The wall street journal january 07 2017 by dfvdvfdfv

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WE ARE NOT THE WORLD

A Retro Revolution

REVIEW

OFF DUTY

VOL. CCLXIX NO. 5

WEEKEND

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HHHH $4.00

SATURDAY/SUNDAY, JANUARY 7 - 8, 2017

What’s News

WSJ.com

Putin Ordered Hacking, Spies Say

Ups and Downs of Presidential Labor Markets Annual change in total nonfarm payrolls by presidential term

DWIGHT EISENHOWER 1953–61

LYNDON JOHNSON 1963–69

GERALD FORD 1974–77

RONALD REAGAN 1981–89

BILL CLINTON 1993–2001

BARACK OBAMA 2009–17

World-Wide

0 –2 Recessions –4 –6 JOHN KENNEDY 1961–63

A gunman killed five and injured eight in an attack at the Fort Lauderdale, Fla., international airport. A3 Trump said the U.S. may have to pay upfront for his promised wall along the border with Mexico. A4 Carter said Russia has done nothing to help defeat ISIS in Syria and has adopted a strategy to thwart the U.S. A4 Russia’s top general said his country would draw down its military presence in Syria. A6 U.S. Marines will return in the spring to Afghanistan’s Helmand province, site of previous heated combat. A6 Republicans in Congress are expressing growing skepticism of the party’s approach to repealing the ACA. A3 Opioid-related deaths reached new peaks in hardhit cities and states. A3 New York’s Indian Point nuclear plant will close by 2021 under a deal between the state and Entergy. A3

Business & Finance

Tim Cook’s pay fell as Apple missed key internal targets for the first time in the CEO’s tenure amid a slump in iPhone sales. A1 VW is near a settlement of a criminal probe into its emissions cheating that would require it to pay several billion dollars. B1 China continued to squeeze the global market for the yuan, sending the currency’s borrowing costs soaring. B10 Growing demand for Samsung components is helping the firm weather the Galaxy Note 7 recall and deliver strong earnings. B1 Theranos, facing a cash crunch, continues to cut staff and void unreliable blood-lab test results. B4 Wells Fargo will roll out a new retail-banking pay plan to fix what many believe was one cause of its sales-tactics scandal. B1

Inside

Eisenhower Kennedy Johnson Nixon Ford Carter Reagan G.H.W. Bush Clinton G.W. Bush Obama

Make Inaugurals Dignified Again Sports....................... A14 Style & Fashion D2-3 Travel....................... D6-7 U.S. News............ A2-5 Weather................... A14 Wknd Investor....... B7 World News....... A6-9

JIMMY CARTER 1977–81

GEORGE H.W. BUSH 1989–93

Unemployment rate, average change each year

0.9% –0.3 3.8

0.03 pct. pts.

N.A. 0.2

0.4

1.0

N.A.

0.3

–0.3 0.5

–1.0 0.8

0.1 0.4

1.0

–0.5

–0.1

–0.4

0.2

–2.1

0.3

0.6 2.4

–0.2 0.5

–0.1

2.1

0.5%

0.3

1.0 3.1

Inﬂation-adjusted earnings, annualized change N.A.

–0.3

–0.5

2.2

GEORGE W. BUSH 2001–09

Labor-force participation, avg. change each year

0.5 pct. pts. 2.3

0.8

–0.2

–0.4

0.5

Note: Measured from the month of each man’s inauguration to the month before his successor’s inauguration, with the exceptions of Kennedy and Nixon whose terms ended unexpectedly. Source: Labor Department THE WALL STREET JOURNAL.

Wage Growth Ticks Higher Paychecks rose, though jobs gains eased in December, presenting murky economic picture

labor market is improving enough to reap some benefit for American households. Nonfarm payrolls rose a seasonally adjusted 156,000 in December from the prior month, a slowdown from November’s more robust gain, the Labor Department said Friday. The unemployment rate ticked up to 4.7%, but finished 2016 at the lowest point to end a year in a decade. Though hiring finished the year on a soft note, cumula-

Job creation eased last month but workers are seeing long-awaited wage gains, signs that seven years into a slow-growing expansion the

Apple Performance Slips, CEO’s Pay Cut BY TRIPP MICKLE Apple Inc. on Friday revealed it missed its own annual sales and profit goals for the first time since 2009, putting a dent in Chief Executive Tim Cook’s annual paycheck and pressuring the company to deliver a blockbuster with its next iPhone. Apple fell short of its own projections in part because it mistakenly assumed consumers’ appetite for the iPhone 6S, introduced in 2015, would outpace demand for the predecessor device. The Apple

Friday’s results showed a mixed picture for the economy. While wages improved, growth remains subdued and is still sluggish compared to a decade ago. And for all of 2016, the economy added just under 2.2 million jobs, the smallest gain for a calendar year since 2012. Many parttime workers say they would Please see JOBS page A2 Dow just short of 20000... B9 Treasury yields gain............... B9

A declassified version of the report said U.S. intelligence concluded the Russian government wanted to undermine public faith in the U.S. democratic process and denigrate Democratic candidate Hillary Clinton, and that the Kremlin “developed a clear preference for President-elect Trump,” adding the intelligence agencies have high confidence in their judgments. In a statement following a meeting with U.S. intelligence officials Friday, Mr. Trump, who has been an outspoken critic of the conclusions drawn by the intelligence agencies, neither affirmed nor rebutted the report’s findings, though he did seem to allow that Russia might have been involved in the hacking of the Democratic National Committee’s Please see RUSSIA page A4 Defense chief: Russia no help on Islamic State....................... A4 Trump signals U.S. may pay upfront for Mexico wall...... A4

Gunman Kills Five, Wounds Eight in Florida Airport

Chip business helps Samsung weather smartphone recall... B1

Who Are the Stars Wearing On The Red Carpet? It’s Hard to Say i

tive hiring has reduced enough slack in the labor market to force employers to pay more for talent. Wages increased 2.9% in December from a year earlier, the best annual rate since 2009 and a contrast to gains closer to 2% earlier in the expansion. The report affirms that President-elect Donald Trump inherits an economy on a steady but unspectacular path as he prepares to take the oath of office.

By Shane Harris, Damian Paletta and Carol E. Lee

Watch, introduced in 2015, and services including Apple Music, iTunes and the App Store haven’t been able to offset the iPhone’s decline. Sales volume of the iPhone fell in fiscal 2016 for the first time since the device was introduced in 2007, and Apple posted its first annual revenue decline in 15 years. A sharp slowdown in China sales in particular cut into total revenue. The slump took a 15% bite Please see PAY page A7

Chances are, some star will wear a Prabal Gurung gown to the Golden Globes this Sunday. And chances are someone is bound to mispronounce the designer’s name that night. Mr. Gurung is used to it. The New Yorkbased fashion designer often tells people his first name sounds “like trouble with a P” when introducing himself. Mr. Gurung’s personal Instagram han- Prabal dle is @troublewithprabal. His last name sounds like GOO-ROONG, by the way. Many stars attending the Globes will receive last-minute

SHOOTING: Officials said a man identified as Esteban Santiago opened fire Friday at a baggage-claim area at the Fort Lauderdale-Hollywood International Airport. Above, police helped bystanders who sought cover. A3

Fashion designers try to stop celebrities from mispronouncing their names BY RAY A. SMITH

NOONAN A13

Nonfarm payrolls, annualized change

BY ERIC MORATH AND BEN LEUBSDORF

Job creation eased last month but workers are seeing wage gains, signs the labor market is improving enough to reap some benefit for U.S. households. A1 The Dow made another run at 20000 but came up short. The index added 64.51 points to 19963.80. B9

CONTENTS Books.................... C5-10 Food......................... D4-5 Gear & Gadgets.... D9-10 Heard on Street...B10 Obituaries................. A5 Opinion............... A11-13

RICHARD NIXON 1969–74

WASHINGTON—The U.S. intelligence community said in a report Friday that Russian President Vladimir Putin ordered a campaign to influence the outcome of the 2016 U.S. presidential election, and that Mr. Putin aspired to help Donald Trump to victory as part of a broader ambition to undermine Western liberalism.

JOE RAEDLE/GETTY IMAGES

he U.S. intelligence community said Putin ordered a campaign to influence the outcome of the U.S. presidential election and that he aspired to help Trump win. A1

phone calls, texts or handwritten index cards reminding them not only whose dress or tuxedo they’re wearing, but how to pronounce the designer label’s name. The exercise is an annual ritual but the stakes to get names right on awardsshows red carpets have risen in recent years with the explosion of social media, as many viewers watch and tweet. While in the past a star’s mispronunciaGurung tion might have been rebroadcast on a news program and then forgotten by most people, these days any flubs can be repeatPlease see NAMES page A9

THE WORLD’S FASTEST WOMAN ON TWO WHEELS Denise Mueller always loved speed, but nothing prepared her for the risks—and thrills—of riding a bike at 140 mph; 125 feet per pedal stroke BY JASON GAY TOOELE COUNTY, Utah—Denise Mueller, a 43-year-old mother of three, pedals hard atop the Bonneville Salt Flats in western Utah, making a run at an eccentric land-speed record—the fastest bicyclist on earth. Barreling a bike at speeds past 100 miles an hour on this stark, white-floored landscape appears terrifying, but it makes Mueller happy. It quiets her mind. For most people, speed is a thrill. To Mueller, speed is peace. “You can’t focus on anything but what’s right in front of you,” she says. “You can’t think about what you’re doing tomorrow, who you’re going to call, what you’re going to be wearing—any-

thing. When I get into that zone, it’s like a nirvana, that sense of focus when it all comes down to life or death.” One hundred fifteen miles an hour. This feels good, Mueller thinks. One hundred twenty. The custom carbon-fiber bike, fitted with motorcycle tires, begins to drift a little bit, right to left, left to right. Mueller exhales under her matte-black helmet, steadies herself in her crimson-leather jumpsuit and keeps pedaling. Her red ponytail flickers from beneath her helmet. Directly in front of Mueller on this September afternoon is a snow-white Range Rover Sport SVR, driven by race-car driver Shea HolPlease see FAST page A10

A2 | Saturday/Sunday, January 7 - 8, 2017

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THE WALL STREET JOURNAL.

U.S. NEWS

Last Year Was Awful, but Others Were Worse G

oodbye, 2016, and good riddance. Last year struck many people as remarkably, horribly, unspeakably awful. A flood of celebrity deaths saddened fans. Mass murders of ordinary people rattled nerves. Bitter partisanship divided nations. And uneasiness over jobs and the economy contributed to a general sense of anxiety. Putting 2016 in the rearview mirror feels good. Twenty percent of Americans surveyed in a Wall THE Street Journal/ NUMBERS NBC News poll BY JO said it was one CRAVEN of the worst MCGINTY years ever for the U.S. But, in the larger scheme of things, it should be noted that it also wasn’t that bad. “I would say 1942 is up there as a really, really awful year,” said David A. Bell, a historian at Princeton University. “It was the year the Holocaust was systematized and the destruction of European Jewry turned industrial. Incredibly high up there is 1914 to 1918, the years of the first World War. So are the years of the American Civil War and

the Taiping Rebellion.” Still, 2016 had its share of comedowns and calamities. Here are a few that resonated. Among the well-know musicians who died were rockers Prince, David Bowie and Glenn Frey; folk singer Leonard Cohen; Earth, Wind and Fire founder Maurice White; Dap Kings vocalist Sharon Jones; country singer Merle Haggard; bluegrass pioneer Ralph Stanley; accordionist Buckwheat Zydeco, balladeer Juan Gabriel and Tejano singer Emilio Navaira. Writers Harper Lee, Pat Conroy, Elie Wiesel and Edward Albee passed, as did athletes Muhammad Ali, Arnold Palmer, Gordie Howe, Jose Fernandez and Joe Garagiola (perhaps better known as a broadcaster). At least 30 actors died, including Debbie Reynolds, Carrie Fisher, Florence Henderson, Gene Wilder, Patty Duke, Abe Vigoda, Ron Glass, Zsa Zsa Gabor, Alan Rickman, Fyvush Finkel and Garry Marshall. Others who were lost included comedians Garry Shandling and Bob Elliot; astronaut John Glenn; reporters Morley Safer, Gwen Ifill and Sydney Schanberg; and public figures including Nancy Reagan, Janet Reno, Tom Hayden,

How Bad Was It? A semi-regular poll asking Americans what they thought of the year that was just ending gave 2016 decidedly mixed reviews. Compared with other years, do you think this past year was one of the best for the United States, above average, about average, below average, or one of the worst years? 80%

2016 One of the worst years/ below-average year

70 60

55%

About average year

30%

One of the best years/ above-average year

14%

10 0 2002

’04 ’05

’08

’11 ’12 ’13 ’14 ’15 ’16

Source: WSJ/NBC News telephone poll, most recent of 1,000 adults onducted Dec. 12–15; margin of error: +/-3.1 percentage points

THE WALL STREET JOURNAL.

Phyllis Schlafly, Boutros Boutros-Ghali and Supreme Court Justice Antonin Scalia. That many who passed were baby boomers may have contributed to the sense of loss. “Baby boomers decided they were never going to get old, never going to get sick and certainly never going to die,” said David Kaplan, a counselor and chief professional officer of the American Counseling Association. “This

year so many people died it’s made it difficult to keep that fantasy going.” In some cases, the names of those lost may not always have been familiar, but the circumstances were too shocking to miss. British Member of Parliament Jo Cox was shot and stabbed to death after a public meeting with her constituents in West Yorkshire county. Andrey Karlov, Russia’s ambassador to Turkey, was

money for retirement. “There were a couple of things going on in this particular year that made it different than some other years,” Dr. Kaplan said. “When you experience a number of negative things in a row, it becomes more difficult to bounce back. The second thing is as we get older, we all have to face our mortality. I think 2016 just wore people down.” On the bright side, the U.S. had the longest stretch of job growth since the government began keeping track in 1939. An ebola vaccine was found 100% effective. The Rosetta space probe landed on the comet it had chased for a dozen years, and Einstein was proved right when scientists verified a portion of his Theory of General Relativity. “2016 was a vintage year in terms of factors that matter to the majority of people,” said Robert Gordon, an economist at Northwestern University. “Growth in job creation was healthy. Wages went up. Consumers in general got a boost to spending power.” So, in the grand scheme of things, 2016 may not have been the worst. But it was bad enough. Here’s hoping 2017 is both a New and Improved Year.

gunned down in Ankara, Turkey, while speaking at the opening of a photo exhibit. And regular people doing ordinary things in familiar places were murdered en masse. In the U.S., 49 people were killed by a gunman in an Orlando, Fla., nightclub. In Nice, France, 86 people died when a man drove a truck into a crowd celebrating Bastille Day. In Germany, 12 people were killed when a truck plowed into a Berlin Christmas market. All of the losses happened against a backdrop of war, political rifts and economic worry. Conflict continued in Syria, where over several years as many as 470,000 people have died and 4.8 million refugees have fled. Brexit and the U.S. presidential election divided neighbors and provoked demonstrations.

he economy improved, but anxiety over it didn’t. According to Gallup, Americans worried more about their finances in 2016 than the year before, with 60% concerned about not being able to pay medical costs in case of a serious illness or accident, 51% about not being able to maintain their standard of living, and 64% about not having enough

Continued from Page One still prefer a full-time job, clouding the picture, and the labor-force participation rate, those with jobs or actively seeking work, remained near a four-decade low despite a slight uptick in December to 62.7% from 62.6% the prior month. Still, the combination of emerging wage gains and steady hiring are likely strong enough to keep the Federal Reserve on a path toward raising short-term interest rates cautiously and gradually in the months ahead. Fed officials have penciled in three quarter-percentage-point increases to their benchmark interest rate this year. December, the final full month of President Barack Obama’s term, was the 75th straight month U.S. employers added jobs. It extended the longest such stretch on record back to 1939. The unemployment rate is well down from a peak of 10% early in Mr. Obama’s presidency. Economists still point to a range of challenges, including an overhang of millions of part-time workers who want full-time jobs and labor-force dropouts. With an army of potential full-time workers in the economy’s shadows, many firms have had little incentive to bid up pay. Overall economic growth during Mr. Obama’s time in office has lagged behind his predecessors. During the current expansion, the economy grew at a 2.1% average annual rate, through the third quarter. That is the slowest growth rate of any expansion since at least 1949. As unemployment drops, soaking up the pool of potential workers, some of those headwinds to wage growth might be receding, though longer-run challenges persist. For example, a dramatic slowdown in labor-productivity growth over the past decade could restrain the economy’s long-term ability to generate strong overall growth and income gains without stoking high inflation. “Challenges do remain,”

AGATON STROM FOR THE WALL STREET JOURNAL

JOBS

A waitress at a New York diner last month. Hourly wages rose 4.4% in the leisure and hospitality sector, which includes restaurant workers.

Wage Acceleration Earnings have thoroughly outpaced inﬂation in recent years and are now growing at their highest rate since the end of the recession. 6% Average hourly earnings*

4 2 0

Inﬂation –2 –4

Recession

2007

’09

Seasonally adjusted

’11

’13

’15

*All private employees Source: Labor Department

Jobs Legacy Mixed as Obama Exit Looms President Barack Obama is leaving his role as the economy’s steward with a mixed labor-market performance on his record. The final full month of Mr. Obama’s term was the 75th straight in which U.S. employers added jobs. It extended the longest such stretch on record, dating back to 1939. The unemployment rate was well below a peak of 10% early in his presidency. However, those achievements were marred by trends including a long run of weak wage gains, the lowest share of adults in the labor force in four decades and an elevated number of Americans stuck in part-time jobs.

The U.S. economy added 11.3 million jobs during the presidency of Mr. Obama through December—fourth-most among presidents in the post-World War II era. Among recent two-term presidents, that compares with only 2.1 million jobs added under George W. Bush, but 22.9 million under Bill Clinton and 15.9 million under Ronald Reagan. No president can dictate the economy’s performance singlehandedly, and much depends on the economy each president inherits. That will leave open for debate how Mr. Obama, who took office during a deep recession, performed. “Far too many workers have been left behind,” said Rep. Pat Tiberi, an Ohio Republican and chairman-designate of Congress’s Joint Economic Committee. The

tax code and regulations limited businesses’ “ability to create jobs, causing many Americans to simply give up looking for work.” The economy Mr. Obama will hand over to Republican President-elect Donald Trump is starkly different from the one Mr. Obama had as he took office. The Dow Jones Industrial Average sat below 9000 at the end of 2008, having fallen about 33% over the previous year. The index closed just below 20,000 Friday. “The economy is so vastly different today than eight years ago,” said Jason Furman, chairman of the White House’s Council of Economic Advisers. Mr. Obama “doesn’t want his successor going through what he went through, as we faced a really terrifying brink of the abyss.” —Eric Morath

nally raising living standards for most people.” For now, households are benefiting from the fact that consumer-price inflation is low, meaning workers are losing less of what they bring home to the rising cost of goods and services. Inflation-adjusted hourly

earnings for nonsupervisory workers have increased from a year earlier for 40 straight months, through November, the longest such streak since the late 1990s. More workers have been quitting their jobs in recent years as the labor market has improved, helping bolster

wage growth. Data from the Federal Reserve Bank of Atlanta show stronger gains for people taking new jobs than for workers who are staying with their current employers; the three-month average in November for median wage growth was 4.4% for job switchers versus 3.6% for job

THE WALL STREET JOURNAL.

Fed Chairwoman Janet Yellen told an audience in Baltimore last month. “The economy is growing more slowly than in past recoveries, and productivity growth, which is a major influence on wages, has been disappointing. But it also looks like the economic gains of the past few years are fi-

CORRECTIONS AMPLIFICATIONS Fees for passively managed stock and bond funds fell more than fees for actively managed funds in 2016. Also, the average asset-weighted fee for actively managed stock mutual funds fell by 2.4% in 2016, the most severe decline since 2012, according to Morningstar Inc., and the average asset-weighted fee for actively managed bond funds fell 3.2%. Based on erroneous data, an article about mutual funds in Tuesday’s Year-

End Review & Outlook section incorrectly stated that actively managed stock and bond funds cut fees more aggressively in 2016 than their passive counterparts. It also incorrectly said the average asset-weighted fee for actively managed stock mutual funds fell by 4.8% in 2016, the most severe decline since at least the 1990s, and the average asset-weighted fee for actively managed bond funds fell more than 6%. Separately, in 2016 the

average asset-weighted fee for active stock managers was 0.82%, for active bond managers was 0.61%, for passive stock managers was 0.17% and for passive bond managers was 0.15%. A chart with the article incorrectly gave those numbers as 0.78%, 0.56%, 0.11% and 0.10%, respectively. A corrected version of the chart can be seen at WSJ.com/Corrections. Amazon.com Inc. went pub-

lic in 1997. A Page One article Thursday about a decline in the number of public companies incorrectly said the IPO took place in 1994. European Union officials have said they would start talks about the U.K.’s leaving the EU by handing the U.K. a big bill. A World News analysis on Friday about Brexit negotiations incorrectly stated the EU would hand the EU a big bill.

Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.

stayers, the regional reserve bank said. “We see wage growth in every job class that we have, from store managers to mechanics,” said Don Barnes, president of Belle Tire, a Michigan-based chain of auto service centers. “We want to make sure we pay premium wages to attract and retain the best talent.” The company opened its first stores in Indiana last year, mostly in the South Bend area, adding about 100 jobs. The unemployment rate in South Bend is about half what it was eight years ago and below the national rate. That tighter labor market is putting pressure on wages there. In the high-paying information-technology sector, “highly skilled candidates are receiving multiple offers, they’re receiving offers at increasing compensation package levels,” said John Reed, senior executive director at staffing and recruiting firm Robert Half Technology. A shortage of qualified workers, he said, means “many companies are having to increase compensation levels to retain the people they have or attract the people they want.” Hourly earnings rose 4.4% over the past year in the lowpaying leisure and hospitality sector, including restaurant workers and bartenders. That continued a multiyear trend of rising wages for lowpaid workers; the leisure and hospitality industry’s average hourly wage was $15.13 last month versus $26 for all private-sector workers. “We are continuing to see some wage inflation,” fastfood chain Sonic Corp. Chief Financial Officer Claudia San Pedro told analysts this week. “We think that’s been occurring over the past 12 months as the labor market’s been tightening up.” Not all workers are sharing in the stronger pay gains. Average hourly earnings for production and nonsupervisory employees, the majority of workers who hold rankand-file jobs, rose a more modest 2.5% in December from a year earlier and showed little sign of acceleration over the past year.

THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | A3

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LYNNE SLADKY/ASSOCIATED PRESS

U.S. NEWS

People waited on the tarmac at the Fort Lauderdale-Hollywood International Airport after a gunman opened fire at a baggage-claim area inside the terminal on Friday.

Shooter Kills Five in Florida Airport Eight people also wounded in the attack; gunman quickly taken into custody

FORT LAUDERDALE, Fla.—A gunman killed five people and injured eight at a baggageclaim area at the Fort LauderBy Elizabeth Bernstein, Cameron McWhirter And Devlin Barrett dale-Hollywood International Airport, law-enforcement officials said. The suspect in the shooting was identified as Esteban Santiago, Broward County Sheriff Scott Israel said Friday night. Mr. Santiago arrived at Fort Lauderdale-Hollywood International Airport on a Delta flight from Minnesota on Friday, Sheriff Israel said. The suspect then retrieved his bag,

took out a gun and allegedly started shooting indiscriminately in a baggage-claim area. The shooting occurred in the Terminal 2 baggage-claim area, according to airport officials. Mr. Santiago surrendered peacefully when confronted by a sheriff’s deputy, Sheriff Israel said, speaking at a new conference near the terminal where the shooting took place. The shooting took place shortly before 1 p.m. Eastern time, Sheriff Israel said earlier Friday. The suspect didn’t make any statements at the time of the shooting, although agents haven’t ruled out terrorism as a possible motive, said George Piro, special agent in charge of the Federal Bureau of Investigation’s field office in Miami. Mr. Santiago was formerly in the military and is 26 years old, Mr. Piro said. It isn’t clear why he flew to

Florida. According to law-enforcement officials, Mr. Santiago appeared to be suffering from significant mental-health problems in the months leading up to the shooting. The suspected gunman, the officials said, walked into the FBI’s office in Anchorage, Alaska, in November, saying he needed to talk to agents there. Mr. Santiago was very agitated, according to the officials, and the discussion with Anchorage FBI agents was at times incoherent. In the conversation, he seemed to suggest that intelligence agencies were forcing him to view terrorist propaganda, and he mentioned the Islamic State terror group. Mr. Santiago was taken into custody for a psychological evaluation at that time, Mr. Piro said. The FBI investigated Mr. Santiago at the time and then

closed the case, Mr. Piro said. Mr. Santiago likely will appear in federal court Monday. Around 2:30 p.m., the Transportation Security Administration tweeted a warning about another active shooter at the airport and urged people to “shelter in place.” Sheriff Israel said there wasn’t a second shooter. All flights to and from the airport were temporarily suspended, according to the airport. Planes lined up on the tarmac for hours, and thousands of passengers were stranded as they waited for buses to take them to airport terminals, which remained closed Friday evening. Florida Gov. Rick Scott said the people of Florida “will not tolerate evil acts,” and the guilty party would be held accountable. —Kate Linebaugh and Valerie Bauerlein contributed to this article.

Baggage-Claim Area Presents a Challenge The deadly shooting Friday at the Fort Lauderdale-Hollywood International Airport exposes fresh challenges of safeguarding sprawling airports. The crowded travel hubs have become more heavily fortified in an age of terror attacks and mass shootings, but gaping vulnerabilities still exist, security experts say. The Fort Lauderdale gunman attacked in the baggage-claim area of the airport—an area security experts say is harder to control because it is outside of zones where federal screeners and police control access. Also, U.S. regulations allow a person with proper licensing paperwork to check an unloaded firearm in their checked

luggage, as the alleged shooter did. The Transportation Security Administration requires passengers to declare weapons, which must be packed in a locked hard-sided case. Jeff Price, an aviation-management professor at Metropolitan State University of Denver, said that baggage-claim areas aren't typically watched as closely as other parts of airports, like ticketing counters. Until now, the main concern in baggage claim areas was theft, as opposed to shootings, he said. Mr. Price said those areas represented a particular challenge for law enforcement because there is so much coming and going. “I think we can expect to see more of what we’ve seen every time we have one of these incidents at an airport—better-armed, bettertrained police and a surge in lawenforcement visibility,” he said. —Dan Frosch

Opioid-Related Fatalities Reach New Peaks New York The U.S. opioid crisis shows no sign of receding as a new year begins, with the latest data from several hard-hit cities and states showing overdose fatalities reaching new peaks as authorities scramble to stem the tide. The synthetic opioid fentanyl, which has up to 50 times the potency of heroin, remains the chief culprit driving the increase in fatalities, according to medical examiners and health and law-enforcement authorities in abuse hot spots, such as Ohio, Maryland and New England. Federal data for 2015 deaths came out only last month, showing a nearly 16% climb to 33,091 opioid deaths in the year. Many jurisdictions are still compiling the grim tallies for 2016. “We’re just really awash in drug deaths, and it got acutely worse,” said Thomas Gilson, the medical examiner in Cuyahoga County, Ohio, which includes Cleveland and is the state’s most populous county. So far, his office has recorded 517 deaths from heroin and fentanyl in 2016, more

Hot Spots Increase in opioid-related deaths in 2015, compared with previous year 10%

40+

Maine had the largest increase in the Northeast: 50.1%

Maine

Vt. N.Y.

N.H. Mass. Conn. R.I.

Pa. Md.

N.J. Del.

THE WALL STREET JOURNAL.

Tabs of fentanyl, manufactured to look like prescription pills, at a Drug Enforcement Administration synthetic drug-testing lab in Sterling, Va. Fentanyl has up to 50 times the potency of heroin.

than double the number from the previous year. And he isn’t done counting. Ohio is likely months away from tallying statewide numbers, according to a spokeswoman for the Ohio Department of Health, but Dr. Gilson expects a sharp increase for the state as a whole. Similarly, Pennsylvania is on track to have a significant statewide rise in 2016, said

Patrick Trainor, a special agent in the Philadelphia office of the U.S. Drug Enforcement Administration, which tallies overdose data for the state. Philadelphia alone may surpass 900 overdoses in 2016, up from 720 the prior year, he said. In Maryland, the latest data show an estimated 1,468 overdose deaths through September 2016, which exceeds the entire tally from 2015. Authori-

Source: Centers for Disease Control and Prevention

ing to law-enforcement and health authorities. Chemical cousins known as analogs are also on the rise, authorities said, sometimes as overseas labs switch recipes to keep ahead of law enforcement. At the federal level, new legislation passed last month includes $1 billion over two years to help states improve abuse prevention and treatment initiatives. States have been working to monitor opioid prescribing, expand access to medically assisted treatment and distribute more naloxone, an overdose-reversal drug. New England states, which have among the highest fataloverdose rates in the U.S., are broadly reporting higher death rates for 2016 as they continue to tally the data. Fentanyl, once seen largely by authorities as an additive that traffickers mixed into the heroin supply, has become a standalone killer in some areas. Numbers released Wednesday by New Hampshire’s Office of the Chief Medical Examiner counted 159 deaths last year with just fentanyl, compared with two heroin-only deaths and 19 deaths with both drugs.

T.J. KIRKPATRICK FOR THE WALL STREET JOURNAL

BY JON KAMP

ties in Baltimore, a longtime heroin hot spot with a rising fentanyl problem, said overdose deaths surged 68% to 481 in the first nine months last year, compared with the same period a year earlier. Fentanyl is a potent painkiller often used by cancer patients, but a bootleg version commonly made in China has become the major problem behind overdose deaths, accord-

Strategy on Health Law Spurs Republican Doubts BY KRISTINA PETERSON AND STEPHANIE ARMOUR WASHINGTON—Republicans in both the House and Senate are expressing growing skepticism of their party’s approach to repealing the Affordable Care Act, signaling potential peril ahead for a strategy that relies on nearly complete GOP unity. In the House, some conservatives are balking at a budget document meant to serve as the vehicle to repeal the 2010 health law. Meanwhile, in the Senate, a growing number of Republicans are questioning the wisdom of repealing the law without knowing how they will replace it. Divisions within the GOP over strategy highlight the challenges Republicans face as they balance their desire to immediately enact a conservative agenda with the time

needed to draft complicated and contentious legislation. Already this week, House Republicans withdrew a plan to curb the chamber’s independent ethics watchdog that came under fire from their constituents and Presidentelect Donald Trump. “We’re going to do some very difficult bills that are going to require some very heavy lifting,” Rep. Mario Diaz-Balart (R., Fla.) said of the GOP agenda. The Senate took the first procedural steps this week to pass a budget that will enable the GOP to roll back much of the health law with support from a simple majority of senators. Most bills need 60 votes to clear the Senate, where Republicans now hold 52 seats. Sen. Rand Paul (R., Ky.) has already staked out opposition to the budget, based on its spending levels, leaving no

room for further GOP defections. But at least five other Senate Republicans have signaled unease over repealing the law without having settled on its replacement. GOP leaders have said they plan to develop replacement legislation this year, which would go into effect after a transition period

The concerns include spending and lack of accord on replacing Affordable Care Act. of two to three years. Moving to immediately repeal the health law is “a flawed concept,” Sen. Bob Corker (R., Tenn.) said Friday. Mr. Corker said repealing once a replacement was ready

would be the more “prudent approach.” Sen. Susan Collins (R., Maine) said this week that she would like to see a “detailed framework” for a replacement plan to accompany the repeal, so people wouldn’t fear losing their coverage. Sen. Tom Cotton (R., Ark.) told MSNBC on Thursday that Republicans shouldn’t dawdle on a replacement plan. Sen. John McCain (R., Ariz.) said Republicans needed to move quickly to get a replacement plan ready, though he didn’t say he would oppose a repeal without it. The repeal effort also faces hurdles in the House. Some conservatives said they weren’t sold yet on passing a budget—even if it was primarily used just to repeal the health-care law—that includes spending higher than they would like.

“We don’t need that kind of symbolism,” when Republicans control Congress and soon the White House and have “campaigned against too much spending in Washington, D.C.,” said Rep. Ken Buck (R., Colo.) The Obama administration also stepped up its efforts Friday on the issue. President Barack Obama, in a live-streamed interview on news site Vox, asked why the GOP wanted to rush a repeal so quickly. “It is a much more complicated process to repeal this law than I think was being presented on the campaign trail, as my Republican friends are discovering,” Mr. Obama said. Repealing without a replacement would jeopardize access to health care for tens of millions of Americans, Mr. Obama wrote in an article published Friday in the New England Journal of Medicine.

Nuclear Plant May Soon Close BY MIKE VILENSKY AND RUSSELL GOLD

New York’s Indian Point nuclear plant will close by 2021 under a tentative deal struck this week between the state and owner Entergy Corp., according to people familiar with the matter. Gov. Andrew Cuomo, who has long called for the closure of the power plant near New York City in Westchester County, is planning to announce early next week that it will shut down, the people said. The finer points of the agreement are still being negotiated, but after weeks of haggling over the exact year of closure, 2021 has emerged as a compromise all sides have agreed upon, the people said. The broad outline of the agreement isn’t expected to change before Mr. Cuomo’s announcement, they said. Richard Azzopardi, a spokesman for Mr. Cuomo, said Friday that no agreement had been completed. Mr. Cuomo, a Democrat, “has been working on a possible agreement for 15 years and until it’s done, it’s not done,” he said. A spokesman for Entergy declined to comment. State officials and environmental groups have long criticized the plant for damaging the environment and aquatic wildlife along the Hudson River. Mr. Cuomo has also voiced concerns about the plant’s proximity to New York City. New York state’s Department of State has said that the Indian Point plant is in violation of state coastal-management regulations, and that it poses a risk to the 17 million people who live within 50 miles. Entergy has said in the past that it has made necessary investments and upgrades to ensure safe operations at the plant. The agreement was reported early Friday by the New York Times. —Cassandra Sweet contributed to this article.

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THE WALL STREET JOURNAL.

U.S. NEWS

Defense Chief: Russia No Help on ISIS Pentagon’s Carter says Putin’s efforts make it harder to work with Moscow

RUSSIA Continued from Page One email system, and the leak of private messages. The report found that Russia was behind that operation. But the report also took a broader measure of the Kremlin’s intentions, describing the hacking effort as a component of a more ambitious program to assert Russian influence on the world stage and strategically handicap the U.S. Beyond the attempt to elect Mr. Trump, the intelligence agencies found that the Russian operation was “the most recent expression of Moscow’s longstanding desire” to undermine liberal democracies across the West, warning that Russia would continue using cyberattacks and propaganda to undermine future elections, both in the U.S. and in allied countries. Russian media counted Mr. Trump’s election upset in November as a win for the Kremlin, the intelligence agencies

Defense Secretary Ash Carter talking with Air Force and Army special-operations personnel after a November training exercise in Florida. erally and Mr. Putin specifically. Mr. Trump has said he admires Mr. Putin as a leader, has said he would like a better relationship with Russia in general and has specifically cited Russia as a potential ally in defeating Islamic State. But Mr. Carter bluntly said the Russian military, as it has taken on an increasingly assertive role in shoring up Syrian President Bashar al-Assad in recent months, has been unhelpful in the fight against Islamic State, also known as ISIS or ISIL.

“They haven’t done anything to fight ISIL,” he said. “They’ve been fighting the moderate opposition along with the Syrian government. Everything they’ve done has been wrongheaded and completely the obverse of what they said they were going to do.” Russian leaders also haven’t fulfilled their promise to use their foothold in Syria to “facilitate a transition” away from the Assad regime to a broader government that includes the moderate opposition to Mr. Assad, Mr. Carter said.

concluded. “Russian media hailed President-elect Trump’s victory as a vindication of Putin’s advocacy of global populist movements. and the latest example of Western liberalism’s collapse.” The release of the report marked a rare moment for U.S. intelligence agencies. Intelligence experts and former officials believe it is unprecedented for such detailed findings to be issued just ahead of a presidential inauguration in which the presidentelect is a subject of the report. “It’s remarkable that any product like this is put out,” said Raj De, a former general counsel of the National Security Agency, one of the main spy agencies that contributed to the report. The report’s publication underscores how important the Obama administration believes it is for the American public to understand how the intelligence agencies arrived at their conclusion, he said. Some parts of the report were left out of the declassified version.

The report was unequivocal in assigning blame for the attacks and describing the motives it said drove Mr. Putin to order the operation. Its findings come in contrast to Mr. Trump’s assertion that any culpability in the hacks is impossible to know. Mr. Trump has repeatedly said he doubts the intelligence community’s findings and has accused officials of leaking them selectively for political advantage. U.S. officials, including some who briefed Mr. Trump on the report in New York on Friday, have rejected those accusations and said Mr. Trump’s comments disparage U.S. intelligence personnel. The disclosures could make it more complicated for the president-elect if he were to try to roll back sanctions and other punitive measures that President Barack Obama imposed against Moscow last week in response to the hacking. Support emerging from congressional Republicans for the findings could make it even more difficult for Mr. Trump to soften the U.S. response, given bipartisan political pressure. The report, which is a truncated version of one shared with Messrs. Trump and Obama, and members of Congress, said that the Russian government’s strategy “evolved” during the 2016 presidential campaign. “Beginning in June, Putin’s public comments about the U.S. presidential race avoided directly praising Presidentelect Trump, probably because Kremlin officials thought that any praise from Putin personally would backfire in the United States,” the report stated. “Nonetheless, Putin publicly indicated a preference for President-elect Trump’s stated policy to work with Rus-

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“They haven’t done that,” he said. “They haven’t facilitated that transition. They’ve just doubled down on the civil war.” As Mr. Carter’s comments suggest, Russia has emerged as the national-security issue on which the contrast between the outgoing Obama administration and the incoming Trump administration is most striking. His remarks come as leaders from Mr. Trump’s own Republican Party have begun hearings to examine Russian hacking operations allegedly designed to disrupt the

2016 presidential election. Mr. Trump, unlike others in the GOP, has been dismissive of intelligence-community assessments of Russia’s covert interference in the election process. Asked whether the incoming president and his team are taking an overly rosy view of the role Russia is playing in Syria, Mr. Carter replied: “I can’t speak for them, and they’ll have to establish their own set of views on that matter. But I’ve been working on and with Russia for a quarter-century now,

SPUTNIK/MIKHAIL KLIMENTYEV//REUTERS

WASHINGTON—Russia has done nothing to help defeat Islamic State forces in Syria and has adopted a strategy of “explicitly thwarting the U.S.” elsewhere, outgoing Defense Secretary Ash Carter said in an interview with The Wall Street Journal. Mr. Carter, who has a long history of working with Russian officials, said Russian President Vladimir Putin’s efforts to blunt American influence have been increasing and are making it harder to find areas in which Washington and Moscow can work together. “I think it is something that has grown steadily under Putin’s leadership,” he said. “It seems to be part of his self-conception. And one of the ways he defines the success of his policy is not by results on the ground but the level of the discomfort he can create in the rest of the world and show to his people as the point of his policy.” He added: “That’s what makes it so difficult to build a bridge” to Russia’s leaders. Mr. Carter, who will leave office as President-elect Donald Trump takes over later this month, said he wasn’t attempting to advise the incoming administration. But his appraisal of Russian behavior, in Syria and beyond, stands in stark contrast with the analysis Mr. Trump and some of his advisers have offered of Russia gen-

DEVON RAVINE/NORTHWEST FLORIDA DAILY NEWS/ASSOCIATED PRESS

BY GERALD F. SEIB

since the end of the Cold War.” Mr. Carter said he has tried to adopt a policy of being “strong and balanced” with Russia and being willing to work with the Kremlin when that is possible. And he cited the threats from North Korea and Iran as two areas where that has happened. He did encourage the new Congress and administration to continue funding programs designed to help European allies— particularly on the eastern edge of the North Atlantic Treaty Organization—defend against potential Russian interference. “I am confident that is a necessary thing to do, and we have to continue to invest in it,” he said. “We’ll have to show the leadership in Europe that keeps NATO together, because one of the Russian objectives is to split off or try to peel off individual members of the alliance. It’s always been an objective, it remains an objective.” Despite what he described as a lack of Russian help combating Islamic State, Mr. Carter said he was optimistic that the U.S. and its allies are prevailing in the effort to defeat the extremist group’s forces. The key to prevailing, he said, is to retake the Iraqi city of Mosul and the Syrian city of Raqaa, which Islamic State claims as the capital of its self-proclaimed caliphate. “I’m confident that’s the right path, and that those two cities will fall,” he said. “And that will go a considerable distance toward eliminating the fact of an Islamic state based on ISIL’s ideology in Iraq and Syria—but also the idea that such a thing has a future and will be tolerated.”

A U.S. intelligence report says Russia’s Vladimir Putin aspired to help Donald Trump win the U.S. election. sia, and pro-Kremlin figures spoke highly about what they saw as his Russia-friendly positions on Syria and Ukraine.” Mr. Trump was clearly Moscow’s preferred candidate, the report found, but as Election Day neared, the Kremlin concluded he would probably lose. That is when the Russians changed their strategy and “focused more on undercutting Secretary Clinton’s legitimacy and crippling her presidency from its start, including by impugning the fairness of the election,” the report found. In a sign of how Moscow was bracing for a potential Clinton administration, what the report describes as “proKremlin bloggers” prepared a Twitter campaign using the hashtag #DemocracyRIP, set to launch after the election. The campaign also wasn’t limited exclusively to Demo-

cratic politicians and organizations. However, while Russian hackers did target Republicans, it didn’t conduct “a comparable disclosure campaign.” The Wall Street Journal previously reported that the same Russian hacking group that

Russia wanted to undermine faith in the U.S. democratic process, the report says. stole emails from the Democratic National Committee tried to infiltrate the networks of its GOP counterpart. While most of the attention on the Russian campaign has focused on the theft and leaks of emails to websites, the re-

port describes at length the Russian government’s use of other means, including statefunded media, to spread propaganda and disinformation. The report said the intelligence community didn’t make an assessment about whether the hacking operation affected the election’s outcome. The report said the hacking didn’t affect vote tallying. Mr. Trump issued a statement shortly after meeting with intelligence officials, in which he said the cyber operation didn’t influence the election’s outcome. The intelligence report, explaining why it didn’t determine the effect of the hacking on the election, said U.S. intelligence agencies don’t analyze the U.S. “political processes or public opinion,” just the actions and intentions of foreign actors.

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WASHINGTON—Presidentelect Donald Trump said Friday that the U.S. government may have to pay upfront for his promised wall along the southern border and later try to collect reimbursement from Mexico. Mr. Trump’s comments came as Congress begins considering the details of turning the president-elect’s “build the wall” campaign slogan into government policy. The project, which is likely to include additional fencing rather than the concrete wall Mr. Trump discussed during the campaign, could cost $10 billion or more, depending on the scope

of the project, aides said. House Republicans are considering including border security funds in the next spending bill, or bills, that Congress is expected to pass before the government’s current funding expires at the end of April. Alternatively, lawmakers could choose to pass a stand-alone border security bill, but that could take more time and draw more controversy. Mr. Trump wrote on Twitter Friday that any plan to fund the project with U.S. taxpayer money doesn’t undermine his campaign pledge. “The dishonest media does not report that any money spent on building the Great Wall (for sake of speed), will be paid back by Mexico later!”

Mr. Trump wrote. During his campaign, Mr. Trump repeatedly called for a wall on the Mexican border and asserted that Mexico would pay for it, something Mexican President Enrique Peña Nieto said his nation wouldn’t do. Mr. Trump, a Republican, has said he would compel Mexico to fund the wall by threatening to cut off remittance payments that Mexicans living in the U.S. send to their families in Mexico. The president-elect also said Mexico could be pressured in trade negotiations by threats to cut off tourist or business visas to Mexicans or to increase visa fees. Sean Spicer, a spokesman

for Mr. Trump’s transition team, said Friday that in October the campaign called for funding a southern border wall “with the full understanding that the country of Mexico will be reimbursing the United States for the full cost of such wall.” Mr. Spicer declined to offer an estimate of the wall’s cost or the length of time that the U.S. would have to wait for reimbursement. Congressional aides said the cost could range from about $4 billion to more than $10 billion, depending on details of the project. Others estimate the price tag could be even higher. —Kristina Peterson contributed to this article.

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | A5

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OBITUARIES

F. ROSS JOHNSON 1931 — 2016

BY JAMES R. HAGERTY F. Ross Johnson is mainly remembered for the fleet of corporate jets that ferried him to celebrity golf events and other luxurious perks he awarded himself as chief executive of RJR Nabisco Inc. When Time magazine put him on the cover in 1988, the headline read: “A Game of Greed.” Yet the Canadian-born executive may have done some good for American corporations while having a ball on the RJR tab. He was an early exponent of the idea that corporate jobs shouldn’t be seen as lifetime entitlements. He smashed fusty traditions and bureaucracies. His exploits—made famous by the book “Barbarians at the Gate”—strengthened the resolve of investors and directors to keep a closer eye on CEOs, said Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware. “It was the beginning of the end for the imperial CEO,” Mr. Elson said. Mr. Johnson died of pneumonia

Dec. 29 at his home in Jupiter, Fla., a spokesman said. He was 85. Building for the long term was never Mr. Johnson’s strong suit. R.J. Reynolds, the maker of Camel and Winston cigarettes, wasn’t a good fit with Nabisco Brands, the home of Oreo cookies, Ritz crackers and Planters peanuts. The companies he merged were broken back apart in 1999. He loved flashy deals and being pals with celebrities; he had scant interest in the daily corporate grind. RJR Nabisco’s brands were so strong, he told Fortune magazine in 1988, “you could put your crazy old aunt in and run it for a while.” “He was not strategic,” said John Greeniaus, who ran the Nabisco business under Mr. Johnson. “He was like a really intelligent sixyear-old in a sandbox, flailing around, and if he hit someone with his shovel, it was just an accident.” He charmed even those who deplored his business decisions, Mr. Greeniaus said. Mr. Johnson was at his best when quick decisions were needed.

LOUIS PEPPER 1924 — 2016 When CEOs retire, they generally are expected to fade away. Louis Pepper couldn’t quite manage that. After he retired from Washington Mutual Inc. in 1991, he initially liked the way his successors were running it, but later worried the Seattle-based bank was veering off course, particularly in home mortgages. Mr.

JOHNSON FAMILY

RJR Nabisco’s CEO became a symbol of corporate excess in the 1980s. His exploits may have helped stiffen the spines of corporate directors, improving oversight.

F. Ross Johnson’s deeds were chronicled in the book ‘Barbarians at the Gate.’ “My feeling is that when you have most of the facts, you go,” he told Canada’s Globe and Mail. “You can wait to be absolutely sure you’re right. By then, you’re probably wrong again.” With his quick

Pepper warned his successor and anyone else who would listen about the risks of a housing bubble. Some found him a bit of a pest. Then came the financial panic of September 2008. As depositors rushed to yank out their money, U.S. government regulators seized Washington Mutual and sold the bulk of it to J.P. Morgan Chase & Co. Mr. Pepper and several other former Washington Mutual executives raised more than $1 million for a fund that provided retraining, scholarships and other help for Washington Mutual alumni who lost their jobs and savings. Mr. Pepper died of lymphoma Dec. 23 at home in Seattle. He was 92.

thinking and short attention span, he might have been a standout company doctor, called in to deal with crises. His underlings learned they had a current assignment, not a perma-

PHYLLIS SEWELL 1930 — 2016

After graduating from college, Phyllis Shapiro wasn’t expecting a long career. She needed something to keep her busy until she got married and started a family. She saw a notice in her hometown paper, the Cincinnati Enquirer: “Wanted: young college graduate, no typing or shorthand required.” She got the job: research analyst at

nent job. He had an almost Maolike habit of shaking things up to prevent anyone from getting too comfortable. Offices were abruptly moved, units suddenly sold. “I kept everybody confused,” he said. “It’s a bit like being a magician.” The magic finally wore off when, disappointed by a lagging share price, he tried to take RJR Nabisco private with a leveraged buyout in October 1988. RJR’s board, stoked by free plane rides, lucrative fees and consulting contracts, had been very supportive of the CEO. But directors were outraged by reports that Mr. Johnson would reap outsize profits from the deal. They rebelled and accepted a rival $25.07 billion bid from Kohlberg Kravis Roberts & Co., leading to what was then the largest takeover ever. Mr. Johnson resigned. He had the consolation of $53 million in golden parachute payments, but his reputation was shredded. Though he served on a few bluechip boards, he never again played a major role in business. Across America, corporate pay continued to climb, but some companies axed the more lavish executive perks. Frederick Ross Johnson was born Dec. 13, 1931. His father was a hardware salesman who hadn’t completed high school. His mother was a bookkeeper. At the University of Manitoba, he was a fraternity president and played varsity basketball. He earned a master’s of business administration at the University of Toronto. He is survived by his third wife, Susan, two sons and two granddaughters. Read in-depth profiles of those featured here at WSJ.com/Obituaries

Federated Department Stores Inc., now Macy’s Inc. After she married and had a child, the company proved flexible, letting her work three-day weeks for a spell. Under her married name, Phyllis Sewell, she rose to senior vice president, responsible for research and planning, and served on the boards of other big companies, including Sysco Corp. She never thought of herself as a role model or feminist, said her son, Charles Sewell. Still, she became a mentor for other women in business, including Karen Hoguet, now Macy’s chief financial officer. Mrs. Sewell died of congestive heart failure Dec. 26, her 86th birthday.

U.S. NEWS

In Trump’s Spy Revamp, Many See Flynn’s Input In 2010, then-Maj. Gen. Michael Flynn, at the time the top U.S. military intelligence official in Afghanistan, slammed the U.S. spy apparatus he helped to oversee as bloated and out of touch. Four years later, he was fired as the head of the military’s largest intelligence agency—in his view for speaking truth to power about the inadequacies of the nation’s national security preparedness. Today, Gen. Flynn, who retired in 2014 as a lieutenant general, is in a position to again push his views of how America should protect itself, this time as President-elect Donald Trump’s choice for national security adviser. Gen. Flynn and senior Trump advisers are eyeing potential structural changes to components of the U.S. intelligence community. The Wall Street Journal reported this past week that transition team officials have discussed paring back the authorities of the Office of the Director of National Intelligence and reducing the size of its staff, and also discussed possible changes at the Central Intelligence Agency. The effort is still the subject of internal discussions, and the Trump transition team has made no formal plans, people familiar with the discussions said. Sean Spicer, Mr. Trump’s spokesman, said Thursday that discussions have been “tentative,” and denied there were plans for an overhaul. But Mr. Trump’s aggressive skepticism of the intelligence community clearly echoes Gen. Flynn’s views on both the organization and the quality of national intelligence and the need for changes, according to officials familiar with the transition team and Gen. Flynn. As the president-elect’s closest adviser on national security, he briefs Mr. Trump on devel-

TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY GORDON LUBOLD AND SHANE HARRIS

Lt. Gen. Michael Flynn at Trump Tower this past week. opments and sits in on classified presentations from U.S. intelligence officials. The Trump transition team said Gen. Flynn wasn’t available to comment. In tweets, Mr. Trump has questioned intelligence conclusions that Russia-linked hackers intervened to help him win the election. Current and former intelligence officials have said that they see Gen. Flynn’s influence in those tweets and in Mr. Trump’s frequent allusions to the intelligence community’s botched 2002 analysis of Iraq’s suspected weapons program. “I absolutely see Mike Flynn’s fingerprints on that,” said a former U.S. official with ties to the Trump transition who is familiar with Gen. Flynn. Proposed changes to the Office of Director of National Intelligence have been offered for years by critics who said the office had grown too large and beyond its original scope. In that respect, some officials said Gen. Flynn’s proposals could be the latest iteration of longstanding proposals. Others also detect a whiff of revenge. Gen. Flynn was removed as head of the agency by James Clapper, the director of national intelligence, and Michael Vickers, the civilian head

of Pentagon intelligence at the time, because of his poor management of the agency, said U.S. officials who were familiar with his removal. Former senior intelligence officials voiced concern that Gen. Flynn may harbor grievances. “I get concerned about that, and I think it falls into this larger sense of an atmosphere that is all about gloating and payback,” said a second former senior U.S. intelligence official who has worked with Gen. Flynn. Gen. Flynn believes he was removed because he had challenged the Obama White House over the need to go after al Qaeda and other militant groups. “I felt the intel system was way too politicized, especially in the Defense Department,” he wrote last summer. Officials close to the transition said Americans should expect Mr. Trump to push for overhauls of various areas of government. Dennis Blair, a retired fourstar admiral who was director of national intelligence in 2009 and 2010, said the idea of bloat is a “canard” and argued the intelligence community needs an umbrella agency to be in charge. —Paul Sonne and Julian Barnes contributed to this article.

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WORLD NEWS

Marines Head Back to Afghan Hot Spot U.S. troops to replace Army advisers in Helmand province, site of earlier tough duty WASHINGTON—The Pentagon will deploy approximately 300 U.S. Marines to Helmand province in southern Afghanistan beginning in the spring, the Marines said Friday, a return of those forces to a region where they previously engaged in heated combat. The troops will be the first Marines in Helmand since 2014. Replacing a U.S. Army contingent, the Marines will serve as advisers to Afghan soldiers and police officers fighting Taliban forces. A few dozen Marines and Navy personnel are currently deployed in the north of the country, where they are joining with forces from the country of Georgia in guarding Bagram Air Field. Marines left Helmand in 2014 when their combat mission ended and they turned over their major base there, Camp Leatherneck, to the Afghans. At least some of the Marines will head back to Leatherneck, the Corps said. Afghan forces are bearing the brunt of the fighting in the country, with more than 15,000 casualties in the first eight months of 2016, including more than 5,500 deaths. Weak leadership and high casualty rates have caused morale to plummet among conventional forces, and officials say the insurgents now control more territory than at any time since 2001. Over the past year, U.S. and Afghan commandos have been forced to step in to prevent as many as half a dozen provinces from falling to the Taliban. Helmand province is particularly fragile, as the Taliban have advanced around the provincial capital in recent months and fighting routinely breaks out along the city’s outskirts. “While the Afghan security

WATAN YAR/EUROPEAN PRESSPHOTO AGENCY

BY BEN KESLING

Afghan security forces fighting Taliban militants in November in Helmand province, where a contingent of U.S. Marines is to be deployed for the first time since 2014. forces continue to develop and make progress, challenges and capability gaps persist,” said Brig. Gen. Roger Turner, who will command the Marine task force in Afghanistan. “The Marine Corps has a deep operational history in Afghanistan.” Many of the Marines come from the 6th Marine Regiment based in North Carolina, he said, and some of those troops have deployed multiple times

to Afghanistan and will build on existing relationships with their Afghan counterparts. Gen. Turner said the Marines under his command come from a variety of job specialties and will work with the Afghans on intelligence, logistics and operations, among other tasks. While working with Afghan army elements who aren’t typically at the front lines of

combat, the Marines will “have the ability to go places where we need to go,” Gen. Turner said, suggesting the U.S. forces could leave their bases with Afghan troops. “We’re viewing this as a high-risk mission,” Gen. Turner said. “We’re not in any way viewing this as a noncombat mission or anything to take lightly.” Marines began their in-

volvement in Afghanistan in 2001. In 2010 Marines took over responsibilities for northern Helmand province from British troops and that year pushed into Sangin, where they saw heavy fighting. By 2013 the Marines had shifted from a direct-combat role to one of advising Afghan forces. They left the country the following year, more than a decade after first arriving.

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Russia Announces Naval Drawdown in Syria Trump,

U.K.’s May Will Meet In Spring

BY THOMAS GROVE

BY JENNY GROSS

ASSOCIATED PRESS

MOSCOW—Russia’s top general said that his country would draw down its military presence in Syria, starting with a withdrawal of its warships from the eastern Mediterranean. Gen. Valery Gerasimov, the chief of Russia’s general staff, said Friday that Russia would withdraw the aircraft carrier Admiral Kuznetsov from the waters off the coast of Syria. The ships deployed with the carrier in support of Syrian President Bashar al-Assad will also be withdrawn, he said. Whether the reduction in the number of ships also means an overall decrease in Russian firepower in the region or a scaling back of its military campaign in Syria wasn’t known. In October, Russia’s parliament ratified an agreement that allows the Kremlin to indefinitely maintain a military deployment in Syria aimed at what it said was peace and stability in the region. On Dec. 23, Russian President Vladimir Putin ordered the expansion of Russia’s naval facility in Tartus. There were no indications that the drawdown announced Friday is permanent or represents a diminished Russian commitment to keeping President Assad and his regime in power in Damascus. Amid a shaky cease-fire in Syria brokered by Russia and Turkey, the spokesman for the rebel group Nour al-Din alZinki greeted reports of the drawdown with skepticism, saying Russia was likely to reintroduce its military forces if the truce collapses. “Russia has previously announced that it would cease its operations and airstrikes,” said the spokesman, Abdul Salam Abdul Razzaq. “But in reality it increased its forces on the ground and entered the war in a direct way. So how can we trust them?” In March 2016, the Kremlin announced a scaling back of its forces in Syria, saying Mos-

An undated handout photo released by the Russian Defense Ministry is said to show military engineers driving in Aleppo, Syria. cow’s task there was largely accomplished. But bombing raids continued and increased as the battle for the northern Syrian city of Aleppo escalated late last year. The naval battle group led

A naval battle group used to help Assad retake Aleppo is being withdrawn. by the Admiral Kuznetsov, the Russian navy’s flagship, deployed to the eastern Mediterranean in the weeks leading to the final, successful push by regime forces to retake

Aleppo’s rebel-held eastern neighborhoods. In his announcement Friday, Gen. Gerasimov said the Admiral Kuznetsov and other Russian naval forces were critical to the Syrian regime’s success in the battle. “The deployment of naval forces in the fight against terrorist groups allowed the liberation of Aleppo, the economic capital of Syria, in the shortest period of time,” he said. After Syrian government troops and their allies took full control of the city, Mr. Putin announced a nationwide ceasefire in Syria, followed by talks in the spring between the government and rebels. The Russian leader said he would reduce Moscow’s military contingent in the country

but that Russia would continue to fight “terrorism” and to support the Assad government. As the Admiral Kuznetsov ended its mission off Syria’s coast on Friday, Syrian army chief Gen. Ali Abdullah Ayoub visited the ship, Syrian state media reported. The general acknowledged the important role played by Russian forces in the war and urged further military cooperation between Moscow and Damascus, it said. Russia has maintained a flotilla of ships in the eastern Mediterranean and supplied Damascus with military aid for years, transferring the arms through its naval installation at Tartus. Its stepped-up intervention in Syria began in September

2015 with airstrikes against what it said were Islamic State targets. Since then, Syrian rebels, their allies and supporters say, Moscow has targeted mostly those less extremist rebels groups fighting to unseat Mr. Assad. Russia’s Syria campaign has tested its navy. Two Russian aircraft fell into the Mediterranean while trying to land on the Admiral Kuznetsov, the country’s sole aircraft carrier. The pilots were saved in both cases. The defense ministry said Friday that Russia’s military assets in Syria were adequately protected by Russianmade S-300 and S-400 antiaircraft systems. —Raja Abdulrahim in Beirut contributed to this article.

LONDON—Prime Minister Theresa May will meet with President-elect Donald Trump in the spring, marking the first visit between the two leaders, Downing Street said Friday. Two senior advisers to Mrs. May traveled to New York and Washington recently to meet with senior figures from Mr. Trump’s team and lay the groundwork for the visit, a U.K. government official said. The official said no date had been set for Mrs. May’s trip to the U.S. Britain, a longtime U.S. ally, is eager for U.S. support as it extricates itself from the European Union. But the relationship between the two leaders was complicated after Mr. Trump met Nigel Farage, the outspoken leader of the anti-immigration UK Independence Party, days after Mr. Trump’s election. Later, the U.K. government gave a cool reception after Mr. Trump broke with diplomatic protocol and suggested that Mr. Farage, one of the lead campaigners for Brexit, would make a good ambassador to Washington. Downing Street said Mrs. May looks forward to visiting Mr. Trump. Some U.K. Conservative lawmakers have hailed Mr. Trump’s election, hoping he will prioritize relations with Britain and pave the way for a smoother Brexit. But the two leaders appear to have diverging views on issues including Russia and trade. While Mrs. May has repeatedly said the U.K. will continue to be one of the strongest advocates for trade as it leaves the EU, Mr. Trump has blamed free-trade agreements for rising inequality and job losses in the U.S.

THE WALL STREET JOURNAL.

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WORLD NEWS

Feud in prisons for smuggling turf comes as authorities struggle to control inmates BY ROGERIO JELMAYER AND SAMANTHA PEARSON SÃO PAULO—More than 30 inmates were killed, many of them mutilated, in Brazil’s second prison riot this week as drug gangs based in overcrowded prisons fight over cocaine-smuggling routes. The state government of Roraima in northern Brazil said 31 inmates were killed Friday morning in a prison in the state capital of Boa Vista. “Many of the dead have been decapitated and had their hearts and guts ripped out,” said the state’s justice secretary, Uziel de Castro Jr., who witnessed the scene inside the prison following the violence.

Packed In Brazil has expanded prison capacity but overcrowding has persisted Prisoners

Capacity

600 thousand 500 400 300 200 100 0 2000

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Source: Ministry of Justice

THE WALL STREET JOURNAL.

Roraima’s state government initially said 33 prisoners had died but revised the figure late Friday after investigators spent the day piecing together the inmates’ dismembered bodies. The massacre comes days after 60 inmates were killed in the northern Brazilian city of Manaus during a 17-hour riot that ended Monday, the deadliest prison uprising in Brazil since the massacre of 111 inmates in São Paulo’s Carandiru prison in 1992. The killings raise pressure on President Michel Temer, who is struggling to get spending under control while dealing with the country’s deepest recession on record and a far-reaching corruption scandal. Minister of Justice Alexandre de Moraes said he is working with state governments across Brazil to prevent further riots and tackle street crime. He insisted that Brazil had control of its prisons but acknowledged that they were overcrowded. “We’re going to take public safety in Brazil to a new level,” he said following Friday’s riot. In the Manaus riot earlier this week, members of the Northern Family drug gang decapitated and dismembered inmates from the rival São Paulo-based First Capital Command gang, or PCC, Brazil’s biggest criminal group. The top prison official in Amazonas state, where Manaus is located, attributed the massacre to a war between the PCC and the Red Command gang, an ally of the Northern Family, who are fighting for control over

JPAVANI/REUTERS

Drug Gangs Slaughter 31 In Brazil Jail

Relatives of prisoners wait for news at a checkpoint near the Roraima state prison in Brazil where 31 people were killed on Friday.

Central Bank Likely To Cut Rates Again SÃO PAULO—Brazil’s central bank will probably start cutting its benchmark interest rate more aggressively at Wednesday’s policy meeting, as the country’s economy shows few signs of recovering from a prolonged recession, economists said. The bank cut its Selic rate twice in the fourth quarter of last year, each time by a quarter point, leaving it at a still-

towering 13.75%. All 12 economists surveyed by The Wall Street Journal said they expect a bigger cut Wednesday, with nine predicting a half-point and three expecting 0.75 point. After two years of deep recession, and with inflation showing consistent signs of slowing, many economists said there was no reason for the monetary authority to continue with smaller rate cuts. “The scenario is bad enough to allow the central bank to take even stronger action,” said Flavio Serrano, an economist at Haitong Banco de Investimento

do Brasil SA, who forecast a half-point reduction. After contracting 3.8% in 2015, Brazil’s gross domestic product shrank an estimated 3.5% last year, according to the Finance Ministry. Consumerprice increases, meanwhile, are slowing. The rolling 12-month consumer-price index rose 6.6% through mid-December, down from 7.6% a month earlier. The inflation rate for the full year of 2016 will be published on Wednesday, and the median forecast in a survey by the central bank is for a rate of 6.38%. —Rogerio Jelmayer

smuggling routes from the cocaine-producing areas of Colombia, Bolivia and Peru. Brazil had almost 608,000 inmates as of June 2015 in prisons designed to house only

about 377,000, according to Brazil’s Justice Ministry. Mr. Moraes said on Friday that plans announced in December to invest 1.2 billion reais ($373 million) in expand-

ing Brazil’s jails would help reduce overcrowding by 15% by 2018. “Brazil’s prisons are medieval dungeons,” said José Eduardo Cardozo, a former jus-

tice minister. He said organized crime in Brazil is run from within prisons. Other riots could break out as drug gangs seek revenge, said Rafael Alcadipani, an academic at Brazil’s Getúlio Vargas Foundation. “You can’t kill 50 people from a rival faction and expect no response.” This week’s riots come just as Mr. Temer’s government struggles to push through economic reforms to help lift Brazil’s economy. “There is a big chance this could impact Temer’s administration,” said Carlos Melo, a political-science professor at São Paulo’s Insper business school, saying it is possible the prison riots could also spark violence on the streets. In 2006, São Paulo was paralyzed by a wave of attacks launched by the PCC, which left 493 people dead.

FROM PAGE ONE

PAY Continued from Page One out of Mr. Cook’s total annual compensation, which Apple said Friday declined for the first time since he assumed leadership of the company in 2011. His compensation is partly tied to Apple’s financial performance. Apple now is pinning hopes on the iPhone 7, which came out in September, and forthcoming versions, including an expected 10th-anniversary iPhone in the fall. Mr. Cook said in October that demand for the iPhone 7 and the bigger 7 Plus, which feature enhanced cameras and longer battery life, has outpaced supply. Apple won’t reveal quarterly sales for those phones until Jan. 31. The 212 million iPhones Apple sold last fiscal year contributed 63% of the company’s revenue. Since introducing the Apple Watch in 2015, analysts estimate Apple sold more of them in the watch’s first year than iPhones sold in the smartphone’s first year. Apple doesn’t break out sales figures for the Apple Watch in its quarterly report. Apple followed with the launch last year of wireless headphones called AirPods priced at $159. The product went on sale nearly two months later than expected, and analysts expected Apple to

produce 10 million to 15 million units initially. By comparison, Apple shipped 75 million phones in the final three months of fiscal 2015. Under Mr. Cook, Apple has more than quadrupled research and development spending; it spent more than $10 billion on R&D last year. But it has failed to release a runaway hit like the iPod music player, iPhone and iPad tablet, which together transformed Apple into the world’s most profitable company. Analysts expect Apple to benefit from the introduction of the 10th-anniversary iPhone in the fall. Cowen & Co. ana-

Apple hasn’t had a new blockbuster like the iPod, iPhone or iPad in years. lyst Timothy Arcuri expects the phone to include wireless charging and come in three different sizes, making it “arguably the most revolutionary and different-looking phone in years,” he said. But most sales of those phones won’t come in Apple’s 2017 fiscal year, which ends in September. Apple’s downturn last year came amid a lull of iPhone sales in China, where it faced rising competition from lowerpriced smartphones sold by lo-

Hits, and a Miss For the ﬁrst time under CEO Tim Cook's tenure, Apple missed its maximum revenue target for the year. $250 billion 200

Maximum revenue target

Actual revenue

150 100 50 0 FY ’11

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Note: Mr. Cook began his tenure as CEO on August 24, 2011 Source: the company THE WALL STREET JOURNAL.

cal rivals such as Huawei Technologies Co., Xiaomi Corp. and Oppo Electronics Corp. Revenue in Greater China, which includes Hong Kong and Taiwan, fell 17% in the fiscal year, compared with growth of 84% the prior year. Despite recent struggles, Apple under Mr. Cook is still by far the world’s most valuable company, with a market capitalization over $600 billion. And it remains the most profitable U.S. company, with net income of $45.7 billion in fiscal 2016. Its biggest phone rival, Samsung Electronics Co., has seen its flagship smartphone line plagued by battery fires and overheating incidents. On Friday, Apple said in a regulatory filing that annual sales of $215.6 billion were 3.7% below target, and its operating income of $60 billion came up 0.5% short for the fiscal year ended Sept. 24. Mr. Cook’s total 2016 compensation dropped to $8.75 million for the year, down 15% from $10.3 million in the year earlier. The decline was tied to his cash bonus, which hinged on exceeding revenue and profit targets set by the board. His base salary rose 50% to $3 million. Mr. Cook’s total compensation doesn’t reflect the megastock grant he received in 2011 when he took over as CEO, an award valued at the time at about $376 million. Apple’s five-most senior executives also saw their total compensation fall for fiscal 2016, according to Friday’s filing. Mr. Cook’s annual compensation is lower than that of other Apple executives, but the number is somewhat misleading because of the big restricted stock grant he received in 2011. Last August, 1.26 million shares vested and were valued at about $135 million. Mr. Cook has an additional 3.5 million shares that haven’t vested and are worth about $413 million based on Friday’s stock price. About 560,000 shares will vest each year between now and 2021, and the 700,000 remaining shares will vest in 2021. Shares of Apple closed Friday at $117.91 a share, up $1.30. —Austen Hufford contributed to this article.

Canine Companions John Sargent Noble Celebrated artist. Intimate portrait. Artistic genius. Masterfully composed and meticulously detailed, this charming, original oil was painted by John Sargent Noble, one of the most renowned animal portraitists of his age. His skill for capturing detail and his knowledge of anatomy reveal the influence of his teacher, the great Sir Edwin Landseer. Entitled The Young Master, this extraordinary composition is a charming example of Noble’s highly coveted sporting scenes. Signed (lower right). Circa 1880. Canvas: 203/4”h x 243/4””w; Frame: 255/8”h x 297/8”w. #30-5620

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A8 | Saturday/Sunday, January 7 - 8, 2017

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THE WALL STREET JOURNAL.

LEFT TO RIGHT: SEONGJOON CHO/BLOOMBERG NEWS; KIM HONG-JI/REUTERS

WORLD NEWS

Mayor Lee Jae-myung describes himself as a Korean Bernie Sanders. At right, thousands attended a protest in Seoul on New Year’s Eve demanding that impeached President Park Geun-hye resign.

Korean Upstart Aims to Challenge U.S. Presidential hopeful shakes up competition as outsider with calls for new approach BY JONATHAN CHENG SEONGNAM, South Korea— Even before a court decides on whether to oust South Korea’s impeached president, the race to succeed her is pitting a former head of the United Nations against an upstart claiming the insurgent mantle of Bernie Sanders. The looming political upheaval is set to reshape this U.S. ally’s trade relationships and its strategy to deal with volatile neighbor North Korea.

South Korea’s Constitutional Court is expected to decide within weeks on whether to remove President Park Geun-hye after the legislature voted to impeach her. Her removal would trigger an election within two months. In recent weeks, Mayor Lee Jae-myung, who favors reaching out to North Korea and taking a confrontational approach to the U.S., has emerged as a serious challenger against presumed frontrunner Ban Ki-moon, who just wrapped up his 10-year stint as U.N. secretary-general. Mr. Lee has called for direct talks with North Korean leader Kim Jong Un, for the possible removal of the U.S.’s 30,000 troops from South Korea, and

for the renegotiation of a trade pact with Washington. The U.S. alliance “has degenerated into a subordinate relationship where we give whatever amounts of money they ask us to give,” he said. “The U.S. should be begging us for the defense of East Asia.” That attitude dovetails with President-elect Donald Trump’s campaign threats to curtail military support for allies and renegotiate trade deals. A new South Korean leader would face the task of retooling an economy that faces slowing growth and rising competition from China, while working with Mr. Trump to curb Pyongyang’s nuclear capability. Opposition leader Moon Jae-in, the other leading

contender, has said he would seek to preserve strong ties with the U.S., and favors dialogue with North Korea as well as heavier regulation of the country’s powerful conglomerates, known as chaebols. Mr. Lee called South Korea’s biggest problem “unfairness and inequality.” His prescription: wealth redistribution through higher taxes, and deep changes to chaebols such as Samsung and Hyundai, which he calls a cancer that must be excised. The message is resonating as growth has stagnated and youth unemployment has jumped to record highs. A court decision to keep Ms. Park in office would likely renew calls for her resignation

and lead to reinvigorated street protests. Mr. Ban has long been considered Ms. Park’s most likely successor and is the candidate most closely aligned with her views on promoting closer international cooperation and pushing North Korea on its human-rights violations. But the similarity between his expressed views and those of Ms. Park has dragged down his public support, polls show. Mr. Ban hasn’t officially declared his candidacy and couldn’t be reached to comment. He recently said he would “give his all” to South Korea upon his return, which was widely interpreted as a de facto declaration of candidacy. Mr. Lee, the 52-year-old

mayor of Seongnam, a satellite city of Seoul, rose to prominence in the fall by calling for the removal of Ms. Park, whom prosecutors accuse of helping a friend extort money from chaebols. She denies the accusations. Mr. Lee describes himself as the Korean version of U.S. presidential candidate Bernie Sanders and has cast himself as the only true outsider among the leading contenders. “Change comes from the margins, and there is a limit to the change that the existing leaders can bring about,” he said. “It happened with Brexit and in the U.S. presidential election, and Korea will be next.” —Min Sun Lee contributed to this article.

BY PETER LANDERS

Japan is recalling its ambassador to South Korea, the latest sign that relations between two of the strongest U.S. allies in the Pacific have fallen back into acrimony after a landmark deal in December 2015. Tokyo said it was responding to a civic group’s installation of a statue in front of the Japanese consulate in Busan, South Korea, commemorating women who were forced into sexual service for Japanese soldiers in World War II. A South Korean civic group, the Committee of Youth for Erecting a Peace Monument, installed the “comfort woman” statue on Dec. 30 in protest against the 2015 deal. The statue is similar to one that another civic group, the Korean Council for the Women Drafted for Military Sexual

Slavery by Japan, had erected in front of the Japanese Embassy in Seoul. A day before the new statue’s installation, Japanese Defense Minister Tomomi Inada visited the Yasukuni Shrine in Tokyo, which honors Japan’s war dead, including convicted

Tokyo said it was responding to the installation of a statue of a ‘comfort woman.’ war criminals. Official appearances at the site routinely anger South Korea, whose foreign ministry last week called Ms. Inada’s visit “deplorable.” Japan’s chief government spokesman, Yoshihide Suga, said the new statue would

have a negative impact on ties between Japan and South Korea and violates the Vienna Convention, which defines a framework for diplomacy. He said Tokyo would take several other retaliatory steps including postponing talks on currency cooperation. South Korea called the Japanese move “extremely regrettable” and said it would keep striving to improve relations. With U.S. prodding, the two nations agreed at the end of 2015 to what they described as a final and irrevocable settlement of issues involving the wartime “comfort women.” Japan apologized for their treatment and in 2016 supplied more than $8 million in government funds to support the few surviving women. However, political turmoil in South Korea, capped by the impeachment of President Park Geun-hye in December,

has contributed to unraveling the warmer ties. The Obama administration has frequently found itself vexed by the frosty relations between South Korea and Japan, both of which host tens of thousands of U.S. troops. All three nations share an interest in halting North Korea’s development of nuclear weapons. The conflict over the statue was discussed Thursday at a previously scheduled meeting in Washington between Deputy Secretary of State Tony Blinken and his Japanese and South Korean counterparts. “At a time like this, it’s incumbent in particular on Japan, which has a strong and stable government, to exercise restraint and to resist the siren call of right-wing nationalists,” a U.S. official said. —Megumi Fujikawa, Felicia Schwartz and Kwanwoo Jun contributed to this article.

YONHAP/EUROPEAN PRESSPHOTO AGENCY

Japan Pulls Out Its Envoy to Seoul

Women visiting the new statue in Busan, South Korea, on Friday.

Chinese, Russian Naval Visits In Southeast Asia Point to Shift BY JEREMY PAGE AND JAKE MAXWELL WATTS

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A Chinese attack submarine made an unprecedented stopover in Malaysia this week in a rare public display of China’s expanding undersea force and a further sign of power realignment in Southeast Asia. The visit came as two Russian warships docked in the Philippines—a U.S. treaty ally— and Moscow offered to sell Manila advanced weaponry in another challenge to longstanding U.S. military relations in the region. The submarine and a Chinese navy support ship arrived in Kota Kinabalu, site of a naval base facing the South China Sea, on Tuesday and will stay until Saturday, a Malaysian naval official told The Wall Street Journal. The official said that it was the first time a Chinese submarine had visited Malaysia and that the two vessels came for rest and recreation. China’s Defense Ministry said in a statement late Friday that the submarine stopped in Malaysia for rest and supplies while returning from antipiracy patrols in the Gulf of Aden and off the coast of Somalia. China has participated in multinational patrols there since 2009. The statement gave no further

details. The Chinese and Russian naval forays into Southeast Asia reflect a reorientation of defense ties in the region as Beijing and Moscow seek to reshape a global security architecture that has been dominated by the U.S. for decades. A visit by a submarine is qualitatively different, said Euan Graham, director of the International Security Program at the Lowy Institute in Sydney. “It signifies a higher level of trust involved on the host country’s part, because of the sensitive nature of submarine operations, as stealthy war-fighting or reconnaissance platforms,”

he said. The Kota Kinabalu base houses Malaysia’s two Frenchbuilt Scorpène-class submarines. U.S. Navy ships and submarines have used the base, along with facilities in the Philippines, as staging posts for operations in the South China Sea. But since an international tribunal ruled in July that most of Beijing’s claims in the area were illegal, China has been forging closer relations with some claimants, especially the Philippines and Malaysia. Philippine President Rodrigo Duterte has indicated he is willing to shelve the dispute and build closer ties with China.

An image posted this week on the Royal Malaysian Navy’s Twitter account welcoming the visit of a Chinese submarine.

Cash Curbs Slow India’s Economy BY RAYMOND ZHONG KOLKATA—India said its economic expansion could slow to 7.1% in the year ending March 31, from 7.6% a year earlier, though the estimate doesn’t reflect the full impact of Prime Minister Narendra Modi’s move in November to cancel almost 90% of the country’s cash. The projection for gross domestic product was released a month earlier than usual to accommodate the government’s decision to bring forward the annual budget announcement to Feb. 1. As a result, the estimate wasn’t calculated using data on corporations’ earnings, industrial output and government spending in the period after Mr. Modi abruptly voided all 500- and 1,000-rupee notes ($7.40 and $14.70) to flush out cash piles held by tax cheats and bribe-taking bureaucrats. India’s Central Statistics Office is scheduled to release another, more-complete forecast of annual GDP on Feb. 28. More recent signs have been pointing to a sharp slowdown. Factory activity shrank in December for the first time in a year, according to the Nikkei India Manufacturing Purchasing Managers’ Index.

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | A9

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WORLD NEWS

WORLD WATCH

New Zealand Wages War on Pint-Size Predators

MEXICO

Two More Men Die In Gas-Price Protests

A leader in eradication campaigns, the country aims to wipe out the critters killing its native birds by 2050

The death toll in protests and looting fueled by anger over gasoline price increases rose to six Friday when authorities confirmed that two men died in a confrontation between protesters and police in the central state of Hidalgo. There were four previous deaths in looting-related incidents and over the course of the week, at least 300 stores were looted and more than 1,000 people were detained, officials said. The protesters in Hidalgo were blocking a highway on Thursday and confronted police who were trying to keep order when gunfire broke out. Mexicans were enraged by the 20% fuel price increase announced last weekend as part of a government deregulation of the energy sector. —Associated Press

BOTTLE ROCK PENINSULA, New Zealand—New Zealand wants to rid itself of 30 million possums. It is also trying to stifle stoats, eradicate rats and generally root out its worst predators by eliminating millions of critters that have decimated native birds while playing havoc with the dairy, horticulture and forestry industries. In a battle that marries the high-tech and the mundane, New Zealand is testing everything from drones that could one day release poison to streetlights and even tea strainers as it tries to meet a self-imposed deadline to become predator-free by 2050. The program, unveiled in mid-2016, gathered momentum in November when New Zealand set up a company to funnel investment to specific projects and trials accelerated on the country’s south island. On the front line at Bottle Rock Peninsula, Duncan Kay leads a team of forest rangers testing deadly techniques using lures and sensors in a nature park in the Marlborough Sounds. This peninsula, swathed in glistening rain forest at the top of the south island, is where James Cook first landed on his discovery voyages in the 1770s. The explorer probably brought the first rats to islands unpopulated by land mammals, which then found grounddwelling birds easy prey. Opening a trap to find the decaying, black remains of a rat, Mr. Kay says the program’s ambition prompts mixed feelings in many. Some hikers, drawn to New Zealand from overseas because of its nature, have been known to disable traps by deliberately thrusting walking poles into them. “Is it what New Zealand wants to be known for, as the killers?” Mr. Kay says.

GERMANY

Payments Possible for Colonial-Era Killings Germany may make payments to Namibia for the killing of 65,000 tribespeople during colonial occupation, an episode that is seen by some as the first genocide of the 20th century, a Foreign Ministry spokesman said Friday. Spokesman Martin Schaefer said the two-year talks with Namibia’s government have entered a phase in which both sides are talking “in very concrete terms” about how to treat the events in the future. “This may include further payments,” he said. Germany already provides Namibia significant development aid—totaling some €800 million ($850 million) since Namibia gained independence from South African rule in 1990. His comments came a day after representatives of the Herero and Nama tribes filed a class-action suit in the U.S. against Germany, seeking reparations. Previous lawsuits have failed because the crime of genocide was recognized by the United Nations only in 1948, in response to the Holocaust committed by Nazi Germany. Germany’s Foreign Ministry has described the killings as genocide in recent years. —Associated Press

ROB TAYLOR/THE WALL STREET JOURNAL

BY ROB TAYLOR

Lead forest ranger Duncan Kay driving on Bottle Rock Peninsula, where his team has set up a half-mile wide ‘virtual barrier’ of traps.

Licensed to Kill From drones to tech traps, New Zealand turns to science to eliminate its worst animal invaders.

GETTY IMAGES

POSSUMS Introduced in 1837 to establish a trade in their fur, they damage native plants, compete with native birds, insects, bats and lizards for food and can transmit bovine tuberculosis.

GETTY IMAGES

RATS Three species have come in with humans, starting some 1,000 years ago: the Paciﬁc rat (kiore), the black rat and the Norway or brown rat. They eat birds (and eggs), lizards, insects and bats.

NEWSCOM

STOATS Pest control turned pest, this relative of the weasel and ferret was introduced to kill rabbits and hares, but has helped wipe out some native birds and is the leading threat to the kiwi. THE WALL STREET JOURNAL.

Source: Department of Conservation, New Zealand

“But the reality is we need to get rid of these things for conservation.” Mr. Kay’s team has set up a “virtual barrier” here, half a mile wide and built of parallel lines of traps laid every 5 to 10 meters. The aim is to intercept possums, stoats—a relative of weasels and ferrets introduced from Britain in 1884 to combat rabbits— and other predators. Once the peninsulas like this are cleared, the barriers would

be pushed farther out. The rest of the world is watching, especially other island nations whose native species are falling prey to imported predators. New Zealand’s experts helped to clear rats from nature reserves on Hawaii’s Oahu island and advised the U.K. on ridding its remote South Georgia territory of rodents threatening seabirds’ breeding grounds on the island. Mr. Kay says the country

each year loses 25 million native birds, including the flightless kiwi. Globally, predators including cats, rats, and foxes are responsible for almost 60% of recent bird, mammal and reptile extinctions, according to a September study published by the U.S. National Academy of Sciences. New Zealand’s reputation for eliminating predators dates to a 1960s program to create predator-free sanctuaries for threatened bird

species on offshore islands. At a laboratory outside the town of Lincoln, colleagues of Mr. Kay working for Zero Invasive Predators, a nonprofit funded by the government and philanthropists to test eradication methods, are seeking to detect nighttime predators with heat-sensing cameras. Another system still being experimented with, called Spitfire, tempts stoats to run through tubes on the forest floor where they would be squirted with chemical toxins, which lower oxygen in the blood to kill them. Street-lighting rigs test whether bright lights can drive predators toward darker areas set with traps. Elaine Murphy, a predator expert at New Zealand’s Department of Conservation, says the country has little choice other than to prove it can translate success killing predators to a vastly bigger scale. “You walk in Fiordland, or almost any New Zealand park, sure it’s chocolate box pretty. But there’s nothing left,” she said. “There’s almost no bird life because of introduced animals.”

FROM PAGE ONE

Contain your resources.

Continued from Page One edly GIF-ed and retweeted. What’s more, some of the buzziest names in women’s fashion right now aren’t easy to pronounce: Vetements, Jacquemus, Monse, Sies Marjan. Men don’t get let off the hook either: a high-end label favored by a number of male celebrities has two nonobvious sounding names: Ermenegildo Zegna. The phonetic spelling is AIR-MEN-EH-JILDO ZENYA, according to a spokeswoman. Another label is Ami, which is pronounced like the French word ami meaning friend, AHMEE, according to a press representative. Steve Carell memorably botched Brunello Cucinelli on the red carpet at last year’s Golden Globes, saying: “Brunello Cucillini is all I’m going to say for the rest of the night,” pronouncing the name BRU-NE-LO KU-CHI-LINNI. Several viewers tsk-tsked him about it on Twitter. A representative for the actor, whose own last name has a high mispronunciation risk level, declined to comment. At Brunello Cucinelli, a luxury Italian label, a spokeswoman said the company reviews the pronunciation— BRU-NE-LO KU-CHI-NELLY— with stylists who dress celebrities “just to be sure.” She added, in the email, “Steve wore us the previous year at the Oscars and said it flawlessly! However we do understand it can be a mouthful.” For celebrity stylist Sam Spector, whose clients have included Neil Patrick Harris and Daniel Radcliffe, “it is customary to provide a note card with all the ‘credits’ that the celebrity is wearing.” Then, if a name could be potentially hard to pronounce, he will phonetically spell it out on the card “to make the job easier for my clients.” Even less-tricky looking names can sometimes get butchered. The Lauren in Ralph Lauren sometimes gets pronounced LA-WREN rather than LAW-REN. Other names to watch out

EUROPEAN PRESSPHOTO AGENCY

NAMES

A model wears a creation from Vetements fashion house during Haute Couture Week in Paris in July of 2016. for include Lanvin, whose correct phonetic spelling is LAHN-VAH, according to a spokesman; Monse, which is MAUN-SAY, a spokeswoman said; Sies Marjan is SEES MAR-JAHN, according to a press representative and Jacquemus is JACKEU-MUSSS, a spokesman said. Cushnie Et Ochs sounds like CUSH-KNEEETTE–OX, said a press representative, and Balmain sounds like B’AL MEH.

If a name is difficult to pronounce, stylists will text phonetic spellings to clients. It falls on celebrity stylists to get the pronunciation right and pass it along to their clients. To ensure she knows the correct way to say a designer label’s name, celebrity stylist Christina Pacelli, whose clients include Laverne Cox, said “I’ll ask my colleagues who either work at the company or the brand or if I’m at the store I will ask.” In December, while shopping in New York at vanguard-fashion department store Dover Street Market, for example, she asked a sales associate how to pronounce Vetements. A spokeswoman for the label said in an email Vetements is pronounced something like VETMAHN “but you don’t say the n at the end.”

Then the stylists have to play schoolteacher to their celebrity clients. Celebrity stylist Brad Goreski, whose clients have included Jenna Dewan Tatum and Rashida Jones, said he goes over pronunciations with clients during fittings and on the day he’s dressing them. Sometimes a client will text him: “What was the pronunciation again?” while in the car en route to the function. He will reply with a phonetic spelling. “The schooling happens all the time,” said Mr. Goreski, who is also a co-host on E!’s “Fashion Police,” where he is expected to get the names right. Ms. Pacelli will also occasionally text phonetic spellings to clients. Stylists work hard to make sure they and their clients get the pronunciation right not just so the stars avoid public embarrassment but also to not offend the brands lending them the clothes, jewels, handbags, shoes and so on. “It’s [the brands’] moment of recognition that night,” said Mr. Goreski. “When they’re waiting for the celebrity to say ‘I’m wearing so and so,’ you want them to say the name correctly.” Actress Cate Blanchett is known for her impeccable pronunciation of difficult designer names and fashion terms such as haute couture on the red carpet. At last year’s Golden Globes, she wore a pink gown by Givenchy, whose proper pronunciation is JHEE-VONSHEE, according to a press representative.

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A10 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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FROM PAGE ONE

It sounds nutty, but Mueller is at the point of her life where nutty sounds right. and John Howard, a trio of Americans who joined in late summer to try to top a staggering human-powered mark: 167 miles an hour on a bicycle. “We get called crazy, of course,” Howard says. “But it’s what we do. There’s a big difference between taking a risk and calculating that risk. When risks are thoroughly calculated, we don’t see it as dangerous. We see it as adventure.”

Fast friends The story begins almost 60 years ago, in Springfield, Mo. Howard is a gangly 10-year-old when he walks into the local Schwinn dealership and sees a poster of French cyclist Alfred Letourneur with an intoxicating caption: 108.92 MPH ON A BIKE! Young Howard is entranced. He decides he wants a Schwinn just like Letourneur’s—and, maybe one day, that 108.92 mph record. First, Howard will become the best cyclist in his region, training on roads and trails around the Ozark Mountains. Then he will become one of the best in the country, winning the U.S. road racing championship in 1968, 1972, 1973 and 1975. He will represent the U.S. at the 1968 Olympics in Mexico City, as well as Munich 1972 and Montreal 1976. In 1971, he will win the gold medal in road cycling at the Pan American Games. Howard makes his attempt on the bicycle speed record in 1985. After he breaks it, reach-

Denise Mueller on the Bonneville Salt Flats in Utah set a course for an eccentric land-speed record: the fastest bicyclist in the world.

Photo Finish Current land-speed benchmarks Jet-propelled vehicle (set in 1997)

763.0 mph CAYCE CLIFFORD FOR THE WALL STREET JOURNAL

Continued from Page One brook. Moments ago, Holbrook towed Mueller and her bike from a standstill to a spot past the first-mile marker, where, at a speed in excess of 90 miles an hour, Mueller released the tow cable and began pedaling. Now, she rides in the Rover’s slipstream as Holbrook gently accelerates—a practice known as “drafting,” or “motor-pacing,” since the wind protection offered by the Rover means Mueller can go faster. Make no mistake: She is riding completely untethered. Through the Rover’s saltdusted rear window, Mueller can see into the SUV’s cockpit. Next to Holbrook, in the passenger seat, is John Howard, the venerable American cyclist and Olympian, now 69. It was Howard who discovered Mueller when she was a teenage cyclist growing up in Southern California. Howard himself bicycled 152 mph on these salt flats three decades ago—and it was he who talked Mueller into trying this madness, to become the fastest female cyclist and take a crack at the all-time motor-paced bicycle land-speed record. One hundred thirty miles an hour. Around this speed, strange things begin to happen, Mueller knows. Air flowing off the Rover will rush and swirl to fill the space behind it, which in turn will push Mueller and the bike forward. The phenomenon has a name: the Von Karman Effect, after the Hungarian astrophysicist Theodore Von Karman. The Vortex, Howard calls it. The Hand of God, Mueller prefers. Mueller’s ride becomes trickier now. She and Holbrook compare it to a waltz. Holbrook has to be careful with the accelerator to make sure Mueller stays in the Rover’s slipstream. Mueller can’t let the force of the vortex shove her forward too hard into the bump bar at the back of the Rover. She can nudge the Rover a little, but too much could knock her down. Getting knocked down is bad, potentially fatal. Then again, at this speed, pretty much everything is. One hundred forty miles an hour. It is a formality at this point: Mueller has ridden a bicycle faster than any woman ever has. She keeps pedaling across the salt flats. The Rover keeps accelerating, into the horizon. Mueller wants to go faster. She always has. Speed does something to Denise Mueller, Shea Holbrook

JARRARD COLE/THE WALL STREET JOURNAL

FAST

Wheel-driven vehicle (2001)

458.4 mph Motorcycle (2010)

376.4 mph Bicycle (1995)

166.9 mph Foot (2009)

27.8 mph*

Driver Shea Holbrook and Denise Mueller celebrate their attempt to break the bicycle land-speed record at the Bonneville Salt Flats. ing 152.2 mph riding behind a modified streamliner car, he joins Johnny Carson on “The Tonight Show.” A couple of years later, Howard is on a training ride not far from San Diego when he notices a red-haired teenager pedaling behind him. Howard isn’t going his fastest, but it’s not like he’s casually pedaling, either. The rider stays with him for miles. Who is this kid? he wonders. It is Denise Mueller, age 14, from Encinitas, Calif. She is out with her father, Myron, finishing a charity ride from San Francisco to San Diego. “I didn’t know who John was,” Mueller recalls. “I was on his wheel for probably 10 miles before he turned around and introduced himself.” It is the beginning of a beautiful bicycling partnership. Howard, who lives not far from the Mueller family, encourages Denise to try out bike racing. She does—and wins her first race. Bike racing appeals to Mueller. She battles with attention deficit disorder, and the focus and speed of racing settles her. She becomes one of the best female bike racers in the U.S., not just on the road, but also in downhill mountain bike, crosscountry and track racing. Mueller will amass more than a dozen national titles, and take a silver medal in the downhill mountain bike race at the world junior championships. Then, at age 19, Mueller stops. The speed doesn’t get to her, but the pressure of winning does. Racing isn’t fun anymore. “I’m thinking everyone expects me to win,” she says. “And that anxiety got to the point where I was like, ‘Screw it, I’m getting out of this.’” She hangs the bike up, cold turkey. She gets married and has children. She runs her family’s home-security business. She is content. “I wouldn’t trade in a million years my life after getting out of cycling,” Mueller says. Two decades pass. By her early 40s, Mueller is feeling the pangs of a midlife crisis. Her marriage is coming apart. She has become a gym rat and a runner. When her 14-year-old son, Michael, starts distance running, Mueller reaches out to Howard to see if her old mentor would coach her son. A partnership is reborn. Mueller gets back on the bike and starts training for another edition of the San Francisco-toSan Diego charity ride. At a lunch in 2012, Howard proposes an attempt on the land-speed record. It sounds nutty, but Mueller is at the point of her life where nutty sounds right. She will tell this story many times, about Howard proposing the speed record. She describes it as a “match to gasoline.” “He lit that sucker when he said, ‘You realize there’s no women’s land-speed record?’” she says. “How many things are

left in history to be the first one ever to do something?” She doesn’t need much convincing. Mueller wants back. She wants to go fast again.

Saddle up There is no official competition to be the fastest bicycle rider in the world. It is a bit of a free-for-all, open to any dreamer or daredevil willing to try. That includes the Brooklyn, N.Y., man credited with launching the idea, Charles Murphy. In 1899, he rode on planks behind a passenger car on the Long Island Rail Road at 60 mph. Mile-a-Minute Murphy, they called him after that. Since then, the “paced” cycling speed record (there are also unpaced and downhill) has bounced among European and U.S. riders. In 1995, Dutch cyclist Fred Rompelberg hit 167 mph at Bonneville. The bicycle Mueller will use is unlike anything you will see on a casual Sunday ride. To maintain such a high speed, it

*Usain Bolt clocked while running the 100 meters at the Berlin World Championships Sources: International Federation of Automobiles; International Motorcycling Federation; Guiness Book of World Records

THE WALL STREET JOURNAL.

must generate a spectacular amount of torque. A bike with traditional gearing would spin helplessly: Tour de France racers max out at speeds around 48 miles an hour in a sprint. Mueller’s bike is a beast. It features two 60-tooth chain rings that work to raise the gearing and allow the bike to travel 125 feet with a single pedal stroke. The drivetrain lets Mueller accelerate at speeds surpassing 100 mph. Mueller also must find her form again as a cyclist—redevelop her explosive strength, as well as her bike-handling skills. Howard has Mueller dive back into training. On top of her day job, she puts in 15 hours a week on her bike. Howard gets Mueller to enter races, where, sure enough, she starts winning. Mueller had spent years feeling bad about quitting as a teenager. “I felt like I was a chicken,” she says. Now, she is back. For a while, Mueller and Howard keep their mission a secret, worried they could in-

spire a copycat racer before they are ready. But they need sponsors, so they begin telling people about the coming Bonneville attempt. They give their plan a name: Project Speed. Its full budget will be close to $150,000. They also need a driver. Mueller likes the idea of putting a woman at the wheel—an all-female battery on the flats. She hears about Shea Holbrook, a 26-year-old driver by way of Orlando, Fla. An entrepreneur with her own team, Shea Racing, Holbrook has won races on the Pirelli World Challenge circuit and driven jet-propelled dragsters to 278 mph. Like Mueller, Holbrook is obsessed with speed. As an only child in a Navy family, Holbrook was raised by a daredevil father and mother and was competing in water skiing at 7 years old. “I had Barbie dolls, but I didn’t want to play with them,” she says, “I wanted to drive the car. I was driving at 6, and I was driving the boat before I drove the car.” Mueller and Holbrook talk by phone. The connection is instantaneous. Mueller is supposed to finish the call and go to an appointment, but she skips it to stay in her car and talk. “It was like she was my sister,” Holbrook says. A few months later, the two women are on their way to Utah, to make a run at history.

Flat out “The Mecca of Speed,” Howard calls the Bonneville Salt Flats. People have raced on these flats for more than a century, drawn by the smooth surface that seems to disap-

Built for Speed The bike Denise Mueller used on the Bonneville Salt Flats is a custom-designed hybrid, built with mountain-bike and motorcycle components to reach speeds beyond 100 mph Steering stabilizer

Keeps handlebar from shaking at high speed.

Carbon-ﬁber bike frame Elongated mountain bike frame for stability.

Redundant braking Motorcycle disc brake and sprocket in a single unit, and a rear brake on the back wheel.

Short travel suspension Improves stability and responsiveness. 3

Power meters embedded in crank Measures strength, efﬁciency and balance of pedaling; metrics are used to help the rider adjust technique. 1

Motocycle wheels

Bump bar and release

Double-reduction gearing and drivetrain

Seatpost isolation system

Motorcycle rims and tires with fixed-gear bicycle hub; tires are shaved to a flat profile to increase stability at high speed.

Allows bike to bump the pace car while staying in the slipstream; also serves as a mechanism for tethering and releasing from the pace car.

The pedals are connected Stablizes rider from to a ﬁrst reduction gear; vibrations generated that gear is connected to at high speed. a low-speed pinion with one more shaft. This pinion is connected to a second reduction gear mounted directly to the back wheel.

One crank

pear into the horizon. The Project Speed team will make its attempt here at World of Speed, a four-day event in September that, besides Mueller and her bike, is full of hopefuls chasing records in vintage streamliners, muscle cars and motorcycles. The parking lot is loud, eclectic, a Star Wars bar for motorheads. There is a hitch this year. Normally, land-speed records are attempted on a 5-mile track. But changes to the flats means there is less surface suitable for racing. The World of Speed track will be only 4 miles, a worrisome disadvantage. Mueller and Holbrook will have to go faster sooner, which is precarious since Mueller needs to be brought up to speed carefully. Going too hard too quickly could threaten her stability behind the Rover. This weighs on Holbrook. She could drive a car 175 mph with her eyes closed. But she has never been responsible for someone else before. “I don’t like to sugarcoat it, because the reality is that I’m helping keep her alive,” Holbrook says. “I feel like we’re on the operating table, and if I don’t do my job perfectly, she might not come out of it.” Mueller’s first attempt is on Day One, and it goes well. Holbrook tugs her safely up to 90 miles an hour and Mueller releases and powers forward in the draft. The vortex does its job. Mueller hits the bump bar on the back of the Rover a couple of times, but it’s OK; Holbrook keeps accelerating and Mueller stays upright. The World of Speed timekeepers announce that Mueller averaged 147.2 mph over the final mile. Their waltz is working. “We’re just going to perfect it and get even more out of it,” Mueller says. But there are problems in the next days. On a couple of aborted runs, Mueller slips out from behind the Rover before they get up to speed. Radio communication between Holbrook and Mueller comes and goes, so they rely on flashing lights on the back of the Rover. The SUV develops a computer issue brought on by the salt, which requires shipping it to Salt Lake City for repair, wiping out a full day. By the time Mueller is able to make her next run, it is windy and the flats have gotten slushy. Still, she and Holbrook get off to a good start. The effort Mueller makes to stay in the draft is less of a single exertion than it is a series of quick, furious sprints. When the vortex pushes her forward, Mueller can relax for an instant. Then, another sprint. On and on it goes. When they hit the end of the fourth mile, Holbrook squeals happily in the cockpit. One hundred forty-seven and three-quarter miles an hour. It is the best run yet. In the pit afterward, Mueller celebrates with her youngest son, Daniel, 16 years old. The team is so close to 167. “Damn close,” Howard says. Mueller and Holbrook believe they have found the right formula: a harder start, a sharper acceleration, and Mueller surging in sync with the motion of the vortex. But before the final session of World of Speed, the clouds open up and it pours overnight. The flats turn wet and slushy. Organizers cancel the final day. Project Speed 2016 is officially over. Mueller describes her feelings as “cloud nine, but frustrated.” “We didn’t get to go to that next level, but we all know there is so much more left on the table,” she says. “We had just started getting the dance perfected.” It is not a failure by any stretch: 147.75 mph is faster than any woman has ever ridden a bicycle. Before they leave Bonneville, Mueller, Holbrook and Howard are in agreement: They will be back next year. Mueller’s training will start soon. Holbrook will be at the wheel. Adjustments will be made. “Build a better mousetrap,” Howard says. “I cannot wait to come back and do it again,” Mueller says.

RIDE ALONG IN V.R. 125 ft

One revolution of the pedal propels the bike 125 feet. The system is designed for the rider to maintain a cycling cadence at speeds greater than 100 miles an hour. Source: Chris Garcia and Len Lochmiller

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WSJ .COM

See videos and a virtualreality view of the story. wsj.com/pageone

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Saturday/Sunday, January 7 - 8, 2017 | A11

OPINION Preserve the Filibuster—Then Overcome It

merican voters responded to President Obama’s failed recovery and government overreach by giving Republicans control of the White House, Senate and House. Yet despite this rejection of the Obama agenda, there is a growing fear that efforts to repeal it could be thwarted by the Senate’s filibuster. Democrats hold 48 seats in the upper chamber, and to block legislation with a filibuster takes only 41. The Republican majority could eliminate the Senate filibuster on legislation using the same procedure Democrats did in 2013 to end filibusters for all nominees except Supreme Court justices. But before remaking the Senate in the image of the House of Representatives, Republicans might revisit why our Founding Fathers designed the chamber as they did.

The Senate’s 60-vote threshold is a bulwark of freedom. Instead of nuking it, the GOP should defund Obama’s agenda. In the Senate the founders created a living bulwark to stop an overbearing government from taking root in America. During the Constitutional Convention, James Madison wrote that “the use of the Senate is to consist in its proceeding with more coolness, with more system and with more wisdom, than the popular branch.” George Washington is held to have explained the Senate to Thomas Jefferson with a question: “Why did you pour that tea into your saucer?” Jefferson replied: “To cool it.” Washington then explained: “We pour legislation into the senatorial saucer to cool it.” Unlike representatives, senators were elected by state legislatures, not by popular vote. The 17th Amendment, ratified in 1913, provided for the popular election of senators, eliminating the insulation from swings in public passion that had been provided by having senators chosen by state legislatures. The Founders also gave senators longer, staggered terms so that only a third of them would

stand for election at any one time. The chamber was a continuous body, with each successive Senate bound by its previous rules, unlike the House, which adopts new rules every two years. The House was empowered to act, but the Senate, with its unlimited debate, was empowered to stall. Unlimited debate would impede the institution’s operations unless a broad consensus existed—exactly the constraint that the Founders envisioned. Senate debate could not be terminated at all until 100 years ago, when war, as often happens, left government substantially altered. Before America had entered World War I, a small number of senators were determined to oppose the arming of merchant ships. That led the Senate to create its “cloSen. ture” procedure. A new Senate rule—adopted, appropriately, by a two-thirds majority—allowed the ending of debate if two-thirds of those senators present and voting agreed. In 1975 the Senate changed the cloture threshold to three-fifths of all sitting senators. But there was a loophole—what has come to be known as the “nuclear option.” A simple majority could upend Senate rules by voting to overturn the ruling of the chair on a motion to end debate. For nearly 200 years parties threatened to limit debate through this tactic, but no one actually did so until 1980, when then-Majority Leader Robert Byrd of West Virginia used it to reduce the number of cloture votes needed on nominees from two to one. As Caesar’s crossing of the Rubicon triggered the decline of the Roman Senate, so the Senate’s greatest modern defender, Sen. Byrd, established the precedent for Mr. Reid’s degradation of the rules in 2013. Democrats now regret this action, but not yet as much as they will in the weeks and months to come. Republicans are now under pressure to employ the Byrd-Reid precedent to nuke the filibuster on legislation. Yet most Republicans— unlike most Democrats—do not believe that the ends justify the means. They believe that the greatest risk posed by actions taken during the Obama presidency lies not in what was done—which voters rejected, and which can be undone—but in how it was done. CORBIS/GETTY IMAGES

By Phil Gramm And Michael Solon

Jefferson Smith (Jimmy Stewart) filibusters in ‘Mr. Smith Goes to Washington.’ If Republicans now follow the Democrats’ lead in overriding historical constraints like the filibuster rule on legislation, the damage to the system might never be repaired. Using Mr. Obama’s methods to overturn his agenda legitimizes his methods, and that is the greater peril for limited government in America.

ortunately there is another way to reverse President Obama’s transformation of America. Using the power of the purse, as our Founding Fathers intended, Congress can defund almost any government action with a simple majority in both houses and the president’s consent. Mandatory spending, which Congress cannot reach with the appropriations process, can be altered through a budgetary process known as reconciliation, which allows the Senate to act with 51 votes to achieve savings mandated in the budget. Using appropriations and reconciliation, Congress can annul the Obama agenda by simply stanching the lifeblood of government power—money. Republicans could give Democrats a choice: Either allow the Senate an up-or-down vote on replacements for defunded programs, or let those programs cease to function. Having defunded ObamaCare and Dodd-Frank, Republicans could then offer their alternatives. If the Democrats filibuster those bills, they would be

responsible for Congress’s failure to pass replacements. But even in that event, America would be better served repealing ObamaCare outright than allowing it to continue to constrain economic growth and infringe freedom in its current form. Defunding the Obama agenda would give the Democratic minority a strong incentive to compromise. With determination and imagination, the Republican Senate can restore the same kind of bipartisanship that cut taxes in 1981, reformed the tax code in 1986, reformed welfare in 1997, and balanced the budget in 1998. At the heart of the fight over limiting Senate debate is the broader question of limited government. During the 111th Congress, Democrats held a rare supermajority in the Senate, with their party totally committed to a massive expansion of government in American life. This allowed Mr. Obama to overcome a Senate filibuster and pass major legislative changes with no bipartisan support. Predictably, he went further than the country wanted to go, and voters have now demanded that the programs be repealed or replaced. When a normal partisan balance exists in the Senate, the threat of a filibuster forces the majority to accommodate the concerns of the minority. It forces political agendas to be stripped out and extreme ideas to be moderated. The filibuster

forces compromise and helps guarantee continuity of government policy. That means Americans generally don’t have to be political creatures, constantly agitating for the protection of our rights. We are free to focus on our daily lives without fear that every election will radically alter them. The courts have been little help, as they have allowed many of our constitutional protections to be stripped away. In the 1930s they rewrote the Constitution’s Commerce Clause to justify almost any government action. In this decade the Roberts Court failed to protect individual health-care rights. The Senate, with its diddling, dawdling and debating, is one of the last, best sentries at the gate to protect our freedom. In failing to bend reflexively to the whims of the majority for 228 years, the upper chamber has generally performed as the Founding Fathers hoped. If the goal were only to repeal ObamaCare, Dodd-Frank and other parts of the Obama agenda, it would certainly be easier to follow the ByrdReid precedent. But limited government is inseparable from unlimited Senate debate.

epublicans, in following the Democrats’ lead, would sweep away one of the last real protections of the rights of the American people. Institutional continuity and governmental stability would be weakened, and the ancient structure that has shielded our freedom and prosperity for centuries eroded. Radical lurches rather than gradual change would become the rule in politics and then all else—precisely what the Senate was designed to block. Changing America, for good or evil, should be difficult. It should require skill and persistence and a willingness to take your case for change to the people. If Republicans are willing and able to do the hard work of governing within the constraints prescribed by the Founders, the Obama agenda can be overturned—while preserving important institutional safeguards like the Senate filibuster. Mr. Gramm, a former chairman of the Senate Banking Committee, is a visiting scholar at the American Enterprise Institute. Mr. Solon is a partner of US Policy Metrics.

Uncomfortable Truths Behind California’s Economic Surge Los Angeles Happy days are here again in the Golden State—or so it might seem. Housing prices are nearing their prerecesCROSS COUNTRY sion peak. Gas prices have dropped By Allysia by $2 a gallon since Finley their apex five years ago. Employers are hiring: a net gain of 377,000 jobs in the past year alone. Since 2012, California’s economy has grown faster (an annual compounded 3.4%) than every state save Texas (4.8%) and Colorado (3.6%), according to the Bureau of Economic Analysis. Tech has led the upswing, but agriculture and manufacturing have increased, too. Lo, California two years ago eclipsed France to become the world’s sixth-largest economy, with a GDP of $2.46 trillion. The state continues to defy conservatives’ predictions that its progressive tax and regulatory policies—from carbon “cap and trade” to limits on suburban sprawl—will strangle the economy. Democratic politicians tout California’s apparent resurgence as vindication for liberal governance. Yet the Gilded State is prospering despite the governmentimposed handicaps, and for much of the middle class the economic luster is illusive. The seat of wealth-creation is Silicon Valley, where tech King Midases enrich nearly everything they touch, from real estate to retail. Unemployment in the San Francisco Bay Area is effectively nonexistent, with the official jobless rate hovering around 3%. Oakland, once shady, has become the Brooklyn of the West—a fast-gentrifying hipster mecca—and Los Angeles’s glitzy “Silicon Beach” has overtaken grungy Venice. Yet the exorbitant cost of living, driven principally by high prices for energy and housing, is pushing working-class families inland and out of state. Last year 109,000 more people left California than moved there, according to the Census Bureau. By contrast, Florida gained 207,000 and Texas added 126,000 net migrants. State data show that California refugees are mostly fleeing coastal counties for neighboring states.

What constricts the housing supply are stringent zoning and environmental regulations, which Democratic politicians in Sacramento have refused to relax. All this results in housing prices that could be fairly described as astronomical. Over the past four years, the median home price in Oakland has doubled to $620,000. House-flipping by investors, common before the recession, is back en vogue—further driving up costs. Yet renting is no solution. Not a single county in the state has recorded a median rent below $1,100 a month, according to the state Department of Housing and Community Development. In San Francisco the average monthly rent exceeds $4,500. That beats even New York City. The four most expensive metropolitan rental markets in the nation, according to a November analysis by Zillow, are San Jose, San Francisco, Los Angeles and San Diego. A third of California renters spend more than half their income on housing.

Although California represents 12% of the nation’s population, it hosts 22% of its homeless. Sky-scraping rents and home prices give new impetus to liberal demands for subsidized housing and

Cheap fossil fuels ease the cost of its green agenda. But the middle class still can’t afford to live there. a “living wage.” But subsidizing housing for low-income residents would simply drive up prices for middle earners. The minimum wage, set to rise to $15 an hour, is no fix either. The state housing department estimates that a person working full time at that rate still couldn’t afford rent higher than $780 a month. And the higher minimum wage will hurt struggling employers in inland areas

like the Central Valley (where unemployment is around 9%). Silicon Valley businesses support these progressive policies anyway because they fear that a working-class exodus—baristas, plumbers, landscapers, housekeepers, food deliverers— from the Bay Area would imperil the region’s economy. As blue-collar workers flee, they are being replaced by immigrants and their children. Today more than 1 in 4 Californians was born in another country—compared with 13.5% of Arizonans and 16.6% of Texans. It isn’t so much that immigrants are willing to do jobs that native-born Americans won’t, but that they don’t mind commuting long distances or living in cramped quarters. California has also benefited— despite itself—from shale fracking, which has helped drive down average gas prices to $2.78 a gallon from a peak of $4.66 in 2012. Cheap fossil fuels have eased the economic costs of Sacramento’s environmental policies, such as the

state’s cap-and-trade program and its renewables mandate. Even so, gasoline and electric prices in California are the highest in the continental West, burdening energy-intensive industries. Although the state’s manufacturing base has expanded in the past few years, that growth has been driven almost entirely by high tech—computers, electronics, chemical products. These businesses use less labor and energy than traditional manufacturing, but they create high-value products that boost the state’s GDP. One Silicon Valley leader recently complained to the Journal about the high costs of doing business there. But the state’s abundance of human capital, he said, nonetheless made it worthwhile. To adapt Adam Smith, there is a great deal of ruin in a state as innovative and resourceful as California. Ms. Finley is an editorial writer for the Journal.

The Library Lockout at Our Elementary School By Michael K. Hendershot

y 6-year-old daughter, Scarlett, is a first-grader at A.N. Pritzker Elementary, one of 600 schools in the Chicago Public Schools system. Scarlett enjoys reading, but she has recently faced a serious problem getting the books she wants. The Chicago Teachers Union is preventing her and her classmates from using the school library. Due to a combination of budget cuts and enrollment numbers that were lower than expected, Pritzker’s librarian was laid off shortly after this school year began. Without a librarian, Pritzker students aren’t allowed to use the library. Dozens of parents have offered to volunteer in the library to keep it open. There was so much interest that the parent-teacher organization created a rotating schedule of regular volunteers to help out. But before parents could begin volunteering, a teachers union member filed a formal complaint with the school system, objecting

to the parents’ plan. Several weeks later, a union representative appeared at a local school council meeting and informed parents that the union would not stand for parental volunteers in the library. Although the parents intended to do nothing more than help students check books in and out, the union claimed that the parents would be impermissibly filling a role reserved for teachers. The volunteer project was shut down following the meeting and the library is currently being used for dance classes. Randi Weingarten is president of the American Federation of Teachers, of which the Chicago Teachers Union is an affiliate. In response to President-elect Trump’s nomination of Betsy DeVos to lead the Education Department, Ms. Weingarten said in November that “we have an obligation to all children in America.” One part of getting children the education they need, she added, is ensuring that parents have a voice in their children’s education. The Chicago union’s actions do

not match Ms. Weingarten’s rhetoric. How does forcing the closure of an elementary school library square with the union’s stated mission of fighting for children? How does opposing parents who want to volunteer their time so that children can check out books constitute giving parents the voice they need?

When the librarian was let go, parents volunteered to help. But that’s a union job only, we were told. On its website, the Chicago union expresses concern at the “extremely limited in-school and life experiences” available to many poor and minority students. The union says it is focused on closing the “opportunity gap.” But by shuttering the Pritzker library the union is limiting experiences and creating an opportunity gap for the 47% of Pritzker students who come

from low-income families, as well as the school’s nonwhite pupils—74% of the student body. If history is any guide, the union will blame budget cuts for the library’s closure. City Hall deserves its share of criticism for not resolving the public school budget crisis, but the union is hardly blameless. During recent contract negotiations the union demanded that the Chicago Public Schools both provide pay increases and continue covering pension contributions that the city wanted teachers to begin paying for themselves. To avoid a strike, the city agreed to both demands. This only reduces the pool of money available to pay additional instructor salaries and maintain head count. My daughter Scarlett misses her library books. So do her classmates. If the union has the students’ best interests at heart, it will withdraw its opposition to parents volunteering in the school library. Mr. Hendershot is a lawyer in Chicago.

A12 | Saturday/Sunday, January 7 - 8, 2017

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THE WALL STREET JOURNAL.

OPINION

REVIEW & OUTLOOK

LETTERS TO THE EDITOR

Trump’s Auto Bluster

Make the VA Great, or Help Veterans Elsewhere

oes Donald Trump understand busi- production is in Mexico. U.S. companies continue ness? Real estate, no doubt, and brand- to make most of their higher-margin trucks and ing, sure. But the President-elect’s SUVs in the U.S. as labor is a smaller share of the Twitter assaults on auto comgross margins and production He should stick to panies make us wonder if he costs for large vehicles. Manuunderstands cross-border facturing heavier vehicles near making the U.S. a supply chains, relative busitheir main market also cuts better place to invest. transportation costs. ness costs, regulatory mandates, or anything else about Meanwhile, Mr. Trump building and selling modern also took credit for Ford Mocars and trucks. tor’s announcement on Tuesday to invest $700 Mr. Trump flew off his Twitter handle again million in electric and self-driving cars in Flat Tuesday, accusing General Motors of “sending Rock, Michigan, while calling off plans to build Mexican made model of Chevy Cruze to U.S. car a $1.6 billion plant in Mexico to make its Focus dealers-tax free across border.” He ordered GM compact. Close inspection suggests that Ford to make the Cruze “in U.S.A. or pay big border is attempting to mask business necessity as tax!” Allow us to fill out this story with a few Trumpian political virtue. business facts. Ford CEO Mark Fields called the decision a In November, the day after Mr. Trump won “vote of confidence” in the Trump Administraelection, GM said it will lay off 1,250 employees tion. And no doubt the company is betting on at a Lordstown, Ohio, factory where the Cruze Mr. Trump and Congress to lower corporate tax sedan is manufactured. U.S. deliveries of the rates and relax fuel-economy rules. Mr. Trump Cruze declined 16.6% last year amid a broader tweeted that the Ford announcement was “just consumer shift driven by lower gas prices to the beginning—much more to follow.” buying trucks rather than small passenger cars. Yet Ford is still planning to move production Trucks and SUVs made up 60% of U.S. vehicle of its Focus and other small cars to Mexico. The sales last year, up four percentage points from only change is that the Focus will now be made 2015. As Glenn Johnson, the local United Auto at an existing plant in Hermosillo, Mexico. U.S. Workers president in Lordstown, explained, sales of the Focus declined 16.6% last year in line “It’s supply and demand, and right now the de- with a 13% reduction in Ford’s small car sales. mand is not there for what we have.” This has muted the need for additional plant caGM points out that all Chevrolet Cruze se- pacity in Mexico. But this is nothing to celedans sold in the U.S. are still built in Lordstown. brate: A fall-off in Mexican production could In Mexico GM builds Cruze hatchbacks that are hurt American auto suppliers that furnish 40% mainly sold elsewhere around the world. Only of the parts for cars exported to the U.S. 2% of Cruzes sold in the U.S. last year were asFord’s electric-car investment is also a busisembled in Mexico. ness necessity that was likely determined long It’s true that auto makers have shifted pro- before Mr. Trump won election. California and duction of small cars to Mexico, where wages nine other coastal states require escalating proare about 85% lower than in the U.S. But small duction of zero-emissions vehicles. This mancars aren’t profitable to make in the U.S., though date more than quadruples between 2018 and they are necessary to meet the Obama Adminis- 2025, and car makers can earn more regulatory tration’s increasingly onerous fuel-economy credits for battery-powered cars with long mandates. ranges. In its 2015 annual report, Ford anSome brave soul should also tell Mr. Trump nounced $4.5 billion in “electrified vehicle soluthat auto makers have moved production in tions” through 2020, and it makes sense to Mexico because of its free-trade deals that pro- make electric cars near its research and develvide better access to global markets. Mexico has opment shops in Michigan. i i i 10 trade deals with 45 countries including the Mr. Trump seems to think he can conjure job European Union and Brazil, which make up half of the global car market. The U.S. has 14 agree- growth by beating up business. But to the extent he cows CEOs into making non-economic deciments with a mere 20 countries. Nearly 15% of the cars produced in Mexico sions, he’ll be helping their Korean, Japanese are destined for Europe and Latin America, and German competitors. Now that he’s about to become President, Mr. where they often face lower tariffs than do cars exported from the U.S. Lower tariffs on exports Trump will have a tough enough job trying to exceed labor savings on Mexican-made cars by make America an easier and less costly place to work and invest. He’ll embarrass himself less if four times. Yet even with all of these cost advantages, only he leaves investment decisions to CEOs who un18% of U.S. auto makers’ North American vehicle derstand their businesses.

Venezuela Tees Up Its Next Dictator

enezuela has become a global symbol Society cites allegations by “regional intelliof socialist failure, but one thing its gence officials” that Mr. El Aissami’s office progovernment knows how to do is hang vided passports and national ID cards to suson to power. This week the pected Islamic terrorists. The Maduro elevates Tareck Venezuelan government disruling United Socialist Party of Venezuela began maneumissed the reports as U.S. El Aissami in case he vering to survive a recall elecpropaganda. loses a recall vote. tion this year by appointing a Most recently Mr. El Aisnew vice president. sami has been governor of the President Nicolás Maduro state of Aragua. Our Mary Anis likely to lose a recall that the opposition has astasia O’Grady reported in 2014 that Parchin been demanding amid runaway inflation, short- Chemical Industries and Qods Aviation, compaages of basic goods, widespread hunger and nies owned by the Iranian military, had joint rampant crime. But under the constitution, new ventures in Aragua state with the Venezuelan vice president Tareck El Aissami, whom Mr. Ma- military. Both companies were sanctioned by duro appointed Wednesday, would serve out the the United Nations under Security Council Respresidential term through 2019. This means the olution 1747. In May 2015 The Wall Street Jourpolitical opposition will now have to decide nal reported that the U.S. Justice Department which tyrant they’d prefer to live under. was investigating Mr. El Aissami. The 42-year-old El Aissami is what Donald The tragedy is that a recall defeat last Trump would call a “bad hombre.” During his year for Mr. Maduro would have triggered a university days he belonged to the left-wing new election. The government refused to student movement Utopia 78 and in 2002 he hold a recall, and U.S. Secretary of State John was elected to congress as a follower of the late Kerry didn’t press for it as he lobbied for a demagogue Hugo Chávez. From 2008 to 2012 Maduro “dialogue” with the opposition. Add he was minister of the interior, where he con- the ascendancy of Mr. El Aissami, and the trolled immigration. A June 2014 paper from perpetuation of Venezuelan suffering, to Mr. the Washington-based Center for a Secure Free Kerry’s legacy.

Obama’s Last Jobs Report

s President Obama ends his second 2% trend of the Obama era. At long last tighter term, his supporters are proclaiming labor markets are yielding the income gains that that he will leave behind a “booming” were so elusive thanks to the historically slow economy. You wouldn’t know economic growth rate of the Ho-hum employment post-2009 expansion. that from the December jobs report, the last full-month reAll of this is a double-edged gains but wages are port of his Presidency, which sword for Donald Trump as he finally increasing. was as lackluster as the overmoves into the Oval Office and all Obama expansion. tries to make good on his The Labor Department’s pledge to lift incomes. On the survey of employers found that the economy one hand, labor shortages in much of the country created 156,000 new jobs in the last month of will bid up wages for skilled positions in particu2016, down from the 12-month average of lar, especially if his tax cuts and deregulation lift 180,000. Some 12,000 of those were government the GDP growth rate to 3% or 4% a year. jobs, including 5,000 for the feds. On the other hand, the current expansion is The numbers were even less inspiring in La- already seven and a half years old, which is long bor’s household survey, which found only 63,000 in the tooth by historical standards. Faster net new jobs in the month. The household sur- growth will have to come from rising capital invey tends to better capture job growth among vestment, which has been anemic during the small businesses and it is the basis for the Obama years. If that boosts productivity, wage monthly unemployment rate, which ticked up to gains would accelerate and those gains could 4.7% from 4.6%. The labor participation rate re- even begin to attract the tens of millions of mained where it was a year earlier at 62.7%, workers who have left the labor force since which is at the February 1978 level. 2009. The labor participation rate could begin Financial markets nonetheless rallied on the to climb again despite the growing pace of Baby news, perhaps because investors took heart Boomer retirements. from the increase in wages. Average hourly None of this is a prediction because new poliearnings rose by a healthy dime to $26, after cies are a long way from passing Congress. But falling two cents in November. Wages rose 2.9% the good news is the U.S. now has a chance to for 2016, which is a major improvement over the leave the slow-growth era behind.

Regarding Tiffany Smiley’s “Make the VA Great Again” (op-ed, Dec. 28): While we honor all who have served our nation in uniform, our highest responsibility as a nation is to do all we can to serve those who, like Capt. Scotty Smiley, were wounded or injured in combat areas. They are the reason the Department of Veterans Affairs exists and should get first priority for both world-class health care and disability compensation claims processing. In his second inaugural address, President Abraham Lincoln demanded of Americans “to care for him who shall have borne the battle, and his widow, and his orphan.” Those words have shone like a beacon since then, reminding us of our nation’s eternal responsibility to those who have served and sacrificed on our behalf. Those who would make the VA great again in the new administration must focus on caring for those who have fought for us and now need our help to ensure the department’s limited resources are focused on its core mission, rather than dispersed in an effort to remedy every possible problem for every veteran. When everyone is first priority, no one is. As Lincoln said at another time, “we—even we here—hold the power, and bear the responsibility.” It takes courage to do what is right. I hope we will find that courage. ANTHONY J. PRINCIPI St. Michaels, Md. Mr. Principi was Secretary of Veterans Affairs, 2001-05. There are national veterans service organizations (VSOs), like DAV (Disabled American Veterans) where I have worked for almost 30 years, which provide free professional assistance to help wounded, injured and ill veterans receive all of the federal benefits they have earned through their service. The DAV has full-time employees at every VA regional office and many hospitals, as well as specially trained transition service officers at dozens of military installations, including Walter Reed Army Medical Center, to make the military-to-civilian transition smoother for separating service members, particularly those who suffer devastating injuries like Capt. Scotty Smiley. We are reaching out to the Smileys to see if they would like our assistance and encourage others who are in similar situations, or who know someone who is, to contact DAV or another VSO to get free professional help to secure their earned benefits. One of the great lessons we learned from the postwar experiences like the Smileys and others is that our nation needs to provide greater support to family caregivers of seriously injured

and ill veterans. As a result of stories like theirs, Congress approved a new comprehensive caregiver assistance program in 2009 to empower loving caregivers of post-9/11 veterans like Tiffany Smiley with direct financial support so that they could afford to give their loved ones the care and respect they deserve. Now we need to expand this comprehensive caregiver benefit to ensure it reaches family caregivers of veterans from all wars and eras. GARRY J. AUGUSTINE Washington Executive Director Disabled American Veterans Huntingtown, Md. It is my opinion the VA was not and never will be “great.” As a 100% service-connected, combat-wounded paraplegic of the Vietnam War and a retired VA employee, I speak from experience. After nearly 50 years of dealing with this government agency as a veteran in receipt of benefits, I still have difficulty getting refills of pharmacy items needed for day-today living. The agency needs to be done away with and replaced with a system allowing qualified veterans to use private medical facilities. As for what to do about the benefit system overseen by a regional office, that function should remain in place with a thorough overhaul from beginning to end, with a special focus on efficiently delivering services and processing claims. JOHN RINE Ocean View, Del. I had a patient see me recently using VA insurance. When I asked about his service, he told me he spent two months in the Army in the 1960s before being discharged during boot camp. There was no military-caused disability involved. The average American would probably find it hard to believe that someone who spent 60 days in the Army over 50 years ago is still getting free health care. But that is the reality of our current system. Until the VA focuses on the essential mission, caring for those with true disabilities caused by war and training for war, it will never be able to give adequate care to these individuals. AVERY A. BEVIN, M.D. CDR., USN (Ret.) Gig Harbor, Wash. The cost of a war should be figured not just in the price of ordinance and weapons, but also in the price of taking care of its casualties. With that being considered, perhaps the president and Congress wouldn’t be as eager to rush to war. MICHAEL DAVISSON Ofallon, Mo.

Restoring the Lawful Separation of Powers David B. Rivkin Jr. and Elizabeth Price Foley’s “Five Ways to Restore the Separation of Powers” (Dec. 20) advocates the Reins Act (Regulations From the Executive in Need of Scrutiny) providing that “[i]f Congress does not affirmatively approve a regulation, it never goes into effect.” This would strip rule-making power from executive-branch agencies. Proposed agency rules would simply be ideas for congressional consideration. Congressional inaction would kill the proposed agency rule. The Reins Act might simply incentivize agencies to announce rules in piecemeal fashion through caseby-case adjudications rather than in rules. This would make compliance more difficult, not less difficult, for regulated parties. Ask yourself this: Would President Donald J. Trump (or any president) support (or veto) the diminu-

Without Mrs. Zenger, John Peter Would’ve Had Nothing It was surprising to not read the name of Anna Zenger in Mark Spencer’s review of Richard Kluger’s “Indelible Ink” (“The Birth of America’s Free Press,” Books, Dec. 24). Were it not for her, the New York Weekly Journal newspaper would have ceased publication and John Peter Zenger’s plight would have paled in the public’s mind. Like her husband, she knew English, Dutch and German—vital for success in the formerly Dutch, and still liberal, English colony. It was she who visited him in prison and kept the paper going (only missing one week). After Zenger’s death she became publisher again, and in 1748 after turning the paper over to her stepson, John, she opened a bookstore. JEAN KATHLEEN RANALLO Englewood, Fla. 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.

tion of executive-branch power entailed by the Reins Act? The authors mention the 1996 Congressional Review Act (CRA), which empowers the new 115th Congress to overrule some recent Obama-era regulations. But only regulations issued after June 2, 2016, would be CRA-reviewable by the 115th Congress. Older Obama agency rules, including many on the Republicans’ “to-undo” list, are beyond the reach of the CRA. The proposed Midnight Rules Relief Act would allow Congress to consider and disapprove several agency rules at once. The authors recommend that Congress eliminate judicial deference to agency interpretations of constitutional, statutory and regulatory provisions. The statutes enacted by Congress might better indicate how much deference it intends to accord to executivebranch interpretations. And it remains to be seen whether President Trump and the Republican-dominated 115th Congress will favor legislation stripping power from the executive branch and giving more power instead to the federal courts, which now contain a large number of Obama-appointed judges. EDWIN E. HUDDLESON Washington

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Saturday/Sunday, January 7 - 8, 2017 | A13

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OPINION

DECLARATIONS

By Peggy Noonan

t just after noon on Friday, Jan. 20, Donald Trump will be sworn in as 45th president of the United States. He will stand on the west steps of the Capitol with Chief Justice John Roberts, who will hold a Bible, possibly two. (If the Bible is open it will likely be turned to a verse chosen by the new president. What might be inferred from its selection?) By tradition the incoming president will place his left hand on the Bible, raise his right, and repeat the oath as set forth in the eighth clause of Article II, Section 1, of the U.S. Constitution: “I, Donald John Trump, do solemnly swear . . .”

Advice for the new president on his first day— and for media covering it. At that moment roughly half the country will feel deep pleasure and gratitude. Among the other half will likely commence a new—and perhaps last, for a while—wave of grief and horror. Network executives and producers are wrestling with exactly how to cover the inauguration, how to find the right tone and approach in a country so divided. They are aware of their own antipathy and are not ashamed of it because they see it as connected to love of country: They don’t want to celebrate a man they find deplorable and a victory they believe destructive. For what it’s worth my advice has been: Look, just tell the story. Put focus on the people who’ve come to

the inaugural ask how they feel, what they hope for, what this means to them. It’s history—gather it, hear it, show it. Talk to the people at the balls. What was true at the Cleveland convention will likely be true here: Trump supporters will not, most of them, be the eminently spoofable wealthy Republicans of the past. They’re not as fancy, they’re people with normal lives and resources. Cover the speech—point out what’s striking; try to locate, fairly, message and meaning. Cover the parade, capture the day. Reporters and correspondents don’t have to show personal happiness—that’s not their job. But they do have to show happiness when it’s present in others. The next day, in the so-called million-woman march, they’ll show the continuing fraught nature of our politics, and the views of that side. Don’t make your coverage another scandal, another wedge dividing the people from their national media. If you can work up a decent passion for the traditions of the world’s greatest democracy, and show respect for the fact that America is always an astounding, confounding place, good. History isn’t boring, only bores are boring. I keep telling young journalists to keep in mind a line they love from “Hamilton”: “How lucky we are to be alive right now.” If you’re a political reporter you’re witnessing one of the great stories ever, the Republican Party recomposing itself and the Democratic Party reinventing itself. What a gift to be here with a pen! As for me, I walk in thinking: Hope it works, pray it works, and play it straight. If something is good, say so, if it’s bad, say so. Have a heart but don’t let it overwhelm your brain. As for Mr. Trump, he should treat the refusal of big entertainers to play at his inaugural events as an opportunity. He should wear their

GETTY IMGES/WIREIMAGE

Make Inaugurals Dignified Again

An anti-Trump demonstration in New York City, Nov. 9, 2016. snub like a medal. Every four years presidential inaugurations become bigger and glitzier—movie stars, hiphop artists, $3,000 rooms—and make normal people feel left out. They raise up the presidency too high. The fireworks and extravaganzas and galas have gone from cultof-personality-ish to vaguely fascistic. It is unrepublican! The Trump people would be doing a public service to make it simpler, plainer, more modest, less grand and conceited and dumb. (That would play against type for Mr. Trump, too.) They wouldn’t be banishing joy—some people will have private parties and provide their own hoopla; some will have a good time with friends watching the balls on TV in the bar at the Hilton. You don’t need the whole imperial feel. Make Inaugurals Dignified Again. People are wondering what Mr. Trump will say in his inaugural address. I don’t know. Advice? Sure. He should follow all protocols: “Vice President Pence, Mr. Speaker, Mr. Chief Justice, fellow citizens.” People crave a sense of respectful continuity. By people I mean me. Ob-

serving legitimate traditional forms suggests it. He should read from a text. Popping off from notes is disrespectful. This one goes into the history books. Presidents bother to prepare inaugural addresses and then bother to read them aloud. The speech should not attempt to be fancy. It should aim neither for the faux-eloquence of the present or the old and elegant formulations of the past. Don’t do, “Ask not” or “Let every nation know” or “Let us go forth.” As I once said because I’m so amusing, “Hold the let us.” The speech should be authentic to Donald Trump—the best, simplest, most coherent Trump anybody has heard. It should be direct and avoid the airy pronouncements of sentiment we now hear, where you can listen to whole paragraphs and not be able to grab onto a thought. They’re awful. They leave people looking at each other with eyes that say “Was that eloquent?” Because it sounds fancy and impenetrable they think maybe it is. But fancy and impenetrable is the opposite of eloquence. It should not be too long. Fifteen, 20 minutes is fine, less even better.

When you don’t know what you’re saying you take a long time to say it. When you know what you’re saying you get pithy. Audiences know this and associate brevity in formal address with confidence. More substantively, the speech should define the moment we’re in, explaining what is happening now, what mood prevails. With the Trump era, something new has happened and is being tried. We are somewhere uncharted: What’s the course? Also big battles with Congress are coming, not only with Democrats but, more consequentially, with Mr. Trump’s own party members on the Hill. Republicans in Congress tend to think like Speaker Paul Ryan on entitlement spending, trade, immigration, foreign affairs. Mr. Trump stands not with them but opposite them. His relationship with Congress will start with sweetness and optimism, but surely a clash is coming. And someone is going to win. This might form the meat of the speech: Is the new administration economic nationalist? Is it populist? Then stake out your territory—now. Define your thinking, assert your views. Don’t wait for Mr. Ryan to define you when the battles begin. If you’re serious, you’ll define yourselves. Finally, don’t be anxious, it weighs down the work. There hasn’t been a great inaugural address since John F. Kennedy, who set the tone and template 56 years ago. Every inaugural since can be understood as an attempt to steal his sound and reach his heights. But he had his issues, too. He’d invited Robert Frost, the great genius of American poetry, to speak. In the glare of that too-bright day Frost couldn’t read his new poem, and recited an old one instead. JFK was relieved. Earlier he had confided to his friend Rep. Stewart Udall, “He’s a master of words. I have to be sure he doesn’t upstage me.” Even JFK was nervous.

Refugees From Turkey’s Coup Deserve the Rule of Law By Apostolos Doxiadis

Athens he urgent order from their commander was to pick up casualties from an “emergency situation in the center of Istanbul.” As the responding members of three Turkish search-andrescue teams approached Vatan Avenue in their Black Hawk helicopters, they encountered gunfire so intense that only one of the three choppers could land and collect the injured soldiers. All three then evacuated to nearby Topkule base.

Eight officers who fled to Greece should have European protection from Erdogan’s crackdown. There, they were instructed by their commander not to return to their home base as it was “unsafe.” A few minutes later Topkule came under attack, with incoming fire aimed at the helicopters. Eight officers escaped in one Black Hawk to a nearby forest, where they turned to their iPads for news. It was July 15, 2016. A coup was under way, but little else was known. It wasn’t even clear to them for which side, if any, the three Black Hawk crews had just flown their mission. The officers repeatedly called their commander for further instructions, but without success. When they saw on the news scenes of killings and lynchings of soldiers and officers by “enraged citizens,” they decided to flee, choosing to go to Greece because, as they said, “it’s a European country.” They eventually told me their story in a series of interviews conducted through their lawyer from the detention center here where they are being held.

To these eight, like hundreds of others who sought asylum in European Union countries in July, “European” represents a certain set of values. The expectation was that they would find safety in the EU until the chaos in Turkey died down. The attempted coup failed. In its wake, the government of President Recep Tayyip Erdogan has pursued, punished and purged those it perceives to have played a role, but also others it considers enemies. This includes demanding the extradition of some asylum seekers to stand trial in Turkey. Sweden was the first to refuse Ankara’s extradition requests, sending a strong message that a democracy doesn’t hand people over to a country where the rule of law has broken down and a fair trial can’t be assured. This message hasn’t reached Greece, alas. The day after the Black Hawk officers arrived and were placed in a cell, Mr. Erdogan announced that “Prime Minister [Alexis] Tsipras assured me the officers will be extradited.” There was no denial from Mr. Tsipras. In a later call for the eight officers’ extradition, Turkey’s foreign minister called them “traitors”— thus erasing any illusion that the officers would receive a fair trial at home. Then, in September, a smiling Mr. Tsipras declared in Mr. Erdogan’s presence that “putschists are not welcome in Greece.” In a true democracy, Mr. Tsipras’s kowtows to Mr. Erdogan would be merely contemptible, a blatant attempt to gain personal favor at the expense of human rights. But in today’s Greece they are cause for great alarm. The coalition government of Mr. Tsipras’s purportedly radical leftwing Syriza party and the ultranationalistic right-wing Independent Greeks has lately been veering dangerously close to authoritarianism, creating laws and bending institu-

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tions to augment its power. An attempt to shut down television networks unfriendly to the government was in full swing this summer, while the country’s oldest progressive newspapers, fierce critics of the government, have been suffocating as state-controlled banks deny them credit. Mr. Tsipras’s statements regarding the eight officers defy Greece’s laws, by which extradition should be decided by the courts. And on Dec. 5 the country’s court of appeals did rule against extradition, on ground that the officers have no guarantee of a fair trial in Turkey and may even be tortured—in itself enough to decide such a case, regardless of the charge. But the Court of Appeals’ senior prosecutor has annulled that ruling. Now the case is to be heard

beginning Tuesday by Greece’s Supreme Court, whose president is a government appointee notorious for her attempts to extend her term of office by three years and for forming a new union of senior judges of which she is president. Meanwhile, the only evidence offered by the Turkish state against the eight officers is a series of phone calls they made from Topkule to their commander—who has since been arrested as a participant in the putsch. Their calls went unanswered. The officers say they were merely seeking further instructions from their superior officer amid the confusion of an attempted coup. I am proud that democracy was invented in my hometown, yet my favorite ancient hero is not Athenian but the Theban Antigone, who

defended justice with her life. Honest Greek judges, unlike some of their Turkish colleagues today, don’t need to go to the extremes that Antigone did. But they need moral support, so that they can block out the snarls of threatening authority and listen to their conscience. Mr. Tsipras loves to talk of “red lines” that he won’t cross. But if Greece extradites these Turkish officers, we will have crossed a very thick red line, one separating democracy from authoritarianism, one that’s colored by the blood of eight young men. Mr. Doxiadis is the writer of the graphic novel “Logicomix” (Bloomsbury, 2009) and co-organizer of the Initiative for the Non-Extradition of the Eight Turkish Officers.

What’s Behind Trump’s War With Detroit The 1980s called and they want their trade war back. In picking Robert Lighthizer as U.S. trade representative, Donald BUSINESS Trump picks a WORLD trade lawyer who By Holman W. was a nuts-andJenkins, Jr. bolts guy for Ronald Reagan’s offenses against free trade—a memory usually far from the minds of the Gipper’s free-market fans. Mr. Lighthizer was present at the creation of “voluntary” restraint agreements imposed on foreign governments to limit imports of steel, textiles, forklifts, etc. The granddaddy of these VRAs, which were far from voluntary, firmly limited Japanese auto imports, acting not unlike a price-fixing cartel and costing U.S. car buyers an estimated $13 billion over five years. The politics were not unlike today’s too. Reagan in the 1980 election made a straight-up promise to auto workers in Michigan to slow Japanese auto imports. From a sense of obligation or a desire to keep these so-called Reagan Democrats on board, he put his team to work almost from the moment he landed in office. One senses a similar calculation going through Mr. Trump’s head. Witness his economic team of presumptive trade warriors, including not only Mr. Lighthizer but businessman Wilbur Ross and Chinabashing economist Peter Navarro. A big difference, though, is that Reagan’s auto trade war was waged against Japanese companies. Mr. Trump’s targets have mostly been Ford and GM—until he finally hit Toyota Thursday for the same sin of shifting small-car production to Mexico from the U.S. This is not your Reaganite father’s trade war, for reasons the

Reagan trade war partly contributed to. In the 1980s, when foreigners found they could be shut out of the U.S. market, they began building auto plants here. They reproduced a phenomenon pioneered by U.S. firms when they started moving abroad in the 1950s and ’60s. Much of what is counted as trade nowadays isn’t goods made here and sold there. It consists of intracompany exchanges—transfers between affiliates of the same company. What’s more, an eye-opening 1992 study by Dennis Encarnation showed, counterintuitively, that having production affiliates abroad actually increases exports from the home country.

The butting of heads is less than it seems. Ford and the rest will be repaid with relaxed fuel-mileage rules. This is what Ford and GM mean now when they protest, apparently in vain, that Mr. Trump and his acolytes don’t know what they are doing when injecting trade-war politics into complex cross-border supply chains. But here’s where Trumpism partakes of another American tradition: turning to the U.S. auto sector whenever a political gesture is needed. No handful of companies has been so recurrently dunned when pols want to make a point about the environment, gas prices, trade, consumer safety, etc. This regulatory burden has been both cause and effect of the industry’s steady reliance on bailouts. And we do mean steady. Jimmy Carter rescued Chrysler with loan guarantees. Reagan rescued Detroit with trade protection. George W. Bush cut the first check to save the

auto sector in 2008. And, all along, Washington has fashioned its fueleconomy fine print and trade restrictions to protect Detroit’s pickup profits in what amounts to an ongoing bailout. Which brings us to a more nuanced view of Mr. Trump’s tussle. Yes, he hammered Ford, GM and now Toyota for moving Focus, Cruze and Corolla production to Mexico— small cars built partly or entirely to meet onerous U.S. fuel-economy mandates. In running up the white flag, though, Ford and GM have not unhappily noted that small-car demand is down anyway, as consumers opt for SUVs and pickups built profitably in U.S. plants. We wouldn’t go so far as to suggest Mr. Trump knows what he’s doing. However, it’s interesting that his brickbats have been aimed at companies looking to shift U.S. small-car assembly to Mexican factories. He hasn’t, so far at least, badgered those U.S. and foreign auto companies flocking to exploit Mexico’s enviable network of free-trade agreements to export to world markets. U.S. workers benefit from supplying materials and components to these globally bound vehicles. This butting of heads between the president-elect and Detroit may be less than it seems. Detroit has received strong signals that complying with the Trump agenda on jobs will be repaid with a relaxation of President Obama’s fuel mileage mandates. These rules are up for review this year anyway. So the political dance going on between Donald Trump and Detroit actually has a lot of upside for Detroit. We see here also that regulatory politics, like all politics, favors something for everybody. And just maybe, we are learning how Mr. Trump’s tweeting will be incorporated in a political bargaining process that is a lot more conventional than it appears.

A14 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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SPORTS HEARD ON THE FIELD

Giants’ Eli Manning will try to win a playoff game in Green Bay for the third time in his career on Sunday.

Gophers Land Fleck, Rising Coaching Star

61.4%

The 2016 winning percentage when picking NFL games against the spread of ESPN’s Chris Berman, who is stepping down from his role as the Swami after the Super Bowl. It was his best record in 38 seasons. Source: ESPN

NFL WILD-CARD WEEKEND

The Giant Rope-a-Dope: Part III? MAIN: AL BELLO/GETTY IMAGES; HOF: CARLOS OSORIO/ASSOCIATED PRESS; TIM BRADBURY/GETTY IMAGES (BERMAN); COUNT: RONALD MARTINEZ/GETTY IMAGES

Minnesota, a program thrown into disorder over the last month after 10 players were suspended in connection with a university sexualassault investigation, hired P.J. Fleck, perhaps the sport’s biggest rising star, as its coach Friday. Fleck, the former coach at Western Michigan, replaces Tracy Claeys, who led Minnesota to a 9-4 record and best season in more than a decade. But Claeys rankled university leadership when he tweeted that he was “proud” of his players, who threatened to boycott the team’s bowl game. The boycott ended after two days and the Gophers went on to beat Washington State in the Holiday Bowl. Then the school fired Claeys with athletic director Mark Coyle saying the tweet was “not helpful.” Fleck takes over in Minnesota as one of the hottest young coaches in the sport. The 36-year-old was hired by Western Michigan in 2014, and after going 1-11 in his first season, he soon transformed the Broncos into one of the best programs in the country from a non-Power Five conference. Western Michigan reached bowl games in each of the last three seasons and went undefeated through its first 13 games this year. That earned the team a spot in the Cotton Bowl opposite Wisconsin, where the Broncos lost its only game of the season 24-16. —Andrew Beaton

year), the Giants won two more on the road as underdogs, including the obligatory stop in Green Bay. Similar to the 2007 and 2011 incarnations, there are reasons the Giants are considered long-shots. They are the same reasons the team isn’t enjoying a bye this weekend. As in 2007 and 2011, Manning had his worst game of the season in December, raising concerns heading into the playoffs. This season, that game came in a

BY JIM CHAIRUSMI AMERICA HAS SEEN this movie before. The calendar turns to January and the NFL’s usual plotlines are in place for the playoffs. Tom Brady and the New England Patriots have a fully operational Death Star and seem destined to steamroll through the AFC to reach another Super Bowl. A pair of NFL bluebloods, the Dallas Cowboys and Green Bay Packers, are the most intriguing contenders from the NFC. And the New York Giants are a flawed underdog that no one is taking too seriously. So when the Giants win the Super Bowl in five weeks by stunning the favored Patriots in Houston, no one should be surprised. We saw the original after the 2007 season. We saw a sequel with the same plot four years later. Could this really be happening again? The similarities are eerie—at least on the surface. In 2007, the Giants, led by the unassuming and often underwhelming Eli Manning, won three games on the road, all as underdogs, including stops at Lambeau Field in Green Bay and Dallas. To get to Houston this year, the most likely scenario for the Giants would involve winning three games on the road, all as underdogs, including stops at Lambeau Field in Green Bay and Dallas. After winning the 2011-12 wild card (against Matt Ryan’s Atlanta Falcons, a potential opponent this

‘We aren’t playing the 2011 Giants,’ Packers quarterback Aaron Rodgers said. Week 16 loss to Philadelphia, when Manning threw three interceptions, including a pick-six. Also similar to the 2011 team, which ranked last in the league in rushing, this year’s Giants haven’t been able to sustain a run game, ranking 30th. The Packers, the Giants’ opponents in Sunday’s wild card, appear to be a mismatch. Green Bay averages 27 points per game and has scored 30 or more points in each of their last four games. The Giants average only 19.4 points and haven’t scored 30 in a game this year. The ’07 and ’11 teams were able to overcome their deficiencies by playing their best football in the

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Manning threw two total across eight games. (His career passer rating during the regular season is 83.7, while he averaged a 99.5 during the two Super Bowl runs.) Giants head coach Ben McAdoo has tried to downplay old memories. “I don’t think that the 2007 or 2011 experience really helps us out one way or another, other than that there are some players that have played in those games,” McAdoo said. Packers quarterback Aaron Rodgers echoed that sentiment this week. “We aren’t playing the 2011 Giants,” Packers quarterback Aaron Rodgers said. “We are playing the 2016 Giants, so that is what we are focused on.” Only Manning and long snapper Zak DeOssie remain on the Giants from both championship seasons. Four others—Cruz, defensive end Jason Pierre-Paul, linebacker Mark Herzlich and offensive lineman Will Beatty—were on the 2011 team. But even for Giants’ players that haven’t won a championship, it’s hard to ignore the team’s past glory, with photos of Super Bowl triumphs plastered on the walls of the team’s training facility. Rookie receiver Sterling Shepard was in high school in Oklahoma when the Giants beat the Patriots after the 2011 season. “I watched a little bit of that one and I’ve seen some clips just being here of 2007,” Shepard said. “My team was the Cowboys back then so I wasn’t really rooting for either side.”

THE COUNT

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.

30s

playoffs, particularly a fearsome pass rush. Although this year’s Giants are only average in sacks (ranked 14th), their secondary, due to the coverage skills of cornerbacks Janoris Jenkins, Dominique Rodgers-Cromartie and Eli Apple, might be the deepest in the league. The Giants are sixth-best in net passing yards per play. Safety Landon Collins has also emerged as the anchor of a defense that has only allowed 17.75 points per game, second-best in the league. On offense, all three Giants teams relied on a star receiver to present matchup problems for opposing defenses. In 2007, it was Plaxico Burress (who wound up catching the game-winning pass in the Super Bowl) and in 2011, it was Victor Cruz, who had 1,536 yards receiving. This year, it’s Odell Beckham Jr., who caught 101 passes for 1,367 yards. Although the Giants finished only 26th in scoring, there is a feeling around the team’s facility that the offense is close to putting it all together. Manning, who has an 8-3 postseason record, doesn’t completely dismiss the notion that he’s been a better quarterback in the postseason. When asked this week about “Playoff Eli,” Manning laughed. “If there is one, then hopefully he comes out,” he said. Whether he agrees or not, the numbers are stark. In the 2007 and 2011 regular seasons, the often interception prone quarterback was picked off 36 times in 32 games. On those two Super Bowl runs,

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HOT AND COLD NFL TEAMS ARE ALL LUKEWARM IN JANUARY THIS WEEKEND’S NFL Wild-Card slate features two teams going in opposite directions. The Detroit Lions limp into Seattle on Saturday losers of three straight, and few analysts are giving them a chance of pulling an upset over the Seahawks. Conversely, the soaring Green Bay Packers are 4-to-5 point favorites over the visiting Giants and viewed as a legitimate Super Bowl threat given the way they capped their regular season with six straight wins. Detroit may lose and Green Bay may win. But it will have little to do with momentum, which based on recent history, appears to not be a real thing. The last five teams that played in the wildcard round with winning streaks at least as long as the Packers are 4-5. None advanced to the Super Bowl. But previously the 2000 Ravens (seven straight victories to close the season) did advance from this round to win the Lombardi Trophy. The last five playoff teams to lose three in a row to end the season all won their first postseason game, most recently the Texans and Broncos in the 2011 season. But backers of the Lions, eight-point underdogs, shouldn’t go dancing in the streets just yet: only one slow finisher, the 1943 Redskins, has ever won a road game. The Packers have already beaten the Giants, 23-16, back in Week 5. But quarterback Aaron Rodgers, who carved a place in sportsguarantee history by prophetically promising to “run the table” when his team was floundering at 4-6, seems to agree that the postseason is different. When given a chance to double down this week, Rodgers demurred, saying. “Look, I just talked about running the table and getting into the playoffs.” —Michael Salfino

Hit the Restart Button The last five wild-card teams to have winning streaks at least as long as the Packers (six) and last five playoff teams to have losing streaks as long as the Lions (three losses, pictured), with their postseason results. TEAM

STREAK

PLAYOFF W-L

2008 Indianapolis Colts 2011 New Orleans Saints 2012 Washington Redskins 2013 San Francisco 49ers 2015 Kansas City Chiefs 2000 Minnesota Vikings* 2001 Oakland Raiders 2009 New Orleans Saints* 2011 Denver Broncos 2011 Houston Texans

Won 9 Won 8 Won 7 Won 6 Won 10 Lost 3 Lost 3 Lost 3 Lost 3 Lost 3

0-1 1-1 0-1 2-1 1-1 1-1 1-1 3-0 1-1 1-1

Source: Stats, LLC

*had a first-round bye

BEBETO MATTHEWS/ASSOCIATED PRESS

NIKKI RITCHER FOR THE WALL STREET JOURNAL

BIGGEST 1,000 STOCKS B5 | MARKETS DIGEST B6 | WEEKEND INVESTOR B7

THERANOS MORE JOB CUTS B4

HEARD HOLIDAY-CHEER CHECK B10

THE WALL STREET JOURNAL.

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NASDAQ 5521.06 À 0.6%

STOXX 600 365.45 g 0.1%

Saturday/Sunday, January 7 - 8, 2017 | B1

10-YR. TREAS. g 13/32 , yield 2.417%

OIL $53.99 À $0.23

GOLD $1,171.90 g $7.80

EURO $1.0533

YEN 116.99

Deal would resolve U.S. criminal case with financial penalty of several billion dollars BY ARUNA VISWANATHA AND MIKE SPECTOR

Volkswagen AG is near resolving a criminal investigation into the German auto giant’s emissions cheating, said people familiar with the matter, aiming to reach an accord as soon as next week that would require the company to pay a financial penalty of several billion dollars and cap a major aspect of a long-running crisis. Volkswagen, which has admitted to the environmental

It’s Time For Fees To Decline Let’s make a deal. You give me your money, and I’ll invest it in the stock market. You take all the risk, and I’ll give you the reward. Well, most of it. Every year, I’ll collect 1% from you, even if you lose money on my stock picks. That 1% is as much as THE one-fourth INTELLIGENT of the exINVESTOR pected longJASON ZWEIG term return on stocks after inflation. Trust me: I’m worth it. If that deal sounds unfair to you, you’re right. But the investment industry has long offered clients fees that have nothing to do with performance. That’s changing, but not nearly fast enough. Under federal rules, a mutual fund can raise fees when it outperforms if—but only if—it symmetrically lowers fees when it underperforms. That “fulcrum fee” helps put fund managers on the same side of the table as you. When you make more money, their fee goes up; when you make less, their fee goes down. But managers overwhelmingly prefer charging flat fees that aren’t tied to returns. Only 211 stock or bond Please see FEES page B2

failures, is in ongoing discussions with the U.S. Justice Department to settle an expected criminal case and aiming to complete a deal before the Obama administration ends Jan. 20, the people said. A criminal case is expected to be the final significant U.S. government action against Volkswagen stemming from its emissions cheating. The auto maker has already set aside billions of dollars to address investigations and litigation. The two sides are aiming to wrap up negotiations soon because senior Justice Department officials, who are political appointees and sign off on final agreements, are set to depart before President-elect Donald Trump takes office, the

people said. While career prosecutors and investigators will continue work on the case absent a deal, Volkswagen would need to wait for a new senior Justice Department team to get situated, briefed and make their own determinations if the probe remains open. A settlement could be unveiled next week with the filing of a criminal case against the auto maker, the people said. The settlement is likely to cover criminal and civil financial penalties, they said. A settlement isn’t assured, and the negotiations could drag beyond next week, they said. It isn’t clear whether Volkswagen is preparing to plead guilty to criminal misconduct or enter a so-called deferred

prosecution agreement with the Justice Department under which the government would seek to later dismiss charges so long as the auto maker adheres to settlement terms. Toyota Motor Corp. and General Motors Co. previously entered such agreements to settle Justice Department criminal cases related to safety lapses. Both those companies expressed regret for transgressions and pledged reforms. Volkswagen could face criminal charges including wire fraud and misleading government officials, one of the people said. Volkswagen is also expected to agree to an independent monitor to audit the com-

pany’s regulatory compliance, the person said. Volkswagen has already agreed to U.S. civil settlements with consumers, regulators, state attorneys general and dealers that could eclipse $17 billion to address more than 550,000 diesel-powered vehicles with software that can dupe government emissions tests. The so-called defeat devices installed on the vehicles allowed them to pollute more on the road than during tests. Volkswagen, which has acknowledged the devices are on some 11 million vehicles globally, faces widespread litigation and investigations around the world. Volkswagen on Friday separately received government Please see CARS page B2

Dow’s Friday Flirtation With Milestone Falls Short The Dow Jones Industrial Average shook off early declines and made several runs toward 20000, before backing away late in the session. 20000

RICHARD DREW/ASSOCIATED PRESS

VW Nears Emissions Settlement

New CEO Timothy Sloan aims to repair Wells Fargo’s image.

Wells Revamps Pay After Scandal BY EMILY GLAZER

19950

Intraday high 19999.63

Friday close 19963.80 s0.3%

19900

Thursday close 19899.29

19850

Data in one-minute intervals

19800 9:30 a.m.

noon

4 p.m.

Goldman Sachs Group accounted for much of the Dow's daily gain, while Verizon was a drag on the index. 24.52

Point contributions to the Dow from Friday’s top-ﬁve laggards and leaders

–9.45

–6.51

–3.84

–3.22

Verizon Communications

Wal-Mart Stores

Johnson & Johnson

Chevron

7.67

8.22

8.90

Visa

United Technologies

Apple

10.96

–2.94

DuPont

Source: WSJ Market Data Group

Walt Disney

Goldman Sachs Group

THE WALL STREET JOURNAL.

SO CLOSE: While the Dow had many investors’ attention, oil prices seesawed and bond yields jumped in choppy trading. More, B9

Wells Fargo & Co. will roll out a new retail-banking compensation structure next week in an attempt to fix what many believe was one cause of its sales-tactics scandal. San Francisco-based Wells Fargo is in the process of completing the final parts of the new plan, which will focus on customer service, customer usage and growth in primary balances, people familiar with the matter said. Before the scandal, which became public in September, retail bank employees had to meet lofty sales goals, which included selling eight banking products per household. Former and current bank employees said those goals drove many to open accounts without customers’ knowledge. Wells Fargo in mid-September agreed to an $185 million settlement with regulators and a city official. Soon after it said it was scrapping such goals for the retail bank and would come up with a new system to incentivize employees. Rolling out a new plan for at least 50,000 employees has been a priority for Mary Mack, Please see PAY page B2 INDEX Bond Tables................................... B7 Cash Prices..................................... B8 Dividend News............................ B8 Exchange-Traded Funds...... B8 Futures.............................................. B8 Heard on the Street.............. B10

Insider-Trading Spotlight..... B7 Markets Digest............................ B6 Money Rates................................. B4 New Highs & Lows................... B4 Stock Listings............................... B5 Weekend Investor..................... B7 Week in the DJIA....................... B4

Thriving Chip Business Helps Samsung Weather Big Recall SEOUL—Samsung Electronics Co. delivered a reminder of the company’s central role in the global technology supply chain with a strong earnings forecast on Friday. Even with the early-October recall of its premium Galaxy Note 7 smartphone that cost it at least $5 billion, Samsung projected fourth-quarter earnings that would be the highest in more than three years. The reason: competitors’ growing demand for Samsung components. While Samsung’s smartphone results took a hit, the company thrived on sales to the likes of Apple Inc., Dell Inc., HP Inc. and Sony Corp., whose smartphones, laptops and televisions rely on parts manufactured by the South Korean technology giant. Samsung’s ability to shake off the recall of 2.5 million Note 7 smartphones last year highlights how even when the conglomerate loses, it can still win. Its forecast Friday of 9.2 trillion Korean won ($7.76 billion) in fourth-quarter operating profit also illustrates a

Diverging Fortunes Chips are an increasingly important proﬁt driver for Samsung. Share of operating proﬁt 80% Chips

AHN YOUNG-JOON/ASSOCIATED PRESS

BY TIMOTHY W. MARTIN AND EUN-YOUNG JEONG

20 Mobile

0 2011 ’12

’13

’14

’15

’16

Source: the company

THE WALL STREET JOURNAL.

Samsung recalled its Galaxy Note 7 smartphone in early October.

shift in the source of tech industry profits. As recently as 2014, Samsung’s mobile phones were the cash cow. But with consumers no longer snapping up new phones every year, the company—which is the world’s biggest maker by shipments of both smartphones and memory chips—has shown there is plenty of profit to be made in

the parts of devices not visible to most consumers. Global smartphone shipments have slowed sharply, registering growth of less than 1% last year, according to a recent estimate by research firm IDC. Growth in 2015 topped 10%, and as recently as 2012 was 47%. Even as smartphones were selling strong, Samsung continued to pour tens of billions

of dollars into semiconductors and display panels to enable phones to run faster, hold more storage and offer crisper images. Recent advances have made its components more powerful than those of competitors—positioning Samsung as an essential parts supplier for many of its rivals. This friend-and-foe dynamic means Samsung can profit, for

instance, even when a consumer ditches a Galaxy phone for a competitor’s product. “If Apple does well, Samsung benefits from that,” said Sanjeev Rana, a senior analyst at CLSA, a brokerage, in Seoul. A rival Korean smartphone maker is proving more vulnerable to the industry’s slowdown in demand. LG Electronics Inc. said Friday that it expects to report its largest quarterly loss in seven years after shifting its accounting standard. Analysts say the fourth-quarter hit was most likely driven by the company’s mobile division, which is projected to have bigger losses than its record loss in the previous quarter. On Friday, LG estimated that it would lose 35.3 billion Korean won in 2016’s final quarter. Samsung’s recall of overheating Galaxy Note 7 phones last year attracted global scrutiny and has hurt its brand image. But Mr. Rana of CLSA reckons even a more fortunate Note 7 wouldn’t have sold more than 15 million units globally—a fraction of the more than 300 million handsets that Samsung sells every year. In fact, Samsung’s latest

flagship phone, the Galaxy S7, showed surprising resilience in the Note 7’s absence, enjoying brisk sales during the fourth quarter—nearly a year after it was first released. Samsung is likely to book recall costs that will affect its bottom line for the fourth quarter. Nonetheless, CW Chung, a Seoul-based analyst at Nomura, said the projections for operating profit were “quite a surprising number” to the upside. As its reliance on smartphones has diminished, Samsung has looked to build on its dominance in electronic components by expanding its capacity as a chip and displaypanel manufacturer. Last November, Samsung announced that it would invest more than $1 billion in its Austin, Texas, semiconductor factory. Samsung is also investing close to $10 billion to expand its production of organic light-emitting diode, or OLED, displays that are thinner than traditional liquidcrystal displays. Investors pushed Samsung shares to records in the past week. On Friday, the stock rose 1.8%.

B2 | Saturday/Sunday, January 7 - 8, 2017

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INDEX TO BUSINESSES

THE WALL STREET JOURNAL.

BUSINESS & FINANCE

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.

BAE..............................B4 Bank of America.........B7 Barnes & Noble...........B3 Berkshire Hathaway...B2 Best Buy ..................... B3 Boeing....................B3,B4 Broadridge Financial Solutions...................B2

HP................................B1

J Janus Capital Group...B2 J.C. Penney..........B3,B10 J.P. Morgan Chase......B7

K Kohl's.........................B10

Cerulli Associates.......B7 Chipotle Mexican GrillB2

L Brands....................B10 Lockheed Martin.........B4

DaVita HealthCare Partners....................B2 Dell..............................B1

Macy's..................B3,B10 Merrill Lynch...............B7 Michael Kors Holdings ...................................B10 Morningstar................A2

E Eli Lilly ........................B2

F Facebook......................B2 Fidelity Investments..B2 First Data....................B3 Fresenius Medical Care North America..........B2

O Orbis Investment Management.............B2

P Partner Fund Management.............B4

Putnam Investments..B2 PVH..............................B3

R Ralph Lauren.............B10 Regeneron Pharmeceuticals.......B2 RegentAtlantic............B7 Reynolds American .... A5 Royal Dutch Shell.......B9

S Samsung Electronics..B1 Sears Holdings............B3 SeaWorld Entertainment..........B2 Sony.............................B1

T Takata..........................B2 Theranos......................B4 Toyota Motor..............B1

V Vanguard Group..........B2 Volkswagen.................B1

W Walgreen.....................B4 Wal-Mart Stores.........B3 Wells Fargo.................B1

INDEX TO PEOPLE A

Aronson, Ted...............B2

Jakob, Olivier..............B9

Odey, Crispin.............B10

Bell, Edward................B9 Brewer, Rosalind.........B3 Brown, Campbell.........B2 Buffett, Warren..........B2

Karr, Adam..................B2 Karydakis, Anthony....B9 Kassel, Terry...............D8

Safran, Richard...........B3 Sendlinger, Claus........D6 Shrewsberry, John......B2 Sieg, Andy...................B7 Sloan, Timothy ........... B1 Soper, Geoffrey...........B7

C Christensen, Ashley...D4 Chung, C.W..................B1 Ciccarelli, Scot............B3 Coffey, Greg................B4 Cordaro, Christopher .. B7 Crumpacker, Mark.......B2

E Eshet, Mary ................ B2

F Foley, Katie.................D2

L Le Pen, Marine............C1

Mace, Jessica Schoen.B3 Mack, Mary.................B1 Matei, Corvin..............D8 McCormick, Mark......B10 McGough, Brian..........B3 McMillon, Doug...........B3 Moltke-Leth, Christoffer ...................................B10 Müller, Matthias.........B2

Thiel, John .................. B7 Tierney, Jim................B9 Tjornehoj, Jeff............B2 Toy, Kim ...................... B4 Tsongalis, Gregory......B4

W Waldert, Bing..............B7 Weiming, Liu.............B10 Weisser, Seth.............D2

Nathan, Zoe................D5

Xi, Fu.........................B10

ERIC THAYER/BLOOMBERG NEWS

G Golper, Zachary...........D5

The retail-banking unit is crucial to Wells Fargo’s performance.

PAY Continued from the prior page who took over the embattled retail banking unit last July. Current retail bankers said they are waiting anxiously to figure out how they will get paid and what will count in terms of performance. The retail banking unit is crucial to Wells Fargo’s performance, with about 40 million customers. Since Wells Fargo’s agreement in September to the regulatory settlement and enforcement action over its sales practices, checking account openings have fallen an average of 37% in the September through November period versus a year earlier and credit-card applications have dropped an average of 38% in the same period. The bank has said, though, that customer surveys show their banking experience has improved. Wells Fargo spokeswoman Mary Eshet said the bank’s priority is to share with employees the new plan, which “eliminates sales goals, measures performance based on customer experience and adds more oversight and risk” management. She added that the prior sales goals drove the bank’s culture, and that changes will take time. Investors late next week also will get their most fulsome view yet of the financial impact of the scandal in terms of the retail-banking business. Wells Fargo on Friday reports fourth-quarter results, the first full period since the scandal broke and the first to be presided over by newly installed CEO Timothy Sloan. The bank’s board, though, isn’t expected to roll out any update of its internal investigation into the bank’s practices to coincide with earnings, according to people familiar with the matter. Around late November, the bank froze dozens of branch employees, branch managers,

district managers and area presidents in their current jobs until further notice, essentially not allowing them to apply for other positions throughout the bank, current executives and employees said. Employees were frozen if they had been interviewed about sales practices in the past three months or so, regardless of whether they admitted to wrongdoing or were found to have committed wrongdoing, the employees said. Meanwhile, the board’s investigation has proved to be more complicated and slower moving than initially imagined because there was no exhaustive investigation specific to bank executives and employees before the board’s current inquiry, people familiar with the matter said. When Wells Fargo in prior years looked into sales practices using outside lawyers and consultants, the focus was on how these affected customers and specific branch-level problems. Now, the board is focusing directly on employees. In late November, many employees who had been interviewed in prior sales-practices probes received an email saying they had to hand over any company-owned cellphones and laptops in the following two weeks that would later be returned after information, such as emails and documents, was downloaded from them, according to a message described to The Wall Street Journal. The outside vendor collecting the devices got around to Mr. Sloan and Chief Financial Officer John Shrewsberry in mid-December, a person familiar with the process said. Separately, Wells Fargo said it would raise its minimum wage to $13.50 from $12, effective Sunday, the second time the bank has raised this in the past year. That follows similar minimum pay jumps from other big banks.

Dialysis Assistance Probed BY ANNA WILDE MATHEWS

Justice Department investigators are probing a controversial arrangement under which kidney-care companies support charitable efforts to help patients pay health-insurance premiums, according to disclosures from major dialysis providers. The Boston U.S. attorney’s office has subpoenaed DaVita Inc., the company said, seeking “the production of information related to charitable premium assistance.” The company said it “looks forward to working with the gov-

ernment to allow for clarity on these complex issues.” A spokesman for dialysis provider Fresenius Medical Care North America, a subsidiary of a German parent company, said it had also gotten a subpoena that “seeks information about our interactions” with a premium assistance program run by a nonprofit called the American Kidney Fund. The American Kidney Fund said in a statement that it has “received an administrative subpoena from the Boston U.S. attorney’s office requesting information about AKF’s Health

Insurance Premium Program, which helps 80,000 low-income dialysis patients access lifesaving care each year.” The nonprofit said it was cooperating with the request. The American Kidney Fund has a program, which officials there have said is funded by dialysis providers, to help pay premiums for dialysis patients. In the past, the nonprofit has said it operates its program with the “highest integrity” and adheres to guidelines laid out by an advisory opinion from the Office of the Inspector General of the Department of Health and Hu-

man Services. A spokeswoman for the Boston U.S. attorney’s office said it doesn’t confirm or deny investigations. The new investigation comes amid a continuing, broader fight over such premium-support efforts for kidney-failure patients. On Friday, DaVita and Fresenius, among other plaintiffs, asked a U.S. District Court in Texas to block a looming Department of Health and Human Services rule that could sharply limit their ability to help with premiums for patients enrolled in individual insurance plans.

Some investors argue that performance-based fees create an incentive for managers to take excessive risks in pursuit of a fee bonanza. But flat fees create similar motivations without offering any discount on the downside.

Researchers have found that funds with performance fees can earn higher returns and be less likely to buy overvalued stocks. Finance professors at Cass Business School in London have argued that you should prefer fixed fees only if you can be certain—before you invest—that a fund manager is both extraordinarily skill-

ful and willing to take plenty of risk. In all other cases, you’re better off with variable fees. Orbis Investment Management, a global firm based in Bermuda that manages about $30 billion, charges its institutional clients a maximum base fee of 0.45% annually. In addition, the firm takes 25% of outperformance relative to the indexes it tracks but sets that money aside as a reserve so it can also refund 25% of any underperformance. Adam Karr, a San Francisco-based partner at Orbis, says the fee structure “creates more volatility for us as a firm” but is “much fairer for clients.” AJO, a firm in Philadelphia that manages $29 billion for institutional clients, manages $11 billion of that using fulcrum fees. In some cases, AJO also reserves its outperformance fees in what Ted Aronson, the firm’s

founder, calls a “holding tank” from which they can be refunded if performance lags. He says the performance of accounts with and without fulcrum fees is roughly the same, but clients who have them tend to be more likely to stay put in market downturns, partly because they are more sophisticated and partly because they feel greater loyalty. Only a handful of mutualfund companies, including Fidelity Investments, Janus Capital Group, Putnam Investments, USAA and Vanguard Group, use fulcrum fees. Almost no exchangetraded funds do. In recent months, investors fleeing mutual funds have been dumping even those that have cut fees, replacing them with lower-cost index funds. Until managers cut costs further, investors will—and should—continue to desert them.

in its handling of the safety devices, people familiar with the matter have said. Volkswagen’s settlement discussions are heating up days before some of the German company’s auto executives attend the North American International Auto Show in Detroit. Chief Executive Matthias Müller isn’t planning to make the trip. Volkswagen’s previous civil settlements included agreements to buy back or fix cars with illegal software, including Jettas, Golfs, Passats and Beetles dating back to model year

2009. Car owners can also receive cash payments, and Volkswagen will contribute billions of dollars toward promoting zero-emissions vehicles and remediating pollution from the diesel vehicles. The deals left open civil penalties the company could face from the Justice Department. The Justice Department is expected to continue probing Volkswagen employees as part of the emissions-cheating investigation. A Volkswagen engineer pleaded guilty in September to helping Volkswagen’s cheating

efforts and agreed to cooperate with the government. Prosecutors recently said in a court document that the engineer was helping the government in the “potential prosecution of others.” It isn’t clear whether any additional cases against individuals will emerge. The engineer, James Liang, had been scheduled to be sentenced Feb. 1, but prosecutors have asked for the sentencing to be delayed until May “to allow more time for defendant’s cooperation in the investigation.”

FEES Continued from the prior page mutual funds with a combined $996 billion in assets, out of a grand total of 7,621 funds with $13.8 trillion in assets, charge performancebased fees, according to Jeff Tjornehoj of Broadridge Financial Solutions in Denver. That’s fewer than one in 36 funds and less than $1 out of every $14 in total assets. And that isn’t progress. Back in 1972, the Securities and Exchange Commission reported that 103 out of 999 funds, or more than 10%, were charging fulcrum fees. In the private partnerships he ran in the early 1960s before taking over Berkshire Hathaway, Warren Buffett charged zero fees until returns exceeded 6%. He took 25% of any gains above that. Mr. Buffett also promised to penalize himself for underperformance: If he came up short of 6% in one year, he wouldn’t charge fees the next year until the partnership recovered the difference. A 5% annual return, for instance, would have to be followed by at least a 7% return the next year before Mr. Buffett could resume taking his 25% incentive fee. Mind you, there wasn’t any year in that period when Mr. Buffett earned less than 6%, so he never had to forgo the fee. But he pointed the way toward a model of fairness that too few fund managers have followed. Mr. Buffett told me by email this past week that he’s planning on writing extensively about fees in his widely anticipated annual letter to Berkshire shareholders, which will be released in a few weeks, and that he hopes “more clients will demand lower fees.”

CARS Continued from the prior page approval to fix some of the affected vehicles in the U.S. The Justice Department and other government agencies have been working to complete long-running investigations before Inauguration Day, when the current team departs. Takata Corp., the Japanese automotive supplier of ruptureprone air bags, is nearing a settlement to resolve allegations of criminal wrongdoing

CHRISTOPHE VORLET

G Gap ............................ B10 Goldman Sachs Group B9

Researchers have found that funds with performance fees can earn higher returns.

BUSINESS WATCH FACEBOOK

SEAWORLD ENTERTAINMENT

Website Hires Former CNN Host

Orca of Notoriety Dies After Illness

Facebook Inc. has hired Campbell Brown, a former CNN prime-time host, to bolster its sometimes rocky relationship with the news media. Ms. Brown will lead Facebook’s News Partnerships unit, which works with media companies that publish content on the social media site. Facebook, which faced intense pressure after the election to fight the spread of “fake news,” has recently taken steps against the proliferation of misinformation. —Steven Perlberg

SeaWorld Entertainment Inc. said Tilikum, its orca that infamously killed a trainer at its Orlanda, Fla., park in 2010, died on Friday. SeaWorld said an official cause of death hadn’t yet been determined but that Tilikum had faced serious health issues and its veterinarians were treating a persistent and complicated bacterial lung infection. Tilikum, born in the wild and estimated by SeaWorld to be 36 years old, had been with the park for 25 years. The animal was featured in a documentary that contended that orcas, also called killer whales, suffer in captivity. In March, SeaWorld said it would stop breeding killer whales and cease its theatrical shows featuring them, a dramatic shift as heavy public scrutiny of its practices pressured attendance at the theme park. —Anne Steele

CHIPOTLE MEXICAN GRILL

Executive Pleads Guilty in Drug Case Chipotle Mexican Grill Inc. executive Mark Crumpacker pleaded guilty on Friday to a misdemeanor that will be dismissed next year if he submits

PHELAN M. EBENHACK/ASSOCIATED PRESS

A AJO..............................B2 Amazon.com..........A2,B3

Killer whale Tilikum at Seaworld’s park in Orlando, Fla., in 2011. to drug testing and undergoes treatment. Prosecutors in New York said the burrito chain’s chief creative and development officer participated in a cocaine drug ring. He pleaded guilty to a single count of criminal possession of a controlled substance. Mr. Crumpacker, who returned to Chipotle in September after a

short leave, has been an architect of the chain’s efforts to recover from a series of disease outbreaks that have crippled sales for more than a year. In October, Mr. Crumpacker apologized to Chipotle investors for being a “distraction to the company.” —Corinne Ramey and Julie Jargon

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | B3

* * * *

BUSINESS NEWS

The shift to online shopping left chains with physical stores behind this holiday season. First Data Corp., which tracked credit, debit and other card transactions at one million U.S. merchants, estimates that online sales increased nearly 11% from the previous holiday season, compared with just 2.7% growth at brick-andmortar stores. J.C. Penney Co. on Friday joined a host of retailers reporting a disappointing end to the year. Sales fell 0.8% for the nine-week period in November and December at Penney stores open more than a year. But the chain’s online business grew by double digits. As shoppers moved online, they increasingly went to Amazon.com Inc. The web retailer dominated the holiday season, garnering 38% of online revenue, according to Slice Intelligence, which analyzed digital shopping receipts. The next closest competitor was Best Buy Co., with a 4% online share. The divergence between declining foot traffic at physical stores and gains online played out across the industry. Macy’s Inc. and Kohl’s Corp. on Wednesday both reported weak holiday sales, and cut their earnings forecasts for the current fiscal year. Barnes Noble Inc., L Brands Inc. and Sears Holdings Inc. followed Thursday with their own disappointments, sending a number of retail stocks down during the day’s trading. G-III Apparel Group Ltd., which makes Ivanka Trump’s clothes among other brands, said same-store sales in its current quarter will decline for its Wilsons Leather and G.H. Bass chains due to warmer weather, lower traffic and an “overall challenging retail environment.” RetailNext, which analyzed 31 million shopping trips, estimates that sales at brick-andmortar chains fell 10% in November and December, while traffic declined 12%. But the average transaction value increased 5%, softening the blow. According to First Data, electronics and appliances fared the best with sales gains of 8.5% during the holiday season, while clothing and accessories performed the worst, increasing sales just 0.1%. A few apparel chains, including Gap Inc. and PVH Corp., bucked the downward trend. Two of the country’s biggest retailers, Wal-Mart Stores Inc. and Target Corp., have yet to update investors on their holiday results. —Anne Steele contributed to this article.

A Republican proposal aimed at cutting tax rates and keeping jobs in the U.S. risks whacking the earnings of big U.S. retailers by driving up the cost of imported clothes, furniture and other goods. By Susan Pulliam, Sarah Nassauer and Richard Rubin

Among the companies whose earnings are calculated to take a hit under the “border-adjusted” tax proposal are Wal-Mart Stores Inc., Costco Wholesale Corp., Genuine Parts Co. and Dick’s Sporting Goods Inc., analysts said. The earnings hit to six big retailers could total nearly $13 billion, according to RBC Capital Markets analyst Scot Ciccarelli, with Best Buy Co.’s annual earnings wiped out. To offset the higher tax bills, retailers would need to increase revenue by raising prices for consumers, he said. Representatives of WalMart, Genuine Parts and Best Buy declined to comment. A Costco spokesman said it is too early to assess the impact of the tax proposals. Dick’s didn’t return calls for comment or respond to an email. More broadly, the proposed tax adjustments could spell an end to an era of cheap apparel for consumers, according to Brian McGough, an analyst at Hedgeye Risk Management LLC. In a report released Wednesday, Mr. McGough said consumer apparel prices could rise as much as 15% from the tax plan, “with specialty apparel being the category most at risk given the mix of imported merchandise.”

SCOTT MCINTYRE/BLOOMBERG NEWS

BY SUZANNE KAPNER

Retailers Face Hit Under Tax Plan

The tax bill for Costco, above, could rise to $3.2 billion from $1.2 billion under the GOP proposal. The proposal would cut the corporate tax rate, let multinational firms repatriate foreign profits and allow companies to write off capital expenses immediately. At the same time, the “border-adjusted” portion of the proposal would impose taxes on imported goods by making imports a nondeductible expense, and exempt exports. Authors of the Republican tax plan crafted it to spark economic growth and reduce incentives for U.S. companies to shift jobs, profits and headquarters out of the country. Gauging the plan’s impact on retailers is difficult because most don’t break out what percentage of their inventory

is imported, and even goods produced in the U.S. can rely on imported material. Also, it isn’t clear how any final change in policy will be shaped by a Republican-controlled Congress or a Donald Trump presidency. Still, many investors expect the U.S. retail industry could be hit particularly hard because of the number of companies selling apparel and household goods made almost exclusively overseas. In a note to clients Wednesday, Jessica Schoen Mace, an Instinet LLC analyst, said retailers “with a higher percentage of goods sourced from abroad, as well as those with lower product margins, will be

more pressured.” Trade associations for large retailers are taking aim at the plan. “This is a scary proposal with a lot of unknowns which will lead to a much higher effective tax rate” for retailers, said David French, senior vice president of government relations for the National Retail Federation. The House version of an expected tax overhaul faces obstacles but it is the most complete proposal. It has the support of party leaders. Senators and Mr. Trump haven’t yet endorsed the House version of the tax plan. The tax bills of six large retail companies combined would jump by about $15 bil-

Boeing’s Orders Skidded Last Year BY DOUG CAMERON AND IMANI MOISE Boeing Co. on Friday reported its weakest year for new commercial-jet orders since 2010 in a sign that the prolonged boom in aircraft sales is drawing to a close. The world’s largest aerospace company by sales closed 2016 with 668 net new orders worth $94.1 billion at list price, missing its goal of matching new deals with deliveries as it shipped 748 jets over the year. Rapid growth in air travel in Asia and the arrival of new more-fuel-efficient jets, just as oil prices started to rebound, fueled demand from airlines and leasing companies for planes from Boeing and rival Airbus SE. However, growth has cooled, particularly for larger twin-aisle jets used for international flights, leading both companies to trim production of those models. Boeing still has a backlog stretching out for seven years of production and this week added deals for almost 200 new jets secured in the final days of last year. The late surge

DAVID RYDER/BLOOMBERG

Online Retailing Outpaces Stores

Boeing has a backlog stretching out for seven years of production. lifted its book-to-bill ratio— which measures incoming orders against deliveries—to 0.9. “To many investors, a bookto-bill [below one] is traditionally the end of the cycle,” said Buckingham Research analyst Richard Safran. The Chicago-based plane maker had 768 net new jet orders in 2015 and an average of more than 1,300 in each of the prior three years as the boom lasted longer than previous industry cycles. Airline profits and jet purchases are closely tied to global economic growth, which in turn fuels

passenger and cargo traffic. The sluggish pace of new orders in the second half of last year led most investors to expect Boeing to miss its internal target of matching orders and deliveries, with more attention focused on its ability to deliver more jets as it prepares to boost output of its best-selling 737 single-aisle jets. The company secured deals for 848 new jets last year but had cancellations for 180, the majority of them from customers switching to the new 737 Max model that is due to start operating later this year.

Boeing has yet to book an 80-plane contract completed with Iran Air in December, citing the need for further government approvals. Airbus plans to include a 100-plane deal with Iran Air in its 2016 tally, due to be released on Jan. 11. Analysts expect the European manufacturer to have secured orders for around 600 jets last year compared with 1,080 in 2015. While carriers such as Southwest Airlines Co. and Turkish Airlines have deferred some deliveries, Boeing executives have said such moves remain below their historical average. Airlines pay the bulk of an aircraft’s price on delivery, and Boeing’s 748 deliveries last year compared with 762 in 2015. The new 737 Max is central to Boeing’s expansion plans, and unlike the 787 Dreamliner, its development has been relatively smooth. Norwegian Air Shuttle ASA expects to take its first planes in May, well ahead of Boeing’s original target of delivering the initial planes by the third quarter. Southwest Airlines also expects to receive the planes this year.

BY IAN TALLEY WASHINGTON—An Obama administration advisory panel said Friday that the U.S. must bolster protection of the American semiconductor industry as a national-security imperative against a Chinese plan to dominate the sector. Industry officials say the recommendations made in a new report led by the president’s chief science adviser could lead to much tougher restrictions on Chinese investments in the U.S. semiconductor industry, which makes computer chips for everything from smartphones to sophisticated weapons systems. The report recommends stronger international export controls, primarily through encouraging other countries to tighten their own oversight of the sensitive industry. It also says business deals in the sector may need more stringent and wide-ranging scrutiny, including by the Committee on Foreign Investment in the U.S., or CFIUS, a secretive multiagency panel that reviews foreign acquisitions of U.S. assets for national-secu-

rity threats. “The current set of strategies pursued by the Chinese government through its policies brings the effectiveness of these tools, as currently applied, into question,” the report prepared by the President’s Council of Advisors on Science and Technology said. Specifically, the brief says the administration should develop in concert with Chinese officials a set of investment norms for the sector. If China violates those practices, such as flooding the market with government-subsidized goods, then the U.S. could tighten restrictions on investments in the U.S. “One way to respond would be to tie U.S. assessments of the national-security threats posed by particular technology exports, investments, and contracts to Chinese policy,” the report said. At the same time, the science council said the U.S. government should be mindful of not being overly restrictive to foreign investments that don’t represent national-security risks. And it called for “moonshot” efforts of govern-

KIM KYUNG-HOON/REUTERS

U.S. Chip Firms Need Protection, Panel Says

A U.S. report could lead to tougher curbs on Chinese investments in the semiconductor industry. ment-supported projects that could spur innovation in the industry, a reference to the U.S. space program in the 1960s to put a man on the moon. Those efforts acted as a catalyst for technology across a broad spectrum of private industries. The Obama administration’s dialing up of its scrutiny of Chinese investment in the U.S. is a rare alignment of policy with the incoming Trump team, which has promised a tough

stance with the Asian powerhouse. The brief cited a $160 billion plan by Beijing to establish China as a global leader in the semiconductor industry. Some industry and government officials are concerned current scrutiny of foreign investment is insufficient. For example, CFIUS reviews typically cover acquisitions, not investments in which foreign companies build new operations in the U.S. from the ground up. Also, licensing deals with Chi-

nese companies may also not trigger CFIUS reviews. A bipartisan cadre of U.S. lawmakers is gearing up to expand CFIUS’s legal mandate, in part to demand greater access by U.S. investors into China. Charles Schumer of New York, the top Senate Democrat, has urged the administration to boost scrutiny of Chinese investment deals, citing the failure of the Chinese government to grant U.S. investors access in China.

lion, to about $28 billion, under the Republican plan, according to Mr. Ciccarelli’s analysis. Some economists and advocates of the plan say currencyrate adjustments will offset the tax changes and mute retailers’ objections. They see the U.S. dollar strengthening, making imports cheaper. Tax specialists estimate a border-adjusted tax could raise as much as $1 trillion in revenue; without it, the Republican plan wouldn’t add up. Mr. Ciccarelli estimates that a border-adjusted tax would increase Wal-Mart’s annual tax bill to $16 billion from $6.6 billion. The tax increase could lower its annual net income to $5.5 billion from Mr. Ciccarelli’s estimate of $14.2 billion now, he says. The analysis assumes that Wal-Mart imports directly 20% of its goods, while another 15% are foreign made and sold to Wal-Mart by domestic suppliers. Costco’s tax bill could rise to $3.2 billion from $1.2 billion; earnings could fall to $720 million from an estimated $2.4 billion, assuming Costco imports 15% of its goods directly with another 10% being foreign-made from U.S. suppliers. At the same time, the Republican plan would cut corporate tax rates to 20% from a top federal rate of 35%. The ability to immediately write off capital expenditures under the Republican proposal would also be positive for some retailers. Still, analysts said that for many retailers, those tax benefits wouldn’t be enough to offset the impact of a border-adjusted tax.

Sam’s Club Chief Will Step Down Next Month BY SARAH NASSAUER Wal-Mart Stores Inc. said Friday that the chief executive of Sam’s Club will leave the company next month. After five years in the role, Rosalind Brewer is the longestserving CEO of Sam’s Club, Wal-Mart’s wholesale chain. She is the first female AfricanAmerican CEO at the company, and her departure leaves no women or people of color with a CEO title at Wal-Mart. Ms. Brewer, 54 years old, will be succeeded by John Furner, who currently serves as Sam’s Club’s executive vice president and chief merchandising officer. As part of her departure agreement, Ms. Brewer is prohibited from working for another global retail company with revenue of more than $5 billion for two years, according to a financial filing, a clause typical of Wal-Mart executive employment contracts. Ms. Brewer joined Wal-Mart in 2006. She will leave the company Feb. 1. Sam’s Club has struggled to turn around sluggish sales, vying for attention and investment dollars within its parent company to compete with fastgrowing Costco Wholesale Corp. Midway through Ms. Brewer’s tenure, she presented Wal-Mart’s board with potential strategic shifts for Sam’s Club, including spinning it off from the parent company, according to people familiar with the situation. Ultimately WalMart decided to analyze which Sam’s locations could appeal to higher-income versus middle- and lower-income shoppers, stocking shelves with more relevant merchandise. Ms. Brewer refocused Sam’s Club’s attention on attracting wealthier shoppers, less on Wal-Mart’s core lower-income consumer. Sam’s Club declined to make Ms. Brewer or Mr. Furner available for an interview or share details on Ms. Brewer’s future plans. Her family relocated to Atlanta last year, according to people familiar with the move, sparking speculation that she would also move. Ms. Brewer has held a unique and at times challenging role as Wal-Mart’s highestranking African-American and female leader. She was criticized, for example, for promoting diversity at retailers and their vendors during a CNN interview in 2015.

B4 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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BUSINESS NEWS

For Missile Makers, U.S. Demand Surges The makers of precisionguided missiles and bombs are running to keep up with demand as the U.S. military bombards Islamic State from the air. Companies such as Boeing Co., Lockheed Martin Corp. and BAE Systems PLC—which make the precision-guidance kits that carry U.S. missiles and bombs to their targets—are benefiting from the U.S. military’s increased reliance on air power in the Middle East. Nowhere is the U.S. emphasis on air power more pronounced than in the campaign against Islamic State. As of mid-December, the U.S. had conducted 13,041 airstrikes against Islamic State in Iraq and Syria over about 28 months, according to U.S. Central Command, with a single strike often carrying more than one munition. Coalition allies carried out an additional 3,747 strikes over the same period. “Right now, we’re more kinetic than we’ve ever been in this campaign,” U.S. Air Force Chief of Staff Gen. David Goldfein said in an interview late last year. “We’re hitting more targets than we’ve ever hit in a long time in Iraq, Syria and in Afghanistan, so when that goes up, that means more munitions are required.” The extremely accurate munitions don’t come cheaply. Equipped with sophisticated laser or GPS targeting technology, a single bomb or missile can cost from $30,000 to $115,000. Overall, the U.S. Air Force has expended about $2 billion worth of precision-guided munitions on Islamic State since the start of the campaign in August 2014, dropping more than 40,000, according to Air Force officials. U.S. aircraft have dropped nearly 18 times more weapons on Islamic State than on targets in Afghanistan over the same period.

PETR DAVID JOSEK/ASSOCIATED PRESS

BY PAUL SONNE

Navy sailors guide munitions across the deck of the an aircraft carrier. U.S. campaigns in the Middle East are boosting defense firms. Gen. Goldfein says that for U.S. pilots, extreme accuracy is the difference “between hero and zero” and a matter of American values. “You either get it exactly right, or you get it exactly wrong,” he said. “In the business of modern warfare, the expectation is precision on every strike. So through that lens, the cost factor is less of an issue.” The accuracy helps the military avoid killing civilians. Still, the Pentagon said Jan. 2 that coalition airstrikes had unintentionally killed at least 188 civilians during the campaign. Groups that track the strikes primarily using open-source reports, such as Airwars, put the number far higher. Airstrikes have become central to the Islamic State campaign in part because of the rise of U.S. drone capabilities and an increased imperative in Washington to reduce American military casualties. The air-centric nature of the fight has strained U.S. supplies of the three preferred precision-guided munitions: Lockheed Martin’s hellfire missile,

On Target Precision-guided munitions most in-demand by the U.S. Air Force in the campaign against Islamic State in Iraq and Syria*

Munition type

Joint Direct Attack Munition

Small Diameter Bomb

Hellﬁre Missile

14,764

3,193

2,464

dropped

Primary maker

Boeing

Lockheed Martin

Cost per unit†

$30,000 to $65,000

$35,000 to $45,000

$85,000 to $115,000

Approximate weight

500 and 2,000 pounds

250 pounds

100 pounds

*From Oct. 1, 2015 to Sept. 30, 2016 †Costs per unit to the Air Force vary based on components and contract. Some munitions have multiple variants. Source: U.S. Air Force ofﬁcials

THE WALL STREET JOURNAL.

and Boeing’s small-diameter bomb and joint direct attack munition, or JDAM. As a result, Gen. Goldfein says he is shifting supplies to the Middle East from Europe

and the Pacific to keep campaign commanders armed with what they need, and then backfilling the arsenal in Europe and the Pacific when new munitions arrive.

“It’s a daily management issue,” Gen. Goldfein said. “It’s not a crisis by any means, but it is a concern, because any given day, you do have some risk that other combatant commands are carrying until you replenish their stocks.” Looking to invest in other areas, the U.S. military didn’t devote large swaths of the defense budget to stockpiling precision-guided munitions following the withdrawal from Iraq. But after Islamic State swept the country in 2014, the U.S. was forced back into a full-scale air war—and needed to shore up its arsenal. Since then, lawmakers have allocated more funding for precision-guided munitions, and the White House shortened the time it takes to replenish expended munitions—previously as long as four years. Boeing is producing about 120 GPS guidance kits for the JDAM each day at its plant outside St. Louis, up from about 40 in early 2015, according to Greg Coffey, the company’s JDAM programs director. He expects production to reach 150

a day by next July, or about 36,500 a year. The ramp-up will take Boeing’s JDAM production rates to a high not seen since the early days of the Iraq war, according to the company. “I see demand for the weapon in significant quantities for the next decade,” Mr. Coffey said. The Air Force has dropped JDAMs on Islamic State targets more than any other precisionguided munition in the past year. The JDAM kits transform a 2,000- or 500-pound “dumb bomb” into a hyperprecise weapon that pinpoints its target using either GPS or laser technology. In the year ended Sept. 30, the Air Force dropped 14,764 of them, according to Air Force officials. Boeing also is preparing to boost production of small-diameter bombs to five times the current production rate by the end of 2017, Mr. Coffey said. Lockheed Martin increased deliveries of hellfire missiles for its contract with the U.S. Army. In the third quarter of 2016, Lockheed reported a $45 million jump in net sales of tactical missiles compared with the prior year, attributing the increase mainly to hellfire deliveries. Officials are adding other munitions. The Air Force introduced a new precision-guided rocket to the fight against Islamic State in April. Known as the advanced precision kill weapon system, or APKWS, it consists of a round of seven hydra rockets manufactured by General Dynamics, harnessed with laser-guidance kits made by BAE Systems. BAE is increasing production of the laser-guidance kits at its plants in New Hampshire and Texas, preparing to manufacture 10,000 a year by the end of 2017 and 20,000 a year by the end of 2018, according to the company.

Theranos Cuts More Staff, Continues to Void Test Results BY CHRISTOPHER WEAVER Theranos Inc., facing a cash crunch, continues to cut staff and void unreliable blood-laboratory test results. The Silicon Valley company, which once promised to reshape the medical-testing industry, said it laid off 155 employees Friday. The cuts come after 340 employees were laid off in October and leave the firm with about one-quarter the staff it had in August. Theranos faces steep legal and other costs amid challenges from regulators, lawsuits by shareholders, and criminal and civil federal

probes. The company has said it is fighting the suits and cooperating with investigators, who are examining whether Theranos founder Elizabeth Holmes misled investors and partners about the firm’s technology and operations. Theranos has said it would focus on developing new technology, including a device it calls the miniLab, to sell to other lab companies rather than doing tests itself. In a statement, Theranos said it “has identified a core team of 220 professionals to execute on its business plans.” Theranos had raised more than $900 million from inves-

New Highs and Lows | WSJ.com/newhighs

FT EnerIncome FEN Goldfield GV NeubrgBermMLPIncm NML PacholderHiYld PHF

Friday, January 6, 2017

Stock

6.01 25.00 9.13 7.86 23.45 28.31 24.90 67.08 33.58 21.49 17.51 15.70 16.21 15.37 96.33 13.73 5.44 74.05 19.45 188.00 11.49 14.52 30.91 18.54 22.43 11.60 25.20 25.45 165.02 9.56 11.32 14.11 106.75 14.58 109.35 78.96 17.60 15.09 31.90 20.05 20.25 72.65 27.73 59.56 10.55 20.54 53.36 246.20 7.67 10.41 47.45 56.98 44.70 36.87 26.64 6.35 13.40 10.26 5.36 36.27 23.13 77.50 1.21 13.39 6.89 44.13 43.21 18.40 23.11 14.55 112.99 30.25 15.28 14.44

OCI Partners OCIP OutfrontMedia OUT PNC Fin Wt PNC/WS PNC Fin PNC PSBusinessParks PSB PennWestPetrol PWE Progressive PGR RAIT FinNt19 RFTA RaymondJames RJF RexfordIndlRealty REXR RexnordPfdA RXNpA RoyceMicroCap RMT SINOPECShanghai SHI SalientMidstream SMM SchwabC SCHW SpragueRscs SRLP SummitMidstream SMLP TallgrassEnerGP TEGP TargaResources TRGP TemplIncoFd TEI TesoroLogistics TLLP Timken TKR TortoiseEnerInd NDP Tri-Continental TY Unit UNT UnitedTech UTX Universal UVV UnumGroup UNM WasteConnections WCN WellCareHealth WCG WestPharmSvcs WST WstAstCpLoanFd TLI Williams WMB Zoetis ZTS

52-Wk % Sym Hi/Lo Chg

9.11 3.4 GlblXGuruIndexETF GURU 25.52 0.4 GSHedgeIndVIP GVIP 52.36 3.4 GuggenheimBS2020HY BSJK 0.7 119.74 1.4 GuggenheimBS2022HY BSJM ... 119.05 -0.7 GuggS&P500EWTech RYT 1.4 2.05 6.8 GuggS&P500Top50 XLG 1.0 36.18 0.5 HartfordMultiREIT RORE 1.7 25.07 1.4 HrznsS&P500CovCall HSPX -0.9 74.73 1.5 iShCoreRussUSGrw IUSG 5.4 24.32 0.8 iShCurHdgMSCIACWI HACW 1.8 51.79 2.0 iShCurrHdgMSCIEAFE HEFA 4.8 8.34 1.0 iShCurHdgMSCIEAFE HSCZ 4.5 57.20 2.9 iShCurHdgMSCISwitz HEWL 0.5 14.05 1.4 iShExponentialTech XT 1.5 41.52 0.6 iShMornLCGrowth JKE 0.8 29.25 1.4 iShRussell1000Gwth IWF 1.1 26.10 1.6 iShRussellTop200Gr IWY 0.9 28.18 1.3 iShS&P500Growth IVW 0.5 59.97 0.7 iShGlobalTechETF IXN ... 11.26 0.2 iShNorthAmerTech IGM -0.1 54.02 1.4 iShUSBrokerDealers IAI 0.9 42.35 1.6 JanusVelocityVolLC SPXH 0.8 16.97 1.4 OppenheimerRevWtd RTR 0.5 22.40 0.2 PwrshsDyMedia PBS 0.4 30.63 1.0 PwrShsLgCpGro PWB 0.3 112.83 1.1 PwrShSrLoanPtf BKLN 1.3 64.85 0.4 ProSharesHdgRep HDG -1.4 45.15 0.9 ProShrsS&P500xEngy SPXE 11.4 81.98 0.7 ProSharesShtVIXST SVXY 0.4 142.13 1.4 ProShrUltraQQQ QLD 2.2 87.03 1.9 ProShrUltraS&P SSO ... 11.48 0.3 ProShrsDow30 UDOW 0.3 32.69 2.1 ProShUltPro S&P UPRO ... 54.72 0.3 PureFISEMobilePymt IPAY 0.4 RenaissanceIPOETF IPO 1.1 RiverFrontDyUSFlex RFFC ... SPDRMFSSysGrowth SYG 1.5 Cato 24.89 -3.4 SPDRMSTech CATO MTK 1.6 EmergentCapital EMG 0.42 -30.8 SPDRS&P500Growth SPYG 1.0 Express 10.03 -1.7 SchwUSLrgCpGrwth SCHG EXPR 0.6 HealthSouthWt HLS/WS 0.47 -15.0 TechSelectSector XLK 3.2 MexicoFund 13.68 -1.9 UBSAGFIEnhLCGrw FBGX MXF 1.4 PioneerMuniHiInAdv MAV 11.30 -5.4 UBSProSh3xLgCrude WTIU 1.5 PioneerMuniHiIncm MHI 11.59 -2.8 VanguardInfoTech VGT 0.8 StageStores 4.00 -2.7 VangdGrowth SSI VUG 11.0 TurkishFd 6.49 ... VanguardMegaCapGrw MGK TKF 1.8 WildHorseResource WRD 14.25 -1.7 Vanguard 500Grow VOOG 6.2 VelocityShVIXShrt XIVH 0.8 WisdomTreeEurHdgSC EUSC 0.2 WisdomTrIntHdSCDiv HDLS 26.63 0.8 1.5 ARKWebx.0ETF ARKW 36.05 0.2 1.6 AdvShsPeritusHiYd HYLD 24.64 0.4 1.3 AlerianEnergyInfr ENFR 17.10 0.8 iPathS&P500VIXST VXX 16.0 CTrksETNsMillerHwd MLPC 24.69 0.1 PathS&P500VIXMT VXZ 0.8 CambriaGlbMomentum GMOM 28.32 ... DirexionEuroFinBr1 EUFS 0.7 CSXLinksMultiAsst MLTI 24.61 ... DrxFinancBear 3x FAZ 7.1 DeutscheXMSCIAWxUS DBAW 25.07 1.7 DirexionSP500Bear SPXS 0.3 DeutscheXAllxUSHiD HDAW 28.77 0.3 DirexionS&P500Br1X SPDN 1.6 DeutscheXMSCIEAFE DBEF 27.28 0.3 DrxTechMktBear 3x TECS 5.7 DeutschextrMSCIEur DBEZ 38.60 1.1 ProShrShrtDow30 DOG 0.6 DeutscheXMSCIJapan DBJP 24.93 0.8 ProShrShortQQQ PSQ 0.4 DeutscheXMSCSKorea DBKO 43.48 0.9 ProShShrtS&P500 SH ... DrxFinancBull 3x FAS 113.75 1.1 ProSharesUltVIXST UVXY 1.5 DirexionS&P500Bull SPXL 29.31 0.7 ProShrsShrtDow30 SDOW -0.1 DirexionS&P500Bull LLSP 53.47 2.0 ProShUltProShS&P SPXU ... DrxTechMktBull 3x TECL 71.01 0.5 PrShrsUSDow30 DXD 2.2 DirexionNASD100EW QQQE 16.38 0.2 PrShrsUShrQQQ QID 6.3 ETRACSMortgageREIT MORL 12.91 1.7 ProShrsUShrt S&P SDS 1.5 ETRACS2xLevxEn LMLP 38.87 3.6 ProShsVIXMTFut VIXM 0.4 ETRACSMnthly2xLev SPLX 56.89 1.3 ProShsVIXSTFut VIXY 2.9 ETRACS2xMLvAlerian MLPQ 60.22 1.3 1.9 ETRACS2xMLevS&PMLP MLPZ 23.30 1.9 1.0 ETRACSWFBusDev BDCZ 37.81 0.8 FTEC 1.2 FidelityMSCIIT 83.85 0.9 Amcon 1.5 FstTrDJIntrnt FDN DIT 55.37 0.2 AcmeUnited 0.9 FirstTrUSEquityOpp FPX ACU 26.04 1.7 ContinentalMatls CUO 1.1 FlexSharesCurrHdDM TLDH

NYSE highs - 108 AdvntClymrSecII AGC AllianceBernstein AB AlpineGlblDyn AGD AlpineTotDynDiv AOD AmEqtyLf AEL AmHomes4RentPfdC AMHpC AIG Wt AIG/WS AIG AIG AnteroMidstream AM ApolloGlobalMgmt APO ApolloSrFRFd AFT ApolloTactical AIF ArcLogisticsPtrs ARCX AresDynamicCredit ARDC Assurant AIZ AvenueIncmCrStrat ACP BancoSantander SAN BankofMontreal BMO BaringsGlbShtDurHY BGH Bio-RadLab A BIO BlkRkDebtStratFd DSU BlackRockFRIncm FRA BlackstoneGroup BX BoardwalkPipe BWP BrookfieldDTLAPf DTLAp CAI Intl CAI CapitalOnePfdH COFpH CenterPointEner CNP Chemed CHE ClearBridgeAmEn CBA C&SMLPIncm&EngyOpp MIE CushingTotRetFd SRV Deere DE DeutscheHiIncmOpps DHG Disney DIS Dover DOV DynagasLNG DLNG EatonVanceFRIT EFT EmpresaDisCom EDN EnergyTrfrEquity ETE EnLinkMid ENLC EvercorePtrs EVR Exterran EXTN FedAgriMtg C AGM FiatChrysler FCAU GabelliDividend GDV Gallagher AJG GoldmanSachs GS GSMLPEnergyRen GER GoldmanSachsMLPInc GMZ Greenbrier GBX Halliburton HAL KAR Auction KAR KeyEnergySvcs KEG KeyCorpPfdE KEYpI KingswayFin KFS KronosWorldwide KRO LazardWorldDiv LOR LibertyAllStar USA MPLX MPLX MSG Networks MSGN MagellanMid MMP MechelPfd MTLp Meritor MTOR MiXTelematics MIXT MorganStanley MS NCR NCR NaborsIndustries NBR NatlStorage NSA NewMountainFin NMFC NorfolkSouthern NSC NuSTAR GP NSH NuvDow30Dyn DIAX NuvEnerMLPTR JMF

52-Wk % Sym Hi/Lo Chg Stock

NYSE lows - 10

NYSE Arca highs - 77

52-Wk % Sym Hi/Lo Chg Stock

Stock

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session.

52-Wk % Sym Hi/Lo Chg Stock

tors and corporate partners. Walgreens, its former retail partner, invested about $140 million in their relationship. Walgreens and one investor, Partner Fund Management, are seeking to recoup nearly $240 million from Theranos in separate lawsuits. Theranos has less cash than those two plaintiffs are seeking, said people familiar with the matter. Regulators barred Ms. Holmes from the lab industry for at least two years and revoked the testing license of Theranos’s main lab in July, when regulators imposed sanctions for failing to meet federal standards. The company is

27.36 5.95 9.99 7.32

52-Wk % Sym Hi/Lo Chg Stock

FdltyNasCompFd ONEQ FT CapStrength FTCS FT CloudComp SKYY FT Nasd100xTech QQXT FT NasdaqBank FTXO FT Nasd100 EW QQEW FT SrLoanFd FTSL FulgentGenetics FLGT G Willi-Food WILC GalectinTherapUn GALTU GencorIndustries GENC GlbPartnerAcqn GPAC GreenBrickPtrs GRBK HarmonyMergerWt HRMNW HawthornBcsh HWBK HennessyCapII HCAC HennessyCapWt HCACW HomeTownBkshs HMTA HowardBancorp HBMD IAC/InterActive IAC Ichor ICHR IridiumCommPfdB IRDMB iShCommodSelStrat COMT iShMSCIUSAESGOpt ESGU Isramco ISRL JM Global WYIG j2Global JCOM JackHenry JKHY KtckyFstFdBcp KFFB LamarAdvertising LAMR LandmarkBncp LARK LeggMasonGlbInfr INFR LibertyBroadbandA LBRDA LibertyBroadbandC LBRDK MMACapitalMgmt MMAC Methanex MEOH Mindbody MB MomentaPharm MNTA Netflix NFLX NewtekBusSvcs NEWT NortheastBancorp NBN NxstageMed NXTM

1.2 0.9 2.0 0.2

NYSE MKT lows - 0 Nasdaq highs - 94 ARKRestaurants ARKR

24.71 0.4 AmCapSeniorFloat 43.52 0.6 AmesNational 24.49 0.2 Arotech 25.28 ... AsiaPacificWire 111.39 0.6 AtlCapitalBcshs 160.46 0.6 AtlanticCoastFin 15.42 0.1 AuburnNatlBncp 46.19 0.4 AxarAcquisition 44.00 0.5 BCB Bancorp 25.34 1.3 B/EAerospace 26.72 0.4 B RileyFin 26.13 0.5 BankofCommerce 24.16 0.6 Bojangles' 27.47 0.2 CSX 124.72 0.7 CabotMicro 107.57 0.6 CaesarsAcqn 57.84 0.7 CalamosStratTot 124.66 0.6 CardConnect 112.78 0.7 CarolinaTrBcshs 127.46 0.9 CentralGardenA 51.31 1.0 Ceragon 31.44 0.5 CharterComms 33.87 1.6 CharterFin 26.96 0.3 CitizensHolding 32.65 0.5 CommunityBkrs 23.42 0.2 CumberlandPharm 43.27 -0.1 DISH Network 46.84 0.7 E*TRADE 106.37 1.4 ElectrumSpecWt 91.56 1.8 EnantaPharma 78.96 0.7 EntegraFin 98.09 1.0 ExtremeNetworks 86.34 1.1 26.57 0.5 21.41 0.4 27.94 0.3 64.38 0.7 62.75 1.0 107.81 0.7 57.45 0.7 49.47 0.7 145.63 1.3 25.88 -0.2 124.69 0.9 114.52 0.8 89.54 0.7 111.79 0.7 39.80 7.2 26.43 0.2 24.98 0.1

appealing those sanctions. After the October cuts, Theranos closed its lab-testing operations and said it would refocus on developing new technology. To sell such technologies to other lab operators, Theranos would need to obtain approval from the Food and Drug Administration, which can take years. The strategy is a shift from its effort to use proprietarytesting technology on patient samples, including an “Edison” device it said could run many tests from a few drops of blood. In April 2016, after regulators discovered issues, Theranos said it had voided “tens of

26.00 3.4 12.70 ... ACSF 38.30 0.6 ATLO 4.66 10.7 ARTX 3.10 5.1 APWC 19.65 1.8 ACBI 7.64 2.7 ACFC 32.50 0.3 AUBN 10.55 2.0 AXAR 13.80 0.4 BCBP 61.26 0.2 BEAV 19.95 3.5 RILY 10.55 -1.0 BOCH 20.70 0.5 BOJA 37.73 1.4 CSX 64.90 -1.0 CCMP 14.00 2.2 CACQ 10.71 -0.2 CSQ 13.45 1.9 CCN 7.45 3.7 CART 32.35 1.8 CENTA 3.88 -0.3 CRNT 298.79 0.7 CHTR 17.10 1.4 CHFN 26.61 3.3 CIZN 7.45 1.1 ESXB 6.05 -2.7 CPIX 61.49 1.0 DISH 37.00 -0.4 ETFC 0.45 2.6 ELECW 37.32 1.9 ENTA 21.40 -3.7 ENFC 5.30 2.5 EXTR

217.71 41.60 35.73 41.94 26.92 47.69 48.64 13.16 6.89 3.60 16.60 10.50 10.85 0.58 18.50 10.25 0.95 9.60 15.35 70.00 13.97 384.60 34.99 49.86 128.70 10.05 84.90 91.34 9.60 70.15 29.45 25.45 74.37 75.87 20.00 47.43 25.00 17.25 133.88 16.84 14.35 27.32

0.9 0.6 0.7 0.4 0.7 0.5 ... 13.4 2.4 51.3 0.9 -0.4 -1.5 28.9 4.7 0.2 3.4 5.5 1.0 0.4 -0.8 5.3 -0.3 1.5 0.4 ... -0.5 0.3 1.3 -0.7 0.6 0.5 0.4 0.3 1.8 -0.2 2.5 5.8 -0.6 0.4 1.8 0.9

52-Wk % Sym Hi/Lo Chg

2.53 -0.4 O2MicroIntl OIIM 26.14 2.8 OldLineBcshs OLBK 81.05 0.8 PatrickIndustries PATK 122.25 0.9 PwrShrs QQQ QQQ PrShrUltPrQQQ TQQQ 139.36 2.5 24.14 2.7 QuantennaComms QTNA SLM Pfd B SLMBP 57.30 1.5 75.37 -0.4 ScrippsNetworks SNI 3.37 3.5 SiebertFin SIEB 18.15 2.7 SmartSand SND 22.50 0.1 StarBulkNts2019 SBLKL 47.01 1.1 TD Ameritrade AMTD 8.26 ... TandyLeather TLF 45.95 -1.3 Tessera TSRA 38.15 -1.9 Tucows TCX 50.55 ... US Ecology ECOL VangrdRuss1000Grw VONG 110.30 0.5 50.18 1.0 VSInvVIXMedTerm ZIV 54.82 1.3 VSInverseVIXSTerm XIV

3.08

21.09

Nike

4.19

28.69

Visa

AcuraPharm ACUR Avinger AVGR DelcathSystems DCTH DestinationXL DXLG Dryships DRYS EcoStimEnergy ESES FTAltAbsoluteRet FAAR FT NasdRetail FTXD MemorialProd MEMP MerrimackPharm MACK ProShUltraProShQQQ SQQQ RemarkMedia MARK SearsHometown SHOS SteinMart SMRT The9 NCTY TransWorldEnt TWMC VS2xVIXMedTerm TVIZ VS2xVIXShortTerm TVIX VSVIXMedTerm VIIZ VSVIXShortTerm VIIX

4.57

4.76

32.60

3.08

1.00

6.85

2.67

2.93

20.07

-5.9 -15.4 -29.3 -2.6 -2.6 -11.9 -0.2 -2.8 3.4 -5.3 -2.8 -4.3 -6.4 -14.3 3.4 -6.3 -2.8 -2.6 -1.6 -1.3

January 6, 2017

Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions.

NYSE Arca lows - 18 21.63 32.28 20.57 20.41 10.21 18.20 16.41 18.81 45.84 35.87 6.23 9.87 19.31 13.85 22.48 14.55 39.23 18.04

-1.2 -1.0 ... -0.9 -1.1 -0.4 -2.0 -0.3 -0.9 -0.4 -2.5 -0.9 -1.0 -0.6 -1.7 -0.7 -1.0 -1.2

NYSE MKT highs - 7 119.00 27.30 27.75

2.0 8.7 5.0

Chg From (%) Oct. '16 Nov. '15

U.S. consumer price index 241.353 249.227

All items Core

–0.16 0.004

1.7 2.1

International rates Week Latest ago

3.75 3.75 3.75 3.50 2.70 2.70 2.70 2.70 1.475 1.475 1.475 1.475

Policy Rates Euro zone Switzerland

0.00 0.50

0.05 0.50

0.25 1.50

—52-WEEK— High Low

0.50 2.00

0.25 1.50

Secondary market Fannie Mae 30-year mortgage yields

52-Week High Low

Prime rates U.S. Canada Japan

Week Latest ago

Britain Australia

0.00 0.50

30 days 60 days

The Week’s Action Pct Stock price Point chg chg (%) change in average Company

6.06

Money Rates

Nov. index level

A look at how the Dow Jones Industrial Average component stocks did in the past week and how much each moved the index. The DJIA gained 201.20 points, or 1.02%, on the week. A $1 change in the price of any DJIA stock = 6.85-point change in the average. To date, a $1,000 investment on Dec. 31 in each current DJIA stock component would have returned $30,345, or a gain of 1.20%, on the $30,000 investment, including reinvested dividends.

5.37

0.63 3.20 0.46 3.72 2.96 0.76 28.43 19.69 0.12 3.46 11.86 3.25 4.35 4.50 1.12 2.85 6.44 6.79 11.27 7.32

3.556 3.680 3.828 2.806 3.596 3.713 3.862 2.832

Notes on data: U.S. prime rate is effective December 15, 2016. U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; Other prime rates aren’t directly comparable; lending practices vary widely by location. Complete Money Rates table appears Monday through Friday. Sources: Bureau of Labor Statistics; SIX Financial Information

according to her lawyer. Ms. Toy is a plaintiff in a legal action against Theranos alleging the company misled patients. The company is fighting the suit. Journal reporter John Carreyrou, who had his blood drawn in April 2015 for a Theranos diabetes test, said this week that the doctor who ordered the test sent him a report showing Theranos had voided its result. Theranos said in a statement it is “absolutely committed to assessing and addressing negative patient impact that may have resulted from any shortcomings at the labs.”

A Week in the Life of the DJIA

Nasdaq lows - 20

Borrowing Benchmarks | WSJ.com/bonds

Inflation

thousands” of tests. As recently as last week the company sent out newly corrected results saying some tests done in 2015 and 2016 for hemoglobin A1c, a protein doctors measure to help diagnose diabetes, shouldn’t be relied upon, according to copies of the corrected reports. In a letter sent last week, Theranos said a patient who had gotten a “normal to prediabetic” result should have received a result in the “prediabetic to diabetic” range. Kim Toy, a housecleaner in Phoenix, also learned last week that a past Theranos labtest result had been voided,

Symbol Close

$1,000 Invested(year-end '16) $1,000

NKE $53.91

$1,061

82.21

1,054

Walt Disney

DIS

108.98

1,046

Pfizer

PFE

33.48

1,031

United Technologies UTX 112.55

1,027

MRK

2.38

1.40

9.59

60.27

1,024

2.28

5.45

37.32

Goldman Sachs

244.90

1,023

2.20

3.42

23.42

Boeing

159.10

1,022

2.13

3.54

24.24

IBM

IBM 169.53

1,021

1.88

1.39

9.52

American Express

AXP

75.47

1,023

1.80

2.09

14.31

Apple

AAPL 117.91

1,018

1.48

2.37

16.23

UnitedHealth Group UNH 162.41

1,015

1.13

0.95

6.51

Procter & Gamble

85.03

1,011

1.13

0.70

4.79

Microsoft

MSFT

62.84

1,011

0.95

1.09

7.46

Johnson & Johnson JNJ

116.30

1,009

0.68

0.28

1.92

Coca-Cola

41.74

1,007

0.58

0.21

1.44

Intel

INTC

36.48

1,006

0.32

0.30

2.05

Caterpillar

CAT

93.04

1,003

0.03

0.01

0.07

Cisco Systems

CSCO

30.23

1,009

0.03

0.01

0.07

General Electric

31.61

1,000

–0.03

–0.02

–0.14

DuPont

73.38

1,000

–0.19

–0.34

–2.33

–0.20

–0.17

–1.16

J.P. Morgan Chase

–0.22

–0.12

–0.82

Verizon

–0.41

–0.55

–3.77

Home Depot

–0.73

–0.86

–5.89

–0.79

–0.96

–1.24

Merck

MMM 178.23

998

86.12

1,004

53.26

1,009

133.53

996

Chevron

CVX 116.84

993

–6.57

McDonald’s

MCD 120.76

992

–0.86

–5.89

Wal-Mart Stores

WMT

68.26

988

–1.95

–1.76

–12.05

Exxon Mobil

XOM

88.50

981

–3.39

–4.15

–28.42

Travelers

TRV 118.27

966

JPM

Sources: WSJ Market Data Group; S&P Dow Jones Indices. For more information on the Dow Jones Industrial Average and the 30 industrials, please visit www.djindexes.com

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | B5

* * * *

BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issueâ&#x20AC;&#x2122;s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. h-Does not meet continued listing v-Trading halted on primary market. Footnotes: s-New 52-week high. standards vj-In bankruptcy or receivership or t-New 52-week low. lf-Late filing being reorganized under the dd-Indicates loss in the most recent q-Temporary exemption from Nasdaq Bankruptcy Code, or securities four quarters. requirements. assumed by such companies. FD-First day of trading. t-NYSE bankruptcy 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. Friday, January 6, 2017 YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

NYSE ABB 3.5 28 21.60 0.04 2.52 22.92 15.74 ABB ACM ... 60 36.93 -0.64 1.57 40.72 22.80 AECOM AES 4.1 dd 11.82 0.41 1.72 13.32 8.22 AES AFL 2.5 11 70.19 0.24 0.85 74.50 54.57 Aflac T 4.7 18 41.32 -0.84 -2.85 43.89 33.41 AT&T 1.04 66.23 51.01 AXIS Capital AXS 2.3 13 65.95 0.34 6.17 45.79 36.00 AbbottLabs ABT 2.6 45 40.78 1.08 ABBV 4.0 17 63.79 0.02 1.87 68.12 50.71 AbbVie -0.71 125.72 91.40 Accenture ACN 2.1 17 116.30 1.31 2.82 280.89 169.42 AcuityBrands AYI 0.2 36 237.36 -1.31 ADNT ... ... 56.49 -0.51 -3.60 59.28 39.66 Adient 0.30 177.83 131.59 AdvanceAuto AAP 0.1 28 169.63 -2.25 4.76 6.23 4.39 AdvSemiEngg ASX 4.8 15 5.28 0.05 AEG 5.2 24 5.64 -0.02 1.99 6.09 3.36 Aegon AER ... 10 43.60 -0.09 4.78 45.53 24.61 AerCap AET 0.8 18 124.26 -0.25 0.20 136.50 92.42 Aetna 1.34 179.85 115.97 AffiliatedMgrs AMG ... 17 147.25 -0.33 5.33 48.63 34.15 AgilentTechs A 1.1 34 47.99 1.45 6.88 60.10 26.09 AgnicoEagle AEM 0.9 94 44.89 -0.67 AGU 3.4 15 102.43 -1.03 1.87 109.73 79.94 Agrium 0.38 150.45 105.99 AirProducts APD 2.4 21 144.36 1.14 ALK 1.3 12 86.98 -0.78 -1.97 91.89 54.51 AlaskaAir 5.49 92.24 45.78 Albemarle ALB 1.3 21 90.81 0.42 AA ... dd 30.68 0.03 9.26 32.35 20.00 Alcoa 0.97 114.67 70.69 AlexandriaRealEst ARE 3.0 dd 112.21 -0.76 BABA ... 47 93.89 -0.48 6.92 109.87 59.25 Alibaba Y 0.54 619.99 446.50 Alleghany ... 18 611.38 2.48 ALLE 0.7 28 65.89 -0.40 2.95 73.49 52.95 Allegion AGN ... 6 219.08 -1.75 4.32 305.94 184.50 Allergan 3.42 264.37 176.63 AllianceData ADS ... 25 236.32 0.50 s 3.84 25.00 16.11 AllianceBernstein AB 7.4 12 24.35 ... -0.24 40.99 30.38 AlliantEnergy LNT 3.1 25 37.80 -0.31 -1.45 35.76 20.56 AllisonTransm ALSN 1.8 34 33.20 -0.42 ALL 1.8 20 74.15 0.12 0.04 74.95 56.03 Allstate 4.57 20.60 14.55 AllyFinancial ALLY 1.6 dd 19.89 0.17 MO 3.6 26 68.23 0.30 0.90 70.14 56.15 Altria 3.53 11.78 6.87 AlumofChina ACH ... 31 10.57 -0.21 ABEV 1.7 24 5.09 -0.07 3.67 6.34 3.86 Ambev AEE 3.3 20 53.10 0.40 1.22 54.08 41.50 Ameren 0.64 15.95 11.02 AmericaMovil AMX 2.1 24 12.65 0.03 1.63 15.93 10.83 AmericaMovil A AMOV 2.1 24 12.50 -0.08 1.71 54.56 38.63 AmCampus ACC 3.3 62 50.62 0.24 AEP 3.7 68 63.14 -0.05 0.29 71.32 56.75 AEP 1.88 76.55 50.27 AmericanExpress AXP 1.7 13 75.47 0.15 -0.32 89.22 64.87 AmericanFin AFG 1.4 20 87.84 ... s 2.30 67.08 48.41 AIG AIG 1.9152 66.81 1.21 -0.39 118.26 83.07 AmerTowerREIT AMT 2.2 53 105.27 -0.70 0.66 85.24 59.01 AmerWaterWorks AWK 2.1 28 72.84 -0.09 APU 7.8 48 48.07 0.31 50.11 32.36 Amerigas ... 4.25 119.32 76.00 Ameriprise AMP 2.6 16 115.66 1.92 8.45 99.51 68.38 AmerisourceBrgn ABC 1.7 13 84.80 1.12 AME 0.7 22 50.07 0.89 3.02 52.60 42.82 Ametek 1.31 69.19 44.50 Amphenol APH 0.9 27 68.08 0.51 2.88 73.33 28.16 AnadarkoPetrol APC 0.3 dd 71.74 0.13 BUD 3.2 45 105.93 -0.87 0.46 136.08 98.28 ABInBev 3.01 11.29 8.25 AnnalyCap NLY 11.7 93 10.27 0.05 s 8.65 33.58 17.00 AnteroMidstream AM 3.2 29 33.55 1.55 4.36 30.66 19.00 AnteroResources AR ... dd 24.68 -0.21 ANTM 1.8 17 144.35 -0.22 0.40 148.26 114.85 Anthem AON 1.2 21 114.35 0.87 2.53 116.59 83.83 Aon APA 1.6 dd 63.12 -0.13 -0.55 69.00 32.20 Apache ... 47.91 34.97 ApartmtInv AIV 2.9202 45.45 ... 0.87 35.83 28.03 AquaAmerica WTR 2.5 25 30.30 -0.09 ARMK 1.2 30 34.92 -0.32 -2.24 38.30 29.18 Aramark 4.25 8.84 2.33 ArcelorMittal MT 2.6 dd 7.61 -0.17 -2.04 47.88 29.86 ArcherDaniels ADM 2.7 17 44.72 -1.05 ARNC ... ... 20.63 0.53 11.27 25.92 13.84 Arconic 4.66 103.00 52.51 AristaNetworks ANET ... 44 101.28 -0.66 2.44 73.59 45.23 ArrowElec ARW ... 13 73.04 0.32 2.28 125.00 88.30 AshlandGlobal ASH 1.4 dd 111.78 0.34 s 3.36 96.33 64.36 Assurant AIZ 2.2 10 95.98 0.85 4.06 35.04 25.55 AstraZeneca AZN 3.2 31 28.43 -0.26 ATH ... 5 47.12 -0.08 -1.81 48.72 43.25 Athene 0.03 81.97 60.00 AtmosEnergy ATO 2.4 22 74.17 -0.43 ALV 2.0 17 113.28 0.02 0.11 126.31 93.31 Autoliv 3.45 54.15 39.28 AutoNation AN ... 13 50.33 -0.79 0.40 819.54 681.01 AutoZone AZO ... 19 792.91 0.91 1.61 192.29 158.32 Avalonbay AVB 3.0 26 180.00 1.57 AGR 4.5 25 38.73 0.48 2.24 46.74 35.42 Avangrid 3.10 79.27 57.06 AveryDennison AVY 2.3 21 72.40 0.97 AVT 1.4 14 47.58 0.45 -0.06 51.50 37.10 Avnet 1.47 30.45 20.67 AxaltaCoating AXTA ... 63 27.60 -0.21 BBT 2.6 17 47.04 0.31 0.04 47.85 29.95 BB&T BCE 4.6 14 44.26 -0.24 2.36 49.03 35.96 BCE 3.30 40.20 18.46 BHPBilliton BHP 1.5 dd 36.96 -0.56 3.24 35.83 16.36 BHPBilliton BBL 1.7 dd 32.48 -0.46 BP 6.3 dd 37.91 -0.66 1.42 38.68 27.01 BP BRFS ... 30 14.32 -0.81 -2.98 18.12 11.05 BRF BT 2.5 12 24.00 -0.32 4.21 36.04 21.61 BT Group -1.55 68.59 37.58 BakerHughes BHI 1.1 dd 63.96 -0.39 BLL 0.7 42 77.20 0.34 2.84 82.24 62.30 Ball 2.95 7.67 5.14 BancoBilbaoViz BBVA 4.8 11 6.97 0.02 0.30 72.79 54.98 BancodeChile BCH 4.1 14 70.66 -0.41 0.32 23.50 15.69 BcoSantChile BSAC 4.9 16 21.94 -0.10 s 4.63 5.44 3.60 BancoSantander SAN ... 12 5.42 ... 4.14 42.58 24.69 BanColombia CIB 3.1 12 38.20 0.15 ... 2.62 23.39 10.99 BankofAmerica BAC 1.3 19 22.68 s 2.59 74.05 47.54 BankofMontreal BMO 3.6 11 73.78 -0.06 1.67 49.54 32.20 BankNY Mellon BK 1.6 16 48.17 0.08 3.95 58.97 35.01 BkNovaScotia BNS 3.8 10 57.88 0.09 BCS 1.8 dd 11.54 4.91 12.05 6.76 Barclays ... BCR 0.5 34 229.66 0.52 2.23 239.43 172.21 Bard CR 5.94 23.47 7.38 BarrickGold ABX 0.5 dd 16.93 -0.44 BAX 1.1 5 45.52 0.47 2.66 50.16 34.06 BaxterIntl 1.41 181.75 129.50 BectonDickinson BDX 1.7 37 167.89 3.09 WRB 0.8 15 67.07 -0.26 0.84 67.86 47.54 Berkley 0.52 250786 186900 BerkHathwy A BRK/A ... 17 245394 542.50 0.26 167.25 123.55 BerkHathwy B BRK/B ... 17 163.41 0.11 2.87 51.68 27.79 BerryPlastics BERY ... 27 50.13 0.30 BBY 2.6 13 42.77 0.13 0.23 49.40 25.31 BestBuy s 2.87 188.00 122.03 Bio-RadLab A BIO ... 56 187.51 1.58 0.99 399.46 280.55 BlackRock BLK 2.4 20 384.30 1.76 s 12.87 30.91 22.31 BlackstoneGroup BX 5.4 26 30.51 0.09 s 6.28 18.54 8.86 BoardwalkPipe BWP 2.2 17 18.45 0.24 BA 3.6 24 159.10 0.39 2.20 160.07 102.10 Boeing 0.39 38.54 25.03 BoozAllen BAH 1.7 18 36.21 0.27 4.21 41.98 27.52 BorgWarner BWA 1.4 17 41.10 0.33 4.59 144.02 107.28 BostonProperties BXP 2.3 41 131.55 -0.30 2.40 24.79 15.67 BostonScientific BSX ... dd 22.15 0.10 BAK 3.6 13 21.77 -0.51 2.64 22.81 10.82 Braskem 2.58 77.12 49.03 Bristol-Myers BMY 2.6 29 59.95 -0.18 3.48 29.14 19.91 BrixmorProp BRX 4.1 32 25.27 -0.02 ... 71.74 48.56 BroadridgeFinl BR 2.0 26 66.30 0.27 0.94 36.25 25.68 BrookfieldMgt BAM 1.6 12 33.32 -0.16 3.41 35.03 20.33 BrookfieldInfr BIP 4.5 46 34.61 0.32 0.11 45.77 28.41 Brown&Brown BRO 1.2 25 44.91 -0.15 0.56 56.49 46.06 Brown-Forman A BF/A 1.6 18 46.51 -0.30 0.31 51.71 43.82 Brown-Forman B BF/B 1.6 17 45.06 -0.22 2.77 75.10 47.07 BuckeyePtrs BPL 7.2 16 67.99 0.46 BG 2.4 16 70.14 -0.96 -2.91 74.00 46.08 Bunge 0.71 91.67 41.44 BurlingtonStores BURL ... 33 85.35 -1.78 -0.92 33.21 22.73 CBRE Group CBG ... 22 31.20 -0.61 CBS/A 1.1 18 65.68 -1.07 1.33 67.59 46.86 CBS A CBS 1.1 18 64.29 -1.19 1.05 66.88 41.36 CBS B 6.32 37.72 20.77 CF Industries CF 3.6115 33.47 0.42 3.39 50.58 36.04 CGI Group GIB ... 14 49.66 -0.07 CIT 1.4 20 43.48 0.52 1.87 43.99 25.18 CIT Group 1.27 46.25 35.49 CMS Energy CMS 2.9 20 42.15 0.16 CNA 2.4 20 40.99 -0.19 -1.23 42.27 27.99 CNA Fin CEO 2.4 dd 127.77 -1.23 3.07 138.36 82.28 CNOOC 1.43 15.79 6.38 CPFLEnergia CPL 1.6 27 15.62 -0.11 CRH 1.2 27 33.95 -0.24 -1.25 35.88 23.33 CRH CSRA 1.2 46 32.16 0.07 1.01 32.84 20.98 CSRA 4.17 106.67 69.30 CVS Health CVS 2.4 18 82.20 0.78 COG 0.3 dd 22.89 0.25 -2.01 26.74 14.88 CabotOil 0.87 90.91 69.76 CamdenProperty CPT 3.5 17 84.80 -0.40 CCJ 2.8 60 10.77 -0.16 2.87 13.59 7.41 Cameco 0.38 67.89 50.91 CampbellSoup CPB 2.3 29 60.70 -0.23 CM 4.4 8 84.38 -0.06 3.41 85.66 56.29 CIBC 2.55 70.00 46.23 CanNtlRlwy CNI 1.6 15 69.12 -0.33 2.20 35.28 14.41 CanNaturalRes CNQ 2.3 dd 32.58 -0.21 4.11 157.34 97.09 CanPacRlwy CP 1.0 15 148.64 1.48 CAJ 5.0 20 28.56 -0.33 1.49 30.93 26.60 Canon 1.56 91.64 58.02 CapitalOne COF 1.8 13 88.60 0.22 4.67 87.85 62.70 CardinalHealth CAH 2.4 18 75.33 0.83 CSL 1.3 28 109.40 -0.20 -0.81 116.40 75.17 Carlisle KMX ... 21 65.40 -0.98 1.57 67.60 41.25 CarMax CCL 2.6 14 53.65 -0.06 3.05 54.90 40.52 Carnival CUK 2.7 14 52.48 -0.17 2.52 57.27 42.45 Carnival 0.32 97.40 56.36 Caterpillar CAT 3.3 54 93.04 0.04 2.91 84.97 55.07 Celanese A CE 1.8 27 81.03 0.28 CX ... 17 8.03 0.07 ... 9.35 3.50 Cemex CNCO 2.2 13 8.31 -0.26 -1.07 10.13 5.36 Cencosud ... 1.12 16.82 9.10 CenovusEnergy CVE 1.0 dd 15.30 CNC ... 24 61.04 0.89 8.02 75.57 47.36 Centene s 2.92 25.45 16.38 CenterPointEner CNP 4.2 dd 25.36 0.55 -0.44 7.70 1.12 CentraisElBras EBR ... 31 6.83 -0.19 6.73 33.45 21.94 CenturyLink CTL 8.5 15 25.38 -0.12 -0.14 8.20 1.50 ChesapeakeEner CHK ... dd 7.01 -0.17 CVX 3.7 dd 116.84 -0.47 -0.73 119.00 75.33 Chevron 5.86 31.59 20.93 ChinaEastrnAir CEA ... 7 23.66 -0.24 4.58 14.66 10.07 ChinaLifeIns LFC 2.4 35 13.46 -0.27 3.15 63.89 50.12 ChinaMobile CHL 3.5 13 54.08 -0.83 5.11 77.93 48.28 ChinaPetrol SNP 3.2 17 74.65 0.37 5.64 36.29 25.14 ChinaSoAirlines ZNH 2.2 6 27.16 -0.49 4.16 55.85 42.23 ChinaTelecom CHA 2.5 12 48.05 -0.47 2.34 13.26 9.89 ChinaUnicom CHU 2.2 36 11.82 -0.17 CMG ...164 398.44 6.55 5.60 542.50 352.96 Chipotle CB 2.1 18 131.33 0.70 -0.60 133.89 106.82 Chubb 0.86 38.47 29.63 ChunghwaTelecom CHT 5.4 19 31.82 -0.97 1.54 53.68 38.42 Church&Dwight CHD 1.6 26 44.87 -0.02 CI 0.0 19 141.81 0.10 6.31 148.99 115.03 Cigna 3.02 146.96 72.77 CimarexEnergy XEC 0.2 dd 140.01 -0.10 C 1.1 13 60.55 0.21 1.88 61.63 34.52 Citigroup 0.79 37.08 18.04 CitizensFin CFG 1.3 19 35.91 0.19 CLX 2.6 25 122.52 -0.18 2.08 140.47 111.24 Clorox COH 3.8 21 35.54 0.25 1.48 43.71 30.06 Coach

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

KO 3.4 25 41.74 0.68 47.13 39.88 Coca-Cola -0.30 87.58 61.00 Coca-Cola Femsa KOF 2.7 24 63.35 2.93 75.38 61.40 Colgate-Palmolive CL 2.3 44 67.36 CMA 1.3 28 70.27 3.17 71.20 30.48 Comerica SBS 0.7 9 9.00 3.69 10.55 4.06 SABESP CSC 0.9 dd 59.93 0.86 63.34 24.27 CSC -2.05 39.97 29.55 ConagraBrands CAG 2.1 27 38.74 2.26 147.55 69.94 ConchoRscs CXO ... dd 135.60 1.20 53.17 31.05 ConocoPhillips COP 2.0 dd 50.74 ED 3.6 18 73.94 0.35 81.88 65.11 ConEd -2.52 173.55 130.23 ConstBrands A STZ 1.1 27 149.44 -2.64 175.50 134.76 ConstBrands B STZ/B 1.0 27 149.16 -0.10 60.30 13.94 ContinentalRscs CLR ... dd 51.49 COO 0.0 32 177.21 1.30 190.99 119.28 Cooper CLB 1.8 85 125.19 4.29 135.49 84.50 CoreLabs GLW 2.2 12 24.52 1.03 25.34 16.13 Corning COTY 2.6238 19.08 4.21 31.60 17.94 Coty BAP 1.4 ... 164.69 4.33 166.26 84.72 Credicorp 9.57 20.19 10.01 CreditSuisse CS ... dd 15.68 -0.88 18.95 7.82 CrescentPoint CPG 2.0 dd 13.47 2.35 27.40 7.90 CrestwoodEquity CEQP 9.2 dd 26.15 -1.46 102.82 75.71 CrownCastle CCI 4.4 87 85.50 3.35 57.49 43.30 CrownHoldings CCK ... 15 54.33 -0.52 90.17 42.41 Cullen/Frost CFR 2.5 20 87.77 CMI 3.0 20 138.72 1.50 147.10 79.88 Cummins DDR 5.0 dd 15.30 0.20 19.92 14.67 DDR 0.36 100.45 78.25 DTE Energy DTE 3.3 22 98.86 DHR 0.6 22 80.43 3.33 82.64 61.58 Danaher DRI 3.1 21 71.55 -1.61 79.43 55.77 Darden DVA ... 19 65.79 2.48 78.77 54.50 DaVita s 3.35 106.75 70.16 Deere DE 2.3 22 106.49 2.70 78.00 55.59 DelphiAutomotive DLPH 1.7 18 69.17 DAL 1.6 8 49.68 1.00 52.76 32.60 DeltaAir 6.46 23.15 11.19 DeutscheBank DB ... dd 19.27 6.57 50.69 18.07 DevonEnergy DVN 0.5 dd 48.67 DEO 3.5 20 106.39 2.36 117.84 99.46 Diageo DKS 1.1 19 55.33 4.20 62.88 33.44 Dick's 5.88 113.21 69.89 DigitalRealty DLR 3.4 73 104.04 -0.04 74.33 42.86 DiscoverFinSvcs DFS 1.7 13 72.06 s 4.57 109.35 86.25 Disney DIS 1.4 19 108.98 -0.97 96.88 66.50 DollarGeneral DG 1.4 17 73.35 0.40 78.97 67.58 DominionRscs D 3.6 23 76.90 DPZ 0.9 41 163.49 2.67 172.62 101.01 Domino's -0.26 46.29 25.21 Donaldson DCI 1.7 27 41.97 0.85 39.25 24.73 DouglasEmmett DEI 2.5 71 36.87 s 3.72 78.96 50.91 Dover DOV 2.3 25 77.72 0.38 59.33 40.26 DowChemical DOW 3.2 9 57.44 0.29 98.80 81.05 DrPepperSnap DPS 2.3 20 90.93 1.57 54.73 40.67 DrReddy'sLab RDY 0.7 46 45.99 DD 2.1 32 73.38 -0.03 75.86 50.71 DuPont -0.17 87.31 70.35 DukeEnergy DUK 4.4 19 77.49 1.77 28.99 18.52 DukeRealty DRE 2.8 34 27.03 E 5.4 dd 33.11 2.70 33.38 24.73 ENI EOG 0.6 dd 105.21 4.07 109.37 57.15 EOG Rscs EQT 0.2 dd 65.33 -0.11 80.61 49.56 EQT 0.27 80.63 57.88 EQT Midstream EQM 4.2 15 76.89 3.04 78.79 56.03 EastmanChem EMN 2.6 13 77.50 ETN 2.2 16 68.01 1.37 70.00 46.19 Eaton ECL 1.2 33 118.92 1.45 124.60 98.62 Ecolab EC ... dd 9.49 4.86 10.29 5.16 Ecopetrol EIX 3.0 27 71.69 -0.42 78.72 58.18 EdisonInt 3.60 121.75 72.20 EdwardsLife EW ... 38 97.07 1.17 58.28 41.25 EmersonElectric EMR 3.4 22 56.40 2.04 26.36 14.27 EnbridgeEnPtrs EEP 9.0 dd 26.00 ENB 3.6 21 43.61 3.54 45.77 27.43 Enbridge ECA 0.5 dd 12.95 10.31 13.49 3.00 Encana 0.14 92.69 57.97 Endurance ENH 1.6 15 92.53 ... 9.16 5.57 EnelAmericas ENIA 6.0 10 8.21 1.39 29.52 18.35 EnelGenChile EOCC 3.3 ... 19.71 EGN ... dd 58.97 2.25 64.44 20.76 Energen s 2.85 20.05 4.00 EnergyTrfrEquity ETE 5.7 19 19.86 4.55 43.50 18.62 EnergyTrfrPtrs ETP 11.3 dd 37.44 ERF 1.0 dd 9.24 -2.53 10.33 1.84 Enerplus -2.61 19.89 6.32 EnLinkMidPtrs ENLK 8.7 dd 17.94 ETR 4.8 10 73.24 -0.31 82.08 65.38 Entergy 2.26 30.11 19.00 EnterpriseProd EPD 5.9 22 27.65 3.68 83.27 57.32 EnvisionHlthcr EVHC ... 19 65.62 EFX 1.1 31 121.00 2.34 136.97 91.72 Equifax 2.41 83.19 62.22 EquityLife ELS 2.3 39 73.84 1.58 81.13 58.28 EquityResdntl EQR 3.1 55 65.38 0.53 238.67 191.25 EssexProp ESS 2.7 52 233.74 3.49 97.48 75.30 EsteeLauder EL 1.7 27 79.16 1.12 219.51 167.07 EverestRe RE 2.3 10 218.82 0.05 60.44 50.16 EversourceEner ES 3.2 20 55.26 EXC 3.5 27 36.08 1.66 37.70 26.26 Exelon 2.54 94.81 68.09 ExtraSpaceSt EXR 3.9 34 79.20 -1.95 95.55 71.55 ExxonMobil XOM 3.4 41 88.50 FMC 1.1 dd 58.32 3.11 60.00 32.24 FMC FTI ... 76 36.40 2.45 36.96 22.30 FMC Tech FDS 1.2 20 170.74 4.47 183.17 135.95 FactSet 1.67 171.08 134.39 FederalRealty FRT 2.7 48 144.49 FDX 0.8 29 190.25 2.18 201.57 119.71 FedEx s 14.25 10.55 5.45 FiatChrysler FCAU ... 9 10.42 2.08 11.74 5.79 FibriaCelulose FBR ... 8 9.81 1.41 38.50 28.24 FidelityNatlFin FNF 2.9 21 34.44 -4.38 14.50 8.38 FNFV Group FNFV ... 8 13.10 4.30 81.67 55.10 FidelityNtlInfo FIS 1.3 54 78.89 FDC ... dd 15.46 8.95 15.71 8.37 FirstData 0.66 93.59 56.32 FirstRepBank FRC 0.7 25 92.75 0.52 36.60 29.33 FirstEnergy FE 4.6 dd 31.13 4.86 176.42 107.56 FleetCorTech FLT ... 35 148.40 1.69 52.50 33.86 Flowserve FLS 1.6 42 48.86 FLR 1.6 47 53.22 1.33 57.77 39.48 Fluor -1.19 100.57 74.27 FomentoEconMex FMX 1.7 24 75.30 -0.14 79.43 50.90 FootLocker FL 1.6 15 70.79 5.19 14.22 11.02 FordMotor F 4.7 6 12.76 -1.10 24.22 16.43 ForestCIty A FCE/A 1.2 73 20.61 -1.26 28.41 16.59 ForestCity B FCE/B 0.9 94 26.59 FTS 3.9 17 31.15 0.87 34.66 24.63 Fortis FTV 0.5 ... 53.87 0.45 56.24 43.00 Fortive 2.47 64.47 44.19 FortBrandsHome FBHS 1.3 22 54.78 Franco-Nevada FNV 1.4 90 61.28 2.54 81.16 41.47 2.96 42.18 30.56 FranklinRscs BEN 2.0 14 40.75 12.96 16.42 3.52 Freeport-McMoRan FCX ... dd 14.90 0.81 47.52 38.05 FreseniusMed FMS 1.1 22 42.55 s 2.27 53.36 35.96 Gallagher AJG 2.9 25 53.14 4.01 30.74 17.00 Gap GPS 3.9 14 23.34 -5.33 105.45 77.80 Gartner IT ... 44 95.68 6.02 10.97 7.15 Gazit-Globe GZT ... 3 9.16 2.78 180.09 121.61 GeneralDynamics GD 1.7 19 177.46 0.03 33.00 27.10 GeneralElec GE 3.0 25 31.61 4.08 32.10 23.89 GeneralGrowthProp GGP 3.4 20 26.00 -0.49 72.95 53.53 GeneralMills GIS 3.1 23 61.47 3.30 37.74 26.69 GeneralMotors GM 4.2 4 35.99 0.65 105.97 76.50 GenuineParts GPC 2.7 21 96.16 GGB 0.7 dd 3.56 13.38 4.30 0.79 Gerdau GIL 1.2 12 25.41 0.16 32.20 22.43 Gildan 2.26 45.58 37.20 GlaxoSmithKline GSK 4.7324 39.38 7.26 79.93 51.29 GlobalPayments GPN 0.1 38 74.45 GG 0.5 dd 14.62 7.50 20.38 9.46 Goldcorp s 2.28 246.20 138.20 GoldmanSachs GS 1.1 20 244.90 GWW 2.1 21 231.50 -0.32 240.74 176.85 Grainger 2.45 32.74 25.85 GreatPlainsEner GXP 3.9 20 28.02 4.66 9.04 5.59 GpoAvalAcciones AVAL 4.8 12 8.31 1.25 10.13 6.73 GpFinSantandMex BSMX 6.7 11 7.28 1.20 29.34 19.86 GrupoTelevisa TV 0.4 39 21.14 -0.13 31.35 20.51 GuangshenRail GSH 2.0 22 30.27 3.51 83.69 60.07 HCAHoldings HCA ... 12 76.62 HCP 4.7 dd 31.22 5.05 36.81 22.86 HCP ... 74.04 51.11 HDFC Bank HDB 0.7 ... 60.68 HPQ 3.5 11 15.00 1.08 16.25 8.91 HP 2.41 43.07 28.62 HSBCHoldings HSBC 4.9 33 41.15 s 4.75 56.98 27.64 Halliburton HAL 1.3 dd 56.66 4.13 31.36 21.40 Hanesbrands HBI 2.0 17 22.46 1.30 62.35 36.36 HarleyDavidson HOG 2.4 16 59.10 -0.31 111.32 64.93 HarmanIntlInds HAR 1.3 21 110.81 HRS 2.0 37 104.55 2.03 107.54 70.97 Harris 1.68 48.82 36.54 HartfordFinl HIG 1.9 14 48.45 4.74 85.78 40.02 Helmerich&Payne HP 3.5 dd 81.07 HSY 2.4 28 104.51 1.04 117.79 82.42 Hershey HES 1.6 dd 61.90 -0.63 65.56 32.41 Hess -0.17 24.79 11.62 HewlettPackard HPE 1.1 13 23.10 3.51 56.23 38.08 HighwoodsProp HIW 3.2 45 52.80 2.98 59.76 33.16 HiltonWorldwide HLT ... 12 57.47 -2.29 39.17 22.07 HollyFrontier HFC 4.1 dd 32.01 -0.41 139.00 109.62 HomeDepot HD 2.1 22 133.53 4.39 31.18 24.03 HondaMotor HMC ... 15 30.47 2.31 119.34 93.18 Honeywell HON 2.2 19 118.53 4.40 45.72 33.18 HormelFoods HRL 1.9 22 36.34 1.90 34.56 22.97 DR Horton DHI 1.4 12 27.85 -3.13 19.51 12.17 HostHotels HST 4.4 17 18.25 -1.88 37.79 22.84 HuanengPower HNP 11.3 6 25.55 HUBB 2.4 23 118.44 1.49 119.09 83.16 Hubbell HUM 0.6 28 201.73 -1.13 217.80 150.00 Humana 5.08 197.28 118.20 HuntingtonIngalls HII 1.2 22 193.55 -0.52 58.05 34.06 HyattHotels H ... 37 54.97 IBN 2.0 16 7.54 0.67 8.80 5.15 ICICI Bank 3.76 14.77 9.26 ING Groep ING 3.7 ... 14.63 IVZ 3.6 16 31.53 3.92 33.34 23.02 Invesco IEX 1.5 25 90.60 0.60 95.76 67.20 IDEX 0.34 127.99 79.15 IllinoisToolWks ITW 2.1 22 122.88 -0.07 20.47 13.74 Infosys INFY 2.2 16 14.82 0.03 79.21 47.08 Ingersoll-Rand IR 2.1 13 75.06 INGR 1.6 19 125.93 0.78 140.00 84.57 Ingredion ICE 1.2 23 57.34 1.63 59.86 45.44 ICE 1.42 50.51 34.63 InterContinentl IHG 1.3 9 44.96 IBM 3.3 14 169.53 2.13 169.95 116.90 IBM -1.54 143.64 97.24 IntlFlavors IFF 2.2 24 116.02 3.84 32.07 12.48 IntlGameTech IGT 3.0102 26.50 IP 3.4 26 53.72 1.24 54.68 32.50 IntlPaper 0.98 24.82 19.79 Interpublic IPG 2.5 18 23.64 3.14 41.50 23.64 IronMountain IRM 6.6115 33.50 7.54 5.02 3.52 IsraelChemicals ICL ... dd 4.42 7.98 12.19 4.98 ItauUnibanco ITUB ... 12 11.10 -0.20 87.76 52.50 JPMorganChase JPM 2.2 15 86.12 1.72 63.42 34.76 JacobsEngineering JEC ... 34 57.98 0.06 17.30 10.19 JamesHardie JHX 1.3 36 15.91 JNJ 2.8 21 116.30 0.95 126.07 94.28 J&J 3.88 46.17 27.12 JohnsonControls JCI 2.3 dd 42.79 JOY 0.1 dd 28.09 0.32 28.55 8.35 JoyGlobal 2.12 29.21 21.18 JuniperNetworks JNPR 1.4 19 28.86

-0.01 -0.17 0.51 0.73 -0.22 0.60 -0.21 0.46 -0.19 0.22 2.69 1.19 -1.15 0.84 -0.18 0.21 0.17 0.51 -0.04 -0.12 0.25 -1.74 0.30 0.09 0.97 -0.17 0.26 0.42 -0.22 0.08 1.14 -0.44 -0.05 0.01 -0.34 -0.43 0.89 -1.20 -0.84 1.60 -1.17 0.62 0.72 -0.18 0.05 1.19 -0.36 -0.44 -0.71 -0.43 -0.26 -0.08 -0.10 1.03 -0.53 -0.38 0.02 0.66 0.31 -0.07 -0.41 -0.12 0.26 0.05 0.27 0.15 0.01 -0.01 -0.14 -0.40 0.28 0.79 -0.15 -0.41 0.24 0.24 -0.32 1.02 0.59 0.23 0.98 0.56 1.04 -0.02 0.58 0.73 -0.05 -0.11 -0.21 1.86 -0.80 1.84 0.61 0.03 0.01 -0.40 0.84 0.43 0.68 0.28 0.93 0.21 -0.46 -0.67 -0.98 -0.01 -0.13 -0.08 0.03 -0.07 0.83 -1.90 0.02 0.28 -0.19 0.12 0.09 5.12 0.04 1.32 0.09 ... -0.30 -0.40 -0.51 -0.09 -0.27 -0.35 1.03 -0.32 3.58 -0.76 0.29 -0.11 -0.23 -0.44 -1.02 -0.19 0.07 -0.22 -0.07 -0.01 0.45 -0.15 -0.55 -0.07 1.14 0.10 2.27 1.06 -0.20 -0.46 -0.08 0.15 -1.74 -0.37 -0.19 1.77 0.18 -0.50 -0.25 -0.44 0.26 1.00 -2.06 -0.28 -0.12 -0.07 0.01 -0.22 1.27 -0.20 -0.17 -0.36 0.37 -1.00 0.83 -0.08 0.38 0.11 0.54 -0.48 0.05 -0.04 0.01 -0.58 -0.24 -0.56 0.85 0.03 0.02

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

s 4.67 44.70 31.54 KAR Auction KAR 2.9 28 44.61 0.32 KB ... 8 35.60 -0.50 0.88 38.56 22.84 KB Fin KKR 3.8 64 16.73 0.32 8.71 17.57 10.89 KKR KT ... 16 13.94 -0.11 -1.06 16.79 10.81 KT -1.23 100.69 62.20 KSCitySouthern KSU 1.6 19 83.81 2.10 K 2.8 37 73.13 0.02 -0.79 87.16 68.73 Kellogg KEY 1.9 21 18.32 0.04 0.27 18.66 9.88 KeyCorp -1.01 38.28 21.07 KeysightTechs KEYS ... 19 36.20 -0.25 1.82 77.54 46.76 KilroyRealty KRC 2.0 25 74.55 1.15 2.02 138.87 111.30 KimberlyClark KMB 3.2 21 116.43 0.42 2.86 32.24 24.35 KimcoRealty KIM 4.2 24 25.88 -0.19 5.31 23.36 11.20 KinderMorgan KMI 2.3 dd 21.81 0.12 7.72 5.82 1.31 KinrossGold KGC 4.8 dd 3.35 -0.11 -16.10 59.67 33.87 Kohl's KSS 4.8 13 41.43 -0.58 -1.73 30.63 23.00 KoninklijkePhil PHG 3.0 32 30.04 -0.04 -0.05 28.37 18.22 KoreaElcPwr KEP ... 3 18.47 -0.31 KR 1.4 16 33.11 -0.10 -4.06 41.69 28.71 Kroger KYO ... 22 50.73 -0.05 1.91 51.23 38.01 Kyocera LB 3.9 15 61.23 -0.81 -7.00 97.39 60.00 L Brands 3.89 14.36 8.43 LGDisplay LPL ...110 13.35 0.04 LN ... ... 35.50 0.35 4.38 51.48 33.36 LINE LLL ... 42 154.11 1.78 1.31 161.91 105.88 L3 Tech LH ... 21 129.34 0.23 0.75 141.32 97.79 LabCpAm -2.69 38.60 28.75 LambWeston LW ... ... 36.83 0.21 3.86 63.38 34.88 LasVegasSands LVS 5.2 27 55.47 0.39 LAZ 3.7 13 41.00 -0.59 -0.22 44.07 26.21 Lazard LEA 0.9 10 136.90 0.39 3.42 138.80 93.54 Lear -0.72 54.62 36.64 Leggett&Platt LEG 2.8 18 48.53 -0.50 LDOS 2.5 14 50.66 -0.11 -0.94 59.45 37.79 Leidos LEN 0.4 11 43.69 -0.73 1.77 49.60 37.14 Lennar A LEN/B 0.5 9 35.33 -0.49 2.41 39.93 30.04 Lennar B -0.82 164.56 105.65 LennoxIntl LII 1.1 27 151.91 -1.32 1.20 24.16 14.27 LeucadiaNatl LUK 1.1241 23.53 0.08 4.15 59.24 41.73 Level3Comm LVLT ... 6 58.70 -0.17 3.14 42.26 26.94 LibertyProperty LPT 4.7 25 40.74 -0.09 LLY 2.7 33 75.67 0.08 2.88 84.80 64.18 EliLilly 1.63 69.49 30.39 LincolnNational LNC 1.7 13 67.35 0.82 2.38 28.23 26.09 LionsGate A LGF/A ... ... 27.54 -0.30 4.06 29.04 18.77 LiveNationEnt LYV ... dd 27.68 0.18 5.48 4.42 2.47 LloydsBanking LYG 2.7 39 3.27 -0.02 3.16 269.90 200.47 LockheedMartin LMT 2.8 20 257.85 1.87 L 0.5 94 46.75 0.21 -0.17 48.05 33.84 Loews LOW 2.0 26 70.95 -0.12 -0.24 83.65 62.62 Lowe's LUX 2.0 ... 50.85 -0.25 -5.31 64.25 44.85 Luxottica 2.79 93.75 69.09 LyondellBasell LYB 3.9 10 88.17 -0.51 0.08 160.76 100.08 M&T Bank MTB 1.8 21 156.56 1.18 1.95 29.92 15.57 MDU Rscs MDU 2.6113 29.33 -0.01 2.39 30.62 16.18 MGM Resorts MGM ... 59 29.52 0.15 s 3.58 36.27 16.34 MPLX MPLX 5.7 dd 35.86 -0.01 MSCI 1.3 33 83.40 1.76 5.86 90.79 62.17 MSCI MSC Industrial MSM 2.0 24 92.00 0.28 -0.42 95.10 56.92 MAC 3.9132 72.69 0.27 2.61 94.51 66.00 Macerich 0.17 85.45 51.83 MacquarieInfr MIC 6.3 57 81.84 0.12 M 4.9 14 30.82 -0.04 -13.93 45.50 29.94 Macy's s 1.56 77.50 55.25 MagellanMid MMP 4.4 22 76.81 -0.06 3.82 47.21 30.41 MagnaIntl MGA 2.2 7 45.06 -0.11 5.88 85.83 48.61 Mallinckrodt MNK ... 11 52.75 -1.08 1.31 92.93 57.26 Manpower MAN 1.9 15 90.03 0.12 3.20 19.04 10.99 ManulifeFin MFC 3.0 12 18.39 0.04 3.29 19.28 6.52 MarathonOil MRO 1.1 dd 17.88 -0.30 0.04 54.59 29.24 MarathonPetrol MPC 2.9 24 50.37 -0.68 -2.37 18.68 12.40 MarineHarvest MHG 6.1 17 17.70 0.08 MKL ... 25 918.02 1.02 1.49 989.18 805.03 Markel 1.61 69.77 50.81 Marsh&McLennan MMC 2.0 21 68.68 0.37 -0.76 236.41 108.31 MartinMarietta MLM 0.8 35 219.84 -6.68 MAS 1.2 23 32.53 -0.13 2.88 37.38 23.10 Masco 4.37 108.93 78.52 Mastercard MA 0.8 30 107.76 0.77 -2.07 107.84 78.45 McCormick MKC 2.1 25 91.40 -0.09 -1.83 108.26 79.01 McCormickVtg MKC/V 2.1 25 91.40 -1.09 -0.79 131.96 110.33 McDonalds MCD 3.1 23 120.76 1.06 4.61 199.43 114.53 McKesson MCK 0.8 17 146.92 0.42 1.19 94.40 65.53 MeadJohnson MJN 2.3 27 71.60 -0.07 MD ... 19 68.19 -0.69 2.30 76.96 59.36 Mednax 2.30 89.27 69.35 Medtronic MDT 2.4 24 72.87 2.04 MRK 3.1 31 60.27 0.16 2.38 65.46 47.97 Merck MET 3.0 17 54.18 0.35 0.54 58.09 35.00 MetLife 3.34 434.50 291.32 MettlerToledo MTD ... 32 432.56 10.04 -1.19 59.49 34.83 MichaelKors KORS ... 10 42.47 0.37 0.08 110.01 82.91 MidAmApt MAA 3.6 34 98.00 -0.08 3.41 6.70 3.86 MitsubishiUFJ MTU ... 11 6.37 -0.04 2.79 3.90 2.69 MizuhoFin MFG ... 8 3.69 -0.02 1.87 9.66 5.14 MobileTeleSys MBT 4.0 14 9.28 -0.07 MBLY ...107 41.68 -0.28 9.34 51.15 23.57 Mobileye 2.38 216.58 148.56 MohawkIndustries MHK ... 17 204.44 0.09 2.55 112.19 80.78 MolsonCoors B TAP 1.6 37 99.79 0.11 2.78 114.26 83.73 Monsanto MON 2.0 36 108.13 2.92 MCO 1.5 21 98.30 0.44 4.27 110.83 77.76 Moody's s 3.79 44.13 21.16 MorganStanley MS 1.8 18 43.85 0.63 MOS 3.6 25 30.80 -0.07 5.01 31.54 22.02 Mosaic ... 87.55 59.13 MotorolaSolutions MSI 2.3 24 82.89 0.25 0.87 37.48 14.30 MurphyOil MUR 3.2 dd 31.40 -0.23 s 5.13 43.20 18.02 NCR NCR ... 29 42.64 0.19 3.21 28.43 19.43 NTTDoCoMo DCM ... 15 23.48 -0.26 NVR ... 17 1678.10 -11.30 0.55 1845.37 1462.02 NVR 0.02 74.97 56.50 NationalGrid NGG 5.4 15 58.34 -0.11 4.14 43.63 25.74 NatlOilwell NOV 0.5 dd 38.99 0.32 3.62 53.59 38.29 NatlRetailProp NNN 4.0 42 45.80 -0.29 13.21 53.38 27.50 NewOrientalEduc EDU ... 32 47.66 0.99 ... 17.68 13.74 NY CmntyBcp NYCB 4.3 dd 15.91 -0.13 4.95 55.45 33.26 NewellBrands NWL 1.6 89 46.86 0.18 6.10 50.00 20.84 NewfieldExpln NFX ... dd 42.97 -0.01 3.96 46.07 16.05 NewmontMining NEM 0.6696 35.42 -1.15 -0.68 131.98 103.35 NextEraEnergy NEE 2.9 23 118.65 -0.35 1.33 55.94 41.00 NielsenHoldings NLSN 2.9 26 42.51 -0.01 NKE 1.3 24 53.91 0.85 6.06 65.44 49.01 Nike 2.90 49.67 37.99 NipponTelegraph NTT ... 12 43.29 -0.42 NI 3.0 24 22.36 -0.32 0.99 26.94 19.05 NiSource 0.21 42.03 23.77 NobleEnergy NBL 1.0 dd 38.14 -0.02 NOK 5.9 21 4.92 0.02 2.29 7.55 4.04 Nokia 2.37 6.77 3.33 NomuraHoldings NMR ... 19 6.04 -0.04 -5.13 62.82 35.01 Nordstrom JWN 3.3 24 45.47 -0.09 s 3.32 112.99 64.51 NorfolkSouthern NSC 2.1 21 111.66 1.37 1.78 253.80 175.00 NorthropGrumman NOC 1.5 20 236.73 0.74 NVS 3.7 26 73.49 -0.58 0.89 83.58 66.93 Novartis 2.18 57.81 30.89 NovoNordisk NVO 1.2 17 36.64 -0.42 NUE 2.5 38 60.29 -0.61 1.29 68.00 33.90 Nucor 5.72 53.47 25.65 NuSTAREnergy NS 8.3 24 52.65 0.22 1.11 34.23 23.37 OGE Energy OGE 3.6 22 33.82 0.33 OKE 4.2 43 57.90 -0.93 0.85 59.47 18.88 ONEOK 3.74 47.01 22.00 ONEOK Partners OKS 7.1 34 44.62 0.17 -0.21 78.48 58.22 OccidentalPetrol OXY 4.3 dd 71.08 0.46 -2.42 5.99 2.65 Och-Ziff OZM ... dd 3.23 0.03 4.51 38.09 26.96 OmegaHealthcare OHI 7.5 22 32.67 0.09 OMC 2.6 18 85.81 0.75 0.82 89.66 66.48 Omnicom ORCL 1.6 19 38.45 -0.19 ... 42.00 33.13 Oracle ORAN 2.8 16 15.56 -0.13 2.77 18.32 13.98 Orange 2.71 91.79 67.04 OrbitalATK OA 1.3 19 90.11 0.05 IX ... 10 80.61 -0.68 3.57 82.58 57.00 Orix 1.12 58.69 38.96 OwensCorning OC 1.5 15 52.14 -0.36 PCG 3.2 37 61.22 0.68 0.74 65.43 50.65 PG&E PHI 7.1 24 29.36 -0.51 6.57 50.48 25.50 PLDT s 1.79 119.74 77.40 PNC Fin PNC 1.8 17 119.05 1.67 PKX ... 14 51.87 -0.76 -1.29 60.13 30.97 POSCO PPG 1.7 31 95.59 -0.03 0.88 117.00 88.37 PPG Ind PPL 4.4 13 34.56 0.26 1.50 39.92 32.08 PPL PVH 0.2 13 92.86 -0.10 2.90 115.40 64.16 PVH 2.81 88.41 44.32 PackagingCpAm PKG 2.9 19 87.20 1.87 8.00 167.31 111.09 PaloAltoNtwks PANW ... dd 135.05 3.08 -3.44 33.40 28.02 ParkHotels PK ... ... 28.87 0.47 1.06 145.44 83.32 ParkerHannifin PH 1.8 24 141.49 0.12 3.89 39.82 14.51 ParsleyEnergy PE ... dd 36.61 0.37 PSO 4.7 dd 10.02 -0.07 0.30 13.20 8.99 Pearson 1.28 32.31 17.88 PembinaPipeline PBA 4.5 30 31.72 -0.20 PNR 2.4 dd 58.01 -0.06 3.46 66.99 41.57 Pentair PEP 2.9 23 104.56 -0.15 -0.07 110.94 93.25 PepsiCo 1.84 57.28 39.50 PerkinElmer PKI 0.5 25 53.11 0.38 PRGO 0.7 dd 85.25 -1.28 2.43 152.36 79.72 Perrigo 5.59 78.09 52.30 PetroChina PTR 0.8133 77.82 0.06 7.52 12.55 2.71 PetroleoBrasil PBR ... dd 10.87 -0.23 10.10 11.77 1.99 PetroleoBrasilA PBR/A ... dd 9.70 -0.11 PFE 3.8 33 33.48 -0.13 3.08 37.39 28.25 Pfizer 0.38 104.20 84.46 PhilipMorris PM 4.5 22 91.84 0.71 PSX 3.0 22 85.40 -1.34 -1.17 90.87 71.74 Phillips66 -0.34 54.45 39.15 PinnacleFoods PF 2.1 31 53.27 -0.32 0.59 82.78 62.51 PinnacleWest PNW 3.3 20 78.49 0.10 2.78 195.00 103.50 PioneerNatRscs PXD 0.0 dd 185.07 -0.63 0.81 33.95 14.82 PlainsAllAmPipe PAA 6.8 64 32.55 -0.50 5.06 104.25 67.80 PolarisIndustries PII 2.5 22 86.56 1.53 3.63 89.00 50.93 PostHoldings POST ... dd 83.31 -0.20 POT 2.2 24 18.46 -0.30 2.05 19.88 14.64 Potash PX 2.6 22 116.20 0.53 -0.84 125.00 95.60 Praxair 1.73 61.34 33.09 PrincipalFin PFG 2.9 14 58.86 0.35 1.13 90.33 74.46 Procter&Gamble PG 3.1 24 85.03 -0.03 s 1.49 36.18 29.32 Progressive PGR 2.5 22 36.03 0.19 PLD 3.1 33 54.11 0.35 2.50 54.87 35.25 Prologis 1.05 108.29 57.19 PrudentialFin PRU 2.7 10 105.15 0.60 -0.43 42.20 29.14 Prudential PUK 1.7 19 39.62 -0.18 0.73 47.41 38.03 PublicServiceEnt PEG 3.7 17 44.20 0.44 2.17 277.60 200.65 PublicStorage PSA 3.5 35 228.35 0.79 0.44 22.40 14.61 PulteGroup PHM 2.0 12 18.46 -0.47 0.13 93.57 59.66 QuestDiag DGX 2.0 19 92.02 -0.22 2.33 81.45 55.01 QuintilesIMS Q ... 24 77.82 0.82 RENX 1.6 22 16.69 -0.11 -0.42 18.34 14.92 RELX RELX 1.5 23 17.95 -0.05 -0.11 19.84 16.18 RELX RPM 2.3 34 52.94 0.34 -1.65 55.92 36.78 RPM 2.96 46.92 16.74 RSP Permian RSPP ... dd 45.94 -0.17 -1.93 115.85 82.15 RalphLauren RL 2.3 39 88.58 -0.47 -0.38 46.96 19.21 RangeResources RRC 0.2 dd 34.23 0.03 s 7.78 74.73 39.84 RaymondJames RJF 1.2 20 74.66 1.07 RTN 2.0 20 148.22 0.06 4.38 152.58 115.73 Raytheon 4.11 72.30 50.96 RealtyIncome O 4.1 54 59.84 -0.08 RHT ... 56 73.80 0.70 5.88 82.73 59.59 RedHat 1.96 85.35 65.16 RegencyCtrs REG 2.8 84 70.30 0.15 0.84 14.73 7.00 RegionsFin RF 1.8 17 14.48 0.05 -0.59 129.28 76.96 ReinsuranceGrp RGA 1.3 12 125.09 0.09 0.99 87.58 50.08 RelianceSteel RS 2.1 19 80.33 -1.94 0.18 138.15 107.27 RenaissanceRe RNR 0.9 12 136.47 -0.83 -0.04 58.00 41.82 RepublicServices RSG 2.2 33 57.03 -0.18 RMD 2.1 26 62.14 0.27 0.15 70.90 51.92 ResMed 3.80 50.20 29.28 RestaurantBrands QSR 1.4 31 49.47 1.17 -1.21 56.65 43.38 ReynoldsAmer RAI 3.3 14 55.36 0.17 RIO 2.3 dd 38.39 -0.93 -0.18 42.61 21.89 RioTinto RAD ... 67 8.40 0.21 1.94 8.69 6.33 RiteAid -0.98 50.98 34.34 RobertHalf RHI 1.8 17 48.30 -0.30 ROK 2.2 25 138.51 0.77 3.06 139.64 87.53 Rockwell 0.29 96.55 76.03 RockwellCollins COL 1.4 17 93.03 0.31 2.23 45.50 32.50 RogersComm B RCI 3.7 18 39.44 -0.32 ROL 1.2 45 33.44 -0.18 -1.01 34.24 23.69 Rollins 2.62 189.44 155.79 RoperTech ROP 0.7 28 187.87 2.60 3.49 70.65 44.37 RoyalBkCanada RY 3.5 10 70.07 -0.01 3.44 8.43 3.91 RoyalBkScotland RBS ... dd 5.72 -0.06 2.79 95.65 64.21 RoyalCaribbean RCL 2.3 15 84.33 -0.67 2.59 56.39 35.80 RoyalDutchA RDS/A 6.7 47 55.79 -0.48 1.62 59.56 35.95 RoyalDutchB RDS/B 6.4 50 58.91 -0.48 SAP 1.5 28 88.47 0.62 2.36 92.76 71.39 SAP 6.56 128.40 78.55 S&P Global SPGI 1.3 17 114.60 2.01 s 5.49 57.20 35.50 SINOPECShanghai SHI 2.7 8 57.10 1.59 1.00 23.17 17.52 SK Telecom SKM ... 11 21.11 -0.32 2.73 120.63 80.12 SLGreenRealty SLG 2.8 38 110.49 1.17

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

7.80 84.48 52.60 Salesforce.com CRM ...246 73.80 SNY 4.1 23 40.32 -0.30 44.50 36.81 Sanofi SSL 4.5 20 29.21 2.17 33.31 21.07 Sasol SCG 3.2 18 71.90 -1.88 76.41 59.46 Scana 3.01 87.00 59.60 Schlumberger SLB 2.3 dd 86.48 s 4.46 41.52 21.51 SchwabC SCHW 0.7 34 41.23 0.49 98.82 62.34 ScottsMiracleGro SMG 2.1 35 96.02 SEE 1.4 22 47.18 4.06 52.83 38.02 SealedAir -2.76 7.74 3.84 SemicondctrMfg SMI ... 2 7.41 2.27 114.66 86.72 SempraEnergy SRE 2.9 20 102.92 2.36 41.43 29.91 SensataTech ST ... 17 39.87 2.64 29.23 20.21 ServiceCorp SCI 1.8 32 29.15 10.44 89.79 45.99 ServiceNow NOW ... dd 82.10 2.74 20.79 15.66 ShawComm B SJR 4.3 17 20.61 3.81 312.48 234.96 SherwinWilliams SHW 1.2 24 278.99 -0.19 40.92 29.08 ShinhanFin SHG ... 8 37.57 9.40 47.94 18.48 Shopify SHOP ... dd 46.90 -6.41 135.23 72.65 SignetJewelers SIG 1.2 13 88.22 5.07 31.35 10.04 SilverWheaton SLW 1.24143 20.30 5.16 229.10 173.11 SimonProperty SPG 3.5 34 186.83 SIX 4.2 49 60.62 1.10 62.69 45.24 SixFlags AOS 1.0 26 47.72 0.78 51.49 30.15 SmithAO 0.40 35.38 26.96 Smith&Nephew SNN 1.6 39 30.20 SJM 2.3 21 129.04 0.77 157.31 117.36 Smucker SNA 1.6 19 173.19 1.12 177.86 133.09 SnapOn 3.39 32.32 14.90 SOQUIMICH SQM 5.6 32 29.62 2.47 55.47 36.56 SonocoProducts SON 2.7 23 54.00 SNE ... 83 28.96 3.32 34.17 19.90 Sony SO 4.6 19 49.01 -0.37 54.64 46.00 Southern SCCO 0.6 39 33.59 5.17 35.01 21.55 SoCopper 0.18 52.12 33.96 SouthwestAirlines LUV 0.8 14 49.93 3.41 44.00 23.29 SpectraEnergy SE 4.1 94 42.49 2.68 50.48 39.53 SpectraEnerPtrs SEP 5.7 16 47.07 -0.16 138.95 87.65 SpectrumBrands SPB 1.2 21 122.13 2.45 61.55 40.03 SpiritAeroSys SPR ... 16 59.78 3.04 13.97 8.89 SpiritRealtyCap SRC 6.4 84 11.19 S ... dd 8.69 3.21 9.00 2.18 Sprint 3.07 126.72 88.72 StanleyBlackDck SWK 2.0 18 118.21 2.28 23.46 16.69 StarwoodProp STWD 8.6 16 22.45 6.07 82.89 50.59 StateStreet STT 1.8 17 82.44 STO 4.7 dd 18.84 3.29 19.02 10.88 Statoil STE 1.6 35 68.49 1.63 74.63 61.38 Steris -4.93 11.45 5.11 STMicroelec STM 2.2 dd 10.79 SYK 1.4 27 117.75 -1.72 123.55 86.68 Stryker 3.14 8.30 5.01 SumitomoMits SMFG ... 10 7.88 2.41 85.98 62.58 SunCommunities SUI 3.3 43 78.46 2.73 39.87 25.31 SunLifeFinancial SLF 3.2 11 39.46 1.99 33.79 18.71 SuncorEnergy SU 2.6 dd 33.34 4.54 31.49 15.43 SunocoLogistics SXL 8.1 50 25.11 1.24 56.48 31.07 SunTrustBanks STI 1.9 15 55.53 2.37 38.05 23.25 SynchronyFin SYF 1.4 14 37.13 SYT 2.8 31 80.34 1.63 89.13 68.94 Syngenta SYY 2.4 30 55.38 0.02 57.07 38.84 Sysco 9.29 83.68 41.34 TAL Education TAL ... 77 76.67 -1.41 71.87 51.70 TE Connectivity TEL 2.2 13 68.30 TU 4.3 14 33.30 4.55 34.12 24.34 Telus TX 3.8 16 23.49 -2.73 27.00 10.28 Ternium TSU 2.2 26 12.73 7.88 14.31 7.08 TIM Part TJX 1.4 22 75.98 1.13 83.64 65.64 TJX 3.06 31.61 20.45 TaiwanSemi TSM 3.2 16 29.63 s 5.96 59.97 14.55 TargaResources TRGP 6.1 dd 59.41 TGT 3.4 13 71.44 -1.09 84.14 65.50 Target 5.67 44.79 20.00 TataMotors TTM 0.0 14 36.34 4.99 33.76 2.56 TeckRscsB TECK 0.4 dd 21.03 0.79 12.08 6.95 TelecomItalia TI 2.9 17 8.96 ... 9.83 5.61 TelecomItalia A TI/A 4.3 14 7.29 TFX 0.8 29 165.32 2.59 188.79 125.28 Teleflex 0.97 15.69 7.71 TelefonicaBras VIV ... 21 13.51 4.89 11.43 8.15 Telefonica TEF 7.4130 9.65 1.51 34.65 21.22 TelekmIndonesia TLK 0.5 17 29.60 TS 1.4 dd 36.09 1.06 36.40 18.53 Tenaris TER 0.9 dd 25.65 0.98 26.59 17.34 Teradyne TSO 2.6 14 83.75 -4.23 108.00 67.80 Tesoro s 5.88 54.02 35.18 TesoroLogistics TLLP 6.5 26 53.80 -3.17 65.57 34.57 TevaPharm TEVA 3.9 20 35.10 TXT 0.2 14 49.86 2.68 50.93 30.68 Textron 4.37 160.68 119.75 ThermoFisherSci TMO 0.4 29 147.27 2.38 45.68 33.96 ThomsonReuters TRI 3.0 20 44.82 2.12 108.45 47.56 ThorIndustries THO 1.3 19 102.17 MMM 2.5 22 178.23 -0.19 182.27 134.64 3M TIF 2.3 22 77.16 -0.35 85.44 56.98 Tiffany -1.84 97.21 55.53 TimeWarner TWX 1.7 17 94.75 TOL ... 14 31.24 0.77 33.48 23.75 Toll Bros 1.13 75.07 48.47 Torchmark TMK 0.8 17 74.59 TTC 1.2 28 57.13 2.11 58.26 32.35 Toro 3.10 51.45 33.48 TorontoDomBk TD 3.2 11 50.87 TOT 5.1 30 51.15 0.35 51.92 39.05 Total 8.04 56.54 37.47 TotalSystem TSS 0.8 30 52.97 2.50 123.18 97.80 ToyotaMotor TM ... 10 120.13 1.82 48.52 28.40 TransCanada TRP 3.7 dd 45.97 2.87 294.38 180.76 TransDigm TDG ... 26 256.11 6.99 16.66 7.67 Transocean RIG ... 5 15.77 3.46 35.79 20.43 TransUnion TRU ... 67 32.00 TRV 2.3 12 118.27 -3.39 123.09 101.23 Travelers -1.01 10.87 6.35 TurkcellIletism TKC 25.1 11 6.83 4.33 3.67 1.55 TurquoiseHill TRQ ... 18 3.37 TWTR ... dd 17.17 5.34 25.25 13.72 Twitter TYL ... 85 147.79 3.52 175.77 118.16 TylerTech 2.66 77.05 48.52 TysonFoods TSN 1.4 15 63.32 7.08 18.04 11.93 UBS Group UBS 1.5 18 16.78 UDR 3.2320 36.43 -0.14 38.61 32.79 UDR UGI 2.0 23 46.89 1.76 48.13 31.59 UGI USFD ... 50 27.07 -1.49 27.86 22.19 US Foods 1.69 24.50 12.93 UltraparPart UGP 2.4 26 21.09 4.89 47.95 29.00 UnderArmour A UAA ... 44 30.47 7.43 46.20 23.51 UnderArmour C UA ... 39 27.04 UN 3.5 21 41.07 0.02 48.00 38.41 Unilever UL 3.5 21 40.94 0.59 48.97 38.58 Unilever -0.47 106.62 67.06 UnionPacific UNP 2.3 21 103.19 -2.07 76.80 37.41 UnitedContinental UAL ... 9 71.37 UPS 2.7 21 115.40 0.66 120.44 87.30 UPS B 3.60 111.81 41.90 UnitedRentals URI ... 17 109.38 -0.14 52.68 37.07 US Bancorp USB 2.2 16 51.30 X 0.6 dd 35.40 7.24 39.14 6.15 US Steel s 2.67 112.83 83.39 UnitedTech UTX 2.3 74 112.55 1.48 164.00 107.51 UnitedHealth UNH 1.5 24 162.41 2.00 139.77 99.72 UniversalHealthB UHS 0.4 15 108.51 s 2.16 45.15 23.99 UnumGroup UNM 1.8 12 44.88 VER 6.2 dd 8.82 4.26 11.09 6.68 VEREIT VFC 3.2 21 53.18 -0.32 67.10 51.76 VF V 0.8 30 82.21 5.37 83.96 66.12 Visa 1.96 169.98 114.86 VailResorts MTN 2.0 42 164.47 VALE ... dd 7.99 4.86 9.34 2.13 Vale 5.30 101.40 13.00 ValeantPharm VRX ... dd 15.29 -2.43 72.49 46.88 ValeroEnergy VLO 3.6 14 66.66 VAL 1.4 24 103.90 0.28 108.97 72.98 Valspar VNTV ... 46 61.82 3.69 62.63 42.01 Vantiv -0.63 106.69 73.18 VarianMed VAR ... 21 89.21 VEDL 1.5 dd 13.38 7.73 14.40 3.52 Vedanta 3.81 47.95 19.97 VeevaSystems VEEV ... 93 42.25 VTR 4.9 41 63.05 0.85 76.80 46.87 Ventas VZ 4.3 15 53.26 -0.22 56.95 43.79 Verizon 2.42 44.95 20.31 VermilionEnergy VET 4.5 dd 43.19 VIPS ... 26 11.69 6.18 17.41 10.21 Vipshop VMW ... 31 81.50 3.52 83.00 43.25 VMware 2.82 108.69 78.91 VornadoRealty VNO 2.3 59 107.31 0.59 41.17 22.75 VoyaFinancial VOYA 0.1 dd 39.45 -1.08 138.18 78.83 VulcanMaterials VMC 0.6 45 123.80 WBC ... 31 105.89 -0.24 115.15 81.66 WABCO 0.22 66.10 51.02 EWEC Energy WEC 3.5 20 58.78 3.66 72.89 51.12 W.P.Carey WPC 6.5 33 61.25 ... 16.17 2.53 WPX Energy WPX ... dd 14.57 WAB 0.5 21 84.56 1.85 89.18 60.28 Wabtec WMT 2.9 15 68.26 -1.24 75.19 60.20 Wal-Mart s 3.92 81.98 48.58 WasteConnections WCN 0.9 40 81.67 -1.02 71.78 50.36 WasteMgt WM 2.3 28 70.19 WAT ... 23 139.98 4.16 162.53 112.00 Waters WSO 2.8 30 147.83 -0.20 159.55 106.58 Watsco 18.44 8.49 3.73 WeatherfordIntl WFT ... dd 5.91 s 2.63 142.13 69.16 WellCareHealth WCG ... 30 140.68 -0.13 58.02 43.55 WellsFargo WFC 2.8 14 55.04 2.27 80.19 52.80 Welltower HCN 5.0 40 68.45 s 2.12 87.03 53.88 WestPharmSvcs WST 0.6 47 86.63 -2.96 57.50 40.01 WestarEnergy WR 2.8 23 54.68 2.81 46.38 19.21 WesternGasEquity WGP 4.1 43 43.54 2.38 61.68 25.40 WesternGasPtrs WES 5.6 dd 60.16 3.91 22.67 16.02 WesternUnion WU 2.8 14 22.57 5.91 61.53 39.48 WestlakeChem WLK 1.3 19 59.30 4.30 25.32 19.83 WestpacBanking WBK 5.5 15 24.49 3.39 53.56 26.82 WestRock WRK 3.0 dd 52.49 2.53 33.28 22.06 Weyerhaeuser WY 4.0 45 30.85 WHR 2.1 16 186.10 2.38 194.10 123.60 Whirlpool -0.38 56.82 31.40 WhiteWaveFoods WWAV ... 50 55.39 s 4.11 32.69 10.22 Williams WMB 2.5 dd 32.42 3.34 40.36 12.69 WilliamsPartners WPZ 8.7 dd 39.30 WIT 0.3 19 9.78 1.03 13.08 9.09 Wipro -1.85 36.00 19.99 WooriBank WF 4.1 7 31.41 WDAY ... dd 73.85 11.74 93.35 47.32 Workday 0.67 81.08 60.59 Wyndham WYN 2.6 15 76.88 0.54 45.42 35.87 XcelEnergy XEL 3.3 19 40.92 21.91 7.50 5.59 Xerox XRX 2.9 11 7.01 XYL 1.2 27 49.58 0.12 54.99 31.67 Xylem YPF 1.8 dd 17.19 4.18 22.22 12.67 YPF 3.44 8.09 3.66 YanzhouCoal YZC 0.2 47 6.91 1.72 66.15 46.44 YumBrands YUM 1.9 16 64.42 0.15 30.37 23.79 YumChina YUMC ... ... 26.16 10.52 18.45 12.01 ZTO Express ZTO ... 33 13.34 -6.42 35.65 19.59 ZayoGroup ZAYO ... dd 30.75 1.71 133.21 88.27 ZimmerBiomet ZBH 0.9 82 104.96 s 1.06 54.72 38.26 Zoetis ZTS 0.8 39 54.10

1.01 -1.18 0.07 -0.50 1.18 0.26 0.09 -0.20 -0.02 1.16 -0.32 0.16 2.97 -0.03 2.81 -0.44 -0.78 0.25 -0.62 2.43 0.02 0.02 -0.28 -0.14 1.49 -0.39 0.27 0.24 -0.13 0.10 -0.54 0.22 0.08 -1.05 -0.26 -0.08 -0.08 -0.14 0.08 0.76 -0.13 0.19 -0.15 -1.03 -0.01 1.13 0.03 0.03 0.56 0.63 0.22 0.61 0.39 -0.05 0.46 -0.08 -0.50 -0.23 -0.17 -0.17 0.42 -1.12 -0.26 -0.53 -0.09 -0.01 3.26 -0.19 -0.01 0.03 ... 0.01 -1.52 0.74 -2.86 -0.37 1.89 0.09 0.48 0.52 0.35 -0.34 -0.62 0.40 0.33 0.06 -0.60 0.49 -0.31 -0.18 4.38 0.15 0.34 -0.06 0.01 -0.10 0.08 -0.23 -0.48 -0.02 0.30 0.41 -0.29 -0.28 0.18 0.83 -0.22 -0.28 1.06 0.44 0.23 -0.77 0.33 -0.68 1.20 0.23 -0.26 0.42 -0.11 -0.06 1.12 0.83 -0.31 -0.42 -1.02 -0.21 0.17 0.39 0.02 0.74 -0.12 -0.80 -0.25 0.29 2.04 -0.19 0.13 -3.64 -1.05 -0.24 -0.42 -0.38 0.68 -0.95 0.59 -0.40 4.25 -0.96 0.13 1.95 -0.14 0.28 1.60 -0.33 -0.32 -0.82 0.26 -0.15 0.02 0.26 -0.10 0.12 -0.05 0.68 0.33 -0.06 -0.02 1.57 0.41 0.12 -0.11 -0.35 0.19 -0.17 0.77 -0.83 0.37 0.37 0.01 0.17

NASDAQ 4.08 20.43 15.69 AGNC Invt AGNC 11.4 41 18.87 ANSS ... 32 93.95 1.58 98.99 80.51 Ansys 1.79 31.52 20.05 ARRIS Intl ARRS ... dd 30.67 ASML 1.1 ... 111.12 -0.96 112.66 77.17 ASML 4.98 45.55 26.49 ActivisionBliz ATVI 0.7 86 37.91 5.20 111.09 71.27 AdobeSystems ADBE ... 47 108.30 4.66 71.04 39.43 AkamaiTech AKAM ... 40 69.79 17.38 175.01 109.12 AlexionPharm ALXN ... 88 143.61 ALGN ... 40 94.08 -2.13 102.10 57.31 AlignTech ALKS ... dd 59.64 7.30 73.66 27.14 Alkermes 4.13 839.00 672.66 Alphabet A GOOGL ... 30 825.21 4.45 816.68 663.06 Alphabet C GOOG ... 29 806.15 6.15 847.21 474.00 Amazon.com AMZN ...182 795.99 DOX 1.3 22 58.96 1.22 61.33 50.05 Amdocs UHAL ... 16 370.12 0.14 399.16 305.66 Amerco -1.03 50.64 24.85 AmericanAirlines AAL 0.9 5 46.21 7.23 176.85 133.64 Amgen AMGN 2.9 16 156.78 -1.40 74.87 47.24 AnalogDevices ADI 2.3 26 71.60 AAPL 1.9 14 117.91 1.80 118.69 89.47 Apple -0.71 33.68 15.44 AppliedMaterials AMAT 1.2 21 32.04 0.21 88.41 59.83 ArchCapital ACGL ... 16 86.47 TEAM ... dd 24.72 2.66 35.16 16.92 Atlassian ADSK ... dd 79.30 7.15 83.08 41.60 Autodesk ADP 2.2 31 103.11 0.32 103.98 76.65 ADP s 1.78 61.26 36.38 B/EAerospace BEAV 1.4 19 61.26 BOKF 2.1 23 83.00 -0.05 85.00 44.13 BOK Fin

-0.07 -0.76 -0.28 -0.12 -0.03 2.39 0.24 4.43 -0.74 0.40 12.19 12.13 15.54 0.48 -0.97 0.32 3.80 0.28 1.30 -0.06 0.85 -0.25 2.37 0.07 0.15 0.65

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

BIDU ... 12 176.38 -1.09 7.28 201.00 139.61 Baidu -0.44 54.92 33.51 BankofOzarks OZRK 1.3 22 52.36 -0.02 BBBY 1.2 9 40.61 -0.55 -0.07 52.71 38.60 BedBath BIIB ... 17 295.00 1.43 4.03 333.65 223.02 Biogen 4.84 102.49 62.12 BioMarinPharm BMRN ... dd 86.85 0.56 3.92 8.46 6.23 BlackBerry BBRY ... dd 7.16 0.04 -0.10 183.99 114.25 Broadcom AVGO 2.3 dd 176.59 2.31 CA 3.1 17 33.19 0.11 4.47 34.99 25.18 CA 2.18 77.29 58.43 CBOE Holdings CBOE 1.3 32 75.50 0.41 0.77 61.25 39.67 CDK Global CDK 0.9 36 60.15 0.45 CDW 1.2 21 51.69 -0.18 -0.77 55.47 30.40 CDW 1.21 77.89 61.11 CH Robinson CHRW 2.4 21 74.15 0.41 1.60 124.01 81.87 CME Group CME 2.0 27 117.19 1.27 s 4.43 37.73 21.32 CSX CSX 1.9 21 37.52 0.53 1.70 28.00 18.32 CadenceDesign CDNS ... 31 25.65 -0.01 CELG ... 45 119.64 0.88 3.36 127.00 93.05 Celgene CERN ... 25 47.55 -0.10 0.38 67.50 47.01 Cerner s 3.56 298.79 172.67 CharterComms CHTR ... 23 298.16 1.99 3.29 89.98 71.64 CheckPointSftw CHKP ... 22 87.24 0.58 0.04 79.60 53.64 CincinnatiFin CINF 2.5 19 75.78 0.02 CTAS 1.1 24 116.70 0.42 0.99 122.21 80.00 Cintas 0.03 31.95 22.46 CiscoSystems CSCO 3.4 14 30.23 0.06 1.90 92.40 60.91 CitrixSystems CTXS ... 30 91.01 0.77 CGNX 0.5 66 63.26 -0.07 -0.57 65.95 28.01 Cognex 3.28 63.43 45.44 CognizantTech CTSH ... 23 57.87 0.78 1.77 71.32 52.34 Comcast A CMCSA 1.6 21 70.27 0.12 0.67 59.22 35.66 CommerceBcshrs CBSH 1.5 23 58.20 0.35 -0.59 38.00 19.37 CommScope COMM ... 79 36.98 -0.40 CPRT ... 17 56.68 0.28 2.29 56.98 32.26 Copart 1.74 224.79 146.53 CoStarGroup CSGP ... 79 191.77 0.30 COST 1.1 30 162.83 -0.08 1.70 169.59 138.57 Costco CTRP ... dd 42.50 -0.30 6.25 49.62 35.50 Ctrip.com s 5.92 61.49 38.85 DISH Network DISH ... 29 61.36 0.60 0.97 65.83 53.43 DentsplySirona XRAY 0.5 30 58.29 -0.04 DXCM ... dd 63.23 0.57 5.91 96.38 47.92 DexCom 2.57 113.23 55.48 DiamondbackEner FANG ... dd 103.66 -0.01 -4.97 30.80 23.85 DiscoveryComm B DISCB ... 16 27.70 -1.45 0.26 29.75 23.66 DiscoveryComm A DISCA ... 15 27.48 0.28 0.30 28.91 22.43 DiscoveryComm C DISCK ... 15 26.86 0.26 -0.12 99.93 72.52 DollarTree DLTR ... 23 77.09 -0.97 DNKN 2.3 37 51.47 -0.32 -1.85 56.13 36.44 Dunkin' s 5.51 37.00 19.61 E*TRADE ETFC ... 20 36.56 -0.15 -0.20 52.02 27.25 EastWestBancorp EWBC 1.6 18 50.73 0.12 EBAY ... 20 31.05 1.04 4.58 33.19 21.52 eBay 0.32 86.07 53.01 ElectronicArts EA ... 20 79.01 0.05 EQIX 1.9364 370.49 0.74 3.66 391.07 255.45 Equinix ERIC 7.8 16 5.87 ... 0.69 10.20 4.83 Ericsson -0.19 116.21 88.69 ErieIndemnity A ERIE 2.8 30 112.24 0.34 EXPE 0.9104 116.45 1.76 2.80 133.55 88.40 Expedia 0.32 56.37 40.41 ExpeditorsIntl EXPD 1.5 23 53.13 0.10 2.85 86.74 64.46 ExpressScripts ESRX ... 17 70.75 -0.12 -0.19 148.34 86.03 F5Networks FFIV ... 27 144.45 0.03 FB ... 48 123.41 2.74 7.27 133.50 89.37 Facebook FAST 2.6 27 46.51 -0.11 -1.00 49.99 35.10 Fastenal -0.37 27.88 13.84 FifthThirdBncp FITB 2.1 12 26.87 0.23 FISV ... 28 109.83 1.22 3.34 111.51 86.02 Fiserv FLEX ... 26 14.43 0.07 0.42 15.09 8.85 Flex FTNT ... ... 31.01 0.18 2.95 37.48 23.16 Fortinet 1.99 35.98 24.21 Gaming&Leisure GLPI 7.7 23 31.23 -0.39 GRMN 4.2 18 49.04 -0.45 1.13 56.19 30.93 Garmin GNTX 1.8 17 20.52 0.11 4.22 20.77 12.93 Gentex 5.42 103.10 70.83 GileadSciences GILD 2.5 7 75.49 -0.52 GT 1.3 27 31.84 0.35 3.14 33.36 24.31 Goodyear GRFS 2.3 20 17.01 0.04 5.85 17.40 14.07 Grifols -1.11 44.20 21.26 HDSupply HDS ... 8 42.04 -0.73 HAS 2.5 20 82.87 -0.84 6.53 88.53 67.20 Hasbro 2.95 183.00 142.64 HenrySchein HSIC ... 26 156.18 0.47 HOLX ... 34 39.88 0.09 -0.60 41.01 31.84 Hologic -2.58 32.46 20.69 HospitalityProp HPT 6.6 40 30.92 -0.44 JBHT 0.9 26 97.69 0.50 0.64 102.38 63.58 JBHunt 0.53 13.64 7.83 HuntingtonBcshs HBAN 2.4 19 13.29 0.03 s 7.50 70.00 38.82 IAC/InterActive IAC ... dd 69.65 0.30 IDXX ... 50 118.36 2.40 0.93 121.77 63.48 IdexxLab 3.53 37.85 26.01 IHSMarkit INFO ... 56 36.66 0.37 3.84 67.63 42.50 IcahnEnterprises IEP 9.6 dd 62.22 0.07 ILMN ... 47 141.49 6.93 10.50 186.88 119.37 Illumina INCY ...139 108.31 3.50 8.01 109.95 55.00 Incyte INTC 2.9 17 36.48 0.13 0.58 38.36 27.68 Intel INTU 1.2 38 116.86 1.51 1.96 118.66 88.17 Intuit 0.31 727.25 502.01 IntuitiveSurgical ISRG ... 34 636.11 3.20 ... 59.04 19.59 IonisPharma IONS ... dd 47.83 0.74 JD ... dd 26.27 -0.03 3.26 30.01 19.51 JD.com s 2.33 91.34 73.19 JackHenry JKHY 1.2 28 90.85 0.29 5.62 160.00 95.80 JazzPharma JAZZ ... 20 115.16 -0.59 JBLU ... 10 21.83 -0.44 -2.63 23.67 14.76 JetBlue 0.57 83.23 62.33 KLA Tencor KLAC 2.7 16 79.13 0.71 -1.16 90.54 68.18 KraftHeinz KHC 2.8 38 86.31 -0.22 LKQ ... 21 31.67 0.41 3.33 36.35 23.95 LKQ 1.77 110.35 63.10 LamResearch LRCX 1.7 21 107.60 0.52 s 3.09 70.15 49.73 LamarAdvertising LAMR 4.4 23 69.32 -0.52 s 2.39 74.37 42.03 LibertyBroadbandA LBRDA ... 13 74.19 0.33 s 1.84 75.87 41.30 LibertyBroadbandC LBRDK ... 13 75.43 0.22 8.99 34.76 26.16 LibertyGlobal A LBTYA ... dd 33.34 1.02 6.36 44.39 27.31 LibertyGlobal B LBTYB ... dd 33.45 1.13 8.08 33.61 25.86 LibertyGlobal C LBTYK ... dd 32.10 1.00 6.33 42.63 19.10 LibertyLiLAC A LILA ... dd 23.35 -0.27 6.28 44.95 19.33 LibertyLiLAC C LILAK ... dd 22.50 -0.23 -0.69 30.62 17.77 LibertyQVC B QVCB ... 10 20.11 0.08 -1.65 27.25 17.88 LibertyQVC A QVCA ... 10 19.65 -0.08 4.53 41.94 35.55 LibertyVenturesB LVNTB ... 12 38.61 1.67 4.48 42.94 32.35 LibertyVenturesA LVNTA ... 12 38.52 0.34 -0.40 64.42 37.33 LinearTech LLTC 2.1 31 62.10 0.12 LULU ... 33 68.27 -0.46 5.05 81.81 52.71 lululemon 6.96 178.21 98.00 MarketAxess MKTX 0.7 50 157.15 4.44 MAR 1.5 29 82.30 0.52 -0.46 86.15 56.43 Marriott 2.24 14.99 7.40 MarvellTech MRVL 1.7 68 14.18 0.14 MAT 5.0 29 30.47 -0.47 10.60 34.76 23.85 Mattel 3.03 42.37 30.28 MaximIntProducts MXIM 3.3 26 39.74 1.30 -0.31 20.00 11.90 MelcoCrownEnt MPEL 1.0 69 15.85 -0.26 10.26 193.58 84.19 MercadoLibre MELI 0.3 61 172.16 0.88 -0.73 66.81 39.01 MicrochipTech MCHP 2.3318 63.68 1.09 0.55 23.64 9.31 MicronTech MU ... dd 22.04 -0.07 2.48 57.32 28.91 Microsemi MSCC ... dd 55.31 0.24 MSFT 2.5 30 62.84 0.54 1.13 64.10 48.03 Microsoft MIDD ... 29 130.03 0.75 0.95 143.60 79.11 Middleby MDLZ 1.7 88 45.06 0.06 1.65 46.40 35.88 Mondelez 2.89 55.50 37.69 MonsterBeverage MNST ... 41 45.62 -0.57 MYL ... 75 38.50 -0.66 0.92 54.23 33.60 Mylan NXPI ... 37 98.21 -0.19 0.20 107.54 61.61 NXP Semi NDAQ 1.9 24 68.46 0.82 2.00 71.92 55.27 Nasdaq NTAP 2.2 32 35.23 -0.13 -0.11 39.00 20.66 NetApp NTES 1.4 20 226.96 -2.25 5.40 272.58 129.60 Netease s 5.87 133.88 79.95 Netflix NFLX ...354 131.07 -0.74 4.10 14.68 10.21 NewsCorp A NWSA 1.7 dd 11.93 0.04 3.81 15.22 10.73 NewsCorp B NWS 1.6 dd 12.25 ... NDSN 1.0 24 111.92 0.51 -0.12 116.01 51.89 Nordson 0.89 90.96 54.38 NorthernTrust NTRS 1.7 22 89.84 -0.26 4.04 56.80 34.16 NorwegianCruise NCLH ... 17 44.25 -0.30 NVDA 0.5 54 103.10 1.36 -3.41 119.93 24.75 NVIDIA 1.21 292.84 225.12 OReillyAuto ORLY ... 27 281.78 -1.03 0.36 91.69 48.92 OldDomFreight ODFL ... 24 86.10 -0.01 ON ... 43 13.01 0.16 1.96 13.33 6.97 ON Semi OTEX 1.5 7 62.59 -0.25 1.26 66.84 41.93 OpenText PTC ... dd 48.25 1.14 4.28 49.93 27.06 PTC PCAR 1.5 40 65.88 0.74 3.10 68.50 43.46 Paccar 2.52 56.34 29.05 PacWestBancorp PACW 3.6 20 55.81 0.75 PAYX 3.0 28 61.27 0.42 0.64 62.18 45.76 Paychex PYPL ... 36 41.45 0.39 5.02 44.52 30.52 PayPal 0.31 20.13 13.62 People'sUtdFin PBCT 3.5 21 19.42 0.14 PCLN ... 39 1520.57 16.87 3.72 1600.93 954.02 Priceline QGEN ... 58 28.67 0.02 2.32 28.97 19.94 Qiagen QRVO ... dd 53.86 0.50 2.14 64.80 33.30 Qorvo 0.51 71.62 42.24 Qualcomm QCOM 3.2 17 65.53 -0.02 5.97 126.55 59.96 RandgoldRscs GOLD 0.8 38 80.90 -1.81 -2.29 511.31 325.35 RegenPharm REGN ... 53 358.68 -22.24 -0.44 69.81 50.42 RossStores ROST 0.8 24 65.31 -0.38 RYAAY ... 14 82.75 -1.11 -0.61 89.67 66.09 Ryanair 0.25 118.57 82.80 SBA Comm SBAC ...128 103.52 -0.76 2.78 52.54 32.01 SEI Investments SEIC 1.1 26 50.73 0.42 4.62 34.19 23.61 SS&C Tech SSNC 0.8 70 29.92 -0.13 SIVB ... 25 177.52 2.35 3.41 179.97 77.87 SVB Fin SABR 2.1 20 24.86 0.15 -0.36 29.76 22.03 Sabre s 4.22 75.37 52.00 ScrippsNetworks SNI 1.3 12 74.38 -0.30 STX 6.5 31 38.49 -0.56 0.84 41.45 18.42 Seagate 9.06 75.36 26.02 SeattleGenetics SGEN ... dd 57.55 2.68 SHPG 0.2118 180.11 -1.89 5.71 209.22 147.60 Shire 0.20 157.46 113.53 SignatureBank SBNY ... 21 150.50 0.55 SIRI ... 35 4.56 -0.08 2.47 4.65 3.29 SiriusXM SWKS 1.5 14 74.96 0.39 0.40 82.28 54.50 Skyworks SPLK ... dd 56.17 1.61 9.81 65.75 29.85 Splunk SPLS 5.2 dd 9.15 0.12 1.10 11.37 7.24 Staples 2.90 61.78 50.84 Starbucks SBUX 1.8 30 57.13 0.67 3.34 40.17 15.32 SteelDynamics STLD 1.5 84 36.77 -1.22 SRCL ... 29 79.38 1.73 3.04 128.94 71.52 Stericycle 4.69 25.72 16.14 Symantec SYMC 1.2 8 25.01 0.36 SNPS ... 35 60.00 0.21 1.94 62.00 39.26 Synopsys s 7.45 47.01 24.88 TD Ameritrade AMTD 1.5 30 46.85 0.53 TSRO ... dd 143.58 4.99 6.77 148.74 29.51 TESARO TFSL 2.6 68 19.17 0.01 0.68 19.89 15.58 TFS Fin -1.29 59.46 33.23 T-MobileUS TMUS ... 36 56.77 -0.84 0.48 79.00 62.97 TRowePrice TROW 2.9 17 75.62 -0.75 7.17 269.34 141.05 TeslaMotors TSLA ... dd 229.01 2.26 1.62 75.25 46.73 TexasInstruments TXN 2.7 24 74.15 1.23 -0.86 97.25 61.50 TractorSupply TSCO 1.3 24 75.16 -0.47 TRMB ... 66 30.44 -0.05 0.96 31.11 18.36 Trimble 9.49 78.80 45.63 TripAdvisor TRIP ... 63 50.77 1.57 5.28 31.25 22.66 21stCenturyFoxA FOXA 1.2 19 29.52 0.52 5.87 31.16 22.65 21stCenturyFoxB FOX 1.2 19 28.85 0.51 ULTA ... 44 263.30 -0.84 3.28 278.63 146.77 UltaSalon 3.69 224.07 148.26 UltimateSoftware ULTI ...315 189.08 1.65 2.46 149.30 97.52 UnitedTherap UTHR ... 10 146.96 1.07 WOOF ... 25 70.77 0.01 3.09 73.69 44.00 VCA VRSN ... 24 80.85 1.05 6.28 91.99 70.26 VeriSign 1.49 86.00 64.79 VeriskAnalytics VRSK ... 24 82.38 0.72 7.76 117.11 71.46 VertxPharm VRTX ... dd 79.39 0.33 VIA 1.9 11 41.25 0.35 7.14 50.81 33.88 Viacom A VIAB 2.1 10 37.79 0.31 7.66 47.47 30.11 Viacom B 6.49 4.51 2.71 VimpelCom VIP 0.9 9 4.10 0.04 VOD 7.8 dd 26.23 -0.07 7.37 34.70 24.17 Vodafone WPPGY 2.1 24 112.83 -0.52 1.96 121.55 95.67 WPP 0.41 102.82 71.50 WalgreensBoots WBA 1.8 22 83.10 0.07 WB ...120 44.75 -0.19 10.22 55.93 12.09 Weibo 3.58 72.13 34.99 WesternDigital WDC 2.8 dd 70.38 -0.17 -0.16 35.58 27.67 WholeFoods WFM 1.8 20 30.71 0.25 3.68 133.40 104.11 WillisTwrsWatson WLTW 1.5 75 126.78 0.82 6.84 109.50 49.95 WynnResorts WYNN 2.2 44 92.43 0.99 XLNX 2.2 26 59.05 1.12 -2.19 62.24 40.44 Xilinx YHOO ... dd 41.23 -0.11 6.62 44.92 26.15 Yahoo YNDX ... 56 21.84 -0.04 8.49 23.87 11.00 Yandex ZG ... dd 37.14 0.33 1.89 39.99 16.45 Zillow A Z ... dd 36.70 0.28 0.63 39.88 15.36 Zillow C 0.77 44.33 19.65 ZionsBancorp ZION 0.7 24 43.37 0.28

NYSE MKT -0.11 131.34 8.38 46.00 1.80 31.49 2.28 23.08 0.58 36.85

99.81 BritishAmTob BTI 2.4 17 112.55 22.80 CheniereEnergy LNG ... dd 44.90 19.22 CheniereEnerPtrs CQP 5.8 dd 29.34 12.04 CheniereEnHldgs CQH 0.3286 22.88 25.55 ImperialOil IMO 1.3 36 34.96

-0.31 0.45 0.03 -0.01 0.08

B6 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

* ***

MARKETS DIGEST EQUITIES S&P 500 Index

Dow Jones Industrial Average Last Year ago

19963.80 s 64.51, or 0.32% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio * 21.77 15.50 P/E estimate * 18.68 15.22 Dividend yield 2.41 2.72 All-time high 19974.62, 12/20/16

Nasdaq Composite Index Last

2276.98 s 7.98, or 0.35% High, low, open and close for each trading day of the past three months.

Year ago

Trailing P/E ratio * 25.02 21.63 P/E estimate * 17.65 15.75 Dividend yield 2.06 2.26 All-time high: 2276.98, 01/06/17

Last Year ago

5521.06 s 33.12, or 0.60% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio * 24.57 22.01 P/E estimate * 18.54 17.65 Dividend yield 1.22 1.23 All-time high: 5521.06, 01/06/17

Current divisor 0.14602128057775 20000

2280

19600

2245

5480

Session high t

DOWN Session open

UP Close Open

65-day moving average

5400

2210

5320

18800

2175

5240

18400

2140

5160

18000

2105

5080

19200 65-day moving average

Session low

Bars measure the point change from session's open Nov.

Dec.

5000

2070

17600 Oct.

Oct.

Jan.

Nov.

Dec.

Oct.

Jan.

Nov.

Dec.

Jan.

* P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes High

Latest Close

Low

Net chg

% chg

Transportation Avg

19999.63 19834.08 19963.80

0.32

9104.08

52.32

663.12

656.73

661.56

1.71

0.26

23727.67 23554.84 23669.99 609.03 605.43 606.07

66.47 -1.51

0.28

Utility Average Total Stock Market Barron's 400

64.51

9014.18

Nasdaq Stock Market Nasdaq Composite 5536.52 Nasdaq 100 5020.70

5482.81 4957.82

5521.06 5007.08

0.58

-0.25

33.12 42.12

Standard & Poor's 500 Index

2282.10

2264.06

2276.98

7.98

MidCap 400 SmallCap 600

1689.56 847.01

1678.61 839.81

1682.07 840.17

-1.31 -4.87

Other Indexes Russell 2000

1375.06

1366.82

1367.28

-4.65

0.60 0.85

22.1

1.0

6.7

6625.53

31.1

0.7

8.0

Most-active issues in late trading

723.51

578.66

14.3

0.3

11.1

23669.99 18663.11 613.94 446.15

19.6 26.6

1.7 0.7

7.3 6.3

52-Week Low

% chg

YTD

% chg 3-yr. ann.

514.90

512.38

512.94

-1.43

NYSE Arca Biotech

3299.83

3262.21

3285.16

50.75

NYSE Arca Pharma

Value Line

493.31

490.32

491.81

-3.34

KBW Bank

93.14

92.27

0.38

PHLX§ Gold/Silver

92.77

87.87

83.90

PHLX§ Oil Service

85.31

193.12

189.48

PHLX§ Semiconductor CBOE Volatility

192.66

911.32 11.74

898.55 10.98

908.65 11.32

4266.84 3947.80

2.6 2.9

18.9 17.2

1.7

7.6

-0.58

1696.12 857.50

1238.82 588.26

28.6 34.8

1.3 0.3

8.3 8.7

-0.34

1388.07

953.72

30.7

0.7

6.0

-0.08

Company

10.3 12.4

18.5

Volume (000)

Symbol

VanEck Vectors Gold Miner GDX

21,126.3

22.40

Petroleo Brasileiro ADR PBR

10,361.1

VanEck Vectors Jr Gold GDXJ

7,277.5

0.04

22.44

22.37

10.87

…

unch.

10.87

10.85

35.50

0.10

0.28

35.52

35.27

-0.03

SPY

7,274.6 227.18

-0.01 227.59 226.14

New York REIT

NYRT

7,076.3

9.77

…

unch.

9.84

9.77

Nokia ADR

NOK

3,309.6

4.93

0.01

0.20

4.95

4.90

NVIDIA

NVDA

2,774.4 103.25

0.15

0.15 103.29 103.01

Graphic Packaging

GPK

2,110.5

12.89

0.06

0.48

12.89

12.83

Percentage gainers… Tahoe Resources

TAHO

13.0

10.00

0.36

3.73

10.02

10.00

BioAmber

BIOA

35.7

6.25

0.15

2.46

6.25

6.10

Zafgen

ZFGN

22.9

4.28

0.10

2.39

4.31

4.18

Texas Roadhouse

TXRH

50.2

46.75

1.05

2.30

46.75

45.70

52.9

2.78

0.06

2.21

2.84

2.72

11247.69

9029.88

17.9

1.6

3.0

518.98

383.82

24.0

1.3

2.0

1.57 3477.87

2642.53

-4.4

6.8

12.3

554.66

463.78

-4.2

2.1

1.9

93.71

56.51

39.7

1.1

10.0

Stage Stores

SSI

29.1

3.35

-0.65

-16.25

4.06

3.01

112.86

38.84

81.1

8.2

-0.6

Fifth Third Bancorp

FITB

41.0

24.86

-2.01

-7.48

27.18

24.86

35.5

-0.68 0.41

-2.62 -2.98 1.88 6.97 -0.35 -3.00

Net chg

3.68 8.26 –0.06 –0.83

World Americas Brazil Canada Mexico Chile

DJ Americas 550.19 Sao Paulo Bovespa 61665.37 S&P/TSX Comp 15496.05 IPC All-Share 46071.57 Santiago IPSA 3236.54

Europe Euro zone Belgium France Germany Israel Italy Netherlands Spain Sweden Switzerland U.K.

Stoxx Europe 600 Euro Stoxx Bel-20 CAC 40 DAX Tel Aviv FTSE MIB AEX IBEX 35 SX All Share Swiss Market FTSE 100

365.45 354.10 3665.50 4909.84 11599.01 1467.83 19687.71 487.00 9515.90 536.20 8417.46 7210.05

–0.19 0.35 6.81 9.20 14.07 … 44.90 0.07 27.70 … 24.97 14.74

Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan

DJ Asia-Pacific TSM 1456.53 S&P/ASX 200 5755.60 Shanghai Composite 3154.32 Hang Seng 22503.01 S&P BSE Sensex 26759.23 Nikkei Stock Avg 19454.33 Straits Times 2962.63 Kospi 2049.12 Weighted 9372.22

–6.77 2.30 –11.09 46.32 –119.01 –66.36 8.49 7.17 14.08

0.99

192.66

128.61

0.77

939.21 28.14

559.18 51.3 11.27 -58.1

Hovnanian Enterprises A HOV

...And losers

4.8 -11.2 0.2 -19.4

9.9

45.90

-1.66

-3.49

47.73

45.90

Dynegy

DYN

24.0

8.99

-0.25

-2.68

9.24

8.99

Extra Space Storage

EXR

42.1

77.61

-1.59

-2.01

79.20

77.61

Worthington Industries WOR

20.2 -5.8

Latest % chg

YTD % chg

0.14 0.36 –0.02 –0.38 0.24

2.0 1.7 1.8 2.0

0.18

1.8 2.4 1.4 0.9 0.4

0.10 0.19 0.19 0.12 Closed 0.23 0.01 0.29 Closed 0.30 0.20

1.1 1.1 1.6 1.0 1.0 –0.2 2.4 0.8 1.8 0.3 2.4 0.9

1.30 –405.61 –0.65 –90.53 –0.58 –648.42 –1.39 5.82 –0.05

–0.46 0.04 –0.35 0.21 –0.44 –0.34 0.29 0.35 0.15

2.4 1.6 1.6 2.3 0.5 1.8 2.8 1.1 1.3

Company

Symbol

EnteroMedics VivoPower International Pernix Therapeutics Hldgs Zafgen JetPay Corp.

ETRM

Pacira Pharmaceuticals Quotient Ltd. Greenbrier Cos Cempra Stemline Therapeutics

PCRX

Fulgent Genetics Direxion Jr Gold Bear 3X Calithera Biosciences CAI International Exterran

FLGT

9.19 5.69 2.93 4.18 2.55

VVPR PTX ZFGN JTPY

QTNT GBX CEMP STML

JDST CALA CAI EXTN

52-Week Low % chg

High

5.22 131.49 1.29 29.32 0.65 28.65 0.83 24.78 0.50 24.39

132.30 7.08 28.05 12.18 3.25

Symbol

VanEck Vectors Gold Miner Direxion Jr Gold Bull 3X DXN DLY GLDMNR 3x BL Bank of America SPDR S&P 500

GDX

JC Penney Frontier Communications VanEck Vectors Jr Gold New York REIT Ford Motor

JCP

-91.4 ... -88.9 -28.7 -4.1

Ruby Tuesday Avinger Stein Mart Tahoe Resources Direxion Jr Gold Bull 3X

Live Ventures Direxion Silver Min Bl 2X Apollo Endosurgery GenVec Orexigen Therapeutics

LIVE

13.04 22.86 4.45 11.47 27.55

1.54 2.64 0.50 1.17 2.74

13.16 7.59 13.39 13.06 2085.00 18.21 6.87 2.20 12.66 11.60 4.83 11.36 27.73 10.83 11.04

... -98.2 -25.6 42.7 68.3

ICU Medical DXN DLY GLDMNR 3x BL Crossroads Systems ProShares Ultra Jr Miners ENGlobal Corp

ICUI

Volume % chg from Latest Session (000) 65-day avg Close % chg

248.8 7.57 -3.69 157.9 3.75 0.54 123.7 35.40 -4.58 2813.3 9.77 1.56 15.6 12.76 -0.08

52-Week High Low

31.79 12.40 33.29 2.05 35.80 3.48 23.39 10.99 228.34 181.02 11.99 5.85 52.50 11.35 14.22

6.00 3.10 16.87 8.79 11.02

A consumer rate against its benchmark over the past year

Home Equity

6.00%

Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills,

Home equity loan 5.00 4.00 t

Prime rate 2.00

1.99% 800-367-0995

Jersey Shore State Bank Williamsport, PA

1.99% 888-412-5772

Friday

Union Community Bank FSB 1.99% Lancaster, PA 717-492-2222 United Community Bank Blue Ridge, GA

1.99% 706-632-6000

Watertown Savings Bank 2.99% Watertown, NY 315-788-7100

3.00

Yen, euro vs. dollar; dollar vs. major U.S. trading partners

4.00

1 3 6 month(s)

18% 12

3.00

2.00

1.00 One year ago 0.00

–6

1 2 3 5 710 years maturity

Euro

Yen

WSJ Dollar index

–12 2016

Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago

Federal-funds rate target 0.50-.75 0.50-.75 Prime rate* 3.75 3.75 Libor, 3-month 1.00 1.01 Money market, annual yield 0.29 0.30 Five-year CD, annual yield 1.22 1.19 30-year mortgage, fixed† 4.21 4.11 15-year mortgage, fixed† 3.42 3.32 Jumbo mortgages, $424,100-plus† 4.52 4.63 Five-year adj mortgage (ARM)† 3.58 3.81 New-car loan, 48-month 3.00 2.98 HELOC, $30,000 4.60 4.57

3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts)

0.25 l l 3.50 0.61 l 0.22 l 1.17 l l 3.43 l 2.70 l 4.02 l 2.97 l 2.87 l 4.29

0.75 3.75 1.01 0.30 1.40 4.29 3.50 4.88 4.03 3.38 5.01

0.50 0.50 0.77 -0.13 -0.17 -0.57 -0.37 -0.32 -0.29 0.06 -0.63

Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com

Corporate Borrowing Rates and Yields Bond total return index

Yield (%) Last Week ago

52-Week High Low

Total Return (%) 52-wk 3-yr

1426.847

2.041

2.050

2.186

1.141

10-yr Treasury, Ryan ALM 1692.432 DJ Corporate 362.211 Aggregate, Barclays Capital 1879.700 High Yield 100, Merrill Lynch 2707.677 Fixed-Rate MBS, Barclays 1938.560 Muni Master, Merrill 501.086

2.417 3.178 2.600 5.312 2.810 2.232

2.446 3.143 2.610 5.513 2.850 2.307

2.600 3.414 2.770 8.696 3.070 2.516

1.366 –4.639 3.881 2.460 5.333 4.309 1.820 2.353 3.009 5.248 14.247 3.419 1.930 1.316 3.037 1.297 –0.492 3.617

748.348

5.887

6.056

7.128

5.134

Treasury, Ryan ALM

EMBI Global, J.P. Morgan

5.63 19.48 9.23 17.01 33.29

2.08 3.20 4.50 6.48 2.05

-46.8 -82.1 -32.3 6.5 115.0

18.05 12.57 17.31 3.66 3.38

-2.62 -1.56 -2.09 -0.44 -0.40

-12.68 -11.02 -10.78 -10.73 -10.58

32.98 30.47 32.34 17.30 19.80

6.00 8.97 9.24 2.70 1.65

97.9 ... 12.5 -78.8 -78.7

154.80 85.56 35.80 3.48 21.80 3.00 152.62 20.18 2.89 0.68

27.1 62.4 -81.2 133.4 160.7

131.88 -15.48 -10.50 9.26 -1.06 -10.27 CRDS 3.79 -0.42 -10.03 GDJJ 66.24 -7.36 -10.00 ENG 2.52 -0.27 -9.68 NUGT

Company

Ranked by change from 65-day average*

Symbol

SPDR Bloomberg 1-10Y TIPS TIPX NYRT New York REIT iSh Morningstar SC Value JKL KraneShs Bosera China A KBA iSh iBonds Mar 2020 Corp IBDC Moelis Anchor Bancorp Reality Shares DIVS ETF Live Ventures Direxion Silver Min Bl 2X

MC ANCB DIVY LIVE SHNY

Volume % chg from Latest Session (000) 65-day avg Close % chg

16299 19.56 9.77 2813 2584 145.27 2525 27.47 2269 26.08

1,760 46,285 254 201 144

1958 1925 1237 1209 1156

3,605 126 141 1,478 88

0.10 1.56 -0.20 -2.59 0.12

52-Week High Low

20.25 11.35 148.22 30.85 27.47

33.75 0.45 26.15 -1.32 25.54 0.61 18.05 -12.68 12.57 -11.02

18.99 8.79 96.75 26.17 25.70

35.50 21.91 27.50 22.61 26.17 22.04 32.98 6.00 30.47 8.97

CURRENCIES

U.S.-dollar foreign-exchange rates in late New York trading

Forex Race

5.00%

4.57%

First Citizens Bank Raleigh, NC

OREX

Currencies

notes and bonds

Bankrate.com avg†:

GNVC

52-Week Low % chg

* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days

* Volumes of 100,000 shares or more are rounded to the nearest thousand

Selected rates

APEN

Volume Movers

U.S. consumer rates

SHNY

High

-24.65 -15.38 -14.26 -13.77 -13.39

JNUG

-40.7 -57.0 90.1 -82.9 124.3

CREDIT MARKETS Consumer Rates and Returns to Investor

* Primary market NYSE, NYSE MKT NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure.

-0.87 -0.60 -0.75 -1.54 -1.17

TAHO

70.86 29.95 15.65 3.75 47.45 19.89 26.95 2.55 14.60 3.88

58,178 57,176 46,981 46,285 40,064

NYSE Arca

2.66 3.30 4.51 9.64 7.57

SMRT

17.28 16.33 16.02 15.38 13.66

27.2 22.39 -3.49 170.7 7.57 -13.39 70.5 9.26 -10.27 -42.4 22.68 ... -26.5 227.21 0.36

NYRT

Nasdaq

Total volume*1,695,560,166 311,203,927 Adv. volume* 988,935,625 95,644,853 Decl. volume* 673,033,149 214,084,354 Issues traded 2,992 1,333 Advances 1,270 605 Declines 1,534 700 Unchanged 188 28 New highs 94 77 New lows 20 18 Closing tick 198 2 Closing Arms† 0.56 1.67 Block trades* 7,013 1,222

Latest Session Close Net chg % chg

AVGR

5.90 0.88 6.45 0.50 1.55

102,675 90,973 NUGT 77,049 BAC 65,445 SPY 64,085

GDXJ

Symbol

40.05 6.27 46.70 3.75 12.90

JNUG

FTR

Company

1.75 3.99 1.83 2.89 1.89

Most Active Stocks Company

NYSE MKT

Total volume* 769,198,490 13,417,109 Adv. volume* 335,134,918 6,703,795 Decl. volume* 413,673,682 6,233,261 Issues traded 3,116 337 Advances 1,426 138 Declines 1,584 188 Unchanged 106 11 New highs 108 7 New lows 10 … Closing tick 150 57 Closing Arms† 1.18 0.65 Block trades* 5,988 177

Percentage Losers Latest Session Close Net chg % chg

Sources: SIX Financial Information; WSJ Market Data Group

0.343 3.369

11.908 5.962

Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch

Country/currency

in US$

ONLINE Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com

US$vs, YTDchg Fri per US$ (%)

Americas Argentina peso .0633 15.8100 Brazil real .3102 3.2242 Canada dollar .7554 1.3238 Chile peso .001499 667.30 Colombia peso .0003420 2924.25 Ecuador US dollar 1 1 Mexico peso .0471 21.2217 Peru new sol .2961 3.378 Uruguay peso .03488 28.6700 Venezuela b. fuerte .100150 9.9851

–0.4 –0.9 –1.5 –0.4 –2.6 unch 2.3 0.7 –2.3 –0.1

Asia-Pacific Australian dollar .7299 1.3701 –1.3 China yuan .1445 6.9185 –0.4 Hong Kong dollar .1289 7.7556 ... India rupee .01467 68.164 0.3 Indonesia rupiah .0000749 13349 –1.3 Japan yen .008548 116.99 –0.01 Kazakhstan tenge .003018 331.34 –0.7 Macau pataca .1251 7.9914 0.9 Malaysia ringgit .2236 4.4730 –0.3 New Zealand dollar .6958 1.4372 –0.5 Pakistan rupee .00954 104.800 0.4 Philippines peso .0202 49.563 –0.1 Singapore dollar .6950 1.4389 –0.6 South Korea won .0008319 1202.03 –0.5 Sri Lanka rupee .0067417 148.33 –0.1 Taiwan dollar .03120 32.056 –1.2

Country/currency

in US$

US$vs, YTDchg Fri per US$ (%)

.02799 35.730 –0.2 .00004440 22523 –1.1

Thailand baht Vietnam dong

Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound

.03898 25.654 .1417 7.0586 1.0533 .9494 .003424 292.09 .008795 113.70 .1171 8.5369 .2418 4.1365 .01678 59.600 .1104 9.0595 .9822 1.0181 .2744 3.6438 .0371 26.9750 1.2285 .8140

–0.1 –0.1 –0.1 –0.7 0.7 –1.2 –1.2 –2.7 –0.5 –0.1 3.4 –0.4 0.5

Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand

2.6527 .3770 .0556 17.9805 .2601 3.8454 3.2710 .3057 2.5961 .3852 .2747 3.640 .2666 3.7509 .0727 13.7600

–0.1 –0.8 –0.1 0.03 0.1 0.01 0.01 0.5

Close Net Chg % Chg YTD%Chg

WSJ Dollar Index 92.81

0.76 0.83 –0.13

Sources: Tullett Prebon, WSJ Market Data Group

Commodities

COMMODITIES Friday

52-Week

Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity

WSJ .COM

Low

0.01

SPDR S&P 500

Percentage Gainers...

The Global Dow 2582.66 The Global Dow Euro 2299.06 DJ Global Index 332.06 DJ Global ex U.S. 218.13

Interest rate

After Hours % chg High

Sources: SIX Financial Information; WSJ Market Data Group

Region/Country Index

J F M A M J J A S O N DJ 2016

Net chg

-0.09

International Stock Indexes

Last

NYSE

-0.28

Philadelphia Stock Exchange

World

5521.06 5007.08

1829.08

11260.84 11205.30 11237.62 -10.07

NYSE Composite

19974.62 15660.18

2276.98

0.35

Volume, Advancers, Decliners

9421.08

High

9145.85

Trading Diary

Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT and Nasdaq issues from 4 p.m. to 6 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares.

Dow Jones Industrial Average

Late Trading

TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz.

565.99

-1.32

-0.23

573.28

420.23

193.54 53.99 3.285 1171.90

-0.17 0.23 0.012 -7.80

-0.09 195.82 54.06 0.43 3.93 0.37 -0.66 1364.90

155.01 26.21 1.64 1073.90

% Chg

27.67

YTD % chg

-0.22

0.53 14.81 0.50 62.82 32.89 -11.79 1.90 6.75

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | B7

* * * *

WEEKEND INVESTOR

Brokerages Tack to the Adviser Model Big banks move to comply with new regulations and take back market share BY MICHAEL WURSTHORN Executives at Wall Street’s biggest brokerages for years have dismissed independent financial advisers as unsophisticated rivals who worked out of strip malls. These registered investment advisers acted as fiduciaries required to put clients’ best interests ahead of their own, collected fees instead of commissions and didn’t receive compensation to promote one product over another. Brokers, meanwhile, were traditionally tasked with pushing stocks and bonds on investors for a commission and held to the looser standard of having only to ensure recommendations were suitable. The distinction is blurring as Bank of America Corp.’s Merrill Lynch, J.P. Morgan Chase & Co. and other firms with brokerage outfits are moving to comply with new

retirement-advice regulations, boost profit and take back market share by dropping commissions in retirement accounts in favor of fee-based advice. The moves, hastened by a new retirement regulation known as the fiduciary rule, are the latest in an industry shift since the financial crisis that has taken brokers from peddling stocks to providing advice for a fee. For independent advisers, some of their selling points are being co-opted. “In the 1990s, it was easy to compete and differentiate against the big brokerages because they were focused on transactions and we only collected fees,” said Christopher Cordaro, chief executive of RegentAtlantic LLC, a fee-only adviser in Morristown, N.J. “Over time, their marketing materials looked more and more like what we tell our clients.” The industry’s transformation comes as the U.S.’s biggest brokerages try to shrug off their lingering boilerroom images and sales-driven cultures, which have contributed to their loss of market share to independent peers the past several years, ob-

servers said. Traditional brokerages’ share of the advice market has shrunk from 63% of assets in 2010 to 59% in 2015, while independent advisers have increased from 37% to nearly 41%, according to researcher Cerulli Associates. By 2020, Cerulli estimates, traditional brokerages will advise on less than 48% of the market’s assets, while inde-

‘Consumers are starting to recognize this idea of conflicts of interest.’ pendent advisers will oversee more than 52%. Much of that growth comes from brokers who defect from firms like Merrill to launch their own practices. “Consumers are starting to recognize this idea of conflicts of interest,” said Bing Waldert, a director with Cerulli Associates. “It’s contributed to the growth of the [independent adviser] channel and to the growth of firms like Vanguard

[Group].” In response to the new rule, Merrill Lynch, with $2 trillion in client assets, was the first last year to say it would abandon the industry’s traditional sales model of charging investors for each transaction made in a retirement account, instead offering to work with retirement savers for a fee based on a percentage of a portfolio’s assets. Soon after, Merrill Lynch launched a national advertising campaign promoting the decision as a shift from the status quo. It was one of the firm’s biggest advertising pushes directly to consumers since its acquisition by Bank of America in 2009, according to a spokeswoman. “It’s going to help raise the level of trust in our industry. Because clients are going to be assured that when it comes to their retirement savings, there’s no one’s interest that is being put in front of the interest of a client,” said Andy Sieg, who took over as head of Merrill Lynch this month, in one ad. For Merrill, the direct plea to investors may help stem year-over-year revenue declines that plagued the broker-

Merrill’s Brokers How Bank of America’s brokerage arm has performed since its 2009 acquisition. Number of Merrill Lynch brokers

15,000 10,000 5,000 0 2009

Assets under management

’10

’11

’12

’13

’14

’15

’16*

’11

’12

’13

’14

’15

’16*

’12

’13

’14

’15

’16*

$2.0 trillion 1.5 1.0 0.5 0 2009

Revenue

’10

$15 billion 10 5 0 2009

*As of Sept. 30 Source: company ﬁlings

’10

’11

THE WALL STREET JOURNAL.

age in 2015 and 2016. A number of firms chose not to follow Merrill’s lead and will continue to offer commission-based IRAs under the rule, including the brokerages

of Morgan Stanley and Wells Fargo & Co. Still, each of those firms has been pushing their brokers to work with more clients for a fee rather than commissions.

How Merrill Tamed Its Herd to Push Bank Products BY MICHAEL WURSTHORN

For Geoffrey Soper, the shift from stock hawker to advice dispenser has been a long time coming. When he first joined Merrill Lynch at age 21 in 1985 as a stockbroker, Mr. Soper spent his time cold-calling would-be investors and pitching stocks to nab sales commissions. But in the three decades since, Merrill and many other big brokerages have pushed brokers instead to serve as overall financial advisers, providing long-term financial planning and pitching checking accounts, credit cards and other banking products, rather than single stocks.

“When I first started, it was about creating enthusiasm for the product and convincing someone this is something they needed to buy right now,” said Mr. Soper, who is 52 and works out of Merrill’s Boston office. “Now it’s not that way.” The commission-based brokerage model is lately under new assault, since the Obama administration last year adopted a policy, known as the fiduciary rule, that requires advisers to put the interests of retirement savers ahead of their own. To avoid tripping the rule, Merrill decided to end such commission accounts in favor of accounts that levy an annual fee. The

firm intends to stick to its plan right now even if the incoming Trump administration halts or dismantles the retirement rules, people familiar with the matter said. Yet the industry was already pushing clients to accounts that paid fees whether they traded or not. Such a model puts a premium on brokers offering more services than stock suggestions. Executives at Merrill and other brokerages said clients better understand how much they pay for investment advice in fee-based accounts. The move also helps brokerages’ bottom lines; researcher Morningstar Inc. said fee-based accounts can

Bonds | WSJ.com/bonds Global Government Bonds: Mapping Yields

1.250 2.000

1.166 2.349

1.124 2.390

0.980 2.169

1.797 t 2.693 t

1.830

1.794

2.001

2.753

2.832

2.717

France 2 -0.604 s 10 0.836 s

-0.625

-0.645

-0.325

0.803

0.806

0.883

Germany 2 -0.725 s 10 0.302 s

-0.733

-0.692

-0.378

0.233

0.375

0.507

Italy 2 -0.097 s 10 1.965 s

-0.149

-0.006

-0.001

1.939

1.956

1.492

Japan 2 -0.211 t 10 0.055 t

-0.195

-0.185

-0.017

0.063

0.050

Spain 2 -0.246 s 10 1.538 s

-0.273

-0.195

-0.008

1.492

1.509

1.669

0.216 s 1.473 s

0.103

0.136

0.523

1.387

1.288

1.795

Australia 2 10

0.000 0.000 0.250 1.250 0.100 0.100 0.250 1.300

Year ago

U.S. 2 1.226 s 10 2.416 s

4.750 0.250

Month ago

3.250 0.000

Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous

1.250

U.K. 2

4.250

57.1 27.7 -183.0 -158.0 -195.1 -211.4 -132.3 -45.1

-143.7 0.254 -236.1 -147.2 -87.8 -101.0 -94.3

66.4

102.1 54.7

-179.1

-130.5

-154.6

-128.7

-189.9

-135.8

-211.7

-166.2

Buyers

-131.5

-98.1

Dec. 29-30 Spark Energy

-41.0

-67.7

Dec. 30 Jan. 4-5 Dec. 30

ACAFP Credit Agricole S.A. RBS Royal Bank of Scotland Kinder Morgan Energy Partners KMI

6.637 May 31, ’49 7.640 Sept. 29, ’49 6.850 Feb. 15, ’20

Spread*, in basis points One-day change

1404 1421 120

–454 –121 –26

Last week

n.a. n.a. n.a.

BNP

JPMorgan Chase Carlyle Holdings II Finance TevaPharmaceuticalFinanceNetherlandsIiiBv* Abbott Laboratories

JPM

CS DB ACAFP CG TEVA ABT

Northwest Hardwoods L Brands Fiat Chrysler Automobiles NV* Tenet Healthcare

HARDWD

TPCG CZR LB FCAIM THC

7.500 Aug. 1, ’21 6.950 March 1, ’33 5.250 April 15, ’23 8.125 April 1, ’22

88.000 100.000 104.250 100.000

2.00 2.00 1.75 1.75

AVYA

Intelsat Luxembourg Hexion BMC Software Finance Brand Energy and Infrastructure Services

INTEL

RFP RT VRXCN HXN BMC BRANDI

10.500 March 1, ’21 5.875 May 15, ’23 7.625 May 15, ’20 5.500 March 1, ’23 7.750 8.875 8.125 8.500

June 1, ’21 Feb. 1, ’18 July 15, ’21 Dec. 1, ’21

18.32

17.5

15.85

159

4.08

125

4.10 unch.

Dec. 30 Dec. 30

Medley Capital

MCC

S. Taube B. Taube

DI CEOI

16 16

7.45 7.45

120 120

7.79

Dec. 23-Jan. 4Tecogen

TGEN

C. Maxwell

3.84-4.00

115

4.21

0.2

Nov. 30

Westlake Chemical Partners

WLKP

A. Minas

21.00

105

21.50

-0.7

XLRN

J. Zakrzewski

-85.7

-50.0

-106.3

-45.8

-96.2

-37.4

Stock Performance Close ($) % chg

... 5.72 …

... –1.04 …

Stock Performance Close ($) % chg

58.500 n.a. n.a. 86.750

0.76 … ... 8.90

1.01 … ... 4.09

n.a. n.a. 102.000 94.600

... 61.23 ... 16.40

... –1.31 ... –1.20

3.7

Dec. 30

Acceleron Pharma

25.50

102

26.25

2.9

Dec. 30

Advent Claymore Conv. Secs. & Income Fund AGC

T. Maitland

CEOI

5.85

100

5.99

1.9

Jan. 3 Jan. 3 Jan. 3 Jan. 3 Jan. 3

Compass Diversified Holdings

CODI

C. Day J. Bottiglieri D. Ewing H. Edwards G. Burns

UT UT UT UT UT

5 5 5 5 5

18.16 18.16 18.16 18.16 18.15

97 82 82 82 82

18.10

1.1

Dec. 30

Resolute Energy

REN

G. Hultquist

40.70

40.31

-2.1

P P P

33 17 17

789.91-811.59 797.30-810.42 790.51-802.06

26,750 825.21 13,441 13,239

4.1

Sellers Dec. 28-29 Alphabet Jan. 3 Dec. 30

GOOGL

S. Brin S. Brin S. Brin W. Bettinger

CEO

628

40.70-41.20

25,694

41.23

4.5

M. Lamach

CEO

213

75.62

16,114

75.06

0.03

Jan. 4-5

Charles Schwab

SCHW

Jan. 3

Ingersoll-Rand

Jan. 3

WW Grainger

GWW

Jan. 4

Howard Hughes

J. Ryan

234.17

15,221 231.50

-0.3

HHC

G. Herlitz

110

113.00-114.28

12,432 111.24

-2.5

Dec. 29-30 Joy Global

JOY

E. Doheny

CEO

408

28.00-28.03

11,428

28.09

0.3

Jan. 3 Jan. 3-4

Nike

NKE

D. Ayre J. Slusher

O O

200 136

52.39 52.01-52.25

10,478 7,090

53.91

6.1

Jan. 3-4

AXIS Capital Holdings

AXS

M. Butt

159

65.25-65.85

10,392

65.95

1.0

Jan. 3

Capital One Financial

COF

F. Laprade

114

88.49-89.15

10,080

88.60

1.6

Jan. 3

TE Connectivity

TEL

T. Lynch

CEO

124

68.81-69.55

8,515

68.30

-1.4

Jan. 4

Vector Group

VGR

H. Lorber

CEO

300

22.85

6,855

22.73 -0.04

Jan. 3

Concho Resources

CXO

T. Leach

CEO

134.06-136.63

6,243 135.60

2.3

Jan. 3

O'Reilly Automotive

ORLY

G. Henslee

CEO

280.08

5,602 281.78

1.2

Jan. 4

Adobe Systems

ADBE

C. Geschke

CBI

104.03

5,004 108.30

5.2

Jan. 3

Actuant

ATU

R. Arzbaecher

26.60

2.5

184*

26.24-26.56

4,847

* Half the transactions were indirect **Two day transaction p - Pink Sheets

Buying and selling by sector

…And with the biggest price decreases Avaya Resolute Forest Products Ruby Tuesday Valeant Pharmaceuticals International

-6.1

0.01 … … 2.72

3.00 2.88 2.13 2.00

-4.8

3.85

86.12 … … 40.78

64.750 35.875 90.750 99.500

28.85

205 122 49

H. Robinson

n.a. n.a. 133 n.a.

April 1, ’20 June 1, ’34 Dec. 15, ’20 Feb. 1, ’51

289

3.29 3.55-3.68 3.29

M. Rapoport

11 9 9 8

7.875 6.850 8.750 10.750

30.37-30.50

62 34 15

ZYNE

High-yield issues with the biggest price increases…

P D CEO

AAME

119 275 133 159

VNR

P. Reed H. Wilson R. Chernicoff

Zynerba Pharmaceuticals

3.200 Jan. 25, ’23 5.625 March 30, ’43 2.200 July 21, ’21 3.400 Nov. 30, ’23

Vanguard Natural Resources BruceMansfieldUnit12007PassThroughTrust TPC Caesars Entertainment Operating

W. Maxwell

UPIP

Atlantic American

... –0.25 0.05 ...

Last week

SPKE

Dec. 29

... 15.68 19.27 ...

Maturity

Close ($) Ytd (%)

Dec. 30

n.a. n.a. 271 n.a.

Coupon (%)

Title

-98.8

19 15 15 13

Symbol

Great Elm Capital Group

No. of shrs in Price range ($) $ Value trans (000s) in transaction (000s)

Insider

Symbol

-143.9

414 363 293 159

Issuer

Company

-99.7

6.750 March 14, ’49 7.500 Dec. 11, ’49 4.500 April 1, ’25 8.375 Oct. 13, ’49

Bond Price as % of face value Current One-day change

Date(s)

-191.5

…And spreads that widened the most Bnp Paribas S.A. Credit Suisse AG Deutsche Bank AG* Credit Agricole S.A.

Based on reports filed with regulators this past week

-136.1

Investment-grade spreads that tightened the most… Current

Biggest weekly individual trades

-228.6

Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in that same company’s share price. Here’s a look at both for two companies in the news.

Maturity

KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: unknown VP: vice president Excludes pure options transactions

40.4

Source: Tullett Prebon

Symbol Coupon (%)

ents, but they weren’t having intimate conversations. They weren’t asking what keeps them up at night,” Mr. Thiel said. Merrill has made changes to how it pays brokers to nudge them in that direction. Merrill doubled the number of referrals brokers need to make to other parts of Bank of America, including its retail bank and online discount brokerage Merrill Edge, to two in 2017 to avoid a hit to their pay. Mr. Soper said he has accepted, and embraced, the new reality. “Even the president of the United States has to be selling every day; that’s part of what we all do,” he said.

Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys new information about the prospects of a company. Insiders are required to report large trades to the SEC within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Thomson Financial on January 6, and year-to-date stock performance of the company

Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago

Corporate Debt

Issuer

than 14,000 brokers, work with half or more of their clients for a fee. “The value-add isn’t ‘I bought a great investment’ anymore,” Mr. Soper said. “It’s ‘I’m going to be your personal CFO, your adviser, and look at everything I can offer you.’ ” John Thiel, vice chairman of Bank of America’s global wealth unit, said corralling the firm’s brokerage ranks to transition from stock pickers to advice givers offering a suite of banking services has been one of the biggest challenges he faced when he ran the brokerage from 2011 through last month. “Advisers knew their cli-

Insider-Trading Spotlight

Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years

yield as much as 60% more revenue than commission accounts. This transition is perhaps most evident at Merrill, whose “thundering herd” of thousands of brokers was once synonymous with Wall Street’s sales culture. Still one of the U.S.’s biggest brokerages, with $2 trillion of client assets, Merrill was laid low by the financial crisis and acquired by Bank of America Corp. When Merrill was bought in 2009, just 23% of its 15,000 brokers had at least 50% or more of their clients in feebased accounts, according to a spokeswoman. Now, 63%, or about 9,100 of Merrill’s more

29.500 –7.50 –4.25 85.000 –2.00 96.750 –1.44 76.625 35.250 98.440 94.250 102.250

–1.25 –1.06 –1.00 –1.00

43.000 91.000 n.a. n.a.

... 5.75 2.66 ...

32.750 n.a. n.a. n.a.

... ... ... ...

... 0.88 –24.65 ... ... ... ... ...

*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group

Based on actual transaction dates in reports received this past week Sector

Basic Industries Business services Capital goods Consumer durables Consumer nondurables Consumer services Energy

Buying

0 4,652 0 0 33,369 19,739 1,666

Selling

6,052,242 10,051,279 0 3,271,600 30,953,048 30,836,197 13,402,746

Sector

Buying

Finance Health care Industrial Media Technology Transportation Utilities

609,125 56,193 11,538 0 525,795 0 58,121

Selling

78,230,273 16,190,592 67,909,255 2,514,305 39,632,066 421,581 5,383,732

Sources: Thomson Financial; WSJ Market Data Group

B8 | Saturday/Sunday, January 7 - 8, 2017

MUTUAL FUNDS Explanatory Notes

e-Ex-distribution. f-Previous dayâ&#x20AC;&#x2122;s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didnâ&#x20AC;&#x2122;t exist at start of period. Friday, January 6, 2017 Net YTD NAV Chg %Ret Fund

A American Funds Cl A AmcpA p 27.76 +0.11 AMutlA p 37.31 +0.10 BalA p 25.05 +0.02 BondA p 12.74 -0.04 CapIBA p 58.28 -0.15 CapWGrA 44.68 -0.04 EupacA p 46.04 -0.17 FdInvA p 55.30 +0.22 GwthA p 43.07 +0.21 HI TrA p 10.34 ... ICAA p 36.84 +0.13 IncoA p 21.91 -0.02 N PerA p 36.07 +0.07 NEcoA p 36.85 +0.17 NwWrldA 52.53 -0.02 SmCpA p 46.90 +0.04 TxExA p 12.78 ... WshA p 41.44 +0.10 AMG Managers Funds YacktmanFd I 21.67 +0.06 AQR Funds MgdFutStrI 9.38 +0.04

B Baird Funds AggBdInst 10.73 -0.03 CorBdInst 11.06 -0.03 BlackRock Funds A GlblAlloc p 18.45 ... BlackRock Funds C GlblAlloc t 16.79 -0.01 BlackRock Funds Inst EqtyDivd 22.77 +0.02 GlblAlloc 18.55 ... HiYldBd 7.71 +0.01 StratIncOpptyIns 9.87 +0.02

D Del Invest Instl Value 19.94 Dimensional Fds 5GlbFxdInc 10.87 EmgMktVa 24.59 EmMktCorEq 17.79 IntlCoreEq 11.93 IntSmCo 17.65 IntSmVa 19.51 US CoreEq1 19.55 US CoreEq2 18.85 US Small 33.98 US SmCpVal 37.65 US TgdVal 24.21 USLgVa 35.51 Dodge & Cox Balanced 104.72 Income 13.62 Intl Stk 39.18

-0.01 -0.03 -0.07 -0.04 -0.07 -0.11 -0.15 +0.03 +0.01 -0.15 -0.15 -0.09 +0.01 +0.08 -0.02 -0.09

Net YTD NAV Chg %Ret Fund

Stock 187.70 +0.38 DoubleLine Funds TotRetBdI NA ... 1.9 TotRetBdN NA ... 1.3 1.0 0.2 Federated Instl 1.1 StraValDivIS 5.96 -0.02 1.9 Fidelity 2.1 500IdxInst 79.73 +0.31 1.6 500IdxInstPrem 79.72 +0.30 2.5 500IdxPrem 79.72 +0.30 0.9 ExtMktIdxPrem r 56.44 -0.02 1.7 TMktIdxF r 65.65 +0.20 1.1 TMktIdxPrem 65.65 +0.20 2.1 USBdIdxPrem 11.52 -0.04 2.5 USBdIdxInstPrem 11.52 -0.04 2.1 Fidelity Advisor I 27.67 +0.16 2.0 NwInsghtI 0.4 Fidelity Freedom 15.19 -0.01 1.2 FF2020 FF2025 13.03 ... 16.05 ... 1.3 FF2030 FreedomK2020 14.14 -0.01 FreedomK2025 14.80 ... 0.6 FreedomK2030 15.13 ... FreedomK2035 15.70 ... FreedomK2040 15.73 +0.01 0.3 Fidelity Invest 22.38 +0.06 0.3 Balanc BluCh 69.40 +0.44 Contra 101.29 +0.67 1.5 ContraK 101.22 +0.68 CpInc r 9.83 +0.01 1.5 DivIntl 33.89 -0.13 DivIntlK r 33.81 -0.13 1.0 GroCo 140.41 +0.95 1.5 GrowCoK 140.26 +0.95 1.0 InvGB 7.81 -0.03 0.4 InvGrBd 11.12 -0.04 LowP r 49.89 -0.19 LowPriStkK r 49.85 -0.18 MagIn 93.64 +0.53 1.3 OTC 86.24 +0.48 Puritn 20.94 +0.06 ... SrsEmrgMktF 16.12 -0.07 2.7 SrsInvGrdF 11.13 -0.03 2.5 TotalBond 10.55 -0.03 2.3 Fidelity Selects 2.2 Biotech r 186.27 +2.56 2.6 First Eagle Funds 1.5 GlbA 55.07 -0.08 1.3 FPA Funds 0.4 FPACres 33.05 +0.11 0.7 FrankTemp/Frank Adv 0.8 IncomeAdv 2.30 -0.01 1.2 FrankTemp/Franklin A CA TF A p 7.32 ... 1.3 Fed TF A p 12.01 ... 0.2 IncomeA p 2.32 ... 2.8 RisDv A p 53.25 +0.25

Net YTD NAV Chg %Ret

1.8 FrankTemp/Franklin C Income C t 2.35 ... NA FrankTemp/Temp A NA GlBond A p 12.04 +0.14 Growth A p 23.99 -0.11 FrankTemp/Temp Adv GlBondAdv p 12.00 +0.14 0.8

1.2 0.3 1.8 0.3

1.8 1.7 1.8 1.6 1.7 1.7 0.3 0.3

Harbor Funds CapApInst 58.66 +0.46 3.5 IntlInst r 59.77 -0.08 2.3

I Invesco Funds A EqIncA 10.71 +0.02 1.4

2.7 John Hancock Class 1 LSBalncd 14.44 +0.01 1.3 LSGwth 14.96 +0.01 1.4 John Hancock Instl 1.6 DispValMCI 21.91 +0.04 1.3 JPMorgan Funds 1.4 MdCpVal L 36.83 +0.07 1.7 JPMorgan R Class 1.8 CoreBond 11.53 -0.03 1.9 JPMorgan Select Cls CoreBond 11.52 -0.03 1.6 USLgCpCorPls 28.79 +0.17 3.0 2.9 2.9 Lazard Instl 1.3 EmgMktEq 16.26 -0.06 1.8 Loomis Sayles Fds 1.7 LSBondI 13.67 -0.01 2.7 Lord Abbett A 2.7 ShtDurIncmA p 4.31 ... 0.3 0.3 Lord Abbett F ShtDurIncm 4.31 ... 0.8

1.4 1.8 2.0 1.2 0.3 0.3 2.4

0.8 2.5 3.5 1.7 2.4 0.3 0.3

COMMODITIES Net YTD NAV Chg %Ret Fund

Fund

Data provided by

Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures donâ&#x20AC;&#x2122;t reflect sales charges (â&#x20AC;&#x153;loadsâ&#x20AC;?) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized.

Fund

1.9 0.8 0.1 0.3

Metropolitan West TotRetBd 10.55 TotRetBdI 10.55 TRBdPlan 9.93 MFS Funds Class A ValueA p 36.56 7.0 MFS Funds Class I ValueI 36.76 1.5 Mutual Series GlbDiscA 30.98 31.55 1.3 GlbDiscz

-0.03 0.1 -0.03 0.2 -0.02 0.2 +0.17 1.4 +0.17 1.4 +0.05 1.3 +0.05 1.3

0.9

0.3 0.3 0.9 1.2

Oakmark Funds Cl I EqtyInc r 30.82 +0.02 1.3 Oakmark 73.90 +0.34 2.0 OakmrkInt 23.19 -0.10 2.2 Old Westbury Fds

Net YTD NAV Chg %Ret

11.43 +0.01 0.5 13.07 +0.01 1.9 MuLTAdml MuLtdAdml 10.86 Y ... 0.2 ... 0.1 32.69 -0.07 2.3 MuShtAdml 15.73 35.09 -0.19 1.2 PrmcpAdml r 111.05 +0.59 2.0 REITAdml r 119.45 -0.03 2.2 SmCapAdml 62.64 -0.09 1.4 STBondAdml 10.43 -0.01 ... Parnassus Fds ParnEqFd 40.08 +0.09 2.0 STIGradeAdml 10.64 -0.01 0.1 TotBdAdml 10.67 -0.04 0.2 PIMCO Fds Instl AllAsset 11.29 ... 1.3 TotIntBdIdxAdm 21.57 -0.03 -0.5 HiYld 8.88 ... 0.9 TotIntlAdmIdx r 25.20 -0.09 2.3 57.05 +0.17 1.7 TotRt 10.06 -0.03 0.3 TotStAdml TxMIn r 12.01 -0.05 2.3 PIMCO Funds A 36.63 +0.04 1.1 IncomeFd NA ... NA ValAdml WdsrllAdml 63.28 +0.03 1.5 PIMCO Funds D WellsIAdml 61.99 -0.12 0.5 IncomeFd NA ... NA WelltnAdml 68.18 +0.03 1.1 PIMCO Funds Instl WndsrAdml 70.50 +0.15 1.8 IncomeFd NA ... NA VANGUARD FDS PIMCO Funds P 23.85 +0.13 1.8 IncomeP NA ... NA DivdGro GNMA 10.54 -0.03 ... Price Funds HlthCare r 190.77 +0.13 3.3 BlChip 75.15 +0.61 3.5 CapApp 26.54 +0.09 1.3 INSTTRF2020 20.36 -0.02 1.1 EqInc 31.84 +0.05 1.1 INSTTRF2025 20.36 -0.02 1.2 EqIndex 61.15 +0.23 1.7 INSTTRF2030 20.33 -0.02 1.4 Growth 55.05 +0.46 3.4 INSTTRF2035 20.31 -0.01 1.5 ... 1.7 HelSci 61.44 +0.37 4.0 INSTTRF2040 20.28 18.59 -0.03 0.8 InstlCapG 30.23 +0.24 3.4 LifeCon LifeGro 29.32 -0.01 1.6 IntlValEq 13.06 -0.06 2.0 24.44 -0.02 1.2 IntlStk 15.67 -0.05 2.5 LifeMod PrmcpCor 22.58 +0.07 1.8 MCapGro 76.98 +0.31 2.1 SelValu r 29.32 -0.04 1.9 MCapVal 29.52 -0.04 1.6 STAR 24.05 ... 1.6 N Horiz 44.32 +0.19 2.3 STIGrade 10.64 -0.01 0.1 N Inc 9.40 -0.02 0.4 TgtRe2015 14.64 -0.02 0.9 OverS SF r 9.28 -0.04 2.3 TgtRe2020 28.57 -0.03 1.1 R2015 14.35 ... 1.2 TgtRe2025 16.55 -0.02 1.2 R2020 20.71 +0.01 1.5 TgtRe2030 29.61 -0.02 1.4 R2025 15.75 ... 1.6 TgtRe2035 18.01 -0.01 1.5 R2030 22.93 +0.02 1.8 TgtRe2040 30.72 -0.01 1.7 R2035 16.60 +0.02 1.9 TgtRe2045 19.22 ... 1.7 R2040 23.68 +0.04 2.0 TgtRe2050 30.92 ... 1.7 SmCapStk 45.31 -0.12 0.8 TgtRetInc 12.88 -0.03 0.5 SmCapVal 45.16 -0.13 0.1 TotIntBdIxInv 10.79 -0.01 -0.5 Value 34.17 +0.13 1.5 WellsI 25.59 -0.05 0.5 Prudential Cl Z & I Welltn 39.48 +0.02 1.1 TRBdZ 14.14 -0.03 0.5 WndsrII 35.66 +0.01 1.5 VANGUARD INDEX FDS 500 210.21 +0.80 1.8 Schwab Funds ExtndIstPl 182.38 -0.06 1.6 S&P Sel 35.03 +0.14 1.8 SmValAdml 52.57 -0.11 1.2 TotBd2 10.63 -0.04 0.2 TotIntl 15.06 -0.06 2.2 TIAA/CREF Funds TotSt 57.03 +0.17 1.7 EqIdxInst 16.88 +0.06 1.7 VANGUARD INSTL FDS Tweedy Browne Fds BalInst 31.47 +0.02 1.1 GblValue 25.34 -0.05 1.2 DevMktsIndInst 12.02 -0.05 2.3 ExtndInst 73.90 -0.03 1.6 GrwthInst 58.82 +0.41 2.6 VANGUARD ADMIRAL InPrSeIn 10.42 -0.04 0.4 500Adml 210.21 +0.80 1.8 InstIdx 207.42 +0.79 1.8 BalAdml 31.47 +0.02 1.2 InstPlus 207.43 +0.79 1.8 CAITAdml 11.58 +0.01 0.5 InstTStPlus 51.22 +0.16 1.7 CapOpAdml r 127.07 +0.64 2.3 MidCpInst 36.74 +0.10 2.1 EMAdmr 30.48 -0.05 2.4 MidCpIstPl 181.21 +0.49 2.1 EqIncAdml 69.00 +0.10 0.9 SmCapInst 62.64 -0.09 1.4 ExtndAdml 73.91 -0.02 1.6 STIGradeInst 10.64 -0.01 0.1 GNMAAdml 10.54 -0.03 ... TotBdInst 10.67 -0.04 0.2 GrwthAdml 58.82 +0.41 2.6 TotBdInst2 10.63 -0.04 0.2 HlthCareAdml r 80.46 +0.05 3.2 TotBdInstPl 10.67 -0.04 0.2 HYCorAdml r 5.87 ... 0.8 TotIntBdIdxInst 32.37 -0.05 -0.5 InfProAd 25.57 -0.10 0.4 TotIntlInstIdx r100.76 -0.36 2.3 IntlGrAdml 69.64 +0.14 3.4 TotItlInstPlId r100.78 -0.36 2.3 57.06 +0.17 1.7 ITBondAdml 11.27 -0.04 0.3 TotStInst 36.63 +0.05 1.1 ITIGradeAdml 9.66 -0.03 0.2 ValueInst LTGradeAdml 10.15 -0.08 1.0 MidCpAdml 166.33 +0.45 2.1 MuHYAdml 11.06 +0.01 0.5 Western Asset MuIntAdml 13.94 ... 0.4 CorePlusBdI NA ... NA

0.7224 1.0521 3.320 3.280 7.850 3.180 3.160 2.940 3.200 48.050 11.000

Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w

Metals Gold, per troy oz Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e

Friday

1176.65 1264.90 1175.85 1305.19 *1173.05 *1176.70 1219.24 1230.97 1230.97 1421.50 1152.14 1230.97

Silver, troy oz. 16.4200 19.7040 16.4800 20.6000 ÂŁ13.3058 16.4500

Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price (U.S.$ equivalent)

LBMA Platinum Price PM *967.0 Platinum,Engelhard industrial 961.0 Platinum,Engelhard fabricated 1061.0 Palladium,Engelhard industrial 749.0 Palladium,Engelhard fabricated 849.0 Aluminum, LME, $ per metric ton *1709.5 Copper,Comex spot 2.5380 Iron Ore, 62% Fe CFR China-s 76.1 Shredded Scrap, US Midwest-s,w 286 Steel, HRC USA, FOB Midwest Mill-s 585

Fibers and Textiles Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w

0.5400 0.7399 *82.95 75.250 n.a.

Grains and Feeds Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u SoybeanMeal,Cent IL,rail,ton48%-u

n.a. 98 3.4300 99.9 513.6 225 85 268 2.9050 354.00 n.a. 7.0175 313.30

Friday

9.6850 6.8025 4.1600 3.6850 4.6213

Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u

Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers,dressed 'A'-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w

181.58 170.77 n.a. 0.8716 2.2200 157.50 167.00 105.25 2557 1.4100 1.6025 1.1250 13.40 0.58 58.22 n.a. 0.9199 n.a. n.a. 37.7500 0.2750 0.3100 0.3348 0.3150 0.3400

Showroom

To advertise: 800-366-3975 or WSJ.com/classiďŹ eds

360.75 373.75

362.50 375.75 s

356.75 370.25

Interest Rate Futures

170 277,267 68,604 36,319 11,460 22,957

Treasury Notes (CBT)-$100,000; pts 32nds of 100%

March June March June

152-280 153-090 151-240 151-240 124-305 125-105 124-110 124-150

March March

? ' ( $ ? +( $# !!$ $

4 # < 2 $# '(< / =0< - 0! $ > ++. #$ $0 $ #$

3 9 24,385 826

99.355 99.290

Jan April

! "#! $

%$&' (&$ $

(&$ $ ) * %$&' + % $ ,

- ! . ,

- /$0

- 1 2 0 ." ,

3$$ -( %$( 2$$ . ,4

3$$ 0 $ 44

. 0 &$( . ,

.$5 # - ,

.$5 # . 678 . 0! 0 & 9 (

$(!$ $#- 4 * $(!$ $# -. 4 *

AVIATION

$(!$ $# -. ,

$(!$ $# -." 4 2 $(!$ $# -.

## 0 %:0 $( 0 ;

(#!%$ ! 0

(#!%$ '$00$

09$ &$(

09$ &$( (

+ ' . 0 ( #$( *

FERRARI

Sales approaching $5.5 Million, Profitable, National Customer Base, Excellent Management and Equipment, Owner Motivated.

Don Wright Realty LLC Mills & Associates M & A Team Call Chris S. Mills 937-435-3311

Healthfood & Nutrition Center, For Sale by Owner. Business with over 34 years of success is for sale in south east Florida. Owner retiring. Serious inquiries only. Email: major001@bellsouth.net Tel 7726920400

FALCON 2000 AVAILABLE Excellent Condition

BUSINESS OPPORTUNITY

Best Offer Over $3MM 10 Seats, Ideal for Charter

PURE GOLD . 999

PHILIP RUSHTON AVIATRADE INC 1-908-696-1174 philiprushton@aviatrade.aero

MINIMUM INVESTMENT - $25,000 Approx. $625 per Ounce

1-855-339-0749 PERMIAN BASIN OILFIELDS FOR SALE Wolfcamp 20 billion field. Owner/operator with 1,800 acres, 5 fields, 200+ BOPD. 1,000,000+ barrels reserves. Will assist to increase production. $20,000,000 firm. Serious Inquiries only

985-246-3026

â&#x20AC;&#x201C;9.7 2,993,235

108-092

â&#x20AC;&#x201C;2.5 1,163,662

99.355 99.295 s t

99.353 99.275

99.353 99.280

â&#x20AC;Ś 147,744 â&#x20AC;&#x201C;.010 219,145

95.172

March

130 59,988

95.219

94.484

94.547

â&#x20AC;&#x201C;.516

31,124

1 Month Libor (CME)-$3,000,000; pts of 100% ...

Jan

...

99.2350

.0025

1,306

98.9800 98.9250 98.7700 98.4700

â&#x20AC;&#x201C;.0050 â&#x20AC;&#x201C;.0150 â&#x20AC;&#x201C;.0200 â&#x20AC;&#x201C;.0400

222,051 1,364,404 1,353,704 1,342,919

Eurodollar (CME)-$1,000,000; pts of 100%

355 134,337

Jan March June Dec

441,948 338,702 154,638 118,567 226,989 213,603

98.9875 t 98.9450 t 98.8050 s t 98.5300 s

98.9850 98.9450 98.7950 98.5200

98.9800 98.9200 98.7600 98.4600

Currency Futures Japanese Yen (CME)-ÂĽ12,500,000; $ per 100ÂĽ .8712 s .8754 s

.8686 .8745

March June

.8554 .8598

.8567 â&#x20AC;&#x201C;.0106 205,318 .8610 â&#x20AC;&#x201C;.0106 5,345

Canadian Dollar (CME)-CAD 100,000; $ per CAD

109,537 97,690

.7594 s .7602 s

.7565 .7561

March June

.7542 .7551

.7559 .7567

â&#x20AC;Ś â&#x20AC;Ś

88,108 1,903

British Pound (CME)-ÂŁ62,500; $ per ÂŁ

130,613 90,596

1.2432 1.2461

March June

1.2449 1.2478

1.2278 1.2310

1.2293 â&#x20AC;&#x201C;.0134 219,767 1.2325 â&#x20AC;&#x201C;.0133 681

Swiss Franc (CME)-CHF 125,000; $ per CHF

177,888 265,091 113,957 109,386 56,583 89,409

.9940

March

.9942

.9852

.9856 â&#x20AC;&#x201C;.0073

52,072

Australian Dollar (CME)-AUD 100,000; $ per AUD .7328 .7305

March June

.7344 .7326

.7278 .7263

.7293 â&#x20AC;&#x201C;.0029 102,271 .7277 â&#x20AC;&#x201C;.0029 454

Mexican Peso (CME)-MXN 500,000; $ per MXN .04623 .04552

.04670 .04598

.04610 .04552

.04669 .00063 148,589 .04600 .00063 12,001

1.0554 1.0610

1.0561 â&#x20AC;&#x201C;.0061 410,961 1.0616 â&#x20AC;&#x201C;.0061 8,769

Euro (CME)-â&#x201A;Ź125,000; $ per â&#x201A;Ź

358.00 371.50

1.0660 s 1.0699 s

1.0635 1.0683

March June

â&#x20AC;&#x201C;3.25 677,366 â&#x20AC;&#x201C;2.75 182,426

238.75 236.75

Index Futures

4,812 1,241

Mini DJ Industrial Average (CBT)-$5 x index 19925 s 19862 s

19821 19745

March June

4,190 322,753

19760 19705

19897 19840

76 132,870 81 229

S&P 500 Index (CME)-$250 x index

2,398 176,960

March June

1,712 197,928

March June

34 10,950

March

2276.50 s 2271.50 s

2265.30 ...

2258.50 2252.50

2271.50 2265.70

7.20 7.20

62,093 1,763

2271.50 2265.75

7.25 2,807,328 7.25 17,296

Mini S&P 500 (CME)-$50 x index 2277.00 s 2270.75 s

2264.25 2258.25

2258.25 2252.75

Mini S&P Midcap 400 (CME)-$100 x index 1682.50

1688.30

1676.40

1679.40

â&#x20AC;&#x201C;2.30

97,141

Mini Nasdaq 100 (CME)-$20 x index 5017.5 s 5016.0 s

4962.5 4959.0

March June

264,395 77,322

4952.5 4953.3

5004.0 5003.8

42.0 216,170 42.8 284

1365.10

â&#x20AC;&#x201C;5.50 663,035

Mini Russell 2000 (ICE-US)-$100 x index March

119,728 60,738

1369.60

1375.90

1362.60

Mini Russell 1000 (ICE-US)-$100 x index March

1264.30 s

1257.80

1254.60

1261.50

4.20

7,970

102.21 102.14

.68 .69

80,546 1,433

U.S. Dollar Index (ICE-US)-$1,000 x index

32,804 13,294

101.54 101.47

March June

7,249 22,103

102.30 102.18

101.40 101.42

Source: SIX Financial Information

109,717 87,004

Dividend Changes

74,112 57,499

Dividend announcements from January 6.

492 2,837

Company

Symbol

Amount Yld % New/Old Frq

Payable / Record

Increased

4,459 4,107

CenterPoint Energy Enterprise Pdts Partners SpectraEnergy

126,497 59,569

CNP EPD SE

4.2 .2675 /.2575 Q 5.9 .41 /.405 Q 4.1 .44 /.405 Q

Mar10 /Feb16 Feb07 /Jan31 Mar01 /Feb15

Funds and investment companies CS X-Links Gold

96,426 41,418

GLDI

9.6

.0731

Jan25 /Jan20

Stocks AquaBounty Techs Wi

345,027 164,380

1:30

AQBTV

/Jan05

Foreign CS X-Links Silver ETN Deutsche Bk Contgt Cap Deutsche Bk Contng Cap Tr HSBC Hldgs plc Pfd Ser 2 ING Grp 6.375% Perp Hyb Santander Hldgs dep shs

1,044 1,744 175,563 41,255 46 11,824

SLVO DTK DXB HSEB ISF SOVpC

15.5 7.5 6.8 7.7 6.3 7.1

.1095 .475 .40938 .50 .39844 .45625

M Q Q Q Q Q

Jan25 /Jan20 Feb21 /Feb17 Feb23 /Feb22 Mar15 /Feb28 Mar15 /Mar01 Feb15 /Feb01

KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off.

Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session

ETF

Friday, January 6, 2017 Closing Chg YTD Symbol Price (%) (%)

AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt DeutscheXMSCIEAFE EnSelectSectorSPDR FinSelSectorSPDR GuggenheimSP500EqW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSharesTIPSBondETF

AMLP 12.81 XLY 83.32 XLP 52.12 DGP 20.86 DZZ 6.59 DBEF 28.72 XLE 75.89 XLF 23.54 RSP 88.18 XLV 70.95 XLI 63.14 CIU 108.35 CSJ 104.85 TIP 113.45

0.08 0.49 0.10 â&#x20AC;&#x201C;1.51 1.54 0.35 0.09 0.34 0.27 0.28 0.57 â&#x20AC;&#x201C;0.26 â&#x20AC;&#x201C;0.13 â&#x20AC;&#x201C;0.41

1.7 2.4 0.8 3.7 â&#x20AC;&#x201C;3.9 2.4 0.8 1.2 1.8 2.9 1.5 0.1 â&#x20AC;&#x201C;0.1 0.2

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DIRECT FROM LARGE GOLD MINE IRA QUALIFIED ACCREDITED INVESTORS ONLY

117-205

108-085

10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%

ETF

Closing Chg YTD Symbol Price (%) (%)

iShCoreHiDividend iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iSharesGold iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iSharesJPMUSDEmgBd

HDV IEFA IEMG IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB

82.55 54.84 43.59 228.64 167.43 137.80 52.21 108.29 89.47 62.48 45.66 11.30 117.69 87.23 112.09

â&#x20AC;&#x201C;0.21 â&#x20AC;&#x201C;0.38 â&#x20AC;&#x201C;0.46 0.40 â&#x20AC;&#x201C;0.10 â&#x20AC;&#x201C;0.56 0.35 â&#x20AC;&#x201C;0.33 0.21 â&#x20AC;&#x201C;0.26 0.13 â&#x20AC;&#x201C;0.70 â&#x20AC;&#x201C;0.52 â&#x20AC;&#x201C;0.02 â&#x20AC;&#x201C;0.05

0.4 2.3 2.7 1.6 1.3 0.2 1.8 0.2 1.0 2.1 1.0 2.0 0.4 0.8 1.7

To advertise: 800-366-3975 or WSJ.com/classiďŹ eds

PRINTING COMPANY FOR SALE

â&#x20AC;&#x201C;13.5 3,101,861 â&#x20AC;&#x201C;13.5 1,631

30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.

The Mart

BUSINESS FOR SALE

â&#x20AC;&#x201C;23.0 614,490 â&#x20AC;&#x201C;23.0 28

124-130 123-260

117-187

108-127 108-142

? 0= $ /$ &$(' ? $ 0 = $ #$ 0 1

124-100 123-260

118-012 118-080

LEASE

151-250 150-150

2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%

March June

t 226.50 228.00 â&#x20AC;&#x201C;8.50 t 227.00 228.00 â&#x20AC;&#x201C;8.25 Soybeans (CBT)-5,000 bu.; cents per bu. Jan 1003.50 1003.50 985.00 986.00 â&#x20AC;&#x201C;17.50 March 1012.50 1014.75 993.50 994.75 â&#x20AC;&#x201C;17.75 Soybean Meal (CBT)-100 tons; $ per ton. Jan 312.80 312.90 t 307.00 307.50 â&#x20AC;&#x201C;6.90 March 318.00 318.90 t 310.70 311.30 â&#x20AC;&#x201C;6.90 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Jan 34.94 35.12 34.71 34.77 â&#x20AC;&#x201C;.23 March 35.22 35.35 34.86 34.98 â&#x20AC;&#x201C;.24 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Jan ... ... ... 944.00 â&#x20AC;&#x201C;7.00 March 975.00 985.00 959.00 967.00 â&#x20AC;&#x201C;7.50 Wheat (CBT)-5,000 bu.; cents per bu. March 425.75 428.00 s 421.75 423.25 â&#x20AC;&#x201C;3.00 May 436.00 438.50 s 433.25 434.75 â&#x20AC;&#x201C;1.75 Wheat (KC)-5,000 bu.; cents per bu. March 433.75 438.75 s 432.50 433.50 â&#x20AC;&#x201C;1.00 July 456.25 461.25 s 455.50 456.50 â&#x20AC;&#x201C;.50 Wheat (MPLS)-5,000 bu.; cents per bu. March 549.75 555.75 s 545.50 552.75 2.50 May 544.75 550.25 s 540.00 547.00 2.25 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Jan 128.250 128.800 t 127.750 128.325 .075 March 123.775 124.300 t 123.025 123.800 .050 Cattle-Live (CME)-40,000 lbs.; cents per lb. Feb 114.725 115.200 t 113.975 114.825 â&#x20AC;&#x201C;.250 April 113.825 114.400 t 113.225 114.200 .050 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Feb 65.150 65.150 63.575 63.975 â&#x20AC;&#x201C;.900 April 68.425 68.450 67.550 68.200 â&#x20AC;&#x201C;.125 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Jan 315.00 317.40 t 312.70 312.90 â&#x20AC;&#x201C;2.40 March 328.50 331.90 326.60 328.20 â&#x20AC;&#x201C;.40 Milk (CME)-200,000 lbs., cents per lb. Jan 16.54 16.64 s 16.52 16.62 .05 Feb 16.70 16.99 16.68 16.99 .29 Cocoa (ICE-US)-10 metric tons; $ per ton. March 2,263 2,291 s 2,245 2,261 â&#x20AC;&#x201C;1 May 2,243 2,273 s 2,227 2,244 â&#x20AC;&#x201C;1 Coffee (ICE-US)-37,500 lbs.; cents per lb. March 143.50 144.50 142.05 142.85 â&#x20AC;&#x201C;.90 May 146.00 146.80 144.40 145.15 â&#x20AC;&#x201C;.90 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 20.66 20.84 20.30 20.75 â&#x20AC;&#x201C;.03 May 20.40 20.49 20.05 20.41 â&#x20AC;&#x201C;.02 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 29.00 29.00 t 29.00 29.10 .17 March May 29.00 29.19 29.00 29.14 .14 Cotton (ICE-US)-50,000 lbs.; cents per lb. March 73.93 74.19 72.90 73.99 .21 May 73.85 74.36 73.18 74.29 .36 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Jan 189.45 189.45 t 185.05 185.55 â&#x20AC;&#x201C;5.35 March 189.10 189.10 t 181.50 182.80 â&#x20AC;&#x201C;7.50 235.50 236.75

151-190 151-020

5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%

Oats (CBT)-5,000 bu.; cents per bu.

March May

Open interest

Chg

Treasury Bonds (CBT)-$100,000; pts 32nds of 100%

Corn (CBT)-5,000 bu.; cents per bu. March July

Settle

2,088 145,973

Agriculture Futures

Fats and Oils Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-u Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-u Tallow,edible,Chicago-u

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 1/5 Source: WSJ Market Data Group

Open Chg interest

Settle

12979

Contract High hi lo Low

Jan 2.5175 2.5350 2.5050 2.5380 0.0085 March 2.5350 2.5480 2.5125 2.5460 0.0085 Gold (CMX)-100 troy oz.; $ per troy oz. Jan 1176.50 1176.50 1172.00 1171.90 â&#x20AC;&#x201C;7.80 Feb 1181.00 1183.80 1171.10 1173.40 â&#x20AC;&#x201C;7.90 April 1183.70 1186.20 1174.10 1176.30 â&#x20AC;&#x201C;7.80 June 1185.80 1187.00 1177.00 1179.00 â&#x20AC;&#x201C;7.70 Aug 1190.70 1190.70 1179.70 1181.70 â&#x20AC;&#x201C;7.70 Dec 1193.60 1193.60 1185.40 1187.20 â&#x20AC;&#x201C;7.50 Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan 740.15 740.15 t 740.15 757.75 20.15 Feb 747.00 756.85 747.00 758.40 20.15 March 739.80 759.80 s 735.55 758.35 20.15 June 740.50 759.00 s 738.95 758.55 20.20 Platinum (NYM)-50 troy oz.; $ per troy oz. Jan 965.60 967.10 960.00 966.50 â&#x20AC;&#x201C;5.60 April 972.60 974.80 961.40 970.60 â&#x20AC;&#x201C;5.40 Silver (CMX)-5,000 troy oz.; $ per troy oz. Jan 16.375 16.490 16.375 16.466 â&#x20AC;&#x201C;0.118 March 16.635 16.715 16.260 16.519 â&#x20AC;&#x201C;0.118 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Feb 53.73 54.32 53.32 53.99 0.23 March 54.62 55.20 54.20 54.87 0.19 April 55.46 55.97 55.00 55.68 0.19 May 56.15 56.63 55.67 56.37 0.20 June 56.61 57.13 56.14 56.88 0.20 Dec 57.28 57.82 56.95 57.66 0.23 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Feb 1.6971 1.7146 1.6777 1.7032 .0090 March 1.7107 1.7266 1.6909 1.7166 .0093 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Feb 1.6391 1.6583 1.6239 1.6340 â&#x20AC;&#x201C;.0037 March 1.6610 1.6771 1.6463 1.6584 .0003 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Feb 3.304 3.358 3.214 3.285 .012 March 3.286 3.351 3.211 3.288 .020 April 3.240 3.317 3.180 3.256 .030 May 3.230 3.310 3.180 3.261 .039 July 3.298 3.371 3.250 3.327 .045 Oct 3.294 3.366 3.245 3.326 .049

Other metals

Open

Contract High hilo Low

Open

Copper-High (CMX)-25,000 lbs.; $ per lb.

Friday

Metal & Petroleum Futures

Friday, January 6, 2017 These prices reflect buying and selling of a variety of actual or â&#x20AC;&#x153;physicalâ&#x20AC;? commodities in the marketplaceâ&#x20AC;&#x201D; separate from the futures price on an exchange, which reflects what the commodity might be worth in future months. Coins,wholesale $1,000 face-a

Futures Contracts | WSJ.com/commodities

LrgCpStr Oppenheimer DevMktY IntGrowY

Cash Prices | WSJ.com/commodities

Energy

THE WALL STREET JOURNAL.

* ***

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Closing Chg YTD Symbol Price (%) (%)

iShMBSETF iShMSCIACWIETF iSharesMSCIEAFESC iSharesMSCIEAFEETF iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlAMTFrMuniBd iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&P500Growth iShS&P500ValueETF iShUSPfdStk iSh1-3YTreasuryBd iSh7-10YTreasuryBd iShRussellMCGrowth PwrShrs QQQ PS SP500LoVoltlPrt PwrShSrLoanPtf SPDRBloomBarcHYBd SchwIntlEqty SchwUS BrdMkt SchwUS LrgCap SPDR DJIA Tr SPDR GldTr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckVectBiotech VanEckGoldMiner VanEckVctrOilSvcs VanEckVectorsPharm VanEckVctrRetail VanEckSemiconduc VanguardInfoTech VanguardSCVal VangdDivApp VanguardFTSEDevMk VanguardFTSEEmgMk VanguardFTSEEurope VanguardAWxUS VangdGrowth VanguardHiDiv VanguardIntrm VangIntrCorpBd VanguardLC VanguardMC VanguardMCVal VanguardReit VanguardS&P500 VanguardSTBd VanguardSTCpBd VanguardSC VanguardTotBd VanguardTotIntlBd VanguardTtlIntlStk VanguardTotStk VangdTotlWrld VanguardValue WisdomTreeEurope WisdomTreeJapanHdg

MBB ACWI SCZ EFA EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IVW IVE PFF SHY IEF IWP QQQ SPLV BKLN JNK SCHF SCHB SCHX DIA GLD MDY SPY SDY XLK XLU BBH GDX OIH PPH RTH SMH VGT VBR VIG VEA VWO VGK VEU VUG VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ

106.44

â&#x20AC;&#x201C;0.23

0.1

60.38

0.02

2.0

51.00

â&#x20AC;&#x201C;0.23

2.3

59.05

â&#x20AC;&#x201C;0.34

2.3

35.94

â&#x20AC;&#x201C;0.42

2.7

35.13

â&#x20AC;&#x201C;0.17

1.5

50.46

â&#x20AC;&#x201C;0.16

280.26

0.78

5.6

108.35

â&#x20AC;&#x201C;0.15

0.2

107.37

0.65

2.4

126.68

0.40

1.8

113.29

0.14

1.1

155.59

â&#x20AC;&#x201C;0.33

1.1

135.69

â&#x20AC;&#x201C;0.37

0.6

119.34

â&#x20AC;&#x201C;0.33

0.3

135.24

0.36

1.7

182.14

0.23

1.8

81.83

0.13

1.7

124.40

0.61

2.1

102.64

0.21

1.2

37.90

â&#x20AC;&#x201C;0.05

1.9

3.3

84.39

â&#x20AC;&#x201C;0.08

â&#x20AC;&#x201C;0.1

105.09

â&#x20AC;&#x201C;0.45

0.3

99.33

0.38

2.0

121.93

0.88

2.9

41.93

0.19

0.8

0.17

0.3

36.74

0.03

0.8

28.33

â&#x20AC;&#x201C;0.39

2.3

55.09

0.28

1.7

54.21

0.39

1.8

199.51

0.38

1.0

111.75

â&#x20AC;&#x201C;0.74

2.0

305.45

â&#x20AC;&#x201C;0.09

1.2

227.21

0.36

1.6

86.35

0.10

0.9

49.40

0.73

2.2

48.83

0.31

0.5

113.60

0.90

5.6

22.39

â&#x20AC;&#x201C;3.49

7.0

35.01

1.04

5.0

53.80

â&#x20AC;&#x201C;0.83

2.5

76.76

0.24

1.3

71.94

0.52

0.4

124.42

0.92

2.4

122.34

â&#x20AC;&#x201C;0.21

1.1

86.15

0.50

1.1

37.40

â&#x20AC;&#x201C;0.40

2.4

36.73

â&#x20AC;&#x201C;0.41

2.7

48.70

â&#x20AC;&#x201C;0.49

1.6

45.26

â&#x20AC;&#x201C;0.37

2.4

114.31

0.76

2.5

76.24

0.03

0.6

83.20

â&#x20AC;&#x201C;0.34

0.2

85.81

â&#x20AC;&#x201C;0.50

0.1

104.13

0.38

1.7

134.27

0.26

2.0

98.89

0.12

1.7 2.1

23.42

84.29

0.01

208.61

0.39

1.6

79.49

â&#x20AC;&#x201C;0.11

0.1

79.33

â&#x20AC;&#x201C;0.18

â&#x20AC;&#x201C;0.1

130.65

â&#x20AC;&#x201C;0.14

1.3

80.95

â&#x20AC;&#x201C;0.39

0.2

53.95

â&#x20AC;&#x201C;0.26

â&#x20AC;&#x201C;0.6

46.97

â&#x20AC;&#x201C;0.21

2.4

117.23

0.32

1.7

62.27

0.02

2.1

93.88

0.10

0.9

58.04

0.24

1.1

51.19

1.09

3.3

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | B9

* * * * * *

MARKETS

Dow Just Short of 20000

Goldman Sachsâ&#x20AC;&#x2122;s headquarters. Postelection, its stock is up 35%. gain in more than seven years. The report largely matched investorsâ&#x20AC;&#x2122; expectations, supporting recent optimism about the U.S. economy. Hopes for a higher-growth environment under President-elect Donald Trump have powered a broad stock rally and helped push the dollar to its highest level in 14 years, while also sending government-bond yields up since the November election. The Dow Jones Industrial Average added 64.51 points, or 0.3%, on Friday to 19963.80. The S&P 500 climbed 7.98 points, or 0.4%, to 2276.98, and the Nasdaq Composite added 33.12 points, or 0.6%, to 5521.06 in its fourth consecutive session of gains.

For the week, the Dow advanced 1%, the S&P 500 gained 1.7% and the Nasdaq Composite added 2.6%â&#x20AC;&#x201D;their biggest gains since the week ended Dec. 9. Stocksâ&#x20AC;&#x2122; postelection rally has enjoyed support from more than just hopes for business-friendly policies under the new administration. Earnings for S&P 500 companies rose in the third quarter from a year earlier after five straight quarters of declines, according to FactSet. Gross domestic product, the broadest measure of U.S. economic output, expanded at a 3.5% inflation and seasonally adjusted rate in the third quarter, according to the Commerce Department, its strongest pace in two years. And U.S. crude-oil prices are back above $50 a barrel, easing some pressure on energy companies. On Friday, U.S. crude oil rose 0.4% to $53.99 a barrel. The dollar strengthened and government-bond prices fell. The WSJ Dollar Index, which measures the currency against a basket of 16 others, increased 0.8%. However, the index declined 0.1% for the week, its second consecutive weekly drop, as some of the popular postelection trades have eased recently.

Fridayâ&#x20AC;&#x2122;s Market Action as Told By the Numbers DANIEL ACKER/BLOOMBERG NEWS

The Dow Jones Industrial Average came closer than ever before to 20000 on Friday, rising to within one point of the milestone before shying away late in the session. Stocks got off to a shaky start, with the blue-chip index down 0.3% a few minutes after the opening bell. But as investors assessed the latest jobs data, shares climbed and the Dow reached 19999.63 at 12:43 p.m. EST, their highest level ever. Markets often approach milestones tentatively. â&#x20AC;&#x153;Whether itâ&#x20AC;&#x2122;s an index number or a big round number for an individual stock, stocks sort of tiptoe up to it, then pull back, then make another run,â&#x20AC;? said Jim Tierney, chief investment officer of concentrated U.S. growth at AllianceBernstein Holding LP. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll be happy to get it behind us and get back to fundamentals.â&#x20AC;? Gains tapered off in the afternoon, leaving the Dow short of a new closing record. The S&P 500 and Nasdaq Composite closed at fresh highs after the Labor Department said December job growth slowed from the previous month, while wages posted their biggest annual

MICAH B. RUBIN FOR THE WALL STREET JOURNAL

BY AARON KURILOFF AND GEORGI KANTCHEV

Several attempts: The Dow Jones Industrial Average rose above 19990 in Friday trading 45 times, as measured in one-second ticks. Bank bonanza: Goldman Sachs Group contributed roughly 25 points to the Dowâ&#x20AC;&#x2122;s Friday gain, extending the stockâ&#x20AC;&#x2122;s postelection rally to 35%. Rising tide: The S&P 500 has gone 60 sessions without a daily drop of at least 1%. Low fear: The CBOE Volatility Index fell to 11.32 and has shed 19% since the end of 2016, its second-worst start to a year. Dominant dollar: The WSJ Dollar Index posted its biggest gain since Dec. 15, rising 0.8%. Bearish on bonds: The 10-year Treasury yield rose to 2.417% in its biggest one-day jump since Dec. 15, as prices fell. Record run: The Nasdaq Composite Index closed at its second record in a row. â&#x20AC;&#x201D;WSJ Market Data Group

Oil stockpiles fell in latest report. Here, Cushing, Okla., storage tanks.

Oil Rises on Belief In OPECâ&#x20AC;&#x2122;s Plans BY KEVIN BAXTER AND JENNY W. HSU

Treasury Yields Gain as Wages Improve BY SAM GOLDFARB U.S. government bonds pulled back as the latest jobs report showed solid wage growth, raising the prospect of higher inflation and tighter monetary policy. The U.S. economy added 156,000 new jobs last month. Average hourly earnings for private-sector workers rose 10 cents, or 0.4%, from the prior month, beating expectations and marking the largest annual gain in more than seven years. Wage growth can signal broader inflation, which erodes the fixed returns of bonds and can lead to a faster pace of interest-rate increases from the Federal Reserve. In late-afternoon trading Friday, the yield on the 10year Treasury note was 2.417%, up from 2.348% just before the jobs report was re-

leased and 2.370% late Thursday. Yields rise when bond prices fall. The yield on the two-year Treasury note, which is highly sensitive to the Fedâ&#x20AC;&#x2122;s policy outlook, was 1.190%, compared with 1.154% Thursday. â&#x20AC;&#x153;The focal point of the report should be the story on wages,â&#x20AC;? said Anthony Karydakis, chief economic strategist at Miller Tabak. Even without a change in fiscal policy, â&#x20AC;&#x153;the economy left to its own devices right now suggests that the Fed has good reason to take a close look at the situation in terms of the need for another moveâ&#x20AC;? in rates, he said. Though substantial, the rise in long-term bond yields Friday wasnâ&#x20AC;&#x2122;t enough to offset a large decline Thursday, when investors dialed back on several trades that have been popular since the election. Investors re-

main focused on the political prospects for more expansive fiscal policies out of Washington and already had a fairly positive view of the economy before the jobs report.

The yield on the 10-year Treasury note rose to 2.417% on Friday. Federal-funds futures, which are used to place bets on central-bank policy, showed Friday that investors see a 42% likelihood of a rate increase by the Fedâ&#x20AC;&#x2122;s meeting in May, compared with 35% Thursday, according to CME Group. The chances of the Fed raising rates twice, or by half

a percentage point, by November rose to 54% from 48%. Higher interest rates tend to dilute the value of outstanding bonds, especially those with shorter maturities. The yield on the 10-year note hit 2.6% in mid-December, up from 1.867% on Election Day. But yields have declined in recent weeks, reflecting a sense among investors that the postelection bond selloff may have been overdone. Many investors expect President-elect Donald Trump and a Republican-controlled Congress will increase the budget deficit by cutting taxes and boosting spending on defense and infrastructure. Such policies could diminish the value of outstanding government debt by adding to the supply of bonds and stoking inflation.

Oil prices closed out a fourth consecutive week of gains, as confidence in lower production levels outweighed building oil products in storage. Light, sweet crude for February delivery settled up 23 cents, or 0.4%, on Friday at $53.99 a barrel on the New York Mercantile Exchange. Prices fluctuated between gains and losses throughout the day, going as high as $54.32 and as low as $53.46. Brent, the global benchmark, settled up 21 cents, or 0.4%, at $57.10 a barrel. Prices were buoyed by Royal Dutch Shell PLCâ&#x20AC;&#x2122;s decision to close down the 140,000-barrel-a-day Trans-Niger Bonny Light pipeline. The company cited a fire for the shutdown, but the situation highlights the continuing struggle with attacks on Nigeriaâ&#x20AC;&#x2122;s oil infrastructure. â&#x20AC;&#x153;The Nigerian government is reportedly restarting to pay peace allowance to militants. This will probably ease things, but it will take time before world refiners regain confidence about the reliability of Nigerian supplies,â&#x20AC;? said oil analyst Olivier Jakob from Switzerland-based Petromatrix. For the week, U.S. crude and Brent both gained 0.5%. Oil prices had been choppy after the U.S. Energy Information Administration on Thursday reported a significant drawdown of 7.1 million barrels from stockpiles in the

week of Dec. 30 due to lower imports, upending the marketâ&#x20AC;&#x2122;s expectations for an increase or a smaller decrease. However, the large growth in distillates and gasoline stocksâ&#x20AC;&#x201D;of 10.1 million barrels and 8.3 million barrels, respectivelyâ&#x20AC;&#x201D;is considered bearish and a reflection of poor demand, said analysts at SociĂŠtĂŠ GĂŠnĂŠrale. The data also showed U.S. production of crude grew by 4,000 barrels a day in the same week, a figure that is likely to rise in the postholiday period. As U.S. production continues to creep up, members of the Organization of the Petroleum Exporting Countries are starting to pull back on output to meet the 32.5 million barrels-a-day ceiling pledged at the cartelâ&#x20AC;&#x2122;s Nov. 30 meeting. Saudi Arabia, the de facto leader of the cartel, took the lionâ&#x20AC;&#x2122;s share of the cut. The Wall Street Journal reported Thursday the kingdom made good on its pledge by cutting its January daily production by 468,000 barrels. â&#x20AC;&#x153;Saudi Aramco has made it clear that it plans to cuts production and this will hopefully convince other producers to fully comply with the promised cuts,â&#x20AC;? said Edward Bell, an analyst from the Dubaibased Emirates NBD bank. Gasoline futures settled down 0.2% at $1.6340 a gallon and diesel futures settled up 0.5% at $1.7032 a gallon. â&#x20AC;&#x201D;Stephanie Yang contributed to this article.

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B10 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

* ***

MARKETS

China Doubles Down on Defense of Yuan Squeeze play by the country’s central bank pushes a key overseas borrowing rate higher BY SAUMYA VAISHAMPAYAN HONG KONG—China continued to squeeze the global market for the yuan Friday, sending the cost of borrowing the currency in overseas markets soaring to near a record. Investors and analysts say the nosebleed rates are likely to continue as China’s central bank battles to keep the country’s currency from weakening too far and fast. The rate that banks charge each other in Hong Kong’s overnight lending market for the yuan jumped to 61.3% on Friday, the highest in a year and the second-highest level on record. That rate was 38.3% on Thursday and has remained above 10% since Dec. 30. Although that offshore yuan-lending rate isn’t set by the People’s Bank of China, the central bank can effectively control it by directing state lenders to withhold yuan from other banks, something it has been doing recently. The PBOC also set its daily “fix”—the price that determines the yuan’s trading range in the domestic market—0.9% stronger against the U.S. dollar on Friday, its biggest increase since 2005, when the bank surprised markets by removing its dollar peg. Despite those moves, the yuan weakened Friday both onshore and off, falling 0.6% to 6.9230 versus the dollar in the domestic market and 1% to 6.8578 in late trading in Hong Kong. That eroded some of the yuan’s sharp appreciation from earlier in the week, when the currency jumped 2.5% against the dollar in two days on the PBOC’s steps to tighten liquidity offshore. One of the primary targets

Email: heard@wsj.com

Turbulence China’s yuan opened 2017 on a volatile note. The currency completed its largest-ever two-day gain Thursday amid a short-selling crackdown that pushed up Hibor rates before retreating Friday. Investors are keenly watching coming data on capital outﬂows and reserve levels for signs of where the yuan might go next. 5.5 yuan IMF says yuan is fairly valued

How many yuan one dollar buys

6.0

Yuan whipsaws amid crackdown on short-selling

Yuan declines help fuel global market rout

IMF adds yuan to reserve currency basket

6.5 China devalues yuan by 2%, largest daily move in decades

7.0

Donald Trump in speech calls China a currency manipulator

Friday 6.919 yuan

Scale inverted to show weakening yuan

7.5 2014

’15

Overnight yuan Hibor rate* 80% Friday 61%

’16

’17

China’s foreign-exchange reserves

China’s net capital outﬂows

$5 trillion

$100 billion Nov. $3.1 trillion

–50

–100

–20

0 2016

’17

Nov. –$60.5 billion

–150 2014

’15

’16

2014

’15

’16

*Hong Kong Interbank Offered Rate, measuring bank lending rates in yuan. Rising rates make betting against the yuan costlier.

THE WALL STREET JOURNAL.

Sources: Tullett Prebon (exchange rate); Thomson Reuters (Hibor); Institute for International Finance (forex reserves, capital outﬂows)

of the PBOC’s moves is investors trying to bet on a decline in the yuan by borrowing the currency in Hong Kong, swapping it for dollars and later swapping it back at a more favorable rate. That trade becomes more expensive as yuan borrowing costs rise, which can force investors to abandon those bets by buying back yuan, in turn driving the currency higher. “It’s super painful to hold short positions in [the yuan] when the funding costs are soaring as they are at the moment,” says Christoffer Moltke-Leth, director of global sales trading at Saxo Capital Markets in Singapore.

However, some investors say Chinese officials could also be anxious about the country’s foreign-exchange reserves, which have been falling as the central bank taps them to defend its currency. The reserves are just above $3 trillion, and investors say a fall below that level Saturday—when December’s figures are set to be disclosed—could spark more volatility in the yuan. Some traders say the central bank also has an incentive to stem the yuan’s decline in the days leading up to the Jan. 20 inauguration of U.S. President-elect Donald Trump, who has accused China of keeping

its currency too cheap. Another milestone is an exchange rate of 7.0 yuan to the dollar, which would be the lowest level since mid-2008, and a potential trigger for more investors to dump the currency, market watchers say. The yuan approached that level earlier this week. “Our impression is that the PBOC is very sensitive about the key 7.0 level for the yuan,” says Liu Weiming, chief investment officer at Fu Xi Investment Management Pte. Ltd. “You could say that the latest intervention in Hong Kong was mostly about defending that level. Once 7 is broken, people will expect 8

and it will get even worse.” Although the PBOC has kept the currency stronger than 7.0 yuan to the dollar for now, many market watchers say a weaker level is inevitable. Contracts to buy the currency in a year’s time suggest that investors expect an exchange rate of 7.1975 yuan to the dollar at that time. While that rate has come down this week, implying a stronger yuan, it hasn’t fallen below 7.0 since mid-November. That means the PBOC will likely continue to tighten offshore liquidity and send investors running out of negative yuan bets in the next few weeks.

FINANCIAL ANALYSIS & COMMENTARY

store to see whether low inventory has helped retailers avoid discounting. Those that have offered business updates so far shed some light on the best way to interpret our pricing data and the potential read-across for the industry. They also highlight why discounting, in and of itself, isn’t necessarily a bad sign. Gap’s successful December was driven primarily by 12% growth at Old Navy, not part of our pricing experiment. But the Gap brand also posted 1% growth. We had been focusing on the frequent storewide discounts at Gap, but these were likely planned promotions. The Gap brand was more promotional than the previous year during the period from Dec. 8 to 12, according to data collected by Instinet. But its promotions later in the month weren’t measurably

more aggressive than in 2015. Moreover, the discounting seems to have at least partly achieved its intended goal. After our final visit Tuesday, Gap had sold out of two of the five items we were tracking—more than any of the other retailers. Gap did a decent job unloading giftable items and cold-weather gear. Macy’s said weakness in handbags and watches was responsible for its sales miss. Pricing for the Michael Kors handbag we were tracking varied wildly throughout the six-week period, swinging from 50%-off to full price and then falling again. The bag has been selling for at least 25%-off for the past three weeks. Penney said Friday its same-store sales fell a worsethan-expected 0.8% in November and December. While its constant discounts were

likely planned promotions, lower prices post-Christmas on the sweater and the slippers may have indicated some excess supply. What does this all mean for Ralph Lauren? It isn’t a good sign that the leather pants and the parka were marked down this past week at Ralph Lauren. And the reappearance of the scarf, which appeared to be sold out the previous week, suggests Ralph Lauren didn’t do so well with giftable items. But its 30%-off everything sale, which ran for two weeks, probably shouldn’t be a warning sign. And shares of Ralph Lauren are down 17% over the past month, suggesting a lot of bad news may already be priced in. There could be more retail surprises in store for investors expecting the worst. —Miriam Gottfried

Price Check None

1%–29%

WSJ.com/Heard

In-store changes from original prices 30%–39%

40%–49% 50%–70% Nov. Dec. Dec. 29 6 13

Wavy cable-knit sweater -30% Pendleton fringe scarf -40 2-in-1 hooded parka -30 Camo slim-ﬁt utility pants† Crazy stripe utility tote

GAP

Lee curvy-ﬁt pants -30 J.C. PENNEY* IsotonergloveswithSmarTouch Liz Claiborne puffer vest** -50 St. John's Bay cable-knit sweater -44 Dearfoams memory foam slippers -43 Michael Kors ‘Selma’ satchel -25 Calvin Klein striped lace-up sweater Tommy Hilﬁger ‘Graham’ corduroy pants Burberry emerald check cashmere scarf Fossil Q Wander stainless steel smartwatch -13

MACY'S

QILAI SHEN/BLOOMBERG NEWS

The influence of global financial markets is harder for China to control. depreciation were dashed. For months, as Beijing guided its currency weaker onshore, no panic ensued. Investors increasingly pushed

the offshore currency weaker, testing the limits of Beijing’s appetite for a weak yuan. As it reached a point beyond Beijing’s comfort, the govern-

ment stepped in. And as the U.S. Federal Reserve caught investors off guard with minutes of its latest meeting, the U.S. dollar weakened and the yuan’s move spiraled. So, here we are, once again in tenuous territory. Beijing’s efforts to manage optics may go in vain. Take the largely arbitrary, but apparently trade-weighted, central-bank currency basket. To lessen the blow from swings in global currencies, Beijing took to watering down volatile, major currencies since they have the largest impact. The trouble is, it seems to have overlooked the basket in recent days. Global forces are now far more painful to deal with as China attempts to open up its markets. Tighter U.S. policy, as well as a weak euro and yen, have made sticking to promises of currency-basket man-

Sold out Dec. Dec. Jan. 20 27 3

-40% -70 -40 -40

-58 % -58% -58 % -58 % -70 -40 -50 -58 -40 -50 -40 -50

-30 -50 -50 -44 -43

-30 -50 -50 -50 -43

-50 -30 -30

-30

-25

-30 -50 -50 -50 -70

-30 -50

-25

-48

-25

-28

-30

-19

Black leather straight pant Rib-knit ragg scarf Wafﬂe-knit cashmere sweater

-30

-51

-30 -30

-58 -70

-25

RALPH Reddownparkawithfauxfurhood LAUREN Black faux fur hat -30

-52 -51 -30

-30

*Additional 25% off all items with coupon on Dec. 6 †Buy one, get one at 50% off on Nov. 29 **Buy one, get one 50% off on Jan. 3 Source: the retailers THE WALL STREET JOURNAL.

Why Beijing’s Grip on Yuan Is Becoming Tenuous Even a slight loss of currency control to markets is still not within Beijing’s reality. After spending a year trying to communicate with markets about its currencymanagement process, Beijing is resorting to what it knows best: clamping down. The battle will only get tougher. Beijing is now finding that the influence of global financial markets within its own markets is bigger and harder to control than before. In a reverse déjà vu of sorts, China’s yuan traded freely offshore unexpectedly appreciated swiftly this week and offshore borrowing costs surged to more than 60%. Exactly a year ago, the currency fell sharply as borrowing costs surged to similar levels. As a resurgent dollar gave way to emerging-market currencies this week, China’s hopes for an orderly

The dollar jumped after the December U.S. jobs report showed a slowdown in hiring but the strongest wage growth since 2009. The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.8%, to 92.81. Though the Labor Department’s report on Friday showed that overall hiring was slower than expected, annual wages increased at the fastest pace in more than seven years. “What matters most right now is the pickup in the wage numbers,” said Mark McCormick, North American head of foreign-exchange strategy at TD Securities. “It fits into this narrative that inflation is starting to accelerate. This, added with fiscal stimulus coming, provides more legs for the dollar in the first quarter.” Wage growth has been sluggish throughout the economic recovery even as other indicators of labor-market health have rebounded strongly. Investors believe steady wage growth helps to drive prices and inflation higher, which supports the case for the Federal Reserve to raise interest rates. Higher rates typically boost the dollar by making the currency more attractive to yield-seeking investors. The dollar was broadly stronger against emergingmarket currencies, which are often pressured by higher U.S. rates. But the greenback fell against the Mexican peso as the Mexican central bank again intervened to support its currency. —Chelsey Dulaney

HEARD ON THE STREET

Some Retailers Had Holiday Cheer

It is already clear that the fourth quarter will be rough for many retailers, but there are some notable countercurrents running beneath the broader negative narrative. Shares of several companies tumbled Thursday after disappointing holiday-sales reports from Macy’s, Kohl’s and L Brands. The news wasn’t all bad. Gap said late Thursday that comparable sales rose in November and December and were up a better-than-expected 4% for December alone. That helped retail stocks recover some lost ground on Friday. The results came just a few days after Heard on the Street paid its sixth and final visit to bricks-and-mortar locations for four retailers— Macy’s, J.C. Penney, Ralph Lauren and Gap. We have been tracking prices on a basket of five items at each

Dollar Receives A Boost From Jobs Report

agement difficult. Swift depreciation of large trading partners’ currencies poses an obstacle to economic growth. As is well-documented, a stronger dollar has drawn billions of dollars out of the country, and encouraged the hoarding of foreign-currency assets. That has made conducting monetary policy at home in China more about risk control than maintaining economic growth, further diminishing Beijing’s ability to control the yuan’s rapid descent. Investors shouldn’t misunderstand this as a prolonged reversal of the yuan’s path weaker; it is merely a pit stop. Just like an interest-rate rise in the U.S. exacerbated pain in China’s stumbling bond and money markets, a stronger dollar will only serve to double the pain in China’s currency battle. —Anjani Trivedi

OVERHEARD In the category of “careful what you wish for,” Crispin Odey is surely a poster child for 2016. The British hedgefund manager was one of the most prominent British backers of Brexit. Having conducted his own private poll ahead of the referendum, he wasn’t caught off guard and his fund reportedly made handsome gains afterward. Unfortunately for Mr. Odey, the wave of populism unleashed by the surprise victory washed across the Atlantic, propelling Donald Trump into office and sending some financial assets soaring. That slammed the bearish manager. His fund suffered a crushing 49.5% loss for the full year, according to people familiar with his results, its worst ever annual loss.

Jailed in Turkey: A Journal reporter held for days without outside contact

A biography calls Wilson Pickett the leader of a musical generation

BOOKS

CULTURE

SCIENCE

HUMOR

POLITICS

LANGUAGE

THE WALL STREET JOURNAL.

* * * *

TECHNOLOGY

ART

IDEAS

Saturday/Sunday, January 7 - 8, 2017 | C1

ILLUSTRATION BY DOUG CHAYKA

COMMERCE

BY GREG IP

ATE ON A Sunday evening a little more than a year ago, Marine Le Pen took the stage in a depressed working-class town in northern France. She had just lost an election for the region’s top office, but the leader of France’s anti-immigrant, anti-euro National Front did not deliver a concession speech. Instead, Ms. Le Pen proclaimed a new ideological struggle. “Now, the dividing line is not between left and right but globalists and patriots,” she declared, with a gigantic French flag draped behind her. Globalists, she charged, want France to be subsumed in a vast, worldencircling “magma.” She and other patriots, by contrast, were determined to retain the nation-state as the “protective space” for French citizens. Ms. Le Pen’s remarks foreshadowed the tectonic forces that would shake the world in 2016. The British vote to leave the European Union in June and the election of Donald Trump as U.S. president in November were not about whether government should be smaller but whether the nation-state still mattered. Ms. Le Pen now has a shot at winning France’s presidential elections this spring, which could imperil the already reeling EU and its common currency. Supporters of these disparate movements are protesting not just globalization—the process whereby goods, capital and people move ever more freely across borders—but globalism, the mind-set that globalization is natural and good, that global governance should expand as national sovereignty contracts. The new nationalist surge has startled establishment parties in part because they don’t see globalism as an ideology. How could it be, when it is shared across the traditional left-right spectrum by the likes of Hillary Clinton, Tony Blair, George W. Bush and David Cameron?

WE ARE NOT THE WORLD From Brexit to Trump to nationalist parties across Europe, the old divide between left and right is giving way to a battle between confounded globalists and self-styled patriots. But globalism is an ideology, and its struggle with nationalism will shape the coming era much as the struggle between conservatives and liberals has shaped the last. That, at least, is how the new nationalists see it. After successfully pressuring Carrier Corp. to keep in Indiana

about half of the 2,100 jobs that the firm had planned to move to Mexico, Mr. Trump told a rally last month, “There is no global anthem, no global currency, no certificate of global citizenship. From now on, it’s going to be ‘America First.’ ” In the 1930s, nationalists were also expansionists who coveted other countries’ territory. Today, Mr. Trump and his ideological allies mostly want to reassert control over their own countries. Their targets are such global structures as the EU, the World Trade Organization, NATO, the U.N. and the North American Free Trade Agreement. Little unites the new nationalists other than their shared antipathy toward globalism. Mr. Trump’s economic program is as far to the right as Ms. Le Pen’s is to the left. Nor do they have credible plans for replacing the institutions of globalization that they want to tear down, as Britain’s confused exit from the EU demonstrates. But globalists would be wise to face their own shortcomings. They have underestimated the collateral damage that breakneck globalization has inflicted on ordinary workers, placed too much weight on the strategic advantages of trade and dismissed too readily the value that many ordinary citizens still attach to national borders and cultural cohesion. Globalism’s early roots are found in basic economics: Just as two people are better off specializing and then trading with each other, so are two cities and two countries. “All trade, whether foreign or domestic, is beneficial,” the British economist David Ricardo wrote in 1817. Please turn to the next page

Globalism is an ideology, and its struggle with nationalism will shape the coming decade.

INSIDE

MY WEEK A justice of the Texas Supreme Court may be ‘the tweetingest judge in America.’ C4

WEEKEND CONFIDENTIAL Psychiatrist Charles Marmar on the surprising extent of PTSD and new treatments. C11

EXHIBIT Package deal: A new book showcases winning designs for consumer goods. C12

BOOKS Why parents talk to children (‘Good job!’) in a language of compliance and control. C3

ESSAY The 17th-century roots of the gulag: a new history of exile in Siberia under the czars. C5

C2 | Saturday/Sunday, January 7 - 8, 2017

* ***

THE WALL STREET JOURNAL.

REVIEW

Globalism on the Defensive

What You Just Forgot May Only Be ‘Sleeping’ IF YOU have ever forgotten why you just entered a room, you know how fickle memory can be. One moment it’s obvious why you walked down the hall, and the next moment you’re standing there befuddled. Here today, gone in a millisecond. At least that is how we used to think about shortterm, or working, memory. But a study just published in the journal Science tells a different story. A recent idea or word that you’re trying to recall has not, in fact, gone AWOL, as we previously thought. According to new brain-decoding techniques, it is just sleeping. “Earlier experiments show that a neural representation of a word disappeared,” said the study’s lead author, Brad Postle, a professor of psychology and psychiatry at the University of Wisconsin-Madison. But by using a trio of cutting-edge techniques, Dr. Postle and his team have revealed just where the neural trace of that word is held until it can be cued up again. Their study amends the longstanding view of how memory works. Until now, psychologists thought that short-term memory evaporates when you stop thinking about something, while long-term memory permanently rewires neural connections. The new research reveals a neural signature for a third type of memory: behind-the-scenes thoughts that are warehoused in the brain. In the study’s four experiments, a total of 65 students viewed a pair of images—some combination of a word, a face or a cloud of moving dots—on a screen. During a 10-second period, the students were prompted to think about one of the two images they had seen. After a brief delay, they had to confirm whether a picture they saw matched one of the first two images. Throughout the experiment, the Postle team monitored the students’ pattern of neural activity. When they prompted the students to remember a particular image, a unique 3-D display of neural activity corresponding to that idea popped up. What really interested the experimenters, though, was what the brain was doing with the image it had effectively set aside. Where did that memory go while it was waiting in the wings? To find out, the team used a new technique to see what happened when the participants were warned that they would be tested on the set-aside image. This novel approach created a dynamic 3-D display of electroencephalogram (brain wave) and brain-imaging data that let the researchers see beyond what part of the brain “lights up” and zoom in on the pattern of activity within a region. That is how the team learned that the students’ brain activity had indeed shifted to the “on hold” image’s distinctive pattern— which until then had been invisible. To confirm that the memory still existed even while a person wasn't thinking about it, the scientists used another recent technique, transcranial magnetic stimulation, or TMS. They positioned a wand over a participant’s scalp and delivered a harmless magnetic pulse to the brain areas that held the images. The pulse made the distinctive neural signature of those fleeting memories visible to the scientists and triggered their recall in the students. Dr. Postle compared working memory to paper inscribed with invisible ink. Words written in lemon juice are initially imperceptible, but by passing a hot cup of coffee over the paper, “you can see the part of the message that was heated up…Our TMS is like the coffee cup.” In this way, the team activated a memory that was not only temporary but below the student’s level of consciousness. Using Dr. Postle’s new trifecta of brain-imaging and brain-stimulation techniques to reactivate forgotten memories has enticing—though still remote—therapeutic possibilities. It is neuroscience’s most faithful reading yet of the real-time content of our thoughts—about as close as we have ever come to mind-reading. “Our study suggests that there’s information in the penumbra of our awareness. We are not aware that it’s there, but it’s potentially accessible,” said Dr. Postle.

TOMASZ WALENTA

This may be the closest we have come to mindreading.

FROM TOP: PASCAL ROSSIGNOL/REUTERS; CARLO ALLEGRI/REUTERS

MIND & MATTER: SUSAN PINKER

versions of national identity and mistrust global institutions such Continued from the prior page Britain presided over the first great age of globalization, from the as the EU. A 2016 study by Ronald Inglehart of the University of mid-1800s to 1914. Its leaders were not self-consciously globalist. Michigan and Pippa Norris of Harvard University analyzed party They adopted free trade and the gold standard purely for domestic manifestos in 13 Western democracies and found that in the 1980s, benefit. economic issues such as taxes and welfare became less important After World War II, the logic of globalism shifted beyond trade than noneconomic issues such as immigration, terrorism, abortion to grand strategy. By ceding modest amounts of sovereignty to inand gay rights. ternational institutions, a country could make the world, and itself, In July 2016, two scholars at the London School of Economics far stronger than by pursuing its own narrowly defined interests. found that rising unemployment didn’t make British regions more “If the nations can agree to observe a code of good conduct in interlikely to vote to leave the EU, but a growing migrant population did. national trade, they will cooperate more readily in other internaThese voters were bothered less by competition from immigrants tional affairs,” President Harry Truman said in 1947. than by their perceived effect on the country’s linguistic, religious Truman and the other founders of the postwar order saw ecoand cultural norms. nomic and geopolitical self-interest as inseparable: The U.S. opened One of the first to exploit such cultural resentments was Jeanits wallet and its markets to its allies to hold back Soviet commuMarie Le Pen, the founder of the National Front, who frequently denism. In 1957, six European countries signed the Treaty of Rome, cried mondialisme in xenophobic terms. After his daughter Marine creating what would become the EU, hoping that economic and potook over the party in 2011, she threw him out because his anti-Selitical integration would make war unthinkable. mitic outbursts were repelling mainstream French voters. For decades, trade, industrialization and demographics produced In 2014, Steve Bannon—Mr. Trump’s top strategist and the fora virtuous circle of rising prosperity. By the 1990s, trade barriers mer leader of Breitbart News, a fiery conservative site that is had already dropped so much that the gains from trade were now fiercely opposed to immigration and multiculturalism—acknowlsmaller and more concentrated. Between 1987 and 2008, total U.S. edged that Ms. Le Pen’s National Front and its British counterpart, wages adjusted for inflation rose by 53%, while the profits that U.S. the UK Independence Party, “bring a lot of baggage, both ethnically companies earned abroad soared by 347%. Still, the strategic beneand racially.” Nonetheless, Mr. Bannon saw them as fellow travelers. fits of trade remained alluring: President Bill Clinton signed Nafta He said, “The working men and women in the world…are just tired in 1993 in part to embed a pro-American government in Mexico, and of being dictated to by what we call the party of Davos.” the EU moved after the Cold War to admit former Soviet satellites Indeed, one 2012 study found that Europeans’ opposition to immito solidify their democracies and draw them out of Russia’s orbit. gration was driven less by pocketbook concerns than by worries By the 2000s, globalism was triumphant. The World Economic about how changes to “the composition of the local population” Forum had evolved from a cozy management-oriented workshop in would affect “their neighborhoods, schools and workplaces.” The last the Swiss town of Davos to an extravagant summit for elites. The big U.S. backlash against immigration came during the Roaring Twenlate political scientist Samuel Huntington applied the caustic label ties, the last time that the foreign-born share of the population stood “Davos man” to those who see “national boundaries as obstacles as high as it is today, at 13%. that thankfully are vanishing.” For globalists, this was a badge of Which raises the most troubling question of the emerging globalhonor, symbolizing not just an outlook but a lifestyle of first-class ist-nationalist divide: Is the new nationalism a cloak for ethnic and departure lounges, smartphones and stock options. religious exclusion? Nationalist leaders insist that it isn’t. Ms. Le Pen, This is also when globalists overreached. In 2000, Mr. Clinton for example, says that she is merely defending France’s secular charblessed China’s entry into the WTO. Echoing Truman, he predicted acter when she criticizes overt displays of Islamic observance, disChina’s membership was “likely to have a profound impact on hutancing herself from her plainly xenophobic father. Mr. Trump says man rights and political liberty.” that struggling Latino and African-American workers are victims of It didn’t. China adhered to the letter of its WTO obligations while cheap foreign labor just as much as Rust Belt whites. systematically violating their spirit with discrimination against forYet the new nationalism often thrives on xenophobia. Mr. Trump eign investors and products and an artificially cheap currency. A has been criticizing free trade since the 1980s, but his candidacy wave of Chinese imports wiped out 2 million American jobs, accordtook off when he started attacking Mexican immigrants and Musing to one widely cited 2016 study, with no equivalent boom in U.S. lims. American Jewish groups heard unsettling echoes of anti-Sejobs linked to exports to China. Meanwhile, China became more remitic conspiracy theories when Mr. Trump accused Mrs. Clinton of pressive at home and antagonistic abroad. By behaving quite differmeeting “in secret with international banks to plot the destruction ently from other members of the of U.S. sovereignty.” Germany’s global trading club, China has unAlternative for Germany started dermined support for it. as an anti-euro party, but as an Globalists in Europe also overinflux of Middle Eastern refureached. In 1999, 11 EU members gees and migrants has stoked joined the euro, the crowning worries about crime and terrorachievement of European unity. ism, the party’s focus on Islam Economists warned that Italy, (which its manifesto declared Spain and Greece couldn’t compete “not a part of Germany”) and with Germany without the safety its popular support have both valve of letting national currencies jumped. periodically devalue to offset their In short, there is ample reafaster-rising costs. Sure enough, son for skepticism about their trade deficits ballooned, but whether the new nationalists low-cost euro loans at first made can prove themselves a genuthem easy to finance. The loans inely secular, democratic alMARINE LE PEN, leader of France’s National Front, Nov. 2015. proved unsustainable, and the reternative to globalism. sulting crisis has still not run its If globalists are to regain the course. One result: In Italy, the populist 5 Star Movement, which is public’s trust, they will need to re-examine their own policies. The jostling for first place in the polls, has promised a nonbinding referdislocation caused by past globalization casts doubt on the wisdom endum on membership in the euro. of prescribing more. That globalization’s winners can compensate Chinese and German trade surpluses could wreak havoc thanks its losers makes impeccable economic logic, but it rings hollow to expanding cross-border finance. To globalists, its growth was as among those too old to retrain or move. Political capital might be inexorable as that of trade. In early 2008, President George W. better invested in preserving existing trade pacts, not passing new Bush’s treasury secretary, Henry Paulson, put out a report arguing ones. And trade pacts may be a less effective bulwark against China that globalization had made much of U.S. financial regulation obsothan military cooperation with those worried about Chinese aggreslete. The priority was to maintain “American preeminence in the sion. global capital markets.” Those same capital markets soon tipped the Many European globalists blame the euro’s crisis on too little inworld into its worst financial crisis since the 1930s. tegration, not too much. But pressing for a more federal Europe That crisis has woken up globalists to the flaws of globalization. could further alienate voters who “do not share our Euro-enthusiYet their faith in open borders remains unshaken. President Barack asm,” warned Donald Tusk, the former prime minister of Poland Obama entered office as a free-trade skeptic, but he soon threw his who is now president of the European Council, last May. “Disilluenergy into negotiating the 12-nation Trans-Pacific Partnership. sioned with the great visions of the future, they demand that we The pact’s anticipated economic benefits for the U.S. were modest, cope with the present reality.” but its strategic aims were sweeping: The U.S. would forge a proAbove all, globalists should not equate concern for cultural America, pro-trade order in Asia rather than let a rising China norms and national borders with xenophobia. Large majorities of dominate the region. With Mr. Trump’s win, the accord is now preAmericans, for example, welcome immigrants so long as they adopt sumed to be dead. American values, learn English, bring useful skills and wait their Globalists were blind to the nationalist backlash in part because turn. Australia’s low tolerance for illegal immigration helps to maintheir world—entrepreneurial, university-educated, ethnically ditain public support for high levels of legal entrants. verse, urban and coastal—has thrived as whiter, less-educated hin“We’ve created this false dichotomy that if you’re not for open terlands have stagnated. Similar splits separate London from the borders, you’re racist,” says Avik Roy, president of the conservative rest of England and the EU’s capital cities from the countryside of Foundation for Research on Equal Opportunity and a former adviser continental Europe. to Republican presidential candidates. “There is some sort of middle Many globalists now assume that the discontent is largely driven ground between a nationalist and globalist approach,” Mr. Roy arby stagnant wages and inequality. If people are upset about immigues. gration, they reason, it is largely because they fear competition with Even as committed a globalist as Mr. Obama has come to aclow-wage workers. knowledge this. Democrats, he told Rolling Stone the day after the In fact, much of the backlash against immigration (and globalism) election, must recognize that “for the majority of the American peois not economic but cultural: Many people still care about their own ple, borders mean something.”

REPUBLICAN presidential nominee Donald Trump at a campaign rally featuring his ‘America First’ slogan, Warren, Mich., Oct. 31, 2016.

THE WALL STREET JOURNAL.

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Saturday/Sunday, January 7 - 8, 2017 | C3

REVIEW

Detained in Turkey

SEEMA JILANI

A REPORTER’S STORY

BY DION NISSENBAUM THE KNOCK on the door of our third-floor apartment, not far from Istanbul’s historic Taksim Square, came shortly after dusk on Dec. 27. Three plainclothes Turkish policemen stood by the winding marble staircase in the hall with a letter, under orders from the Interior Ministry. “You are under investigation,” a polite young officer told me (through a translator he’d called on his cellphone) as my wife and 7-month-old daughter looked on. “You are going to be deported, so pack a bag. We don’t know how long this is going to take.” In the 14 months that I’d been based in Istanbul as a correspondent for The Wall Street Journal, I had covered a dizzying series of events, including the failed July 2016 coup against President Recep Tayyip Erdogan. We were preparing to move back to Washington in early January. But I knew that a visit from Turkish police was an ominous development. More than 80 Turkish writers, journalists and editors are now behind bars under the country’s counterterrorism laws, which have grown more expansive since the coup. Turkey has sent high-profile journalists to maximumsecurity prison and shuttered more than 140 media outlets since the failed coup. Turkish authorities say that journalists often cross the line into promoting terrorist propaganda in stories about Turkey’s fight against Kurdish separatists or its campaign against those accused of links to the alleged coup plotters. My own case seems to have been in reaction to a tweet. Three days before Christmas, Islamic State released a gruesome 19-minute video that showed two men whom the jihadist group said were captured Turkish soldiers

being burned to death. It instantly struck me as major news, likely to trigger a storm of outrage in Turkey. As I began to report on it, I retweeted a still image from the video that showed the shackled men in their military fatigues as the flames crept toward them. My retweet set off a torrent of Twitter rage. “Do not forget this son of a whore’s face Istanbul,” one man wrote above a screenshot of my profile picture. The editor of a prominent proErdogan newspaper (who has 72,000 Twitter followers) called for me to be deported. Angry Turkish nationalists accused anyone who spread the story of helping to promote Islamic State’s twisted agenda. Within minutes, I undid the retweet, but the damage was done. Mr. Erdogan’s office called the Journal’s Turkey bureau chief, Margaret Coker, to express outrage about my retweet and to warn that there could be consequences. The Turkish government tried to keep the story of the video under wraps and throttled Twitter in Turkey for days to keep it from spreading. (Turkish officials haven’t confirmed if the men killed in the video were Turkish soldiers.) The morning after Islamic State released the video, in a WhatsApp group chat set up by Mr. Erdogan’s office for foreign journalists covering Turkey, someone asked if there were any restrictions on discussing it. “Just one,” the president’s spokesman wrote us. “If you publish the footage or images from the video, there is a good chance we will take action.” “What kind of action?” I asked him in the group.

There was no reply. Four days later came the knock at our door. Once I was in police custody, I expected to be bustled off to the airport and escorted onto the first flight to the U.S. Instead, I was driven to a small detention center 60 miles outside of Istanbul. A police officer took me into a small room, where he ordered me to take off all my clothes. He then methodically searched through my stuff. I was given sweatpants, rubber sandals and a warm, long-sleeved shirt—the uniform worn by many other detainees at the facility. “Can you tell me why I’m here?” I asked again and again in English. “I’d like to call my attorney. I’d like to call my embassy. I’d like to call my wife.” The night manager, who had a sidearm strapped over the vest of his tightfitting three-piece suit, shrugged as he picked through my wallet and scrutinized my press cards. “Tomorrow,” he said with his limited English. “Maybe tomorrow.” A guard led me down to a basement holding cell with no toilet and a small, boardedup window. The concrete walls were peppered with graffiti from past detainees. The only chance for fresh air and natural light came when I had to go to the bathroom. I’d bang on the door until a guard came to escort me upstairs to the squat toilet, with a small window cracked open to let in crisp winter air. I’d take in deep breaths before being escorted back to solitary confinement. That first night, I had no idea whether my colleagues knew where I was. (They didn’t.) The director assured me that my wife knew

I was driven to a small detention center outside of Istanbul.

THE AUTHOR in Istanbul’s Taksim Square, amid proErdogan demonstrators after a coup attempt, July 2016.

that I was OK. (She didn’t.) “You are our guest,” the director told me. “Coffee, tea, whatever you want.” “I want to go home,” I told him. “I want to call my wife.” “Not today,” he said before sending me back to my cell. The Turkish officials told me that my rights to talk to a lawyer, my wife or my embassy were curtailed because I was being held under Turkey’s ongoing state of emergency, which gives Ankara broad authority to hold people for extended periods without outside contact. I asked how long people were usually held at the detention center. “Thirty days,” said one official. “But in your case, I think it will probably be a week.” I told the director that I was ready to be deported and wouldn’t fight the order. “I can’t do anything,” he told me repeatedly. “We are waiting for word from Ankara.” I didn’t know it, but my Journal colleagues—in Istanbul and around the world—had immediately started working to find me and get me released, with support from the U.S. State Department. On Thursday night, I told the deputy director in the three-piece suit that I was losing hope of getting out soon. “Don’t worry,” he told me with a confident smile. “Tomorrow, I think there will be good news. Tonight, rest. Relax. Get a good night’s sleep.” I didn’t want to get my hopes up. But when morning came, he unlocked the deadbolt of my cell and told me that I was being let go. There would be no deportation. I was free. The guards gave me back my clothes, served me some tea and put me in a van. We turned into a gas-station parking lot, where Journal representatives were waiting. We all sped back to Istanbul, where my wife and I spent the next 12 hours frantically packing and preparing for a whirlwind departure from Turkey the next day. We still don’t know why I was detained or released. The Turkish government has yet to officially explain. (Turkish officials didn’t reply to requests for comment for this article.) I may have been rounded up by overzealous investigators; the Interior Ministry says that more than 1,600 people have been arrested for social-media posts in the past six months and that 10,000 more are being investigated. Or the decision may have been made higher up. In any event, I was very lucky. I experienced a small dose of what scores of Turkish journalists face behind bars, where they endure much harsher conditions and far greater risks. While I was locked up, Turkish police also detained Ahmet Sik, one of the country’s leading investigative journalists, who upset the authorities with his own tweets. A Turkish judge also ordered the release of three prominent Turkish writers, including the 70-year-old linguist Necmiye Alpay. She had been held for 132 days. “They take you and throw you in a hole,” the Turkish author Asli Erdogan (who isn’t related to the Turkish president) told journalists after her release. “The difference between jail and outside conditions is gradually narrowing in Turkey,” she added. “There is no guarantee that you will go home today and won’t come back tomorrow.”

THE WRONG WAY TO SPEAK TO CHILDREN PARENTSPEAK—it’s a language that no one sets out to learn but that most of us can’t help speaking. If you have children or work with them—or if you’ve ever talked to a child—you probably speak it too. There may be an infinite number of ways to say something, but the way that American adults talk to kids is often as limited as it is predictable. If our kids are climbing, we implore, “Be careful!” If two toddlers are grabbing the same toy, we tell them, “Share!” When saying goodbye, we ask, “Where’s my kiss?” When they eat broccoli, we exclaim, “Good job!” And so on. We say these things to ensure that our children feel loved, encouraged and secure and also to instill self-control and manners. But how do our good intentions translate? The problem is that at its core, this way of speaking is all about control. We use it to tell our kids what we want them to say (“Say sorry!”); how we want them to feel (“You’re OK!”); what we want them to do (“Behave yourself!”); and what will happen if they don’t (“Do you want a timeout?”). In other words, parentspeak is about compliance—and that often keeps us from understanding the feelings, motivations, thoughts and behavior of our children. Rather than teaching them to communicate and problem solve, we are essentially teaching them to obey. I have been as guilty of defaulting to this way of talking as anyone else. I recall one particular playdate when my daughter, Jules, was 4. We were leaving, and I was chatting with the other mom when I turned to Jules and asked, “Can you thank Beth for having you

GETTY IMAGES

BY JENNIFER LEHR

over?”—as if Jules should have known that our brief silence was her cue to express gratitude. She looked down. “Jules?” I asked more pointedly. “Thank you,” she dutifully mumbled. My heart sank. My sparkling daughter seemed so kowtowed. It was like I was a ventriloquist and Jules, my dummy. I know how I’d feel if my boss said, “Jennifer, can you thank Keith for listening to our presentation?” I’d feel demeaned and resentful, and I imagine Jules felt no different. Essentially, I was teaching her that because she’s young, she’s subject to my control. And

that how I look to others is more important than her dignity. Now I take a wingman approach—I try to have my kids’ backs until they get the hang of modern-day etiquette. If Jules has forgotten to thank someone, I’ll jump in with, “What a gorgeous sweater. Thank you!” Usually, she will follow my lead. But if she doesn’t, I’ll share my concern with her later: “When you didn’t thank Maria, I worried that she thought you didn’t appreciate her gift.” Inevitably, Jules will want to thank Maria and will decide on her own if she should call, send a text with a photo or write an old-fash-

ioned note. My motto: Better late than coerced. While “Can you say thank you?” is a prompt fronting as a question, “Good job!” is even more covert in the way it manipulates children. I realized this one drizzly day at preschool pickup as I watched a fellow mom “good-job” her daughter into wearing a raincoat. It’s a scene familiar to any parent: “Here you go, honey,” Paula said. “No!” Georgia replied adamantly. “I know you can do it, sweetheart.” she said, flashing a warm smile. And on the coat went. “Good job! That’s my girl!” Paula exclaimed proudly. Georgia beamed. Paula wasn’t complimenting Georgia for her ability to put on her jacket; she was praising her cooperation. Praising a child into wearing a raincoat that she doesn’t want to wear seems innocuous enough. But played out time and again, these moments teach a child that how others feel is more important than how she feels. As psychologists like to point out, children who learn to defer to the preferences of grown-ups risk losing touch with their own. We could try instead to ask our children why they don’t want to do something and explain why it’s important to us. Perhaps Georgia was hot from playing and knew that she’d feel uncomfortable in the jacket. Maybe Paula was headed to the market and was afraid that Georgia would get too damp and cold. Once everyone’s reasons are on the table, we can solve a problem together. That is a skill that will serve children better than blind obedience. Ms. Lehr is the author of “Parentspeak,” to be published by Workman on Jan. 10.

C4 | Saturday/Sunday, January 7 - 8, 2017

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THE WALL STREET JOURNAL.

REVIEW WORD ON THE STREET: BEN ZIMMER

R&D: DANIEL AKST

A Solar Panel’s Inside Job

LAST WEEK, when President Barack Obama ordered the State Department to expel 35 Russian officials suspected of being intelligence operatives, the Russians were declared “persona non grata.” Or, to use diplomatic shorthand, they were “PNGed.” “Persona non grata” is Latin for “unwelcome or unacceptable person,” but unlike other classical expressions, it doesn’t actually date back to ancient Rome. In fact, the phrase didn’t come into use until the 19th century, as a “Neo-Latin” invention. The positive version— “persona grata,” or “welcome person”—came first in the 15th century, in official documents of the European courts. A “persona grata” meant someone nominated to a religious position, such as a bishopric, who was considered acceptable to a secular monarch with veto power over the appointment. From ecclesiastical law, “persona grata” moved into diplomacy, where it applied to envoys whom their host countries could veto. According to the Oxford English Dictionary, the negative phrase, “persona non grata,” appeared in German in the 1840s before making its way into English a few decades later. In one example, Secretary of State Thomas F. Bayard wrote to President Grover Cleveland in 1888 to recommend the dismissal of the British ambassador, Lionel Sackville-West, after a letter was made public in which the envoy suggested that Cleveland was pro-British (a damaging charge for Cleveland, who lost his bid for re-election that year). “If by his conduct he renders himself persona non grata, an announcement of the fact may be made to his Government,” Bayard wrote. As “persona non grata” became entrenched in State Department lingo in the 20th century, it got shortened in the telegraphic style of official cables as “PNG.” In 1950, for instance, when an American executive named Robert A. Vogeler was accused of being a spy in communist Hungary, a telegram from Secretary of State Dean Acheson to diplomatic staff instructed that “we shall not withdraw personnel named in Vogeler trial until officially designated PNG.” By 1964, “PNG” had become a verb as well. That year, Secretary of State Dean Rusk sent a cable to the U.S. embassy in

The perils of getting ‘PNGed.’ the Congo about efforts to get American hostages released. Rusk said that Ghana’s president, Kwame Nkrumah, had been considered as an intermediary, but there were fears that his ambassador to the Congo “may be PNGed.” Diplomats aren’t the only ones to be “PNGed”; journalists have also been blacklisted by foreign governments. “The infinitive ‘to PNG’ is not found in any dictionary,” Washington Post correspondent Jim Hoagland observed in a 1972 dispatch from Nairobi, Kenya. “But it recurs constantly in the thoughts of journalists in this part of the world, for it stands for Africa’s most frequently used method of censoring and managing news.” Predictably, it was in Cold War machinations between the U.S. and the Soviet Union, with routine expulsions of operatives on each side, that “PNGing” was most often invoked. An echo of those days could be heard last week when a senior administration official asserted on a press call that “the officials who have been PNGed are Russian intelligence agents.”

PAUL BLOW

‘Get Lost’ in The Lingo of Diplomacy

MY WEEK: DON WILLETT

Judgment Days (and Nights) JUSTICE NEVER SLEEPS if you’re on the Texas Supreme Court. It’s 2:30 a.m. Lightning strikes; thunder booms. It’s pouring, and I’m poring…over legal briefs, prepping for court in a few hours. I’m exhausted—but exhilarated. Serving 27 million Texans spread across 254 counties and two time zones isn’t a job for those who require a lot of sleep. TTT After oral arguments, the justices gather in conference to discuss cases. The lawyers have debated; now it’s our turn. We’re an all-Republican court, but we revel in giveand-take, and our varied work backgrounds sharpen our discussions. (My bull-riding experience comes in surprisingly handy.) TTT I’m metabolically hard-wired for cloistered Supreme Court life, relishing what Oliver Wendell Holmes Jr. called “the secret joy of isolated thought.” I write a lot, and rewrite even more. When writing, I split my time between my chambers and my satellite office: my neighborhood Chick-fil-A. It offers the word-nerd trifecta: I bring Bose headphones; they provide Wi-Fi and waffle fries. But to do my job, I must keep my job. Reelection comes every six years, which explains why I spend so much time on Twitter. If you’re an obscure judge whose name ID hovers between infinitesimal and zilch, it’s political malpractice to neglect social media. I’m probably the tweetingest judge in America, which, admittedly, is like being the tallest Munchkin in Oz. Americans can debate whether the judiciary remains government’s “least dangerous branch” (Hamilton’s description). But “the branch with the costumes” (my daughter’s description) is certainly the least understood. Americans’ constitutional illiteracy is staggering: A 2016 survey by the Annenberg Public Policy Center found that 31% of respondents couldn’t name a single branch of government, and 10% of college graduates think that Judith Sheindlin (aka Judge Judy) sits on the U.S. Supreme Court, according to a survey last year by the American Council of Trustees and Alumni. So I tweet, in part, to boost people’s civic IQ and to demystify and humanize the judi-

ciary. My cardinal rule: no acidic rants on hot-button issues. Just waggish, above-thefray musings (and memes) on the passing scene. TTT My family recently dedicated a scholarship at Widener University Law School in Harrisburg, Pa., honoring my late brother-in-law, U.S. Army Capt. Shane Mahaffee, a Widener alumnus, gone now 10 years. The law was Shane’s wheelhouse. He relished being in the fray—in the courtroom, on the golf course, and on the battlefield. Shane was mortally wounded by an IED while patrolling outside Baghdad in 2006. My 10-year-old son Shane-David, named after his brave uncle, joined me at the podium: “Thank you for honoring my uncle Shane. I never met him, but he inspires me, and I pray he inspires each of you.” TTT My own inspiration, my mother, just turned 86. Widowed young without a highschool diploma, Mom waited tables at the local truck stop. I once calculated that in her 55 years of waitressing, she walked roughly from Earth to the moon—nearly a quartermillion miles, or 85 trips around the perimeter of Texas. Growing up in a trailer in Talty, Texas (population 32—so small that our ZIP Code began with a decimal), I learned that the law is about real people walloped by real problems in the real world. TTT On our hallway table sit six glass jars, two for each of our three children. Exactly 936 pennies are divided between the two jars, each penny representing a week of life from birth until age 18. The left-side jars contain the pennies (and weeks) yet to come; the right-side jars contain those already gone. Every Sunday, my wife moves three pennies from left to right—each clink a deafening reminder to savor every irreplaceable moment. In parenting as in judging, the days are long, but the years are short.

Life as ‘the tweetingest judge in America.’

Mr. Willett is a justice on the Texas Supreme Court. He tweets as @JusticeWillett.

IMPLANTABLE MEDICAL DEVICES save lives, but the devices usually depend on batteries. And batteries don’t last forever. Patients who live long enough eventually need another implant procedure because the battery in the original device will have run down. These procedures entail some risk, however small, not to mention medical bills, anxiety and inconvenience. The batteries are also relatively bulky, resulting in larger devices. Now scientists in Switzerland have developed a prototype for an implantable solar panel that, in tests outside the human body, soaked up enough sun through a skinlike filter to power a cardiac pacemaker with ease. Previously, the Swiss team implanted solarpowered pacemakers in pigs, whose skin has optical qualities comparable to those of human skin. This time, the scientists wanted to see how much power their prototype would produce when used by people in something like real life. The device isn’t ready to be implanted in humans, so they used specially coated glass filters to stably emulate the light-transmitting properties of skin. These filters were placed atop a small rectangular solar panel. The team tested the panels by mounting them on arm bands on 32 volunteers. Participants wore the device on a bicep for a week (from morning to bedtime) in summer, autumn and winter. The volunteers, who kept a log of their daily activities and the weather conditions, wore the device outside their clothes, covering it up anytime their neck would be covered. The scientists consider the neck a likely place for a solar implant; power would reach the pacemaker through a simple wire inside the body. The result? Daily life in Switzerland, not an especially sunny place, produced plenty of power. Participants generated more power on sunny days even when they stayed indoors (windows let in a lot of light). And the volunteers age 65 or older—the group likeliest to need a pacemaker—generated the most power. The scientists didn’t track outdoor time by age, but they think that the elderly participants, who were retired, had more time to be outside during daylight. Fortunately, implantable devices don’t need much electricity. Andreas Haeberlin, one of the researchers, says that cardiac pacemakers, the most common powered implants, typically require just 10 microwatts. This is so little (a microwatt is a millionth of a watt) that the necessary energy could come from artificial light, much as some computer keyboards are powered by ambient light in an office. Even a flashlight could do the trick, he says. The solar-energy implant that he and his team envision also would include an “accumulator” of some kind—a tiny battery or capacitor—to store power for use during periods of darkness and to issue an alarm when energy reserves fall below a threshold. In real-world use, says Dr. Haeberlin, a physician and biomedical engineer at the University of Bern, an implantable solar panel would be thin enough (about the thickness of a dime) to be flexible and therefore probably not noticeable. The scientists hope that solar implants can reduce the number of pacemaker procedures prompted by battery depletion. Theoretically, a solar implant could power a medical device indefinitely. “Energy Harvesting by Subcutaneous Solar Cells: A Long-Term Study on Achievable Energy Output,” Lukas Bereuter, Andreas Haeberlin and colleagues, Annals of Biomedical Engineering (Jan. 3)

A prototype soaked up enough sun to power a cardiac pacemaker.

PHOTO OF THE WEEK Sea Change Revelers enjoy the traditional New Year’s Day dip at Malo-lesBains beach, Dunkirk, France.

Answers to the News Quiz on page C13: 1.A, 2.C, 3.D, 4.B, 5.B, 6.C, 7.C, 8.B, 9.D PHILIPPE HUGUEN/AGENCE FRANCE-PRESSE/GETTY IMAGES

THE LOST CITY OF THE MONKEY GOD C6 | BLOODY DEMOCRACY C7 | AMERICAN TASTES C9 | BEST SELLERS C10

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BOOKS THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | C5

A Prison Without a Roof The Russian exile system was the greatest sustained machine of evil in human history The House of the Dead By Daniel Beer Knopf, 464 pages, $35

IN LATE DECEMBER 1849, in the brief hour of midday winter light, 28 young Russian gentlemen were marched up the steps of a wooden platform in St. Petersburg’s Semyonovsky Square. The platform had been hung with black cloth; the prisoners were given peasant cloaks of white. Soldiers lined the snowy plaza. It took a czarist official half an hour to read out the death sentences. At last a firing squad raised its weapons. And then, hoofbeats muffled in the snow, a young officer came galloping across the square bearing an order of clemency from Czar Nicholas. Stripped of rank and possessions, their clothes swapped for tattered prisoner garb, the convicts were sent off in fetters on carts to Siberia. One of the young men was Fyodor Dostoevsky. With “Crime and Punishment,” “The Brothers Karamazov” and other works, he would inaugurate an extraordinary phenomenon: the glorious contribution to world literature of the Russian exile system, the greatest sustained machine of evil in human history. The system that reached its apotheosis under Stalin in 1937-53 had its origins in the late 17th century. In 1708, the bishop of the city of Tobolsk, western Siberia’s gateway to the penal continent to the east, explained that diseased elements of the body politic had to be excised and discarded “in the same way that we have to remove harmful agents from the body.” For the next 250 years, Siberia, one and a half times the size of western Europe, would be the cesspit for Russia’s human excreta. Penal labor camps would kill at least 12 million exiles in Stalin’s time alone, according to the historian Robert Conquest. The exile system’s czarist heyday in the long 19th century (1801-1917), under the last five Romanov rulers, is the focus of “The House of the Dead: Siberian Exile Under the Tsars,” by British academic Daniel Beer. Mr. Beer’s excellent book will for some time be the definitive work in English on this enormous topic. The members of Dostoevsky’s rebellious circle were romantic socialists partly inspired by the memory of an earlier, more famous and far more

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BY BARTLE BULL

romantic band of true rebels, the Decembrists. Well-bred young officers who mounted an amateurish putsch against Czar Nicholas I in December 1825, the Decembrists earned history’s love with their sincere if foolhardy reformist idealism. It did not hurt their cult that they were followed to Siberia by beautiful wives renouncing forever the soirees of Petersburg. Eventually the Decembrists settled around Lake Baikal to found libraries and establish string quartets long after the czar had cut short their sentences. Mr. Beer devotes 80 pages to a fascinating new account of the Decembrists that soberly delves into their tensions and personal weaknesses and tells of some of their conspiracies, drinking, debts and feuds. More important, Mr. Beer argues persuasively for a direct line between their story and the role played by the exile system in the eventual fall of the czars. The fame and romance of the Decembrists and their wives, argues Mr. Beer, stripped the czars of a “moral authority” they would never recover.

Like much of his book, Mr. Beer’s account of the Decembrists draws extensively on Russian sources—letters, official records, memoirs—never before used by English-language historians. As a result of his work deep in Siberian archives, there is much that is new here. Romanov Russia sent her criminals and political criminals east for two reasons: colonization and punishment. In decent hands, as Australia showed on a much smaller scale, the combination could be enormously successful. In the 19th-century Russian context, it was calamitously flawed. A small portion of those sent east through most of the 19th century were political exiles like Dostoevsky and the Decembrists. The majority were ordinary criminals—thieves, rapists, pimps, murderers, recalcitrant serfs. For these, the theory of czarist Siberia was that Russian society’s worst elements would emerge improved by the bracing atmosphere of the eastern mines. The reformed pickpockets and streetwalkers, newly

self-disciplined and industrious, would then settle down in Siberia as enterprising free peasants, model cogs in an imperial machine struggling to open a vast and rich but challenging continent.

frontier. Whether he was originally a common criminal or an educated “political,” the Siberian prisoner’s “soul remains forever scarred,” as a Polish rebel wrote in a memoir after his return in 1848. Lenin, Trotsky and Stalin were all alumni of this tender school. For most of the period, until the epic building of the trans-Siberian railroad in the 1890s, for the convict to reach his place of punishment involved a year or two of shuffling eastward in rags and irons along the 6,000 miles of the Great Siberian Post Road. Those who survived arrived at their work camps already criminalized to the core. Every woman convict or exile—maybe a quarter of the total over the years— was by now a prostitute, every man either a slave or a master in the barbarizing gangster hierarchy. Then, in the “penal forts” and mining camps, the really hard life would begin. In Stalin’s time, the entire Siberian gulag apparatus served a single purpose: to kill its noncriminal “recidivists” and “Trotskyites” in Please turn to page C6

Most convicts first spent a year shuffling eastward in rags and irons along the 6,000 miles of the Great Siberian Post Road. Instead, the opposite happened. “Reaching home prematurely aged not only in body but also in mind, former exiles would shuffle about their former towns and villages” like ghosts, writes Mr. Beer. The graduates were now “rigorously schooled in the arts of smuggling, pilfering and forgery.” They would all too often bring their new skills to a life of vagrancy, terrorizing the free settlers on the

The Dark Night of the Soul Man By Tony Fletcher Oxford, 302 pages, $27.95

BY DAVID KIRBY

IMAGINE FOR A MOMENT that you’re Sam Moore, half of Sam & Dave, the pyrotechnic pair who topped the charts with songs like “Soul Man” and “Hold On, I’m Coming” and inspired the Blues Brothers franchise starring John Belushi and Dan Aykroyd. It’s 1982, a year since you and Dave Prater broke up, but now you’re touring Europe with true soul royalty: Carla Thomas, Eddie “Knock on Wood” Floyd and the headliner: the spellbinding, volatile Wilson Pickett. In your double-act days, only you and Dave could put on a show to rival Pickett’s, and sure enough, you’re becoming the star of this tour. One night, you’re about to make yourself comfortable in your hotel room when suddenly a jealous Wilson Pickett jumps out of a false ceiling he’s managed to climb into and lands on you. You’re not hurt, but later, after you turn in a sensational performance in Lisbon, an enraged Pickett turns so violent that a Portuguese policeman is stationed in your room all night, pistol aimed at the door. Long before this biography appeared, two things were known about the man rightly dubbed the Wicked Pickett. One is that he recorded three of the most infectious

soul hits ever: “In the Midnight Hour” (which he co-wrote), “Land of 1,000 Dances” and “Mustang Sally.” These songs alone should have prompted at least one biography in the years since his death in 2006, but finding none, Tony Fletcher decided to write this one, digging up enough material to almost justify his claim that Pickett was “not just at the vanguard of his generation” but “effectively was the vanguard.” Music historians may question the appropriateness of Mr. Fletcher’s ital-

He helped other musicians, rehabilitating the talented Bobby Womack, who had been shunned by the musical world for marrying the widow of Sam Cooke too soon after the crooner’s

And he accomplished all this before his 30th birthday. So if Wilson Pickett wasn’t exactly the vanguard of his generation (the same claim might be made for Chuck

A jealous Pickett jumped out of a drop ceiling to attack Sam Moore, his opening act, after a show. ics, but the claim bears examination. Born in rags in the Jim Crow South, Wilson Pickett rose to riches as he migrated, like so many African-Americans of his time and place, to Detroit, where he witnessed the birth of Motown, then moved to New York to record for Atlantic Records. There he was guided by the phenomenal and feisty Jerry Wexler, with whom he crossed swords more than once. Pickett also recorded at both Stax Records in Memphis, Tenn., and Fame Studios in Muscle Shoals, Ala., and worked with Kenneth Gamble and Leon Huff at Sigma Sound Studios in Philadelphia. Along the way, he remade the Beatles’ “Hey Jude” as a soul song.

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In the Midnight Hour

DEEP PURPLE Pickett performing in Minneapolis, 1968. death, and he introduced Duane Allman to showbiz. He gave the word “funk” a currency that lasts to this day, and he was the first to headline a black American music revue in Africa; he also sang at the Sanremo Music Festival in Italy—in Italian.

Berry, Fats Domino or Little Richard), he was there in the early days of the world’s most exciting music, and no account of early rock ’n’ soul would be complete without him. The other thing we know about Wilson Pickett is that he was fright-

eningly violent and abusive, especially to women, to the point that a number of his intimates though that he suffered from an undiagnosed mental illness that may have been bipolar disorder. A manly man to the last, Wilson refused treatment. Mayhem became a way of life and remained one, and the toll was especially high on his romantic interests, women who served serially, Mr. Fletcher writes, as “secretary, bedroom partner, and punching bag.” Both the sound and the fury of Pickett’s life were there from the getgo. Born in a two-room shack in Prattville, Ala., and so hyper as a baby that he was dubbed “Wiggly” by an older sister, he was only 6 weeks old when his father went to jail for bootlegging. Wilson Pickett Sr. liked to sample as well as sell moonshine, and his namesake inherited that love of drink. Like other rhythm ’n’ blues pioneers, young Wilson got his start singing gospel, the power of his voice turning everyone’s head. On Sunday mornings, he and his sister Jeannie sang hymns as they walked through the woods to Jericho Baptist Church, and shouts rang from the sharecropper shacks they passed as residents heard the summons and readied themselves for the service. Pickett soon discovered that secular music drew crowds as well, and like them he was chastised by his elders for doing the devil’s work. When his grandfather heard him singing Louis Jordan’s “Ain’t Nobody Here But Us Chickens,” the old gentleman walloped the Please turn to page C7

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THE WALL STREET JOURNAL.

BOOKS ‘And the end of all our exploring / Will be to arrive where we started / And know the place for the first time.’ —T.S. Eliot

The Worst Journey in the World The Lost City of the Monkey God By Douglas Preston Grand Central, 326 pages, $28

‘THE LOST CITY of the Monkey God,” which might as easily have been titled “Death at Every Step,” sounds like a movie, which it sort of is: part travelogue, part archaeological dig, part medical mystery and part history lesson as taught by a professor who dispatches with the lecture about Mesoamerican art in 10 minutes in order to get you out into the field faster. He knows you’d rather hear about his experience contracting the world’s second deadliest parasitic disease, the one where your own white blood cells dissolve your lips and nose. And let’s talk about the spiders and snakes and chiggers and sand flies and cockroaches and biting ants and howler monkeys. Meanwhile, do you think we should leave those artifacts in situ and risk their being looted by the local military or narco-terrorists or blundering ecotourists? Might it not be OK to take just one, maybe two, which is what the documentary-film producers who put up the money to locate the Lost City of the Monkey God want to do? This is their movie, after all, or no, wait, it’s a book A very entertaining book by Douglas Preston, who must be lauded both for having survived the expedition and for having chronicled its thrills and trials in under a year. Mr. Preston’s adventure began when he learned about an unexplored area of Honduras known as La Mosquitia. Labeled on early maps as “Portal del Infierno,” the 32,000-squaremile region had proved impenetrable, its jungle too dense, its mountains mile-high. Legend had it that somewhere in Mosquitia were the ruins of a lost civilization and known by several names, including the Lost City of the Monkey God. Locals had long associated the perhaps mythical city with sickness and death. But a lost city might also hold lost treasure, the promise of which had over the centuries lured all manner of explorer, charlatan and crook. Few who went looking returned with all their body parts intact, or at all. Beginning in early 2012, on assignment for the New Yorker and National Geographic, Mr. Preston joined a team for several expeditions in search of the city. On his first trip, crammed in the back of a plane, he stared out the window, transfixed by

GRAND CENTRAL PUBLISHING

BY NANCY ROMMELMANN

ANOTHER GREEN WORLD An almost inaccessible valley in Honduras identified as a possible site of the ruins. “the opulence of the rainforest that unrolled below us. The tree crowns were packed together like puffballs, displaying every possible hue, tint, and shade of green. Chartreuse, emerald, lime, aquamarine, teal, bottle, glaucous, asparagus, olive, celadon, jade, malachite . . . we were flying above a primeval Eden.” The team would use a laser-based technique known as airborne lidar to capture images below the forest canopy from a plane overhead, “a twenty-first-century assault on an ancient mystery,” writes Mr. Preston. The developers of airborne lidar were less than enthusiastic about loading one of their machines onto a beat-up plane to search for a maybedot in a sea of green; one scientist thought the project “a crapshoot that might be a waste of time and a scientific embarrassment.” Film producer Steve Elkins, who’d been looking for the city for more than two decades, pledged to confine the search to 50 square miles, and as for the city’s iffy existence, wasn’t the point of exploring to find out? Mr. Preston knows a good character when he sees one, and Mr. Elkins’s obsession goes some way toward propelling the story. For sheer star power, however, he cannot beat Bruce Heinicke. Loud, profane, partial to Hawaiian shirts unbuttoned to make way for a gargantuan gut, Mr. Heinicke works as a fixer of sorts in Honduras,

greasing palms and waving guns and sending his wife to a church service that he knows the country’s president will attend. This because the expedition needed permits to explore Mosquitia. The wife impressed upon the president that finding the city might offer the country some cachet. Would it hurt to be known for something other than narcotics smuggling and having the highest murder rate in the world? The president agreed. Find that city! The team of scientists, ex-military, filmmakers and photographers was dropped into the jungle, which was vibrating with life: The air was thick with the smell of flowers, spice and rot, the calls of monkeys, macaws and frogs. The green seen from above proved a barricade on the ground; every step required a machete apocalypse. Night brought complete blackness. Only steps from the crew, Mr. Preston became lost. Musing on how easy it would be for the forest to swallow you forever, his flashlight beam lighted on a fer-de-lance, an enormous snake whose bite can kill. “Hey guys?” Mr. Preston called out. “Get back,” said Woody, a former British commando, pinning the snake’s neck with a stick and grabbing for its head. “The snake exploded into furious action, uncoiling, twisting, thrashing, and striking in every direction, spraying venom,” Mr. Preston writes. “As

its head lashed back and forth, straining to sink its fangs into Woody’s fist, it expelled poison all over the back of his hand, causing his skin to bubble.” That was the first night. Over the next week, team members

Half of the expedition team contracted the world’s second-deadliest parasitic disease. variously sank to their chests in quickmud, navigated a forest floor “carpeted with glistening cockroaches,” heard jaguars slink past their tents in the night, and unsuccessfully tried to keep sand flies the size of a grain of sand from biting them to bloody bits. The lidar images offered some compensation, revealing pyramids, ancient canals and enigmatic but clearly man-made shapes. The team pushed deeper into the jungle until it found what was once a city, likely from the 16th century, with playing fields and possible altars, beneath which were buried hundreds of pieces of statuary, beautifully carved jaguars and birds and monkeys. “This is clearly one of the most undisturbed rainforests in Central America,” said one expedition mem-

ber, a Harvard ethnobotanist. “The importance of this place cannot be overestimated.” “I just thought that if I were a king, this would be the perfect place to hide my kingdom,” said Mr. Elkins. Yes, thought Mr. Preston, but what had the inhabitants been hiding from? And why had they disappeared? Mr. Preston’s writing is breezy, colloquial and sometimes very funny. Flying into the rain forest, he hopes that his helicopter pilot doesn’t “try to execute an ‘unpowered descent,’ which is a euphemism for dropping out of the sky like a stone.” But he can also be sober, as when he talks about the Old World diseases that the Spanish brought to the New World: smallpox, for instance, during which “the skin turns a deep purple or takes on a charred look, and comes off in sheets.” Local populations were ravaged; one table of statistics from the island of Hispaniola shows the population as 500,000 in 1492 and zero 50 years later. Back in the U.S., Mr. Preston realized that he had brought home a souvenir, mucocutaneous leishmaniasis, a parasitic disease carried by the sand fly. Half of the team members had caught it as well. It’s a ghastly and sometimes fatal disease, with a nasty presentation even in its mildest form: a large oozing sore that doesn’t heal. “Leish” was so rare in the United States, and so drug-resistant, that the National Institutes of Health agreed to try to help the team members. Treatment went well for some, less well for others. In 2016, Mr. Preston was well enough to return to the lost city, which had been made navigable for camera crews, dignitaries and people continuing to dig. “The ineffable mystery of being immersed in the living, breathing rainforest was gone,” he writes. “The area felt shrunken and bedraggled.” While the discovery of the artifacts was celebrated, and the president of Honduras saw the hand of God at work, Mr. Preston feared that the wound on his arm, the sore that would not heal, might foretell a devastating future. What had exploration and excavation unwittingly unleashed? Was there poetic justice here, something as small as a grain of sand instigating an extermination event, this time in reverse? All great civilizations assume they will last forever, but the forest, in its way, was saying otherwise. Ms. Rommelmann’s “To the Bridge,” an investigation into maternal filicide, will be published next year.

Exile in Siberia Under the Czars Continued from page C5 vast numbers, with economic side benefits from the produce of the mines. Stalin killed three million of them in the Kolyma Peninsula alone. Each of these “politicals,” as numerous writers have pointed out, was entirely innocent. The czarist regime, aiming to penalize and then populate, had no interest in killing the exiles and convicts. The work at the mines in the Romanovs’ time, while unpleasant, was not the greatest evil of the system. The true evil of the 19th-century Siberian complex was the system itself: the daily existence of the punished and what it did to them over time and to the frontier society into which they eventually emerged.

Convicts enticed their wives to Sakhalin in order to sell them as sexual chattel. In Mr. Beer’s telling the worst of it was the life indoors—at rest, so to speak, in the camps and barracks. “We lived on top of each other,” wrote Dostoevsky. “Imagine an old, dilapidated wooden construction. . . . There was an inch of ice on the panes. The ceilings were dripping. . . . There was not even room to turn around. . . . There were fleas, lice, and cockroaches by the bushel.” Filth was an inch thick on the rotting floor, and with open tubs for urine and excrement “the stench was unbearable.” Here, away from the mine bosses, the hardened professional criminals ruled. These were the ancestors of the infamous tattooed urkas (the ineffable Russian soul has the perfect word even for malevolent troglo-

dytes) who ruled prison life in the Communist gulag. Mr. Beer illuminates their 19th-century realm wonderfully, from the binges of alcohol, sodomy and murder to the arcane rules of convict jurisprudence. Like drinking or fighting, nihilistic games of chance provided “a brief assertion of personality, a minor act of defiance against the baseness of captivity.” For the punishment of the already damned there was the whip, the lash, the gauntlet, the rod and the “stone cave” of the solitary cell. There was the denial of rations, already meager, or the “wheelbarrow wife” of being chained for years to a wheelbarrow. Above all, like the national flag of the land of “negative perfection”—to use a term from Martin Amis’s brilliant meditation on Stalinist Siberia, “Koba The Dread: Laughter and the Twenty Million” (2002)—there was the knout, a hinged rawhide scourge with weighted tails, transcendentally painful in the hands of a specialist. The executioner, as Mr. Beer calls him, was almost always one of the more experienced convicts. Mr. Beer provides a valuable sketch of life on Sakhalin island in the north Pacific, where late in the 19th century the apparat decided that convicts and exiles could more or less be dumped to fend for themselves— thus providing a perfect greenhouse for the exile system to flower into its purest moral expression. “My dear wife!” writes a Sakhalin convict, probably in the 1870s or 1880s. “The climate here is marvelous and . . . the soil is second to none!” With horses, cows and a snug cabin all allegedly being provided by the kindhearted authorities, he encourages her to join him. “As soon as you get this letter, sell everything that you have . . . and come here!” Thousands of women did just this

and found on Sakhalin “not well-provisioned farmsteads, but a dark world of destitution, violence and sexual exploitation,” as Mr. Beer writes. The administrators in Petersburg saw the family as part of the convict’s redemption. “Married life is the safest guarantor of the penal labourers’ material well-being and moral reform,” wrote one expert. In fact, convicts enticed their wives to Sakhalin in order to sell them and any children they might bear as sexual chattel. “When women

exiles finally did reach Sakhalin,” writes Mr. Beer, “they were treated as habitual prostitutes.” The first stage was organized by the officials themselves, who ran the women’s facility on the island as a brothel. Then, in a “cattle market” process, the women and children would be sent off to new masters in the villages of the interior. In March 1917, after the abdication of Czar Nicholas II, a hundred thousand Siberian convicts and exiles were freed by edicts and mobs. In

April, the Provisional Government “formally abolished exile as a punishment.” Soon enough, many formerly exiled revolutionaries would find themselves back in the Siberian camps, this time under Communist rule. “The majority,” writes Mr. Beer, “would look back wistfully on the conditions of their incarceration before the revolution.” Mr. Bull is the author of “Around the Sacred Sea: Mongolia and Lake Baikal on Horseback.”

MORE TALES FROM THE WINTRY PRISON FROM CHEKHOV and Solzhenitsyn in Siberia to Lermontov and Pushkin in the Caucasus, Russia is unique among literary nations in the extent to which her most beloved writers found their inspiration in the world of punishment. Siberia has attracted fine foreign authors too. For those who already have read “Crime and Punishment” and “The Gulag Archipelago,” here are five other works on the land that the Marquis de Custine in “Letters From Russia” (1843) called, “that graveyard of the living, a world of mythical sorrow . . . populated by infamous criminals and sublime heroes.” —B.B.

Notes From the House of the Dead By Fyodor Dostoevsky (1862) Back in a St. Petersburg prison a few hours after his mock execution, Dostoevsky wrote to his brother, “Life is a gift, life is happiness. . . . Now, on changing my life, I am being born again in a new form.” Then the cart took him to Siberia. His “Notes From the House of the Dead” is a semi-fictional—to escape the censors—memoir of four years’

hard labor. Dostoevsky’s socialist idealism did not survive.

The Conquest of a Continent

By W. Bruce Lincoln (1994) The story of Russia in Siberia is one of the great epics of all time. What Kolyma Tales By Varlam Shalamov (1954-73) the American West is to freedom and This is lean poetic prose about things the U.S., Siberia is to Russia: the so awful that one could read about emotional hinterland of the great dethem for hours. Kolyma is the Rusfinitive autocracy. As in the United sian Auschwitz, and seen by Russians States, in Siberia it was furs that as such. The Stalinist state killed its drew explorers into a vast wilderness, three million innocents in Kolyma and then came settlers, the state, slowly in conditions of cold, overwork, wars with the indigenes, and eventuand starvation that allowed, in the ally the railways. social life of the camps, all that is The Long Walk barbaric in man to become absolute. Shalamov smuggled these stories out. By Slavomir Rawicz (1956) Russian Siberia has tested the human spirit like nowhere else. For The Princess of Siberia By Christine Sutherland (1984) the very strong that has sometimes The story of the Decembrists and their meant an opportunity to touch wives receives unabashedly romantic heights of redemption and selftreatment in this fine work focused on knowledge otherwise unavailable; perhaps the richest and most charming thus Dostoevsky and Solzhenitsyn. of them all, Maria Volkonsky. Pushkin For Slavomir Rawicz, a former called her eyes “clearer than day, blacker Polish cavalry officer, it meant an than night.” Ms. Sutherland, through a unsurpassed overland odyssey of great-great-granddaughter of the prin- leadership and physical determinacess, gained access to her memoirs, and tion, as with a handpicked crew he uses them and research from the Deescapes the gulag in 1941 and cembrist museum in Irkutsk to tell a makes his way to Mongolia—and stirring story full of solid history. thence to Tibet.

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | C7

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BOOKS ‘Of all the enemies to public liberty war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other.’ —James Madison

Democracy Is Dependent on War Forged Through Fire By John Ferejohn & Frances McCall Rosenbluth Liveright, 460 pages, $29.95

SOME BOOKS should come stamped with a surgeon general’s warning: “Likely to cause discomfort,” perhaps, or “Not suitable for romantics.” The political scientists John Ferejohn and Frances McCall Rosenbluth have written such a book: “Forged Through Fire: War, Peace and the Democratic Bargain” is not for the faint of heart. It begins with a paradox. “Humans have inflicted untold horrors on each other through wars,” Mr. Ferejohn and Ms. Rosenbluth write, but these wars have also been responsible for fostering one of our “most cherished human values”: modern democracy, with its unique combination of universal suffrage and property rights. This isn’t the story we’re taught in high-school civics. But it’s a compelling one, powerfully told by two scholars with mastery of their subject. The authors walk the reader through 2,500 bloody years of Western history, from the Peloponnesian wars to the war in Vietnam, highlighting, again and again, a brutal trade-off: The emergence and consolidation of democracy depends on warfare, and a particular kind of warfare, at that. Here’s the logic: The rich and powerful prefer to remain that way, and are, as a general rule, disinclined to share either wealth or political power with the poor. Only when elites are faced with external military threats do the poor become valuable to the rich. This is so because armies have traditionally required bodies—and plenty of them. This, the authors argue, is the awful “alchemy of iron and blood” that produces democracy. Manpower-intensive forms of warfare require the large-scale mobilization of the population, which forces elites facing external threats to grant political concessions to the common man. Mr. Ferejohn and Ms. Rosenbluth are not the first to chart the linkages between warfare and the evolution of the modern democratic state, but their magisterial volume makes the case in persuasive and explicit detail. We begin in Athens, where the shift from aristocracy to democracy was driven by the need to defend the city against foreign invasion. In 508 B.C., Cleisthenes “promised to turn political power over to the Athenian public in exchange for their help in repelling Spartan intervention,” and the great age of Athenian democracy was born. It might soon have died, too, but for the existence of near-continuous external threats during the Peloponnesian and Persian wars, and the fact that Athenian naval supremacy soon came to require the active participation of tens of thousands of or-

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BY ROSA BROOKS

PEOPLE POWER Chinese soldiers during a joint anti-terrorism drill with India, 2016. dinary men. “Whether they liked it or not,” note the authors, “Athens’ wealthy and conservative citizens seem to have understood that the city’s survival rested in the hands of thousands of commoners who rowed the triremes.” Similar dynamics led Rome’s elites to grant freedom, land, citizenship and the franchise to an expanding body of commoners and ultimately to residents of far-flung colonial outposts. As in Athens, “Roman military accomplishments rested on wide manpower mobilization rewarded by . . . political voice.” But not all wars produce democracy. In medieval Europe, feudal lords were able to rely mainly on small forces of heavy cavalry to sustain their power, not on large-scale mobilization of the poor, and this mostly eliminated the need to offer political concessions to the masses in exchange for military service. Later, in early modern Europe, “the effective use of gunpowder decisively tipped the balance away from the cavalry-dominated militaries of the previous 500 years and in favor of mass armies . . . shifting political power upward to leaders who could finance and maintain such large armies.” Even so, for a time most European governments were able to finance armies with plunder from the New World, “or, where necessary, through exchanges of favors with merchants that were less destabilizing than the bargains [monarchs] would otherwise have had to strike with the poor.” As a result,

pressures to democratize remained minimal and episodic. “As long as monarchies could buy armies with money, blood did not buy voting rights, as it had in Athens and Rome,” the authors write.

ated universal military conscription at the beginning of the 20th century; within a decade, both had also granted universal male suffrage. In Britain, conscription did not begin until 1916; by 1918, universal male

Norway and Sweden initiated conscription in 1901; within a decade, both also had universal male suffrage. It was only in the 19th and 20th centuries, Mr. Ferejohn and Ms. Rosenbluth observe, that conditions once again became favorable for the widespread expansion of democracy. The French Republic’s levée en masse set the stage: Mass mobilizations required both an effective administrative state and eventually a more egalitarian approach to politics. By the end of the 19th century, both France and Germany had “enormous standing armies” and “both had adopted representative government,” with universal suffrage placating the masses, counterbalanced by protections for property rights to assuage the concerns of the wealthy. In much of Europe, however, the interests of the wealthy and the working class remained at odds. It “took the white-hot wars of the twentieth century, which required both money and manpower, to hinge them into a single coalition in favor of representative democracy,” the authors write. When it happened, it happened quickly. Norway and Sweden initi-

suffrage had also been granted. By the end of World War II, 60 million people were dead, but democracy had become the norm throughout the West. “Forged Through Fire” is full of grim lessons. One lesson: warfare, as the authors of this book soberly remind us, has been a near-constant throughout human history. Those inclined to take solace in the post World War II decline of interstate wars might pause to consider that 70 years is, in the grand scheme of things, not a very long time. Another lesson: Those with power have rarely been inclined to relinquish it voluntarily. Only fear and threat have driven the rich and powerful to share—grudgingly—with history’s have-nots. A third lesson—perhaps the hardest to swallow—is that our most cherished modern liberal political values would likely never have triumphed without war and its multiple horrors, and even the democratic gains produced by centuries of war were “neither easy nor inevitable.”

Democracy depended upon a unique combination of circumstances: technologies favoring manpower-intensive forms of warfare; the lack of external sources of wealth that might have enabled governing elites to purchase military power, rather than coax it from their citizens; and so on. Even with all these conditions present, coercion and propaganda were sometimes sufficient to thwart the development of democracy. Russia and China, for instance, have managed, so far, to buck the trend. All this leads to an uncomfortable question. Wealthy modern states can once again increasingly outsource their security to private contractors, and in any case, the emergence of new military technologies is again reducing the need for mass armies. Drones, surveillance technologies and cyber-warfare make it possible for states to achieve war’s traditional ends without much need to mobilize their citizens, shifting the balance of power away from ordinary citizens and back towards governing elites. “When armies no longer need flesh and blood,” wonder Mr. Ferejohn and Ms. Rosenbluth, “what can take their place to stabilize democracy?” In other words: forged through war, can democracy survive peace? Ms. Brooks is a law professor at Georgetown University. She is the author of “How Everything Became War and the Military Became Everything.”

Tales of the Wicked Pickett Continued from page C5 youngster on the head with a Bible. (Later, Pickett remarked, “You know, the Bible weigh a lot.”) Prattville had little to offer musically, though the opportunities for amateur pugilism were plentiful: “Every day, without exception,” his brother Maxwell recalled later, “going to school, Wilson would fight somebody, and coming back home, he would fight somebody.” In 1956, the 15-year-old Pickett went to live with his father in Detroit, and, as Mr. Fletcher points out, he couldn’t have landed in a better place at a better time. “Everywhere the young Wilson turned on his arrival in Detroit, there was music,” he writes. Hank Ballard and Jackie Wilson were already stars, and Little Willie John wasn’t far behind them. Pickett went to high school with budding artists like Mary Wells and Florence Ballard, and by the time he met 14-year-old Aretha Franklin and started singing in her father’s church, he was on his way. His first success was with “I Found a Love,” which he based on the hymn “Yes, Lord.” Though not as well known as his later hits, “I Found a Love” can still “surprise, thrill, and astound,” as Mr. Fletcher says, and then he proceeds to explain why in detailed but non-technical terms, from the initial piano to the tension that builds as Pickett finally steps forward and sings the ti-

tle three times, building from a churchy call and response with his guitarist to the scream that would become his trademark. Mr. Fletcher gives Pickett’s other big songs the same treatment, and readers of this biography would do well to listen along on YouTube as the writer takes them through each hit as it starts, swells and comes to an end that is somehow both startling and inevitable. Journalists who write about sex, drugs, and rock ’n’ roll often find it easier to focus on the sensational aspects of the industry than on the music itself, but Mr. Fletcher, the author of books on Keith Moon, the Smiths and R.E.M., gets it right. As in a Greek myth, Wilson Pickett begins to soar as fame and riches come his way at such speed and in such quantity as to test any mortal. He signs with Atlantic Records and records the hits that made him famous, starting with “In the Midnight Hour,” a song “impervious to the thought of improvement,” as Mr. Fletcher writes in a moment of masterly understatement. “Land of 1000 Dances” followed, one of a succession of hits produced by Jerry Wexler, with whom Pickett shared both artistic success and major financial misunderstandings. “We was like his childrens,” the singer said. “He was the guardian over us and our money. The little we got.” A bigger problem for Pickett’s artistic legacy was that he

recorded chart-topping singles but was never marketed in a way that sold albums in the millions, as were, for example, another Atlantic act, the Rolling Stones. Meanwhile, the volatility not only continued but grew. To drugs and alcohol Pickett added firearms, the third essential ingredient in his recipe for mayhem. In 1991, he refused to come out of his house in Engle-

‘If you see Wilson in a restaurant, go to another restaurant. If he’s in the hotel bar, go to another bar.’ wood, N.J., when a limo driver arrived to take him to be inducted into the Rock and Roll Hall of Fame, and later that year, he drove across the lawn of his neighbor, who just happened to be the mayor of Englewood, and was arrested for drunken driving and weapons possession after threatening to shoot hizzoner. He never actually hit anyone with a bullet, and he gave up cocaine and other drugs for a while, but he kept drinking till the very end, which came on Jan. 19, 2006, when the effects of years of hard living—bulimia, alcoholism, kid-

ney disease—caught up with him. He was 64 years old. Meanwhile, he continued to tour and record as long as he could, always electrifying everyone within earshot, always terrifying them. Bass player Jerry Jemmott, who recorded with Pickett, described him as “a cyclone. Everybody else was low-key, waiting for the energy to hit them, whereas he came in on fire. He would come in full tilt and we would just go on from there.” As newcomers were added to the band, they were warned to avoid Pickett, to stay out of his face, to not even look at him. Rick Hall, the owner of Fame Studios, recalled: “He reminded me of a black leopard, you know, look but don’t touch, he might bite your hand.” The best advice of all came from trumpet player David Akers, who said: “If you see Wilson in a restaurant, go to another restaurant. If he’s in the hotel bar, go to another bar, anywhere but where he is. You can have a very pleasant evening.” As critic Elvis Mitchell once wrote of Pickett, “the only safe place for him is the stage.” As an entertainer, Pickett was a peerless interpreter of songs, his own and others’. He was as handsome as the Muhammad Ali he once unnerved. (After the champ and the singer shared a ride to a benefit, Ali said, “This n—’s crazy.”) And he had one quality no one else did, which was that he screamed on key: “When

James Brown used to scream,” said Jerry Wexler, “it was a scream. When Pickett screamed, it was a musical note.” Yes, he should have taken better care of himself; if he had, he might have taken care of those he loved, fought with, estranged and won back, over and over. And he might not have died a decade or more before he should have. More than one great artist has commented on a sense of not being comfortable in one’s own skin; Kafka, for instance, said, “I have hardly anything in common with myself.” Pickett’s personality, too, often seemed split right down the middle. Bobby Womack, who probably knew him as well as anyone could, said this of Pickett: “He was tough, but also a lovable guy, a sweetheart, would do anything for you. He didn’t trust a lot of people, however, and—mostly—I don’t think he trusted himself.” So when Wilson Pickett leapt out of the ceiling during that European tour and landed on Sam Moore, was he really jumping on a rival musician? Perhaps his true target was an angry kid from Prattville, Ala., a singer who became one of the most dynamic acts in soul music yet one who was never able to find peace with anyone, especially himself. Mr. Kirby is the author of “Crossroad: Artist, Audience, and the Making of American Music.”

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THE WALL STREET JOURNAL.

BOOKS ‘The flesh is sad, alas, and I have read all the books.’ —Stéphane Mallarmé

Slings and Eros

MYSTERIES: TOM NOLAN

Inside the Snake

Enigma Variations By André Aciman Farrar, Straus & Giroux, 266 pages, $26

KATE PRIDDY, the young woman at the center of Peter Swanson’s thriller “Her Every Fear” (Morrow, 333 pages, $26.99), is prone to panic attacks, such as the one she suffers while stuck in a cab inside the milelong tunnel leading away from Boston’s Logan Airport. “It was like being inside a massive constricting snake, and Kate felt her stomach fold within her . . . her throat closing, becoming a pinhole, her lungs frantically trying to pull in oxygen.” This Londoner’s six-month trans-Atlantic apartment swap with a male cousin she’s never met is in part an attempt to soothe her anxiety. “One of the paradoxes of her anxious life was that in the midst of doing something slightly reckless, Kate often felt the most normal . . . as though her anxiety . . . was given a reason for existing.”

ANDRE ACIMAN’S novels may be steeped in modern, metropolitan New York but they can feel curiously oldfashioned. The characters dine at fancy restaurants, throw lavish dinner parties, zoom around in taxis, pursue the complex sexual entanglements befitting members of the smart set—in short they have the world at their fingertips—and yet the core sensibilities at play, intricately traced in the exquisite digressions and repetitions of Mr. Aciman’s prose, owe more to older literary traditions: coming-of-age novels of the 1960s or ’70s; psychological romances in the mold of Ivan Turgenev or Stefan Zweig; even the feints and parries of courtly love poetry. This touch of archaism, even fogeyishness, is refreshing. It is unusual for contemporary books about sexual relationships to be so devoid of millennial cynicism. There is almost no political backdrop and almost no overt social critique. And even if the characters are battleweary, their jadedness is only ever temporary. The pursuit of love (and slaking of lust) trumps all considerations. The chase, with Mr. Aciman, is always thrilling. It is also always complex. Mr. Aciman’s narrators not only have their waxing and waning affections to contend with but the confusions of duelling desires. Both men and women are (male) love objects in his oeuvre, which treats bisexuality with a rare sensitivity and depth. As the narrator of “Enigma Variations” comments: “My body had two agendas. . . . I was like an ellipse, with two competing foci but no center.” “Enigma Variations” is Mr. Aciman’s fourth novel and his most sophisticated treatment of bisexuality. It concerns five intense relationships spread out over half a lifetime, a chapter given to each. The affairs are set out chronologically, but Mr. Aciman, a Proust expert, does clever things with memory and time, shifting us backward and forward within chapters, revealing and concealing at key moments. The different strands of his protagonist’s character and experience gradually build into a portrait of a credible, mutable, sincere and reliably inscrutable human being. We first meet Paul (also Pauly, Paolo—though his name is almost never mentioned) as a young man revisiting the southern Italian island of his boyhood vacations, seemingly sometime in the 1960s. Wandering through town he reflects on a particular summer when, aged 12, he de-

GUEORGUI PINKHASSOV/MAGNUM PHOTOS

BY TOBY LICHTIG

veloped a crush on a local cabinetmaker named Nanni: “He had the most beautiful face I’d ever seen . . . I wasn’t brave enough to look at it.” Nanni has been employed by the family to restore a desk, and over several weeks young Paul stops by at his workshop to lend a hand. “I want to be your son,” he imagines telling the carpenter.

the “date” was an interview—and Paul’s suspicion soon reveals itself to be a case of displaced desire. The following chapter, “Manfred,” concerns—and is addressed to—the object of that desire. “I know nothing about you,” it begins. “But I see you naked every morning.” Manfred plays at Paul’s tennis club; he uses the communal showers; Paul admires his serve, and much besides. This is a story of obsession and pursuit, a “gathering storm,” intermingled with wisps of formative sexual memory: At one point Paul finds a picture of himself taken in Italy when he was 12. Perhaps the most affecting tale is “Star Love,” a brilliantly restless narrative that ranges from Paul’s university days to an era after Manfred has gone. It portrays the slings and arrows of a hopeless and persisting love affair between our narrator and a woman called Chloe (a name, like Maud, that evokes the title of a film by Eric Rohmer, whose intelligent treatments of romantic entanglements are a frequent reference point for the author). The two bump into each other around every four years— “bissextiley,” as Chloe mischievously comments—and they often end up in bed together. The flame burns brightly but a weekend is usually enough. Chloe seems to be the one in control but are her rejections really a reaction to a more profound rejection by Paul? “I’d grown to love serving two masters,” our narrator admits at one point, “perhaps so as never truly to answer to either one.” Tristan and Isolde are referenced, and there is also something of Heathcliff and Cathy in “Wuthering Heights” when Chloe vows, “We’ll stay in love until everything about us rots, down to our teeth.” What ulti-

A novel in five intense relationships, with men and women, spread out over half a lifetime. But something else is in the air. Paul has already been warned by his mother “never to let a man . . . touch [you] there,” and he recognizes that his “stealthy” attraction may be “unwholesome.” The build-up is thrillingly patient, the erotic atmosphere so unsettling not least because Paul is so young. His behavior becomes increasingly erratic, Mr. Aciman brilliantly capturing the gauche deviousness of the child trying to throw the adults off the scent. The ending—as with all the endings in this cleverly structured quintet—is devilish without being cheap. It involves Paul’s relationship with his father, which casts a subtle shadow over the entire novel. In the second tale, “Spring Fever,” the adult Paul is convinced that his girlfriend, Maud, is having an affair after he spots her in a restaurant with a man. He torments himself but also insists on his lack of jealousy. Maud is entirely open about the lunch date—the man was a journalist;

mately seems to thwart these two is the impossibility of love matching expectation—a romanticism that could have seemed trite in lesser hands. The coda tale features an older Paul back in the hunt when he encounters a beautiful younger woman. This is an enormously intelligent and captivating novel, filled with surprising twists and psychological acuity. Its success, however, also contains some seeds of failure. As in his previous novels, most notably “Eight White Nights”—a meticulous study of an unconsummated affair between a young man and a haughty femme fatale—Mr. Aciman refuses to say much about the privileged arena his characters inhabit. That we learn almost nothing about Paul’s job, or even his external life, helps us to focus on the tortuous contours of his sexual self. But his apparent detachment from the wider world is also limiting. Paul lives in a bubble—and we are invited into it. Fiction, of course, does not have to be politically engaged, but there is something offputting about the selfabsorption that accompanies all this affluence: We sometimes struggle to take the inner turmoil quite as seriously as the author intends us to. The opening tale gives a pleasing hint of what Mr. Aciman is capable of, the interplay between Nanni—an employee—and the son of his paymasters providing an uncomfortable extra layer of class struggle. With a little more tethering to the world that nourishes Paul’s angst, “Enigma Variations” could have been even more satisfying. Mr. Lichtig is the fiction and politics editor at the Times Literary Supplement.

A panicky Londoner staying in Boston is drawn into the case of a murder on her doorstep. More than slightly reckless, though, is her growing interest in the very recent murder of a woman who lived in the same apartment building that Kate’s moved into. Apparently the victim was involved with Kate’s cousin (now in London). Meanwhile, another man living in the complex admits to Kate he made a habit of watching the woman through her open curtains. Then there’s that third fellow Kate meets, who claims he was best friends with the deceased, though the police find no evidence that’s true. Mr. Swanson, the author of two earlier well-regarded suspense novels, tells this complex and often horrific story from several characters’ points of view, often through flashbacks spanning several years’ events in London and Boston. Chapter by chapter, the text peels back layers to reveal a pathological relationship between Kate’s cousin and a long-ago acquaintance that’s reminiscent of a folie à deux out of Patricia Highsmith or Fuminori Nakamura. When one of the participants opts out of this sick “friendship,” the other continues without skipping a victim. All these evil machinations evolve to ensnare the panic-prone Kate. By then, readers, privy to much Kate doesn’t know, may be experiencing their own anxiety. Fortunately, the author proves to be at least a bit more merciful than his monstrous villain.

FICTION CHRONICLE: SAM SACKS

When Huck Got to the Territories Coover has been one of the country’s leading postmodernists. But “Huck Out West” doesn’t deconstruct “The Adventures of Huckleberry Finn” so much as reprise it. Jim, Becky Thatcher and Tom Sawyer all make amusing cameos, the latter as a cheerfully amoral killer who sees the Indian Wars as a prime venue for more storybook adventures. And once again Huck becomes an accidental outlaw by following his conscience; only this time he’s fleeing punishment from Custer: “What was the same was the running. Started back on the Big River, running from Pap. Ain’t never stopped.” Dark events form the backdrop of this novel, but as in Twain’s original, the winsome humor of Huck’s “muddytatings” lend the story a deceptive innocence. “No matter what it might a seemed like in the moonlight, we warn’t never alone by ourselves out there,” he reflects after his provisions are raided by rodents. “Even that lonesome prairie was a-swarm with living creturs, and nary a one of them that warn’t desperately hungry.” Twain might have admired the sentiment, though that wouldn’t have stopped the lawsuits. A streak of masochism runs through contemporary fiction. In popular forms, it shows up in Stieg Larsson’s torture porn, E.L. James’s bondage fantasies and Dan Brown’s thumbscrew prose. In more literary precincts it looks like Emily Ruskovich’s debut novel, “Idaho” (Random House, 308 pages, $27), a sensu-

ous, exquisitely crafted wallowing in grief and tragedy. “Idaho” turns on a gruesome and inexplicable crime in a rural town that leaves one young girl dead, another missing, their mother sentenced to life in prison and their father, a dogtrainer named Wade Mitchell, bereft. He tries to move on by marrying the local schoolteacher, but Ann herself is

the near future. The effect is to create a complex spider’s web of telling moments that ensnares the reader in the deep, meaningless suffering at the book’s center. There’s no catharsis on offer in “Idaho.” The point is a sadness so totalizing that it begins to resemble pleasure. “Ann feels touched by a misery she is not sure she’s ever known before,” writes Ms. Ruskovich.

a true cricket visionary to a slick young entrepreneur who wants to buy stock in their talent. “Revenge is the capitalism of the poor,” Mr. Adiga writes with customary acerbity and astuteness. Class resentment is the gasoline that fuels the brothers’ ambitions and gives this novel its noisy volatility. The gritty urban realism that animated “The White Tiger” (2008) and “Last Man in Tower” (2011) is again on display, and though “Selection Day” is a slighter work—more a slice of life than a

Two cricket prodigies show how revenge is the capitalism of the poor. GETTY IMAGES

MARK TWAIN spent a significant portion of his adult life in a monomaniacal fight for copyright reforms that would ensure that no one else ever made money off his creations. So imagine how enraged he’d be by Robert Coover’s “Huck Out West” (Norton, 308 pages, $26.95), a sequel to Twain’s now out-of-copyright masterpiece, “The Adventures of Huckleberry Finn.” It’s fun to imagine the picturesque insults he’d hurl against Mr. Coover and his publishing house. Everyone else, though, is free to enjoy this sly bit of fan fiction. Springboarding from Huck’s plan, at the close of Twain’s novel, to “light out for the Territory” and escape the long arm of civilizing aunts, Mr. Coover imagines Huck’s decades vagabonding around the American West, years in which he “really didn’t grow up at all, just only got older.” He works on the Pony Express. During the Civil War, he scouts for both sides. Later, he hires on to break horses for George Custer’s Seventh Cavalry, but deserts when Custer—known here only as General Hard Ass—orders Huck to take part in the slaughter of Cheyenne civilians at the Washita River. He flees to South Dakota’s Black Hills, becomes bosom friends with a Lakota Sioux and without meaning to, finds himself caught smack in the middle of the Indian Wars. Since his 1969 story collection “Pricksongs and Descants,” Mr.

magnetized by the mysteries of the hideous event: “She felt the story living on all around her, felt herself collecting meaning even from the glances of strangers.” As the years pass and Wade is stricken by dementia, Ann devotes herself to the perverse role of memorializing a murder that involved people she didn’t know. Ann is the novel’s protagonist, but Ms. Ruskovich assumes the perspectives of numerous characters and scene-shifts from the distant past to

“She feels it sharply, like love.” Cricket is the sport of dreams for India’s underclass. In Aravind Adiga’s “Selection Day” (Scribner, 289 pages, $26), an eccentric chutney seller living in a one-room shed in northern Mumbai has raised two of the most gifted cricket prospects in the country, Radha Kumar and his younger brother Manjunath. As the pair smash youth-league records, they attract the leech-like attentions of a disreputable cast, from an aging scout who dreams of discovering

sprawling social exposé—it churns with the same propulsive energy. The book’s most touching, if somewhat underdeveloped, aspect concerns the rivalry between Radha and Manjunath themselves, who begin as allies against their controlling father and the wealthier players who dominate the sport and end as rivals for a coveted place on the Indian national team. A story with biblical echoes emerges, as it’s Manjunath, an eerily coldblooded genius between the wickets, who steals his older brother’s birth rite. Their relationship will resonate with American readers who usually regard cricket with bewilderment.

THE WALL STREET JOURNAL.

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Saturday/Sunday, January 7 - 8, 2017 | C9

BOOKS ‘I like chili, but not enough to discuss it with someone from Texas.’ —Calvin Trillin

Amber Waves and Fruited Plains Eight Flavors By Sarah Lohman Simon and Schuster, 280 pages, $26.99

THE STORY OF FOOD in America is most often one of profit and cultural adaptation. A new foodstuff is introduced and turned into an industrial product that is distributed widely at low cost, with the authentic cultural trappings discarded to create a familiar, easy-to-consume hybrid. So, one might ask, does “Eight Flavors: The Untold Story of American Cuisine” by Sarah Lohman offer tales of the familiar or is this indeed an untold story? Ms. Lohman opens with the story of black pepper. It was originally grown along the Malabar coast of India. Sumatra started growing it in the seventh century and, today, it is also grown in Malaysia. In Medieval Europe, pepper and other spices were used in profusion, both in savory and sweet applications. Since the British supplied all of colonial America’s pepper, we no longer had a source of supply after our revolution. Ms. Lohman tells the story of how the problem was solved in 1790, when a Salem, Mass. captain docked in Sumatra. In short order, a trader named John Crowninshield was making a vast fortune, buying pepper in Sumatra and selling it at a 500% markup in New England. (Pepper had other properties beyond culinary. One sailor of the time died during the voyage and his body was packed in a coffin filled with pepper; he arrived well preserved.) In the 19th century, Ms. Lohman notes, pepper was adulterated with floor sweepings as well as burnt toast crumbs and olive pits. The story soon becomes familiar. In the last few decades, the consumption of black pepper in America has grown 40% (“Would you like some ground pepper on your salad, sir?”) but we are using it in less adventurous ways, at least compared with the Middle Ages. The story of pepper, therefore, is a business story—discovery, mass marketing, adulteration and finally, a product that is now a bit culinary player, no longer holding down a leading role. Vanilla is the second most expensive spice to produce after saffron, and it has been produced in Central America for centuries. (The Mayas planted vanilla vines in cenotes, or sinkholes, since their microclimate was well-suited to the growth of the vines.) When botanists tried to grow vanilla outside of Mexico, Ms. Lohman relates, the fruit did not pollinate due to the absence of the necessary native insects. Along came Edmond Albius, a slave on the island of Bourbon. By smashing together, with thumb and forefinger,

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BY CHRISTOPHER KIMBALL

the male and female parts of the orchid, he was able to pollinate the flowers, and the vanilla industry as we know it was born. By the 1860s, the French colonies surpassed Mexico’s production. (Today Madagascar produces 60% of all vanilla consumed in America.) The active ingredient in vanilla is vanillin, the discovery of which has led to the production of artificial vanilla, which is vastly less expensive than the real thing. Unlike other “fake” foods (scientists would disagree with the descriptor “fake,” since a chemical is a chemical, whether derived from plants or in a laboratory), artificial vanilla usually wins taste tests in baked goods, since it contains a much higher concentration of vanillin; natural vanilla tends to dissipate in the heat of the oven. Another success for industry: Vanilla is a ubiquitous flavoring, without special purpose. Indeed, “vanilla” is now synonymous with “lack of distinction.” Soy sauce was being manufactured near Savannah, Ga., as early as 1767. Recipes for it were published in American cookbooks in the late 18th century, although soybeans, the key ingredient, weren't readily available and therefore soy sauce was made with mushrooms, walnuts or fish. (The term ketchup is derived from the Indonesian word for soy sauce, ketjap.) Soy sauce was the first step in introducing Chinese cooking to America, which too is a familiar story— small chow chows were opened in San Francisco by Chinese immigrants, and the food was soon tailored to what Americans wanted, leaving out dishes

that were too gnarly, spicy, or unfamiliar. Then came the chop suey houses in early 20th century New York, a term based on the Cantonese expression, “za sui” which means “different pieces.” By the 1950s, more than 300,000 gallons of soy sauce were being imported to this country, and Kikkoman opened a soy sauce factory in Wisconsin in 1972. The traditional monthslong process of making soy sauce was soon upended by the use of spent soybeans from the soy-oil industry, which were then broken down with hydrochloric acid. After a few days, the acid is neutralized, sweetened with corn syrup, and mixed with salt, water and caramel coloring. Three days, not three months. Some ingredients covered by Ms. Lohman are culinary footnotes. Garlic was associated with lower-class Italian immigrants even though, in Italy, garlic is treated gently—rarely minced and almost always used in the form of whole, sometimes crushed, cloves. When Americans jumped on the garlic bandwagon, they felt: the more, the merrier. MSG, a salt which is a combination of sodium and glutamate, is made by boiling kombu (a type of kelp). This process was made cheaper and easier by using fermented sugars or grains. MSG was eventually accused of creating headaches (although those studies are now in doubt) and is relegated, for the most part, to an ingredient in prepared or restaurant foods. Chili has a similar history of massmarket transformation. The first mention of chili con carne appeared in an anecdotal work by a surgeon in

the army of Gen. Zachary Taylor, covering his time in the Mexican war in the late 1840s. The popular Chili Queens of San Antonio (women who sold chili con carne, tamales and enchiladas in the town square) eventu-

Soy sauce was being made near Savannah as early as 1767—sometimes from mushrooms or walnuts. ally succumbed to sanitation red tape and to the financial demands by the town fathers, who required that the Queens purchase licenses. Finally, Ms. Lohman recounts, just before 1900, an entrepreneur named William Gebhardt used a combination of fresh chili peppers, black pepper, oregano, garlic and cumin to introduce Eagle Brand chili powder, and chili took off in homes across the country. A far cry from the Chili Queens of San Antonio. Chili powder was a case in which new ingredients were subjected to low-cost manufacturing as the American marketplace matured. Curry powder, on the other hand, has a history more like that of garlic: an exotic additive whose use was simply changed to appeal to local tastes. Ms. Lohman tells how curry came to New York City in 1899, introduced by Ranji Smile, who cooked in Louis Sherry’s restaurant and offered an amalgam of true Indian cuisine, a nod to French

cooking and, of course, foods American would consider familiar. But, for the most part, his enduring legacy was that curry powder, which was added virtually indiscriminately by cookbook authors such as Fannie Farmer, who proffered weird mashups including Curried Lobster, Curried Eggs and Crab Meat Indienne. “Eight Flavors” offers the casual reader of culinary history interesting tidbits on some of our favorite ingredients or additives, but it is, for the most part, the same old story told again and again. And then the author introduces us to David Tran, the Sriracha king, who is currently responsible for producing 7,500 bottles per hour and $60 million in annual sales of the spicy Thai sauce. He gives one hope that there is still room for the culinary entrepreneur who fills a need before a major food company gets hold of it. The book ends with hints of new foods and flavors, including “pumpkin spice” (Starbucks turned this into a major hit), smoke, rose water, etc. Profits await! The good news is that American tastes have grown more sophisticated and that a new food like Sriracha can be made with integrity and, at the same time, yield profits. In the 21st century, Americans are reaching out for an authentic taste of other worlds. That is the untold story. Mr. Kimball is the founder of Christopher Kimball’s Milk Street and host of Milk Street Radio. He was the founder of Cook’s Illustrated and Cook’s Country magazines.

CHILDREN’S BOOKS: MEGHAN COX GURDON

The Runaway Bunny’s Mother ler. The two were shortly to be married when the bride-to-be, after an appendectomy, kicked her leg in the air to show how good she felt and sent a blood clot into her own brain. Amy Gary tells the story not just of Brown’s romantic life, of course,

copies. In the author’s haste, she committed the first draft to the only bit of paper she had: her ski receipt. In a biography full of lively anecdotes, this one stands out for the way it encapsulates what must have made Margaret Wise Brown so enchanting to her friends and colleagues. She was adventurous, resourceful and inventive; she also happened to be pretty, witty and given to cheeky nicknames. (She called sexually predatory women “Slitches.”)

frustration, “when she put her pencil to paper to write something for adults, another children’s story, poem or song poured out” of her. Like Wyeth, her true vocation was in the children’s realm. It is as a writer for the very young that she is near-venerated

Margaret Wise Brown’s classic was inspired by a French ballad and drafted on a ski-resort receipt. If the measure of a good life story is the longing it leaves in the reader to have known the subject, this one more than succeeds. Brown died suddenly in 1952 at the age of 42. She was full of life and promise, still, and on the cusp of a romantic happiness that had hitherto eluded her. A series of short relationships and two long affairs—one with a married father, another with the sleek, androgynous ex-wife of the actor John Barrymore, scaldingly named the “Sappho of Long Island” in the press—had given way to real love with James “Pebble” Rockefel-

FLATIRON BOOKS

ON A WINTER afternoon in 1941, Margaret Wise Brown (1910-52) was toiling up the side of a snowy Massachusetts mountain with two male friends. There was no chairlift at the fledgling ski resort to whisk them to the top of the slopes, and midway up Brown decided to schuss back down by herself. It wasn’t merely that she was annoyed by the climb, as Amy Gary recounts in the pages of “In the Great Green Room: The Brilliant and Bold Life of Margaret Wise Brown” (Flatiron, 288 pages, $26.99). The muse was calling her. For months, Brown had been mulling over the rhythms of a French ballad, one with an “if you/then I” word pattern, with the idea that it might lend itself to a children’s tale. “As she sped down the slope,” Ms. Gary writes, “the book crystalized in her mind.” Back at the tiny, makeshift lodge, she “dashed off a story about a child who tells his mother that he is going to run away. He threatens to turn into a variety of things to escape, but she counters each of his metamorphoses by changing into something that will bring him safely back to her.” Paired with pictures by Clement Hurd, the hurriedly scribbled story would become 1942’s “The Runaway Bunny,” which in the intervening 75 years has sold some seven million

VINALHAVEN Margaret Wise Brown with her dog, Crispin’s Crispian, in Maine. but also of her august family connections (three men on her father’s side had been vice-presidential candidates); her picturesque little houses in Maine and Greenwich Village; and her place in publishing. Like N.C. Wyeth, another artist with links to Maine, Brown yearned for the respectability that came with producing work for an adult audience, but, as Ms. Gary says, to Brown’s

today, and rightly so. There’s a lightness in her verse, a natural and seemingly accidental beauty that echoes the way children think and speak to a degree that remains exceptional. To recount the career of the author who gave us not only the nursery favorites “The Runaway Bunny,” “Big Red Barn” and, most famously, “Goodnight Moon” (with its “great green room”) but also

more than threescore other children’s tales, Ms. Gary had access to Brown’s diaries, letters and a fantastic trove of manuscripts. She describes her astonishment some 25 years ago when Brown’s sister opened a trunk in her Vermont barn to reveal musty heaps of unpublished songs, poems, stories and musical scores on fragile onionskin paper. Ms. Gary eventually became editor of Margaret Wise Brown’s estate, shepherded dozens of her short pieces into print, and has spent the time since, she says, trying to live inside Brown’s “wildly imaginative mind.” It is this desire that contributes to what some readers may feel a weakness of the book: that only at the very beginning and very end of “In the Great Green Room” do we hear Brown’s own voice. Each chapter starts with a bit of her poetry, including some unpublished verses, which is something, but in following the events of her life, we are vouchsafed only Ms. Gary’s representation of her thoughts and feelings. Through a publicist, the author explains that she wanted to keep the reader “in the moment with Margaret” and that the abundance of her sources made paraphrasing the best course. Still, we may feel a bit wistful, as we finish reading this fascinating account, that we weren’t able to get somehow even closer to the undoubtedly bold and brilliant Margaret Wise Brown.

C10 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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BOOKS ‘One man practicing sportsmanship is far better than a hundred teaching it.’ —Knute Rockne FIVE BEST: A PERSONAL CHOICE

Cait Murphy on poor sports neurodegenerative condition whose symptoms include depression and dementia. Mark Fainaru-Wada and Steve Fainaru tell the story of CTE with authority and make damningly clear the NFL’s evasive response. For years, the league dismissed concerns about concussions, with the commissioner once calling the problem a “pack journalism issue.” The concussion committee that was at last formed by the league included only one neurosurgeon and was headed by a rheumatologist. What the authors call the NFL’s “concussion research machine” issued papers stating that players “do not sustain frequent repetitive blows to the brain.” The committee’s 16 papers, they write, can be summarized in a phrase: “Don’t worry, be happy.” Eventually the NFL had to accept the accumulating scientific evidence and in 2013 established a fund for damaged former players.

The Ugly Game GETTY IMAGES

By Heidi Blake & Jonathan Calvert (2015)

BEACHED A replica of a Viking ship in Scotland’s Shetland Islands.

Viking Cruises By Eleanor Rosamund Barraclough Oxford, 317 pages, $39.95 BY TOM SHIPPEY

BOOKS ABOUT VIKINGS are riddled with stereotypes, the old and popular ones about horned helmets and Valkyries, the modern academic ones about peaceful traders and urban developers. Eleanor Rosamund Barraclough’s “Beyond the Northlands” admirably and originally breaks free of both sets and bursts into the wide field of Old Norse life and literature beyond the classics. She seems, moreover, to have had a good time tracing the steps of Viking voyagers. At the extreme northeastern tip of Norway she ate cloudberries and was inducted into the Royal and Ancient Polar Bear Society of Hammerfest, which knights its new members with the penis bone of a walrus. In Greenland she explored the country on a pony so blue-eyed that it was called “he whose eyes pop out of his head when he sees a beautiful woman walking past” (it comes out shorter in Inuit), and she went skinny-dipping in a sheltered fjord, observing that coastal Greenland lives up to its name during its short summers. Mind you, she notes, get the weather wrong and you can be stranded with nothing much to eat except leftover pickles. One of our stereotypes is that Vikings raided south. But they also had a truly vast hinterland up into the Arctic Circle, and there they interacted much more than is often realized with the Sámi people, the nomadic hunters whom they called Finns and we used to call Lapps. One aspect of this was “Finn-breeches,” or “necropants”—the flayed lower half of a male corpse, worn for magical purposes. Not as grisly, but equally baffling, is the Sámi shaman found buried with Norse female accessories and a linen dress. Sex-change magic? Who knows? The Arctic left its mark on trade, for it was the source of just about everything the Scandinavians had to offer—walrus ivory, the beautiful fur of the Arctic fox, the feathers of the eider duck, white bearskins and even

polar bears as trophies for royalty. It was the source too of sagas about “where the wild things are,” notably a whole series about the descendants of Hallbjorn Half-troll, whose family kept on interbreeding with their troll neighbors. In the far west, too, Icelanders and Greenlanders interacted with Native Americans and more than has been thought. Their little bivouac on Newfoundland has been archaeologically excavated: Why was it partially burned and abandoned in a hurry? To cover up their own murders? But now a couple of more sites have been found. A Norwegian silver coin of the late 11th century dug up in Maine

Cycle of Lies By Juliet Macur (2014)

LANCE ARMSTRONG spent $200,000 to move an oak tree near his home to create a grander entrance. It’s a small but telling detail in this meticulously researched book, perhaps the best of the small library on the subject. Mr. Armstrong, a cancer survivor and seven-time winner of the Tour de France, was forced to admit in 2013 that he had doped for years. His titles were revoked, and he was revealed as a liar and cheat. As the tree story suggests, however, he might better be described as a “control freak.” In his prime, Juliet Macur writes, he was “the boss of bosses in a corrupt organization.” A few people, however, could not be intimidated, and when their stories broke through the Armstrong aura, it was all over for him. “Honestly,” he tells Ms. Macur, “I hated these people and I still hate them.”

In Norway, the author was knighted by the Royal and Ancient Polar Bear Society with a walrus bone. League of Denial

By Mark Fainaru-Wada & Steve Fainaru (2013) shows that visits continued after the time of the saga accounts. Archaeology does not tell us what the eventual fate of the Norse colony on Greenland was, providing only ominous hints of desperate adaptation, such as walrus skulls buried round the bishop’s residence and the story of “Corpse-Lodin,” who went out every summer to find and bury those who had not returned from the hunt. Ms. Barraclough looks south and east as well. Vikings rode their camels to Baghdad, and by the ladies’ restroom at Stockholm’s airport you can see a runestone commemorating one of the casualties of the 11th-century “Yngvar expedition” into Russia. Her book stretches our imaginations in time as well as space, combines literature, archaeology and personal observation, and reminds us of many works more than half-forgotten even by scholars. Blessedly, for all the rigor of the endnotes, there is not a trace of academic obfuscation. Truth is stranger than fiction, yes, and more fun too. Mr. Shippey’s books include “Hard Reading: Learning From Science Fiction.”

BEGINNING IN 2005, medical researchers found that the repeated blows to the head that football players absorb can lead to chronic traumatic encephalopathy, a

A Payroll to Meet By David Whitford (1989)

GETTY IMAGES

Beyond the Northlands

CALL HIM Deep Foot. This anonymous soccer official gave millions of secret documents to two reporters, enabling them to answer a perplexing question: How did Qatar win the right to host the 2022 World Cup? Heidi Blake and Jonathan Calvert show that the emirate earned victory the old-fashioned way: It bought it. Qatar’s dream of the Cup should have been impossible. The average temperature in June and July, when the tournament is usually held, is over 100 degrees—and Qatar’s soccer team had never even qualified. But there were only 22 votes and many proved persuadable. Expertly culling Deep Foot’s trove, the authors let the participants tell the story, including this insight from a former high-level official: “It’s only corrupt if you get caught.” The chapter titles give the flavor of Qatar’s quest, among them: “Cocktails, Conspiracy, and a Million-Dollar Dinner.” There was nothing subtle in this enterprise—at one meeting, participants lined up for cash-stuffed envelopes. “The whole contest,” the book concludes, “was awash with dirty money.”

UPSET Two San Diego Chargers players collide during a December game against the Cleveland Browns.

IN ITS EFFORT to keep up with competitors in the 1970s, Southern Methodist University’s football team decided to innovate. First, it recruited black players earlier and more aggressively than its conference rivals. Second, it cheated. By 1981, a slush fund of some $400,000, filled by dozens of boosters, doled out payments to athletes. And it worked: From 1981 through 1984, SMU had the country’s best record (51-5-1). Then the NCAA came sniffing. Incriminating

MS. MURPHY is the author of ‘A History of American Sports in 100 Objects.’ evidence was not difficult to find— not when a former player went on television to say he got $25,000 to sign and $750 a month. David Whitford has a rich cast of characters to work with, along with a knack for mining the telling remark. One booster defended his actions by saying that he could spend his money any way he wanted and if the NCAA disagreed they were “a bunch of communists.” The NCAA didn’t see it that way and imposed the “death penalty” in 1987. The Mustangs didn’t play for the next two years. It was a big story at the time, but today there’s another reason it stands out. Major colleges since have been guilty of violations just as serious— but the NCAA has never again imposed the death penalty.

Pete Rose By Kostya Kennedy (2014)

PETE ROSE retired with a record 4,256 hits. But despite his profound love for the sport, this baseball genius broke its first commandment, by involving himself with sleazy characters to bet on games, then lying about it for years. All of which got him banished from baseball and excluded from Hall of Fame consideration. Kostya Kennedy reveals Rose as greedy and ignorant, and something short of a committed family man. Still, one of the gifts of this elegant book is its way of evoking a wry affection for Rose despite everything. Teammates, fans and even opponents testify to “Charlie Hustle’s” zeal for the game and his generosity as a player. Hall of Famer Joe Morgan testifies that Rose made him “much, much better.” With characteristic empathy, Mr. Kennedy describes Rose as undone “by his own pathology, trapped by his own delusions and denials.” Even so, the book doesn’t minimize his crassness. Today Rose makes his living signing autographs in Las Vegas. Pay a little more and he’ll add, “I’m sorry I bet on baseball.”

Best-Selling Books | Week Ended Jan. 1 With data from Nielsen BookScan

Hardcover Nonfiction TITLE AUTHOR / PUBLISHER

Hardcover Fiction THIS WEEK

The Lose Your Belly Diet 1 Travis Stork/Ghost Mountain Books Inc.

LAST WEEK

TITLE AUTHOR / PUBLISHER

THIS WEEK

New

The Magnolia Story 6 Chip & Joanna Gaines/Thomas Nelson

LAST WEEK

TITLE AUTHOR / PUBLISHER

Methodology THIS WEEK

LAST WEEK

Double Down (DWK #11) Jeff Kinney/Amulet Books

Fantastic Beasts J. K. Rowling /Arthur A. Levine Books

TITLE AUTHOR / PUBLISHER

THIS WEEK

LAST WEEK

TalesfromaNot-So-FriendlyFrenemy Rachel Renée Russell/Aladdin

The Whistler John Grisham/Doubleday Books

The Princess Diarist Carrie Fisher/Blue Rider Press

–

Killing the Rising Sun 7 1 Bill O’Reilly & Martin Dugard/Henry Holt & Company

Hillbilly Elegy J.D. Vance/Harper

The Undoing Project 8 Michael Lewis/W. W. Norton & Company

Talons of Power Tui T. Sutherland/Scholastic Press

New

Cross the Line 8 James Patterson/Little, Brown and Company

Jesus Always Sarah Young/Thomas Nelson

The Whole30 9 Melissa & Dallas Hartwig/Houghton Mifflin

–

Dog Man Unleashed (Dog Man #2) Dav Pilkey/Graphix

New

The Underground Railroad Colson Whitehead/Doubleday Books

Tools of Titans Timothy Ferriss/Houghton Mifflin

The Book of Joy 10 – Dalai Lama & Desmond Tutu/Avery Publishing Group

Harry Potter and the Cursed Child 5 3 J.ThornewithJ.K.Rowling&J.Tiffany/ArthurA.LevineBooks

No Man’s Land 10 David Baldacci/Grand Central Publishing

Nonfiction Combined

Fiction E-Books

Fiction Combined

THIS WEEK

LAST WEEK

–

The Lose Your Belly Diet 1 Travis Stork/Ghost Mountain Books, Inc.

The Princess Diarist 2 Carrie Fisher/Penguin Publishing Group

–

The Princess Diarist Carrie Fisher/Blue Rider Press

Hillbilly Elegy J.D. Vance/Harper

Nonfiction E-Books TITLE AUTHOR / PUBLISHER

Wishful Drinking Carrie Fisher/Simon & Schuster

TITLE AUTHOR / PUBLISHER

THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

THIS WEEK

LAST WEEK

New

The Wrong Side of Goodbye 1 Michael Connelly/Little, Brown and Company

–

Strengths Finder 2.0 Tom Rath/Gallup Press

–

No Man’s Land 2 David Baldacci/Grand Central Publishing

–

Total Money Makeover Dave Ramsey/Thomas Nelson

Truly Madly Guilty Liane Moriarty/Flatiron Books

–

The Girl on the Train Paula Hawkins/Riverhead Books

Essentialism Greg McKeown/Crown Business

–

Crash and Burn Fern Michaels/Zebra

New

The Whistler John Grisham/Doubleday Books

Double Down (DWK #11) Jeff Kinney/Amulet Books

The Lose Your Belly Diet Travis Stork/Ghost Mountain Books

New

The Daily Show Chris Smith/Grand Central Publishing

–

Milk And Honey 4 Rupi Kaur/Andrews McMeel Publishing

–

Crash and Burn Fern Michaels/Kensington

New

Hillbilly Elegy J.D. Vance/HarperCollins Publishers

Tools of Titans Timothy Ferriss/Houghton Mifflin

–

Dark Matter Blake Crouch/Crown/Archetype

–

Evicted 6 Matthew Desmond/Crown/Archetype

–

Killing the Rising Sun 6 1 Bill O’Reilly & Martin Dugard/Henry Holt & Company

Dark Money 7 Jane Mayer/Knopf Doubleday Publishing Group

–

The Undoing Project 7 Michael Lewis/W. W. Norton & Company

Until Ashlyn 7 Aurora Rose Reynolds/Aurora Rose Reynolds

–

Fantastic Beasts J. K. Rowling /Arthur A. Levine Books

Brain Rules John Medina/Pear Press

–

Wishful Drinking Carrie Fisher/Simon & Schuster

–

The Nightingale Kristin Hannah/St. Martin’s Press

–

Lab Girl 9 – Hope Jahren/Knopf Doubleday Publishing Group

The Magnolia Story 9 Chip & Joanna Gaines/Thomas Nelson

Holiday Wishes 9 Nora Roberts/Penguin Publishing Group

–

Empty Mansions 10 – B.Dedman&P.C.Newell,Jr./RandomHousePublishingGroup

Green Smoothies For Life J. J. Smith/Atria Books

New

The 4th Man 10 Lisa Gardner/Penguin Publishing Group

New

Hardcover Business

LAST WEEK

The Whistler 6 4 John Grisham/Knopf Doubleday Publishing Group

Nielsen BookScan gathers point-of-sale book data from more than 16,000 locations across the U.S., representing about 85% of the nation’s book sales. Print-book data providers include all major booksellers (now inclusive of Wal-Mart) and Web retailers, and food stores. E-book data providers include all major e-book retailers (Apple excepted). Free e-books and those sold for less than 99 cents are excluded. The fiction and nonfiction lists in all formats include both adult and juvenile titles; the business list includes only adult titles. The combined lists track sales by title across all print and e-book formats; audio books are excluded. Refer questions to Peter.Saenger@wsj.com.

THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

Emotional Intelligence 2.0 4 Travis Bradberry & Jean Greaves/Talentsmart

Together Is Better Simon Sinek/Portfolio

The Daily Stoic 6 Ryan Holiday & Stephen Hanselman/Portfolio

Extreme Ownership 7 Jocko Willink & Leif Babin/St. Martin’s Press

A Man Called Ove 8 Fredrik Backman/Washington Square Press

The Five Dysfunctions of a Team Patrick Lencioni/Jossey-Bass

–

Cross the Line 9 James Patterson/Little, Brown and Company

The 4-Hour Workweek 9 Timothy Ferriss/Crown Publishing Group (NY)

Truly Madly Guilty Liane Moriarty/Flatiron Books

–

The ONE Thing 10 Gary Keller with Jay Papasan/Bard Press

THE WALL STREET JOURNAL.

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Saturday/Sunday, January 7 - 8, 2017 | C11

REVIEW

RICK WENNER FOR THE WALL STREET JOURNAL

‘We have been struggling since World War II, at least, to develop treatments.’

WEEKEND CONFIDENTIAL: ALEXANDRA WOLFE

Charles Marmar A doctor’s quest for better diagnosis and treatment of PTSD CHARLES MARMAR, a gregarious 71-year-old psychiatrist in New York, has spent his career studying post-traumatic stress disorder, which has symptoms such as sleep disruption and vivid flashbacks of the traumatic experience. PTSD is often associated with war: Between 11% and 20% of veterans who served in Iraq and Afghanistan have the disorder in a given year, according to the Department of Veterans Affairs’ National Center for PTSD. What many people don’t realize, says Dr. Marmar, is that an esti-

mated 85% of cases result from an event outside of the military, including sexual violence, a car accident or the violent death of a friend or family member. Outside of the military, women are twice as likely to develop PTSD as men—in part, he thinks, because women are disproportionally targeted as victims of interpersonal violence. PTSD is sometimes misdiagnosed as depression or anxiety, he says. An estimated 7.8% of Americans will suffer from post-traumatic stress disorder at some point in their lives, according to the National Center for PTSD. While our understanding of the condition has come a long way, says Dr. Marmar, chairman of psychiatry at NYU Lan-

gone Medical Center in New York, there is still a long way to go in both diagnosis and treatment. To better identify patients, NYU Langone is conducting studies to improve diagnosis through measurable medical tests, using tools such as magnetic resonance imaging and brain imaging. Current approaches for treating PTSD, such as long-term psychoanalysis and antidepressants, haven’t been effective at reducing symptoms in everyone. “We have been struggling since World War II, at least, to develop treatments for PTSD,” says Dr. Marmar. He cautiously supports controversial trials using MDMA, also known as Ecstasy, to treat PTSD.

(NYU isn’t involved in the research.) In the trials, conducted by the nonprofit Multidisciplinary Association for Psychedelic Studies, patients who haven’t responded to other treatments get three doses of the drug during talk-therapy sessions. (Patients also get regular psychotherapy, with no drugs.) Researchers believe MDMA may help people open up and revisit repressed memories, so they can better get over their trauma. In early trials involving 130 participants, two-thirds of those who took the drug no longer met the criteria for having PTSD after treatment. In November, the FDA approved large-scale, Phase 3 clinical trials of the drug—the final step before ap-

proval, which could come as soon as 2021 if the results are positive. Some psychiatrists worry that using MDMA may lead to drug abuse, but Dr. Marmar thinks the studies have shown promise for some patients. His department is applying for a federal grant to test another experimental compound: cannabidiol, a nonaddictive, non-hallucinogenic component of the marijuana plant. “In the animal studies [of cannabidiol], it’s been shown to be highly effective for stress and anxiety and cause no psychoactive effects like marijuana,” says Dr. Marmar. “It calms you down without getting you stoned.” The ultimate goal is to find more effective, personalized treatment for patients. “We don’t have yet robust treatments that will reliably bring a person back to who they were before they were traumatized,” he says. Dr. Marmar, the son of a homemaker and a family physician and surgeon, grew up in Winnipeg, Canada. He started going on hospital rounds with his father at age 5. “I probably got imprinted,” he jokes. Dr. Marmar went to medical school at the University of Manitoba, where he was initially interested in cardiology. But during an elective on a cardiac-surgery unit, he talked to patients about to undergo highrisk surgery and became more interested in what was on their minds in their vulnerable states. At the time, psychiatry was viewed as a lower-status medical specialty, especially outside of major cities—considered to be “soft science” and more emotional than biological. “I think psychiatry has historically been quite stigmatized in the history of medicine,” he says. It was one of the lowest-paid specialties, next to pediatrics. Still, Dr. Marmar wanted to find out what made people more or less resilient, and how those who had experienced trauma could get past it. He joined the San Francisco VA Medical Center in 1989, where he worked with police officers, military personnel, veterans and civilians who had been exposed to traumatic events. He eventually became chief of psychiatry there. In 2009, he joined NYU as chairman of the psychiatry department. Today, Dr. Marmar is seeing much more awareness of PTSD— and a rise in funding and interest in research has followed. Last year, hedge-fund manager Steven Cohen pledged $325 million to go toward mental-health clinics and research for veterans and their families over the next five years. That pledge came three years after a $17 million gift to NYU to create the Steven and Alexandra Cohen Veterans Center, which Dr. Marmar directs. He’s hopeful about coming progress, in part thanks to the brain-imaging techniques that were once the province of neurology and neuroscience. “Psychiatry was never considered serious because it didn’t have an organ,” says Dr. Marmar. “Now psychiatry has an organ—it’s called the human brain.”

MOVING TARGETS: JOE QUEENAN

I WAS QUITE IMPRESSED when I first tried Amazon’s personal assistant Alexa, mostly because of the music function. I welcomed the chance to turn over the pop-cultural car keys to the device (and whatever music service it’s running) by saying, “Alexa: Play music from the early ’90s,” or “Alexa, play anything but Weezer.” But then I noticed problems. When I told the resourceful, accommodating gadget to play music by Creedence Clearwater Revival, it dutifully put on “Bad Moon Rising” and “Green River,” both huge hits by the band. But then Alexa played a Creedence track I had never heard before. And a second obscure cut. None of these were classic Creedence or even especially good Creedence. They sounded like filler, bonus tracks, outtakes. This happened with other bands as well. But I am not singling out Amazon’s brainchild for abuse. I assume that, the digital world being

imperfect, other electronic personal assistants such as Apple’s Siri, Microsoft’s Cortana and Google Assistant have their own problems. And I recognize that they all do a great job looking up directions that will get you out of Muscle Shoals, Ala., in one piece, finding nannies that have never done time and sending high-quality, age-appropriate birthday presents to Mom. Still, the obvious gaps in the knowledge level of these devices worry me. “Siri, send flowers to the love of my life,” is the kind of routine command one gives to personal assistants. But what if Siri sends flowers to your girlfriend instead of your wife? What if you have more than one girlfriend and Alexa sends flowers to the wrong one? What if Cortana invites the wrong person—or several wrong people— to the senior prom? What happens if you tell your personal assistant to send an angry and even abusive

What if Cortana cancels your Supreme Court appointment?

message to “that swamp-trash pig Travis,” and it sends an angry message to all the swamp-trash pigs named Travis? As personal assistants increase in number, their effects could be felt more profoundly, throughout society. “Velcra, design a nickel package that will prevent Tom Brady from completing any deep passes to Edelman.” Or: “Darth, invent an excuse for not going to meet my angry constituents.” Or: “Fedora, redo the books so that the cash that came in from Medellín shows up as a birthday gift from Uncle Morris.” Yes, empowering personal assistants could lead to real disasters, both at the micro and the macro level. What if you absentmindedly tell your trusted device to cancel all your appointments and it cancels your appointment to the Court of St. James? Or the Supreme Court of the United States?

How are you going to walk your way back from that one? Because overworked or just plain lazy bureaucrats tend to take the path of least resistance, it isn’t hard to imagine someone at the Federal Reserve saying, “Cortana, cut interest rates.” That’s fine, as long as Cortana understands that interest rates should be cut only a quarter of a point at a time. But suppose a gadget goes rogue—as Alexa did with Creedence Clearwater Revival—and raises interest rates eight points overnight? Or suppose someone at the Joint Chiefs of Staff says, “Siri, bomb the implacable enemies of democracy,” and the bombs go off not only in Russia and North Korea and swaths of the Hindu Kush but in certain parts of northern Vermont and rural Idaho as well? What happens then? I’ll level with you: I see a bad moon rising. I see trouble on the way.

NISHANT CHOKSI

Will Alexa, Siri and Their Friends Go Rogue?

C12 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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REVIEW EXHIBIT MENGNIU HI! MILK, CHINA The boxy shape of the packaging lent itself to a cow’s face (ears included).

ALL WRAPPED UP MAYBE you can’t judge a book by its

cover—but what about consumer goods? “The Package Design Book 4” (Taschen, $59.99) showcases over 400 winning products from the past two years of the Pentawards, an international competition that recognizes creativity in packaging. Technology has paved the way for more innovation, and digital printing has made experimentation less expensive, says the book’s editor, Julius Wiedemann. Today, “packaging is much more vibrant,” he says. “Now the package has to communicate and sell as much as it needs to inform.” —Alexandra Wolfe

HOLIKA HOLIKA ALOE, SOUTH KOREA This shower gel packaging is meant to resemble the aloe plant’s spiky leaves.

FENGFAN FARM BAG, CHINA This bag is filled with both wheat and rice, each incorporated into the art. Fish can represent abundance; the two words sound similar in Mandarin.

BIC SOCKS, GREECE Different socks in the series get different ‘shoes,’ such as a formal shoe for a black sock.

BURGER KING WHOPPER, U.S. The Halloween-themed burger inside had a black bun flavored with A1 steak sauce.

FRUIT TOILET PAPER, JAPAN In Japan, stores and companies sometimes give toilet paper rolls to customers as signs of appreciation. This was designed to be a novelty gift.

TASCHEN (6)

PLAYLIST: NANCY SILVERTON

In the Kitchen With ‘Layla’ A chef and her friends enjoy an unusual after-dinner jam in Italy Nancy Silverton, 62, is co-owner of the Mozza Restaurant Group in Los Angeles, Newport Beach, Calif., and Singapore. She is the author of the cookbook “Mozza at Home” (Knopf). She spoke with Marc Myers.

EVERETT COLLECTION

Nine years ago, I was in one of my favorite places—my little house in Italy on the Umbria-Tuscany border. I still spend six weeks every summer there. On this particular night in 2008, I found myself belting out Eric Clapton’s “Layla”with my dinner-party guests—which isn’t at all the sort of thing I do. I had bought the house in 2002 after selling my La Brea Bakery in L.A. I love to cook when I’m away. When I’m working, I don’t have a chance to fool around with food and recipes. I also began to throw three or four parties each summer. Since I typically invited everyone I met in the village, about 50 people came each time. After I served, I’d sit down, happy and exhausted. On this particular night, a dozen of us ended up back in the house afterward at my large kitchen table. On the table were about a dozen half-filled wine bottles. Among the stragglers was Tony, a famous English drummer, and Bobby, a retired lawyer who knows wine and loves music. Tony started to play the bottles with a stick. Then Bobby jumped in. Inspired, they emptied a few of the bottles and added wine to a few others. Soon they began playing a song everyone knew right away. “Layla (Acoustic)” comes from Clapton’s live “Unplugged” recording in 1992. Unlike the more famous wailing electric version from 1970, the ’92 version is slower and has a loping, earthy feel as Clapton gently croons the song. We all sang the song slow, like him, but at the top of our lungs: “Layla, you’ve got me on my knees / Layla, I’m begging, darling please / Layla, darling won’t you ease my worried mind.” That was a new experience for me. The last time I sang in a group like that was in camp. I’m someone who is always in control and rarely lets loose. Yet there I was, singing away in my kitchen. After the party, I rather liked the new me, briefly. My guests will never see it again. That was fun, but it really ERIC CLAPTON in London, June 1996. isn’t who I am.

ASK ARIELY: DAN ARIELY

Tips for Getting Good Service? Dear Dan,

Some restaurants have made news recently by eliminating tipping. But will the long-term effect be worse service? —Phil I wouldn’t expect a decrease in the quality of service. I’m not sure that tipping is a particularly motivating reward to begin with. For one thing, tips in many restaurants are often pooled among employees. That means that the gratuities are averaged across workers, so individual waiters won’t immediately or strongly experience the benefits (or punishments) that stem from superb or lousy service. Furthermore, statistical modeling by Ofer Azar of Ben-Gurion University of the Negev found only a small relationship between tips and service quality. He concluded that other factors had more influence on the type of service that you’re likely to get. If anything, I suspect that eliminating tipping and giving waiters a stable, living wage would improve the quality of service. Without the vagaries of tips, restaurant employees would have a consistent, dependable income—and, perhaps, higher job satisfaction. That would help lower employee turnover and raise profits for the restaurant. These are all fine reasons why more restaurants should get rid of tipping.

Dear Dan,

I’ve found that the most interesting people to talk to are often obsessed with a topic, whether it is food, music or economics. How can I increase my likelihood of meeting this type of person? What questions can I ask to uncover people’s passions when I meet them? —Riley When we meet someone new, most of us have a puzzling tendency to start the conversation as if we are exchanging resumes. We typically don’t go beyond questions like “What do you do?” and “Where are you from?” But the key to a good conversation isn’t meeting the right type of person; rather, as you suggest,

the trick is asking questions that allow almost anyone to reveal who they are, what they have experienced and what they are passionate about. Often, the questions that can help put a bit more depth into our conversations are more complex than the standard “What do you do” approaches. They also require more openness, effort and daring from the person asking the questions. Think of asking new friends about their ideal dinner companion, living or dead, or about the heroes they most admire or about the aspects of their life for which they’re most profoundly grateful. It may be a little unfamiliar, but such questions do get conversations going in very different directions. I know from personal experience that starting conversations by asking nonstandard questions isn’t always easy. But as you get more used to asking such questions, your discussions will become more interesting. We all want lives filled with meaning, so we should get beyond the default of vacuous conversation-starters. JAMES YANG

Dear Dan,

I recently learned about the Stockholm syndrome, in which captives develop sympathetic feelings for their captors. I know that the parallel isn’t exact, but does this dynamic operate in marriages too, with both partners (in a metaphorical and emotional sense) seeing themselves as imprisoned in a way and the attraction to the person “capturing” them creating a stronger relationship? —Abhinav Sorry, but the Stockholm syndrome just isn’t a sensible way to think about marriage—not least because marriage lacks the glaring power difference between the person doing the capturing and the person being captured. But now that I think about it, maybe the syndrome is a good way to think about spending the holidays at your in-laws, and perhaps this glue helps keep families together during those trying times.

Have a dilemma for Dan? Email AskAriely@wsj.com.

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | C13

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PLAY NEWS QUIZ: Daniel Akst 1. President-elect Donald Trump will nominate Jay Clayton to head the Securities and Exchange Commission. What law firm is he with?

in Paris is the subject of a new exhibition. Who designed it?

A. Tasmanian timber futures B. Closed-end mutual funds C. Exchange-traded funds D. Tontines

To ring in the New Year, here’s a problem about the number 2017. What is the last non-zero digit of 2017! (the factorial of 2017 = 2017 × 2016 × … × 2 × 1)?

Not Dozens Chris adds up all of the positive whole numbers less than 1,728 that are not integer multiples of 12. What sum does Chris obtain?

7. Struggling Sears is selling one of its iconic brands. Which? A. Cartier’s B. Coach C. Craftsman D. Kenmore

For previous weeks’ puzzles, and to discuss strategies with other solvers, go to WSJ.com/puzzle. ILLUSTRATION BY LUCI GUTIÉRREZ

8. The bowl-juggling, unicycling woman known as Red Panda has become a TV hit. In what venue has she achieved fame?

A. “Shock and awe” B. “Denial and hysteria” C. “Giddy relief” D. “Considerable uncertainty”

FROM TOP: EUROPEAN PRESSPHOTO AGENCY; ISTOCK

Festive Factorial

A. Jerry Brown B. Chris Christie C. Andrew Cuomo D. Henry Higgins

3. After Donald Trump’s election, what did Fed officials grapple with at their Dec. 13-14 policy meeting?

A. Beijing B. NBA basketball games C. College bowl games D. PBS fundraising drives

4. A Google artificial intelligence program, playing anonymously online as “Master,” beat the world’s top player—in what game?

9. Which of these well-known pundits decided to stop writing his syndicated column?

A. Online dating B. Go C. Bridge D. Canasta

A. Herb Caen B. George Will C. J.J. Hunsecker D. Thomas Sowell

5. The renowned Maison de Verre (Glass House)

National Museum of Mathematics

talking with a fellow passenger on a plane, who says that a math coach “must really be good with numbers.” Coach Newton chuckles and says, “Not really, math is about much more than numbers!” But the remark does provide the inspiration for a couple of number-related problems this week.

6. Which governor commuted the sentence of ex-radical Judith Clark for her role in a 1981 armored car robbery, making her eligible for parole?

2. Fidelity Investments has changed course to offer more of what type of investment?

Provided by the

Coach Newton gets to

A. Jean Nouvel B. Pierre Chareau C. Christopher Wren D. Eileen Gray

A. Sullivan & Cromwell B. Weil Gotshal & Manges C. Squire Patton Boggs D. Dewey Cheatem & Howe

VARSITY MATH

From this week’s

Wall Street Journal

To see answers, please turn to page C4.

Learn more about the National Museum of Mathematics (MoMath) at momath.org

SOLUTIONS TO LAST WEEK’S PUZZLES Four S Seasons H A M S R E D L A N D

C A S I N O R O C H I A

A N T R A C E N A O M I

B K E S I C E E E Y B S

D I R E L Y N G U L L Y

R E D T E A S A L O E G

E E H T A C U L O T T E

D U A L S A J A G U A R

G C O E E R I L Y S K E

A L R E D I R I S G E T

G I C E I C E A T I O N

E D A S N E R S I E N A

Pike’s Peak O S C A R

C H E S T

F A I R

E R N O

H O R S E S E N S E

Y A WH C E AM

R E O S

F R I A R

E N E M Y

In autumn, green turns to red; in winter, tarn/pool/pond/rain turn to ice; in spring, bud becomes daisy/iris/lotus/aster; in summer, smith/bard/penn/yale are “out.”

R A N C H

E R A V E R AM I C N O H TW I A R A N L I N G E S S E T P A B A O R E L N A J A T N O I B E C R A Y H A G E D S H E E O S S E N E P E S A D

S A T Y R S L R S

S T E E L

Y O O H O F O I S T L B O R I A T C E E R D S

E S T Y A L S A M I P E D S T E I S S D MO R O N Y T E A P L E A F L L S M P S V L I I N P O

A N A G R A M R O O F T O P N E E D S

C E R E A L

H A R D C

H B I A G S H S L E T A Y R E S A C N O N B I A E R

E T E S K L E O L O T K O O N U T I S H A A T S E T I H T M A C E L

L A T I M E S

O P I N E

L I N D A

L E G A L

E A E R F L E I S A R O H C L A T I L R V E L E T E O R A K E R L E N A S S

T R A Y O M A R E L S I E

Varsity Math Last week’s Snug Circle, misstated part of the problem: The radius of circle a, not circle b, is two. The center of circle a has coordinates with absolute value (4 3, 2). For Congruence Time, a Los Angeles clock and a New York clock will first have the same angle between the hour and minute hands at 8 2/11 minutes after midnight in L.A.

ACROSS 5. HANK + IE 6. EUCLID (anag.) 7. ORC + A 8. SEaTTLE 10. S + NAIL 11. EASED IN (anag.) 14. DONE + GAL 17. AL(I)AS 20. EULOGY (“Yule a G” hom.) 21. A + HOmeY 22. NI(MB)LE 23. TAKE ON (anag.) 24. ETNA (rev.) DOWN 1. S(HAM)S 2. D + I + RELY 3. DUALS (anag.) 4. ED ASNER (hid.) 9. EERILY (“deli rye” minus “d” anag.) 12. CU(LOT)TE 13. J(AGUA)R 15. NAOM + I (“moan” rev.) 16. GULLY (2 defs.) 18. SIENA (anag.) 19. CHI + A SEASONS A. GREEN TEAS (anag.) B. SMITHEREENS (anag.) C. TAR + NATION D. C(ARP)OOL E. G + REENGAGE F. S + CAB + BARD G. PEN + NAN + TRACE H. GREENLAND (anag.) I. CASINO ROYALE (anag.) J. BUDGE (2 defs.) K. SPONDEE (anag.) L. BU(D)G + ET M. AL GREEN (anag.) N. B + UDGIE (“guide” anag.) O. GR(A)IN P. BUDD + HA

THE JOURNAL WEEKEND PUZZLES Edited by Mike Shenk 1

31 38

28 32

68 76

112

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87 92

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107

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Silent Treatment | by Alex Eaton-Salners Across

53 Monkey around the lab 55 “Non, je ne regrette rien” singer 57 I may stand for it 58 “My turn!” 59 Unmannered fellow 60 Mailed some sweetbreads? 63 “Where Have All the Flowers Gone?” songwriter 65 As well 67 First 68 Music’s Brian 69 Acapulco uncle 70 Email alternative 72 Fish with winglike fins 73 Rips into 77 Tricksy 79 Finally 83 What we nearsighted folks need when watching movies? 85 Misfortunes 87 Westwood sch. 88 Make faces 89 Pianist Hess 90 Like some Coast Guard rescues 92 Earthy color

93 Downward dog, e.g. 95 Ring legend 97 Beavers from New England? 99 Show audacity 100 Priceline pitchman 102 “Frozen” princess 103 Enjoy Sundance 104 Bus. bigwig 106 Docket listing 108 ___ Boy (gin drink) 110 Result of a new moon? 115 Book flap feature 117 Propagating wave 121 Launch 122 Kyoto’s Golden Pavilion, say? 125 Mary Magdalene, to Jesus 126 Slips of paper? 127 Put on cloud nine 128 Second of a double-header 129 Motherland 130 Checks for quarters

Down 1 Corvine calls 2 “You crack me up!” 3 “East of Eden” twin 4 Checks out

5 6 7 8 9 10 11 12

13 14 15 16 17 18 19 24 29

31 33 35 36 37 39 41 42

Wallops Fort Collins sch. Note providers Unspeakable Unpleasant odors Gold: Prefix Cars with cords 19th-century political cartoonist Touch Psychologist Abraham Clear sky, to poets Concluding bit “Fernando” band Ziggy Stardust’s genre Djokovic, e.g. Spiral-horned antelope Somali model who was Bowie’s wife Train to the Tuileries Early gramophone star Jamaican tangelos Garden fixture World Court home, with “The” Former Reds owner Marge Crunch’s rank Passing notes?

1 2 3

A B C

D E

6 7 8 9 10 11 12 13 Marching Bands | by Mike Shenk Answer words in this grid march both across (“Rows”) and around (“Bands”). Each Row has two answer words to be entered across, from left to right. Their dividing point is for you to determine, except in row 7, where the words are separated by a black square. Each Band has answer words to be entered clockwise, in a continuous string around the shaded or unshaded band, starting at a lettered square (A–F) and ending in the space below that square. The dividing points in each Band’s string of words are also for you to determine. All clues are in order. When you are done, each square will have been used twice, once in a Row word and once in a Band word.

Rows 1  Large body of eau salée  Projecting beam used in some bridges 2  One can hold your horses  Take back into the hospital 3  Brand that sold Uniflo Motor Oil  Where thrill-seekers like to live (3 wds.) 4  Heroic action (Hyph.)  This clue missing one 5  Paris-based agency that promotes the exchange of ideas and culture  Business that might hold tastings (2 wds.) 6  Levi’s reinforcers

 Britten’s “Rejoice in the Lamb,” e.g. 7  Tool kit staple  Pieces on a sideboard (2 wds.) 8  Character who first appeared in 1919’s “The Curse of Capistrano”  Get back 9  Pledge of loyalty, in olden days  Reacts maliciously toward (2 wds.) 10  Ella who co-starred with John Wayne in “Tall in the Saddle”  Author of “The Sea, the Sea” and “The Good Apprentice” 11  Is reminiscent of  Income 12  Heroic son of Zeus and Alcmene  Take exception 13  Contemporaries (Hyph.)  Surrey town with a famed racecourse nearby

Bands A  Concerning the exchange of goods for money  One with a backbone  Lunchbox accessory s

1 Canceled order? 6 Watched some Persians, say 12 They’re worn on the chest 20 Cry of frustration 21 David, famously 22 Subject to remedying, as a nuisance 23 1 through 18, on a golf scorecard? 25 Place for a raw deal? 26 With reason 27 Founder’s successor, perhaps 28 Brief escape? 30 Go out with a bang? 32 Philosopher with a razor 34 Extracted deposit 35 Reaction to liver, for some 38 They may be tapped out 40 Hits the roof 43 Deal breaker? 47 Man at home in D.C.? 50 Collar 51 Psychologist Alfred 52 Nascar car coverers

44 Free of friends 45 Splits 46 Trough’s opposite 48 Popular BBC show 49 Fearless efforts 51 Out of debt 54 Mock 56 Gathering places of yore 59 Brit’s bumbershoot 61 Belief in a strong central government 62 “Were you successful?” 64 Poser 66 ___ grudge (was resentful) 71 Coal tar distillate 73 Running back Bradshaw 74 “Semper Fidelis” composer 75 Honeybunch 76 John’s running mate in 2008 78 Private digressions 80 Massage targets 81 Lustrous 82 Foot bones 84 Room, to Ricardo 86 Clapton classic 91 Exceptional individual 92 Like a sprinkler system, often 94 Windsor, e.g. 96 Hankering 98 Elroy’s pet 100 Handel creation 101 Channel branded with a yellow rectangle 105 Scraping (out) 107 “The Da Vinci Code” monk 109 Cobbler’s material? 110 It takes turns 111 “Frozen” princess 112 Warden’s worry 113 Bit of news 114 Roberts’s “Pretty Woman” co-star 116 “The Simpsons” bus driver 118 Map out 119 Estonian’s neighbor 120 Custody battle participants 123 Browser’s target 124 Bounder

 Banco de España currency until 2002  Computer memory bus speed unit  Strait-laced sorts B  First chance for the cast, director and writer to go through the screenplay together (2 wds.)  Move from one place to another  No matter?  Car with a “horse collar” grille  Give a hoot  Famed New York comedy club C  Any minute now  For whom the bell tolls  Cheapens  Like some simple poems and songs (Hyph.)  Indiana-Kentucky border (2 wds.) D  Burden for Frodo  Fit together perfectly  Kit with sticks  Menu section E  One sharing a prize (Hyph.)  Became scanty (2 wds.) F  Throws to the wind

Get the solutions to this week’s Journal Weekend Puzzles in next Saturday’s Wall Street Journal. Solve crosswords and acrostics online, get pointers on solving cryptic puzzles and discuss all of the puzzles online at WSJ.com/Puzzles.

C14 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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REVIEW AN ARCHED RECESS in the Jewish catacombs under Villa Torlonia, with several burial cells and a ceiling depicting stars and planets.

A Labyrinth Under Rome After years of delay, Villa Torlonia’s Jewish catacombs are set for restoration BY JOHN HOOPER TUCKED AWAY on the grounds of Villa Torlonia, a stately mansion in northern Rome, a staircase overhung with creepers leads down to an underground area measuring almost three football fields and harboring an archaeological treasure. Beyond a black door begin two interconnecting catacombs—webs of passageways lined with niches for the burial of the dead. The niches run parallel to the walls and are stacked up to five high. Here and there are grander recesses where the more prosperous of the deceased were interred in sarcophagi. Traditionally, the ancient Romans cremated their dead. But cremation was abhorrent to Rome’s Christian and Jewish minorities. Since land was scarce and costly, it made sense for

both communities to bury their dead underground. Most of the 40 catacombs discovered in other areas beneath the old imperial city served Christians, but the two under Villa Torlonia were created for the city’s sizable community of Jews. This week, a central-government budget went into effect which, after more than 10 years of delay, allots €1.4 million (about $1.5 million) to restoring Villa Torlonia’s Jewish catacombs. If things work out, within a few years—maybe even next year—the public will be able to see an “area of extraordinary historic importance,” as Claudio Procaccia, director of the Department of Jewish Culture of the Jewish community of Rome, calls the site. Paintings of stars, planets, peacocks and pomegranates decorate the walls and ceilings, along with a dolphin arching over a trident. One of the grander niches has small columns at each corner and a frescoed cross vault with

a depiction of a menorah. There are images of sacred Jewish symbols, including an ark with the scrolls of the Torah, and several inscriptions referring to synagogues in the city. But as Monica Zelinotti, the architect charged with managing the restoration, says, not every visitor to Rome will be eager to explore these catacombs. Gouged out of brownish-gray rock, they are eerie places: damp, claustrophobic and, of course, scattered with human remains. “The humidity can be as high as 100%,” says Ms. Zelinotti. The ceilings of the passageways are low. “In places, the space between the niches is no more than the width of your shoulders,” she adds. Currently, a main passageway illuminated by construction lighting winds through the catacombs. Off it run more than a dozen sidepassages that disappear into darkness. Many of the bones of the dead have disappeared, though why, where or when is unknown. “So

An area of ‘extraordinary historic importance.’

far, I have not come across a single complete skeleton,” says Ms. Zelinotti. At its peak, ancient Rome’s Jewish community is thought to have numbered around 30,000 out of a total population estimated at between 500,000 and one million. The earliest Jews came to Rome as traders in the second century B.C. By 59 B.C., they were sufficiently numerous for Cicero, defending a Roman official accused of appropriating funds for Jerusalem’s great Temple, to complain that large numbers of Jews had turned up at the trial to root for the prosecution. After the Roman Empire sacked Jerusalem and destroyed the city’s Temple in A.D. 70, Rome became a place of refuge for Jews. But Villa Torlonia has sinister associations. Benito Mussolini lived here, signing off on anti-Jewish laws. Later, he sent around 7,000 Italian Jews to die in Nazi death camps. The website of the Vatican lists a half-dozen Christian catacombs open to the public, and for many decades tours have made stops at them. The first Jewish catacomb was discovered in the 17th century. Workmen hit upon the warrenlike cemetery under Villa Torlonia while reinforcing the foundations of the stables in 1918. Over the centuries, six Jewish catacombs have been discovered in the honeycomb rock beneath Rome. Some have since caved in; others are inaccessible under privately owned land. In 2012, archaeologists discovered part of a catacomb after a sinkhole opened up and swallowed a truck. Last year, one Jewish catacomb on the outskirts of Rome opened to the public, but for only a couple of weeks. Ms. Zelinotti says that her biggest task will be to stabilize the Villa Torlonia site. In parts, the walls between niches have given way. In one place, the ground above is sagging. She and her colleagues will have to find a way to protect the wall paintings. The humidity in the catacombs is so high that some are permanently dotted with droplets of water. “The moment we bring in visitors, more fresh air will circulate,” says Ms. Zelinotti. “The water will evaporate and may carry away the pigment.” For Mr. Procaccia, the benefits of opening up the catacombs far outweigh the risks. He hopes for a new program of scholarly investigation and excavation. “There is a world to be discovered down there,” he says.

MUNICIPALITY OF ROME

MASTERPIECE: ‘IN A STATION OF THE METRO’ (1912), BY EZRA POUND

LIFE AND DEATH DISTILLED INTO TWO LINES IT IS THE MOST anthologized “Imagist” poem, written in 1912 by Ezra Pound (1885-1972) and published in Harriet Monroe’s Poetry in 1913. It began life as 30 lines; then it became two, after Pound tossed the original away and started again. It is “In a Station of the Metro”: The apparition of these faces in the crowd; Petals on a wet, black bough. Before he went certifiably mad, fulminating with anti-American, anti-Semitic rants during Word War II, Pound was among the major poets of modernism. He worked as W.B. Yeats’s secretary; most famously, he helped T.S. Eliot whittle “The Waste Land” down to half its original size. Before he became an avatar of bigness with his sprawling, multipart “Cantos,” he was a master of minimalism. But big things often come in small packages. If you include, as you must, the title, the poem has three lines. Together, they suggest a loose version of a Japanese haiku (with 6-8-6 words per line, in place of the classic classic 5-7-5 syllables). If you consider only the actual poem’s two lines, you have 14 words, and therefore a thing that maintains, owing to its 8 and 6 combination, a resemblance to another short form: the Italian sonnet. The numbers dazzle. The words themselves dazzle even more. Nothing could be simpler, or more complex. We know the backstory. Pound was at the Metro stop at Paris’s Place de la Concorde. He saw some people. His vision inspired a response. This took the form of a metaphor, a poet’s essential tool: X “is,” or “is like” Y. Pound’s is not only a comparison; it’s also an equation. Pound makes pairings. Line 1 shows us people, almost ghostly, and Line 2 what they resemble, petals. We can go more deeply. “Apparition,” the poem’s longest word, implies otherworldliness, even deadliness. Living people have become unreal. They also become examples of

after. A semicolon normally divides two clauses, each with a verb—two halves that could stand as complete sentences. Pound must have made a mistake. His lines are phrases; they contain no action. The poem has no verbs. Not so fast: By using the semicolon, Pound both separates and unites his two lines. It is as if he is saying “I’m seeing these faces here at the subway; they remind me of nature’s delicate, transient beauty.” Or, more simply, “faces are like petals.” He tightens, minimizes and condenses. His two thoughts come both sequentially and simultaneously. The first thing precedes and is identical to the second. All good poetry combines concision and suggestiveness. One other suggestion in this poem returns us to the “apparition” and a rich, indeed epic, poetic history of people and leaves. In book 6 of Homer’s “Iliad,” the Trojan ally Glaucus confronts his Greek foe Diomedes, who asks him about his lineage. He replies (my translation): “The lives of men are like the generations of leaves; one comes, another dies.” This is one of the most fruitful images in Western literature, siring its own progeny. Virgil repeats it in book 6 of the “Aeneid”; Dante uses it in his “Inferno,” and Milton in “Paradise Lost.” It is the trope of the fallen leaves. Homer’s successors, however, place their men, and their metaphorical leaves, in an underworld. Things go by different names in different languages or places. In Paris, there’s the Metro. Americans have the subway. In London, they call it the Underground. In all cases, it is the place beneath, the border between the living and the dead. Pound knew what he was doing.

RYAN INZANA

BY WILLARD SPIEGELMAN

nature’s fragile beauty. Rain has polished the petals, which have fallen from their stems and attached themselves to the boughs of the tree from which they will soon drop, farther, to the ground. Transience, mortality and ghostliness come together. Pound aimed to do away with late Victorian poetic folderol and verbiage. His flowers are mostly unembellished. They are petals, not even entire flowers. (And his people are mere faces. Parts stand for wholes.) The poem is adjectivelight. Aside from the neutral “these,” we have only the strong, simple “wet” and “black.” He also wanted to change poetry’s sounds. No more rhyme, no more lilting rhythms: instead, easy, free verse. But wait: The little cou-

plet has its own music. “Crowd” and “bough” make a partial rhyme; “black” and “bough” are linked by alliteration. There’s even a rhyme hidden in the first syllable of “petals” and “wet.” Pound was a sly versifier. His poem is like a snapshot in its seeming offhandedness. It freezes its two images, stimulus and response, into a single frame across its two lines. The break between them is the poem’s most tantalizing element. The central equation is unstated yet strongly present. You might call it “apparitional.” Any English teacher trying to drum into his students the importance of punctuation will have a field day with that semicolon at the end of line 1. We would expect a colon, which equates what comes before with what comes

Changing the way poetry worked.

Mr. Spiegelman’s most recent book is “Senior Moments: Looking Back, Looking Ahead” (Farrar Straus Giroux).

Writer Ottessa Moshfegh on a love affair flavored with gin

A brief history of exercise equipment—from caveman spears to kettlebells

D10

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DESIGN

DECORATING

ADVENTURE

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TRAVEL

GEAR

GADGETS

Saturday/Sunday, January 7 - 8, 2017 | D1

CLICK BAIT A Chanel jacket available from vintage retailer What Goes Around Comes Around, $2,750

Chanel Surfing Shopping for vintage clothes is being transformed by the digital revolution. Here’s how to navigate the online marketplace—a far cry from dusty basement boutiques—and hunt down historic deals

BY NANDINI WOLFE

UYING A 1970S Chanel 2.55 bag or a candy-wrapper Latex top from Helmut Lang’s fall 1994 collection is now as easy as typing those exact words into Google. Well, almost. The internet has transformed the often musty displays of secondhand stores and hard-to-access racks of top-notch consignors into an organized, global treasure trove. “The vintage world was so deeply outdated,” said Gill Linton, CEO and founder of 5-year-old website Byronesque, which focuses on avant-garde ’80s and ’90s designs from brands like Comme des Garçons and Yohji Yamamoto. “It was a massive chore, and we wanted to make sure there was massive cer-

tainty [to shopping it]—and to make it as exciting as a contemporary fashion brand.” Hers is one of a number of websites that have sprouted up in the past few years, making a once-niche market considerably less off-putting and open to all. There’s La DoubleJ, an editorial and vintage e-commerce site based in Milan that focuses on colorful European vintage from the ’30s to the ’90s. There’s the rich fashion and jewelry section at 1stdibs—an all-in-one online marketplace that hosts independent sellers of everything vintage from Milo Baughman cube chairs to Hockney prints. And larger, established brick-and-mortar retro clothing stores that opened in the 1990s, such as Decades in Los Angeles and New York-based What Goes Around Comes Around, have created easy-to-browse websites to expand their customer base beyond

the faithful insiders. It wasn’t always like this. When luxury fashion brands and retailers began creating sophisticated e-commerce sites 10-plus years ago, the existing vintage sites felt stuck in the primitive days of dial-up. Images tended to be poorly lit and unappealing. Currently on Decades’ site, you can see high-resolution shots of pieces like a satin Jacques Fath cocktail dress from 1954, with a seductive detail of its floral embroidery. It took even major vintage sellers like Decades a while to get it right. When it opened its brick-and-mortar shop in 1997, its “website” consisted of a page featuring little more than an email address. In the last decade, founder Cameron Silver has evolved the site into one that’s not only shoppable but nuanced and personal. Please turn to page D2

[ INSIDE ] GO WITH THE WHOLE GRAIN Proof that desserts baked with virtuous flours can taste quite sinful D5

THE LOVELY OLD BONES Progressive design meets preservation in a 1909 Manhattan apartment D8 FOCAL POINTERS Glass frames that will help you stand out from the Warby Parker pack D3

CUISINE’S NEXT WAVE A multi-cultural restaurant scene is cresting in Sydney’s Bondi Beach D7

F. MARTIN RAMIN/THE WALL STREET JOURNAL; PHOTO ILLUSTRATION BY JOHN KUCZALA MOUSE CURSOR: ISTOCK

EATING

D2 | Saturday/Sunday, January 7 - 8, 2017

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THE WALL STREET JOURNAL.

STYLE & FASHION

MOBILE MARKET E-commerce sites like Stiina’s (stiinas.myshopify.com) let you shop for vintage clothes from your desk. iPad Pro (9.7-inch), from $599, apple.com; Wallet, $725, markcross.com; Paper Journal, $11, shinola.com; Loewe Elephant Charm, $380, loewe.com Continued from page D1 “We are so hands-on,” said Mr. Silver, who responds to customer service questions himself. You might think that the new efficiency of buying vintage online would have eliminated part of the fun—the thrill of uncovering a covetable frock in an obscure corner of a shadowy store and buying it for a song. After all, the rule with vintage shops is that the cleaner and more merchandised the stock, the higher the price. Online vintage, however, is both a seller’s and buyer’s market. “You can search around and see what other sites have sold a piece for,” said New York creative consultant Kate Foley. “It helps you gauge what a good price is. In a store, I often felt conned or pressured into buying. You can be a little bit more in control online.” Shopping these sites has fueled her appetite for vintage, especially for the Yves Saint Laurent dresses she has scored on 1stdibs—and even Etsy.

The online vintage world opens up new horizons for even veterans. Jonquil O’Reilly, an assistant vice president specialist in Old Master paintings at Sotheby’s—who has long bought and collected decadesold clothes—prefers to touch and try-on before committing, but she bought her emerald green Oscar de la Renta wedding gown, circa 2000, from Alexandra New York, a dealer she came across by using 1stdibs’s city filter. “These are places I wouldn’t find otherwise,” said Ms. O’Reilly. “They have studios you can’t walk into off the street.” Most sites work hard to allay any concerns that arise from buying online versus in person. They offer detailed descriptions and measurements—as well as authentication guarantees and personalized customer-service via phone, email or, in the case of Los Angeles shop Sielian’s Vintage Apparel, direct messaging on Instagram. Most accept returns, too. It certainly takes some of the anxiety and hassle out of

putting that sequin, color-blocked ’70s Bill Blass halter dress ($2,400 at Decades) into your virtual shopping cart. That doesn’t mean buyers shouldn’t still proceed with caution and due diligence. Don’t be afraid to ask for more information,

‘Set a Google alert for “vintage Chanel jacket.” You don’t know what will pop up. That’s the glory.’ said Decades founder Mr. Silver. “You don’t know if it was taken in or let out.” And he advised, “You should know your measurements.” Because there’s less demand for clothes than accessories, they typically sell for better prices. Looks by unknown designers can be even

more economical. La DoubleJ founder, J.J. Martin, recently sold a white silk-screened ’70s dress from an obscure designer for around $370. “It’s a no-name dress but it was so beautiful and special—a steal for under $500.” A former fashion journalist and contributor to The Wall Street Journal, Ms. Martin loves uncovering good stories as much as she does good deals. For instance, she explained, before the 1990s, most Italian costume jewelry was still crafted by hand, making sculpted pieces by midcentury Roman designer Elviretta (most are available for $150-$400) a bargain. To clue in potential shoppers, she penned a story about the designer for her website. Byronesque does a fine job of educating its shoppers, featuring videos of fashion insiders discussing their favorite throwback runway shows—an entertaining and useful bit of added value. Another service: If a piece is sold, said CEO

and founder Gill Linton, she will try to find another. “We will hunt it down.” The online vintage world has come far, but it’s still growing. Though the e-commerce site for 23-year-old vintage chain What Goes Around Comes Around recently relaunched with a focus limited to accessories, CEO Seth Weisser said it would be expanding to sell clothing as well next month. Mr. Weisser’s best advice for the online-vintage novice is to compare with care when shopping around for better prices. “When you’re looking at an A-quality Hermès bag and a B-quality Hermès, the price difference could be $5,000.” But you may not want to invest in a luxury bag with a torn lining or stains. Even online, the thrill of the hunt-and-capture is still there. It just comes in a different medium. “Set a Google alert for ‘vintage Chanel jacket’,” said La DoubleJ’s Ms. Martin. “You don’t know what will pop up. That’s the glory.”

NO DUST, NO FUSS: 5 LUXE ONLINE VINTAGE DESTINATIONS The world wide web is big. These sellers of Hermès bags and Lacroix dresses can help you home in on what you’re looking for

@SIELIANVINTAGE

WHATGOESAROUNDNYC.COM The website of this 23-year-old vintage chain (with 6 locations) only sells accessories (Chanel bags, Hermès watches) but will add clothes next month. Chanel 2.55 bags (1996-97), $3,500 each

LADOUBLEJ.COM Founded in 2015 by an American vintage lover living in Milan, the site focuses on colorful La Dolce Vita styles. It also features photo shoots, showing how chic women wear the clothes. Balestra Jacquard Skirt (1980s), $1,575

The Los Angeles vintage shop operates a highly shoppable Instagram feed with scads of glamorous dresses. You can buy via direct message or its 1stdibs store. Christian Lacroix Dress (1990s), $2,250, 1stdibs.com

1STDIBS.COM

BYRONESQUE.COM

The glossy portal to the very high end of the resale market has one of the best search functions around, allowing you to filter by period, designer, color, price and more. Gianni Versace Jacket (1990s), $660

The hybrid editorial/e-commerce site, founded in 2012, focuses on avantgarde designers like Comme des Garçons, Yohji Yamamoto and Martin Margiela. Maison Martin Margiela Trompe L’Oeil Coat (1996), $2,000

F. MARTIN RAMIN/THE WALL STREET JOURNAL (IPAD, DRESS); JOSHUA SCOTT FOR THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI (4)

RETRO THREADS: FROM IPAD TO YOUR PAD

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STYLE & FASHION

A New Underworld Sleeker and smarter than ever, base layers are your secret winter weapon BY JACOB GALLAGHER

CASHMERE SWEATER offers posh assistance. A face-obscuring scarf helps, too. I’ve learned, however, that the real secret to fighting truly cruel cold is to wear legging-like pants under your trousers. I’m not talking about your father’s “long johns”—saggy and sad with the texture and style quotient of a burlap sack. These are base layers: closefitting, lightweight and almost supernaturally warm. And unlike long johns, which convey a sort of folksy, log-cabin sensibility, “base layers have more of a tech element,” said Angelo Spagnolo, 28, a staff writer at the website BuzzFeed, who wears Uniqlo Heattech tights under his trousers as a seasonal suit of armor. While athletic brands have long sold thick compression under-layers, intended to help you retain body heat when you’re snowboarding or ice skating, recent innovations have allowed for thinner, lighter iterations that are bringing the concept off the ski slopes and onto city streets in a big way. When seen on store racks, the new guy-leggings (and long-sleeve T-shirts)—from both relative newbie brands like Aether and stalwarts like Patagonia—look interchangeable, like identical castoffs from Spiderman’s closet. Unless a cold front happens to be plowing through the fitting room, the only way to test them is out in the real world. And so I did during a recent trip to Santa Fe (average December low: 18 degrees). Here, a brief guide to four base layer pants from the most popular brands.

THE SPORTY SYNTHETIC Falke ¾ Tights $125, falke.com

THE DOUBLE AGENT Uniqlo Extra Warm Heattech Tights $15, uniqlo.com

THE MODERN MERINO Aether Merino Base Layer Pant $85, aetherapparel.com

THE ECO-FRIENDLY OPTION Patagonia Capilene Lightweight Bottoms $49, patagonia.com

Material Concerns While most brands favor polyester or merino wool, Falke’s fabric is over two-thirds polyamide, which soaks up moisture better than merino or another synthetic. Caveat: It absorbs odors, too; if you’re prone to B.O., beware.

Material Concerns After Uniqlo received feedback that Heattech wasn’t cutting it for very frigid days, it introduced Extra Warm in 2013, a version of the original polyester that’s 1.5 times as dense.

Material Concerns Aether uses traditional merino wool, which is said to reduce body odor, wick moisture and offer breathability.

Material Concerns Quick-drying and lightweight though it may be, polyester is still a plastic that’s hard on the environment. For these, Patagonia uses a 100% recycled version.

Itch Factor Next to zero. A big benefit of synthetics is they’re not itchy. How They Fit As tight and sporty as they look, Falke’s leggings slipped on easily and didn’t suffocate my legs. One drawback is that they end mid-calf, which is meant to allow room for higher socks and boots. That’s logical, but with each step, the pants rode up a little bit more. Heat Check I was very comfortable walking through town. Once inside, I was noticeably toasty but not uncomfortable. What’s More These pants don’t have a fly like the others here, which admittedly took a little getting used to.

Itch Factor Merino is a wool, but it’s far softer than angora or mohair. While I felt the mildest irritation by end of day, it wasn’t a deal breaker.

Itch Factor None. Uniqlo added moisturizer to the material a few years ago to make it even smoother. The addition appears to be working well.

How They Fit Aether’s knitting process uses longer strands of wool, which allows for a flexible fit that moves well with you.

How They Fit Putting on these tightly knit leggings felt like wriggling into Spandex. Once they were on, I couldn’t complain. They’re light and comfortable. Heat Check The Extra Warm isn’t quite for the office. Outside, I was fine; inside, I wished they weren’t quite so good at what they do. The original might be a better choice. What’s More If you’re looking to test out base layer pants, start here. At less than $20 a pair, the price can’t be beat.

Heat Check I was looking forward to the breathable nature of merino but Aether’s longer strands were too adept at trapping heat. By end of day, I was sweltering. They’d be ideal to take on the bluster of Chicago or Montreal in January. What’s More Wide, elastic cuffs kept the pants locked in around my ankles. When a strong wind blew in, I was thankful to be sealed off.

Itch Factor Though recycled fabrics can be rougher than new ones, this poly is as itchfree as competitors’s versions. How They Fit The pants are so light and unconstricting I almost forgot I was wearing them, which is very much by design. “The density was chosen [to keep] you comfortable [all] day,” said marketing manager Justin Roth. Heat Check Though I spent many hours inside, I never overheated. Outside, I was sufficiently insulated. What’s More While most brands use solid colors, Patagonia’s design has a subtle stripe. I liked the hint of style, even if I was the only one who knew it was there.

MASTERS OF SPECS Finding eyeglass frames that aren’t boringly ubiquitous—and don’t make you look like an eccentric architect from the 1980s—can be difficult. Consider focusing on these three global brands Lowercase Launched this week, Brooklynbased Lowercase sets itself apart by producing domestically—virtually unheard of today. That allows founder Gerard Masci more control and flexibility in creating his frames, which are clever riffs on classics. Once his team gathers the high-grade materials, including acetate and lenses from Italy, it undertakes a 30-step process, by hand and machine. Said Mr. Masci, “The raw materials don’t leave our shop until they’re finished frames in a case with lenses.” Rebel Rebel Frame, $300, Opt Eyewear, 401-490-0200

JOSHUA SCOTT FOR THE WALL STREET JOURNAL

Nackymade “Customers want something special because nowadays we see the same products everywhere,” said Naoki Nakagawa, founder of 12year-old Japanese brand Nackymade. “I find it boring and so do they.” The designer obliges with both his ready-to-wear frames, which come with signature colored-metal hinges, and his bespoke line whose temple bars often culminate in fantastical dinosaur-motifs. For his custom work, he hosts frequent trunk shows at U.S. stores like the Armoury in New York. Mark Glasses, $495, The Armoury, 646-613-7613

Mykita This 14-year-old German eyewear brand tends to achieve its avant-garde aesthetic with forward-thinking techniques. The latest: a 3-D printing process, called selective laser sintering. The result: the new Mylon range of very lightweight and durable frames. The process, which uses a laser to fuse layers of fine polyamide powder into a shape, said Moritz Krueger, co-founder and creative director, lets the company manufacture frames without “form-related restrictions.” Yoshy Frame, $619, mykita.com —Max Berlinger

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FROM RIGHT: GETTY IMAGES; JOSHUA SCOTT FOR THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI (4)

CHILL PILL Long underwear has come a long way since this 1915 photograph.

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THE WALL STREET JOURNAL.

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EATING & DRINKING MESSAGE IN A BOTTLE: AUTHOR OTTESSA MOSHFEGH ON MULHOLLAND NEW WORLD GIN

THE BEST WAY to drink this gin is straight from the bottle in the back of an Uber on the two-hour ride to L.A. from a desert town called Whitewater, where the love of my life lives. Outside of Palm Springs. The label on the bottle says Mulholland Gin. It’s good. Especially with cherry juice, ice, sand and sweat, yesterday afternoon, in the sun, sweet in the kiss with this man who hasn’t had a drink himself in 15 years—quit at 21 because he’d been ruining himself with Colt 45. I’d done that, too, once, dry a decade. “What’s that?” he asked with love, delighted. “It’s gin.” And then gin again later, with plain soda, while he was inside working. When I came back in, he sucked his teeth and talked about time—not having enough of his own. “I have to quit my job.” “Do it,” I said, although I’d known him just 12 days, 12 nights. Since then, my skies have widened up to heaven. On the ride back to L.A., the skies are just as wide, only grayer. My Uber driver, Ferdy, is a kind, middle-aged man from Taiwan. He tells me he does a lot of drives to and from 29 Palms, the largest Marine base in the world. Test bombs. I’m remembering my life in L.A., what’s in store. The bamboo seat covers now knead at the small of my back instead of his thumbs, his mouth breathing down my neck. I drink. This is good gin. I should know. I spent 10 years missing it. It tastes like stars and flowers. I do the normal things when I get home—unpack, put in laundry, scrounge in the fridge for something, a head of romaine, sliced salami. I should eat but I don’t want to. It’s been days since my appetite has wanted anything but that man. I hang up my coat, campfire—he smells like fire and fog—clinging to the fur hood. I call friends. In the last few days, my best girlfriend has lost a partner, another has lost a baby. Test bombs. Could I live without this man in the desert now? If he disappeared? If he’d only been an apparition? If he fell into a sand trap? If he lost his mind? If he crashed his truck out of rage? If he pulled a knife on a meth head to defend my honor? At Rite Aid I buy club soda and Fruit Punch Gatorade. Prozac. The woman ahead of me in line is wearing wedged sandals, resigned in her posture to something terrible. She turns her head back at me and I see her face is branded with red spots, not quite acne, but blisters. And it’s beautiful. A beautiful ruined face. She doesn’t have enough cash to pay for the $15 prescription skin cream. “I got you.” I hand her a twenty. Maybe the first

TYPOGRAPHY BY ANGELA SOUTHERN; JOSHUA SCOTT FOR THE WALL STREET JOURNAL (BOTTLE)

Love (and Gin) in a Thirsty Landscape

truly generous act of my life. Because it’s what he would have done—the man in the desert. He’s taught me that already, that it’s worth stopping to talk, to ask questions. One night in Palm Springs we met a half-Vietnamese restaurateur drinking bourbon at the Avalon Hotel bar. He said he was in love with a man in Germany. “You two look good together,” he said. What I haven’t said is that my man is the most beautiful man on Earth. “So handsome I couldn’t look,” someone said when his back was turned.

But I can look. I love to look. The following day, we met two young nomads from Australia in a secondhand shop. One of the young men invited us to a party at the Chateau Marmont in Hollywood on Friday. I’d been to the Chateau before, but my desert man has never been there. “Let me show you the absurdity of glamour,” I want to tell him, as though he’s innocent to it. I call him twice from my back steps while I’m smoking. “I just need time to work on this,” he keeps saying. I respect him too much to

try to say comforting things. “I’m less inspired without you around,” he says. “We should stencil my shadow on the wall of your office,” I say. “Or just come back and never leave.” “Yes.” Our last night in the desert, we drove up to Pioneer Town, had dinner with the locals and pretend-locals at Pappy and Harriet’s, and I hated everyone but the open-mic singer, whom we walked halfway home in the cold, just because. He’d sung the Stephen Stills song “Love the One You’re With.” I asked the singer—Bret—if he

thought it was true: “If you can’t be with the one you love, love the one you’re with.” He said it’s a song about having fun and getting laid. “I hate that,” I said. “She hates it,” my man affirmed. “It’s a sad substitute for love,” Bret said. The road we walked up by moonlight was wide sand, old cowboy storefronts built to shoot Westerns. “I love it here,” I said, and I meant everywhere I went with this man. Everywhere I go with him, I am in love. “I’m in love,” I say on the phone to my father. “That’s good,” he sniffs. “Is he good?” “He’s great.” Then, out of nowhere, my father tells me that he owns a plot of land 20 minutes from Whitewater, that his own father had bought it in the early 1980s. Arid gorgeous desert. And then my little brother, whom I communicate with only telepathically because he is incarcerated, calls three times, and each time I miss his call. “An inmate at…” the messages begin. I tell my man in the desert about him, how he is the brutalized monster inside of my heart, that my heart has broken after each overdose, each jag of being missing, each arrest, each near-death experience. My baby brother. My man in the desert lost a brother, too, he tells me, and I can feel it from him at every moment. I’m thinking about this at 3 a.m.., having woken up out of an early Ambien, thinking, “I should write this down, something, vaguely at least.” So I make myself a gin with Gatorade and soda. Not as nice as drinking straight from the dewy bottle in the back of the Uber, but it’s still good. Mulholland Gin, the label says, named for the man famous for “building the infrastructure to provide a water supply that allowed Los Angeles to grow into one of the largest cities in the world.” I send a message to my man in the desert, in Whitewater, where the creek was stolen, is dry as bone. “I love you all the stars in the world,” I tell him. “More,” he says. “All of them everywhere.” And I know he is in the upper galaxies as he’s writing this, buoyant on the heaven he’s showed me. “I miss you over here,” I say, like a weight down to Earth. I think we might be saving each other’s lives. “Marry me.” “Of course.” Test bombs in the desert. The stars are not as far away as they feel. I’m certain of this. I’ll go back to the desert in the morning. Ms. Moshfegh is the author, most recently, of “Homesick for Another World,” publishing Jan. 17 by Penguin Press.

Spaghetti Squash Carbonara

The Chef Ashley Christensen Her Restaurants Poole’s Diner, Beasley’s Chicken + Honey, Bridge Club, Chuck’s, Death & Taxes, Fox Liquor Bar and Joule Coffee & Table, all in Raleigh, N.C. What’s She’s Known For Breathing new life into Poole’s, a Raleigh institution. Comfort food cooked with skill and an added dash of indulgence.

“EVERY PLACE I go, I’m thinking about how what I see can become a part of my cooking,” said Raleigh, N.C., chef Ashley Christensen. “In Italy, I watched a woman make a classic spaghetti carbonara, and it stuck with me. She boiled the pasta, tossed it into a pan with guanciale, then tossed it into some egg and cheese she’d mixed together. She did it all by the stove, and she’d just grab a spoonful of pasta water as needed to loosen the sauce.” This recipe, Ms. Christensen’s third Slow Food Fast contribution, is her translation of that carbonara, swapping in shredded spaghetti squash for the noo-

dles. She appreciates this squash variety’s subtle flavor as compared with, say, butternut. “It’s that same earthy, sweet, funky taste, but a little more delicate,” she said. The sweet squash complements the salty bacon and Parmesan beautifully. And though the vegetable holds sauce like pasta, the dish is gluten-free. “We’re always looking for ways to do that,” said Ms. Christensen. You will not, however, find this on any of the chef’s menus. “With the volume we accommodate, it would be too hard to make this a la minute at the restaurants— I like to shred the squash right before dressing it,” she said. —Kitty Greenwald

TOTAL TIME 30 minutes SERVES 4 1 medium spaghetti squash Kosher salt and freshly

ground black pepper 10 ounces thick-cut bacon, cut into 1/2 -inch dice

1. Preheat oven to 400 degrees. Line a baking sheet with parchment paper. Halve squash lengthwise and scoop out seeds. Season squash generously with salt and pepper, then place, cut-side down, on lined baking sheet. Roast squash until fork tender, 25-30 minutes. 2. Meanwhile, set a medium skillet over medium-low heat. Add bacon and cook, stirring occasionally, until fat renders and bacon crisps, 10-15 minutes. Fill a medium pot with 3 inches of water and bring to a gentle simmer. 3. In a medium heatproof bowl, whisk together yolks and Parmesan. Mixture should

5 egg yolks 11/2 cups grated Parmesan, plus more to taste

be as thick as glue; add more cheese if needed. Run the tines of a fork through the cooked squash so flesh separates into spaghetti-like strands. Carefully transfer strands to pan with bacon and gently stir to combine. 4. Transfer squash-bacon mixture to bowl with eggs and gently toss to combine, taking care to keep strands intact. Set bowl over pot of simmering water and gently toss squash until sauce thickens and coats strands, about 1 minute. Season with salt and pepper, and add more cheese to taste. Serve immediately

NOODLING AROUND Roasting spaghetti squash concentrates its sweet, delicate flavor. Once cooked, the soft flesh shreds easily into pasta-like strands.

BRYAN GARDNER FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYING BY RYAN REINECK; ILLUSTRATION BY MICHAEL HOEWELER

SLOW FOOD FAST SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES

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EATING & DRINKING

Whole-Grain Desserts for the Hedonist If flaxseed meal and rye flour sound like the stuff of self-denial, try these sweets made with alternative grains—for the pleasure of it Pear-Brioche Pie With Rye Crust

BY KAREN STABINER

ACTIVE TIME 50 minutes TOTAL TIME 4 hours SERVES 8-10 Is it a pie? A bread pudding in a crust? Brioche in the filling turns custardy during baking, and rye flour in the crust provides a savory balance.

‘Start with whole wheat, or substitute rye flour for half the white.’ crust that goes with any fruit, whether cranberries for the holidays or plums in summer, and the array of grains, seeds and cornmeal in the crust provides a more complex foil for the fruit than white flour alone, with layers of flavor in each bite. Ms. Nathan encourages home cooks to take chances. “Make your favorite recipe and substitute,” she said. “Start with whole wheat, or substitute rye flour for half the white to see how that tastes. Add a little buckwheat flour.” A caveat: It’s harder to get a flaky dough with whole grains, so success might require a bit more liquid. Improvisation was the basis for the pear-brioche pie with a rye crust by Dana Cree, now the pastry chef at the Publican in Chicago. She was working at Wolfgang Puck’s Spago in Beverly Hills when she got word Mr. Puck was headed over with a TV crew and needed a pie. On hand were a half-dozen pears, some brioche and enough rye flour to turn out a crust. She soaked the fruit in pear brandy, sugar and anise seed, tossed in brioche cubes, put it all in the crust, and ended up with opposites that attract—crisp crust and custardy filling, sweet and boozy, with a hint of earthy rye to ground the whole thing. The film crew got its shot. Later she fielded a followup question: Was there any pie left? Mr. Puck wanted to come back for more. Find a recipe for cranberry crostata at wsj.com/food.

For the crust: 21/2 cups all-purpose flour 1/ 2 cup rye flour 1 teaspoon salt 11/4 cups cold unsalted butter, cut into 1-inch cubes 1 tablespoon apple cider vinegar For the pear filling: 6 ripe Bartlett pears 1/ 4 cup poire William brandy, pear cider or apple cider

WHOLE-BAKED This pie has a crisp ryeflour crust and a rich filling of brioche and brandy-soaked pears.

1/ 4 cup sugar 1 teaspoon ground anise seed 1 tablespoon cornstarch 2 cups (1-inch) crustless brioche cubes 4 tablespoons butter, cut into 1/2 -inch pieces For the egg wash: 1 egg, beaten 2 tablespoons milk 1 tablespoon granulated sugar

1. In a large bowl, toss flours and salt to combine. Freeze 1 hour. 2. While flour freezes, start making pear filling: Peel and core pears and cut into 1-inch cubes. In a large bowl, toss pears with liqueur, sugar and ground anise seed, until evenly coated. Let macerate at least 2 hours, stirring occasionally. 3. When ready to make crust, fill a large glass with ice and cover with water. Stir to make very cold. Put frozen flour mixture in the bowl of a food processor. Add cold butter and pulse until lumps of butter in mixture are between the size of a lentil and a chickpea, 8-10 times. 4. Transfer mixture to a large bowl, sprinkle vinegar over top and toss by hand until evenly mixed. Strain ice cubes from ice water. Sprinkle 4 tablespoons cold water over mixture, 1 tablespoon at a time, tossing to distribute. Grab a fistful of dough and squeeze: If it holds its shape but just cracks at the edges, you’ve added enough water. If it’s still crumbly, add more cold water, 1 tablespoon at a time. 5. Divide dough into 2 disks. Flatten into 6-inch disks, wrap in plastic and refrigerate 2-24 hours. 6. When ready to assemble pie, preheat oven to 400 degrees. Add cornstarch to pear filling and stir. Add brioche cubes and toss to coat. 7. Roll out one round of dough to 1/8- to 1/4-inch thick and use it to line a 9-inch pie plate. Add filling. Dot the top of the filling with 1/2 -inch pieces of butter. Roll out remaining round of dough and cover pie, trimming edge to 1 inch larger than pan. Dip your fingers in water and moisten dough between top and bottom crusts to seal. Tuck edge of sealed crusts under itself and flute with fingers or crimp with a fork. Cut vents in top of crust. Combine beaten egg and milk to make egg wash. Brush top of pie with egg wash. Sprinkle with granulated sugar. 8. Bake 15 minutes, then reduce heat to 325 degrees. Continue baking until crust is crisp and juices bubble from vents, 45-60 minutes. Let cool 1 hour before serving. —Adapted from Dana Cree of the Publican, Chicago

Malted Muesli Cookies ACTIVE TIME 30 minutes TOTAL TIME 13/4 hours MAKES 48 cookies You’ll recognize the fundamentals—oats, dried fruit, cinnamon— but that’s just the beginning. These flavorful little pucks are far more interesting than the oatmeal cookies you grew up with. 1 cup rolled oats 11/3 cups all-purpose flour 3/ 4 cup plus 2 tablespoons whole wheat flour 1/ 4 cup plus 1 tablespoon malted barley flour (aka diastatic malt powder, available at kingarthurflour.com) 1 tablespoon baking powder

11/2 teaspoons salt 1/ 4 teaspoon ground cinnamon 1 pound unsalted butter, at room temperature 1/ 2 cup light brown sugar 1/ 2 cup dark brown sugar 1/ 4 cup honey 3 large eggs 3/ 4 cup plus 2 tablespoons dried black currants

1. Preheat oven to 400 degrees. Spread oats on a sheet tray and toast until aromatic and slightly browned, 10-14 minutes. Cool completely. 2. While oats are toasting, combine flours with baking powder, salt and cinnamon and set aside. 3. In a stand mixer at medium-high speed, cream butter, brown sugars and honey until fluffy, 3-5 minutes. Add eggs, one at a time, and beat until well blended. Mix in flour mixture until completely incorporated. Add toasted oats and currants and mix at low speed until evenly distributed throughout the batter. 4. On a lightly floured surface, divide batter into four balls. Roll balls back and forth into logs about 16 inches long and 2 inches in diameter. Refrigerate 1 hour or roll in flour, wrap individually in plastic or parchment, and freeze for later use. 5. Preheat oven to 365 degrees. Cut logs into pieces 11/3 -inches thick, and place 2 inches apart on a baking sheet lined with parchment. Bake 12-16 minutes, depending on how dark you like your cookies. Cool on a rack. Repeat with remaining dough. —Adapted from Zack Golper of Bien Cuit, Brooklyn

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BRYAN GARDNER FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY RYAN REINECK

ULTIGRAIN desserts (don’t wince) are no longer the leaden-but-virtuous pastries of yesteryear. A new generation of bakers is using whole grains innovatively— not in place of white flour as a statement of nutritional piety, but in the very same mixing bowl, with delicious results. Think hybrid; think enhanced classics. Oatmeal cookies, cranberry tart and pear pie aren’t exactly new ideas, but the iterations under consideration here are. At Bien Cuit bakery in Brooklyn, owner Zachary Golper is always on the lookout for grains that are environmentally friendly—perennials that reduce soil erosion, for instance—and preparations that are easy to digest. But good-for-you (and the earth) isn’t sufficient: The two-time finalist for the James Beard Foundation Outstanding Baker award runs as many as two dozen tests on a new item to satisfy his exacting palate. His malted muesli cookie features rolled oats that are toasted before they’re mixed into the batter along with malted barley flour. The result, a cookie proportioned more like a miniature scone, that’s irresistible in the late afternoon when it’s time for a cup of tea. The texture is smoother than an oatmeal cookie’s, the flavor deep and nutty, not as sweet. That’s the fun part of rediscovering grains, he said: the chance to “open up the landscape of creativity. We don’t have to be stuck in a rut.” In Santa Monica, Calif., chef Zoe Nathan, co-owner of the Rustic Canyon restaurant group, takes a playful approach. Her multigrain crostata has an easy free-form

D6 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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ADVENTURE & TRAVEL The Accommodating Scene When you’re looking for a hotel love match, curated inn collections narrow the field, but how much can you trust them?

THE SAN GIORGIO hotel on Mykonos was as impressive in person as it looked online, with a shimmering pool, hammocks slung among palms and views across the Aegean. But the bed in our cramped 269-square-foot whitewashed room was cardboard stiff with scratchy sheets, and the concrete shower, with no curtain or door, drenched the bathroom when we used it. I’d spent hours scouting hotels online for last summer’s Greek island vacation, looking for the ideal mix of location, value, personality and luxury before booking the San Giorgio on designhotels.com, a curated group of independent inns around the world, enticed by gorgeous photos and hyperbolic copy. Like many travelers these days I tend to gravitate toward such indie hotels, favoring the distinctive over the cookie-cutter. I browse collections of non-chain hotels like designhotels.com, “soft brands” as they’re known in the trade, offering “standardization of service and quality rather than product,” as Bjorn Hanson, head of the Tisch Center for Hospitality, Tourism and Sports Management at New York University, put it. For the member hotels, the groups deliver marketing muscle, a booking portal and other perks. And for travelers they provide loyalty programs and a seal of approval. After a few disappointments over the years, though, I’ve sometimes wondered what exactly we’re buying into. To find out, I surveyed five of the most popular independent collections online. Each targets its own breed of traveler.

CHECKED IN The Robey in Chicago, one of Design Hotels’ 300 members.

CREATIVE TYPES WITH AN EDGY STREAK

Design Hotels Hotels in the group run the full range along the luxury spectrum from bohemian shacks on the beach in Tulum to a five-bedroom private villa on Bali with its own concierge. What unites all 300 Design Hotels is a typically advanced aesthetic vision—from the individual owners’ choice of music in the lobby to the bathroom amenities—and a focus on design. The website highlights the personalities behind each hotel. Claus Sendlinger, a former rave party promoter from Germany, launched the brand in 1993 and still oversees it, although Starwood took a controlling stake a few years back. Hype Factor Medium-high. The website touts its members with inspiring, sometimes silly blurbs (“Nirvana on the beach,” “Mexico’s pinkest palace,”) selling both the hotel and a lifestyle choice. One worthwhile bragging point: Nearly half the Design Hotels now qualify for Starwood guest loyalty points. Trust Factor Since inspections are only in response to guest complaints, standards can seem erratic. Yesterday’s hot new hotel can lose its cool awfully quick. “Maybe when they were newly opened they were spectacular,” said Kelly Grumbach, a travel adviser with Quintessentially Travel, “but after a few years a white leather sofa can start showing its age.” designhotels.com

New York City’s buzzy Beekman, a new addition to the Tablet Hotels website.

UNABASHED LUXURY LOVERS

Leading Hotels of the World

Members of the Leading Hotels of the World, such as the Ritz Paris, are all about old-school luxury.

SUMMERING is a year-round activity.

Encompassing some 400 high-end venues—including icons like the Ritz in Paris and La Mamounia in Marrakesh—Leading Hotels of the World promises old-fashioned opulence. Their hotels are the type of places with oceans of marble and crystal in the lobby and chocolates by the bed. “They’ve been around a long time, have a good reputation with a lot of highly institutional properties,” said hospitality analyst Ryan Meliker of Canaccord Genuity. The affiliation, among the world’s oldest, began in 1928 when 38 of Europe’s top hoteliers joined forces to bolster their collective clout. Sixty-five member hotels now run the company, recruiting new members (on average 20 a year) and maintaining rigorous standards. Hype Factor Low. The website has an analog feel, with hazy visuals and no-nonsense write-ups. The affiliation, it seems, is meant to sell these hotels by itself. Trust Factor Forty full-time inspectors drop in on member hotels unannounced, toting an 800-point checklist (down from 1500 points a few years ago) covering everything from reservations to check-in to linens. The criteria, though, don’t reflect new travel trends, which is why some Leading Hotels can feel dated. “There’s a lot of fluctuation,” said Ms. Grumbach. “Maybe the service is great but they need renovation.” lhw.com

SOPHISTICATED GOURMANDS

Relais & Châteaux

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Meadowood hotel, in Napa Valley, Calif., has 99 guest rooms and a restaurant with three Michelin stars.

WELL-TRAVELED STYLESETTERS

Tablet Hotels Tablet mixes the editorial sensibility and unbiased reviews of a travel magazine with an e-commerce booking site. Co-founded by Laurent Vernhes in 2002, it aims to be a comprehensive resource for independent boutique hotels, often listing brand-new hotels. “It appeals to travelers…who may want to be the first to discover the cool, new hip hotel,” said Henry Harteveldt, travel industry analyst with the Atmosphere Research Group. Breadth is both its weakness and strength, with some 2,800 reviewed properties world-wide so far—most submitted by part-time correspondents, about 600 frequent fliers recruited by Mr. Vernhes.

Hype Factor Fairly high. The site, which bills itself as the “original boutique hotel curator,” is rich with rather florid copy (“limpid mountain lakes, soaring evergreens, and some of the most iconic summits on the planet”) but also helpfully suggests themed groups of hotels (“for people who love great films,” “for the solo traveler”). Trust Factor Tablet works like a travel agent—hotels pay nothing to be included—earning fees off bookings and its loyalty program, which offers room upgrades and late checkouts among other perks. Though there’s a vast range in star ratings and price points, customer and correspondent complaints will place a hotel “under review” (a dozen or so are kicked off every year). tablethotels.com

JET-SETTING HOMEBODIES

Small Luxury Hotels

The 56-room 11 Cadogan Gardens, in London, is one of the larger hotels in the Small Luxury Hotels portfolio.

worth traveling for—or at least that’s the goal. Launched in France after World War II, the group is owned by its members—540 of them in 64 countries—electing a president from their ranks. Members range from destination restaurants with a few rooms to a reconfigured châteaux, like the 14th-century Chateau de la Treyne near Bordeaux, owned by current president Philippe Gombert. Hype Factor In flux. Seemingly in an effort to shake off its somewhat stuffy image, the group just revamped its website (adding chef profiles and driving routes) and will publish a new hard-copy directory, designed by Monocle editor Tyler Brulé, this winter. Trust Factor A selection committee admits new members only after an anonymous inspection covering everything from the quality of the cooking to the warmth at check-in. Twelve full-time inspectors pop back in unannounced at least once every three years. The focus on food means accommodations can vary. “They run the gamut from high quality to whatever,” said Mr. Meliker. relaischateaux.com

This collection of independent, momand-pop hotels, founded in 1990, includes 500-plus options in 82 countries, with a strong focus on Europe. The hotels’ average size is 48 rooms (many have far fewer). “A lot of our hotels have been handed down generation after generation,” said president Filip Boyen. Under new ownership, and leadership, since 2014, the company has been working to increase its geographic breadth. Thirty-three new hotels joined the group last year, including the six-room Hulbert House, a 19th-century villa overlooking New Zealand’s Lake Wakatipu and the Owl and the Pussycat in Sri Lanka with 16 audaciously colorful rooms a few feet from the surf. Hype Factor Restrained. The group offers low-key inspiration online with itineraries built around member hotels (a craft beer trip through Perth, a northsouth tour of Mauritius). Perhaps even more motivating: the various and everchanging list of promotions on offer. Trust Factor The process of admitting new hotels has recently become more stringent—with prospective members going through a six-month vetting process involving anonymous inspections with a new 500-point checklist. About 60 new inspectors—frequent travelers who are reimbursed for their stay in return for filing reports—were recruited last year through a magazine ad campaign enticing readers to apply to the company’s “secret service.” slh.com

FRANCIS HAMMOND FOR THE WALL STREET JOURNAL (RITZ); BJORN WALLANER (BEEKMAN)

BY JAY CHESHES

THE WALL STREET JOURNAL.

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Saturday/Sunday, January 7 - 8, 2017 | D7

SURF AND TURF Clockwise from left: Bondi’s historic Icebergs Club; the House of Luis Tans; residential Francis Street; Lox Stock & Barrel. Below from left: wave-scouting on the Bondito-Bronte walk; a calzone at Da Orazio Pizza & Porchetta.

Beach Banquet Bingo At Bondi, Sydney’s iconic playground, epicureans are outshining the surfers BY SARAH GOLD

SK ANY random smattering of people—Australian or not— what they know about the Sydney suburb of Bondi, and odds are they’ll nearly all mention “the beach.” No real surprise there; the neighborhood’s wide crescent of golden sand, with its surfer-pocked aquamarine swells and famed Icebergs Club ocean pool, is one of Australia’s most successful tourist destinations. But for much of its history, Bondi’s shoreline was hardly considered a selling point. In fact, for most of the 20th century, local families— like my mother’s, which lived just a few suburbs over between the 1940s and ’60s— studiously avoided the area’s beaches. A massive wastewater pipe polluted both the waves and the beach until it was rerouted in the early 1990s. (A few years later, my

uncle and I commemorated Bondi’s newly hygienic waters by taking part in an ocean race; we emerged certifiably unscathed.) During those decades of waterfront ignominy, however, Bondi became notable by evolving into one of Sydney’s most ethnically diverse neighborhoods. Drawn by its affordability, as well as its proximity via tram to Sydney’s Central Business District (just 6 miles away), an influx of working-class immigrants settled and established themselves here—including postwar Jewish émigrés from Russia and Eastern Europe, Italians, Pacific Islanders and Asians. Over time, as the neighborhood morphed into a pricey enclave, these expat families, and their progeny, continued to prosper in Bondi. And as I discovered on my most recent visit there, the area’s multiculti past is experiencing a renaissance of sorts, notably within the uniquely eclectic food scene.

China Diner’s dumplings.

Nearly all new Bondi restaurants nod to the area’s multiculti past. Bondi proper encompasses several square miles of steeply pitched residential streets that dip and swoop toward the shore, lined with brushy-flowered banksia trees. But the neighborhood’s spine is an eightblock stretch of Campbell Parade, the main drag that

parallels the famous beach. Intersecting it are a warren of small streets that are, these days, chockablock (or, to use the local parlance, “chokka”) with new restaurants, cafes, bakeries and bars. Some are homey and old-fashioned; others, slick and modern. But nearly all nod to some aspect of the area’s culturally varied past. “There’s such a rich history [in Bondi],” said restaurateur Lianne Gottheiner, “It was an important hub for pre- and postwar migrants. The streets used to be filled with milk bars, grocers, butchers…it’s nice to think that we’ve tapped back into all that.” In 2014, Ms. Gottheiner and her brother Neil Gottheiner opened Lox Stock & Barrel, a “deli diner,” as a homage to Bondi’s Jewish community. Occupying a former barber shop (the same Jewish family has owned the building since 1938), the space is snug, white-tiled, and perpetually thronged.

THE LOWDOWN // SAVORING SYDNEY’S BONDI BEACH Staying There Opened early last year a block from Campbell Parade, QT Bondi hotel has 69 airy rooms and suites with cool-kid interiors by Australian designer Nic Graham (from about $270; qthotelsandresorts.com). Another right-in-town, boutique property is the Adina Apartment Hotel Bondi, whose cheerful, modern studios and one- and two-bedroom “apartments” include kitchenettes and in-room laundry (from about $250; tfehotels.com). For quieter luxury—a respite from Bondi’s bars and restaurants, which stay lively late into the night—the Intercontinental in the adjacent waterfront community of Double Bay has 140 spacious rooms and suites, with a rooftop pool and lounge, a day spa, and a 24-hour fitness studio, set along a plaza of sleek shops just a 10-minute drive from Bondi (from about $160; icsydneydoublebay.com). Beachcombing There Most visitors want to hit the beach—which is free and open to

the public all day every day. If you’re game to join the crowds of surfers, rent a board or sign up for lessons at longtime surf outfitter Let’s Go Surfing (letsgosurfing.com.au). To get a gorgeous view from the headlands surrounding the beach, take the 2.5-mile Bondi-to-Bronte walk; just be sure to wear sturdy shoes (waverley.nsw.gov.au). To work out the kinks after a day on the waves, try a yoga class at the popular Power Living studio a block from the beach (powerliving.com.au). On weekends, you can check out the wares of local artisans, as well as vendors of clothing, antiques and bath products, at Bondi Markets on Campbell Parade right across from the main beach parking lot (bondimarkets.com.au). Tipping There Tipping at restaurants isn’t historically customary in Australia, but adding 15 to 20% for excellent service is becoming more expected in well-touristed areas like Bondi.

BELLA BONDI A Tavola, the second outpost of Eugenio Maiale’s Italian eatery

The siblings serve traditional delicatessen favorites—including multiple varieties of daily house-made bagels, pickles and smoked fish and meats—which they learned to love and to make growing up with their Polish parents. The lunch dishes I tried— a smoked ocean trout with pickled cabbage and a fattoush salad with fresh herbs—would have been right at home in Tel Aviv, while the brisket pastrami sandwich on rye might have been airlifted from New York’s Lower East Side (140 Glenayr Ave., loxstockandbarrel.com.au). After a day of bodysurfing, my family and I donned our stylish best and headed to A Tavola, the most refined restaurant on bustling Hall Street, three blocks from the beach. The second Sydney outpost of chef Eugenio Maiale, whose parents emigrated from Abruzzo, Italy, the minimalist dining room centers around a 32foot-long communal table of glossy marble. We lingered at that table for hours, scarfing down every last bit of creamy, tangy stracciatella, linguine alla Vastese (made with local prawns, mussels and hunks of fish in a zesty tomato broth) and thick ribbons of pappardelle with guanciale (Shop 2, 75-79 Hall St., atavola.com.au/bondi). A few doors down, in a semi-alfresco food complex, is the more casual, equally tasty Italian fare at Da Orazio Pizza & Porchetta. The industrial loft-style space houses one of Bondi’s only wood-fired pizza ovens, which turns out a steady supply of charred, Neapolitan pies—most made with fresh fior di latte mozzarella, San Marzano tomatoes and cured meats. I was thrilled with my choice, a “Pagnuttiello” layered with thin slices of salami and black

pepper, until I caught sight of a neighboring table’s pie heaped with porchetta from the house rotisserie and was seized with envy (Shop LG09, The Hub, 75-79 Hall St., daorazio.com). Another Hall Street highlight, China Diner occupies a cavernous space with a neon-lit, tile-floored cocktail bar in front and an intimate dining room full of slinky banquettes in the back. Chef Jack Steer concocts creative pan-Asian dishes such as ban bao (steamed-bun sandwiches) stuffed with crispy pork, apple-and-carrot kimchi and sriracha mayo; paper-thin rice pancakes filled with shredded, hoisin-spiced duck; and slices of tender pork belly in a sauce of caramelized Thai chilies. The cocktail menu lures a hip, late-night crowd with curious libations like the Suzee Wong, made with gin, Suze (a gentian-root liqueur) and fresh watermelon juice (75-79 Hall St., chinadiner.com.au). When the House of Luis Tans opened in 2015, just across from the beach, local foodies were skeptical. The owners, two reality-television celebrities, seemed to be going overboard with the neighborhood’s ethnic-food trend—drawing inspiration from all over Asia and South America. But now those same skeptics are regulars along with a mostly young, bohochic crowd (namely, surfers and the models who love them). The menu consists of oddly delicious mashups, including roasted pumpkin dumplings, scallop ceviche with edamame and skewers of smoked chorizo and octopus. And if pairing a platter of sticky, Cantonese-style barbecue pork with a classic Peruvian pisco sour seems unorthodox—all the better (178 Campbell Parade, luistans.com).

LAUREN BAMFORD FOR THE WALL STREET JOURNAL; MAP: FREEVECTORMAPS.COM

ADVENTURE & TRAVEL

D8 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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DESIGN & DECORATING

HOUSE TOUR

How to Improve On the Past

Musical Chairs

In a historic Manhattan apartment, gothic columns framing the windows were repainted their original white—rendering them both traditional and modern—and simple sheer drapes were hung to leave the northern light unimpeded. A sleek set of mod-

ular shelves with an attached desk from B&B Italia counters the architecture’s rigid classicality, and a Carrara marble tabletop is surrounded by an intentionally haphazard collection of chairs. “This room can be used for dining, cocktails, concerts with the piano,” said architect and designer Corvin Matei of the flexi-

ble space. “A randomness in the design keeps it informal.” A soaring, hydroponically self-sustaining living wall, from Plant Wall Design, adds a fresh, organic element and can be changed to fit the season or homeowner Terry Kassel’s mood. A Lindsey Adelman light echoes the flora’s naturalistic shapes.

Decorating a heritage apartment without getting weighed down by history BY TIM GAVAN

Friendly Formality

It would have been easy to remove walls to create a loft, but such an apartment would not belong in this building, Mr. Matei said. Instead, he and Ms. Kassel added modern components with a Zenlike quality to quietly update the old bones, which he considers sacred: Relaxed George Nakashima grass-seated chairs soften the restored coffered oak paneling, and an ovoid-shaded light fixture from Rich Brilliant Willing mellows the stately parquet floors.

Forceful Entry

Dreamy Creams

“Old buildings can be a little suffocating, because there are windows rather than walls of glass and because the rooms are very divided. Lighter colors tend to make these spaces seem bigger and happier and more modern,” Mr. Matei said. Cream-colored walls visually enlarge the master bedroom, as does an unadorned beveled mirror that mimics the slant of the original crown molding but keeps the room from feeling ornate or antiquated. The light and polished metallic finishes on a B&B Italia chaise longue chair, an adjustable Fritz Hansen side table and a swan-like light fixture from David Weeks give the century-old space a contemporary sheen, while pale leather door pulls on the closets and Bamboo silk carpeting from Sacco look earthy and airy.

“With this concrete block [bench], we wanted to establish right from the getgo that the person who lives here is not conventional,” said Mr. Matei of the entry foyer. The statement-making contemporary seat from Holly Hunt and an equally minimalist concave mirror update the apartment’s foyer by providing a stark contrast to the diamondpaned windows, with their elaborate terra-cotta frames, that look into the dining room.

Boho Tweak

Eclecticism makes an aged space look younger without asking it to sacrifice any of its treasures. The Gothic arch over the French doors and the crown molding might have appeared austere had the living room been decorated with pieces of the same vintage, but they seem like part of a Bohemian scheme thanks to a less expected mix of furnishings: A curvy, brown damask Christian Liaigre sofa abuts an angular, stone-gray couch from Vitra; a lab-like wall sconce by Flos cranes above an antique floor lamp with an asymmetrical, citrus-colored shade; and a midcentury Gio Ponti leather armchair faces a vaguely futuristic parchmenttoned stone table, also from Christian Liaigre.

STEPHEN KENT JOHNSON FOR THE WALL STREET JOURNAL (4); JOSHUA MCHUGH (FOYER)

HEN THE 14story residential Studio Building on Manhattan’s Upper West Side was finished in 1909, a writer compared its crocketed gables, carved arches and piercing spires to a “Brobdingnagian cathedral” the likes of Notre Dame. Unfortunately, the neoGothic, terra-cotta facade designed by architects Herbert Spencer Harde and Richard Thomas Short proved both too soft and too tall to be structurally sound, and the Metropolitan Life Insurance Company had most of the intricate masonry on the exterior removed in the early 1940s. So when Terry Kassel and New York architect and designer Corvin Matei recently began redecorating Ms. Kassel’s 12th-floor apartment, they were determined not to further dismantle its heritage. “It’s a privilege to work in a historical building,” Mr. Matei said, “but you’re also faced with a dilemma: How do you respect the architecture but still make the home feel modern and not stuffy in the way that older places sometimes do?” That question was especially important to Ms. Kassel, an attorney who had recently divorced. “I wanted to make the place completely mine,” she said, “to make it feel young and fresh.” To preserve the past and yet make a purposeful departure from it, Mr. Matei and Ms. Kassel kept the separate rooms of a more traditional layout, resisting the urge to knock down walls, but opened the spaces up with a light color palette. They spruced up original elements—like mullioned windows in the apartment’s foyer and a stately arch leading into the living room—while introducing the straight, simple lines of contemporary fixtures and furnishings. To rejuvenate aged architecture, they added copious flowers and other organic touches and adopted an eclectic style of décor that reflects different periods and styles.

THE WALL STREET JOURNAL.

Saturday/Sunday, January 7 - 8, 2017 | D9

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GEAR & GADGETS That ’70s Glow Among cost-conscious collectors, huge, high-end cars from the ’Me’ Decade are making inroads BY JONATHAN WELSH LOOKING FOR a budget-friendly way to take your first steps into antique-car ownership? Consider the huge, limousine-like sedans that your grandfather or great uncle might have driven 45 years ago. While “land yachts” from the 1970s are building a loyal following—in part because they offer a ton of car (or more like 2½ tons) for not much money—these luxury monsters have yet to hit their stride in the collector’s market. When they first rolled off assembly lines, Me-Decade Cadillacs and Lincolns were marvels of technology and design, but they soon fell victim to obsolescence.

“As gasoline prices climbed in the early ’70s, these cars became dinosaurs,” said Craig Jackson, president of Barrett-Jackson Auction Company in Scottsdale, Ariz. “You really couldn’t give them away because they were getting around 8 miles to the gallon.” Despite their woeful fuel economy, interest in big 1970s sedans is growing, said Mr. Jackson, and the bar to entry is low. You can find nearmint examples for $10,000 to $15,000—a fraction of the price commanded by a collectible ’60s car. Here are a few affordable behemoths that were bigticket items when they were new.

Cadillac Sedan de Ville Like its rival, the Lincoln Continental, this Caddy was enormous, even by the day’s standards, weighing more than 5,000 pounds. (Plus, its body is longer than a modern-day Cadillac Escalade.) Mr. Jackson of Barrett-Jackson Auction Co., which plans to put a 1972 de Ville up for auction later this month, said buyers are often surprised by the roominess of old sedans, many of which have front and rear bench seats that can each accommodate three or four people. These beasts are ideal for “restomods”—a term denoting cars restored with boosts from modern technology and, in some cases, cosmetic upgrades. “They give you a big palette,” Mr. Jackson said. You can find models for around $11,000. barrett-jackson.com

Lincoln Continental Many fans of colossal cars were disappointed when Lincoln redesigned the Continental in 1970, dropping the “suicide doors” (hinged at the back rather than the front) that made the 1960s models so distinctive. Further compromising the car, federal pollution-control rules required auto makers to use less-powerful engines while new crash-test standards necessitated large, protruding bumpers, according to Carlo Connors, a collectible-auto dealer in West Chester, Pa. Still, in the eyes of fans today, the Continental is such a visual departure from modern cars that it now reads as unique and cool. Expect to pay around $13,000. connorsmotorcar.com

journey + seek + find. repeat.

Chrysler Imperial Compared with Cadillacs and Lincolns of the same era, Chrysler Imperials from the early 1970s are especially rare today but they still sell for only around $12,000. The Imperial’s glory years arguably spanned 1969 to 1973, when its huge body was more gracefully sculpted than those of its competitors. With their headlights hidden behind dark, full-width grilles, Imperials of the Nixon period had a somewhat sinister air, which is probably why they were the ride of choice for many nefarious heavies in cinema (think Robert De Niro in 1973’s “Mean Streets”). Technical note: The Imperial pioneered anti-lock braking with a system called Sure-Brake. imperialclub.com

Mercedes-Benz 450SEL While big American luxury sedans often turned up in TV shows about cops and robbers, this German flagship four-door was associated with Larry Hagman’s J.R. Ewing, the wealthy oil man and notorious cad of “Dallas.” Like Detroit-manufactured sedans of its era, the 450 is a fairly inexpensive collectible car today, but it will almost certainly cost more to own than a Lincoln or Cadillac because parts and labor are especially pricey. The high-performance 450SEL 6.9 model, which sold for nearly $20,000 in 1977, has such a devoted following that it sells at a premium, going for between $20,000 and $40,000 for the nicest examples. hemmings.com

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WIDE LOAD Premium ’70s Cadillacs, like those featured in these vintage ads, could often accommodate eight.

D10 | Saturday/Sunday, January 7 - 8, 2017

THE WALL STREET JOURNAL.

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GEAR & GADGETS

A Brief History of Exercise

DAN PAGE

Why is staying in shape such a challenge? For an answer, look to humankind’s long, drawn-out relationship to physical fitness. Here, a highly condensed account

BY KEITH BLANCHARD

T’S JANUARY again, and that means it’s time to repent: to repudiate December’s decadence and embrace anew the annual ritual of trying pointlessly to get fit. This is America’s number one New Year’s resolution, according to Nielsen, and one of the first abandoned each year. (The predictable January surge in gym memberships subsides by February, year after year.) In fact, the business model of the $80 billion global health-club industry depends on this annual triumph of hope over experience. As a sedentary journalist trying to stay fit, I find myself seeking new solutions. I’m looking for motivation that can beat the instant gratification of a peanut-butter cup. I want something that provides results before I throw in the towel. It’s not like the market isn’t trying: Every year brings monstrous, new, rubber-handled, springloaded exercise gear designed to make the ordeal of getting in shape more effective and easier to slog through. So why are we still a nation of out-of-shape slobs? A quick jog through the history of exercise might reveal some answers.

3000 B.C. TO THE MIDDLE AGES: THE ABS OF THE ANCIENTS Exercising is a modern indulgence. For early man, fitness was a requirement if you wanted to stay not dead. You’d use equipment like spears and clubs and rocks, in repetitive stabbing and striking motions, with a heavy emphasis on cardio, sprinting either to acquire your own dinner or avoid becoming someone else’s. With civilization came regular physical training, in the form of continually prepping for war. Ancient Greece’s original Olympics were nominally about games, but the military focus was clear: chariot racing, wrestling and boxing, throwing javelins and the discus, footraces run with armor and a shield. For nonsoldiers, work became less physically demanding as the centuries rolled on. Technological improvements gradually shifted the civilian workforce away from farming and blacksmithing and toward smoothie blending and dance momming, and our bodies began to potato up. 1750-1950: STRONGMEN TAKE THE STAGE This new leisure time, in the lucky parts of the world that could afford it, started to weigh heavily on the average person’s health. Doctors began stressing the value of vigorous exercise in combating diseases of

decadence, and Ernest Hemingway and Teddy Roosevelt stressed its role in proving one’s mettle. Wrestlers and bare-knuckle boxers drew crowds; circus strongmen pulled train cars full of flappers with their teeth, or something (the details are hazy) and college coeds deemed athletes the absolute dreamiest. By the 20th century, the publishing industry was busy extolling the benefits of working out to regular people. Charles Atlas, in the 1920s, built an empire targeting “97-pound weakling” boys through ads in the back of comic books. He was succeeded as America’s buffest gym coach by Jack LaLanne, who created what may have been our first health club (in California, naturally) and infomercial (“The Jack LaLanne Show”), which LaLanne produced from 1953 right into the ’80s, when a young Arnold Schwarzenegger took the baton (and accidentally crushed and ate it). 1960S-1980S: RISE OF THE GYM There was more to health than muscles, however. Oklahoma doctor Kenneth Cooper, in 1968, released research promoting the benefits of aerobic exercise, and the world’s heart raced. Around the same time, a wildly popular book called “Jogging” introduced a New Zealand phenomenon to Americans. But how

to bring aerobic exercise indoors? Entrepreneurs adapted early inventions, like the treadmill, an 1800s gargantuan paddle wheel designed to punish dozens of prisoners at once in order to generate power or grind grain (hence “mill”). Similarly, exercise bikes had been around since at least 1796, in a boxy, steampunk sort of form. Miniaturizing and modernizing these machines gave them relevance in a new world where their punishing monotony could blend seamlessly with newfangled distractions like TV. The gyms introduced all-new weapons for terrorizing populations too, like Nautilus machines, endorsed by running backs and tennis stars, and built on a logarithmic spiral-shaped pulley wheel that provided variable resistance throughout a single exercise motion. A classic biceps curl is easiest in the outstretched starting position, then increases in intensity; the Nautilus makes the effort uniform. Bowflex featured a similar variable resistance in the form of “power rods.” The two companies are now one. 1990S AND BEYOND: DANCE REVOLUTION “Jane Fonda’s Workout Video” (1982) was the first wildly popular exercise videotape, but it wasn’t the last; throughout the ’80s, ’90s and

’00s we did Tae Bo with Billy Blanks, got physical with Olivia Newton John, sweated to the oldies with Richard Simmons, cried our way through P90X with Tony Horton. Suzanne Somers’s Thighmaster video featured a folding tension bar you’d squeeze between your knees to get those taut sitcom-actress thighs you always wanted. Today, home exercise equipment continues to proliferate in an evermore bewildering array. (See “Gym Dandies” below.) You race with specialized rowing and skiing machines. Exercise bikes have flowered into spin classes. There are colorful exercise balls that double as a desk chair/cry for help. When I look back at the colorful history of man’s attempt to get up off the couch, one thing is clear: Machines are nothing; motivation is everything. A prisoner with two soup cans full of yard dirt to his name can transform himself into The Rock in three-to-five, with time off for good behavior. So whether you drag yourself to a gym or build one at home, whether you bike outside where you can imperil the neighbors or indoors where you can catch up on “Cake Masters,” you just have to find a habit that works for you. But hurry: February’s coming, and that Valentine’s Day chocolate isn’t going to eat itself.

ARTHUR MOUNT (4)

GYM DANDIES // GAVIN MACMILLAN, A TRAINER TO PRO ATHLETES AND FOUNDER OF THE SPORTS SCIENCE LAB, EVALUATES THE LATEST FITNESS INNOVATIONS

Core Stix

ActivMotion Bar

jBells

Ripstix

The brainchild of a NASA design engineer and a strength-and-conditioning coach, Core Stix purport to build “usable strength,” since you work out in the standing position of an athlete in motion, not lying down or seated on a bench. Expert take Mr. MacMillan noted that these can be used on “multiple planes of movement,” but bemoaned the “limited resistance abilities.”

Steel balls roll inside this 4-foot, 4.5-pound bar, varying its perceived weight as you move and “igniting the senses to build a stronger mindmuscle connection.” Expert take Mr. MacMillan felt the bar “does provide some proprioceptive stimulation”—aiding the way your brain keeps track of the relative positions of muscles—”which is important.”

This variation of the dumbbell encases your hand inside a patented spherical shape intended to better distribute the weight and support the wrist. Endorsed by bodybuilders, including the current Mr. and Ms. Olympia (no relation). Expert take While this “may be useful for bodybuilding,” Mr. MacMillan felt it has “no advantage…over other dumbbells on the market.”

Twice the weight of normal drumsticks, these neon-green plastic sticks are beat 15,000 times in each “cardio jam session inspired by the infectious, energizing, and sweat-dripping fun of playing the drums.” So that’s what’s going on in the apartment upstairs. Expert take “Nothing but a gimmick workout program,” said Mr. MacMillan.

BOOKSHELF

GEEK READS FOR THE NEW YEAR

F. MARTIN RAMIN/THE WALL STREET JOURNAL

Up your nerd-cred with these how-to books for cat lovers, iPhone photographers and social-networking seniors ‘Cat Castles: 20 Cardboard Habitats You Can Build Yourself’

‘The Joy of iPhotography: Take Awesome Photos with Your Phone’

‘Facebook for Seniors: Connect with Friends and Family in 12 Easy Lessons’

By Carin Oliver

By Jack Hollingsworth

By Carrie Ewin, Chris Ewin and Cheryl Ewin

Elevator pitch Why spend a small fortune on an elaborate play structure for your kitty when you can construct one yourself? With step-by-step illustrated instructions, this guide shows how to concoct 20 forts and scratching posts out of cardboard and other materials you probably already have lying around the house. Very brief excerpt “Empty tissue boxes or cardboard food containers are ideal for adding embellishments and details to your cardboard structures. Be sure to remove any plastic or non-cat friendly materials from the box.” Surprising factoid Cats are believed to have first found their way indoors when humans started to harvest grain. The stores drew rodents, which in turn attracted the handy exterminators.

Elevator pitch Photographer Jack Hollingsworth shares his tips on fully exploiting your smartphone’s camera, from capturing the best selfies (hold your phone just above eye level) to snapping jitter-free photos (trigger the shutter by pressing the volume buttons on your phone or earbuds). Very brief excerpt “Our brains automatically adjust to all color temperatures from all light sources so everything looks as natural and neutral as possible. Our smartphone cameras do not have the same luxury. Depending upon the light source, colors don’t always look right.” Surprising factoid For every photograph archived in the Library of Congress, an estimated 10,000 have been posted to Facebook.

Elevator pitch Tech-ed instructors of a series of computer classes for seniors created this 12-part guide, which covers everything from building a profile to joining groups. Very brief excerpt “Your activity log keeps track of everything you add to Facebook, like posts, comments, photos…and setting changes. You can check [it] to see if there are any recent activities you don’t recognize that might indicate that another person has done something on Facebook in your name.” Surprising factoid Some games are designed to keep you playing for hours, and it won’t be obvious how to exit out of them. If you find yourself stuck, click the “f” icon in the top left corner of the screen to return to the News Feed page. —Lucy Feldman