feats in three consecutive cam-
paigns.
At first, Luhnow and his front
office of outsiders faced intense
scrutiny from the sport’s ortho-
doxy for their radical rebuilding
strategy, the criticism rolling in
swift and fierce. The concept of
intentionally “tanking” seemed to
violate the spirit of competition,
and the Astros’ near-slavish devo-
tion to data analytics sparked
skepticism of their methods.
They didn’t care: The Astros
viewed mediocrity, not ineptitude,
as the ultimate failure, a fate that
would let them float, but not soar.
Nobody doubts the Astros any-
more. They finished 2017 with a
ledger of 101-61, boasting a dy-
namic offense that plated more
runs than any team this decade.
Houston’s lineup blasted 15 home
for faster growth.
Mr. Walter added bond trader
Scott Minerd as investment chief
and recruited Alan Schwartz, a
former Bear Stearns CEO, to run
the banking unit. Current and for-
mer executives in Guggenheim’s
asset management and investment
banking businesses say they’ve
had few interactions with Mr. Wal-
ter. “Most people wouldn’t recog-
nize Mark if they passed him walk-
ing down the hall,” says a former
executive of the investment unit.
The 2012 Dodgers purchase was
made by an entity called Guggen-
heim Baseball Management LLC
and was backed by Mr. Walter, Mr.
Kasten, Los Angeles Lakers great
Magic Johnson and others inves-
tors, along with funds from insur-
ers controlled by Guggenheim.
Mr. Walter, the team’s chairman,
functions as the ownership group’s
most important voice. He is in-
volved in the team’s day-to-day ac-
tivities. “He will routinely share
his thoughts with us mid-game,
good or bad,” Mr. Kasten says.
Some at Guggenheim were luke-
warm toward the Dodgers deal.
Mr. Minerd, the firm’s top execu-
* *****
runs in the World Series, with 11
of them coming off the bat of
their first four hitters: George
Springer, Alex Bregman, Jose Al-
tuve and Carlos Correa—a group
of transcendent homegrown stars
with an average age of just 25.
In many ways, the Astros fol-
lowed in the footsteps of the Chi-
cago Cubs, who snapped their
108-year championship drought in
2016 after employing a similar
blueprint under Theo Epstein. The
Cubs ultimately used their vast fi-
nancial resources to speed up the
process in a way the mid-market
Astros couldn’t, but even Houston
demonstrated a willingness to go
for it when the opportunity arose.
At the end of August, with their
first division crown since 2001 all
but settled, the Astros added the
final touch to a squad destined for
greatness. They traded three mi-
tive in Southern California, was
given the chance to invest with
Mr. Walter and passed, people fa-
miliar with the matter said. Mr.
Schwartz discussed a potential in-
vestment with Mr. Walter, but no
deal materialized, two people said.
Over a year ago, Mr. Walter be-
gan spending more time in the Los
Angeles office, according to cur-
rent and former executives. A
Guggenheim spokesman said Mr.
Walter began traveling to Califor-
nia more frequently after he
bought the Dodgers. The execu-
tives say Mr. Walter sometimes
met behind closed doors for ex-
tended periods with Alexandra
Court, a lawyer and rising star at
the firm who had climbed to be-
come Guggenheim’s global head of
institutional distribution.
Ms. Court fired some employees
while imposing restrictions on the
contact executives could have with
clients, moves that were approved
by senior leadership but sparked
some internal complaints, accord-
ing to people close to the matter.
In January, Mr. Walter co-authored
a memo to staff warning them to
follow new rules issued by Ms.
THE WALL STREET JOURNAL.
ROBERT HANASHIRO/REUTERS
nor-leaguers for veteran right-
hander Justin Verlander, agreeing
to pay him $40 million over the
next two seasons because they
knew his presence gave them
their best chance at a title.
The move worked, as the As-
tros on Wednesday eliminated the
Dodgers—a team with nearly dou-
ble their payroll.
In the end, the Astros pounded
their way past everything the
Dodgers threw at them. And, in a
cosmic way, it felt deserved, for
reasons that went beyond sports.
When Hurricane Harvey battered
Houston at the end of August, the
Astros emerged as a welcome dis-
traction in the wake of tragedy.
On Wednesday, in their 56th
season of existence, the Astros
honored their city the best way
they could: with their first World
Series championship.
Mark Walter, chief executive
officer of Guggenheim Partners, is
adjusting to a higher profile.
TJORDAN STRAUSS/INVISION/ASSOCIATED PRESS
Court. He wrote that violations
would affect annual bonuses.
A Guggenheim spokesman said
the memo “did not affect morale.”
Mr. Minerd is among those at
the firm who expressed his unhap-
piness with Ms. Court’s growing
clout, the people said, leading to
tension with Mr. Walter. Guggen-
heim executives, including Mr.
Minerd, have said “the character-
ization that our business is in tur-
moil is just plain wrong.”
The unrest escalated when a Los
Angeles blog reported that a vehicle
that included Mr. Walter as a co-in-
vestor purchased a $85 million
mansion in Malibu, Calif.. That vehi-
cle separately bought a $13 million
Pacific Palisades home that eventu-
ally was occupied by Ms. Court, ac-
cording to people familiar with the
matter, though Mr. Walter was not
an investor in that property.
Ms. Court, who didn’t respond to
requests for comment, is on sabbat-
ical from Guggenheim and negotiat-
ing a potential separation from the
firm, according to people familiar
with the matter.
—Jared Diamond contributed to
this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Mueller Drains the Swamp
To understand
the dance of
death in Wash-
ington now be-
tween Donald
Trump, Robert
Mueller and
WONDER
LAND the media, you
need to watch
By Daniel
the first 10
Henninger
minutes of
“The Wild
Bunch,” Sam Peckinpah’s classic
movie of the Old West.
It shows a trapped scorpion
struggling in the dirt as it
fights off hundreds of ants. A
group of children are watching
the scorpion fight the ants,
and sometimes they poke it
with a stick.
In Washington’s wild bunch,
the scorpion is Donald Trump
and the children delighting in
his struggle are the Washing-
ton press. Robert Mueller is
their poking stick.
No one can stop watching
this grisly movie, and that’s
too bad, because in the back-
ground something real is going
on that Americans cared about
long before Donald Trump be-
came president.
The whole world knows that
Mr. Mueller’s special counsel’s
office announced an indict-
ment of former Trump cam-
paign manager Paul Manafort,
charging him with evading
taxes on payments of millions
of dollars to his lobbying firm
from the former Ukrainian
government run by Viktor
Yanukovych.
There was another, less no-
ticed event this week, but no
one in Washington missed it,
or its significance. Within
By Karl Rove
O
ne of the striking things
about American politics
these days is the numb-
ing pace of events.
On Friday, Americans
learned Special Counsel Robert
Mueller had filed the first in-
dictments in his investigation
into Russian interference in the
2016 presidential election. On
Sunday, U.S. commandos cap-
tured one of the prime suspects
in the 2012 attack in Benghazi,
Libya. Monday saw Donald
Trump’s former campaign
chairman Paul Manafort and a
longtime associate indicted on
12 counts that included tax
fraud, money laundering and
conspiracy. It was also revealed
that Trump campaign foreign-
policy adviser and political
wannabe George Papadopoulos
had pleaded guilty to lying
about contacts with represen-
tatives of Russia.
The following day, New
York City suffered a deadly
terrorist attack committed by
an Uzbek immigrant who
pledged allegiance to ISIS. On
the legislative front, last-min-
ute wrangling forced House
Republicans to delay by a day
the long-awaited rollout of
their tax-reform proposal.
Through this hectic period,
Americans were subjected to a
steady stream of angry presi-
dential tweets and even an im-
promptu news conference that
contributed to their growing
weariness. Many Americans
desperately want less outrage
and more progress in their pol-
itics. But the constant tumult is
A ‘Teachable Moment’ on Free Speech
By Bradley A. Smith
P
resident Obama often
referred to “teachable
moments”—unplanned
opportunities to gain insight
on a problem. We had one
last month when President
Trump tweeted: “With all of
the Fake News coming out of
NBC and the Networks, at
what point is it appropriate
to challenge their License?
Bad for country!” A second
tweet declared: “Network
news has become so partisan,
distorted and fake that li-
censes must be challenged
and, if appropriate, revoked.
Not fair to public!”
The comments set off a
firestorm. Sen. Tom Udall (D.,
N.M.) tweeted back that “PO-
TUS is again openly suggesting
an abuse of power.” Yet Mr.
Udall has repeatedly spon-
sored a constitutional amend-
ment that would give Congress
the power to regulate political
speech. He reintroduced it this
year, making clear he wanted
hours of the Manafort indict-
ment, Tony Podesta, who is
former Hillary Clinton cam-
paign chairman John Podesta’s
brother, abruptly resigned
from the lobbying firm they
founded in 1988. Open-
Secrets.org annually lists the
Podesta Group as the third- or
fourth-highest-paid lobbying
firm in Washington.
The special counsel has not
named or charged Mr. Podesta
or his firm with any violation.
But Tony Podesta resigned so
that he could address his
firm’s involvement with Mr.
Manafort’s firm while lobbying
on behalf of then-Ukraine pres-
ident Viktor Yanukovych on,
for example, “the propriety of
imprisoning” his presidential
rival. Yanukovych lives in exile
in Russia now. Possibly addi-
tional cleansings will emerge
from Mr. Mueller’s shop.
While the children poke the
dirt over whether Mr. Muel-
ler’s Manafort indictment does
or doesn’t involve Trump “col-
lusion” with Russia, the rest of
us should see that Robert
Mueller is opening a drain on
the Swamp.
The Swamp has many
aliases—K Street, the Favor
Factory, the Beltway bandits.
And there is no fact in politics
more established than this:
The American people are dis-
gusted with Washington, and
have been for a long time.
The indictment of Paul
Manafort reads like a Google
Maps navigation through the
Swamp. That Tony Podesta
would jump off the Swamp lux-
ury liner called the Podesta
Group suggests the seriousness
Tweet Less, Smile More
obscuring the reality that, in
important areas, some prog-
ress is being made.
Last week, for example, the
House passed the Senate’s
budget resolution, different in
important ways from the ear-
lier-approved House version.
Rather than pinging versions
of the budget resolution back
and forth with the upper
chamber, GOP representatives
accepted the Senate version,
setting up the reconciliation
procedures the Senate needs
If President Trump
could control himself,
people might notice
his accomplishments.
to pass tax reform with 51
votes. Even most Freedom
Caucus members helped move
things along, apparently decid-
ing for once not to make the
perfect the enemy of the good.
Despite Wednesday’s delay of
the tax-reform rollout, Repub-
licans may be grasping that
maintaining control of Con-
gress requires actually accom-
plishing things.
Then there’s Friday’s an-
nouncement of the second con-
secutive quarter of 3% annual-
ized economic growth. After
seven years of anemic recov-
ery, the Trump administra-
tion’s decision to ease the na-
tion’s regulatory burden,
combined with new energy
policies and the promise of
lower corporate tax rates, has
to regulate speech by “Wall
Street” and “corporations.”
Responding to Mr. Trump,
the chairman of the Federal
Communications Commission,
Ajit Pai, said that “the FCC
does not have the authority to
revoke a license of a broadcast
station based on the content of
a particular newscast.”
What Democrats can
learn from Trump’s
empty FCC threat.
But that wasn’t enough for
Hawaii’s Sen. Brian Schatz,
the top Democrat on the Sen-
ate subcommittee overseeing
the FCC. He demanded that
Mr. Pai provide “a full-
throated defense of the inde-
pendence of the FCC against
political interference.”
As it happens, Mr. Schatz
has supported the constitu-
tional amendment Mr. Udall
introduced. In fact, Senate
OPINION
of the threat Mr. Mueller
could pose to the Washington
economy.
Any conceivable legal expo-
sure of Mr. Trump’s former na-
tional security adviser, Mike
Flynn, almost certainly is
about possible violations while
engaged in lobbying work,
rather than the standard collu-
sion narrative.
The Manafort charges
are an indictment
of a Washington that
disgusts Americans.
Some caveats here.
The Swamp disgusts me,
too, but the First Amendment’s
most overlooked phrase is the
right to “petition the govern-
ment for a redress of griev-
ances.”
As the U.S. regulatory state
rose, the American left believed
that the private sector should
simply let the regulators and
their rules roll over them—“in
the public interest.”
Over time, the government
fattened, and legitimate private
petitioning turned into rent-
seeking protection, a booming
economy for the locals and in-
evitably corruption.
Messrs. Manafort and Pode-
sta are founding fathers of the
Swamp. Now, even the holier-
than-thou creators of our new
economy—Google, Facebook,
Apple—pay the Swamp big
bucks for protection.
But, some scream, Mr.
Trump, who promised in every
increased confidence and con-
tributed to a 20% jump in the
Standard & Poor’s 500 since
Election Day.
Both the capture of the
Benghazi suspect and the
Tuesday attack showed the
president is right to say Amer-
ica is at war with radical Is-
lamic terrorism and to prose-
cute that war rather than pull
back from it. Mr. Trump has
unleashed the military against
ISIS and supports a continued
American presence in Iraq and
Afghanistan—though it would
be better if his tweeted re-
sponse to the terrorist mur-
ders in New York City did not
include an attack on Sen.
Chuck Schumer.
And for now, cooler heads
have prevailed in the Trump
team’s response to the Mueller
investigation. The White House
lawyer handling the Russian in-
vestigation was correct to say,
“Nothing about recent events
or any of these actions of the
special counsel has altered the
president’s determination to
support the special counsel”
because Mr. Trump “has no
concerns in terms of any im-
pact . . . on his campaign or on
the White House.”
Yet despite the improving
economy, the president’s job
approval rating in the Real
Clear Politics average of polls
is dismal: 39.3% favorable to
56.2% unfavorable, a net unfa-
vorable of 16.9 points. The con-
trast with the country’s actual
situation suggests disapproval
of Mr. Trump often stems
more from his personal style
than from objective economic
Democrats voted unanimously
in 2014 for it. Apparently the
idea of censorship only wor-
ries them when it’s coming
from Mr. Trump.
Mr. Udall would argue his
proposal would merely limit po-
litical spending. But the Su-
preme Court has correctly held
that to limit what someone can
spend to exercise a right—
whether to speak, worship or
obtain an abortion—is to limit
the right itself. It is easy to
structure campaign finance
laws so as to harm your ene-
mies and reward your friends.
With much of the news media
attacking the president 24/7, it’s
worth noting that Mr. Udall
proposes no restrictions on the
“press”—only other speakers.
So why not revoke the li-
censes of stations that are un-
fair or inaccurate in their cov-
erage? Many Trump critics are
demanding that Facebook and
Twitter act to eliminate “fake
news” online. Why then toler-
ate biased reporting from
broadcasters?
speech to “drain the swamp,”
hired Mr. Manafort to be his
campaign manager!!!
Yup, and here’s an educated
guess: When all this is over,
President Trump will be seen
as one of the greatest political
naïfs to come down the Belt-
way pike in a long time.
That doesn’t mean he can’t
do the Swamp drainage so
many voters expected of him.
Call it the Wollman Rink in re-
verse. The famous developer’s
job is to disassemble Washing-
ton, not make it bigger.
The largely unheralded
Trump effort to reduce regula-
tion—in energy, the environ-
ment, land use, education, fi-
nance, telecommunications—
won’t kill the Swamp but
should shrink it.
This week, though, the
Trump administration turned
on the sump pump. That would
be the tax reform act to be re-
leased Thursday in the House.
You will read endlessly how
every provision is a mistake or
can’t happen. Translation: This
is the first serious simplifica-
tion of the tax code since 1986,
and the Swamp is fighting
back.
In ’86, the Swamp was
called Gucci Gulch—the K
Street lawyers and accoun-
tants with little gold bars on
their shoes who gamed the tax
code for whoever could afford
it. They’re back to smother tax
reform in its crib.
Pick your obsession: collu-
sion or the Swamp. In the life
of the country, getting to the
bottom of the second matters
more.
Write henninger@wsj.com.
or foreign-policy conditions.
His tweets and verbal attacks
exhaust voters and demon-
strate a lack of focus on impor-
tant issues, diminishing his
support.
Yet here’s something inter-
esting: The Oct. 26 NBC News/
Wall Street Journal poll that
put Mr. Trump’s approval at
the lowest level of his presi-
dency also found Democrats
leading Republicans on the
2018 generic congressional
vote by only 7 points, 48% to
41%. That’s below the polling
margins Democrats enjoyed in
2006 and Republicans led by
in 2010, the last two elections
when the party out of power
retook the House. The discrep-
ancy between the president’s
17-point net unfavorable and
the GOP’s 7-point generic bal-
lot deficit suggests that not all
the president’s disfavor rubs
off on Republicans.
Fewer tweets and a more
presidential demeanor might
give Americans some much-
desired calm and allow the
Trump administration’s often
ignored accomplishments to
shine through. In the 10th
month of his presidency, it’s
fair to ask whether Mr. Trump
can exercise even minimal self-
control. If he can’t, there will
be a high price to pay—for
him, and ultimately for the
party he leads.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
The answer is that govern-
ment can’t be trusted to decide
which reporting counts as fake
news. After all, one man’s “dis-
tortion” is another’s “straight
talk.” While Mr. Udall thinks
corporations are too powerful,
others might say labor unions.
The temptation will be to si-
lence opponents. What the
government is most likely to
crack down on is news that’s
critical of the government.
That’s why we have a First
Amendment. Those who pine
for more regulation of cam-
paign speech should take this
“teachable moment” to ponder
two questions: Does free
speech apply to all Americans,
or only to the favored few call-
ing themselves “the press?”
And are political opponents
the only ones who cannot be
trusted with the power to cen-
sor critics?
Mr. Smith is chairman of
the Institute for Free Speech
and a former chairman of the
Federal Election Commission.
Thursday, November 2, 2017 | A17
BOOKSHELF | By John F. Duffy
The Justice
On His Soapbox
Scalia Speaks
Edited by Christopher J. Scalia and Edward Whelan
(Crown Forum, 420 pages, $30)
L
awyers, professors, law students and even nonlawyers
love to read the legal opinions of Supreme Court
Justice Antonin Scalia, not only for their clarity and
precision but also for their honesty, candor and, quite often,
entertaining wit. During his tenure from September 1986 to
his death in February 2016, Scalia was also the court’s
strongest advocate for textualism and originalism, legal
principles demanding that the text and its original meaning
control the interpretation of statutes and the Constitution.
That unflagging commitment to principle, even more than
his talent for finding the right words, made Scalia one of
the greatest and most influential justices of our era.
Scalia’s brilliant writing and commitment to principle
permeate “Scalia Speaks: Reflections on Law, Faith, and
Life Well Lived,” a collection of speeches co-edited by his
son Christopher and his former law clerk Edward Whelan.
The book supplies what Scalia’s judicial opinions could not:
insight into the more
fundamental set of
principles that guided
the man’s entire life. The
speeches are divided into
six sections, only one of
which is devoted to the
law. But it is the five
other sections that are the
most illuminating. Here we
learn Scalia’s outlook on,
among other things,
character, friendship,
education, sports, political
philosophy and faith.
Scalia had a deep apprecia-
tion of moral character, a central
subject in numerous speeches. It is the
reason he considered “morality” and “moral
formation” essential to civic and higher education. It is a
lesson he drew from the Holocaust (the topic of an entire
speech): that without a firm commitment to “uncompro-
misable standards of human conduct,” such as the funda-
mental Christian teaching that “it is wrong to hate any-
one,” even the “most educated, most progressive, most
cultured countries in the world” can commit unspeakable
horrors. And it is the reason why he chose George
Washington, a recurrent figure in the speeches, as his
favorite founder.
That choice may seem surprising for someone who him-
self prized intellect and good writing. Why not Thomas
Jefferson, the author of the Declaration of Independence
and founder of the University of Virginia, where Scalia
started his teaching career? Or James Madison, a co-
author of “The Federalist Papers” and an icon of the mod-
ern right, whose silhouette adorns the seal of the conser-
vative Federalist Society? Or Alexander Hamilton, another
“Federalist” co-author, who has always been a hero of
Scalia’s hometown of New York City? Yet “all those well-
published, intellectual geniuses looked up to, deferred to,
The late Antonin Scalia venerated George
Washington as his favorite founding father,
a man of ‘honor’ and ‘steady determination.’
stood in awe of, George Washington,” Scalia notes. Wash-
ington’s “honor,” “constancy” and “steady determination”
made him a “man who could be believed, trusted, counted
on.” He became the indispensable man because his very
“force of character” pulled together a bickering group of
intellectuals for a single great cause.
Underlying Scalia’s appreciation of moral character was
his faith in God. It formed an essential part of his views on
higher education and became a wellspring for his courage
to be “different” and “to go against the world.” It was even
why, in part, he liked turkey hunting, which afforded him
quiet time alone, out in the woods, where “you can pray to
the Creator.” “Scalia Speaks” may not convert many
nonbelievers, but it should at least force the worldly wise
to confront the truth that one of the great public thinkers
of our time was proud to have his “wisdom regarded as
stupidity” and to be a “fool for Christ’s sake.”
Scalia’s nonideological friendships, which some have
seen as puzzling, were another sign of his faithfulness to
greater values. His fast friendship with fellow Justice Ruth
Bader Ginsburg, despite their profound political differ-
ences, is well-known, and Justice Ginsburg provides a
heartfelt foreword to this volume of speeches. Another was
with Mary Lawton, a government lawyer virtually unknown
outside the Beltway but so personally inspiring that both
the Justice Department and the American Bar Association
now confer awards in her honor. When Scalia was
appointed to head the Office of Legal Counsel during the
Ford administration, he was warned that Lawton, then a
deputy in the office, might be “too ideological, and of the
wrong ideology.” Yet the two became friends because of
her “irrepressible” personality. She was “never a brooder,
never a mope.” Even her anger was such “an exuberant,
hearty, cheerful anger” that “it was more fun to be in the
company of an angry Mary than to be in the company of a
satisfied and contented someone else.” Those are the
words of someone who prized transcendent spirit far
above politics.
Witty writing runs throughout the book. What’s the dif-
ference between government and religion? Government’s
“responsibility is the here, not the hereafter.” What advice
did Scalia receive when he asked friends what to talk
about for his first commencement address? “They all said
to talk about . . . fifteen minutes.” And my own personal
favorite: What was the country’s favorite sport during his
youth? “Americans overwhelmingly preferred baseball, a
game in which a lot of players stand around while not
much happens, to soccer, a game in which people run back
and forth furiously while not much happens.”
This marvelous book surely will be required reading for
anyone seeking to understand the mind of this great jurist
and conservative thinker. But I would go further and say
that it should be required reading for anyone who wishes
to understand the mind of a great American, a figure so
important to our history that his passing influenced the
presidential election held months later. If “Scalia Speaks”
can be said to have one fundamental flaw—one shared
with the man’s life—it is that it ends too soon.
Mr. Duffy is a professor of law at the University of
Virginia. He once served as a law clerk to Justice Scalia.
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A18 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Trump’s Immigration Scapegoat Is Apple Pie About to Become Politicized, Too?

L
aw enforcement continues to investigate Gang of Eight bill that passed the Senate in 2013 James Taranto’s “The Weekend In- I wholeheartedly agree that we
Tuesday’s terror attack in which a 29- would have replaced the diversity lottery with terview with Erica Komisar: The Po- should be a more “child-centric so-
liticization of Motherhood” (Oct. 28) ciety,” and that it’s unfathomable
year-old from Uzbekistan used a truck to more employer-sponsored visas, but the bill
makes the valid point that children— why “we’re the only civilized coun-
murder eight pedestrians in stood no chance in the House. the future of the human world— try that doesn’t have a maternity-
lower Manhattan. So it’s unfor- The diversity visa Arkansas Senator Tom Cotton would be healthier if mothers could leave policy.” But women have al-
tunate and counterproductive program is far from the has proposed eliminating the choose how to raise them. High-qual- ways worked. Unless they were
that President Trump’s first in- lottery as part of a bill to shrink ity, affordable day-care arrangements wealthy, women have been em-
stinct has been to politicize the main terror threat. legal immigration by half. are hard to find, and many mothers ployed as cooks, cleaners and have
tragedy by blaming—what In any event, reducing im- must work. However, the article in- worked in fields for millennia. This
else?—immigration. migration or improving back- correctly implies that babies are in- notion that women who are em-
The President apparently got a scoop early ground checks wouldn’t have prevented the New evitably harmed by their mothers ployed are somehow ruining future
Wednesday that the alleged terrorist Sayfullo York attack or many of the other two dozen or working. generations hasn’t manifested itself
Saipov was admitted to the U.S. in 2010 under so Islamist-motivated attacks since 2001. Testi- Ms. Komisar’s “research” methods throughout time.
are flawed. She thought she saw a Even if I’m not with my child
the State Department’s diversity visa lottery. He mony from Mr. Saipov’s former acquaintances
pattern in her practice whereby chil- 24/7, I can assure you that I, and
then shot off a barrage of tweets blasting the suggested that he didn’t come to the U.S. radical- dren who were doing less well had every working mother I have ever
lottery, which he called a “Chuck Schumer ized and that he became emotionally disturbed mothers who worked, and then she met, begins her second shift with
beauty,” singling out the Senate Democratic over time. noticed the pattern more. Nobel Lau- the child’s health and welfare as a
leader. “We are fighting hard for Merit Based The Tsarnaev brothers who bombed the Bos- reate Daniel Kahneman and Amos top priority. It’s unrealistic and rep-
immigration, no more Democrat Lottery Sys- ton marathon immigrated as kids from Kyrgyz- Tversky called this the “confirmation rehensible to presume because the
tems. We must get MUCH tougher (and stan after their parents received political asy- bias.” Fathers produce oxytocin at mom isn’t home with her child ev-
smarter),” Mr. Trump tweeted. lum. The security guard Omar Mateen who shot the same levels as mothers, and oxy- ery second of every day that some-
Later in the day he again attacked the visa up a night club in Orlando was American-born. tocin increases how the baby
program, and in an aside lashed chained migra- So was San Bernardino shooter Syed Rizwan Fa- bonding be- is missing out
tion that benefits relatives of U.S. citizens and rook, though his wife and collaborator was a le- haviors in fa- on becoming a
thers too, as self-sufficient
green card holders. While we’re all for better gal immigrant. shown by Ruth little person.
vetting of immigrants, and monitoring of terror Police have found evidence that Mr. Saipov Feldman and Women who
risks, the sad reality is that a radicalized U.S. cit- had some allegiance to Islamic State, and his others. carry the bur-
izen could also have committed the attack. truck rampage followed the ISIS playbook. Yet The Na- den of sup-
Congress established the diversity lottery as John Miller, the New York Police Department’s tional Insti- porting and
part of the Immigration Act of 1990—which Mr. counterrorism chief, says Mr. Saipov hadn’t been tute of Child caring for their
Schumer co-sponsored along with several Re- investigated by his department or the FBI. Mr. Health and family deserve
publicans—to diversify the pool of immigrants. Miller has often told us that his nightmare cases Human Devel- our support
Chained family migration favors countries in are self-radicalized individuals who only appear opment study and resources,
Latin America while a disproportionate number as a threat when they attack. of early child not our sham-
care, which ing and judg-
of Chinese and Indians have immigrated on em- More than an immigration crackdown, the
GETTY IMAGES

followed a
ployer-sponsored visas. Saipov case might call for better monitoring of very large na-
Each year, 50,000 visas are awarded at ran- terror websites and groups that are more likely tional sample
dom to immigrants from countries whose admis- to be radicalized. We’re also with Mr. Trump— of children
sions totalled fewer than 50,000 over the pre- and Senator John McCain—in suggesting that from before
ceding five years. Lottery winners make up less Mr. Saipov should have been interrogated at birth through ninth grade, laid to
than 5% of the total legal immigrants. Applicants length before he was read his Miranda rights. rest the idea that day care is univer-
must have graduated from high school or have The first priority is preventing future attacks sally harmful to developing children.
at least two years of formal training in an occu- and breaking any terror networks. Quality of care is what matters, and
pation. Initially, most visas went to European Perhaps we will learn that Uzbekistan is a ter- family features are the strongest
countries, but Africa has lately been soaking up ror breeding ground from which immigrants predictors of child outcomes. In the
rare cases where negative outcomes
the most. need special vetting. But the Commander in
of day care were observed, they
While it would make sense to substitute the Chief in particular should wait for answers be- were particular to subgroups of chil-
diversity lottery for more guest-worker visas, re- fore jumping to policy conclusions or exploiting dren and could have been caused by
strictionists aren’t interested in this trade. The immigration fears. other features. But as long as babies
can develop sensitively responsive
relationships—which they can do
High on Incentives with fathers, grandparents and even
unrelated day-care providers—very
ment.
PEGGY EVERTS
Oxford, Miss.
How telling
that the loudest voices from the left
are so outraged by the “science de-
niers” who dare to question their po-
sition on climate change, yet they
are more appalled by the “inconve-
nient science” that sheds new light
on the wonderful years of mother-
child bonding.
EM. PROF. BARBARA DAUTRICH
American International College
Springfield, Mass.
Motherhood was never some-
thing that could be done alone, and
we need to connect parents for mu-

W
hatever its enjoyments, marijuana is
not typically associated with
sharper thinking. But in California,
where recreational pot was legalized last year,
citizens now have a much clearer view of the
unintended consequences that come from high
tax rates.
A new report from the global credit-rating
firm Fitch Ratings highlights the effect of Cali-
fornia’s high taxes on the marijuana market.
The combined local and state rate on non-medi-
cal cannabis may be as high as 45% in some
places, and Fitch says this acts as an incentive
for Californians to shun legal pot dealers who
pay the tax in favor of black-market sellers who
don’t and can charge lower prices. As America’s
Keeping Scott Pruitt Safe
largest producer of marijuana, California also
risks driving business outside its own borders
to lower-taxed states.
The irony is that one argument for legalizing
pot has been to reduce illegal trafficking. But
by imposing taxes that are too high on legal
weed, politicians give pot heads an incentive to
go back on the illegal market. This will come as
no surprise to anyone who has followed the
boon to illegal smokes from high cigarette taxes
in places like New York City.
But old arguments always bear relearning,
especially in precincts where understanding
about market incentives is, well, not high. Hats
off to Fitch Ratings for making the argument
in terms even Marin County can understand.
solid research has shown that moth-
ers can go to work without guilt.
Again, generous maternity- and
paternity-leave policies are in the in-
terest of the next generation. But
mothers who work should not be
afraid that they are harming their
babies by doing so.
ANGELINE S. LILLARD
Charlottesville, Va.
Risk, Reward and the Pricing of New Drugs
Regarding Tunku Varadarajan’s
“The Weekend Interview with John C.
Martin: The Business of Saving Lives”
(Oct. 21): Mr. Varadarajan indicates
that pharmaceutical company Gilead
Sciences made scientific contribu-
tual support. We also need to pro-
vide a consistent message across
our country that shaping children
is one of the most valuable callings
a person can have—a message that
will empower not just mothers, but
teachers and child-care providers
as well.
MEGAN DAVIDSON
Sterling, Va.
transfusion and reduced the spread of
the disease.
Within a few years, startup phar-
maceutical company Pharmasset Inc.
developed the first drug for hepatitis
C, Sofosbuvir, that was approved by

R
eform in Washington is always difficult,
but at the Environmental Protection
Agency it’s also dangerous. Since the
Trump Administration took office, the agency
has investigated more than 70 credible threats
against EPA staffers, with a disproportionate
number menacing Administrator Scott Pruitt
and his family. The EPA responded by beefing
up his security detail, but Mr. Pruitt’s political
opponents are now trying to hold these war-
ranted precautions against him.
Mr. Pruitt has received more than five times
as many threats as his predecessor, Gina McCar-
thy. These include explicit death threats. Some
have referenced Mr. Pruitt’s home address. Fed-
eral law enforcement has determined that some
of those threatening Mr. Pruitt are likely capable
of carrying out acts of violence. EPA security has
already caught suspects prowling around the ad-
ministrator’s neighborhood.
Mr. Pruitt would doubtless prefer the ab-
sence of threats to the presence of security. But
his critics have suggested he’s part of the prob-
lem. Mr. Pruitt is a “pallid, oily anti-environ-
ment corporate shill,” SFGate columnist Mark
Morford wrote last week, and “when you send
death threats to the world and all who live on
her, the world will, quite naturally, send them
right back.”
Reps. Peter DeFazio (Ore.) and Grace Napoli-
tano (Calif.) have called for the inspector gen-
eral to launch an investigation into Mr. Pruitt’s
security measures. The expenditures “consti-
tute potential waste or abuse of taxpayer dol-
lars,” they wrote in an Oct. 4 letter. The duo also
claimed that “there is no apparent security
threat against the Administrator to justify such
a security detail or expenditures.”
But the EPA inspector general’s office—in
addition to the agency’s criminal enforcement
division and protective service—recommended
24/7 security for Mr. Pruitt based on the un-
precedented threats. A lean team of agents
share the responsibility for safeguarding Mr.
Pruitt, and their salaries will cost taxpayers
roughly $2 million a year. The EPA’s other
safety precautions include a $15,780 upgrade
of the card-access system in EPA offices.
Mr. Pruitt didn’t invent these threats, and
Cabinet members shouldn’t have to fear vio-
lence as a price of public service. When the fed-
eral government protects Cabinet members
from those who would harm them for doing
their jobs, it is protecting American democracy.
tions toward the discovery of the
present curative treatment for hepati-
tis C. Credit really belongs to Michael
Houghton, Qui-Lim Choo, George Kuo
and Daniel Bradley who, in 1989, iden-
tified the virus and developed a diag-
nostic antibody test for it which
helped the screening of blood for
If 401(k)s Go, Let’s Also Get
Rid of Government Pensions
Apparently House Ways and Means
Committee Chairman Kevin Brady
and others believe the deficit is too
high because American workers are
saving too much for retirement
(“Trump, GOP Spar Over Tax Details,”
page one, Oct. 26). Who knew ensur-
ing the country’s and citizens’ fiscal
health would be so simple to accom-
plish? Just discourage retirement
saving.
THOMAS G. MALKOCH
Conshohocken, Pa.
For most employees, contributing
the maximum allowed to their 401(k)
plans has been the road to secure re-
tirements as traditional pensions
were eliminated. Thus, one has to
the FDA in 2013 and sold under the
brand name Sovaldi. Gilead bought
the small company in 2011 for about
$11 billion dollars and set the price of
the required 12-week treatment at
$80,000. The price was later lowered
to some extent because of the public
outcry. The real credit for finding the
cure for this menacing disease be-
longs to the talent and hard work of
the physicians and scientists working
at laboratories funded by governmen-
tal agencies like the NIH.
PROF. MOHAMMAD G. SAKLAYEN, M.D.
Wright State University
Dayton, Ohio
Unfortunately Mr. Martin perpetu-
ates the myth that R&D budgets jus-
tify the cost of prescription drugs. No
other industry can use this logic.
Does Boeing tell airlines that it cost a
lot to develop a new airplane so it is
increasing the price by 1,000%? Per-
haps it is time to uncouple pharma-
ceutical R&D from marketing and dis-
tribution. This would allow investors
to underwrite drug development and
let distributors bid for drugs that
they think can achieve a reasonable
rate of return.
JASON ACEVEDO, M.D.

An India Reform Milestone wonder why members of Congress,

themselves secure in generous pen-
Abilene, Texas

I
ndia has moved up a remarkable 30 spots
to 100th place in the World Bank’s annual
report on the regulatory burden faced by
small companies. The country improved in six
sions, would consider taking this tool
Now the gathering pace of change sends a posi- away from middle-class Americans in Pepper ...
tive message to potential investors. The central order to reduce taxes on the wealthi-
government is also pushing bureaucrats and lo- est among us.
And Salt
cal governments to streamline procedures for HANNA HILL THE WALL STREET JOURNAL

of 10 measures in the Doing Business report, business. Minneapolis

making it one of the top five reformers this year.
Credit is due to Narendra Modi, who set the goal
of moving into the survey’s top 50 when he be-
came Prime Minister in 2014.
A new bankruptcy law is partly responsible
for India’s higher marks, since it improves access
to credit and creates clearer rights and responsi-
bilities. An online system for approving con-
struction projects makes it somewhat easier to
obtain permits, although India still ranks 181st
out of 190 countries in this area. The nationwide
goods and service tax (GST) rolled out in July
isn’t reflected in this year’s score but should
boost future rankings.
India’s Doing Business score had barely im-
proved in the previous two years, reflecting that
Mr. Modi’s war on red tape got off to a slow start.
Oddly, the higher ranking comes as the Indian
economy is struggling. That’s due in part to last
year’s removal of 86% of the cash in circulation,
as well as poor implementation of the GST.
Growth fell to 5.7% in the second quarter, and 1.5
million jobs were lost in the first four months of
the year according to one think tank.
The slowdown is a reminder that deregula-
tion, especially the repeal of labor laws that
make it difficult to fire workers, is also critical
to growth. Enabling entrepreneurs to start small
firms will make the Indian economic more dy-
namic. But Mr. Modi’s “Make in India” program
depends on manufacturers building large facto-
ries to employ the millions of young Indians
looking for jobs. Labor reform deserves the same
priority as the Doing Business ranking.
Instead of reducing the amounts
that taxpayers can contribute tax-free
to their 401(k) plans, how about cut-
ting all government (federal, state
and local) pensions and making gov-
ernment workers save for retirement
through 401(k)s like the rest of us?
ANTHONY BROOKS
Leesburg, Ga.
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.
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THE WALL STREET JOURNAL. Thursday, November 2, 2017 | A19

OPINION

When Britain Renewed the Promise to the Jews

By Ruth R. Wisse it represented a diplomatic high that its repudiation was a confes-

I
n the living room of our
daughter’s home hangs a 4-
by-6-foot Jewish flag de-
signed by her paternal
great-grandfather, hastily
sewn from blue and white material
in his Montreal dry-goods store. In
November 1917, on receiving news
that the British government had
just given its support for the es-
tablishment of a national home for
the Jewish people in Palestine,
Nathan Black strung the flag
across his storefront and closed
for the day. “Haynt iz a yontev,”
point in the history of the Zionist sion of British weakness.
movement founded by Theodor The Jews would have returned
Herzl in 1897. Herzl realized that to Zion with or without the consent
Zionism would have trouble achiev- of Europe. This is the people that,
ing its political objective of estab- despite the murder of millions of
lishing “a home for the Jewish peo- potential Jewish citizens, and
ple in Palestine secured under within Herzl’s predicted timeline of
public law” without support from 50 years, recovered and defended
one or more of the empires laying its national sovereignty in the Land
claim to the Jewish homeland. His of Israel that had been under for-
attempt to win that support, cut eign domination for almost two
short by his death in 1904, was millennia. But most of the Arab
taken over by others, such as world rejected the very principle of
Chaim Weizmann and Nahum coexistence and consequently spi-
Sokolow. The latter’s role in secur- raled into ever-escalating intramu-
ing the Balfour Declaration was re- ral conflicts. For Arab nations, too,

ANN RONAN PICTURES/PRINT COLLECTOR/GETTY IMAGES

he told his workers: “Today is a
holiday.”
‘His Majesty’s government
view with favour the
establishment in Palestine
of a national home.’
One hundred years ago on
Nov. 2, Arthur Balfour, the British
foreign secretary, sent a letter to
Lord Walter Rothschild: “His Maj-
esty’s government view with favour
the establishment in Palestine of a
national home for the Jewish peo-
ple, and will use their best endeav-
ours to facilitate the achievement
of this object, it being clearly un-
derstood that nothing shall be
done which may prejudice the civil
and religious rights of existing
non-Jewish communities in Pales-
tine, or the rights and political sta-
tus enjoyed by Jews in any other
country.”
Known as the Balfour Declaration,
cently brought to light by historian
Martin Kramer. Other countries, in-
cluding France and the U.S., were
involved in the discussions over the
disposition of Palestine, but the
credit for this document was Brit-
ain’s. At least on that score credit
is deserved.
The Balfour Declaration was a
landmark in the political life of
Britain no less than in the self-de-
termination of the Jews. Brutally
expelled from England in 1290 and
formally readmitted in 1656, Jews
remained the barometer of tolera-
tion in the country’s political and
private life.
English literature served up sin-
ister characters like Shylock and
Fagin that testify to powerful
anti-Jewish prejudice. Then, in
1876, the British novelist George
Eliot created the title character
Daniel Deronda, an Englishman
and Jew who determines to make
the Jews a landed nation again,
“giving them a national center,
such as the English have, though
they too are scattered over the
face of the globe.” The threat to
Arthur James Balfour (1848-1930).
the Jews in Eliot’s novel comes
not from violent aggressors but
from Englishmen who cannot un-
derstand why Jews should remain
a nation. Anticipating Zionism and
the Balfour Declaration, Eliot in-
terprets the ability of the English
to accept Jewish national rights as
the touchstone of their political
maturity.
Yet Britain went back on its
word. Attempting to appease Arab
rulers, it rewarded Arab violence in
Palestine in the 1930s by preventing
acceptance of an autonomous Jew-
ish presence, if and when it occurs,
will be the gauge of their political
maturity.
Meantime, in Britain’s Daily
Mail, a “proud Jewish woman and
patriotic Briton” wrote last month
that “many of this country’s
270,000-strong Jewish community
no longer feel we have a home
here.” The immediate cause of her
anguish is the emboldened anti-
Semitism of the Labour Party,
which traditionally included many
Jews. This coalition of grievance
endangers the democratic future of
Jews from entering land promised the country.
to them by the Bible and the Brit- Our family’s flag celebrated a
ish. While the British betrayal did landmark in the restoration of Zion
not directly abet Hitler’s war but also another great nation’s
against the Jews of Europe, it sig- readiness to coexist with the Jews
naled a readiness to abandon the on an equal footing. That in itself
Jews to their fate. It certainly will not bring peace to the world—
spurred the Arab war against Israel, but world peace cannot come with-
which began where Germany’s war out it.
against the Jews left off. Churchill
reminded Parliament in 1939 that Ms. Wisse, a former professor of
the pledge of a Jewish homeland in Yiddish and comparative literature
Palestine had been made not only at Harvard, is the author of “Jews
to the Jews but to the world and and Power” (Schocken, 2007).

As Terror Strikes Again, New Yorkers No Longer Wonder Why

By Matthew Hennessey The flight and the acting gig Main Concourse at Grand Central post-9/11 days when you’d see sol- They know exactly what they are
were both canceled. The engage- Terminal. Halloween revelers were diers with large rifles patrolling doing and exactly what they want:

M
New York
y city got hit again Tuesday,
and nearly in the same spot
as the hit it took on a Tues-
day long ago.
Eight people died when a reli-
gious fanatic from Uzbekistan alleg-
edly turned a rented pickup truck
into a murder weapon on the Hud-
son River bike path, not far from
the World Trade Center complex in
lower Manhattan. The attack re-
minded all New Yorkers of a fear we
try hard to suppress: We are always
vulnerable. Every time we cross the
street, we are targets. We must al-
ways be on guard.
The attackers want me,
and everyone like me,
to walk around terrified.
Well, they can go to hell.
I was 19 in 1993, when a terrorist
cell under the direction of Omar Ab-
del Rahman, the so-called blind
sheikh, killed six people with a truck
bomb in the trade center’s parking
garage. At the time I was in acting
school miles away on East 54th
Street. As my friends and I watched
smoke-smeared people being evacu-
ated on a television in the student
lounge, I thought to myself, “Who
would do such a thing?”
On 9/11 I was 27 and living in a
basement apartment in Queens. Like
most New Yorkers, I’d pretty much
forgotten about the 1993 attack.
Like most Americans, I was ignorant
about what we now call radical Is-
lam. A few days earlier I’d read a
news story about the assassination
of Northern Alliance leader Ahmad
Shah Massoud in Afghanistan and
thought: I wonder what that’s
about?
That clear blue Tuesday I was
booked to fly to London for an act-
ing gig. Along with my girlfriend, I
watched the towers fall from the de-
parture lounge in John F. Kennedy
International Airport. As I did I said
out loud: “What is the purpose of
this?”
ment wasn’t: The girlfriend is now assembling. Some were headed to subway platforms, a sight both com- They want me, and everyone like
my wife. Sixteen years later, I still watch the Rangers play at Madison forting and disturbing. me, to walk around terrified that in-
haven’t been to London. Square Garden. Evening commuters I no longer wonder who would do stant death is always a moment
In 2001 I was about to embark on often enjoy a drink or two on the such things or what they’re all away. And they think it’s all for the
a life that would lead to more family way home. More than usual seemed about. I know what’s going on. glory of God.
happiness and career success than I to be drowning their sorrow that Those who plow trucks into crowds Well, they can go to hell.
dreamed possible. Never far from night. and slaughter innocent people are
my mind, however, are those who The NYPD, National Guard and enemies of freedom. They have no Mr. Hennessey is an associate
died that horrible Tuesday. My story New York state troopers were out in respect for human life. They aren’t editorial features editor at the
goes on. Their stories were unfairly force. It put me in mind of those sick. They aren’t confused. Journal.
cut short.
In the skies, in the Twin Towers,
at the Pentagon and in a quiet Penn-
sylvania field, nearly 3,000 lives
were mercilessly snuffed out that
morning. In the years since, hun-
dreds more cops, firefighters and
other first responders have suc-
cumbed to illnesses related to the
attacks. Every September that goes
by, I do my best to remember their
sacrifice.
Eight people in New York went
out this Tuesday, never to return to
their homes or their loved ones. On
my way home to my loved ones that
night I was more alert than usual. I
noticed a few things.
“Damn, eight dead?” I overheard
a middle-aged African-American
man say into his phone as we
passed each other on a midtown
street. It reminded me of riding the
elevated subway out of Queensboro
Plaza the afternoon of 9/11, when I
heard a businessman answer his
phone by saying: “What am I doing?
I’m thinking of all my dead friends
down at Two World Trade.”
I heard some people speaking
French on Madison Avenue. “You are
visiting a city that just got attacked
by a terrorist,” I thought to myself.
They appeared unaffected. They
were on vacation, probably in deep
for a few thousand dollars (or eu-
ros). It turned out six of those killed
in the attack were tourists, five of
them Argentines in New York for a
high-school reunion.
Considerably affected myself, I
popped into a liquor store for a bot-
tle of Irish whiskey. A wine tasting
was under way. Nobody seemed to
care that a jihadist had killed eight
people a few miles downtown. I won-
dered: What’s happening to us?
Minutes later I stood beneath
the big American flag above the

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TECHNOLOGY: QUALCOMM FEELS STING OF FINE AND WAR WITH APPLE B4

BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Thursday, November 2, 2017 | B1

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Russia Ads Targeted Precise Groups Tesla Rolls

Back Goal
Sophisticated effort
on Facebook sought
to amplify simmering
On Sedan
tensions within the U.S. Amid Loss
BY GEORGIA WELLS BY TIM HIGGINS
AND DEEPA SEETHARAMAN
Elon Musk’s usual bravado
Russian operatives targeted as the billionaire leader of
users on Facebook Inc. by race, Tesla Inc. seemed to waver
religion and interests such as on Wednesday as he warned
gun ownership, the Confederate of monthslong delays in the
flag and Ivanka Trump’s jew- production of the Model 3
elry line, according to advertis- sedan and raised the possi-
ing data released by lawmakers bility the electric-car com-
Wednesday as part of congres- pany could pump the brakes
sional investigations into Rus- on planned growth.
sian manipulation on social me- The Silicon Valley auto
dia around the U.S. election. maker had aimed to make
ANDREW HARRER/BLOOMBERG NEWS

The ads targeted groups on 5,000 Model 3 sedans a week

opposite sides of an issue, a by the end of this year but
move that lawmakers said was said it won’t reach the mile-
designed to amplify social divi- stone until late in the first
sions. One of the Russia-backed quarter of next year.
pages, “Back the Badge,” for ex- Tesla also reported its
ample, ran an ad in October worst financial quarter ever,
2016 meant to reach the wives posting a loss of $619 million
of police officers, sheriffs and attributed to common share-
pages memorializing killed offi- A selection of the ads, which touched on issues such as race, political preference, religion, gun ownership and the Confederate flag. holders in the three months
cers that was seen more than that ended on Sept. 30, com-
1.3 million times. “Woke people to amplify specific, sim- pared with a rare profit of
Blacks,” on the other hand, pro- Pages Attracting mering tensions within the U.S. $22 million a year ago. On an
moted its page among people Facebook, Twitter and Google adjusted basis, the com-
who are interested in “African- Facebook Viewers have said in congressional hear- pany’s per-share loss of
American culture” and the civil- ings this week that the ads and $2.92 was wider than the
rights movement. That ad was other content by Russian-linked $2.28 consensus estimate of
seen more than 750,000 times. u Back the Badge: Tags in- accounts made up just a sliver analysts surveyed by Thom-
Both pages were created by cluded state police, law enforce- of election-related information son Reuters.
Russians tied to the Kremlin- ment. 1.3 million ad impressions on their sites. But the ads dem- The company attributed
linked Internet Research onstrate how the Russian effort the primary delay of ramping
Agency, which paid for the ads u Being Patriotic: Tags in- spread far beyond political up the Model 3, which began
in rubles. cluded independence, patrio- campaigns and across issues as production in July, to bat-
Lawmakers also released the tism. 529,205 ad impressions. wide-ranging as immigration, tery-pack assembly at its fac-
Twitter Inc. account names for police brutality and religion, tory near Reno, Nev.
2,752 accounts linked to the In- u Blacktivist: Tags included hu- and served to recruit new fol- “The combined complexity
ternet Research Agency. Many man rights, African-American cul- lowers to their pages and en- of module design and its au-
of the handles appeared to im- ture. 530,762 ad impressions. courage them to attend events. tomated manufacturing pro-
personate famous politicians, Lawmakers expressed frus- cess has taken this line lon-
political parties and news agen- tration with the tech companies ger to ramp than expected,”
cies, in an apparent attempt to analyzed by The Wall Street Sen. Mark Warner (D., Va.) said tem you have created.” during the hearings. Sen. Di- Mr. Musk said in a share-
seem credible, such as Journal. Some accounts with during a Senate Intelligence Russia has denied any inter- anne Feinstein (D., Calif.) criti- holder letter detailing the
@_GeorgeSchultz_, @tpar- more than 10,000 followers Committee hearing on Wednes- ference in the U.S. election. cized the companies for not company’s third quarter.
tynews, @NewYorkDem and were created in late 2015 as the day attended by executives The new data, released by having a handle on the misuse Mr. Musk, who on a con-
@TheTimesOfLondn. At least presidential primaries were in from Facebook, Twitter and Al- members of the House Intelli- of their platforms, while Sen. ference call with analysts
one of the accounts was created full swing. phabet Inc.’s Google to probe gence Committee during an af- Please see ADS page B2 said he was struggling with a
as early as 2009 and another Social media “in many ways Russian manipulation. “Russian ternoon hearing, show the so- cold, seemed at a loss of
was tweeting as recently as seem purpose-built for Russian actions are further exposing the phistication of the Russian  Facebook vows to sacrifice words when asked about
mid-October, according to data disinformation techniques,” dark underbelly of the ecosys- effort to hit precise groups of growth for security................ B3 when Tesla might reach the
rate of building 10,000 Model
3s a week. After a 12-second

Kalanick Feud Threatens Uber-SoftBank Deal

BY GREG BENSINGER and other aspects of its corpo-
rate governance and bring on a
Uber Technologies Inc.’s powerful partner in SoftBank
effort to close a multibillion- Chief Executive Masayoshi
dollar investment by SoftBank Son, the people said. The deal
Group Corp. is in danger of could be valued around $10
derailing as co-founder Travis billion.
Kalanick tussles with fellow But Mr. Kalanick alerted fel-
board members, including low board members Tuesday
Benchmark Capital, over the he wants removed from the
limits of his power at the ride- deal a provision that would re-
hailing giant, people familiar quire a majority vote on any
with the matter said. directors he appoints in the fu-
Uber in recent days had ture, the people said. He is
reached an agreement in prin- also seeking a temporary stay
ciple on a deal with a group of on a lawsuit filed by Bench-
investors led by SoftBank that mark, one of Uber’s biggest in-
would reshape Uber’s board vestors, over his control of two
board seats or a formal guar-
antee the suit will be dropped
after SoftBank completes the
investment, the people said.
While Mr. Kalanick doesn’t
have majority voting power,
other investors view his ap-
proval of any final deal with
SoftBank as essential in part
because some of the corpo-
rate-governance changes affect
him personally, the people
said.
The sides could still work
out an agreement. Mr. Kalanick
still supports the SoftBank
deal and would let stand the
majority-board-vote provision
if Benchmark formalizes its
commitment to drop its law-
suit once the deal is con-
cluded, according to two of the
people. Benchmark had told
board members in October it
would drop the suit after the
SoftBank deal is consummated,
triggering the corporate-gov-
ernance reforms, those people
said.
But the fresh infighting
shows how Mr. Kalanick’s in-
volvement continues to loom
over Uber four months after
Benchmark and other share-
holders ousted him as CEO.
The dispute threatens to dis-
rupt a tentative stability
brought by his replacement,
Dara Khosrowshahi, after
nearly a year of turmoil.
The current dispute centers
on Mr. Kalanick’s control of
two board seats, in addition to
his own, that was granted him
in June 2016. Benchmark,
which holds a director’s seat,
in August sued to compel Mr.
Kalanick to relinquish the
seats to the board. In a sur-
prise move the following
month, Mr. Kalanick installed
former Xerox Corp. CEO Ursula
Burns and ex-CIT Group Inc.
Please see UBER page B2
delay, he suggested it was
too early to say because
Tesla is still learning to build
the Model 3 and later added
the company faces a strate-
gic choice between growth
and capital spending.
“We want to make sure we
know what to scale before
we spend money on it,” Mr.
Musk said.
His comments surprised
some analysts. “Quite
frankly, I think it’s really the
first time that I’ve heard you
talk about that potential
trade-off,” Toni Sacconaghi,
an analyst for Bernstein Re-
search, told Mr. Musk.
 Heard on the Street: Tesla
drives further off track .... B14

Gold Rally Leaves Out INSIDE HEARD ON THE STREET | By Alex Frangos

Retail Metal Dealers Fortunate Son’s Bitcoin Jackpot

BY STEPHANIE YANG Precious Metals, a Chicago pre-
cious-metals dealer. “A lot of
Gold prices are rallying, but guys have been really hurting.”
retail gold dealers and shops One reason for the declining
are struggling to survive. business is that a number of
Businesses that sell gold retail buyers are turning to
coins and other products made cryptocurrencies like bitcoin to
from the precious metal usu- store money during periods of
ally thrive during years like stress, some analysts say.
2017. Gold futures have gained
more than 10%, boosted by a
Bitcoin has “taken some of
the dedicated interest in gold
SONY BRINGS
weaker dollar and by big in- away from gold,” said Mo-
vestors looking for a haven
during recent geopolitical ten-
hamed El-Erian, chief eco-
nomic adviser at Allianz SE
TO MARKET
sions surrounding North Korea who warned at a CME Group
and Iran. event in September that cryp-
Yet sales this year of Ameri- tocurrencies could pose a long-
can Eagles, a popular gold coin term threat to gold.
and a proxy for retail sales of CME Group Inc., the Chi-
physical gold, have fallen to cago-based exchange operator,
their lowest levels since 2007, said this week that it is aiming
according to the U.S. Mint. to launch a futures contract
The weak demand is taking based on bitcoin by year-end,
a toll on gold dealers, some of which could make it as easy to
whose sales have dropped as buy bitcoin futures as it is to
much as 70% compared with buy gold or oil futures.
last year, according to Jeffrey That is raising questions
Christian, managing partner at about whether this downturn in
market-research firm CPM the gold retail business could
Group. That is creating a diffi-
cult environment for busi-
be more serious and last longer
than previous downturns.
FIVE REASONS
nesses that make money sell- Philip Lally, a manufactur-
ing precious metals.
“It’s been absolutely dismal,”
ing engineer, is one of the in-
vestors embracing cryptocur-
A ROTH 401(K)
said Peter Thomas, senior vice rencies this year, helping
president of metals at Zaner Please see GOLD page B2
Say you’ve
discovered a
wad of cash in
a secondhand
coat or, more
appropriately,
a wad of virtual bitcoin on
the hard drive of a used
computer. With the virtual
currency up nearly sevenfold
against the dollar this year,
ITS DOG do you sell or hold?
That is essentially the sit-
uation facing Japanese ev-
erywhere-and-everything
ROBOTICS, B4 conglomerate SoftBank
Group. Led by singularity-ob-
sessed founder Masayoshi
Son, SoftBank struck a deal
in February to snap up asset
manager Fortress Invest-
ment Group for $3.3 billion.
Buried in the company’s as-
sets is at least $5.9 million
of bitcoin. Mr. Son has a rep-
utation for investing in
things that go up rapidly in
value—Chinese e-commerce
giant Alibaba Group Hold-
ing prime among them.
Being a cryptocurrency
TO FAVOR with no official backing,
SoftBank valued the bitcoin
at zero when it ran numbers
on the deal, according to a
INVESTING, B12 person familiar with the
Coin of the Realm
Return on $100 invested at start
of year, including dividends
$600 Bitcoin
500 Feb. 14
SoftBank
400 announces deal
300 to buy Fortress
200
100
0 S&P 500
2017
Sources: Coindesk (bitcoin); FactSet (index)
THE WALL STREET JOURNAL.
deal. But actually, that $5.9
million was just the value
Fortress carried on its books,
having written down its ini-
tial investment in the digital
currency following bitcoin
crashes in 2014 and 2015. As
of February, when SoftBank
agreed to buy Fortress, the
company’s bitcoin was actu-
ally valued at about $22 mil-
lion, based on bitcoin’s mar-
ket price and Fortress
financial filings. Softbank’s
discovery should not be sur-
prising. Fortress co-Chair-
man Peter Briger is a well-
known bitcoin enthusiast, as
is former Fortress macro
fund manager Michael No-
vogratz.
Since announcing the
deal, bitcoin has risen 551%,
to nearly $6,600 per bitcoin,
making Fortress’s stake val-
ued at about $142 million.
Add in the value of “bitcoin
cash,” a forked offshoot that
was distributed to bitcoin
holders in August, and the
value goes above $150 mil-
lion. SoftBank’s Fortress deal
should close by the first
week in December, according
to the person familiar with
the matter, which means
SoftBank will soon have to
decide what to do with the
free money.
It won’t necessarily un-
load the sum immediately.
News that CME Group is
launching a tradable bitcoin
contract could drive the
price higher, especially if ex-
change-traded funds based
on the contract develop and
a new herd of crypto mani-
acs step in. Of course, with a
CME-traded contract, bitcoin
will be more easily shorted,
too. Maybe it is better for
SoftBank to take at least
some of its found bitcoin off
the table.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Thursday, November 2, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Alibaba Group Holding
.....................................B1
Allergan.....................B14
Allstate ....................... B7
Alphabet.........B1,B3,B14
A-Mark Precious Metals
.....................................B2
Amazon.com ............... B3
Anheuser-Busch InBev
.....................................B7
Apollo Global
Management...........B12
Apple .............. A9,B4,B14
Atlas Mara................B12
Atlas Merchant Capital
...................................B12
AveXis.........................A3
B Sony.............................B4
Barclays.....................B12
Bayerische Motoren
Werke........................B2
Benchmark Capital ..... B1
Biogen.........................A3
Blackstone Group A9,B12
Brighthouse Financial B7
C L
Canopy Growth...........B7
Carlyle Group............B12
CME Group..................B1
D-E
Dell Technologies........B6
Devon Energy............B13
Dragoneer Investment
Group.........................B2
Estée Lauder.............B13
INDEX TO PEOPLE
B K
Briger, Peter................B1
Burns, Ursula..............B1
C David.......................B13
Cameron, Brian...........B8
Christian, Jeffrey........B1
D ber to 1.35 million. The mod-
Diamond, Robert.......B12
E T
El-Erian, Mohamed.....B1
G
Gallo, Stephen .......... B13
Gamble, Al .................. B6
Gammel, Jason.........B13
I Novogratz, Michael.....B1
Inch, John....................B3
J Patel, Viraj................B13
Jun, Jiang....................B4
GOLD
Continued from the prior page
bitcoin prices soar to records.
While gold buyers historically
have looked to the precious
metal as a place to hide during
a market selloff, Mr. Lally said
virtual currencies are a new
“hedge against chaos.”
Waning interest in the pre-
cious metal also reflects a
surging stock market that is
outshining even gold: The S&P
500 index is up 15% and has
closed at records 50 times this
year. With returns like that,
some longtime gold bugs are
bailing on bullion.
“You can’t be parked in
gold,” said Casey Frazier, a
government administrator in
Woodstock, Conn., who used to
hold nearly one-third of his
savings in gold. He has moved
some of his money into the
booming stock market, and
now his precious-metals allo-
cation is down to 10%.
Some small investors who
used to buy gold coins, jewelry
or watches are getting gold ex-
posure through exchange-
traded funds, which are much
easier to buy and sell.
ADS
Continued from the prior page
Angus King (I., Maine) said he
was disappointed the tech com-
panies didn’t send their chief
executives.
“We’re serious about pre-
venting abuse on our plat-
forms,” Facebook Chief Execu-
tive Mark Zuckerberg said in a
statement as part of Facebook’s
quarterly earnings Wednesday
afternoon. “Protecting our com-
munity is more important than
maximizing our profits.”
Russian-created posts
reached an estimated 146 mil-
lion people on Facebook, in-
cluding 20 million people on In-
stagram, Facebook said
Wednesday. Twitter says its us-
ers saw automated, election-re-
lated tweets from accounts tied
to Russia approximately 288
million times over slightly more
than 10 weeks between Sept. 1
and Nov. 15, 2016.
The Russian propaganda
campaign achieved such scale
at a low cost by tapping hot-
button subjects that tend to
generate a lot of engagement
on Facebook. The company’s ad
auction system favors ads that
grab users’ attention and
prompts them to click or other-
wise interact with the ad.
The Russian actor behind the
“Back the Badge” page spent
just 0.14 cent, for example, for
each user its ad was intended
to reach. Facebook General
Counsel Colin Stretch said dur-
ing the hearing the Russian-
backed Internet Research
Agency spent $46,000 on ads
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Facebook
F
.............A2,A9,B1,B3,B14
Fiat Chrysler
Mondelez International
.....................................B7
N
Neuberger Berman...B12
Auto Sales Maintain Strong Run
Automobiles ............. B2 Next...........................B13
BY ADRIENNE ROBERTS
Ford Motor..................B2 Nissan Motor..............B2 Monthly Vehicle Sales Over the Past Year
Fortress Investment The auto industry’s hot
P
Group.........................B1
Permira......................B12 streak continued in October GM Ford Toyota FCA Honda Nissan
G
General Atlantic..........B2
Pitney Bowes..............B3 with car companies achieving t2.2% s6.4% s1.1% t13% s0.9% s8.4%
Prudential Financial....B7
General Electric .......... B3 a far higher sales pace than
Q initially expected for the
General Motors...........B2
Guggenheim Partners Qualcomm...................B4
month, setting the stage for a
...................................B12 S
strong finish to 2017.
H Seagate Technology....B4
Shake Shack................B7 Auto makers have been
Haier Group.................B4
Hershey.......................B7 Signa Holding..............B7 banking on robust fourth-
SoftBank Group..........B1
Honda Motor...............B2 quarter sales after a sluggish
Hudson's Bay..............B7
Standard Chartered
summer. September’s perfor- Oct. 252,813 199,698 188,434 153,373 127,353 123,012
I ........................... B12,B13 mance—fueled by Labor Day
Ionis PharmaceuticalsA3 State Street................B2 deals and hurricane-related re- Sources: the companies THE WALL STREET JOURNAL.
K T placement sales—was abnor-
Kellogg.........................B7 Tencent Holdings......B12 mally strong, and October’s re- because there was one less car companies’ fiscal-year cal- cause of a decline in sales of
KKR............................B12 Tesla.....................B1,B14
Kraft Heinz ................. B7
mained near that pace, selling day compared with Oc- endars ending in December. passenger cars, reflecting a
Teva Pharmaceutical B14
3G Capital Partners....B7 according to preliminary esti- tober 2016 and analysts had “We just need to make sure preference for trucks and
Lehman Brothers
Toyota Motor..............B2 mates published Wednesday been expecting a bigger year- that we properly sell down our sport-utility vehicles. Fiat
Twitter...................B1,B3 by Autodata Corp. over-year decline. 2017 model-year vehicles and Chrysler said sales fell 13% to
Holdings..................B12
Los Angeles Dodgers U Nearly all major auto mak- Ford Motor Co. sales chief transition to our 2018 vehicles 153,373 vehicles, a decline
...................................A16 Uber Technologies.B1,B2 ers posted considerable gains, Mark LaNeve said strong un- as we move into the last quar- driven by a modest drop in re-
M Under Armour.............B3
sending the closely watched derlying economic factors—in- ter,” Ms. Wheeler said. “We tail sales and a reduction in
United Technologies...B4
Marathon Oil.............B13 seasonally adjusted annual cluding wage growth and low want to be as aggressive as we sales to fleet buyers, such as
MetLife........................B7 V-W
Molson Coors Brewing Vanguard Group........B12 sales rate to 18.1 million, Auto- unemployment—are helping to can and deliver the right level rental-car companies.
.....................................B7 Walt Disney................A1 data said, outpacing the prior keep showrooms busy. Ford’s of profits to the company.” Nissan said its sales in-
October’s 17.8 million and ini- sales volumes and profit have Ford was the lone Detroit creased 8.4% compared with
tial analyst expectations for a been buoyed as sales of the F- competitor posting an October the prior October, while Toy-
17.5 million SAAR. Full-year
auto sales through 10 months
Series pickup truck sizzle
amid low gasoline prices.
gain, reporting a 6.4% increase
compared with the same
ota reported a 1.1% increase.
Both companies cited strong
are holding close to the pace “Consumer confidence is month in 2016, selling 199,698 sales of smaller crossover
Pickering, Kallum......B13 set a year ago. up, the stock market is up— light vehicles. Toyota Mo- SUVs—such as the Nissan
Kalanick, Travis...........B1 R Autodata, which excluded that really helps the psyche of tor Corp., Honda Motor Co. Rogue and Toyota RAV4—as a
Katimbo-Mugwanya, Raine, Mark.................B4 BMW AG from estimates be- our buyers,” Mr. LaNeve said and Nissan also recorded year- reason for gains. Honda sales
Roberts, Gregory N. ... B2 cause of delays in the German on a conference call. over-year gains. rose nearly 1%, with the Civic
Kawanishi, Izumi........B4 S
auto maker’s reporting, said Judy Wheeler, Nissan Mo- General Motors Co. and compact car, the auto maker’s
Khosrowshahi, Dara ... B1
Sacconaghi, Toni.........B1 sales volume fell 1.3% in Octo- tor Co.’s U.S. sales chief, said Fiat Chrysler Automobiles best-selling vehicle in October,
L Siegel, Bruce...............A3
she expects auto makers will NV, however, posted declines. notching double-digit gains.
Lally, Philip ................. B1 Son, Masayoshi .......... B1
Strangfeld, John.........B7 est decline is seen as a posi- get “extremely aggressive” in GM said sales fell 2% in Octo- —Mike Colias
LaNeve, Mark..............B2
tive development, however, the fourth quarter, with most ber to 252,813 vehicles be- contributed to this article.
M
Thomas, Peter ............ B1
Maxfield, David...........B6
UBER
McMillan, Brad..........B13 Thooft, Nathan.........B13
Minerd, Scott............B12 V commitment to back off, but
Musk, Elon...........B1,B14 Varga, Tamas............B13 never agreed to formalize it,
N W said a person familiar with the
Weiser, Brian..............B3 firm’s thinking.
P Wheeler, Judy.............B2 Continued from the prior page Board members and inves-
Z chief John Thain in the seats tors had been haggling with
Petkevich, Danny........B4 Zuckerberg, Mark ....... B3 without consulting other di- the SoftBank group over the
rectors. discounted price. Talks had
The SoftBank consortium, centered on SoftBank offering
Investors have poured more
than $8.5 billion into State
which includes Dragoneer In-
vestment Group and private-
to buy shares from existing in-
vestors at around a $50 billion
SERGIO LIMA/AGENCE FRANCE-PRESSE/GETTY IMAGES
Street Corp.’s gold ETF, the equity firm General Atlantic, valuation, according to the
largest gold ETF, since the end has proposed a two-part deal, people familiar with the mat-
of 2015. That reversed three in which it would directly in- ter. It couldn’t be learned what
years of net outflows and vest at least $1 billion in Uber price the two sides recently
marks the biggest period for at its last valuation of $68 bil- settled on.
inflows since 2009, according lion, while also buying a much Mr. Kalanick has fought
to FactSet. larger stake from existing in- Benchmark’s efforts to curtail
Mr. Thomas said authorized vestors at a substantial dis- his control and said its lawsuit
gold purchasers who buy di- count to that valuation. Soft- is without merit. Benchmark
rectly from the U.S. Mint have Bank is seeking a stake of 14% has indicated the suit would
been getting hurt, too, because to 20% in Uber. no longer be necessary if the
of waning dealer demand. Uber’s board unanimously governance changes are imple-
“They end up having to stock- agreed in early October to pur- mented as part of the SoftBank
pile coins,” he said. sue the deal and to have it deal. If Benchmark ultimately
In September, gold dealer Drivers for ride-hailing firms celebrated in Brasília Tuesday night. trigger a series of corporate- pursues the suit, it is slated to
and authorized purchaser A- governance changes backed by be decided by an arbitrator.
Mark Precious Metals Inc., one the board, including the addi- Benchmark and Mr. Kalan-
of the few public companies in Brazil Delays Vote As originally proposed, the tion of six board seats—two of ick have been in the middle of
the industry, reported quarterly bill would require drivers to them for SoftBank—and the much of the board infighting
profits down 20% from a year On Ride-Hailing Bill own their cars and be licensed removal of enhanced voting over the SoftBank deal.
ago. The amount of gold sold in by local authorities, as taxis power for early investors in- With a 13% stake, Bench-
ounces fell 59% from the same are. The ownership require- cluding Mr. Kalanick. It was to mark’s willingness to sell some
quarter last year. Ride-hailing services won a ment was later removed. be a signature early victory for of its shares is vital for the
“We’re looking for ways to temporary victory in Brazil on Uber said it depends on Mr. Khosrowshahi, who has deal because Mr. Kalanick has
just take market share and do Tuesday when Congress put contract workers who might been working to calm inves- indicated he has no plans to
more business in the current off a final vote on a bill in- not own the vehicles. tors and directors after a se- unload any of his holdings.
environment,” Chief Executive creasing regulation on the in- Brazil’s Senate ended up ries of scandals. Benchmark, whose stake is
Gregory N. Roberts said during dustry, after intense lobbying approving the bill, but with Mr. Kalanick is now raising worth around $8.4 billion, has
the earnings call. led by Uber Technologies Inc. changes, effectively sending it concerns in part because he said it believes Uber could be
He added that the company Uber told lawmakers regu- back to the Lower House for feels Benchmark is reneging worth more than $100 billion
was “looking ahead in believ- lation would hurt 500,000 further debate. There is no set on a commitment to formalize in the coming years.
ing that this isn’t going to last drivers and 17 million passen- date for a final vote. its intent to drop its lawsuit For SoftBank, a deal with
forever,” but others sounded gers who use the app in Brazil —Paulo Trevisani against him, said two people Uber would give it a stake in
more bearish on the industry’s amid high unemployment. and Greg Bensinger familiar with the matter. all of the largest global ride-
prospects. Benchmark made a verbal hailing firms.
other Russia-backed Facebook
page, “Heart of Texas,” had
planned a protest of the center.
The two rallies drew dozens
of attendees and attracted local
news coverage. The cost of pro-
moting these events on Face-
book was $200, said Sen. Rich-
ard Burr (R., N.C.) during a
hearing Wednesday morning.
In July 2015, “Black Matters”
bought a news-feed ad to pro-
mote its Facebook page, which
had nearly 224,000 likes at that
point. The page targeted the ad
to users located within about
ANDREW HARRER/BLOOMBERG NEWS
12.5 miles of three cities with
large black populations: At-
lanta, Ferguson, Mo., and St.
Louis.
The ad, backed by a Face-
book page called “Williams&Ka-
lvin,” urged Facebook users to
subscribe to its channel on You-
Tube, a unit of Google.
The Senate Intelligence Committee hearing about social media. Twitter initially identified
201 accounts on its site that
ahead of the 2016 U.S. presi- can.veterans.” The ad was were related to the 470 Russia-
dential election, compared with viewed 17,654 times. backed accounts Facebook
a combined $81 million in Facebook in September iden- found on its site. This week,
spending from Hillary Clinton tified 470 accounts linked to Twitter revealed the number of
and Donald Trump’s campaigns the Internet Research Agency, Internet Research Agency-
prior to Election Day. Twitter which operated 120 pages. It linked accounts was more than
has identified $235,784 in ad- disclosed at the time that the 10 times greater than its first
vertising spent by Russian- accounts bought 3,000 ads dur- sweep.
linked accounts that was tar- ing a two-year period, but it Some of the Russian Twitter
geted at U.S.-based users in didn’t make them public. Some accounts were active until very
2016. lawmakers vowed to release recently. One, which used the
Other ads appeared on Insta- them in order to make Ameri- name “Chelsey Jones” and the
gram, Facebook’s photo-sharing cans more aware of the Russian handle @cheelsyJoTRs, on Oc-
service. Facebook has only re- manipulation. tober 14 tweeted: “BUSTED!
cently started to acknowledge Some ads promoted events, Two Obama ’Dreamers’ Ar-
the scale of Russian manipula- often on opposite ends of the rested For Smuggling in Ille-
tion on Instagram. “Killary Clin- ideological spectrum. For exam- gals!” The account had #MAGA
ton will never understand what ple, in May 2016 the “United in its profile description.
it feels like to lose the person Muslims of America” page co- —Douglas MacMillan,
you love for the sake of your ordinated a rally to support a Byron Tau, Mark Maremont
country,” said an ad from an In- recently opened Islamic center and Rob Barry
stagram account called “ameri- in Houston. That same day, an- contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * NY Thursday, November 2, 2017 | B3

BUSINESS NEWS

Under Armour Shake-Up

Claims More Executives
Marketing chief and
head of women’s
business to depart
amid a sales slump
BY SARA GERMANO
Under Armour Inc. is shed-
ding more of its senior leader-
ship, including its chief mar-
keting officer and the head of
its women’s business, as the
sportswear company continues
to grapple with declining
sales.
Andrew Donkin, the mar-
keting chief, and Pamela
Catlett, senior vice president
PENCER PLATT/GETTY IMAGES
A spokeswoman for Under
Armour said the Baltimore-
based company has “mutually
agreed to part ways” with Mr.
Donkin and Ms. Catlett, and
that they would leave later
this month.
Mr. Donkin, who joined the
company from Amazon.com
Inc. last year, declined to com-
ment. Ms. Catlett, who previ-
ously spent more than a de-
cade at Nike Inc. and offered
management-consulting ser-
vices, didn’t immediately re-
spond to a request for com-
ment.
Other recent departures in-
clude the president of sport
fashion, Ben Pruess, and Kip
officer, who took over some of
Mr. Fulks’s responsibilities.
Mr. Frisk is shaking up the
company’s leadership team, a
person familiar with the mat-
ter said, adding that more
changes might follow.
On Tuesday, Under Armour
reported its first-ever sales
drop as a public company, and
executives pledged more
changes as they contend with
a contracting market after
years of rapid growth. Shares
of Under Armour fell 24% on
Tuesday and an additional
3.8% on Wednesday, to $12.05.
In August, Under Armour an-
nounced a round of layoffs and
restructuring.

and general manager of Under
Armour’s women’s and youth
categories, are leaving the
company. A memo announcing
their departures was circu-
lated among company leaders
Tuesday night, a person famil-
Executives vow more changes after the company’s first-ever sales decline as a public firm. iar with the matter said.
Fulks, who went on sabbatical
last month. Mr. Fulks was a
co-founder of Under Armour
and widely considered to be
the deputy to Chief Executive
Kevin Plank. Under Armour in
June hired Patrik Frisk as
president and chief operating
The company is making
other changes, including get-
ting out of wearable fitness
hardware and shifting its fash-
ion sportswear line into run-
ning, basketball and women’s
categories, instead of operat-
ing as a stand-alone unit.

Facebook Vows to Sacrifice Growth for Secure Operations

BY DEEPA SEETHARAMAN contractors who handle safety its failure to detect the way always been this concern that shape political discourse
and security issues to 20,000 Russian propagandists used its at the top of the company New Heights around the world.
Facebook Inc. extended its by the end of 2018. It is also platform to spread divisive they’re not taking these mat- Facebook’s quarterly revenue Facebook reinvigorated the
dominance in online advertis- redoubling security-focused content through ads, free posts ters seriously enough. Lack of debate two months ago after it
$10 billion $10.3B
ing in the third quarter but engineering efforts in some ar- and event listings. trust creates friction, lack of disclosed that Russian-linked
said it would sacrifice some eas and building new artificial- The grilling raises the spec- trust creates rules and those Facebook accounts bought
future growth to invest more intelligence systems to detect ter of regulation and added rules come with costs.” thousands of ads that sought to
heavily in its safety and secu- what Chief Executive Mark scrutiny, which could slow Facebook reported a third- 8 inflame social and political ten-
rity operations to address the Zuckerberg described as “bad Facebook’s growth and ability quarter profit of $1.59 a share, sions before and after election.
growing scrutiny of its power content and bad actors.” Face- to rapidly develop new prod- up from 90 cents a share a In congressional hearings
and influence. book’s 2018 expenses could ucts. The crisis also put Face- year ago. The company also 6 on Tuesday and Wednesday,
The social-media giant re- rise as much as 60% compared book in the awkward position generated $10.33 billion in rev- General Counsel Colin Stretch
ported a 79% jump in third- with 2017. of playing down the effective- enue, up from $7.01 billion in faced questions that went be-
quarter profit on Wednesday, “I am dead serious about ness of the Russian ads while the prior year’s quarter. 4 yond Facebook’s role in the
the same day lawmakers this,” Mr. Zuckerberg told in- touting the strength of its ad The firestorm about Russia 2016 election and touched on
grilled executives from Face- vestors. “I’ve directed our targeting and reach to legiti- hasn’t hurt Facebook’s popu- its ad-targeting capabilities
book, Twitter Inc. and Alpha- teams to invest so much in se- mate advertisers. larity. The company increased 2 and content policies.
bet Inc.’s Google during con- curity on top of the other in- Advertisers, too, are wary its monthly active user base to Facebook said 146 million
gressional hearings that vestments we’re making that it of Facebook’s video ad prod- 2.07 billion. users saw posts from accounts
focused on alleged Russian will significantly impact our ucts after a series of missteps Its shares were down 2% in 0 linked to the Internet Research
propagandists’ activity during profitability going forward.” in calculating advertising per- after-hours trading. The stock 2013 ’14 ’15 ’16 ’17 Agency, a pro-Kremlin outfit
the election. Facebook and Facebook is confronting one formance. price is up more than 59% this Source: the company that sought to use Facebook to
Google together capture the of the toughest periods in its “The underlying issue is year through Wednesday’s THE WALL STREET JOURNAL. amplify social divisions in the
bulk of the growth in digital 13-year history. This week, whether Facebook can be suffi- close. U.S.
advertising. Facebook’s general counsel ciently trusted by stakehold- Since the 2016 U.S. presi- lowing misinformation, propa-
Facebook plans to double faced a series of hostile ques- ers,” said Pivotal Research an- dential election, Facebook has ganda and violent videos to  Heard on the Street:
the number of employees and tions from U.S. lawmakers over alyst Brian Weiser. “There’s faced immense criticism for al- proliferate on its service and Facebook lacks allies ....... B14

Pitney Bowes Explores Options

BY ALLISON PRANG sions had been made and that
the exploration of alternatives
Pitney Bowes Inc. said it is might not result in any action.
looking at strategic alterna- The Stamford, Conn., com-
tives as the shipping-services pany also announced plans to
company struggles to expand cut spending by $200 million
amid lower mail volume. over the next two years. Costs
Shares fell 17% on Wednes- in the third quarter were
day after Pitney Bowes re- $767.9 million, compared with
ported an earnings decline for $745.4 million last year.
the third quarter, missing ana- Net income for the quarter
lysts’ expectations. fell 12%, to $57.4 million, or 31
Chief Executive Marc Laut- cents a share, from $65.5 mil-
enbach said, “We believe now lion in the year-earlier period.
is the time to explore a broad Adjusted earnings per share
range of strategic alternatives were 33 cents. Analysts were
that may have the potential to predicting 42 cents a share.
further unlock shareholder Revenue rose to $842.8 million
value.” from $839 million last year.
Pitney Bowes said it had The company has struggled
lower mail volume has cut into
its core business of providing
shipping and mailing services
to companies.
In the third quarter, revenue
in its digital-commerce group,
which accounts for about a
quarter of total revenue, in-
creased 19%. But revenue in the
company’s two mailing and
shipping-services units com-
bined was down 4.5%.
Pitney Bowes did say it ex-
pects faster revenue growth
this year because of the acquisi-
tion of Newgistics Inc., an Aus-
tin, Texas-based company that
focuses on shipping and analyt-
ics for brands and retailers. Pit-
ney Bowes bought the company

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 B4 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Sony Walks Its Robot Dog Back to the Marketplace

Qualcomm Feels
Sting of Fine and
War With Apple
BY TED GREENWALD Qualcomm is the largest
provider of communications
Qualcomm Inc.’s quarterly chips for smartphones. How-
profit plunged 89%, crippled ever, its business is embattled
by a $778 million charge re- on several fronts. Apple and
lated to a fine by Taiwanese Qualcomm are locked in a war
regulators and Apple Inc.’s over royalty rates. The tussle
withholding of patent royalties threatens to spill into chip
on iPhones and iPads. sales. Apple uses Qualcomm’s
The penalty imposed by communications chips in some
Taiwan in October was Qual- iPhones and iPads, but it has
comm’s third since 2015, fall- taken steps to eliminate Qual-
KAZUHIRO NOGI/AGENCE FRANCE-PRESSE/GETTY IMAGES

out from a wave of interna- comm’s products from its next

tional regulatory challenges. generation, The Wall Street
Qualcomm is appealing. Journal reported this week.
Meanwhile, Apple has with- On its call with investors,
held fees it owes for its use of Qualcomm declined to discuss
Qualcomm’s intellectual prop- any particular media reports
erty as it battles for lower but said it is confident in its
royalty rates. The conflict has modem road map, and said it
overshadowed Qualcomm’s fi- continues to work at being a
nancial performance since Ap- good supplier to Apple.
ple filed suit in January. The company counseled in-
Qualcomm on Wednesday vestors to be patient. “It’s im-
reported revenue from licens- portant to keep in mind that
ing intellectual property, litigation of this size and mag-
which typically contributes nitude takes a while,” said Don
Sony Corp. unleashed its first Wednesday to a nine-year-high. roughly $1,700. New owners will Chief Executive Kazuo Hirai said. well more than half of Qual- Rosenberg, chief legal officer.
puppy-shaped robot in more The new Aibo, shown in To- also need to pay about $25 a Last year, Mr. Hirai said Sony comm’s pretax earnings, A previously disclosed sec-
than a decade, a device the kyo on Wednesday, features im- month for cloud services to pro- would emphasize making robots dropped 36%. Sales of chips ond licensee, which Qualcomm
company hopes will herald its proved artificial-intelligence soft- vide their devices with remote as a way to showcase the com- for mobile devices rose 13%. hasn’t named, also has been
return as an innovator after ware and enhanced motors and updates for such things as pany as an electronics and en- For the quarter ending in withholding royalty payments.
years of cost-cutting. sensors that help the robot bet- teaching the robot new tricks. tertainment innovator. December, Qualcomm forecast Qualcomm on Wednesday said
The resurrection of the Aibo, ter resemble a real dog. The One optional extra is a $25 Sony said it is confident the adjusted per-share earnings that disagreement began be-
which was first launched in 1999 company said each device will plastic bone for the dog to re- new Aibo can stand out. “Aibo between 85 cents and 95 cents fore its dispute with Apple,
and discontinued in 2006, came develop unique behavior pat- trieve and carry around. Aibo created the consumer-use enter- on revenue between $5.5 bil- and involves unrelated issues.
a day after Sony said profit for terns depending on owner inter- comes with a ball, which is in- tainment robot market,” said lion and $6.3 billion. The San Diego, Calif., chip
this fiscal year would be the actions and can work with other cluded in the original price. Izumi Kawanishi, the manager of Overall, Qualcomm reported maker reported per-share
highest in the Japanese com- internet-connected electronics. “The Aibo embodies our mis- the project. “We want to be the fourth-quarter revenue of earnings of 92 cents on an ad-
pany’s 71-year history. The Aibo will be released first sion to keep stimulating people’s one to expand it as well.” $5.91 billion, down 4.5% from justed basis. Analysts had ex-
Sony shares rose 11% in Japan and cost ¥198,000, or curiosity and move their hearts,” —Takashi Mochizuki the same period a year earlier. pected 81 cents a share on $5.8
Profit was $168 million, down billion in revenue, according to
from $1.6 billion. a survey by Thomson Reuters.

Surveillance Vendors Line Up to Supply China’s Police

BY DAN STRUMPF 1.4 billion people. That is pro- key areas is cameras,” said tion from China’s prolific
AND WENXIN FAN viding a boon for equipment Danny Petkevich, product- personal-data records, from
makers. But it has also management director for Qual- national identification num-
SHENZHEN, China—U.S. sparked concern from rights comm’s connected-cameras bers and marriage records to
tech giants and Chinese state- activists about how the au- business. “As we were looking Wi-Fi log-ins. “This is already
backed companies showed off thoritarian government is us- at the areas of growth, secu- in use in Zhejiang,” Dahua’s
the future of policing in this ing the souped-up “Big rity cameras is obviously a big home province on China’s
DAN STRUMPF/THE WALL STREET JOURNAL

technology hub as they vie for Brother” technology. portion of that market.” eastern coast, a company rep-
a slice of the world’s largest Seagate Technology PLC, At a booth hosted by Dahua resentative said.
surveillance market. Qualcomm Inc. and United Technology Co., a Chinese Most products shared a
Companies from across the Technologies Corp. were maker of surveillance equip- common thread: a combina-
globe packed one of the among the foreign companies ment, a live camera projected tion of artificial intelligence,
world’s biggest surveillance to show their wares at the the faces of passersby on the such as facial-recognition soft-
trade shows to demonstrate 16th China Public Security screens alongside text describ- ware, with increasingly high-
the latest gizmos and algo- Expo, where prospective cus- ing their gender, age range powered surveillance devices.
rithms powering the industry’s tomers included Chinese po- and expression. “The purpose to come here
high-tech revolution. Tools be- lice, government officials and The demo wasn’t a hit with is to find innovation. You real-
ing hawked included facial- businesses. everyone: It described Peng ize how far behind Western
recognition cameras, software “Ninety percent of the com- The Shenzhen expo. Beijing is stepping up its monitoring efforts. Xue, 27 years old, as young countries are,” said Mark
that can read a subject’s panies here have some kind of and sad. “My first impression Raine, managing director at
mood, and cameras that can facial-recognition products, inces, as well as more than 50 faces but offer a judgment on is this is an overexpose of my CCTVdirect, a U.K.-based dis-
scan license plates in the dark. and they all want to sell it to banks, as customers of its fa- the subject’s demeanor, such information,” she said. “And it tributor of surveillance equip-
The surveillance-equipment the police,” said Jiang Jun, an cial-recognition algorithm. as “calm” or “happy.” The doesn’t seem to be right. I am ment. He was watching a gad-
market in China was valued at executive of CloudWalk Tech- Qualcomm booked rooms at technology was made in part- actually happy.” get demonstration by the
$6.4 billion last year, accord- nology Co., a two-year-old the nearby Ritz-Carlton hotel nership with Chinese facial- Also on display by Dahua Chinese appliance maker
ing to IHS Markit. China is a startup from Chongqing. A to demonstrate its latest tech: recognition pioneer Sense- was a big-data platform that Haier Group. “What starts
big buyer of surveillance tech- spinoff of the Chinese Acad- not-yet-released tools that, Time, the company said. enables the police to piece to- here ends up in homes, air-
nology as Beijing steps up its emy of Sciences, the company when plugged into security “Internet of Things is just gether a target’s social net- ports and businesses back in
efforts to better monitor its counts police units in 23 prov- cameras, recognize not just blowing up, and one of those work by scooping up informa- America,” he added.

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the paper? The look of the
text? Always knowing where
you are, and how much
you’ve got left? The comfort
of knowing that if a book fell
into a swimming pool, it
won’t cost hundreds to re-
place? Or maybe the reassur-
ing lack of blinky notifica-
tions when you’re just trying
to lose yourself in literature?
Amazon’s newest Kindle
Oasis comes the closest to
addressing the biggest con-
cerns of old-school book
readers. And it adds perks
that digital converts like me
appreciate. It is the best e-
reader ever made—and is
the first Kindle to be water-
proof. But it also shows how
great are the challenges,
costs and compromises of
making literature digital.
This Oasis is the second
of its name, and like its pre-
decessor comes with a
squarish shape, premium
body and convenient ambi-
dextrous buttons. (Uncom-
fortable? Just flip it over.)
It also shares an unusually
high price tag.
At $250, the new Oasis
actually starts $40 lower
than the first one, but that’s
still twice the cost of a
only reading, I’ll never go
beach. To this day, reading back to paper.
in direct sunlight is far more But today’s readers are di-
pleasant on a Kindle than vided: A late-2016 Pew Re-
on, say, an iPad. But until search Center study showed
now an errant splash that 65% of its respondents
could’ve ruined that bliss. read a printed book over the
past year, while only 28%
T
he new Oasis also has read a digital book.
a slightly larger 7- And those who read digi-
inch screen. The old The new Kindle Oasis: larger tal copies are now less likely
6-inch screen wasn’t a screen, rugged aluminum body. to be reading them on dedi-
pain—it felt about the size cated e-readers, preferring
of the mass-market paper- LTE wireless networks as tablets, laptops and even
backs many of us spent de- well as Wi-Fi. phone screens (which can re-
cades consuming. But the I mostly read at night duce comprehension).
extra space gives the text with my iPad. I flip the
W
more breathing room, like screen to black, with white hile Kindles bridge
the fancier trade paperbacks text. I bring the brightness the gap between
that would signal you all the way down and read in touch screens and
weren’t just a romance-and- the darkness, until (rather physical books, they’re an
mystery binge-reader. quickly) nodding off. The imperfect substitute for ei-
The technological upgrades Kindle Oasis has a new and, ther. Kindles shouldn’t be
are more subtle. If you’re an for now, exclusive accessibil- multitaskers like phones and
Audible subscriber or a per- ity setting that lets you in- tablets. And Amazon may
son who hops back and forth vert the text to a black back- never figure out how to rep-
between text and audiobooks, ground. But like all but the licate the tactile feel of turn-
you might like the built-in au- cheapest Kindles, the Oasis ing a page of paper—though
dio player, which pairs with has a front-lighted screen, never say never around Jeff
separately sold Bluetooth which renders the effect less Bezos.
headphones or speakers. potent. Meanwhile, there’s the
You can choose between
8-gigabyte and 32-gigabyte
Besides ditching the Itty
Bitty Book Light, there are
Kindle Oasis. If anything
would tempt print lovers to
models; higher storage many reasons to embrace e- go digital, this is it. But I’m
would mainly benefit people books, on whatever device. not sure the drawbacks of
who want to store a lot of This past year, I’ve read printed books are great
audiobooks. A super-deluxe 14 novels, give or take, all on enough to convert any more
$350 version connects to 4G my iPad, with all notifica- readers.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, November 2, 2017 | B5

EMERGING MARKETS
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B6 | Thursday, November 2, 2017
Being Fix-It
Boss to Staff
Doesn’t Work
Leaders intent on assisting weak
performers may hurt everyone
BY JOANN S. LUBLIN
Most bosses know they
can succeed by making their
lieutenants look good. But
some well-meaning execu-
tives work too hard to fix
weak staffers, putting them-
selves in a messy career fix.
Overly focused on assist-
ing underperformers—even
taking over
YOUR subordinates’
EXECUTIVE toughest
CAREER tasks at
times—these
fixers tend to
lose demoralized stars. Res-
cuers also risk being viewed
as poor judges of talent if
their remedial attempts fail.
Leaders fixated on fixing
others “feed off being a
hero,’’ said Liz Wiseman, au-
thor of “Multipliers,’’ a book
about why some leaders
drain capability from their
teams while others amplify
it.
Nearly a third of bosses
frequently jump in to rescue
people or projects, concludes
a global survey of 35,000
managers completed in July
by Wiseman Group, a leader-
ship research-and-develop-
ment firm that she runs.
The fixer-boss phenome-
non likely has grown with
the wider use of smart-
phones because real-time up-
dates about workplace prob-
lems offer irresistible bait,
Ms. Wiseman said.
Self-proclaimed fixer Kim-
berly Harris said she likes to
roll up her sleeves and help
associates solve problems.
She runs America Needs You,
a New York nonprofit that
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THE WALL STREET JOURNAL.
MANAGEMENT
WORKAROUND
Remote Workers
Fear They Aren’t
Treated Equally
Working from home may
not be the Shangri-La it’s
cracked up to be. In fact, re-
mote workers are more
likely than on-site workers
to believe their associates
don’t treat them equally, a
new study shows.
Employees who work from
home or another remote lo-
cation struggle harder than
helps first-generation college on-site workers to handle is-
students with mentorship sues such as getting co-
and career development. workers to fight for their
An executive Ms. Harris priorities, according to a
picked a few years ago per- survey of 1,153 workers by
formed well at first after she VitalSmarts, a corporate-
took charge of a new initia- training firm.
tive for the nonprofit. The findings of the survey,
Within months, however, conducted in September and
the new hire began missing October, highlight “the im-
CAITLIN OCHS FOR THE WALL STREET JOURNAL
deadlines, making mistakes portance of organizations
and failing to pursue poten- figuring out how to manage
tial donors. “I oftentimes remote employees,’’ said Da-
would do [her] work my- vid Maxfield, vice president
self,’’ Ms. Harris remem- of research at VitalSmarts
bers. “I would stretch out my and the study’s co-author.
workday.’’ Most U.S. employers let
The nonprofit leader said staffers telecommute some-
she hesitated to replace the times, according to the Soci-
executive because she feared ety for Human Resource
being blamed for a faulty Management. VitalSmarts
hire. The woman lasted a found that remote workers
year. Kimberly Harris says a delayed decision to terminate an employee hurt morale at her nonprofit. are significantly more likely
“I should have let her go than their on-site colleagues
sooner,’’ Ms. Harris admit- make life difficult for them- her informal mentor and the Hartford, Conn., concern. to report seeing colleagues
ted. She said she apologized selves under board pressure gave her feedback after at- But the newcomer had a change projects without
to her top team afterward for faster results, said Mike tending some of her staff hierarchical management warning and to believe co-
because her delayed decision Magsig, who leads the board meetings. He also repeatedly style, favoring email over workers say bad things be-
had hurt morale. and CEO practice for re- told fellow board members personal encounters, Mr. hind their backs.
Bosses worried about wid- cruiter DHR International. that he needed more time to Gamble said. “He struggled Mr. Maxfield believes indi-
ened skill shortages often try In late 2012, Mr. Magsig fix things. to gain loyalty from all lev- viduals working remotely
to fix rather than quickly fire recalled, the head of a finan- But after 18 months, di- els.” Cristina Filippo, a lead- have trouble solving work
flawed employees. “I have cial-services company chose rectors ran out of patience, ership coach whom Locals 8 difficulties because they
tried too long to fix a weak a marketing maven to com- according to Mr. Magsig. had retained during this pe- rarely meet face to face with
performer because I overes- mand a costly, new-business They ousted the CEO—and riod, said she urged Mr. their supervisors. “Out of
timated the impact their de- initiative. The new execu- within two weeks, fired his Gamble to fire someone “the sight, out of mind,’’ he said.
parture would have on the tive’s management team weak marketing executive as first time you get that in- At Dell Technologies Inc.,
company,’’ said Linda Gali- soon complained to directors well. stinct.” about 15% of employees
peau, CEO of Randstad North that she was ignoring fi- At Locals 8 Hospitality The Locals 8 leader said have formally signed up to
America, a unit of Randstad nance, operations and Group, which owns 12 res- he refused to do so with his work wherever they prefer,
Holding NV, a Dutch recruit- equally critical areas. taurants in four states, Chief would-be president because but 58% work remotely at
ment giant. “She decided to play it Executive and founder Al “I thought I could move him least one day a week. The
“I have seen senior lead- safe and stuck with what she Gamble learned valuable les- into the right seat” through tech giant says it encour-
ers lose their jobs” as a re- knew,’’ said Mr. Magsig, who sons from his attempted res- various corrective steps. ages leaders to check in reg-
sult of trying to fix weak was then advising the com- cue of a chief operations of- When his efforts didn’t suc- ularly with subordinates re-
performers for too long, Ms. pany’s board. ficer. He recruited a ceed, Mr. Gamble dismissed gardless of whether their
Galipeau said. The chief executive sought restaurant-industry veteran the senior executive in fall staffers work in the same
Corporate chiefs who to rescue his recruit. He in late 2013, hoping he could 2015—about six months after building, from home or a
move too slowly to address brought in a coach, tapped a someday promote the sys- Dr. Filippo had made her distant office.
performance problems can retired company executive as tems expert to president of suggestion. —Joann S. Lublin
FR An Ex
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THE WALL STREET JOURNAL. * * Thursday, November 2, 2017 | B7

EARNINGS

Light Beer Weighs Down

Results for Big Brewers
BY JENNIFER MALONEY
America’s most popular
type of beer is in free fall.
The big three U.S. light-la-
ger brands—Bud Light, Coors
Light and Miller Lite—are all
losing volume as consumers
shift to craft and Mexican im-
port beers as well as to wine
and spirits.
riod, according to Beer Mar-
keter’s Insights. “That’s a
shocker,” the industry tracker
wrote Wednesday.
“I think it’s safe to say that
the industry had a tough sum-
mer,” Gavin Hattersley, chief
executive of Molson Coors’s
U.S. business unit MillerCoors,
said on a call with analysts.
The downward slide of
14% to 65 million barrels.
The silver lining, at least
for Molson Coors, is that both
Miller Lite and Coors Light are
gaining share on market
leader Bud Light.
“We’re very pleased with
our performance with Miller
Lite, in particular,” Molson
Coors CEO Mark Hunter said.
“It’s doing well in a declining

DANIEL ACKER/BLOOMBERG NEWS

Molson Coors Brewing Co.,
which makes Miller Lite and
Coors Light, said Wednesday
that its U.S. sales-to-retailers
volume fell 2.9% in the third
quarter, compared with the
year-earlier period, thanks
largely to declines in the two
light-beer brands. Anheuser-
Busch InBev NV said last week
that Bud Light, the No. 1 U.S.
beer brand by volume, fared
even worse, losing almost a full
percentage point of market
share in the three months.
Combined, the country’s
top two brewers sold 2.6 mil-
lion less barrels over that pe-
American lagers isn’t new. But
according to Molson Coors,
demand has been even more
sluggish than anticipated amid
a spate of hurricanes, dis-
counted prices on spirits and
changes in consumer behavior.
“Millennials are going out
less,” Mr. Hattersley said.
Retail-store sales of Bud
Light, Coors Light and Miller
Lite are down 5.7%, 3.6% and
1.6%, respectively, this year
through Oct. 21, according to
Nielsen data compiled by Beer
Marketer’s Insights. From 2010
through 2016, overall volumes
in the light-lager category fell
segment.”
The company’s craft-style
Blue Moon beer is performing
well, executives said, and Mol-
son Coors has high hopes for
Sol, a brand it acquired from
Heineken this year to get in
on the booming U.S. sales of
Mexican imports, such as Co-
rona and Modelo, distributed Miller Lite, along with Coors Light and Bud Light, is losing volume amid shifting consumer tastes.
by competitor Constellation
Brands Inc. ing at the potential impact le- 9.9% stake in Canadian canna- caught in some sort of adrena-
It is too soon to say how galized cannabis could have on bis company Canopy Growth line rush,” Mr. Hunter said,
well Sol is doing, Mr. Hattersley its beer sales, as well as possi- Corp. and plans to develop noting that the beer industry
said, noting that Molson Coors ble opportunities for invest- nonalcoholic, marijuana-in- has seen “relatively healthy”
began selling it in October. ment, Mr. Hunter said. Con- fused beverages. sales in Colorado since recre-
Meanwhile, Denver-based stellation Brands said earlier “I think the important thing ational marijuana use was le-
Molson Coors has a team look- this week that it is taking a is to make sure we don’t get galized there.

Hurricane Costs Lower Results at MetLife, Allstate

BY LESLIE SCISM
Hurricanes reduced the
third-quarter results of big in-
surers MetLife Inc. and All-
state Corp. with their large
homeowner and car-insurance
2018, a move that will return
all of the capital to sharehold-
ers. Based on Brighthouse’s
current market capitalization,
that position is valued at about
$1.4 billion. That capital return
will be in addition to the $2
set the big spike in catastro-
phe losses.
Harvey’s extensive flooding
meant an unusually large num-
ber of vehicles were damaged,
During the quarter, insurers
generally benefited from the
rallying stock market. Rising
share prices help insurers that
have blocks of variable annui-
ties on their books. Many of
these products guarantee life-
Among the results:
Prudential’s net income
surged to $2.24 billion from
$1.83 billion the year before.
Its operating income increased
to $1.32 billion, or $3.01 a
share, from $1.19 billion, or
9.3% to $12.61 billion.
Operating earnings at
MetLife’s U.S. unit, which in-
cludes property-casualty and
some other businesses, de-
clined 1.1% to $546 million. At
the company’s big business of

businesses, while the rallying
stock market helped life insur-
ers industrywide with prod-
ucts tied to market returns.
MetLife’s results, released af-
ter Wednesday’s closing bell,
are the first following its spinoff
in August of much of its U.S. re-
tail life-insurance business into
a new company named Bright-
house Financial Inc.
Separation-related charges
of $1.1 billion drove the com-
pany to a quarterly loss of $87
million, versus a profit of $571
million a year earlier.
MetLife also said it would
divest itself of its remaining
19% stake in Brighthouse in
billion that the board added to
its share-buyback program.
Catastrophe-modeling firms
have estimated insured losses
from hurricanes Harvey, Irma
and Maria and two earth-
quakes in Mexico, which also
struck during the quarter, to
total $68 billion to $148 billion
industrywide.
Allstate’s third-quarter re-
sults included $861 million of
those costs, a 79% jump from a
year earlier. The company
touted improved profit in its
auto-insurance segment and
pointed to a significant decline
in the frequency of auto acci-
dents, which it said helped off-
$861M
Catastrophe costs at Allstate in
third quarter
and those costs are covered
under many people’s car poli-
cies.
MetLife didn’t break out its
catastrophe costs but said hur-
ricanes Harvey and Irma were
primarily responsible for a 12%
decline in operating earnings
for its property-casualty unit,
to $51 million.
time income streams, and a
higher stock market translates
into reduced costs for insurers.
They also earn more fees from
the assets under management.
MetLife spun off much of its
variable-annuity business but
retains a block of older con-
tracts on its books, while Pru-
dential Financial Inc. contin-
ues as a leading seller of the
product to consumers.
Prudential Chief Executive
John Strangfeld cited “strong
earnings across segments and
record assets under manage-
ment and account values” in
businesses including asset
management and annuities.
$2.66 a share.
Operating income at All-
state jumped 24% to $587 mil-
lion, or $1.60 a share, from
$474 million, or $1.26 a share,
a year earlier. That figure eas-
ily beat consensus estimates.
Revenue rose 4.8% to $9.66
billion, as property-liability in-
surance premiums increased
3.2% and net investment in-
come increased 13%.
MetLife’s operating earnings
declined 14% to $1.17 billion, or
$1.09 a share, from $1.36 bil-
lion, or $1.22 a share. It was
ahead of analysts’ consensus
expectations. Premiums, fees
and other revenue increased
selling benefits such as life
and dental insurance to em-
ployers, earnings surged 30%.
They were down modestly in
many parts of its international
business, but Latin American
posted a 23% increase.
In its first report as a public
company, Brighthouse posted a
net loss of $943 million, or
$7.87 a share, tied to a tax ex-
pense ahead of its separation.
On an operating basis, exclud-
ing that expense, earnings
were $397 million, or $3.31 a
share. Operating earnings im-
proved in its annuities seg-
ment but declined in the life
division.

BUSINESS WATCH
LUCAS JACKSON/REUTERS

Revenue at Shake Shack was $94.6 million, ahead of analysts’ expectations of $94.1 million.
SHAKE SHACK
Fast-Food Chain
Beats Estimates
Shake Shack Inc. shares rose
in the extended session
Wednesday after the fast-food
company’s earnings topped Wall
Street estimates.
Shake Shack shares rallied
nearly 5% to $39 after hours. The
company reported third-quarter
net income of $5 million, or 19
cents a share, compared with $3.8
million, or 15 cents a share, a year
earlier. Adjusted earnings were 17
cents a share. Revenue rose to
$94.6 million from $74.6 million in
the year-earlier period.
Analysts surveyed by FactSet
had estimated earnings of 15
cents a share on revenue of
$94.1 million.
—Wallace Witkowski
KRAFT HEINZ
Food Maker Finds
Growth Abroad
Kraft Heinz Co. reported its
first sales increase since its
namesake companies merged
two years ago, joining other food
makers that have found growth
abroad as longstanding brands
fall out of favor in the U.S.
Kraft Heinz’s quarterly reve-
nue rose 0.7% to $6.31 billion,
despite a 0.4% decline in reve-
nue in the U.S. On a comparable
basis, global sales increased
0.3%. Analysts had expected an
even wider increase.
Kellogg Co., Mondelez Inter-
national Inc., Hershey Co. and
other food makers have reported
better-than-expected quarterly
earnings. At Kraft Heinz, some
brands are struggling, including
Planters nuts, Kraft cheese and
Maxwell House coffee. Others, like
Lunchables packed meals, posted
sales growth. Kraft Heinz is run
by executives from Brazilian firm
3G Capital Partners LP.
The company reported a 12%
rise in its third-quarter profit to
$944 million. Excluding restructur-
ing-related costs, earnings were
unchanged at 83 cents a share,
topping analysts expectations of
82 cents, according to FactSet.
—Annie Gasparro
and Maria Armental
Whipping Up
Kraft Heinz's sales rose for the
first time in two years.
2%
3Q 2017
0 ▲0.7%
–2
–4
–6
–8
–10 Change from previous year
2015 ’16 ’17
Source: the company
THE WALL STREET JOURNAL.
congratul ations to the winners
HUDSON’S BAY
Signa Holding Bids
For German Chain
Hudson’s Bay Co. said it re-
ceived an unsolicited offer for its
German department-store chain, ARCHITECTURE
Galeria Kaufhof, from its main ri- diller scofidio + renfro
val in that country, but the com-
pany said the offer was incom-
plete and lacked financing.
The offer from Signa Holding ART DESIGN
GmbH, an Austrian investment mark bradford roman and williams
company, valued Germany’s big-
gest department-store operator,
along with European real-estate ENTERTAINMENT
assets, at roughly €3 billion reese witherspoon
($3.5 billion), people familiar
with the matter said. HBC will
review the offer but doesn’t con-
sider it credible, said another FASHION PERFORMING ARTS
person familiar with the matter. raf simons ryan heffington
“The company confirms that
it received today an incomplete,
nonbinding and unsolicited offer
with no evidence of financing,”
TECHNOLOGY
musical.ly
HBC said in a statement
Wednesday in response to me-
dia reports about the offer.
issue on sale this weekend
Signa said it would finance
the deal through a previously
completed €1 billion share of-
fering, a €700 million bank
SPONSORED BY
loan for which it has already
received a commitment, and
the assumption of about €1.34
billion in debt held by a Hud-
son’s Bay real-estate unit that
is part of the deal, according to
© 2017 Dow Jones & Company, Inc. All rights reserved. 3DJ6055
a copy of the letter sent to
Hudson’s Bay.
—Suzanne Kapner
and Zeke Turner
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

BUSINESS NEWS

Weak Revenue Imperils M.B.A. Programs

BY KELSEY GEE its prestige. school’s finances.
Business schools at public Unprofitable M.B.A. pro-
Business schools are facing universities have been particu- grams put B schools in a “dou-
a tough business problem: larly hard-hit by the downturn ble bind,” said Sarah Gardial,
While graduate schools of in demand, forced to provide dean of Iowa’s Tippie College
management can make money steep tuition discounts to at- of Business. The financial bur-
for the institutions that house tract more applicants while den of an unpopular M.B.A.
them, their M.B.A. programs facing tighter state budgets, can stop universities from in-
sometimes bring in little more Carson’s Mr. Hunter said. vesting in new degrees that

SOFIA JARAMILLO FOR THE WALL STREET JOURNAL

than prestige. Many schools have rolled would make money, or push it
Deans and industry watch- out more flexible, part-time further in the red if they do
ers have been bracing for a and specialized programs. launch new programs, she said.
shakeout in Non-M.B.A. master’s degrees Since Iowa is funded in part
BUSINESS business edu- in niche areas like data analyt- with taxpayer dollars, “we
EDUCATION cation. And ics now draw roughly 20% of must make tough choices
with Wiscon- applications, according to the about what we offer and who
sin School of Graduate Management Admis- we are,” she said.
Business debating the future sion Council. Even schools that won’t be
of its core business degree, In 2009, Carson began ending their M.B.A. program
administrators now wonder shifting more resources to its soon are still taking steps to
whether more schools will fol- online M.B.A. program, which stem losses.
low the University of Iowa, enrolled more than 500 stu- Pennsylvania State Univer-
Wake Forest University and Chip Hunter, dean of Washington State University’s Carson College, says many business schools are dents this year, compared with sity’s Smeal College of Busi-
others in ending their M.B.A. under ‘a lot of pressure right now’ to decide on the future of their full-time M.B.A. programs. 200 five years ago. ness cut the size of its full-
programs. But as universities shift time program to 60 students
Since the end of the reces- time M.B.A. programs in the Washington State University’s nances. gears, some face fresh chal- this year, from nearly 70 last
sion, the number of people U.S. fell by more than one- Carson College. The school Of the 173 business school lenges, as the University of year, and is redeploying some
willing to exit the job market third from 2010 to 2016, ac- graduated its last class of full- deans and administrators Wisconsin, Madison, highlights. of its professors to a new one-
to pursue full-time master’s cording to a survey by the As- time M.B.A.s in August, but across the globe surveyed by After the school said it year master’s degree that as-
degrees in business has sociation to Advance still offers a part-time program. the association, 8% of respon- was considering ending its sociate dean Brian Cameron
shrunk. While top-ranked pro- Collegiate Schools of Business, Universities typically don’t dents in the Americas and 25% business school program, said is already on track to turn
grams with large M.B.A. an accreditor. break out business-school rev- in Western Europe said their alumni and students pro- a profit in the next year.
classes like University of “Every U.S. program outside enue, but a survey of deans universities lost money on tested the proposal. The uni- “When almost everyone in
Pennsylvania’s Wharton of the top 20 highest-ranked conducted this year by the flagship residential programs. versity announced last week your program is on a fellow-
School and Harvard Business schools is under a lot of pres- London-based accreditor Asso- Nearly all of those administra- it would take more time to ship or receiving aid, it be-
School continue to rake in ap- sure right now to decide what ciation of M.B.A.s sheds light tors were at public universi- weigh next steps. Wisconsin comes too expensive to be a
plicants and revenue, overall to do” with full-time M.B.A.s, on how the degree program ties, and 80% said they main- School of Business officials sustainable business model for
enrollment in two-year, full- said Chip Hunter, dean of can strain an institution’s fi- tained the M.B.A. because of declined to comment on the the school,” Mr. Cameron said.

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
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Sym Hi/Lo Chg Stock
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Allergan AGN 169.64 4.1 FidelityMomFactor FDMO 30.68 -0.2 iShMSCIGermanyETF EWG 33.44 0.8 iShRussell1000Gwth IWF 130.54 -0.1 iShNorthAmerTech IGM 168.02 -0.1 NationRiskBaseIntl RBIN 25.67 0.1 PwrShS&PEM Mom EEMO 21.38 0.8
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE AmericanAssets AAT 36.79 -0.1 FT DJ Internet FDN 108.22 -0.1 iShMSCIGlblAgriPrd VEGI 28.97 0.3 iShRussell1000ETF IWB 143.90 0.1 iShDowJonesUS IYY 129.53 0.1 NatixisSeeyondIntl MVIN 46.09 0.3 PwrShRussMCGrw PXMG 40.31 -0.6
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in AmericanRenal ARA 11.39 -5.8 FT FinlsAlpDx FXO 30.52 -0.1 iShMSCIIrelandCap EIRL 46.85 0.1 iShRussell2000Gwth IWO 183.06 -0.8 iShRussellMCGrowth IWP 117.00 -0.3 OShFTSEAsiaPacQlty OASI 30.00 2.5 PwrShRussTop200 EQWL 51.10 0.2
the latest session. % CHG-Daily percentage change from the previous trading session. BlueApron APRN 4.61 -2.1 FT GlbEngg FLM 58.47 0.4 iShMSCIJapanETF EWJ 59.10 0.6 iShRussell3000ETF IWV 153.26 0.1 HancockDevIntl JHMD 30.18 0.3 OShFTSEAsiaPacQlty OAPH 32.54 5.0 PwrShRussTop200G PXLG 44.51 -0.1
Build-A-Bear BBW 7.65 -1.3 FTHorizonMgdVolDev HDMV 33.85 0.8 iShMSCIJapanSC SCJ 77.26 0.4 iShRussellTop200Gr IWY 70.93 ... HancockMC JHMM 33.28 ... OppGlbESGRevenue ESGF 30.71 0.3 PwrShS&P500HiBeta SPHB 41.69 ...
Celestica CLS 9.79 0.5 FT MatAlpDX FXZ 42.41 0.4 iShMSCIKLD400Soc DSI 95.68 0.2 iShRussellTop200 IWL 59.44 0.3 JPMDivRetEurCur JPEH 29.23 0.1 PIMCO DynMultEM MFEM 25.54 0.4 PwrShS&P500Mom SPMO 33.32 -0.1
Wednesday, November 1, 2017 CIR 42.74 -2.7
CircorIntl FT TechAlphaDEX FXL 51.51 -0.6 iShMSCIKokusaiETF TOK 63.74 0.1 iShS&P100 OEF 114.58 0.3 JPMDivReturnEurope JPEU 61.58 -0.2 PIMCO DynMultIn MFDX 26.32 0.6 PwrShS&P400LowVol XMLV 45.19 -0.5
52-Wk % 52-Wk % 52-Wk % DeutscheMuniIncmTr KTF 11.83 -0.1 FT USEquityOpp FPX 66.18 0.1 iShMSCISingapore EWS 25.78 0.7 iShS&PMC400Growth IJK 210.48 -0.3 JPM DivRetGlEq JPGE 61.60 0.5 PwrShDevEuroPac FXEP 28.83 1.4 ProShHdgReplic HDG 45.30 0.2
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Dick's DKS 23.88 -0.3 FlexGlbUpstmNatRsc GUNR 32.13 0.9 iShMSCISouthKorea EWY 76.46 2.0 iShS&P500Growth IVW 148.75 ... JPM DivRetIntl JPIH 30.26 0.6 PwrShDynBldg&Con PKB 33.39 -0.1 ProShrUlBscMtls UYM 71.73 1.2
EastmanKodak KODK 5.05 -3.7 FlexShMDevMktxUS TLTD 68.30 0.3 iShMSCITaiwanCap EWT 38.26 -0.2 iShGlobalTechETF IXN 154.68 0.4 JPM DivRetIntlEq JPIN 59.84 0.5 PwrShDynSemicon PSI 54.42 -2.0 ProShrUltraDow30 DDM 118.92 0.5
FidelityNatlFin FNF 38.04 1.0 PerkinElmer PKI 73.05 -0.1
EtnVncFR2022 EFL 9.79 -0.5
NYSE highs - 205 FirstAmerFin
FT EnhEquity
FAF
FFA
55.00
15.60
0.2
0.2
PolyOne
ProPetro
POL
PUMP
46.54
16.04
0.5
3.3
EllingtonFin EFC 15.10 0.4
FlexShEM FactTilt TLTE
FrankIntlOpps FLIO
58.42
29.62
0.4
0.4
iShMSCIUSAESGSelct SUSA 108.37 ... iShGlobalConsDiscr RXI
iShMSCIWorldETF URTH 86.25 ... iShGlobalMaterials MXI
104.82
68.49
0.2
0.6
KnowldgLdrDevWrld KLDW
KraneBoseraChinaA KBA
32.82
34.57
...
0.8
PwrShDynLC Grwth PWB
PwrShAPac xJapan PAF
40.55
59.29
-0.3
1.7
ProShUltMSCIEAFE EFO
ProShrUltraJapan EZJ
129.14
126.06
0.5
1.4
AAR AIR 41.94 5.6 EndeavourSilver EXK 1.94 -4.8 GlbXFertilizersPot SOIL 10.46 1.2 iShMornLCGrowth JKE 152.09 0.1 iShGloblIndustrial EXI 90.86 ... MeidellTactical MATH 32.73 -0.6 PwrShDevMkt xUS PXF 45.13 0.4 ProShrUMdCp400 MVV 115.94 -0.5
GTT Comm GTT 36.60 -0.4 PublicServiceEnt PEG 50.19 0.6
ABB ABB 26.48 0.4 EnvisionHlthcr EVHC 26.56 -34.2 GlbX GuruIndex GURU 28.82 -0.1
GabelliMultPfdE GGTpE 25.30 0.5 PulteGroup PHM 30.62 0.6 iShMornMCGrowth JKH 196.13 -0.2 iShS&PMC400Value IJJ 155.25 -0.1 NationwideMaxDivUS MXDU 25.15 0.5 PwrShIndia PIN 26.00 1.2 Continued on Page B11
AberdeenJapanEqu JEQ 9.23 0.4 FS Investment FSIC 7.75 ... GlbXLithium&Batt LIT 40.10 1.7
Gallagher AJG 64.05 0.4 PutnmHiInco PCF 9.10 1.1
AdamsDivEquityFd ADX 15.70 0.1 FivePoint FPH 12.61 -0.3 GlbXSciBetaEurope SCID 28.64 ...
Generac GNRC 53.78 -3.4 QTS Realty QTS 59.08 1.2
Albemarle ALB 142.42 1.0 FreshDelMonte FDP 43.02 -1.1 GlbXSciBetaJapan SCIJ 32.04 1.5
GlobalPayments GPN 104.47 -1.3 QuakerChemical KWR 158.15 0.1

Borrowing Benchmarks | WSJ.com/bonds

AlexandriaRealEst ARE 125.72 1.0 GeneralElec GE 19.96 -0.7 GlbXSciBetaUS SCIU 30.23 0.1
GoDaddy GDDY 46.95 0.3 QuintilesIMS Q 109.00 0.3
Alibaba BABA 188.88 0.6 Intrexon XON 15.71 -2.8 GSActiveBetaJapan GSJY 33.10 0.9
GraceWR GRA 77.37 0.1 RH RH 92.18 2.0
AlleghenyTechs ATI 26.30 -0.2 KKRIncomeOppsRt KIOr 0.28 -7.1 GSActiveBetaUSLC GSLC 51.44 ...
GranitePointWi GPMTw 18.81 1.4 RPC RES 25.21 2.6
Allete ALE 80.00 -1.3 MSG Networks MSGN 16.95 -2.0 GSHedgeIndVIP GVIP 52.84 ...
GraphicPkg GPK 15.85 2.2 Rayonier RYN 30.22 0.3
AmericanExpress AXP 96.57 0.3 NOW DNOW 10.65 -10.9 GuggS&P500EWMat RTM 108.82 0.2
Andeavor ANDV
ApolloGlobalMgmt APO
109.27
33.37
2.8
0.2
Greenbrier
GrubHub
HFF
GBX
GRUB
HF
52.75
61.37
44.41
-1.8
-0.3
-0.1
RockwellCollins COL
Rogers ROG
RoyalBkScotland RBS
136.04
154.00
7.64
0.2
-0.1
0.3
NielsenHoldings NLSN
NordicAmerTankers NAT
36.07 -2.5
4.23 -1.6
GuggS&P500EWTech RYT
GuggS&P500PureGr RPG
143.12
104.00
-0.3
-0.3
Money Rates November 1, 2017
Aramark ARMK 44.12 -1.0 Owens&Minor OMI 20.03 -14.7 GuggS&P400PrGrwth RFG 150.56 -0.6
Haemonetic HAE 47.98 -1.9 RoyceValue RVT 16.07 -0.3
AshlandGlobal ASH 69.33 1.0 HalyardHealth HYH 50.99 7.3 SAP SAP 116.90 1.8
PQ Group
PartyCity
PQG
PRTY
15.78 0.5
10.75 -1.3
GuggS&P400PureVal RFV 65.82 ... Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
AsiaPacificFund APB 14.59 1.8 GuggInsider NFO 60.83 -0.2
Atento ATTO 12.90 2.0
Harris
HawaiianElec
HRS
HE
141.97
36.55
-1.6
-0.9
SCE II Pfd
SabineRoyalty SBR
SCEpG 25.89
42.80
-0.2
0.8
PenneyJC JCP 2.63 -5.0 GuggIntlMltAst HGI 17.32 0.6 guide to general levels but don’t always represent actual transactions.
AveryDennison AVY 107.41 0.8 PitneyBowes PBI 11.20 -17.0 GuggGlbTimber CUT 31.50 0.5 Week —52-WEEK— Week —52-WEEK—
HiltonGrandVac HGV 41.38 0.2 Salesforce.com CRM 103.92 -0.4 Inflation
PPlus CZN-1 PIY 23.36 -3.8
BB&T BBT 49.91 0.6 Hilton HLT 73.08 0.2 SantanderConUSA SC 17.00 1.1 RR Donnelley RRD 8.55 -4.1
GuggMC Core CZA 65.02 0.1 Latest ago High Low Latest ago High Low
BP Midstream BPMP 18.63 2.3 HollyFrontier HFC 39.77 7.3 SeabridgeGold SA 13.70 -3.3 GuggS&P500Top50 XLG 184.08 0.1 Sept. index Chg From (%)
SafetyIncome SAFE 17.81 0.1
BP BP 41.20 0.2 DR Horton DHI 44.92 1.2 SemicondctrMfg SMI 8.29 8.4 Scana SCG 42.57 -1.2
GuggS&PGlblWtr CGW 35.31 -0.3
level Aug. '17 Sept. '16 Treasury bill auction Six month 1.57979 1.56219 1.57979 1.24267
Ball BLL 43.24 -0.5 HUBS 87.85 -0.7 GuggS&PMC400EW EWMC 62.41 -0.2
BeazerHomes BZH 21.46 1.7
HubSpot SiteOneLandscape SITE 64.23 -0.1 StandardMotor SMP 42.87 -1.6 HullTacticalUS HTUS 28.32 0.4
One year 1.85594 1.84456 1.85594 1.55622
Huntsman HUN 32.59 -0.6 Square SQ 37.52 -1.9 TejonRanch TRC 18.59 -0.7 4 weeks 1.020 1.005 1.300 0.240
BlkRkCapEnIncoFd CII 16.06 0.3 HyattHotels H 63.58 0.3 STMicroelec STM 24.00 0.9 IQ50%HdgFTSEIntl HFXI 21.68 0.7 U.S. consumer price index Euro Libor
BlkRkRscs&Comm BCX 9.05 1.1 IRSA IRS 29.90 -0.5 Stoneridge SRI 22.95 -2.4
3D Systems DDD 8.70 -23.7 IQ50%HdgFTSEJapan HFXJ 22.28 1.3 13 weeks 1.130 1.105 1.180 0.350
TimeInc. TIME 11.10 -3.4 All items 246.819 0.53 2.2
BlkRkSci&Tech BST 26.83 -0.1 IDEX IEX 129.40 -0.1 Systemax SYX 32.33 11.0 TriangleCap TCAP 12.18 -0.5
IQ HedMacrTrac MCRO 26.50 0.1
26 weeks 1.260 1.245 1.260 0.500 One month -0.399 -0.405 -0.376 -0.405
Box BOX 22.27 -0.6 InspireGlblHope BLES 27.78 -0.7
Ingevity NGVT 72.43 1.6 TE Connectivity TEL 93.11 1.0 UnderArmour C UA 10.91 -2.1 Inspire100ETF BIBL 25.13 -0.1
Core 252.941 0.19 1.7 Three month -0.378 -0.381 -0.322 -0.381
BroadridgeFinl BR 86.72 0.6 Insperity NSP 99.10 3.6 TPG Pace TPGH 9.89 0.1
Brown&Brown BRO 50.44 0.5 InstalledBldg IBP 70.25 -0.5 TRI Pointe TPH 17.84 0.1
UnderArmour A UAA 11.98 -3.8 iPathBloomNickelTR JJN 15.62 3.2 Secondary market Six month -0.322 -0.321 -0.212 -0.322
CF Industries CF 38.50 0.2 Instructure INST 36.00 -0.9 TableauSoftware DATA 81.74 -0.4
VoyaPrimeRate PPR 5.12 -0.2 iPath MSCI India INP 86.53 1.2 International rates One year -0.233 -0.232 -0.075 -0.233
CNA Fin CNA 55.22 0.6 iPathPBLivestock LSTK 47.53 0.7 Fannie Mae
CNH Indl CNHI 13.37 2.9
InterXion
JELD-WEN
INXN
JELD
56.57
37.32
4.4
-0.6
TaiwanFund
TeledyneTech TDY
TWN 21.64
171.00
0.8
-0.1
NYSE Arca highs - 310 iPathPBNickel NINI 21.15 4.7 Week 52-Week
30-year mortgage yields Euro interbank offered rate (Euribor)
CTS CTS 27.55 -0.4 JapanSmlCap JOF 13.09 1.1 ThorIndustries THO 138.07 0.4 ALPS EqSecWgh EQL 67.52 0.2 iShAggrAllocation AOA 54.76 0.3 Latest ago High Low
CVR Energy CVI 30.15 9.6 KAR Auction KAR 49.04 0.1 Toll Bros TOL 46.63 1.3 ALPSIntlDivDogs IDOG 28.62 0.4 iShConsAllocat AOK 35.00 0.1
30 days 3.490 3.540 3.865 3.031 One month -0.371 -0.373 -0.366 -0.375
CVR Refining CVRR 12.80 10.6 iShGrwthAllocation AOR 45.54 0.1
Kemper KMPR 65.45 0.3 Total TOT 56.50 0.9 ARKIndlInnovation ARKQ 33.69 -1.3 Prime rates Three month -0.329 -0.331 -0.311 -0.332
Cabot CBT 64.21 3.8 Kennametal KMT 43.99 -0.7 TotalSystem TSS 72.62 0.1 ARKInnovationETF ARKK 35.82 -1.5 iShCoreMSCIEmgMk IEMG 56.46 0.6 60 days 3.517 3.573 3.899 3.063
CabotOil COG 28.10 0.8 KeysightTechs KEYS 44.94 -0.2 ARKWebx.0ETF ARKW 43.64 -0.5 iShMSCIIntlDev IDEV 57.64 -0.1 U.S. 4.25 4.25 4.25 3.50 Six month -0.276 -0.274 -0.210 -0.276
TowerIntl TOWR 31.85 4.1
CadenceBancorp CADE 24.94 0.7 KoreaFund KF 44.55 1.8 ToyotaMotor TM 124.92 0.3 AdvShNewTech FNG 22.93 -0.5 iShCoreMSCIPacific IPAC 59.07 0.8
Other short-term rates One year -0.187 -0.183 -0.069 -0.187
CAE CAE 18.17 2.1 Kraton KRA 50.14 0.6 AlphaCloneAltAlpha ALFA 42.36 0.2 iShModAllocation AOM 38.37 0.2 Canada 3.20 3.20 3.20 2.70
TrancntlRlty TCI 30.17 1.7
Calpine CPN 15.10 0.4 Kyocera KYO 69.40 3.9 TritonIntl TRTN 41.29 -0.7 CSOPFTSEChinaA50 AFTY 18.03 0.2 iShCoreS&P500ETF IVV 260.19 0.2 Japan 1.475 1.475 1.475 1.475 Week 52-Week Value 52-Week
CanNaturalRes CNQ 35.29 0.3 LambWeston LW 51.97 0.7 TurkcellIletism TKC 9.79 4.0 ClearSharesOCIO OCIO 26.21 0.1 iShCoreS&PMdCp IJH 184.12 -0.2 Latest Traded High Low
37.89 -0.2 iShS&PTotlUSStkMkt ITOT 59.23 0.1
Latest ago high low
Canon CAJ LazardGlblFd LGI 17.22 0.4 TysonFoods TSN 73.66 0.5 ColumbiaIndiaCnsmr INCO 46.21 0.6
CapitalOnePfdC COFpC 26.79 ... LiveNationEnt LYV 44.01 -3.0 ColumbiaIndiaInfr INXX 15.80 0.9 iShCurrHdgIntlHY HHYX 27.99 1.0 Policy Rates DTCC GCF Repo Index
USG USG 35.02 0.3
CarpenterTech CRS 51.88 -1.4 Loews L 49.75 0.1 Visa V 111.40 1.0 ColumbiaIndiaSC SCIN 22.00 0.6 iShCurrHdgNikk400 HJPX 30.19 1.2
Euro zone 0.00 0.00 0.00 0.00 Call money
CenturyComm CCS 29.10 1.6 MDC Holdings MDC 37.45 0.7 ValeroEnergy VLO 80.93 2.3 ColumbiaSustIntl ESGN 30.87 ... iShCurHdgMSCIUS HAWX 27.10 0.6 Treasury 1.182 31.490 1.366 0.244
ChathamLodging CLDT 22.60 2.3 MGIC Investment MTG 14.50 -1.5 Valhi VHI 4.49 -2.5 CnsmrDiscSelSector XLY 92.59 ... iShCurrHdgMSCICda HEWC 26.55 0.2 Switzerland 0.50 0.50 0.50 0.50 3.00 3.00 3.00 2.25 MBS 1.167 109.650 1.506 0.257
ChinaFund CHN 21.31 0.5 iShCurHdgMSCIEAFE HSCZ 30.88 0.5 0.25 0.25 0.25
MI Homes MHO 34.00 1.0 Vedanta VEDL 21.63 3.0 CSAxela3xLgBrent UBRT 137.62 -1.3 Britain 0.25
ChinaLifeIns LFC 17.85 5.7 MadisonSquGarden MSG 229.36 1.4 VersumMaterials VSM 42.50 -2.2 CS FI LC Grwth FLGE 212.99 -0.2 iShCurHdMSCIEurozn HEZU 31.15 0.5 Commercial paper (AA financial) Open Implied
ChoiceHotels CHH 70.60 ... Manitowoc MTW 10.34 5.1 Vishay VSH 22.55 -2.7 DiamondHillVal DHVW 30.85 ... iShCurrHdMSCIJapan HEWJ 33.20 1.0 Australia 1.50 1.50 1.50 1.50 Settle Change Interest Rate
CitigroupPfdAA CpP 28.71 1.0 MarathonPetrol MPC 61.90 1.9 VishayPrecision VPG 24.90 -0.2 DirexAllCapIns KNOW 42.00 0.7 iShCurHdgMSCISwitz HEWL 27.60 1.0 90 days 1.14 1.27 1.31 0.62
CLSelPrTechGrFd STK 23.66 -1.1 Materion MTRN 52.10 -1.7 125.00 -1.7 DirexDevMktBl3 DZK 80.33 0.7 iShUSBasicMaterial IYM 100.65 0.8 Overnight repurchase
ConEd ED 86.53 -0.3 Maximus MMS 66.96 -0.8
WEX WEX
DirexESTOXX50Bl3x EUXL 31.03 0.4 iShUSFinlServices IYG 124.80 0.2 DTCC GCF Repo Index Futures
WNS WNS 38.73 1.8
U.S. 1.19 1.15 1.38 0.15 Libor
ConstBrands A STZ 219.56 -1.4 McDonalds MCD 167.99 -0.3 WellCareHealth WCG 203.97 1.6 DirexFinlBull3 FAS 61.52 0.4 iShUS Finls IYF 115.55 0.2 Treasury Nov 98.845 -0.005 8053 1.155
Cummins CMI 181.79 -2.3 MethodeElec MEI 47.40 -0.5 DirexHmbldrBull3 NAIL 74.50 1.7 iShU.S.Technology IYW 162.50 -0.1 One month 1.24333 1.23999 1.24333 0.53200
CurtissWright CW 119.00 -0.3 MettlerToledo MTD 694.48 0.9
WestAllianceBcp WAL 57.04 0.4
DirexJapanBl3 JPNL 73.70 1.3 iShEdgeMSCIIntlMom IMTM 30.93 0.1
Treasury Dec 98.715 unch. 1991 1.285
Dana DAN 31.29 1.3 MicroFocus MFGP 35.55 1.3
WestRock
Weyerhaeuser WY
WRK 61.60
36.30
...
-0.3 DirexIndiaBull3 INDL 99.16 3.3 iShEdgeMSCIIntVal IVLU 26.12 0.4 U.S. government rates Three month 1.38483 1.37446 1.38483 0.87567 Treasury Jan 98.620 0.005 450 1.380
Danaher DHR 93.13 0.7 ModineMfg MOD 22.88 8.3 WilliamLyonHomes WLH 29.94 5.5 DirexMcBull3 MIDU 43.65 -1.0 iShEdgeMSCIMinJapn JPMV 67.22 0.8
DaqoNewEnergy DQ 40.39 6.7 MonmouthRealEst MNR 17.34 0.4 DirexS&P500Bl3 SPXL 41.50 0.5 iShEdgeMSCIMultif ACWF 30.17 0.4 Discount
Winnebago WGO 49.85 1.0
Deere DE 134.73 1.0 NewGermanyFund GF 19.19 1.4 WW Ent WWE 26.87 -0.1 DirexS&P500Bull2X SPUU 46.55 0.5 iShEdgeMSCIMultInt INTF 28.79 0.6 1.75 1.75 1.75 1.00
Domtar UFS 48.07 0.1 NewJerseyRscs NJR 44.80 -0.8 XPO Logistics XPO 70.82 0.5 DirexSemiBl3 SOXL 151.80 -0.9 iShEdgeMSCIMlIntSC ISCF 31.79 0.5 Notes on data:
EMCOR EME 81.60 ... NexaResources NEXA 18.65 -0.3 Yelp YELP 48.17 -1.5 DirexKRBull3 KORU 64.82 6.2 iShEdgeMSCIMultUSA LRGF 30.99 0.2 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
Eaton ETN 82.34 1.9 NexPointCreditFd NHF 23.94 1.0 ZTO Express ZTO 17.18 5.8 DirexTechBull3 TECL 109.38 -0.1 iShEdgeMSCIUSASC SMLF 39.33 -0.6 Federal funds
EC 11.43 2.7 iShGlobal100 IOO 91.61 0.2
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
Ecopetrol NortelInversora NTL 43.39 5.5 Direx iBillionaire IBLN 31.93 -0.2
Effective rate 1.1700 1.1700 1.2000 0.3500 widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
EmployersHldgs EIG
EmpresaDisCom EDN
48.30
45.50
0.2
3.7
NuvDow30Dyn
Olin
DIAX
OLN
17.80
37.52
0.2
-0.9
NYSE lows - 46 ETFMG PrimeMob IPAY
ETFMG VideoGame GAMR
34.13
46.23
-0.4
...
iShJPX-Nikkei400 JPXN
iShACWILowCarbon CRBN
64.18
115.24
0.6
0.1 High 1.3125 1.3125 1.3125 0.5625 Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
EnelAmericas ENIA 11.10 0.4 OnAssignment ASGN 61.89 -1.7 AK Steel AKS 4.33 -5.2 ETRACSMnthly2xLev SPLX 50.33 1.2 iShMSCIAllPeruCap EPU 42.21 0.5 billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
EnPro NPO 84.98 -0.5 Oppenheimer A OPY 22.10 0.2 AT&T T 33.29 -0.3 ETRACSMnly2xLevISE HOML 51.69 2.3 iShMSCI EAFE EFA 70.00 0.1
Low 1.0300 1.0000 1.1600 0.2500 DTCC GCF Repo Index are traded on NYSE Liffe US.
EsteeLauder EL 124.80 9.2 OrmatTech ORA 65.77 -1.1 AdvanceAuto AAP 80.68 -1.2 FidelityMSCICnDisc FDIS 36.70 0.1 iShMSCIEmgMarkets EEM 46.85 0.5 Bid 1.1600 1.1600 1.1700 0.3000 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Ferrari RACE 121.14 0.3 OwensCorning OC 83.10 -0.5 AlaskaAir ALK 64.71 -0.4 FidelityMSCIIT FTEC 49.82 -0.1 iShMSCIEmgMktSC EEMS 51.57 0.6
Ferro FOE 24.07 0.2 Penumbra PEN 101.20 -0.9 AllerganPfdA AGNpA 621.22 4.0 FidelityMSCIMatls FMAT 34.57 0.6 iShMSCIFranceETF EWQ 31.46 -0.1
Offer 1.1700 1.1700 1.1900 0.3200 General Electric Capital Corp.; Tullett Prebon Information, Ltd.

Dividend Changes
Dividend announcements from November 1.
Amount Payable / Amount Payable / Amount Payable / Amount Payable /
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
Increased iSh 0-5Y Hi Yd Corp Bd SHYG 5.4 .21373 M Nov07 /Nov02 iShares 1-3Y Credit Bond CSJ 1.7 .1481 M Nov07 /Nov02 SPDR Dorsey Wright Fixed DWFI 2.4 .05116 M Nov09 /Nov02
iSh 10-20Y Treasury Bond TLH 1.9 .21902 M Nov07 /Nov02 iShares 1-3Y Treasury Bd SHY 1.1 .0784 M Nov07 /Nov02 SPDR DoubleLine EM Fixed EMTL 2.6 .10893 M Nov09 /Nov02
American Assets Trust AAT 2.8 .27 /.26 Q Dec21 /Dec07
iSh 7-10Y Treasury Bond IEF 1.9 .1643 M Nov07 /Nov02 iShares 20+Y Treasury Bd TLT 2.5 .2631 M Nov07 /Nov02 SPDR DoubleLine Sh Dur TR STOT 2.0 .08061 M Nov09 /Nov02
BOK Financial BOKF 2.1 .45 /.44 Q Nov27 /Nov13
iSh AAA-A Rated Corp Bd QLTA 2.7 .1175 M Nov07 /Nov02 iShares 3-7Y Treasury Bd IEI 1.6 .1654 M Nov07 /Nov02 SPDR DoubleLine TR Tact TOTL 2.7 .11127 M Nov09 /Nov02
Carlyle Group CG 10.1 .56 /.42 Q Nov16 /Nov10
iSh California Muni Bd CMF 2.1 .10227 M Nov07 /Nov02 iShares Agency Bond ETF AGZ 1.6 .15568 M Nov07 /Nov02 SPDR ICE BofAML Cross CJNK 4.1 .09106 M Nov09 /Nov02
Eaton Vance Global Income EVGBC 1.9 .1616 /.1561 M Nov06 /Nov02
iSh Convertible Bd ICVT 2.0 .09114 M Nov07 /Nov02 iShares CMBS ETF CMBS 2.7 .11504 M Nov07 /Nov02 SPDR Nuv S&P Hi Yd Mun Bd HYMB 3.8 .17628 M Nov09 /Nov02
Eaton Vance TABS 5-to-15Y EVLMC 0.5 .0395 /.035 M Nov06 /Nov02
iSh Core 5-10 Year USD Bd IMTB 3.1 .1282 M Nov07 /Nov02 iShares Core 10+Y USD Bd ILTB 4.3 .22921 M Nov07 /Nov02 SPDR Nuveen Muni Bd TFI 2.2 .09041 M Nov09 /Nov02
KAR Auction Services KAR 3.0 .35 /.32 Q Jan05 /Dec20
iSh Core Total USD Bd Mkt IUSB 2.6 .1099 M Nov07 /Nov02 iShares Core 1-5Y USD Bd ISTB 2.2 .0928 M Nov07 /Nov02 SPDR Nuveen ST Muni Bd SHM 1.0 .04085 M Nov09 /Nov02
MKS Instruments MKSI 0.7 .18 /.175 Q Dec08 /Nov27
iSh Core US Aggregate Bd AGG 2.5 .228 M Nov07 /Nov02 iShares Floating Rate Bd FLOT 1.7 .06996 M Nov07 /Nov02 SPDR Portfolio Agg Bd SPAB 2.7 .06457 M Nov09 /Nov02
NexPoint Residential Tr NXRT 4.0 .25 /.22 Q Dec29 /Dec15
iSh Edge HY Defensive Bd HYDB 5.5 .23291 M Nov07 /Nov02 iShares GNMA Bond ETF GNMA 2.6 .1073 M Nov07 /Nov02 SPDR Portfolio LT Corp Bd SPLB 4.1 .09686 M Nov09 /Nov02
Oshkosh OSK 1.1 .24 /.21 Q Nov30 /Nov16
iSh Edge Inv Grade Enh Bd IGEB 3.3 .13879 M Nov07 /Nov02 iShares Govt/Credit Bond GBF 2.2 .21094 M Nov07 /Nov02 SPDR Portfolio LT Trea SPTL 2.6 .07785 M Nov09 /Nov02
Pacific Coast Oil Trust ROYT 9.2 .0126 /.00117 M Nov27 /Nov10
iSh Em Mkts Corp Bd Fd CEMB 4.0 .17123 M Nov07 /Nov02 iShares iBoxx $ HY Cp Bd HYG 5.0 .3656 M Nov07 /Nov02 SPDR Portfolio ST Corp Bd SPSB 1.9 .04918 M Nov09 /Nov02
STRATS Sers 2006-1 P&G GJR 2.2 .0385 /.0361 M Nov15 /Nov14
iSh ESG 1-5Y USD Cp Bd SUSB 2.1 .0433 M Nov07 /Nov02 iShares JPM USD Emg Bd EMB 4.6 .4451 M Nov07 /Nov02 SPDR Ptf Interm Corp Bd SPIB 2.7 .07716 M Nov09 /Nov02
Utah Medical Products UTMD 1.4 .27 /.265 Q Jan03 /Dec15
iSh ESG USD Corp Bd SUSC 2.9 .0608 M Nov07 /Nov02 iShares MBS ETF MBB 2.4 .2144 M Nov07 /Nov02 SPDR Shrt Term Trea SPTS 1.3 .03137 M Nov09 /Nov02
Reduced iSh Fallen Angels USD Bd FALN 5.6 .1302 M Nov07 /Nov02 iShares TIPS Bond ETF TIP 2.3 .21769 M Nov07 /Nov02 SPDR SSgA Ultra Shrt ULST 1.4 .04815 M Nov09 /Nov02
Mosaic MOS 0.4 .025 /.15 Q Dec21 /Dec07 iSh Glbl Hi Corp Bd Fd GHYG 4.0 .16977 M Nov07 /Nov02 iShrs Emg Mkt Hi Yd Bd Fd EMHY 5.7 .24022 M Nov07 /Nov02 VanEck AMT-Fr Interm Muni ITM 2.2 .045 M Nov07 /Nov02
Sturm Ruger RGR 1.6 .21 /.23 Q Nov30 /Nov15 iSh iBds Mar2018 Cp xFin IBCC 1.2 .02385 M Nov07 /Nov02 Janus Henderson Short Dur VNLA 2.6 .1088 M Nov07 /Nov02 VanEck AMT-Fr Lg Mun MLN 2.9 .0489 M Nov07 /Nov02
iSh iBds Mar2020 Cp xFin IBCD 1.8 .03719 M Nov07 /Nov02 MV EM Inv Grade + BB IGEM 3.5 .0725 M Nov07 /Nov02 VanEck AMT-Fr Sh Muni SMB 1.3 .0183 M Nov07 /Nov02
Initial iSh iBds Mar2023 Cp xFin IBCE 2.7 .05459 M Nov07 /Nov02 Neuberger Berman HYS NHS 7.2 .0725 M Nov30 /Nov15 VanEck Fallen Angel HY Bd ANGL 5.0 .1268 M Nov07 /Nov02
Carlyle Gp 5.875% Pfd. A TCGP 5.9 .37535 Q Dec15 /Dec01 iSh iBonds Dec 2017 Corp IBDJ 1.1 .02229 M Nov07 /Nov02 Neubrgr Brm Rl Est Sec Fd NRO 9.8 .045 M Nov30 /Nov15 VanEck Pre-Refunded Muni PRB 1.2 .0252 M Nov07 /Nov02
CurrencyShares SGD Trust FXSG .0048 Nov08 /Nov02 iSh iBonds Dec 2018 Corp IBDH 1.5 .03223 M Nov07 /Nov02 NuShares Enh Yd 1-5 Y NUSA 2.9 .0595 M Nov06 /Nov02 VanEck Vctr JPM EM LC Bd EMLC 6.0 .0921 M Nov07 /Nov02
iSh iBonds Dec 2027 Corp IBDS .10539 Nov07 /Nov02 iSh iBonds Dec 2019 Corp IBDK 1.8 .03836 M Nov07 /Nov02 NuShares Enh Yield US Bd NUAG 3.1 .0643 M Nov06 /Nov02 VanEck Vctr Pfd Secs xFin PFXF 4.6 .0771 M Nov07 /Nov02
iShares 10+Y Invest Cp Bd LLQD .25731 Nov07 /Nov02 iSh iBonds Dec 2020 Corp IBDL 2.1 .04533 M Nov07 /Nov02 PIMCO 0-5 Hi Yd Corp HYS 4.5 .38 M Nov06 /Nov02 VanEck Vectors CEF Muni XMPT 4.6 .1023 M Nov07 /Nov02
iShares 5-10Y Invst Cp Bd MLQD .19054 Nov07 /Nov02 iSh iBonds Dec 2021 Corp IBDM 2.4 .05077 M Nov07 /Nov02 PIMCO 1-3 US Trea Idx TUZ 1.1 .047 M Nov06 /Nov02 VanEck Vectors China Bond CBON 3.3 .0623 M Nov07 /Nov02
NuShares ESG US Agg Bd NUBD .0365 Nov06 /Nov02 iSh iBonds Dec 2021 Muni IBMJ 1.2 .02531 M Nov07 /Nov02 PIMCO 1-5 Yr US TIPS Idx STPZ 1.1 .05 M Nov06 /Nov02 VanEck Vectors EM Agg Bd EMAG 3.9 .0704 M Nov07 /Nov02
iSh iBonds Dec 2022 Corp IBDN 2.7 .05655 M Nov07 /Nov02 PIMCO 15+ Yr US TIPS Idx LTPZ 2.9 .16 M Nov06 /Nov02 VanEck Vectors EM HY Bond HYEM 5.8 .1205 M Nov07 /Nov02
Funds and investment companies iSh iBonds Dec 2022 Muni IBMK 1.4 .02962 M Nov07 /Nov02 PIMCO Active Bond ETF BOND 4.1 .275 M Nov06 /Nov02 VanEck Vectors Green Bd GRNB 1.1 .0251 M Nov07 /Nov02
Calamos CHI 9.8 .095 M Nov15 /Nov10 iSh iBonds Dec 2023 Corp IBDO 2.9 .06088 M Nov07 /Nov02 PIMCO Broad U.S. TIPS Idx TIPZ 2.3 .11 M Nov06 /Nov02 VanEck Vectors HY Muni HYD 4.4 .1127 M Nov07 /Nov02
Calamos Conv Hi Inco Fd CHY 10.0 .10 M Nov15 /Nov10 iSh iBonds Dec 2023 Muni IBML 1.3 .0272 M Nov07 /Nov02 PIMCO Enh Low Duration LDUR 2.1 .175 M Nov06 /Nov02 VanEck Vectors Intl HY Bd IHY 4.3 .0921 M Nov07 /Nov02
Calamos Dyn Conv & Incm CCD 9.7 .167 M Nov15 /Nov10 iSh iBonds Dec 2024 Corp IBDP 3.2 .06672 M Nov07 /Nov02 PIMCO Enh Shrt Maturity MINT 1.7 .143 M Nov06 /Nov02 VanEck Vectors Invt Gr FR FLTR 1.9 .0397 M Nov07 /Nov02
Calamos Glbl Dyn Inc CHW 9.2 .07 M Nov15 /Nov10 iSh iBonds Dec 2025 Corp IBDQ 3.3 .06919 M Nov07 /Nov02 PIMCO Intermediate Mun Bd MUNI 2.3 .104 M Nov06 /Nov02 VanEck Vectors Sh HY Muni SHYD 3.2 .0653 M Nov07 /Nov02
Calamos Global Tot Ret Fd CGO 8.5 .10 M Nov15 /Nov10 iSh iBonds Dec 2026 Corp IBDR 3.2 .06654 M Nov07 /Nov02 PIMCO Inv Grade Corp Bd CORP 3.0 .268 M Nov06 /Nov02 Vangrd Intermed-Trm Cp Bd VCIT 3.2 .237 M Nov06 /Nov02
Calamos Strat Fd CSQ 8.0 .0825 M Nov15 /Nov10 iSh iBonds Mar 2018 Corp IBDB 1.3 .02834 M Nov07 /Nov02 PIMCO Short Term Mun Bd SMMU 1.4 .058 M Nov06 /Nov02 Vangrd Intrmd -Trm Gvt Bd VGIT 1.7 .09 M Nov06 /Nov02
CurrencyShares AUD Tr FXA 0.8 .05016 M Nov08 /Nov02 iSh iBonds Mar 2020 Corp IBDC 2.0 .0447 M Nov07 /Nov02 Principal EDGE Active YLD 4.3 .14888 M Nov06 /Nov02 Vanguard Emg Mkts Govt Bd VWOB 5.0 .335 M Nov06 /Nov02
CurrencyShs CDN Dollar Tr FXC 0.0 .00061 M Nov08 /Nov02 iSh iBonds Mar 2023 Corp IBDD 2.9 .06388 M Nov07 /Nov02 Principal Spectrum Pfd PREF 5.2 .43633 M Nov06 /Nov02 Vanguard Intermed-Term Bd BIV 2.6 .18603 M Nov06 /Nov02
DBX Emerging Markets Bd EMIH 4.1 .08685 M Nov07 /Nov02 iSh iBonds Sep 2018 Muni IBMG 0.8 .01616 M Nov07 /Nov02 ProSh Short USD Emg Bd EMSH 3.4 .21757 M Nov09 /Nov02 Vanguard Lg-Term Govt Bd VGLT 2.3 .15 M Nov06 /Nov02
DBX High Yield Corp Bd HYIH 5.2 .10061 M Nov07 /Nov02 iSh iBonds Sep 2019 Muni IBMH 1.0 .02114 M Nov07 /Nov02 ProShares HY-Interest Rt HYHG 5.8 .33083 M Nov09 /Nov02 Vanguard Long-Term Bd BLV 3.8 .29297 M Nov06 /Nov02
DBX Investment Grade Bd IGIH 3.0 .06106 M Nov07 /Nov02 iSh iBonds Sep 2020 Muni IBMI 1.1 .0239 M Nov07 /Nov02 ProShares Inv Grade Int IGHG 3.4 .21732 M Nov09 /Nov02 Vanguard Long-Trm Crp Bd VCLT 4.1 .32 M Nov06 /Nov02
Deutsche X Bar Intl Cp Bd IFIX 3.7 .15571 M Nov07 /Nov02 iSh iBoxx $ Invt Gr Cp Bd LQD 3.2 .32115 M Nov07 /Nov02 Schwab Intm US Trsr SCHR 1.7 .0749 M Nov07 /Nov02 Vanguard MBS VMBS 2.2 .097 M Nov06 /Nov02
Deutsche X Intl Trea Bd IGVT 0.2 .00686 M Nov07 /Nov02 iSh Interm Govt/Credit Bd GVI 1.9 .17531 M Nov07 /Nov02 Schwab Short Trm US Trsr SCHO 1.1 .0474 M Nov07 /Nov02 Vanguard Short Tm Govt Bd VGSH 1.2 .06 M Nov06 /Nov02
Flex Credit-Scored US Lg LKOR 3.9 .17565 M Nov07 /Nov02 iSh Intermediate Cred Bd CIU 2.5 .2316 M Nov07 /Nov02 Schwab U.S. TIPs SCHP 2.7 .1244 M Nov07 /Nov02 Vanguard Short-Term Bond BSV 1.7 .11447 M Nov06 /Nov02
Flex iBx 3Y Dur TIPS TDTT 2.2 .04409 M Nov07 /Nov02 iSh Intl Aggregate Bd IAGG 0.5 .02319 M Nov07 /Nov02 Schwab US Aggregate Bond SCHZ 2.4 .1033 M Nov07 /Nov02 Vanguard Shrt-Trm Crp Bnd VCSH 2.3 .153 M Nov06 /Nov02
FlexShares Discip Dur MBS MBSD 3.3 .06542 M Nov07 /Nov02 iSh Intl Preferred Stock IPFF 3.2 .04835 M Nov07 /Nov02 SPDR Blackstone Sr Loan SRLN 4.1 .16 M Nov09 /Nov02 Vanguard Total Bond Mkt BND 2.5 .17286 M Nov06 /Nov02
FlexShares iBoxx 5Y TIPS TDTF 2.8 .05793 M Nov07 /Nov02 iSh Liquidity Incm ICSH 1.5 .06467 M Nov07 /Nov02 SPDR Bloomberg 1-10Y TIPS TIPX 2.5 .04023 M Nov09 /Nov02 Vanguard Total Intl Bd BNDX 1.0 .048 M Nov06 /Nov02
FlexShares Ready Access RAVI 1.4 .08707 M Nov07 /Nov02 iSh Natl Muni Bd MUB 2.2 .20304 M Nov07 /Nov02 SPDR Bloomberg 1-3M TBill BIL 0.9 .03462 M Nov09 /Nov02 Voya Prime Rate Trust PPR 5.2 .022 M Nov22 /Nov10
FlexShs Credit-Scored US SKOR 2.5 .10866 M Nov07 /Nov02 iSh New York Muni Bd NYF 2.3 .10802 M Nov07 /Nov02 SPDR Bloomberg Conv Secs CWB 2.2 .09279 M Nov09 /Nov02 Xtrackers Muni Infra RVNU 2.5 .05654 M Nov07 /Nov02
Gl X MSCI SuperDivi EFAS 4.8 .0724 M Nov10 /Nov02 iSh Short Maturity Bd NEAR 1.6 .06694 M Nov07 /Nov02 SPDR Bloomberg EM Loc Bd EBND 4.3 .105 M Nov09 /Nov02 Xtrackers USD HY Corp Bd HYLB 4.9 .20622 M Nov07 /Nov02
Gl X SuperDiv EM SDEM 4.9 .0652 M Nov10 /Nov02 iSh Short Maturity Mun Bd MEAR 1.1 .0445 M Nov07 /Nov02 SPDR Bloomberg HY Bd JNK 5.5 .16977 M Nov09 /Nov02
Gl X SuperDivid Alt ALTY 7.1 .091 M Nov10 /Nov02 iSh Short Treasury Bd SHV 1.0 .0901 M Nov07 /Nov02 SPDR Bloomberg Int Tr Bd BWX 1.1 .02612 M Nov09 /Nov02 Foreign
Gl X SuperDividend REIT SRET 7.2 .0915 M Nov10 /Nov02 iSh Short-Tm Natl Muni Bd SUB 0.9 .08076 M Nov07 /Nov02 SPDR Bloomberg Interm Tr ITE 1.5 .07485 M Nov09 /Nov02 Ardagh Group Cl A ARD 2.6 .14 Q Nov30 /Nov16
Gl X SuperDividend US DIV 5.9 .1235 M Nov10 /Nov02 iSh Trea Floating Rate Bd TFLO 1.0 .04155 M Nov07 /Nov02 SPDR Bloomberg Intl Cp Bd IBND 0.9 .02476 M Nov09 /Nov02 BP ADR BP 5.9 .60 Q Dec21 /Nov10
Gl X SuperIncome Pfd SPFF 7.1 .0735 M Nov10 /Nov02 iSh U.S. Credit Bd CRED 3.1 .2854 M Nov07 /Nov02 SPDR Bloomberg Inv Grd FR FLRN 1.7 .04445 M Nov09 /Nov02 Compania de Minas ADR BVN 0.4 .03 SA Dec07 /Nov15
Gl X U.S. Preferred PFFD 5.7 .1178 M Nov10 /Nov02 iSh U.S. Treasury Bd GOVT 1.7 .03592 M Nov07 /Nov02 SPDR Bloomberg Mtg Bkd Bd MBG 3.1 .06872 M Nov09 /Nov02 No Amer Engy Ptnrs NOA 1.4 .01557 Q Jan05 /Nov30
Global X SuperDividend SDIV 6.7 .1205 M Nov10 /Nov02 iSh US Fixed Incm Bal FIBR 2.6 .21991 M Nov07 /Nov02 SPDR Bloomberg Scrd Cp Bd CBND 3.1 .0848 M Nov09 /Nov02 Santander Fin FR Sers 6 SANpB 4.2 .25278 Q Dec05 /Nov20
Goldman Sachs Acc Hi Yd GHYB 4.5 .18625 M Nov07 /Nov02 iShares $ HY xOil & Gas HYXE 5.7 .2469 M Nov07 /Nov02 SPDR Bloomberg ST HY Bd SJNK 5.5 .12782 M Nov09 /Nov02 Transalta Corp TAC 2.1 .03125 Q Jan01 /Dec01
Goldman Sachs Trea 0-1Y GBIL 1.1 .08792 M Nov07 /Nov02 iShares 0-5Y Inv Grd Cp SLQD 2.1 .0872 M Nov07 /Nov02 SPDR Bloomberg ST Int Tr BWZ 0.1 .00354 M Nov09 /Nov02
GS Access Inv Grade Cp Bd GIGB 3.0 .12366 M Nov07 /Nov02 iShares 0-5Y TIPS Bond STIP 1.6 .13295 M Nov07 /Nov02 SPDR Bloomberg TIPS IPE 3.5 .16375 M Nov09 /Nov02 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
IQ S&P Hi Yd Low Vol Bd HYLV 3.9 .08294 M Nov07 /Nov02 iShares 10+Y Credit Bond CLY 4.0 .20647 M Nov07 /Nov02 SPDR Citi Intl Gov Inf Bd WIP 3.8 .17572 M Nov09 /Nov02 S2:1: stock split and ratio; SO: spin-off.
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THE WALL STREET JOURNAL. Thursday, November 2, 2017 | B9

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23435.01 s 57.77, or 0.25% Trailing P/E ratio 21.20 19.65 2579.36 s 4.10, or 0.16% Trailing P/E ratio 24.16 24.31 6716.53 t 11.14, or 0.17% Trailing P/E ratio * 26.00 24.09
High, low, open and close for each P/E estimate * 19.54 17.19 High, low, open and close for each P/E estimate * 19.49 18.02 High, low, open and close for each P/E estimate * 21.55 19.35
trading day of the past three months. Dividend yield 2.19 2.62 trading day of the past three months. Dividend yield 1.92 2.16 trading day of the past three months. Dividend yield 1.07 1.21
All-time high 23441.76, 10/24/17 All-time high: 2581.07, 10/27/17 All-time high: 6727.67, 10/31/17

Current divisor 0.14523396877348

23500 2570 6700
Session high
DOWN UP 23000 2540 6600
t

Session open Close

Close Open
t

22500 2510 6500

Session low
22000 2480 6400

65-day moving average

21500 2450 6300

65-day moving average 65-day moving average

21000 2420 6200

Bars measure the point change from session's open

20500 2390 6100
July Aug. Sept. Oct. July Aug. Sept. Oct. July Aug. Sept. Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 862,926,221 11,968,167
Industrial Average 23517.71 23388.91 23435.01 57.77 0.25 23441.76 17888.28 30.5 18.6 10.5 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 496,122,814 6,395,815
Transportation Avg 9840.82 9743.02 9783.81 25.34 0.26 10038.13 8025.80 21.9 8.2 3.8 Most-active issues in late trading Decl. volume* 357,921,272 5,181,426
Utility Average 754.94 748.04 748.95 -4.25 -0.56 754.80 625.44 14.2 13.5 7.9 Volume After Hours Issues traded 3,060 330
Company Symbol (000) Last Net chg % chg High Low Advances 1,559 144
Total Stock Market 26825.82 26651.90 26706.22 18.25 0.07 26743.96 21514.15 23.5 14.7 8.3
Facebook Cl A FB 11,385.9 179.64 -3.02 -1.65 188.00 173.44 Declines 1,384 158
Barron's 400 694.25 684.31 687.47 -3.39 -0.49 691.56 521.59 31.2 14.3 8.6
SPDR S&P 500 SPY 5,172.9 257.16 -0.33 -0.13 257.57 256.97 Unchanged 117 28
Nasdaq Stock Market Energy Transfer Partners ETP 4,357.3 17.66 ... unch. 17.70 17.66 New highs 205 4
Nasdaq Composite 6759.66 6691.48 6716.53 -11.14 -0.17 6727.67 5046.37 31.6 24.8 13.2 iShares MSCI Emg Markets EEM 3,858.3 46.46 -0.06 -0.13 46.70 46.46 New lows 46 10
Nasdaq 100 6276.66 6224.58 0.09 6248.65 4660.46 28.5 Closing tick 204 6
6248.65 0.001 32.2 14.5 PwrShrs QQQ Tr Series 1 QQQ 2,720.1 151.66 -0.44 -0.29 152.29 151.60
Closing Arms† 0.83 0.72
Finl Select Sector SPDR XLF 2,194.0 26.64 ... unch. 26.68 26.60
Standard & Poor's Block trades* 6,390 112
iShares Russell 2000 ETF IWM 2,114.2 148.05 -0.22 -0.15 150.25 147.58
500 Index 2588.40 2574.92 2579.36 4.10 0.16 2581.07 2085.18 22.9 15.2 8.5 Nasdaq NYSE Arca
General Electric GE 2,000.3 20.00 -0.02 -0.10 23.70 19.99
MidCap 400 1845.02 1824.34 1830.10 -5.00 -0.27 1839.12 1476.68 23.7 10.2 8.9 Total volume*2,029,281,533 228,543,926
SmallCap 600 917.65 900.99 906.42 -5.62 -0.62 918.72 703.64 28.4 8.2 10.1 Percentage gainers… Adv. volume* 888,545,060 157,518,195
Decl. volume*1,058,304,073 60,425,984
Other Indexes Electro Scientific Inds ESIO 261.3 21.98 5.67 34.76 23.00 16.31
Issues traded 3,069 1,298
Russell 2000 1512.40 1485.13 1492.78 -9.99 -0.67 1512.09 1156.89 28.4 10.0 8.4 Finish Line Cl A FINL 42.9 11.45 2.32 25.41 11.45 9.12
Advances 1,090 776
NYSE Composite 12414.60 12352.10 12362.89 21.88 0.18 12430.52 10289.35 19.6 11.8 4.5 Neurocrine Biosciences NBIX 529.6 72.50 11.57 18.99 75.00 60.93 Declines 1,837 491
Value Line 545.11 539.38 540.96 -1.30 -0.24 545.98 455.65 18.3 6.9 3.1 TransAct Technologies TACT 16.1 11.50 1.70 17.35 11.50 10.30 Unchanged 142 31
NYSE Arca Biotech 4150.10 4068.86 4085.78 -17.46 -0.43 4304.77 2834.14 40.5 32.9 6.8
Telekomunik Indonesia ADR TLK 50.9 34.24 4.82 16.38 34.24 29.42 New highs 199 310
New lows 66 49
NYSE Arca Pharma 538.63 533.24 536.21 2.57 0.48 560.52 463.78 13.6 11.4 0.4 ...And losers
Closing tick 238 44
KBW Bank 102.56 101.55 101.69 0.24 0.24 102.23 73.36 38.3 10.8 12.1 Impinj PI 150.2 25.80 -7.00 -21.34 33.34 25.26 Closing Arms† 0.71 0.66
PHLX§ Gold/Silver 82.60 81.13 81.28 0.08 0.10 96.72 73.03 -7.3 3.1 7.8 Allison Transmission ALSN 220.1 36.88 -6.88 -15.72 43.76 36.88 Block trades* 7,210 1,219
PHLX§ Oil Service 136.65 132.64 133.52 1.14 0.86 192.66 117.79 -10.5 -27.3 -18.7 Oclaro Inc OCLR 1,091.6 6.80 -1.22 -15.21 8.03 6.75 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1284.68 1260.07 1271.51 -4.10 -0.32 1275.61 802.88 56.9 40.3 25.7 FireEye FEYE 1,564.3 14.34 -2.03 -12.40 16.92 13.60 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 10.49 9.74 0.02 22.51 9.19 -47.2 -27.4 -10.1 issues with the volume of shares rising and falling. An
10.20 0.20 Community Health Systems CYH 106.9 4.79 -0.65 -11.95 5.45 4.75 Arms of less than 1 indicates buying demand; above 1

Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2976.63 16.69 0.56 17.6 Altair Engineering Cl A ALTR 18.31 5.31 40.85 ... ... ... Envision Healthcare EVHC 28.03 -14.57 -34.20 74.75 26.56 -56.7
DJ Global Index 385.24 1.06 0.28 18.2 Xunlei ADR XNET 12.01 2.74 29.56 12.10 3.11 160.5 China Internet Nationwide CIFS 30.20 -11.20 -27.05 43.30 10.81 ...
DJ Global ex U.S. 260.07 1.15 0.44 21.6 CounterPath CPAH 2.96 0.55 22.91 2.99 1.75 35.3 Frontier Communications FTR 8.86 -3.25 -26.84 57.30 8.83 -82.6
Americas DJ Americas 619.87 0.55 0.09 14.7 Bill Barrett BBG 5.99 1.06 21.50 8.24 2.66 23.3 3D Systems DDD 9.45 -2.93 -23.67 23.70 8.70 -27.7
Brazil Sao Paulo Bovespa 73823.74 –484.75 –0.65 22.6 IZEA IZEA 3.95 0.62 18.62 7.85 1.37 -23.6 Dragon Victory Intl LYL 5.44 -1.47 -21.27 14.99 5.16 ...
Canada S&P/TSX Comp 16029.33 3.74 0.02 4.9 Takung Art TKAT 3.51 0.53 17.68 10.50 2.15 -48.4 Qumu Corp. QUMU 2.52 -0.67 -21.03 3.28 1.80 -21.3
Mexico S&P/BMV IPC 48334.45 –291.08 –0.60 5.9 New Age Beverages NBEV 2.75 0.41 17.34 7.20 1.47 60.6 Intellia Therapeutics NTLA 25.47 -5.65 -18.16 33.34 10.83 96.1
Chile Santiago IPSA 4240.31 … Closed 31.6 Plantronics PLT 52.39 7.03 15.50 58.27 41.28 14.5 Nova Measuring Instr NVMI 25.77 -5.49 -17.56 31.69 11.83 110.0
0.39 Emerge Energy Services EMES 8.17 1.03 14.43 24.45 5.65 -25.6 Pitney Bowes PBI 11.40 -2.34 -17.03 16.60 11.20 -21.8
EMEA Stoxx Europe 600 396.77 1.55 9.8
0.66 Big 5 Sporting Goods BGFV 7.25 0.90 14.17 20.35 6.25 -56.8 aTyr Pharma LIFE 4.00 -0.80 -16.67 6.50 2.10 53.8
Eurozone Euro Stoxx 400.44 2.63 14.3
Belgium Bel-20 4116.50 20.12 0.49 14.1 TDH Holdings PETZ 18.43 2.27 14.02 31.75 6.02 ... Cellectis ADR CLLS 29.18 -5.83 -16.65 35.07 16.09 68.5
France CAC 40 5514.29 11.00 0.20 13.4 Oi ADR OIBR.C 8.02 0.96 13.60 9.71 3.11 48.8 Surgery Partners SGRY 7.75 -1.50 -16.22 24.05 7.10 -52.5
Germany DAX 13465.51 235.94 1.78 17.3 Calyxt CLXT 23.15 2.67 13.04 31.89 9.26 ... Investment Technology ITG 20.01 -3.46 -14.74 23.96 15.04 32.3
Israel Tel Aviv 1442.90 4.29 0.30 –1.9 B&G Foods BGS 35.85 4.05 12.74 47.75 29.50 -14.7 Owens Minor OMI 20.96 -3.61 -14.69 37.02 20.03 -36.1
0.87 19.5 Loma Negra ADR LOMA 21.35 2.35 12.37 ... ... ... Tel Instrument Elec TIK 2.49 -0.41 -14.00 6.25 2.40 -34.3
Italy FTSE MIB 22991.99 198.30
Netherlands AEX 554.49 1.11 0.20 14.8
Russia RTS Index 1126.43 13.02 1.17 –2.2 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10506.70 –16.80 –0.16 12.3
0.07 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 597.60 0.44 11.8 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9267.82 25.64 0.28 12.7
General Electric GE 89,701 68.3 20.02 -0.69 32.38 19.96 Envision Healthcare EVHC 50,413 2075 28.03 -34.20 74.75 26.56
U.K. FTSE 100 7487.96 –5.12 –0.07 4.8
Advanced Micro Devices AMD 66,003 14.2 10.80 -1.68 15.65 6.22 John Hancock Multi Tech JHMT 124 2073 40.90 -0.22 41.20 29.35
Asia-Pacific AK Steel AKS 58,391 271.0 4.35 -5.23 11.39 4.33 iSh iBonds Dec 2023 Corp IBDO 952 2067 25.22 -0.15 25.55 24.33
Australia S&P/ASX 200 5937.80 28.80 0.49 4.8 Envision Healthcare EVHC 50,413 2075.0 28.03 -34.20 74.75 26.56 Vanguard Russell 3000 VTHR 224 1632 118.31 0.02 118.72 95.26
China Shanghai Composite 3395.91 2.57 0.08 9.4 SPDR S&P 500 SPY 48,980 -23.5 257.49 0.13 258.43 208.38 SPDR Bloomberg TIPS IPE 635 1620 56.41 0.10 58.18 55.10
Hong Kong Hang Seng 28594.06 348.52 1.23 30.0 iShares MSCI Emg Markets EEM 48,067 -0.9 46.52 0.52 46.85 33.94 Xunlei ADR XNET 11,714 1379 12.01 29.56 12.10 3.11
India S&P BSE Sensex 33600.27 387.14 1.17 26.2 Intel INTC 45,949 91.0 46.71 2.68 46.71 33.23 PowerShares Dyn Software PSJ 123 1354 64.57 -1.82 65.86 45.76
Japan Nikkei Stock Avg 22420.08 408.47 1.86 17.3 Bank of America BAC 45,762 -29.5 27.53 0.51 27.98 16.28 PowerShares DWA MomentumPDP 960 1340 50.36 -0.75 50.93 40.29
Singapore Straits Times 3391.61 17.53 0.52 17.7 Weatherford International WFT 43,337 145.8 3.67 5.76 7.09 3.16 iShs S&P GSCI Cm-Idxed Tr GSG 2,762 1292 15.48 0.00 15.89 13.16
South Korea Kospi 2556.47 33.04 1.31 26.2 Ford Motor F 43,096 20.9 12.35 0.65 13.27 10.47 CF Cl A CFCO 4,522 1140 10.97 0.64 12.25 9.82
Taiwan Weighted 10806.36 12.56 0.12 16.8 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Wed YTDchg
in US$ per US$ (%) Country/currency
Wed YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03018 33.140 –7.5
A consumer rate against its Five-year ARM, Rate Vietnam dong .00004403 22714 –0.3
3.75% Argentina peso .0568 17.6100 11.0
benchmark over the past year 10% Brazil real .3060 3.2677 0.4 Europe
Bankrate.com avg†: 3.46%
WSJ Dollar index Canada dollar .7772 1.2867 –4.3 Czech Rep. koruna .04544 22.007 –14.3
5-year adjustable- Standard Bank, PaSB 2.75% 3.00 5
s

rate mortgage s Chile peso .001574 635.20 –5.2 Denmark krone .1561 6.4048 –9.4
4.00% Murrysville, PA 724-327-0010 Euro .0003262 3065.65 1.1621 .8605 –9.5
t (ARM) 2.25 0 Colombia peso 2.1 Euro area euro
Florence Savings Bank 2.88% Ecuador US dollar 1 1 unch Hungary forint .003736 267.64 –9.1
Wednesday
t

3.00 1.50 Mexico peso .0524 19.0724 –8.0 Iceland krona .009400 106.38 –5.8
Florence, MA 800-644-8261 –5
Peru new sol .3078 3.249 –3.1 Norway krone .1227 8.1506 –5.7
2.00 Foxboro Federal Savings 2.88% 0.75 –10 Uruguay peso .03426 29.1900 –0.5 Poland zloty .2745 3.6431 –13.0
t
Foxboro, MA 877-369-3331 One year ago s Yen
t

Venezuela b. fuerte .092078 10.8604 8.7 Russia ruble .01721 58.106 –5.2
5-year Treasury 1.00 0.00 –15
Manasquan Savings Bank 2.88% Asia-Pacific Sweden krona .1190 8.4011 –7.8
note yield 1 3 6 1 2 3 5 710 30 Switzerland franc .9968 1.0032 –1.5
Manasquan, NJ 732-292-8400 2017 Australian dollar .7675 1.3029 –6.2
0.00 month(s) years Turkey lira .2623 3.8130 8.2
Somerset Savings Bank, SLA 2.88% China yuan .1515 6.6025 –4.9
N D J F MAM J J A S O N maturity Ukraine hryvnia .0372 26.8800 –0.7
Hong Kong dollar .1282 7.8001 0.6
2017 Bound Brook, NJ 732-560-1700 UK pound 1.3246 .7549 –6.8
India rupee .01550 64.526 –5.1
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000737 13563 0.3
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008759 114.17 –2.4 Bahrain dinar 2.6515 .3772 –0.01
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .002982 335.33 0.5 Egypt pound .0567 17.6495 –2.7
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1245 8.0340 1.5 Israel shekel .2847 3.5121 –8.7
Malaysia ringgit .2363 4.2315 –5.7 Kuwait dinar 3.3060 .3025 –1.0
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6886 1.4522 0.6 Oman sul rial 2.5984 .3849 –0.03
Libor, 3-month 1.38 1.37 0.88 l 1.38 1.15 Pakistan rupee .00951 105.200 0.8 Qatar rial .2612 3.829 5.2
Money market, annual yield 0.32 0.32 0.26 l 0.36 -0.10 Treasury, Ryan ALM 1457.911 2.143 2.181 2.237 1.482 –1.522 1.970 Philippines peso .0194 51.486 3.8 Saudi Arabia riyal .2666 3.7504 –0.01
Five-year CD, annual yield 1.47 1.47 1.19 l 1.47 -0.06 10-yr Treasury, Ryan ALM 1729.628 2.378 2.444 2.609 1.783 1.605 1.809 Singapore dollar .7348 1.3610 –6.0 South Africa rand .0711 14.0670 2.7
30-year mortgage, fixed† 3.93 3.95 3.61 l 4.33 -0.14 South Korea won .0008997 1111.54 –8.0
DJ Corporate 379.751 3.059 3.079 3.390 2.730 2.973 3.961 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065083 153.65 3.5
15-year mortgage, fixed† 3.23 3.25 2.85 l 3.50 ... Aggregate, Barclays Capital 1939.450 2.620 2.650 2.790 2.100 0.835 2.396 Taiwan dollar .03317 30.145 –7.1 WSJ Dollar Index 87.75 0.13 0.15 –5.58
Jumbo mortgages, $424,100-plus† 4.28 4.33 4.23 l 4.88 -0.04 High Yield 100, Merrill Lynch n.a. n.a. 5.130 n.a. n.a. n.a. n.a. Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.46 3.50 3.13 l 4.03 -0.31
Fixed-Rate MBS, Barclays 1984.900 2.860 2.930 3.120 2.270 0.454 2.084
New-car loan, 48-month 3.01 3.02 2.85 l 3.36 -0.23
HELOC, $30,000 5.18 5.19 4.57 l 5.30 0.73
Muni Master, Merrill n.a. n.a. 1.953 n.a. n.a. n.a. n.a. COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 805.838 5.457 5.496 6.290 5.279 6.304 5.577 Commodities Wednesday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 603.25 2.52 0.42 603.25 527.06 13.79 6.35

Get real-time U.S. stock quotes and track most-active Track the Markets 187.94 0.20 195.14 1.98 -2.37

WSJ
TR/CC CRB Index 0.38 166.50
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 54.30 -0.08 -0.15 54.45 42.53 19.76 1.08
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 2.893 -0.003 -0.10 3.93 2.56 3.62 -22.31
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1274.10 7.10 0.56 1346.00 1127.80 -2.50 10.79
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B10 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Wednesday, November 1, 2017
Metal & Petroleum Futures Sugar-World (ICE-US)-112,000 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Contract Open
March 14.72 14.84 14.57 14.61 –.13 420,659 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
May 14.79 14.90 14.65 14.69 –.13 134,599
Open High hi lo Low Settle Chg interest Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. months.
Copper-High (CMX)-25,000 lbs.; $ per lb. March 27.25 27.25 27.25 27.25 .05 2,744 Wednesday Wednesday Wednesday
Nov 3.1380 3.1410 3.1265 3.1330 0.0410 1,624 July 27.25 27.25 27.25 27.13 .08 1,024 (U.S.$ equivalent) 16.9400 SoybeanMeal,Cent IL,rail,ton48%-u 310.10
Dec 3.1115 3.1830 3.1075 3.1425 0.0415 156,161 Cotton (ICE-US)-50,000 lbs.; cents per lb. Energy Coins,wholesale $1,000 face-a n.a. Soybeans,No.1 yllw IL-bp,u 9.3950
Gold (CMX)-100 troy oz.; $ per troy oz. Dec 68.68 69.05 68.10 68.17 –.21 106,364 7.5900
Nov 1272.20 1274.80 1270.30 1274.10 7.10 272
Propane,tet,Mont Belvieu-g 0.9573 Other metals Wheat,Spring14%-pro Mnpls-u
March'18 68.53 68.97 68.10 68.15 –.19 85,510
Dec 1271.80 1281.90 1268.50 1277.30 6.80 376,939 Butane,normal,Mont Belvieu-g 1.0555 LBMA Platinum Price PM *915.0 Wheat,No.2 soft red,St.Louis-bp,u 4.1550
Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Wheat - Hard - KC (USDA) $ per bu-u 3.4775
Feb'18 1275.70 1286.00 1273.30 1281.60 6.90 93,780 Nov 151.90 152.80 151.90 152.90 –3.35 176
NaturalGas,HenryHub-i n.a. Platinum,Engelhard industrial 935.0
April 1277.40 1289.60 1277.40 1285.50 6.90 16,729 Jan'18 155.20 156.00 151.00 152.05 –2.45 5,781 NaturalGas,TranscoZone3-i n.a. Platinum,Engelhard fabricated 1035.0 Wheat,No.1soft white,Portld,OR-u 5.2400
June 1281.60 1293.20 1281.60 1289.40 6.90 14,384 NaturalGas,TranscoZone6NY-i n.a. Palladium,Engelhard industrial 1007.0
Dec 1294.60 1303.80 1294.60 1301.60 6.90 10,526
Food
Interest Rate Futures NaturalGas,PanhandleEast-i n.a. Palladium,Engelhard fabricated 1107.0
Palladium (NYM) - 50 troy oz.; $ per troy oz. NaturalGas,Opal-i n.a. Beef,carcass equiv. index
Dec 978.75 1004.00 977.85 998.15 19.00 29,263 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Aluminum, LME, $ per metric ton *2140.0
Dec 152-120 153-100 151-310 152-240 9.0 729,381 NaturalGas,MarcellusNE PA-i n.a. Copper,Comex spot 3.1330 choice 1-3,600-900 lbs.-u 184.79
March'18 970.90 993.35 s 970.85 990.05 19.05 4,703
March'18 151-070 152-040 151-030 151-190 9.0 7,574 NaturalGas,HaynesvilleN.LA-i n.a. Iron Ore, 62% Fe CFR China-s 58.5 select 1-3,600-900 lbs.-u 172.80
Platinum (NYM)-50 troy oz.; $ per troy oz.
Nov 914.40 917.20 914.00 933.00 17.20 9 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Coal,C.Aplc.,12500Btu,1.2SO2-r,w 57.850 Shredded Scrap, US Midwest-s,w 286
Broilers, National comp wghtd-u,w 0.8481
Jan'18 920.80 939.40 919.90 936.70 17.10 70,708 Dec 124-280 125-045 124-230 124-290 –1.0 3,211,532 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.750 Butter,AA Chicago 2.2400
Steel, HRC USA, FOB Midwest Mill-s 619
Silver (CMX)-5,000 troy oz.; $ per troy oz. March'18 124-165 124-240 124-125 124-185 –1.0 24,552 Cheddar cheese,bbl,Chicago 174.00
Nov 16.990 17.060 16.990 17.132 0.487 379 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Metals Fibers and Textiles Cheddar cheese,blk,Chicago 176.00
Dec 16.710 17.210 16.670 17.176 0.483 141,798 Dec 117-047 117-082 117-017 117-040 –2.0 3,034,429 Milk,Nonfat dry,Chicago lb. 72.25
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March'18 116-287 117-000 116-265 116-285 –2.2 30,187 Gold, per troy oz Burlap,10-oz,40-inch NY yd-n,w 0.6100 Cocoa,Ivory Coast-w 2344
Dec 54.65 55.22 53.89 54.30 –0.08 577,849 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Engelhard industrial 1275.81 Cotton,1 1/16 std lw-mdMphs-u 0.6767 Coffee,Brazilian,Comp 1.2403
Jan'18 54.86 55.42 54.11 54.51 –0.08 330,956 Dec 107-215 107-215 107-197 107-202 –1.5 1,638,617 Engelhard fabricated 1371.50 Cotlook 'A' Index-t *79.55 Coffee,Colombian, NY 1.4325
Feb 54.96 55.52 54.22 54.62 –0.07 132,359 March'18 107-162 107-162 107-150 107-150 –1.5 13,577 Handy & Harman base 1277.05 Hides,hvy native steers piece fob-u n.a.
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Eggs,large white,Chicago-u 0.8950
March 54.98 55.52 54.27 54.66 –0.06 256,899 Handy & Harman fabricated 1417.53 Wool,64s,staple,Terr del-u,w n.a.
June 54.59 55.03 53.90 54.27 –0.09 212,889 Nov 98.843 98.845 98.840 98.843 … 214,394 Flour,hard winter KC 15.50
LBMA Gold Price AM *1274.40 Hams,17-20 lbs,Mid-US fob-u 0.73
Dec 53.18 53.43 52.44 52.74 –0.26 273,264 Jan'18 98.625 98.630 98.625 98.630 … 352,737
LBMA Gold Price PM *1270.15
Grains and Feeds
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Hogs,Iowa-So. Minnesota-u 66.48
Dec 1.8852 1.9030 s 1.8540 1.8625 –.0180 139,041 Dec 100.875 101.078 100.703 100.844 –.094 28,950
Krugerrand,wholesale-e 1327.87 Barley,top-quality Mnpls-u n.a. Pork bellies,12-14 lb MidUS-u 1.0665
Jan'18 1.8872 1.9015 s 1.8554 1.8633 –.0171 78,036 1 Month Libor (CME)-$3,000,000; pts of 100% Maple Leaf-e 1340.64 Bran,wheat middlings, KC-u 71 Pork loins,13-19 lb MidUS-u 0.9400
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Nov ... ... ... 98.7500 … 928 American Eagle-e 1340.64 Corn,No. 2 yellow,Cent IL-bp,u 3.1500 Steers,Tex.-Okla. Choice-u n.a.
Dec 1.7489 1.7708 s 1.7335 1.7410 .0085 159,359 Eurodollar (CME)-$1,000,000; pts of 100% Mexican peso-e 1547.44 Corn gluten feed,Midwest-u,w 93.2 Steers,feeder,Okla. City-u,w 165.75
Jan'18 1.7260 1.7446 s 1.7070 1.7149 .0024 80,366 Nov 98.5900 98.5900 98.5875 98.5875 … 97,577 Austria crown-e 1254.52 Corn gluten meal,Midwest-u,w 473.0
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 98.4900 98.4900 98.4850 98.4850 –.0050 1,713,141 Austria phil-e 1340.64 Cottonseed meal-u,w 230 Fats and Oils
Dec 2.906 2.929 t 2.847 2.893 –.003 318,906 March'18 98.3450 98.3500 98.3350 98.3350 –.0150 1,274,941
Silver, troy oz. Hominy feed,Cent IL-u,w 88 Corn oil,crude wet/dry mill-u,w 34.5500
Jan'18 3.034 3.055 t 2.983 3.017 –.009 218,625 Dec 98.0700 98.0800 98.0450 98.0550 –.0200 1,564,514
Feb 3.037 3.057 t 2.991 3.024 –.006 80,751 Engelhard industrial 16.9200 Meat-bonemeal,50% pro Mnpls-u,w 220 Grease,choice white,Chicago-h n.a.
March 3.006 3.022 t 2.960 2.992 –.008 172,513 Currency Futures Engelhard fabricated 20.3040 Oats,No.2 milling,Mnpls-u 3.0150 Lard,Chicago-u 0.3600
April 2.865 2.872 2.827 2.853 –.009 121,716 Handy & Harman base 17.1000 Rice, 5% Broken White, Thailand-l,w 372.00 Soybean oil,crude;Centl IL-u 0.3353
Japanese Yen (CME)-¥12,500,000; $ per 100¥
May 2.854 2.860 2.818 2.841 –.010 78,668
Nov .8803 .8803 .8754 .8758 –.0043 2,674
Handy & Harman fabricated 21.3750 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Tallow,bleach;Chicago-h 0.2550
Dec .8815 .8820 .8767 .8771 –.0043 267,339 LBMA spot price £12.7400 Sorghum,(Milo) No.2 Gulf-u 7.6913 Tallow,edible,Chicago-u n.a.
Agriculture Futures Canadian Dollar (CME)-CAD 100,000; $ per CAD
Corn (CBT)-5,000 bu.; cents per bu. Nov .7757 .7771 .7750 .7765 .0009 1,262
Dec 345.75 349.25 345.25 348.25 2.50 772,202 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;
Dec .7761 .7782 .7749 .7767 .0009 151,642 L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
March'18 359.50 363.00 359.25 361.75 2.25 346,349 British Pound (CME)-£62,500; $ per £ as of 10/31
Oats (CBT)-5,000 bu.; cents per bu. Nov 1.3288 1.3311 1.3258 1.3254 –.0035 1,091 Source: WSJ Market Data Group
Dec 266.00 274.00 264.00 271.50 6.75 4,794 Dec 1.3302 1.3338 1.3257 1.3266 –.0035 178,240
March'18 269.50 276.50 269.50 275.00 5.75 2,552 Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu. Dec 1.0055 1.0059 t .9991 .9994 –.0057 74,509
Nov
Jan'18
974.50
984.75
984.50
995.00
973.75
983.75
981.00
991.25
7.25 11,617
6.50 313,541
March'18 1.0097 1.0126
Australian Dollar (CME)-AUD 100,000; $ per AUD
1.0064 1.0062 –.0057 167
Bonds | WSJ.com/bonds
Soybean Meal (CBT)-100 tons; $ per ton. Nov .7659 .7693 .7648 .7667 .0013 1,308
Dec
Jan'18
312.00
314.10
314.80
316.90
310.80
312.90
313.60
315.70
1.80 124,106
1.90 96,108
Dec .7654 .7692 .7644 .7664 .0012 128,577 Tracking Bond Benchmarks
Jan'18 .7663 .7689 .7644 .7662 .0012 619
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Feb .7675 .7688 .7642 .7661 .0012 448 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Dec 34.69 35.05 34.64 34.90 .15 144,305
Jan'18 34.83 35.21 34.82 35.06 .14 102,332
March .7660 .7684 .7646 .7659 .0012 741 highs and lows for different types of bonds
June .7648 .7648 .7648 .7656 .0012 243
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Mexican Peso (CME)-MXN 500,000; $ per MXN
Total Total
Nov 1129.00 1129.00 1105.00 1120.00 –9.00 452 return YTD total Yield (%) return YTD total Yield (%)
Dec .05178 .05209 .05164 .05185 .00005 176,617
Jan'18 1159.50 1163.00 1134.00 1150.50 –9.00 9,017 close return (%) Index Latest Low High close return (%) Index Latest Low High
March'18 .05118 .05119 .05090 .05107 .00005 627
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per €
Dec 418.75 422.00 416.50 418.00 –.50 286,624 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Nov 1.1662 1.1665 1.1614 1.1626 –.0034 5,498
March'18 436.50 439.25 t 433.75 436.00 … 130,547
Dec 1.1676 1.1686 1.1635 1.1647 –.0034 423,996 1939.45 3.2 U.S. Aggregate 2.620 2.100 2.790 1984.90 2.2 Mortgage-Backed 2.860 2.270 3.120
Wheat (KC)-5,000 bu.; cents per bu.
Dec 416.50 419.25 414.25 415.75 –.75 157,146 1952.21 1.7 Ginnie Mae (GNMA) 2.810 2.170 3.090
Index Futures U.S. Corporate Indexes Bloomberg Barclays
March'18 434.50 437.25 432.00 433.50 –1.00 89,642
Wheat (MPLS)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index 2780.41 5.6 U.S. Corporate 3.170 2.950 3.520 1164.01 2.4 Fannie mae (FNMA) 2.880 2.300 3.120
Dec 612.75 617.00 611.50 614.00 1.25 34,793 Dec 23334 23464 s 23320 23372 47 158,279
March'18 627.50 630.75 626.00 627.75 1.00 25,917 March'18 23327 23450 s 23313 23364 47 1,651 2622.00 3.9 Intermediate 2.720 2.360 3.010 1792.63 2.5 Freddie Mac (FHLMC) 2.890 2.310 3.130
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. S&P 500 Index (CME)-$250 x index
Nov 159.725 160.475 s 158.675 159.700 .275 9,898 Dec 2573.10 2585.00 s 2571.50 2574.80 2.10 58,792 3849.27 9.5 Long term 4.140 4.110 4.710 n.a. n.a. Muni Master n.a. n.a. n.a.
Jan'18 159.575 161.250 s 159.525 160.650 1.075 28,019 March'18 ... 2584.00 s 2572.50 2575.10 2.10 4,872
567.46 4.2 Double-A-rated 2.660 2.290 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a.
Cattle-Live (CME)-40,000 lbs.; cents per lb. Mini S&P 500 (CME)-$50 x index
Dec 125.675 126.875 s 125.500 126.600 .975 130,801 Dec 2572.75 2585.50 s 2571.00 2574.75 2.00 3,115,078 n.a. n.a. 12-22 year n.a. n.a. n.a.
718.13 6.3 Triple-B-rated 3.450 3.320 3.870
Feb'18 129.500 130.300 s 128.900 130.050 .500 91,966 March'18 2573.25 2585.75 s 2571.50 2575.00 2.00 69,442
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
Dec 67.950 68.000 66.300 66.600 –1.400 105,954 Dec 1835.80 1845.80 s 1822.80 1829.00 –4.90 91,951
Feb'18 72.750 73.300 s 71.850 72.150 –.850 60,219 Mini Nasdaq 100 (CME)-$20 x index n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec 6249.8 6284.5 s 6223.5 6240.8 –9.0 270,162
1.2
463.90 471.30 s 461.50 466.40 8.00 1,235 n.a. n.a. Triple-C-rated n.a. n.a. n.a. 543.38 Global Government 1.440 1.080 1.560
Nov March'18 6266.8 6297.3 s 6237.0 6253.8 –9.0 1,690
Jan'18 448.00 454.00 s 446.50 453.60 9.60 4,732 Mini Russell 2000 (ICE-US)-$100 x index 755.47 0.3 Canada 2.020 1.390 2.190
n.a. n.a. High Yield 100 n.a. n.a. n.a.
Milk (CME)-200,000 lbs., cents per lb. Dec 1503.00 1516.50 1483.60 1491.90 –10.90 65,237
Nov 16.65 16.66 16.58 16.63 .05 4,644 March'18 1508.50 1508.50 1494.00 1492.90 –10.90 69 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 372.39 0.9 EMU§ 1.047 0.826 1.363
Dec 15.90 15.95 15.79 15.89 –.09 3,995 Mini Russell 1000 (ICE-US)-$100 x index
Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 1430.00 1432.90 s 1425.40 1426.50 .60 258 n.a. n.a.
Europe High Yield Constrained n.a. n.a. n.a. 712.54 0.8 France 0.810 0.540 1.210
Dec 2,089 2,142 2,086 2,123 29 89,796 U.S. Dollar Index (ICE-US)-$1,000 x index
March'18 2,082 2,129 2,080 2,119 30 109,189 Dec 94.42 94.76 94.40 94.71 .28 46,313
U.S Agency Bloomberg Barclays 509.89 -0.9 Germany 0.430 0.170 0.620
Coffee (ICE-US)-37,500 lbs.; cents per lb. March'18 94.20 94.46 94.16 94.42 .27 2,160 2.1
Dec 124.70 126.20 121.20 122.95 –2.15 114,662
1638.61 U.S Agency 2.000 1.330 2.010 287.65 -0.2 Japan 0.420 0.170 0.460
March'18 128.30 129.65 124.80 126.45 –2.15 68,095 Source: SIX Financial Information 1465.88 1.3 10-20 years 1.830 1.140 1.840 562.54 -0.7 Netherlands 0.560 0.290 0.760
3350.39 7.2 20-plus years 2.960 2.670 3.460 914.13 0.1 U.K. 1.640 1.340 1.790
Macro & Market Economics 2457.00 4.8 Yankee 2.830 2.470 3.090 805.84 9.0 Emerging Markets ** 5.457 5.279 6.290

Watching the Gauges: U.S. Supply and Demand *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Inventories, imports and demand for the week ended October 27. 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
and demand data are available monthly only. Global Government Bonds: Mapping Yields
Inventories, 000s barrels Imports, 000s barrels per day Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Current change week ago avg avg Current change week ago avg avg
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Crude oil and Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
petroleum prod 1,266,060 ... 1,272 1,341 1,279 1,194 9,629 ... 9,819 10,957 9,741 9,361 1.500 U.S. 2 1.636 s l 1.600 1.483 0.837
Crude oil 2.250 10 2.380 s l 2.377 2.333 1.828
excluding SPR 454,906 -1,200 457 483 458 423 7,571 ... 8,123 8,995 7,699 7,482 2.750 Australia 2 1.846 s l 1.833 1.965 1.680 21.0 23.3 84.3
Gasoline 212,849 ... 217 224 218 210 540 ... 233 458 581 480 2.750 10 2.712 s l 2.678 2.847 2.390 33.2 30.1 56.2
Finished gasoline 21,882 -1,800 22 25 22 34 12 ... 36 27 49 64 0.000 France 2 -0.590 s l -0.595 -0.482 -0.590 -222.6 -219.4 -142.7
Reformulated 49 ... 0 0 0 0 0 ... 0 0 0 0 2.750 10 0.630 s l 0.627 0.748 0.512 -175.0 -131.6
-175.0
Conventional 21,833 ... 22 25 22 34 12 ... 36 27 49 64
0.000 Germany 2 -0.745 s l -0.750 -0.686 -0.615 -238.1 -234.9 -145.2
Blend. components 190,966 ... 195 199 196 176 528 ... 198 431 532 415
0.500 10 0.375 s l 0.367 0.466 0.180 -200.5 -201.0 -164.9
Natural gas (bcf) 3,710 ... 4 4 4 4 ... ... ... ... ... ... 0.050 Italy 2 -0.209 t l -0.201 -0.123 0.034 -184.5 -180.1 -80.3
Kerosene-type 2.050 10 1.803 t l 1.828 2.116 1.687 -57.7 -54.9 -14.2
jet fuel 41,167 ... 41 42 42 39 248 ... 326 93 184 96 0.100 Japan 2 -0.162 t l -0.160 -0.115 -0.244 -176.0 -108.1
-179.7
Distillates 128,921 -2,300 129 151 132 128 137 ... 133 60 116 132 0.100 10 0.061 t l 0.069 0.065 -0.050 -231.8 -230.8 -187.8
Heating oil 10,823 ... 11 14 11 19 41 ... 7 18 18 43
2.750 Spain 2 -0.363 s l -0.365 -0.323 -0.148 -199.9 -196.5 -98.5
Diesel 118,097 ... 118 136 120 109 96 ... 126 42 98 89
1.450 10 1.475 s l 1.467 1.607 1.293 -90.4 -91.0 -53.6
Residual fuel oil 32,861 ... 32 40 34 39 155 ... 119 207 159 218
Other oils 295,537 ... 297 281 296 255 ... 771 1,005 878 790 1.750 U.K. 2 0.484 s l 0.461 0.456 0.263 -115.2 -113.9 -57.4
863
4.250 10 1.346 s l 1.334 1.362 1.179 -103.4 -104.3 -65.0
Net crude, petroleum
Source: Tullett Prebon
products, incl. SPR 1,936,647 ... 1,943 2,036 1,950 1,889 1,951 ... 2,156 6,359 2,708 5,500

Weekly Demand, 000s barrels per day Natural gas storage Corporate Debt
Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals in that same company’s share price.
Current change week ago avg avg
Investment-grade spreads that tightened the most…
Total petroleum Spread*, in basis points Stock Performance
4250
product 19,184 ... 20,010 19,884 19,513 19,897 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Natural gas,
Finished lower 48 states 3250 Hercules Capital HTGC 4.625 Oct. 23, ’22 230 –24 249 12.49 0.16
t UniCredit UCGIM 5.861 June 19, ’32 237 –22 280 ... ...
motor gasoline 9,461 ... 9,314 9,183 9,348 9,109
Canadian Imperial Bank of Commerce CM 2.100 Oct. 5, ’20 27 –19 48 88.28 0.26
Kerosene-type 2250
Intesa Sanpaolo ISPIM 5.710 Jan. 15, ’26 221 –15 256 ... ...
jet fuel 1,628 ... 1,859 1,789 1,730 1,630 t
Indiana Michigan Power AEP 3.750 July 1, ’47 89 –8 94 74.01 –0.54
Distillates 3,534 ... 4,101 3,863 3,690 3,944 1250
Five-year average
Residual fuel oil 130 ... 604 283 405 305 for each week
…And spreads that widened the most
Propane/propylene 779 ... 1,177 1,106 956 ... 250
Other oils 3,651 ... 2,955 3,661 3,384 ... N D J F M A M J J A S O
Bank of America BAC 8.000 Jan. 30, ’49 –63 42 –112 27.53 0.51
2016 2017
JPMorgan Chase JPM 7.900 April 30, ’49 –31 37 –143 100.92 0.31
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 Teva Pharmaceutical Finance Netherlands Iii TEVA 4.100 Oct. 1, ’46 264 20 252 ... ...
Macy's Retail Holdings M 3.625 June 1, ’24 256 15 n.a. ... ...
Biogen BIIB 3.625 Sept. 15, ’22 63 11 54 315.73 1.31
Exchange-Traded Portfolios | WSJ.com/ETFresearch BNP Paribas BNP 7.625 March 30, ’49 91 11 n.a. ... ...
eBay EBAY 2.600 July 15, ’22 64 8 56 37.54 –0.27
Closing Chg YTD
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)

Wednesday, November 1, 2017 Closing Chg YTD SchwabUS LC SCHX 61.54 0.20 15.5 High-yield issues with the biggest price increases…
SPDR DJIA Tr DIA 234.19 0.24 18.6
ETF Symbol Price (%) (%)
Closing Chg YTD SPDR S&PMdCpTr MDY 332.74 –0.26 10.3 Bond Price as % of face value Stock Performance
ETF Symbol Price (%) (%) iShMSCI EAFE EFA 69.70 0.10 20.7 SPDR S&P 500 SPY 257.49 0.13 15.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
iShMSCIEAFESC SCZ 63.20 0.25 26.8 SPDR S&P Div SDY 92.45 –0.03 8.1
AlerianMLPETF AMLP 10.90 1.68 –13.5
46.52 0.52 32.9 TechSelectSector XLK 62.96 0.02 30.2 7.875 Aug. 15, ’40 2.98 82.250 ...
CnsmrDiscSelSector XLY 92.02 0.03 13.0 iShMSCIEmgMarkets EEM
UtilitiesSelSector 54.81 –0.56 12.8
Pride International ESV 85.500 ...
iShMSCIEurozoneETF EZU 43.94 0.25 27.0 XLU
CnsStapleSelSector XLP 53.26 0.32 3.0 Weatherford International WFT 4.500 April 15, ’22 92.813 2.41 91.875 3.67 5.76
iShMSCIJapanETF EWJ 58.98 0.56 20.7 VanEckGoldMiner GDX 22.48 ... 7.5
DBGoldDoubleLgETN DGP 24.01 0.29 19.3
iShNasdaqBiotech IBB 312.19 –0.63 17.6 VangdInfoTech VGT 163.17 –0.04 34.3 Talen Energy Supply TLN 9.500 July 15, ’22 104.050 2.05 98.780 ... ...
DBGoldDoubleShrt DZZ 5.60 –0.88 –18.3
iShNatlMuniBdETF MUB 110.52 –0.03 2.2 VangdSC Val VBR 128.59 –0.23 6.3
EnSelectSectorSPDR XLE 68.68 1.13 –8.8
iShRussell1000Gwth IWF 129.88 –0.06 23.8 VangdDivApp VIG 96.75 –0.03 13.6 SM Energy SM 5.625 June 1, ’25 99.500 1.75 n.a. 21.88 2.58
FinSelSectorSPDR XLF 26.64 0.15 14.6
iShRussell1000ETF IWB 143.30 0.13 15.1 VangdFTSEDevMk VEA 44.28 0.23 21.2
GuggS&P500EW RSP 96.61 0.03 11.5
iShRussell1000Val IWD 119.80 0.34 6.9 VangdFTSE EM VWO 44.74 0.25 25.0
Bristow BRS 6.250 Oct. 15, ’22 73.500 1.63 72.250 9.06 –4.03
HealthCareSelSect XLV 81.31 0.25 17.9 58.54 –0.10 22.1 Denbury Resources DNR 5.500 May 1, ’22 64.938 1.44 59.500 1.26 2.44
iShRussell2000Gwth IWO 180.09 –0.83 17.0 VangdFTSE Europe VGK
IndSelSectorSPDR XLI 71.49 –0.06 14.9 148.27 10.0 53.87 0.24 21.9
iShRussell2000ETF IWM –0.66 VangdFTSEAWxUS VEU EP Energy EPENEG 9.375 May 1, ’20 85.625 1.41 82.250 ... ...
iShIntermCredBd CIU 109.71 0.02 1.4 iShRussell2000Val IWN 123.63 –0.44 3.9 VangdGrowth VUG 136.58 –0.01 22.5
iSh1-3YCreditBond CSJ 105.04 –0.06 0.1 iShRussell3000ETF IWV 152.61 0.07 14.8 VangdHlthCr VHT 151.08 –0.04 19.2 California Resources CRC 8.000 Dec. 15, ’22 67.688 1.31 63.000 11.92 8.07
iSh3-7YTreasuryBd IEI 122.97 0.01 0.4 iShRussellMid-Cap IWR 200.25 –0.03 12.0 VangdHiDiv VYM 82.68 0.24 9.1
65.35 0.15 21.9
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
IEFA
IEMG 56.09 0.56 32.1
iShRussellMCValue
iShS&PMC400Growth
IWS
IJK
85.72
208.49
0.09
–0.31
6.6
14.4
VangdIntermBd
VangdIntrCorpBd
BIV
VCIT
84.35
87.73
0.05
0.02
1.5
2.4
…And with the biggest price decreases
iShCoreMSCITotInt IXUS 62.35 0.26 23.5 118.29 0.14 15.6
iShCoreS&P500ETF IVV 259.23 0.16 15.2
iShS&P500Growth IVW 148.17 0.02 21.7 VangdLC VV Community Health Systems CYH 6.875 Feb. 1, ’22 67.500 –5.75 74.875 5.44 –7.80
iShS&P500ValueETF IVE 109.47 0.29 8.0 VangdMC VO 148.95 –0.12 13.2
iShCoreS&PMdCp IJH 182.53 –0.24 10.4 iShUSPfdStk PFF 38.28 –0.05 2.9 VangdMC Val VOE 106.57 0.07 9.7 Frontier Communications FTR 11.000 Sept. 15, ’25 81.500 –4.75 83.375 8.86 –26.84
iShCoreS&PSmCpETF IJR 74.33 –0.71 8.1 iShTIPSBondETF TIP 113.70 0.10 0.5 VangdREIT VNQ 82.60 0.49 0.1 Envision Healthcare EVHC 6.250 Dec. 1, ’24 100.875 –2.50 105.000 28.03 –34.20
iShS&PTotlUSStkMkt ITOT 58.99 0.12 15.0 iSh1-3YTreasuryBd SHY 84.21 –0.01 –0.3 VangdS&P500 VOO 236.54 0.17 15.2
iShCoreUSAggBd AGG 109.29 0.04 1.1 iSh7-10YTreasuryBd IEF 106.06 0.06 1.2 VangdST Bond BSV 79.55 –0.03 0.1 Endo DAC ENDP 6.000 July 15, ’23 79.250 –2.00 83.750 ... ...
iShSelectDividend DVY 94.60 –0.16 6.8 iSh20+YTreasuryBd 124.75 0.45 4.7 VangdSTCpBd VCSH 79.83 –0.07 0.6
iShEdgeMSCIMinEAFE EFAV 71.66 –0.17 17.1
TLT Jones Energy Holdings JONE 9.250 March 15, ’23 78.900 –1.60 n.a. 1.31 2.34
iShRussellMCGrowth IWP 116.04 –0.30 19.1 VangdSC VB 142.95 –0.40 10.8
iShEdgeMSCIMinUSA USMV 51.27 –0.10 13.4 PIMCOEnhShMaturity MINT 101.74 0.03 0.4 VangdTotalBd BND 81.65 0.06 1.1 Tesla TSLA 5.300 Aug. 15, ’25 94.875 –1.50 97.500 321.08 –3.15
iShGoldTr IAU 12.25 0.33 10.6 PwrShQQQ 1 QQQ 152.10 –0.03 28.4 VangdTotIntlBd BNDX 54.88 0.09 1.1 Intelsat Luxembourg INTEL 7.750 June 1, ’21 62.313 –1.44 68.500 ... ...
iShiBoxx$InvGrCpBd LQD 121.01 0.16 3.3 PwrShS&P500LoVol SPLV 46.63 0.21 12.1 VangdTotIntlStk VXUS 56.02 0.32 22.1
iShiBoxx$HYCpBd HYG 88.02 –0.10 1.7 PwrShSrLoanPtf BKLN 23.11 –0.04 –1.1 VangdTotalStk VTI 132.44 0.08 14.8 PetSmart PETM 7.125 March 15, ’23 75.875 –1.38 79.000 ... ...
iShJPMUSDEmgBd EMB 115.83 0.02 5.1 SPDRBloomBarcHYBd JNK 37.04 –0.08 1.6 VangdTotlWrld VT 72.37 0.22 18.6
iShMBSETF MBB 106.73 0.03 0.4 SPDR Gold GLD 121.11 0.36 10.5 VangdValue VTV 101.95 0.30 9.6 *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.
iShMSCIACWIETF ACWI 70.42 0.17 19.0 SchwabIntEquity SCHF 34.16 0.23 23.4 WisdTrEuropeHdg HEDJ 66.70 0.44 16.2 Note: Data are for the most active issue of bonds with maturities of two years or more
iShMSCIBrazilCap EWZ 39.90 –0.67 19.7 SchwabUS BrdMkt SCHB 62.28 0.08 15.0 WisdTrJapanHdg DXJ 58.67 1.03 18.4 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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THE WALL STREET JOURNAL. Thursday, November 2, 2017 | B11

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, NYSE s-New 52-week high. GreatPlainsEner GXP 32.49 -0.34 McCormickVtg MKC.V 100.05 0.27 s RoyalBkScotland RBS 7.61 0.02 VailResorts MTN 230.47 1.45 Cerner CERN 65.49 -2.03 MatchGroup MTCH 26.80 0.06
Arca, NYSE MKT and Nasdaq Stock Market listed t-New 52-week low. GpoAvalAcciones AVAL 8.43 0.11 s McDonalds MCD 166.37 -0.54 RoyalCaribbean RCL 120.86 -2.91 Vale VALE 10.04 0.25 CharterComms CHTR 338.22 4.05 MaximIntProducts MXIM 52.33 -0.21
securities. Prices are composite quotations that dd-Indicates loss in the most recent four GpFinSantandMex BSMX 8.25 -0.17 McKesson MCK 139.67 1.79 RoyalDutchA RDS.A 63.04 0.01 s ValeroEnergy VLO 80.71 1.82 CheckPointSftw CHKP 103.01 -14.70 s MelcoResorts MLCO 26.52 1.24
include primary market trades as well as trades quarters. GrupoTelevisa TV 21.62 -0.27 Medtronic MDT 80.31 -0.21 RoyalDutchB RDS.B 65.20 -0.16 Vantiv VNTV 69.85 -0.15 ChinaLodging HTHT 127.59 -6.30 MercadoLibre MELI 239.02 -1.29
reported by Nasdaq OMX BXSM (formerly FD-First day of trading. GuidewireSoftware GWRE 77.93 -2.05 Merck MRK 55.34 0.25 s SAP SAP 116.27 2.07 VarianMed VAR 104.22 0.03 CincinnatiFin CINF 70.71 0.54 MicrochipTech MCHP 92.99 -1.81
Boston), Chicago Stock Exchange, CBOE, National h-Does not meet continued listing MetLife MET 53.87 0.29 S&P Global SPGI 156.56 s Vedanta VEDL 21.22 Cintas CTAS 147.12 -1.92 s MicronTech MU
HCA Healthcare HCA 76.83 1.18 0.09 0.62 44.38 0.07
Stock Exchange, ISE and BATS. standards s MettlerToledo MTD 689.11 6.48 s
HCP HCP 26.02 0.18 SINOPECShanghai SHI 61.11 0.61 VeevaSystems VEEV 60.55 -0.39 CiscoSystems CSCO 34.62 0.47 Microsemi MSCC 53.16 -0.21
The list comprises the 1,000 largest companies lf-Late filing
based on market capitalization. q-Temporary exemption from Nasdaq HDFC Bank HDB 93.30 1.00 MichaelKors KORS 48.48 -0.33 SK Telecom SKM 26.12 -0.02 Ventas VTR 63.07 0.32 CitrixSystems CTXS 82.23 -0.38 Microsoft MSFT 83.18 ...
Underlined quotations are those stocks with requirements. HP HPQ 21.47 -0.08 s MicroFocus MFGP 35.38 0.45 SLGreenRealty SLG 95.19 -0.49 Verizon VZ 47.83 -0.04 Cognex CGNX 124.96 1.81 Middleby MIDD 115.79 -0.11
large changes in volume compared with the t-NYSE bankruptcy HSBC HSBC 48.68 -0.09 MidAmApt MAA 103.11 0.76 s Salesforce.com CRM 101.95 -0.39 VistraEnergy VST 19.21 -0.23 CognizantTech CTSH 73.54 -2.13 Momo MOMO 30.36 -0.11
issue’s average trading volume. v-Trading halted on primary market. Halliburton HAL 43.05 0.31 MitsubishiUFJ MTU 6.80 0.01 Sanofi SNY 46.48 -0.80 VMware VMW 119.12 -0.57 Coherent COHR 256.77 -5.94 Mondelez MDLZ 41.27 -0.16
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being Hanesbrands HBI 22.01 -0.49 MizuhoFin MFG 3.68 0.01 s SantanderConUSA SC 16.82 0.18 VornadoRealty VNO 74.60 -0.26 Comcast A CMCSA 36.08 0.05 MonsterBeverage MNST 57.80 -0.13
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, HarleyDavidson HOG 47.80 0.46 MobileTeleSys MBT 11.04 0.43 Sasol SSL 29.81 0.70 VoyaFinancial VOYA 41.30 1.14 CommerceBcshrs CBSH 57.78 -0.38 Mylan MYL 36.85 1.14
previous closing price was $2 or higher. or securities assumed by such companies. s Harris HRS 137.15 -2.17 MohawkIndustries MHK 262.45 0.69 t Scana SCG 42.63 -0.51 VulcanMaterials VMC 121.02 -0.73 CommScope COMM 34.23 2.09 NXP Semi NXPI 117.30 0.25
HartfordFinl HIG 55.25 0.20 MolsonCoors A TAP.A 85.85 1.45 Schlumberger SLB 64.28 0.28 WABCO WBC 147.26 -0.31 s Copart CPRT 35.84 -0.45 Nasdaq NDAQ 72.41 -0.24
HealthcareAmer HTA 29.77 -0.28 MolsonCoors B TAP 81.04 0.17 SchwabC SCHW 44.24 -0.60 WEC Energy WEC 66.95 -0.44 CoStarGroup CSGP 295.13 -0.62 NatlInstruments NATI 44.99 -0.01
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. Heico HEI 89.89 -0.79 Monsanto MON 121.14 0.04 ScottsMiracleGro SMG 100.10 0.48 W.P.Carey WPC 68.23 0.08 Costco COST 162.69 1.61 NetApp NTAP 44.53 0.11
Heico A HEI.A 75.30 -0.80 Moody's MCO 143.49 1.08 SealedAir SEE 43.96 -0.27 Wabtec WAB 76.64 0.14 Ctrip.com CTRP 47.55 -0.34 Netease NTES 275.97 -5.95
Helmerich&Payne HP 54.59 0.28 MorganStanley MS 49.63 -0.37 s SemicondctrMfg SMI 8.23 0.64 Wal-Mart WMT 87.94 0.63 DISH Network DISH 48.77 0.23 Netflix NFLX 198.00 1.57
Wednesday, November 1, 2017 Net Net Herbalife HLF 70.84 -1.78 Mosaic MOS 22.64 0.30 SempraEnergy SRE 116.63 -0.87 WasteConnections WCN 69.87 -0.80 DentsplySirona XRAY 61.16 0.09 NewsCorp A NWSA 13.71 0.05
Net Stock Sym Close Chg Stock Sym Close Chg Hershey HSY 106.73 0.55 MotorolaSolutions MSI 90.56 0.02 SensataTech ST 48.25 -0.66 WasteMgt WM 81.10 -1.07 DiamondbackEner FANG 109.78 2.62 NewsCorp B NWS 14.05 0.15
Stock Sym Close Chg Hess HES 44.30 0.14 NRG Energy NRG 24.84 -0.16 ServiceCorp SCI 35.06 -0.40 Waters WAT 198.05 2.00 DiscoveryComm B DISCB 23.55 -0.10 Nordson NDSN 126.38 -0.31
BectonDickinson BDX 208.06 -0.61 DXC Tech DXC 91.50 -0.02
NTTDoCoMo DCM 24.28 -0.03 ServiceMaster SERV 47.16 DiscoveryComm A DISCA 19.16 0.28
HewlettPackard HPE 13.60 -0.32 0.05 Watsco WSO 165.43 -1.14 NorthernTrust NTRS 93.41 -0.11
Berkley WRB 68.54 -0.04 s Danaher DHR 92.91 0.64
NYSE BerkHathwy A BRK.A 280000-469.99 Darden DRI 82.08 -0.19
s Hilton HLT 72.44 0.16 NVR NVR 3262.29 -19.08 ServiceNow NOW 124.51 -1.86 Wayfair W 74.41 4.51 DiscoveryComm C DISCK 18.09 0.28 NorwegianCruise NCLH 54.20 -1.55
s HollyFrontier HFC 39.65 2.70 NationalGrid NGG 60.55 -0.50 ShawComm B SJR 22.93 0.09 s WellCareHealth WCG 200.91 3.17 DollarTree DLTR 91.12 -0.13 s NVIDIA NVDA 207.20 0.39
s ABB ABB 26.24 0.11 BerkHathwy B BRK.B 187.17 0.23 DaVita DVA 59.83 -0.91 E*TRADE ETFC 43.54 -0.05
HomeDepot HD 165.38 -0.40 NatlOilwell NOV 34.06 -0.13 SherwinWilliams SHW 395.77 0.62 WellsFargo WFC 56.21 0.07 OReillyAuto ORLY 207.56 -3.39
AES AES 10.57 -0.06 BerryGlobal BERY 59.17 -0.28 s Deere DE 134.27 1.39 EastWestBancorp EWBC 59.73 -0.11
HondaMotor HMC 31.87 0.78 NatlRetailProp NNN 40.24 0.06 ShinhanFin SHG 45.24 -0.03 Welltower HCN 67.02 0.06 OldDomFreight ODFL 119.97 -1.16
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EQT EQT 62.06 -0.48 IP 57.72 0.45 -0.44 -0.14 ScrippsNetworks SNI 83.52 0.24
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HuntingtonBcshs HBAN 13.81 0.01
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CNOOC CEO 136.11 -0.59 s Ansys ANSS 135.60 -1.11 INC Research INCR 57.20 0.05
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Ambev ABEV 6.29 -0.04 CRH CRH 36.79 -0.73 s Abiomed ABMD 188.89 -4.03 IRSA Prop IRCP 56.00 ...
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Ameren AEE 61.80 -0.19 CVS Health CVS 69.00 0.47 POSCO PKX 73.04 0.06 ActivisionBliz ATVI 65.33 -0.16 IcahnEnterprises IEP 55.94 0.75
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AEP AEP 74.01 -0.40 CampbellSoup CPB 47.53 0.16 PVH PVH 127.91 1.10 AlexionPharm ALXN 116.06 -3.60 Incyte INCY 107.96 -5.29
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CME Group CME 136.14
CSX CSX 50.15
-1.03
-0.28
LogMeIn
lululemon
LOGM 123.70 2.65
LULU 61.49 -0.02
NYSE AMER
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Avalonbay AVB 183.40 2.07 CimarexEnergy XEC 121.21 4.28 s PulteGroup PHM 30.41 0.18 s CadenceDesign CDNS 43.01 -0.15 MKS Instrum MKSI 105.60 -3.05 CheniereEnergy LNG 47.55 0.81
ForestCIty A FCE.A 24.96 0.33 LincolnNational LNC 75.56 -0.22 TransUnion TRU 53.48 0.99
Avangrid AGR 51.27 -0.46 Citigroup C 74.03 0.53 LionsGate A LGF.A 29.25 0.23 QuantaServices PWR 37.34 -0.39 Travelers TRV 133.47 Carlyle CG 22.10 0.05 MarketAxess MKTX 175.73 1.73 CheniereEnerPtrs CQP 28.20 0.21
Fortis FTS 36.69 -0.14 1.02
s AveryDennison AVY 107.03 CitizensFin CFG 38.37 0.36 s TurkcellIletism TKC s CboeGlobalMkts CBOE 112.63 -0.43 s Marriott MAR 120.16 0.68 CheniereEnHldgs CQH 25.38 0.34
0.86 Fortive FTV 72.86 0.60 LionsGate B LGF.B 27.84 0.18 Qudian QD 27.05 2.15 9.77 0.38
AxaltaCoating AXTA 33.42 0.17 Clorox CLX 128.02 1.49 s LiveNationEnt LYV 42.47 -1.31 QuestDiag DGX 93.10 -0.68 TurquoiseHill TRQ 3.09 0.02
Celgene CELG 100.53 -0.44 MarvellTech MRVL 18.29 -0.18 ImperialOil IMO 32.23 -0.15
FortBrandsHome FBHS 65.20 -0.86
s BB&T BBT 49.55 0.31 Coca-Cola KO 45.80 -0.18 Franco-Nevada FNV 79.82 0.38 LloydsBanking LYG 3.70 0.01 s QuintilesIMS Q 108.43 0.33 Twitter TWTR 20.61 -0.01
BCE BCE 46.25 0.09 Coca-Cola Euro CCE 40.40 -0.46 FranklinRscs BEN 42.41 0.28 LockheedMartin LMT 306.60 -1.56 RELX RENX 22.33 -0.27 TylerTech TYL 175.72 -1.57
BHPBilliton BHP 42.03 1.05 Coca-Cola Femsa KOF 67.50 -0.94 Freeport-McMoRan FCX 14.38 0.40 s Loews L 49.54 0.03 RELX RELX 23.07 -0.32 s TysonFoods TSN 73.31 0.40 IPO Scorecard
BHPBilliton BBL 37.14 0.82 Colgate-Palmolive CL 70.56 0.11 FreseniusMed FMS 48.49 0.11 Lowe's LOW 79.92 -0.03 RPM RPM 52.86 -0.47 UBS Group UBS 16.90 -0.11
s BP BP 40.76 0.09 ColonyNorthStar CLNS 12.34 0.06 GGP GGP 19.44 -0.02 LyondellBasell LYB 103.43 -0.10 RalphLauren RL 89.45 0.02 UDR UDR 39.10 0.31 Performance of IPOs, most-recent listed first
BRF BRFS 13.38 -0.09 Comerica CMA 78.45 -0.12 s Gallagher AJG 63.60 0.27 M&T Bank MTB 167.28 0.51 RaymondJames RJF 83.81 -0.97 UGI UGI 47.86 ... % Chg From % Chg From
BT Group BT 17.55 0.04 SABESP SBS 9.27 0.15 Gap GPS 25.98 -0.01 MGM Resorts MGM 30.82 -0.53 Raytheon RTN 180.26 0.06 US Foods USFD 27.49 0.21 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day
BWX Tech BWXT 60.36 0.44 ConagraBrands CAG 34.13 -0.03 Gartner IT 125.60 0.29 MPLX MPLX 35.28 0.02 RealtyIncome O 53.93 0.26 UltraparPart UGP 23.48 -0.41 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
BakerHughes BHGE 31.85 0.42 ConchoRscs CXO 140.26 6.05 Gazit-Globe GZT 9.46 0.04 MSCI MSCI 117.59 0.23 RedHat RHT 121.26 0.43 Unilever UN 57.56 -0.40
s Ball BLL 42.70 -0.23 ConocoPhillips COP 52.10 0.95 GeneralDynamics GD 201.62 -1.36 Macerich MAC 54.97 0.37 RegencyCtrs REG 62.12 0.57 Unilever UL 56.18 -0.47
Loma Negra 21.35 12.4 ... Sea Ltd. 15.43 2.9 –5.1
BancoBilbaoViz BBVA 8.69 -0.05 s ConEd ED 85.80 -0.25 t GeneralElec GE 20.02 -0.14 MacquarieInfr MIC 70.07 0.52 RegionsFin RF 15.56 0.08 UnionPacific UNP 117.00 1.21 LOMA Nov. 1/$19.00 SE Oct. 20/$15.00
BancodeChile BCH 91.30 -0.82 s ConstBrands A STZ 216.00 -3.09 GeneralMills GIS 52.03 0.11 Macy's M 18.95 0.19 ReinsuranceGrp RGA 150.50 1.12 UnitedContinental UAL 58.64 0.16 Altair Engineering 18.31 40.8 ... MongoDB 29.80 24.2 –7.1
BancoMacro BMA 120.70 -5.22 ContinentalRscs CLR 41.74 1.03 GeneralMotors GM 43.13 0.15 MagellanMid MMP 68.27 0.46 RepublicServices RSG 64.55 -0.52 UnitedMicro UMC 2.58 -0.02 ALTR Nov. 1/$13.00 MDB Oct. 19/$24.00
BcoSantChile BSAC 30.96 -0.32 Cooper COO 233.97 -6.29 Genpact G 30.22 -0.23 MagnaIntl MGA 55.13 0.58 ResMed RMD 85.77 1.59 UPS B UPS 117.46 -0.07
BancoSantander SAN 6.77 0.03 Corning GLW 31.63 0.32 GenuineParts GPC 87.43 -0.80 Manpower MAN 123.84 0.56 RestaurantBrands QSR 64.66 0.07 UnitedRentals URI 143.67 2.19 Ablynx 21.00 20.0 –6.7 Mosaic Acquisition 10.14 1.4 –0.1
BanColombia CIB 37.74 -0.01 Coty COTY 15.31 -0.09 Gerdau GGB 3.22 -0.09 ManulifeFin MFC 20.42 0.32 RiceEnergy RICE 28.21 -0.14 US Bancorp USB 54.48 0.10 ABLX Oct. 25/$17.50 MOSC.U Oct. 19/$10.00
BankofAmerica BAC 27.53 0.14 Credicorp BAP 208.60 -0.84 Gildan GIL 29.30 -1.30 MarathonOil MRO 14.87 0.65 RioTinto RIO 49.03 1.10 US Steel X 27.30 1.98
BankofMontreal BMO 76.68 0.07 CreditSuisse CS 15.61 -0.11 GlaxoSmithKline GSK 36.20 s MarathonPetrol MPC 60.89 1.15 RobertHalf RHI 51.55 -0.22 UnitedTech UTX 120.12 0.36
FAT Brands 10.75 –10.4 –5.0 Qudian 27.05 12.7 –7.3
-0.23
BankNY Mellon BK 51.65 0.20 CrestwoodEquity CEQP 25.20 0.20 s GlobalPayments GPN 102.55 -1.40 Markel MKL 1080.07 -4.23 Rockwell ROK 195.16 -5.66 UnitedHealth UNH 209.53 -0.69 FAT Oct. 23/$12.00 QD Oct. 18/$24.00
BkNovaScotia BNS 64.59 0.07 CrownCastle CCI 105.14 -1.94 s GoDaddy GDDY 46.83 0.13 Marsh&McLennan MMC 82.42 1.49 s RockwellCollins COL 135.85 0.25 UniversalHealthB UHS 102.12 -0.58
Barclays BCS 9.69 -0.15 CrownHoldings CCK 60.57 0.40 Goldcorp GG 13.17 0.11 MartinMarietta MLM 217.30 0.45 RogersComm B RCI 51.68 -0.22 UnumGroup UNM 52.00 -0.04 RISE Edu 12.92 –10.9 –22.2 OptiNose 19.71 23.2 3.7
Bard CR BCR 326.78 -0.29 Cullen/Frost CFR 98.74 0.24 GoldmanSachs GS 244.26 1.78 Masco MAS 39.37 -0.45 Rollins ROL 43.70 -0.21 VEREIT VER 7.87 -0.02 REDU Oct. 20/$14.50 OPTN Oct. 13/$16.00
BarrickGold ABX 14.22 -0.23 s Cummins CMI 172.83 -4.05 Graco GGG 130.49 -1.30 Mastercard MA 148.89 0.12 RoperTech ROP 258.21 0.04 VF VFC 70.15 0.50
BaxterIntl BAX 64.20 -0.27 DTE Energy DTE 110.28 -0.18 Grainger GWW 195.58 -2.12 McCormick MKC 99.85 0.32 RoyalBkCanada RY 78.31 0.16 s Visa V 111.07 1.09 Sources: WSJ Market Data Group; FactSet Research Systems

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
Intl Stk 46.76 +0.23 22.7 GrowCoK 181.69 -0.49 33.0 IntlEq NA ... NA DevMktY NA ... NA Growth r 35.51 -0.13 24.0 SmCapAdml 68.51 -0.24 11.9 TgtRe2050 35.79 +0.05 17.8
Explanatory Notes Data provided by Stock 202.15 +0.38 12.8 InvGB 7.93 ... 3.6 Invesco Funds A IntGrowY 43.41 +0.08 25.2 Principal Investors STBondAdml 10.43 -0.01 1.4 TgtRetInc 13.58 +0.01 7.3
DoubleLine Funds InvGrBd 11.29 +0.01 4.0 EqIncA 11.27 +0.03 7.9 Parnassus Fds DivIntlInst 13.99 +0.06 27.2 STIGradeAdml 10.68 -0.01 2.2 TotIntBdIxInv 10.96 ... 2.0
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of TotRetBdI 10.67 ... 3.6 LowP r 52.63 -0.11 14.8 John Hancock Class 1 ParnEqFd 44.03 +0.16 13.0 Prudential Cl Z & I TotBdAdml 10.77 ... 3.3 WellsI 26.95 +0.05 8.1
at least $500 million each. NAV is net asset value. Percentage performance figures Edgewood Growth Instituti LowPriStkK r 52.59 -0.11 14.9 LSBalncd 15.96 +0.01 13.0 PIMCO Fds Instl TRBdZ 14.54 +0.01 5.8 TotIntBdIdxAdm 21.91 ... 2.0 Welltn 42.76 +0.09 11.5
are total returns, assuming reinvestment of all distributions and after subtracting EdgewoodGrInst 29.40 +0.05 32.4 MagIn 105.68 +0.08 22.5 LSGwth 17.13 +0.01 16.5 AllAsset NA ... NA Schwab Funds TotIntlAdmIdx r 30.04 +0.09 24.3 WndsrII 38.94 +0.13 11.9
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. Federated Instl OTC 108.05 -0.17 35.6 John Hancock Instl TotRt NA ... NA S&P Sel 40.29 +0.06 17.1 TotStAdml 64.46 +0.04 16.5 VANGUARD INDEX FDS
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date StraValDivIS 6.36 -0.01 10.7 Puritn 23.18 +0.03 16.2 DispValMCI 23.97 +0.01 11.6 PIMCO Funds A TIAA/CREF Funds 500 238.34 +0.38 17.0
TxMIn r 14.22 +0.03 23.5
return. 3-YR%RET is trailing three-year return annualized. Fidelity SrsEmrgMkt 21.55 +0.20 37.3 JPMorgan Funds IncomeFd NA ... NA EqIdxInst 19.32 +0.01 16.5 ValAdml ExtndIstPl 202.61 -0.72 13.9
39.76 +0.11 11.8
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e 500IdxInst 90.28 +0.15 17.1 SrsGroCoRetail 17.85 -0.05 33.6 MdCpVal L 39.89 +0.01 9.6 PIMCO Funds D IntlEqIdxInst 20.34 +0.02 22.9 WdsrllAdml 69.11 +0.23 12.0 SmValAdml 55.24 -0.13 7.6
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 500IdxInstPrem 90.27 +0.14 17.1 SrsIntlGrw 16.24 +0.02 26.9 JPMorgan R Class IncomeFd NA ... NA Tweedy Browne Fds WellsIAdml 65.29 +0.12 8.1 TotBd2 10.73 ... 3.2
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r 500IdxPrem 90.27 +0.14 17.1 SrsIntlVal 10.89 +0.03 18.9 CoreBond 11.64 +0.01 3.6 PIMCO Funds Instl GblValue 28.46 +0.04 13.7 WelltnAdml 73.85 +0.16 11.6 TotIntl 17.96 +0.05 24.3
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not ExtMktIdxPrem r 62.49 -0.23 13.9 TotalBond 10.68 +0.01 3.9 Lazard Instl IncomeFd NA ... NA VANGUARD ADMIRAL WndsrAdml 79.12 +0.24 15.2 TotSt 64.44 +0.05 16.4
available due to incomplete price, performance or cost data. NE-Not released by Lipper; IntlIdxPrem r 43.36 +0.08 22.8 Fidelity Selects EmgMktEq 19.69 +0.11 24.0 PIMCO Funds P 500Adml 238.37 +0.38 17.1 VANGUARD FDS VANGUARD INSTL FDS
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. SAIUSLgCpIndxFd 13.84 +0.02 17.1 Biotech r 216.85 -2.19 24.6 Loomis Sayles Fds IncomeP NA ... NA BalAdml 34.05 +0.02 11.1 BalInst 34.05 +0.02 11.1
DivdGro 26.21 +0.04 13.6
TMktIdxF r 74.85 +0.05 16.5 First Eagle Funds LSBondI 14.17 +0.02 6.9 Price Funds CAITAdml 11.80 -0.01 4.6 DevMktsIndInst 14.24 +0.04 23.6
HlthCare r 210.24 +0.03 17.0
TMktIdxPrem 74.84 +0.05 16.5 GlbA 60.52 +0.05 11.5 Lord Abbett A BlChip NA ... NA CapOpAdml r154.61 -0.07 24.4 DevMktsInxInst 22.26 +0.06 23.6
Wednesday, November 1, 2017 ShtDurIncmA p NA INSTTRF2020 22.53 +0.02 11.9
USBdIdxInstPrem 11.61 +0.01 3.2 FPA Funds ... NA CapApp NA ... NA EMAdmr 37.14 +0.15 27.2 ExtndInst 82.10 -0.29 13.9
Net YTD Net YTD Net YTD INSTTRF2025 22.80 +0.03 13.4
Fidelity Advisor I FPACres 35.27 +0.03 9.4 Lord Abbett F EqInc NA ... NA EqIncAdml 76.27 +0.24 13.8 GrwthInst 70.31 +0.01 23.8
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret ShtDurIncm NA ... NA EqIndex INSTTRF2030 22.99 +0.03 14.7
NwInsghtI 33.46 +0.05 25.3 FrankTemp/Frank Adv NA ... NA ExtndAdml 82.10 -0.29 13.9 InPrSeIn 10.49 ... 2.0
American Century Inv NwWrldA 66.59 +0.30 29.4 5GlbFxdInc 11.03 ... 2.3 Fidelity Freedom IncomeAdv NA ... NA Metropolitan West Growth NA ... NA GNMAAdml 10.51 ... 2.0 INSTTRF2035 23.19 +0.03 15.9
InstIdx 235.18 +0.38 17.1
Ultra 44.68 +0.09 28.1 SmCpA p 56.50 -0.01 22.9 EmgMktVa 30.51 +0.19 29.2 FF2020 16.73 +0.03 13.4 FrankTemp/Franklin A TotRetBd 10.66 ... 2.8 HelSci NA ... NA GrwthAdml 70.30 +0.01 23.8 INSTTRF2040 23.38 +0.03 17.3 InstPlus 235.19 +0.37 17.1
American Funds Cl A TxExA p 13.00 +0.01 4.7 EmMktCorEq 22.51 +0.13 31.6 FF2025 14.48 +0.03 14.4 CA TF A p 7.43 -0.02 4.9 TotRetBdI 10.66 ... 3.0 InstlCapG NA ... NA HlthCareAdml r 88.69 +0.01 17.0 INSTTRF2045 23.52 +0.03 17.8 InstTStPlus 57.82 +0.04 16.5
AmcpA p 31.83 +0.07 18.6 WshA p 45.45 +0.09 15.2 IntlCoreEq 14.27 +0.04 24.6 FF2030 18.13 +0.03 16.8 Fed TF A p 11.94 -0.04 2.9 TRBdPlan 10.03 ... 3.1 IntlStk NA ... NA HYCorAdml r 5.97 ... 7.1 IntlVal 39.43 +0.17 24.2 MidCpInst 40.74 -0.06 14.4
AMutlA p 41.06 +0.09 13.1 Baird Funds IntlVal 20.03 +0.09 22.3 Freedom2020 K 16.73 +0.03 NS IncomeA p NA ... NA MFS Funds Class I IntlValEq NA ... NA InfProAd 25.76 +0.02 2.0 LifeGro 33.15 +0.04 16.0 MidCpIstPl 200.94 -0.30 14.4
BalA p 27.48 +0.04 12.4 AggBdInst 10.89 ... 3.9 IntSmCo 21.56 +0.04 26.0 Freedom2025 K 14.48 +0.03 NS RisDv A p NA ... NA ValueI 40.74 +0.05 13.7 MCapGro NA ... NA IntlGrAdml 94.69 -0.04 40.6 LifeMod 26.93 +0.03 12.6 SmCapInst 68.51 -0.24 11.9
BondA p 12.95 ... 3.3 CorBdInst 11.25 ... 4.3 IntSmVa 23.56 +0.05 24.6 Freedom2030 K 18.14 +0.03 NS FrankTemp/Franklin C MFS Funds Instl MCapVal NA ... NA ITBondAdml 11.43 ... 3.9 PrmcpCor 26.83 +0.04 21.0 STIGradeInst 10.68 -0.01 2.3
CapIBA p 62.84 +0.03 11.7 BlackRock Funds A US CoreEq1 22.01 ... 15.6 Freedom2035 K 15.22 +0.03 NS Income C t NA ... NA IntlEq 25.44 +0.01 25.6 N Horiz NA ... NA ITIGradeAdml 9.82 ... 4.3 SelValu r 33.17 +0.02 15.3 TotBdInst 10.77 ... 3.3
CapWGrA 52.47 +0.21 21.6 GlblAlloc p 20.29 +0.02 11.6 US CoreEq2 20.90 ... 13.6 Freedom2040 K 10.69 +0.02 NS FrankTemp/Temp A Mutual Series N Inc NA ... NA LTGradeAdml 10.63 +0.02 9.4 STAR 27.18 +0.03 15.6 TotBdInst2 10.73 ... 3.2
EupacA p 57.46 +0.31 30.0 BlackRock Funds Inst US Small 36.25 -0.23 7.9 Fidelity Invest GlBond A p NA ... NA GlbDiscA NA ... NA OverS SF r NA ... NA MidCpAdml 184.44 -0.27 14.3 STIGrade 10.68 -0.01 2.2 TotBdInstPl 10.77 ... 3.3
FdInvA p 63.67 +0.08 19.2 EqtyDivd 23.06 +0.06 13.0 US SmCpVal 38.90 -0.17 4.5 Balanc 23.67 +0.02 14.1 Growth A p NA ... NA Oakmark Funds Invest R2020 NA ... NA MuHYAdml 11.37 ... 6.6 TgtRe2015 15.92 +0.01 9.7 TotIntBdIdxInst 32.88 ... 2.0
GwthA p 51.54 +0.11 22.6 GlblAlloc 20.42 +0.03 11.9 US TgdVal 25.06 -0.10 5.2 BluCh 87.29 -0.13 32.3 FrankTemp/Temp Adv EqtyInc r 33.92 +0.04 11.5 R2025 NA ... NA MuIntAdml 14.17 ... 4.4 TgtRe2020 31.61 +0.03 11.9 TotIntlInstIdx r120.13 +0.36 24.4
HI TrA p 10.48 ... 6.8 HiYldBd 7.86 +0.01 7.9 USLgVa 39.01 +0.17 12.8 Contra 127.05 +0.12 29.9 GlBondAdv p NA ... NA Oakmark 84.83 +0.12 17.0 R2030 NA ... NA MuLTAdml 11.65 ... 5.5 TgtRe2025 18.53 +0.02 13.3 TotItlInstPlId r120.15 +0.36 24.4
ICAA p 41.22 +0.13 15.1 StratIncOpptyIns 9.97 ... 4.3 Dodge & Cox ContraK 127.05 +0.12 30.0 Harbor Funds OakmrkInt 29.11 +0.06 28.2 R2035 NA ... NA MuLtdAdml 10.96 -0.01 2.5 TgtRe2030 33.47 +0.03 14.6 TotStInst 64.47 +0.04 16.5
IncoA p 23.47 +0.02 10.7 Bridge Builder Trust Balanced 109.28 +0.16 9.2 CpInc r 10.34 ... 11.1 CapApInst 75.49 +0.17 33.3 Old Westbury Fds R2040 NA ... NA MuShtAdml 15.78 -0.01 1.3 TgtRe2035 20.56 +0.02 15.9 ValueInst 39.76 +0.11 11.8
N PerA p 45.09 +0.05 27.6 CoreBond 10.20 +0.01 3.9 GblStock 14.01 +0.06 17.6 DivIntl 41.46 +0.07 24.5 IntlInst r 69.95 +0.05 19.8 LrgCpStr 14.87 +0.02 15.9 Value NA ... NA PrmcpAdml r135.26 +0.33 24.3 TgtRe2040 35.41 +0.04 17.2 Western Asset
NEcoA p 47.53 +0.18 32.2 Dimensional Fds Income 13.83 ... 4.0 GroCo 181.73 -0.50 32.9 Harding Loevner Oppenheimer Y PRIMECAP Odyssey Fds REITAdml r 117.08 +0.52 2.9 TgtRe2045 22.25 +0.04 17.8 CorePlusBdI NA ... NA

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg

Continued From Page B8 52-Wk % 52-Wk % DirexMcBear3 MIDZ 14.90 1.4 Cresud CRESY 22.45 2.4 GlbXSocialMedia SOCL 33.20 0.5 Nathan's NATH 81.76 -1.1 TakeTwoSoftware TTWO 111.11 -0.1 DianaContainer DCIX 0.29 -6.3
52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg DirexS&P500Br3 SPXS
DirexS&P500Br1 SPDN 31.76
33.41 -0.4
-0.2
NYSE American lows - 10 DataIO
DavisFinl
DAIO
DFNL
13.48
23.40
0.5
...
H&E Equipment HEES
Hardinge HDNG
33.80
16.84
...
-0.2
NationalVision EYE
NewaterTech NEWA
30.98
14.96
5.5
5.6
Talend
TowerSemi
TLND
TSEM
42.50
33.36
1.5
-0.8
DragonVictory LYL
Egalet EGLT
5.16 -21.3
0.92 -4.2
Stock Sym Hi/Lo Chg SPDR MSCI exUS CWI 38.84 0.3 VangdTotalStk VTI 133.03 0.1 DirexSemiBear3 SOXS 15.83 1.0 AcmeUnited ACU 20.20 -0.9 DavisUSEquity DUSA 22.77 0.3 HeritageCommerce HTBK 15.55 -0.3 NuvNasd100Dyn QQQX 23.66 -0.1 2U TWOU 64.23 -2.9 ElevenBiotherap EBIO 0.69 -22.1
SPDREmMktSmlCp EWX 51.16 0.1 VangdTotlWrld VT 72.64 0.2 DirexTechBear3 TECS 7.24 -0.1 AsteriasBiotherap AST 2.40 -4.0 UniversalForest UFPI 113.70 0.4
ProShrUltraQQQ QLD 70.71 ... DavisWorldwide DWLD 25.40 0.5 HorizDAXGermany DAX 31.85 0.8 NVIDIA NVDA 209.97 0.2 Evogene EVGN 4.13 -0.9
SPDR S&PMdCpTr MDY 335.67 -0.3 WisdTrCBOES&P500 PUTW 29.68 0.1 FrankShtDurUSGovt FTSD 96.08 0.1 BioPharmX BPMX 0.16 -3.7 UTStarcom UTSI 3.21 ...
ProShrUltraS&P SSO 102.12 0.3 Ebix EBIX 68.30 -0.6 HorizNasd100 QYLD 24.42 0.2 ON Semi ON 21.77 -0.7 FTD FTD 10.49 -1.7
SPDR S&P 500 SPY 258.43 0.1 WisdTrEMxSOE XSOE 30.99 0.7 Inspire100ETF BIBL 25.05 -0.1 BioTimeWt BTX.WS 0.11 -12.9 VangdRuss1000 VONE 118.75 0.1
ProShrUlSemi USD 126.12 0.3 eHealth EHTH 28.59 9.6 IAC/InterActive IAC 130.86 -0.5 Orbotech ORBK 47.62 3.9 Fred's FRED 4.36 2.0
SPDR SP EmAsPac GMF 104.21 0.5 WisdTrEuropeHdgSM EUSC 31.47 0.5 NuShEnhYd1-5Y NUSA 24.94 ... Biotime BTX 2.29 -3.7 VangdRuss1000Grw VONG 133.88 -0.1
ProShrUlTech ROM 88.45 -0.6 ElectroScientific ESIO 18.20 -8.8 ILG ILG 30.06 -0.1 Overstock OSTK 48.25 0.5 FrontierComm FTR 8.82 -26.8
SPDR S&P Home XHB 41.59 0.2 WisdTrGlbxUSDiv DXUS 27.02 0.9 ProShShtDow30 DOG 15.77 -0.3 Cel-Sci Wt CVM.WS 0.00 -52.5 VangdRuss3000 VTHR 118.72 ...
ProShUltDow30 UDOW 80.60 0.7 FS Bancorp FSBW 56.84 4.0 IQ Chaikin US SC CSML 28.08 -1.0 Paylocity PCTY 53.96 -1.7 FrontierCommPfA FTRPR 15.51 -21.9
SPDR IntlSC GWX 35.79 0.1 WisdTrGlbxUSQual DNL 58.10 -0.2 ProShShtFinls SEF 12.02 -0.1 Cohen COHN 8.84 -11.0 VangdRuss2000Grw VTWG 132.55 -0.8
ProShUltMC400 UMDD 105.65 -1.2 Facebook FB 182.90 1.4 Intel INTC 46.71 2.7 PayPal PYPL 72.99 -0.2 GenMarkDiagn GNMK 7.29 -2.0
SPDR S&P Semi XSD 71.42 -0.7 WisdTrIndiaEarn EPI 27.32 0.8 ProShShMSCI EAFE EFZ 25.83 -0.2 GoldStandrdVntr GSV 1.28 -1.5 VangdTotIntlStk VXUS 56.29 0.3
ProShUltS&P500 UPRO 126.34 0.5 FidelityNasdComp ONEQ 266.14 -0.2 InteractiveBrkrs IBKR 54.50 -0.3 PeapackGladFinl PGC 35.85 0.5 GlobalEagle ENT 2.13 -11.1
TechSelectSector XLK 63.33 ... WisdTrIntDivxFin DOO 43.38 0.4 ProShShtMSCI EM EUM 18.21 -0.6 ParamountGoldNV PZG 1.16 -0.8 VeriskAnalytics VRSK 91.34 5.7
RenaissanceIPOETF IPO 28.20 ... FifthThirdBncp FITB 29.23 0.2 iShAsia50ETF AIA 65.73 1.2 PennNational PENN 26.78 -0.1 Gulf Resources GURE 1.52 -6.5
USAACoreInterBd UITB 50.23 0.2 WisdTrIntlEquity DWM 55.23 0.1 ProShShtMC400 MYY 11.58 0.3 TelInstrElec TIK 2.40 -14.0 VicShIntlVolWtd CIL 40.11 0.1
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USAA EM ValMom UEVM 50.55 0.2 WisdTrIntlHdgQual IHDG 31.83 0.2 ProShShortQQQ PSQ 36.31 ... VicShUS500EnhVol CFO 46.85 ...
RivFrDynUSFlex RFFC 31.63 0.2 FT APxJapan FPA 35.36 1.7 iShCoreMSCITotInt IXUS 62.61 0.3 PinnacleEnt PNK 26.44 0.1 iSh1-3YTreasuryBd SHY 84.17 ...
SPDRBloomBarCvSecs CWB 51.94 0.1
USAA IntlVal UIVM
USAA USA SC Val USVM
50.89 0.6 WisdTrIntlLC Div DOL
50.37 -0.5 WisdTrIntlMC Div DIM
50.27 0.2 ProShShrtS&P500 SH
67.94 0.2 ProshUltBlmNatGas BOIL
31.29
7.10
-0.1
-0.5
Nasdaq highs - 199 FT CloudComp SKYY 44.13 -0.1 iShCoreS&PUSGrowth IUSG 52.37 ... PwrShDWA Mom PDP 50.93 -0.7 VicShUS500Vol CFA
VicShUSMultMin VSMV
46.86
26.19
-0.2
0.2
JAKKS Pacific JAKK 2.55 -5.5
SPDRGlobalDow DGT 82.55 0.6 Ansys ANSS 138.39 -0.8 FT DevIntlEquity RNDM 51.36 0.3 iShCurrHdMSCIGrmny HEWG 29.89 1.3 PwrShDWANasdMom DWAQ 102.67 -1.2 JasonIndustriesWt JASNW 0.01 ...
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VanEckIndiaSC SCIF 63.49 0.6 WisdTrUSTotalEarn EXT 92.11 ... ProShUltBloomCrd SCO 29.64 0.4 Altaba AABA 71.39 0.7 WynnResorts WYNN 153.56 2.8
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37.27 0.5 ProShrUS MSCI Jpn EWV 27.75 -0.9 Yandex YNDX 34.83 0.6
SPDRPtfSC SPSM 29.71 -0.8 VanEckVietnam VNM 16.42 2.1 XtrkrsMSCIAWxUS DBAW 28.18 0.5 ProShUltMC400 MZZ AndinaAcqnIIWt ANDAW 1.05 -2.3 FT GlbNatRscs FTRI 12.20 0.3 iShMSCIEmMkAsia EEMA 74.03 0.9 PwrShQQQ 1 QQQ 152.83 ... ProspectCapital PSEC 5.86 -2.0
19.98 -0.2
SPDR Ptf TSM SPTM 32.16 ... FT JapanAlpha FJP 58.37 1.4 iShPHLXSemicond SOXX 174.24 -0.4 PwrShS&P SmInds PSCI 62.84 -1.0 RMG Networks RMGN 1.18 -17.3
SPDRPtfWorldxUS SPDW 31.40 0.4
VangdExtMkt VXF
VangdMatrls VAW
109.29 -0.3 XtrkrsMSCIAWxUSHi HDAW 26.75 0.1 ProShrUS MSCI EM EEV
134.67 0.5 XtrkrsMSCIEAFE DBEF 32.24 0.4 ProShUltShtQQQ QID
8.78
13.98
-1.0
...
AndinaAcqnII ANDA
Apple AAPL
10.40
169.94
1.2
-1.3 FT LC GrwthAlpha FTC 59.99 -0.4 iShS&PSC600Growth IJT 167.80 -0.6 PwrShS&P InfTech PSCT 81.94 -1.4 Nasdaq lows - 66 SearsHoldings SHLD 5.03 -6.9
SPDRMomentumTilt MMTM 111.12 0.1 VangdInfoTech VGT 164.11 ... XtrkrsMSCIHiDiv HDEF 25.40 0.5 ProShUltShtS&P500 SDS AppliedMaterials AMAT 57.34 -1.3 FT MC CoreAlpha FNX 63.68 -0.5 JunoTherap JUNO 52.00 7.6 PwrShS&PSCMatls PSCM 51.50 -0.7 AcadiaHealthcare ACHC 29.92 -2.8 SearsHoldingsWt SHLDW 0.93 -9.2
44.15 -0.3
SPDR S&P500MidGr MDYG 153.40 -0.3 VangdCnsmrDiscr VCR 146.52 ... XtrkrsMSCIEM DBEM 24.38 0.5 ProShrUSSemi SSG ArchCapitalPfdE ACGLP 25.00 0.2 FT MC US Equity RNMC 20.98 -0.5 KLA Tencor KLAC 110.01 -3.4 PwrShWaterRscs PHO 29.45 0.1 Aceto ACET 9.54 -3.3 SonusNetworks SONS 7.05 -9.0
10.36 -1.3
SPDR S&P400MidVl MDYV 100.61 -0.2 VangdSC Val VBR 129.83 -0.2 XtrkrsMSCIEurope DBEU 29.11 0.2 ProShrUSTech REW Autodesk ADSK 126.44 -0.1 FT NasdCleanEdge QCLN 20.63 -0.8 KLX KLXI 55.97 0.8 ProShEquRising EQRR 43.74 0.5 AduroBiotech ADRO 6.01 -5.0 Stericycle SRCL 68.38 -3.0
16.83 0.6
SPDR S&P600SCpGr SLYG 232.93 -0.5 VangdSC Grwth VBK 157.18 -0.4 XtrkrsMSCIEurozone DBEZ 31.50 0.6 ProShsVIXMTFut VIXM 22.87 AxoGen AXGN 21.15 0.2 FT NasdGlblAuto CARZ 42.07 1.0 LGI Homes LGIH 61.41 1.7 ProShUltPrQQQ TQQQ 131.76 -0.1 AlcentraCapital ABDC 8.51 -5.6 SummerInfant SUMR 1.53 5.5
0.3
SPDRS&P500Fossil SPYX 62.82 0.1 VangdFTSEDevMk VEA 44.48 0.2 XtrkrsMSCIGermany DBGR 29.39 1.3 ProShsVIXSTFut VIXY BldrsAsia50ADS ADRA 34.35 1.4 FT Nasd100Tech QTEC 73.20 -0.7 LKQ LKQ 38.16 -0.7 Qualys QLYS 57.35 5.4 AppliedGenetic AGTC 3.25 4.4 SurgeryPartners SGRY 7.10 -16.2
27.81 0.5
SPDRS&PGlbNatRes GNR 47.61 0.9 VangdFTSE Pac VPL 71.91 0.8 XtrkrsMSCIJapan DBJP 43.67 1.0 SchwabSrtTRmUSTrsr SCHO 50.23 Bio-Techne TECH 132.57 -2.0 FT NasdSemicon FTXL 31.89 -0.9 LamResearch LRCX 210.45 -2.7 ROBOGlblRobotics ROBO 40.85 -0.4 Astrotech ASTC 2.66 -6.6 Teligent TLGT 5.52 -2.6
...
SPDRSSgAGlbAll GAL 37.68 0.2 VangdFTSEAWxUS VEU 54.13 0.2 XtrkrsMSCISKorea DBKO 32.34 1.7 TeucriumWheatFund WEAT BldrsDev100 ADRD 23.21 0.2 FT RBA AmerInd AIRR 27.02 -1.3 LeggMasonDev DDBI 29.61 0.4 Radware RDWR 19.18 9.1 BlackRidgeAcqn BRAC 9.52 0.1 Travelzoo TZOO 6.65 -0.7
6.13 -0.3
SPDRSSgAMultiAsset RLY 25.70 0.5 VangdGrowth VUG 137.09 ... XtrkrsRussell1000 DEUS 31.03 -0.1 UBSProSh3xInvCrd WTID 20.58 bluebirdbio BLUE 161.82 2.8 FT RiverFrDynAP RFAP 60.90 0.2 LigandPharm LGND 146.45 -0.9 Rambus RMBS 14.90 -0.3 Bojangles' BOJA 11.75 -1.2 trivago TRVG 7.23 1.2
0.4
SchwabFundEmgLrg FNDE 29.81 0.6 VangdLC VV 118.66 0.1 BoingoWireless WIFI 23.61 -0.9 FT RiverFrDynDev RFDI 64.67 0.4 LimelightNetworks LLNW 5.32 6.7 RealPage RP 44.80 1.6 BroadwindEnergy BWEN 2.64 -3.4 Tuniu TOUR 6.71 0.3
US NatGas UNG 5.86 -0.2
SchwabFundIntLrgCo FNDF
SchwabFundIntlSmCo FNDC
30.53
35.72
0.5
0.3
VangdMegaCap MGC
VangdMegaGrwth MGK
88.85 0.2
108.35 0.1
NYSE Arca lows - 49 US3xShrtOilFd USOD 15.64
VelocityShares3xLg UGAZ 8.08
0.9
-0.4
Brooks Auto
Bruker
BRKS
BRKR
34.77
31.99
-4.0
1.6
FT RiverFrDynEur RFEU
FT SKoreaAlpha FKO
65.87
28.58
0.2
1.2
MGPIngredients MGPI
MagellanHealth MGLN
68.76
92.00
-7.4
-2.1
RedRockResorts RRR
ScientificGames SGMS
25.15
48.70
0.4
0.3
BurconNutraScience BUR
Caesarstone CSTE
0.45 -9.6
25.05 -9.0
VangdSTGovBd VGSH
VeecoInstr VECO
60.50 ...
17.35 -3.3
SchwabIntEquity SCHF 34.31 0.2 VangdMCGrowth VOT 125.11 -0.4 iPathS&P500VIXST VXX 33.48 0.6 Velocity3xInvCrude DWT 18.80 0.8 CabotMicro CCMP 98.33 -1.0 Flex FLEX 18.16 1.3 ManTechIntl MANT 47.47 -1.1 SelectiveIns SIGI 60.40 -1.1 CapitalaFinance CPTA 8.24 -0.4 VS2xVIXMedTerm TVIZ 10.53 0.7
SchwabUS BrdMkt SCHB 62.55 0.1 VangdS&P500 VOO 237.39 0.2 PathS&P500VIXMT VXZ 18.88 0.4 CadenceDesign CDNS 43.62 -0.3 GDSHoldings GDS 16.97 4.9 Marriott MAR 120.92 0.6 Semtech SMTC 41.95 -1.3 Cardtronics CATM 22.20 -1.4 VS2xVIXShortTerm TVIX 8.14 1.1
SchwabUS LC SCHX
SchwabUS LC Grw SCHG
61.75
68.37
0.2
0.1
VangdS&P500 Grw VOOG
VangdS&PMC400 IVOO
133.43 ... CSAxela3xInvBrent DBRT 69.25 2.6
124.41 -0.3 DBCommodityDblLong DYY 2.11 -5.4
NYSE American highs - 4 CboeGlobalMkts CBOE
ChemungFinl CHMG
113.81
48.23
-0.4
0.3
Garmin
GilatSatellite
GRMN
GILT
60.44
7.44
5.6
4.3
McGrathRentCorp MGRC
MelcoResorts MLCO
49.66
26.53
9.9
4.9
SiliconLab SLAB
SilvercrestAsset SAMG
95.55
16.45
-1.3
-0.3
Charles&Colvard CTHR
Check-Cap CHEK
0.80 1.2
1.17 -4.7
VSVIXShortTerm VIIX
VeraBradley VRA
14.15 0.3
7.03 -1.4
SchwabUS MC SCHM 51.40 -0.2 VangdS&P400Grwth IVOG 130.49 -0.3 DirexDevMktBear3 DPK 12.93 ... CentralSecs CET 26.99 -0.1 Cimpress CMPR 110.00 0.2 GlacierBancorp GBCI 38.22 -0.3 MicronTech MU 45.33 0.2 SinovacBiotech SVA 7.30 -0.4 Cherokee CHKE 2.00 -11.1 VistaGenTherap VTGN 0.76 -9.2
SchwabUS SC SCHA 68.44 -0.5 VangdS&P600 VIOO 137.95 -0.7 DirexEM Bear3 EDZ 9.74 -1.7 Chase CCF 121.40 1.9 CiscoSystems CSCO 34.75 1.4 GlbXFinTech FINX 21.80 -0.9 MonarchCasino MCRI 45.36 1.6 SodaStream SODA 69.00 4.8 ChinaJoJoDrug CJJD 1.41 -0.7 Vivus VVUS 0.61 -6.7
SPDR DJIA Tr DIA 235.02 0.2 VangdS&P600Grwth VIOG 143.62 -1.1 DirexFinlBear3 FAZ 13.18 -0.5 LadenburgThalmann LTS 3.08 -1.3 CogentComm CCOI 54.85 -0.6 GlbXInternetThings SNSR 20.16 0.1 MonolithicPower MPWR 122.94 -0.9 SterlingCnstr STRL 18.82 0.4 Criteo CRTO 37.50 -9.6 WestmorelandCoal WLB 1.65 7.5
SPDR EurSTOXX FEZ 41.91 0.3 VangdSC VB 144.41 -0.4 DirexMexicoBl3 MEXX 21.58 -1.1 NE Realty NEN 72.70 0.9 Copart CPRT 36.76 -1.2 GlbX Robotics&AI BOTZ 23.78 0.2 NICE NICE 84.06 -1.5 SunHydraulics SNHY 57.91 ... DareBioscience DARE 2.36 -0.8 WheelerREITPfdB WHLRP 18.75 -4.8
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B12 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

BANKING & FINANCE

Why a Roth 401(k) Isn’t a Bad Option

BY ANNE TERGESEN income to a regular 401(k) charges on Medicare premi-
Lagging that earns a 7% annual re- ums kick in. Any money you
House Republicans are ex- While the number of companies turn, he will have $38,061 spend from a Roth 401(k) or
pected to unveil a tax-over- offering Roth 401(k) options has before tax in 30 years. IRA—or a health savings ac-
haul proposal this week that been climbing, the number of After paying tax at a 28% count—doesn’t count toward
may include a provision to employees opting in has rate, the investor will net your taxable income and so
cap the amount Americans remained stagnant. $27,404—the same amount it won’t cause you to pay
can contribute before taxes he would amass in a Roth af- higher premiums.
to retirement plans, such as 80% 401(k)-style plans offering ter paying a 28% upfront tax 4. You want to save more
401(k) plans. Roth contributions* on $5,000 of pretax income than the pretax maximum
With a traditional 401(k), and investing the remaining While the rules allow you
account holders generally 60 $3,600 at 7% for 30 years. to put $18,000 before taxes
get to subtract their contri- But if in retirement this into a regular 401(k)—or
JAMES COLBURN/GLOBE PHOTOS/ZUMA PRESS

butions from their income, person has to withdraw a $24,000 if you are 50 or
40
which reduces taxes in that large amount from his IRA older—you can put as much
year. Instead, they must pay 401(k) participants or 401(k) for, say, a new car as $18,000—or $24,000 if
ordinary income taxes on the 20 using a Roth account† or a child’s wedding, he can you are 50-plus—after taxes
money when they withdraw take a tax-free distribution into a Roth 401(k).
it, typically in retirement from a Roth without inflat- For someone in the 28%
when many people are in a 0 ing his taxable income and tax bracket, the IRS effec-
lower tax bracket. With a potentially subjecting him- tively has a claim on 28% of
2012 ’13 ’14 ’15 ’16
Roth 401(k), there is no up- self to a higher tax bracket. a $18,000 contribution to a
front tax deduction but the *Based on Vanguard's 401(k) regular 401(k). But it has no
record-keeping data
money in the account grows †When Roths are offered 3. You are at risk of paying claim on the $18,000 after-
tax-free. Currently, about Source: Vanguard Group higher Medicare premiums tax money in a Roth.
65% of employers give 401(k) Sen. William Roth Jr., created the Roth retirement account. THE WALL STREET JOURNAL. If your annual income ex-
participants the option to ceeds $85,000 (for singles) 5. You’re investing in the
use a Roth account, up from use a Roth 401(k) or individ- higher rate on their with- the same in retirement can or $170,000 (for couples), next Amazon
49% in 2012 according to ual retirement account, drawals. Contributions to also benefit from a Roth—or you can expect to pay sur- With a traditional 401(k)
Vanguard Group, a 401(k) rather than a traditional ver- Roth IRAs, which are similar more specifically, from the charges—of between 40% or IRA, savers who manage
administrator. But only 13% sion of those accounts. to Roth 401(k)s, are off lim- tax-free withdrawals they and 220%—on the premiums to invest early in the stock
of participants currently use its to individuals with modi- can take from these accounts you pay for Medicare Part B, of a future Amazon.com Inc.
the Roth. 1. You expect your tax fied adjusted gross incomes when distributions from a which pays for doctor visits receive a tax deduction when
While the details of the rate to rise in retirement above $133,000 a year and regular 401(k) or individual and other types of outpa- they make the investment.
tax proposal remain under The classic candidates for couples earning more than retirement account would tient care. Surcharges are Instead, once they start
wraps, one idea Republicans a Roth are those who believe $196,000, but a Roth 401(k) push them into a higher tax also imposed above the same taking withdrawals, they
have floated would require their marginal tax rates will is open to anyone whose em- bracket. income levels for Part D pre- must pay income tax on
any contributions above a be higher in retirement, a ployer offers these accounts. At first glance, contribut- scription-drug plans. their megaprofits. But be-
pretax cap—$2,400 is an of- description that fits many ing the same amount to a One way to keep a lid on cause payouts on Roths are
ten mentioned limit—to go younger workers. By paying 2. You expect your rate to Roth or a regular 401(k) will medical costs is to take steps generally tax-free, those who
into these Roth accounts. income tax on their contri- stay the same in retirement get the same result. For ex- now to keep your modified pick winners get to keep all
Here are five situations in butions now, these workers Those who expect their ample, if a 30-year-old man adjusted gross income below their profits—as some have
which it can make sense to can avoid doing so at a marginal tax rates to remain contributes $5,000 of pretax the thresholds at which sur- already shown.

FINANCE
WATCH SEC Questions Guggenheim Ties Standard
PERMIRA
BY JUSTIN BAER
AND MARGOT PATRICK
Chartered
Firm to Purchase
Duff & Phelps
Guggenheim Partners LLC
received a July letter from U.S.
Unsettles
Private-equity firm Permira
said it would buy corporate fi-
regulators that raised concerns
about its relationship
with companies connected
Investors
nance adviser Duff & Phelps for to former Barclays PLC Chief BY MARGOT PATRICK
$1.75 billion from a group that Executive Bob Diamond, people
includes Carlyle Group LP. familiar with the matter said. Standard Chartered PLC
Duff & Phelps is known The letter from the U.S. Se- shares sank Wednesday after
mainly for its valuation services. curities and Exchange Commis- the bank’s quarterly report re-
The company was a valuation sion informed Guggenheim that vealed drags on a turnaround
adviser to the examiner in the an examination found issues plan and as hopes dimmed for
bankruptcy of Lehman Brothers with the way the company dis- a dividend this year.
Holdings Inc. It also provided closed an investment in Atlas The third-quarter results
valuation advice to the U.S. Con- Mara Ltd., the African banking also missed some analysts’ ex-
gressional Oversight Commit- venture co-founded by Mr. Dia- pectations. Revenue rose 4%
LUCY NICHOLSON/REUTERS

tee’s Troubled Asset Relief Pro- mond, the people said. Mr. Dia- from the year-earlier period,
gram effort. mond is currently Atlas Mara’s but so did costs, and the bank
Duff & Phelps was taken pri- executive chairman and a 2% said margins in some of its
vate nearly five years ago for shareholder, according to fil- key markets remain under
about $665.5 million. ings. pressure.
Besides Carlyle, the other Guggenheim, an investment The stock fell more than 6%
sellers include Neuberger Ber- firm, bought Atlas Mara shares to £7.05 ($9.35) in London
man, the University of Califor- and bonds on behalf of some of Chief Investment Officer Scott Minerd has said the privately held firm is cooperating with the SEC. trading.
nia’s Office of the Chief Invest- its funds and investment-man- The Asia-focused bank has
ment Officer of the Regents and agement clients. It advised two Through a spokesman, Atlas over whether Guggenheim had hire an independent compli- been exiting businesses, un-
Pictet & Cie. of those clients, which are both Mara, Atlas Merchant and Mr. properly disclosed the invest- ance consultant. loading assets and resetting
Permira partner Nic Volpi said insurance companies owned by Diamond declined to comment. ments in companies tied to Mr. Guggenheim first bought its culture after earlier rapid
demand for business counseling a Guggenheim shareholder, The companies and Mr. Dia- Diamond were brought to the shares in Atlas Mara on behalf growth left it with sprawling
has increased since the financial to invest in Mr. Diamond’s sep- mond haven’t been accused of regulator’s attention by a for- of investment-management cli- operations and piles of bad
crisis. “Duff & Phelps is uniquely arate private-equity business, any wrongdoing. The focus of mer employee, people familiar ents in December 2013, ac- loans. Uncertainty around the
positioned to meet this demand Atlas Merchant Capital LLC, the SEC examination is with the matter said. cording to filings. Some pace of the turnaround has
as one of the only firms offering and arranged the investments Guggenheim, the people said. Guggenheim officials have Guggenheim funds later bought caused its share price to lag
a full suite of advisory and con- on their behalf, according to There is no indication Mr. Dia- explained to the SEC why they convertible bonds issued by At- behind rivals. Previously, some
sulting services,” Mr. Volpi said. filings and people familiar with mond is part of any SEC re- handled the transactions the las Mara, according to fund fil- targets set by Chief Executive
—Imani Moise the matter. view. way they did, and are awaiting ings. Bill Winters and Chief Finan-
The SEC questioned why The July letter, which hasn’t a reply from the SEC, accord- Mr. Minerd, Guggenheim’s cial Officer Andy Halford in
HONG KONG IPO Guggenheim didn’t deem Atlas ing to people familiar with the chief investment officer, previ- late 2015 had to be revised.
Mara an affiliate, said people matter. ously worked for Mr. Diamond Mr. Halford on Wednesday
Tencent Unit Draws familiar with the letter. In September, Guggenheim in the 1990s at Credit Suisse didn’t rule out paying a divi-
The SEC has asked
Crowd of Investors The company’s investment- Chief Investment Officer Scott First Boston. dend this year, saying the bank
adviser unit, Guggenheim Part- why Guggenheim Minerd told CNBC that the SEC In 2014 and 2015, Guggen- would decide at year-end.
Orders for the Hong Kong ners Investment Management, had initiated an examination of heim Partners lined up invest- Standard Chartered started re-
IPO of China Literature, a unit of is a 7.87% shareholder in Atlas
didn’t deem Atlas Guggenheim and said the firm ments for two insurance cli- ducing, then suspended, divi-
internet company Tencent Hold- Mara, according to a Septem- Mara an affiliate. was cooperating. ents into Atlas Merchant dends in 2015 when it an-
ings Ltd., have topped $100 bil- ber filing by Guggenheim. The regulator’s examiners Capital’s management company nounced overhaul plans.
lion. Federal securities laws place have discussed the information and its maiden fund. The insur- Mr. Halford said that the
Institutional investors have limitations on SEC-registered with the agency’s enforcement ers committed more than $200 bank is investing in technology
ordered more than 50 times investment companies doing previously been reported, is staff, the Journal reported in million, according to filings and automation for retail
their allotted shares, while indi- business with affiliates, defined part of the SEC’s re- September. Guggenheim hasn’t and people familiar with the banking, and that other spend-
vidual investors are oversub- as being at least 5%-owned by newed scrutiny of Guggenheim, been accused of wrongdoing, matter. These insurers are ing to attract wealth-manage-
scribed some 620 times. The the investment company. There a privately held firm that man- and it is unclear if the enforce- owned by Sammons Enter- ment and corporate clients
company had expected to raise are also disclosure require- ages more than $295 billion ment unit will pursue an inves- prises Inc., a roughly 35% should pay off longer term.
$1.1 billion next week. ments around stock and bond for insurance companies, pen- tigation. shareholder of Guggenheim For analysts, one sore point
China Literature, which oper- sales involving related parties. sion funds, retirees and other Two years ago, Guggenheim Partners. Atlas Merchant Capi- in the results was a reduction
ates an online library and has The laws were put in place in investors. settled SEC claims it had failed tal has reported in filings to in the bank’s capital position
nearly 200 million monthly ac- response to widespread self- The Wall Street Journal re- to disclose a conflict of interest the SEC that substantially all of due to a change in the way it
tive users, makes money when dealing by investment firms in ported in September that the involving a loan that one of its its initial capital came from calculates possible losses on
users pay to access books after the 1920s. They are meant to SEC was looking at certain executives took from a client. U.S. insurance companies. exposure to certain financial
reading the first few chapters guard against transactions transactions by Guggenheim, That agreement required A Sammons spokesman institutions. The changes to its
free. with affiliates that might dis- including those with Mr. Dia- Guggenheim, which didn’t ad- said he couldn’t immediately risk models, which require
—Saumya Vaishampayan advantage other clients. mond’s companies. Concerns mit or deny wrongdoing, to comment. Standard Chartered to be more
conservative about how much
money it could lose from those

Apollo’s Profit Surges on Investment Gains, Fees exposures, were made after
discussions with the U.K. banks
regulator. Further changes to
its models on some corporate
BY CARA LOMBARDO $1.07 a share, from $230.8 rose 4%. quarter, up from 35 cents a from its ninth buyout fund to exposures will be made next
AND MIRIAM GOTTFRIED million, or 58 cents a share, a Apollo and other private- year earlier. lift revenue. Executives said year, Standard Chartered said.
year ago. The latest result equity firms have attracted While the value of the com- Apollo will likely invest most Capital will also be slightly
Apollo Global Management handily topped the 61 cent av- new assets at a faster pace in panies in Apollo’s eighth fund of that into its credit busi- reduced from next year by a
LLC’s profit more than dou- erage estimate of analysts in a recent years as investors seek has climbed, the firm is still in ness, possibly by creating a major accounting rule change,
bled in its latest quarter, FactSet poll. alternatives to pricey stocks the early stages of realizing middle-market lending opera- the bank said. Under IFRS9,
driven by investment gains Apollo’s private-equity and bonds. The company in re- that value by selling assets. tion in Europe, building an as- banks must continually make
and a significant increase in holdings rose 7.3% in the pe- cent months secured $24.7 bil- Apollo reported $1.7 billion of set-based financing business, provisions for expected losses
the fees tied to the perfor- riod, driven primarily by ap- lion for its ninth flagship pri- realizations in the quarter, lending to insurance compa- on their loans, instead of only
mance of its funds. preciation of the private port- vate-equity fund, the largest with $384 million coming nies or financial institutions when there are actual or im-
The New York private-eq- folio company holdings of its buyout fund ever raised. from private equity. or expanding its presence in minent losses.
uity firm reported profit of eighth flagship fund. Among Apollo’s distributable earn- Apollo’s assets under man- emerging markets. Apollo Despite such headwinds,
$198.6 million, or $1 a share, its peers, Carlyle Group LP’s ings, a measure of cash profits agement rose to $241.6 billion may also move deeper into in- Standard Chartered said pre-
up from $94.6 million, or 50 private-equity funds rose 4% available for payout to share- from $188.6 billion at the end frastructure and real-estate tax profit in the third quarter
cents a share, a year earlier. in the third quarter, and KKR holders, rose to 42 cents a of the year-ago quarter. Fee- investing. more than doubled, to $774
Economic net income, a & Co.’s gained 3.9%. Black- share from 36 cents a share in generating assets under man- Shares of Apollo, which are million from $317 million. The
closely watched measure of stone Group LP’s buyout the year-earlier period. The agement rose to $166.3 billion up 68% so far this year, rose rise was mainly because of a
unrealized investment gains, funds appreciated 3.3% during firm said it would pay a 39- from $148.7 billion. 2.3% in afternoon trading decrease in bad loans and
rose to $431.6 million, or the period. The S&P 500 index cent dividend for the third The firm is expecting fees Wednesday. lower restructuring costs.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Banks Bullish on Oil
As Production Cuts
Keep Lid on Supply
BY GEORGI KANTCHEV
Banks raised their oil-price
forecasts for the first time in
six months in October amid
signs that production cuts by
major suppliers are helping to
rebalance
COMMODITIES the market.
A poll of
14 invest-
ment banks by The Wall Street
Journal found a consensus es-
timate that Brent crude, the
international benchmark, will
average $54 a barrel next year,
up $1 from the September sur-
vey. The banks expect West
Texas Intermediate, the
U.S. oil gauge, to average $51 a
barrel in 2018, also up a dollar
from the previous survey.
The Organization of the Pe-
troleum Exporting Countries,
in concert with other big pro-
ducers, has limited its produc-
tion this year as part of a deal
to support the market.
$1
Polled analysts lifted per-barrel
price estimates by this much
OPEC and its allies are due to
meet at the end of this month
in Vienna to discuss an exten-
sion of their deal, which is due
to expire in March.
Last week, Brent crude
topped $60 a barrel for the
first time in more than two
years after Saudi Ara-
bia and Russia expressed sup-
port for an extension of the
deal.
On Wednesday, Brent crude
settled at $60.49 a barrel,
down 0.7%, and WTI settled
at $54.30 a barrel, down 0.1%.
“Fundamentals are improv-
ing, demand is ro-
bust and OPEC compliance
with cuts is high,” said Jason
Gammel, analyst at Jefferies,
one of the firms in the survey.
“We expect the group and its
non-OPEC partners to extend
production cuts through
end-2018.”
The higher-than-expected
compliance with the deal has
been a major factor behind the
Some Bank on ‘One and Done’ U.K. Rate Rise
BY JON SINDREU
Investors are certain the
Bank of England will raise
rates Thursday. They also
seem certain the central bank
won’t do it again for a long
time. That means there is a
potential for surprises to
shake U.K. markets.
Derivatives markets assign
an 85% probability to U.K. offi-
cials’ raising interest rates this
week for the first time in a de-
cade. Over the past two
months, the
CURRENCIES pound has
gained 2.5%
and 4.3%
against the U.S. dollar and the
euro, respectively, fueled by
hints from BOE officials that
monetary policy is set to be
tightened.
Likewise, yields on 10-year
U.K. government bonds in the
period have risen to 1.333%
from 1.060%.
Key for the U.K. currency
and bonds now is whether a
BOE rate rise would be read
as the start of a tightening
cycle.
“That’s the crux of the mat-
ter, is it ‘one and done’ or
there’s more to come?” said
David Katimbo-Mugwanya, a
fixed-income fund manager at
EdenTree Investment Manage-
ment, who thinks the govern-
ment bond market is likely to
sell off on Thursday as ster-
ling rallies.
Some analysts warn that
market players may be getting
ahead of themselves in their
predictions. Trading in deriva-
tives called overnight index
swaps shows investors believe
the central bank will raise its
benchmark rate from 0.25% to
0.5%—where it was before the
Brexit vote last year—and
leave it there until November
of next year.
But officials could signal
otherwise, economists said.
“There’s a real vulnerability
in the market if they indicate
the next hike might come a bit
* * * *
upswing in prices, analysts
say. OPEC’s compliance in the
first three quarters of 2017
was close to 90%, J.P. Morgan
Chase analysts estimate, add-
ing that Saudi Arabia was
“clearly doing whatever it
takes to balance the markets”
with a cut that was 20% above
its required target.
Escalating tensions in the
Middle East and shifting U.S.
policy toward Iran that could
interrupt the flow of crude
have also recently injected a
geopolitical premium to
prices, analysts say.
But the key question for
next year is the outlook for
U.S. production.
A slowdown in the pace of
growth of U.S. shale output
has supported prices in recent
months. The number of rigs
drilling for oil in the U.S., typi-
cally viewed as a proxy for ac-
tivity in the sector, dropped
from a peak of 768 earlier this
year to 737 last week.
“It is not a significant re-
duction and its impact will not
be felt for 5-6 months but nev-
ertheless it shows that U.S.
shale oil production might not
grow as much next year as
currently estimated,” Tamas
Varga, analyst at brokerage
PVM, wrote in a note to cli-
ents.
Some analysts, however,
say the recent price gains
would motivate U.S. shale
drillers to ramp up their activ-
ity as many players can break
even at $50 a barrel.
“At the current WTI price
of well over $50 per barrel,
one would really expect drill-
ing activity to pick up again,”
Commerzbank wrote in a re-
port. The bank expects
U.S. oil production to reach a
record level of over 10 million
barrels a day in the first half
of 2018.
“We believe that [oil prices]
are overheated and expect
them to correct in the short
term,” the bank said.
Further out, the banks in
the survey predict that Brent
will average $58 a barrel in
2019.
While up slightly from the
previous survey, that forecast
is still down from the $72 a
barrel in the survey from Oc-
tober of last year.
Some analysts say the Bank of England could still surprise investors with its decision on Thursday.
Raised Expectations
Market players have accepted the Bank of England will
raise rates but see them staying low for long.
Where markets believe U.K. interest rates will be in the future*
1.0%
0.8
0.6
0.4
0.2
0
2017 ’18
*Based on forward overnight index swaps
Source: Bank of England
sooner, and that would be
good for sterling,” said Ste-
phen Gallo, head of foreign-ex-
change strategy at BMO Finan-
cial Group.
Such a surprise could boost
the pound by between 0.7%
and 1.3% against the dollar, ac-
cording to a range of esti-
mates by economists. Yields
on 10-year government bonds
MARKETS
Estée Lauder shares rose 9.2% Wednesday. A customer samples fragrances at Estée Lauder’s Jo Malone store in Shanghai.
Stocks Start Month Strongly
BY AMRITH RAMKUMAR
AND RIVA GOLD
The Dow Jones Industrial
Average and S&P 500 climbed
to start November after major
indexes posted a flurry of re-
cords last month.
Inves-
WEDNESDAY’S tors and an-
MARKETS alysts have
said they
e x p e c t
earnings growth around the
world to keep supporting ma-
jor indexes, which have contin-
ued to hover near all-time
highs in recent sessions.
“You’re getting a pretty
good fundamental backdrop on
the earnings front—that’s the
primary focus,” said Nathan
Thooft, senior managing direc-
tor of global asset allocation at
Manulife Asset Management.
The Dow industrials rose
57.77 points, or 0.2%, to
23435.01 after the blue-chip
index posted its seventh
straight monthly gain Tuesday,
its longest streak since April
2012. The S&P 500 climbed
4.10 points, or 0.2%, to 2579.36
and the tech-heavy Nasdaq
Composite swung between
small gains and losses and
closed down 11.14 points, or
Now
Two months ago
Where rates are
’19
THE WALL STREET JOURNAL.
could edge up, closer to the
1.5% mark.
Speculators now have a
small bet on the pound
strengthening, according to
the U.S. Commodity Futures
Trading Commission. The last
time that was the case was in
late 2015.
A rise in the pound would
dent the FTSE 100, since two-
Thursday, November 2, 2017 | B13
9.2%, to $122.12 after the
Fueled Up beauty company reported an
Energy shares notched another increase in organic sales and
session of gains as oil prices raised its forecast for fiscal
traded near their highest levels year 2018.
of the year. Buoyant oil prices sup-
ported shares of energy firms,
510 S&P 500 Energy Sector with Devon Energy and Mar-
▲1.1% Wednesday athon Oil also among the
508
best performers in the S&P
506 500. The index’s energy sec-
tor rose 1.1%, with U.S. crude
504 oil prices near their highest
level of the year amid signs
502
that production cuts by major
500 suppliers are helping to rebal-
ance the market.
498 Mr. Thooft said his firm is
more positive on the energy
496
sector now than it has been for
October much of the year, given the
Source: FactSet possibility of higher oil prices
THE WALL STREET JOURNAL. in the next six months.
Stocks inched higher after
0.2%, at 6716.53. the Fed left rates unchanged as
With nearly 70% of S&P expected but signaled it would
500 companies having re- consider lifting them before
ported results as of the mar- year-end amid signs the econ-
ket close Wednesday, roughly omy was gaining momentum.
three-quarters of those firms The dollar was also slightly
have exceeded earnings expec- higher after the Fed’s state-
tations, compared with the ment, which investors and ana-
five-year average of 69%, ac- lysts said offered few surprises.
cording to FactSet. “They’ve really laid the
Estée Lauder was among groundwork to raise rates in
the biggest gainers Wednes- December,” said Brad McMil-
day. Shares climbed $10.31, or lan, chief investment officer at
confident that rate setters will
decide to nudge up borrowing
costs, there is a large degree of
confusion about the reason for
doing so.
Over the past few months,
the case for raising rates has
sometimes been argued in
conflicting ways by officials at
the central bank. BOE Gover-
nor Mark Carney has voiced
concern about Britain’s deci-
sion to leave the European
Union constraining the domes-
tic supply of goods and thus
fueling inflation.
At the same time, BOE Chief
HANNAH MCKAY/REUTERS
Economist Andy Haldane has
often expressed optimism
about the health of the British
economy, whose growth accel-
erated to 0.4% in the third
quarter, official figures showed
last week. In that scenario, in-
terest rates could be raised
thirds of revenue for its con- without fear of stalling out
stituent companies comes economic expansion.
from outside the U.K. When As a third possibility, re-
the sterling strengthens, the cent research by the U.K. cen-
conversion of such revenue tral bank suggests that ster-
into pounds is less favorable ling’s depreciation after
for U.K. companies, and inves- Brexit could have a more last-
tors bid down shares in re- ing effect than previously ex-
sponse. pected, as companies con-
Viraj Patel, foreign-ex- tinue to pass on the cost of
change analyst at Dutch bank higher imports to consumers
ING, deems it unlikely that in the following months.
BOE officials will deliver the Some economists believe that
dovish message that investors policy makers could be driven
expect because it might limit to offset this effect by push-
their options to raise rates ing up rates and shoring up
sooner if necessary. the pound.
“How would the BOE even Kallum Pickering, an econo-
signal a one-off rise?” Mr. Pa- mist at Berenberg Bank, thinks
tel said. “No central bank will how many members of the
do that, they want to keep it BOE’s Monetary Policy Com-
open-ended.” He expects the mittee back a rate increase
pound to hover around $1.35 will “matter a lot” for markets
at year-end. and how they read the deci-
By contrast, if policy mak- sion.
ers shock markets by deciding On average, analysts expect
not to raise rates, sterling seven out of nine members to
could end up falling as much vote in favor of increasing
as 4%, economists said. That rates, so a larger consensus
could send the U.K.’s flagship would probably spark a reac-
stock index higher. tion.
Jitters about the BOE’s deci- “If all MPC members back
sion underscore an important the hike, markets will say
issue for U.K. markets: Even surely it’s not going to be one
though most investors are very and done,” Mr. Pickering said.
QILAI SHEN/BLOOMBERG NEWS
Commonwealth Financial Net-
work. “This is a Fed that’s
fairly confident about the
economy.” The WSJ Dollar In-
dex, which tracks the U.S. cur-
rency against a basket of 16
others, was up 0.1% Wednes-
day after its best month since
November 2016.
Some investors and ana-
lysts have said formal details
on the next chairman of the
Fed or on potential changes to
taxes will also be critical for
understanding the future path
of U.S. monetary policy. The
Wall Street Journal reported
after the market closed that
the White House has notified
Fed governor Jerome Powell
that President Donald Trump
intends to nominate him for
the job.
Elsewhere, the Stoxx Europe
600 advanced 0.4%. Clothing
retailer Next fell 9.1% after the
firm’s earnings, while shares of
Standard Chartered declined
6% after it reported higher
costs and lower revenue than
expected.
Japan’s Nikkei Stock Aver-
age closed up 1.9% in its big-
gest daily point gain since
May. Early Thursday, it was
flat, while Hong Kong’s Hang
Seng Index was down slightly.
Treasurys
Fall a Bit
After Fed
Holds Fire
BY AKANE OTANI
U.S. government bonds
stalled Wednesday after the
Federal Reserve held interest
rates steady as expected.
The yield on the bench-
mark 10-year U.S. Treasury
note settled at 2.378%, com-
pared with 2.374% Tuesday.
Yields rise as
CREDIT bond prices fall.
MARKETS Bond yields
erased declines
from earlier in
the session after the Fed left
short-term interest rates un-
changed but signaled it would
consider lifting them before
year-end.
Fed officials expect “that
economic conditions will
evolve in a manner that will
warrant gradual increases in
the federal funds rate,” the
Federal Open Market Com-
mittee’s statement said.
Heading into Wednesday,
investors and analysts had
widely expected the rate de-
cision and said their focus
would be on any changes to
officials’ views on inflation,
which has become a subject
of debate within the central
bank in recent months.
The Fed’s preferred price
gauge, the personal-consumer
expenditures price index, has
run under the central bank’s
2% annual target for seven
months.
The tepid readings have
led some Fed officials to say
they won’t support another
rate rise before seeing evi-
dence that inflation is picking
up—something that some an-
alysts and investors say could
keep Treasurys trading
within a narrow range for
longer.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B14 | Thursday, November 2, 2017 THE WALL STREET JOURNAL.

MARKETS
Venezuela in Crisis
Investors have been bracing for a default as billions in debt comes due
2,500%
Venezuela’s cash-strapped government
has slashed imports in recent years.

Goods imports, by value

$70 billion
2,000
60
Venezuela has the world’s highest inflation,
estimated by the International Monetary Fund to 50
reach 653% this year. The country has been ravaged 40
by shortages of food and medicine and months of
protests that have cost more than 120 lives. As 30
1,500
President Nicolás Maduro has consolidated power,
the opposition has been weakened and divided. But 20
markets are concerned that a status quo that has
10
rewarded risk-seeking investors can’t hold for long.
0
Annual inflation rate 1,000 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Data for 2017 and 2018 are projections

Venezuela’s finances are somewhat a mystery

because the country releases limited data.
However, its foreign reserves have been dwindling.
500
International reserves
$35 billion

30
Projections
25
0
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 20

15

10
The government and state-owned oil company Mr. Maduro and other Venezuelan government officials
Petróleos de Venezuela SA, or PdVSA, together owe have said they would pay off their debt, and in recent 5
billions of dollars in principal and interest payments in years investors have been rewarded with some of the
0
the coming months, including $1.2 billion due Thursday. best returns in emerging markets.
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17†
Venezuelan bond payments, by month due J.P. Morgan emerging-markets bond index

$2.0 billion 80 That means Venezuela is dependent on oil exports

PdVSA principal Venezuela principal EMBI Global Diversified
to make up the difference. But prices for oil have
PdVSA interest Venezuela interest Elecar* EMBI Global Diversified, Venezuela Portion tumbled, and production has fallen.
60
Brent crude oil price
1.5 $140 a barrel
40
120

100
1.0 20
80

0 60
0.5
40
–20
20
Monthly closes, rebased to 0
0 –40 0
Oct. 2017 ’18 2012 ’13 ’14 ’15 ’16 ’17 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17

*PDVSA controls the electricity company Electricidad de Caracas, or Elecar. †Provisional as of Oct. 31
Sources: International Monetary Fund (inflation, imports); Morgan Stanley/Bloomberg (payments); Thomson Reuters (index); S&P Global Ratings, Banco de Venezuela (reserves); WSJ Market Data Group (Brent) THE WALL STREET JOURNAL.

Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Apple Puts Its Faith in Loyalty OVERHEARD Tesla Drives

Christmas may come late
for Apple this year.
The key question heading
into the company’s fiscal
fourth-quarter earnings re-
port Thursday is just how
stretched out its highly an-
ticipated iPhone “supercycle”
will be.
The staggered launch of
new iPhones this fall—with
the most desirable version
coming late and in short
supply—means Apple will
likely be working to fill or-
ders well into next year.
And that’s presuming
those who want the latest
and greatest iPhone X decide
to wait it out.
Early reviews of the
iPhone X have been largely
positive. But Apple gave
most reviewers just one day
with their devices prior to
the reports. That raises the
possibility that later cover-
age could uncover problems,
especially with the new fa-
cial recognition feature that
has been billed as the de-
vice’s main selling point.
Wall Street, for now, is
betting that prospective buy-
ers will stick around. The
X-Factor
Apple’s iPhone unit sales per fiscal quarter
80 million
60
40
20
0
FY2012 ’13 ’14
Sources: the company; FactSet (projections)
iPhone X formally hits stores
on Friday, but delivery times
for preorders have been
pushed out well into next
month either because of
heavy demand or severe
shortages.
Several analysts have low-
ered sales forecasts for the
current quarter that ends in
December. Most of those
projections have been shifted
to the March and June peri-
ods. But Apple typically proj-
ects only one quarter at a
Projections
’15 ’16 ’17 ’18
THE WALL STREET JOURNAL.
time, so Thursday’s report
will likely contain little
quantitative information
about the next calendar year.
So investors who have bid
up Apple’s stock more than
45% this year will still have
to take a lot on faith after
Thursday. Apple is expected
to report only a 1% rise in
iPhone unit sales for the
September quarter, year over
year, due to weak demand
for the iPhone 8 models that
went on sale in the last week
of the quarter.
Analysts are optimistic
about the iPhone business in
the December quarter based
on an estimated revenue
gain of at least 9% year over
year, even though iPhone
unit sales are expected to
rise less than 4% in that
time. The difference would
have to be made up by
higher selling prices, specifi-
cally for the iPhone X, which
starts at about $1,000. So es-
timates reflect Wall Street’s
firm belief that the company
will successfully pull off the
upsell.
That’s not such a stretch,
given that Apple has a fa-
mously loyal customer base
accustomed to paying a pre-
mium. But the iPhone is still
facing a more competitive
environment, especially in
markets like China. And Ap-
ple’s stock is now fetching
nearly 16 times forward
earnings, its highest multiple
in more than six years.
To keep investors dialed
in, Apple will need to show
that its supercycle is more a
question of when than if.
—Dan Gallagher
This wasn’t what Teva
Pharmaceutical Industries
shareholders wanted to hear.
Drugmaker Allergan, the
largest owner of Teva shares,
told analysts on its call
Wednesday that it would
soon begin selling its nearly
10% stake in the generic
drugmaker and expects to
finish by the end of next
year.
That Allergan is selling
comes as no surprise; the
shocker is that it hasn’t be-
gun yet. Teva’s stock is down
nearly 60% over the past
three months, and there was
speculation part of the rea-
son was Allergan moving the
market. Allergan had said in
August that it wasn’t inter-
ested in owning Teva stock,
which it acquired in a deal
with Teva last year, for the
long term. Allergan is Teva’s
largest shareholder by far. No
other investor’s stake exceeds
2%.
At least Teva won’t have
to wait long to try to
brighten the mood. It is set
to report third-quarter re-
sults on Thursday.
Further Off
The Track
Tesla’s quest to live up to
sky-high expectations looks
tougher than ever.
The company reported
third-quarter sales of $3 bil-
lion and an adjusted loss of
$2.92 a share on Wednesday,
falling short of analyst esti-
mates. This looks worse
when one considers that
profit estimates already had
dropped steadily. The con-
sensus analyst forecast for
the third quarter called for a
profit of 80 cents a share
last June.
Tesla burned through a
record amount of cash dur-
ing the period, some $1.4 bil-
lion. That is disconcerting,
but investors’ emphasis has
been on the future with this
company. Developments dur-
ing the quarter make CEO
Elon Musk’s vision look more
like a pipe dream. For start-
ers, Tesla said it would build
10% less Model S and X vehi-
cles in the fourth quarter
than the third quarter, a
worrying sign on future de-
mand for its more expensive,
higher margin products.

Facebook Is Right to Invest in Cleaning Up Its Network
Facebook is still making a
lot of new friends, but the
company is learning the hard
way that there is a cost to
not having the right ones.
Both were readily appar-
ent on Wednesday. Facebook
reported another quarter of
strong financial results just
as the company and its two
top peers were getting
grilled in Washington over
the role their platforms
played in the spread of mis-
information around last
year’s contentious presiden-
tial campaign and since. It is
little surprise that Facebook
finally feels some urgency to
get ahead of the story.
Hence, Chief Executive
Mark Zuckerberg’s statement
The company said next
Friend Zone year’s total expenses will in-
Facebook’s average monthly crease between 45% and
active users per quarter 60%. But Facebook can af-
ford to take the hit and do
2.0 billion the right thing. Operating in-
1.5 come surged 64% year over
year, to a record $5.1 billion
1.0 in the third quarter, while
0.5 revenue jumped 47%, to
$10.3 billion. The user base
0 continues to expand, too.
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 About 66 million monthly ac-
Source: the company tive users were added in the
third quarter, to bring the
Wednesday: “Protecting our total to 2.07 billion. Growth
community is more impor- in the company’s user met-
tant than maximizing our rics and financial results all
profits.” He said the com- exceeded Wall Street’s esti-
pany is now investing so mates for the quarter.
much in security that it will It is an awkward time for
affect future profitability. Facebook to remind the
world of its unstoppable na-
ture. At hearings before the
Senate Judiciary Committee
on Wednesday, executives
for Facebook, Twitter and
Google-parent Alphabet
faced harsh questions from
both sides of the aisle. Citing
misuse of the three compa-
nies’ platforms, Sen. Dianne
Feinstein (D., Calif.) told the
executives: “you have to be
the ones to do something
about this. Or we will.”
Such words, coming from
tech’s senior hometown sen-
ator, shouldn’t be taken
lightly, and Facebook may
have the most to lose. The
world’s largest social net-
work offers a tempting tar-
get for those seeking to
spread malicious content, yet
Facebook’s financial perfor-
mance still depends on main-
taining the trust of its users.
Google, by contrast, is much
harder to avoid. More than
90% of the world’s internet
searches now flow through
its network.
That risk hasn’t shown up
in Facebook’s valuation,
which sits at about 32 times
forward earnings. Investors
may be justifiably impressed
that users keep signing up.
But, with a hyperpartisan
Congress united around the
need to do something, Face-
book is finding that even
two billion friends aren’t
enough.
—Dan Gallagher
The outlook is even worse
for the Model 3, the mass-
market model that Tesla has
struggled to build. It now ex-
pects to produce 5,000 a
week by the first quarter of
next year, another slippage
in its timeline. And Tesla
seemed to hint that some
equipment to produce more
Model 3s hasn’t been in-
stalled, noting “it has always
been our intention to imple-
ment that capacity addition
after we have achieved a
5,000 per week run rate.” Its
ultimate target is twice as
many.
Tesla shares are up
sharply in 2017, but all those
gains accrued early in the
year. The euphoria surround-
ing that rally is wearing off,
and with good reason.
—Charley Grant