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The Legend Of the First Hundred Days

The Go-Local Travel Boom

REVIEW

OFF DUTY

VOL. CCLXIX NO. 11

WEEKEND

* * * * * * * *

HHHH $4.00

SATURDAY/SUNDAY, JANUARY 14 - 15, 2017

WSJ.com

Trump Sets Bar for China, Russia

What’s News

President-elect to keep Moscow sanctions for now, won’t commit to longtime Taiwan deal

World-Wide rump suggested he would be open to lifting sanctions on Russia and wasn’t committed to a pact with China over Taiwan. A1 Rubio has become the central figure in the confirmation drama over Trump’s secretary of state pick. A4 Trump is reaching beyond traditional medical experts for a new FDA chief. A4

U.S.’s relationship with its two biggest global strategic rivals.

In an hourlong interview, Mr. Trump said he would keep intact sanctions against Russia imposed by the Obama administration “at least for a period of time.” He also said he wouldn’t commit to America’s agreement with China over Taiwan until he sees what he considers progress from Beijing in its currency and trade practices.

“If you get along and if Russia is really helping us, why

NEW YORK—President-elect Donald Trump suggested he would be open to lifting sanctions on Russia and wasn’t committed to a longstanding agreement with China over Taiwan, two signs that he would use what leverage was available to realigning the

T

By Peter Nicholas, Paul Beckett and Gerald F. Seib would anybody have sanctions if somebody’s doing some really great things?”

The desire to change relations between Washington and Moscow has been a goal of several presidents since tensions began rising under Russian President Vladimir Putin’s leadership. Former Secretary of State Hillary Clinton sought

the same goal early in the Obama administration, as did President George W. Bush, who met Mr. Putin early in his first term.

But Mr. Trump’s diplomatic efforts are likely to face opposition in Congress, including from many Republicans who want to see the administration take a tough line with Russia after U.S. intelligence concluded that the government of Mr. Putin sought to influence the November presidential election with a campaign of

The Justice Department found that the Chicago Police Department engages in an unconstitutional use of excessive force. A3 Turkey’s central bank announced new measures to prop up the lira. A7

Earnings from the nation’s three biggest banks backed investor hopes that a Trump presidency will bring less regulation and stronger economic growth that reinvigorates the financial sector.

The U.K.’s May is coming under pressure from lawmakers to provide more details on her Brexit plan. A7 Obama said he is easing sanctions on Sudan, citing efforts against terrorism. A6

SpaceX’s June 2015 rocket explosion and launch delays contributed to a quarter-billion dollar annual loss and a 6% drop in revenue. A1 U.S. customs officials seized a stash of aluminum linked to a Chinese billionaire accused of stockpiling the metal world-wide. B1 Moody’s agreed to pay $864 million to settle inquiries into how it rated mortgage bonds. B1 French prosecutors opened an investigation into Renault on suspicion of emissions fraud. B1 U.S. consumers finished the year spending at a solid pace, splurging on cars and online shopping. A2 The Dow slipped 5.27 points to 19885.73, notching a weekly decline as its postelection rally tapered off. B10

Notice to Readers WSJ.com and WSJ mobile apps will publish throughout the weekend.

The Wall Street Journal print edition won’t appear Monday, Martin Luther King Jr. Day, but a daily edition will be available in our iPad, Android and Windows apps.

Inside NOONAN A13

The Trump Cabinet’s Good Opening Week CONTENTS Books.................... C5-10 Food.............................. D8 Gear & Gadgets... D11-12 Heard on Street...B10 Obituaries................. A8 Opinion............... A11-13

Sports....................... A10 Style & Fashion D2-4 Travel...................... D5-6 U.S. News............ A2-4 Weather.................. A10 Wknd Investor....... B7 World News....... A5-8

>

s Copyright 2017 Dow Jones & Company. All Rights Reserved

By Christina Rexrode, Peter Rudegeair and Emily Glazer

STUART ISETT FOR THE WALL STREET JOURNAL

Bank earnings backed hopes that a Trump presidency will bring less regulation and stronger growth that helps the financial sector. A1

Trump weighs nontraditional choices for FDA........................ A4 Traders take on presidentelect’s tweets............................. B1

Big Banks’ Results Signal Strength

Iraqi troops breached the Mosul University campus used by Islamic State as a military facility. A6

Business & Finance

cyberhacking.

Additionally, an unsubstantiated dossier of political opposition research suggesting ties between Mr. Trump and Russia was published this past week—drawing condemnation from Mr. Trump and his team, but keeping Russian espionage in the spotlight. The allegaPlease see TRUMP page A4

Undertaker James Lindley carrying flags for the burial of four indigent veterans at Tahoma National Cemetery

A QUEST TO RECLAIM LOST VETS James Lindley, a former Marine, finds peace helping bury indigent veterans with military honors

BY MICHAEL M. PHILLIPS SEATTLE—James Lindley descended the basement stairs of the Columbia Funeral Home, took off his plaid shirt and changed into a black suit and tie.

He leaned into a mirror and checked the precise part in his dirty-blond hair under the light of a bare bulb. He knotted his tie in a double Windsor, replicating the symmetry his drill sergeant demanded in Marine Corps boot camp.

The face staring back wore the pallor of a man who spends most days in a

windowless room, embalming corpses.

Black plastic urns were stacked on a table nearby. Each contained the ashes of a military veteran. Abandoned by families, ignored by bureaucracy, these men had been on a shelf for years before they landed here awaiting their last rites.

Mr. Lindley poured the remains of a Marine, a sailor and two soldiers into polished brass urns engraved with their names.

Then Mr. Lindley, 34 years old, and a mortician, headed back upstairs to

Trump Won’t Issue Souvenir Inaugural License Plates? Sad! i

i

i

Collectors are crushed as president-elect bucks tradition; ‘the hardest collection’

BY REID J. EPSTEIN

spokesman Boris Epshteyn said there are “no plans” for WASHINGTON—President- special inaugural plates and elect Donald Trump promised none have been ordered. He deduring his campaign to dis- clined to elaborate.

That is crushing for hardpense with political precedent, and the world of license-plate core collectors like Charlie Gauthier, a retired National Highcollecting is paying the price.

Traffic Safety On Jan. 20, Mr. Trump will way become America’s first presi- Administration executive who dent since Herbert Hoover to is one of just a few dozen to possess every indecline to proaugural plate isduce special lisued. cense plates for On the wall of the vehicles in his home office his inauguration in rural Fauquier parade, a change County, Va., Mr. that has unGauthier has the A 1933 inaugural plate nerved collectors rarest of presiwho have spent decades trying to acquire a dential plates: Franklin Roosevelt’s 1933 inaugural—the first complete set.

The 45th president is in- in which a president used spestead expected to travel from cial plates. There is also one the Capitol to the White House from Dwight Eisenhower’s 1953 in an armored Cadillac limou- inauguration and autographed sine with the same District of plates from Ronald Reagan and Columbia plates in use now. George H.W. Bush.

Please see PLATES page A9 Trump inaugural committee

perform a duty he imposed upon himself: making sure the unclaimed remains of dozens of indigent King County veterans are laid to rest at Tahoma National Cemetery with military honors they earned as young men and a dignity that eluded them at life’s end.

“I do what I can,” Mr. Lindley said, “which is take care of them when they’ve passed, when nobody else is there to do it.”

Mr. Lindley’s mission began with Terry Stewart, a Korean War Marine Please see VETS page A9

The fourth-quarter performance of J.P. Morgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. was largely in line with what Wall Street had expected: Trading revenue was upbeat thanks to increased market activity and volatility following the election; expenses remain in intense focus; credit quality continues to improve; and a recent upward move in interest rates should eventually produce gains in banks’ income.

Investors viewed the results positively enough that they continued to nudge the banks’ stocks higher. Financial stocks have driven much of the postelection rally, notching gains more than three times those of the broader markets.

Shares of J.P. Morgan, Bank of America and Wells Fargo, which are all up more than 20% since Donald Trump’s win, rose 0.5%, 0.4% and 1.5%, respectively, on Friday. The Dow Jones Industrial Average, which has flirted with the Please see BANKS page A2 Moody’s settles mortgagebond ratings claims................ B1

Retail and food-services sales Overall annual change, measured in the fourth quarter of each year

Cumulative change over the past four years, select sectors

6%

40%

4

30

2

20

0

10

–2

0

–4

–10

–6

–20

–8

–30

2000 ’02 ’04 ’06

’10 ’12 ’14 ’16

Note: All figures are seasonally adjusted.

Source: Commerce Department

Nonstore (mostly Internet) Motor vehicles and parts Groceries and liquor Overall

Gasoline stations 2013

’14

’15

’16

THE WALL STREET JOURNAL.

Autos, Online Shopping Lift Sales Americans finished last year spending at a solid pace, as sales at U.S. retailers rose 0.6% in December from a month earlier.

Shoppers splurged on cars and spent online, while brickand-mortar department stores suffered. A2

Blast Rocked SpaceX Finances

BY ROLFE WINKLER AND ANDY PASZTOR One hundred and thirty nine seconds is all it took for an unmanned rocket to explode after blastoff and turn Elon Musk’s booming Space Exploration Technologies Corp. into a geyser of red ink.

That June 2015 disaster, followed by months of launch de-

lays, contributed to a quarterbillion dollar annual loss and a 6% drop in revenue, after several years of surging sales and small profits.

Internal financial documents reviewed by The Wall Street Journal and interviews with former SpaceX employees depict robust growth in new rocketlaunch contracts and a thin bottom line that is vulnerable when

things go awry. They also show the company putting steep revenue expectations on a nascent satellite-internet business it hopes will dwarf the rocket division and help finance its goal of manned missions to Mars.

A second explosion during Please see SPACEX page A5 Space-based flight tracking comes closer............................... B3

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A2 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* *****

U.S. NEWS

Surveyors Branch Out to Take Stock of Trees I

n some parts of the U.S., you can’t see the forest for the subdivisions.

But wooded acres cover a third of the country, and to ensure the vigor of this vast natural resource, teams of foresters trek into the woods each year to take stock.

For the record, 96.6 billion trees at least 5 inches in diameter populate the THE nation’s forests.

NUMBERS Regularly JO CRAVEN assessing their MCGINTY number, condition and species allows policy makers and land managers to evaluate whether current practices are sustainable and to predict the likely state of the forests in a decade or more.

“We spend a lot of time just characterizing the forests,” said Dennis May, a program manager for the Forest Inventory and Analysis National Program, which has tallied trees for the U.S. Forest Service since 1930. “Are we wisely using the forest without impacting its health, condition and stature?”

The data also guide the business decisions of the forest-products industry, and a lot is at stake. In 2016, the U.S. exported $8.7 billion of forest products. Among agricultural exports, only soybeans and

U.S. WATCH

corn had a higher value.

The inventory, which was budgeted $75 million in 2016, is the only comprehensive forest assessment for the 50 states, Puerto Rico, the U.S. Virgin Islands and the Pacific Trust Territories.

The program works in every state every year, taking five to 10 years to complete a survey cycle, depending on the region of the country. The islands are sampled only periodically.

Because the forests, which are defined as at least one acre with at least 10% canopy, are numerous and dispersed, it isn’t practical to visit each one to conduct the inventory. Instead, the country is divided into 6,000-acre hexagons (a shape that accounts for the curvature of the Earth; think of a soccer ball), and a fixed sample is visited at regular intervals.

“By perpetually cycling through the hexagons and remeasuring the same sample locations, we continually monitor current forest conditions and changes through time,” Mr. May said.

There are approximately 326,000 hexagons in the country. A sampled point within each is checked for forest. If the location appears to be forested—and roughly a third do—it will be visited. “We bring in aerial photographs or satellite imagery,” Mr. May said. “If it looks like it’s tree covered, we send in a crew.”

From Tree to Shining Tree A program run by the U.S. Forest Service counts the nation's trees, guiding government land managers and decision-makers in the wood-products industry.

Estimate for number of live trees at least 5 inches in diameter on forestland 1

2

Mont.

N.D.

Minn.

Idaho Wyo. Nev.

Wis.

S.D. Neb.

Utah

Ariz.

Pa. Ind. Ohio W.Va. Va. Ky. N.C. Tenn.

Ill.

Colo.

Calif.

Kan. Okla.

N.M.

Mo. Ark.

Texas Alaska

The Supreme Court said it would decide whether employers can prohibit groups of workers from suing over labor disputes by requiring each employee to submit individual claims through private arbitration.

The case amounts to a dispute over which federal law takes precedence: the National Labor Relations Act, which authorizes employees to take collective action for “mutual aid or protection”; or the Federal Arbitration Act, which provides that arbitration clauses generally are “valid, irrevocable and enforceable.” The Supreme Court in a series of pro-business rulings has given wide sweep to arbitration clauses, and companies have been expanding use of the device to funnel consumer and employee disputes into private arbitration and out of court.

—Brent Kendall and Jess Bravin

Mass.

R.I. Conn.

N.J. Del. Md.

S.C. Miss. Ala.

Ga.

La. Fla.

Hawaii

Note: D.C. is not included, plots in Arlington are part of the Va. estimate, plots in Maryland adjacent to D.C. are in the Maryland estimate.

Source: Forest Inventory and Analysis National Program THE WALL STREET JOURNAL.

Typically, surveys are conducted by two people, though it varies.

“If it’s a low-risk plot close to a road or behind a barn, say, it might be done with one person,” said Thomas Brandeis, a research forester with the program. “Occasionally, where the terrain is rugged and you have to hike in for days to get to the central location, we’ll have three or

four people go to make sure they can get it done in a day.”

Once a crew reaches a location, he said, the team measures a circular subplot with a radius of 24 feet.

Three more subplots of the same size are located 120 feet to the north, southeast and southwest from the center of the first subplot.

“The reason we do that is forests are very variable,” Mr.

May said. “The species differ.

We spread the sample out to capture the variability.”

Finally, to count and measure the trees, a crew member stands at the center of each subplot and shoots a compass line north. The first tree is No. 1, the tree behind it is No. 2, and so on. Working clockwise, every tree within each subplot that is at least 5 inches in diameter at breast height is

BY JOSH MITCHELL AND SUZANNE KAPNER

WILL DICKEY/THE FLORIDA TIMES-UNION/ASSOCIATED PRESS

FATHER’S DAY: Craig Aiken, father of Kamiyah Mobley, who was kidnapped as an infant 18 years ago, talks to reporters in Jacksonville, Fla. on Friday, after his daughter was found safe in South Carolina. Police arrested a woman in Walterboro, S.C., where Ms. Mobley was raised.

BANKS Continued from Page One level of 20000 in recent weeks, closed down less than 0.1%, to 19886.

J.P. Morgan, the country’s biggest bank by assets and the world’s largest by market value, was the standout performer in Friday’s earnings parade. Its quarterly profit of $1.71 a share handily outpaced analyst expectations, largely due to strong trading results. Full-year 2016 net income of $24.73 billion was a record for the bank.

Bank of America’s earnings per share of 40 cents beat analyst expectations as the bank cut enough expenses to offset lower-than-expected revenue.

At $17.91 billion, its 2016 net income was its biggest annual profit in a decade.

Wells Fargo reported lower fourth-quarter earnings and revenue, at 96 cents a share and $21.58 billion, that both missed analysts’ expectations.

The bank’s shares rose after it repeatedly referenced a charge related to interest-rate moves as the reason for coming in below estimates.

Wells Fargo said its customer loyalty and satisfaction scores were down versus a year earlier as the bank struggles to recover from its September sales-tactics scandal.

Big-bank earnings continue this coming week with Morgan Stanley reporting on Tuesday and Citigroup Inc. and Goldman Sachs Group Inc. following on Wednesday.

The burden is now on banks to live up to heightened investor expectations while showing that increased profits are

sustainable.

“It was an OK quarter for the banks,” said Jeff Morris, head of U.S. equities at Standard Life Investments, adding that the market’s reaction shows banks don’t need to be “continually fueled by good news.”

Mr. Morris, whose firm collectively owns more than 40 million shares of the three banks, said the potential for more interest-rate rises are helping the stocks most, while possible deregulation in a Trump administration “is a topic of debate.”

The burden is now on banks to live up to heightened investor expectations.

And while many investors now believe a turn in the interest-rate cycle is at hand, which would bolster bank profits, rates remain superlow by historical standards. That continues to drag on results: Wells Fargo’s quarterly return on equity hit its lowest level in years at 10.94%.

Wells Fargo Chief Financial Officer John Shrewsberry acknowledged that the market has lifted bank valuations based on more than current performance. “Now banks need to, over some period of time, demonstrate how they’re going to earn into that,” he said in an interview.

At Bank of America, CLSA analyst Mike Mayo asked officials during a conference call for a timeline on when they might meet goals on profit-

A

tree retains its number until it is gone. Its location is noted so it can be remeasured in the next survey cycle. In the past, finding the plots years later was a major challenge, but GPS now eases the task.

The program makes its data publicly available, and it also publishes an annual fourpage summary for each state followed every fifth year by a comprehensive report.

There have been some changes in the forests—in the South, longleaf and slash pines, two important commercial species, have declined in recent years—but for the most part, the country’s forests have remained stable for the last century.

“That does not mean that the characteristics or distribution of forests hasn’t changed at various scales on the landscape,” said Sonja Oswalt, a forester with the program, “But in terms of the total land base we define as forest, we still have about the same area as we did in 1910.”

And thanks to the inventory, that’s information you can count on.

CarBuyersDrive RobustRetailSales

Kidnapped Newborn Found 18 Years Later

SUPREME COURT

Labor, Arbitration Laws Clash in Case

Maine

N.Y.

Mich.

Iowa

Several Midwestern states are preparing for power outages, downed trees and impassable roads as the National Weather Service warns of a “potentially crippling” ice storm headed their way this weekend.

Ice-storm warnings are in effect from the Texas Panhandle to Southern Illinois, and up to an inch of ice buildup is possible in some places.

The Weather Channel called it a potential “multiday icing event,” which could last until early Monday.

—Will Connors

SUPREME COURT

N.H. Vt.

Ore.

States Brace for Weekend Ice Storm

The Supreme Court on Friday agreed to consider a dispute between Novartis AG and Amgen Inc. that could determine how soon cheaper, copycat versions of biotechnology drugs can be sold to consumers.

At issue is whether a lower court was correct when it made Novartis’s Sandoz subsidiary wait an extra 180 days after Food and Drug Administration approval in 2015 before it began selling Zarxio, a biosimilar version of Amgen’s Neupogen, a drug used to help cancer patients boost white blood cell production during chemotherapy.

Congress, in the 2010 Affordable Care Act, sought to spur potential price competition for expensive biologic drugs by creating an abbreviated approval pathway for so-called biosimilar medicines.

—Brent Kendall

4+

billion trees

Wash.

MIDWEST

Copycat Drug Suit Will Be Reviewed

3

numbered and measured.

Smaller trees of 1 inch to 4.9 inches in diameter are inventoried in 6-foot-radius microplots located 12 feet east of each subplot’s center. Seedlings over 12 inches tall are counted but not numbered.

ability measures such as return on assets and equity.

Bank of America’s return on equity in 2016 was just 6.71%, its highest level in five years but still well below banks’ theoretical cost of capital of 10%.

CFO Paul Donofrio replied to Mr. Mayo that the bank was moving in the right direction but wouldn’t set a time frame.

Mr. Mayo’s response: “It seems like, from an investor standpoint, you get a free pass. ‘When you get there is when you get there.’ ” Speaking a week before Mr. Trump’s inauguration, bank officials offered vague support for anticipated tax overhauls and regulatory relief, but didn’t enumerate specific requests they might want from the new administration.

Among specific businesses, trading continued to gain ground. After a brutal start in 2016, trading activity ramped up following the U.K.’s vote to leave the European Union in June and accelerated after Mr. Trump’s election. At J.P. Morgan and Bank of America, annual trading revenue for 2016 increased above year-earlier levels for the first time in at least three years.

In the fourth quarter, J.P. Morgan’s trading revenue climbed 24%, and Bank of America’s rose 11%. Wells Fargo’s relatively small presence in trading has sometimes been an advantage in recent years but has been a handicap of late.

Still, it isn’t clear how long the trading jolt can continue.

Bank of America noted the postelection rise in long-term bond yields had slowed demand for trading municipal bonds and other products tied to interest rates.

American consumers finished last year spending at a solid pace, splurging on cars and pouring money into online shopping during the holidays, a sign the economy is on a steady footing as the country prepares for a change in the presidency.

Sales at U.S. retailers rose 0.6% in December from a month earlier, the eighth monthly increase in nine months, helping to extend the economy’s long expansion. Retail sales rose 3.3% in all of 2016, faster than the prior year’s gain of 2.3% and similar to the underlying trend during the expansion.

The holiday season is the most crucial part of the year for retailers, and the final months of 2016 coincided with a booming stock market and a pickup in Americans’ wages.

Measures of consumer confidence hit multiyear highs at the end of last year, too, helping to keep spending strong.

Two-thirds of all U.S. output goes to goods and services consumed by U.S. households, making the pace of consumer spending a key gauge of economic vitality.

A separate report Friday from the National Retail Federation, an industry trade group, showed holiday sales rose 4% in November and December, compared with the same period a year earlier. The govern-

CORRECTIONS AMPLIFICATIONS A spokesman for holding company Privinvest disputed the characterization of equipment sold to Mozambique as military and said none of it carried weapons. A Dec. 29 Business & Finance article about the U.S. Securities and Exchange Commission’s investigation of debt deals by Mozambique omitted the Privinvest spokesman’s comment.

Sarah Zames is a home designer. A Mansion article and headline on Friday about her home renovation incorrectly said she is an architect.

Robert Grusczynski’s last name was misspelled as Grudczynski in a photo credit with a Mansion article Friday about Frank Lloyd Wright’s “Tirranna.”

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

ment data showed a roughly 4% gain in sales in the final three months of last year over the fourth quarter of 2015.

“American consumers remain remarkably resilient, and after a slow start to the holiday season, retail sales picked up momentum,” said Craig Johnson, president of consulting firm Customer Growth Partners. Consumers “are shopping at a rate not seen since the mid-2000s—just not so much at the mall,” he said.

Car sales helped drive holiday spending, as Americans took advantage of big discounts offered by the auto industry. Sales had moderated earlier in the fall, and car makers offered incentives over the holidays to encourage sales of passenger cars. The strategy largely worked, with the lateyear surge lifting auto sales to another annual record.

Online stores had a big quarter as consumers continued to turn to e-commerce retailers such as Amazon.com Inc. The shift walloped brickand-mortar outlets like Macy’s Inc. and J.C. Penny Co. In all of 2016, spending rose 11% at online retailers and fell almost 6% at department stores, the government report said.

Last week, Macy’s, Kohl’s Corp., J.C. Penney and Sears Holdings Corp. each reported a drop in holiday sales. Macy’s has earmarked 100 stores for closure and will slash more than 10,000 jobs. At Sears, the store closings numbered 150.

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THE WALL STREET JOURNAL.

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Saturday/Sunday, January 14 - 15, 2017 | A3

U.S. NEWS

Chicago Police Cited for Excessive Force Justice Department calls certain practices unconstitutional, aims for consent decree

CHICAGO—Justice Department officials on Friday said they found that the Chicago Police Department engages in an unconstitutional use of excessive force, including deadly force, following a 13-month investigation.

The investigation began in December 2015, in the wake of the release of a video in which a police officer killed Laquan McDonald, firing 16 shots as the 17-year-old African-American veered away from the officer.

The Justice Department found that the pattern of “unconstitutional force” came as a result of deficiencies within the police department and city government, including inadequate training, said Vanita

TANNEN MAURY/EUROPEAN PRESSPHOTO AGENCY

BY SHIBANI MAHTANI AND JOE BARRETT

Chicago Mayor Rahm Emanuel, left, and the city’s superintendent of police, Eddie Johnson, at a news conference on Friday.

Gupta, head of the department’s Civil Rights Division, in a news conference in Chicago Friday morning.

“We found that Chicago’s

accountability system is broken,” she said, adding that officers were too infrequently held responsible for excessive use of force.

The city and the Justice Department have agreed in principle to negotiate a consent decree with a court-appointed monitor who will oversee the process of reform, officials said.

The Obama administration has repeatedly used probes like the one in Chicago, known as a patterns and practices investigation, to enforce change in law-enforcement agencies.

But it is unclear if the Trump administration will pursue the same course. The president-elect’s nominee for attorney general, Sen. Jeff Sessions (R., Ala.), has expressed skepticism about the effectiveness of such decrees.

The Justice Department investigation into Chicago has been the largest conducted in the agency’s history. After reviewing hundreds of cases and thousands of documents, the Justice Department found that officers routinely engaged in a number of faulty practices, including unnecessary foot pursuits that often led to shootings of suspects, shooting

indiscriminately at vehicles and using police vehicles in an unsafe manner.

In the most egregious cases, officers shot or used their stun guns on suspects who posed no immediate threat.

The report also said that the Chicago Police Department investigates crimes with methods that undermine the department’s legitimacy and “may also be unlawful,” including dropping a young person in a rival gang neighborhood as a form of intimidation or displaying the youth to rival members to suggest he has provided information to police.

Officials said the systematic pattern of excessive force within the Chicago Police Department has eroded trust among minority communities, making it harder for the department to effectively solve violent crime.

The city experienced a spike in violence last year, with more than 760 people murdered and more than 4,000 shootings. Only 29% of homicides were solved last year,

lower than the national clearance rate.

Police are implementing a variety of crime-fighting tactics to curb the violence and have promoted a batch of new detectives to address the low rate at which homicides are solved.

Justice Department officials acknowledged that the city has been making efforts at reform but said that much more can be done.

Chicago Mayor Rahm Emanuel, speaking at the news conference Friday, highlighted efforts the city has already taken to reduce instances of excessive use of force, including deescalation training and equipping all officers with body cameras and stun guns.

“The Chicago Police Department [and] the city of Chicago [are] already on the road to reform, and there are no U-turns on this road,” he said, adding that the behavior cited in the report “does not represent the city of Chicago” but that he appreciates the report’s candor.

BY ARIAN CAMPO-FLORES

MIAMI—Osbel Esquijaros came to the U.S. from Cuba six months ago and was able to quickly start up a new life here, propelled by a longstanding U.S. immigration policy that favors Cuban émigrés.

But after President Barack Obama ended Thursday a policy that allowed Cubans who arrive on U.S. soil to remain, the 47-year-old Cuban electrician is concerned his three children and girlfriend—all yearning to leave Cuba—won’t be able to join him in Florida.

“They’re going to have a problem,” said Mr. Esquijaros, speaking outside La Carreta restaurant in this city’s Little Havana neighborhood Friday morning. “You can’t go by boat now.”

The policy, which has been in place since the 1990s, is known as “wet-foot, dry-foot” because it permitted Cubans who reached U.S. soil without visas to stay and apply for residency after a year. It has helped support the immigration of tens of thousands of Cubans over the years.

In fiscal year 2016, the U.S. granted entry to more than 56,000 Cubans, up 31% from 43,000 Cubans the previous year, according to a Pew Re-

search Center compilation of federal data. Many Cubans on the island have feared the end of the policy, fueling a recent increase in people leaving.

For Cuban-Americans here, the policy change drew responses ranging from approval to anger to apprehension. Critics of the move said Mr. Obama’s administration was shutting down an escape route for people suffering in Cuba and providing another gift to the Cuban government, which opposed the policy, while receiving nothing in return.

President-elect Donald Trump, a Republican, had described the policy as unfair during the presidential campaign, leaving little hope he might reverse his Democratic predecessor’s decision after he takes office next week.

Supporters of the policy change hailed the end of a measure that they said morerecent Cuban arrivals were abusing—gaining U.S. residency and benefits under the guise of being political exiles, only to return regularly to visit family on the island they said they were fleeing.

Frank Morales, a 56-yearold Cuban-American mechanic, said he backed the policy change. He said it was difficult to justify special immigration

JOSH RITCHIE FOR THE WALL STREET JOURNAL

Cuba Policy Shift Stirs Up Debate

The end of a U.S. policy helping Cubans emigrate to the U.S. has drawn praise and lament in Miami’s Little Havana neighborhood. treatment for Cubans that no other nationalities enjoy.

“You can’t have an exception for one country,” he said.

Another Cuban migrant, Tomás Llano, a 62-year-old retiree who came to the U.S. in 1994 before the policy took effect, said he supported Mr.

Obama’s decision.

“Cubans themselves provoked this,” he said. “It was an abuse of that privilege.”

Mr. Llano said he always has been fiercely anticommunist and has never returned to Cuba. He criticized those who crisscross regularly between

the U.S. and the island.

“You left because the system was oppressive,” he said.

“What are you doing returning?”

Some Cuban-American lawmakers have soured on the policy. They say many migrants are draining U.S.

benefit programs while helping prop up the Cuban government with all the cash and goods they take back to the island.

In recent years, the U.S. reopened its embassy in Havana and has resumed direct flights

by U.S. airlines to the island.

BY JEANNE WHALEN Advocates for substanceabuse treatment are hoping to protect the insurance coverage provided by the Affordable Care Act by lobbying Republican legislators in states hit hard by the opioid-addiction crisis.

The advocacy groups aim to “start educating legislators” on how a repeal of the ACA, without a replacement plan to preserve coverage, would undermine efforts to address a public-health crisis that has become a major political issue, according to Gary Mendell, founder of Shatterproof, a New Yorkbased nonprofit that lobbies for legislation to fight addiction.

Shatterproof, which plans to spend $300,000 on the campaign, is working alongside the National Council for Behavioral

Health, a Washington, D.C., organization that represents the interests of 2,800 providers of mental health and addiction treatment.

Widespread abuse of powerful opioids, such as heroin, fentanyl and prescription painkillers, has pushed overdose death rates in the U.S. to all-time highs, hitting many states in Appalachia and the Northeast particularly hard.

The lobbying effort plans to focus on Republican legislators in eight states identified by researchers at Harvard Medical School and New York University as having experienced high opioid-addiction rates and wide expansion of insurance coverage under the ACA: West Virginia, Maine, Pennsylvania, Tennessee, Ohio, Nevada, Alaska and Arizona.

Those states are likely to

Coverage Dilemma Some states with high drug overdose death rates could lose broad insurance coverage for mental-health and substance-abuse disorders if the Affordable Care Act is repealed.

People with behavioral Drug overdose death rate health disorders who gained per 100,000 insurance from the ACA* 16.0 19.0 21.2 20.4 29.9 26.3 22.2 41.5

Alaska Ariz.

Maine Nev. Ohio Pa. Tenn.

W.Va.

*Figures include people who gained insurance through Medicaid expansion or the ACA marketplaces.

Sources: Harvard Medical School; New York University

10,525 78,744 19,232 50,379 220,512 180,526 78,807 214,501 THE WALL STREET JOURNAL.

get hit hard if the ACA is repealed without a comparable replacement plan, Mr. Mendell said.

The researchers published data this week estimating that 2.8 million Americans with substance-abuse disorders would lose some or all of their insurance if the ACA is repealed. They said about 220,000 of these are addicted to opioids.

A group of Democratic senators issued a press release promoting the research and warning that an ACA repeal would “pull the rug out from under” efforts to combat opioid addiction.

In an email this week, the National Council for Behavioral Health asked the treatment providers it represents to write their members of Congress to oppose an ACA repeal. The email included a letter template asking legislators to “protect our nation’s most vulnerable patient population and preserve their access to treatment.”

Linda Rosenberg, CEO of the council, said the group also will target Republican senators who have been outspoken about the need to address the opioid crisis, including Rob Portman of Ohio and Roy Blunt of Missouri.

“The skyrocketing costs of Obamacare are hurting families and small businesses all across Ohio,” Mr. Portman’s spokesman said in an email Thursday. “Senator Portman is committed to ensuring there is a smooth transition for all Ohioans to a better healthcare system that also ad-

JOHN MOORE/GETTY IMAGES

Push to Save Health Law’s Addiction Coverage Is Primed

A group-therapy session at a substance-abuse treatment center in Westborough, Mass. dresses key concerns about opioid addiction, mental health care, and other important issues.”

Mr. Blunt said in an email statement: “The Affordable Care Act did not live up to its promises, including the promise of affordable coverage. As chairman of the Appropriations Subcommittee that funds opioid treatment and prevention programs, I fought to successfully increase funding to combat the opioid epidemic.”

He added, “I will continue to work on a replacement plan that prioritizes access to treatment and prevention programs.”

Treatment Under The Health Law Repeal expected to pull billions of dollars a year for services for mental conditions The Affordable Care Act increased access to substanceabuse treatment in several ways, including by giving states federal funds to expand healthcare coverage under Medicaid, the insurance program for lowincome Americans. Even before the ACA, Medicaid was the largest source of funding in the

U.S. for mental-health care, including substance-abuse treatment, according to the Robert Wood Johnson Foundation.

The ACA also helped other Americans buy insurance through government-run exchanges and required that these insurance plans cover certain “essential health benefits,” including substance-abuse treatment.

Researchers at Harvard Medical School and New York University estimated a repeal would withdraw at least $5.5 billion annually from treatment of mental-health conditions, including substance abuse.

—Jeanne Whalen

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A4 | Saturday/Sunday, January 14 - 15, 2017

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U.S. NEWS

BY BYRON TAU

WASHINGTON—Republican Sen. Marco Rubio has become the central figure in the Senate confirmation drama over President-elect Donald Trump’s choice to lead the State Department, emerging as the key vote on confirming Rex Tillerson to the nation’s top diplomatic post.

A trio of Republican senators have expressed deep reservations about Mr. Tillerson, the former Exxon Mobil Corp. chief executive. In addition to Mr. Rubio of Florida, they are Sens. John McCain of Arizona and Lindsey Graham of South Carolina. The three have raised concerns about Mr. Tillerson’s personal and business relationships with senior figures in the Russian government, an especially sensitive topic because of the U.S. intel-

ligence assessment that the Kremlin interfered with the nation’s presidential election.

All three remain undecided on whether to support Mr. Tillerson after a marathon, eighthour hearing with the former CEO on Capitol Hill this week.

But no senator is more critical to Mr. Tillerson’s fate than Mr. Rubio, who sits on the Foreign Relations Committee, which will vote on whether to support the nomination. Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio may be crucial to moving Mr. Tillerson’s nomination to the floor with a recommendation that he be confirmed for the job.

Mr. Rubio has remained tight-lipped about his intentions. He has said he has additional questions for Mr. Tillerson as part of the vetting process and would withhold

comment until he has come to a decision.

A committee vote on Mr. Tillerson’s nomination could come as soon as next week.

Messrs. Graham and McCain also say that they are withholding judgment but that they are concerned about Mr. Tillerson’s views on Russia and the broader direction of the Trump administration’s proposed detente with Moscow. Mr. Trump has proposed improving relations with Russian President Vladimir Putin, a stance that is at odds with many Republicans in Congress.

Mr. Rubio subjected Mr. Tillerson to several rounds of withering questioning, with a special focus on the issue of Russia, economic sanctions and human rights. In one exchange, Mr. Rubio asked whether Mr. Putin was a war criminal, citing the Russian

military’s actions in Syria as the reason for the question.

Mr. Tillerson demurred, saying: “Those are very, very serious charges to make, and I would want to have much more information before reaching a conclusion.”

There is enormous pressure within the Senate Republican caucus to start the Trump administration with a series of smooth confirmation hearings and votes. But Republicans have a thin margin for error, holding 52 out of 100 seats in the Senate.

GOP leaders have signaled that the confirmation of Mr. Tillerson, as well as all of Mr. Trump’s other nominees, is a top priority. No cabinet nominee has been rejected by the Senate since 1989, though several have withdrawn.

Many Democrats have spoken out about their concerns

TOM WILLIAMS/CQ ROLL CALL/GETTY IMAGES

Rubio Vote Key for Tillerson

Marco Rubio hasn’t decided if he will back State Department pick. about Mr. Tillerson, though it is possible he will draw some Democratic support in the final vote tally.

“I will oppose the nomination of Rex Tillerson as secretary of state,” said Sen. Tim Kaine (D., Va.), who also sits

on the Foreign Relations panel.

“He has a notable record of business success and a laudable commitment to civic affairs. But he did not demonstrate the awareness, judgment or independence I expect from our nation’s chief diplomat.”

BY THOMAS M. BURTON

DREW ANGERER/GETTY IMAGES

President-elect Donald J. Trump is reaching beyond traditional medical experts in his search for a new Food and Drug Administration commissioner, scheduling meetings for the FDA job with two Silicon Valley investors backed by billionaire investor Peter Thiel.

The two are James O’Neill, a managing director of the investment firm Mithril Capital Management, and Balaji S. Srinivasan, a venture capital board member who founded the genetic-counseling firm Counsyl Inc. Neither one is a medical doctor, a traditional qualification for FDA commissioners. Mr. Srinivasan holds a Ph.D. in electrical engineering from Stanford University.

Of the two, Mr. O’Neill would appear to face the more difficult road to getting approval from the Senate, because his stated views run counter to existing FDA law and regulations. In a 2014 speech, he took the position that drugs shouldn’t have to be proven effective before putting them on the market.

“We should reform FDA so there is approving drugs after their sponsors have demonstrated safety—and let people start using them, at their own risk, but not much risk, of safety,” he said at a conference called Rejuvenation Biology.

“Let’s prove efficacy after they’ve been legalized.”

Mr. O’Neill was a principal associate deputy secretary at the Department of Health and Hu-

man Services under President George W. Bush.

Messrs. O’Neill, Srinivasan and Thiel couldn’t be reached for comment. Attempts to reach the Trump transition office were unsuccessful.

People familiar with the Trump transition said another person under consideration for the top FDA job is Scott Gottlieb, a medical doctor and prominent conservative thinker on medical regulatory issues. Dr. Gottlieb served as deputy commissioner of the FDA for medical and scientific affairs from 2005 to 2007.

He was previously chief policy adviser to the Medicare agency, also under Mr. Bush. For about a decade, Dr. Gottlieb has been a resident fellow at the conservative think tank American Enterprise Institute.

Since the 1962 Kefauver amendments to the federal food and drug law, it has been a keystone principle of U.S. medical regulation that drugs and medical devices must be proven both safe and effective before going on the market.

Some in academic medicine have expressed surprise about Mr. O’Neill’s candidacy.

“This will set back the competitiveness of the American pharmaceutical industry, which is the envy of the world, by 50 years,” said Dr. David A. Kessler, who served as FDA commissioner under both Presidents George H.W. Bush and Bill Clinton. “When the industry sells a drug, the drug works, and it does what it says on the label. Take that away and we go back to snake oil.”

Possible FDA pick Jim O’Neill arriving Thursday at Trump Tower.

JOHN TAGGART/BLOOMBERG NEWS

Trump Weighs Nontraditional Pick for FDA

A busy week of confirmation hearings was punctuated by a spirited news conference Wednesday with President-elect Donald Trump.

TRUMP Continued from Page One tions haven’t been validated by the U.S. intelligence agencies.

Mr. Trump in the interview suggested he might do away with the Russian sanctions— imposed by the president in late December in response to Moscow’s alleged cyberattacks—if the nation proves helpful in battling terrorists and reaching other goals important to the U.S. The president-elect said he is prepared to meet with Mr. Putin some time after he is sworn in.

“I understand that they would like to meet, and that’s absolutely fine with me,” he said.

On China, asked if he supported the “One China” policy on Taiwan that has underpinned U.S. relations with Beijing for decades, Mr. Trump said: “Everything is under negotiation including One China.”

China has considered Taiwan a breakaway province since Chiang Kai-shek’s Nationalists set up a government there in 1949, after years of civil war. Washington’s agreement to rescind diplomatic recognition of the government in Taiwan and uphold the One China policy was a precondition for the re-establishment of diplomatic relations be-

WASHINGTON WIRE HOUSE OF REPRESENTATIVES

House Takes Step To End Health Law The House on Friday took its first procedural step toward repealing the Affordable Care Act, passing a budget that directs lawmakers to start drafting legislation to dismantle much of the 2010 health-care law.

Already approved by the Senate, the budget resolution passed the House on a 227-198 vote.

Nine Republicans voted with 189 Democrats to oppose the budget.

No Democrats voted for it.

The measure will start the substantive work on measures to repeal portions of the health law, instructing two House and two Senate committees to come up with proposals by Jan. 27.

The budget is designed to allow Republicans to take advan-

tage of procedural shortcuts that let them pass legislation repealing much of the health-care law with just a simple majority in the Senate. Most bills need 60 votes to clear the Senate, where Republicans hold only 52 seats.

Legislation rolling back the health law and potentially enacting steps to construct a new health care system will be drafted by the House Energy and Commerce and Ways and Means committees, with input from two Senate committees and leaders in both chambers.

— Kristina Peterson SENATE

Panel to Expand Its Russia Probe Senate Intelligence Committee Chairman Richard Burr said his panel would expand the scope of

tween U.S. and China in 1979.

Any suggestion in the past that the U.S. may change its stance has been met with alarm in Beijing.

Though he has long been critical of China, Mr. Trump also made a point of showing a holiday greeting card he received from China’s leader, Xi Jinping.

“I have a beautiful card from the chairman,” he said.

Mr. Trump seemed impatient with diplomatic protocols involving China and Taiwan.

After his victory he took a congratulatory phone call from Taiwan’s leader, triggering objections from Beijing and stoking concerns among some U.S. foreign policy experts who questioned whether he understood the implications of such a conversation.

Speaking of Taiwan, he said: “We sold them $2 billion of military equipment last year. We can sell them $2 billion of the latest and greatest military equipment but we’re not allowed to accept a phone call. First of all it would have been very rude not to accept the phone call.”

Mr. Trump has said in the past he would label China a currency manipulator after he takes office. In the interview, he said he wouldn’t take that step on his first day in the White House. “I would talk to them first,” he said.

He added: “Certainly they are manipulators. But I’m not

looking to do that.”

But he made plain his displeasure with China’s currency practices. “Instead of saying, ‘We’re devaluating our currency,’ they say, ‘Oh, our currency is dropping.’ It’s not dropping. They’re doing it on purpose.”

He added: “Our companies can’t compete with them now because our currency is strong and it’s killing us.”

The interview came at the

Allegations of Russian meddling in the U.S. election dominated much of the week. end of a week in which Mr. Trump saw much of his national-security team get closer to their appointments but had to push back against the Russia allegations and against criticism from ethics experts of his plan to maintain ownership of his business interests.

Six of his cabinet choices had confirmation hearings, and a number look likely to sail through. Many Democrats offered eager support for his pick for defense secretary, retired Gen. James Mattis.

Mr. Trump also brought his son-in-law, Jared Kushner, on

as a senior White House adviser, although the appointment could be challenged under antinepotism laws. And he got closer to fulfilling a campaign promise as the Senate and then the House took procedural steps that begin rolling back or repealing the Affordable Care Act. “He got elected as a fighter and he’s going to be president as a fighter,” said Ed Brookover, a former Trump campaign adviser. He added that Mr. Trump “is going to be a very active president and push a lot of buttons along the way.”

At a jam-packed news conference on Wednesday morning, Mr. Trump was both combative and flattering, shouting down one journalist but praising news outlets who he said covered him fairly. During the session, he accused intelligence agencies of allowing the dossier information to be leaked, and on Twitter he said they were employing the tactics of Nazi Germany. James Clapper, the director of national intelligence, said he doesn’t believe intelligence officials leaked the information.

For the first time, he said he agrees that Russia was behind the cyberattack on the Democratic National Committee and a top aide to election campaign rival Mrs. Clinton.

—Damian Paletta contributed to this article.

Flynn’s Russia Contact in Spotlight its investigation into alleged Russian election meddling to include looking at potential links between Moscow and individuals associated with President-elect Donald Trump’s presidential campaign.

The North Carolina Republican’s new position, detailed in a statement issued with Sen. Mark Warner (D., Va.), effectively reverses his position on Thursday, when he shot down the idea of looking into potential ties between Russia and advisers to the Trump campaign.

Mr. Burr had said that the matter wasn’t in the jurisdiction of his committee’s probe of Russian hacking, and that a special commission wasn’t needed either, because a dossier describing a conspiracy by Russian government operatives with Mr. Trump’s campaign hadn’t been substantiated.

— Siobhan Hughes

BY PAUL SONNE AND SHANE HARRIS WASHINGTON—Donald Trump’s incoming national security adviser is facing new scrutiny over his ties to Russia after the president-elect’s aides confirmed he communicated with the Russian ambassador to the U.S. as the White House prepared new sanctions on Russia.

Retired Lt. Gen. Michael Flynn, Mr. Trump’s pick for national security adviser, exchanged calls and text messages with Russian Ambassador Sergei Kislyak as the White House planned to announce the new sanctions on Dec. 29, said Sean Spicer, a spokesman for Mr. Trump’s transition team. The sanctions were in response to Moscow’s alleged cyberattacks in the

2016 election.

Whether Gen. Flynn spoke to Mr. Kislyak on the same day the White House announced the sanctions is a matter of dispute. Mr. Spicer said Friday that the phone call took place Dec. 28, before the sanctions were made public, and came after a number of text-message exchanges. But a different transition official later identified the date of the call as Dec. 29.

That day, the White House made public the new sanctions against Russia’s main intelligence agency, the Federal Security Service, and Russia’s military intelligence agency, the Main Intelligence Directorate, as well as four top Russian intelligence officials.

Mr. Spicer said Gen. Flynn didn’t discuss the sanctions with Mr. Kislyak. That official also said the two communi-

cated separately in the wake of the Dec. 19 assassination of Russia’s ambassador to Turkey, so Gen. Flynn could express his condolences.

“The call centered around the logistics of setting up a call with the president of Russia and the president-elect after he was sworn in,” Mr. Spicer said. “And they exchanged logistical information on how to initiate and schedule that call.”

“That was it,” Mr. Spicer said, “plain and simple.”

A spokesman for the Russian embassy in Washington declined to comment on the communications. “In accordance with diplomatic practice, the embassy does not comment on multiple contacts,” Nikolai Lakhonin, the embassy’s press secretary, said.

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | A5

* * * *

WORLD NEWS

Foreign Holdings Pose Challenge for Trump Business partners at odds with officials abroad complicate ties for new administration

By Tom Wright in Hong Kong, Alexandra Berzon in Los Angeles and Nicolas Parasie in Dubai At the Wednesday press conference where Mr. Trump described the company’s new structure, he also said he had turned down $2 billion in property deals in Dubai to avoid any possible ethics issue. Dubai investor Hussain Sajwani confirmed he made those offers and that they were declined.

But his company and the Trump Organization are still developing two golf courses in Dubai, one of which is set to open to the public by next month.

Mr. Sajwani is among several Asian and Middle Eastern partners of the Trump Organization who have faced government probes or been sanctioned for corruption, stock fraud or tax evasion. Such troubles among business partners could prove tricky for a Trump administration’s ties abroad.

“The notion that there won’t be new deals doesn’t solve the problem of all the existing deals and businesses,” Walter Shaub, director of the U.S. Office of Government Ethics, said on Wednesday.

Problems among some of the Trump Organization’s partners include a tax probe in Indonesia, a conviction for stock ma-

TOKYO—Top Japanese officials pushed back against President-elect Donald Trump’s suggestions that Japan is a drag on the U.S. economy.

Mr. Trump on Wednesday named Japan as one of the countries contributing to the U.S. trade deficit, reiterating claims during the election campaign of unfair economic ties with Tokyo.

Japanese Finance Minister Taro Aso said Friday it was inappropriate to include Japan with countries that have larger trade surpluses with the U.S. “In terms of trade imbalances, China is No. 1,” Mr. Aso said.

More attention should be given to Japanese companies’ creation of around 800,000 jobs in the U.S., Mr. Aso said.

—Takashi Nakamichi

KAMRAN JEBREILI/ASSOCIATED PRESS; BEN OTTO/THE WALL STREET JOURNAL (BELOW)

Donald Trump has said his company will be run by his sons and won’t strike new foreign deals, but some he has already made present a challenge to his attempts to separate his presidency from his international business.

Japan Counters Trump’s Criticisms Over Trade Deficit

A gardener watering a green in front of the clubhouse at the Trump International Golf Club, in Dubai; below, Mr. Tanoesoedibjo. nipulation in Malaysia, and Mr. Sajwani’s sentence—later overturned as Egypt’s political situation shifted—for an allegedly corrupt land deal there.

Mr. Trump announced this week that his business would be run by his sons and a company executive and that he would have no contact with it under terms of a private trust.

Matthew Sanderson, who served as political-campaign attorney for John McCain, Rand Paul and Rick Perry, expressed concern that Mr. Trump’s plan didn’t appear to restrict his business partners from contacting him or other administration officials.

“You now have these people abroad and who knows what they are saying?” Mr. Sanderson said. “They can be holding

themselves out as being able to access Trump, able to speak on his behalf since they have this business relationship.”

Led primarily by Mr. Trump’s adult children, the Trump Organization has made a major push abroad in recent years. The last 10 announced Trump Organization property deals have been overseas and involve foreign developers.

While the company has canceled real-estate licensing agreements in Brazil, Azerbaijan and Georgia since the election, its executives have said they don’t intend to or can’t cancel some of the other deals in Asia and other regions. The Trump Organization didn’t respond to requests to comment on the latest details on its current partners.

In Indonesia, the Trump Organization’s billionaire partner in two multimillion-dollar hoteland-golf-course projects, Hary Tanoesoedibjo, sent a text message last year to a public prosecutor investigating allegations of tax fraud, according to a spokesman for the attorney

general’s office.

Mr. Tanoesoedibjo told police the message wasn’t meant to be threatening. A police spokesman said authorities are investigating. A representative for Mr. Tanoesoedibjo said the tax-fraud allegations were without merit. A spokesman for the attorney general’s office stood by the fraud allegations.

Another of Mr. Trump’s partners, Malaysian businessman Tony Tiah, was convicted in 2002 of giving false information about share prices to Malaysia’s stock exchange. Mr. Tiah is executive chairman of TA Enterprise, which holds a controlling stake in TA Global Bhd., run by Mr. Tiah’s son. TA Global is set to soon open a Trump-branded hotel in Vancouver.

The Trump Organization

didn’t respond to requests to comment about Mr. Tiah. Before the election, Trump Organization general counsel Alan Garten dismissed any concerns about Mr. Tiah.

An Egyptian court in 2011 handed Mr. Sajwani a five-year prison sentence and a fine following his conviction for corruption. Egypt’s public prosecutor alleged that his Dubai-based real-estate firm, Damac Properties, benefited from land acquired at below-market value via the country’s former regime.

Mr. Sajwani’s conviction was among a wave of similar cases and allegations against businesses with ties to the regime of President Hosni Mubarak, who was ousted that year. An Egyptian court later overturned Mr. Sajwani’s conviction.

U.S. Ambassador to EU Urges Support for the Bloc

BY STEPHEN FIDLER BRUSSELS—The departing U.S. ambassador to the European Union warned the Trump administration not to cheer for Brexit and said it would be lunacy if it supported further fragmentation of the EU. In unusually strong remarks to reporters before he leaves his post next week, Anthony Gardner also expressed concern that Brexit campaigner Nigel Farage had apparent influence with the new administration,

describing him as a “fringe voice” in European politics.

Mr. Gardner said it would be “inconceivable and shameful” if the U.S. were to consider lightening sanctions on Russia, given what U.S. intelligence agencies said was Russian meddling in the election.

Mr. Farage, the former leader of the UK Independence Party, who successfully campaigned for the U.K. to leave the EU in June’s referendum, was the first foreign politician to visit President-elect Donald

speak so forcefully at the time of a change of administration.

Mr. Gardner was appointed to the post by President Barack Obama in 2014.

“We shouldn’t become cheerleaders for Brexit, particularly a Brexit that is more likely to be a hard, and a disorderly, unmanaged Brexit.

That would be in my view absolute folly,” he said. If Brexit led to a fragmentation of the European single market he said, “it would be very bad news for American business.”

Trump after the U.S. election.

Mr. Gardner, a former lawyer and banker, said indications that Mr. Farage holds some influence with the Trump team are unfortunate.

“I hope that Nigel Farage isn’t the only voice they listen to because he is a fringe voice,” he said. Mr. Trump suggested in a tweet in November that Mr. Farage would make a good ambassador to Washington.

It is rare for an outgoing ambassador, even political appointees like Mr. Gardner, to

Mr. Farage responded that “Mr. Gardner’s comments are the last desperate defense of Obama’s pro-EU policy. It is very important that Mr. Trump gets rid of this type of thinking and gets with the modern world.”

But Mr. Gardner said the Brexit vote had increased a sense of purpose in Europe.

“The perceived idea of some is that 2017 is the year that the EU is going to fall apart,” Mr. Gardner said, referring to conversations between Mr.

Trump’s transition team and top EU officials that he said he had been told of. But he said “the EU is not about to fall apart.”

Mr. Gardner said the incoming administration should avoid the temptation “to pursue a bilateral and a transactional policy toward Europe and toward the EU, dealing exclusively or principally with our perceived best friends like the U.K. and Germany.” It shouldn’t ignore, he said, the EU institutions in Brussels.

FROM PAGE ONE

SPACEX Continued from Page One testing on the launchpad in September grounded SpaceX again, adding to losses and causing a four-month delay. Its next launch is planned for Saturday, when it will seek to regain momentum in the face of depressed revenue, jittery customers and a rising backlog of missions.

SpaceX, based in Hawthorne, Calif., transformed the aerospace industry with innovative rocket features and software design principles mandated by Mr. Musk, its billionaire founder and chief executive. The 15-year-old company was the first American firm in years to compete for commercial launch contracts, and the first company to launch and return a spacecraft from orbit.

SpaceX declined to comment on details of its finances but said it has a solid record of success and strong customer relationships. “We have more than 70 future launches on our manifest representing over $10 billion in contracts,” said SpaceX Chief Financial Officer Bret Johnson.

“The company is in a financially strong position and is well positioned for future growth,” adding it has over $1 billion of cash and no debt.

The Journal reviewed SpaceX’s financial results from 2011 through the end of 2015 as well as forecasts through the next decade. As a private company, SpaceX isn’t obligated to disclose the figures, and the information has never been widely shared.

Mr. Musk, who owns 54% of SpaceX and holds 78% of company votes, has said he isn’t in-

terested in going public until the company is able to transport humans to Mars, which he has said he hopes will happen in 2024.

To reach the red planet, SpaceX would need to develop a rocket many times more powerful than its fourth-generation model, which hasn’t flown and is four years behind schedule.

SpaceX projected the satellite-internet business would have over 40 million subscribers and bring in more than $30 billion in revenue by 2025, according to the documents. The internet service is currently in planning stages without a factory or a full-fledged team of engineers, according to industry officials and earlier comments by company President Gwynne Shotwell.

From 2010 to June 2015, SpaceX managed 18 successful launches in a row before its first accident, versus more than 100 straight so far by its main U.S. rival, a joint venture between Boeing Co. and Lockheed Martin Corp., and more than 75 successful consecutive liftoffs for Europe’s Arianespace SA. SpaceX delivered small operating profits in 2013 and 2014, as revenue jumped to $1 billion from $680 million thanks to contracts from NASA and commercial satellite operators.

The company lost $260 million in 2015 when one of its Falcon 9 rockets, carrying two tons of cargo to the international space station, exploded shortly after liftoff in June of that year.

The accident thwarted plans to launch more than a dozen rockets that year; it launched six.

Last year satellite operators Inmarsat PLC and ViaSat Inc. each shifted one SpaceX launch to Arianespace, citing the delays,

Reaching for the Stars SpaceX projects that soaring revenue from its planned satellite-internet business will dwarf its launch revenue.

Revenue

Operating income

Launch Revenue

Satellite Internet Revenue

$40 billion

$40 billion Projections

35

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35

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30

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Accidents in 2015 and 2016 caused planned launches to be delayed.

Planned launch

2011

2012

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2013

Accident

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2015

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2016

2017

Note: specific launch targets for 2011-15 not available Source: the company, early 2016 documents

although they both retain slots on later missions.

NASA is conducting a safety review of plans to have SpaceX carry astronauts. SpaceX has said it was committed to working with NASA to resolve issues.

Mr. Musk targeted 27

launches for this year; its highwater mark is eight. By 2019, he projected SpaceX will launch 52, according to the documents.

SpaceX is building a spaceport near Brownsville, Texas, expected to begin launches in 2018.

SpaceX phases in significant

2018

2019

2020

THE WALL STREET JOURNAL.

changes as they become ready, rather than following the industry standard of waiting for a fully overhauled design. This “iterative” approach is typical in Silicon Valley, where software companies quickly roll out new features and fix bugs. SpaceX

says it lowers costs and improves efficiency.

SpaceX’s roughly $60 million launch fee for Falcon 9 is onequarter to one-half of what the Boeing-Lockheed venture typically charges.

SpaceX’s success enticed Google-parent Alphabet Inc. and Fidelity Investments to invest a total of $1 billion in early 2015, valuing SpaceX at $12 billion. Fidelity has since marked up its stake to a price implying a valuation over $16 billion.

After the June 2015 explosion, the company determined the culprit was a 24-inch strut, or low-tech metal support structure, that hadn’t been properly inspected. The company spent six months revamping safety procedures.

The second accident last fall destroyed a $200 million commercial satellite and ratcheted up NASA’s concerns. The cause was attributed to problems with new fueling procedures.

A phrase on SpaceX’s website said it was “profitable and cashflow positive.” The internal financial documents reviewed by the Journal, though, show an operating loss every quarter in 2015, and also negative cash flow of roughly $15 million.

Three weeks after the September accident, SpaceX removed the phrase from its website, suggesting both profit and cash flow had moved into the red for 2016. Senior SpaceX officials haven’t made public statements about profitability.

Using the investment from Alphabet, SpaceX plans to eventually launch its own constellation of over 4,000 communications satellites to provide global internet access, forecasting the first phase to go online by 2018.

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THE WALL STREET JOURNAL.

AHMED SAAD/REUTERS

WORLD NEWS

Iraqi Special Operations Forces clashed with Islamic State militants near the front line at the Mosul University on Friday.

Iraq Gains Ground in Mosul Brilliant features.

Brilliant price.

Forces begin to retake ISIS base at university in what officials call a major step in offensive

BY TAMER EL-GHOBASHY AND ALI A. NABHAN

forces so far have taken several buildings, including dorms and the technical college, officials said on Friday.

The Mosul campaign began on Oct. 17 and initially moved along the southern, eastern and northern edges of the city.

But the fight got bogged down by late November. Militants put up a tough fight in the densely populated neighborhoods of eastern Mosul, where

The advances follow a tactical shift to make elite forces more nimble and effective

most residents stayed in their homes at the encouragement of the Iraqi government and out of fear for the perils of fleeing. Some 100,000 out of the estimated 1.5 million in the city and its surrounding towns have fled.

The presence of the civilians, along with insufficient numbers of elite troops to wage intricate urban warfare, has led to heavy casualties, commanders and medical workers said. By mid-Decem-

ASHRAF SHAZLY/AGENCE FRANCE-PRESSE/GETTY IMAGES

MOSUL, Iraq—Iraqi troops breached the Mosul University campus used by Islamic State as a military facility, in what officials said was a significant advance in the nearly four-month battle to reclaim the city.

Retaking the university would be a major step in bringing the eastern half of Mosul—Islamic State’s largest stronghold in Iraq—fully under Iraqi government control, senior officers said Friday. Islamic State remains fully in control of the western half of the city, which is bisected by the Tigris River.

The progress by the Iraqi military follows a shift in tactics last month to join elite forces and make them more nimble, in an effort to overcome Islamic State resistance and stem mounting civilian and military casualties.

The campus is one of the two main facilities in Mosul that U.S. and Iraqi officials

said the militants used to build bombs, develop chemical weapons and treat wounded fighters. Iraqi forces seized the other facility, a hospital, last week.

“If they lose the campus, their fighters and supporters will lose their morale. For them, losing the campus means losing the eastern side of the city,” said Gen. Sami alAridi, a commander with the forces leading the push into the university.

Col. John Dorrian, spokesman for the U.S.-led international coalition battling Islamic State in Iraq and Syria, said the progress at the university and other parts of eastern Mosul indicated Islamic State’s “days in Mosul are quickly coming to an end.”

The university campus has repeatedly come under Iraqi and U.S.-led airstrikes since last year. Iraq has made plodding progress in the battle for Mosul, with gains measured in streets rather than miles.

The breach of the campus suggested Iraqi troops were gaining momentum. The university covers as much territory as a typical neighborhood in Mosul—but one rife with militants and devoid of civilians, Iraqi officials said. Iraqi

Women walking past U.N. peacekeepers at the Attash refugee camp in South Darfur this week.

Obama Eases Sudan Sanctions

BY FELICIA SCHWARTZ AND MATINA STEVIS WASHINGTON—President Barack Obama said he is easing sanctions on Sudan, citing progress in the nation’s efforts to confront terrorism as he shifts course on a long-running source of U.S. distress in North Africa.

Under a directive signed

by Mr. Obama on Friday, the U.S. will lift a trade embargo and will unblock Sudanese government assets that have been frozen in earlier sanctions against the country and its leaders. Sudan will remain on a U.S. list of state sponsors of terrorism and will continue to face sanctions related to a long-running conflict in the country’s Darfur region and to terrorism-related activities.

Steps to begin the sanctions relief begin Tuesday. They will become permanent in six months if the Trump administration certifies that the Suda-

nese government has maintained progress in counterterrorism cooperation and has kept intact a cease-fire, a reduction in offensive military activity and improvements in humanitarian access.

U.S.-Sudan relations have been hostile for much of the past two decades. Over the past six months, Obama administration officials have conducted intensive engagement with the Sudanese government to bring about the sanctions relief.

“Sudan has long expressed a desire to get out from under sanctions as well as other restrictions that the United States has imposed on Sudan going back 20 years,” a senior administration official said.

“We have in the past two years looked for a way to engage with Sudan in a way that we could overcome some of the lack of trust of the past and to come up with an approach that would get the Su-

danese to address concerns we’ve had, mainly in how they treat their own people.”

A second senior administration official said that the Obama administration has briefed the Trump transition team about the moves, but couldn’t say if President-elect Donald Trump intended to appoint a special envoy to Sudan and South Sudan, as the Obama administration did.

“The Obama administration’s decision to ease sanctions is inexplicable,” said Leslie Lefkow, deputy Africa director at Human Rights Watch.

“Instead of using its leverage to press for real reforms that would benefit Sudanese citizens, the Obama administration is sending the worst possible message to Sudan and other repressive governments: if you cooperate on counterterrorism, then all abuses—including by your president— will be ignored.”

ber, Iraqi advances in the city ground to a halt.

Late last month, commanders brought well-trained police SWAT units from the southern edges of the city into the east to fight in tandem with the counterterrorism forces. They also reduced the role of armored tank divisions that proved to be too lumbering to wage urban combat.

At the same time, Islamic State ability to build and equip car bombs, their most deadly weapon, was depleted by the loss of bomb-making factories to Iraqi forces and the lack of willing suicide bombers, Iraqi officials said.

The changes have led to rapid advances toward the Tigris in recent days, said Gen. Maan al-Saadi, a senior officer with the U.S.-trained Counterterrorism Division. “This has reduced the enemy’s pressure on our troops,” he said.

The benefits came into focus last week, when newly deployed troops from the Emergency Response Division, a police SWAT force, reclaimed the large Al-Salam Hospital complex in about six hours.

The hospital had been an Islamic State base and was the site of a withering ambush of Iraqi Army troops last month.

U.S. Envoy Urges No Cut in U.N. Funding Associated Press

U.S. Ambassador Samantha Power urged the incoming Trump administration not to cut funding to the United Nations, warning it would be detrimental to U.S. interests and benefit countries such as China and Russia.

“We lead the world, in part, by leading at the United Nations,” Ms. Power stressed at her final press conference before Jan. 20 when Barack Obama’s presidency ends and Donald Trump is inaugurated.

Supporters of Israel in Congress have introduced a number of bills to cut off U.N. funding to protest Mr. Obama’s decision to allow the adoption of a Security Council resolution in December condemning Israel’s construction of settlements in the West Bank and east Jerusalem, which the Palestinians want for their future state.

The U.S. pays 22% of the U.N.’s regular operating budget and 25% of the budget for its 16 far-flung peacekeeping missions.

Ms. Power said “we are in the room as a credible leader within the U.N., which would become extremely hard to do if we were not contributing our share of funding.”

Looking back on her 3½ years as U.S. ambassador, Ms. Power said “the U.N. system is flawed” and has “a bloated bureaucracy that has accreted bad habits over 71 years.”

Nonetheless, she said, “the United States needs the U.N.”

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* * * *

Saturday/Sunday, January 14 - 15, 2017 | A7

WORLD NEWS

BY YELIZ CANDEMIR

ISTANBUL—Turkey’s central bank announced fresh measures to prop up the country’s currency, raising borrowing costs for banks.

The lira has been the world’s worst performing currency thus far in 2017, continuing a period of softness that began with a failed coup attempt in July.

The central bank’s moves came after the government signaled its support Friday for further action to support the weakening lira as investors fret over proposed changes to the constitution that would concentrate power in the hands of President Recep Tayyip Erdogan. The central bank said it halved banks’ borrowing limits at the interbank money market to 11 billion Turkish lira to become effective Monday.

Economy Minister Nihat Zeybekci said Friday that the central bank had many tools to support the currency and was free to take strong measures.

“The central bank has the power to respond to this speculative attitude against Turkey, it has instruments and it is in a position to do what is necessary robustly,” Mr. Zeybekci told state-run Anadolu news agency.

The statements increased the likelihood that the bank would raise rates later this month, observers said.

“Such remarks from prominent Turkish officials imply that Governor [Murat] Cetinkaya may have more room for

maneuver to raise interest rates significantly than previously assumed,” said Piotr Matys, an emerging-markets strategist at Rabobank. “Consequently, our conviction that Turkish policy makers may respond to the lira’s crisis with a substantial rate hike is increased.”

On Friday, Mr. Erdogan again called on Turks to convert their foreign currency into lira to boost the currency.

On Thursday, Mr. Erdogan compared those selling the lira and buying foreign currency to terrorists.

“The aim is to bring Turkey to its knees, to take over Turkey and to distance Turkey from its goals. Therefore, they are using the foreign exchange rate as a weapon,” Mr. Erdogan said.

The central bank may limit the funding amount in shortterm money-markets such as repo in Borsa Istanbul, Turkey’s main stock exchange, on days the move is deemed necessary, it said.

The central bank added that the banks may meet remaining liquidity needs by the end of the day at the late liquidity window overnight lending rate at 10%.

The central bank raised its interest rates in November for the first time in nearly three years, but surprised markets by leaving them unchanged in December. It next meets to decide policy Jan. 24.

In the past, Mr. Erdogan has advocated lower interest rates to boost investment and stimulate economic growth.

Many investors had inter-

SEDAT SUNA/EUROPEAN PRESSPHOTO AGENCY

Turkey Moves To Aid Currency

People exchanged their currency this week in Istanbul.

Free Fall A tumultuous year has taken a toll on the value of Turkey's currency How many dollars one Turkish lira buys The night before the failed coup attempt

$0.36 0.34 0.32 0.30 0.28

Central bank announces interest-rate increase

0.26 0.24 J F MA MJ J A S O N D J Source: Tullett Prebon

THE WALL STREET JOURNAL.

preted that as a threat to the central bank’s independence.

The bank faces a dilemma, as raising interest rates may help slow or halt the lira’s depreciation, but could also weaken an economy that con-

tracted in the third quarter of 2016. Fourth-quarter data aren’t available yet.

The Turkish currency has tumbled as much as 12% against the dollar since the beginning of 2017, after losing one-fifth of its value against the greenback in 2016. The lira traded 1% lower at 3.8014 against the dollar in afternoon trading Friday, Meanwhile, parliament is debating a constitutionaloverhaul bill. The proposal includes the creation of an executive presidency similar to those in the U.S. and Russia, which would turn Mr. Erdogan’s mostly ceremonial office into the seat of government. It would also change the parliament, which currently houses the cabinet, into a purely legislative body.

The central bank tightened lira liquidity by not funding banks at 8% via its one-week repo auction on Friday and Thursday.

—Margaret Coker contributed to this article.

Pressure Grows Over Brexit Strategy

BY JENNY GROSS AND NICHOLAS WINNING LONDON—Prime Minister Theresa May is coming under increasing pressure from lawmakers to provide more details on her vision for Britain’s exit from the European Union.

Late on Friday night, a cross-party parliamentary committee demanded the government publish its plans by mid-February to give lawmakers enough time to examine them before Mrs. May triggers the two-year window for talks some time before the end of March.

In its first report, the Exiting the European Union Committee said it wants the government to explain its goals for the future trading relation-

ship, including possible transitional arrangements in case a deal isn’t concluded in two years.

Lawmakers should also be given a vote on the final deal, it said.

After dodging questions for months, saying she didn’t want to compromise her negotiating strategy, Mrs. May has promised to reveal more in a speech on Tuesday.

Analysts and investors will be watching for signs of whether Mrs. May is more likely to pursue a “hard” Brexit, where the U.K. clearly cuts ties with Europe, or a “soft” Brexit, where the U.K. seeks to stay in the EU’s tarifffree single market and the customs union, which imposes a common external tariff on

imports from nonmembers.

She has broadly outlined her priorities, saying she wants to take back control over immigration and the jurisdiction of the European Court of Justice, while maintaining free trade with Europe.

EU officials say those demands are incompatible.

So far, frustration among lawmakers doesn’t seem to be damaging Mrs. May’s public support. A poll by Communicate Research Ltd., taken in December, showed she has relatively high approval ratings.

Of the 2,040 people surveyed, 41% said they had a favorable opinion of Mrs. May, compared with 30% who felt unfavorably. The rest didn’t know or felt neither way. Her approval rating was well

above other prominent politicians such as Foreign Secretary Boris Johnson at 33% and opposition Labour Party leader Jeremy Corbyn at 24%.

Mrs. May is facing her own unknowns. This year, there will be elections in France, Germany, the Netherlands and potentially Italy, meaning many of the main players will be focused on domestic politics, rather than the U.K. In another potential complication, the Supreme Court this month is ruling on whether Mrs. May needs approval from Parliament to trigger talks with the EU on Britain’s exit.

But even if the court rules against the government, U.K. lawmakers aren’t expected to try to reverse Brexit this far along in the process.

Colombia Holds Odebrecht Graft Suspect BOGOTÁ—Colombian authorities detained a former deputy transport minister late Thursday for allegedly receiving bribes from Brazilian construction firm Odebrecht SA. Gabriel García, who served in the administration of former President Álvaro Uribe, demanded $6.5 million to cut out competition and allow the Brazilian firm to be the sole participant in the bidding process for a road project authorized between 2009 and 2010, Colombia’s Attorney General Néstor Martínez said, citing evidence obtained by prosecutors.

The arrest is the first in the region since Odebrecht in December admitted as part of an anticorruption settlement to paying about $439 million in bribes in countries outside Brazil, mostly in Latin America, Mr. Martínez said. About $11 million of that was allegedly paid in Colombia.

A lawyer for Mr. García, who if convicted faces up to 20 years in prison, couldn’t be reached.

Mr. Uribe on Friday backed the attorney general’s decision. “There is no right for people like Gabriel García to receive bribes,” he said, adding that his administration was deceived by the former deputy minister.

The payment to Mr. García was allegedly made through offshore accounts managed by Odebrecht’s so-called Department of Structured Operations, a division the company used to pay bribes and kickbacks, Mr. Martínez said.

SEBASTIAN CASTANEDA/REUTERS

BY KEJAL VYAS

Protesters in Lima, Peru, marching Thursday against fees for a highway built by Odebrecht.

Tainted Brazil Firm To Pay $59 Million, Panama Official Says SAO PAULO—Brazilian construction conglomerate Odebrecht SA agreed to pay at least $59 million as part of the Panamanian government’s probe into alleged bribery payments by the company, Panama’s attorney general said.

“I received verbally a formal commitment to deliver in a

short time $59 million and/or guarantees of payment,” Attorney General Kenia Porcell said on Thursday. “I must clarify that this does not affect the results of the investigations carried out by the prosecutors.”

An Odebrecht spokesman declined to confirm or deny any agreement with Panamanian authorities. The company said it is collaborating with Brazilian and foreign officials to advance their investigations.

Ms. Porcell didn’t specify if the payment is a fine or some

other form of restitution, nor did she provide details on Odebrecht’s exact offenses.

The deal comes as multiple countries are investigating Odebrecht after the builder admitted in December to paying nearly $800 million in bribes, including $439 million in countries outside Brazil, mostly in Latin America. Odebrecht agreed in December to pay between $2.6 billion and $4.5 billion in a settlement with authorities in Brazil, the U.S. and Switzerland.

—Rogerio Jelmayer

Colombian investigators said they are working to identify the alleged recipients of the remaining bribes, which the attorney general says passed through the National Infrastructure Agency during the tenure of current President Juan Manuel Santos. The

Santos administration has denied any involvement and publicly called for the probes.

Aside from the road construction contract, Odebrecht also won a massive project to expand Colombia’s Magdalena River, though the attorney general’s office said re-

cently that a probe into the deal found no evidence of bribes.

The attorney general also said Odebrecht agreed to pay nearly $11 million as “reparation for the damage caused to the public administration of Colombia.”

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THE WALL STREET JOURNAL.

* ***

WORLD WATCH

WORLD NEWS

China’s Overseas Funding To Shrink

JOHANNES STEHLE/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY LINGLING WEI

ICY END: A fox frozen in a block of ice was pulled from the Danube River in Germany. A hunter who found the fox on Jan. 2 said it fell through thin ice and drowned.

IVORY COAST

Tensions Rise Amid Army Mutiny Talks Soldiers in Ivory Coast’s second-largest city surrounded the residence where officials were negotiating a deal to end an army mutiny, as gunfire was also reported in the commercial capital of Abidjan on Friday night, raising fears the crisis was far from over.

Hundreds of soldiers converged on the home of a local official where the talks were taking place, and some fired their weapons into the air. Inside, a government delegation led by Defense Minister Alain-Richard Donwahi was meeting with representatives of soldiers who kicked off the mutiny a week ago. The uprising reignited security worries in the world’s top cocoa producer and Africa’s fastestgrowing economy.

The Bouake delegation also

included the armed forces chief of staff and the head of the gendarmes, both of whom were appointed in a shake-up this week.

Soldiers controlled the main roads in Bouake, and phone service to the city was severely impaired. In Abidjan, witnesses reported gunfire at military installations in the residential Cocody district and in Plateau, where Camp Gallieni, the army headquarters, is located.

Last week’s mutiny quickly spread to other cities, including Abidjan, before President Alassane Ouattara announced Jan. 7 that a deal had been reached and that he would consider the soldiers’ demands. The soldiers are seeking unpaid bonuses, higher pay, faster promotions and improved living conditions.

However, the details of the deal weren’t made public, and it was unclear whether all soldiers would accept them.

—Associated Press

SYRIA

Regime Says Israel Bombed Military Base Syria accused Israel of firing missiles early Friday that landed near a major military base west of Damascus, in the third such reported attack in nearly six weeks to hit near the capital.

The Syrian government was quick to respond, warning Israel of the repercussions of such attacks. But it refrained from saying whether it would retaliate.

Damascus, preoccupied with the country’s war for six years now, is unlikely to open a new front with Israel.

Israel has previously targeted shipments of weapons headed to the Lebanese Hezbollah group.

The group is a main supporter of Syria’s President Bashar al-Assad in the war, and has sent thousands of fighters to fight alongside his army.

There was no immediate comment from Israel to the Syrian claims of a strike. Israel is widely believed to have carried out a number of airstrikes on advanced weapons systems in Syria but it rarely confirms them.

—Associated Press UNITED KINGDOM

Princess Margaret’s Ex-Husband Dies Lord Snowdon, former husband of Queen Elizabeth II’s late sister, Princess Margaret, and a renowned photographer of celebrities and royalty, died. He was 86 years old.

He died peacefully at his home Friday, his family said in a statement passed on by the photo agency he worked with.

Buckingham Palace said Queen Elizabeth had been informed of her former brother-in-law’s death and declined to comment further.

Princess Margaret died in 2002.

Born Antony ArmstrongJones, he was already an established photographer when he married Princess Margaret in 1960. But their socializing with the stars of the day in 1960s “Swinging London” brought him fame, and their relationship attracted intense media attention.

The marriage was hit by reports of infidelities and they separated after 16 years and divorced two years later in 1978.

He remarried shortly after, though divorced again.

He became a photographer after quitting a course in architecture at Cambridge University.

During his career he photographed the queen and other members of the British royal family numerous times, as well as a host of famous entertainers from David Bowie to Marlene Dietrich to Rudolf Nureyev and Meryl Streep.

—Nicholas Winning

BEIJING—China’s direct investment overseas is likely to decline this year, according to a government think tank, reversing nearly a decade and a half of rapid increases that fueled global booms in infrastructure and real estate from Africa to Australia.

Greater scrutiny of outbound deals by the government and the prospect of tougher trade measures in the U.S. and other countries are likely to deliver a hit to Chinese investments in foreign plants, resources, real estate and other physical assets, said economists at the Chinese Academy of Social Sciences.

Blessed by the government’s desire to lift China Inc.’s global profile, overseas direct investment, which doesn’t include things like stocks and bonds, has been growing at an annualized rate of about 35% since 2003. Direct investment is expected to hit a record $170 billion in 2016, China’s top economic planning official said this week.

For this year, “we’re still seeing strong desire by companies to invest in foreign markets,” said Zhang Ming, a senior member of a team of economists at the think tank that produced an analysis of China’s foreign investment. “But a combination of tighter domestic policies and heightened political risks overseas mean outbound investments for 2017 would be lower than the level in 2016.”

Mr. Zhang estimates total Chinese direct investments will drop to the level seen in 2015, at about $118 billion, the first time outbound Chinese investment exceeded foreign direct investment in China.

The expected turnaround matters to the world as China has become an important source of capital for everything from oil pipelines to industrial parks and real estate.

OBITUARIES

J. DEWEY DAANE 1918 — 2017

BY JAMES R. HAGERTY

J

. Dewey Daane’s father, unsure his son was cut out for a college education, suggested he try working as a bank teller instead. Undeterred, the younger Mr. Daane earned a doctorate in public administration at Harvard University, advised Paraguay on financial affairs and served on the U.S. Federal Reserve Board of Governors from 1963 to 1974.

He also tried out as a matador in a bullring while visiting Spain for an American Bankers Association conference in 1966. Though flung into the air, he landed on his feet and escaped with mere bruises.

Dr. Daane later taught finance at Vanderbilt University, where he often brought in guest lecturers, including his friend Paul Volcker, the former Fed chairman. The Wall Street Journal regularly quoted Dr. Daane’s economic forecasts.

He died of cancer Jan. 3 in a hospice in Nashville. He was 98.

James Dewey Daane was born

July 6, 1918, in Grand Rapids, Mich.

His father was a banker; his mother taught Sunday school.

Despite his father’s misgivings, Mr. Daane enrolled at Duke University and earned a bachelor’s degree there in 1939.

In 1950, he moved to Paraguay for a year to act as a consultant to the International Monetary Fund there. He returned to work at the Federal Reserve Bank of Richmond, Va., where he was a statistician, economist and head of research.

After working briefly at the Federal Reserve Bank of Minneapolis, he was hired by the Treasury, first as an adviser on managing the federal debt and then as deputy undersecretary for monetary affairs.

In November 1963, shortly before he was assassinated, President John F. Kennedy quizzed Dr. Daane on his economic views before appointing him to the Fed. In an interview later, Dr. Daane said the president knew he was hawkish on controlling inflation but wondered whether he would also promote economic growth. “I fell into the

JOHN RICHMAN 1927 — 2017

A

s chief executive of Kraft Inc. in the 1980s, John Richman oversaw some of America’s best-known food brands, including Velveeta processed cheese and Miracle Whip salad dressing. They were also some of the blandest, at a time when American palates were growing more adventurous.

VANDERBILT UNIVERSITY

Economist huddled with John Kennedy, defied Lyndon Johnson and strode into a Spanish bullring. Not bad for a man whose father wasn’t sure he could handle college.

Dr. J. Dewey Daane, shown in 1977, served on the Fed from 1963 to 1974.

Federal Reserve jargon right away, saying, ‘Well, of course, Mr. President, the best way to help the country grow is to avoid inflation,’ ” Dr. Daane recalled.

Inflation remained a touchy issue as federal spending on the Vietnam War mounted. By late 1965, some Fed governors wanted

Seeking faster growth, he diversified, acquiring Duracell batteries and Tupperware plastic food containers. Later, he ditched the nonfood lines while buying other businesses. In early 1987, Mr. Richman played down the idea that Kraft itself might become takeover bait. “We’d be an awfully big bite for someone,” he told The Wall Street Journal.

Eighteen months later, cigarette maker Philip Morris Cos. agreed to chomp down Kraft for $13.1 billion, at that time one of the biggest takeovers ever.

Mr. Richman, a Harvard-trained lawyer, died Monday of pneumonia at a clinic in Weston, Fla. He was 89.

to raise interest rates to cool demand for credit. The Johnson administration, fearing higher rates would choke off economic growth, pushed back. Treasury Secretary Henry Fowler met Dr. Daane for breakfast to lobby against a rate increase, according to “Monetary Politics,” a 1984 book by John T.

ANTHONY ATKINSON 1944 — 2017

B

efore beginning his studies at the University of Cambridge, Anthony Atkinson spent half a year volunteering at a hospital in a poor section of Hamburg, Germany.

The experience helped inspire his studies of the economics of inequality.

As a professor at the London School of Eco-

Woolley. A White House memo noted that Dr. Daane represented the Johnson administration in international forums and could be told it would be “inappropriate” for him to retain that role if he didn’t follow the president’s economic line.

Nonetheless, Dr. Daane voted to raise the discount rate, the fee charged by the Fed on loans to banks, to 4.5% from 4%. The increase squeaked through on a 4-3 vote in December 1965.

Six months later, Dr. Daane had another chance to prove his valor.

He and other American bankers holding a conference in Spain traveled to a bullring near Toledo for entertainment. The event was a tienta, or trial, for heifers rather than a bullfight.

Volunteers were sought to wave a cape in front of the animal.

“Somebody’s got to do it,” Dr. Daane said, according to his widow, Barbara McMann Daane.

The Fed governor, wearing sunglasses and a business suit, flicked the scarlet-and-yellow cape. A moment later, Dr. Daane was “draped over the neck of the still-galloping beast,” The Wall Street Journal reported. “ But after an eternity, Dewey Daane slides off the animal and lands firmly upright.”

He is survived by his wife of 54 years, three daughters, four grandchildren and two great-grandchildren.

He was once asked who he would like to be in his next life.

“I’d like to be me all over again,” he replied.

Read in-depth profiles of those featured here at WSJ.com/Obituaries

nomics and other institutions, Mr. Atkinson focused on inequality starting in the 1960s, when the subject was a backwater, only to find it was a hot topic late in his life. Thomas Piketty, the French economist whose 2014 book “Capital in the Twenty-First Century” sparked discussion far beyond academia, cited Mr. Atkinson as a major influence.

After he was diagnosed with myeloma in 2013, Mr. Atkinson set forth his policy prescriptions in the book “Inequality: What Can Be Done?” Among his proposals: governments should guarantee public employment at the minimum wage.

Mr. Atkinson died Jan. 1 in Oxford. He was 72.

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Saturday/Sunday, January 14 - 15, 2017 | A9

* * * * * *

IN DEPTH

Continued from Page One whose remains had been at the Medical Examiner’s office since 2013. The county waited for a local funeral home to secure approval for a military interment.

Months passed, then years.

Last summer, the county contacted Mr. Lindley, who broke through the bureaucratic roadblocks. In just over a week, he arranged a military funeral.

After that, Mr. Lindley decided he would take on the processing of every indigent veteran in the county, a timeconsuming, money-losing effort for him and his employer.

Each year, some 250 people die in King County without money or family, some after years in nursing homes, some after years on the street. The Medical Examiner’s Office searches for relatives, then waits as long as two years for someone to claim the body or ashes.

If no one steps forward, the remains go to a mass grave.

Indigent veterans are an exception. When the Medical Examiner’s Office receives a body, the agency’s investigators search for clues of military service—a veteran’s ID card or a war story shared with another homeless person.

Those remains are set aside.

Over the years, dozens of urns with the ashes of unclaimed veterans accumulated at the Medical Examiner’s Office and at a private funeral home that for a while had agreed to have them interred.

Over the summer, 32 black-plastic urns were moved to the basement of the Columbia Funeral Home.

With Mr. Lindley accepting this mission, the county medical examiner no longer cremates suspected veterans. Instead, they turn over the bodies for burial in caskets paid for by the Department of Veterans Affairs.

Working with the VA, the Medical Examiner’s Office and the military-records depot, Mr. Lindley investigates whether the deceased served in the military and earned an honorable discharge.

Once the VA confirms a veteran’s eligibility, Mr. Lindley schedules a military funeral and arranges for mourners.

“They’re veterans,” he told a woman at the National Cemetery Administration during a phone call this fall. He read the names of an 81-year-old veteran who died in 2010 and a 70-year-old who died in 2007. “We don’t want them to go in a mass grave.”

On duty At the end of September, Mr. Lindley interred four men who had died in 2014. Army veteran Ricky Fesler, 62 years old, had been addicted to heroin and often lived on the streets, VA records show. Roger Alvear, a 63year-old Vietnam Marine, changed his name to Rocky Stallone and was a drinker who suffered violent outbursts during combat flashbacks.

Army veteran Russell Ristow, age 69, had a friend care for him as he succumbed to cancer. Sailor Wayne Roberts, 76, believed his parents had hidden his adoption from him, VA records show. He said he drank to “quiet his sense of sadness and loneliness,” according to the records.

In a funeral viewing room, Mr. Lindley and a colleague folded four U.S. flags into crisp red-white-and-blue triangles.

They loaded Messrs. Fesler, Stallone, Ristow and Roberts

PLATES Continued from Page One At the behest of his wife, Mr. Gauthier stores the rest of his inaugural plates —which include ones autographed by Jimmy Carter, Dan Quayle, Dick Cheney and Bill Clinton— in a box.

“I’m sure this is just like cocaine,” said Mr. Gauthier, who has written a five-part history of presidential inaugural plates.

“Once you get addicted to this stuff, you just keep going. If you have plates that were issued to a president and a vice president of the United States, that’s a pretty cool thing to have in your house.”

Presidential inaugurations generate an untold amount of memorabilia, from embossed tickets to buttons to hats. The inaugural license plates are unique, because for decades just a few hundred sets were

James Lindley stops by the grave of his grandfather at Tahoma National Cemetery after a ceremony, below, for an indigent veteran.

Mr. Lindley tried a VA treatment that involved recording himself talking about his experiences. He found it too difficult to listen to his own memories.

The VA eventually declared him 70% disabled from PTSD, cognitive disorder and depression.

In 2010, he married Tana, a patient woman with two children and a willingness to share a confined life. They moved into a small house in Pacific, Wash.

Mr. Lindley experiences night sweats and anguished dreams of combat. Mrs. Lindley avoids waking him. If she does, she said, “the look on his face is he’s ready to go to war.”

STUART ISETT FOR THE WALL STREET JOURNAL

VETS

into a black Cadillac limousine for the ride to Tahoma.

They drove past Vietnamese clinics, Ethiopian restaurants and halal minimarts. The ethnic mix of the neighborhood makes Mr. Lindley uncomfortable, he said, so he rarely strays far from the funeral home on foot.

Too many faces remind him of his own military service in the Middle East.

At Tahoma cemetery, a retired sailor checked the precision of the folded flags. “Not my first rodeo,” Mr. Lindley assured him.

Mr. Lindley had buried his own grandfather, J.C. Tinney, at Tahoma last summer. The Tinneys raised him, he said, after his parents disappeared from his life in a cloud of drugs.

His grandfather had been a Marine in Vietnam. Mr. Tinney didn’t talk about his combat experiences until he was diagnosed with post-traumatic stress disorder while in his 70s.

After high school, Mr. Lindley, too, joined the Marine Corps.

In early 2003, he was among the U.S. forces gathered in the Kuwaiti desert awaiting orders to invade Iraq. Mr. Lindley, a communications specialist, was stationed at an air base where loudspeakers blared gas-attack warnings. The Marines were told they had just nine seconds to don their gas masks in the event of a real attack.

Mr. Lindley recalls that during one drill or false alarm, he discovered one of his men hiding in a cot in a panic, unable to find his mask and trying to inject himself with an antidote to nerve agents. Mr. Lindley found the atmosphere of dread and uncertainty overwhelming.

When his squadron moved north into Iraq, Mr. Lindley remained behind on guard duty.

Many combat veterans acquire PTSD from seeing too much action; Mr. Lindley saw very little.

He suffered, in part, from knowing others faced death while he remained safe.

“I feel guilty because there’s

The calling Following his discharge from the Marines, Mr. Lindley worked as a technician for burglar and fire alarms. The next year, a pastor told him about a job at a funeral home, and Mr. Lindley discovered his calling.

These days, he arrives at Columbia by 7 a.m., walks past the hearse and through the casket showroom, gleaming with polished cherry and mahogany. He hangs a U.S. flag from the front porch.

On embalming days, he carefully lines up his instruments on a white towel spread on a stainless-steel cart: scissors, needles, forceps, hemostat clamps, aneurysm hooks.

He removes a body from the refrigerator, checking the name on the ankle tag. He elevates the cadaver on blocks, bathes it and glues or stitches the eyes and mouth closed. He shaves stubble from men’s faces and adds rouge to women’s.

He opens the femoral artery at the groin and injects embalming fluid, drawing excess out of the jugular vein. The solitary ritual of embalming a

“He was like my brother.”

Mr. Scattareggia was going through a divorce, and struggling to hang onto a good job, Mr. Lindley said. They discussed the possibility that Mr. Scattareggia would move to Seattle.

Mr. Lindley didn’t realize his friend was desperate.

In January, Mr. Scattareggia pulled his Nissan into a dirt lot in Surprise, Ariz., put a rifle to his head and pulled the trigger, police said.

The news sent Mr. Lindley into a tailspin of guilt and remorse. “I couldn’t be there to help him,” he said.

His friend’s suicide became an unexpected turning point.

Shortly after, Mr. Lindley began caring for deceased veterans and shedding some of the guilt he had carried for more than a decade.

“Every time I’m helping one of these guys,” he said, “it’s like I was helping my buddy.”

The remains of four veterans received this fall by service members at Tahoma National Cemetery.

At Tahoma, a military guard awaited Mr. Lindley’s arrival at a ceremonial shelter: two Army soldiers, two Marines, two sailors and two airmen, a pair for each deceased veteran.

Bob Walker, a volunteer from Elks Lodge 2143, conducted a brief service. “One by one,” he said, “our comrades leave us.”

A rifle team fired three rounds.

The flag teams unfurled, then refolded, the flags. There were no family members present, so Mr. Lindley had arranged for strangers, including staff from the Medical Examiner’s Office,

to receive the folded flags.

A Marine in dress blues knelt before Bill Barbour, a county medicolegal investigator, and presented him with Mr. Stallone’s flag. The Marine expressed thanks “on behalf of the president of the United States, the commandant of the Marine Corps, and a grateful nation.”

Retired teacher Bernie Moskowitz, an Army veteran in a maroon beret and well-shined black boots, blew taps on a wellshined bugle. “There’s no one here for them,” Mr. Moskowitz said. “We’re here for them.”

Mr. Lindley stood by the hearse, holding a stiff salute.

Later, Mr. Lindley drove to Tahoma’s columbarium, walls of vaults behind a stand of maples with leaves tinged an autumnred. A technician unscrewed four face plates and slipped the veterans’ urns inside.

The staff checked and rechecked to make sure each veteran was in the right niche, matching the names on adjacent vaults to cemetery records.

“This is where they belong,” Mr. Lindley said. “This is where their brothers and sisters are.”

Afterward, Mr. Lindley visited his grandfather’s granite headstone. In a corner of his mind lurked a fear that, one day, he will be one of those vets who dies alone, unable to cope with life after wartime.

If that happens, he said, he hopes some mortician will make sure he is laid to rest at Tahoma.

“I wouldn’t want to be forgotten about,” Mr. Lindley said.

“That’s a terrible thing to think about, that I might be forgotten.”

produced.

The president’s limousine is issued a plate with the number 1 and the vice president gets number 2, making them the most valuable in collector circles. The rarest plates—from Roosevelt’s 1930s inaugurations—can sell for $4,000 to $12,000.

“This is considered the hardest collection to do,” said Bill Tuli, a Phoenix engineer and license-plate collector who completed his inaugural set last month. “And most of us collect weird things.” He also saves copies of Mad Magazine and vintage guitars.

There are just a couple dozen people who have complete sets of inaugural plates, said Andrew Pang, a collector from Arlington, Va., who helps others find rare plates using his website, licensepl8s.com. Mr. Pang said he has mixed emotions about the Trump transition skipping the plate tradition.

“It’s unfortunate that Mr. Trump is breaking with tradition, because his inaugural plates probably would have been highly collectible, very classy and one of the most tremendous designs in presidential history,” said Ryan Williams, a Republican political consultant who has plates issued to Reagan, George H.W. Bush and Dan Quayle hanging on the wall of his Washington office.

To some inaugural-plate collectors, it has been a long and slow decline for the hobby. In the old days, the general public could purchase replica inaugural plates to use on private vehicles for up to three months after a president’s swearing-in.

That tradition ended after George W. Bush’s 2001 inauguration because of security concerns following the Sept. 11, 2001, terror attacks.

“They just lost their appeal to many of us because they’re really just souvenirs now,”

said Mike Naughton, a Manhattan, Ill., attorney who is a member of the Automobile License Plate Collectors Association Hall of Fame. “Still, it’s a shame to lose.”

Mr. Gauthier, 73 years old, says he has spent recent weeks lobbying contacts with access to Trump transition officials in an effort to get them to create a Jan. 20 plate. It hasn’t worked.

To design, print and deliver enough plates for the Trump inaugural parade would take at least three to four days, leaving the inaugural committee until the beginning of next week if they elect to make America’s plates again. Mr. Gauthier also held out hope that whoever is inaugurated in 2021 restores the tradition.

“I’m a license-plate guy,” Mr. Gauthier said. “After 80-plus years of doing it every four years, I just think it’s something that they should continue to do.”

James Lindley suffered from knowing others faced death while he stayed safe. a lot of Marines who saw combat, saw their friends die, things that are very, very traumatic,” he said.

As his enlistment ended in 2004, Mr. Lindley found himself in a spot similar to his grandfather’s—hurt by his war experience and unable to talk about it.

Mr. Lindley slipped into depression. He didn’t leave the house for a month. He stopped going to restaurants. He stopped going to movies and supermarkets. He stopped inviting people into his home. He let high-school friendships wither.

His first marriage fell apart, and he lost contact with his son.

“It’s kind of a Catch-22,” he said. “If they don’t use anything then I don’t have to figure out how to find one of those. But the flip side is then I don’t have one of them in my collection.”

For Hoover’s 1929 inauguration, vehicles used a commemorative 3x6-inch index card in the windshield. Since then the

License plates from Roosevelt’s 1930s inaugurations sell for up to $12,000. only inauguration that didn’t produce special plates was in 1945, when there was no inaugural parade due to World War II austerity measures.

Four years ago, President Barack Obama’s inauguration organizers had plates made, but didn’t use them in the parade.

body calms him.

“It’s an environment where I have total control of everything that is happening,” Mr. Lindley said. “I really don’t understand why I need to be in control. It makes me feel very peaceful.

It’s a happy, quiet place for me.”

The formaldehyde burns his lungs and waters his eyes. Yet Mr. Lindley refuses to wear a respirator. He tried it and found it triggered memories of gas masks and the claustrophobic fear of dying.

That delicate equilibrium— unease in the world, serenity in the embalming room—was upended early this year.

Mr. Lindley’s one friendship was with Stephen Scattareggia, a buddy from his Marine squadron who moved to Arizona after the service. The men spent hours playing online videogames and talking over their headsets.

“We were in each other’s ear every day of our lives since the Marine Corps,” Mr. Lindley said.

Many aficionados complained to Andrew Ballard, the Obama inaugural committee’s director of transportation, who was responsible for ordering the special plates.

“We wound up giving them to staff and folks as souvenirs,” said Mr. Ballard, who has consulted on special plates for five of the last six inaugurations.

“You have to look for the screw marks to make sure they weren’t really used.”

Days after Mr. Obama’s 2013 inauguration, the unused plates showed up on eBay. The online auction site offers an array of plates from past inaugurals: One issued to Joe Biden in 2009 was listed at $1,499 before being marked down last week to $1,049. A motorcycle plate from Bill Clinton’s first inauguration with “scratches and light marks around the boltholes” was listed for $399. A plate from Ronald Reagan’s second inauguration with faded paint was listed for $69.95.

At rest

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A10 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* ***

SPORTS HALL OF FAME

Baseball’s Not-So-Secret Ballot

Ken Griffey Jr. wasn’t a unanimous choice for the Hall of Fame. Many now want transparent voting. run the Hall of Fame Tracker, a spreadsheet that compiles every public ballot in real time.

That has transformed a once-simple announcement into a two-month season of fierce campaigning, wonky statistical analysis and furious social-media mudslinging, all as the results come slowly into focus. Already, more than 45% of the ballots have been made public; in 2014, only a third of voters revealed their ballots before the announcement.

Thibodaux’s efforts and increased participation efforts by the eligible voters from the Baseball Writers’ Association of America indicate that Raines and former Houston Astros first baseman Jeff Bagwell are very likely headed to Cooperstown. Hoffman, catcher Ivan Rodriguez and outfielder Vladimir Guerrero re-

main in the running.

But while Thibodaux’s exit poll has certainly livened the conversation, it has also raised questions about the integrity of the vote.

“Identifying how each person voted is actually in violation of principles of democratic elections,” said Jon Krosnick, a professor of communication, psychology and political science at Stanford University.

It seems clear that a shift toward open balloting is the way of the future. In December, the BBWAA voted to mandate that all ballots be revealed after the results announcement starting in 2018. No longer, for example, could the three writers who didn’t vote for Griffey last year remain anonymous.

But the real-time vote could be contorting the result. Currently, voters can release their ballots at any

point—even before everybody has submitted their votes. This year, more than a third of the voting had already been revealed on the day ballots were due.

Voters can now watch Thibodaux’s spreadsheet, evaluate the reactions and then make their choices. No Wall

It seems clear that a shift toward open balloting is the way of the future.

Street Journal reporters are eligible to vote.

Costas Panagopoulos, a political science professor at Fordham University, said voters could fall victim to social desirability bias, which says that survey respondents tend to make selections that will be viewed favorably by others. That’s one reason why Panagopoulos says that “secret balloting might be advantageous.”

“If what we’re trying to do is elicit from people their true preferences, the only way to get at that is by excluding any external influences,” he said.

While so-called “strategic voting” isn’t a new concept, the rise of early results data has made it easier for people to partake in it.

Two years ago, a writer, Mike Berardino of the St. Paul Pioneer Press, waited until the final days of ballot-

ing before voting to ensure that Martinez and Randy Johnson would receive enough support. He explained in a blog post that, after seeing Martinez and Johnson would almost certainly be elected in, he declined to vote for them, choosing instead to use two of his allotted spots on more unheralded players.

Other voters have said they have used the data before casting a vote for a minor candidate, not wanting that player to receive less than the required 5% to stay on the ballot.

“It’s an information shortcut that enables them to make speedy decisions,” Panagopoulos said of Thibodaux’s data. “The basic point is, are people going to use the information? Yes.” Social media plays a significant role in this: On the one hand, Krosnick said, attention-seeking voters could intentionally submit an unorthodox ballot to attract visibility. On the other hand, others might vote against their beliefs to avoid attacks.

Jack O’Connell, the BBWAA’s secretary/treasurer, says he knows of at least two writers who have stopped voting because of social-media outrage.

“I find it disturbing,” O’Connell said.

Thibodaux says he doesn’t post the Twitter handle of voters when revealing a ballot because “the responses are so vitriolic all the time.”

Ultimately, he doesn’t believe “there are very many voters who let the prospect of being yelled at on Twitter influence them.”

Raines, on the ballot for the 10th and final time, has already received a vote from at least 25 people who didn’t vote for him last year. Thibodaux attributes the flip to an embrace of analytics that highlight Raines’s greatness as an outfielder over 23 seasons with the Montreal Expos, Chicago White Sox and others.

Jeff Idelson, the president of the Hall of Fame, said he is confident that voters take their responsibility seriously, and the early ballot counting only “extends and expands the conversation.”

It also keeps the Hall of Fame in the news throughout the winter.

“To be dominating the sports pages in December and January speaks to the passion of Hall of Fame voting,” Idelson said.

THE COUNT

WHOLE LOT OF WATT There is a sure thing in the NFL this weekend, and it’s not that the New England Patriots will beat the Houston Texans. It’s that J.J. Watt will steal the show in that game— even though he isn’t actually playing.

But that didn’t stop ESPN’s cameras from flashing to Watt on 20 separate occasions in Houston’s win last week, according to The Count’s video review of the game.

They showed him vigorously clapping. And casually talking to his teammates. And simply milling around.

Watt’s eagerness to celebrate landed him on screen after pretty much every big play. He rewarded teammates with high-fives and hugs after each of the Texans’ three interceptions in their win over the Raiders. He was also name-checked or shown after two of Houston’s three sacks.

ESPN’s Sean McDonough and Jon Gruden didn’t even need the excuse of Watt being on the screen to talk about him. They brought him up on their own four separate times. And on seven occasions, they praised the Texans’ performance in spite of missing Watt for most of the season.

—Andrew Beaton

Max Wattage

Based on a WSJ analysis of the ESPN broadcast, how often J.J. Watt was shown—and/or discussed— against Oakland. #

Total times Watt shown Watt clapping Watt chatting Watt congratulating Watt standing around Total discussions of Watt by announcers

20 6 4 5 5

BOB LEVEY/GETTY IMAGES

BASEBALL’S CORNER of the internet is not happy with Randy Miller, a veteran journalist who has covered more than 2,000 games. The reason: He doesn’t think that Tim Raines merits induction into the sport’s Hall of Fame.

Miller, now a New York Yankees beat writer for NJ Advance Media, is one of the more than 400 baseball writers eligible to vote on candidates for the Hall, and counts himself part of a growing movement that favors increased transparency in the annual election. So even though this year’s results won’t be released until Wednesday, he unveiled his ballot online last week, contributing to an informal and public exit poll that offers a glimpse at who will comprise the Hall’s Class of 2017.

The absence of a vote for Raines, one of this year’s favorites for induction, brought a furious response.

One person on Twitter called it “downright nauseating.”

Another wondered if Miller had “ever seen a baseball game in his life.” A third wrote that picking closers Trevor Hoffman and Billy Wagner over Raines “should be punishable by death.”

“We should be held accountable,” Miller said. “How do you not vote for Ken Griffey, Pedro Martinez, Tom Seaver? There are people who didn’t vote for them.

They should have their name on it.”

The increasingly public nature of the Hall of Fame vote is in large part thanks to Ryan Thibodaux, a 35year-old Athletics fan in Oakland who has inadvertently changed the Hall voting process. For the past four years, Thibodaux has

JIM MCISAAC/GETTY IMAGES

BY JARED DIAMOND

11

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | A11

* * * *

By John Steele Gordon

F

or all their noise and news dominance, presidential elections typically don’t change the country all that much. That isn’t a bad thing but a sign of how strong American democracy is. It rarely veers far from the center, where successful policy usually lies. But on rare occasions, deep historical currents and extraordinary political talents produce an entirely new order. It happened in the presidential elections of 1828, 1860, 1896, 1932—and, quite probably, 2016.

Denied the presidency in 1824 by what he called a “corrupt bargain” in the House of Representatives, Tennessee’s Andrew Jackson swept to a landslide four years later. He was the first president from west of the Appalachians— indeed, the first from anywhere other than Virginia or Massachusetts. Born dirt-poor, Jackson was also the first president to rise to affluence solely by his own effort.

Seldom does a presidential election mark a permanent shift. The last time it happened was 1932.

It soon became clear that the country had entered a new political era. “Jacksonian democracy” moved the locus of power sharply down the socioeconomic scale.

Soon most states repealed property requirements for voting, a first step toward universal suffrage.

Jackson created the modern Democratic Party, and the intense opposition to his policies coalesced into the Whig Party, establishing the two-party norm that prevails to this day. No wonder the great 19th-century American historian George Bancroft considered Jackson the last of the Founding Fathers.

The next great shift came with Abraham Lincoln. By the 1850s, slavery had become the dominant issue in American politics. The Republican Party, founded in 1854 as an expressly abolitionist party, grew rapidly as the Whigs collapsed. When Lincoln, the Republican nominee, won the presidency in 1860, the Union quickly came apart. South Carolina seceded barely a month after the election.

Six more states were gone by Feb. 1, 1861, with a month still to go before Lincoln’s March 4 inauguration.

It would take the greatest war in American history to reunite the country. By the time the Civil War was over, the nation had been transformed. The South, impoverished and politically crippled,

would be effectively a Third World country inside a First World one for 100 years. The North, with its rapidly expanding industry and growing population, was politically dominant. More than half the antebellum presidents had been Southern. In the century after the war ended, only two Southerners were elected to the White House: Woodrow Wilson, a Virginia native who made his career in New Jersey, and Texas’ Lyndon B. Johnson.

Presidential elections in the decades after the Civil War tended to be close. Grover Cleveland barely beat James G. Blaine in 1884. Four years later, Cleveland earned a popular-vote plurality while losing to Benjamin Harrison. In an 1892 rematch, Cleveland narrowly beat Harrison, becoming the only president to serve nonconsecutive terms.

But William McKinley’s decisive victory in 1896 marked the dawn of an era of Republican dominance that lasted more than a generation. McKinley ran on a platform of “Sound Money, Protection, and Prosperity,” a doctrine that suited the interests of the nation’s fastrising affluent classes. His opponent, the Democratic nominee William Jennings Bryan, was one of the great orators of American politics. Bryan railed against the gold standard and called for an inflationary monetary policy, which would have benefited debtors, including most farmers in the West and South.

McKinley dominated the Northeast and Upper Midwest and exceeded Harrison’s 1892 vote total by two million. Although he was assassinated in 1901, his political legacy was durable. Between 1896 to 1932, Republicans controlled the Senate for all but six years, and the House for all but 10. The GOP lost the White House only when Theodore Roosevelt split the party in 1912, giving Woodrow Wilson victory with only 41.8% of the popular vote.

D

emocrats regained political dominance thanks to the Great Depression and the remarkable political talents of Franklin D. Roosevelt. In 1928 the Republican presidential nominee, Herbert Hoover, carried 40 of the 48 states and enjoyed large Republican congressional majorities.

Four years later, Hoover lost 42 states to FDR. The Democrats also took large congressional majorities, which allowed them to greatly expand the reach and power of the federal government, increasing taxes sharply on the rich and running budget deficits to pay for popular new programs such as Social Security.

Over the next 48 years only two Republicans were able to capture the White House: Dwight Eisenhower, a national hero, and Richard Nixon, who won by a narrow

EVERETT COLLECTION HISTORICAL/ALAMY STOCK PHOTO

OPINION Trump May Herald a New Political Order

Andrew Jackson takes the Oath of Office, March 4, 1829. margin after the Democrats had torn themselves apart over the Vietnam War. Between 1932 and 1980, the GOP controlled both houses of Congress for a total of only four years.

But by the 1970s the liberalism that had powered the New Deal and the Great Society had succumbed to one of the basic rules of political science: Movements tend to evolve toward the extreme.

The struggle for civil rights had been decisively won in the 1960s, but liberals kept fighting that war, deepening racial divides with identity politics. Though union membership had been sliding for years, out-of-date laws kept labor politically powerful. The federal bureaucracy metastasized, as program after program was added with little overall planning. Many government offices, such as the Environmental Protection Agency, were captured by Democratic constituencies.

Liberal policies were increasingly tailored to the interests of a political elite, not the country as a whole. The people noticed. Jimmy Carter came out of nowhere to capture the 1976 Democratic nomination, promising to clean up Washington. He failed, but Ronald Reagan, touting his own outsidethe-Beltway bona fides, proved the most consequential president since FDR, both at home and abroad.

Because Reagan was always restrained by a solidly Democratic House, he was not as transformative a figure as Jackson, Lincoln, McKinley or FDR. But he did have a lasting effect. The next Democratic president, Bill Clinton, ran as a centrist. When voters rejected his liberal policies in 1994 by electing the first Republican Congress in 40 years, he bent with the political winds. He declared in 1996 that “the era of big government is over.” He compromised with lawmakers to reform welfare and

produce the first budget surpluses in nearly 30 years.

But it didn’t last. Congressional Republicans became more interested in their own re-election campaigns than in fiscal discipline.

Liberal social-engineering housing policies produced a housing bubble and a banking crisis. Then came the presidential election of 2008, the only one in history held amid a financial panic. A Republican candidate perceived as unsteady lost to a young, charismatic Democrat.

Barack Obama took office with strong Democratic majorities in both houses of Congress. He pushed through a very liberal, and very unpopular, agenda. The Obama years have proved a disaster for Democrats. They lost the House in 2010 and the Senate in 2014, both tidal-wave elections.

Republicans now control most governorships and state legislatures as well.

S

o does Donald Trump’s stunning election herald something permanent—a shift akin to those brought by Jackson, Lincoln, McKinley and FDR? That’s a fair bet, considering the GOP gains that preceded it. True, Mr. Trump did not win a plurality of the electorate. But Hillary Clinton’s popular-vote margin of 2.9 million was built on an extremely narrow base. Mrs. Clinton won only in coastal cities, academic enclaves and very poor areas such as the Mississippi Delta and the Alabama Black Belt. Subtract her margins in a mere five counties—the New York City boroughs, save Staten Island, and Los Angeles County—and she lost the popular vote in the remainder of the nation by more than 500,000.

Mr. Trump capitalized effectively on the Democratic Party’s alienation of white working-class voters, sometimes dismissed as

“deplorables” or denizens of “flyover country.” That allowed him to carry Michigan, Pennsylvania and Wisconsin, states where no Republican had prevailed since the 1980s. Whereas in 2012 Mitt Romney carried Brown County, Wis., which includes Green Bay, by 1.8 percentage points, Mr. Trump’s margin was 10.7 points. The GOP advantage in nearby rural Marinette County swung even more dramatically, from 3.5 points for Mr. Romney to 33 for Mr. Trump.

That was more than enough to make up for Mr. Trump’s relative weakness in affluent Republican suburbs like Waukesha County, near Milwaukee, where Mr. Trump’s margin was 7.8 points narrower than Mr. Romney’s.

The Obama years showed liberalism to be exhausted, its ideas out of date and its advocates living in an imagined past. The Democratic Party has never been so weak, or so old. The top three Democrats in the House are all at least 76. The average age of their GOP counterparts is 49. The Republicans’ Senate majority allowed them to delay the appointment of a successor to the late Justice Antonin Scalia, ensuring that the Supreme Court will not tip to a liberal majority. There are more than 100 vacancies on lower federal courts waiting to be filled.

Most important, no new president, at least since Jackson, has owed so little to the political establishment. Mr. Trump was elected explicitly to change the self-serving ways of Washington.

That greatly increases his freedom of action. His cabinet picks signal profound change, the likelihood of lower taxes and a regulatory environment more friendly to business. Mr. Trump also has a gift for communicating directly with the people and cutting out the oblivious media, long a part of the problem.

To bring permanent change, Mr. Trump needs policies that succeed on the ground, not merely in theory. Faster growth and rising incomes are always rewarded at the ballot box. If the presidentelect makes good on his economic promises, skeptical Republicans in places like Waukesha County may come home in 2020.

But continued outreach to minority communities is also crucial.

Mr. Trump has promised to address the problems of inner cities, which he accuses the Democrats of ignoring for decades. And at one rally last fall, he was handed a rainbow flag, a symbol of gay rights. He smiled broadly and held it aloft as the audience cheered.

This is not your father’s Republican Party.

Mr. Gordon is author of “An Empire of Wealth: The Epic History of American Economic Power” (HarperCollins, 2004).

A New Arkansas Supermajority to Take On Government Bloat Little Rock, Ark. Democrats here are becoming an endangered species. The day after Donald Trump’s sweeping victory, state Rep. CROSS COUNTRY Jeff Wardlaw, a Democrat re-elected

By Greg to a third term, anKaza nounced he would switch parties. Another three-term Democrat, state Rep. David Hillman, followed only weeks later. Then two-term Rep. Joe Jett hopped across the aisle in early December.

These defections give the GOP a veto-proof House supermajority, 76 of the chamber’s 100 seats. Not that vetoes are much of a threat: In only a handful of years, the state’s

Three Democrats defected last year after the election.

The Clintons would hardly recognize the place. politics have turned entirely red.

The governor, Asa Hutchinson, is a Republican. So is the state Senate, as well as Arkansas’s entire delegation to Washington. Bill Clinton would hardly recognize the place.

So what has the GOP been doing with its newfound power? For one thing, trying to shore up state finances in advance of the next downturn. After the 2008 financial crisis, unemployment in Arkansas hit 8.4%. Yet the state government escaped the worst, thanks in part to a fiscal stabilization act passed in 1945, which sorts spending into three categories: essential; expansions to existing programs; and new programs. When revenue falls,

the last two can be restricted.

Today unemployment is at or slightly under 4%, the lowest rate in decades. But no one assumes the good times will last forever. When Arkansas faced a fiscal shortfall after the 2001 recession, legislators temporarily raised taxes. There has been progress since then. Republicans cut the income tax slightly in 2015, and some would like to reduce rates again in 2017 to increase competitiveness with neighboring Texas and Tennessee. But they also don’t want to wind up backtracking if revenues turn south.

The model of efficiency is business. A little-known fact is that many of Arkansas’s largest public companies were started during recessions. Sam Walton, the founder of Wal-Mart, began running his first shop in 1945, and the company went public in 1970, during another recession. Murphy Oil traces its roots to the Panic of 1907. Tyson Foods grew out of the Great Depression. The retailer William Dillard opened his first store in the 1937-38 recession, and the trucker J.B. Hunt developed his business plan during the 1960-61 downturn.

Entrepreneurs are optimists by nature, and they understand thrift, efficiency and the time value of money. But the outlook that has been more historically evident in Arkansas government is what folks down here might term “gravy train on biscuit wheels.”

The Arkansas Efficiency Project aims to change that. The effort, organized by my think tank, the Arkansas Policy Foundation, and championed by Gov. Hutchinson, has been looking for cost savings to prepare the state government for the next inevitable downturn.

Since being announced last year,

the project has identified 184 efficiencies and made 60 recommendations. For instance, administrative functions have been consolidated in the Agriculture Department, and some tasks at the Community Corrections Department have been privatized. A report we commissioned from PricewaterhouseCoopers noted $312 million in outstanding tax debt that the state has already deemed collectible. One big victory was privatizing in-home health-care workers, which the governor’s office says reduced state payroll by 2,000.

Gov. Hutchinson can enact some recommendations by executive action. His state hiring freeze, put in

place last year, has whittled another 1,161 employees from the payroll, according to his office. But others ideas—such as revising the funding formulas for education programs that have expanded beyond their original remit—will require the legislature. Progress so far has been solid, but there’s always more that can be done to change the culture. Although department heads say they support “efficiency,” only four state agencies use the word in their mission statements.

One strength is Arkansas’s strong private sector. The Walton Family Foundation supports policy research, such as the Department of Education Reform at the University of Arkansas. Murphy Oil funds

the El Dorado Promise, a $50 million college scholarship fund for local public school graduates. Philanthropy has also helped get charter schools off the ground. Today, there are 52 charters statewide teaching nearly 20,000 students.

The challenge for Arkansas isn’t partisanship. It’s keeping Republicans focused and reforming fast enough to beat the clock. After seven years of economic expansion, according to the National Bureau of Economic Research, the next drop could be dead ahead—and Little Rock wants to be prepared.

Mr. Kaza is the executive director of the Arkansas Policy Foundation.

Notable & Quotable: Why Orwell Wrote George Orwell in “Why I Write,” an essay published in 1946: What I have most wanted to do throughout the past ten years is to make political writing into an art.

My starting point is always a feeling of partisanship, a sense of injustice.

When I sit down to write a book, I do not say to myself, ‘I am going to produce a work of art’. I write it because there is some lie that I want to expose, some fact to which I want to draw attention, and my initial concern is to get a hearing. But I could not do the work of writing a book, or even a long magazine article, if it were not also an aesthetic experience. Anyone who cares to examine my work will see that even when it is downright propaganda it contains much that a full-time politician would consider irrelevant. I am not able, and do not want, completely to abandon the world view that I acquired in childhood. So long as I

remain alive and well I shall continue to feel strongly about prose style, to love the surface of the earth, and to take a pleasure in solid objects and scraps of useless information. It is no use trying to suppress that side of myself. . . .

In one form or another this problem comes up again. The problem of language is subtler and would take too long to discuss. I will only say that of late years I have tried to write less picturesquely and more exactly. In any case I find that by the time you have perfected any style of writing, you have always outgrown it. Animal Farm was the first book in which I tried, with full consciousness of what I was doing, to fuse political purpose and artistic purpose into one whole. I have not written a novel for seven years, but I hope to write another fairly soon. It is bound to be a failure, every book is a failure, but I do know with some clarity what kind of book I want to write.

Looking back through the last page or two, I see that I have made it appear as though my motives in writing were wholly public-spirited.

I don’t want to leave that as the final impression. All writers are vain, selfish, and lazy, and at the very bottom of their motives there lies a mystery. Writing a book is a horrible, exhausting struggle, like a long bout of some painful illness. One would never undertake such a thing if one were not driven on by some demon whom one can neither resist nor understand. For all one knows that demon is simply the same instinct that makes a baby squall for attention. And yet it is also true that one can write nothing readable unless one constantly struggles to efface one’s own personality. Good prose is like a windowpane. I cannot say with certainty which of my motives are the strongest, but I know which of them deserve to be followed.

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THE WALL STREET JOURNAL.

OPINION

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REVIEW & OUTLOOK

LETTERS TO THE EDITOR

Who’s Afraid of Betsy DeVos?

Speaking the Truth From Power, but Lovingly

emocrats are searching for a cabinet average score 60% more proficient on state tests nominee to defeat, and it’s telling that than kids attending the city’s traditional public progressive enemy number one is schools. Eighteen of the top 25 schools in Detroit Betsy DeVos. Donald Trump’s are charters while 23 of the Trump’s Education choice to run the Education bottom 25 are traditional Department has committed schools. nominee is the top the unpardonable sin of deTwo studies from StanDemocratic target. voting much of her fortune to ford’s Center for Research on helping poor kids escape failEducation Outcomes (2013, ing public schools.

2015) found that students atProgressives and their media allies have tending Michigan charters gained on average spent the last week roughing up Mrs. DeVos in an additional two months of learning every preparation for her Senate confirmation hearing year over their traditional school counteron Tuesday, which will feature the charms of parts. Charter school students in Detroit Elizabeth Warren and Bernie Sanders. Liberals gained three months. claim that Mrs. DeVos, wife of former Amway Eighty-percent of Michigan charters utilize a president Dick DeVos, is unqualified to lead the private education service provider. Yet only about Education Department because she’s never been half are operated by a for-profit entity, and almost a teacher. all of these are mom-and-pop businesses run by Yet the same crowd howls that bankers Michigan residents. While unions have fought to shouldn’t be regulating banks. Which is it? Man- keep failing public schools open, Mrs. DeVos aging a bureaucracy isn’t like running a class- backed a 2009 law allowing the state to close pubroom, though both require a steely resolve. Most lic schools—charters included—that scored in the Education secretaries have been former teachers bottom 5% of the state for three consecutive years. or school superintendents—not that student test Only seven of the 54 schools with two strikes in scores are better for it. the past two years were charters.

Perhaps Mrs. DeVos’s most important qualifiThe real reason unions fear Mrs. DeVos is cation is that she has the courage of her convic- that she’s a rare reformer who has defeated tions. Progressives are willing to brook billion- them politically. Prior to being tapped by Mr. aires who use their wealth to expand Trump, she chaired the American Federation for government or augment their political influence. Children (AFC), which has helped elect hunHyatt heiress Penny Pritzker, whose family is a dreds of legislators across the country who supmajor Democratic patron, served as President port private school choice. Last year AFC and Obama’s Commerce secretary. But a conserva- its affiliate groups spent $5 million on elections tive who’s dedicated her private fortune to liber- compared to the teachers unions’ $138 million. ating poor kids trapped in lousy public schools? Yet 108 of the 121 candidates AFC supported The horror! won their races.

The DeVoses have donated tens of millions of AFC has built a broad coalition that includes dollars to charity including a children’s hospital black and Latino Democrats, undercutting the in Michigan and an international art competition union conceit that vouchers are a GOP plot to dein Grand Rapids. They’ve also given to Christian stroy public schools. In 2000 four states had priorganizations, which the left cites as evidence vate-school choice programs with 29,000 kids. of concealed bigotry. Yet education has been Today, 25 states have vouchers, tax-credit scholtheir main philanthropic cause. arships or education-savings accounts benefitDuring the 1990s, they patronized a private- ting more than 400,000 students. school scholarship fund for low-income families Even if they can’t defeat Mrs. DeVos’s nomiand championed Michigan’s first charter school nation, unions hope to leave her so politically law. In 2000 they helped bankroll a voucher ini- weakened that she won’t be able to implement tiative, which was defeated by a union blitz. The her agenda. The character assassinations—e.g., DeVoses then turned to expanding charters, that she supports anti-gay groups—are primarwhich have become Exhibit A in the progressive ily intended to turn the bureaucracy and public campaign against her. Unions claim Michigan against her. charters are inferior to the state’s public schools Yet their nasty campaign reeks of political and that 80% are run for profit. desperation. You know progressives have lost These claims are spurious. Detroit charters their moral bearings when they save their most are low performing—only 19% of students are ferocious assault for a women who wants to proproficient in English—but they’re better than vide poor children with the education they need the alternative. Charter students in Detroit on to succeed in America.

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The First Votes for ObamaCare Repeal

he press is full of ObamaCare stories Mr. Paul and his libertarian House apostles about disarray among Republicans, and oppose the resolution because it doesn’t balance there has been some of that, but maybe the budget, but entitlement spending is the main this untidiness is a normal driver of federal debt. RepubliRand Paul votes with part of governing. Congress cans are trying to engineer the ended the week by voting to rare feat of cashing out an enDemocrats against start an orderly repeal and retitlement. Mr. Paul isn’t letting entitlement reform. place process, without much the perfect be the enemy of the internal division. good so much as the dumb and On Thursday the Senate nonsensical. passed 51-48 a budget resolution that allows a Not a single Democrat voted with the GOP, simple majority to roll back much of the entitle- which suggests the leadership is right that twoment later this year while the details of a reform track reconciliation is the only realistic repeal alternative are debated. Rand Paul of Kentucky and replace strategy. Republicans have a lot of was the only GOP nay. The House followed on work to do to nurture a replace consensus, but Friday, 227-198, and merely nine Republicans the votes show they might have more success joined the Democratic resistance. than their detractors expect.

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The Climate Intelligence Agency

emocrats must have concluded that cli- slow and the planet began to heal. mate change will defeat Donald At least Rex Tillerson would have some relaTrump’s nominees, or perhaps the sub- tion to climate policy at the State Department, ject’s omnipresence at the such as the Paris carbon deal.

Democratic CO2 confirmation hearings merely But Oregon Senator Jeff Merkreflects their own political ley wanted to know about the obsessions reach preoccupations, or their rich mountain pine beetle, an invanew comic heights. donors’. Whatever the reason, sive forest species he claimed no job is too irrelevant for was expanding as a result of global warming to intrude. warming.

Perhaps you think Mr. Trump named Mike Mr. Tillerson called warming a “serious risk” Pompeo to the Central Intelligence Agency be- and added that “the facts on the ground are indiscause of his spycraft expertise, or to defeat ter- putable in terms of what’s happening with ror groups. Kamala Harris has other ideas. The drought, disease, uh, insects, all the things you new California Senator burned her question cite,” though he also mentioned “uncertainty” time on Thursday cross-examining Mr. Pompeo about the scientific models and the economic cost about “the scientific consensus” on global of a response. That was too much for Mr. Merkley, warming. who said he’d oppose the nomination.

Citing NASA and “most of the leading scienThe real meltdown is scheduled for next tific organizations world-wide,” Ms. Harris re- week, when Scott Pruitt will be grilled about peatedly asked about the human contribution leading the Environmental Protection Agency. to climate trends. “Do you have any reason to Washington’s Patty Murray has called the Okladoubt NASA’s findings?” Mr. Pompeo replied homa Attorney General “a climate change dethat “I, frankly, as the director of CIA would nier,” New Hampshire’s Jeanne Shaheen claimed prefer today not to get into the details of cli- the nomination was “a capitulation to pollutmate debate and science. It just seems—my role ers,” and Bernie Sanders said on CNN that “it is going to be so different.” is rather ironic that Mr. Trump has nominated When Ms. Harris kept pressing, Mr. Pompeo somebody to head the EPA who doesn’t much dryly replied, “I do know the agency’s role. Its believe in environmental protection.” role is to collect foreign intelligence.”

Mr. Pruitt has a scrappy legal background, Meanwhile, in a nine-page questionnaire to including a constitutional challenge to the EPA’s Ben Carson, who is being sent to the Depart- abusive Clean Power Plan, but the real irony is ment of Housing and Urban Development, Eliza- that his environmental record, as traditionally beth Warren wanted to learn what the doctor understood, is strong. As AG, he negotiated a thought about “C02 and other greenhouse gas state compact with Arkansas to clean up phosemissions,” because extreme weather like phorous pollution in the Illinois River, lobbied flooding poses “a significant risk to public for the federal 2016 Frank Lautenberg Chemical housing.”

Safety Act, and sued poultry farms that didn’t “What other actions will you take to adapt control waste runoff as well as oil companies to or prevent climate change while you are with leaking underground storage tanks.

HUD Secretary?” Ms. Warren wondered.

That these achievements no longer count as Maybe Dr. Carson’s tenure will be the mo- environmental protection shows how far the ment when the rise of the oceans began to progressive carbon panic has gone.

As a licensed psychologist, parenting specialist and mother of three successful teens, I feel compelled to respond to “The Wrong Way to Speak to Children” (Review, Jan. 7). Naturally, parents should always treat children with respect and kindness, but parents and children aren’t on an equal footing when it comes to decision-making in a family. Children look to parents for guidance and the appropriate way to navigate the world.

Asking for opinions, opening dialogue and communicating lovingly all have a place in every family with small kids, but I take issue with the idea that we should be taking a survey of our children’s feelings every time they are required to do something. A 4-year-old isn’t developmentally prepared to understand the need for wearing a raincoat. To engage in a drawn-out discussion each time a child says “no” creates the perception that he is in charge of the family. It also has the potential for a child to feel overwhelmed if he feels he has to make daily decisions regarding his health and well-being. This is a parent’s job. Gently and softly telling a child, “We wear our raincoats because it’s raining” and moving forward creates a sense of security and care. This isn’t about obedience but about caring for a child who isn’t mentally, physically or emotionally

equipped to make major decisions independent of a parent’s input. A good parent balances a child’s autonomy and feelings with a level of structure, guidance and empathy for other’s ideas.

JOAN MUNSON, PH.D. Boulder, Colo.

Humans are selfish by design. Successful social interaction is learned and requires consideration, cooperation and courtesy. Many of society’s ills, from teen violence to children’s inability to cope with work and even politicians’ inability to cooperate with each other for the greater good, have been influenced by a mind-set of permissiveness and ultimate individuality, where the skills, reputation, opinions and experience of others count for far less than personal beliefs. Parents have the duty to set boundaries to their children’s behavior and teach them right from wrong.

LARRY KAUFMANN Annapolis, Md. You use “parentspeak” for 18 years and then wonder why your offspring can’t or won’t exercise independent thinking or stand up for themselves.

Keep up the good work fighting for the independence of children.

LUCRETIA LEE Bruceton Mills, W.V.

Facing a Dangerous, Rapidly Changing World Greg Ip’s insightful essay (“We Are Not the World,” Review, Jan. 7) presents an intriguing lens through which to view emerging global ideologies.

This bipolar contrast brings into focus the fundamental foreign-policy differences of the Obama administration and the Trump administration without the distractions of postelection bile and bombast.

President Obama’s globalism resulted in a risk-averse foreign policy exemplified by the failure to achieve a peace settlement in Syria. Conversely, the emergent nationalism of the Trump administration is part of a global populist movement espoused by a growing number of world leaders. The inherent motivation of pure nationalists is to pursue the interests of their nation-states without regard for the interests of other nations. We have only to consider the recent cyber invasion by Russia to see that nationalist aggression can take many forms.

As the Trump administration reframes foreign policy, it must recognize that global nationalist leaders will reach out in friendship only when it suits their own interests and aims. The incoming administration also would be wise to realize that, while the foreign policy of the Obama administration fell short in many ways, its unquestioned commitment to international alliances like NATO may well have been responsible for eight years of relative peace. Perhaps the best way ahead is a delicate balance of nationalism and globalism.

BRIG. GEN. PAUL GREGORY SMITH, USA (RET.) Ashburnham, Mass.

trade, economics and finance that link diverse parts of the globe. Cellphones, social media and ubiquitous communications have helped to erode geographic boundaries.

These forces have created four new horsemen of the Apocalypse that threaten society. The first and most dangerous is failed and failing government. We see this from Afghanistan to Zimbabwe with Brussels and Washington in between. The other three horsemen are economic despair, disparity and dislocation; violent extremist ideology largely in the form of a perversion of Islam; and environmental catastrophe. Indeed, the rise of nationalism is more a function of these riders than a simple reaction against globalization.

HARLAN ULLMAN Washington Countries like Denmark and Luxembourg trade most of their output.

Others (most of Africa, for instance). trade little. Which countries are richer? Where is unemployment worse?

GEORGE NEWMAN Montclair, N.J.

Resistance Is Futile, in Light Of the 2018 Senate Election

Regarding Sen. Chuck Schumer’s preplanned opposition to a Trump Supreme Court nominee (“‘We Will Resist,’” Review & Outlook, Jan. 5): Mull the irony that many liberals wanted the Electoral College to not vote for Donald Trump given the unprecedented circumstance of, well, Mr. Trump. Yet when RepubliThe main forces shaping the world cans followed the general rule that today combine the diffusion of power nominees usually aren’t confirmed and globalization accelerated by the in presidential election years (call information revolution. It is not only it the Biden Rule after Joe Biden who suggested such in the early ’90s), especially the end of a president’s term, Democrats had a conniption. This in light of the fact that much of the country soured on Regarding your editorial “Haters the liberal agenda of Democrats Gonna Hate” (Jan. 6): How can anyand the likely agenda of President one accept the concept that so-called Obama’s Supreme Court nominee “hate crimes” deserve extra punishMerrick Garland. ment? Historically, we only punish Let Sen. Schumer oppose for the people for what they do, not what sake of opposing, as Democrats have they think. It’s only a small step far more senators up for re-election from punishing people for what they in 2018 than Republicans. This will think to what they might say about have the dual virtue of forcing the what they think. electorate to reaffirm the more modRICHARD MARKHAM erate agenda it voted for this past Lakeland, Fla. November and perhaps create a supermajority for Republicans that is You ask, “would it be any imakin to what the Democrats had in provement if Dylann Roof had mur2009-10. dered those innocent black churchOh, and Sen. Schumer, to borrow goers in South Carolina for their from the president, “elections have money?” The answer is “yes.” In that consequences.” case, people other than the churchGREG DEBSKI Howell, N.J. goers wouldn’t have been victimized.

When Roof chose his victims according to race, he not only directly victimized them through murder, he indirectly victimized all black people, who must wonder if they are next.

The “hate-crime” label doesn’t THE WALL STREET JOURNAL “diminish the actual crime.” It is a separate actual crime, whose victims are all members of a group of people with the same characteristic as those chosen for the direct crime due to that characteristic.

MARK MCALLISTER Johnston, Iowa

Hate-Crime Laws, Mind Police and Social Cohesion

Pepper ...

And Salt

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Saturday/Sunday, January 14 - 15, 2017 | A13

OPINION

The Trump Cabinet’s Good Opening Week

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By Peggy Noonan

his week was hail and farewell. Thursday morning William Cohen, the former Republican senator who became Bill Clinton’s secretary of defense, introduced and endorsed Gen. James N. Mattis, Donald Trump’s nominee as defense chief, to the Senate Armed Services Committee. “He has the nickname of ‘Mad Dog’—it’s a misnomer,” Mr. Cohen said. “It should be Braveheart.”

Sam Nunn, a Democratic former senator, also praised the nominee’s character and credentials. Gen. Mattis is that vanishingly rare thing in Washington, a figure of almost universal respect. His confirmation is expected.

And a reminder of Barack Obama as an inspirer of young Americans.

The day before, in his confirmation hearings at the Foreign Relations Committee, Secretary of Statedesignate Rex Tillerson came across as distinguished, calm, informed. In intense questioning, Sen. Marco Rubio was strangely, yippily hostile. “Is Vladimir Putin a war criminal?” Mr. Rubio pressed. “I would not use that term,” Mr. Tillerson replied, blandly, but with an expression that allowed you to imagine a thought bubble: You can mess with me, son, but it won’t end well for you. In the end, Mr. Rubio did Mr. Tillerson no harm and himself no good. A few hours in, with his accent and cool demeanor, I realized who Mr. Tillerson was reminding me of: former Secretary of State James Baker.

Sen. Jeff Sessions, the nominee for attorney general, was cuffed

ZUMA PRESS

DECLARATIONS

about in his sessions but emerged relatively unscathed. Rep. Mike Pompeo, Mr. Trump’s pick to head the CIA, was up Thursday. He was creditable, composed, informed. Also that day Gen. John Kelly, nominee to head the Department of Homeland Security, drew bipartisan support.

He was introduced by former Defense Secretary Robert Gates, who said: “I would trust him with my life.”

It was interesting that all of Mr. Trump’s nominees made clear they would have no problem disagreeing with the incoming president on issues such as immigration, torture and Russia.

Gen. Mattis said, bluntly, that he’s “all for engagement,” but we must recognize “there’s a de- Secretary of creasing number of areas where we can engage cooperatively, and an increasing number of areas where we’re going to have to confront Russia.” The nominees’ independence may reassure some of the president-elect’s foes without putting off most of his supporters: They’d expect a degree of dissent among professionals and will want him surrounded by respectful, independent operators.

Such hearings are televised in part so interested citizens can form their own opinions. They likely received a generally positive impression.

President Obama meanwhile delivered his farewell address, at a semi-raucous and sentimental rally in Chicago. There was nothing terrible in it and little strikingly good. In the tradition of presidential warnings, he spoke of the need to work harder for economic opportunity and racial harmony. We are too divided, sort ourselves out and away

estrangement. He saw this all as the other side’s fault. In his dealings with the Hill he was often imperious, sometimes a snot. He allowed executive agencies such as the IRS to ruin their public reputations and stonewall scandal after scandal. His most famous words as president came not in formal addresses but extemporaneous misjudgments— “red line,” ISIS as the “jayvee team”—plus an attempt to mislead: “If you like your plan, you can keep your plan.”

He left his party weaker, in terms of public offices held, than at any point since the 1920s.

He spent an unprecedented amount of time campaigning against, State-nominee Rex Tillerson testifies, Jan. 11. and assailing in the bitterest terms, his succesfrom each other, and “keep talking sor. Donald Trump was “uniquely past each other.” We are increas- unqualified,” “temperamentally uningly stuck in cultural and intellec- fit.” America chose him anyway. tual enclaves, and choose whatever They were choosing Mr. Obama’s exnews we’re inclined to believe. All act opposite, just as in choosing Sen. true.

Obama in 2008 they went with the Mr. Obama’s has not been a suc- opposite of Mr. Bush. When they cessful presidency. In foreign affairs want the opposite of what you are, his two terms, added to George W. they are not registering approval.

Bush’s two terms, produced 16 years Yet Mr. Obama’s approval ratings of unsuccess—an entire generation. are at a respectable 55%. I think I Richard Haass, head of the Council know some of why. on Foreign Relations, put it gently in I was speaking at a college down conversation this week: Mr. Bush South this past fall. The students tried to do too much, which was un- were impressive, kindly, racially realistic; Mr. Obama attempted too mixed, almost all working-class. An little, its own, perhaps more conse- administrator said proudly that most quential unrealism. were the first in their families to atIn domestic matters he put all his tend college. In my talk I compared chips on health care and bullied it the past five presidents, noting one through without a single Republican thing each could have learned, to his vote, leaving his party fully owning benefit, from his predecessor. But it and the other with no investment the evening ran late, and wanting to in saving it. His relationship with sum up quickly I gave Mr. Obama Congress started out at impasse, short shrift, not affording him the proceeded to fraught and ended in same degree of regard and respect

I’d given his predecessors. The students had been listening and laughing, but here the room turned cool.

I knew I’d been unjust but couldn’t turn it around; it was too late to amend. I knew I had disappointed these students, especially, but not only, young black men. They were too polite to say anything, but I felt it.

Afterward I thought about it a lot.

I had seen that night something I’d missed—what Obama was to the young, especially those who came from families of stress and need. If you were 12 when Obama was elected, and grew up with a mother or grandmother and that’s it, and that mother or grandmother maybe didn’t always treat you so well, and you had no one around to teach you, on a daily basis, how to be a man, show you what a man does, and you saw him acting with careful, conscious dignity, with his intact family and his personal poise—maybe that just meant a lot. Maybe it gave you hints. And maybe when you saw him celebrating those who in whatever way are different, or feel different, that meant something too.

Barack Obama had dignity in his personal sphere. He carried himself with confidence, like someone with self-respect. You gathered, as you watched over eight years, that he did what a man does, taking care of his family, his wife and children. He didn’t talk about it but he modeled it, represented it in his actions. This, in an increasingly less parented country, was valuable. I didn’t give enough weight to it until after that night at the college.

I put it here to remind everyone, mostly myself, that you can strongly oppose someone politically, really think you’re seeing bad things there, but have a responsibility to see and note what good there is.

We’re losing that ability, in our enclaves.

He has said that he’s touched a rising generation. To some significant degree I have a feeling that will probably prove true.

The ‘Deplorables’ Aren’t So Bad, Once You Get to Know Us

By Lou Weiss

S

ince the shocking presidential election result, many people have approached me with quizzical expressions, some with tears in their eyes. I live among the adorables, but I think like a deplorable.

To them I am that most exotic creature—a conservative Republican— and they really seem to want to understand the mind-set of those who voted for Donald Trump (or, like me, weren’t heartbroken when he won).

Some have felt the need to hug me as if to embrace that half of America from which they feel estranged.

I realize that as the excuses pile up for Hillary Clinton’s loss this curiosity might be fleeting, so I try my best to teach my curious grasshoppers. And since we conservatives are the biggest givers, I want to share with other adorable readers what may motivate the actions of a deplorable.

Even though we may not have met, I’m happy to be that token guy you can call “my conservative friend Lou.”

You might begin by considering the effect of your nomenclature.

Calling people racists, homophobes, bigots and other such labels doesn’t endear the name caller to the recipient. Try descriptors like traditional and hardworking. Better. It’s amazing, I know, but people don’t like being reduced to a negative cultural stereotype.

Now we are ready for a field trip.

Rather than going on that “fact finding” trip to Cuba or Venezuela, how about a trip to Iowa or Nebraska? Too remote? Might I suggest Pittsburgh, my beloved hometown, where a five-minute drive in any direction from city limits puts you in Trump country? You can take a day trip out and return to your comfy high-rise hotel bed by evening. We even have hipster redoubts populated with Brooklyn expats. The beards, the flannel shirts and the abundance of heritage pork dishes will make you feel like you are in Appalachia even before you leave the city.

Try to find some subjects that you might discuss should you ever meet a Trump voter. Familiarize yourself with Big 12 football. You have a buddy who went to Wisconsin and a couple of friends from Michigan, so knowing the Big Ten is no big deal, but knowing that

If you’ve lost your bearings in Trump’s America, your conservative friend can help you find them.

Oklahoma State is the home of the Cowboys will earn you major points.

When you travel, attend a church service at least one denomination to the right of your regular church.

Maybe watch or rewatch “American Sniper” rather than your usual mumblecore or IFC fare. Also don’t expect people you meet to commiserate over “Hamilton” ticket prices

or know what cisgender means.

You may not know this, but deplorables are all around you—they might even be working in your own home. Deplorables know how to fix things. See that guy over there working on your leaky faucet? Ask him about his politics. The nurse in your doctor’s office? Ask her, too. Many of the people who make your life so exquisite probably disagree with you, so unless you are handy with a double-box wrench, don’t be too quick to label them Neanderthals. They know your liberal politics by the material posted on your fridge but are way too tolerant to confront you on the topic. They are also too polite to walk out on you. Car trouble? Don’t even go there.

Also: No more boycotts. Have you ever tried Chick-fil-A? Delicious!

When I go to the hospital I don’t ask whether my room is on a wing donated by George Soros or David Koch. I once had a liberal customer who so abhorred my views on Israel that he passed on the excellent value

that I was offering on a wool Berber broadloom carpet. He went elsewhere for a hideous synthetic knockoff.

Deplorables are people too. Their kids make them proud and drive them crazy. They eat kielbasa and even kale. Some laugh at “Seinfeld” and some like opera. Some are atheists and some go to church. Please understand that—just like you—deplorables lead lives that are mysterious and wonderful, tragic and joyful, and invariably complex.

Sometimes they have different ideas about how to solve the problems that afflict our society, but that doesn’t make them evil. As the signs at the rallies said: Love conquers hate. So show a little love to your deplorable sisters and brothers and remember that in the Midwest, while love can conquer hate, the Steelers almost always conquer the Browns.

Mr. Weiss is a carpet salesman in Pittsburgh.

If Russia Has Info on Trump, Does It Make a Difference?

Around the time the Soviet Union was breaking up and, simultaneously, the U.S. was fixing to push Saddam out of Kuwait, BUSINESS faxed papers flew WORLD around the world

By Holman W. offering for sale imJenkins, Jr. possible quantities of imaginary commodities—Iraqi dinars, Soviet “white rubles,” claims on huge stockpiles of Soviet aluminum, vast supplies of atropine (supposedly in demand to protect armies of the U.N. coalition against Iraqi nerve gas).

The easiest thing in the world to

manufacture is an impressive document. Sellers intimated CIA connections. Here was a patriotic opportunity to get rich overnight amid world-shaking geopolitical upsets.

Reporters sniffed around. There was no shortage of people to ring up.

Thick dossiers were assembled.

It all sounded just plausible enough that certain gullible bankers in Europe (that we know of) got themselves and their institutions in trouble chasing such phony opportunities, flaunted by the sort of people who today would specialize in Nigerian email scams and computer identity theft.

Which brings us to the media and law-enforcement agencies chasing a

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widely circulated document full of claims from unnamed Russian sources about Donald Trump.

The chasers say they’ve been trying for months to verify the claims but can’t. Proving a negative is hard, of course, so the claims are passed along as “unverified” rather than what they probably are, false. And don’t be overly impressed that a “former British intelligence agent” is said to be behind the document. Former intelligence agents aren’t necessarily better informed, better connected or less likely to make fools of themselves than reporters, accountants, lawyers and other professionals plying their information-seeking trades.

In one way, though, it’s more interesting to assume the claims are true. The information supposedly gives the Kremlin leverage over President Trump. Does it?

Mr. Trump has lived, in some ways, an indecorous life. It’s not unreasonable to suppose that some people have been witness to Trump indiscretions and might like to tell their tales.

It’s not impossible that foreign intelligence agencies would have sought such information. It’s not impossible (as the circulated documents suggest) that Russian intelligence agents set a honey trap during his Miss Universe visit to Moscow. It’s not impossible that Russia dangled funding in front of Mr. Trump for his business ventures, though, interestingly, the document says he didn’t bite. Is that because the document’s author knows this is one negative that can be proved? For every Trump asset, after all, there is a liability, whose provenance can be nailed down.

So what? Even if true, would such

information really give the Kremlin leverage?

We live in a world where all major governments steal each other’s secrets. According to leaks, the U.S. government can record 100% of a target country’s phone calls and retain them for a month. It allegedly tapped Angela Merkel’s cellphone.

The Chinese broke into the U.S. Office of Personnel Management and

We live in a MAD world—mutual assured destruction—with respect to leadership secrets. stole personal information of 22 million past and present U.S. government employees and applicants for security clearances. North Korea ransacked Sony for basically every digital secret it had. Early in the Ukraine crisis, Russia leaked a recording of a phone call between two high-ranking U.S. diplomats. Russia stole the emails of John Podesta and the DNC and shared them with the world.

Dutch investigators were able to quote numerous intercepts related to Russia’s supply of the missile battery that shot down a Malaysia Airlines flight over Ukraine. Norway and Sweden are reported to be particular experts at spying on Russian internet traffic for the benefit of Western intelligence agencies.

The amount of information in the hands of the major intelligence agencies is vast and most of it is not shared. The same U.S. agencies so

eager to lay out their wares on Russia’s DNC hack are the keepers of extensive files on other Putin-era crimes that would be severely embarrassing to Vladimir Putin if exposed.

A version of MAD—mutual assured destruction—prevails among the world’s top-country politicians.

Even an unseemly episode in a Moscow hotel room (if it happened) would not give the Kremlin leverage over Mr. Trump anything like the leverage Mr. Trump has over Russia just by virtue of being president of the United States.

Which brings us to Russia’s election meddling. There is unquestionably a large partisan element in a Democratic administration’s enthusiasm for this subject. But there’s another part: Some of what’s going on in the U.S. is our government frantically signaling to Mr. Putin that, by attracting so much attention to himself and Russian intelligence efforts, he has crossed into MAD territory.

It’s not entirely irrelevant that some of us in the media and Congress are using the occasion to renew demands that the CIA open its files on various Russian murders and outrages that, if revealed, would certainly endanger Mr. Putin’s ability to conduct business with Western governments if not his hold on power.

It was the brazenness and contemptuousness of the Putin effort that the U.S. needs to respond to. We live in a MAD world when it comes to hacking and related information-age vandalism. The sooner the U.S. gets back to setting red lines that other major powers are bound to respect, the better.

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ERIC THAYER/BLOOMBERG NEWS

MARKETS DIGEST B6 | WEEKEND INVESTOR B7 | HEARD ON THE STREET B10

LABOR HAIER HUNTS FOR COST CUTS B4 © 2017 Dow Jones & Company. All Rights Reserved.

DJIA 19885.73 g 5.27 0.03%

NASDAQ 5574.12 À 0.5%

MARKETS THE WEEK THAT WAS B10 * * * * * * * *

THE WALL STREET JOURNAL.

STOXX 600 365.94 À 0.95%

10-YR. TREAS. g 6/32 , yield 2.380%

Saturday/Sunday, January 14 - 15, 2017 | B1 OIL $52.37 g $0.64

GOLD $1,195.30 g $3.60

U.S. Seizes Vast Aluminum Trove U.S. customs officials have seized $25 million worth of aluminum linked to a Chinese billionaire accused of stockpiling the metal across the world, according to people familiar with the matter.

The move is the most potent action yet by federal authorities probing whether U.S. companies connected to Chinese aluminum magnate Liu

Should You Put Bitcoin In an IRA?

One of the world’s hottest assets is also the newest way to invest for retirement. But it carries the most old-fashioned risk of all: losing buckets of money in the blink of an eye.

Since last June, Bitcoin IRA, a firm based in Sherman Oaks, Calif., THE has been ofINTELLIGENT fering indiINVESTOR vidual reBY JASON tirement ZWEIG accounts that can provide direct ownership interests in bitcoin, the cryptocurrency.

The firm’s timing couldn’t be better: Bitcoin’s market value shot up 123% in 2016, and it nearly hit a record less than two weeks ago.

Had you put $5,000 in bitcoin at the end of 2011, you would have had just under $1.2 million at the currency’s peak closing price earlier this month.

Edmund C. Moy, who was director of the U.S. Mint from 2006 to 2011, is Bitcoin IRA’s chief strategist. “VirtuPlease see BITCOIN page B7

How do you trade a Donald Trump tweet?

Investors are grappling with the president-elect’s highly visible but capricious social-media presence, which is upending well-worn Wall Street formulas for assessing the likelihood of certain developments and baking them into market prices.

Mr. Trump’s tweets are challenging large firms to funnel his off-the-cuff remarks into trades in an age of increasing automation, while forcing banks to revisit restrictions on social-media use. At the same time, the tweets are creating openings for smaller investors to make money on abrupt market moves.

At Mizuho Financial Group Inc. in New York, foreign-exchange trader Daniel Riveira said last year he began discussing with co-workers plans to get the Japanese financial firm to lift its longtime ban on Twitter after Mr. Trump’s threats to revise trade policies with Mexico prompted a sharp decline in the peso.

This month, Mizuho granted read-only access for its U.S. banking staff, according to a spokesman. The firm said it lifted the ban to give traders greater access to market-moving information, not just to

cords, court documents and people familiar with the company. The aluminum had been detained by U.S. customs authorities since September before this week’s seizure. The metal will be moved from the Port of Long Beach in California to an undisclosed location, a person familiar with the matter said.

Homeland Security is conducting laboratory tests on the aluminum to determine whether the metal is of a type restricted under U.S. law, according to federal court documents. It is unclear how long testing will take.

In a federal court petition filed in California, Perfectus

Value of Chinese aluminum ‘extrusion*’ exports to the U.S.

has asked a judge to force Homeland Security to lift the order, calling it unlawful and imposed without explanation.

The company denies that it failed to pay proper import duties on aluminum it imported from China or that it was involved in improper stockpiling of aluminum.

A spokeswoman for China Zhongwang Holdings Ltd., a Chinese aluminum giant controlled by Mr. Liu, said neither the company nor Mr. Liu has any connection to Perfectus.

Lawyers representing Perfectus in the case declined to comment.

The Commerce Department Please see METAL page B2

Marathon Interrogation for Samsung Heir in Corruption Case

$900 million 800 700 600 500 400 300

2015 $47.5M

200 100 0 2006

’10

’15

Note: U.S. filed antidumping charges against Chinese companies in 2010 *Shaped products such as panels and piping Source: Global Trade Information Services

THE WALL STREET JOURNAL.

Moody’s Settles Ratings Inquiry

BY ARUNA VISWANATHA AND JOSH BECKERMAN

OVERTIME: Lee Jae-yong, the third-generation leader of South Korea’s Samsung conglomerate, didn’t answer reporters as he left the special prosecutor’s office in Seoul on Friday morning, after 22 hours of questioning over his alleged role in a crisis gripping the highest levels of the country’s government and business. Prosecutors are weighing whether to seek an arrest warrant. B3

Traders Take On Trump’s Tweets

BY CHRIS DIETERICH AND CHELSEY DULANEY

ing that they are being undercut by cheap Chinese metal being sold into the U.S. illegally. A massive stockpile of aluminum that has crisscrossed the world and depressed the price of some aluminum products was part of the scheme, according to people familiar with the companies involved in the shipments of aluminum.

Hundreds of shipping containers of aluminum seized this week by Homeland Security are owned by Perfectus Aluminum Inc., a California company founded by Mr. Liu’s son and now run by one of Mr. Liu’s close business associates, according to corporate re-

YEN 114.50

Metal on the Move

YONHAP/NEWSCOM/ZUMA PRESS

BY SCOTT PATTERSON

Zhongtian illegally avoided punitive tariffs by routing their metal through other countries.

The Wall Street Journal in October reported that Homeland Security and the Justice Department were investigating whether the companies committed criminal or civil violations that could include smuggling, conspiracy and wire fraud. Homeland Security agents have questioned former employees of companies associated with Mr. Liu, according to people familiar with the investigation.

The aluminum has become another flashpoint in American-Chinese trade relations, with U.S. executives complain-

Trump’s tweets.

“We never thought we needed it before,” said Mr. Riveira, who is a managing director at Mizuho. Now, “the people who have Twitter are going to have an advantage over those who don’t.”

The president-elect has tweeted more than 300 times since the election. Excluding media companies, he has called out publicly traded companies by name or product in 18 separate tweets, including Boeing Inc., Ford Motor Co. and United Technologies Corp. unit Carrier Corp.

Big companies haven’t been the only targets. Shares of Rexnord Corp., a maker of bearings and gears with a market capitalization of $2.2 billion, fell as much as 2.5% last month on the first trading day after Mr. Trump took aim at the Milwaukee company’s plans to move jobs to Mexico.

Trading volume was double the daily average.

“I used to ask our analysts what was happening with the S&P, or what Janet Yellen said,” said Larry Adam, chief investment officer for the Americas at Deutsche Bank Wealth Management. “Now I also ask if there are updates I need to be aware of” on Twitter.

So far, the trading on Trump’s tweets seems skewed Please see TWEETS page B2

France Sets Renault Probe

BY NICK KOSTOV

PARIS—French prosecutors have opened an investigation into Renault SA on suspicion of emissions fraud, blunting the auto maker’s efforts to distance itself from the scandal that engulfed German rival Volkswagen AG. The Paris prosecutors office said it has assigned three magistrates to probe whether the French auto maker engaged in fraudulent practices that made its diesel-powered vehicles “dangerous to human and animal health.”

Renault on Friday denied using so-called defeat devices—trickery used by Volkswagen—to cheat on emissions tests and said it complies with French and European rules.

The prosecutors’ action,

which builds on an investigation carried out last year, marks the first time a French auto maker has faced a criminal probe in the mushrooming emissions scandal. The probe doesn’t target Japan’s Nissan Motor Co., which has a development, procurement and production alliance with Renault.

Last year, France’s antifraud authority began an emissions investigation into Renault and other car makers after Volkswagen admitted using defeat devices to dupe laboratory emissions tests. The antifraud authority searched Renault’s headquarters; an engineering facility in Lardy, south of Paris; and a technical center in Guyancourt, west of the French capital. The regulators discovered abnormal levels of nitrous oxide from some of Re-

LOIC VENANCE/AGENCE FRANCE-PRESSE/GETTY IMAGES

Move escalates probe of companies linked to Chinese billionaire; a flashpoint for trade

EURO $1.0645

Renault denied using so-called defeat devices in its cars.

nault’s diesel engines, and in November passed those findings on to state prosecutors to determine whether any action should be taken.

During the past week, Volkswagen formally admitted to criminal wrongdoing in its diesel-emissions cheating in the U.S. and agreed to pay $4.3 billion in criminal and civil fines. Separately, on Thursday, U.S. regulators accused Fiat Chrysler Automobiles NV of using software on some of its diesel vehicles that allowed them to skirt pollution restrictions, an accusation the company has denied.

The flurry of moves against automobile makers has shaken the industry and suggests systemic weakness in the European Union’s regulatory regime. The recent action also offers ammunition to the criticism that national governments protect their local industrial champions at the expense of the 28-nation bloc’s rules and citizens’ welfare.

Even after admitting to rigging engines, Volkswagen hasn’t been charged with any wrongdoing in the EU and insists its actions weren’t illegal there. The EU’s executive arm called the U.S. allegations against Fiat Chrysler “worrying,” but has launched no action of its own, saying member states had refused to grant it the authority to do so.

—William Boston and Eric Sylvers contributed to this article.

Moody’s Corp. said Friday it agreed to pay $864 million to the Justice Department and several states in connection with bond grades it issued before the 2008 housing collapse.

The agreement marks what is expected to be among the last in a series of deals in the waning days of President Barack Obama’s administration closing investigations into the financial crisis.

Late last month, the Justice Department struck multibillion-dollar settlements with Deutsche Bank AG and Credit Suisse Group AG over toxic securities and separately filed a lawsuit against Barclays PLC alleging misconduct in billions of dollars in mortgage securities sold in the mid-2000s.

Barclays said it would seek to dismiss the case and said it believed the claims were “disconnected from the facts.”

Moody’s had said in October it expected the Justice Department to sue the company in connection with its mortgage-bond ratings, but many companies—and government officials—have scrambled to close out long-running investigations in advance of President-elect Donald Trump taking office next week.

“Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession,” said Bill Baer, a top Justice Department official.

Moody’s said in a statement it determined the agreement removed “significant legacy legal risk” and avoided “costs and uncertainty associated with continued investigations and litigation.” The firm said it “stands behind” the integrity of its ratings and methodologies.

The firm said in the agreement that it, at times, deviated from methodologies it said it would use to rate mortgage bonds and used a more lenient standard on some complicated bonds than it had disclosed. Moody’s didn’t admit in the settlement that the conduct violated the law.

“Moody’s stands behind the integrity of its ratings, methodologies and processes, and the settlement contains no finding of any violation of law, nor any admission of liability,” it said.

The settlement includes a $437.5 million civil penalty to the Justice Department and $426.3 million to 21 states and the District of Columbia.

INDEX Bond Tables................................... B7 Cash Prices..................................... B8 Currencies........................................ B6 Dividend News............................ B8 Exchange-Traded Funds...... B8 Futures.............................................. B7

Heard on the Street.............. B10 Markets Digest............................ B6 Money Rates................................. B9 Mutual Funds............................... B8 New Highs & Lows................... B8 Stock Listings........................... B4,5 Weekend Investor..................... B7

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B2 | Saturday/Sunday, January 14 - 15, 2017

* *******

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.

C CAN Capital.................B3 Chrysler.......................B1 Citadel Securities.......B9 Citigroup ..................... A2

D

H-I

R

Haier Group.................B4 Hull Investments........B2 Iridium Communs.......B3

Realization Services...B3 Renault........................B1 Rexnord.......................B1 Rubicon Project...........B3

J Jefferies Group...........B3 Jet.com........................B4 J.P. Morgan Chase............A1,B2,B10

K Ketchum Trading.........B2 Kraft............................A8

L LG Electronics.............B4 Lockheed Martin.........B3

M

Deutsche Bank............B3

F Fiat Chrysler........B1,B10 Ford Motor.............B1,B2

G General Electric .......... B4

Macy's..................B7,B10 MetLife........................B9 Mizuho Finc’l Group ... B1 Morgan Stanley.....A2,B2

N-0 Nissan Motor..............B1 Odebrecht....................A7

S Samsung Elec........B3,B4 Snap.............................B3 Sony.............................B3 SpaceX ........................ A1

T Takata..........................B3 Toyota Motor..............B2 Twitter ........................ B1

U United Technologies...B1

V Volkswagen...............B10

W Wal-Mart Stores.........B4 Wells Fargo ......... A1,B10 Whirlpool.....................B4

INDEX TO PEOPLE A

Griffin, Kenneth..........B9

Adam, Larry................B1 Ahmed, Zia..................B9 Angilletta, Nicholas..B10 Atkinson, Anthony.....A8

H

N

Harvey, Campbell........B7 Hewson, Marillyn ....... B3 Hirai, Kazuo ................ B3 Hull, Blair....................B2

Nakajima, Hideo ......... B3

B Ban, Shigeru..............C14 Bergland, Harry .......... B7 Bobby, Steve...............B4

C Canavan, John.............B9 Carney, Jerry...............B4 Chikaraishi, Tsuneo .... B3 Chodorow, Adam.........B7

D Daane, J. Dewey.........A8 De Gastines, Jean.....C14 Donofrio, Paul.............A2

F Feinberg, Kenneth ...... B3 Fink, Laurence.............B2 Frederick, Randy.......B10

G Good, Bill.....................B4

I Immelt, Jeff................B4

K Klaw, Bruce.................B2 Kline, Chris..................B7 Kutniak, Stephan......C14

L Lindley, James............A1 Liu, Zhongtian.............B1 Lore, Marc...................B4 Lynton, Michael..........B3

M MacGregor, David ....... B4 Marchionne, Sergio ........................... B1,B10 Mayo, Mike.................A2 Mills, Howard ............. B9 Morris, Jeff.................A2 Moy, Edmund C...........B1

Musk, Elon..................A1

O Olson, Nina ................. B7

P Pascal, Amy ................ B3 Pfau, Wade ................. B7 Pruitt, Scott..............B10

R Redstone, Sumner......B7 Richman, John............A8 Riveira, Daniel ............ B1 Rothman, Tom ............ B3

S Sanders, Kyle..............B2 Shrewsberry, John ...........................A2,B10 Silbermann, Ben ....... C11 Spiegel, Evan .............. B3

T

Lawyers for Las Vegas gambler William “Billy” Walters on Friday moved to dismiss the insider-trading case against him, arguing the government illegally leaked secret information to the press to bolster its investigation.

At the center of the allegation is David Chaves, a Federal Bureau of Investigation agent accused of sharing confidential information about the insider-trading probe in 2014 with journalists from The Wall Street Journal and the New York Times.

The Justice Department’s inspector general’s office has opened a criminal investigation into Mr. Chaves, prosecutors said last month.

Lawyers for Mr. Walters, a legendary sports bettor who pleaded not guilty, said the case against him should be

METAL Continued from the prior page found in December that China Zhongwang was sending metal into the U.S. via other countries to disguise its origin so the company wouldn’t have to pay punitive tariffs of up to 374%.

Those tariffs were imposed in 2010, when the Commerce Department found China Zhongwang was selling metal subsidized by the Chinese government into the U.S. market— a practice called “dumping.”

An aluminum stockpile allegedly amassed by firms owned by people close to Mr. Liu has moved around the world, according to the people familiar with the shipments of the metal. Recently metal had accumulated in Vietnam, shipping records show, where it joined other caches of aluminum to form an even bigger stash representing 14% of global inventory.

Perfectus said in its petition that it had imported the seized aluminum from China from 2012 to 2014 but is now trying to export it to Vietnam after its plan to sell or lease the products failed. Most of the seized aluminum is in the form of pallets, which are made of shaped products welded together and are typically used for transporting heavy cargo.

Perfectus was founded in 2014 by Mr. Liu’s son, Liu Zuopeng. The company is now run by Jacky Cheung, who runs several companies with

BY ERIC SYLVERS

MILAN—Accusations that car maker Fiat Chrysler Automobiles NV cheated on emissions tests open an arduous final stretch for Chief Executive Sergio Marchionne, an industry outsider who had hoped to crown his career with a turnaround of the once-ailing group.

U.S. regulators’ probe throws a wrench into Mr. Marchionne’s bid to complete a restoration of Fiat Chrysler’s fortunes. It most likely erases the already dwindling chances of a mega-merger, which the CEO has sought to secure the future of the frailest of Detroit’s big car makers. And it may scramble the race to succeed him.

After taking the helm of Fiat SpA in 2004, Mr. Marchionne became something of a corporate rock star for saving the Italian car maker from bankruptcy, then engineering the takeover of bankrupt Chrysler LLC five years later.

Now, the emissions allegations could bog down the rest of his tenure and risk clouding his legacy. The 64-year-old executive has promised to retire in early 2019.

On Friday, European Union authorities pressed Italy to respond to German accusations that Fiat Chrysler has cheated on emissions. Also, U.K. officials said they were seeking more information from U.S. regulators about their probe of Fiat Chrysler and from the

Sergio Marchionne has branded the EPA’s claims ‘hogwash.’ auto maker itself.

Regulatory woes had dogged Fiat Chrysler even before the Environmental Protection Agency accused the company of cheating on emissions testing of 104,000 dieselpowered Jeeps and Ram trucks. The U.S. Justice Department and Securities and Exchange Commission are investigating allegations that the car maker artificially inflated sales reports in recent years.

Fiat Chrysler also faces lawsuits over the gear shifter in some of its vehicles, with some owners alleging the company concealed the problem and failed to fix it. The faulty gear shifter has led to the recall of more than one million vehicles and has been implicated in at least one death and numerous injuries.

Such problems have worked against Mr. Marchionne’s bold

efforts to merge Fiat Chrysler with a rival. Hoping to pull off such a deal before retiring, he had openly courted General Motors Co., laying out in a public manifesto the urgent need for the car industry to consolidate. He said Fiat Chrysler would be destined to “mediocrity” without a deal.

But GM refused even to meet with its smaller rival, in part because of Fiat Chrysler’s history of regulatory problems and lingering issues with recalls, people familiar with the situation say. Now, analysts say a tie-up with any rival looks unlikely, in the wake of the EPA allegations.

The investigation’s focus on Jeep and Ram is also troubling for Mr. Marchionne, given the pair make up 90% of Fiat’s operating profit, according to Morgan Stanley. Having failed to restore Fiat’s legacy European

brands and Chrysler, Mr. Marchionne is heavily relying on the duo to reach a net profit goal of about €5 billion ($5.32 billion) in 2018.

Mr. Marchionne said in an interview with Italian daily La Repubblica that he would reach the 2018 financial targets despite the EPA probe.

Now, a possible fine of as much as $4.63 billion—equal to the company’s combined earnings from January 2013 to September 2016—could quash any hope of hitting the financial goals. Some analysts said on Friday they expect a potential fine to be much lower.

The inquiry may also scramble the race to name a successor to Mr. Marchionne, who has said the new CEO will be a company insider. Leading candidates are thought to include Chief Financial Officer Richard Palmer, Jeep and Ram chief Michael Manley, and Alfredo Altavilla, the company’s chief operating officer for Europe, the Middle East and Africa. Until recently, some Fiat Chrysler insiders viewed Mr. Manley as Mr. Marchionne’s most likely replacement, but the EPA probe may now dull his prospects.

Despite the pressure, Mr. Marchionne, who overcame fierce union and government opposition in Italy when he reorganized huge factories there, isn’t likely to go down without a fight. He has branded the EPA’s accusations “hogwash” and said the agency had “blown it out of proportion.”

Tanaka, Shinichi..........B3

W Wise, Jamie................B2

Lawyers Seek Dismissal In Walters Trading Case

BY NICOLE HONG

Fiat Chief Hits New Hurdle

dismissed because of the “outrageousness of the government’s misconduct.” The filing accused the FBI and the U.S. attorney’s office in Manhattan, which is prosecuting the case, of failing to investigate the leaks in 2014 and to put a stop to them.

The filing also said illegal leaks from the government have become “systematic and pervasive,” citing five other cases in which Journal reporters published details about pending investigations during Mr. Chaves’s time as a whitecollar supervisor in the FBI’s New York field office.

The government is scheduled to respond to the filing in two weeks. A spokesman for the U.S. attorney’s office and a spokeswoman for the FBI each declined to comment.

A lawyer for Mr. Chaves didn’t respond to a request for comment. connections to Mr. Liu. Mr. Cheung owns Aluminicaste, a Mexican company that was the subject of a September article by the Journal that detailed connections between the giant stockpile in Mexico and Mr. Liu. Mr. Cheung is also the owner of Global Vietnam Aluminum, which has overseen the creation of a 1.7 millionton stockpile of aluminum extrusions—shaped products such as panels and piping— worth $5 billion in recent years.

Attempts to reach Liu Zuopeng and Mr. Cheung were unsuccessful.

The court records don’t state which company manufactured the aluminum. Shipping records show that a company called Peng Cheng—which later became part of Perfectus in a merger—imported metal from an affiliate of China Zhongwang in 2013 and 2014, according to Panjiva, which tracks shipping records.

Homeland Security had detained another 164 containers of Perfectus’s aluminum, but those containers were released in November following an inspection, according to the company’s petition. The company said Homeland Security hadn’t explained why it released those shipments but continued to detain an additional 552 containers, which Perfectus said hold the same type of aluminum.

China Zhongwang has said the pallets it exported to the U.S. are made of a type of aluminum that isn’t covered by Commerce’s 2010 ruling, which it didn’t contest.

Money Flows to BlackRock Funds

BY SARAH KROUSE

The world’s largest money manager by assets pulled in record new cash in 2016 as investors poured more money into lower-cost index-tracking funds.

BlackRock Inc.’s assets under management rose 11%, to $5.15 trillion, from a year ago, boosted by $202.2 billion in net inflows in 2016, according to an earnings release. The strongest drivers of that new money were institutional investors and its iShares exchange-traded fund unit.

During the fourth quarter, investors pulled $546 million from BlackRock’s actively managed products while investing $88.31 billion into its iShares and indexed funds. BlackRock’s flows reinforce the continuing shift in investor taste for lower-cost funds that track the performance of indexes.

Chief Executive Laurence Fink said investors that sat on the sidelines in the run-up to the U.S. presidential election returned to the market in the final three months of the year.

“Institutions paused and in the fourth quarter, they put a lot of that money to work,” he said in an interview.

While markets have rallied since the election, he said there are “many different forks

Laurence Fink, chief executive of BlackRock in the road,” some of which are very positive and others that aren’t depending on domestic- and foreign-policy decisions made by Presidentelect Donald Trump.

“I’m not euphoric. I’m not bearish. I’m circumspect,” he said, adding, “I’d say right now the market is probably focused more on the positives, less on the negatives.”

Despite the potential for regulatory changes in Washington, the brokers that sell BlackRock’s funds continue to prepare for new rules from the Labor Department that require

brokers to act in the best interest of clients, Mr. Fink said. Mr. Trump’s plans for the rules aren’t known, but some financial-industry observers expect the rules to be delayed or rolled back.

“We have not witnessed any slowdown in the behavior of our distribution partners,” Mr. Fink said.

The rules are expected to push more assets into lowercost exchange-traded funds.

BlackRock executives said Friday that advisers and brokers are building model portfolios comprised of ETFs, which is likely to lead to further asset growth.

“It just shows they are winning the land grab” ahead of the implementation of the Labor Department rules, said Kyle Sanders, an analyst at Edward Jones. BlackRock’s flows were double what Mr. Sanders expected, and he said other publicly traded asset managers are likely to report minimal new flows in the fourth quarter.

Despite the record new money flowing into the firm, many of BlackRock’s stockpickers and managers that use quantitative methods to try to beat the market posted mixed performance numbers at the end of 2016.

More than half of the assets

in the firm’s traditional actively managed stock products underperformed their benchmarks or peers over one year at the end of 2016, up from less than a quarter a year earlier.

Over three years, 38% underperformed, compared with 40% at the same time last year.

Among the firm’s quantitative “scientific active equity” funds, 57% underperformed their benchmark or peer group at the end of the year, up from 35% of those funds at the same time last year. Over three years, 20% underperformed, up from 10% at the end of 2015.

Mr. Fink said European stock performance, including wrong bets on the outcome of the U.K.’s vote to leave the European Union, had weighed on performance figures. Asian shares and dividend products, meanwhile, did well, he said.

BlackRock increased its quarterly dividend to $2.50 from $2.29 and added six million shares to its buyback program. In all, BlackRock reported a profit of $851 million in the fourth quarter, down from $861 million a year prior.

Revenue rose 0.9%, to $2.89 billion. Analysts had projected $2.93 billion in revenue, according to Thomson Reuters.

BlackRock’s shares rose 0.3%, to $379.35.

TWEETS Continued from the prior page toward younger individuals, traders and analysts said. An E*Trade survey earlier this month of more than 900 active investors with at least $10,000 in an online-brokerage account found that three-fifths of those aged 25 to 34 had traded based on a tweet by Mr. Trump.

Among those between 35 and 54, 36% had done so, and among those 55 and over, 20% had.

While many large trading firms increasingly depend on electronic algorithms that can be programmed to buy or sell an instant after an economicdata release or corporate-earnings report, the unscripted nature of Mr. Trump’s tweets poses a challenge.

High-speed trading strategies can quickly identify that a stock was referenced in a tweet. But discerning whether the underlying message is bullish, bearish or indifferent presents a significant programming challenge.

“You have an issue of interpreting through language, that’s the first problem,” said Blair Hull, a pioneer of electronic-trading strategies and founder of Ketchum Trading LLC and Hull Investments LLC. “Experts in linguistics have been working on this for years and still don’t get it right.”

DARIO PIGNATELLI/BLOOMBERG NEWS

Bank of America........A1,B2,B10 Best Buy ................... B10 Bitcoin IRA..................B1 BlackRock....................B2 Boeing ......................... B1

Perfectus Aluminum .. B1

GEOFF ROBINS/AGENCE FRANCE-PRESSE/GETTY IMAGES

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General Motors...........B2 Goldman Sachs....A2,B10

LAURENT GILLIERON/EUROPEAN PRESSPHOTO AGENCY

A Aireon..........................B3 Amazon.com ............. B10 American Int’l Group..B9

Above, a Toyota facility in Thailand. A Trump tweet attacked Toyota’s plan to build a plant in Mexico.

Accordingly, it took four seconds after Mr. Trump’s Jan. 5 tweet attacking a Toyota Motor Co. plan to build a plant in Mexico for the first trade in U.S.-listed shares to hit the tape, according to data from FactSet. That is practically a lifetime for high-speed traders, who blanch at delays in the milliseconds.

Rather than rely on machines to make murky real-time decisions, Mr. Hull said, some of his firm’s trading strategies use analysis of shifts in mood caused by tweets as they slingshot across the internet.

“The trading opportunity in a president who tweets isn’t so much in the immediate tweet as

much as the fact that he’s starting a conversation about an issue,” said Jamie Wise, founder of Buzz Indexes, which creates a benchmark of stocks based on quantitative analysis of comments made across social media.

Banks are in some cases being forced to rethink what has been a chilly relationship with social media. Bruce Klaw, an assistant professor at the University of Denver and former white-collar crime attorney, said recent scandals involving rigging of the London interbank offered rate have led banks to restrict the use of the internet and personal devices while at work.

There is a financial motive

behind the restrictions, as well. “You don’t want your traders who you’re paying a ton of money to be on Twitter all day,” he added.

Many large-bank employees are blocked from visiting Twitter.com while in the office. At some institutions, such as J.P. Morgan Chase & Co. and Morgan Stanley, traders typically use their Bloomberg screens to track tweets.

Bank of America Corp. offers a read-only version of Twitter via its Mercury website that connects traders and clients, according to a person familiar with its trading desk.

—Ben Eisen and Telis Demos contributed to this article.

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | B3

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BUSINESS NEWS

Prosecutors Grill Samsung Heir SEOUL—The heir to South Korea’s biggest business empire emerged from a marathon grilling by prosecutors Friday morning after 22 hours of questioning that included a $5 lunch box and a bowl of noodles.

Lee Jae-yong, the third-generation leader of the Samsung conglomerate, was questioned over his alleged role in a crisis gripping the highest levels of the country’s government and business.

He faces an uncertain weekend. Prosecutors are weighing whether to seek an arrest warrant on bribery and perjury charges for the 48-year-old businessman.

The investigation centers on allegations the company paid bribes in exchange for government backing of the contentious merger of two Samsung affiliates in 2015.

Top Sony Official to Join Snap

BY BEN FRITZ AND GEORGIA WELLS Sony Corp.’s entertainment chief, Michael Lynton, is stepping down to devote his time to the chairmanship of the board of Snap Inc. ahead of its public stock offering planned for later this year.

Mr. Lynton, who along with his wife was one of the earliest investors in Snap, has been on the board of the technology firm best known for its messaging app Snapchat since 2013 and was quietly named its chairman late last year.

Long one of Snap CEO Evan Spiegel’s most trusted advisers, Mr. Lynton is expected to help the company prepare for its IPO as well as help with its content and advertising strategies.

After leaving his current post Feb. 2, Mr. Lynton will serve as co-CEO of Sony Entertainment for six months, alongside Sony Corp. CEO Kazuo Hirai.

The two will supervise Sony’s entertainment assets together while Mr. Hirai searches for a replacement.

Mr. Lynton currently serves as both chief executive of Sony Pictures and Sony Entertainment, which includes the company’s record label and musicpublishing venture. But for most of his 13 years with the Japanese technology giant he has run its film and television studio.

Because the music assets operate more independently, it is likely Mr. Hirai will search for a new executive experienced in the global film and television business.

It isn’t yet known whether they will assume both of Mr. Lynton’s titles or run only Sony Pictures.

The person will need to work with motion picture chairman Tom Rothman to turn around Sony’s struggling movie business and with a team of executives running the television production unit and 150 international channels to keep those faster-growing businesses on track.

TV operations generate the majority of the studio’s profits.

Mr. Lynton’s exit is the latest in a series of changes at Sony Pictures since a massive hack in late 2013 that revealed corporate secrets as tens of thousands of stolen documents and emails, including those of Mr. Lynton, were posted online.

Soon after, Mr. Lynton’s longtime No. 2 and film chief Amy Pascal was ousted. Last year, the head of Sony’s television business was also pushed out amid internal conflicts.

Mr. Lynton, who began his career at Walt Disney Co. and then ran book publisher Penguin Group and America Online’s international businesses before joining Sony in 2004, will focus his time on Snap’s chairmanship as the company is under pressure to convince investors it can evolve from a messaging platform into a content and media powerhouse that could one day exceed its hoped-for $20 billion to $25 billion IPO valuation.

That deal consolidated Mr. Lee’s control of Samsung Electronics Co.; his direct holdings in the company were relatively modest at the time.

Prosecutors have said they will make a decision on whether to charge Mr. Lee, and possibly other Samsung officials, by Sunday.

Mr. Lee, who stepped outside into the frigid January air just before 8 a.m. local time, didn’t respond to questions from reporters as he left the special prosecutor’s office. He took a company car to Samsung’s headquarters in Seoul’s upscale Gangnam neighborhood.

A company spokeswoman said Mr. Lee went directly to the office. She declined to make him available, or to comment further on his plans.

Mr. Lee’s interrogation is the latest development in a sequence of events that has rocked South Korea’s political and corporate elite. President

Park Geun-hye was impeached last month by the National Assembly, the country’s legislature, after being implicated in an influence-peddling scandal involving a longtime confidante, Choi Soon-sil. Prosecutors allege Ms. Choi squeezed South Korea’s business conglomerates, known as chaebols, for donations to fund her lifestyle. In exchange, prosecutors believe the chaebols expected favors. Ms. Choi and Ms. Park have denied wrongdoing.

On Thursday, Mr. Lee arrived at the special prosecutor’s office at 9:30 a.m. wearing a dark suit and a red tie.

He bowed before a sea of television cameras. “We did not show a good side of ourselves in this matter. I am deeply sorry,” he said.

During the hearing, Mr. Lee was interrogated by two prosecutors, according to a spokesman for the special prosecutor’s office. One of the

prosecutors, Han Dong-hoon, has been nicknamed the “chaebol sniper” by local media—an allusion to his role in previous investigations.

Prosecutors released few details about Mr. Lee’s questioning beyond noting that he was given a $5 lunch box and, later, a simple black-bean noodle dish for dinner.

“If the testimony doesn’t match [what we have in our records], we just have to ask more questions,” said the spokesman for the prosecutor’s office. “That’s why the questioning went on for so long.”

In addition to suspected bribery, prosecutors questioned Mr. Lee on suspicion of committing perjury in testimony he gave last month at the National Assembly. On that occasion, Mr. Lee denied having known Ms. Choi and having had any direct involvement in Samsung’s decision to donate funds to entities alleg-

edly tied to Ms. Choi. Mr. Lee and Samsung have declined to comment on those allegations since the testimony.

Since his father was incapacitated by a heart attack in 2014, Mr. Lee has overseen a conglomerate whose interests range from life insurance and residential construction to biologic drugs and theme parks.

More recently, in his role as vice chairman of smartphone maker Samsung Electronics, Mr. Lee has had to deal with the recall of 2.5 million Galaxy Note 7 smartphones since reports of overheating batteries emerged last year.

The political scandal flared shortly after the Note 7 recall, initially training attention on Ms. Choi, Ms. Park’s longtime friend, who prosecutors suspect was influencing political decisions from behind the scenes despite holding no official position.

—Eun-Young Jeong contributed to this article.

BY MIKE SPECTOR

A federal grand jury indicted three former Takata Corp. executives, charging them with conspiring to provide auto makers with misleading test reports on rupture-prone air bags at the center of an unprecedented recall linked to numerous deaths and injuries.

Takata executives Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi face criminal charges for participating in the alleged fraud undertaken at the Japanese automotive supplier for more than a decade, according to an indictment handed up in December and unsealed Friday. The charges are for conspiracy and wire fraud.

The executives, who held senior positions overseeing air bags and engineering at the World-wide Coverage company, are believed to reother satellite Project partners hope to use 66 orbiting side in Japan, said Barbara satellites to provide real-time tracking of planes 2 Satellite sends that information McQuade, U.S. attorney for the over land and water for air-traffic controllers. along the Iridium telecom Eastern District of Michigan. network in orbit.

Authorities plan to work Aireon space-based coverage with officials there to extradite them to the U.S. to face 1 Each charges.

Iridium network sends planes' Planes send their Constantly represents The indictments were unlocation data to Aireon's ground position, airline, flight moving a satellite facility, which relays it to number, speed and sealed as Takata separately air-traffic controllers. other data every pleaded guilty to criminal wire second to Aireon.

3 fraud and agreed to pay $1 billion to resolve a two-year Jus4 tice Department probe of the Earth supplier’s handling of air bags that risk rupturing and spraying shrapnel in vehicle cabins.

Air-traffic controllers The safety problem is linked Oceans and mountainous terrain now are virtually dead zones without to 11 deaths and 184 injuries in ground-based tracking coverage. the U.S. alone.

Source: Aireon Satellite’s reach Stephanie Stamm/THE WALL STREET JOURNAL. “We want auto suppliers to know that if they sell products that are designed to protect consumers, they need to put safety ahead of profits,” Ms. McQuade said. sion during ground-testing tor or customer. Budget con- tional aircraft-tracking rules She said the air bags risked

BY SUSAN CAREY AND ANDY PASZTOR temporarily halted flights. The straints and reluctance by and look for better ways to sending metal projectiles into launch contractor, Elon some airlines to invest in addi- pinpoint the location of the faces of “soccer moms like equipment have downed planes. me.”

A cluster of satellites set to Musk’s Space Exploration tional Corp., or prompted an advisory commitToday, U.S. controllers in launch in the coming days Technologies could move the aviation in- SpaceX, has the green light to tee of the Federal Aviation Ad- Oakland, Calif., are responsidustry closer to overhauling lift off from a launch site near ministration to conduct a cost- ble for a swath of the Pacific Takata pleaded benefit analysis of an Aireon Ocean from the West Coast to the way air-traffic controllers Lompoc, Calif.

Aireon dates back to 2011, contract compared with up- the Philippines. Controllers in guilty to criminal track planes around the when Iridium Communica- grades of existing ground- Canada and Great Britain world. wire fraud and agreed For decades, controllers tions, Inc., a McLean, Va., tele- based services. Preliminary re- share responsibility for busy have used ground-based radar communications-satellite oper- sults are expected next month; North Atlantic routes with to pay $1 billion. to direct planes over land. ator, formed a consortium a decision isn’t likely until counterparts in New York and on Portugal’s Azores Islands.

More recently, they have been with foreign air-navigation later this year.

Until now, the FAA has been Without full visibility, these finding aircraft locations via agencies to find a way to track “Takata deeply regrets the global positioning satellites, or global air traffic from space. focused on rolling out advances and other “oceanic” controlGPS, but they can do so only The idea was to piggyback the of its new land-based satellite lers have to funnel planes circumstances that have led to over land or near the shore. air-traffic control technology surveillance system, which cost onto designated aerial high- this situation and remains There has been no real-time onto Iridium’s replacement $2.7 billion and isn’t expected ways, keeping them well sepa- fully committed to being part to be fully operable until at rated. of the solution,” said Takata ability to track planes in flight constellation of satellites.

Proponents say Aireon’s least 2020. U.S. controllers, “I’m very excited about how Chief Executive Shigehisa over oceans, which cover 71% of the planet, or over remote technology would give pilots among others, have said they this is going to change my Takada, who added the settlegreater flexibility to change are concerned that the U.S. job,” said Neil Collins, a 17- ment would help the compolar regions.

A new satellite-based joint- routes, avoid turbulence and could cede its leadership role to year Canadian controller in pany’s restructuring. He venture called Aireon LLC cut flight times. It would help countries that become early Gander, Newfoundland, who pledged continued cooperation would give controllers full vis- airlines save fuel and reduce Aireon adopters. The FAA could helps direct airplanes over the with regulators and auto makemissions. wait until “10 years from now, North Atlantic. “We will know ers to address recalls. ibility by next year, if all goes greenhouse-gas A Takata spokesman said according to plan, providing And it would allow planes rou- after everyone has started us- exactly where [the planes] the company is cooperating real-time flight information tinely to fly within 15 miles of ing it,” worries Iridium CEO are.”

Currently, if a plane devi- with U.S. authorities’ investifrom planes over both water each other over water, com- Matt Desch. pared with about 80 miles of The Aireon technology has ates from its flight plan, con- gation of the indicted individand land.

The first 10 satellites are separation under current gained currency in the almost trollers must extrapolate uals and declined further comdue to launch into orbit on rules—leading to more traffic three years since the disap- where it is, he said. Most air- ment.

The air bags sparked the Saturday, barring any last- in the air on any given route. pearance of Malaysia Airlines craft emit position reports The U.S., with the busiest Flight 370. That mysterious only every 15 minutes and largest automotive recall in minute hurdles. The launch has been delayed since Sep- airspace, hasn’t signed on yet event helped persuade global while moving at about 500 U.S. history.

Nearly all auto makers are tember, when a booster explo- with Aireon as either an inves- authorities to adopt interna- miles an hour. in the process of recalling 42 million vehicles with nearly 70 million Takata air bags in the U.S. The events surrounding the faulty devices led to litigaLOCKHEED MARTIN Rubicon Project, which went tion, congressional hearings public in 2014 with Morgan Stan- and government investigaDefense Firm’s CEO ley as a lead underwriter, has a tions. market capitalization of about Takata, which faces signifiMeets With Trump $375 million. “We do not comcant financial pressures from Lockheed Martin Corp. Chief ment on inquiries of this kind,” the recalls, agreed to pay a Executive Marillyn Hewson said said a spokesman for the firm. $25 million criminal penalty the company is nearing a deal on —Suzanne Vranica within 30 days and $850 milthe next batch of F-35 combat and Dana Mattioli lion to auto makers currently jets for the U.S. military, followfooting the bill for recalls of ing a meeting with PresidentDEUTSCHE BANK vehicles with the air bags. elect Donald Trump.

The payments to auto makText Messaging “I told him that we are close ers come due five days after to a deal on a new contract that Takata secures a financial Curtailed at Bank reduces the price for the next 90 backer to help it restructure, a Deutsche Bank AG told emaircraft significantly,” Ms. Hewson deal that must be consumployees Friday it was curtailing said Friday after meeting with mated a year from now under Lockheed Martin CEO Marillyn Hewson at Trump Tower on Friday. their use of electronic messaging the agreement’s terms. Takata Mr. Trump in New York. via mobile phones, except on apMr. Trump has singled out the is expected to seek bankruptcy proved systems the bank can F-35 for criticism over its cost larities with loan data and the RUBICON PROJECT protection this year to execute monitor and record. and delays in a series of tweets ouster of three top executives. the deal.

Online-Ad Company In a memo to employees, seand public statements. Pentagon New York-based CAN Capital Takata must also pay $125 officials have said they are conhas brought in restructuring firm million within 30 days for a Weighs Possible Sale nior executives said as of this tinuing efforts to lower its costs. quarter, employees must disable Realization Services Inc. as well compensation fund covering Advertising-automation firm —Doug Cameron as investment bank Jefferies other text-messaging applications harm done by the air bags to Rubicon Project Inc. is exploring on work phones. Unapproved Group LLC for advice on stratemotorists and relatives, acstrategic options, including a poCAN CAPITAL messaging applications such as gic alternatives, the people said. cording to the plea agreement.

WhatsApp and Google Talk can’t Representatives for Jefferies and tential sale, according to people The agreement recommended Online Lender Looks Realization Services didn’t refamiliar with the matter. be used for business purposes, claims be sorted by Kenneth The Los Angeles-based comincluding on personal phones, ac- Feinberg, a victims compensaspond to requests for comment.

To Revive Business CAN Capital is one of the larg- pany, which offers automated on- cording to the note. tion specialist who did similar Online small-business lender line systems that give marketers The memo’s contents, which est online lenders to small busiwork for General Motors Co. CAN Capital Inc. has hired advis- nesses, funding $6.5 billion in and publishers the ability to buy were earlier reported by to address faulty ignition ers as it tries to resuscitate its Bloomberg, were confirmed by a loans and cash advances since in- and sell advertising in real-time switches. business, according to people faauctions, is working with investDeutsche Bank spokesman who ception.

An independent monitor miliar with the matter, after the declined to comment further.

—Peter Rudegeair ment bank Morgan Stanley on will audit Takata’s compliance discovery late last year of irregu—Jenny Strasburg practices for three years. and Telis Demos the process, the people said.

Space-Based Flight Tracking Nears

BUSINESS WATCH

ALBIN LOHR-JONES/ZUMA PRESS

BY JONATHAN CHENG AND TIMOTHY W. MARTIN

3 Indicted In Probe Of Faulty Air Bags

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B4 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* ***

BUSINESS NEWS

Haier Hunts for U.S. Cost Cuts After buying GE plant, Chinese appliance firm to reduce expenses as competition increases

LOUISVILLE, Ky.—The new owners of General Electric Co.’s sprawling appliance factory here say they have to slash the cost of producing refrigerators and stoves in the face of tough, new competitors, especially fast-growing entrants from Asia.

Those new owners: China’s Haier Group.

The Asian appliance maker, which paid $5.6 billion for one of GE’s most storied businesses in early 2016, secured a labor deal this week that would avert a strike at the 6,000-worker plant.

What remains to be seen is whether GE Appliances can thrive without a wide-ranging conglomerate to lean on, and how deeply the fates of workers here will change in the process.

Haier’s purchase gave it access to GE’s brand and catapulted it to No. 2 in the U.S. appliance market behind Whirlpool Corp. It also took over Appliance Park, a nearly 1,000-acre complex that annually produces 4 million washing machines, air conditioners and other appliances.

But the management of GE Appliances—predominantly GE veterans who stayed on after the sale to Haier—say the park is losing hundreds of millions of dollars a year, and must tighten its belt to compete with overseas rivals like LG Electronics Inc. and Samsung Electronics Co. that are pushing into the U.S. market.

GE Appliances and the IUECWA Local 83761, which represents about 4,000 workers across the five factories at Ap-

WILLIAM DESHAZER FOR THE WALL STREET JOURNAL

BY TED MANN

Dana Crittendon, president of IUE-CWA Local 83761, which represents workers at the Kentucky site. pliance Park, reached a tentative agreement on a new contract Monday. Union members voted overwhelmingly to approve the deal on Friday. It comes a little more than one month after members rejected a previous five-year deal.

“On average, when you vote a contract down, you end up with less than what you had,” said Dana Crittendon, president of Local 83761. “We were very fortunate. It was important to get this first contract under our belt.”

Besides cutting labor costs, the company is also working to make its factories more efficient, among steps to stem losses at the Louisville facility.

Workers objected to some terms in the first contract agreement, including language that would have limited bumping rights, the ability for workers who get laid off to bump co-workers with lesser seniority from lower positions.

Company managers say the practice is disruptive and

drives up costs.

In the new agreement, which kept some of employees’ bumping rights, the company won new restrictions on overtime pay and a lower entry wage. New full-time workers will start at $14 an hour, compared with the current

The management of GE Appliances says a manufacturing park must tighten its belt. rate of $15.51. A new category of flexible, non full-time workers will begin at $12 an hour.

Haier is determined to cut costs because it paid a premium to secure GE’s business and expand its reach in the U.S. market, said David MacGregor, an analyst with Longbow Research. “If you’re manufacturing appliances in

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Friday, January 13, 2017 YTD 52-Week % Chg Hi Lo Stock

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NYSE ABB 3.3 29 22.48 0.22 6.69 22.92 15.74 ABB ACM ... 58 35.96 0.44 -1.10 40.72 22.80 AECOM AES AES 4.1 dd 11.72 0.14 0.86 13.32 8.22 AFL 2.5 11 69.64 0.07 0.06 74.50 54.57 Aflac T 4.8 17 40.96 -0.05 -3.69 43.89 33.43 AT&T 0.03 66.23 51.01 AXIS Capital AXS 2.3 13 65.29 0.42 6.56 45.79 36.00 AbbottLabs ABT 2.6 45 40.93 0.21 ABBV 4.1 17 61.99 0.71 -1.01 68.12 51.60 AbbVie -0.15 125.72 91.40 Accenture ACN 2.1 17 116.95 1.17 -6.79 280.89 169.42 AcuityBrands AYI 0.2 31 215.18 0.20 s 4.81 61.93 39.66 Adient ADNT ... ... 61.42 1.34 3.35 177.83 131.59 AdvanceAuto AAP 0.1 29 174.79 0.32 7.54 6.23 4.39 AdvSemiEngg ASX 4.7 16 5.42 0.03 AEG 5.3 23 5.52 0.05 -0.18 6.09 3.36 Aegon AER ... 10 43.00 0.14 3.34 45.53 24.61 AerCap AET 0.8 18 122.31 -0.33 -1.37 136.50 92.42 Aetna -1.22 179.85 115.97 AffiliatedMgrs AMG ... 17 143.53 -0.05 6.87 49.48 34.15 AgilentTechs A 1.1 35 48.69 0.17 9.64 60.10 26.09 AgnicoEagle AEM 0.9 97 46.05 0.41 AGU 3.3 15 105.38 -0.12 4.80 109.73 79.94 Agrium 1.06 150.45 105.99 AirProducts APD 2.4 21 145.35 -0.49 ALK 1.2 13 94.32 1.06 6.30 94.80 54.51 AlaskaAir s 9.20 94.94 45.78 Albemarle ALB 1.3 22 94.00 0.25 AA ... dd 33.01 -0.03 17.56 33.50 20.00 Alcoa -1.42 114.67 70.69 AlexandriaRealEst ARE 3.0 dd 109.55 0.24 BABA ... 49 96.27 0.37 9.63 109.87 59.25 Alibaba Y 0.30 619.99 446.50 Alleghany ... 17 609.92 1.14 ALLE 0.7 28 65.50 -0.62 2.34 73.49 52.95 Allegion AGN ... 6 216.14 -0.10 2.92 301.98 184.50 Allergan 3.96 257.05 176.63 AllianceData ADS ... 25 237.55 1.88 1.07 25.00 16.11 AllianceBernstein AB 7.6 12 23.70 0.25 -1.06 40.99 30.38 AlliantEnergy LNT 3.1 25 37.49 -0.16 0.89 35.76 20.56 AllisonTransm ALSN 1.8 34 33.99 0.20 ALL 1.8 20 73.89 0.21 -0.31 74.95 56.03 Allstate 4.78 20.60 14.55 AllyFinancial ALLY 1.6 dd 19.93 -0.22 MO 3.6 25 67.58 0.07 -0.06 70.14 56.15 Altria 7.93 11.78 6.87 AlumofChina ACH ... 33 11.02 -0.01 ABEV 1.6 25 5.31 0.06 8.15 6.34 3.86 Ambev AEE 3.4 19 51.97 0.01 -0.93 54.08 41.50 Ameren ... 15.95 11.02 AmericaMovil AMX 2.1 24 12.57 0.07 1.63 15.93 10.83 AmericaMovil A AMOV 2.1 24 12.50 0.61 -0.56 54.56 38.63 AmCampus ACC 3.4 60 49.49 0.24 AEP 3.7 68 63.23 -0.06 0.43 71.32 56.75 AEP 3.43 78.00 50.27 AmericanExpress AXP 1.7 14 76.62 -0.26 -0.83 89.22 64.87 AmericanFin AFG 1.4 20 87.39 0.40 AIG 1.9151 66.35 0.10 1.59 67.47 48.41 AIG -2.11 118.26 83.07 AmerTowerREIT AMT 2.2 52 103.45 -0.75 -2.13 85.24 59.01 AmerWaterWorks AWK 2.1 27 70.82 0.13 APU 7.8 48 48.33 0.23 0.86 50.11 32.36 Amerigas 3.90 119.32 76.00 Ameriprise AMP 2.6 16 115.27 0.18 8.22 93.53 68.38 AmerisourceBrgn ABC 1.7 13 84.62 0.76 AME 0.7 22 50.66 0.22 4.24 52.60 42.82 Ametek 1.35 69.19 44.50 Amphenol APH 0.9 27 68.11 0.14 2.17 73.33 28.16 AnadarkoPetrol APC 0.3 dd 71.24 -0.25 BUD 3.2 45 105.86 -0.08 0.40 136.08 98.28 AB InBev 1.81 11.29 8.25 AnnalyCap NLY 11.8 92 10.15 -0.03 8.55 34.23 17.00 AnteroMidstream AM 3.2 29 33.52 0.09 8.33 30.66 19.70 AnteroResources AR ... dd 25.62 0.11 s 3.31 149.58 114.85 Anthem ANTM 1.8 17 148.53 0.34 AON 1.2 21 113.29 0.62 1.58 116.59 83.83 Aon APA 1.6 dd 62.78 -0.24 -1.09 69.00 32.20 Apache -2.79 47.91 34.97 ApartmtInv AIV 3.0197 44.18 -0.04 0.80 35.83 28.03 AquaAmerica WTR 2.5 25 30.28 0.19 ARMK 1.2 29 33.89 0.15 -5.12 38.30 29.18 Aramark 10.14 8.84 2.33 ArcelorMittal MT 2.5 dd 8.04 0.14 -4.58 47.88 29.86 ArcherDaniels ADM 2.8 16 43.56 0.12 ARNC ... ... 21.13 0.13 13.97 25.92 13.84 Arconic 3.62 103.00 52.51 AristaNetworks ANET ... 44 100.27 1.27 s 3.52 74.41 45.23 ArrowElec ARW ... 13 73.81 0.68 1.82 125.00 88.30 AshlandGlobal ASH 1.4 dd 111.28 0.29 AIZ 2.2 10 94.83 2.12 96.33 64.36 Assurant ...

4.61 35.04 25.55 AstraZeneca AZN 3.1 31 28.58 0.34 ATH ... 5 46.94 0.70 -2.19 48.72 43.25 Athene 0.96 81.97 60.00 AtmosEnergy ATO 2.4 22 74.86 0.35 ALV 2.0 17 116.09 2.22 2.60 126.31 93.31 Autoliv 5.49 54.15 39.28 AutoNation AN ... 13 51.32 -0.29 -1.26 819.54 681.01 AutoZone AZO ... 19 779.81 -10.46 -0.50 192.29 158.32 Avalonbay AVB 3.1 26 176.26 -0.33 AGR 4.4 25 39.51 0.03 4.30 46.74 35.42 Avangrid 2.75 79.27 57.06 AveryDennison AVY 2.3 21 72.15 0.02 AVT 1.4 14 47.18 0.39 -0.90 51.50 37.10 Avnet 3.60 30.45 20.67 AxaltaCoating AXTA ... 64 28.18 0.14 BBT 2.6 17 46.52 0.18 -1.06 47.85 29.95 BB&T BCE 4.6 14 44.33 0.05 2.52 49.03 35.96 BCE 11.35 40.20 18.46 BHPBilliton BHP 1.4 dd 39.84 0.10 12.68 35.83 16.36 BHPBilliton BBL 1.6 dd 35.45 0.21 BP 6.4 dd 37.66 -0.10 0.75 38.68 27.01 BP

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BRFS ... 30 14.21 -0.61 -3.73 18.12 11.05 BRF BT 2.4 12 24.19 -0.05 5.04 36.04 21.61 BT Group -6.23 68.59 37.58 BakerHughes BHI 1.1 dd 60.92 -1.50 BLL 0.7 42 76.17 -0.88 1.47 82.24 62.30 Ball -2.07 7.67 5.14 BancoBilbaoViz BBVA 5.1 10 6.63 0.07 1.19 72.79 54.98 BancodeChile BCH 4.1 14 71.29 -0.03 -0.09 23.50 15.69 BcoSantChile BSAC 4.9 16 21.85 0.21 s 4.44 5.44 3.60 BancoSantander SAN 4.3 12 5.41 0.05 3.54 42.58 24.69 BanColombia CIB 3.1 12 37.98 -0.37 s 4.12 23.41 10.99 BankofAmerica BAC 1.3 19 23.01 0.09 3.78 75.37 47.54 BankofMontreal BMO 3.5 11 74.64 0.02 0.76 49.54 32.20 BankNY Mellon BK 1.6 16 47.74 0.28 s 6.16 59.24 35.01 BkNovaScotia BNS 3.7 10 59.11 0.33 BCS 1.9 dd 11.38 -0.01 3.45 12.05 6.76 Barclays BCR 0.4 35 234.17 -1.10 4.23 239.43 172.21 Bard CR 5.57 23.47 7.38 BarrickGold ABX 0.5 dd 16.87 -0.02 BAX 1.1 5 46.45 -0.06 4.76 50.16 34.06 BaxterIntl 4.71 181.75 129.50 BectonDickinson BDX 1.7 38 173.35 -0.14 WRB 0.8 15 67.12 0.37 0.92 67.86 47.54 Berkley -0.66 250786 186900 BerkHathwy A BRK/A ... 17 242500 -349.85 -0.66 167.25 123.55 BerkHathwy B BRK/B ... 17 161.90 0.49 4.29 51.68 27.79 BerryPlastics BERY ... 27 50.82 0.35 BBY 2.6 13 43.83 -0.40 2.72 49.40 25.31 BestBuy 3.39 194.20 122.03 Bio-RadLab A BIO ... 57 188.46 2.05 -0.31 399.46 280.55 BlackRock BLK 2.6 20 379.35 1.06 11.32 31.16 22.31 BlackstoneGroup BX 5.5 26 30.09 -0.11 4.78 18.54 8.86 BoardwalkPipe BWP 2.2 16 18.19 0.12 BA 3.6 24 158.83 0.54 2.02 160.07 102.10 Boeing 0.72 38.54 25.03 BoozAllen BAH 1.7 18 36.33 -0.05 2.18 41.98 27.52 BorgWarner BWA 1.4 16 40.30 0.31 2.16 144.02 107.28 BostonProperties BXP 2.3 40 128.50 -0.51 10.12 24.79 15.67 BostonScientific BSX ... dd 23.82 0.30 BAK 3.5 13 22.06 -0.78 4.01 23.15 10.82 Braskem -3.80 77.12 49.03 Bristol-Myers BMY 2.8 28 56.22 -0.33 -0.82 29.14 19.91 BrixmorProp BRX 4.3 31 24.22 0.02 -0.12 71.74 48.56 BroadridgeFinl BR 2.0 26 66.22 0.01 3.42 36.25 25.68 BrookfieldMgt BAM 1.5 12 34.14 0.13 3.44 35.03 20.33 BrookfieldInfr BIP 4.5 46 34.62 0.24 -1.34 45.77 28.41 Brown&Brown BRO 1.2 24 44.26 0.31 t -1.32 56.49 45.17 Brown-Forman A BF/A 1.6 17 45.64 0.02 t -2.14 51.71 43.72 Brown-Forman B BF/B 1.7 17 43.96 -0.21 -1.92 75.10 47.07 BuckeyePtrs BPL 7.6 15 64.89 0.09 BG 2.4 16 68.83 -0.25 -4.72 74.00 46.08 Bunge ... 91.67 45.81 BurlingtonStores BURL ... 33 84.75 -0.56 -0.54 33.21 22.73 CBRE Group CBG ... 22 31.32 0.40 CBS/A 1.1 18 63.30 -0.06 -2.34 67.59 46.86 CBS A CBS 1.2 17 62.32 -0.04 -2.04 66.88 41.36 CBS B 7.94 37.72 20.77 CF Industries CF 3.5117 33.98 -0.53 2.77 50.58 36.04 CGI Group GIB ... 14 49.36 0.05 CIT 1.4 20 43.02 0.33 0.80 43.99 25.18 CIT Group 0.77 46.25 35.49 CMS Energy CMS 3.0 20 41.94 0.04 CNA 2.4 20 40.83 0.62 -1.61 42.27 27.99 CNA Fin CEO 2.4 dd 128.45 1.35 3.62 138.36 82.28 CNOOC 1.95 15.99 6.38 CPFLEnergia CPL 1.7 27 15.70 -0.10 CRH 1.2 27 35.02 0.37 1.86 35.88 23.33 CRH CSRA 1.2 47 33.05 0.08 3.80 33.54 20.98 CSRA 3.89 106.67 69.30 CVS Health CVS 2.4 18 81.98 -0.62 COG 0.4 dd 21.92 -0.35 -6.16 26.74 15.39 CabotOil -2.51 90.91 69.76 CamdenProperty CPT 3.7 16 81.96 -0.12 CCJ 2.2 74 13.29 0.63 26.93 13.59 7.41 Cameco 2.07 67.89 51.84 CampbellSoup CPB 2.3 29 61.72 0.15 CM 4.4 8 84.68 0.26 3.77 85.66 56.29 CIBC s 5.34 71.50 46.23 CanNtlRlwy CNI 1.6 16 71.00 0.43 -1.41 35.28 14.41 CanNaturalRes CNQ 2.4 dd 31.43 0.66 4.00 157.34 97.09 CanPacRlwy CP 1.0 15 148.48 0.72 CAJ 4.9 21 29.03 0.06 3.16 30.93 26.60 Canon 1.85 91.64 58.02 CapitalOne COF 1.8 13 88.85 0.96 4.21 87.85 62.70 CardinalHealth CAH 2.4 18 75.00 0.81 CSL 1.3 28 109.20 0.43 -0.99 116.40 75.17 Carlisle KMX ... 21 67.17 0.36 4.32 68.06 41.25 CarMax CCL 2.6 14 53.46 -0.18 2.69 54.87 40.52 Carnival CUK 2.7 14 52.26 -0.14 2.09 54.56 42.45 Carnival 1.88 97.40 56.36 Caterpillar CAT 3.3 55 94.48 0.49 4.80 84.97 55.07 Celanese A CE 1.7 27 82.52 -0.77 CX ... 17 7.97 -0.06 -0.75 9.35 3.50 Cemex CNCO 2.1 14 8.63 0.31 2.74 10.13 5.43 Cencosud -2.51 16.82 9.10 CenovusEnergy CVE 1.0 dd 14.75 0.03 CNC ... 24 62.65 -0.06 10.87 75.57 47.36 Centene 3.17 25.47 16.38 CenterPointEner CNP 4.2 dd 25.42 0.09 3.94 7.70 1.12 CentraisElBras EBR ... 33 7.13 -0.06 6.22 33.45 21.94 CenturyLink CTL 8.6 15 25.26 0.08 -1.42 8.20 1.50 ChesapeakeEner CHK ... dd 6.92 -0.01 CVX 3.7 dd 116.38 0.22 -1.12 119.00 75.33 Chevron 7.61 31.59 20.93 ChinaEastrnAir CEA ... 8 24.05 0.37 6.99 14.66 10.07 ChinaLifeIns LFC 2.3 36 13.77 0.08 5.19 63.89 50.12 ChinaMobile CHL 3.5 13 55.15 0.41 s 10.05 78.69 48.28 ChinaPetrol SNP 3.1 17 78.16 1.62 8.28 36.29 25.14 ChinaSoAirlines ZNH 2.2 6 27.84 -0.06 4.53 55.85 42.23 ChinaTelecom CHA 2.5 12 48.22 0.04 -0.61 13.26 9.89 ChinaUnicom CHU 2.3 35 11.48 0.05 CMG ...169 410.75 1.40 8.86 542.50 352.96 Chipotle

Kentucky in dollar-denominated labor, you’ve got to offset that somewhere,” he said.

Having a manufacturing and distribution presence in the U.S. gives Haier more flexibility than companies that produce goods overseas, he said. It avoids import tariffs and helps the company more quickly react to changes in demand from U.S. customers than overseas competitors.

Some Appliance Park employees with more than 20 years of service can make as much as $25 to $40 an hour, said Bill Good, the company’s vice president of supply chain.

Over the years, wages grew out of proportion to competitors like Whirlpool, Mr. Good said, because GE’s business was effectively hidden in its conglomerate structure. In some cases, national union contracts with the parent helped boost wages for appliance workers whose business wasn’t doing as well as other GE units.

Yld Net Sym % PE Last Chg

CB 2.1 17 130.25 -1.42 133.89 106.82 Chubb 1.77 38.47 29.76 ChunghwaTelecom CHT 5.4 19 32.11 -0.93 53.68 38.42 Church&Dwight CHD 1.6 25 43.78 CI 0.0 20 146.31 9.69 148.99 115.03 Cigna 2.76 146.96 72.77 CimarexEnergy XEC 0.2 dd 139.65 C 1.1 13 59.63 0.34 61.63 34.52 Citigroup 1.85 37.08 18.04 CitizensFin CFG 1.3 20 36.29 CLX 2.7 24 119.53 -0.41 140.47 111.24 Clorox COH 3.8 20 35.08 0.17 43.71 30.06 Coach KO 3.4 25 40.88 -1.40 47.13 39.88 Coca-Cola -4.72 87.58 59.53 Coca-Cola Femsa KOF 2.9 23 60.54 0.67 75.38 61.40 Colgate-Palmolive CL 2.4 43 65.88 CMA 1.3 28 69.92 2.66 71.20 30.48 Comerica SBS 0.7 9 9.54 9.91 10.55 4.22 SABESP 16.41 3.97 0.73 CiaSiderurgica SID 1.7 21 3.76 CSC 0.9 dd 62.29 4.83 63.34 24.27 CSC -2.63 39.97 29.55 ConagraBrands CAG 2.1 27 38.51 1.63 147.55 69.94 ConchoRscs CXO ... dd 134.76 0.90 53.17 31.05 ConocoPhillips COP 2.0 dd 50.59 ED 3.6 18 73.60 -0.11 81.88 66.20 ConEd -2.63 173.55 130.23 ConstBrands A STZ 1.1 25 149.28 -0.27 60.30 13.94 ContinentalRscs CLR ... dd 51.40 COO 0.0 32 179.54 2.64 190.99 119.28 Cooper CLB 1.8 82 119.89 -0.12 135.49 84.50 CoreLabs GLW 2.2 13 24.84 2.35 25.34 16.13 Corning COTY 2.7234 18.72 2.24 31.60 17.94 Coty BAP 1.4 ... 161.25 2.15 166.26 84.72 Credicorp 10.83 18.86 10.01 CreditSuisse CS ... dd 15.86 -6.77 18.95 7.82 CrescentPoint CPG 2.2 dd 12.67 2.94 27.40 7.90 CrestwoodEquity CEQP 9.1 dd 26.30 -1.26 102.82 75.71 CrownCastle CCI 4.4 87 85.68 4.11 57.49 43.30 CrownHoldings CCK ... 15 54.73 0.90 90.17 42.41 Cullen/Frost CFR 2.4 21 89.02 CMI 2.9 20 139.98 2.42 147.10 79.88 Cummins DDR 5.0 dd 15.21 -0.39 19.92 14.67 DDR -0.21 100.45 78.72 DTE Energy DTE 3.4 22 98.30 DHR 0.6 22 81.36 4.52 82.64 61.58 Danaher DRI 3.1 21 73.37 0.89 79.43 55.77 Darden DVA ... 18 63.93 -0.42 78.77 54.50 DaVita DE 2.3 22 105.79 2.67 106.75 70.16 Deere 6.35 78.00 55.59 DelphiAutomotive DLPH 1.6 19 71.63 DAL 1.6 9 51.23 4.15 52.76 32.60 DeltaAir 5.97 21.18 11.19 DeutscheBank DB ... dd 19.18 1.62 50.69 18.07 DevonEnergy DVN 0.5 dd 46.41 DEO 3.4 20 107.73 3.65 117.84 99.46 Diageo DKS 1.1 18 52.62 -0.90 62.88 33.44 Dick's 4.10 113.21 69.89 DigitalRealty DLR 3.4 72 102.29 -0.60 74.33 42.86 DiscoverFinSvcs DFS 1.7 13 71.66 DIS 1.4 19 108.06 3.68 109.49 86.25 Disney -1.32 96.88 66.50 DollarGeneral DG 1.4 17 73.09 -1.80 78.97 67.58 DominionRscs D 3.7 23 75.21 DPZ 0.9 42 167.16 4.97 172.62 101.01 Domino's 0.43 46.29 25.21 Donaldson DCI 1.7 27 42.26 1.01 39.25 24.73 DouglasEmmett DEI 2.5 71 36.93 s 6.30 81.50 50.91 Dover DOV 2.2 25 79.65 1.01 59.33 40.26 DowChemical DOW 3.2 9 57.80 -1.25 98.80 81.05 DrPepperSnap DPS 2.4 19 89.54 -3.71 54.73 40.67 DrReddy'sLab RDY 0.7 44 43.60 DD 2.1 32 73.60 0.27 75.86 50.71 DuPont -0.53 87.31 70.35 DukeEnergy DUK 4.4 19 77.21 0.15 28.99 18.52 DukeRealty DRE 2.9 34 26.60 E 5.4 dd 33.15 2.82 33.38 24.73 ENI EOG 0.6 dd 105.39 4.24 109.37 57.15 EOG Rscs EQT 0.2 dd 62.15 -4.97 80.61 49.87 EQT -1.21 80.63 57.88 EQT Midstream EQM 4.3 15 75.75 3.56 79.23 56.03 EastmanChem EMN 2.6 13 77.89 ETN 2.2 16 68.66 2.34 70.00 46.19 Eaton ECL 1.2 33 118.57 1.15 124.60 98.62 Ecolab EC ... dd 9.45 4.42 10.29 5.16 Ecopetrol EIX 3.0 27 72.10 0.15 78.72 58.24 EdisonInt 3.66 121.75 72.20 EdwardsLife EW ... 38 97.13 2.46 58.28 41.25 EmersonElectric EMR 3.4 23 57.12 0.55 26.36 14.27 EnbridgeEnPtrs EEP 9.1 dd 25.62 ENB 4.1 21 43.27 2.73 45.77 27.43 Enbridge ECA 0.5 dd 13.05 11.16 13.49 3.00 Encana s 0.35 92.78 57.97 Endurance ENH 1.6 15 92.72 5.36 9.16 5.57 EnelAmericas ENIA 5.7 11 8.65 2.37 29.52 18.35 EnelGenChile EOCC 3.2 ... 19.90 EGN ... dd 54.12 -6.16 64.44 20.76 Energen -3.68 20.05 4.00 EnergyTrfrEquity ETE 6.1 18 18.60 0.87 43.50 18.62 EnergyTrfrPtrs ETP 11.7 dd 36.12 ERF 1.0 dd 9.23 -2.64 10.33 1.84 Enerplus -3.20 19.89 6.32 EnLinkMidPtrs ENLK 8.7 dd 17.83 ETR 4.9 10 71.58 -2.57 82.08 65.38 Entergy 1.26 30.11 19.00 EnterpriseProd EPD 6.0 22 27.38 6.29 83.27 57.32 EnvisionHlthcr EVHC ... 20 67.27 EFX 1.1 30 120.31 1.76 136.97 91.72 Equifax 0.69 83.19 62.22 EquityLife ELS 2.3 38 72.60 -1.51 79.90 58.28 EquityResdntl EQR 3.2 54 63.39 -1.94 237.50 191.25 EssexProp ESS 2.8 51 228.00 3.01 97.48 75.30 EsteeLauder EL 1.7 27 78.79 s 1.32 222.07 167.07 EverestRe RE 2.3 10 219.25 -0.14 60.44 50.16 EversourceEner ES 3.2 20 55.15 EXC 3.6 26 35.44 -0.14 37.70 26.26 Exelon -5.94 94.81 68.09 ExtraSpaceSt EXR 4.3 31 72.65 -4.33 95.55 71.55 ExxonMobil XOM 3.5 40 86.35 FMC 1.1 dd 59.27 4.79 60.00 32.24 FMC 0.90 37.09 22.30 FMC Tech FTI ... 75 35.85 FDS 1.2 20 170.24 4.17 183.17 135.95 FactSet -1.36 171.08 134.39 FederalRealty FRT 2.8 47 140.18 FDX 0.9 28 187.01 0.44 201.57 119.71 FedEx 6.69 11.32 5.45 FiatChrysler FCAU ... 8 9.73 0.42 11.05 5.79 FibriaCelulose FBR ... 8 9.65 -0.91 38.50 28.24 FidelityNatlFin FNF 3.0 21 33.65 -5.84 14.50 8.38 FNFV Group FNFV ... 8 12.90 2.29 81.67 55.10 FidelityNtlInfo FIS 1.3 53 77.37 FDC ... dd 15.43 8.74 15.92 8.37 FirstData s 0.88 94.15 56.32 FirstRepBank FRC 0.7 25 92.95 -1.16 36.60 29.33 FirstEnergy FE 4.7 dd 30.61 6.48 176.42 107.56 FleetCorTech FLT ... 35 150.69 3.56 52.50 33.86 Flowserve FLS 1.5 43 49.76

0.46 -0.05 0.31 1.64 0.81 0.40 0.37 0.44 -0.03 -0.07 -0.04 0.03 0.70 -0.20 -0.11 1.65 ...

0.37 0.44 -0.02 1.75 0.03 2.14 -2.55 0.31 0.18 -2.08 0.24 -0.01 0.65 0.50 0.32 2.08 1.42 0.07 -0.07 0.07 -0.44 0.52 0.62 0.57 0.34 0.46 -0.05 0.36 -1.04 -0.21 0.35 0.53 -0.50 -0.07 -1.20 0.36 0.01 1.28 -0.49 0.05 0.18 -0.51 -0.33 ...

0.17 0.02 -0.79 1.31 -0.43 0.46 -0.07 -0.09 -0.28 -0.46 -0.35 -0.15 0.18 0.01 0.06 -0.02 -0.41 -1.40 -0.20 0.03 0.25 0.03 -0.25 0.08 -0.56 -0.55 0.08 -0.72 -0.43 -0.35 -0.53 -0.16 ...

-1.16 0.01 -0.02 -0.15 0.70 -0.44 -0.37 -0.22 -0.19 -0.12 0.15 0.32 0.07 1.10 -0.07 1.70 0.45

“We just got way out of balance,” said Mr. Good, who previously worked for Whirlpool.

“I know exactly what our competitors were doing.”

He said the company planned to address personnel costs gradually, as older, better paid employees leave the company. “Then we can get our wage structure right over the course of time,” he said.

Some workers say they have been here before. Jerry Carney a former union leader, recalled meeting with GE Chief Executive Jeff Immelt in 2009.

Mr. Immelt agreed to bring a production line back from China if the union would agree to a wage freeze and the introduction of a lower wage tier for new hires.

As a result, Mr. Carney and GE Appliances executives said, the parent company eventually agreed to invest roughly $1 billion in Louisville and expand several production lines.

But the wage tiers “divided us,” said Steve Bobby, a 22year veteran of Appliance Park who was having a beer at a nearby pub after a shift in Building 2, where hotel air conditioning units are made.

Mr. Bobby said Appliance Park wages had helped him put two children through private school. After Haier bought the company, Mr. Bobby said, he cashed out a 401(k) account and paid off his credit cards, truck and boat— so he would have financial security to vote against a deal, and risk a strike, if the company came after senior workers for more cuts. “We’re throwing the bone in with the beans right now,” he said.

He voted no on the November contract, but said he was planning to support the deal this time around rather than risk a layoff by voting no.

“Don’t need to start over at the bottom,” he wrote in a text message this week.

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

FLR 1.5 48 54.22 3.24 57.77 39.48 Fluor -1.17 100.57 73.45 FomentoEconMex FMX 1.7 24 75.32 -0.48 79.43 50.90 FootLocker FL 1.6 15 70.55 4.12 14.22 11.02 FordMotor F 4.8 6 12.63 3.65 24.22 16.43 ForestCIty A FCE/A 1.1 76 21.60 FTS 3.8 17 31.36 1.55 34.66 24.63 Fortis FTV 0.5 ... 54.76 2.11 56.24 43.00 Fortive 1.52 64.47 44.19 FortBrandsHome FBHS 1.3 22 54.27 6.33 81.16 41.47 Franco-Nevada FNV 1.4 93 63.54 2.32 42.18 30.56 FranklinRscs BEN 2.0 14 40.50 15.16 16.42 3.52 Freeport-McMoRan FCX ... dd 15.19 -3.70 47.52 38.05 FreseniusMed FMS 1.1 21 40.65 AJG 2.9 25 52.81 1.64 53.36 35.96 Gallagher GPS 3.9 14 23.66 5.44 30.74 17.00 Gap IT ... 47 101.94 0.86 105.45 77.80 Gartner 11.46 10.97 7.15 Gazit-Globe GZT ... 3 9.63 3.03 180.09 121.61 GeneralDynamics GD 1.7 19 177.89 -0.76 33.00 27.10 GeneralElec GE 3.1 24 31.36 -0.64 32.10 23.89 GeneralGrowthProp GGP 3.5 19 24.82 -1.12 72.95 53.53 GeneralMills GIS 3.1 23 61.08 7.18 38.16 26.69 GeneralMotors GM 4.1 4 37.34 3.17 105.97 76.50 GenuineParts GPC 2.7 21 98.57 GGB 0.6 dd 4.05 28.98 4.30 0.79 Gerdau GIL 1.3 11 24.80 -2.25 32.20 22.43 Gildan 1.84 45.58 37.20 GlaxoSmithKline GSK 4.7322 39.22 12.00 80.88 51.29 GlobalPayments GPN 0.1 47 77.74 GG 0.5 dd 14.60 7.35 20.38 9.46 Goldcorp s 2.03 247.77 138.20 GoldmanSachs GS 1.1 19 244.30 GWW 2.1 21 237.02 2.05 240.74 176.85 Grainger ... 32.74 25.85 GreatPlainsEner GXP 4.0 20 27.35 3.65 9.04 5.83 GpoAvalAcciones AVAL 4.9 12 8.23 0.56 10.13 6.73 GpFinSantandMex BSMX 6.7 11 7.23 -4.50 29.34 19.73 GrupoTelevisa TV 0.5 37 19.95 4.35 31.90 20.51 GuangshenRail GSH 1.9 23 31.63 7.27 83.69 60.07 HCAHoldings HCA ... 13 79.40 HCP 4.9 dd 30.22 1.68 36.81 22.86 HCP 5.67 74.04 51.11 HDFC Bank HDB 0.7 ... 64.12 HPQ 3.6 10 14.77 -0.47 16.25 8.91 HP 2.44 43.07 28.62 HSBCHoldings HSBC 4.9 33 41.16 0.83 56.98 27.64 Halliburton HAL 1.3 dd 54.54 2.27 31.36 21.40 Hanesbrands HBI 2.0 17 22.06 0.67 62.35 36.36 HarleyDavidson HOG 2.4 16 58.73 -0.44 111.32 64.93 HarmanIntlInds HAR 1.3 21 110.67 HRS 2.1 36 101.76 -0.69 107.54 70.97 Harris s 1.43 48.91 36.54 HartfordFinl HIG 1.9 14 48.33 1.18 85.78 40.02 Helmerich&Payne HP 3.6 dd 78.31 HSY 2.4 28 104.85 1.37 117.79 82.42 Hershey -5.46 65.56 32.41 Hess HES 1.7 dd 58.89 -0.86 24.79 11.62 HewlettPackard HPE 1.1 13 22.94 1.04 56.23 38.08 HighwoodsProp HIW 3.3 44 51.54 0.74 59.76 33.16 HiltonWorldwide HLT ... 12 56.22 -8.33 39.17 22.07 HollyFrontier HFC 4.4 dd 30.03 0.72 139.00 109.62 HomeDepot HD 2.0 22 135.04 3.05 31.18 24.03 HondaMotor HMC ... 15 30.08 1.92 119.34 93.18 Honeywell HON 2.3 19 118.07 2.07 45.72 33.18 HormelFoods HRL 1.9 22 35.53 4.28 34.56 22.97 DR Horton DHI 1.4 12 28.50 -3.08 19.51 12.17 HostHotels HST 4.4 17 18.26 1.04 37.79 22.84 HuanengPower HNP 11.0 7 26.31 s 2.54 119.67 83.16 Hubbell HUBB 2.3 23 119.66 1.06 35.89 22.77 HudsonPacProp HPP 2.3 dd 35.15 HUM 0.6 28 202.92 -0.54 217.80 150.00 Humana 4.01 197.28 118.20 HuntingtonIngalls HII 1.3 21 191.58 0.09 58.05 34.06 HyattHotels H ... 37 55.31 IBN 1.9 17 7.86 4.94 8.80 5.15 ICICI Bank 3.69 14.77 9.26 ING Groep ING 3.7 ... 14.62 IVZ 3.6 16 31.10 2.50 33.34 23.02 Invesco IEX 1.5 25 91.72 1.84 95.76 67.20 IDEX 0.76 127.99 79.15 IllinoisToolWks ITW 2.1 23 123.39 -2.23 20.47 13.74 Infosys INFY 2.3 16 14.50 2.97 79.21 47.08 Ingersoll-Rand IR 2.1 13 77.27 INGR 1.6 19 126.45 1.19 140.00 84.57 Ingredion ICE 1.2 23 56.83 0.73 59.86 45.44 ICE 3.47 50.51 34.63 InterContinentl IHG 1.3 9 45.87 IBM 3.3 14 167.34 0.81 169.95 116.90 IBM -0.99 143.64 97.24 IntlFlavors IFF 2.2 24 116.66 6.15 32.07 12.48 IntlGameTech IGT 3.0104 27.09 IP 3.5 26 53.55 0.92 54.68 32.50 IntlPaper 0.73 24.82 19.79 Interpublic IPG 2.5 18 23.58 2.83 41.50 23.64 IronMountain IRM 6.6114 33.40 10.95 5.02 3.52 IsraelChemicals ICL ... dd 4.56 9.14 12.19 4.98 ItauUnibanco ITUB 0.5 12 11.22 s 0.48 88.17 52.50 JPMorganChase JPM 2.2 15 86.70 2.04 63.42 34.76 JacobsEngineering JEC ... 34 58.16 0.94 17.30 10.19 JamesHardie JHX 1.2 36 16.05 JNJ 2.8 20 114.60 -0.53 126.07 94.28 J&J 6.00 46.17 27.12 JohnsonControls JCI 2.3 dd 43.66 JOY 0.1 dd 28.14 0.50 28.55 8.35 JoyGlobal -1.38 29.21 21.18 JuniperNetworks JNPR 1.4 18 27.87 s 7.13 45.75 31.54 KAR Auction KAR 2.8 28 45.66 KB ... 8 37.16 5.30 38.56 22.84 KB Fin KKR 3.7 66 17.23 11.96 17.57 10.89 KKR KT ... 16 14.03 -0.43 16.79 10.81 KT -1.13 100.69 62.20 KSCitySouthern KSU 1.6 19 83.89 K 2.9 36 71.38 -3.16 87.16 68.73 Kellogg s 1.70 18.77 9.88 KeyCorp KEY 1.8 21 18.58 0.98 38.28 21.07 KeysightTechs KEYS ... 19 36.93 -0.53 77.54 46.76 KilroyRealty KRC 2.1 25 72.83 0.41 138.87 111.30 KimberlyClark KMB 3.2 21 114.59 0.68 32.24 24.35 KimcoRealty KIM 4.3 23 25.33 8.26 23.36 11.20 KinderMorgan KMI 2.2 dd 22.42 8.04 5.82 1.31 KinrossGold KGC 4.8 dd 3.36 KSS 4.9 12 40.79 -17.40 59.67 33.87 Kohl's s 0.56 30.79 23.00 KoninklijkePhil PHG 2.9 33 30.74 1.41 28.37 17.73 KoreaElcPwr KEP ... 3 18.74 KR 1.4 16 34.10 -1.19 40.91 28.71 Kroger KYO ... 22 50.50 1.45 51.23 38.01 Kyocera 12.71 9.93 4.35 LATAMAirlines LFL ... dd 9.22 LB 4.0 15 60.69 -7.82 97.35 60.00 L Brands 6.15 14.36 8.43 LGDisplay LPL ...113 13.64 LN ... ... 36.46 7.20 51.48 33.36 LINE

0.66 0.54 0.20 0.04 0.41 -0.13 1.09 0.03 0.74 0.02 -0.08 0.36 0.23 -0.34 2.10 0.13 1.37 -0.03 -0.08 -0.19 -0.17 0.48 0.04 -0.11 0.21 0.14 -0.01 0.46 0.83 -0.11 -0.10 0.01 0.01 0.04 0.28 -0.19 ...

-0.02 -0.02 -0.64 0.14 0.41 -0.16 -0.03 0.10 -0.70 0.17 0.04 0.19 0.14 0.82 -0.52 -0.03 -0.08 0.44 0.13 -0.19 0.24 -0.13 1.19 -0.10 -2.33 0.51 0.42 -0.09 0.14 0.05 1.15 0.78 -0.75 0.63 1.36 0.11 0.14 -0.61 1.40 -0.19 -0.12 -0.11 -0.29 ...

-0.29 0.46 0.77 0.06 -0.02 -0.13 ...

0.07 0.16 0.09 ...

-0.16 1.77 -0.54 0.29 0.58 0.52 0.13 -0.02 0.23 0.05 -0.52 0.15 0.31 0.58 -0.49 0.03 -0.02 0.07 0.98

Wal-Mart Integrates In-Store, Web Posts

BY SARAH NASSAUER Wal-Mart Stores Inc. is shuffling its leadership ranks five months after buying Jet.com Inc., giving several top executives responsibility for both online and in-store operations.

The changes come as the world’s largest retailer prepares to cut about 1,000 corporate jobs at its headquarters in Bentonville, Ark., and revamps its operations to compete with Amazon.com Inc. Tony Rogers, Wal-Mart’s chief marketing officer, will also lead online and digital marketing efforts, including for Jet.com, according to an internal memo. “This integrated team will help us communicate in a more consistent way with our customers,” wrote Jet.com founder Marc Lore, who runs the company’s U.S. e-commerce operations.

Jeremy King, head of the WalmartLabs engineering team, is being promoted to U.S. chief technology officer, reporting to both the company’s U.S. stores chief, Greg Foran, and Mr. Lore.

Michael Bender, chief operating officer for e-commerce, will leave the company, Chief Executive Doug McMillon told staff in a memo Friday. Scott Hilton, chief revenue officer for Jet.com, will become chief revenue officer for all e-commerce operations. Jamie Iannone, chief executive of SamsClub.com, will take on responsibility for all of the warehouse chain’s technology efforts, including in stores.

The retailer’s fiscal year ends Jan. 31, in part spurring the wave of announcements.

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

LLL ... 40 148.89 -2.12 161.91 105.88 L3 Tech LH ... 21 134.33 4.63 141.32 97.79 LabCpAm -1.66 38.96 28.75 LambWeston LW ... ... 37.22 3.50 63.38 34.88 LasVegasSands LVS 5.2 27 55.28 LAZ 3.7 13 41.09 ... 44.07 26.21 Lazard LEA 0.8 11 143.33 8.28 144.57 93.54 Lear -3.85 54.62 36.64 Leggett&Platt LEG 2.9 17 47.00 LDOS 2.6 13 49.96 -2.31 59.45 37.79 Leidos LEN 0.4 11 44.46 3.56 49.60 37.14 Lennar A LEN/B 0.4 9 35.81 3.80 39.93 30.04 Lennar B -2.47 164.56 105.65 LennoxIntl LII 1.2 26 149.38 0.90 24.16 14.27 LeucadiaNatl LUK 1.1240 23.46 3.62 59.24 41.73 Level3Comm LVLT ... 6 58.40 1.85 42.26 26.94 LibertyProperty LPT 4.7 24 40.23 LLY 2.7 34 77.40 5.23 84.80 64.18 EliLilly 1.42 69.49 30.39 LincolnNational LNC 1.7 13 67.21 s 4.28 28.40 26.09 LionsGate A LGF/A ... ... 28.05 4.21 29.04 18.77 LiveNationEnt LYV ... dd 27.72 5.16 4.42 2.47 LloydsBanking LYG 2.7 38 3.26 1.84 269.90 200.47 LockheedMartin LMT 2.9 20 254.53 L 0.5 92 46.10 -1.56 48.05 33.84 Loews LOW 1.9 26 72.15 1.45 83.65 62.62 Lowe's LUX 1.9 ... 52.42 -2.38 63.62 44.85 Luxottica 4.60 93.75 69.09 LyondellBasell LYB 3.8 10 89.73 -0.23 160.76 100.08 M&T Bank MTB 1.8 21 156.07 0.45 29.92 15.57 MDU Rscs MDU 2.7111 28.90 -0.73 30.62 16.18 MGM Resorts MGM ... 57 28.62 s 3.24 36.29 16.34 MPLX MPLX 5.8 dd 35.74 MSCI 1.4 32 82.40 4.60 90.79 62.17 MSCI 6.97 100.84 56.92 MSC Industrial MSM 1.8 26 98.83 MAC 4.1126 69.50 -1.89 94.51 66.00 Macerich 0.59 85.45 51.83 MacquarieInfr MIC 6.3 57 82.18 t-16.56 45.50 29.66 Macy's M 5.1 14 29.88 -1.68 77.50 55.25 MagellanMid MMP 4.5 21 74.36 3.32 47.21 30.41 MagnaIntl MGA 2.2 7 44.84 1.65 85.83 48.61 Mallinckrodt MNK ... 10 50.64 s 4.96 93.41 57.26 Manpower MAN 1.8 15 93.28 4.83 19.04 10.99 ManulifeFin MFC 3.0 12 18.68 0.81 19.28 6.52 MarathonOil MRO 1.1 dd 17.45 -3.91 54.59 29.24 MarathonPetrol MPC 3.0 23 48.38 -3.20 18.68 12.40 MarineHarvest MHG 6.2 17 17.55 MKL ... 25 894.57 -1.10 989.18 805.03 Markel 0.21 69.77 50.81 Marsh&McLennan MMC 2.0 21 67.73 -0.39 236.41 108.31 MartinMarietta MLM 0.8 35 220.67 MAS 1.2 23 32.05 1.36 37.38 23.10 Masco s 5.28 109.40 78.52 Mastercard MA 0.8 30 108.70 -2.10 107.84 78.45 McCormick MKC 2.1 25 91.37 -1.90 108.26 79.01 McCormickVtg MKC/V 2.1 25 91.33 -0.18 131.96 110.33 McDonalds MCD 3.1 23 121.50 4.79 199.43 114.53 McKesson MCK 0.8 17 147.18 -0.52 94.40 65.53 MeadJohnson MJN 2.3 26 70.39 MD ... 19 70.69 6.05 76.96 59.36 Mednax 5.42 89.27 69.35 Medtronic MDT 2.3 25 75.09 MRK 3.0 32 62.34 5.89 65.46 47.97 Merck MET 2.9 17 54.31 0.78 58.09 35.00 MetLife 1.41 434.50 291.32 MettlerToledo MTD ... 31 424.45 -1.37 59.49 34.83 MichaelKors KORS ... 10 42.39 -2.86 110.01 82.91 MidAmApt MAA 3.7 33 95.12 2.92 6.70 3.86 MitsubishiUFJ MTU ... 11 6.34 3.34 3.87 2.69 MizuhoFin MFG ... 8 3.71 11.20 10.24 5.14 MobileTeleSys MBT 3.7 16 10.13 MBLY ...108 42.18 10.65 51.15 23.57 Mobileye 1.37 216.58 148.56 MohawkIndustries MHK ... 17 202.41 0.32 112.19 80.78 MolsonCoors B TAP 1.7 36 97.62 2.29 114.26 83.73 Monsanto MON 2.0 29 107.62 MCO 1.6 21 96.96 2.85 110.83 77.76 Moody's s 3.69 44.60 21.16 MorganStanley MS 1.8 18 43.81 s 6.55 31.78 22.02 Mosaic MOS 3.5 25 31.25 -0.75 87.55 59.13 MotorolaSolutions MSI 2.3 24 82.27 ... 37.48 14.30 MurphyOil MUR 3.2 dd 31.13 NCR ... 29 42.44 4.64 43.20 18.02 NCR 5.45 28.43 19.43 NTTDoCoMo DCM ... 16 23.99 NVR ... 17 1700.00 1.86 1845.37 1462.02 NVR 0.45 74.97 56.50 NationalGrid NGG 5.4 15 58.59 -0.11 43.63 25.74 NatlOilwell NOV 0.5 dd 37.40 2.01 53.59 38.29 NatlRetailProp NNN 4.0 41 45.09 15.77 53.38 27.61 NewOrientalEduc EDU ... 33 48.74 -1.13 17.68 13.74 NY CmntyBcp NYCB 4.3 dd 15.73 5.26 55.45 33.26 NewellBrands NWL 1.6 90 47.00 3.46 50.00 20.84 NewfieldExpln NFX ... dd 41.90 1.35 46.07 16.05 NewmontMining NEM 0.6678 34.53 -0.34 131.98 103.35 NextEraEnergy NEE 2.9 23 119.05 0.98 55.94 40.96 NielsenHoldings NLSN 2.9 26 42.36 NKE 1.4 23 52.92 4.11 65.44 49.01 Nike 4.35 49.67 37.99 NipponTelegraph NTT ... 12 43.90 NI 3.0 24 21.96 -0.81 26.94 19.05 NiSource -1.76 42.03 23.77 NobleEnergy NBL 1.1 dd 37.39 NOK 6.1 21 4.75 -1.25 7.31 4.04 Nokia 3.22 6.77 3.33 NomuraHoldings NMR ... 19 6.09 -7.78 62.82 35.01 Nordstrom JWN 3.3 24 44.20 3.26 112.99 64.51 NorfolkSouthern NSC 2.1 21 111.59 -1.04 253.80 175.00 NorthropGrumman NOC 1.6 20 230.17 NVS 3.8 26 72.40 -0.60 83.58 66.93 Novartis -0.36 57.81 30.89 NovoNordisk NVO 1.3 16 35.73 NUE 2.5 38 60.37 1.43 68.00 33.90 Nucor 3.84 53.47 25.65 NuSTAREnergy NS 8.5 24 51.71 0.90 34.23 23.37 OGE Energy OGE 3.6 22 33.75 OKE 4.4 42 56.31 -1.92 59.47 18.88 ONEOK 4.16 47.01 22.00 ONEOK Partners OKS 7.1 34 44.80 -3.02 78.48 58.22 OccidentalPetrol OXY 4.4 dd 69.08 OZM ... dd 3.17 -4.23 5.45 2.65 Och-Ziff 3.84 38.09 26.96 OmegaHealthcare OHI 7.6 21 32.46 OMC 2.6 18 85.31 0.23 89.66 66.48 Omnicom ORCL 1.5 19 39.26 2.11 42.00 33.13 Oracle ORAN 2.7 16 15.88 4.89 18.32 13.98 Orange 1.41 91.36 67.04 OrbitalATK OA 1.3 19 88.97 IX ... 10 81.37 4.55 82.58 57.00 Orix 4.48 58.69 38.96 OwensCorning OC 1.5 15 53.87 PCG 3.2 36 60.58 -0.31 65.43 50.65 PG&E PHI 7.1 24 29.43 6.82 50.48 25.50 PLDT

3.18 -0.32 0.26 -0.18 0.29 0.37 0.01 -0.03 0.03 -0.24 0.87 0.12 0.18 0.04 0.25 0.67 -0.05 0.28 -0.05 1.91 -0.05 0.57 0.44 0.11 0.72 0.25 -0.01 0.01 1.15 -0.80 -0.18 0.32 -0.10 0.57 -0.22 -0.98 1.52 0.06 0.01 -0.87 -0.05 -0.95 0.15 0.75 ...

-0.01 0.67 0.92 -0.60 2.50 -0.20 0.53 -0.02 0.13 0.40 2.53 -0.26 -0.99 0.02 0.01 0.06 1.34 0.67 2.19 0.29 0.46 0.18 -0.16 0.09 0.21 0.45 0.10 -3.63 0.36 -0.76 -0.20 0.75 0.03 -0.12 -0.60 0.06 -0.45 0.35 0.52 0.26 -0.07 0.21 0.05 0.05 -0.83 0.58 1.02 -0.39 0.47 -0.24 0.63 0.05 -0.26 -0.70 0.05 -0.04 -0.07 -0.14 0.06 0.13 -0.09 1.38 1.62 -0.03 -1.46

Continued on Page B5

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BIGGEST 1,000 STOCKS YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

PNC 1.9 16 118.79 1.56 121.33 77.40 PNC Fin PKX ... 15 56.90 8.28 60.13 30.97 POSCO PPG 1.7 31 96.32 1.65 117.00 88.37 PPG Ind PPL 4.4 13 34.36 0.91 39.92 32.08 PPL PVH 0.2 13 89.31 -1.03 115.40 64.16 PVH 2.83 89.28 44.32 PackagingCpAm PKG 2.9 19 87.22 10.74 165.69 111.09 PaloAltoNtwks PANW ... dd 138.48 -2.71 33.40 28.02 ParkHotels PK ... ... 29.09 s 4.46 146.34 83.32 ParkerHannifin PH 1.7 24 146.25 3.75 39.82 14.51 ParsleyEnergy PE ... dd 36.56 PSO 4.8 dd 9.93 -0.60 13.20 8.99 Pearson 2.14 32.31 17.88 PembinaPipeline PBA 4.5 30 31.99 PNR 2.4 dd 58.71 4.71 66.99 41.57 Pentair PEP 3.0 22 101.55 -2.94 110.94 93.25 PepsiCo 3.36 57.28 39.50 PerkinElmer PKI 0.5 25 53.90 PRGO 0.7 dd 77.80 -6.52 152.36 76.08 Perrigo s 9.59 81.13 52.30 PetroChina PTR 0.8138 80.77 11.97 12.55 2.71 PetroleoBrasil PBR ... dd 11.32 10.56 11.77 1.99 PetroleoBrasilA PBR/A ... dd 9.74 PFE 3.9 32 32.52 0.12 37.39 28.25 Pfizer -1.19 104.20 84.46 PhilipMorris PM 4.6 22 90.40 PSX 3.0 22 83.29 -3.61 90.87 71.74 Phillips66 -0.73 54.45 39.15 PinnacleFoods PF 2.1 31 53.06 -0.99 82.78 62.51 PinnacleWest PNW 3.4 20 77.26 1.06 195.00 103.50 PioneerNatRscs PXD 0.0 dd 181.97 -2.42 33.95 14.82 PlainsAllAmPipe PAA 7.0 62 31.51 4.71 104.25 67.80 PolarisIndustries PII 2.6 22 86.27 4.14 89.00 50.93 PostHoldings POST ... dd 83.72 POT 2.1 25 18.91 4.53 19.88 14.64 Potash PX 2.6 22 117.08 -0.09 125.00 95.60 Praxair 2.02 61.34 33.09 PrincipalFin PFG 2.9 14 59.03 -0.08 90.33 74.46 Procter&Gamble PG 3.2 23 84.01 2.11 36.59 29.32 Progressive PGR 2.5 22 36.25 PLD 3.2 32 52.30 -0.93 54.87 35.25 Prologis 1.12 108.29 57.19 PrudentialFin PRU 2.7 10 105.23 -1.33 42.20 29.14 Prudential PUK 1.7 19 39.26 0.34 47.41 38.14 PublicServiceEnt PEG 3.7 17 44.03 -4.20 277.60 200.65 PublicStorage PSA 3.7 33 214.12 4.41 22.40 14.61 PulteGroup PHM 1.9 12 19.19 0.87 93.84 59.66 QuestDiag DGX 1.9 20 92.70 ... 24 77.16 1.46 81.45 55.01 QuintilesIMS Q RENX 1.6 22 16.81 0.30 18.34 14.92 RELX RELX 1.5 24 18.09 0.67 19.84 16.18 RELX RPM 2.3 34 52.55 -2.38 55.92 36.78 RPM -4.95 46.92 16.74 RSP Permian RSPP ... dd 42.41 -4.43 115.85 82.15 RalphLauren RL 2.3 38 86.32 -2.10 46.96 19.21 RangeResources RRC 0.2 dd 33.64 s 7.38 75.16 39.84 RaymondJames RJF 1.2 20 74.38 RTN 2.0 19 145.99 2.81 152.58 115.73 Raytheon 2.77 72.30 50.96 RealtyIncome O 4.1 54 59.07 RHT ... 56 73.36 5.25 82.73 59.59 RedHat -0.10 85.35 65.16 RegencyCtrs REG 2.9 83 68.88 s 2.23 14.93 7.00 RegionsFin RF 1.8 17 14.68 -0.67 129.28 76.96 ReinsuranceGrp RGA 1.3 12 124.99 2.28 87.58 50.08 RelianceSteel RS 2.1 19 81.35 s 1.31 139.23 107.27 RenaissanceRe RNR 0.9 12 138.00 0.33 58.00 41.82 RepublicServices RSG 2.2 33 57.24 RMD 2.0 27 65.33 5.29 70.90 52.37 ResMed 4.43 50.20 29.28 RestaurantBrands QSR 1.4 31 49.77 -0.12 56.65 43.38 ReynoldsAmer RAI 3.3 15 55.97 RIO 2.1 dd 42.04 9.31 42.87 21.89 RioTinto s 5.10 8.77 6.33 RiteAid RAD ... 69 8.66 2.32 50.98 34.34 RobertHalf RHI 1.8 18 49.91 ROK 2.1 25 141.99 5.65 142.54 87.53 Rockwell -3.05 96.55 76.03 RockwellCollins COL 1.5 16 89.93 1.09 45.50 32.50 RogersComm B RCI 3.7 17 39.00 ROL 1.2 45 33.42 -1.07 34.24 24.51 Rollins s 2.96 190.01 155.79 RoperTech ROP 0.7 28 188.50 s 6.28 72.24 44.37 RoyalBkCanada RY 3.4 11 71.96 -2.17 7.67 3.91 RoyalBkScotland RBS ... dd 5.41 3.72 88.34 64.21 RoyalCaribbean RCL 2.3 15 85.09 2.02 56.39 35.80 RoyalDutchA RDS/A 6.8 47 55.48 1.21 59.56 35.95 RoyalDutchB RDS/B 6.4 50 58.67 SAP 1.5 29 89.44 3.48 92.76 71.39 SAP 4.54 128.40 78.55 S&P Global SPGI 1.3 17 112.42 11.58 60.49 35.50 SINOPECShanghai SHI 2.5 8 60.40 2.78 23.17 17.52 SK Telecom SKM ... 11 21.48 -1.01 120.63 80.12 SLGreenRealty SLG 2.9 37 106.46 10.49 84.48 52.60 Salesforce.com CRM ...252 75.64 SNY 4.0 23 41.47 2.55 44.50 36.81 Sanofi SSL 4.3 22 31.11 8.81 33.31 21.07 Sasol SCG 3.2 18 72.06 -1.66 76.41 59.46 Scana 1.04 87.00 59.60 Schlumberger SLB 2.4 dd 84.82 s 4.92 41.84 21.51 SchwabC SCHW 0.7 34 41.41 -2.42 98.82 62.72 ScottsMiracleGro SMG 2.1 34 93.24 SEE 1.3 22 48.03 5.93 52.83 38.02 SealedAir -8.40 7.74 3.84 SemicondctrMfg SMI ... 2 6.98 1.12 114.66 89.14 SempraEnergy SRE 3.0 19 101.77 6.68 42.00 29.91 SensataTech ST ... 17 41.55 1.94 29.23 20.21 ServiceCorp SCI 1.8 31 28.95 12.36 89.79 45.99 ServiceNow NOW ... dd 83.53 5.88 21.45 15.66 ShawComm B SJR 4.2 18 21.24 6.09 312.48 234.96 SherwinWilliams SHW 1.2 24 285.10 0.16 40.92 29.08 ShinhanFin SHG ... 8 37.70 s 12.20 49.43 18.48 Shopify SHOP ... dd 48.10 -14.30 125.45 72.65 SignetJewelers SIG 1.3 12 80.78 5.95 31.35 10.04 SilverWheaton SLW 1.24178 20.47 3.57 229.10 173.11 SimonProperty SPG 3.6 33 184.01

0.86 0.60 -0.55 -0.14 -3.82 0.34 2.12 -0.09 2.50 0.08 -0.01 0.13 1.44 -0.29 0.94 -0.38 1.02 -0.17 -0.24 -0.08 -0.11 -1.05 0.18 -0.24 -0.59 ...

-0.73 0.04 -0.07 -0.17 0.16 0.17 0.05 -0.39 1.01 0.26 -0.04 -3.18 0.18 -0.42 -0.03 0.03 ...

0.05 -0.97 -0.07 -0.35 0.56 0.35 -0.50 0.33 -0.12 0.25 0.18 -0.02 -0.28 0.14 1.07 0.55 0.23 -0.09 -0.04 0.54 1.23 -0.47 -0.22 0.51 0.84 0.55 ...

-0.80 -0.23 -0.18 0.05 -0.17 -0.06 -0.01 0.29 0.43 0.85 0.30 0.07 -0.51 0.15 0.30 -0.25 -0.03 -0.07 0.40 0.07 0.07 0.17 1.56 -0.16 -0.48 -3.58 0.36 0.92

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

SIX 4.2 49 60.60 1.07 62.69 45.24 SixFlags AOS 1.0 27 48.46 2.34 51.49 30.15 SmithAO 1.86 35.38 26.96 Smith&Nephew SNN 1.6 40 30.64 SJM 2.3 21 131.00 2.30 157.31 117.36 Smucker s 3.42 178.57 133.09 SnapOn SNA 1.6 20 177.13 7.75 32.32 14.90 SOQUIMICH SQM 5.3 34 30.87 3.47 55.47 36.56 SonocoProducts SON 2.7 23 54.53 SNE ... 89 31.02 10.67 34.17 19.90 Sony SO 4.6 19 48.80 -0.79 54.64 46.20 Southern s 10.68 35.45 21.55 SoCopper SCCO 0.6 41 35.35 2.63 52.20 33.96 SouthwestAirlines LUV 0.8 15 51.15 2.70 44.00 23.51 SpectraEnergy SE 4.2 94 42.20 0.85 50.48 39.53 SpectraEnerPtrs SEP 5.9 16 46.23 -0.94 138.95 87.65 SpectrumBrands SPB 1.3 21 121.18 -0.41 61.55 40.03 SpiritAeroSys SPR ... 15 58.11 1.29 13.97 8.89 SpiritRealtyCap SRC 6.5 83 11.00 S ... dd 8.61 2.26 9.00 2.18 Sprint SQ ... dd 14.75 8.22 15.91 8.06 Square 4.05 126.72 88.72 StanleyBlackDck SWK 1.9 18 119.33 2.05 23.46 16.69 StarwoodProp STWD 8.6 16 22.40 s 6.70 83.49 50.59 StateStreet STT 1.8 17 82.93 s 4.93 19.19 10.88 Statoil STO 4.6 dd 19.14 STE 1.6 35 69.26 2.77 74.63 61.38 Steris s 2.47 11.67 5.11 STMicroelec STM 2.1 dd 11.63 SYK 1.4 28 122.92 2.60 127.23 88.57 Stryker 4.19 8.30 5.01 SumitomoMits SMFG ... 10 7.96 1.67 85.98 62.58 SunCommunities SUI 3.3 43 77.89 s 4.37 40.13 25.31 SunLifeFinancial SLF 3.1 11 40.09 -0.73 33.79 18.71 SuncorEnergy SU 2.7 dd 32.45 0.96 31.49 15.43 SunocoLogistics SXL 8.4 48 24.25 s 2.04 56.97 31.07 SunTrustBanks STI 1.9 16 55.97 0.14 38.05 23.25 SynchronyFin SYF 1.4 14 36.32 SYT 2.7 32 82.64 4.54 89.13 68.94 Syngenta SYY 2.4 30 54.97 -0.72 57.07 38.84 Sysco 7.85 83.68 41.34 TAL Education TAL ... 76 75.66 0.48 71.87 51.70 TE Connectivity TEL 2.1 13 69.61 TU 4.3 14 33.63 5.59 34.12 24.34 Telus TX 3.6 16 24.75 2.48 27.00 10.28 Ternium TSU 2.2 27 13.04 10.51 14.31 7.08 TIM Part TJX 1.4 22 75.93 1.06 83.64 65.64 TJX 2.40 31.61 20.56 TaiwanSemi TSM 3.2 16 29.44 3.35 59.97 14.55 TargaResources TRGP 6.3 dd 57.95 TGT 3.4 13 70.19 -2.82 84.14 65.50 Target 10.61 44.79 20.00 TataMotors TTM 0.0 15 38.04 23.27 33.76 2.67 TeckRscsB TECK 0.3 dd 24.69 2.25 11.79 6.95 TelecomItalia TI 2.9 17 9.09 1.78 9.69 5.61 TelecomItalia A TI/A 4.2 14 7.42 TFX 0.8 29 169.37 5.10 188.79 126.79 Teleflex 5.31 15.69 7.71 TelefonicaBras VIV ... 22 14.09 5.87 11.43 8.15 Telefonica TEF 7.4131 9.74 1.03 34.65 21.22 TelekmIndonesia TLK 0.5 17 29.46 TS 1.5 dd 35.56 -0.42 36.40 18.53 Tenaris s 4.49 26.69 17.34 Teradyne TER 0.9 dd 26.54 TSO 2.8 13 79.61 -8.97 95.12 67.80 Tesoro s 6.53 54.60 35.18 TesoroLogistics TLLP 6.5 26 54.13 -6.29 64.31 33.56 TevaPharm TEVA 4.0 20 33.97 TXT 0.2 14 49.49 1.92 50.93 30.68 Textron 3.68 160.68 119.75 ThermoFisherSci TMO 0.4 29 146.29 2.97 45.68 33.96 ThomsonReuters TRI 3.0 20 45.08 2.84 108.45 47.56 ThorIndustries THO 1.3 19 102.89 MMM 2.5 22 177.39 -0.66 182.27 134.64 3M TIF 2.2 23 81.92 5.80 85.44 56.98 Tiffany -2.48 97.21 55.53 TimeWarner TWX 1.7 17 94.14 0.16 75.07 48.47 Torchmark TMK 0.8 17 73.88 TTC 1.2 28 57.90 3.49 58.26 32.35 Toro 3.67 51.45 33.48 TorontoDomBk TD 3.2 11 51.15 s 1.22 52.04 39.05 Total TOT 5.0 31 51.59 10.12 56.54 37.47 TotalSystem TSS 0.7 30 53.99 2.23 123.18 97.80 ToyotaMotor TM ... 10 119.81 3.19 48.52 28.40 TransCanada TRP 3.6 dd 46.59 1.32 294.38 180.76 TransDigm TDG ... 26 252.24 5.02 16.66 7.67 Transocean RIG ... 5 15.48 4.69 35.79 20.43 TransUnion TRU ... 67 32.38 TRV 2.3 12 117.05 -4.39 123.09 101.23 Travelers 2.17 10.87 6.35 TurkcellIletism TKC 24.3 11 7.05 6.19 3.67 1.55 TurquoiseHill TRQ ... 19 3.43 TWTR ... dd 17.25 5.83 25.25 13.72 Twitter TYL ... 87 151.35 6.01 175.77 118.16 TylerTech 0.50 77.05 48.52 TysonFoods TSN 1.5 15 61.99 8.87 17.44 11.93 UBS Group UBS 1.4 19 17.06 UDR 3.3313 35.63 -2.33 38.61 32.79 UDR UGI 2.0 22 46.42 0.74 48.13 31.59 UGI USFD ... 49 26.50 -3.57 27.86 22.19 US Foods 0.58 24.50 12.93 UltraparPart UGP 2.4 25 20.86 3.55 47.95 29.00 UnderArmour A UAA ... 44 30.08 5.28 46.20 23.51 UnderArmour C UA ... 39 26.50 UN 3.4 22 41.43 0.90 48.00 38.41 Unilever UL 3.4 22 41.46 1.87 48.97 38.58 Unilever 1.51 106.62 67.06 UnionPacific UNP 2.3 21 105.25 1.98 76.80 37.41 UnitedContinental UAL ... 9 74.32 UPS 2.7 20 114.24 -0.35 120.44 87.30 UPS B 1.39 111.81 41.90 UnitedRentals URI ... 16 107.05 0.62 52.68 37.07 US Bancorp USB 2.2 16 51.69 X 0.6 dd 32.70 -0.94 39.14 6.15 US Steel 0.55 112.83 83.39 UnitedTech UTX 2.4 73 110.22 1.10 164.00 107.79 UnitedHealth UNH 1.5 24 161.80 5.91 139.77 99.72 UniversalHealthB UHS 0.4 16 112.67 s 1.96 45.47 23.99 UnumGroup UNM 1.8 12 44.79 VER 6.3 dd 8.67 2.48 11.09 6.68 VEREIT

0.03 0.63 0.41 0.44 -0.34 0.30 0.11 0.15 -0.20 0.49 0.14 0.13 0.23 0.15 0.20 -0.02 0.15 0.01 0.57 0.06 0.84 0.16 0.76 0.23 -0.34 0.07 0.10 0.88 -0.13 0.08 0.48 0.19 -0.12 0.07 0.39 0.46 0.11 0.31 -0.08 ...

0.15 0.60 -1.06 0.10 0.64 0.16 0.06 1.69 -0.20 -0.01 ...

-0.25 0.31 -1.07 0.47 0.03 -0.28 0.32 0.10 1.24 -0.05 1.37 0.29 0.48 1.41 0.01 -0.22 0.74 0.17 0.31 -1.37 -0.36 0.56 0.30 0.08 0.09 -0.13 -0.78 0.30 0.39 -0.30 0.25 -0.15 -0.36 -0.30 -0.34 -0.04 -0.11 0.55 0.32 0.33 0.51 0.26 -0.12 -0.60 -0.56 0.27 0.20 -0.05

YTD 52-Week % Chg Hi Lo Stock

t -3.79 67.10 51.08 VF VFC 3.3 20 51.33 V 0.8 29 81.17 4.04 83.96 66.12 Visa 2.31 169.98 114.86 VailResorts MTN 2.0 43 165.04 s 25.72 9.73 2.13 Vale VALE ... dd 9.58 5.58 101.40 13.00 ValeantPharm VRX ... dd 15.33 -2.82 71.40 46.88 ValeroEnergy VLO 3.6 14 66.39 VAL 1.4 25 107.50 3.75 108.97 72.98 Valspar VNTV ... 46 62.60 5.00 62.77 42.01 Vantiv 1.00 106.69 73.18 VarianMed VAR ... 22 90.68 VEDL 1.5 dd 13.98 12.56 14.40 3.52 Vedanta 9.36 47.95 19.97 VeevaSystems VEEV ... 98 44.51 VTR 5.0 40 61.60 -1.47 76.80 46.87 Ventas VZ 4.4 15 52.55 -1.55 56.95 43.79 Verizon 1.23 44.95 20.31 VermilionEnergy VET 4.6 dd 42.69 VIPS ... 25 11.05 0.36 17.41 10.21 Vipshop VMW ... 31 82.01 4.17 83.00 43.25 VMware -0.08 108.69 78.91 VornadoRealty VNO 2.4 57 104.29 3.37 41.17 22.75 VoyaFinancial VOYA 0.1 dd 40.54 -0.60 138.18 78.83 VulcanMaterials VMC 0.6 45 124.40 WBC ... 30 105.69 -0.43 115.15 81.66 WABCO 0.15 66.10 52.01 EWEC Energy WEC 3.5 20 58.74 3.03 72.89 51.12 W.P.Carey WPC 6.5 33 60.88 WAB 0.5 22 85.92 3.49 89.18 60.28 Wabtec WMT 3.0 15 67.13 -2.88 75.19 60.20 Wal-Mart 2.39 81.98 48.58 WasteConnections WCN 0.9 40 80.47 -1.58 71.78 50.36 WasteMgt WM 2.3 28 69.79 WAT ... 23 141.32 5.16 162.53 112.00 Waters WSO 2.8 30 150.45 1.57 159.55 106.58 Watsco 5.41 8.49 3.73 WeatherfordIntl WFT ... dd 5.26 s 6.35 147.23 69.16 WellCareHealth WCG ... 31 145.78 0.36 58.02 43.55 WellsFargo WFC 2.7 14 55.31 -0.40 80.19 52.80 Welltower HCN 5.2 39 66.66 1.23 88.30 53.88 WestPharmSvcs WST 0.6 46 85.87 -2.38 57.50 40.01 WestarEnergy WR 2.8 24 55.01 3.57 46.38 19.21 WesternGasEquity WGP 4.1 43 43.86 1.48 61.68 25.40 WesternGasPtrs WES 5.7 dd 59.63 2.07 22.70 16.02 WesternUnion WU 2.9 13 22.17 7.59 61.53 39.48 WestlakeChem WLK 1.3 19 60.24 6.05 25.32 19.83 WestpacBanking WBK 5.4 16 24.90 3.11 53.56 26.82 WestRock WRK 3.1 dd 52.35 1.83 33.28 22.06 Weyerhaeuser WY 4.0 45 30.64 WHR 2.2 16 184.77 1.65 194.10 123.60 Whirlpool -0.29 56.82 31.40 WhiteWaveFoods WWAV ... 50 55.44 WMB 2.8 dd 28.56 -8.29 32.69 10.22 Williams 6.44 40.75 12.69 WilliamsPartners WPZ 8.4 dd 40.48 WIT 0.3 19 9.76 0.83 13.08 9.09 Wipro 1.56 36.00 19.99 WooriBank WF 3.9 7 32.50 WDAY ... dd 80.89 22.39 93.35 47.32 Workday 1.22 81.08 60.59 Wyndham WYN 2.6 15 77.30 -0.12 45.42 35.91 XcelEnergy XEL 3.3 19 40.65 XRX 2.9 11 7.05 22.61 7.50 5.59 Xerox -1.53 54.99 31.67 Xylem XYL 1.3 27 48.76 29.27 22.22 12.67 YPF YPF 1.4 dd 21.33 9.28 8.09 3.66 YanzhouCoal YZC 0.2 49 7.30 2.10 66.15 46.44 YumBrands YUM 1.9 16 64.66 -0.57 30.37 23.79 YumChina YUMC ... ... 25.97 6.38 18.45 12.01 ZTO Express ZTO ... 31 12.84 -2.80 35.65 19.59 ZayoGroup ZAYO ... dd 31.94 11.63 133.21 88.27 ZimmerBiomet ZBH 0.8 90 115.20 ZTS 0.8 39 53.74 0.39 54.72 38.26 Zoetis

-0.50 -0.20 3.54 0.14 -0.30 -0.13 0.73 0.10 0.53 -0.13 0.71 0.12 -0.13 0.33 0.05 0.23 -0.28 0.63 1.86 -0.96 0.04 0.01 0.89 -0.84 0.52 -0.10 2.97 3.17 -0.01 1.19 0.81 -0.19 -0.01 0.06 0.58 1.28 0.05 0.20 -0.27 0.14 0.07 0.91 -0.03 -0.14 0.19 -0.05 -0.19 0.77 0.54 -0.20 0.11 0.46 0.55 0.25 ...

-0.02 -0.42 0.64 0.77 0.35

NASDAQ 3.92 20.43 15.69 AGNC Invt AGNC 11.5 41 18.84 ANSS ... 32 94.03 1.67 98.99 80.51 Ansys -1.39 31.52 20.05 ARRIS Intl ARRS ... dd 29.71 s 2.76 115.54 77.17 ASML ASML 1.0 ... 115.30 7.86 45.55 26.49 ActivisionBliz ATVI 0.7 88 38.95 5.42 111.09 71.27 AdobeSystems ADBE ... 47 108.53 5.01 71.64 39.43 AkamaiTech AKAM ... 40 70.02 11.92 163.77 109.12 AlexionPharm ALXN ... 84 136.93 ALGN ... 41 96.01 -0.12 102.10 57.31 AlignTech ALKS ... dd 55.46 -0.22 63.69 27.14 Alkermes 4.86 839.00 672.66 Alphabet A GOOGL ... 30 830.94 4.67 816.68 663.06 Alphabet C GOOG ... 30 807.88 8.97 847.21 474.00 Amazon.com AMZN ...187 817.14 DOX 1.3 22 59.42 2.01 61.33 50.05 Amdocs UHAL ... 16 369.09 -0.14 399.16 305.66 Amerco 2.06 50.64 24.85 AmericanAirlines AAL 0.8 5 47.65 AMGN 2.9 16 156.12 6.78 176.85 133.64 Amgen 0.07 74.87 47.24 AnalogDevices ADI 2.3 26 72.67 AAPL 1.9 14 119.04 2.78 119.93 89.47 Apple s 4.71 33.90 15.44 AppliedMaterials AMAT 1.2 22 33.79 0.85 88.41 59.83 ArchCapital ACGL ... 17 87.02 TEAM ... dd 26.91 11.75 35.16 16.92 Atlassian ADSK ... dd 81.32 9.88 83.08 41.60 Autodesk s 0.96 104.09 76.65 ADP ADP 2.2 31 103.77 1.61 61.50 36.38 B/EAerospace BEAV 1.4 19 61.16 BOKF 2.1 23 83.50 0.55 85.00 44.13 BOK Fin BIDU ... 12 176.48 7.34 201.00 139.61 Baidu 1.65 54.92 33.51 BankofOzarks OZRK 1.3 22 53.46 BBBY 1.2 9 40.92 0.69 52.71 38.60 BedBath BIIB ... 16 284.75 0.41 333.65 223.02 Biogen 4.93 102.49 62.12 BioMarinPharm BMRN ... dd 86.92 5.52 8.46 6.23 BlackBerry BBRY ... dd 7.27 2.08 183.99 114.25 Broadcom AVGO 2.3 dd 180.45 CA 3.1 17 33.09 4.15 34.99 25.18 CA 1.53 77.29 58.43 CBOE Holdings CBOE 1.3 32 75.02 1.61 61.25 39.67 CDK Global CDK 0.9 37 60.65 CDW 1.2 22 53.22 2.17 55.47 30.40 CDW

THE NEW LANDSCAPE The election victory of Donald Trump in the U.S. and Britain’s vote to leave the E.U. capped a momentous year in which voters in the West voiced strong opposition to the forces of globalization.

As the World Economic Forum gathers in Davos, WSJ explores the opportunities and dangers in the new political landscape.

Don’t miss our Special Report in Tuesday’s paper.

Yld Net Sym % PE Last Chg

-0.03 0.14 0.52 0.53 -0.18 -0.06 0.09 -0.42 0.46 0.81 1.41 1.52 3.50 0.68 1.53 -0.45 0.76 0.45 -0.21 0.48 -0.13 0.10 0.67 -0.03 -0.11 0.90 -1.09 1.42 0.03 -3.02 0.76 0.04 1.59 0.03 1.19 0.35 0.48

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

0.16 77.89 61.84 CH Robinson CHRW 2.5 20 73.38 1.32 124.01 81.87 CME Group CME 2.1 27 116.87 s 7.99 38.82 21.32 CSX CSX 1.9 22 38.80 3.37 28.00 18.32 CadenceDesign CDNS ... 31 26.07 CELG ... 44 117.48 1.49 127.00 93.05 Celgene CERN ... 27 51.35 8.40 67.50 47.01 Cerner 3.65 300.15 172.67 CharterComms CHTR ... 23 298.43 s 7.40 92.23 71.64 CheckPointSftw CHKP ... 23 90.71 -7.51 79.60 53.64 CincinnatiFin CINF 2.7 18 70.06 CTAS 1.2 25 114.56 -0.87 122.21 80.00 Cintas -0.50 31.95 22.46 CiscoSystems CSCO 3.5 14 30.07 2.79 92.40 60.91 CitrixSystems CTXS ... 31 91.80 s 4.24 66.52 29.00 Cognex CGNX 0.5 70 66.32 0.87 63.43 45.44 CognizantTech CTSH ... 22 56.52 s 5.39 72.94 52.34 Comcast A CMCSA 1.5 21 72.77 0.19 59.22 35.66 CommerceBcshrs CBSH 1.6 23 57.92 -0.62 38.00 19.37 CommScope COMM ... 79 36.97 s 3.59 57.58 32.26 Copart CPRT ... 18 57.40 6.70 224.79 146.53 CoStarGroup CSGP ... 83 201.11 COST 1.1 29 161.86 1.09 169.59 138.57 Costco CTRP ... dd 43.53 8.82 49.62 35.50 Ctrip.com s 7.49 62.97 38.85 DISH Network DISH ... 30 62.27 0.16 65.83 53.43 DentsplySirona XRAY 0.5 30 57.82 42.60 96.38 47.92 DexCom DXCM ... dd 85.13 0.30 113.23 56.59 DiamondbackEner FANG ... dd 101.36 -0.04 29.75 23.66 DiscoveryComm A DISCA ... 15 27.40 0.15 28.91 22.43 DiscoveryComm C DISCK ... 15 26.82 -0.06 99.93 72.52 DollarTree DLTR ... 23 77.13 DNKN 2.3 37 51.84 -1.14 56.13 36.44 Dunkin' s 6.58 37.39 19.61 E*TRADE ETFC ... 20 36.93 s 0.73 52.40 27.25 EastWestBancorp EWBC 1.6 18 51.20 EBAY ... 20 30.29 2.02 33.19 21.52 eBay 2.02 86.07 53.01 ElectronicArts EA ... 20 80.35 EQIX 1.9369 374.95 4.91 391.07 255.45 Equinix ERIC 7.7 16 5.92 1.54 10.20 4.83 Ericsson s 24.14 19.30 3.55 Exelixis EXEL ... dd 18.51 EXPE 0.9106 118.81 4.88 133.55 88.40 Expedia 1.72 56.37 40.41 ExpeditorsIntl EXPD 1.5 23 53.87 4.38 80.02 64.46 ExpressScripts ESRX ... 17 71.80 -0.93 148.34 86.03 F5Networks FFIV ... 27 143.37 FB ... 50 128.34 11.55 133.50 89.37 Facebook FAST 2.5 28 48.05 2.28 49.99 35.10 Fastenal 1.19 27.88 13.84 FifthThirdBncp FITB 2.1 12 27.29 FISV ... 28 110.30 3.78 111.51 86.02 Fiserv FLEX ... 26 14.67 2.09 15.09 8.85 Flex FTNT ... ... 32.29 7.20 37.48 23.16 Fortinet 0.49 35.98 24.21 Gaming&Leisure GLPI 7.8 23 30.77 GRMN 4.2 18 48.52 0.06 56.19 30.93 Garmin s 6.09 20.89 12.93 Gentex GNTX 1.7 17 20.89 2.04 103.10 70.83 GileadSciences GILD 2.6 7 73.07 GT 1.3 26 30.74 -0.42 33.36 24.31 Goodyear GRFS 2.3 20 16.89 5.10 17.40 14.07 Grifols -1.51 44.20 21.26 HDSupply HDS ... 8 41.87 HAS 2.4 20 83.86 7.80 88.53 67.20 Hasbro 4.84 183.00 142.64 HenrySchein HSIC ... 26 159.05 HOLX ... 35 40.18 0.15 41.01 31.84 Hologic -0.35 32.46 20.69 HospitalityProp HPT 6.4 41 31.63 JBHT 0.9 26 99.28 2.28 102.38 63.58 JBHunt s 1.89 13.67 7.83 HuntingtonBcshs HBAN 2.4 19 13.47 s 9.51 71.46 38.82 IAC/InterActive IAC ... dd 70.95 IDXX ... 51 120.80 3.01 121.81 63.48 IdexxLab 4.57 37.85 26.01 IHSMarkit INFO ... 57 37.03 1.46 102.90 73.55 IPG Photonics IPGP ... 22 100.15 1.20 67.63 42.50 IcahnEnterprises IEP 9.9 dd 60.64 ILMN ... 54 162.57 26.97 186.88 119.37 Illumina INCY ...151 117.75 17.43 121.18 55.00 Incyte INTC 2.8 17 36.79 1.43 38.36 27.68 Intel INTU 1.2 38 117.10 2.17 118.66 88.17 Intuit 4.82 727.25 502.01 IntuitiveSurgical ISRG ... 36 664.71 0.54 57.00 19.59 IonisPharma IONS ... dd 48.09 JD ... dd 26.84 5.50 30.01 19.51 JD.com 1.98 91.34 73.19 JackHenry JKHY 1.2 28 90.54 7.59 160.00 95.80 JazzPharma JAZZ ... 21 117.30 JBLU ... 10 21.76 -2.94 23.67 14.76 JetBlue 3.51 83.23 62.33 KLA Tencor KLAC 2.7 16 81.44 -0.33 90.54 68.18 KraftHeinz KHC 2.8 38 87.03 LKQ ... 21 31.80 3.75 36.35 23.95 LKQ s 4.55 111.10 63.10 LamResearch LRCX 1.6 22 110.54 s 7.60 72.91 49.73 LamarAdvertising LAMR 4.2 24 72.35 3.48 75.47 42.03 LibertyBroadbandA LBRDA ... 13 74.98 s 3.16 76.58 41.30 LibertyBroadbandC LBRDK ... 13 76.41 s 14.35 35.45 26.16 LibertyGlobal A LBTYA ... dd 34.98 s 13.10 33.87 25.86 LibertyGlobal C LBTYK ... dd 33.59 3.14 42.63 19.10 LibertyLiLAC A LILA ... dd 22.65 3.21 44.95 19.33 LibertyLiLAC C LILAK ... dd 21.85 0.54 27.49 17.77 LibertyQVC B QVCB ... 11 20.36 -4.00 27.25 17.88 LibertyQVC A QVCA ... 10 19.18 7.92 42.69 32.35 LibertyVenturesA LVNTA ... 12 39.79 s 5.80 81.33 45.54 LincolnElectric LECO 1.7 29 81.12 0.03 64.42 37.33 LinearTech LLTC 2.1 31 62.37 LULU ... 33 67.92 4.51 81.81 52.90 lululemon 6.76 178.21 98.00 MarketAxess MKTX 0.7 50 156.85 MAR 1.5 29 82.64 -0.05 86.15 56.43 Marriott 4.33 14.99 7.40 MarvellTech MRVL 1.7 69 14.47 MAT 5.1 28 29.52 7.15 34.76 23.85 Mattel 7.52 42.37 30.28 MaximIntProducts MXIM 3.2 27 41.47 8.68 20.00 11.90 MelcoCrownEnt MPEL 0.9 76 17.28 13.01 193.58 84.19 MercadoLibre MELI 0.3 63 176.45 3.41 66.81 39.01 MicrochipTech MCHP 2.2332 66.34

-0.06 0.44 0.42 0.13 0.40 0.04 1.24 1.52 0.15 0.16 0.03 0.70 1.15 -0.47 1.35 0.64 0.23 0.56 3.41 -0.01 0.17 -0.01 0.82 17.52 -2.21 0.20 0.17 -0.40 0.42 0.21 0.86 -0.06 0.75 0.80 0.04 -0.31 0.80 0.34 -0.06 0.38 1.72 0.05 0.38 0.88 0.24 0.44 -0.14 0.15 0.33 -0.29 0.15 0.25 -0.88 0.41 1.92 0.01 0.29 0.23 0.15 1.02 0.16 0.23 0.93 -0.84 -0.27 0.20 0.08 0.06 -0.17 -1.45 0.23 1.27 -0.25 -0.06 1.34 -0.39 0.16 2.37 0.48 0.48 0.57 0.06 0.19 0.27 0.30 0.09 -0.07 0.16 1.18 0.10 -0.70 0.50 0.75 0.05 -0.07 1.00 -0.04 3.26 -0.14

YTD 52-Week % Chg Hi Lo Stock

Yld Net Sym % PE Last Chg

1.19 23.64 9.31 MicronTech MU ... dd 22.18 4.26 57.97 29.00 Microsemi MSCC ... dd 56.27 MSFT 2.5 30 62.70 0.90 64.10 48.03 Microsoft MIDD ... 30 134.95 4.77 143.60 79.11 Middleby MDLZ 1.7 87 44.60 0.61 46.40 35.88 Mondelez 0.38 55.50 37.69 MonsterBeverage MNST ... 40 44.51 MYL ... 72 36.73 -3.72 54.23 33.60 Mylan NXPI ... 38 98.38 0.38 107.54 61.61 NXP Semi NDAQ 1.9 24 67.71 0.88 71.92 55.27 Nasdaq NTAP 2.1 33 35.93 1.87 39.00 20.66 NetApp NTES 1.3 20 237.68 10.37 272.58 129.60 Netease s 8.00 133.93 79.95 Netflix NFLX ...361 133.70 5.15 14.68 10.21 NewsCorp A NWSA 1.7 dd 12.05 5.51 15.22 10.73 NewsCorp B NWS 1.6 dd 12.45 NDSN 1.0 24 113.56 1.35 116.01 51.89 Nordson s 1.28 91.14 54.38 NorthernTrust NTRS 1.7 22 90.19 5.69 55.59 34.16 NorwegianCruise NCLH ... 17 44.95 NVDA 0.5 54 103.43 -3.10 119.93 24.75 NVIDIA -1.61 12.15 7.12 OPKOHealth OPK ... dd 9.15 0.27 292.84 225.12 OReillyAuto ORLY ... 27 279.15 2.84 91.69 48.92 OldDomFreight ODFL ... 25 88.23 ON ... 45 13.47 5.56 13.62 6.97 ON Semi OTEX 1.4 7 64.19 3.85 66.84 41.93 OpenText PTC ... dd 49.23 6.40 49.93 27.06 PTC PCAR 1.4 41 67.52 5.67 68.50 43.46 Paccar s 1.78 56.46 29.05 PacWestBancorp PACW 3.6 20 55.41 PAYX 3.0 29 61.47 0.97 62.18 45.76 Paychex PYPL ... 36 41.60 5.40 44.52 30.52 PayPal 1.55 20.13 13.62 People'sUtdFin PBCT 3.5 22 19.66 PCLN ... 39 1545.82 5.44 1600.93 954.02 Priceline QGEN ... 57 28.35 1.18 28.98 19.94 Qiagen QRVO ... dd 58.57 11.08 64.80 33.30 Qorvo 2.58 71.62 42.24 Qualcomm QCOM 3.2 18 66.88 7.28 126.55 60.14 RandgoldRscs GOLD 0.8 38 81.90 0.29 484.57 325.35 RegenPharm REGN ... 55 368.16 2.03 69.81 50.42 RossStores ROST 0.8 25 66.93 RYAAY ... 14 83.95 0.83 89.67 66.09 Ryanair 2.24 118.57 82.80 SBA Comm SBAC ...130 105.57 4.66 52.54 32.01 SEI Investments SEIC 1.1 26 51.66 9.90 34.19 23.61 SS&C Tech SSNC 0.8 74 31.43 s 2.87 180.48 77.87 SVB Fin SIVB ... 25 176.59 SABR 2.1 21 25.14 0.76 29.76 22.03 Sabre s 5.49 75.84 52.00 ScrippsNetworks SNI 1.3 12 75.29 STX 6.8 29 36.90 -3.33 41.45 18.42 Seagate 12.03 75.36 26.02 SeattleGenetics SGEN ... dd 59.12 SHPG 0.2112 170.22 -0.09 209.22 147.60 Shire 1.67 157.46 113.53 SignatureBank SBNY ... 21 152.71 SIRI ... 35 4.61 3.60 4.67 3.29 SiriusXM SWKS 1.4 15 78.33 4.92 82.28 54.50 Skyworks SPLK ... dd 56.42 10.30 65.75 29.85 Splunk SPLS 5.2 dd 9.17 1.33 11.37 7.24 Staples 4.20 61.78 50.84 Starbucks SBUX 1.7 30 57.85 0.70 40.17 15.32 SteelDynamics STLD 1.6 81 35.83 SRCL ... 29 79.66 3.40 128.94 71.52 Stericycle s 9.42 26.18 16.14 Symantec SYMC 1.1 8 26.14 SNPS ... 35 61.34 4.21 62.00 39.26 Synopsys s 7.48 47.41 24.88 TD Ameritrade AMTD 1.5 30 46.86 s 16.31 157.77 29.51 TESARO TSRO ... dd 156.41 TFSL 2.6 67 18.88 -0.84 19.89 15.58 TFS Fin -0.56 59.46 33.23 T-MobileUS TMUS ... 36 57.19 -2.10 79.00 62.97 TRowePrice TROW 2.9 17 73.68 11.26 269.34 141.05 TeslaMotors TSLA ... dd 237.75 s 2.78 75.30 46.73 TexasInstruments TXN 2.7 24 75.00 0.32 97.25 61.50 TractorSupply TSCO 1.3 24 76.05 TRMB ... 67 30.95 2.65 31.11 18.36 Trimble 14.13 72.46 45.63 TripAdvisor TRIP ... 66 52.92 7.10 31.25 22.66 21stCenturyFoxA FOXA 1.2 20 30.03 7.34 31.16 22.65 21stCenturyFoxB FOX 1.2 19 29.25 ULTA ... 44 261.40 2.53 278.63 146.77 UltaSalon 10.30 224.07 148.26 UltimateSoftware ULTI ...335 201.14 4.73 153.07 97.52 UnitedTherap UTHR ... 10 150.22 s 32.92 91.58 44.00 VCA WOOF ... 32 91.25 VRSN ... 24 80.80 6.22 91.99 70.26 VeriSign 1.80 86.00 64.79 VeriskAnalytics VRSK ... 24 82.63 12.90 103.73 71.46 VertxPharm VRTX ... dd 83.17 VIA 1.9 12 42.80 11.17 50.81 33.88 Viacom A VIAB 2.1 11 38.70 10.26 47.47 30.11 Viacom B 3.12 4.51 2.71 VimpelCom VIP 0.9 9 3.97 VOD 7.7 dd 26.53 8.60 34.70 24.17 Vodafone WPPGY 2.1 24 114.56 3.52 121.55 95.67 WPP 1.28 102.82 71.50 WalgreensBoots WBA 1.8 22 83.82 WB ...128 47.69 17.46 55.93 12.09 Weibo 4.49 72.56 34.99 WesternDigital WDC 2.8 dd 71.00 -0.26 35.58 27.67 WholeFoods WFM 1.8 20 30.68 2.00 133.40 104.11 WillisTwrsWatson WLTW 1.5 74 124.73 4.65 109.50 52.05 WynnResorts WYNN 2.2 43 90.53 XLNX 2.3 26 58.51 -3.08 62.24 40.44 Xilinx YHOO ... dd 42.27 9.31 44.92 26.15 Yahoo YNDX ... 55 21.50 6.81 23.87 11.00 Yandex ZG ... dd 38.00 4.25 39.99 16.45 Zillow A Z 3.02 39.88 15.36 Zillow C ... dd 37.57 1.88 44.33 19.65 ZionsBancorp ZION 0.7 24 43.85

-0.13 0.31 0.09 3.08 -0.29 1.40 -0.04 0.08 0.31 0.12 2.25 4.52 0.03 ...

1.30 0.40 -0.40 -0.01 -0.04 -2.43 1.23 0.04 0.03 -0.08 1.19 0.88 0.13 0.04 0.21 7.23 0.02 1.73 0.76 0.12 3.72 0.34 -0.22 0.45 0.36 ...

2.08 0.18 -0.11 0.15 0.26 1.49 1.89 0.03 1.58 0.09 -0.08 -0.18 0.09 0.13 0.44 0.46 0.12 9.43 0.14 0.04 0.15 8.16 0.15 0.10 0.36 1.04 0.22 0.17 0.45 2.92 3.15 0.25 -0.20 0.31 0.78 0.55 0.17 -0.02 -0.12 0.14 -0.10 1.54 0.25 0.16 -1.00 -1.41 0.48 0.16 0.19 0.71 0.64 0.88

NYSE MKT 2.25 131.34 4.88 46.00 -2.19 31.49 0.49 23.08 -1.12 36.85

99.81 BritishAmTob BTI 2.3 17 115.21 22.80 CheniereEnergy LNG ... dd 43.45 19.22 CheniereEnerPtrs CQP 6.0 dd 28.19 12.04 CheniereEnHldgs CQH 0.4281 22.48 25.55 ImperialOil IMO 1.3 35 34.37

0.30 -0.03 0.08 0.01 -0.06

© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ4815

Continued From Page B4

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B6 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* ***

MARKETS DIGEST EQUITIES Dow Jones Industrial Average

S&P 500 Index Last Year ago

19885.73 t 5.27, or 0.03% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio * 21.68 15.15 P/E estimate * 18.62 15.12 Dividend yield 2.41 2.78 All-time high 19974.62, 12/20/16

Nasdaq Composite Index Last

2274.64 s 4.20, or 0.18% High, low, open and close for each trading day of the past three months.

Year ago

Trailing P/E ratio * 24.97 21.04 P/E estimate * 17.55 15.65 Dividend yield 2.06 2.27 All-time high: 2276.98, 01/06/17

Last Year ago

5574.12 s 26.63, or 0.48% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio * 25.05 21.62 P/E estimate * 18.88 17.45 Dividend yield 1.20 1.25 All-time high: 5574.12, 01/13/17

Current divisor 0.14602128057775 20000

2280

5580

19600

2245

5480

19200

2210

5380

18800

2175

5280

2140

5180

Session high t

DOWN Session open

t

Close

UP Close Open

Session low

65-day moving average

18400 65-day moving average 18000

65-day moving average

2105

5080

Bars measure the point change from session's open 17600 Oct.

Nov.

Dec.

4980

2070

Jan.

Oct.

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 Utility Average Total Stock Market Barron's 400

19952.03 19849.38 19885.73

-5.27

9221.95

9152.02

9202.34

57.87

24.4

0.6

6.9

6625.53

37.6

1.8

7.7

Most-active issues in late trading

723.51

578.66

12.7

-0.4

10.3

23671.28 18663.11 613.94 446.15

22.7 31.5

1.7 1.4

7.3 6.7

52-Week Low

% chg

658.19

652.41

656.78

-0.99

23712.33 23636.65 23670.47 611.51 607.40 610.22

63.67 4.84

Nasdaq Stock Market Nasdaq Composite 5584.26 Nasdaq 100 5066.95

5557.20 5045.92

5574.12 5059.51

19974.62 15660.18 0.63

-0.15 0.27 0.80

26.63 18.08

0.48 0.36

Standard & Poor's 500 Index

2278.68

2271.51

2274.64

4.20

YTD

% chg 3-yr. ann.

MidCap 400 SmallCap 600

1692.06 842.44

1681.30 835.38

1687.40 839.86

9.11 6.57

0.54

Other Indexes Russell 2000

1376.17

1361.38

1372.05

10.98

11244.32 11212.08 11227.17

23.02

5574.12 5059.51

4266.84 3947.80

3.5 4.0

24.2 22.2

10.7 12.9

2276.98

1829.08

21.0

1.6

7.7

0.79

1696.12 857.50

1238.82 588.26

32.9 38.0

1.6 0.2

8.3 8.9

0.81

1388.07

953.72

36.2

1.1

6.1

0.18

11247.69

9029.88

20.7

1.5

3.1

515.08

511.40

514.03

2.63

0.51

518.98

383.82

29.1

1.6

2.2

NYSE Arca Biotech

3286.22

3242.77

3251.25

7.79

0.24

3477.87

2642.53

1.5

5.7

10.2

NYSE Arca Pharma

0.27

NYSE Composite Value Line

0.21

Volume, Advancers, Decliners

9421.08

High

-0.03

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

Company

Volume (000)

Symbol

SPDR S&P 500

Last

Net chg

13,563.5 227.20

SPY

NYSE

After Hours % chg High

0.15

Low

0.07 227.32 226.59

FTI FMC Technologies Finl Select Sector SPDR XLF

7,467.3

35.85

…

unch.

35.94

35.68

6,977.4

23.48

-0.03

-0.13

23.56

23.48

Hess Corp

HES

4,786.2

58.86

-0.03

-0.05

59.03

58.78

Bank of America

BAC

3,125.5

23.00

-0.01

-0.04

23.12

22.98

Cognizant Tech Solutions CTSH

2,567.6

56.52

…

unch.

56.62

56.48

Alibaba Group Holding ADR BABA

2,526.9

96.22

-0.05

-0.05

96.56

95.92

PwrShrs QQQ Tr Series 1 QQQ

2,239.0 123.30

0.14

0.11 123.32 123.13

Percentage gainers…

Diamond Offshore

DO

8.1

19.59

0.93

4.98

19.59

18.58

Park Hotels Resorts

PK

89.3

30.10

1.01

3.47

30.10

29.05

TherapeuticsMD

TXMD

10.3

6.00

0.18

3.09

6.00

5.82

Diana Containerships

DCIX

11.6

3.05

0.09

3.04

3.08

2.91

Adtran

ADTN

6.4

22.90

0.65

2.92

22.90

22.25

...And losers

487.41

484.28

485.71

1.28

554.66

463.78

-4.0

0.9

0.8

KBW Bank

94.23

92.59

0.81

0.87

93.71

56.51

46.3

1.4

PHLX§ Gold/Silver

93.11

10.1

Sanchez Energy

SN

58.9

10.71

-0.53

-4.71

11.34

10.71

87.27

84.38

0.81

0.94

112.86

38.84 110.2

10.4

-0.8

Vonage Holdings

VG

PHLX§ Oil Service

87.04

13.3

7.52

-0.31

-3.96

7.83

7.52

188.13

185.52

PHLX§ Semiconductor CBOE Volatility

185.56

-2.56 -1.36

Kratos Defense Sec Sols KTOS

5.1

7.50

-0.30

-3.85

7.93

7.50

926.76 11.62

918.91 10.94

924.67 11.23

6.51 -0.31

Hovnanian Enterprises A HOV

26.8

2.20

-0.08

-3.51

2.28

2.20

1,000.0

4.52

-0.14

-3.00

4.52

4.52

0.71 -2.69

Philadelphia Stock Exchange

128.61

939.21 28.14

559.18 61.0 11.23 -58.4

1.0 -12.0

36.1

2.0 -20.0

20.6 -5.4

GeoPark

GPRK

Sources: SIX Financial Information; WSJ Market Data Group

International Stock Indexes Region/Country Index

Close

Percentage Gainers...

Latest % chg

Net chg

World

The Global Dow 2598.07 The Global Dow Euro 2302.44 DJ Global Index 333.56 DJ Global ex U.S. 220.20

7.49 12.78 0.77 0.50

Americas Brazil Canada Mexico Chile

DJ Americas 550.55 Sao Paulo Bovespa 63651.52 S&P/TSX Comp 15497.28 IPC All-Share 46182.43 Santiago IPSA 3283.82

1.31 –302.41 79.12 121.45 –1.58

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

365.94 354.57 3634.44 4922.49 11629.18 1450.06 19514.54 488.09 9511.60 536.65 8452.19 7337.81

3.43 3.87 45.59 58.52 108.14 …

357.95 5.00 104.20 5.55 77.17 45.44

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

DJ Asia-Pacific TSM 1475.49 S&P/ASX 200 5721.10 Shanghai Composite 3112.76 Hang Seng 22937.38 S&P BSE Sensex 27238.06 Nikkei Stock Avg 19287.28 Straits Times 3025.07 Kospi 2076.79 Weighted 9378.83

–2.14 –45.80 –6.52 108.36 –9.10 152.58 32.07 –10.35 –31.35

World

192.66

YTD % chg

0.29 0.56 0.23 0.23

2.6 1.9 2.3 2.9

0.24

1.9 5.7 1.4 1.2 1.9

–0.47 0.51 0.26 –0.05 0.95 1.10 1.27 1.20 0.94 Closed 1.87 1.04 1.11 1.05 0.92 0.62 –0.15 –0.79 –0.21 0.47 –0.03 0.80 1.07 –0.50 –0.33

1.3 1.2 0.8 1.2 1.3 –1.4 1.5 1.0 1.7 0.4 2.8 2.7 3.7 1.0 0.3 4.3 2.3 0.9 5.0 2.5 1.4

Company

Symbol

Globus Maritime Sanchez Energy DexCom CAI International PhotoMedex

GLBS

SenesTech Adesto Technologies TeleNav Celyad ADR Achaogen

SNES

Atlanticus Holdings Rubicon Project Textainer Group Holdings Sangamo Therapeutics Century Aluminum

ATLC

SN DXCM CAI PHMD

IOTS TNAV CYAD AKAO

RUBI TGH SGMO CENX

Symbol

Bank of America Finl Select Sector SPDR Transgenomic WPX Energy Direxion Jr Gold Bull 3X

BAC

DXN DLY GLDMNR 3x BL SPDR S&P 500 VanEck Vectors Gold Miner DryShips Advanced Micro Devices

NUGT

XLF TBIO WPX JNUG

SPY GDX DRYS AMD

52-Week Low % chg

High

7.24 4.17 135.85 11.24 2.54 29.20 85.13 17.52 25.91 13.00 1.95 17.65 2.42 0.34 16.35

23.60 0.20 1911.1 11.63 2.06 316.3 96.38 47.92 21.2 13.59 4.83 107.3 5.60 0.90 11.6

A consumer rate against its benchmark over the past year

Home Equity

6.00% Home equity loan

5.00

t

t

3.00

Prime rate

2.00 FMAM J J A S O N D J 2016

1.99% 800-367-0995

South State Bank Savannah, GA

2.24% 912-629-6500

3.07 8.59 10.15 4.40 11.52

0.34 0.95 1.05 0.45 1.16

12.55 12.43 11.54 11.39 11.20

3.54 20.37 15.98 7.60 11.61

-1.7 -40.6 2.2 -29.8 277.7

Zogenix InspireMD Tidewater 1st Constitution Bancorp GameStop Cl A

ZGNX

2.59 6.12 6.90 2.65 2.82

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

158,652 65,496 63,297 54,596 53,939

38.7 23.01 0.39 -14.8 23.51 0.56 3743.4 0.98 -12.50 675.1 13.72 -0.44 45.2 8.37 0.97

50,139 49,122 47,678 40,324 37,960

6.4 9.70 1.57 -42.9 227.05 0.23 -40.8 22.74 0.53 357.3 1.87 1.63 -22.2 10.58 -1.67

Salem Five Salem, MA

3.00% 978-745-5555

Interest rate

Federal-funds rate target 0.50-.75 0.50-.75 Prime rate* 3.75 3.75 Libor, 3-month 1.01 1.02 Money market, annual yield 0.30 0.30 Five-year CD, annual yield 1.19 1.20 30-year mortgage, fixed† 4.11 4.08 15-year mortgage, fixed† 3.32 3.29 Jumbo mortgages, $424,100-plus† 4.47 4.52 Five-year adj mortgage (ARM)† 3.64 3.58 New-car loan, 48-month 2.98 3.05 HELOC, $30,000 4.57 4.66

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 1.02 0.32 1.36 4.29 3.50 4.88 4.03 3.38 5.01

0.50 0.50 0.78 -0.12 -0.15 -0.51 -0.37 -0.31 -0.22 0.12 -0.54

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

Reis Kindred Biosciences TeleNav Media General Victory CEMP Develop Enh

REIS

Lawson Products Deutsche x Russell 1000 Telecom Italia ADR DB Base Mtls Double Lg Ooma

LAWS

35.80 3.48 228.34 181.02 31.79 12.40 278.40 1.69 12.42 1.75

2.00

0

1.00 One year ago 0.00

–6

s

Euro s

30

Yen

s

WSJ Dollar index

–12 2016

Corporate Borrowing Rates and Yields Bond total return index

Close

Yield (%) Last Week ago

52-Week High Low

Total Return (%) 52-wk 3-yr

1430.852

2.012

2.041

2.186

1.141 –0.225 3.161

10-yr Treasury, Ryan ALM 1698.855 DJ Corporate 362.597 Aggregate, Barclays Capital 1883.360 High Yield 100, Merrill Lynch 2709.947 Fixed-Rate MBS, Barclays 1939.850 Muni Master, Merrill 504.118

2.380 3.164 2.570 5.423 2.810 2.111

2.417 3.178 2.610 5.312 2.860 2.232

2.600 3.414 2.770 8.696 3.070 2.516

1.366 –5.121 3.593 2.460 5.864 4.087 1.820 2.065 2.841 5.248 17.097 3.328 1.930 0.996 2.758 1.297 0.050 3.459

749.590

5.884

5.887

7.128

5.134

Treasury, Ryan ALM

EMBI Global, J.P. Morgan

...

-45.2 198.2 -96.4 20.7

1.76 1.90 2.96 3.10 2.25

-0.24 -0.22 -0.34 -0.35 -0.25

-12.00 -10.38 -10.30 -10.14 -10.13

3.80 5.75 7.06 8.11 5.68

1.01 1.77 1.08 3.10 1.46

-16.2 -62.1 24.4 -23.1 36.4

13.70 7.33 23.70 1.41 11.58 1.44 20.85 11.27 33.72 20.10

-1.5 -85.1 -53.4 46.8 -11.3

10.35 2.61 2.56 17.45 22.73

-1.15 -10.00 -0.27 -9.38 -0.26 -9.22 -1.60 -8.40 -1.99 -8.05

KIN TNAV MEG CIZ

DEUS TI/A BDD OOMA

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

52-Week High Low

600 2,093 1,651 15,519 162

2675 2369 1947 1698 1226

19.70 6.30 8.05 18.80 29.01

6.78 9.57 15.00 -1.67 0.28

26.59 18.16 6.45 2.90 8.70 4.47 19.28 14.81 31.82 26.07

242 360 730 58 586

1182 1175 971 945 916

23.15 27.41 7.42 7.43 9.00

1.76 0.37 0.82 4.06 -2.17

25.80 15.23 28.22 22.82 9.69 5.61 8.25 3.54 9.92 5.43

CURRENCIES

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

18%

6

2.30 0.97 2.53 1.52 4.91

* 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

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

3.00

8.78 5.10 19.71 96.50 10.15

Ranked by change from 65-day average*

23.41 23.87 1.59 16.17 33.29

14.003 5.944

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 .0631 15.8460 Brazil real .3104 3.2214 Canada dollar .7625 1.3115 Chile peso .001517 659.30 Colombia peso .0003394 2946.00 Ecuador US dollar 1 1 Mexico peso .0466 21.4765 Peru new sol .2974 3.363 Uruguay peso .03481 28.7300 Venezuela b. fuerte .100150 9.9851

–0.1 –1.0 –2.4 –1.6 –1.9 unch 3.6 0.3 –2.1 –0.1

Asia-Pacific Australian dollar .7501 1.3332 –4.0 China yuan .1449 6.8998 –0.6 Hong Kong dollar .1290 7.7549 –0.01 India rupee .01467 68.181 0.3 Indonesia rupiah .0000751 13320 –1.5 Japan yen .008734 114.50 –2.1 Kazakhstan tenge .003008 332.49 –0.4 Macau pataca .1247 8.0173 1.3 Malaysia ringgit .2241 4.4625 –0.5 New Zealand dollar .7129 1.4027 –2.9 Pakistan rupee .00954 104.850 0.5 Philippines peso .0201 49.822 0.4 Singapore dollar .7002 1.4281 –1.3 South Korea won .0008511 1174.93 –2.7 Sri Lanka rupee .0066702 149.92 1.0 Taiwan dollar .03165 31.597 –2.6

Country/currency

in US$

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

.02824 35.410 –1.1 .00004419 22630 –0.6

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

.03938 25.392 .1431 6.9867 1.0645 .9395 .003463 288.78 .008776 113.95 .1176 8.5028 .2426 4.1227 .01678 59.595 .1122 8.9099 .9915 1.0086 .2685 3.7244 .0362 27.6000 1.2183 .8208

–1.1 –1.2 –1.2 –1.9 0.9 –1.6 –1.5 –2.7 –2.2 –1.0 5.7 1.9 1.3

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

2.6522 .3771 –0.03 .0534 18.7306 3.3 .2618 3.8198 –0.7 3.2732 .3055 –0.04 2.5981 .3849 –0.02 .2747 3.640 0.01 .2666 3.7506 ... .0740 13.5138 –1.3 Close Net Chg % Chg YTD%Chg

WSJ Dollar Index 91.86 –0.23–0.25 –1.16

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

GME

Symbol

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

FCCY

Company

10.99 15.86 0.15 2.53 2.05

-28.81 -19.49 -16.61 -15.25 -12.64

CADC

TDW

52-Week Low % chg

-1.76 -0.61 -2.25 -0.43 -0.92

VNCE

NSPR

High

4.35 2.52 11.30 2.39 6.36

BSPM

52-Week High Low

Forex Race

12

1 2 3 5 710 years maturity

NYSE Arca

* 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.

Latest Session Close Net chg % chg

ADHD

Volume Movers

4.00

Friday

1 3 6 month(s)

SNAK PYDS

5.00%

Union Community Bank FSB 1.99% Lancaster, PA 717-492-2222

SKLN

Payment Data Systems Alcobra Ltd. Biostar Pharmaceuticals Vince Holding China Adv Constr Matrl

t

4.00

First Citizens Bank Raleigh, NC

RYI

Currencies

4.66% 1.99% 877-842-4180

URRE

...

-41.5 51.6 -36.9 321.6

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

Bank of North Carolina High Point, NC

APOP

9.54 7.38 6.31 1.50 8.70 4.47 59.50 16.31 18.26 2.59

notes and bonds

Bankrate.com avg†:

Cellect Biotechnology ADR Uranium Resources Ryerson Holding Skyline Medical Inventure Foods

16.23 15.79 15.00 13.99 13.60

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

t

Selected rates

Symbol

1.31 0.45 1.05 2.66 2.15

CREDIT MARKETS U.S. consumer rates

Company

9.38 3.30 8.05 21.66 17.96

Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor

Nasdaq

Total volume*1,589,821,196 240,160,430 Adv. volume* 990,622,186 171,835,731 Decl. volume* 580,617,672 67,734,738 Issues traded 3,010 1,298 Advances 2,001 858 Declines 854 410 Unchanged 155 30 New highs 151 83 New lows 19 15 Closing tick 572 44 Closing Arms† 1.37 0.92 Block trades* 7,266 1,178

Percentage Losers Latest Session Close Net chg % chg

Most Active Stocks Company

NYSE MKT

Total volume* 754,240,408 11,268,717 Adv. volume* 407,246,222 8,180,704 Decl. volume* 333,133,149 2,623,034 Issues traded 3,100 338 Advances 1,855 196 Declines 1,111 119 Unchanged 134 23 New highs 133 7 New lows 9 1 Closing tick 319 64 Closing Arms† 1.30 0.66 Block trades* 5,932 152

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

578.41

1.38

194.54 52.37 3.419 1195.30

-0.43 -0.64 0.033 -3.60

0.24

% Chg

YTD % chg

578.41

420.23

35.94

1.97

-0.22 195.82 54.06 -1.21 3.93 0.97 -0.30 1364.90

155.01 26.21 1.64 1089.90

21.64 78.01 62.81 9.51

1.05 -2.51 -8.19 3.94

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | B7

* * * *

WEEKEND INVESTOR

How Taxpayers Fight, and Win, Against IRS

BITCOIN Continued from page B1 ally all investors who have retirement accounts should take a look at bitcoin in an IRA,” he says, “because its rise and fall aren’t correlated to the same factors that affect the U.S. dollar.”

Created by an anonymous coder and exchanged among a decentralized network of computers, bitcoin has no physical existence. By design, its supply is effectively finite. No government or central bank can devalue the currency by printing more of it.

Because it isn’t part of the conventional financial system, bitcoin is unlikely to move up and down in sync with the rest of your portfolio. “So, in that sense, bitcoin isn’t extremely risky,” says Campbell Harvey, a finance professor at Duke University. “If the stock market crashes, there’s no particular reason bitcoin would crash with it. The correlation could even be negative, if geopoliti-

most litigated code sections for the 12 months ended May 31. Most of the cases were in Tax Court, a specialized forum devoted to taxpayer conflicts with the IRS. A big winner in the recent survey was billionaire Sumner Redstone. A judge ruled that because Mr. Redstone relied on professional advice, he didn’t owe a penalty of up to $368,800, plus millions in interest, for a gift-tax return he should have filed in 1972.

The IRS had the upper hand in most of the cases surveyed by Ms. Olson. The agency won about threequarters of them outright, while taxpayers won only about 10% outright. The rest were split decisions.

But overall results obscure important little victories. In the largest category of cases, which involved a 20% penalty for negligence and large

underpayments, taxpayers won total or partial victories in about 30% of decisions.

Taxpayers also got good news in about one-third of cases on business expense

cal disaster increases demand for bitcoin.”

But the cryptocurrency is still wildly volatile. Its price jounces up and down as computer hackers steal bitcoins, regulators threaten to scrutinize trading, and buyers and sellers swarm into and out of the market.

In the past nine days alone, bitcoin is down more than 28%. Since January 2012, it has dropped at least 10% in a single day 38 times, says Prof.

Harvey. The U.S. stock market, by contrast, has lost more than 10% in a day only once since 1957 (on Oct. 19, 1987).

Bitcoin, says Prof. Harvey, is “at least five times more volatile than U.S. stock market indexes.”

Bitcoin’s “insane” volatility can make it problematic to hold in an IRA, says Wade Pfau, a professor of retirement income at the American College of Financial Services in Bryn Mawr, Pa. That’s because, after you retire, you go from saving into an IRA to withdrawing from it.

And if you withdraw when its

market value has fallen sharply, you lock in those losses. Running a computer simulation using bitcoin’s past returns, Prof. Pfau estimates that there’s only about a onein-10 chance that you could withdraw at least 4% of the portfolio value annually, a common standard to fund a sustainable retirement.

Because bitcoin’s price fluctuates so wildly, says Prof.

Pfau, “one cannot plan for a withdrawal rate of much more than 0%.”

Bitcoin’s volatility should decline, predicts Mr. Moy: “As its use becomes more frequent in the future, that will help stabilize the price and reduce the volatility.”

For now, this is a costly bet.

Bitcoin IRA charges a fat 15% upfront setup charge. If you put up $5,000, you pay $750 in initial fees. That covers buying the bitcoins, securing them in a digital “wallet” and arranging for a custodian to hold them, says Chief Operating Officer Chris Kline.

Taxes could trip you up, too. In a traditional IRA, any

Issues in which IRS and taxpayers often end in court: u Penalties for underpayment u Determination of gross income u Trade or business expenses u Penalties for failure to file or pay tax u Charitable deductions u Penalties for raising frivolous issues

write-offs, the fifth-largest category.

A common thread running through many decisions was record-keeping. For example, a Tax Court judge ruled that an Arizona couple with a landscaping business didn’t owe the IRS about $12,000 in penalties because they had good records showing they relied on the advice of a tax preparer.

In another case, a Missouri couple won a deduction for nearly $7,000 of car and truck expenses for a small business. While they didn’t have the written records the IRS likes to see, the judge believed their oral testimony, which was “specific and detailed.”

Careful records don’t help if a deduction simply isn’t allowed, however.

When a Maryland couple with their own company

and two children under 12 showed the Tax Court a spreadsheet listing “business expenses” for vendors such as Macy’s, Toys “R” Us, and Hair Cuttery, the judge disallowed the deductions because they were personal expenses for the benefit of the children.

Ms. Olson’s report also offered interesting details on taxpayers and their representation in court. Overall, taxpayers represented themselves in about 60% of the cases, winning about 17% of the time. By contrast, taxpayers represented by approved specialists such as lawyers won about 22% of their cases, which isn't much higher.

“If taxpayers are prepared and have good facts, good records, and good manners, it’s entirely possible for them to represent them-

selves and win,” says Harry Bergland, a CPA in Richmond, Calif., who advised a couple who represented themselves in Tax Court and won late last year.

Taxpayers in one category of cases nearly always argue on their own behalf, those fighting a penalty up to $25,000 for making frivolous arguments to the IRS. These taxpayers often lose.

In one case reviewed by Ms. Olson, the taxpayer assured a Tax Court judge that he didn’t owe the IRS $3,840 of tax and penalties for dozens of reasons, including that he was a citizen of California, not the U.S., and that he had his own definition of income. Asked to provide it, he said, “It’s a cat with a pink bow.”

After warning the taxpayer four times, the judge imposed a $3,500 penalty.

That difference, says Adam Chodorow, a professor of tax law at Arizona State University, “could swamp any tax savings you got from the initial deductions for contributing to the IRA.” You could avoid that unnecessary tax hit by holding bitcoin in a Roth IRA, from which withdrawals are tax-free. However, reports Mr. Kline of Bitcoin IRA, about 70% of inves-

tors so far have chosen to open traditional IRAs. They include Mr. Moy himself, who says he has about 5% of his retirement savings in a bitcoin traditional IRA as “an insurance plan to offset any losses on my dollar-denominated assets.”

But such insurance is a speculation in its own right. It might pay off, but you could also lose it all.

CHRISTOPHE VORLET

Are you dreaming of taking the Internal Revenue Service to court? Your chances of winning may not be as bad as you think, and it isn’t crazy to represent yourself.

These insights come from data compiled by National TaxTAX payer Advocate REPORT Nina Olson, LAURA who is charged SAUNDERS with representing taxpayer interests before the IRS and Congress. Each year, Ms. Olson publishes a deep dive into the IRS’s civil litigation as part of her annual report to Congress, which was released this past week.

This year’s report analyzes results from 609 federal tax decisions on the

growth in the value of the assets accrues tax-deferred but is taxable, when you withdraw it, at your ordinary-income rate (up to about 40%). Outside an IRA, such appreciation is taxable at capital-gain rates, which top out at nearly 24%.

So if bitcoin does skyrocket, you can end up with a much larger tax bill in a traditional IRA than if you had wagered on it in a regular account.

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

Futures Contracts | WSJ.com/commodities

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

Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb.

2.6415 2.6790 2.6410 2.6805 0.0200 Jan March 2.6670 2.7160 s 2.6420 2.6900 0.0185 Gold (CMX)-100 troy oz.; $ per troy oz.

1195.70 1196.00 1187.70 1195.30 –3.60 Jan Feb 1194.80 1201.80 1187.50 1196.20 –3.60 April 1197.70 1204.60 1190.70 1199.10 –3.80 June 1201.30 1207.00 1193.80 1202.20 –3.80 Aug 1203.50 1206.80 1200.20 1205.30 –3.80 Dec 1210.00 1215.00 1205.00 1211.30 –3.80 Palladium (NYM) - 50 troy oz.; $ per troy oz.

740.15 740.15 t 740.15 748.55 –16.10 Jan Feb 747.65 747.70 747.65 749.20 –16.10 March 759.95 759.95 744.35 749.15 –16.10 June 759.40 759.40 747.55 749.85 –16.15 Platinum (NYM)-50 troy oz.; $ per troy oz.

981.30 986.20 981.30 982.40 1.50 Jan April 981.40 990.60 968.70 986.40 1.70 Silver (CMX)-5,000 troy oz.; $ per troy oz.

16.610 16.610 16.610 16.720 –0.060 Jan March 16.805 16.855 16.610 16.765 –0.060 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.

53.05 53.17 52.27 52.37 –0.64 Feb March 53.87 54.00 53.08 53.15 –0.69 April 54.66 54.78 53.88 53.95 –0.70 May 55.36 55.51 54.61 54.68 –0.71 June 55.94 56.10 55.19 55.27 –0.72 Dec 56.94 57.13 56.24 56.36 –0.69 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.

Feb 1.6758 1.6796 1.6478 1.6514 –.0242 March 1.6839 1.6872 1.6588 1.6621 –.0219 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.

1.6158 1.6214 1.5980 1.6117 .0009 Feb March 1.6409 1.6472 1.6250 1.6373 .0002 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 3.397 3.435 3.332 3.419 .033 Feb March 3.381 3.414 3.319 3.396 .029 April 3.364 3.400 3.313 3.384 .032 May 3.375 3.398 3.313 3.381 .033 July 3.463 3.473 3.400 3.463 .035 Oct 3.429 3.473 3.397 3.462 .033

Country/ Coupon (%) Maturity, in years

1.250 2.000 5.250

0.250 0.000 0.250 0.300 1.250 0.100 0.100 0.250 1.300

Month ago

Year ago

l

1.177 2.360

1.166 2.473

0.907 2.095

l

1.831

1.782

2.008

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

U.S. 2 1.189 s 10 2.381 s

l

1.864 s 2.700 s

l

2.676

2.830

2.714

France 2 -0.593 s 10 0.810 s

l

-0.601

-0.639

-0.332

l

0.770

0.792

0.887

Germany 2 -0.716 s 10 0.342 s

l

-0.719

-0.752

-0.382

-190.6

l

0.244

0.356

0.505

-203.9

Italy 2 -0.093 s 10 1.903 s

l

-0.159

-0.124

0.007

l

1.889

1.873

1.568

Japan 2 -0.219 s 10 0.052 s

l

-0.223

-0.181

-0.030

l

0.042

0.085

Spain 2 -0.294 s 10 1.433 s

l

-0.305

l

0.176 s 1.460 s

Australia 2

4.750 0.000

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

Metal & Petroleum Futures

10

1.250

U.K. 2

4.250

10

67.5 31.8 -178.2 -157.1

-128.2

65.3

110.1

31.7

61.8

-177.8

-123.9

-159.0

-120.9

-189.6

-128.9

-211.6

-159.0

-133.6

-90.1

-47.1

-52.8

-140.0

-93.7

0.211 -232.9

-231.8

-188.4

-0.280

0.045

-148.2

-86.2

1.403

1.437

1.782

-95.6

-31.4

l

0.159

0.145

0.494

-101.9

-41.3

l

1.396

1.301

1.749

-96.4

-34.6

-47.8 -140.8 -148.3 -94.8 -101.3 -92.2

Source: Tullett Prebon

Corporate Debt 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.

Investment-grade spreads that tightened the most…

Issuer

Symbol Coupon (%)

Royal Bank of Scotland Enbridge Energy Partners OM Asset Management Morgan Stanley

RBS EEP OMAM MS

7.640 Sept. 29, ’49 8.050 Oct. 1, ’37 4.800 July 27, ’26 5.450 July 15, ’49

Anheuser–Busch Inbev Finance Shell International Finance BMW US Capital Honeywell International

ABIBB RDSALN BMW HON

3.300 2.250 2.000 3.350

Maturity

Feb. 1, ’23 Nov. 10, ’20 April 11, ’21 Dec. 1, ’23

Current

Spread*, in basis points One-day change

1346 1200 254 183

–86 –60 –30 –20

1421 1416 290 233

5.41 25.62 14.60 43.81

...

–0.58 1.25 0.41

101 64 50 80

–16 –14 –13 –13

105 n.a.

64 n.a.

... ... ...

118.07

... ... ...

0.37

11 10 10 7

n.a.

77 100 n.a.

... … …

40.93

... … …

0.52

7 7 6 5

121 83 n.a.

117

72.77 244.30 161.80 75.00

1.89 0.19 –0.34 1.09

Last week

Stock Performance Close ($) % chg

…And spreads that widened the most Daimler Finance North America JPMorgan Chase Bank NA Wells Fargo Bank NA Abbott Laboratories

DAIGR JPM WFC ABT

2.200 Oct. 30, ’21 1.650 Sept. 23, ’19 2.150 Dec. 6, ’19 5.125 April 1, ’19

89 77 96 92

Comcast Goldman Sachs UnitedHealth Cardinal Health

CMCSA GS UNH CAH

4.650 July 15, ’42 2.625 Jan. 31, ’19 1.700 Feb. 15, ’19 3.200 March 15, ’23

125 88 59 109

High-yield issues with the biggest price increases…

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

Issuer

Symbol

Peabody Energy Genon Energy Parsley Energy Sprint

BTU GENONE PARSLY S

6.000 7.875 5.375 7.625

Nov. 15, ’18 June 15, ’17 Jan. 15, ’25 Feb. 15, ’25

49.000 79.500 108.250 108.250

Syniverse Holdings Sanchez Energy Frontier Communications Endo

SVR SN FTR ENDP

9.125 6.125 8.500 6.500

Jan. 15, ’19 Jan. 15, ’23 April 15, ’20 Feb. 1, ’25

87.000 97.500 108.125 84.000

Coupon (%)

Maturity

6.00 5.75 5.00 2.75 2.75 2.50 1.88 1.63

Last week

Stock Performance Close ($) % chg

45.000 73.799 101.750 107.375

... ... ...

8.61

... ... ...

1.77

90.500 97.000 106.625 85.250

...

11.24 3.54 13.19

...

29.20 0.28 –4.90

Avaya Freeport–McMoran GameStop Weatherford International

AVYA FCX GME WFT

EMC LSC Communications Noble Holding International Altice Financing S.A.

DELL LSCCOM NE ALTICE

357.50 371.25

359.50 373.00

355.25 369.00

10.500 March 1, ’21 3.875 March 15, ’23 6.750 March 15, ’21 6.500 Aug. 1, ’36

20.750 94.250 102.000 83.850

2.650 June 1, ’20 8.750 Oct. 15, ’23 5.250 March 15, ’42 6.625 Feb. 15, ’23

96.750 105.250 71.000 105.000

–3.63 –1.63 –1.50 –1.40 –1.32 –1.00 –1.00 –0.81

29.500 96.125 102.250 84.250

...

15.19 22.73 5.26

98.250 103.500 70.000 105.375

... ... … ...

...

–0.52 –8.05 –0.19 ... ... … ...

*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

358.50 372.50

234.75 234.50

243.00 s 238.50

234.50 234.50

242.50 236.75

March May

29.20 29.19

March May

72.34 72.75

3 6 26,735 1,212

March May

184.80 181.45

10 56,911

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

229 131,228

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

89,749 108,810 76,541 127,353 107,709 272,146 115,507 100,492 60,675 86,240

1029.50 1037.50

1043.00 s 1052.75 s

1025.50 1032.50

.25 653,664 .75 209,621 6.75 2.00

5,069 1,564

322.80 326.70

330.80 s 336.80 s

...

36.01

Jan March

...

990.00

March May

426.25 439.00

March July

444.50 468.00

March May

573.25 559.00

Jan March

130.100 127.650

Feb April

117.175 116.125

Feb April

66.100 69.550

35.47 35.50

Rough Rice (CBT)-2,000 cwt.; $ per cwt. ...

994.50

...

984.00

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

426.75 440.50

419.25 432.75

Wheat (KC)-5,000 bu.; cents per bu.

449.50 s 473.00 s

441.00 464.50

583.75 s 567.50 s

571.75 557.00

Wheat (MPLS)-5,000 bu.; cents per bu.

129.350 126.775

118.750 118.000

116.625 115.800

Hogs-Lean (CME)-40,000 lbs.; cents per lb.

66.200 69.900 s

64.725 68.600

–.30 –.30

87,315 41,306

20.52 20.35

–.24 327,308 –.17 167,054

29.30 s 29.40 s

29.20 29.19

72.75 73.25

72.00 72.52

29.30 29.40

.21 .21

72.27 72.76

1,534 1,774

–.07 170,431 –.09 42,381

Orange Juice (ICE-US)-15,000 lbs.; cents per lb.

185.00 181.45

181.45 179.25

183.15 180.35

–1.35 –1.25

11,225 1,145

Interest Rate Futures March June

152-190 153-200 151-030 151-190

March June

124-280 125-100 124-085 124-150

March June

117-290 118-060 117-200 117-200

March

108-120 108-140

151-110 150-050 124-110 123-270

152-090 151-000

–10.0 615,662 –10.0 177

124-250 124-070

–3.5 3,080,186 –3.5 7,707

117-270 117-152

–2.0 2,957,747 –2.2 1,160

108-110

–.2 1,187,966

99.353 99.290

… 160,491 –.010 241,688

94.797

–.250

5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 117-185 117-080

2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 108-085

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

Jan April

99.353 99.290

March

95.141

99.353 99.300

t

99.350 99.280

10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 95.281

94.422

31,919

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

Jan

...

...

...

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

Jan March June Dec

98.9775 98.9300 98.7700 98.4950

98.9800 98.9350 98.7900 98.5200

t 98.9725 t 98.9100 t 98.7400 98.4400

99.2325

…

1,306

98.9725 98.9250 98.7650 98.4800

–.0050 –.0100 –.0100 –.0150

202,358 1,401,865 1,414,241 1,416,946

Currency Futures March June

.8733 .8768

March June

.7611 .7618

March June

1.2173 1.2191

.8777 .8813

.8679 .8724

.7635 .7639

.7599 .7609

British Pound (CME)-£62,500; $ per £

332.50 333.90

8.30 211 6.00 172,342

March June

.7473 .7455

35.37 35.60

–.48 103 –.47 200,476

March June

.04559 .04473

March June

1.0636 1.0695

965.00 –12.00 990.00 –8.00

24 10,762

426.00 439.75

–.25 257,596 .50 78,953

449.00 472.75

4.25 109,845 4.00 63,626

582.75 565.75

8.75 5.00

33,038 16,483

130.450 129.300

.125 1.550

4,864 23,486

118.525 117.925

1.050 81,913 1.450 113,555

65.600 69.625

–.350 .075

46,112 82,764

316.00 333.30

11.00 6.50

35 3,039

16.81 17.18

.02 –.16

4,494 4,311

2,213 2,195

–17 123,882 –18 59,670

.8752 .8797

.0015 201,209 .0015 8,343

.7626 .7635

.0004 .0004

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

.9925 1.0019

Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.

303.50 316.00 t 303.10 Jan March 325.70 336.80 s 325.10 Milk (CME)-200,000 lbs., cents per lb.

16.78 16.83 s 16.78 Jan Feb 17.28 17.28 17.10 Cocoa (ICE-US)-10 metric tons; $ per ton.

March 2,219 2,230 2,190 May 2,199 2,213 2,172

20.48 20.31

Cotton (ICE-US)-50,000 lbs.; cents per lb.

March June

Cattle-Feeder (CME)-50,000 lbs.; cents per lb.

130.900 129.450

20.93 20.64

1.2248 1.2278

1.2135 1.2169

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

322.10 325.00

...

36.20

149.30 151.70

Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.

10.50 342 6.00 323,614

Soybean Oil (CBT)-60,000 lbs.; cents per lb.

Jan March

147.35 149.75

Sugar-World (ICE-US)-112,000 lbs.; cents per lb.

1042.50 1046.25

Soybean Meal (CBT)-100 tons; $ per ton.

Jan March

149.90 152.25

Japanese Yen (CME)-¥12,500,000; $ per 100¥

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

Jan March

Coffee (ICE-US)-37,500 lbs.; cents per lb.

20.85 20.57

223,091 537,066 148,452 124,665 244,149 214,148

Open interest

Chg

March May

235 234,272 122,095 42,115 11,807 24,186

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

March May

Settle

149.05 151.45

1,577 147,472

Agriculture Futures March July

Contract High hilo Low

March May

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

Cattle-Live (CME)-40,000 lbs.; cents per lb.

…And with the biggest price decreases

Open Open interest

.9989 s 1.0034 s

.9909 .9974

91,478 1,885

1.2200 1.2232

.0022 228,780 .0021 831

.9939 1.0004

.0012 .0013

49,455 114

.7492 .7476

.0011 .0012

94,669 531

Australian Dollar (CME)-AUD 100,000; $ per AUD .7499 .7481

.7439 .7424

Mexican Peso (CME)-MXN 500,000; $ per MXN .04620 .04550

.04541 .04473

.04608 .00057 135,555 .04541 .00057 40,788

1.0621 1.0677

1.0668 1.0723

Euro (CME)-€125,000; $ per € 1.0702 1.0751

.0017 405,508 .0017 9,078

Index Futures Mini DJ Industrial Average (CBT)-$5 x index March June

19807 19760

19878 19812

19772

19832

t 19716 19772 S&P 500 Index (CME)-$250 x index 2264.50 2273.00 2264.80 2272.50 March June 2265.50 2267.50 2259.60 2266.70 Mini S&P 500 (CME)-$50 x index 2264.50 2273.50 2262.75 2272.50 March June 2259.00 2267.50 2255.00 2266.75 Mini S&P Midcap 400 (CME)-$100 x index March 1676.70 1692.80 1676.60 1685.60 Mini Nasdaq 100 (CME)-$20 x index 5035.3 5063.3 s 5035.3 5061.3 March June 5033.5 5062.3 s 5033.5 5060.0 Mini Russell 2000 (ICE-US)-$100 x index March 1359.00 1378.30 1358.00 1374.10 June 1368.60 1379.50 s 1368.60 1371.10 Sept 1360.20 1370.20 s 1360.20 1368.10 Mini Russell 1000 (ICE-US)-$100 x index 1260.50 1263.00 1259.10 1262.40 March U.S. Dollar Index (ICE-US)-$1,000 x index March 101.52 101.68 100.83 101.19 June 101.38 101.58 100.77 101.12

29 129,161 29 524 9.10 9.10

60,408 1,754

9.00 2,793,398 9.25 18,981 8.50

96,960

26.5 222,602 26.8 327 15.20 658,298 15.20 480 15.20 203 5.10

7,920

–.19 –.17

74,568 1,613

Source: SIX Financial Information

B8 | Saturday/Sunday, January 14 - 15, 2017

NEW HIGHS AND LOWS

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52-Wk % Sym Hi/Lo Chg Stock

Stock

52-Wk % Sym Hi/Lo Chg

PNC Fin Wt

PNC/WS 54.07 119.11 41.20 146.34 PH 8.35 PZE 81.13 PTR 11.21 PAH 75.80 PRI 11.85 PZN 75.16 RJF RYAM 16.72 14.93 RF RNR 139.23 RXNpA 52.83 8.77 RAD 82.00 ROG ROP 190.01 72.24 RY 8.23 RGT FLOW 35.82 11.63 SN SCHW 41.85 SHOP 49.43 SNA 178.57 SCCO 35.45 83.49 STT 19.19 STO 11.67 STM 40.13 SLF STI/WS/B 14.50 STI/WS/A 23.00 56.97 STI 42.48 SNV TCB/WS 3.96 TOOpA 21.94 26.69 TER 54.60 TLLP 330.13 TPL 44.55 TKR 52.04 TOT 6.10 TAC 22.52 TY 63.40 TSE 66.90 UVV 45.47 UNM 3.88 VOC 9.73 VALE 57.26 VR 54.50 VVC 7.88 VG 17.28 WNC WCG 147.23 11.63 TLI

PSB NYSE highs - 133 PSBusinessParks PampaEnergia PAM

AGCO AGCO Adient ADNT Albemarle ALB AlpineGlblDyn AGD AlpineTotDynDiv AOD AmEqtyLf AEL Anthem ANTM ApolloTactical AIF ArcLogisticsPtrs ARCX Archrock AROC ArrowElec ARW AspenIns AHL AssuredGuaranty AGO AtkoreIntl ATKR AvenueIncmCrStrat ACP BWX Tech BWXT BancoSantander SAN BankofAmerica BAC BkNovaScotia BNS BenchmarkElec BHE BlackRockFRIncm FRA Box BOX BrookfldRealAssts RA CAI Intl CAI CEB CEB CanNtlRlwy CNI CapsteadMtg CMO Chemed CHE ChinaPetrol SNP ClubCorp MYCC ColonyNrthStPfG CLNSpG ColonyNrthStPfB CLNSpB ColonyNrthStPfA CLNSpA DelekLogistics DKL DellTechnologies DVMT Dover DOV Endurance ENH EnovaIntl ENVA EvercorePtrs EVR EverestRe RE Exterran EXTN FedAgriMtg A AGM/A FirstRepBank FRC FT SrFR2022 FIV GEO Group GEO GasLog GLOG Glaukos GKOS GlobusMedical GMED GoldmanSachs GS GSMLPEnergyRen GER Greenbrier GBX HalyardHealth HYH HartfordFinl HIG HerculesCapNts19 HTGZ HillIntl HIL Hubbell HUBB Inphi IPHI IntrawestResorts SNOW JPMorganWt JPM/WS JPMorganChase JPM KAR Auction KAR KKR IncomeOpps KIO Kemet KEM Kennametal KMT KeyCorpPfdE KEYpI KeyCorp KEY Knowles KN KoninklijkePhil PHG LionsGate A LGF/A LithiaMotors LAD MPLX MPLX Manpower MAN Mastercard MA MaxLinear MXL MorganStanley MS Mosaic MOS NGL Energy NGL NexPointCreditFd NHF OutfrontMedia OUT PIMCODynamicCred PCI

61.47 61.93 94.94 9.34 7.96 23.97 149.58 15.84 16.62 15.70 74.41 56.40 39.70 25.90 13.93 41.05 5.44 23.41 59.24 31.30 14.63 17.39 22.70 13.59 77.25 71.50 10.70 166.62 78.69 17.50 25.50 25.44 25.69 34.85 58.27 81.50 92.78 14.40 74.10 222.07 32.13 63.00 94.15 10.24 39.07 17.60 41.00 27.66 247.77 7.70 49.50 39.59 48.91 25.79 5.68 119.68 48.79 20.00 46.55 88.17 45.75 16.22 7.19 36.12 26.87 18.77 17.72 30.79 28.40 104.44 36.29 93.41 109.40 24.67 44.60 31.78 22.96 23.44 26.69 20.71

0.4 2.2 0.3 0.6 0.6 3.8 0.2 0.6 ... ...

0.9 1.4 0.4 2.6 0.6 0.3 0.9 0.4 0.6 -0.5 0.7 -0.2 0.4 17.6 0.8 0.6 1.2 0.6 2.1 -3.2 1.0 0.6 0.3 -1.2 0.9 1.6 0.1 3.2 1.4 -0.2 0.8 ...

1.2 1.1 1.8 0.6 -1.2 2.5 0.2 1.1 1.8 0.9 0.2 -0.4 -0.9 1.0 1.3 10.8 0.6 0.5 0.4 0.6 5.2 2.0 0.3 1.6 1.5 0.5 -0.2 -1.6 ...

1.7 ...

4.1 0.4 -0.5 1.6 0.1 1.1 0.4

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-3.9 1.0 -1.9 6.5 -0.3 iPathS&P500VIXST VXX -5.3 DrxDevMktBear 3x DPK -1.0 DrxFinancBear 3x FAZ DirexionS&PBiotech LABD DrxTechMktBear 3x TECS iPathGBP USD Ex GBB 1.3 ProShrS MSCI EAFE EFZ 0.6 ProShrShortQQQ PSQ 0.1 ProShShtS&PRegBkg KRS 0.4 ProSharesUltVIXST UVXY 0.7 ProShUltraProShFnl FINZ 2.8 ProShrUS MSCI EAFE EFU ... ProShrUS MSCI Jpn EWV 0.3 PrShrsUShrQQQ QID 0.5 ProShsVIXSTFut VIXY 0.5 8.5 0.3 0.8 AltisourceAsset AAMC 0.7 EntreeGold EGI 0.3 FT EnerIncome FEN

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23.24 27.10 43.45 36.42 26.70 27.50 24.70 25.22 54.35 71.80 16.00 38.13 85.20 39.07 24.79

58.44 26.50 15.42 43.76 24.51 12.33 112.25 16.17 44.12 24.27 109.55 46.30 124.39 22.97 27.75 25.48 25.29 26.82 27.17 56.16 48.86 125.20 167.35 107.80 185.97 113.76 57.71 128.64 100.31 51.51 25.67 31.75 34.41 33.80 27.25 51.01 38.94 32.64 46.97 108.72 93.22 103.94 21.55 27.57 28.01 27.92 36.50 64.84 76.42 63.27 107.84 56.79 57.64 49.75 146.35 29.17 36.02 18.46 125.70 114.78 108.94 89.72 111.86 24.20 26.90 25.14 39.27 64.49

0.6 1.0 -0.1 0.4 ...

1.6 0.5 3.7 0.3 1.0 0.5 0.9 0.4 0.2 0.5 0.3 0.5 0.8 0.5 ...

0.4 0.3 0.5 0.3 0.6 0.1 0.2 0.4 0.4 0.6 1.1 0.9 1.4 0.7 0.6 0.6 0.4 0.5 0.5 -0.3 0.7 0.8 0.8 ...

0.3 ...

0.1 0.8 0.6 0.7 0.2 1.0 0.3 0.3 0.7 0.2 0.2 -0.1 0.4 0.3 0.3 0.3 0.2 0.4 0.3 0.4 0.3 0.5

NYSE Arca lows - 15

NYSE Arca highs - 83

Explanatory Notes

21.16 22.22 20.36 13.34 16.12 31.75 30.90 45.43 16.16 29.80 15.25 33.87 38.17 22.07 17.65

0.2 -0.6 -0.9 -2.5 -0.6 -0.3 -0.4 -0.4 -2.6 0.4 -1.6 -2.1 -2.0 -0.6 0.2

NYSE MKT highs - 7 69.35 8.4 0.41 5.2 27.63 0.3

Data provided by

52-Wk % Sym Hi/Lo Chg Stock

GastarExplnPfdB GSTpB 22.79 0.1 LamResearch LRCX 4.34 0.7 LamarAdvertising LAMR GlobalSCAPE GSB 3.10 10.7 Landcadia IntellicheckMob IDN LCA 1.20 0.9 LeggMasonGlbInfr INFR TasekoMines TGB LibertyBroadbandC LBRDK LibertyGlobal A LBTYA LibertyGlobal C LBTYK 0.51 -9.7 LincolnElectric LECO CorindusVascular CVRS LoxoOncology LOXO MIIIAcquisition MIII MKS Instrum MKSI ALPS/DorseyMom SWIN 25.65 0.4 MagellanHealth MGLN ASBBancorp ASBB 30.65 0.8 MagellanPetrol MPET ASML ASML 115.54 0.5 Masimo MASI 6.20 7.1 AXT AXTI MeritMedical MMSI AccessNational ANCX 29.28 0.3 MiddleburgFin MBRG Achaogen AKAO 18.26 13.6 NVE NVEC Acxiom ACXM 27.73 2.1 NakedBrand NAKD 58.31 1.0 AdvEnergyInds AEIS Netflix NFLX AlmostFamily AFAM 47.25 1.9 NorthernTrust NTRS AndinaAcqnIIWt ANDAW 0.35 9.4 Novanta NOVT AngioDynamics ANGO 18.18 3.1 NxstageMed NXTM AppliedMaterials AMAT 33.90 1.4 OFSCapital OFS AppliedOptoelec AAOI 30.54 -5.5 OakValleyBncp OVLY ArrayBioPharma ARRY 11.22 7.5 OldPointFinl OPOF AssemblyBiosci ASMB 15.27 5.7 PaceHoldings Un PACEU AsureSoftware ASUR 11.46 3.5 PacificPremBncp PPBI ADP ADP 104.09 ... PacWestBancorp PACW BGC Partners BGCP 10.96 1.0 Parexel PRXL Banner BANR 58.01 1.6 PartnerComms PTNR 7.20 0.7 PatrickIndustries PATK BlueknightEner BKEP 38.82 1.1 PeakResorts CSX CSX SKIS CabotMicro CCMP 65.50 1.1 Pegasystems PEGA CaesarsAcqn CACQ 14.85 4.6 PingtanMarineEnt PME 10.79 0.7 Plexus CalamosStratTot CSQ PLXS CenturyAluminum CENX 11.61 11.2 Popular BPOP CheckPointSftw CHKP 92.23 1.7 PowerSharesIntlBuy IPKW ClovisOncology CLVS 57.93 3.7 PS KBW Banks KBWB CoBizFin COBZ 17.78 2.3 PwrShrs QQQ QQQ Cognex CGNX 66.52 1.8 PSVariableRateInv VRIG Coherent COHR 145.88 1.2 PrShrUltPrQQQ TQQQ Comcast A CMCSA 72.94 1.9 RoyalBkofCdaETN TALL Copart CPRT 57.58 1.0 SVB Fin SIVB 27.38 4.0 ScrippsNetworks SNI CountyBancorp ICBK Cutera CUTR 19.31 2.4 SenesTech SNES DISH Network DISH 62.97 ... Spectranetics SPNC DavisFinl DFNL 20.33 0.2 StarBulkCarriers SBLK DavisUSEquity DUSA 20.29 0.1 SunshineBancorp SBCP E-compassAcqnRt ECACR 1.00 5.6 Symantec SYMC 37.39 0.6 TD Ameritrade AMTD E*TRADE ETFC EastWestBancorp EWBC 52.40 1.7 TESARO TSRO ElectrumSpecUn ELECU 10.50 1.4 T-Mobile Pfd TMUSP EncoreCapital ECPG 30.80 1.2 TeleNav TNAV Energous WATT 20.55 -0.9 TerritBanc TBNK EntegraFin ENFC 21.50 ... TexasInstruments TXN 19.30 -1.6 TowerSemi Exelixis EXEL TSEM FibroGen FGEN 25.65 3.2 Transgenomic TBIO FdltyNasCompFd ONEQ 219.67 0.4 TriCoBancshares TCBK FirstBusey BUSE 31.54 0.4 TwinDisc TWIN FT CloudComp SKYY 35.98 0.4 UbiquitiNetworks UBNT 22.22 0.2 UltraClean FT DorseyWright FVC UCTT FT NasdCleanEdge QCLN 15.95 1.3 VCA WOOF 20.56 1.0 VanguardIntlHiDiv VYMI FT NasdCybersec CIBR FT Nasd100xTech QQXT 42.32 0.4 VangdRuss1000Grw VONG FT Nasd100Tech QTEC 54.76 0.6 VSInverseVIXSTerm XIV FT NasdSmartphone FONE 42.16 0.4 VidentIntlEquityFd VIDI FT Nasd100 EW QQEW 48.25 0.5 Willdan WLDN FTRiverFrontDynEur RFEU 53.43 0.6 WisdTrMEDiv GULF 42.21 0.5 Yield10Bioscience YTEN FT SwitzAlpha FSZ 16.90 5.8 ZionsBancorpWt ZIONW Five9 FIVN FlexSTOXXGlbESGImp ESGG 79.82 0.2 Gentex GNTX 20.89 1.6 39.99 0.3 GlobalIndemnity GBLI HVBancorp HVBC 14.25 2.3 ATA ATAI 48.75 -0.2 BonTonStores BONT HealthEquity HQY HeritageCommerce HTBK 14.67 0.5 DavisWorldwide DWLD HeritageFin HFWA 26.85 2.3 Dryships DRYS HeritageOaksBncp HEOP 13.07 1.1 ExtractionOil XOG HuntingtonBcshs HBAN 13.67 1.1 FenixParts FENX 71.46 1.5 HebronTech IAC/InterActive IAC HEBT 10.62 3.0 KonaGrill IconixBrand ICON KONA Insmed INSM 15.67 3.3 Lightbridge LTBR 19.87 1.3 MaxPoint Investar ISTR MXPT IridiumComm IRDM 11.30 ... MaysJW MAYS iShMSCIEAFEESGOpt ESGD 57.46 0.3 MerrimackPharm MACK Isramco ISRL 129.05 1.0 ONE GroupHosp STKS 4.74 4.7 ProShUltraProShQQQ SQQQ Iteris ITI JM Global Un WYIGU 10.28 0.1 SocialReality SRAX j2Global JCOM 86.92 2.2 The9 NCTY 6.45 9.6 VS2xVIXShortTerm TVIX KindredBiosci KIN KornitDigital KRNT 18.25 4.4 VSVIXShortTerm VIIX 17.21 1.5 YulongEcoMat YECO Kulicke&Soffa KLIC

111.10 2.2 72.91 0.7 9.90 0.5 25.65 0.6 76.58 0.8 35.45 0.2 33.87 0.6 81.33 1.5 40.55 -3.4 10.09 -0.1 63.20 0.3 79.20 0.5 13.93 1.4 72.13 0.3 26.90 2.3 37.17 1.0 72.28 0.8 3.68 63.5 133.93 3.5 91.14 0.4 24.15 ...

28.36 1.2 14.40 0.8 13.36 4.7 27.75 1.5 10.86 1.0 37.95 1.8 56.46 1.6 72.32 -0.1 5.90 -1.2 81.65 1.2 5.90 2.7 39.85 3.9 2.84 25.7 55.36 1.7 45.58 0.1 29.27 0.2 48.51 0.7 123.37 0.3 25.14 0.3 71.58 1.2 22.71 0.2 180.48 1.2 75.84 -0.1 9.54 16.2 26.15 3.0 7.45 7.9 17.99 0.6 26.18 1.7 47.41 0.3 157.77 6.4 97.69 0.2 8.70 15.0 33.39 1.7 75.30 0.2 20.60 0.6 1.59 -12.5 34.95 3.0 17.85 3.1 60.30 2.3 12.59 0.2 91.58 0.3 58.68 0.1 110.53 0.3 56.00 -0.2 22.62 0.6 28.19 4.5 17.81 2.4 0.45 4.8 12.73 5.8

13.12 +0.03 2.3 REITAdml r 117.08 SmCapAdml 62.89 32.95 -0.08 3.1 STBondAdml 10.44 35.30 +0.08 1.8 STIGradeAdml 10.65 TotBdAdml 10.68 Parnassus Fds ParnEqFd 39.91 +0.07 1.6 TotIntBdIdxAdm 21.61 TotIntlAdmIdx r 25.48 PIMCO Fds Instl 57.06 AllAsset NA ... NA TotStAdml TxMIn r 12.13 HiYld 8.88 ... 1.0 ValAdml 36.49 TotRt 10.08 -0.01 0.6 WdsrllAdml 63.35 PIMCO Funds A WellsIAdml 61.96 IncomeFd NA ... NA WelltnAdml 68.22 PIMCO Funds D WndsrAdml 70.46 IncomeFd NA ... NA

-0.16 0.2 +0.39 1.8 ... 0.1 -0.01 0.3 -0.02 0.4 -0.02 -0.3 +0.10 3.5 +0.16 1.7 +0.06 3.3 +0.05 0.7 +0.14 1.6 -0.03 0.4 +0.10 1.1 +0.20 1.8

DivdGro 23.73 ... NA GNMA 10.53 HlthCare r 191.96 ... NA INSTTRF2020 20.43 INSTTRF2025 20.43 +0.23 4.4 INSTTRF2030 20.41 +0.04 1.5 INSTTRF2035 20.39 +0.07 0.9 INSTTRF2040 20.36 +0.12 1.7 LifeCon 18.64 +0.13 4.3 LifeGro 29.43 +0.37 5.2 LifeMod 24.52 +0.09 4.4 PrmcpCor 22.74 +0.05 2.3 SelValu r 29.34 +0.08 3.3 STAR 24.16 +0.27 2.7 STIGrade 10.65 +0.11 1.4 TgtRe2015 14.68 +0.49 3.8 TgtRe2020 28.67 -0.02 0.4 TgtRe2025 16.61 +0.05 3.2 TgtRe2030 29.72 +0.01 1.4 TgtRe2035 18.08 +0.03 1.7 TgtRe2040 30.85 +0.03 2.0 TgtRe2045 19.30 +0.05 2.2 TgtRe2050 31.05 +0.04 2.3 TgtRetInc 12.91 +0.06 2.5 TotIntBdIxInv 10.81 +0.34 1.8 WellsI 25.58 +0.33 0.1 Welltn 39.51 +0.07 1.5 WndsrII 35.70

+0.04 1.3 -0.02 ... +0.58 3.9 +0.03 1.4 +0.03 1.6 +0.04 1.8 +0.05 2.0 +0.05 2.1 +0.01 1.1 +0.06 1.9 +0.03 1.5 +0.07 2.5 +0.12 1.9 +0.04 2.0 -0.01 0.2 +0.01 1.2 +0.04 1.5 +0.03 1.6 +0.05 1.8 +0.04 1.9 +0.08 2.1 +0.05 2.2 +0.08 2.2 ... 0.8 -0.01 -0.3 -0.01 0.4 +0.06 1.2 +0.08 1.6

NYSE MKT lows - 1 Nasdaq highs - 151

Nasdaq lows - 19

Net YTD NAV Chg %Ret Fund

Fund

DevMktY IntGrowY

IncomeFd

AmcpA p AMutlA p BalA p BondA p CapIBA p CapWGrA EupacA p FdInvA p GwthA p HI TrA p ICAA p IncoA p N PerA p NEcoA p NwWrldA SmCpA p TxExA p WshA p

27.89 37.24 25.09 12.76 58.21 45.02 46.73 55.52 43.44 10.35 36.98 21.94 36.50 37.22 53.19 47.41 12.84 41.39

+0.10 +0.07 +0.02 -0.02 +0.15 +0.22 +0.29 +0.15 +0.17 ... +0.12 +0.02 +0.17 +0.21 +0.21 +0.28 -0.01 +0.06

2.4 1.1 1.1 0.4 1.0 2.7 3.6 2.0 3.3 1.1 2.1 1.2 3.3 3.5 3.4 3.1 0.9 1.1

TotRetBdI TotRetBdN

Federated Instl StraValDivIS

NA NA

... NA ... NA

500IdxInst 500IdxInstPrem 500IdxPrem ExtMktIdxPrem r IntlIdxPrem r TMktIdxF r TMktIdxPrem USBdIdxPrem USBdIdxInstPrem

79.65 79.65 79.65 56.71 36.42 65.66 65.66 11.52 11.52

NwInsghtI

27.84 +0.12 3.3

Fidelity Advisor I

+0.14 +0.15 +0.15 +0.36 +0.22 +0.18 +0.18 -0.03 -0.03

15.25 13.08 16.12 14.19 14.85 15.20 15.77 15.80

+0.02 +0.02 +0.04 +0.02 +0.02 +0.04 +0.05 +0.05

16.86 +0.04 1.9 Balanc 22.42 BluCh 70.09 102.08 EqtyDivd 22.75 +0.04 0.9 Contra 102.01 GlblAlloc 18.63 +0.04 1.9 ContraK 9.86 HiYldBd 7.71 ... 1.1 CpInc r 34.11 StratIncOpptyIns 9.86 ... 0.4 DivIntl DivIntlK r 34.04 Del Invest Instl 141.45 Value 19.81 ... 0.7 GroCo GrowCoK 141.31 Dimensional Fds InvGB 7.82 5GlbFxdInc 10.89 -0.01 0.2 11.14 EmgMktVa 25.15 +0.06 5.0 InvGrBd LowP r 49.99 EmMktCorEq 18.09 ... 4.2 IntlCoreEq 12.06 +0.05 3.4 LowPriStkK r 49.94 93.69 IntSmCo 17.82 +0.08 3.2 MagIn 87.18 IntSmVa 19.70 +0.09 3.6 OTC 20.98 US CoreEq1 19.57 +0.06 1.6 Puritn US CoreEq2 18.87 +0.07 1.4 SrsEmrgMktF 16.39 11.14 US Small 34.02 +0.25 0.5 SrsInvGrdF 10.56 US SmCpVal 37.52 +0.22 0.3 TotalBond US TgdVal 24.19 +0.15 0.7 Fidelity Selects Biotech r 188.06 USLgVa 35.51 +0.10 1.2

+0.04 +0.27 +0.46 +0.47 +0.01 +0.25 +0.26 +0.57 +0.57 -0.01 -0.02 +0.18 +0.18 +0.27 +0.61 +0.04 -0.02 -0.02 -0.02

Fidelity Invest

1.7 1.8 2.1 1.6 1.8 2.2 JPMorgan Funds 2.3 MdCpVal L 36.77 +0.07 2.3 JPMorgan R Class CoreBond 11.55 -0.01 1.8 JPMorgan Select Cls 4.1 CoreBond 11.53 -0.02 3.7 USLgCpCorPls 28.88 +0.08 3.7 Lazard Instl 1.7 16.44 -0.07 2.4 EmgMktEq 2.4 Loomis Sayles Fds

3.4 3.4 0.5 0.5 1.0 1.0 2.6 4.6 1.9 4.1 0.5 0.5

104.92 13.63 39.53 187.99

+0.23 -0.02 +0.10 +0.70

1.5 0.3 3.8 2.0

GlbA

FPA Funds FPACres

Price Funds

2.31 +0.01 1.3 BlChip FrankTemp/Franklin A CapApp CA TF A p 7.38 ... 1.1 EqInc Fed TF A p 12.07 ... 0.8 EqIndex IncomeA p 2.33 +0.01 1.3 Growth RisDv A p 53.33 +0.10 1.3 HelSci FrankTemp/Franklin C InstlCapG Income C t 2.36 +0.01 1.7 IntlValEq FrankTemp/Temp A IntlStk GlBond A p 11.88 ... -1.0 MCapGro Growth A p 24.17 +0.15 2.6 MCapVal N Horiz FrankTemp/Temp Adv GlBondAdv p 11.84 +0.01 -1.0 N Inc OverS SF r Harbor Funds CapApInst 58.98 +0.24 4.1 R2015 IntlInst r 59.92 +0.28 2.6 R2020 R2025 Invesco Funds A EqIncA 10.72 +0.02 1.5 R2030 R2035 John Hancock Class 1 LSBalncd 14.49 +0.03 1.8 R2040 LSGwth 15.03 +0.05 2.2 SmCapStk SmCapVal John Hancock Instl DispValMCI 21.89 +0.05 2.0 Value

LSBondI

0.4 0.4 2.7 3.0

ShtDurIncmA p 4.31

... 0.1

ShtDurIncm

... 0.4

Metropolitan West TotRetBd TotRetBdI TRBdPlan

10.57 -0.01 0.3 10.57 -0.01 0.4 9.94 -0.01 0.4

MFS Funds Class A ValueA p

NA

ValueI

NA

MFS Funds Class I

... NA

... NA +1.59 8.0 Mutual Series GlbDiscA 31.18 +0.15 2.0 55.32 +0.22 2.0 GlbDiscz 31.75 +0.15 2.0

Oakmark Funds Cl I

33.08 +0.06 1.4 EqtyInc r Oakmark

30.97 +0.03 1.8 74.06 +0.14 2.2

FrankTemp/Frank Adv

75.79 26.57 31.77 61.10 55.54 62.14 30.54 13.10 15.80 77.39 29.46 44.96 9.40 9.36 14.38 20.76 15.81 23.02 16.67 23.78 45.73 45.17 34.14

ETF

Friday, January 13, 2017 Closing Chg YTD Symbol Price (%) (%)

AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt DeutscheXMSCIEAFE EnSelectSectorSPDR FinSelSectorSPDR GuggenheimSP500EqW HealthCareSelSect

AMLP XLY XLP DGP DZZ DBEF XLE XLF RSP XLV

12.75 83.96 51.52 21.82 6.29 28.72 74.38 23.51 88.05 70.92

0.39 0.37 0.06 0.41 â&#x20AC;&#x201C;0.40 0.24 â&#x20AC;&#x201C;0.29 0.56 0.20 0.10

1.2 3.1 â&#x20AC;&#x201C;0.4 8.4 â&#x20AC;&#x201C;8.3 2.4 â&#x20AC;&#x201C;1.2 1.1 1.6 2.9

IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSharesTIPSBondETF iShCoreHiDividend iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA

Dividend Changes Symbol

Amount Yld % New/Old Frq

Payable / Record

Increased Graham Holdings Omega Hlthcare Investors

GHC OHI

1.0 1.27 /1.21 Q 7.6 .62 /.61 Q

Feb15 /Feb01 Feb15 /Jan31

Initial KeyCorp Pfd. E

.39557

KEYpI

Mar15 /Feb28

ADX PEO DSUM PFIG SNLN PWZ PZA PZT DWIN PGHY KBWD KBWY XRLV BKLN VRP LDRI SPLV VRIG XSHD PLW

1.5 2.0 3.4 2.4 4.7 2.6 3.0 3.0 4.4 6.0 8.5 6.8 1.6 3.6 5.1 1.8 2.2 2.3 3.7 2.0

0.38 â&#x20AC;&#x201C;0.17 ... â&#x20AC;&#x201C;0.18 â&#x20AC;&#x201C;0.07 0.42 â&#x20AC;&#x201C;0.02 0.18 0.57 0.73 0.27 â&#x20AC;&#x201C;0.17 0.14 0.45 0.07

Closing Chg YTD Symbol Price (%) (%)

iSharesGold iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iSharesJPMUSDEmgBd iShMBSETF iShMSCIACWIETF iSharesMSCIEAFESC iSharesMSCIEAFEETF iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlAMTFrMuniBd iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth

1.6 0.3 0.1 0.7 â&#x20AC;&#x201C;0.6 3.2 4.6 1.5 1.7 0.2 1.8 0.3 0.3 2.7 0.7

Symbol

PwrShrs Build Amer Bond PwrShrs CEF Inco Comp Ptf PwrShrs Preferred PwrShs Emrg Mkts Sov Debt PwrShs Ex Tr Finl Prd Pwrshs Fundm H Y F Cp Bd PwrShs Hi Yld Eqty Dv Ach PwrShs Intl Corp Bd Ptf PwrShs S&P 500 High Divd PwShs VRDO Tax-Free Wkly

BAB PCEF PGX PCY PGF PHB PEY PICB SPHD PVI

IAU LQD HYG EMB MBB ACWI SCZ EFA EEM EZU EWJ IBB MUB IWF IWB IWD IWO

11.55 117.78 87.32 112.16 106.53 60.70 51.30 59.59 36.68 35.36 50.89 280.01 109.16 107.69 126.58 112.81 157.43

Amount Yld % New/Old Frq

4.2 7.9 5.8 5.2 5.5 4.5 2.8 1.9 3.7 0.5

.10303 .15 .07002 .12508 .084 .07067 .04 .038 .1225 .01084

M M M M M M M M M M

0.35 â&#x20AC;&#x201C;0.20 0.03 0.04 â&#x20AC;&#x201C;0.22 0.26 0.25 0.37 â&#x20AC;&#x201C;0.08 0.45 0.63 0.39 â&#x20AC;&#x201C;0.09 0.30 0.25 0.12 0.92

4.2 0.5 0.9 1.8 0.2 2.6 2.9 3.2 4.8 2.2 4.2 5.5 0.9 2.7 1.7 0.7 2.3

Payable / Record

Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18

Stocks

Funds and investment companies Adams Divers Equity Fd Adams Natural Rscs Fd ChineseYuanDimSumBd FundInvGradeCorpBdPort Highland/iBoxx Sr Loan PowerSh CA AMT-Fr Mun Bd PowerSh Natl AMT-Fr Muni PowerSh NY AMT-Fr Mun Bd PowerShares DWA Tactical PowerShares Gl Shrt Tm PowerShares KBW Hi Div PowerShares KBW REIT PowerShares S&P 500 xRate PowerShares Sr Loan Ptf PowerShares Variable Rate PS LadderRite 0-5 Yr Corp PS S&P 500 Lo Voltl Prtf PS Variable Rate Inv Grd PwrSh S&P SC Hi Div Low PwrShrs 1-30 Laddrd Treas

63.22 108.47 105.01 113.98 81.78 55.35 44.42 228.39 168.12 137.81 52.20 108.42 88.81 62.89 45.54

Company

Dividend announcements from January 13.

Company

XLI CIU CSJ TIP HDV IEFA IEMG IVV IJH IJR ITOT AGG DVY EFAV USMV

VANGUARD INDEX FDS

ETF

Closing Chg YTD Symbol Price (%) (%)

ETF

VANGUARD FDS

14.17 -0.01 0.7 500 210.01 +0.39 1.7 ExtndIstPl 183.27 +1.19 2.1 S&P Sel 35.00 +0.07 1.7 SmValAdml 52.54 +0.28 1.1 TIAA/CREF Funds TotBd2 10.64 -0.02 0.4 EqIdxInst 16.88 +0.05 1.7 TotIntl 15.23 +0.06 3.4 TotSt 57.03 +0.15 1.7 Tweedy Browne Fds GblValue 25.40 +0.12 1.4 VANGUARD INSTL FDS BalInst 31.49 +0.03 1.2 VANGUARD ADMIRAL 500Adml 210.01 +0.38 1.7 DevMktsIndInst 12.14 +0.05 3.3 74.26 +0.48 2.1 BalAdml 31.49 +0.03 1.2 ExtndInst 59.00 +0.15 2.9 CAITAdml 11.64 -0.01 1.0 GrwthInst 10.46 -0.02 0.8 CapOpAdml r 128.16 +0.41 3.1 InPrSeIn 207.23 +0.38 1.7 EMAdmr 30.86 ... 3.6 InstIdx 207.24 +0.38 1.7 EqIncAdml 68.74 +0.14 0.5 InstPlus ExtndAdml 74.26 +0.48 2.1 InstTStPlus 51.22 +0.14 1.7 36.76 +0.10 2.1 GNMAAdml 10.53 -0.02 ... MidCpInst GrwthAdml 59.00 +0.15 2.9 MidCpIstPl 181.31 +0.52 2.1 62.89 +0.40 1.8 HlthCareAdml r 80.96 +0.24 3.9 SmCapInst HYCorAdml r 5.88 +0.01 1.1 STIGradeInst 10.65 -0.01 0.3 TotBdInst 10.68 -0.02 0.4 InfProAd 25.67 -0.05 0.7 10.64 -0.02 0.4 IntlGrAdml 70.91 +0.45 5.3 TotBdInst2 ITBondAdml 11.29 -0.02 0.5 TotBdInstPl 10.68 -0.02 0.4 ITIGradeAdml 9.67 -0.02 0.4 TotIntBdIdxInst 32.43 -0.04 -0.3 LTGradeAdml 10.16 -0.04 1.1 TotIntlInstIdx r101.87 +0.39 3.4 MidCpAdml 166.42 +0.48 2.1 TotItlInstPlId r101.89 +0.39 3.4 57.07 +0.16 1.7 MuHYAdml 11.12 -0.01 1.1 TotStInst 36.49 +0.05 0.7 MuIntAdml 14.01 -0.01 1.0 ValueInst MuLTAdml 11.49 -0.01 1.1 Western Asset MuLtdAdml 10.90 ... 0.6 CorePlusBdI NA ... NA

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

0.4 1.5 ...

1.6 -1.3 -6.9 -2.8 -3.6 -6.2 -2.2 -2.9 -1.8 -2.9 -1.1 -0.5 -0.9 0.3 0.3 1.8

Schwab Funds

13.74 +0.02 1.3

4.31

NA

Prudential Cl Z & I

Lord Abbett A Lord Abbett F

NA

1.0 TRBdZ

First Eagle Funds

Dodge & Cox Balanced Income Intl Stk Stock

1.7 1.7 1.7 2.1 3.1 1.8 1.8 0.3 0.3

Fidelity Freedom

BlackRock Funds Inst

NAV Chg %Ret

IncomeAdv

5.93 +0.01 0.3

Fidelity

FF2020 FF2025 YacktmanFd I 21.72 +0.02 1.5 FF2030 Baird Funds FreedomK2020 AggBdInst 10.75 -0.01 0.5 FreedomK2025 CorBdInst 11.08 -0.01 0.5 FreedomK2030 BlackRock Funds A FreedomK2035 GlblAlloc p 18.52 +0.04 1.9 FreedomK2040

AMG Managers Funds

PIMCO Funds P Net YTD IncomeP

NAV Chg %Ret Fund

DoubleLine Funds

3.29 1.27 20.15 1.69 18.24 2.60 3.94 9.45 1.01 3.85 41.75 3.16 1.66 46.20 3.80 1.11 6.48 7.16 0.83

.05 .10 .06172 .05138 .07261 .05589 .063 .06006 .10144 .12213 .165 .21316 .03697 .07 .1056 .03811 .075 .04788 .08 .05477

Q Q M M M M M M M M M M M M M M M M M M

Mar01 /Feb10 Mar01 /Feb10 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18 Jan31 /Jan18

Cash Prices WSJ.com/commodities

Friday, January 13, 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.

Friday

Energy 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

Sunshine Heart

1:30

SSH

/Jan13

Foreign Banco Santander ADR Diana Ship 8.875 Pfd B Diana Ship 8.875 Pfd B Safe Bulkers 8% Pfd. C Safe Bulkers Perp. Pfd. D Safe Bulkers Pfd B Shaw Communications B Shaw Communications B Shaw Communications B Signet Jewelers Tsakos Energy 8% Pfd B Tsakos Energy Pfd C

SAN DSXpB DSXpB SBpC SBpD SBpB SJR SJR SJR SIG TNPpB TNPpC

4.3 12.6 12.6 12.7 12.8 8.4 4.2 4.2 4.2 1.3 7.9 8.6

.05853 .55469 .55469 .50 .50 .50 .07473 .07473 .07473 .26 .50 .5547

Q Q Q Q Q Q M M M Q Q Q

Feb08 /Jan27 Apr17 /Apr13 Jul17 /Jul14 Jan30 /Jan23 Jan30 /Jan23 Jan30 /Jan23 Mar30 /Mar15 Apr27 /Apr13 May30 /May15 Feb28 /Jan27 Jan30 /Jan27 Jan30 /Jan25

Special Gastar Exploration Pfd A

GSTpA

1.79688

Jan31 /Jan20

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

0.7333 0.9803 3.360 3.270 3.430 3.220 3.340 2.930 3.220 46.500 11.050

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

1196.68 1286.43 1190.35 1321.28 *1206.65 *1205.05 1244.20 1256.17 1256.17 1450.44 1175.66 1256.17

Silver, troy oz.

Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price (U.S.$ equivalent) Coins,wholesale $1,000 face-a

16.7000 20.0400 16.7650 20.9560 ÂŁ13.7625 16.7600 13203

Other metals LBMA Platinum Price PM *990.0 Platinum,Engelhard industrial 973.0 Platinum,Engelhard fabricated 1073.0 Palladium,Engelhard industrial 750.0 Palladium,Engelhard fabricated 850.0 Aluminum, LME, $ per metric ton *1788.0 Copper,Comex spot 2.6805 Iron Ore, 62% Fe CFR China-s 80.2 Shredded Scrap, US Midwest-s,w 312 Steel, HRC USA, FOB Midwest Mill-s 602

Fibers and Textiles

Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Net YTD Net YTD Fund NAV Chg %Ret Fund NAV Chg %Ret Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w OakmrkInt ... 0.2 23.64 +0.19 4.1 MuShtAdml 15.75 PrmcpAdml r 111.66 +0.24 2.6 Old Westbury Fds Grains and Feeds

PIMCO Funds Instl

American Funds Cl A

52-Wk % Sym Hi/Lo Chg

Oppenheimer Y

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 13, 2017 Net YTD

COMMODITIES

LrgCpStr

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.

GlblAlloc t

PUBLIC NOTICES

43.72 45.17 11.02 24.63 24.00 0.35 29.66 3.20 51.08

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NYSE lows - 9 Brown-Forman B BF/B Brown-Forman A BF/A CGG CGG ColonyNrthStPfG CLNSpG ColonyNrthStPfH CLNSpH EmergentCapital EMG Macy's M StageStores SSI VF VFC

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THE WALL STREET JOURNAL.

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0.5675 0.7227 *82.25 75.250 n.a.

Barley,top-quality Mnpls-u n.a.

Bran,wheat middlings, KC-u 100 Corn,No. 2 yellow,Cent IL-bp,u 3.4200 Corn gluten feed,Midwest-u,w 97.7 Corn gluten meal,Midwest-u,w 507.0 Cottonseed meal-u,w 220 Hominy feed,Cent IL-u,w 85 Meat-bonemeal,50% pro Mnpls-u,w 283 Oats,No.2 milling,Mnpls-u 3.0500 Rice, 5% Broken White, Thailand-l,w 357.00 Rice, Long Grain Milled, No. 2 AR-u,w 21.38 Sorghum,(Milo) No.2 Gulf-u 7.0263 SoybeanMeal,Cent IL,rail,ton48%-u 333.40 Soybeans,No.1 yllw IL-bp,u 10.1800 Wheat,Spring14%-pro Mnpls-u 7.1275 Wheat,No.2 soft red,St.Louis-bp,u 4.2000 Wheat - Hard - KC (USDA) $ per bu-u 3.8400 Wheat,No.1soft white,Portld,OR-u 4.6100

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

176.62 169.60 n.a.

0.8666 2.2250 164.00 172.50 103.25 n.a.

1.4683 1.6550 0.6450 13.75 0.57 62.82 n.a.

0.9401 117.00 144.01

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

38.0250 0.2750 n.a.

0.3410 0.3125 0.3400

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 1/12 Source: WSJ Market Data Group

ETF

Closing Chg YTD Symbol Price (%) (%)

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 VanEckBiotech VanEckGoldMiner VanEckOilSvcs VanEckPharm VanEckRetail VanEckSemiconduc VangdInfoTech VangdSC Val VangdDivApp VanguardFTSEDevMk VanguardFTSEEmgMk VanguardFTSEEurope VanguardAWxUS VangdGrowth VanguardHiDiv VanguardIntrm VangIntrCorpBd VanguardLC VanguardMC VanguardMCVal VangdREIT VanguardS&P500 VangdST Bond VanguardSTCpBd VanguardSC VanguardTotBd VanguardTotIntlBd VanguardTtlIntlStk VanguardTotStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg

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

136.26 119.00 135.18 182.27 81.41 124.57 102.18 38.11 84.46 105.39 100.09 123.16 41.54 23.36 36.78 28.61 55.07 54.18 198.70 114.21 306.65 227.05 85.99 49.66 48.51 113.80 22.74 33.96 52.97 77.17 73.21 125.50 122.31 85.96 37.78 37.24 49.03 45.77 114.63 75.76 83.38 86.01 104.05 134.37 98.56 82.61 208.46 79.60 79.42 131.30 81.06 54.03 47.52 117.22 62.59 93.55 57.98 50.67

0.72 0.64 0.26 0.30 0.20 0.22 0.15 0.03 â&#x20AC;&#x201C;0.05 â&#x20AC;&#x201C;0.22 0.39 0.34 0.05 0.09 0.03 0.32 0.22 0.22 â&#x20AC;&#x201C;0.03 0.26 0.55 0.23 0.17 0.30 â&#x20AC;&#x201C;0.14 0.22 0.53 â&#x20AC;&#x201C;1.37 0.32 0.12 1.48 0.39 0.53 0.15 0.37 â&#x20AC;&#x201C;0.11 0.43 0.33 0.27 0.09 â&#x20AC;&#x201C;0.17 â&#x20AC;&#x201C;0.19 0.18 0.29 0.22 â&#x20AC;&#x201C;0.15 0.20 â&#x20AC;&#x201C;0.04 â&#x20AC;&#x201C;0.09 0.63 â&#x20AC;&#x201C;0.16 â&#x20AC;&#x201C;0.11 0.30 0.25 0.34 0.14 0.38 0.54

1.0 0.1 1.7 1.9 1.2 2.3 0.8 2.4 0.0 0.5 2.8 4.0 â&#x20AC;&#x201C;0.1 ...

0.9 3.4 1.6 1.7 0.6 4.2 1.6 1.6 0.5 2.7 â&#x20AC;&#x201C;0.1 5.8 8.7 1.8 0.9 1.8 2.2 3.3 1.1 0.9 3.4 4.1 2.3 3.6 2.8 â&#x20AC;&#x201C;0.0 0.4 0.4 1.6 2.1 1.4 0.1 1.5 0.2 0.1 1.8 0.3 â&#x20AC;&#x201C;0.5 3.6 1.6 2.6 0.6 1.0 2.3

THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | B9

* * * *

MARKETS & FINANCE

Deluged Market Sank the Pound

Citadel Settles Claims on Pricing

Automation and thin volume blamed for a 2016 â&#x20AC;&#x2DC;flash crashâ&#x20AC;&#x2122; in the British currency

BY MIKE BIRD AND ALISTAIR MACDONALD

LUKE MACGREGOR/BLOOMBERG NEWS

LONDONâ&#x20AC;&#x201D;A â&#x20AC;&#x153;flash crashâ&#x20AC;? in which the British pound plummeted 9% within seconds last October was likely caused by thin volumes and the sort of automated trading that has made such dramatic events more common, according to an investigation by the Bank for International Settlements.

The crash also happened when sentiment toward sterling was negative and as traders rushed to hedge derivatives exposure to the currency by selling, the report said.

Sterling had been falling since Britainâ&#x20AC;&#x2122;s June vote to leave the European Union, but its swift move that day sparked concerns over one of the worldâ&#x20AC;&#x2122;s most traded currencies and speculation that market manipulation or a â&#x20AC;&#x153;fat fingerâ&#x20AC;? had been responsible.

Instead, the BIS investigation said that there was likely no single factor that had triggered the drop.

The pound fell from $1.26 to as low as $1.149 in a move that began at 12:07 a.m. London time on Oct. 7, 2016. Such sharp and sudden market moves are an increasingly common event in modern markets, the report and market participants said.

BY DAVE MICHAELS AND ALEXANDER OSIPOVICH

The Bank of England found that no large financial institutions had lost money in the pound â&#x20AC;&#x2DC;flash crashâ&#x20AC;&#x2122; despite the violent swings. â&#x20AC;&#x153;People thought that forex markets were more safe from this because theyâ&#x20AC;&#x2122;re so liquid.

That might not be the case,â&#x20AC;? said Robert Hockett, a professor of law and markets expert at Cornell University.

The report concluded that in a 10-minute period the market had been deluged by demand to sell when there was little supply. U.S. markets had recently closed, Asian traders were starting their day and it was night in Europe. Liquidity was also impaired by holidays that day, including in China.

Those still participating

were less â&#x20AC;&#x153;experienced in trading sterling, with lower risk limits and risk appetite, and with less expertise in the suitability of particular algorithms for the prevailing market conditions,â&#x20AC;? the report said.

The plunge in the pound triggered client instructions, automatic trades and hedges requiring banks to sell as much as ÂŁ3.5 billion, when there was just ÂŁ2 billion in trading volumes, the report said.

Today, more than 70% of currency trading is conducted electronically and about a quarter or more is handled by

automated, high-frequency trading firms, according to research firm Tabb Group.

The BIS said there was no definitive evidence to suggest that the fall was caused by a so-called fat finger trade or a deliberate attempt to push the pound lower, as some market players had speculated.

Still, particular trades may have helped to drive the drop. â&#x20AC;&#x153;Individual participants could have had a significant impact on market functioning and prices traded,â&#x20AC;? said the report. â&#x20AC;&#x153;U.K. supervisory data point to a significant increase

in certain market participantsâ&#x20AC;&#x2122; share of trading activity as others withdrew.â&#x20AC;?

Among the banks trading at the time was Citigroup Inc., according to a person familiar with the matter. The bank declined to comment.

Bank of England Gov. Mark Carney said in a statement that no large financial institutions suffered material losses from the event, but stressed the importance of firms having adequate governance, systems and controls. â&#x20AC;&#x201D;Max Colchester contributed to this article.

Treasury Yields Wind Up Lower for the Week

BY SAM GOLDFARB U.S. government bonds closed out a choppy week Friday with another up-and-down session as a morning selloff dissipated in the afternoon.

The yield on the benchmark 10-year Treasury note settled at 2.380%, after reaching 2.428% earlier in the day. It was up from 2.358% on Thursday but down from 2.417% the previous Friday.

Yields, which rise as bond prices fall, jumped early Friday in response to fresh economic data that appeared to bolster investorsâ&#x20AC;&#x2122; confidence in the U.S. economy and refo-

cus their attention on rising inflation. The producer-price index excluding food and energy rose 0.2% in December from the previous month, according to the Labor Department, compared with a 0.1% consensus estimate.

The producer-price data was another sign that prices generally are trending higher, a development that is bad for government debt because inflation chips away at bondsâ&#x20AC;&#x2122; fixed returns over time.

Also Friday, the Commerce Department reported retail and restaurant sales rose a seasonally adjusted 0.6% in December from a month ear-

lier. That was slightly below the official consensus but better than informal expectations that had declined heading into the release, analysts said.

2.380% Yield on the 10-year Treasury note late Friday

Before Friday, investors had relatively little economic data to dig into this past week, putting more emphasis on a se-

U.S., EU Agree on Insurance Rules

BY JULIA-AMBRA VERLAINE AND JACOB M. SCHLESINGER

search Associates in Princeton, N.J. That continued Friday â&#x20AC;&#x153;given that this morningâ&#x20AC;&#x2122;s figures werenâ&#x20AC;&#x2122;t enough to sustainâ&#x20AC;? the recent support for bonds, he added.

Meanwhile, Federal Reserve officials, after raising interest rates in December for the first time since the end of 2015, have sent signals that they are ready to raise rates at a faster clip this year.

However, monetary stimulus remains in place overseas, keeping government-bond yields extremely low in Japan and Europe and creating an incentive for foreign investors to continue buying U.S. bonds.

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

COMMERCIAL PROPERTIES

VICTOR J. BLUE/BLOOMBERG NEWS

The U.S. and European Union have reached a transAtlantic agreement to smooth the ability of insurance companies to operate in the two regions, officials said Friday.

The agreement, reached after more than 20 years of discussions and almost a year of formal negotiations, aims to remove regulatory uncertainty for U.S. insurers that do business in Europe. Meanwhile, EU reinsurers will benefit from changes to collateral requirements that could save them hundreds of millions of dollars.

American International Group Inc. and MetLife Inc. are among the biggest U.S. insurers with European operations. AIG declined to comment. MetLife didnâ&#x20AC;&#x2122;t have an immediate comment. â&#x20AC;&#x153;This is a very welcome development for U.S. insurersâ&#x20AC;? as it â&#x20AC;&#x153;will enable them to write business in the EU insurance market and will alleviate their longstanding concern that lack of equivalence would restrict their ability to be globally competitive in an ever-increasingly competitive insurance marketplace,â&#x20AC;? said Howard Mills, global insurance regulatory leader for consultancy Deloitte Services LP and a former New York state insurance commissioner.

Trade associations representing reinsurers and insurance companies across the U.S. in a joint statement said they welcome the deal, saying it â&#x20AC;&#x153;seeks to resolve significant insurance and reinsurance regulatory issues for companies doing business in both jurisdictions.â&#x20AC;?

Under the agreement, American insurers wonâ&#x20AC;&#x2122;t be subject to new EU insurance regulations, known as Solvency II, that went into effect a year ago.

Europeâ&#x20AC;&#x2122;s rules seek to ensure insurers have enough

ries of bond auctions and a press conference from President-elect Donald Trump. At various points, the rally in Treasurys that began after the 10-year yield hit 2.6% in midDecember threatened to pick up momentum only to lose steam as traders quickly looked to book profits.

The yield on the 10-year note dropped as low as 2.307% Thursday but rose in the afternoon following the completion of a 30-year bond sale. â&#x20AC;&#x153;You began to see even [Thursday] the market seemed to be topping out a little bit,â&#x20AC;? said John Canavan, market analyst at Stone & McCarthy Re-

U.S. regulators made Citadel Securities LLC pay $22.6 million for failing to fill customer orders at the best price, nabbing their first offender in the lucrative side market for executing retail stock orders.

Citadel Securities, which handles more retail trades than any other brokerage, agreed to settle claims that it didnâ&#x20AC;&#x2122;t always obtain the best price for orders despite giving assurances that it would. The trading firm, owned by billionaire investor Kenneth Griffin, handles more than one in three retail orders that once went to stock exchanges, promising better prices and speedier executions.

The practice in which Citadel and other high-tech â&#x20AC;&#x153;wholesalersâ&#x20AC;? pay retail brokers to execute mom-and-pop orders has drawn increased scrutiny in recent years.

Firms such as Citadel, which handles 35% of the average daily volume for retail shares, noted the Securities and Exchange Commission has approved the practice, known as payment for order flow. It results in better prices for retail clients than trading on exchanges, these firms say.

Zia Ahmed, a Citadel spokesman, said the firm takes â&#x20AC;&#x153;very seriously our obligations to comply fully with all laws and regulationsâ&#x20AC;? and is â&#x20AC;&#x153;committed to providing superior service and execution quality to our clients.â&#x20AC;?

The SECâ&#x20AC;&#x2122;s civil probe targeted two specific algorithms that Citadel used to execute about 2.6% of retail orders from 2008 to 2010.

The SECâ&#x20AC;&#x2122;s action faulted Citadel because its agreements with retail broker-dealers didnâ&#x20AC;&#x2122;t fully explain how the algorithms worked and said only that Citadel would get the best available price for clients.

Under the agreement, Citadel will pay a $16 million penalty and forfeit $5.2 million in profits and $1.4 million in interest.

Citadel didnâ&#x20AC;&#x2122;t admit or deny the allegations.

European operations of AIG and MetLife would be affected. capital to weather severe losses and to establish unified requirements across the bloc.

The rules apply only to European firms, but EU representatives had called for â&#x20AC;&#x153;equivalentâ&#x20AC;? regulatory oversight of non-European insurers operating in EU countries.

EU reinsurers could save about $400 million a year in collateral costs in the U.S., according to the European Commission, the EUâ&#x20AC;&#x2122;s executive arm, because collateral requirements for reinsurers operating overseas will be eliminated.

A third pillar of the deal, which isnâ&#x20AC;&#x2122;t binding, is a set of principles outlining how U.S.

and European insurance supervisors should exchange information with one another to mitigate risks in the sector.

EU national governments and the European Parliament have to approve the agreement. The commission hopes to expedite the process by requesting to sign on behalf of member states.

The Office of the U.S. Trade Representative and the Treasury Department, which also joined in the negotiations, sent letters to Congress notifying members of the deal, kicking off the 90-day scrutiny period before U.S. authorities can sign the agreement.

Borrowing Benchmarks | WSJ.com/bonds January 13, 2017 Money Rates 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 donâ&#x20AC;&#x2122;t always represent actual transactions.

Week Latest ago

Inflation Nov. index level

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

U.S. consumer price index 241.353 249.227

All items Core

â&#x20AC;&#x201C;0.16 0.004

1.7 2.1

International rates Latest

Week ago

52-Week High Low

Prime rates U.S. Canada Japan

Policy Rates Euro zone Switzerland

3.75 3.75 3.75 3.50 2.70 2.70 2.70 2.70 1.475 1.475 1.475 1.475 0.00 0.50

0.00 0.50

0.05 0.50

0.00 0.50

0.25 1.50

Britain Australia

0.25 1.50

â&#x20AC;&#x201D;52-WEEKâ&#x20AC;&#x201D; High Low

0.50 2.00

0.25 1.50

Secondary market Fannie Mae 30-year mortgage yields 30 days 3.576 3.556 3.828 2.806 60 days 3.615 3.596 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 arenâ&#x20AC;&#x2122;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

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B10 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* ***

MARKETS

Dow’s Postelection Sizzle Cools Blue-chip index drops 0.4% during the week as investors await Trump policy details

BY CORRIE DRIEBUSCH AND RIVA GOLD The Dow Jones Industrial Average slipped Friday, notching a weekly decline as its postelection rally tapered off.

U.S. stocks have largely moved sideways over the past month, keeping the Dow industrials just shy of the 20000 milestone, after stocks soared following the election on hopes that the new administration would help accelerate a rise in growth and inflation.

Postelection trends in government bonds, the dollar and gold have also showed signs of reversal.

On Friday, the Dow industrials declined 5.27 points, or less than 0.1%, to 19885.73, ending the week down 0.4%.

The S&P 500 rose 4.20 points, or 0.2%, Friday to 2274.64, and the Nasdaq Composite added 26.63 points, or 0.5%, to 5574.12. Trading was quiet, with the fewest U.S. shares changing hands since Dec. 30.

The S&P 500 fell 0.1% for the week, while the Nasdaq Composite rose 1%.

On Friday, shares of J.P. Morgan Chase, Bank of America and Wells Fargo rose after the banks reported quarterly results, sending the S&P 500 financial sector up 0.5%.

Shares of J.P. Morgan rose 46 cents, or 0.5%, to $86.70 after the largest U.S. bank by assets said its quarterly profit beat estimates, boosted by strong trading results. Bank of America’s stock gained nine cents, or 0.4%, to 23.01 as its earnings per share beat analysts’ expectations. Wells Fargo gained 81 cents, or 1.5%, to 55.31 despite its earnings and revenue falling short of analysts’ estimates.

Choppy The Dow Jones Industrial Average and the U.S. dollar retreated during the week, giving back some postelection gains.

The dollar weakened against major peers, including the yen, after President-elect Donald Trump’s midweek news conference disappointed some investors who expected more details about his plans. The British pound, however, continued its post-Brexit slide.

118 yen

$1.24

How many yen one U.S. dollar buys 117

How many dollars one British pound buys

114.497 yen t2.1% for the week

116

1.22

115

1.21

114

1.20

113

1.19

Five-minute intervals

Jan. 9

$1.218 t0.8%

1.23

Close last Friday

10

11

12

13

Five-minute intervals

Jan. 9

10

11

12

13

The Dow Jones Industrial Average came close to 20000, a level it has never reached, but fell short again.

Health-care stocks swung as Mr. Trump criticized the drug industry, and bank stocks got a boost from earnings.

20100

3050

Dow Jones Industrial Average Close last Friday

95

Nasdaq Biotechnology Index

19885.73 t0.4% for the week

20000

3000

KBW Nasdaq Bank Index 2931.563 s0.03%

2950

93

19800

2900

92

19700

Five-minute intervals

Jan. 9

10

2850 11

12

13

Five-minute intervals

Jan. 9

10

91 11

12

93.11 s0.4%

94

19900

13

Five-minute intervals

Jan. 9

10

11

12

13

THE WALL STREET JOURNAL.

Source: FactSet

However, shares of financial companies in the S&P 500 were unable to fully recover from declines in prior days, and the sector ended 0.1% lower for the week.

Health-care shares in the S&P 500 slipped 0.1% on the week, largely coming back from Wednesday’s tumble after President-elect Donald Trump said the drug industry was “getting away with murder” during his first press conference since Election Day. The Nasdaq Biotechnology Index on Friday was little changed from a week earlier, after posting its biggest one-day fall since Oct. 11 on Wednesday.

The dollar stumbled after

some investors had expected more details on Mr. Trump’s plans for fiscal stimulus, deregulation and tax cuts in the press conference. The WSJ Dollar Index, which measures the U.S. currency against 16 others, sank 1% in the week, its worst performance since the week ended Nov. 4.

“I think the market had been giving President-elect Trump a lot of the benefit of the doubt that his pro-business ideas or plans are going to be ultimately enacted, but that antibusiness things such as border walls and trade wars will probably not happen,” said Randy Frederick, vice president of trading and deriv-

atives at Charles Schwab.

Between now and the inauguration on Jan. 20, however, “the market is in a wait-andsee mode,” he said, with investors looking for clarity on the new president’s top agenda items and the timing of expected policy changes.

In the month following the election, financial shares jumped on expectations for higher U.S. interest rates and a rollback of regulation, helping send major stock indexes to record highs. Between Nov. 8 and Dec. 8, financial stocks in the S&P 500 rose 18%. At the same time, the yield on the 10year Treasury note rose about a half of a percentage point.

Those moves have eased since then.

“Many investors felt the rally may have been way too quick postelection,” said Nicholas Angilletta, head of capital markets for Deutsche Bank Wealth Management Americas.

The yield on the benchmark 10-year U.S. Treasury note fell for the fourth consecutive week, settling at 2.380% Friday. Yields fall as prices rise.

Investors also piled into gold. For the week, gold for January delivery advanced 2% to $1,195.30 an ounce, its largest gain since the week ended Nov. 4.

Meanwhile, oil slid 3% for the week to $52.37 a barrel.

HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY

Email: heard@wsj.com

Wells Fargo Is a Loser in New Era The outlook for the top U.S. banks is brightening, but Wells Fargo is being left behind.

That showed clearly when the three major banks reported earnings Friday.

Fourth-quarter net profit rose 24% from a year earlier at J.P. Morgan Chase, and 43% at Bank of America, both beating expectations.

Wells Fargo, on the other hand, saw net profit decline 5.4% from a year earlier, coming in below analyst expectations. Most significantly, Wells Fargo is on the cusp of losing its title as the highest returning big bank to J.P. Morgan, making its valuation look unrealistic.

The fallout from the bank’s account-sales fiasco continues to hurt, mainly through elevated costs.

There was also a $592 million loss associated with interest-rate hedges, which essentially offset hedging gains earlier in 2016.

The bigger picture is that Wells Fargo isn’t set up to benefit as much from the current environment. Its bal-

The Push to 20000 Draws Fresh Cash To an ETF Cousin

Wells Fargo Loses Its Edge Quarterly return on equity 16% 14 12 J.P. Morgan Chase

10 8

Wells Fargo

6

Bank of America

4 2 0 2014

’15

’16 THE WALL STREET JOURNAL.

Source: the companies

ance sheet is deliberately geared toward a low interest-rate environment by holding more long-dated assets. As recently as May the bank said it continues to plan for a lower-for-longer rates environment.

Wells Fargo’s guidance on how it will be affected by rates is also less detailed than peers. On a conference call with analysts, Chief Financial Officer John Shrewsberry suggested the Federal

Reserve’s December interestrate increase, along with recent market moves in longterm rates, would contribute extra interest income somewhere north of $150 million a quarter. That would be an incremental gain of about 1.2% from the level of net interest income in the fourth quarter of 2016.

Bank of America, by contrast, was clearer and more optimistic, saying it expects an extra $600 million in the

first quarter, or an incremental gain of 5.8%.

Wells Fargo, a more retailoriented bank than its peers, is also suffering from its relatively small trading operation. This wasn’t an issue during the years that bond and currency trading activity was weak. But volumes suddenly rebounded in the second half of last year, handing a big windfall to banks like J.P. Morgan.

The clearest indication that Wells Fargo’s edge is slipping is its return on equity, the ultimate gauge of value creation for shareholders. This fell to 10.9% in the fourth quarter, from 11.9% a year earlier. That compares with 11% for J.P. Morgan in the fourth quarter, the first time in years that Wells Fargo wasn’t the top returning big bank.

Despite that, Wells Fargo shares are trading at 1.57 times book value, compared with 1.36 for J.P. Morgan and 0.96 for Bank of America.

This premium looks less justified with every passing quarter.

—Aaron Back

OVERHEARD It turns out Russian 2year-olds are a lot worldlier than anyone knew. The country’s Health Ministry has proposed banning the sale of cigarettes to anyone born after 2014, according to Radio Free Europe.

The measure is aimed at gradually eradicating the unhealthy habit from the country as a whole. About a third of Russian adults smoke compared with just over 15% in the U.S. If it were to take effect, people reaching voting age wouldn’t be able to purchase cigarettes starting only in 2032. An 80-year-old Vladimir Putin would by then be well into his seventh presidential term.

Compare that to Mikhail Gorbachev, who restricted sales of vodka soon after taking power in 1985. He reversed the unpopular program two years later, and four years after that his time in power, along with the Soviet Union, ended.

Apart from a few irked toddlers, the Kremlin has nothing to worry about.

Consumers Are Confident, but Not Enough to Spend Americans say they’re feeling more upbeat about the economy. Retailers will be forgiven if they don’t quite believe that.

The surge in confidence that followed the election of Donald Trump appears to have carried through into 2017. The University of Michigan reported Friday that the preliminary reading on its consumer-sentiment index for January was 98.1, just a snick below the 12-year high of 98.2 it registered in December. In October, the index was 87.2.

It’s the sort of jump that stirs hopes that the economy’s animal spirits—“a spontaneous urge to action

Dearly Departed Department-store sales $20 billion 15 10 5 0 2007

’09

’11

’13

’15

Note: Seasonally adjusted Source: Commerce Department

rather than inaction,” as John Maynard Keynes put it in 1936—are stirring.

But so far not much is stirring at the stores. Also on Friday, the Commerce Department reported retail

sales rose 0.6% in December from a month earlier, a result that fell slightly short of economists’ forecasts despite being buoyed by strong car sales and higher gas prices.

Excluding those categories, sales were flat on the month and up 3.1% versus a year ago. That doesn’t count as a warning sign for the economy, but neither does it count as an indication of renewed vigor.

The sales report also underscored just how bad the holiday shopping season was for many retailers.

Department-store sales declined 8.4% from a year earlier, reflecting the widespread malaise that affected

stores such as Macy’s. Electronics and appliance stores, a category that includes retailers such as Best Buy, slipped 2.4%. Online retailers like Amazon.com are drinking more of brick-and-mortar stores’ milkshake, with nonstore sales (which encompasses internet sellers) up 13%.

For investors, one message from the sentiment and sales reports is that whatever good vibes people are feeling since the election, they may not be enough to meaningfully alter spending habits.

The cautious spending habits Americans adopted in the financial crisis aren’t go-

ing to be unlearned based on who occupies the White House. Rather, wages and job growth will set the tone for how much people buy. How businesses behave will play a big role in how consumers spend during Mr. Trump’s administration.

For traditional retailers, the message is even starker.

Consider: The unemployment rate is 4.7%, and the economy has improved to the point that the Federal Reserve expects to quicken its pace of rate increases. If stores can’t do well in this environment, what happens when the economy, as it always does, slows down?

—Justin Lahart

The Dow Jones Industrial Average’s march toward 20000 is luring investors into the main fund directly tied to the blue-chip benchmark.

Whether prompted by round-the-clock news coverage of the milestone or plainold performance chasing, investors have pumped a disproportionately large amount of new money into the SPDR Dow Jones Industrial Average exchange-traded fund, though it remains a relative speck in the ETF universe.

Total assets in the $15.4 billion Dow ETF have grown 22% as a result of new money entering the fund since Election Day on Nov. 8, 2016, compared with 7.2% growth for the nonleveraged ETFs that follow the S&P 500, according to data provider XTF. Some $2.6 billion had moved into the Dow-tracking ETF from Election Day through Wednesday. The most popular ETF tracking the S&P, the $225 billion SPDR S&P 500 ETF, has attracted $16.2 billion. Excluding the SPY, S&P 500-tracking ETFs have grabbed $7.8 billion, or 5.8% of pre-election assets.

The recent windfall for the Dow-tracking ETF follows a long dry stretch for the fund in 2016 up to Election Day. Some $1.8 billion in assets had left the Dow-tracking ETFsin 2016 through the election, according to FactSet.The SPDR S&P 500 ETF, known by its ticker, SPY, had pulled in $6.7 billion in 2016 before the Nov. 8 election.

The Dow’s heftier exposure to financial stocks including Goldman Sachs Group have lifted the benchmark by 8.5% since Nov. 8, compared with 6.3% for the S&P 500. —Chris Dieterich

WSJ.com/Heard

Fiat’s Weak Finances Are Exposed It’s still early in Fiat Chrysler Automobiles’ regulatory drama, but it looks like the company is in a better position versus the regulators than Volkswagen.

It’s the company’s finances that make it vulnerable.

Chief Executive Sergio Marchionne was quick to stress the differences between his company’s predicament and that of Volkswagen in his public response to Thursday’s allegations by U.S. environmental authorities.

His denial is a key difference: Volkswagen already had admitted the presence of “defeat devices,” illegal software patches that reduce emissions of nitrogen oxides during testing, when the Environmental Protection Agency announced its charges.

Meanwhile, the key technical difference is that the EPA isn't yet accusing Fiat of installing illegal software patches on its diesel engines, but of failing to disclose potentially legal ones. The legality of the undisclosed patches remains under investigation.

This is where the politics comes in: The EPA is about to get a new boss.

The assumption is that Scott Pruitt, Donald Trump’s nominee and a longtime critic of the department he is likely to run, will be more friendly to business. Maybe.

But it will be hard for him to bury the Fiat investigation now that it is in the open.

This is a volatile situation.

Fiat’s shares fell in New York but rose in Milan.

Fiat’s problems with U.S. authorities look much smaller, but it is worse placed to deal with them.

—Stephen Wilmot

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Ringing success: Mobile banking is transforming the lives of Kenya’s poor

Behind the statues: a book’s rare tale of just how the Roman Empire worked

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 T H E 17 18 19 20 21 22 23 24 25 26 27 L E G E N D 28 29 30 31 32 33 34 35 36 37 38 39 40 4 1 42 43 44 45 46 O F 47 48 49 50 5 1 52 53 54 55 56 T H E 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 F I R S T 74 75 76 77 78 79 80 81 82 83 H U N D R E D 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 D A Y S 100 Franklin D. Roosevelt invented the idea of an activist sprint from the start of a presidency, and many of his successors have followed his example. Will Donald Trump make his own early splash?

W

BY RICHARD BROOKHISER

HAT WILL Donald Trump’s first hundred days bring: surprises, achievements, catastrophes? A slow, steady warm-up?

History can’t predict the mix, only offer a range of possibilities for the 45th president. For Mr. Trump, the range is wider than usual because he comes into office untethered by a record and uninformed by experience.

The initial “hundred days” as a distinct period in a presidency was first used to describe the special session of Congress called by Franklin D. Roosevelt in March 1933. It set the template for the opening act of an activist administration: a president and his allies (really subordinates) in Congress passing a bold program to address a crisis. The president, if not the program, is then enshrined in myth.

Roosevelt’s crisis was the Great Depression, which had festering for 3½ years. Unemployment was over 20%, and the banking system had collapsed. In his inaugural address, Roosevelt said, “This nation asks for action, and action now.”

Between March 9 and June 17, Roosevelt signed into

law a heterogeneous package of initiatives. The Agriculture Department would pay farmers not to plant crops. The Civilian Conservation Corps would pay people to plant trees. The Federal Emergency Relief Administration was designed to oversee welfare programs, the Tennessee Valley Authority to build dams and supply electricity in a backward part of the country. The National Industrial Recovery Act gave the president sweeping power to regulate the economy.

Republican presidents have tended to eschew the dramatics of the first hundred days.

These measures were delivered by a Congress with Democratic supermajorities in both the Senate and the House. There were ideological supermajorities too, since conservative Southern Democrats prone to balk at radical reform were offset by progressive western Republicans raring to go.

A crucial feature of Roosevelt’s program was the aura of myth he spun around it. The presidency, he had told a reporter during the campaign, “is more than an

engineering job…. It is pre-eminently a place of moral leadership.” Roosevelt’s rhetoric fulfilled this mandate.

It was simultaneously patrician and populist, devout without being sectarian, urgent without ever committing him to too many details.

His looks and his voice did the rest. His sunrise smile shone through photographs and newsreels, and he addressed the country in 15- to 30-minute radio broadcasts, the fireside chats. Speechwriter Sam Rosenman described the tone of Roosevelt’s chats as “an informal conversation with one or two of his friends.” Roosevelt delivered three of them during the spring and summer of 1933, telling Americans “what has been done in the last few days, why it was done, and what the next steps are going to be.” In his third chat on July 24 he christened the legislative spurt that had just ended “the crowding events of the hundred days.”

Over the years, Roosevelt’s mythmaking would be reinforced by admiring bards and court historians, from Archibald MacLeish to Arthur Schlesinger Jr. But his main mythmaker was himself.

The sprint from the starting line is not the only Please turn to the next page Mr. Brookhiser is a senior editor of National Review and the author of “Founders’ Son: A Life of Abraham Lincoln.”

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REVIEW

Will Trump Follow FDR’s Lead?

Mobile Banking Gives a Big Boost To Kenya’s Poor GLOBALIZATION and unrestrained technological change have plenty of critics, as the election in November amply showed. Many of my fellow anthropologists say that the positive effects of these twin trends have greatly benefited China but have left behind most of the global poor. A study conducted in Kenya and published in the journal Science in December tells a different story.

When I first visited Kenya during my travels in Africa in 1969, extreme poverty was common. The population has quadrupled, and the contrasts remain: In 2011, one in four Kenyans lived in extreme poverty, defined as spending $1.25 a day or less. By several measures, women are financially worse off than men.

This is changing, however, and the new study points to one reason why. In yearslong research gathering data on 1,600 households, economists Tavneet Suri of the Massachusetts Institute of Technology and William Jack of Georgetown University found that one innovation had an outsize impact: mobile banking.

Extrapolating to a nationwide level and controlling for other relevant factors, the researchers estimated that between 2008 and 2014, access to M-PESA (Swahili for “mobile money”) lifted at least 194,000 Kenyan households out of extreme poverty.

Raised in Kenya, Dr. Suri attended Cambridge and Yale on her way to MIT. But this was no one-way journey. She spends months every year studying ways to help alleviate the poverty of her fellow Kenyans.

Mobile phones have made it possible for poor countries to skip having to build a complete landline network. Now residents are skipping traditional banks, too. In the past decade, mobile money has reached 96% of Kenyan households, with 110,000 “agents” across the country operating from small kiosks (an average 0.9 mile from clients, as opposed to 6.2 miles for banks). There, physical cash can be deposited and withdrawn. Once you have made a deposit, you can spend the money almost anywhere. “Think of it as a debit card,” Dr. Suri told me (from the Nairobi airport, on a mobile, of course). You can transfer money to relatives, make informal loans and share investments without cash. It improves “financial resilience.”

She stressed “the distance component,” saying that mobile lets you “create relationships with people who are much farther away.” The average transaction is between people 120 miles apart, a $5 bus ride away if you have to deliver the cash in person. That’s a huge amount for most Kenyans and a big disincentive for small transactions.

When Dr. Suri’s former research manager—one of his father’s 22 children by four wives—wants to help his mom, he sends money with a few clicks from his phone to hers. This reflects another important result: The researchers aren’t sure why, but mobile banking mainly affects women, especially the poorest. The Suri team estimates that it “induced 185,000 women to switch into business or retail” from farming; women also increased saving.

This liberates them in a man’s world and allows higher-risk, higher-gain choices. Microloans—small-scale loans that were much touted 10 or 20 years ago—have proved disappointing for women’’s progress, partly because men grabbed the cash. That can’t happen when there is no cash. Women’s phone transactions are their own. In six years, mobile banking reduced extreme poverty in female-headed households in the sample to 36% from 43%.

Household size fell—possibly, the researchers say, because more children were in boarding schools, a common educational choice in Kenya. More control over money by Kenyan women also seems to mean more schooling for their children.

Dr. Suri’s team is completing similar studies in Tanzania and Uganda, which have also been adopting mobile banking. Referring to the decision to study M-PESA, she adds of her team, “We made a bet in 2008…. It was high-risk, high-return”—just like the entrepreneurial spirit of her subjects.

TOMASZ WALENTA

More women in Kenya now control their own money.

FROM TOP: LARRY DOWNING/REUTERS; NBC NEWSWIRE/GETTY IMAGES

MIND & MATTER: MELVIN KONNER

Continued from the prior page radio, Hollywood and what he called the mashed-potato circuit, he model for beginning an administration. Most presidents before knew how to project his personality via the camera and the mic.

FDR spent their first hundred days feeling their way into the As a speechmaker, he was a master of quiet beginnings, holding job—none more consequentially than George Washington in himself back to draw his listeners and viewers in.

1789. Washington could consult the new Constitution for the He was helped by a near-death experience. John Hinckley’s legal specifications of his new office. But a constitution is not assassination attempt outside the Washington Hilton Hotel on a flesh-and-blood example. Should a president shake hands at March 30, 1981, was a command performance that no screenreceptions? Should he seek the Senate’s advice on treaties by writer would have dared to invent. Rushed to George Washinggoing to the Senate himself and asking for it? No one knew. ton University Hospital, Reagan insisted on walking into the Washington had to answer such questions day by day himself. emergency room by himself even though he had a bullet in his A few unfortunate presidents have been so bombarded by chest. Inside, he cracked jokes. “I hope you are all Republidisaster that they hardly had time for thought or planning, cans,” he told the surgical team before they operated on him. much less slipping into the job. Seven states seceded between “Today, Mr. President,” the lead doctor, a Democrat, assured Abraham Lincoln’s election and his inauguration; four more him, “we are all Republicans.” Woody Allen famously said that bolted during his hundred days. One grim morning in April 80% of celebrity is showing up. One hundred percent of leader1861, as he desperately awaited the arrival of loyal troops in ship is showing up, and saying or doing the right thing. an undefended capital city ringed by secessionists, he comThe first hundred days do not necessarily forecast the rest plained, “I don’t believe there is any North.” of a presidency. Roosevelt found the Depression hard to subBut FDR’s example inspired his successors, chiefly Demodue. Reagan’s budget and tax cuts were followed by a recescrats hoping to join him in the liberal pantheon (and in the sion. Mr. Clinton’s health-care task force ground to failure by winners’ circle of re-election landslides). the summer of 1994. George W. Bush’s compassion agenda was Bill Clinton in 1993 faced no true crisis. His predecessor, George shoved aside by 9/11.

H.W. Bush, had presided over a recession that was already beginSkillful presidents recover from such reverses. Roosevelt bening to lift by the time of Mr. Clinton’s inauguration. But Mr. Clincame a heroic wartime leader in his third term. Reagan’s recession ton had ambitions and sizable Democratic majorities in Congress. gave way to a roaring recovery. Others muddle along.

He tapped into myth by taking a bus to his inauguration from MonWhat does this mean for Donald Trump’s first days in power? ticello (the bus had been his signature campaign vehicle, and JefHe faces a number of crises, more inchoate than Reagan’s or ferson was his middle name). Fellow baby boomers in the press Obama’s, but nagging. The economy has recovered slowly since hailed him as a generational transformer.

2008, and Americans are not happy with it. Bad actors roam the Five days into his term, he made his bid for greatness by world, from lunatics (North Korea) to old rivals (Russia, China) to announcing a task force on comprehensive health-care reform, rampaging jihadists. to be chaired by Ira Magaziner and Hillary Clinton. “I am cerTrump has solid Republican majorities on Capitol tain,” Mr. Clinton said, “that in coming months the American Hill—52-48 in the Senate, 241-194 in the House. But will all Repeople will learn—as the people of Arkansas did—just what a publicans always be in his corner? The Freedom Caucus in the great first lady they have.”

House, which claims to represent the spirit of the Tea Party, Barack Obama in 2009 faced real hard times—a crisis of the has some 30 members. “Freedom” is a word Mr. Trump seldom financial system. Congress and his predecessor, George W. Bush, uses and hardly seems to know. Yet these congressmen reprefearing a second Depression, had already passed a $700 billion sent districts that were solid for Mr. Trump in the fall. Will bank and credit bailout the year before. Mr. Obama, enjoying they follow their principles or their leader?

Democratic congressional majorities as large as Mr. Clinton’s, The great question mark is Mr. Trump’s program. His only saw and raised with a $787 billion stimulus bill in February. In policy preference of long standing is to be tough on trade; he April and May (to stretch the hundred days a bit), Chrysler and was saying so in the 1980s, when the free-trade peril was Japan, General Motors filed for bankruptcy, setnot China. Curbing immigration was such ting up the auto bailout of July. a central issue in his campaign that he Unlike FDR and Mr. Clinton, Mr. could not backtrack on it without shame.

Obama also made dramatic foreign policy Every other position he has taken or moves. “I am not opposed to all wars,” he pledge he has made is written on air, unhad declared as early as 2002, only “to supported by a record of advocacy or evdumb wars,” by which he meant the war idence of thought. in Iraq. He began withdrawing American Mr. Trump’s greatest strength, and potroops in February and announced that tential weakness, is his skill as a mythhe would not stop. “Let me say this as maker. The cartoonist Scott Adams, who plainly as I can: By August 31, 2010, our predicted in 2015 that Mr. Trump would combat mission in Iraq will end.” win the presidency in a landslide, speaks Republican presidents have tended to of his power to persuade by insistently reeschew the dramatics of the first hundred peating large and simple ideas. In his late days, sliding calmly into office. George 60s, Mr. Trump mastered a social medium, H.W. Bush in 1989 was encouraged to go Twitter, that is dominated by younger peoslow by temperament, politics and timing. ple—not in the spirit of moms posting During his campaign, he had promised a adorable GIFs of their kids but with the “kinder, gentler nation.” Democratic majoruninhibited brio of gamer guys or highities in both houses of Congress imposed school mean girls.

BARACK OBAMA signing two executive caution, if not kindness, upon him.

Mr. Trump is a master of the effects of orders on Jan. 26, 2009.

And global upheavals beyond his control words, of how they amuse and wound; of forced him into a spectator’s role. During the meaning, not so much. Since there is his first hundred days, Poland’s Communist government legalized always another tweet coming, who cares what the last one said?

Solidarity, and Chinese students began protesting in Tiananmen That works for an entertainer, or even for a politician whose only Square. China’s liberation movement would be drowned in blood, concern is hogging the limelight—but not for a politician who but Eastern Europe’s would topple a half-dozen Soviet satrapies wants to leave a legacy. and the Berlin Wall before 1989 was over.

Can he keep it up? As an old man, John Adams wrote that George W. Bush, though a brasher man than his father, also George Washington had possessed “the gift of silence. This I escame into office in 2001 speaking softly. Minute Republican teem as one of the most precious talents.” The gift of silence almajorities in Congress—a Senate dependent on Vice President lows a leader to conceal his purposes and forces opponents to reDick Cheney’s tiebreaker and a 10-vote margin in the House— veal theirs. It gives the public a chance to catch its breath. Mr. restrained him. The signature proposals of his first hundred Trump may come to regret that he never acquired it. days—the Office of Faith-Based and Community Initiatives and My instinct about Mr. Trump’s instincts is that he will want the No Child Left Behind Act—were small-bore welfare probold strokes soon. Start building a fence, if not a wall. Talk up grams wrapped in social-conservative rhetoric. infrastructure, even if no plans are in place yet. Nominate a Among recent Republicans, only Ronald Reagan in 1981, perhaps surprising Supreme Court justice (Ted Cruz?). Make splashy, reflecting his youthful admiration for Franklin Roosevelt, adopted friendly trips to Israel, to Britain (in need of friends postthe Democrat’s model. Reagan faced a double crisis: stagflation at Brexit) and, if not to Russia, to some in-between rendezvous home and communism on the march abroad, from Afghanistan to with Vladimir Putin, for a possible deal: You take Ukraine, the Africa. He used his hundred days to focus on the economy, proposWest keeps the Baltics, and together we’ll bomb Islamic State. ing to cut tax rates and the rate of growth of the budget.

Mr. Trump’s first hundred days are harder to predict than Although Reagan enjoyed a partisan majority only in the Senate, any other president’s because he is unprecedented. Every prehe worked with conservative House Democrats. His budget and tax vious president had held a position of public responsibility, eipackages would not pass until the summer, but his advocacy durther as a politician or a general. Donald Trump, uniquely, has ing the hundred days was vital to their success. no experience of leadership, and we have no experience of him What Reagan excelled at, more than any other president since leading. He doesn’t yet know what he is doing, and we have no Roosevelt, was making his own myth. If Roosevelt was the patriway of knowing what he might do. cian reformer, Reagan was the small-town optimist. A veteran of Cheer up—after the first hundred days, there are only 1,361 left.

RONALD REAGAN, pictured on Feb. 10, 1981, used his first hundred days to focus on the economy.

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ELLEN WEINSTEIN

REVIEW

Answers for an Opioid Epidemic Medication is not enough; patients need therapy, support and supervision

BY SALLY SATEL THE GRIM FACES of the nation’s opioid epidemic—an overdosing parent slumped in the front seat of a car, mouth agape, with a neglected child in the rear seat—have become too familiar in recent years. More babies are now being born with narcotics in their systems, foster care is strained, and growing numbers of grandparents are raising the children of their own addicted children.

With an estimated 2.6 million people addicted to opioids—including heroin, fentanyl and oxycodone—the toll is daunting. Fatal opioid overdoses have risen from around 8,200 in 1999 to 33,000 in 2015, according to the Centers for Disease Control and Prevention, making them a leading cause of accidental death.

Last year, deaths from heroin slightly edged out gun homicides for the first time since the government began keeping such data.

Politicians and health agencies are deeply concerned. They overwhelmingly call for a “pub-

lic-health approach” to the epidemic, emphasizing treatment with anti-addiction medications.

As the U.S. surgeon general recently implored, it’s time for us to view addiction “not as a moral failing but as a chronic illness.”

As a psychiatrist who has treated people addicted to heroin for more than 25 years, I endorse treatment over punishment. But the medicalized rhetoric of the public-health establishment—namely, that addiction is a brain disease in which neural circuits are “hijacked” by drugs—oversimplifies the problem.

Consider an addict’s typical course of treatment under this approach. A young woman—let’s call her Kristy—is found curled up on the floor of a supermarket restroom, passed out with a needle still in her arm. Emergency personnel rush to the scene and quickly administer Narcan, a nasal spray containing a fast-acting opiate antidote called naloxone. A few minutes later, Kristy sits up, coughs and looks around hazily.

When taken to the emergency room after being revived, Kristy may simply bolt before any referral to treatment can be made. The siren call of the next fix is strong.

Let’s hope, instead, that Kristy, frightened by her near-death experience, does want treatment.

The emergency-room clinician would refer her to a local physician or an outpatient clinic, where she is likely to be offered a popular anti-addiction

medication called buprenorphine, or “bupe.”

As an opioid drug itself, bupe is a pharmacological replacement therapy, like methadone, the classic anti-addiction opioid medication. It prevents withdrawal symptoms and suppresses drug craving, and usually comes as a filmstrip that dissolves under the tongue.

Bupe has some clear advantages over methadone. Its chemical properties make it less risky if taken in excess. And unlike methadone, which must be dispensed in clinics tightly regulated by the DEA, bupe can be prescribed by any qualified physician, who can refill a month’s worth of the drug from his or her office.

Some patients do very well with bupe, but there are problems. Too many patients continue to use illicit opioids while using the drug. Federal guidelines recommend that those taking bupe receive routine urine toxicology screening (for illicit drugs) and behavioral counseling, but overseeing such a program is a lot to ask of busy primary care doctors, who are the usual prescribers.

Another challenge to recovery is dropout. Despite the heartache that addicts cause themselves and others, ambivalence surrounding quitting is great, and premature termination of treatment is common. Attrition rates of 40% to 60% within a few months of admission are typical in treatment programs. Less time in treatment means that addicts have less time to learn recovery strategies, like identifying the specific circumstances in which they are most vulnerable to craving the drug.

Rushed treatment in the office of a primarycare doctor also means less attention to fixing

the often broken lives of addicts. Healing family rifts, reintegrating into the workforce, creating healthy social networks, finding new modes of fulfillment—all are imperative, but they take time and focused therapeutic care.

The unstructured setting of a doctor’s office can lead to the abuse of bupe itself. Sometimes patients cut off pieces of their bupe strips and sell them to other addicts, who use the drug to detox themselves or to get through times when heroin isn’t available or is too costly. Bupe is now the third most diverted prescription opioid after those containing oxycodone (e.g., Percocet) and hydrocodone (e.g., Vicodin).

My own work in treating addiction takes place in a traditional methadone clinic. Our nurses watch patients swallow the cherry-flavored liquid daily for at least the first few months. If a patient starts using heroin again, we can provide more frequent counseling, do more regular toxicology screening and suspend any take-home doses of methadone to spur better self-control. This careful monitoring is why there is a very low rate of diversion of methadone from clinics.

A similar system could be developed for the early stages of treatment with bupe. Patients would only be referred to local physicians once they are stabilized, a process taking anywhere from a few weeks to a year. Community doctors, who are now often reluctant to accept addiction cases, would be more amenable to treating patients who are securely into their recovery.

I speak from long experience when I say that few heavy users can simply take a medication and embark on a path to recovery. It often requires a healthy dose of benign paternalism and, in some cases, involuntary care through civil commitment.

Many families see such legal action as the only way to interrupt the self-destructive cycle in which their loved ones are caught. Users sometimes want it, too. “If I don’t do this, I’m going to lose my freedom eventually anyway,” a 33-year old heroin user told NPR as he prepared to ask a judge in Springfield, Mass., to commit him to care.

Drug courts are a way to leverage supervision from the criminal-justice system. If participants fail drug tests or violate other rules of the program, the judge tries to sway behavior by imposing consequences ranging from community service to more intrusive supervision to “flash incarceration” (jail stays of a few days).

Many drug courts expunge the records of those who complete treatment, and other variants of criminal-justice supervision can shape behavior using such carrots and sticks alone. The addition of bupe or an opioid blocker (naltrexone)can be offered as an adjunct to these programs.

With public attention and resources now closely trained on the opioid epidemic, there is a real opportunity for enlightened systems of care.

Never before in the history of addiction management have there been so many different therapeutic elements to apply in combination to promote recovery. But we can’t afford to focus on just one set of these tools under the false idea that addiction is a disease like any other.

Addiction isn’t a disease like any other.

Dr. Satel is a resident scholar at the American Enterprise Institute and a part-time psychiatrist at Partners in Drug Abuse Rehabilitation and Counseling in Washington, D.C.

USING ALL OF OUR SENSES IN A SIGHT-OBSESSED AGE COMMON SAYINGS such as “Seeing is believing” and “I’ve seen the light” neatly express our modern faith in the power of eyesight to capture the truth. Whether we’re surfing the internet, picking a restaurant or talking with co-workers, we value visual cues. Indeed, the tendency to rely too much on vision, to the exclusion of other senses, is so common that social scientists even have a term for it: “ocularcentrism.”

Being ocularcentric is instinctive for 21stcentury humans, but what most of us treat as second nature—the dominance of sight—isn’t a given. Not so long ago in human history, we took in information about the world very differently, relying far more on our other senses.

Today, we might be better off if we gave our eyes a rest occasionally and learned to use capacities that we have allowed to atrophy.

Consider the experience of shopping. For most of us, few experiences are more routine— or more visual—than looking for goods in brightly lighted stores. But there are other ways to assess merchandise.

Les Halles, the central market of Paris, operated in almost total darkness for six centuries, until the arrival of gaslights in the 1840s.

Between the hours of 1 a.m. and 7 a.m., wholesalers flooded the space, hawking their wares to retailers who would then take the goods back to their shops in time to open for the day.

Artificial light was scarce. For people of ordinary means, candles were too expensive for lengthy use, and Paris allocated few resources to street lighting. Public lanterns would have burned out long before the mar-

KEITH A. WEBB / THE WALL STREET JOURNAL

BY CAROLYN PURNELL

ket began, which means that the fragile light of the sky was the only illumination available to the thousands of people trying to buy and sell in the morning’s early hours. As the 18thcentury cultural critic Louis-Sébastien Mercier observed, “Most of the deals are done in the dark, as though these were people of a different race, hiding in their caverns from the light of the sun.”

Shrouded in gloom, the market-goers had to rely on touch, smell, taste and hearing to navigate their chaotic realm. In marked contrast to how we behave in today’s well-lit stores, shoppers had to slow down, trust their muscle

memory and engage with the world in a more expansive way.

A trained nose could guide a person toward the tanneries, deft fingers could detect the rough nubs of poorly woven silk, and attuned ears could seek out the call of a trusted merchant. Sellers shouted their prices and audibly competed, making it easier for buyers to find deals in a world without visible price tags.

Consumers could sample goods, and they often identified choice foods more easily because they were swayed not by outward displays but by taste, smell and firmness.

The regulars at Les Halles—like bakers in

France during the same era, who were often referred to as “bats” because their work took place at night—knew things about the world that remained mysteries to those who labored in daylight. Many would have agreed with the philosopher Denis Diderot, who, in 1751, wrote, “I found that, of all the senses, sight was the most superficial.”

Indeed, for Diderot and other thinkers of the Enlightenment, extending our knowledge and know-how beyond the world of sight was a key scientific and experimental challenge.

The Enlightenment reformer Jean-Bernard Mérian proposed, for example, the creation of a school where children would be raised in darkness to make them more manually adept.

And European naturalists of the 19th century, discontent with merely observing their specimens, set out to catalog all naturally occurring flavors (including the nasty ones, like rotten meat) into a taxonomy of taste. Enlightenment—that is, illumination—may have been the great metaphor of the age, but its most influential thinkers knew that the senses beyond sight conveyed many other kinds of information about the world around us.

So the next time that you’re at the mall, don’t just eyeball everything. Consider what your other senses are telling you and how they shape your decision and desires. Like the busy nocturnal merchants at Les Halles, we are sometimes better off in the liberation provided by darkness.

Dr. Purnell is the author of “The Sensational Past: How the Enlightenment Changed the Way We Use Our Senses,” which will be published Feb. 7 by Norton.

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REVIEW WORD ON THE STREET: BEN ZIMMER

WORK IN PROGRESS: HANNAH BLOCH

A Device to Spot Fake Medicines

WHEN more than 300 language scholars crammed into a conference room in Austin, Texas, last week, they were gathering for an annual ritual mixing solemnity and levity: the American Dialect Society’s selection of the Word of the Year.

As chairman of the society’s New Words Committee, I have been overseeing the Word of the Year vote for six years now. After more than an hour of lively, heated discussion, we emerged with our choice for the top word of 2016: “dumpster fire.”

Sure, it’s a two-word phrase, but ever since the ADS started choosing a Word of the Year back in 1990, any dictionary-worthy vocabulary item has been deemed eligible. (In recent years, even hashtags and emojis have merited attention.) More important, the choice must have been newly prominent over the past year and must reflect public preoccupations in some way.

“Dumpster fire,” which we defined as “an exceedingly disastrous or chaotic situation,” certainly fit the bill for 2016.

Time and time again, people turned to the colorful metaphor, in the same semantic family as “train wreck” and “hot mess.” Often, pundits and politicians were dealing with events that, they deemed, were spiraling alarmingly out of control.

The presidential campaign often attracted the “dumpster fire” characterization, especially as Donald Trump made his way through the Republican primaries. In March, Nate Silver of FiveThirtyEight, a website focusing on poll analysis, politics and other subjects, spoke of “the GOP’s dumpster fire of a nomination process.” And in May, Sen. Ben Sasse (R., Neb.) threw up his hands at both Mr. Trump and Hillary Clinton, commenting, “There are dumpster fires in my town more popular than these two ‘leaders.’ ” (Following Mr. Sasse’s lead, the Weekly Standard ran an article headlined, “Our National Dumpster Fire.”)

The expression first caught fire more than a decade ago.

While literal dumpster fires probably date back to the 1930s when the Dempster Brothers first patented their Dumpster trash receptacle, the phrase didn’t become a bleak metaphor until the midaughts. Writing for the South Carolina newspaper the State in 2006, sportswriter Patrick

A colorful metaphor earns ‘Word of the Year.’

Obley wrote, “Tank Johnson’s life is a dumpster fire,” referring to the defensive tackle then with the Chicago Bears.

Over the next couple of years, “dumpster fire” spread among sports commentators, with ESPN radio host Colin Cowherd taking a particular liking to it. Now with Fox Sports, Mr. Cowherd is still at it: His show “The Herd” recently aired “The Browns Are a Dumpster Fire,” a spoof of Billy Joel’s “We Didn’t Start the Fire” detailing the woes of the Cleveland Browns.

The metaphor started catching on beyond the sports world as early as 2008, when a contributor to an online discussion forum of animated movies griped that “‘Shrek 3’ was a dumpster fire, don’t get me started.” But it wasn’t until 2016 that “dumpster fire” took off in a serious way. And as Erin Gloria Ryan of the news/ opinion website the Daily Beast wrote in an oral history of the expression in November, “much like an uncontrolled blaze, it’s not slowing down.”

JASU HU

‘Dumpster Fire’: Phrase Ablaze

MY WEEK: HELEN CZERSKI

A Physicist Makes Waves THE WEEK starts with fog. London can be like an optical illusion, switching its guise depending on your perspective. This morning my bicycle ride to work (I research ocean physics at University College London) shows both sides of its winter personality. The sunrise makes the low blanket of fog over the river glow orange, the silhouette of the city nestled snugly in its peaceful puffy duvet. By the time I cross Battersea Bridge, the morning traffic is starting to roar, and it seems as though every inhabitant is urgently trying to be somewhere else. The city is alive and unpredictable, and I like to feel that I’m part of the beast rather than just perched on top.

TTT I try to have all of my student meetings on the same day each week. Today offers up data from their research on such topics as storms at sea, an attempt to make ring-shaped bubbles, the quirks of artificial raindrops, the speed of a rolling soda can (considerably more nuanced than it sounds) and underwater sound.

The thing I like best about the physics that I do is that it’s visible to us. It’s right in front of our noses, but we’re still picking apart the details of what’s going on. These “mundane” topics still have the potential for genuine voyages of discovery. I generally think that people shouldn’t worry too much about what the universe is up to until they understand their toaster. Anything that excels both at making breakfast and at demonstrating some very fundamental laws of physics is worthy of respect. Never underestimate toasters.

TTT Later in the week, my own research takes priority. I study the ocean surface and how breaking waves and bubbles influence the way that the ocean breathes. I spend a few hours fiddling with computer code and then set it loose on a vast data set from my most recent ocean research trip. It will probably be chugging through the data for a few weeks, but it’s nice to think that even when I’m not working, something productive is happening.

TTT At home the next day, writing, I get distracted by wondering why the roses on my

balcony are still trying to bloom in December. You’ve got to give them top marks for persistence. How and why is it worth their while? I haven’t seen a bee for months.

TTT The work week is put on hold on Thursday, when I meet two friends for a “proper” afternoon tea. We do this every couple of months, and although we’re big fans of tea and cake, the tea emporiums that we visit aren’t really our style. This one has massive antique gilt mirrors, huge velvet curtains and lots of lace.

We giggle away in the corner about our lives, careers, travel, boyfriends (or lack thereof) and the state of the world, and incur gently disapproving looks from the other tables. The loudest sound coming from our neighbors is the dainty clinking of china. One of the cakes arrives with, oddly, a pipette filled with fruit puree stuck in the top, and another with what looks like a pot of glitter. For a moment, we feel as though we’re back at the craft table at elementary school.

TTT The most enjoyable part of the work week is spent planning my next ocean research trip, to the Arctic. I love the challenge of working out how to collect data in a remote environment—in this case, teasing apart why there are bubbles in the water close to Arctic sea ice. These bubbles could be spitting tiny salt particles into the Arctic air, possibly affecting how clouds form in this pristine environment. Finding out about them is physics and engineering and oceanography and logistics all mixed together.

TTT Saturday morning rolls around, and I’m out on the Thames with my teammates, paddling a six-man outrigger canoe. It gives me the connection to the ocean that I miss, living here in the city. And there is something very special about being a modern oceanographer paddling a boat that originated centuries ago in Polynesia past the landmarks of Tudor London.

Never underestimate toasters.

Dr. Czerski is the author of “Storm in a Teacup,” published by Norton on Jan. 10.

IN THE WINTER of 2011-12, a thousand patients being treated at a government-run cardiac hospital in Lahore, Pakistan, suddenly fell ill. They bled from the mouth; their white blood-cell counts plunged. Within weeks, more than 200 had died. The cause: heart medicine that the hospital had administered without realizing that it was contaminated.

Fake, substandard and otherwise compromised medicines are a deadly global problem.

Even before the crisis in Lahore, Pakistan-born bioengineer Muhammad Zaman was looking for novel ways to detect such medicines before they harm patents. That work, done by invitation from the U.S. Agency for International Development and in partnership with U.S. Pharmacopeia, assumed special urgency for him when he heard about the tragedy in the city where his father had grown up.

Dr. Zaman, a professor at Boston University, was working to develop a low-cost, portable and fast way to measure a drug’s purity. As a scientist, he says, “I felt a sense of responsibility. Not all problems can be solved by economics and politics. With the tools I had, I have an equal responsibility.”

While some commonly used (but expensive and bulky) tests can distinguish genuine from fake drugs, and others can verify the authenticity of pharmaceutical labels, “At some point, you need to test what’s inside the pill,” Dr. Zaman says. “You need to know exactly how much is in there.”

He says that his device, called PharmaChk, does just that. It can also measure how quickly a drug’s active ingredient dissolves and is released, which suggests whether the drug will work as it should.

Named one of Scientific American’s “worldchanging ideas” in 2013, the device is a small, easy-to-use technology that relies on advances in the field of microfluidics, Dr. Zaman says.

Molecules are targeted to specific drugs. They bind to the drug, and a fluorescent signal lets the user know what percentage of active ingredient it actually contains. Too low a dose of an active ingredient can lead to drug resistance; too high a dose can be deadly.

Test results arrive in less than 15 minutes, and the device requires little training, Dr. Zaman says. He hopes that consumers or medical and pharmaceutical professionals will be able to use it: “We want to make it very, very simple.”

Medicines can be contaminated by design or carelessness, degraded by heat or bad transportation and storage, contain the wrong dosage and ingredients, or include toxic chemicals or fillers like chalk. Antimalarial medications and antibiotics are among the drugs most commonly found to be substandard, falsely labeled or counterfeit, says the World Health Organization. A 2015 study found that “consumption of poor-quality antimalarials” resulted in more than 122,000 deaths of children under 5 in 39 sub-Saharan African countries in 2013.

In some areas, up to 30% of all medicines may be fake or substandard. “No countries remain untouched by this issue,” says the WHO, including the U.S. In 2013, the Food and Drug Administration found a counterfeit batch of Roche’s Altuzan cancer drug that contained no active ingredient, and in earlier years, it identified fake versions of Lipitor and Procrit.

Dr. Zaman, 39, hopes to make PharmaChk commercial in the coming years. For now, he and his colleagues have been testing and demonstrating its use in Ghana and Indonesia, working closely with authorities in both countries. But technology alone can’t solve the fake-drug problem, Dr. Zaman says: “It has to fit into a system. Without policy makers’ buyin, you can have the best possible technology, but it’s not going to do anybody any good.”

A test of ‘what’s inside the pill.’

PHOTO OF THE WEEK On Track for Their Future Having marked Coming of Age Day at a Tokyo amusement park on Monday, young women in kimonos looked at their phones as they left by train. The day celebrates youth who have reached age 20.

Answers to the News Quiz on page C13: 1.B, 2.C, 3.A, 4.B, 5.B, 6.A, 7.D, 8.C, 9.C YOSHI OTA/EUROPEAN PRESSPHOTO AGENCY

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What the Experts Didn’t Know HOW MANY times have political commentators used the phrase “the end of an age” or “the beginning of a new era” to describe occasions that nobody now remembers and that signified neither the beginning nor the end of anything? Even so, it’s nearly impossible to avoid the conclusion that the election of Donald Trump presages something new in American politics, even if we have no idea what that something is.

That’s American politics, not policy.

Mr. Trump’s presidential decisions are likely to be, though less than ideologically consistent, well inside the mainstream, or not far from it. He will do his part to reorder the nation’s partisan alignments, but that reordering was fully under way when he announced his candidacy in 2015; he is as much a result of it as its cause. In the end, he may or may not transform the presidency and the federal government; he may or may not fundamentally realign American foreign policy.

What he will change, and indeed has already changed, is our electoral politics. And those who opposed his candidacy in 2016—as I did, strenuously— should concede at least the possibility that the change may be for the better.

The shake-up began during the primary campaign, when Mr. Trump, notwithstanding expressions of skepticism and ridicule from the professional political class, maintained dominance over his Republican opponents for a full year. He succeeded by doing everything smart political strategists would have told him—and probably did tell him—never to do. That alone is an achievement worth celebrating.

Over the past half-century, American politics has fallen under the shadowy influence of political consultants, who offer candidates and officeholders counsel on that most bewilderingly protean of tasks: persuading voters. Whether these consultants have any idea how to accomplish that aim is not easy to verify, but the most successful ones know how to hold politicians in thrall. They tell their clients about poll numbers and demographic trends and focus-group analyses and pretend that only they, the consultants, know what it all means.

Although Mr. Trump paid consultants plenty of money in 2016, there was scant evidence of it. He seems to have relied on them for polling but not much else. His staff reserved the largest venues for rallies they could find, and the candidate, having arrived at the appointed time (or late), walked onto the stage and talked about whatever he wanted to talk about. His media strategy, if that’s the right word for it, was similarly slapdash. By all accounts, at least at the beginning, Mr. Trump spoke to any media outlet requesting an interview—a strategy that makes perfect sense to the average American but that political consultants would call foolish or suicidal.

Political consultants are now an entrenched part of what Mark Leibovich, in “This Town,” his uproarious 2013 exploration of Washington’s multidimensional hypocrisies, called the “Wash-

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BY BARTON SWAIM

ington entourage.” Mr. Leibovich wrote that “ ‘politics’ has become a fullgrown and dynamic industry, a selfsustaining weather system all its own.”

Self-sustaining because the clients aren’t spending their own money. For the most part they’re using heavily regulated funds they can’t spend in many other ways, so they’re happy to spend lavishly on the “experts.” Prices go up, consultants get richer and more enter the field. The result: soulless, predictable campaigns consisting mostly of TV ads, phonebanking, talking points robotically recited by candidates and the transparently self-serving arguments of their spokesmen.

But consultants aren’t solely responsible for the dehumanization of American political campaigns. The sheer number of “communications” experts surrounding our politicians, most conspicuously the president but other significant elected officials too, makes the electoral process seem less like a competition between humans than a war of attack ads and rapid-response rebuttals. Commentators have bemoaned the machine-like character of campaigns for years, maybe decades— the spin by politicos, the slick ad messaging, the laughably tendentious arguments made with straight faces by campaign hacks. But no one has figured out what to do about it.

It wasn’t always so. A century ago, U.S. presidents employed no speechwriters or spokesmen; the first presidential speechwriter was Judson Welliver, “literary clerk” to Warren Harding; the first spokesman was George Akerson, who spoke for Herbert Hoover. During the intervening decades, officials surrounded themselves with more and more image custodians: communications advisers, political strategists, external relations officers, social-media specialists, unofficial surrogates, and on and on. The consequence has been to place the na-

tion’s leader behind a wall of “comms” staffers whose job is to calibrate every syllable emanating from the White House. Americans rightly wonder who their president really is and what he really thinks.

Somehow, perhaps by accident, Donald Trump found a way to cut through it all and speak directly to any American willing to listen. Whatever else may be said about the man, his campaign was essentially human in ways ordinary campaigns haven’t been for a long time. His “speeches” were

voted for and against, we applauded and condemned, clapped for and jeered at, a real person. Not a smooth talker with a collection of policies expressed in focus-group-tested catchphrases.

Not an impressive résumé, and not a story of hope or a symbol of progress on gender equality. We elected a person: a man who, whatever his failings, we felt we had come to know.

We can’t sidestep the importance of character and conduct. During the campaign, Mr. Trump spoke disgracefully of women and the disabled; he

nius; he ran for president in 2000, remember, and got nowhere. In fact, he knows very little about politics—and this was his greatest strength in 2016.

To say that electoral politics doesn’t lend itself to expertise isn’t to dismiss expertise itself. Mr. Trump has rightly nominated many experienced and qualified people to run his administration.

The danger in electoral politics lies in elevating the importance of expertise over that of judgment, instinct, experience and a sense of what’s possible at the moment. No expert guessed in 2004 that a state senator with no significant accomplishment to his name would be elected president of the United States four years later.

Which brings us to the most public form of faux expertise in American politics: the political book. The form took shape a half-century ago—perhaps with Theodore White’s “The Making of the President, 1960” or the risible “Profiles in Courage” that Ted Sorensen wrote under John F. Kennedy’s byline—and now pours from the presses in and out of the cycles of American politics. In the moment, these books may be fun for partisans, and just occasionally instructive, but in retrospect they are negligible if not ludicrous. Who in 2017 can imagine reading Sam Tanenhaus’s “The Death of Conservatism” (2009) or picking up Dick Morris’s “Condi vs. Hillary” (2005) for any reason at all?

Worst are the books by politicians themselves, deemed by consultants to be an obligatory part of the campaign.

Many now attempt to imitate Barack Obama’s two memoirs, laying stress on the author’s personal “journey.” Typical of the contemporary genre are Marco Rubio’s “American Dreams” (2015) and Ted Cruz’s “A Time for Truth” (2015). They are constructed well enough but are self-serving and predictable, like campaign speeches Please turn to page C6

Commentators have bemoaned the machine-like character of modern campaigns for years—but until 2016 no one had figured out what to do about it. unscripted and sometimes aimless, and voters flocked to nearly every one. He spoke the way family members speak to one another in the privacy of their homes: the stupid gibes, the bluster, the candor verging on cruelty. It all sounded too familiar to be fake. Voters judged him based on what they heard from the man himself—not what they saw in ads or heard from surrogates.

And he used Twitter to express whatever half-baked opinion came into his mind. Mr. Trump was derided for using the social-media platform to fire off broadsides at 3 a.m., for calling a Republican opponent a “chocker” when he meant “choker,” for misspelling “honor” and for retweeting a supporter’s image of the candidate’s face superimposed on the head of Thomas the Train (“Get on the #TrumpTrain!”).

But people sensed correctly that it was Mr. Trump himself, not some campaign flack, on the other side of those tweets.

Mr. Trump’s victorious campaign gave our increasingly synthetic and inhuman politics an infusion of life. We

scoffed at the self-sacrifice of more than one war hero; he uttered many statements that he knew, or should have known, were flatly untrue. These are serious, regrettable offenses. Even here, though, Mr. Trump exploded the fiction of expertise that has calcified our politics and alienated governors from the governed. That such a man could win a national election should destroy whatever faith we had in political adepts. Where were the experts in 2015 who concluded that, despite everything we knew about him—and all we could guess—Mr. Trump could win the presidency? There were some, but they were very few indeed.

Our experts got it wrong because the field of electoral politics doesn’t lend itself to expertise. It’s even wrong to call it a field. In electoral politics, most rules of success aren’t rules at all, because they change from place to place and from day to day; what works at one time for one candidate won’t work in different circumstances for another. Mr. Trump is not a political ge-

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BOOKS ‘I never saw a wild thing / sorry for itself. / A small bird will drop frozen dead from a bough / without ever having felt sorry for itself.’ —D.H. Lawrence

The Physics of Everyday Life ments, this does not make the body of the duck cold. As the author herself says, “ducks can happily stand on the ice precisely because their feet are cold. And they don’t care.”

This otherwise excellent book did irritate me in a few small ways. A misguided attempt to interpret the British for an American audience ends up falling between two stools when we are told that the British approach

Storm in a Teacup

By Helen Czerski Norton, 275 pages, $26.95

BY JOHN GRIBBIN

Why popcorn pops and ducks don’t freeze when swimming in icy water.

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DID YOU REALIZE that the rumble of thunder associated with a lightning flash is actually a result of the whipcrack sound from the lightning flash taking longer to reach the ear from greater heights up the lightning bolt itself? “These sound waves are travelling at about 1,100 feet every second or 767 mph, which means they’re taking 4.7 seconds to cover a mile,” explains Helen Czerski in her entertaining new book. “What I hear just after the initial crack is the sound from slightly higher up the lightning bolt.

It started as the same sound but it took longer to reach me because it had to travel a sloping, and therefore longer, path. And then as the thunder rumbles on, I’m hearing the sound from higher and higher up that same lightning bolt.”

Ms. Czerski is a British physicist with wide experience as a science popularizer both in print media and for the BBC. The emphasis here is definitely on “popular”; “Storm in a Teacup” is very much a fun book, pulling together many easily accessible accounts of how physics explains everyday phenomena, from the titular teacup swirls to the reason why ducks don’t freeze when swimming in icy water. Most of the stories are selfcontained, so the reader can dip in anywhere and be pretty sure of pulling out a juicy plum; many are anecdotal, drawing on the author’s experience as a marine researcher, investigating what goes on at the boundary between sea and atmosphere. Ms. Czerski is at her best when describing her personal experiences of natural phenomena, whether this is her struggle with scientific equipment on the heaving deck of a research vessel in a storm, or something as familiar to the reader as that flash of lightning. The result is a painless way of learning how the world works, like having a friendly physicist giving you a personal fireside chat.

Although individual anecdotes are

self-contained, “Storm in a Teacup” is arranged thematically, with eight chapters each jumping off from a particular phenomenon (such as the reason why popcorn pops) and developing a theme based on that everyday event (in this case, how space rockets work), with a final chapter looking at humankind’s place in the universe.

I particularly enjoyed the discussion of why coffee stains dry out to produce brown outlines—not because the explanation was a surprise to me, but because of the nod that she gives to the pioneering microscopist Robert Hooke, whose contribution to the scientific revolution of the 17th century is so often overlooked. “Hooke,” she says, “hadn’t just shown the way to the world of the small; he’d thrown

open the doors and invited everyone in for a party. [His book] Micrographia inspired some of the most famous microscopists of the following centuries, and also whetted the scientific appetite of fashionable London.”

Indeed “Storm in a Teacup” whets the appetite in the same way, and the fact that there is indeed a connection between Hooke’s work and the way a puddle of coffee dries out gives a hint of the approach used by Ms. Czerski.

One thing I learned was why ducks paddling in cold water are able to maintain their body heat. The chapter is jokingly titled “Why Don’t Ducks Get Cold Feet?” but what it actually makes clear is that their feet do indeed get cold (very cold). Yet thanks to some ingenious plumbing arrange-

to solving a problem is to “find the cookie tin and put the kettle on.” In my experience, a Britisher might have a biscuit tin, and an American might have a cookie jar. No Britisher I know has a cookie tin, but perhaps they do things differently on board ocean research vessels.

More seriously, a reference to radio waves spreading out in a circle from the sinking Titanic misses the opportunity to point out that they actually spread spherically, which is relevant to the story built up from that remark. I suspect that the author meant “spherical” but wrote “circular” and never corrected it. Finally, one of my pet hates is to see a physicist refer to “the Theories of Special and General Relativity.” It is the theories that are special (that is, restricted to the special case of uniform motion) or general (that is, generally applicable to any motion), not the relativity!

As these examples show, the book would have benefited from a final polish by an editor with an equal understanding of physics and the vernacular. But its minor flaws are unlikely to trouble the intended audience. “Storm in a Teacup” would be an ideal gift for any scientifically inquisitive person, including children or adults who retain a child’s sense of wonder. Robert Hooke would have loved it.

Mr. Gribbin is a visiting fellow in astronomy at the University of Sussex and author of “Almost Everyone’s Guide to Science.”

Concord’s Enchanted Forests

By Kevin Dann TarcherPerigee, 387 pages, $30

BY GERARD HELFERICH IF BIOGRAPHIES were maps, most would be trusty road atlases, tracing the major highways and stressing the linear, point-A-to-point-B trajectory of a life. Although such books occasionally detour down a less-traveled track, generally they conduct us on wellknown thoroughfares to predictable points of interest.

In biographies of Henry David Thoreau, the landmarks are familiar: birth in Concord, Mass., in 1817; graduation from Harvard College; brief career as a schoolteacher; association with his mentor, Ralph Waldo Emerson; voluntary seclusion on Walden Pond; incarceration for refusing to pay his poll tax; lifelong bachelorhood; daily walks and minute observations of nature; modest list of publications during his

Thoreau was fascinated with fairies, zodiac signs and dream visions. lifetime, including poems, essays and two books, plus the letters and copious journals that would be published posthumously; death on May 6, 1862, just shy of his 45th birthday.

As for Thoreau’s intellectual journey, the way has also been clearly marked, including his transcendent appreciation of nature; argument for the duty of civil disobedience; embrace of individualism and rejection of commercialism; advocacy of abolitionism and Darwinism; and influence on future activists such as Mahatma Gandhi, Martin Luther King Jr. and innumerable environmentalists.

Although Kevin Dann’s “Expect Great Things” is billed as a biography, it breaks nearly every convention of the form, speeding past most of these milestones with scarcely a glance. And so Thoreau’s longtime work in the

family business, a pencil factory, is barely touched on; his cause of death (tuberculosis) is not specified; and his critique of industrial capitalism is alluded to but never discussed in any depth. Instead, with Thoreauvian nonconformity, Mr. Dann explores lesstrafficked byways. “The fact is,” Thoreau admitted, “I am a mystic, a transcendentalist, and a natural philosopher to boot.” In this book, published in time for the bicentennial of its subject’s birth, Mr. Dann plumbs Thoreau’s lifelong spiritual quest, including his preoccupation with fairies, astrology, dream visions and Native American myths.

Like his contemporaries, Thoreau was introduced to the world of fairies as a child, through nursery rhymes and chapbooks, which were pamphlets sold by itinerant peddlers and populated by ghosts, nymphs, goblins, elves and other denizens of the fairy realm. “For Thoreau, Emerson, Hawthorne, and other well-educated high-romantic youths,” Mr. Dann writes, “the fascination for faerie seemed a happy prolongation of youth into adulthood, and it was encouraged by the wider world.” In fact, “this preoccupation with the realm of faerie was not restricted to dreamy teenagers and genteel village Victorians but was shared by Boston and Concord Brahmins.”

At Harvard, Thoreau’s interest in the supernatural broadened, with his study of Greek, Roman and Nordic mythology and his reading of authors such as Shakespeare, Washington Irving, Sir Walter Scott and John Milton, who variously spun tales of fairies, spirits, witches and demons. In his late 20s, Thoreau was still writing poems about his sightings of fairies in the forests and meadows around Concord. And for those who might be tempted to read such visions as poetic fancy, Mr. Dann assures us that the author’s belief in the ethereal beings was literal.

Thoreau’s fixation on the otherworldly also extended to astrology. By the early 19th century, educated Americans considered divination by zodiac a crude superstition, but Thoreau sided with his hero Sir Walter Raleigh, who had sworn by “starlearning” and had believed that the constellations were “of far greater use, than to give an obscure light, and for men to gaze on after sunset.”

Wrote Thoreau: “The stars are God’s dream—thoughts remembered in the

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Expect Great Things

silence of his night.” He believed that “my fate is in some sense linked with that of the stars. . . . It surely is some encouragement to know that the stars are my fellow-creatures, for I do not suspect but they are reserved for a high destiny.” He was particularly susceptible to the power of the full moon, Mr. Dann says, which he thought lifted his soul out of his physical body and made him more receptive to the spiritual realm.

During his sleeping hours, Thoreau supposed, he communed with celestial beings. “Each night I am gathered to my fathers. The soul departs out of

the body, and sleeps in God, a divine slumber.” Mr. Dann explains: “In modern parlance, we would say that Thoreau was dreaming lucidly. In lucid dreaming, as the astral body expands out into the cosmos, a stronger than normal link is maintained with the etheric and physical bodies, preserving a partial state of wakefulness.”

As seen in this last passage, it’s not always easy to follow Mr. Dann down these dusky philosophical paths. And it’s not only a question of his vocabulary, which drops words—“etheric,” “hermetic,” “phenology”—that will send mere mortals reaching for the dictionary. As the above snippet shows, he presents his subject’s metaphysical musings so uncritically that it is sometimes hard to tell where Thoreau’s concept of the supernatural leaves off and Mr. Dann’s begins.

Readers who simply want to familiarize themselves with Thoreau’s life and thought would do well to stick to a conventional biography, such as the highly praised “Henry Thoreau: A Life of the Mind” (1986) by Robert D. Richardson Jr. But those who already have a passing acquaintance with Thoreau’s life story and ideas and who wish to take a walk on the ethereal side may enjoy this thoughtful if sometimes abstruse consideration of Thoreau’s enduring spiritual journey.

The book’s title, by the way, comes from a letter that Thoreau wrote to a friend. The context was botanizing, but as Mr. Dann points out, Thoreau adopted the principle as a general law of life: “In the long run we find what we expect. We shall be fortunate then if we expect great things.”

Mr. Helferich is the author, most recently, of “Theodore Roosevelt and the Assassin: Madness, Vengeance, and the Campaign of 1912.”

Experts Are Over

Continued from page C5 without the excitement. Candidates who don’t have a narrative to retail publish “blueprints” or “road maps.”

Then there are prognosticatory books, identifying some trend that will shape the next 20 or 30 years. Many offer genuine insights—Rebecca Traister’s “All the Single Ladies” (2016), on the effects of single women outnumbering married women, or the millennial pundit Paul Taylor’s “The Next America” (2014), on the approaching demographic revolution—but they rarely have real predictive value. John Judis and Ruy Teixeira’s “The Emerging Democratic Majority” (2002) appeared to be vindicated by events—just before events went the other way and undermined it. In 2008, Ross Douthat and Reihan Salam, in “Grand New Party,” imagined a GOP for the working class, but the partial fulfillment of their idea—the Trump revolution—was an unpleasant surprise to them.

Entertaining, if off-putting, are the partisan tirades—books by David Brock and Ann Coulter are feverish instances, books by Paul Krugman and Mark Levin slightly saner ones—in which the authors pretend to believe America has been “hijacked” or “taken over” by some tiny minority of nasty but very smart people. Another class of books dwell on how Washington used to be better. Chris Matthews has a minor side business with titles such as “Tip and the Gipper: When Politics Worked” (2013), and roughly once a decade Kevin Phillips—“Arrogant Capital” (1994), “American Theocracy” (2008)— tells us that politics has sunk to some new level of cynicism or ineptitude.

Closely related are the “system is broken” exposés, books with long abrasive subtitles and apocalyptic premises, like Jane Mayer’s “Dark Money” (2016). Her argument—that the libertarian billionaires Charles and David Koch are having their way with America’s republic—was undermined by November’s election, in which substantially less was spent to boost the winner than the loser ($932 million as against $1.4 billion, according to the Washington Post). Indeed, the absurdity of her thesis was already apparent in 2012, when the “Kochtopus” failed spectacularly to unseat President Obama.

Curiously, the most forgettable political books are the “definitive” ones.

Witness “Game Change” (2010) and “Double Down: Game Change 2012” (2013) by Mark Halperin and John Heilemann. These hefty accounts purport to tell the “definitive” stories of the 2008 and 2012 presidential elections by offering up assorted anecdotes and haphazardly arranged quotes from interviews, all strung together with melodramatic language (“On a glide path to history, they quailed at having to introduce an unpredictable variable”). Definitive or not, they are almost unreadable.

The most rewarding political books published nowadays, to my mind, treat the whole subject with a kind of grim detachment. I think of Mr. Leibovich’s “This Town” or of McKay Coppins’s hilarious account of the GOP’s quest for the White House, “The Wilderness” (2015). Mr. Coppins follows the party’s innumerable presidential contenders with an eye for detail and a fine sense of the absurdity. It was from Mr. Coppins’s book, published as the Republican primary began in earnest, that I learned something valuable about the man who went on to win. The author had to go through consultants and staffers to find out anything of substance about the other candidates, but he was able to talk to Mr. Trump himself, at length and about anything.

Granted, Mr. Trump at other times has trashed the same author on Twitter for insufficiently favorable coverage, but the point remains: The guy who won the primary made himself available to any reporter who wanted to talk.

However the 2016 narrative is eventually written, and whether the new administration succeeds or fails, Mr. Trump’s victory will remain a powerful rebuke to modern America’s tendency to create fields of expertise where they don’t belong. Of course, it hasn’t been and won’t be interpreted as such by political consultants and most professional pundits and academic experts in electoral politics. But over time aspiring politicians may begin to realize that it may be more effective—and far cheaper—to “consult” with friends and family members than to hire revered jargon-spouting experts. The beginning of a new era, indeed.

Mr. Swaim is the author of “The Speechwriter: A Brief Education in Politics.” He will be writing a periodic chronicle of political books for the Weekend Journal.

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Saturday/Sunday, January 14 - 15, 2017 | C7

BOOKS ‘It was an inflexible maxim of Roman discipline that a good soldier should dread his own officers far more than the enemy.’ —Edward Gibbon

The Wall and the Cross The Triumph of Empire

By Michael Kulikowski Harvard, 360 pages, $35

ANCIENT ROME CONTINUES to fascinate us, with each new generation seeing echoes of its own hopes and fears in the rise and fall of an empire that seems simultaneously modern and alien. Only a handful of empires have controlled more territory than the Roman one, and none of them have lasted anything like so long or been unchallenged by serious competitors. This means that there is a lot of Roman history, even if popular interest tends to focus on the same few stories, such as the epic struggle with Carthage, the larger-than-life personalities of Caesar, Augustus, Caligula and Nero, or the destruction of Pompeii. Long periods are too often neglected, which makes Michael Kulikowski’s “The Triumph of Empire: The Roman World From Hadrian to Constantine” all the more welcome.

This is the first volume to appear in a series that aims to provide a detailed narrative history of the ancient world, with other volumes dealing with earlier and later periods. It will probably shine even more in the context of the series, and some topics are clearly intended to prepare the way for the next book, for instance the discussion of the wider Eurasian context. As it stands, the era covered in “The Triumph of Empire”—from Hadrian’s accession in A.D. 117 to the death of Constantine’s son Constantius II in 361—is not an easy one to present to a popular audience, for much of it will be unfamiliar. Hadrian is still remembered, not least because of Hadrian’s Wall, which once stretched from coast to coast in northern Britain.

Constantine is known as the first emperor to become a Christian—and still prompts surprising degrees of passion, based largely on one’s view of religion and in particular of the Catholic Church. Of the rulers in between we remember Marcus Aurelius for his “Meditations” and his son Commodus as the bad guy from the movie “Gladiator,” but that’s about it. Commodus was murdered in A.D. 192 and Constantine proclaimed emperor in 306, but how many people—even those keen on

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BY ADRIAN GOLDSWORTHY

HEIRLOOMS Roman statues in a cloister partly designed by Michelangelo at the Baths of Diocletian, Rome. history—can name any of the emperors between the two?

Yet there were dozens—perhaps even scores—of them, depending on whether or not you count all of the men whose reigns ended within days, and a major part of Mr. Kulikowski’s story concerns palace conspiracies, assassinations, challenges to the throne, and civil war after civil war.

Describing the appearance of a usurper in A.D. 253, he notes that the “new challenge was triggered by events that should now be numbingly familiar to the reader: a general on the frontier wins a battle against some barbarians, takes the purple, marches against the reigning emperor, and both would rather allow the provincials to suffer than let their rival gather momentum.” Turnover was rapid, especially in the middle decades of the third century, with some rulers barely having time to start minting coins, which was one of the first steps to legitimacy. The Goths killed Decius in 251, and the Persians captured Valerian in 260, but everyone else committed suicide or was killed by fellow Romans, apart from Claudius Gothicus, who fell victim to a plague.

It is a complicated story and rarely

an uplifting one, made all the harder to follow because there are scarcely any good narrative sources describing it. You can sense the author’s relief when, near the end of the book, he reaches the detailed account of Ammianus Marcellinus, an eyewitness to many of the events he described in the second half of the fourth century.

Establishing just what happened is often difficult and sometimes impossible. Explaining it presents almost as great a challenge, with minor variations on that numbingly familiar theme, and Mr. Kulikowski does not “shy away from introducing a great many Romans, with their long, often unmemorable, names.” For someone unfamiliar with the period, the story can be heavy going, but persistence will be rewarded. It is the fault of our sources and not the author that many of these people remain little more than names, their personalities vague and unreachable.

This was an era of great change, and Mr. Kulikowski is an excellent and insightful guide to the process, which is not to say that everyone will accept all of his conclusions, given the topic and the great gaps in our evidence.

Nor can he hope to cover everything in one volume, so topics like the econ-

omy, law and society, the army, and life and culture in the provinces cannot be explored in detail. As he emphasizes, one of the greatest reasons for the Roman Empire’s success was its ability to win over the inhabitants

From Hadrian to Constantine, Roman emperors survived by coopting provincial elites. of the provinces, especially local elites, who in time became Roman citizens and might advance to the rank of equestrian (or knight) or become a senator or even emperor.

In Hadrian’s day, most of the key posts in the army and administration went to one of the 600 or so senators.

An emperor had either to come from the imperial family or at least be a senator. Then, in 217, the murdered Caracalla was replaced by the equestrian commander of his bodyguard, and as the third century progressed more and more emperors were equestrians. Senators stopped holding military commands, mainly because inse-

cure emperors were reluctant to trust them with control of large numbers of soldiers lest they become rivals. This in itself greatly reduced their chances of becoming emperor. Equestrians took over ever greater responsibilities as officers and bureaucrats who were professionals and much more numerous than in earlier centuries. Constantine had some 20 times as many civilian administrators at his disposal as Hadrian: well over 30,000, compared with, at most, some 1,500 under Hadrian—although we should still note that this “big” government was still tiny by modern standards.

“The Triumph of Empire” is more concerned with how this all happened than why. Mr. Kulikowski notes that the separation of civil and military command and the splitting of provinces into smaller sub-units may have improved efficiency but was also meant to make it harder for anyone to challenge the emperor. Survival was surely the priority of every emperor in these violent times, and often government and military appear less rather than more efficient than in Hadrian’s day. Strongmen like Diocletian and Constantine stayed alive and in power for decades, but these were rare exceptions, and long-term stability never returned. Constantius II died while on his way to fight his cousin Julian, who had rebelled against him.

The main problems faced by the empire came from the inside. Hadrian provoked a rebellion in Judaea, where for a couple of years an independent state flourished, but after that there were no serious independence movements in the provinces, for the provincial populations—or at least their leaders—had become Roman. Instead, Roman fought Roman in civil wars where ideology played no significant part, and no external enemy was strong enough to do more than raid or nibble away at the frontiers. At the end of the period the Roman Empire remained vast and strong, unmatched in sheer power by any of its neighbors, but its political system was profoundly changed. It is arguable whether it was quite as strong as it had once been in the more stable era of Hadrian—“Survival of Empire” may be more apt than “Triumph”—but it was undoubtedly still there.

Mr. Goldsworthy is the author, most recently, of “Pax Romana: War, Peace and Conquest in the Roman World.”

Mormonism’s Gender Gap A House Full of Females

By Laurel Thatcher Ulrich Knopf, 484 pages, $35

KNOPF

BY ALEX BEAM IN ‘THE GATHERING of Zion: The Story of the Mormon Trail,” (1964) Wallace Stegner tells the dramatic story of the Latter-day Saints’ 1,300mile migration from Illinois, across the Rocky Mountains to their Zion: Salt Lake City. Hailing the Saints’ “devotion and heroism” during the arduous wagon train journey, Stegner writes: “Especially their women. Their women were incredible.”

They did it all. Women drove oxen, prepared food and wrote hymns still found in church hymnals. “As we journeyed, mothers gave birth to offspring under almost every variety of circumstances,” according to poet Eliza Snow. “In tents and wagons—in rainstorms and in snow storms.”

Women have been both heroes and victims in Mormon culture. The church banned polygamy only in 1890. Yet in 1870, the Utah legislature granted women the right to vote, a full half-century before the 19th Amendment opened suffrage to American women. So for 50 years, Mormon women, purportedly subject to “a Mohammedan barbarism revolting to the civilized world,” as a Vermont congressman referred to “plural” marriage, enjoyed greater civic freedoms than their Gentile, or non-Mormon, counterparts. Almost a century and a half later, women continue to have an ambiguous status in Mormon faith and culture.

So it is an event of some note when Laurel Thatcher Ulrich, a Harvard professor, winner of the Bancroft and Pulitzer Prizes, and former president of both the American Historical Association and the Mormon History Association, decides to take on the roiled history of women in the early church.

The result is less than one might have

hoped: an overlong, equivocating rehash of early Mormon history mainly composed of women’s and men’s diaries. What could have been a spirited tale of domination and defiance too often reads like a bloodless recitation.

Ms. Ulrich coined the phrase “Wellbehaved women seldom make history” in a 1976 academic journal article, and she went on to write a book in 2007 with that provocative title that celebrated troublemakers such as Elizabeth Cady Stanton and Virginia Woolf. Yet there is a marked absence of china-rattling in “A House Full of Females: Plural Marriage and Women’s Rights in Early Mormonism, 1835-1870.” If, as she writes, church founder Joseph Smith wanted equal religious status for women, why do they continue to enjoy only second-class status in Salt Lake City? And what of the “divine revelations” that cemented women’s inferior status in the church? One longs for a badly behaved historian calling out the fraudulent iniquities faced by female Saints throughout church history. Readers, and Mormon women, remain the poorer for it.

The author cannily launches her book in 1870, when several thousand Mormon women organized an “indignation meeting” at the Salt Lake Tabernacle to protest Congress’s proposed anti-polygamy legislation. Ms. Ulrich thoroughly investigates the pains inflicted by polygamy later in her narrative, but in 1870, she writes, Mormon women simply “did not want to be rescued by those who neither understood nor valued their faith.”

After 50 pages of throat-clearing about the early church, Ms. Ulrich

takes us back in time to 1842, shortly after church founder Joseph Smith founded a 10,000-plus-member Mormon colony on the banks of the Mississippi. It was in Nauvoo, Ill., that Smith received his revelation concerning “celestial marriage,” and he and other married members of his inner circle started to wed new, often younger, wives. Simultaneously, Smith’s wife Emma became president of the newly created Female Relief Society, tasked,

inter alia, with protecting the morals of Nauvoo’s young female residents.

Ms. Ulrich finesses the complicated relationship between Emma, who grudgingly turned a blind eye to polygamy during Joseph’s lifetime, and her husband. But she does report that Joseph, facing opposition to polygamy from both within and outside the church, offered women ecclesiastical parity with men. When he told the Relief Society “I now turn the key to you,” Ms. Ulrich explains that the metaphorical “keys offered assurance of salvation, the power to unlock the gates of hell and death.”

How do we know that Smith offered women the coveted priesthood status? Because the church revised its own history about a dozen years later, when Brigham Young censored the official records of Joseph’s Nauvoo pronouncements. Snow, the poet, recorded Smith’s comments about sacred keys for the Society, adding that he was going “to make of this Society a kingdom of priests.” Men who hadn’t been present at the Society meetings changed Snow’s account, deleting the allusions to women’s rights, with Young’s approval. This won’t be news to those who know the history of the church, but it remains shocking.

The swashbuckling Young, dubbed “the Lion of the Lord” by his followers, cared less for women’s rights than Smith, who was killed by a mob in 1844. Just a year after Smith’s death, Young disbanded the Relief Society as he battled Emma for influence within the leaderless church. “I don’t [want] the advice or counsel of any woman— they would lead us down to hell,” he declared. After he consolidated power in Utah in 1851, Young continued to rant against women, once even comparing their childbearing habits unfavorably to animals. “Let the wife rule the Husband & she will keep him tied to the dish cloth & kitchen all the days of his life,” he told his flock.

As the 1870 indignation meeting makes clear, there are many layers to the story of polygamy, and to the role of women, in Mormon history. Writing a letter just after polygamy had been introduced, Mary Richards, and an immigrant from Lancashire, England, recorded that “there is no such a thing

as happiness . . . where a man has more than one [wife].” But Ms. Ulrich also notes that some plural marriages were ceremonial, not sexual, intended to guarantee unattached women a partner in the afterlife. Furthermore, some marriages were arranged for economic reasons—a widow needed a home, or a large family needed household help. Smith and his inner circle insisted that polygamy was a divine revelation, so women reluctant to succumb to them risked their status in the afterlife.

And what of the famous polygamy revelation itself, which Smith first set to paper in 1843? Purportedly revealed to Smith by God, the text has some very convenient strictures. For instance, God warns Emma that if she

In 1870, Utah granted women the right to vote, a full half-century before the 19th Amendment. doesn’t accept her husband’s philandering, “she would be destroyed.” Is this really how God talks? Shenanigans like these may call for a bit less historical detachment.

Mormon women today have second-class status in the Church of Jesus Christ of Latter-day Saints. Only men can hold “priesthood” offices, the supervisory roles in the church. A 12man Quorum of Apostles rules the global, 15-million member religion.

The subject of women’s rights remains sensitive: In 2014, the church excommunicated Kate Kelly, the founder of Ordain Women, which sought priesthood status for women. To return to the start of Ms. Ulrich’s book: Where is the indignation?

Mr. Beam is the author of “American Crucifixion: The Murder of Joseph Smith and the Making of the Mormon Church.”

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BOOKS ‘She wondered whether the books she loved consoled her precisely because they were the manifestations of her own isolation.’ —Rachel Cusk FICTION CHRONICLE: SAM SACKS

THE TITLE of Rachel Cusk’s 2014 novel “Outline” suggested a story only in broad strokes. Her follow-up, “Transit” (Farrar, Straus, 260 pages, $26), suggests something in progress. “Outline” followed a novelist named Faye on a trip to Greece to teach a writing seminar.

Little was revealed about the narrator except that she was coming off a personal crisis, likely a divorce. Instead of examining her own psychology, Faye recorded the stories told to her by colleagues, students and acquaintances.

Their subjects—failed relationships and the difficulties of writing—formed a carpet in which readers could discern the shape of the strangely silent figure.

In “Transit,” the second book of what is now billed as a trilogy, we learn more about her. Faye has moved to London with her two sons after a long period of absence. The crisis still defines her. Her ex-husband lives in the city, but she appears to want nothing to do with him. Instead we find her dying the gray from her hair and going on dates. So many friends say that they’re glad to see her getting back on her feet, she worries she had “come to embody some particular fear or dread for the people who knew me.” But rather than make things easy on herself, Faye purchases a derelict apartment and then goes into debt renovating it. The book takes place over weeks of upheaval as construction workers usurp her house and she incurs the everlasting hatred of her neighbors.

“Transit” is, again, a novel of anecdotes—confided by friends and colleagues, by men hoping to seduce Faye, by the workers, the realtor and even the hairdresser. “I had found out more . . . by listening than I had ever thought possible,” Faye says in a rare interjection.

But just what she—and by extension the reader—is learning from these conversations is less evident.

The mood of “Outline” was pensive and melancholy, expressing in marblelike prose a resigned dissatisfaction with the work of sustaining a marriage or writing a meaningful book. In “Transit” the main emotion is irritability. Many of the stories are about domestic squabbles and mishaps. A friend is late for coffee because an in-

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The Middle of the Journey

door sprinkler system goes off in her apartment. A dinner party Faye attends devolves into bickering and accusations when the hosts’ children refuse to eat the fancy food. Faye is assailed with vile insults from neighbors angry about the construction, and she pays the nastiness forward by dismissing the idea behind a novel one of her students has spent years preparing to write.

Late in the book, remembering a fraught evening during her marriage when her husband was late, Faye recalls that the tension was “related to the provisionality of the situation, the fact that we were waiting.” This tension is uncomfortably ubiquitous in “Transit,” which faithfully captures the feelings of agitation and powerlessness that come with change. But these are not especially edifying feelings to develop, and as a stand-alone novel “Transit” is a puzzling spectacle of tetchy behavior.

Only in the context of the sequence does it gain larger meaning. On one level the episodes represent the unsettled challenges of constructing a

new identity after a collapse. On a metafictional level, they represent the chaotic journey from abstract outline to nascent creation. The next book, if Ms. Cusk follows through on her premise, should explore the phenomena of arrival and completion. “Transit” is a frustrating, fractious experience, but it should be a step toward a unique and rewarding whole.

Han Kang’s “Human Acts” (Hogarth, 218 pages, $22) is about the 1980 Gwangju Uprising, in which hundreds of students demonstrating against South Korea’s military dictatorship were massacred. Ms. Han depicts the event in a mosaic of linked stories. One takes the perspective of a student volunteering in a makeshift morgue during the crackdown. Another, set years later, focuses on a former prisoner who relives his torture and interrogation. The epilogue, which brings the book to the present, is the author’s personal reflection on the tragedy’s aftermath.

When “Human Acts” was published in South Korea in 2014, it was lauded for frankly describing atrocities that,

historically, had been suppressed. The acclaim that Ms. Han has received in the West, however, has more to do with her themes, as her fiction is

Rachel Cusk captures the feelings of agitation and powerlessness that come with change. closely in tune with a popular line of academic theory that frames the human body as a site of political violence and protest.

“The Vegetarian,” her 2007 novel about a South Korean housewife who abruptly decides to live as a plant, consuming only sunlight and water, was celebrated for this preoccupation upon its translation into English last year. And in “Human Acts” the body is again central, in the gruesome form of butchered corpses. In a clinical translation by Deborah Smith, Ms. Han describes a murdered protester with

bayonet wounds “down from her forehead to her left eye, her cheekbone to her jaw, her left breast to her armpit.”

Another reveals “a jumble of spilled, opaque intestines.” The torture victim had the skin on his hand rubbed so raw “that you could actually see the bone, a gleam of white amid the filth.”

Because the reasons for the bodily renunciation in “The Vegetarian” were enigmatic, the novel had the dark energy of a fairy tale. But there’s no mystery in “Human Acts.” Here the source of the violence is obvious, and the brutalities are desensitizingly repetitive. There is justice in Ms. Han’s emphasis on dead and mutilated bodies, but there’s very little art. A corpse is an important fact; the life it once contained is the deeper story.

Few writers take a keener interest in work than Tim Gautreaux. In “Signals” (Knopf, 363 pages, $26.95), a superb selection of his short fiction, there are stories about a typewriter repairman, a piano tuner, a welder, an exterminator, oil-rig engineers, some country priests and a guy hired to rescue gamblers who try to drown themselves by jumping from a Mississippi riverboat casino.

Mr. Gautreaux’s stories are loving and lively arrangements of small-town American life. Many take place in his native Louisiana, but others venture throughout the South, and a favorite of mine, “The Furnace Man’s Lament,” about the tentative relationship formed during a deadly storm between an orphaned teenager and a furnace repairman, is set in Minnesota.

Most are bittersweet comedy. They turn on missed opportunities and wellmeant follies. “Idols,” about a Southerner who courts ruin trying to restore a dilapidated ancestral mansion, summons the image of “a five-strand run of barbed wire healed into the bodies of live oaks.” The perfectly chosen “healed” captures the way that Mr. Gautreaux’s characters absorb pain and sadness into their textured personalities rather than being defined by them.

Mr. Gautreaux is one of those authors who seem inexplicably destined to remain under-appreciated. If you haven’t read his fantastic 2003 novel “The Clearing,” I urge you to do so.

He’s among the best Southern writers going, and “Signals” is a feather in his cap—and an absolute feast for readers.

Aladdin’s Many Fathers

By Paulo Lemos Horta Harvard, 363 pages, $29.95

BY CHARLES SHAFAIEH THE FIRST EUROPEAN translator of the “Arabian Nights,” Antoine Galland (1646–1715), did not enjoy fantastical stories. In a letter to a friend, he wrote that “I was no doubt not born for these unusual things, and my personality inclines me even less to fictions.” Instead, his passion for Greek translation and numismatics fill the pages of his journals during the two decades he worked on his translation.

The Victorian-era translator Edward William Lane went undercover as ‘al-Fackeer Mansoor.’

Yet his 12-volume edition, bursting with supernatural elements, would become a seminal work of literature, one that has consumed imaginations worldwide, occasioned countless translations, imitations, adaptations and plagiarized editions, and inspired writers as diverse as Samuel Taylor Coleridge, Yukio Mishima and Jorge Luis Borges.

Despite his distaste for the content of his work, Galland knew his readership and took great care in crafting his “Arabian Nights” to its tastes. This included censoring the explicit sexual content that future translators, like the 19th-century explorer Richard Burton, would champion and adding to each story a moral in the style of the French fairy tales that Charles Perrault’s studies had recently popularized. As with every compilation of these authorless folktales—from a ninth-century Persian manuscript titled “Hazar Afsanah” (“Thousand Tales”) to Edward William Lane’s Vic-

torian-era edition, which eliminates that the Syrian’s voice may be more While it may be tempting to bethe many strong and intelligent present than previously believed. In lieve that the basis of fiction must lie women of earlier versions—Galland’s “Aladdin,” for example, the descrip- in factual experiences, this position selection reflects the culture in which tion of the young boy’s magical underrates the power of an author’s it was produced. floating palace echoes Diyab’s de- imagination and ability to empathize His may not have been the only scription of a theatrical trick he wit- with strangers. (Consider the Shakecontemporary hand shaping the sto- nessed at the Paris opera house in speare authorship debate, in which ries, as Paulo Lemos Horta discusses which a replica of the palace would skeptics claim that no one with only a in his detailed study grammar-school educa“Marvellous Thieves: Setion who had never cret Authors of the Aratraveled abroad could bian Nights,” which aims write those plays.) to uncover the often unWhile not explicitly acrecognized “cross-culknowledging this dantural exchanges” embedger, Mr. Horta considers ded in European additional interpretaeditions of the story coltions of Diyab’s memlection. In 1709, Galland oir—such as the inverse met a dozen times with theory that his writings a Maronite Christian about France may contraveler from Aleppo tain the same “stock named Hanna Diyab, phrases with which he whom King Louis XIV’s had described fictional antiquarian Paul Lucas characters of ravishing had recruited to accombeauty and wealth” to pany him on expeditions Galland decades prior— throughout western Asia which emphasizes that and north Africa. Diyab this and every version shared 16 stories that of the “Arabian Nights” Galland had not read in has a complex, polythe 14th-century Syrian phonic and ultimately manuscript he used as unknowable history. his primary source text Unacknowledged coor in any other Arabic authors haunt Lane’s material. Despite their and Burton’s editions unknown origins, 10 of to even greater dethese “orphan tales” grees. The two Orienfound their way into his talists carried out to translation, and two of the extreme the philosthem have become ophy advocated by among the most poputheir fellow translator lar: “The Story of Alad- FLORID A 1913 watercolor by George Barbier showing Nijinsky Henry Torrens that, in din and the Wonderful and Ida Rubenstein in the ballet ‘Scheherazade.’ order to understand a Lamp” and “Ali Baba group of people, “you and the 40 Thieves.” repeatedly vanish and reappear. Like must live among them and speak, Diyab has long been credited only the orators from the Aleppine coffee- whatever it may be, their tongue.” with offering skeletal outlines of houses of his youth who each night Lane and Burton transformed themthese stories, with Galland elevating would tell new variations of tales selves into foreign personae—the them to the richly detailed versions culled from the vast trade network Turkish elite al-Fackeer Mansoor and bearing his name. Mr. Horta, in com- that converged in the Levant, Diyab the Persian merchant Mirza Abdullah paring Diyab’s recently discovered may have infused this old story with (among others), respectively—with memoir, whose complex structure details that he suspected would ap- the help of local men and women bears similarities to the “Arabian peal to Galland—just as he had with who were then left out of or even inNights,” with Galland’s much drier stories he recounted to Lucas on tentionally erased from their writpersonal writing, suggests, however, their journey to France. ing. A Scot living in Cairo who had GETTY IMAGES

Marvellous Thieves

changed his name from William Taylor to Osman Effendi facilitated Lane’s immersion in Egyptian society, and the Arab scholar Sheikh Muhammad Ayyad al-Tantawi (whom he called “my Sheikh”) provided copious notes that assisted with his translation. But because Lane advertised his translation on the strength of his supposed expertise in Arab culture, he systematically removed evidence of their and others’ assistance even from his private journals.

Burton’s ego and compulsion toward self-hagiography were more pronounced: He would never acknowledge the extent to which he plagiarized large sections of Torrens’s edition and even more so John Payne’s poetic, Pre-Raphaelite-inspired translation (for which Burton provided notes and sold subscriptions). Those in the Arab world who must have helped him or, like Diyab, shared their stories are treated with similar disregard.

Despite drawing our attention to these forgotten men and women, Mr. Horta focuses mostly on the less-secret authors of the “Arabian Nights.”

A lack of available evidence may account for this imbalance, but he would have done well to correct it by discussing the positive impact that the European obsession with the tales has had in the Arab world.

Scholars of Arabic literature no longer disdain them as mere popular literature, as they did until the 19th century. Naguib Mahfouz’s “Arabian Nights and Days” (1979) features its own Aladdin and Ali Baba, and other contemporary Arabic writers often engage with the many translations available to them.

This fine book nevertheless cogently probes an influential period in the knotted and at times sordid history of the “Arabian Nights,” serving as a fine example to those unraveling this promiscuous and forever malleable set of stories.

Mr. Shafaieh is a writer and editor living in New York City.

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Saturday/Sunday, January 14 - 15, 2017 | C9

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BOOKS ‘No architecture is so haughty as that which is simple.’ —John Ruskin

An Arch Sensibility The Architecture of John Simpson

By David Watkin Rizzoli, 304 pages, $85

THOUGH NO POSTWAR British classicist has achieved the renown of the prolifically inventive Sir Edwin Lutyens, who died in 1944, the traditional practice of architecture never disappeared in the U.K. Still, a “neo-Georgian” quadrangle built at Oxford’s Lady Margaret Hall in the 1960s was sufficiently exceptional that Nikolaus Pevsner declared it “almost like a freak of nature.” In fact, Raymond Erith’s fine brick-with-stone-trim quad was much more than neo-Georgian, and it demonstrated that British classicism was hardly moribund.

The range of institutional and residential projects carried out by the London-based architect John Simpson amply confirms that lesson. One might take issue with aspects of his oeuvre, which has a mannerist streak, but it never bores. It combines robust masonry construction, meticulous detail, superb craftsmanship, an impressive grasp of interior space and a knack for stashing new buildings into historic settings. Mr. Simpson’s main inspirations are ancient Greek architecture and the stylistic eccentricities of John Soane (1753-1837). He could not ask for a more accomplished interpreter than David Watkin, the Cambridge architecture historian whose previous books include “A History of Western Architecture” (sixth edition, 2015) and “Morality and Architecture” (1977).

Since the 1980s, when he came up with a bold classical plan for the reconstruction of London’s Paternoster Square, a large site just north of St. Paul’s Cathedral that had fallen victim to a disastrous exercise in postwar urban renewal, Mr. Simpson has been a favorite architect of Prince Charles, who contributed the foreword to Mr. Watkin’s monograph. A recession doomed Mr. Simpson’s Paternoster plan, though its restoration of a traditional street pattern was implemented by another architect.

The commissions that Mr. Simpson, 62, has won since then—including a large new quad at Eton; important additions to Buckingham and Kensington Palaces; extensive interior alterations at Cambridge’s Gonville and Caius College; and a military hospital in rural Nottinghamshire—testify both to Charles’s personal influence and the impact of his campaign for traditional architecture over the past three decades.

Mr. Watkin’s sumptuously illustrated volume will serve nicely as a coffee-table book. But it is much more than that, because he is deeply sympa-

RIZZOLI

BY CATESBY LEIGH

DEEP COFFERS The ceiling of the debating chamber that Simpson designed for Eton College in 2015. thetic to the way Mr. Simpson makes use of historic precedents and deeply informed about those precedents.

Hence Mr. Watkin’s scholarly summary of the architect’s Eton quad: “One could say of Simpson’s work what the architectural critic Heathcote Statham claimed of C.R. Cockerell’s masterly Bank of England branch at Liverpool of 1844-47, that ‘the study of its details is a liberal education in itself.’ ” At the same time, both architect and author are heirs to an English sensibility that welcomes a picturesque intricacy in massing and detail as opposed to the monumental breadth and repose that characterize so much classical architecture.

The Queen’s Gallery at the southeast corner of Buckingham Palace, rebuilt and much expanded by Mr. Simpson for Queen Elizabeth II’s 2002 golden jubilee, thus presents us not with an organically unified composition but with contrasting components, an approach suggested by the difficult, constricted site. Mr. Simpson’s polychromatic, idiosyncratically Grecian open-air entrance portico is situated below and perpendicular to a more Roman pavilion of white Portland stone.

A challenging site and program also shaped Mr. Simpson’s addition to the Carhart Mansion in Manhattan, which

had housed a school for decades. The Carhart is a Parisian hôtel particulier expertly adapted a century ago to New York’s larger urban scale by the Philadelphia architect Horace Trumbauer.

In creating a new condominium complex, Mr. Simpson and his New Yorkbased collaborator, Don Zivkovic, added a stylistically distinct but compatible building beside the Carhart while inserting two new floors within the original mansion. The addition’s frontages on East 95th Street and a flanking courtyard engage the eye but do not readily resolve into a legible whole. Mr. Simpson’s crowning picturesque motif, visible as one approaches from the east, consists of three ascending temple fronts, each situated perpendicular to its neighbor.

Picturesque intricacy is also on view in Mr. Simpson’s architecturally variegated Eton quad but does not monopolize it. The quad is home to several academic departments as well as a small gallery of ancient art and a debating chamber that seats 300. In one corner, the entrance to the mainly brick gallery and debate building is a stone temple front crowned with three carved sphinxes. The scale of this entrance is not large, and it is somewhat cluttered by a bulky pair of sarcophagi flanking the steps. To one side a pair of diminutive stone pavilions extends

to form an intimate outdoor theater space. Here the detail includes an abundance of transennae, or latticework screens, along with steps rising in three directions, chunky stone balustrades, wiry iron stair rails and even a stone lectern. Elsewhere on the

For a dining room at Cambridge, Simpson adapted the design of a temple to Apollo. quad, profuse detail obscures the overall form of an arch that features everything from comically tiny semicircular niches to a pair of bizarre archaic columns. Michelangelo was a mannerist, too, but he would never design an arch that way.

Yet much of Mr. Simpson’s work at Eton and elsewhere exhibits a harmonious integration of forms. A long stone arcade facing his Eton gallery building is handsomely arrayed with pairs of columns of Hellenistic inspiration, while on the brick elevation above inset stone panels carved with the Eton lily combine with the fenestration to generate a contrapuntal rhythm. Far removed from pictur-

esque intricacy, this range boasts a refined simplicity, as do the two brick ranges comprising Mr. Simpson’s Pipe Partridge Building at Lady Margaret Hall and the one-story wing he added for a restaurant and shop at Kensington Palace.

The stunning market hall that Mr. Simpson designed for Poundbury, the very fine pedestrian-scale community adjoining the ancient city of Dorchester that has been built under Charles’s auspices, combines massive, inclined corner piers and an arcade supported by primitively stocky columns and astutely deployed trim—all of a brownish stone set off by offwhite stucco. The steeply pitched gabled roof features emphatically ridged brown tiles that were recommended, Mr. Watkin informs us, by HRH himself. The result is a picturesquely mannerist, strikingly sculptural, decidedly monumental building in which every detail contributes to the resonance of the whole.

On a larger scale, the point of departure for Mr. Simpson’s military rehabilitation hospital in Nottinghamshire—to be completed late this year, with a civilian component to be added later—is an 18th-century country house, Stanford Hall, that was expanded into a cooperative college after the war. Mr. Simpson is both renovating the existing structures and adding a large complex of complementary buildings arranged around courtyards and gardens in a gorgeous landscape setting. The hospital is designed to provide a generously humane environment for the treatment of the physically and psychologically wounded as well as for training in therapeutic methods and technology.

Mr. Simpson has also created numerous superb interiors, starting with his Eton debating chamber, reminiscent of a Hellenistic assembly room. In designing a new fellows’ dining room at Gonville and Caius in the late 1990s, he ingeniously reworked the stylistically eccentric interior of the Temple of Apollo Epicurius at Bassae—designed by the Parthenon’s architect, Ictinus—into a formally brilliant, ravishingly polychromatic Gesamtkunstwerk that, as one commentator observed, “has a hallucinatory quality.”

That quality arises from Mr. Simpson’s long-term exploration of the manipulation of interior space under Soane’s influence. While readers may question the author’s assertion that “the history of Western architecture is, effectively, the history of the constant adaptability of the classical language to new purposes and building types,” they will encounter abundant evidence that that language can still lead gifted designers like John Simpson in vitally creative directions.

Mr. Leigh writes about public art and architecture.

A Lost Boy, Grown Up

By Molly Haskell Yale, 224 pages, $25

BY SCOTT EYMAN MOVIE CRITICS must hate writing about Steven Spielberg if only because he doesn’t need them. He’s one of those few artists whose work is immediately legible to all cultures and all ages. His films—29 theatrical features and counting—deal with universal emotions, usually the tidal pull of family, either inherited or found. This underlying theme encompasses movies as disparate as “E.T.” (1982), “War of the Worlds” (2005) and “War Horse” (2011), Mr. Spielberg’s overly literal version of the National Theatre’s brilliant play, which he converted into a thoroughly unnecessary remake of “Lassie Come Home.”

The few places the director hasn’t been able to go—sex, for instance, as well as certain genres such as westerns—pale when you consider his other great gift. He’s a virtuoso akin to Hitchcock when it comes to provoking anxiety in either rational or irrational forms, as “Jurassic Park” (1993) and “Saving Private Ryan” (1998) attest.

His is a protean career, huge in its many successes and occasional failures, too. Luckily, Molly Haskell is far too wise a critic to be flummoxed by Mr. Spielberg’s seemingly critic-proof oeuvre. She nails Mr. Spielberg when he needs to be nailed—she refers to “The Color Purple” (1985) as “his Irving Thalberg-Stanley Kramer turn”— a fling with the socially responsible

prestige film, albeit with inappropriately lush skies that Thalberg and Kramer would have never indulged in.

She’s similarly hard on “Close Encounters of the Third Kind.” The film was hailed at the time of its release in 1977, but as Ms. Haskell correctly points out, it’s a mish-mash with no middle range, toggling between cosmic grandiosity and scenes of petty bickering between the husband and wife characters.

Ms. Haskell’s sources are her very good instincts and some of the basic literature, chiefly Joseph McBride’s reliable 1997 biography, which drew a

kell writes, “he nourished their memory.” Mr. Spielberg’s gift for domestic discord is rooted in his own childhood: “His compulsion to insert versions of his own family drama into the more ritualized conventions of genres where family ordinarily [takes] a back seat.

For the most part, science fiction and action movies stay away from romantic or domestic entanglements: it’s the whole point, and it’s why they are

about, like “Duel” (1971), “Jaws” (1975) and “Empire of the Sun” (1987). She tends to slip quickly past those that obviously bore her, although I wished for more about the devastating sense of isolation that haunts “A.I.” (2001) or even “Munich” (2005), which is more interesting in its failures than some of Mr. Spielberg’s successes.

But Mr. Spielberg’s is a mainstream career, which means there are no ob-

called escapist. But from families, there is no escape. . . . Spielberg, like most of us, straddles two worlds, two views of the family: the child’s wish to escape and the grown-up’s yearning to go back to some idealized version of family.”

Isolated in childhood, Mr. Spielberg similarly tended his garden when he got to Hollywood. While many of his peer Movie Brats were ingesting all manner of chemicals, Mr. Spielberg’s drug of choice was movies.

Ms. Haskell’s great on the movies that give her something to write

scure gems to be analyzed and celebrated. This occasionally makes the book feel like a twice-told assignment rather than a passion project, Perhaps the greatest thing about Mr. Spielberg is his gusto. He’s never really acknowledged what he couldn’t do, and in time he could do almost everything. Consider two of his greatest works: “Schindler’s List” (1993) and “Lincoln” (2012), two psychologically nuanced movies that are knowing about the way the brutal world really works but retain emotional resonance.

Spielberg is that rare artist whose work is immediately legible to all cultures and all ages. detailed picture of a nerdy kid growing up in Ohio and Arizona who was uncomfortable with his Judaism, if only because it tended to isolate him. “Being a Jew meant that I was not normal,” he said. “I just wanted to be accepted. Not for who I was. I wanted to be accepted for who everybody else was.” He was a frequent target of bullies, who called him “Spielbug.”

His parents’ divorce when he was 19 years old alienated him even further.

But by that point, Mr. Spielberg had already found his life’s passion. As he entered adolescence, his father had given him a momentous gift: an 8 millimeter movie camera.

“Rather than bury those shaming moments of . . . vulnerability,” Ms. Has-

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Steven Spielberg

“Schindler’s List” was not merely Mr. Spielberg’s critical coming of age, it was personally transformative. After a day shooting in Poland, he’d go home to his rented house and weep. Making the film “opened a floodgate of memories and stories, hitherto repressed, of relatives who suffered or died in the camps,” Ms. Haskell writes. One day on set, a survivor—they had asked survivors to come to share their memories—started telling Mr. Spielberg her story. She didn’t want to be in the film, but it inspired Mr. Spielberg to take three years off of making movies to start the Shoah Foundation. So far the foundation has recorded the testimony of more than 53,000 survivors. The director has called it “the most important job I’ve ever done.”

Last month, Steven Spielberg turned 70. Since he began directing features in 1974, everything has changed—the movie industry, the audience, the country, not to mention the director himself. His strong sense of emotional memory has made it possible for him to continually recreate the anxiety of a kid who never fit in, who had to make a movie to get his Boy Scout badge. Perhaps the reason “Hook” (1991) was so bad is that Mr. Spielberg is actually more of an aged Lost Boy than a Peter Pan. As Ms. Haskell notes, Steven Spielberg never lost the boy in the man. He’s “a Proust with a Steadicam,” managing “to retain the wonder while gaining mastery of the fear.”

Mr. Eyman is the author of 14 books, most recently “John Wayne: Life and Legend.” He teaches film history at the University of Miami.

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BOOKS ‘Every great man nowadays has his disciples, and it is always Judas who writes the biography.’ —Oscar Wilde CHILDREN’S BOOKS: MEGHAN COX GURDON

FIVE BEST: A PERSONAL CHOICE

Brad Gooch prison in Ashland, Kentucky, the fall of 1951, on the second of November, a day much like the other days since Dashiell Hammett came here, for the days are not various in prison.”

From the staccato clack of Ms. Johnson’s typewriter emerges Dash— Pinkerton gumshoe in his youth, jailed pinko-Commie at the height of the McCarthy years, creator of Sam Spade and other thin men, high roller, skirt chaser, eventual penniless recluse, cigarette dangling from the lips. Ms. Johnson is especially good on his crack-ups and long descent into terminal writer’s block.

Like Hammett, she gives us a starkly backlit anti-hero, boldly described.

Oscar Wilde

By Richard Ellmann (1987)

Friends of a Feather

UNLIKELY companions trudge, sprint, hatch, sail and float through five picture books, offering a lovely start to the year for readers ages 3-8. The trudging takes place in “Wolf in the Snow” (Feiwel & Friends, 48 pages, $17.99)

by Matthew Cordell. Beautifully paced and wordless apart from a few sound effects (“screech!” and “bark bark!”), the pictures follow a little red-coated girl heading home from school through a broad countryside who finds herself engulfed in a blizzard. At the same time, the storm detaches a wolf cub from its pack. We see the two small creatures, lost and buffeted, unknowingly moving toward each other until, of course, they meet.

Mr. Cordell’s ink-and-watercolor pictures seem lightly executed, yet they’re full of emotion: Our hearts lurch at the sight of the girl struggling to carry the floundering cub through deep snow. Affrighted by distant howling and the approach of night, the child toils on to the point of collapse. In a touching exchange, the wild wolves repay the girl’s protection of the cub with protection of their own in this ultimately reassuring story.

In “A Greyhound, a Groundhog” (Schwartz & Wade, 32 pages, $17.99), two dissimilar creatures meet and become instant friends, frisking and sprinting in Chris Appelhans’s watercolors as author Emily Jenkins gallops along, in a manner of speaking, with her prose: “The ground and a hog and some grey and a dog,” she writes. “A round hound, a grey dog, a round little hound dog.” Around and around, the animals whirl in this merry readaloud, until they’re plumb tuckered out. Dedicated to writer Ruth Krauss (1901-93) and acknowledging a “debt of inspiration and rhythm” to her book “A Very Special House” (1953), this escapade also brings to mind Emily Gravett’s endearing 2006 picture book, “Orange Pear Apple Bear.”

Kevin Henkes reprises the delicious milk-chocolate and sugaredpastel color scheme of 2015’s “Wait-

ing” in “Egg” (Greenwillow, 40 pages, $17.99). Part preschool comedy routine, part word primer, the book begins with a picture of four eggs in pretty shades. Three of them soon “crack,” each producing a fluffy winged “surprise!” There is yet one pistachio-green “egg” still to hatch.

Who is inside? To find out, small readers must undergo a lengthy period of “waiting” before the chicks return to roust the egg’s occupant by pecking at its shell. The surprise this time is unwanted and reptilian, and children will learn the words “alone,” “sad” and “lonely” before the tale takes a conciliatory turn with the making of “friends.”

Much loved since its publication in 1871, Edward Lear’s “The Owl and the Pussy-cat” (Candlewick, 32 pages, $16.99) returns in a fresh edition accompanied by Charlotte Voake’s loose, lively watercolors. Ms.

Engulfed in a blizzard, a little girl and a forlorn wolf cub move toward each other unknowingly.

Voake shows the pair setting off from a modern-looking marina in their “beautiful pea-green boat” and sailing away “for a year and a day, / to the land where the Bong-tree grows.” In her pictures, the trees are tall, with featureless trunks that curl and swoop. The couple floats off in a hotair balloon in a sequel by Julia Donaldson, also illustrated by Ms. Voake (see above), “The Further Adventures of the Owl and the Pussy-cat” (Candlewick, 32 pages, $16.99), but this time the Bong-trees have pointed violet leaves on their trunks, like huge spears of asparagus. (It’s the sort of disjunction children will notice if they see both books.) Ms. Donaldson’s verse is admirably Lear-esque, borrowing the cadences of the original poem and using personalities from Lear’s oeuvre, including the Pobble (who has no toes) and the Dong (with the luminous nose).

In Search of J.D. Salinger

By Ian Hamilton (1988)

3

‘IN SEARCH OF J.D. Salinger” is a biographer’s biography.

Hamilton cleverly transmuted the seemingly terminal obstruction of the 1987 legal victory that barred publication of his painstaking labor of love, “J.D. Salinger: A Writing Life,” for including bits of unpublished letters from library collections. The case turned on the legal riddle of “fair use” that has spooked many a biographer dealing with a hostile estate or, in Hamilton’s case, with a reclusive shrike of a subject.

Hamilton chose to tell the back story—humiliations and all—of his pursuit of Salinger, along the way revealing more of the mystery man, the oracle of all our adolescences, than a more nervous and respectful portrait might have done. Don’t miss the last few pages of Hamilton poring over Salinger’s deposition. We tingle along with Hamilton as gnomic Salinger is asked how often he wrote his friends: “Apart from too often? I don’t know.”

Dashiell Hammett

By Diane Johnson (1983)

2

SMARTLY SKIPPING cheap tricks of deep psychology, and luckily winning the cooperation of his longtime lover, Lillian Hellman, Diane Johnson deftly pulls off her biography of the detectivestory writer whose prose was every bit as much a bullet through the forehead as Hemingway’s. “Dashiell Hammett” thrums with nervous energy from its enviable opening sentence: “This begins in a federal

Genet

By Edmund White (1993)

4

AP IMAGES

CANDLEWICK PRESS

1

RICHARD ELLMANN’S posthumously published masterpiece was the fixer for an entire genre, proving that literary biography could be every bit as sumptuous, psychically edgy—and fun—as a Henry James novel. “His wit is an agent of renewal, as pertinent now as a hundred years ago,” writes Ellmann, not only arguing that Wilde “is one of us” but also making him so. We peer beyond the lavender curtains and eavesdrop on more than smartmouth firecrackers of bons mots as we get a revised feel for the lad of Dublin, the consumptively adoring lover of Lord Alfred Douglas, and the lonely prisoner of Reading Gaol. Ellmann not only reports in virtuosic detail but imagines his way into scenes, as when he describes the crucial meeting of a 20-something Wilde and the grand bully peacock Whistler in Paris: “To Wilde, gazing down at him, Whistler was short but formidable.” Ellmann’s Oscar Wilde is a subtle shape shifter with whom we’d love to share an absinthe.

DASHING Hammett in 1947.

NOT INTIMIDATED, like many others, by Sartre’s faux-canonization of Genet in his “Saint Genet,” Edmund White gives us a more humane treatment of the ardent thug of literature while never depriving him of the glories of his own self-invention. The world bashed the boy Genet with a fierce pair of brass knuckles: He was abandoned as an infant by his servantgirl mother; forced to wear the orphan’s uniform of black apron, black stockings and wooden shoes; handcuffed as a thief, at 15, and led to Mettray penitentiary, the erotic center of the imaginative universe of “Our Lady of the Flowers” (1943).

DOMINIQUE NABOKOV

on literary biographies

MR. GOOCH is the author, most recently, of ‘Rumi’s Secret: The Life of the Sufi Poet of Love.’

Yet Mr. White coolly pokes at the legend, too, reminding us that Genet was “widely read and deeply cultured,” tending a bookstall by the Seine, aspiring to write plays like Euripides, befriended by leading minds of his day—Derrida, Foucault.

Even his fabled thefts consisted mostly of handkerchiefs and books.

Mr. White leaves his poète maudit, the paragon of punk, with three adjectives (first used by Cocteau) pinned to him: “marvelous, mysterious, intolerable.”

Véra

By Stacy Schiff (1999)

5

AT FIRST BLINK, Stacy Schiff’s “Véra” might seem an impossible trompe l’oeil joke, chronicling the life of a mirror rather than the far more famous author whose familiar visage was reflected there. Vladimir Nabokov, he of such gorgeously abstruse crossword puzzles of novels as “Ada or Ardor” and “Pnin,” and an inveterate butterfly hunter, was resistant to being caught in the net of anybody else’s narrative. Véra, aka Mrs. Vladimir Nabokov, was apoplectic at the prospect. When asked how she met the man to whom she was married for 52 years, she often responded, “I don’t remember,” to which she might add, “Who are you, the KGB?” In the margins of one biography of her husband, she penned, “All this is rot.” With diligent research, Ms. Schiff is able to point out the wife’s handwriting invading her husband’s notebook and datebook, as Véra is revealed to have been not only his chess partner but also his first reader, typist, agent and chauffeur.

The true aha! of this book, though, is made possible only by its having been written by Ms. Schiff, perhaps the most seductive writer of nonfiction prose in America in our time: We are left with an authentic love story, a collaboration of sensibilities as rare as an exotic blue Polyommatus butterfly.

Best-Selling Books | Week Ended Jan. 8 With data from Nielsen BookScan

Hardcover Nonfiction TITLE AUTHOR / PUBLISHER

Food, Health, and Happiness Oprah Winfrey/Flatiron Books

Hardcover Fiction THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

1

New

Tools of Titans Timothy Ferriss/Houghton Mifflin

THIS WEEK

LAST WEEK

6

5

TITLE AUTHOR / PUBLISHER

Methodology THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

THIS WEEK

LAST WEEK

The Mistress Danielle Steel /Delacorte Press

1

New

TalesfromaNot-So-FriendlyFrenemy Rachel Renée Russell/Aladdin

6

6

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.

The Lose Your Belly Diet 2 Travis Stork/Ghost Mountain Books Inc.

1

The Magnolia Story 7 Chip & Joanna Gaines/Thomas Nelson

6

Double Down (DWK #11) Jeff Kinney/Amulet Books

2

1

Below the Belt Stuart Woods/G.P. Putnam’s Sons

7

New

Hillbilly Elegy J.D. Vance/Harper

3

3

The Whole30 Cookbook: 150...

Melissa Hartwig/Houghton Mifflin

–

Fantastic Beasts J. K. Rowling /Arthur A. Levine Books

3

2

The Underground Railroad Colson Whitehead/Doubleday Books

8

9

Jesus Always Sarah Young/Thomas Nelson

4

4

The Whole30: The 30-Day Guide ... 9 Melissa & Dallas Hartwig/Houghton Mifflin

9

The Whistler John Grisham/Doubleday Books

4

7

Cross the Line 9 James Patterson/Little, Brown and Company

8

The Princess Diarist Carrie Fisher/Blue Rider Press

5

2

Killing the Rising Sun 10 7 Bill O’Reilly & Martin Dugard/Henry Holt & Company

Harry Potter and the Cursed Child 5 5 J.ThornewithJ.K.Rowling&J.Tiffany/ArthurA.LevineBooks

Dog Man Unleashed (Dog Man #2) Dav Pilkey/Graphix

10

4

Nonfiction Combined

Fiction E-Books

Fiction Combined

THIS WEEK

LAST WEEK

THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

The Mistress Daniel Steel/Delacorte Press

1

New

Below the Belt Stuart Woods/G.P. Putnam’s Sons

2

New

Nonfiction E-Books TITLE AUTHOR / PUBLISHER

An Invisible Thread 1 -Laura Schroff and Alex Tresniowski/Howard Books Lost City of the Monkey God 2 Douglas Preston/Grand Central Publishing

New

TITLE AUTHOR / PUBLISHER

8

THIS WEEK

LAST WEEK

TITLE AUTHOR / PUBLISHER

THIS WEEK

LAST WEEK

The Lose Your Belly Diet Travis Stork/Ghost Mountain Books

1

1

Food, Health, and Happiness Oprah Winfrey/Flatiron Books

2

New

3

3

Distant Shores 3 -Kristin Hannah/Random House Publishing Group

The Mistress 1 New Daniel Steel/Random House Publishing Group Below the Belt 2 Stuart Woods/Penguin Publishing Group

Notes From a Small Island Bill Bryson/HarperCollins Publishers

3

--

Hillbilly Elegy J.D. Vance/Harper

Hillbilly Elegy J.D. Vance/HarperCollins Publishers

4

5

Hidden Figures 4 Margot Lee Shetterly/William Morrow & Co.

--

Rock Chick Reawakening Kristen Ashley/Kristen Ashley

4

Wishful Drinking Carrie Fisher/Simon & Schuster

5

1

The Princess Diarist Carrie Fisher/Blue Rider Press

5

2

The North Water Ian McGuire/Henry Holt & Co.

5

The Lose Your Belly Diet Travis Stork/Ghost Mountain Books

6

3

Milk And Honey 6 Rupi Kaur/Andrews McMeel Publishing

Man’s Search for Meaning Victor E. Frankl/Beacon Press

7

--

Tools of Titans Timothy Ferriss/Houghton Mifflin

You Are a Badass 8 Jen Sincero/Running Press Book Publishers

--

Jesus Always Sarah Young/Thomas Nelson

A People’s History of the United...

9 Howard Zinn/HarperCollins Publishers

--

Hidden Figures 10 Margot Lee Shetterly/HarperCollins Publishers

--

New

TITLE AUTHOR / PUBLISHER

Hardcover Business THIS WEEK

LAST WEEK

Strengths Finder 2.0 Tom Rath/Gallup Press

1

1

Total Money Makeover Dave Ramsey/Thomas Nelson

2

2

3

5

A Man Called Ove 3 Fredrik Backman/Washington Square Press

8

Together Is Better Simon Sinek/Portfolio

New

The Girl on the Train Paula Hawkins/Riverhead Books

4

3

Extreme Ownership 4 Jocko Willink & Leif Babin/St. Martin’s Press

7

--

The Whistler John Grisham/Doubleday Books

5

5

The Five Dysfunctions of a Team Patrick Lencioni/Jossey-Bass

8

4

The Whistler 6 6 John Grisham/Knopf Doubleday Publishing Group

Distant Shores Kristin Hannah/Ballantine Books

6

--

The Daily Stoic 6 Ryan Holiday & Stephen Hanselman/Portfolio

6

7

5

Silver Bay 7 Jojo Moyes/Penguin Publishing Group

--

Rock Chick Reawakening Kristen Ashley/Kristen Ashley

7

New

Emotional Intelligence 2.0 7 Travis Bradberry & Jean Greaves/Talentsmart

4

8

--

Small Great Things 8 Jodi Picoult/Random House Publishing Group

--

Double Down (DWK #11) Jeff Kinney/Amulet Books

8

6

Essentialism Greg McKeown/Crown Business

8

3

Lost City of the Monkey God 9 Douglas Preston/Grand Central Publishing

New

The Handmaid’s Tale 9 Margaret Atwood/Houghton Mifflin Harcourt

--

Cross the Line 9 James Patterson/Little, Brown and Co.

9

The Energy Bus Jon Gordon /John Wiley & Sons

9

–

The Magnolia Story 10 Chip & Joanna Gaines/Thomas Nelson

9

A Man Called Ove Fredrik Backman/Atria Books

--

A Feast for Crows George R. R. Martin/Bantam Books

--

The 4-Hour Workweek 10 Timothy Ferriss/Crown Publishing Group (NY)

10

10

5

9

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | C11

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REVIEW

WINNI WINTERMEYER FOR THE WALL STREET JOURNAL

The idea came partly from his childhood obsession with collecting bugs.

WEEKEND CONFIDENTIAL: ALEXANDRA WOLFE

Ben Silbermann IN THE YEAR AHEAD, expect to hear more about sous vide cooking, bell sleeves on dresses and detox tea. Those, at least, are some of the trends predicted for 2017 by Pinterest, the image-sharing site that calls itself “the world’s catalog of ideas.” The predictions are based on increased interest around those topics among its 150 million users in recent months.

Some analysts predict that it could be a big year for Pinterest as well, speculating that chief executive Ben Silbermann, 34, may take the company public soon. Sitting in the open, brightly decorated San Francisco office that

the company recently moved into, he won’t confirm or deny reports of a coming IPO, saying only, “We’re just right now focused on building the business.” But Pinterest’s design overhaul last spring, hiring of a chief financial officer last fall and recent focus on revenue generation have led to the speculation.

When the company last raised money, in 2015, it was valued at a hefty $11 billion.

Pinterest works like a sort of online inspiration board: Users “pin” or save images that they see on the site or elsewhere on the internet. Users organize those images into categories on different “boards,” either publicly

Could this be a big year for the CEO of Pinterest? or privately. Food, style and home décor are especially popular subjects. Over two-thirds of users are women, analysts say.

The company’s revenues, which come from advertising, rose from $100 million in 2015 to an estimated $300 million last year. Last summer, Pinterest launched a service for retailers in which users can buy a product by clicking on its image. The company has also been exploring the idea of rolling out into Spanish-speaking countries, following efforts to break into Japan, the U.K. and Brazil.

Mr. Silbermann says that the idea for Pinterest partly stemmed from his child-

hood obsession with collecting things— mostly insects. “It’s kind of dorky,” he says.

His parents were both eye doctors, and he thought that he would study medicine, too.

Then, in college at Yale University, he got his first laptop and became fascinated by the internet.

After graduating in 2003, Mr. Silbermann went to work at a consulting firm in Washington, D.C. He read about technology companies at night and, within a few years, moved to California to work in customer support at Google. His ultimate goal was to start a company of his own. In 2007, he and a friend, Paul Sciarra, built an app for buying products on a phone, modeled after mail-order catalogs, but the idea didn’t catch on.

In 2009, Mr. Silbermann met Evan Sharp, then an architecture student, and along with Mr. Sciarra they came up with the idea to create a way for people to collect things they find on the internet. (Mr. Sharp is now the company’s head of product and design; Mr. Sciarra left the company in 2012.)

They launched Pinterest in March 2010 but decided to start slowly, keeping it invitation-only at first. After three months, it had 3,000 registered users. By comparison, photo-sharing site Instagram (which focuses on feeds of photographs from users, rather than collections of saved images) launched in October 2010 and had one million accounts after two months. Instagram now has more than 600 million users.

From the beginning, Mr. Silbermann has tried to take the long view. “One thing about Silicon Valley is their time windows are really short, so if something doesn’t work in a year or two, it could never work,” he says.

“But I think…being raised by a family in medicine, where the time horizons are pretty long,” including time spent in medical school and training, “I sort of figured that, ‘Oh, it could realistically take three or four years.’ ” Mr. Silbermann thinks that one difference between Pinterest and social-media sites is that it allows users to focus on “me time” rather than “them time.” On other sites, “when you post something, you’re really posting it to get a response,” he says. “The core motivation of Pinterest is: Let me find ideas for myself that serve for inspiration for where I can take my life.”

One area that he wants to work on is improving the gender gap at his 1,000-plus-employee company, a common problem in Silicon Valley. His goal for 2016 was to hire women to fill 30% of the company’s full-time engineering jobs, but Pinterest missed the target. Women now fill 22% of those roles, up from 19% in 2015. He has lowered the target rate for 2017 to 25%. To help in the effort, the company brought on its first head of diversity last year.

Mr. Silbermann lives in San Francisco with his wife, a business coach, and their two sons, ages 1 and 4. He recently found a new way to get his older son ready for school more quickly: If his son is dressed on time, he gets to play a two-minute paper-and-dice game that involves fighting monsters. He and his wife try to stick to an informal rule of not looking at their phones during family time— with varying degrees of success, he admits.

Ideally, he says, “when you’re with kids, you’re with kids.”

In general, he tries to be careful not to waste a lot of time online. With social-media companies trying to get people to spend as much time as they can on their sites, he says, “I feel like there’s this enormous competition for your attention.” He worries that “people end up feeling bad about all these technology products that kind of monopolized so much of their attention and took them away from other things they might want to do.”

MOVING TARGETS: JOE QUEENAN

WHEN HOTELS started asking guests to conserve our planet’s dwindling aquatic resources by reusing towels and sleeping on the same sheets several nights running, I was one of the first people to jump on the bandwagon.

No, I did not dismiss such requests as cynical enviro-friendliness, in which coarse, unfeeling businesses would masquerade as environmentally sensitive stewards of the Earth, just so they could cut costs and boost profits. I took the hotels at their word and began bringing my own sheets, towels and pillowcases along whenever I visited their fine establishments.

In 2000, I even wrote a book about trying to be a better person called “My Goodness: A Cynic’s Short-Lived Search for Sainthood.”

In it, I described how my son and I once hunkered down in sleeping bags while visiting a Boston hotel.

The next day, we took sponge

baths instead of using the bathtub or shower, then dried ourselves on the veranda, letting the sun do the heavy lifting.

Today, I’m happy to reveal the many other ways I have helped companies in their pure and indisputably sincere quest to do good.

Over the years, I have widened the program by using the hotel’s downstairs Jacuzzi to wash away the grime and by drying off with other guests’ used towels after they have gone. The bathroom hand dryer also comes in handy, as do fluffy drapes in some of the fancier, empty conference rooms.

Who’s going to notice? If I am very sweaty and have an important meeting in the morning, I wash up with moist towelettes.

The fact is, I have not used a hotel shower or slept on hotel bedding for more than a decade.

No plates for me at restaurants, so no wasted dishwater.

I am equally responsive to banks that have eliminated paper statements in order to save our menaced forests. On Saturdays, I’ve been more than happy to sit down in the park and let hapless senior citizens without computers use my laptop to check their bank balances.

Then I generously write out their interest statements longhand.

In recent years, I have taken the pressure off Mother Nature in many other ways. I bring my own cutlery to restaurants and ask the waiters to deposit the food directly into my hands so that no one need ever wash my plate.

Admittedly, with guacamole or chicken tikka masala, things can get a bit messy. But a bit of discomfort is not too high a price to pay to keep our oceans from being sucked dry by billions of lightly soiled plates.

When I visit my daughter in California, I bring bottled

water to my hotel room, as I do not want to negatively impact that state’s depleted reservoirs. I bathe in the Pacific, where I also wash my socks.

Saving the planet one item at a time is not always easy. I feel hapless in those cafes that ask you to sort your trash into different bins of recyclables, and I hate it when the staff sneers, “When did chewing gum become recyclable, Einstein?”

Are there times when I feel that some unscrupulous company may be using guilt about the environment to scam me? Yes. I absolutely refuse to patronize organic ammo stores. If I see a sign reading “all-natural retirement planning,” I take my business elsewhere. And I don’t care what anybody says, there is no such thing as a “green” gentleman’s lounge. None that I’ve ever been in, at least.

NISHANT CHOKSI

How I Help Businesses Save the Planet

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C12 | Saturday/Sunday, January 14 - 15, 2017

* ***

THE WALL STREET JOURNAL.

REVIEW EXHIBIT

Sold! $11.8 million

Elizabeth Taylor’s necklace, sold 2011 The rare 16th-century pearl drop at the bottom was bought by Richard Burton at auction in 1969. Taylor had it incorporated into this necklace, which headlined a 2011 sale of her legendary jewelry.

$225,100 Pelé’s shirt, sold 2002

The Brazilian soccer star wore this jersey in the 1970 World Cup final, in which his team beat Italy. The seller: Italian player Roberto Rosata, who had exchanged shirts with Pelé after the game.

TO CELEBRATE Christie’s International’s 250th anniversary, a new book, “Going Once” (Phaidon, $59.95), showcases 250 notable sales from the auction house. The collection includes blockbuster items (such as a Francis Bacon triptych that sold for $142 million in 2013) as well as interesting and unusual objects, from books to wine to fashion. What they all have in common, the introduction notes, is that “someone wanted them badly enough to put up a fight.”

—Alexandra Wolfe

$41,380

Margaret Thatcher’s suit, sold 2015 The British prime minister wore this suit,

by Aquascutum, during a famous 1990 speech in which she rejected a more far-reaching European economic and monetary union.

CHRISTIE’S IMAGES (3); IMAGO/ZUMA PRESS (PELE); AGENCE FRANCE-PRESSE/GETTY IMAGES (THATCHER); TERRY O’NEILL/GETTY IMAGES (TAYLOR)

PLAYLIST: ADAM GRANT

HISTORICALLY SPEAKING: AMANDA FOREMAN

Historical lists in ‘We Didn’t Start the Fire’ fascinated a future Wharton professor

I have no idea why my elementary school played Billy Joel’s “WE DIDN’T START THE FIRE” on the hallway speaker system in the fall of 1989. I was 8 at the time, and the rousing hit became stuck in my head. It’s still there.

On reflection, what grabbed me were Billy Joel’s rhyming historical names and events. After buying a cassette of “Storm Front,” the album that included the song, I wanted to know what each of the names and phrases meant.

BILLY JOEL performing in Paris in May 1990.

For example: “Einstein, James Dean, Brooklyn’s got a winning team / Davy CrockMy parents kept ett, Peter Pan, Elvis Presley, sending me to differDisneyland / Bardot, Budaent people for differpest, Alabama, Khrushchev / ent song references.

Princess Grace, Peyton Place, The concept of learntrouble in the Suez.” ing through eyewitI made a list of the song’s nesses was new to me references and asked my parents who and cool. and what they were. They did someBilly Joel’s rhyming word sculptures thing so interesting and formative. and his chorus planted a seed—the idea They said, “Why don’t you look them that people can effect change: “We up?” It was my first research project. didn’t start the fire / No, we didn’t light Before the internet, all I had was an it / But we tried to fight it.” encyclopedia, which was a start. My Eventually, I realized that historical parents also encouraged me to start narratives can shift depending on who asking around: “Your aunt is a huge Elyou talk to and how your sources expevis fan, ask her about him.” My aunt rienced the events. told me about how she felt when she But early on, in elementary school, first heard Elvis’s music and, later, “We Didn’t Start the Fire” helped while she was growing up. shaped my thinking about the world.

A song stirs a research project.

PIERRE VERDY/AFP/GETTY IMAGES

Adam Grant, 35, is a professor of management and psychology at the University of Pennsylvania’s Wharton School and the author of “Originals: How Non-Conformists Move the World” (Viking) and the forthcoming “Option B” with Facebook’s Sheryl Sandberg (Knopf). He spoke with Marc Myers.

ON JURY DUTY this month, I’ve had plenty of number of Christian apostles. time to reflect on the meaning of the 1957 film These and other rules governing jury trials “12 Angry Men.” Law schools still use the 60evolved slowly over hundreds of years, but one year-old courtroom drama about a biased and practice began almost immediately: making jury easily swayed jury as a teaching tool. The duty as onerous as possible. Until the mid-19th question remains: Does the movie prove or century both British and American courts could disprove Mark Twain’s characterization of trial forbid jurors from eating and drinking until they by jury as “the most ingenious and infallible reached a verdict. agency for defeating justice that human wisThe tactic failed spectacularly in 1670 during dom could contrive”? the London trial of the Quaker William Penn, Jurors are all too human, something the anwho had been arrested for violating an act limcient Greeks tried to mitigate by allowing some iting religious assemblies. The jury resisted the jury panels to have 1,000 or more citizens at a judge’s instruction to return a guilty verdict detime. To prevent malicious plots and ensure a spite being denied food, water, fire and tobacco broad mix of people, every juror received half a for several days. Their refusal to be bullied set a drachma a day—enough to feed a poor man and precedent, known as Bushel’s Case, that no jury his family. But such precautions failed to save can be punished for its verdict. As for Penn, he Socrates from his enemies in 399 B.C. An Athewent on to found Pennsylvania. nian jury, egged on by an anti-Socrates faction, A quarter of a century after Penn’s trial, forconvicted him of “impiety” and “moral corrupmer jurors in Salem, Mass., set another precetion of the young” by a majority of 280-221. dent after they published a collective letter of The reputation of juries suffered further unapology for their roles in the famed 1692 witch der Rome, as juries shrank to a range of 35 to 75 and jury packing became an art form. In the medieval period, disgust with the jury system (or a general lack of faith in humanity) encouraged many ancient societies to rely on trial by ordeal. In a typical procedure overseen by clergy and described by Robert Bartlett in his book “Trial by Fire and Water,” a man accused of a crime would have to fast for three days, pick up a hot iron, walk three paces and put the iron down.

Three days later, if his hand HENRY FONDA (standing) in the 1957 film ‘12 :Angry Men.’ was healing, he was innocent; “if the wound was unclean, he was guilty.” Another test involved imtrails, which had led to 19 executions. Five years mersion in a cold pool; the innocent would sink. after the last trial, the jurors wrote, “We would Juries staged a comeback after 1215, when none of us do such things again.”

Pope Innocent III banned clergymen from conJuries have been rebelling and regretting ducting ordeals. The same year in England, ever since. Despite Twain’s pessimism, the King John signed the Magna Carta, which formessy fallibility of juries is what gives the legal bade a man’s punishment without “the lawful system its humanity. As the British jurist Lord judgment of his peers.” The widespread use of Devlin wrote during the Cold War, “Trial by a dozen jurors may have been inspired by the jury…is the lamp that shows that freedom lives.”

EVERETT COLLECTION

Notes From the Jury Room

The World via Billy Joel

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | C13

* * * *

PLAY 1. For which of these national monuments did President Barack Obama set aside vast acreage?

D. “Standing right” is associated with voting conservative.

A. Ear Wig B. Bears Ears C. Deers Tail D. Rams Horn

5. Which of these bodies, for the first time since 1861, has no lawyers?

A. The American Bar Association Board of Governors B. The Kansas Senate C. The Virginia House of Delegates D. Britain’s House of Lords

2. The Chicken Tax was a topic at Detroit’s big car show. What exactly is it?

A. An American tax on imported chickens B. A Japanese threat to tax U.S. chickens if auto tariffs are imposed C. A U.S. tariff on imported vehicles resulting from a European chicken tax D. A Chinese tax on U.S. subcompacts, known as “chickens” in Mandarin

6. Name the former British spy who provided explosive but unproven allegations of collusion between the Kremlin and Donald Trump’s campaign.

A. Christopher Steele B. Valerie Steele C. David Steele D. Shelby Steele

National Museum of Mathematics

Provided by the

Some members of the team are debating the relative merits of listening to music on vinyl versus compact disc, and naturally they delve into the math.

In the Groove

On a typical LP record, the spiral groove runs from an outside radius of 15 cm to an inside radius of 6 cm, with equal radial spacing between successive turns of the spiral.

The record spins at a constant rotational velocity of 33 1/3 rotations per minute. The record plays for 22 1/2 minutes before you have to flip it over to play the other side.

What is the radial spacing between the grooves on the record?

7. How much of U.S. health care spending is rung up by the 10% of people with the highest costs?

3. If Yahoo’s core business is acquired by Verizon, CEO Marissa Mayer will leave the remaining company—which will be called what?

For previous weeks’ puzzles, and to discuss strategies with other solvers, go to WSJ.com/puzzle.

A. A tenth B. A quarter C. A half D. Two-thirds

A. Altaba B. RemainCo C. MaroonInc D. Google

On the Path

A typical CD has an outer radius of 6 cm, and a 45minute track is recorded on a spiral path with an inner radius of 4 cm. That spiral path is read by an optical sensor, and there is again equal radial spacing between successive turns of the path. However, unlike a record, the rotational speed of the CD varies as the

8. Celebrated journalist Clare Hollingworth died at 105. What was her biggest scoop?

A. Crédit Mobilier B. The Zimmerman telegram C. The start of World War II D. The start of the Korean War

4. China and some other places want escalator riders to stop standing right and passing left.

Why?

ISTOCK (2)

VARSITY MATH

From this week’s

Wall Street Journal

ILLUSTRATION BY LUCI GUTIÉRREZ

NEWS QUIZ: Daniel Akst

9. Which country is on track to become the world’s first to abandon FM radio?

A. Countries that drive on the left want their escalator culture to match.

B. Lopsided wear and tear (on the right) C. Heavy crowds make a passing lane impossible to maintain.

turn to page C4.

Learn more about the National Museum of Mathematics (MoMath) at momath.org

SOLUTIONS TO LAST WEEK’S PUZZLES

Silent Treatment

Varsity Math Chris’s sum in Not Dozens is 1,368,576 and the last nonzero digit of the Festive Factorial 2017! is eight.

A. Chile B. North Korea C. Norway D. Singapore

To see answers, please

+

sensor moves along the path so that the sensor is traveling at a constant velocity of 120 cm (of path length) per second.

What is the radial spacing between successive turns of the recording path? (For this one, you may just want to find an approximate answer.)

C A W S

H A H A

U G L I S

G N O M E

A H M A D

S O U S A

D I A L

A N N A

A R O N

O G L E S

S H E L L H A A T C G O S U P E G E E N S A I U R G G M A N A R E C E R K K I T I O I N T E G

C A T S S T A T N UM B E Y S O N AM O C L E S H A T C H E R H E S B O O R R T O B O T I O L S C R L A S S E Y R A A A L I S H A T N O C A N I G H T A T E G T E R E AM E O

A T U E R S L C A A S R U S S C O O F A F S I R D A E R S E B U I R R L D

N A S I T M A C N A P E N T A X T Y I L S E MN E S I O L T A T S O

A B U T

Marching Bands

M E A T S H L E O R OW B A I A F T G L S O O R A A T L S A O Y A N L S A A T T R I C OM A E D R

T A I L E N D

A B B A

G L A M

S E R B

A L O A N N E Y L A U C C H K E S A P P P L L A E N

R E N D S

C R E S T

S L E E K

T A R S I

L E T T

E X E S

A9

M 10

M S E D U R P Z T R E H A

E T S E N I L O R A C E G

R A S R E V I R O I H R E

C B O R S E E R T N O A M

A L O I C T R O H E E C A

N E N N O S S R S S S L T

T R T G W C

I E H D I A T T A U E S S

L A E O N N E R R R V D E

R 17

G

E N M R E E

E D E V E T A I L D E E P

V M D E B A S E S O N M S

E I G R A T E V A C U U O

R T E B R A T E T H E R M

THE JOURNAL WEEKEND PUZZLES Edited by Mike Shenk 1

2

3

4

5

19

6

7

10

31

40

32

50

55

56

60

17

18

30

34

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44

51

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57 62 67

73

63

68

74

88

89

92

64

84

77

85

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86 91

95

99

96

100

101

106 111

48

65

76 83

102 103 104 105 110

47

70

94 98

46

59

90

93 97

58

75 82

45 54

69

81

87

16

22

43

66 72

15

38

61

80

14

26

33

42

49

13

29

37

41

12

25 28

36

11

21

24

27

71

9

20

23

39

8

107

112

108 109

113 114

118

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126

127

Alien Invasion | by Pancho Harrison Across 1 5 9 15 19 20 21 22 23 26 27 28 29 30 31 32 34

49

60 62 64 65 66

71 74 75 76 80 81 83 86 87 89 92 94 95

Crept Bordeaux buddy Ill-fated Get gushy Broke new ground?

Florentine banking house Broadcaster in more than 40 languages: Abbr.

Letter resembling the symbol for Neptune Former Toyota model Pluto’s downgrade in 2006 and the like?

Biblical prophet of doom Business partner, often Refrain bit Time to put all your eggs in one basket?

Vicinity “___ luego” Sign up Notre Dame’s Parseghian Play group Well-to-do wasp?

Pussy foot Wood of the Stones Tabloid topic

96 Some Jags 97 Like some enclosed envelopes 100 Dearest pal 102 Close attachment formed during an official trip?

106 Celtic language 107 “Draft Dodger Rag” singer Phil 110 Dodge 111 Image on the Uruguayan flag 112 Resembling 113 Turn on, as a machine 116 Empty 117 Sous-chef’s spot in a seafood restaurant?

120 Gusto 121 Declare under oath 122 “You know you want to!”

123 Coup d’___ 124 Vacation souvenirs 125 Plagues 126 “Frozen” prince 127 Watches the kids

Down 1 2 3 4 5

Spa attire Overturn Like a riverbed Skiing turn David Tennant or Peter Capaldi

6 Lunch lady locale 7 Relevant 8 Vacation souvenir 9 Inner ears 10 She-bear, in Spain 11 Keep adding more to, as assignments 12 Prime 13 Conventioneer with pointy ears, say 14 To your right, when facing Nord 15 Sidelines salutation 16 Sidelines setting 17 Draftee’s denial 18 Facility 24 Nephew of Cain 25 Historian’s study 30 “You want a war?

You got a war!”

33 Breezing through 34 Cocoon occupiers 35 Chilling 37 Country, to Caligula 38 Satisfied sound 39 Bone up 40 Runner’s goal 41 You might trip on it 43 Marilyn of the 5th Dimension 45 Go downhill fast 46 Denny’s rival

1

J2 21

P3

T4

H 22

K

L5 23

U

6

E 24 O 25 U 26

41

E 42 G 43

F 44 H 45

60 Q 61

T 62 A 63

E 64 U

80 R 81

V

L 83

40 T

82

V7

100 K

101 J 102 H 103 B

121 R

122 D

E P 27

L 46 D

B

D 11

C 12

28 M 29 G 47 V 48

65 R 66

J 67

K 13

30 D 31

B

14

A 32 V 33

I 49 U 50 O 51 M 52 A

L 68 K

69 M 70 G 71

K 84 S 85 G 86 H 87 D 88 N 89 U 90 A

91

53

S

S 15

C 34 N 35 Q R 54 B

P 92 M 93

148 T 149 F

182 A 183 P 184 E

55 E 75

F 94 R

95

K 56

V 19

T 20 A

J 37

S 38

P 39 A

S 57 D 58

P 76 U 77

185 M 186 H 187 C 188 B 189 D 190 N 191 K 192 G 193 S

C B

139 G 140 C

157 A 158 N 159 G 160 I

170 P 171 B 172 Q 173 R 174 M 175 G 176 U 177 D 178 N

203 E 204 T 205 G 206 M 207 V 208 I 209 Q 210 O 211 R 212 L 213 K

P 59

F 78 A 79

E 96 O 97 V 98 Q 99 G

135 I 136 M 137 D 138 E

150 K 151 H 152 R 153 L 154 J 155 M 156 D

167 A 168 K 169 S

36

18

113 E 114 F 115 P 116 J 117 Q 118 S 119 M 120 V

123 A 124 K 125 U 126 L 127 C 128 O 129 G 130 P 131 T 132 R 133 H 134 J

161 E 162 P 163 D 164 O 165 F 166 R

I 16

72 D 73 Q 74

104 T 105 A 106 D 107 L 108 K 109 I 110 N 111 O 112 G

141 S 142 U 143 Q 144 N 145 A 146 O 147 V

201 F 202 D

8

179 V 180 O 181

194 J 195 A 196 P 197 O 198 L

I

199 V 200 C

214 U 215 A 216 D 217 P

Acrostic | by Mike Shenk To solve, write the answers to the clues on the numbered dashes. Then transfer each letter to the correspondingly numbered square in the grid to spell a quotation reading from left to right. Black squares separate words in the quotation. Work back and forth between the word list and the grid to complete the puzzle. When you’re finished, the initial letters of the answers in the word list will spell the author’s name and the source of the quotation.

L. Pain-blocking, pleasure-triggering peptide

____ ____ ____ ____ ____ ____ ____ ____ ____

M. Defenders of the Wall in George R.R. Martin’s “A Song of Ice and Fire” (2 wds.)

____ ____ ____ ____ ____ ____ ____ ____

A. Historically black school located in Atlanta (2 wds.)

N. Writer of pithy sayings

____ ____ ____ ____ ____ ____ ____

O. Günter Grass novel narrated by Oskar Matzerath from an asylum (3 wds.)

____ ____ ____ ____ ____ ____ ____ ____

P. Brand originally marketed as a syrup for topping ice cream (2 wds.)

____ ____ ____ ____ ____ ____ ____ ____

Q. Best-selling album of all time, released in late 1982

____ ____ ____ ____ ____ ____ ____ ____

R. Company whose 2015 merger with Staples was blocked by the FTC (2 wds.)

____ ____ ____ ____ ____ ____ ____ ____

S. Grammy-winning singer whose career began in the Cotton Club chorus line in 1933 (2 wds.)

____ ____ ____ ____ ____ ____ ____ ____ ____

T. Precisely (3 wds.)

____ ____ ____ ____ ____ ____ ____ ____

U. Very small, as an urban park (Hyph.)

____ ____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____ ____

167 62 20 195 52 105 145 157 90 123 182

8

215 31

B. Pilgrimage destination in the foothills of the Pyrenees

____ ____ ____ ____ ____ ____ ____

C. Detonation unit

____ ____ ____ ____ ____ ____ ____

27 54 171 188 103 13

59 187 127 33

39 78

79

11 140 200

D. 1978 punk classic that begins “Twenty-twentytwenty-four hours to go” (4 wds.)

____ ____ ____ ____ ____ ____ ____ ____

E. One who welcomes change?

____ ____ ____ ____ ____ ____ ____ ____

189 106 137 202 163 216 30 177

____ ____ ____ ____ ____ ____ ____

72

57 46 122 10 156 87

184 23 161 203 63

41

74 138

____ ____ ____

113

7

F. Drake’s Golden Hind, for one

____ ____ ____ ____ ____ ____ ____

G. Violinist who made his U.S. debut at Carnegie Hall in 1917 (2 wds.)

____ ____ ____ ____ ____ ____ ____ ____

H. Gathering of stock; summary of news

____ ____ ____ ____ ____ ____ ____

I. Crumbly, blueveined cheese

____ ____ ____ ____ ____ ____ ____

J. Title princess of opera whose ministers are Ping, Pang and Pong

____ ____ ____ ____ ____ ____ ____ ____

K. Highway safety feature informally called “corduroy” or “drunk bumps” (2 wds.)

45 212 153 67

119

9

4

82 198 126 107

51 174 69 185 28 92

____ ____ ____

206 155 136

110 144 158 34 88 178 190

____ ____ ____ ____ ____ ____ ____ ____

114 201 77

95

93 165 149 43

85 192 205 139 99 175 70

17

____ ____ ____ ____ ____

42 159 29 112 129

151 133 21 102 44 86 186

181 135 109 208 160 15

180 111 146 197 128 24 164 96

____ ____

50 210

91 130 183 58 26 162 196 217

____ ____ ____ ____ ____

170 38 115 75

36 154 66 101 134 194 116

2

98 73 117 143 209 60 35 172

80 94 65 132 173 121 166 211

____ ____ ____

16 152 53

193 71 169 118 14

61 204 148 40

125

5

3

37

56 141 84

104 19 131

176 25 214 49 89 76

____ ____

64 142

48

1

V. Able to yield the desired result

____ ____ ____ ____ ____ ____ ____ ____

47

81

18 179 32 207 120

6

____ ____ ____

199 97 147

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.

s

36 38 39 42 43 44

Auburn’s kin Improvise vocally Admits, as guilt Knot of hair Bee Taylor’s great-nephew Spending limits Wickerwork twigs Monopoly token replaced with a cat in 2013 Anna Pavlova or Margot Fonteyn, once?

Flat formation Friendly understanding Org. with many schedules Comics shriek Like the columns of the Jefferson Memorial Big name in label makers Neighbor of Twelve Oaks Result of a leaky pen, perhaps?

Appearance Mame and Em Blacken Shapiro of NPR AAA offering Like wind and water Astronaut’s seat?

54 55 56 57 59

47 Turn sharply 48 Icelandic literature 50 ___ Sketch (classic drawing toy) 51 Having a predisposition for 52 Mutt’s microchip, e.g.

53 Stephanie Beatriz’s “Brooklyn Nine-Nine” role 58 Element above lead in the periodic table 61 Pleistocene period 63 Sternward 65 Play for time 67 Secretive org.

68 “My word!”

69 Hog the mirror 70 Fishing trap 71 Partner’s share, often 72 Twistable treat 73 Blacken 77 Bomb at the box office 78 Harper’s Bazaar illustrator 79 Tropicana Field team 81 Soul mate?

82 Secret rival 84 Libertines 85 Pro’s downtime 88 Increased 90 Nonverbal okay 91 Carries out 93 Cookie source 98 Young turkeys 99 Founder of the first U.S. Shaker colony 100 Small bank, often 101 Minute quantity 102 Ben’s successor at the Fed 103 Soft palate part 104 “Inception” director Christopher 105 Where many firings take place 106 Manning on the field 108 Poorest nation in the Americas 109 Brown weasel 112 Bar assn. members 114 Shipping boxes: Abbr.

115 Treebeard’s kin 117 Like the Beatles 118 Approx. number 119 “Today” rival, familiarly

____ ____ ____ ____ ____ ____ ____ ____

108 191 68 55

12 168 22 213

____ ____ ____ ____

83 124 150 100

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C14 | Saturday/Sunday, January 14 - 15, 2017

THE WALL STREET JOURNAL.

* ***

REVIEW THE SEINE MUSICALE will be Paris’s sixth classical-music or opera venue.

A Concert Hall Rises on the Seine

Shigeru Ban codesigned Seine Musicale, but is there a classical-music market for it?

BY INTI LANDAURO

IF YOU BUILD IT, will they come?

On Jan. 23, Japanese architect Shigeru Ban and his French partner, Jean de Gastines, will unveil an ambitious $179 million, 1,150-seat concert hall in a western suburb of Paris. Built on an island in the Seine where Renault once made cars, the concrete structure is topped by a futuristic dome whose glass panels are partly wrapped by a wave of solar panels that will follow the motion of the sun.

The big question for Paris: Can the hall, known as the Seine Musicale, thrive in an already crowded classical-music market? The hall will face strong competition from Paris’s five other classical music and opera venues, including the Philharmonie de Paris. Designed by Jean Nouvel, the Philharmonie opened about two years ago and seems to be thriving despite early concerns over its remote location.

Born in Tokyo, the 59-year-old Mr. Ban

studied in Japan and later in Southern California and at New York’s Cooper Union. “I’m not the kind of architect who makes monumental structures,” he said. But the project’s master plan demanded a large, modernist structure that would recall a cargo ship (because of the Seine) and a factory (because of Renault).

Messrs. Ban and de Gastines sought to lighten the building’s minimalist profile with flourishes of glass in the dome and its wavelike curve.

In another embellishment, the auditorium was designed “a bit like a musical instrument,” said Mr. Ban—who admits he himself “has no talent” for music.

Collaborating on projects since 2003, Messrs. Ban and de Gastines are best known for light, wooden structures like the arching Pompidou-Metz Center (2010), a branch in eastern France of the Paris-based Pompidou Center. Mr. Ban’s temporary structures for disaster-stricken areas—from Kobe, Japan, to parts of Nepal and Rwanda—have also become famous. In 2014, he won architecture’s prestigious Pritzker Prize.

It’s been a busy few years for new classicalmusic venues. This month, Hamburg is inaugurating the Elbphilarmonie, designed by Herzog & de Meuron. But with high production costs and a limited audience, classical concerts remain a challenge. For the Seine Musicale, the solution has been twofold.

First, state subsidies. The Seine Musicale received a $127 million grant for construction, with an additional $10.6 million annual subsidy to cover expected losses. “Live classical music will always lose money. It is structurally unprofitable,” said Stephan Kutniak, the head of culture for Hauts-deSeine, the French department financing the project. He added, “You cannot charge spectators what the show really costs.” French construction, telecommunications and media group Bouygues and catering giant Sodexo have agreed to operate the Seine Musicale with state help for 30 years.

Second, to limit the financial risk, Hautsde-Seine built another concert venue on the island, for more lucrative pop concerts. Mr. Kutniak envisions an eventual fusion of the music

‘The classicalmusic market can absorb more supply.’

genres. In the classical music hall, he said, “we could start with a Mozart concert and follow with an electronic party with DJs, inspired by Mozart, in the other hall.” The complex will also include shops and restaurants and host company seminars and other events.

The backers of the Seine Musicale can take heart from the Philharmonie de Paris, which seems to show that such a gamble can pay off.

When it opened in 2015, many doubted there was enough demand in the Paris region for the 1,900-seat Philharmonie, located in a remote part of the capital and devoted to a musical genre seen by some as elitist and stuffy.

Two years on, Philharmonie President Laurent Bayle said he is satisfied. “We are opening to new audiences,” he said. But, he added, luring them to the concert hall has taken work.

To attract a broader and younger clientele, the Philharmonie has expanded its concert offerings to include symphonic renditions of famous movie scores and other popular music, and added activities for children.

Mr. Kutniak is optimistic that the Seine Musicale can do the same: “The classical-music market can absorb more supply. We need to conquer the potential audience and convince people classical music is not boring.”

LAURENT BLOSSIER

MASTERPIECE: ‘IN COLD BLOOD’ (1967), BY RICHARD BROOKS

A DRIVE TO DESTROY THEMSELVES AND OTHERS THIS YEAR marks the 50th anniversary of the movie “In Cold Blood,” adapted from Truman Capote’s extraordinary feat of novel-reportage— a book that celebrated its own 50th anniversary in 2016. “In Cold Blood” offered a forensic reconstruction of the murder of an entire family outside Emporia, Kan. Capote devoted more than six years of his life to following the case and, often with his close friend Harper Lee, interviewing everyone associated with the crime.

He even earned the trust and confidence of Perry Smith and Dick Hickock, the men who, one lonely November night in 1959, had entered a remote farmhouse and murdered Herbert Clutter, his wife and their son and daughter “in cold blood.” Far removed from Capote’s other work, this nonfiction analysis of a crime and its aftermath would influence writers like Norman Mailer (“The Executioner’s Song”) and Tom Wolfe (“The Right Stuff”).

In September 1965, the New Yorker began a four-part serialization of Capote’s work; it appeared in book form the following year, and almost immediately afterward, Richard Brooks began writing a screenplay. This he directed in 1967, and the film stands today as one of the most powerful and restrained crime thrillers of its time. Brooks had honed his craft during the 1940s, as a screenwriter of hard-boiled thrillers such as “The Killers,” “Brute Force” and “Key Largo.” By 1967, after directing critical hits like “Blackboard Jungle” and “Elmer Gantry,” Brooks was Capote’s favored choice to make “In Cold Blood.”

He agreed with Capote that the lead actors must be unfamiliar to the public, and resemble the real-life criminals as closely as possible. This brought him into conflict with Columbia, for the studio preferred stars such as Paul Newman and Steve McQueen. As a result of Brooks’s courageous casting, however, Robert Blake and Scott Wilson communicated the mysterious blend of

COLUMBIA PICTURES/GETTY IMAGES

BY PETER COWIE

ROBERT BLAKE and Scott Wilson starred as killers Perry Smith and Dick Hickock.

cynicism and bravura that drove Perry Smith and Dick Hickock to destroy the lives of others as well as their own. So resolved was Brooks to ensure the authenticity of Capote’s chronicle that he even asked the salesman in a clothing store in Emporia to play himself in the movie, re-enacting the precise details of the scene when Hickock coolly passes a dud check.

Brooks took more than 12 months to write the script. His screenplay recalls the lean, mean mood of ’40s film noir. Like the French New Wave directors so influential at the time, Brooks shuttles back and forth in time, as well as using real locations and reducing his studio work to a minimum. He adds a visual dimen-

sion to the book’s evocation of the Eisenhower period— from the fins on the patrol cars to the widescreen shots of the killers driving through the vast Midwestern landscapes by night and day. Both film and book underscore the perplexing conflict between a conservative, pastoral America and the unpredictable violence that can explode within it.

Brooks delays showing the actual murders until late in the movie, and even then does so with a rare discretion. Conrad Hall’s black-andwhite cinematography, which earned him one of his 10 Academy Award nominations, renders this sequence as a chiaroscuro nightmare, with flashlights weaving and slashing like weapons

A portrait of waste, loss and spiritual emptiness.

amid the dimly lighted rooms of the Clutter farm. Hall, Hollywood’s “Prince of Darkness,” achieves his most sublime effect as Robert Blake’s Smith, awaiting his call to the gallows, recalls his relationship with his father. Rain dribbles down the window of the cell, and Hall’s lighting gives the illusion that tears are coursing down Smith’s cheeks. Columbia could not understand Brooks’s insistence on shooting in black-and-white when every TV station wanted to run movies in color. “This picture has to do with fear,” he told executives, “and so I can only see it in black-and-white.”

Capote refers in his book to the lonesome sounds of the plains of western Kansas, such as “the keening hysteria of coyotes, the dry scrape of scuttling tumbleweed, the racing, receding wail of locomotive whistles.” The film embraces a wide range of sound effects, none better than the relentless wind that howled around the crew as they shot the nighttime scenes at the Clutter farm. The jazz score by Quincy Jones gives the credits sequence an edgy, unnerving quality, with its outstanding electric-bass playing by Carol Kaye. The music uses percussive effects and contrasting leitmotifs to draw us inside the heads of Perry and Dick, while it introduces everything from rhythm-and-blues to country-andwestern as a way of describing the parts of America that dominate the movie.

Truman Capote felt that the 1967 film was “a marvelous distillation” of his book, and “the most realistic movie” he had ever seen. By some mysterious alchemy, his limpid prose and Brooks’s sober, visually haunting narrative have with the years fused into a study of waste, loss and spiritual emptiness that can truly be called a classic of American cinema. “In Cold Blood” retains its relevance today, even as random shootings continue to appall.

Mr. Cowie has written more than 30 books on the cinema, including studies of Akira Kurosawa, Orson Welles and Francis Ford Coppola.

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Lettie Teague on the pros and cons of cruise-ship wine lists

Dan Neil reports from the very shiny trenches of the Detroit Auto Show

D8

D12

EATING

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DRINKING

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STYLE

© 2017 Dow Jones & Company. All Rights Reserved.

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FASHION

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DESIGN

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DECORATING

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ADVENTURE

THE WALL STREET JOURNAL.

* * * *

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TRAVEL

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GEAR

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GADGETS

Saturday/Sunday, January 14 - 15, 2017 | D1

Locals and Behold

MARICA HONYCHURCH FOR THE WALL STREET JOURNAL

Fly-and-flop vacations are out.

Local experiences are in, as one writer finds in an eye-opening series of close encounters on the Caribbean island of Dominica

PERSONAL DAYS Clockwise from top left: The 18th-century Fort Shirley, one of the restoration projects of local historian Lennox Honychurch; young islanders in the town of Loubiere; handwoven Kalinago baskets; a hummingbird in the Syndicate forest; Mr. Honychurch; on Zandoli Inn’s restaurant patio; preparing a local stew with green figs; Dr. Birdy on the Syndicate Nature Trail.

BY ALISON HUMES

I

HAVE ALWAYS loved visiting the countries in the Caribbean Sea, but over the years what I look for has changed. I still want to loll and bob in psychedelic blue water and I still want to enjoy the odd rum party drink. But the days when I could get baked in the sun or in the bar are long gone, and now I get my Caribbean kicks another way.

I want to meet interesting people, not just other visitors. And I’m not alone.

Community-driven travel, where you actively engage with local residents, has come a long way from the days when you had to pretend you really like bugs or lumpy mattresses. Sophisticated tour operators or luxury hotels increasingly promote such experiences, from in-home cooking classes to school visits. The explosive popularity of Airbnb home rentals is proof that legions of travelers prefer the individual and idiosyncratic over the branded or mass-produced. Now with Airbnb Trips, the company lets you hire a local as a private guide for a day (see “Stranger Things,” on page D6). For me, the trend has a feel-good aspect, akin to making friends. If my existing friends can’t connect me with locals in my destination, I look for local hoteliers or innkeepers who seem

interesting—judging by their aesthetic or their background—and go stay with them.

Recently I found a few wonderful hosts in Dominica, an island nation between Guadeloupe and Martinique that was arguably the model for the Garden of Eden. (One of the translators of the King James Bible, John Layfield traveled to Dominica in 1598 before writing the first eight books of the Old Testament.) I had suspected it would be easy to go local here, and in fact, that’s really all there is. I spent a little more than a week bopping around the island, meeting whomever I could.

My first host was Gregor Nassief, who picked me up at the airport to drive me across the island to Secret Bay, a small collection of villas he owns with his Venezuelan wife, Sandra Vivas, and the snazziest place to stay on the island.

Even though it’s only about 20 miles from the airport, the drive across the north of Dominica took an hour, up switchbacks and down hills, past rolling breakers on a broad shallow beach, through villages, past people and animals making their way along the road. As Mr. Nassief drove, he waved to practically everyone along the way. We talked about the island’s history— Caribbean history is a passion of mine—and his own. A software engineer, he was born to a Lebanese family that came to Dominica in the

1930s and built a supermarket empire. His wife’s father, a modernist architect, designed the first house at Secret Bay. As we arrived, Mr. Nassief offered to introduce me to Lennox Honychurch, the island’s preeminent historian and cultural preservationist.

Meanwhile, I settled into my villa, an airy wood pavilion with a small kitchen balanced at the edge of a cliff. A local yogini came by to help me get the post-flight kinks out—we spread our mats on the deck by the plunge pool, stretched and meditated while looking out at the sea.

Later, Mattie, the assistant assigned to my villa, brought over some yams and fresh shrimp and taught me how to burn curry (to increase its flavor) and bake a yam casserole. Mr. Nassief called to say that Mr. Honychurch would meet me the next day at a fort he was restoring in Cabrits National Park, and added that if I was interested in going up into the rain forest, I should let him introduce me to a mysterious person named “Birdy.” Within hours of arriving, I was set. I had places to go, people to meet.

The next day, the tall and erudite Mr. Honychurch showed me around the late 18th-century English garrison at Fort Shirley. We paused on a high promontory with views in almost all directions. The value of the protected harbor in PortsPlease turn to page D6

[ INSIDE ] SLOW FOOD FAST Winter replenishment in 35 minutes: an oyster and turnip pan roast D8

BRIGHT THINKING This ‘smart’ app-controlled lamp advances a new theory of luminosity D11

UNCOMMON CORE Yes, basics can be distinguished—and elevate a daily uniform D3

PRIDE OF PLACE How a peacock feather inspired the décor of a London hostess’s sitting area D9

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D2 | Saturday/Sunday, January 14 - 15, 2017

* ***

THE WALL STREET JOURNAL.

STYLE & FASHION Basic Blue I wear a white or indigo T-shirt almost every day from 45R ($160, rby45rpm.com) I like them because they look a little sloppy. They’re not perfect, they have some interest.

STYLE ROLE MODEL

The Atypical Architect Shunning the conformist suits of his peers, Rafael de Cárdenas drafts a defiantly casual—but discreetly dark-hued—wardrobe Top Topper I have a Raf Simons coat (about $1,560, rafsimons.com) that is no-funnybusiness. Its inky blue color looks black except in certain light.

People always ask me about it.

Retro Rags I collect old magazines. I have every Details up until Condé Nast bought it. I have issues of Interview and W Magazine from when it was in newspaper format. Looking at the past is my way of looking to the future.

If something was cool and avantgarde in 1983, it probably still is.

Finer Points Details are important to me. This black jacket

by Chinese designer, Ziggy Chen ($1,140, L’Eclaireur, 33-14-8871022), has a funny curved chest pocket and a burlap texture on the collar.

Everything I wear is mostly navy or black, so I play more with textures rather than colors.

Lean Legwear In the winter, I wear thin merino wool socks from Icebreaker ($20, icebreaker.com).

I don’t like bulky socks.

They makes your shoes look bad.

Cult Closet The films that inspire me were maybe not good but had something that appealed to me. Like “Dune” with Kyle MacLachlan as Paul Atreides.

It’s crazy, but the way he’s dressed and everything about that movie still looks cool.

OPEN PLAN Architect and designer Rafael de Cárdenas in his Brooklyn home.

BY JACOB GALLAGHER

Sole Choice Doc Martens are the only real shoes that I wear. They’re not leather-soled, so they’re more comfortable. I’m currently wearing the Comme des Garçons Comme Docs ($298, totokaelo.com), which are more contoured to the shape of my foot than the classics.

S

TYLE REGRETS? All men have a few. Unless they’re architect Rafael de Cárdenas, who’s happy to reminisce about the cartoonishly wide trousers and plaid Doc Martens he wore as a student at the Rhode Island School of Design. What others might consider cringe-making missteps, Mr. de Cárdenas, 42, sees as character-building steps in his style evolution: “You have to be willing to risk things.”

Mr. de Cárdenas founded his New York firm, Architecture at Large, in 2006, making a name for himself through futuristic, art deco-influenced retail spaces for com-

panies like Nike and Baccarat—as well as cozy but cool residences. Along the way, he discovered that his peers aren’t exactly crazy about fashion experimentation. “Architects tend to wear suits or button-down shirts,” he said.

While his own look defies conformity, his plaid Docs are no longer in rotation.

These day he’s settled on a quieter, welledited wardrobe of pieces that are spiffedup enough, like ankle-cinched Issey Miyake trousers and indigo-dyed tees from Japanese label 45R. Mr. de Cárdenas believes that, even as you age, your style should never become routine or haphazard: “Even if I’m wearing sneakers, shorts and a T-shirt to a client meeting, there’s always some strategy involved. It’s not accidental.”

Cash Point My mom gave me a crocodile wallet ($750, Bergdorf Goodman, 212-339-3379). I think if things are going well financially, you shouldn’t change your wallet.

Bon Boutique I love Anatomica in Paris. The salesman always tells you when something fits right. Even if you’re like, “No it’s a little…,” he’ll say, “No that’s your size.” And he’s right.

WESTON WELLS FOR THE WALL STREET JOURNAL; F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (WALLET, SOCKS, TROUSERS, COAT, MAGAZINES)

Stealth Comfort Most of the time I wear Issey Miyake trousers ($605, 212-226-0100) in black or navy. They cinch around the ankle, so they have a casual fit, but the neat polyester fabric makes them more buttoned-up.

SOAP STAR

BY MICHAEL B. DOUGHERTY EVEN THE MOST laundryilliterate guy understands one immutable law: Never, ever machine-wash a suit, especially not one from a Milanese shop or a Savile Row tailor. But ever since the can-do 1950s, when the advent of polyester first made a machine-washable suit possible, some massmarket retailers have attempted to popularize the concept, often with dubious results. But a new suiting collection that launches Jan. 15 at Saks Fifth Avenue, in collaboration with Italian textile firm Traiano, may have found a way to finally combine old-world tailoring with modern convenience.

Eric Jennings, vice president and menswear fashion director at Saks Fifth Avenue, discovered Traiano last June, while attending menswear trade show Pitti Uomo, in Florence. “From a distance, [the company’s

wares] looked like traditional Italian tailored clothing but as soon as we got up close and were touching the fabrics, we were like, ‘What?!’”

Traiano has developed a wrinkle-free nylon fabric that can be digitally printed to mimic the appearance of suiting wools—say, a Prince

It was both liberating and disconcerting to take the suit to my laundry room. of Wales weave. “A washable suit was the byproduct of what I had in mind, which was to create the most practical and comfortable suit,” explained Traiano co-founder and CEO Filippo Colnaghi. However, it’s not just the fabric that sets the new range apart, but the tailoring.

“Stitching it into an elegant

suit needs capable hands,” said Mr. Colnaghi.

But does this new suit actually emerge from a washing machine fit to wear? We put one to the test. There was something liberating—if a bit disconcerting—about taking the Neapolitan style jacket and trousers to my laundry room. The care tag stated “machine wash cold,” so I complied. Wincing a little, I added Method Free + Clear detergent to the drum.

Once out of the machine, the suit was promisingly intact. Its synthetic fabric can’t go in the dryer—the fibers would “cook,” said Mr. Colnaghi— so I placed the suit on a wooden rack to dry overnight.

The next morning, it looked surprisingly good.

The shoulders, sleeves and bottom hem sat well, with no signs of shrinkage.

Only a single, slightly askew lapel hinted at what I’d done, an unthinkable act for any of the traditionally tailored garments currently hanging in my closet.

JUST ADD TIDE Saks Fifth Avenue x Traiano Blazer, $698, and Trousers, $298, saksfifthavenue.com, after a machine wash.

F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS

A new, washable suit from Saks Fifth Avenue promises to bankrupt your dry cleaner. One writer tests the spin

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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Saturday/Sunday, January 14 - 15, 2017 | D3

* * * *

STYLE & FASHION

A Unique Uniform Nothing beats the way no-brainer basics simplify the process of creating outfits everyday —especially when the pieces are elevated with subtle, distinctive details you can’t find at Gap

BY NANCY MACDONELL ONE OF FASHION’S defining narratives over the past few seasons has been the glitter-powered resurgence of Gucci. With the be-ringed hand of creative director Alessandro Michele on the house’s tiller, Gucci has turned over-the-top animal motifs, sparkly loafers and chintz prints into profitable trends that have given many other brands an incentive to tap into the maximalist moment. In the Age of Alessandro, even children’s clothes are flirting with Lurex.

But there is a more reserved counter-movement brewing that offers a quieter, albeit no less luxe alternative to the more-is-better ethos: the beyond-basic basic.

With their focus on timeless design, sumptuous fabrics, painstaking construction, subtle but interesting details and impeccable fit, labels such as Gabriela Hearst, M. Martin, Khaite, Carl Kapp, Everlane, La Ligne, Totême and Cuyana are answering a demand for luxury that whispers rather than roars.

Even Samantha Cameron, the wife of former British Prime Minister David Cameron and the onetime creative director of British leather goods and stationery brand Smythson, is joining the club, with Cefinn, a fashion label that will launch next month. Although one of the few images the company has released so far is of Ms. Cameron in a black mid-calf skirt worn with a matching sleeveless top, a close perusal of the details—an asymmetrical hemline, a sliver of orange at the shoulder— points to a collection of distinctive takes on wardrobe staples.

Whether making clothes for work or for life, these brands are providing women with the building blocks of a smart uniform with a twist, a reliable wardrobe-approach that takes the stress out of getting dressed. “These are not classic brands doing boring clothes,” said Natalie Kingham, the buying director of e-commerce site MatchesFashion, which sells Khaite and Gabriela Hearst as well as its own beyond-basic line, called Raey. “There’s something unique about them, and beautiful.”

That uniqueness is core to the beyond-basic’s appeal. “I think women are always drawn to them,” said Rebekka Bay, the head of product and design at Everlane, an online seller of office-friendly better basics. Under Ms. Bay’s direction, Everlane has expanded its offerings to include more casual clothes, more color and more sophisticated design. Ms. Bay launched H&M’s minimalist line, Cos, and was the creative director of Gap. “But you have to distinguish between a true basic and an elevated basic,” she added. As an example of the latter, she points to a cashmere sweater that’s boxier and drapes more intriguingly than a standard crew.

“It’s basic but not boring.”

Though the finer points of the elevated basic, like fiber content and seam placement, don’t exactly scream and shout on Instagram,

‘There’s been an acceleration of trends and we got sick of it.’ for many designers, the category offers an alternative to both the runway and fast fashion. “It feels like there’s been an acceleration of trends and a lot of us got sick of it,” said Jennifer Noyes, a cofounder of New York brand M. Martin, a line that takes its design cues from classic American sportswear in the Claire McCardell vein.

“We want something easier.”

Certainly there’s a deep sense of ease in collections like that of Uruguay-born designer Gabriela Hearst, who excels at pieces like a double-breasted blazer in a unique not-quite-navy shade or an ultrasimple knit dress with flattering slim sleeves and a just-highenough nipped waist. Ms. Hearst’s prices are high, but she believes that quality trumps all. “I believe that you should buy less, but buy good,” she said. “One great sweater is better than 10 that have polyester fibers. It comes to the same thing financially.”

The founders of accessories and clothing brand Cuyana echo Ms.

ARMY OF ONE With expertly designed classic clothes, women, like Vogue Paris editor Emmanuelle Alt, can create their very own version of a uniform.

Hearst’s statement for more-conscious consumption. “Fewer, better” is its slogan. “We feel that the pieces you spend money on should have more value for you,” said cofounder Shilpa Shah. Ms. Shah and her partner, Karla Gallardo, source small factories around the world, often family-owned, to produce their streamlined designs. The label particularly excels at making leather goods that look far more expensive than they are.

Part of the appeal of these brands is that the clothes come with a guarantee that, regardless of the vagaries of fashion, they’ll remain stylish. La Ligne, for example, launched by Meredith Melling

and Valerie Macaulay, two former Vogue editors, and Molly Howard, previously the head of business development at Rag & Bone, is founded on the jaunty, enduring appeal of the stripe. The motif passed what Ms. Melling calls “the subway test.” She explained, “We would take the subway and see five people in stripes on any subway car on any given day.”

Although many women wear luxury basics in their down time— La Ligne’s Ms. Macaulay has worn the brand’s silk pajama pants to both the airport and the annual gala for the Costume Institute of the Metropolitan Museum of Art— the clothes are having a marked ef-

fect on how women dress for work.

Ms. Kingham pointed to figures like the Duchess of Cambridge, who would never make a statement as trendy as wearing Gucci but chooses clothes that subtly express her own sense of style. These clothes allow that. “Women who are in positions of power, women who have to present themselves in different situations, they need clothes that fulfill a lot of different functions,” Ms. Kingham explained.

Women who work hard, she added, want clothes that also go the distance: “We love fashion and we love fashionable clothes, but sometimes you need something that’s just going to work.”

OVER ARMOR This coat’s shorter hemline and slightly stiff water-resistant cotton canvas add polish. Trench, $150, everlane.com

THREAD ALERT Delicate stitching details on the cuffs and a roomy cut make this shirt a stand-out.

Khaite Shirt, $580, theline.com

ACUTE LOOK Flattering, angled pockets and flat silver studs up a mini’s cool factor. Skirt, $320, toteme-nyc.com

KNIT WIT A waffle-textured hem and cuffs add character to this cashmere sweater.

Turtleneck, $155, everlane.com

BLAZER GLORY A lighter navy color and traditional menswear details elevate this jacket’s appeal. Blazer, $1,795, gabrielahearst.com

MATERIAL CONCERN Satin-backed crepe gives these pants a flattering drape. Khaite Violet Pants, $595, theline.com

METAL WINNER A sliver of hardware glosses up a sturdy saddle bag. Bag, $295, cuyana.com

BAND AID With stripes that start just above the bust, this weekend staple doesn’t look like every other.

T-shirt, $115, lalignenyc.com

GOOD JEANS A chic, straight cut and raw hems set these apart.

Raey Jeans, $167, matchesfashion.com

F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI (BAG, SHIRTS, JEANS, BLAZER, PANTS), STYLING BY ANNE CARDENAS (SKIRT, SWEATER, TRENCH); GETTY IMAGES (ALT)

A LOOK LESS ORDINARY // THREE ‘BEYOND-BASIC’ ENSEMBLES AND THE LITTLE TWISTS THAT GIVE THE COMPONENTS THEIR CACHET

D4 | Saturday/Sunday, January 14 - 15, 2017

NY

THE WALL STREET JOURNAL.

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STYLE & FASHION FÊTE ACCOMPLI: A GOOD-LOOKS GUIDE TO RECENT EVENTS

Prettiest in Pink

Best in Gown— and Tux

Best Deployment of Gucci

Claire Foy in Erdem.

On “The Crown” actress, the very of-the-moment shade was icily restrained.

Read: regal.

Zoe Saldana in Gucci.

The label’s hot but often intricately eccentric designs can misfire on the red carpet. Not here.

Best Choker Spokeswoman Michelle Williams in Louis Vuitton. You can’t hate the contentious accessory when it’s worn this well.

At the Golden Globes, the most ruthless competition was on the red carpet. Here, some awards that don’t come with statues

The Jessica Rabbit Award for Va-Va-Voom Without Vulgarity

Most Likely To Thank His Tailor

Brightest Ray of Sunshine

Dev Patel in Burberry. Because the military-precise fit of his tux gave his scruffy grooming a pass.

Brie Larson in Rodarte.

On a night with an embarrassing deluge of cleavage, Ms. Larson was more subtly sexy.

Viola Davis in Michael Kors Collection. Can all future tributes to Meryl Streep include stories about apple pie?

Second Best Deployment of Gucci Donald Glover in Gucci. The “Atlanta” creator broke two rules winningly with a suit (not tux) in a ’70s chocolate hue.

Most Method

Ruth Negga in Louis Vuitton. She’d wear a beautifully sleek, sequined metallic column, of course.

Most Heavy-Handed Statement

Natalie Portman in Prada.

In a homage-paying gown, the “Jackie” actress seems to be staying in character even through awards season. Inset: Jacqueline Kennedy in Oleg Cassini in 1962.

Tracee Ellis Ross. In this case, diamonds are a girl’s best frenemies.

Best Argument for Sleeves Isabelle Huppert in Armani Privé.

What better way to elegantly stand out in a sea of bare shoulders and arms?

Vive le sleeve!

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ADVENTURE & TRAVEL Barreling Through Kentucky A father and daughter take a spirited road trip along the Bourbon Trail

BY LIZ RAPPAPORT WHEN I WAS YOUNG, I thought having kin in Kentucky made me interesting. At home in Brookline, Mass., between our visits to my grandparents, aunts and cousins in Louisville, Ky., the most exotic thing around was my dad and his occasional bourbon. Today, the spirit’s distinctive scent—a mix of vanilla, caramel and butterscotch—still reminds me of his most relaxed times: When he came home early from work and had a Maker’s Mark with a splash of water or made mint juleps for Kentucky Derby– viewing parties.

So, a few months ago, I went to Louisville where my father, Charles Randolph, now lives again, to join him on a three-day drive along the Kentucky bourbon trail—the name for an area that’s home to the state’s main distilleries.

The 100-plus miles that stretch from Louisville’s bourbon-themed bars to Lexington’s white-fenced horse farms is wine country for liquor lovers. Kentuckians call the region’s relatively new tourist boom bourbonism, and distilleries are busy expanding visitors centers and building restaurants and cocktail bars on their properties. You can follow the Kentucky Distillers’ Association’s

Kentuckians call the new tourist boom bourbonism. map, take guided tours or hire party buses—or stake out your own route, as we did.

Ideal for my dad’s 2005 Porsche 911 Carrera, the twolane roads connecting the distilleries wind through seemingly endless green hills, past horse farms and the occasional stone church perched on a hill. “When you grow up here, you grow a passion for bourbon and a connection to it,” said Dixon Dedman, the proprietor of the 98-year-old Beaumont Inn in Harrodsburg, Ky. Mr. Dedman also leads well-regarded educational tasting tours in the region but he was scheduled to be on vacation during my visit so I phoned him before we set out. For starters, he explained, bourbon is whiskey but unlike Scotch whisky, “bourbon has to be 51% corn and aged in charred oak barrels. Some say it has to be made in Kentucky,” he added, but most experts specify only that it be made in the U.S. When we started out on Thursday morning (with dad as the designated driver), our first stop was at Churchill Downs, the renowned Louisville racetrack that hosts the Kentucky Derby, for an 8:30 a.m. tour of the “backside” of the track, home to a small vil-

lage of sorts, with dozens of rows of horse stalls; grooms brushing the thoroughbreds; a church for the 250 or so workers who live on the premises; a health center; and even a school. And like any self-respecting village in Kentucky, this one is well-stocked with bourbon. After the tour, at the cafe inside the Kentucky Derby museum adjacent to the track, we met with Fred Minnick, the official bourbon authority, who let us sample an array of high and low-cost bourbons. My favorite was the Elmer T. Lee Single Barrel bourbon, which can cost more than $100 a bottle.

I’m not accustomed to sipping bourbon at 10 a.m., but this one, tasting like pumpkin pie with hints of cinnamon and marshmallow, went down remarkably easy. Good bourbons, said Mr. Minnick, feel like they coat the mouth. Notso-good bourbons give off a sharp alcohol taste at first— “like adhesive on the back of an envelope,” he added. Others “are like drinking a 9-volt battery’s acid.”

Kentucky bourbon is a hot commodity these days thanks to the revival of cocktail culture, as well as trade agreements that made it easier for whiskey-lovers in Europe and Asia to buy bourbon. When the Trail was named in 1999, the state produced 455,000 barrels a year. By 2015, that figure had grown to 1.9 million, according to the Kentucky Distillers Association.

The Bulleit Bourbon distillery, a short distance away in Shively, is run by Tom Bulleit, the great grandson of a preProhibition bourbon distiller, Augustus Bulleit. Tom resurrected the brand in 1987, specializing in a brew with a high rye content. In the visitors center, a Monticello-inspired brick building, we tasted the cask-strength bourbon, which is undiluted with water. It tasted somewhat spicy, like it would pair well with the sweetness of an orange slice or a cherry. I bought a bottle thinking how nice it would be to drink Old Fashioneds all winter long.

Route 245 became increasingly tree-lined and woodsy as we drove east toward the town of Bardstown.

Then we turned south onto Loretto Road, a winding, hilly drive that led us past clusters of silos, fields full of hay bales, patches of trees and a sign for a convent. In the blink-and-you-miss-it town of Loretto, another downhill stretch opened up to brown farmhouse-style buildings whose red shutters had the outline of the Maker’s Mark bottles carved into them. An industry stalwart, the company has been run by the same family since pre-Prohibition days, when it’s estimated there was a bourbon distillery for every 200 residents in the state.

The entire compound smelled as sweet and yeasty

CENTRAL CASKING From top: An aging warehouse at Willett Distillery; a horse farm in Versailles, Ky.; pot stills at Woodford Reserve; Maker’s Mark, one of the state’s bestknown bourbonmakers, dates back to pre-Prohibition days. as a bakery. Instead of adding rye to its corn mash, as Bulleit does, Maker’s Mark uses soft red wheat that’s grown nearby, which I’m told cuts down on the alcohol’s abrasiveness.

Just before sunset, we back tracked to Bardstown and headed to Willett Distillery, a small and highly distinguished outfit, the passion project of Norway-born Even Kulsveen and his son Drew and daughter Britt Chavanne. There, in a tasting room next to the natural springs that are used in the production of the tipple, Ms. Chavanne, poured us some hard-to-find bourbons. Our favorite—so much so that we bought a couple of bottles— was Noah’s Mill, rich with a raisin flavor.

The next morning, we drove about an hour from Louisville and arrived at the stone buildings of Woodford Reserve. Chris Morris, the company’s master distiller, served us six bits of food— cranberries, hazelnuts, Parmesan, chocolate, orange and sorghum—along with six samples of bourbon. He instructed us to chew the food, then sip a certain bourbon.

One combination tasted like cherries, another espresso.

By the time we pulled up to Buffalo Trace, about 15 minutes away in Frankfort, Ky., it was pouring rain and we could barely make out the grounds, but indoors, guide Freddie Johnson was leading an animated sniffand-sip lesson. “Smack the white dog to wake it up,” he shouted, showing visitors that if you rub between your hands the first level of distilled liquor, which the company calls “white dog,” you smell corn. Rub it again, you get a whiff of rubbing alcohol. Again, the scent of vanilla. Once again, caramel.

In Lexington that evening, at the home of friends, we whipped up mint juleps, toasted the beauty of the bluegrass state and vowed to drink our new stash slowly.

For where to eat and sleep along the Bourbon Trail, see WSJ.com/travel.

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THE WALL STREET JOURNAL.

ADVENTURE & TRAVEL

GOING LOCAL IN DOMINICA INSIDER WADING Turtle Beach, a favorite local hangout, on Dominica’s northern coast.

Fogo Island fishermen and community hosts Aubrey Payne (left) and Cedric Payne.

Stranger Things 5 WAYS TRAVELERS CAN TRAIL A LOCAL IN NAPA, NAIROBI AND OTHER LOCALES

When you fly with Icelandair, you can book a stopover in Reykjavik for no additional cost and request a buddy—an Icelandair employee who will act as your private tour guide and plan an itinerary around your interests (say, music or hiking) lasting from a few hours to a day. Is there a caveat? Sort of. Last winter Icelandair received 1,400 requests for buddies and was able to fulfill only 200 on a first-come, first-served basis.

This winter the number of available buddies has increased from 35 to 50. Average cost is $100, icelandair.us/ stopover-buddy

Neighborhood Watch in Canada Fogo Island Inn, on a remote isle off the coast of Newfoundland, opened in 2013 with the purpose of revitalizing the local economy once dependent on cod fishing. To that end, every two nights at the inn includes a half-day excursion with a community host—a fisherman, artist or other local who will give you a peek into life on the island. Just about any of the 20 to 50 participating community hosts can guide you on a hiking or snowshoeing tour. From about $1,200 per night, double occupancy, for a two-night minimum stay, fogoislandinn.ca

Inside Tracks, worldwide Vayable offers around 12,000 “experiences” in 1,000 cities worldwide, all led by vetted, independent hosts.

Local knowledge and insider connections will come in handy when you want to uncover the best potstickers and lamb kebabs in Queens, New York, or negotiate VIP access to lesser-known Napa Valley wineries. The experiences range from the expected (walking tours of just about

any major city) to niche (think antiquing in Istanbul, an Amélie-themed tour of Paris or a secret-gardens tour of Athens). $40 for up to five people for the three-hour Secret Gardens tour, vayable.com Dutch startup Withlocals initially focused on connecting travelers directly with locals in Southeast Asia, but it has since expanded to 20 countries in Asia and Europe. Half of the approximately 1,200 experiences revolve around food, from sitting down to a homecooked meal with a local family in Hanoi, Vietnam, and learning to carve fruit from a Balinese artist in Bali to taking a tapas and wine tour in Barcelona. Roughly 250 of the experiences offered by Withlocals are set in private homes. Tapas and wine tour in Barcelona is about $38 a person, withlocals.com Airbnb, the homestay marketplace that lets locals open their homes to tourists, is taking the concept one step further with Airbnb Trips, which currently offers more than 500 local-led experiences in 12 cities around the world (the company plans to expand to 50 cities this year).

“It’s a mix of the obvious, such as Paris and London, and less-touristy destinations like Nairobi and Detroit,” said Airbnb’s Andrea La Mesa.

The hosts are expected to “provide something unique that travelers wouldn’t be able to find on their own.”

The result is wide-ranging offerings, from a bike tour of San Francisco’s gay cultural and historic landmarks to retracing Nelson Mandela’s prison stays with his former warden and cook in Cape Town. And you needn’t be an Airbnb guest to participate— tours are offered to all travelers. $210 per person for the one-day Mandela tour, airbnb.com/new —Sydney Lazarus

Continued from page D1 mouth Bay below—coveted by both the French and the English—was immediately clear. We sat down for a chat in a hall that displays reproductions of Agostino Brunias’s 18th-century paintings of Dominicans.

The island’s first residents were the Kalinago (also called Caribs), who arrived from South America sometime in the 13th century. Dominica’s dense interior gave them a natural citadel, and so for a few centuries—despite being one of the earliest Caribbean islands visited by Europeans—it was more or less left alone. The British took over in the 1860s, but since Dominica was not flat like the sugar islands, like Barbados, it proved unsuitable for plantation agriculture. Mr. Honychurch explained that, as a result, slavery in Dominica lasted only a hundred years.

Dominica is the only Caribbean country where indigenous people have held on to a piece of land through independence. Kalinago Territory now covers 3,782 acres on the island’s wild Atlantic coast.

I told Mr. Honychurch that I intended to visit the area and stay in the Carib Territory Guest House. “With Mr. Williams!” he exclaimed.

“Chief of the Caribs.” Charles Williams, re-elected chief in 2014, runs the place with his wife, Margaret, in the village of Crayfish River.

For me, the quickest way to learn the lay of the land is to rent a car and drive around. I first stopped at the airport for my pal Booboo, who had flown in from Bos-

LAND O’ PLENTY From top: A plate of locally grown ‘provisions’ at Prince Rupert Tavern; Secret Bay vertigo. ton, and off we went. In this mountainous country, with more live volcanoes than any other Caribbean nation, and six different kinds of forest, it can be hard to get around.

But it’s easy to meet hitchhikers: we picked up a primary-school teacher, a Rasta farmer and three construction workers heading home from a hotel site, chatting with each of them about politics, education and the economy. Our last rider offered to take us out one evening, and he pressed his phone number on us. When I pointed out that I was old enough to be his mother, he said, “The new broom sweeps the floor, but the old broom knows the corners.” We dropped him off, and Booboo and I cackled like grannies. (Later in the week, I met Jenn Hyland, who runs the Zandoli Inn— home to the best restaurant I found on the island—and she scolded me, like an older, wiser sister, for offering rides to anyone but women, children and the elderly.)

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Open: June 11 to August 19, 2017 Activities - Mostly Included Horseback riding & instruction Fishing guides & equipment Overnight Pack trips, kids rides Our chef will cook your catch Lunch rides, wine & cheese rides Photography hikes by a professional Guided hikes in Park Massage (extra) WiFi Kid’s counselors - infants & up Landscape drawing class Saturday Heated pool, hot tub & sauna Over 1000 videos for viewing in your room Wildlife viewing - one of the Champagne, shrimp, hors d’oeuvres largest elk herds in the U.S. & pianist at Sunday welcome party Jewelry classes - you can keep your creations (extra) Jazz trio for listening & dancing Fitness center. Pets are welcome Free family reunion pictures White water rafting (extra) Private hot tubs on patios (extra) Magic/Comedy Show, Karaoke House wines & beers-complimentary Golf & Tennis nearby Chef Tony’s Cooking Class every Friday Some of our weeks for 2017 are filled, but we still have space in June, July, and August. Website: www.laneguestranch.com E-Mail: lgrlane@aol.com.Telephone Lloyd Lane on his direct line at 303-747-2176 or 303-747-2493 for brochures video, & availability.

When we arrived at the Carib Territory Guest House, I found Charles Williams—a mature gentleman with a trim gray beard—to be courtly, pragmatic and somewhat grumpy. He also turned out to be a deeply knowledgeable guide to Carib culture old and new. After a stop at Escalier Tete Chien, an intimidating zipper-like stretch of rocks that drops down into the Atlantic and plays an important role in Kalinago mythology, he took us hiking up a boulder-covered river. We panted as Mr. Williams marched ahead, but he stopped to show us spots where ancient ancestors ground bowls into the rock. He brought along a coconut that he cracked open as easily as an egg; after giving us a drink he showed us how to lure fish by chewing up some of the coconut’s meat and spitting it into an eddy. At the top of the climb was a fast, heavy and cold waterfall. We followed Mr. Williams’s lead and dunked ourselves under.

As promised, Mr. Nassief had arranged for us to meet with Bertrand Jno Baptiste, better known as Dr. Birdy, or just Birdy. He has hiked virtually every trail on the island.

He has a bird list of more than 900 species, and he can imitate the calls of most birds that live on Dominica. On our walk up to Syndicate Parrot Preserve, we passed a small farm. Within about a 1,000 feet, we saw: guava, avocado, grapefruit, patchouli, nutmeg, sour sop, cinnamon, orange, lime (with incredibly fragrant blossoms), bay leaf, ginger, arrowroot, banana, a passionfruit patch, pumpkins. In such a garden, the idea that Eve would have insisted on an apple seems dubious.

Once in the preserve, at a small clearing on the side of a hill, we could see all the way across a valley to the flank of the country’s largest

volcano. We were hoping to see one of Dominica’s two endemic species of parrots. I glimpsed some birds for a few seconds as they swept up and down in flight, but spotting them at rest is like playing “Where’s Waldo?” with Mother Nature. Birdy came to the rescue; he set a powerful telescope up on a tripod and brought into view one after another creature— red-necked, electric-green— which he identified as Jaco parrots. Birdy called them and interpreted the squawks they exchanged with one another. He’s warm, relaxed, with a huge store of natural knowledge and stories to tell. I wished I could have spent more time with him.

Within hours of arriving, I had places to go, people to meet.

Later, when I called Mr. Nassief to thank him for our visit, he invited us to come over and take a last swim to Secret Bay’s “secret beach.”

Getting there requires wriggling through a small shallow tunnel cut at the water line through a massive rock.

Booboo whispered to me, “Did you hear the part about the bats?” Not an angle I chose to pursue. We made it through without incident, and after paddling around for a while, stretched out on an empty beach. Despite knowing I’d have to swim back through the same little rocky tunnel, I felt expansive and unaccountably cheerful and crowed about all my new Dominican friends. Not a single lumpy mattress was required.

For where to eat and sleep on Dominica, see WSJ.com/ travel.

MARICA HONYCHURCH FOR THE WALL STREET JOURNAL (DOMINICA); PETE RYAN (FOGO ISLAND); MAP BY NATE PADAVICK

Icelandair’s Buddy Plan

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Saturday/Sunday, January 14 - 15, 2017 | D7

Photo By: Peggy Sirota

THE WALL STREET JOURNAL.

Be the breakthrough.

™

Breakthroughs are the patients participating in clinical trials, the scientists and doctors working together to advance the fight against cancer, and the brave survivors like Tonya who never give up. Let’s be the breakthrough. To learn about appropriate screenings and clinical trials or to help someone with cancer, go to su2c.org/breakthrough. #cancerbreakthrough

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THE WALL STREET JOURNAL.

EATING & DRINKING ON WINE: LETTIE TEAGUE

IF YOU PAID $50,000 for a 141-day cruise to 35 countries and 66 ports, would you want to spend all of that time drinking Pinot Grigio and Sauvignon Blanc? There are plenty of people who would, according to the cruise-line wine directors and sommeliers I spoke with last month.

The wines are two of the most popular on luxury ships—what Silversea Cruises wine ambassador Lawrence d’Almeida calls “mutiny” wines, meaning passengers would rebel if they weren’t on board. Naturally, they are featured on Silversea’s all-inclusive wine list (aka drinks included in the trip price).

Both all-inclusive and priced cruise-ship wine lists have grown in size and sophistication over the years, in line with the overall upgrade in luxury sea travel. More obscure wines like Albariño and Grillo now show up alongside perennial favorites, giving voyagers a chance to explore—if they choose to.

All-inclusive options allow passengers to pay one price up front for unlimited wine and beer during their trip, although the terms may vary. Some ships bundle drinks into the total cost, while others offer add-on packages. For example, Norwegian Cruise Line’s Ultimate Beverage Package, at $79 a person a day, includes any wine priced $15 a glass or less. Some ships feature both. Viking Ocean Cruises offers complimentary house drinks as well as a Silver Spirits Beverage Package that allows passengers to sample wines from the priced list for $19.95 a day.

If this all sounds confusing, it is.

Options range widely from one cruise line to the next, as do the quality and breadth of selection. I found quite a few grocery-store staples (Beringer White Zinfandel, Chateau Ste. Michelle Riesling) on Norwegian’s fleet wine list, while Crystal Cruises’s complimentary list features more interesting choices such as La Chablisienne Chablis and Nielson by Byron Pinot Noir—and yes, plenty of Sauvignon Blanc.

Yet guests will rarely see a printed all-inclusive wine list. On most cruise lines, the wine selection is recited by staff or printed on daily menus. This gives sommeliers the flexibility to feature local wines they purchase en route. Viking head sommelier Lorena Merlini said it also allows them to make changes if they run out of a particular wine, while Mr. d’Almeida noted that it keeps passengers from drinking up the most popular offerings.

Crystal Cruises, which offers a printed list upon request, said 80% of guests choose the complimentary selections. “People don’t like to sign a check,” said Toni Neumeister, vice president of food and beverage.

MIKE LEMANSKI

How to Navigate Cruise-Ship Wine Lists

Some cruise lines eschew all-inclusive or drinks packages. Cunard Line offers only a priced wine list, which includes its own private-label bottles. (Other lines, including Norwegian and Crystal, also have private labels.) Bar-service man-

Pinot Grigio and Sauvignon Blanc are ‘mutiny’ wines, meaning passengers would rebel if they weren’t on board. ager Edward Dieusaert said the company considered an all-inclusive option but currently has no plans to change its offerings.

That may be because Cunard has invested a great deal in its priced wine list, easily the most

extensive (and expensive) I found in my seven-cruise-line search. I had a look at the list in person when Cunard’s Queen Mary 2 briefly docked in Brooklyn late last month. Chief sommelier Domino De Four and sommelier Andrés Solis took me on a tour of the ship’s restaurants and offered me a taste of the Cunard private-label wines.

Its white, rosé and two red Pays d’Oc wines were perfectly serviceable but not particularly good. And at $32 a bottle, they weren’t exactly a great deal.

Wine on a cruise ship is rarely cheap. Most are marked up three, four or even five times wholesale.

La Crema Chardonnay, for example, costs about $14 retail but is $65 on the Cunard list. While that kind of markup is in line with most restaurants on land, I had expected better deals at sea given that cruise lines often purchase their wines at duty-free prices,

making them all the more affordable for the ships’ wine directors.

The good news for those who don’t want to pay high prices or drink endless Sauvignon is that most cruises offer passengers the option of bringing their own bottles or buying while ashore—with limitations. Some let guests have as many as 12 bottles; others restrict it to two. Corkage fees also apply.

The other good news is that passengers interested in expanding their horizons beyond Pinot Grigio and Sauvignon Blanc have ample opportunity. Norwegian Escape, for example, debuted a wine bar in partnership with renowned Napa Valley vintner Michael Mondavi about a year ago focusing on wine tasting and education, and Cunard debuted a wine academy last year.

Sommeliers are another great source. I found Cunard’s Messrs.

De Four and Solis knowledgeable, with a playful sense of humor

about their jobs—and passengers’ tastes. Germans, Mr. Solis said, “like their wines very cold,” while the French like to drink French wines first before trying others— “but they criticize everything,” he added with a laugh. Americans are “the most open-minded,” and the English prefer “wines of decrepitude,” aka over the hill.

Indeed it’s the sommeliers, as I heard over and over from cruiseline wine directors, who ultimately determine passengers’ wine experience, finding wines that please guests (yes to Pinot Grigio) but also guiding them to undiscovered regions. As Mr. Solis said, “Although people like to stick to wines [like] New Zealand Sauvignon Blanc or Sancerre, I try to take them to other places, like Australia or Israel.” And isn’t a new experience the whole point of travel, after all?

Email Lettie at wine@wsj.com

Oyster and Turnip Pan Roast

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 She’s Known For Breathing new life into Poole’s, a Raleigh institution.

Comfort food cooked with skill and an added dash of indulgence.

TRADITIONALLY, turnips aren’t a prerequisite for an oyster pan roast, the creamy, comforting dish that’s really more stew than roast. But Raleigh, N.C., chef Ashley Christensen likes to make the most of what’s in season at the moment. “Around here, when great oysters are peaking, turnips are ripening too,” she said.

Turnips aren’t the only thing that sets this pan roast apart. Too often, oyster stews are full of overcooked shellfish. “We put the flavor of the oyster into the pan before adding the meat,” Ms. Christensen said of this quick and easy recipe, her final Slow Food Fast contribution.

First the turnips simmer in a little dry white wine, sweetening as they soften.

Next, mustard, cream and the flavorful

juices from fresh-shucked oysters go into the pan, followed by the turnips’ greens, which cook just long enough to wilt.

If oysters aren’t available—or shucking them is beyond your ambition level—simply steam clams or mussels until the shells just pop open and use their meat and the juices they release.

Either way, the shellfish goes into the pot right before the heat is turned off.

This way, the meat cooks gently and just long enough to plump and warm through.

“If you eat and cook lots of oysters, then you know how they change with heat,” Ms. Christensen said. “Working these delicate things in at the end, so they’re just hugged by everything in the pan, makes so much sense to me.” —Kitty Greenwald

TOTAL TIME: 35 minutes SERVES: 4 ¼ cup extra-virgin olive oil 1 yellow onion, diced 2 garlic cloves, minced 2 turnip bulbs, peeled and cut into ¾-inch dice 1 cup dry white wine

2 tablespoons Dijon mustard 3 cups heavy cream 24 freshly shucked oysters, juices reserved 1/ 4 cup unsalted butter,

1. Preheat oven to 375 degrees. Set a medium pot over medium heat and swirl in olive oil. Stir in onions, garlic and turnips, and cook until onions are translucent, 7-9 minutes.

2. Add wine and bring liquid to a simmer.

Cook, stirring occasionally, until turnips begin to soften, 3-5 minutes. Stir in mustard, cream and reserved oyster juices. Bring to a simmer, then stir in turnip greens and

melted 3 cups thinly sliced turnip greens and/or arugula 16 saltines Fine sea salt and freshly ground back pepper

simmer until greens wilt, about 2 minutes.

Add oysters and immediately remove pan from heat. Let oysters poach until plump and heated through, 3-5 minutes.

3. Meanwhile, brush saltines with butter and arrange in a single layer on a baking sheet. Toast until golden, about 5 minutes.

Season oyster pan roast with salt and pepper to taste and serve immediately with warm saltines.

CRACKER UP Saltines, brushed with butter and warmed in the oven, make a nice, crunchy counterpoint to this luscious oyster pan roast.

BRYAN GARDNER FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY RYAN REINECK; ILLUSTRATION BY MICHAEL HOEWELER

SLOW FOOD FAST: SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES

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THE WALL STREET JOURNAL.

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Saturday/Sunday, January 14 - 15, 2017 | D9

DESIGN & DECORATING ANATOMY LESSON

Sitting-Pretty Room A designer and a socialite create a luxe peacock-themed parlor that soiree guests flock to

BY TIM GAVAN

Work an Angle On a black 19th-century Korean Coromandel screen, gold stalks glitter with restrained sophistication.

“Instead of elaborate figures and temples, this simple screen has only bamboo,” Mr. Vergeylen said.

The panels, hung on the wall partially folded rather than flat, add depth to the room. This goldgrounded screen will work as well: The crimp is more important than the color. Chinoiserie Painted Folding Screen, $1,495, chairish.com

“HER LIFE IS ONE nonstop party,” said London interior designer Philip Vergeylen of his friend Rena Abboud, a socialite and author of an entertaining book with a passion for throwing extravagant affairs. “She has so many guests, everyone ends up sitting on each other’s laps.”

No surprise, then, that Mr. Vergeylen had to become something of a party planner himself to serve the needs of the unremitting hostess while decorating a sitting room in her family’s Chelsea townhouse, featured in “Signature Spaces: Well-Traveled Interiors by Paolo

Moschino & Philip Vergeylen” (Vendome Press).

Like a host trying to anticipate the dynamic between 50 varied dinner guests, he needed to consider whether objects like Fornasetti jars imprinted with silly faces could carry on an aesthetically genial conversation with throw pillows from Istanbul. His client’s pithy direction helped: Ms. Abboud handed him a peacock feather, saying, “Make the room look like this.”

By adhering to a turquoise scheme with just a few hints of warmer colors and flashes of gold, he intermingled a hodgepodge guest list of items that might not otherwise have gotten along.

SIMON UPTON (INTERIOR); F. MARTIN RAMIN, STYLING BY ANNE CARDENAS (FABRIC, PILLOWS, FRINGE)

Find a Common Language The Turkish ikat fabrics that cover the sofa cushions jibe with the orange-and-turquoise prints on the tablecloth and slipper chairs, though all hail from different regions. Save on airfare with silk and velvet versions by Orientalist Home, ordered online. Ikat Pillows, from $132 each, onekingslane.com

Double Down The bleached vintage rug overdyed to match the walls and textiles grounds the nearmonochromatic color scheme that keeps myriad styles and periods from seeming chaotic.

It also protects wood floors from nightly dancing: “It would have to be titanium to withstand all the stilettos,” Mr. Vergeylen joked. A similar style: Color Reform Spectrum Overdyed Rug, approx. 9-by-12 feet, $6,700, abchome.com

Find a Friendly Face Ms. Abboud brought back two Piero Fornasetti vases from a flea market in Saint-Tropez.

“Initially, I thought they weren’t baroque enough,” said Mr. Vergeylen, “but somehow they make the whole room work.”

Like familiar faces spied at a packed event, the jars are a comforting, playful addition.

Fornasetti Bitossi Vases, $509 each, farfetch.com

Introduce Bold to Basic “Normally, having a sofa this color could make someone think you’re on drugs,” Mr. Vergeylen said, “but the shape is so classic and chic it grounds the color and makes it acceptable.” Dedar Adamo & Eva Velvet, $108 per yard, Jerry Pair, 800-909-7247; Samuel & Sons Saisons Brush Fringe, $27 per yard, The D&D Building, 212-759-5408 x 204

Cover Your Bases In a layered room, furniture legs add distraction and can look delicate and fussy. Said Mr. Vergeylen, “I use bullion fringes and skirts to make furniture chunky, bold and strong,” as he did on these two slipper chairs, reupholstered in a Moroccan-inspired printed velvet. Nikita Velvet in Marina, about $195 per yard, lewisandwood.co.uk

MINOR MELTDOWN Artists embrace a production flaw that lets material do its thing TWO YEARS AGO, when jeweler Randi Mates’s father underwent a (successful) heart transplant, she turned to working with glass to “get out of herself.” The accomplished metal worker and founder of New York label Aesa, thought there would be some parity between the crafts. “It did not work out that way,” she said. “But failure can be a blessing, because something your mind couldn’t even conceive of comes of it.” Witness her globby glass candle holder, at right.

Tom Dixon’s polycarbonate Melt Pendants lights had a similarly serendipitous birth. “We started crushing rejects from our production, and I preferred the crushed asymmetric shapes to the perfect ones,” he said. Both designers note the attraction of irregularity in a world of industrial and digital uniformity.

While her father was ill, Ms. Mates took pleasure in the controlled

Link With a Lamp Mr. Vergeylen sees a formal connection between the flames exhaled by the tablecloth’s dragons and the quirky, curvy Maison Jansen table lamp. But its floral quality also ties it to the gold bamboo plants on the screen. This furled lamp from Mr Brown London can be viewed in many different lights as well. Lincoln Table Lamp, $1,185, deringhall.com

chaos of blowing glass, and saw beauty in the instances when the material won. Explaining the broad appeal of objects that appear unstable, she said, “Maybe today, everyone is trying to find beauty in uncertainty.”

Potter and designer Jonathan Adler also appreciates the tension communicated in his very melty Lucite Icarus Head. “There’s an implied motion to melting,” he said, “and the idea of freezing the motion in time is trippy.”

Designer and Brentwood, Calif., shop owner Alison Palevsky commissioned vessels from Brooklyn ceramist Jasiu Krajewski, some of which appear to be collapsing on themselves (and which sold out before the others). “When you put a bouquet of, say, all tulips in one,” she said, “their perfection plays nicely against the imperfection of the vase.” —Catherine Romano

Let It Glow The gold-leaf-gilded cocktail table is a shimmering counterpoint to all the turquoise here. Mr. Vergeylen advises: “Whatever color you start with, you must always make a room glow.” This lacquered-goatskin number will also add some shine. Karl Springer Cocktail Table from Black Rock Galleries, $3,000, 1stdibs.com

Train a Dragon The tangerine-and crimson-colored dragons on this linen tablecloth reference an ancient Chinese design and extend the Asian theme of the Korean screen. An amber and turquoise border sparkles with the same jewel-tones present throughout the room. Richard Smith ‘Enter the Dragons’ Fabric in Chinese Spice by No.9 Thompson, from $142 per yard, No.9 Thompson, 800-262-0336

NICE BLOB Clockwise from top left: Melt Pendant, from $645, Tom Dixon, 212-228-7337; Icarus Head, $1,495, jonathanadler.com; Simon Klenell Melt Vase 01, $1,250, thefutureperfect.com; Grand Boules Candlestick 2, $565, aesajewelry.com

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NY

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THE WALL STREET JOURNAL.

DESIGN & DECORATING EVOLUTION

The clothing stand that likely stood in for a gentleman’s gentleman is stripped down to its essentials, becoming a beauty in the process THEN Though its precise origins are somewhat obscure, the valet stand was likely created to help 19th-century British servants dress their upper-crust employers, according to Glenn Adamson, senior scholar at the Yale Center for British Art. A gentleman’s suit was expected to be meticulously cleaned and pressed; the frame helped maintain the garment’s pristine state.

The stands, however, reached peak popularity from the 1920s to 1950s, after social shifts that accompanied World War I dismantled the service industry and a growing middle class could afford them, said Sarah Coffin, a curator at Cooper Hewitt, Smithsonian Design Museum.

THE INSPIRATION To reflect the pale palette of James McNeill Whistler’s ‘Symphony in Flesh Color and Pink: Portrait of Mrs. Frances Leyland’ (1871-74), whiteand-blush hydrangeas mix with Australian waxflower. Maroon scabiosa echo the painting’s darker patches.

Ico Parisi for Fratelli Reguitti Double Stand Valet from Horseman Antiques Inc., $3,350, 1stdibs.com

THE ARRANGEMENT

The 3.5-by-5.5-foot walnut Estenda, created by Busetti Garuti Redaelli for Ligne Roset, loosely resembles a classic valet, yet intentionally lacks a dedicated spot to hang a single blazer or shirt.

The design studio wanted to fashion a more flexible object suitable for either a bedroom or an entry hall—where it could double as a clothes rack on which visitors could pile any number of coats. If you aren’t one to leave clothes hanging visibly about, the designers suggest positioning the stand—beautifully bare—behind a sofa like a folding screen or a minimalist sculpture. —Kelly Michèle Guerotto

Vases, designer’s own.

FLOWER SCHOOL

NOW

Busetti Garuti Redaelli for Ligne Roset Estenda Valet, from $1,035, Ligne Roset, 212-375-1036

A TWIST ON A WHISTLER In an introspective January mood, floral designer Lindsey Taylor riffs on a quiet, nearly monochromatic portrait by James McNeill Whistler JANUARY IS A TIME to slow down and look inward, which put me in mind of this calming, nearly monochromatic portrait by American artist James McNeill Whistler (1834-1903) at New York’s Frick Collection. In its subtlety and limited palette, it’s a reminder that less is often more, a fitting challenge for a flower arrangement, too.

To capture the canvas’s mood, I kept my blooms

and vase selections soft and creamy. Using two vessels—an ironstone pitcher and a vintage vase—let me play with depth and the heights of the flowers.

I cut short a white hydrangea, with a hint of blush pink, to hug and spill over the rim of the vase. Its tissue-like texture echoed the diaphanous fabric of the woman’s dress (one Whistler designed). Australian waxflower, with its willowy stems and tiny white flow-

ers, alluded to the branches on the canvas’s left side and the lines on the dress’s sleeves. Dark maroon scabiosa flowers punctuate the arrangement like the subject’s hair and the flowers on her dress, the only real tonal shifts in the painting.

My goal was to be as true as possible to the dreamy effect of this quietly striking canvas, where the figure and the room in which she stands seem to blend into a harmonious whole.

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Amy Slate’s Amoray Dive Resort Spectacular sunsets. Water front accommodations steps from pool, beach, kayaks & scuba/snorkel catamarans. 3/night, 2/dive packages from $345 ppdo. Rooms from $119 305-451-3595 or 800-426-6729 amoray.com

STEPHEN KENT JOHNSON FOR THE WALL STREET JOURNAL, FLORAL STYLING BY LINDSEY TAYLOR, PROP STYLING BY CARLA GONZALEZ-HART (ARRANGEMENT); MICHAEL BODYCOMB/THE FRICK COLLECTION, NEW YORK (INSPIRATION)

KEEP ME HANGIN’ ON

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THE WALL STREET JOURNAL.

Saturday/Sunday, January 14 - 15, 2017 | D11

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GEAR & GADGETS

Going Downhill Fast These ski innovations let you hit the slopes more safely and comfortably than ever—without putting the freeze on style

BY BRIGID MANDER

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1. UVEX JAKK+ Octo Helmet Although helmets used to be a rarity on the slopes, today they’re the norm. An estimated 80% of skiers and snowboarders say they wear one, according to the National Ski Areas Association. If you’re looking for superior noggin protection that doesn’t sacrifice comfort and style, check out the JAKK+ Octo.

The ‘Octo’ refers to the octopuslike “fingers” inside the helmet that adapt to any head shape and hold your skull snug. In our test, the fit was so secure the helmet didn’t wobble at all (which, the manufacturer says, contributes to its protective prowess). And in terms of comfort, the JAKK+ Octo felt as imperceptible as a helmet can be. $220, uvex-sports.com 2. ABOM Anti-Fog Goggle Nothing is more annoying—or dangerous—than impaired vision on the slopes. Goggle makers have exhausted themselves looking for ways to prevent lenses from fogging up: tiny fans, vents, chemical coatings. ABOM’s approach relies on a transparent, heat-conducting film sandwiched between two lenses. Press a button on the goggles’ side and a rechargeable battery zaps out a current to heat the film. You can choose from two modes: a low-level setting designed to run all day (which we preferred) or an intense 10-minute ice-busting burst. We tested the goggles while skiing through a bona fide blizzard (by National Weather Service standards); the goggles’ anti-fog tech performed as promised, and the battery lasted from morning ’til snowy sundown. $250, abom.com 3. LEKI Trigger Vertical Aergonlite 2V Ski Poles No sane skier would strap into a pair of skis that didn’t have releasable bindings. But few of us think

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F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS

DVANCES IN SKI gear from season to season are usually incremental at best. But that doesn’t mean the sport hasn’t evolved radically over time. While the primary driver of innovation used to be the needs of racers, these days you’re more likely to see improvements in two areas that are key to casual skiers: safety and comfort.

As skis have gotten more efficient and faster, makers of protective gear, like helmets and body armor, have upped their game, too.

And with high-performance clothing allowing skiers to stay out on the slopes longer, reliable accessories are more important than ever.

Here are a few recent introductions we recommend trying out on your next run:

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twice about the danger posed by the ski poles strapped to our wrists.

While not as common (or as traumatic) as a twisted leg, wrist and shoulder injuries can also result when skiers crash. LEKI smartly offers a design with a releasable strap that untethers when sufficient force is applied. This season, the brand is introducing a new version that lets skiers hold the pole in a wider variety of positions. Choose from a model with a traditional strap or one that attaches to a special glove for strap-free but secure skiing. $130, leki.com

4. Full Tilt Descendant 8 Boots In the early days, ski boots were fairly comfortable—leather-soled and somewhat pliable—nothing like the stiff, slip-prone footwear we use today. The advent of ski lifts— and longer runs—put an end to that. If you wanted to spend all day going downhill, you needed boots with a sole made of a rigid material to better transfer the force you apply with your legs to the bindings. It took decades, but boot engineers have finally figured out how to maintain that precise connection between binding and ski-boot sole

using a less slip-prone material: grippy rubber soles, like those found on this pair from Full Tilt, which provide better traction when you robot-walk across the parking lot or cruise the après bar. Bonus: When the soles wear down, you can simply replace them rather than buy new boots. $750, fulltiltboots.com 5. Sly Tech Backpro NoShock XT Naked Spine Protector Spine protectors—protective pads that you strap on, backpack-style, under your jacket to shield your

spine and posterior ribs in case of a crash—may not be as prevalent as helmets, but they’re gaining popularity as models become less bulky.

Developed in part for World Cup ski racers, the SlyTech Backpro NoShock XT Naked, for example, has a redesigned honeycomb structure that the company says increases shock absorption by 20%, yet is lighter, more flexible and breathable. Although we didn’t test its crash-protection properties, we did find it so comfortable that we forgot it was there during the ski day. $150, slytechprotection.com

THE FIXER: MICHAEL HSU

The Genius of This ‘Smart’ Light? Simplicity Q

I recently purchased a set of connected lightbulbs that I can control with my iPhone. I like being able to set timers and adjust the color of light, but using my phone to control them is a pain. Is there a setup that makes smart lights as easy to use as, well, a light switch?

KIERSTEN ESSENPREIS

A

I, too, have found app-controlled bulbs cumbersome.

Who wants to launch an app just to turn on a light? I had high hopes for lighting systems compatible with Alexa voice control—simply saying “Alexa, turn on the livingroom lamp” seemed like the ultimate convenience. But the systems I’ve tested were a bit sluggish, which got on my nerves. For me, nothing beats pairing a smart light with a physical on-off switch.

Philips makes a dimmer switch for its Hue bulbs that you can stick on a wall. Logitech has a single-button model, called Pop, that’s compatible with Hue and other connected bulbs. My favorite option is the Lutron Caséta Wireless Pico,

because it blends in with the wall switches already in your home; it controls standard lamps that you plug into a Caséta Wireless adapter.

The smartest “smart” lighting product I’ve seen lately, however, has an integrated on/off switch: the Ara Collection from Target, which includes app-controlled table, floor and pendant lamps. The fixtures have unadorned white cylindrical shades, metal bases and LEDs that emit warm to cool white light. Because the lamps connect directly to an iPhone via Bluetooth, no hub or Wi-Fi network is required, making setup simple.

Using the Target Connect app (for iOS only), you can set timers for a lamp to make it turn on automatically with an invigorating cool light in the morning when you wake up but switch on a cozy warm light when you come home in the evening.

Ironically, the Ara Collection’s most “cutting-edge” feature is its built-in control for dimming and turning the lamps on and off.

There’s no need to launch an app; just tap the top of the lamp’s metal finial to cycle through four different brightness settings. (This, by the way, is a lot less tedious than saying, “Alexa, dim the bedroom light to 50%.”) You can even plug the lamp into a wall outlet connected to a traditional light switch. The light will remember the last brightness level and color it was set to.

The only caveat is that some of the lamps in the collection aren’t very bright and are better used for ambient lighting rather than as the sole light source. Of the two table lamps, I recommend the larger one ($60); it outputs 500 lumen, about as much as a 40watt replacement LED. The floor lamp ($100) on the other hand, is plenty bright, emitting 3,000 lumens, which is the equivalent of two 100-watt replacement bulbs.

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D12 | Saturday/Sunday, January 14 - 15, 2017

* ***

THE WALL STREET JOURNAL.

GEAR & GADGETS

GETTY IMAGES

SIZEABLE ASSET Volkswagen’s allelectric, self-driving concept van, called the I.D. Buzz, is part of the company’s bid for redemption after Dieselgate.

RUMBLE SEAT: DAN NEIL

The Obesity Epidemic at the Detroit Auto Show ANOTHER JANUARY, and like frumpy swallows returning to Capistrano, the world’s automotive media flock to downtown Detroit, home of the North American International Auto Show (through January 22). I’ve been coming for two decades now, and as a lover of beautiful moving objects, I must faithfully report that art died at the Detroit show this year. A few new, great-looking cars took their turn in the lights—the Lexus LS 500, the Volvo V90 R-Design wagon, the Mercedes-AMG GT C and GT S—but otherwise, what a bunch of scows.

I’ll name names at length; but first, I need a safe space to vent.

More than others, the auto industry is grappling with the Trump moment. This is a capital-intensive, long-term business, with global investments and regional strategies years in the making. Above all, auto makers crave stability, and of that Mr. Trump promises little.

But he has promised to be very pro-business. The Alliance of Automotive Manufacturers has asked the incoming administration for relief from federal fuel-economy standards, now pegged at a nominal 54.5 mpg by 2025; and Mr. Trump’s pick to head the EPA, Scott Pruitt, is no fan of the status quo. So I was in high dudgeon when I hit the doors of Cobo Center, ready to fight the dragons of deregulation.

But as I walked the paddedcarpet trails amid acres of lookalike crossovers and SUVs, banal under the brilliant lights, I had a thought, a feeling, like a cold stone in the pit of my stomach. After all,

why would I, an advocate for better mobility, defend a system so broken, so binding to innovation on so many fronts? Oh my god, look at all these hulking jalopies!

What if Mr. Trump were right?

But that would mean...I was wrong!

Not on the details, and certainly not on the intent; but on the timing, the chance to modernize the rulebooks of vehicle safety and emissions and to synthesize them into one orderly set of guidelines. Critics have said that Corporate Average Fuel Economy (CAFE) is a mess and I tend to agree, certainly from a data-collection standpoint. The next-best system, California’s cleanair mandates, is also a tangle.

I don’t mean to deregulate, but to re-regulate, in order to tighten the choke hold on the internal combustion engine. These are my project specs: zero emissions, well-towheel; autonomously capable with near-zero mortality; greenhouse-gas neutral throughout the product life cycle and recyclable. Other than that, I declare an open and collaborative design space; or as they say in Nascar, have at it, boys.

The Detroit show illustrates how regulations dictate vehicle design, even lead it by the nose. In 2011-2012, the EPA adopted the footprint standard, by which larger vehicles and trucks were allowed lower fuel economy. The CAFE standard is sales-adjusted, which effectively incentivized selling more, larger vehicles, with their higher profit margins, which is why auto makers were so keen on the footprint rule in the first place.

Exactly one vehicle generation later, the 2017 Detroit show is a perfect mirror of these regulatory changes. Crossovers have stormed the market—because you get more horse on the hoof—and everything on the floor is just slightly puffy, as if vehicles are retaining water.

One jaw-dropper was the Subaru concept Viziv-7, as in seven passengers. Setting aside the shiny show-car jewelry, the concept forecasts the rough size and shape of the production model, due in 2018.

With the brand’s alluring iconoclasm in mind, does Subaru really need its own Chevy Tahoe? “We lose our buyers when their family grows,” explained Subaru representative and veteran character actor Dominick Infante.

I pity the designers struggling to wrap sheet-metal around these expanding volumes and distended proportions. Take, for instance, the GMC Acadia Denali, another plussize, three-row, seven-passenger SUV with a shoulder line and hood weirdly distorted by the stretch over the bumpers.

But big sells. Car makers sold about 17.5 million light vehicles in the U.S. last year. GM in particular is crushing it, with record earnings in 2016 (trucks and SUVs returning bigger profits). But that GM, Ford and Fiat Chrysler Automobiles (heir to Chrysler) should again find their balance sheets so dependent on trucks, SUVs and (now) crossovers, is some straightup, hard-core déjà vu.

A lot of the drama this year occurred behind the curtain. VW execs

took the stand on Monday to introduce the new VW Atlas SUV, only two days after one of its executives was arrested at a Florida airport on Dieselgate-related charges, and one day before Wolfsburg announced an additional $4.3 billion payout to avoid further litigation in the U.S. Bad news cycle, that.

It’s very much hoped U.S. sales of the Atlas will arrest VW’s fall, and it might: It’s a handsome product with smart cabin tech, allwheel-drive, three-row seating and a whopping 96.8 cubic foot cargo hold (both rows of seats folded).

As a lover of beautiful moving objects, I must faithfully report that art died at the Detroit show this year.

And yet the Atlas is another example of gratuitous supersizing. It’s 198.3 inches long, 77.9 inches wide and 69.6 inches high, about as big as a Jeep Grand Cherokee. When you open the hood the little transverse-mounted 2.0 liter engine looks positively dwarfed by the enormity of what’s known as the vehicle top hat, though here, more like a novelty sombrero.

(Author’s note: At this point in my usual Detroit Auto Show reportage, I’d be raving about some Italian ice pick on four wheels with 1,000 horsepower and a golden

MY TECH ESSENTIALS

MARGOT LEE SHETTERLY The author of ‘Hidden Figures,’ a history of NASA’s female African-American mathematicians, on knitting her wedding dress and her non-Apple laptop

ALAMY (NEEDLES)

I don’t like to look at the clock on my phone. So I wear a Seiko Women’s Solar Watch. It’s simple and elegant, and I can check the time without feeling like that person who’s checking her phone.

I have a really good carry-on bag: the Tumi Voyageur Athens Carry-All. It looks nice but doesn’t draw attention. It’s got tons of pockets inside that are all easily accessible. And it fits in an overhead compartment.

My dad was a research scientist, and when I was growing up, he brought home a lot of graph paper from NASA, so I’ve always been a graph-paper aficionado.

There’s something about the tidiness of the cross hatching that appeals to me. I feel like things are in order. I prefer the 100-page Miquelrius Leather-look Journal.

I’m a knitter and I cannot live without knitting needles. I used addi Turbo needles to knit my wedding dress—and, no, it didn’t look like a big sweater! When the feet wear out of my socks, I will darn them to fix them up. I just replace the feet; the legs never wear out.

My husband and I have a 2005 Honda Element. It’s plastic and rubber inside, so it’s easier to keep clean. The back seats fold down so you can turn it into a little trucklike car for hauling. It’s got more than 100,000 miles on it, and we recently swapped its engine because we love the car so much.

gearbox. But sadly many of the exotic and prestige marques, like Porsche, Lamborghini and RollsRoyce, gave Detroit a pass this year, and several automakers chose to make their splashy tech debuts at the Consumer Electronics Show in Las Vegas. You don’t have to be a sociologist to sense the shifting dynamic toward CES’s younger, techier, mobility-agnostic audience. All the more reason to reinvent the automobile.)

For enthusiasts of cognitive dissonance, across from the Atlas on the stand was the I.D. Buzz van, an electric/autonomous concept hollering back to the beloved counterculture icon of the 1960s.

The I.D. Buzz—previewing the dedicated electric architecture—is part of VW’s campaign for public redemption. “We know that the future will be electric,” said VW design director Klaus Bischoff.

“It’s just a better way to build a car.” Excepting that gas-powered SUV over there, you mean?

Detroit was, in a few brilliantly lighted corners, hopeful, and even useful: I direct your attention to the 2017 Chrysler Pacifica Hybrid, a plug-in minivan with 33 miles of all-electric range and combined gas-electric efficiency of 84 mpge. For those who have been following my own car-shopping adventures—oh yeah, even I have to buy a car now and then—the Pacifica Hybrid is a strong and realistic candidate.

I doubt my wife will sign off on the Alfa Romeo Stelvio crossover, glorious thing that it is.

I’m pretty attached to my HP Spectre.

It’s fast, it’s very light and it’s very good-looking. People come up to me all the time and ask, “Is that a Macintosh?” And I’m like, “No, it’s an HP Spectre!” Plus, it’s less expensive than a MacBook Pro.

I have to say, the pens that I like the most are the ballpoints that I steal from Ritz-Carlton hotels. They’ve got some heft to them. They’re very smooth.

Yes, I am the pen stealer.

—Edited from an interview by Chris Kornelis