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What the Heart William McGurn

Hillary Clinton’s
Doesn’t Feel Class Issue
PERSONAL JOURNAL | D1 OPINION | A11
* * * * * * TUESDAY, FEBRUARY 2, 2016 ~ VOL. CCLXVII NO. 26 WSJ.com HHHH $3.00
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What’s Cruz Vaults Past Trump in Iowa

News Rubio surges to close third as GOP voters turn
out in record numbers for first 2016 contest
Business & Finance
CLOCKWISE FROM TOP: JIM YOUNG/REUTERS (TOP); PATRICK T. FALLON/BLOOMBERG NEWS; PETE MAROVICH/GETTY IMAGES; RICK WILKING/REUTERS; JUSTIN SULLIVAN/GETTY IMAGES
BY PATRICK O’CONNOR
AND JANET HOOK
DES MOINES, Iowa—Texas Large turnout but deep

G oogle parent Alphabet
reported strong results at
its main Internet business,
Sen. Ted Cruz outmuscled
Donald Trump to win the Iowa
fissures for voters....... A5
Rubio may see boost
sparking an after-hours rally caucuses on Monday, deliver- from establishment after
that made it the world’s ing a stinging rebuke to the strong showing............ A6
most-valuable company. A1 celebrity businessman and es- Next state contest is an
tablishing himself as a leading unpredictable one...... A6
Big money managers are
contender for the nomination.
pushing for more “Alt-A”
The results Monday set the
mortgages, which helped fuel
stage for a series of high- for millions of Americans who
housing-crisis defaults, as in-
stakes showdowns in the have shouldered the burden of
vestors seek higher yields. A1
weeks ahead between the top seven years of Washington
Yahoo’s CEO is expected two finishers and Florida Sen. deals run amok.”
to unveil a cost-cutting plan Marco Rubio, whose appeal as Mr. Trump kept his post-
that calls for closing several Ted Cruz, above left, won the GOP Iowa caucuses, ahead of Donald Trump, top right, and Marco a general-election candidate caucus remarks brief, thanking
units and slashing jobs. B1 Rubio, above right. Bernie Sanders, below right, and Hillary Clinton, below left, were in a dead heat. was good enough for a late his family and the state of
surge that nearly overtook Mr. Iowa before turning his atten-
Abbott and Stryker an-
Trump. tion to contests that follow.
nounced separate deals, as
“Tonight is a victory for the “We love New Hampshire, we
the medical-technology
grass roots,” said Mr. Cruz to love South Carolina,” he said.
firms seek to diversify. B1
a raucous victory party in Des The race in Iowa exposed
An ECB attempt to revive Moines. “Tonight is a victory Please see GOP page A4
the market in securitized
Clinton, Sanders
debt to boost eurozone
lending has fallen flat. C1
The Dow slipped 17.12 to
16449.18, weathering a tum-
ble in oil and fresh signs of
weakness in China. C4
U.S. consumers boosted
Locked in Tie
savings and slowed their DES MOINES, Iowa—Bat-
spending in December. A2 tling for the Democratic presi- By Laura Meckler,
U.S. factory activity
The Caucus Results dential nomination, Hillary Peter Nicholas and
shrank in January for the
As of 12:34 a.m. EST Tuesday, 96% of precincts reporting As of 12:34 a.m. EST Tuesday, 99% of precincts reporting
Clinton and Bernie Sanders Colleen McCain Nelson
fourth straight month. A2 DEMOCRATS REPUBLICANS were locked in razor-tight con-
test for Iowa’s delegates and precincts reporting, her advan-
Alcoa said it would expand Hillary Clinton 49.9% Ted Cruz 27.7% the momentum that comes tage was just 49.9% of the del-
its board by three members,
with a win in the nation’s first egates versus 49.6% for Mr.
gaining the support of ac- Bernie Sanders 49.6 Donald Trump 24.3
contest. Sanders, according to tabula-
tivist investor Elliott. B1
Martin O'Malley 0.6 Marco Rubio 23.1 Throughout the night, less tions from the Iowa Demo-
An activist fund has taken than a percentage point sepa- cratic Party.
a stake in CIT and wants Source: Associated Press Ben Carson 9.3 rated the pair, with Mrs. Clin- “Tonight while the results
the lender to break up. C1 THE WALL STREET JOURNAL. ton in the lead. With 96% of Please see RACE page A5
Voter Divisions Shake Both Front-Runners

Chinese officials accused
an online financing platform of
bilking investors of billions. C3
World-Wide BY GERALD F. SEIB lines that emerged from Perhaps most important, strong support among evan- Iowa, put away Mr. Cruz and
Iowa’s caucuses Monday the Iowa results suggest that gelical conservatives to a vic- pave the way for a big win in
Ted Cruz did what he had night. It’s early—ridiculously those fights will take place in tory. He had to do that to be a New Hampshire to start put-
Cruz won the Republi- to do. Donald Trump fell well early, actually—to draw too two parties deeply divided viable long-term candidate; if ting away the competition.
can caucuses in Iowa, out- short of the shock-and-awe many conclu- between insiders and outsid- he couldn’t charge ahead in a That didn’t happen. His brand
muscling Trump, while Ru- moment he hoped would set ANALYSIS sions. But the ers, between young and old, state where evangelical voters has been that he is a winner;
bio turned in a strong up a blitz through the rest of results sug- and between the most and traditionally have an outsize it remains to be seen what
third-place showing. Clin- the country. Marco Rubio gested that a fight still lies least wealthy. The situation is influence, his candidacy the Iowa outcome does to
ton and Sanders were in a bought himself a seat at the ahead on the Democratic side, volatile, and, as a conse- would have been seriously that brand.
dead heat in the Demo- big table. And Hillary Clinton and a potentially much bigger quence, unpredictable. compromised. On the other hand, Mr. Ru-
cratic contest. A1, A4-6 flirted all night with disaster. and longer battle is ahead on By late last night, it was Mr. Trump calculated that bio simply needed to do well
Those were the big story the Republican one. clear that Mr. Cruz rode his he could make a late surge in Please see DIVIDE page A4
The WHO said that a rise
in the number of birth de-
A Crisis-Era
fects and other conditions
Afghan Struggle to Stop Taliban Tests U.S. Policy
possibly linked to the Zika
virus constitutes a global Google
public-health emergency. A8
Mortgage
Afghan and coalition of-
ficials are pressing the U.S.
to give American forces a
Shares Makes a
larger role in operations
against the Taliban. A8 Soar on Comeback
ABDUL AZIZ SAFDARI/XINHUA/ZUMA PRESS
The U.N. envoy for Syria

called for immediate dis-
cussions about a cease-fire,
as peace talks began. A8
Earnings BY KIRSTEN GRIND
Wall Street wants to bring

BY ALISTAIR BARR back the “low-doc” loan.
A probe of the train crash These mortgages, which are
last year in Philadelphia that Google parent Alphabet Inc. given to borrowers that can’t
killed eight has narrowed reported strong growth and ris- fully document their income,
its focus to the engineer. A3 ing profitability at its main In- helped fuel a tidal wave of de-
ternet business, sparking an af- faults during the housing cri-
Myanmar’s parliament
ter-hours rally that propelled it sis and subsequently fell out
opened, with hundreds of
past Apple Inc. as the world’s TOUGH MISSION: Afghan soldiers took part in an operation recently in Helmand province, where the of favor.
lawmakers from Suu Kyi’s
most-valuable company. Taliban is trying to take control. Current rules of engagement limit the role of U.S. forces. A8 Now, big money managers
party taking their seats. A9
Alphabet, after a corporate including Neuberger Berman,
The death toll rose to 65 reorganization late last year, Pacific Investment Manage-
from Boko Haram’s attack on disclosed that revenue at ment Co. and an affiliate of
a refugee camp in Nigeria. A8 Google’s core Internet busi- Blackstone Group LP are lob-
The level of lead in Flint,
nesses, including search, You-
Tube and Android, rose 14% last
Dieters’ Affair With Cauliflower Comes to a Head bying lenders to make more of
these “Alt-A” loans—or even
Mich., tap water remains ex-
year, to $74.54 billion, from i i i buying loan-origination com-
tremely high in some places
$65.67 billion in 2014. Yearly panies to control more of the
despite recent declines. A3
operating income for these Anxiety grows as prices soar; breaking up with a low-carb ‘diva’ supply themselves—according
The first British woman businesses totaled $28 billion, to people familiar with the
to be convicted of joining Is- excluding stock-based compen- BY ROBIN SIDEL crazy for cauli- with delicacies matter.
lamic State was sentenced sation, up 23% from $22.69 bil- flower, which has like truffles than Years of easy-money poli-
to six years in prison. A9 lion a year earlier. Just weeks into her New blossomed as a the white, bland cies by central banks and ul-
As a result, the operating- Year’s diet, Amy Elliott popular substitute vegetable Mark tralow interest rates are push-
CONTENTS Heard on Street.... C8 profit margin of the core Google sprinted through her local for starchy foods. Twain once de- ing investors to seek out
Arts in Review...... D5 In the Markets....... C4
Business News... B1-6 Opinion............... A11-13
unit rose to 38%, from 35% a Sam’s Club in Metarie, La., But cold scribed as “noth- riskier assets with higher
CFO Journal............. B5 Sports.......................... D6 year earlier. making a beeline for the pro- weather in the ing but a cabbage yields, such as these Alt-A
Crossword................. B6 U.S. News............. A2-3 “The core business is stron- duce aisle. Her target: cauli- growing regions with a college ed- loans. Many of these loans
Global Finance........ C3 Weather..................... B6 ger than expected. It looks like flower, which was on sale for of California and Cauliflower ucation.” come with interest rates as
Health & Wellness.. D2-4 World News... A6,8-9
the margins materially ex- $2.99 a head. Arizona has Cauliflower is high as 8%, compared with an
panded, while revenue growth “I literally ran to put four caused a supply shortage in low in calories and packed average of about 3.8% for a
> accelerated,” said Mark Mah- heads in my basket,” she said, some places. Prices have with vitamin C, but those are typical 30-year fixed-rate
aney, an analyst at RBC Capital describing herself as “a kid in soared. Many shoppers can’t not its prized attributes mortgage. While such rela-
Markets. a candy store” during the find the vegetable at all, as among carb-counters: A me- tively high rates for Alt-A
Alphabet adopted the new shopping trip. they fruitlessly dig into super- dium-size head of cauliflower, loans are attractive to inves-
structure, and agreed to dis- Like many people who cut market bins. which can serve several peo- tors, they have proved prohib-
s Copyright 2016 Dow Jones &
Company. All Rights Reserved close additional financial details, carbohydrates in an effort to The result is a food frenzy ple, has fewer carbohydrates itive to many would-be bor-
Please see PROFIT page A10 shed weight, Ms. Elliott is that is more often associated Please see HEADS page A10 Please see LOANS page A10
A2 | Tuesday, February 2, 2016 * * THE WALL STREET JOURNAL.
U.S. NEWS
Consumer Spending Slows
BY ANNA LOUIE SUSSMAN goods, like clothing and food,
fell the same amount. Instead,
Consumers boosted savings much of Americans’ spending
and slowed their spending in is going to essentials such as
December, entering 2016 with housing, medical care and edu-
a cautious stance amid market cation.
turmoil and a cloudy economic Some economists expect
outlook. spending to rise as the labor
Incomes rose 0.3% during market firms and savings from
the month, the Commerce De- low gas prices begin to feel
RICK WLKING/REUTERS
partment said Monday, but permanent. “Income growth is
those extra earnings were still strong, employment
socked away or used to pay growth is still strong and con-
down debt. The personal sav- sumer confidence is still at
ing rate, or the share of in- healthy levels,” said Paul Ash-
come saved, rose to 5.5% from worth, an economist at Capital
5.3% a month earlier, match- Lower prices for staples like food curbed spending in December. Economics.
ing a three-year high. But Joshua Shapiro, an
Personal spending, which 0.5% in November and was flat cember due to warm weather economist at MFR Inc., said
measures consumption on ev- in October. Some of the spend- in much of the country. Americans’ inclination toward
erything from sodas to hair- ing weakness came from lower Spending on durable goods saving could reflect a populace
cuts, was flat in December prices for staples such as gaso- —items designed to last at “increasingly convinced that
Black South Sea Special edition Set: from a month earlier. Spending line and food, while utility bills least three years—fell 0.9%. the political and economic sys-
climbed an upwardly revised were unseasonably low in De- Spending on nondurable tems of the nation are broken.”
c u lt u r e d p e a r l n e c k l a c e a n d S t u d e a r r i n g S .
lations governing marketing are

Manufacturing Slide U.S. among the things that “make
this country great” and should
Continued in January Watch be followed. “I was stupid for

not doing so.”
—Associated Press
BY KATE DAVIDSON ITG Investment Research.
A gauge of new orders rose WEST VIRGINIA
U.S. factory activity shrank to its highest level since Au-
in January for the fourth gust, production expanded and INDIANA
First Sentencing in
straight month, though a jump
in new orders offered hope
the backlog of orders started
to ease.
Man Gets 27 Months Chemical-Spill Case
A former environmental con-
that the manufacturing sector That improvement offers For Sending Spam sultant at a chemical distributor
has hit bottom. “some hope that things will An Indiana man who helped was sentenced to three years’
The Institute for Supply move in the right direction,” send millions of illegal spam probation and fined $10,000
Management said Monday its said Bradley Holcomb, chair- messages to U.S. and interna- Monday for a 2014 chemical spill
gauge of manufacturing activ- man of the ISM’s manufactur- tional cellphones and computers that fouled the drinking water of
ity rose to 48.2 last month ing business survey commit- has been sentenced to 27 300,000 West Virginians.
from 48 in December. A read- tee. Still, “we’re very much months in federal prison by a Robert Reynolds was the first
ing below 50 indicates the sec- continuing in slow mode, federal judge in Pennsylvania. of six former Freedom Industries
tor is contracting. which we experienced all last Phillip Fleitz, 31 years old, of officials to be sentenced on pol-
Underlying details in the re- year.” Indianapolis, was handcuffed and lution charges in federal court in
port suggested factories may The factory sector has ordered Monday to begin serv- Charleston, media outlets re-
be stabilizing despite stiff weakened over the past year, ing the sentence. ported.
headwinds from overseas and weighed down by weak global His two co-defendants had Mr. Reynolds, one of the peo-
retrenchment in the energy demand and low oil prices. A received probation for their roles, ple responsible for environmen-
sector. stronger dollar has also made and defense attorney Stephen tal compliance at Freedom, had
“The contraction in manu- American exports more expen- Capone argued Mr. Fleitz should faced up to a year in prison.
facturing is ongoing but no sive for international custom- receive a similar sentence. But The spill of thousands of gal-
longer getting worse,” said ers, while imports are cheaper the judge agreed with U.S. At- lons of the coal-cleaning agent
Steve Blitz, chief economist at for U.S. consumers. Monday’s torney Jimmy Kitchen, who said MCHM into the Elk River in Jan-
report showed that exports that “Fleitz was the architect. It uary 2014 got into a water com-
THE WALL STREET JOURNAL slumped again in January. was his idea. He was the first to pany’s intake and prompted offi-
(USPS 664-880) Manufacturing activity may do it” and enlisted the others. cials to tell residents in nine
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(Western Edition ISSN 0193-2241) to be. The sector accounts for serious scheme,” U.S. District water for as long as 10 days.
Editorial and publication headquarters:
1211 Avenue of the Americas, roughly 12% of the country’s Judge Maurice Cohill Jr. said in The other ex-officials are set
New York, N.Y. 10036 economic output, a much imposing the sentence. to be sentenced this week and
Published daily except Sundays and general
legal holidays. Periodicals postage paid at New
smaller driver than finance or “I just want to say I’m sorry,” later this month.
York, N.Y., and other mailing offices. real estate. Mr. Fleitz said, adding that regu- —Associated Press
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Letters to the Editor: cle and an accompanying terest Index was down 25% Monday’s Wealth Manage-
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NEW TIME, NEW CODES. graphic Saturday about moves over the past 12 months and ment report showed median
NEED ASSISTANCE WITH by central banks to boost 12% this year, including divi- salaries for early and midca-
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U.S. NEWS
Train-Crash Probe Narrows

Focus is on engineer
after technical issues
ruled out; final report
expected this spring
BY ANDREW TANGEL
AND TED MANN
Investigators probing the

deadly Amtrak derailment in
JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGES
Philadelphia last May have

ruled out issues with the loco-
motive, track or train signals
as causes, an official with the
National Transportation Safety
Board said Monday.
That puts the focus on the
train’s engineer, Brandon Bos-
tian, according to safety ex-
perts. Mr. Bostian told investi-
gators last fall of having gaps
in his recollection as the train
approached the curve where it
crashed.
The NTSB released a trove The Amtrak train crashed in Philadelphia last May, killing eight people and injuring more than 200.
of documents related to the
probe Monday but didn’t iden- The NTSB has said tests an inward-facing camera in NTSB has said the train was TIFFANY VICTORIA®
tify a probable cause or offer found no alcohol or drugs in the locomotive’s cab, as well traveling at 106 mph.
analysis. A final report is ex- Mr. Bostian’s system. Investi- as Mr. Bostian’s memory gaps. “About the same time I put
pected this spring. gators have said they found no The NTSB documents the train into emergency, I re-
The derailment appears to evidence indicating he was us- chronicle train-radio traffic in call hoping that the train
be the result of the engineer ing his cellphone, which is the minutes before the crash, would not tip completely
losing “situational awareness” prohibited under federal including word that rocks or over,” Mr. Bostian said.
and prematurely accelerating safety regulations, at the time other objects had shattered The engineer said he was
800 843 3269 | TIFFANY.COM
before the tight curve, said a of the crash. the windshield of a commuter disoriented in the aftermath of
person familiar with the mat- An Amtrak spokesman said train on an adjacent track. the derailment, and didn’t im-
ter. Steven Ditmeyer, a former the railroad is fully cooperat- Mr. Bostian recalled being mediately recognize where he
federal railroad official who is ing and said its goal was to worried, citing a colleague’s was. He remembers hearing
now a consultant, said the en- prevent such a tragedy from experience with glass injuries passengers’ screams.
gineer apparently “lost track happening again. in another accident. “I was a Mr. Bostian was praised by
of where he was along the rail Eight passengers were little bit concerned for my train crew members inter- B E L M O N D E L E N C A N TO,
line for some reason.” killed and more than 200 oth- safety,” he is quoted as saying. viewed in the probe. One de- S A N TA B A R B A R A
NTSB investigators twice ers, including crew members, Mr. Bostian said he recalled scribed him as “very knowl-
interviewed Mr. Bostian, were injured when Amtrak’s applying the train’s emergency edgeable of the territory.”
whom a safety-board official Northeast Regional Train 188 brakes as he felt one side of “I’ve never seen him do IT’S NOT SO FAR,
described as “extremely coop- derailed at Frankford Junction the locomotive lift up as it anything that he wasn’t sup-
erative.”
An attorney for Mr. Bostian
in Philadelphia on May 12.
The NTSB’s probe has been
went through the Frankford
Junction curve, which had a
posed to do,” another crew
member said. “He was a very
AND YET
declined to comment. hampered by the absence of speed limit of 50 mph. The good engineer.”
JUST FAR ENOUGH,
ALL AT
Lead Declines, but Remains High THE SAME TIME.
BY KRIS MAHER also isn’t clear what proce-
KIMBERLY P. MITCHELL/DETROIT FREE PRESS/ASSOCIATED PRESS
dures residents followed when

The level of lead in the tap collecting samples, which
water of Flint, Mich., remains could alter the results if, for
extremely high in some places instance, they flushed the taps
despite declines in recent before filling sample bottles.
weeks, according to the most On Friday, federal officials
recent test results made public said pregnant mothers and
by the Michigan Department of children under 6 shouldn’t
Environmental Quality. drink water that hasn’t been
The results came more than tested because filters might
a month after the city started not provide adequate protec-
adding a chemical to stop lead tion at locations testing above
from leaching from pipes into 150 parts per billion. That level
drinking water in a bid to re- is the maximum for which fil-
verse the effects of a disas- ters have been approved.
trous switch to the Flint River More than 30 test results
as a water source in 2014. A Flint, Mich., resident shows a corroded pipe from her house. above 150 parts per billion
“It’s decreasing very came in January. Seven loca-
slowly,” said Susan Masten, a systems must test at or below ples had lead levels above 15 tions the same month had lev-
civil and environmental engi- that level to avoid taking cer- parts per billion, which fell to els above 1,000 parts per bil-
neering professor at Michigan tain steps under federal law, 7.2% in November, 6.9% in De- lion.
State University. “I don’t think including removing lead ser- cember and 5.9% in January, “It was really disturbing to
we’re out of the woods.” vice lines. she said. She cautioned that see some levels still in the
If the current rate of decline Ms. Masten’s estimate was decreases might not continue thousands of parts per billion,”
holds steady, Ms. Masten esti- based on the roughly 4,350 re- at a steady rate. said Mona Hanna-Attisha, a
mated it could take 15 months sults available this past week- The results don’t represent Flint pediatrician who initially HOTELS | TRAINS | RIVER CRUISES | JOURNEYS
for lead levels in drinking wa- end for tests made as far back a scientific sampling. They are raised alarms about the in- 8 0 0 - 2 3 7-1 2 3 6 O R C O N TAC T YO U R T R AV E L C O N S U LTA N T
ter samples in Flint to fall beas September. In the second from residents who submitted creased blood lead levels in BELMOND.COM
low 15 parts per billion. Water half of October, 7.7% of sam- water samples to the state. It children last year.
© 201 6 B elmond M a nagement Ltd . B elmond is a registered tradema rk .
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A4 | Tuesday, February 2, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL.
POLITICS COUNTS
How caucusgoers voted Where candidates won Dates to watch
Entrance poll results as of 11:24 p.m. EST Monday Margin of victory by county compared with select demographics Upcoming caucuses/primaries
DEMOCRATIC REPUBLICAN Feb. 9 New Hampshire

CAUCUSES CAUCUSES Pct. 15%
evangelical Feb. 20 Nevada (D);
South Carolina (R)
Gender Clinton Sanders Gender Trump Cruz Carson Rubio 10%
Men 44% 50% Men 25 % 29% 8% 25% Feb. 23 Nevada (R)
Women 53 42 Women 24 27 11 21 Sioux Waterloo
5% Feb. 27 South Carolina (D)
City
Age Age March 1 Alabama; Alaska (R);
17–29 14 84 17–29 19 27 10 24 Des Arkansas; Colorado;
30–44 37 58 30–44 22 31 6 22 Moines Iowa City Georgia;
45–64 58 35 45–64 25 28 10 24 Council Massachusetts;
65 and older 69 26 65 and older 26 27 10 22 Bluffs Ted Minnesota; Oklahoma;
Cruz 250 Tennessee; Texas;
Education Education Margin 500
College grad 51 44 College grad 21 25 9 28 Vermont; Virginia;
No degree 48 47 No degree 28 31 10 17 Wyoming (R)
March 5 Kansas; Kentucky (R);
Decision made Decision made Pct. with
Last few days 45 44 Last few days 14 25 10 30 bachelor’s 25% Louisiana; Maine (R);
degree or Nebraska (D)
Before that 51 46 Before that 30 30 9 19
higher 20% March 6 Maine (D)
Race Evangelical
White 49 46 Yes 22 34 12 21 Sioux Waterloo March 8 Hawaii (R); Idaho (R);
City 15% Michigan; Mississippi
Nonwhite 58 34 No 29 18 5 26
March 12 Washington, D.C. (R)
Ideology Ideology
Liberal 46 50 Conservative 23 31 10 22 Des Iowa City March 15 Florida; Illinois;
Mod./conserv. 57 37 Mod./liberal 33 9 7 27 Council Moines Missouri; North
Bluffs
Donald Carolina; Ohio
First caucus First caucus Trump 250
Yes 37 59 Yes 30 23 9 22 Margin 500 March 22 Arizona; Idaho (D);
No 59 35 No 19 32 9 24 Utah
Note: Colorado and Wyoming GOP won’t hold
Note: Entrance polls conducted at 40 caucus locations among 1,660 Democratic and 1,794 Republican caucus participants. Note: Results as of 12:00 a.m. EST Tuesday with 98% of precincts reporting. presidential preference votes.
Democratic results are based on caucusgoers’ initial preference. Results reflect preliminary weightings. Sources: Association of Religion Data Archives (evangelical); U.S. Census Bureau (age); Sources: the parties; Associated Press
Source: National Election Pool entrance polls conducted by Edison Research Associated Press (vote) THE WALL STREET JOURNAL.
DIVIDE about their decision decided

to choose a safe bet rather
than make some kind of
statement.
Continued from Page One And Mr. Cruz? He fell into
enough to establish himself a familiar Republican lane,
as the third player in a three- winning among evangelicals
handed game of high-stakes and the party’s most conser-
poker going forward. He did vative voters. Those are vot-
more than that—much more, ers not comfortable with Mr.
in fact. He was the one can- Trump and not convinced of
didate who significantly out- Mr. Rubio.
performed expectations, and Among Democrats, the
that gives him the biggest splits are even more vivid.
dose of rocket fuel out of The have a giant age gap: Mr.
Iowa. Sanders won by a huge mar-
On the Democratic side, gin among young voters, Mrs.
Mrs. Clinton was clinging to Clinton by a wide margin
a narrow lead over Sen. Ber- among the oldest voters.
nie Sanders through the They have a significant gen-
PAUL SANCYA/ASSOCIATED PRESS
night. In mathematical terms, der gap: Mrs. Clinton won by

they had fought nearly to a a hefty 10 percentage points
draw, and that carries Mr. among women, the entrance
Sanders to New Hampshire’s polls showed, while Mr.
primary strong enough to be Sanders won among men by
the favorite there, next door seven percentage points.
to his home state of Vermont. Mr. Sanders won convinc-
But his road is much ingly among the lowest-in-
rougher after that, as the A strong showing for Sen. Marco Rubio, above with his family in Des Moines on Monday, will likely boost his campaign going forward. come Democratic voters. Mrs.
race moves south and west to Clinton won convincingly
Clinton strongholds. In that On the GOP side, Mr. among Republicans with a emerges looking an awful lot bio led Mr. Trump 44% to among the highest-income
sense, the key for Mrs. Clin- Trump has charged in and ei- high school education or less, like the man mainstream 24%. Democratic voters. He won
ton was simply to avoid em- ther pulled in alongside, or lost among college graduates party voters can embrace. His He prevailed among voters easily among very liberal vot-
barrassment in Iowa. consolidated behind him, the and those with post-graduate support was fairly even who wanted experience in ers. She won easily among
So nothing is settled, and votes of nontraditional Re- degrees. He won in rural ar- across age and demographic politics rather than some- moderates.
nothing was destined to be. publicans: less-educated, eas, not in cities and suburbs. groups, but it bulged among body from outside the estab- Caucuses and primaries
Yet Iowa’s importance may lower-income and deeply un- His widest margin of victory Republicans whose top prior- lishment. And he won among bring out the divides, of
lie elsewhere, for the results happy with the party’s lead- was among those who wanted ity was simply finding a can- those who decided whom to course, but these are surpris-
tell us much about two par- ers. somebody from outside the didate who could win the support in the last few ing ones in an unconven-
ties that are in significant Indeed, entrance polls establishment. general election in November. days—suggesting, at least, tional year. And they may not
flux. showed that Mr. Trump won Meanwhile, Mr. Rubio Among those voters, Mr. Ru- that Republicans agonizing close anytime soon.
GOP Trump Lost

Republicans may have to about a possible presidential
wait until the South Carolina bid, trailing by wide margins
primary on Feb. 20 or possibly both former Florida Gov. Jeb Support as
Super Tuesday on March 1 to Bush and Wisconsin Gov. Scott
Continued from Page One get a clearer sense of which of Walker, who dropped out of Caucus Neared
cracks in Mr. Trump’s front- the candidates have the stron- the race in September.
runner status. After a six- gest claim on the nomination. Mr. Trump drew his highest What went wrong for Don-
month ride atop the polls, his Anger and frustration were levels of support from caucus- ald Trump?
stardom wasn’t enough to defining features of the GOP goers who didn’t attend col- The Republican presidential
overcome Mr. Cruz’s superior electorate. Half described lege, were more moderate and, candidate, who focused on big
turnout machine and the themselves as “dissatisfied, first and foremost, listed im- crowds over traditional close-
Texan’s appeal with the but not angry” about the way migration as their top issue, up meetings with Iowa voters,
party’s most conservative vot- the federal government is the entrance poll showed. He appeared headed for a second-
ers. working. also drew higher support from place finish to Texas Sen. Ted
With 99% of the precincts A somewhat smaller share caucusgoers eager for an out- Cruz and barely ahead of Flor-
reporting, Mr. Cruz led the said they were outright angry. sider. ida Sen. Marco Rubio.
GOP field as the top pick of And half of those Republicans First-time caucusgoer Ra- It appears that the New
JIM BOURG/REUTERS
27.7% of Republican caucusgo- who participated said they chael Schwartz, 28, the York billionaire’s decision to
ers, followed by Mr. Trump at wanted the next president to mother of an 18-month-old skip a Republican candidate
24.3% and Mr. Rubio at 23.1%. be from outside the political daughter, said she likes Mr. debate last week in Des
Mr. Cruz’s victory was a re- establishment. Trump because he is outspo- Moines may have hurt him late
markable turnaround for a Big crowds flocked to cau- ken and would let people make in the Iowa race. As they en-
candidate who entered the GOP candidate Donald Trump attended a Republican caucus on cus sites around the state, and more decisions about their tered the caucuses Monday,
race as a little-known long Monday at St. Francis of Assisi church in West Des Moines, Iowa. early surveys suggested the lives, such as whether to vac- voters said they favored Mr.
shot, his rise a reflection of share of first-time caucusgo- cinate their children. “I never Rubio by 27%, compared with
how much the GOP is now give more centrist, business- other Republicans with more ers had ticked up from 2012. paid attention to the future, 21% for Mr. Cruz and 16% for
moved by the tea party and friendly voters a clearer alter- typical resumes. Total GOP turnout topped and now it’s important to me,” Mr. Trump, according to en-
evangelical voters who have native to Messrs. Cruz and The Iowa results cement 184,000 voters, shattering the she said. “I believe he’s for the trance surveys. Those who de-
flocked to him. Trump. the top tier of the Republican previous record of roughly people, and we will truly have cided in the last few days
The Texan generated his “For months, they told us field, and most of the contend- 121,000 caucusgoers. A GOP a voice.” broke away even further from
highest levels of support in we had no chance,” Mr. Rubio ers are expected to continue precinct in Van Meter ran out Mr. Trump’s often-incendi- Mr. Trump, who got only 13%
Iowa from the most conserva- told hundreds of cheering sup- on to New Hampshire. But for- of ballots and forms to regis- ary campaign rhetoric has of that vote.
tive caucusgoers, according to porters Monday night. “To- mer Arkansas Gov. Mike Huck- ter new voters. “We’re way turned off some would-be sup- Those late-deciding voters
an entrance poll conducted for night, here in Iowa, the people abee was a casualty of the past capacity,” said Bev porters who otherwise appre- made up 35% of Mon-
news organizations. He also of this great state sent a very Iowa caucuses, announcing on McLinden, a local GOP official. ciate his brash style. day’s turnout. Mr. Trump was
performed well among evan- clear message.” Twitter that he was withdraw- There were pockets of the Valerie Martin, 36, a nurse most popular with those who
gelicals and Republicans who Mr. Rubio outpaced his ri- ing from the race. state where Mr. Trump didn’t midwife who attended the decided more than one month
said he shared their values. vals by big margins on the Mr. Trump will get a chance register any support. At a cau- Cruz event in Jefferson, was ago, suggesting that he failed
Mr. Rubio’s late surge will question of which candidate to re-establish himself in cus meeting in Pleasant Hill, leaning toward Mr. Trump be- to grow his core support in the
increase interest in his candi- Republicans think can win in states where polls show him none of the hundreds of Re- fore settling on his main rival. homestretch.
dacy and ratchet up the pres- November, the entrance poll up by as much as 20 percent- publicans in attendance rose “I don’t know how he will be Mr. Trump said he refused
sure on less-viable Republi- showed. He also built a big age points—although he had to speak on his behalf. “They taken by other countries,” she to participate in the Fox News
cans to drop out of the race to edge among caucusgoers who led in most Iowa polls before said he had no ground game,” said. debate because he didn't trust
want the next president to be the caucuses began. said Mary Dorin, a Cruz sup- Viability was a big lure on anchor Megyn Kelly to treat
experienced. Those will be In addition, many back-of- porter. Monday as Republicans who him fairly. He also blamed a
strong selling points in states the-pack contenders ended At a caucus in Cedar Rap- planned to back other candi- glib press release the network
Crafted in gold & platinum
where the electorate is less 2015 with enough money to fi- ids, Mr. Cruz made his own dates decided to support one sent out in response to his
Happy
Valentine’s! conservative than Iowa. nance bare-bones campaigns case to the assembled voters, of the top-three. boycott threat.
Order by
2/10! Messrs. Cruz and Trump through the first four nomi- telling them he has the money Landon Myer, a quarry Mr. Trump also failed to
had traded increasingly nasty nating states in February, new to compete late into the nomi- worker from Claire, Iowa was capture a majority of younger
barbs in the run-up to Iowa, campaign-finance reports sug- nating calendar by citing his leaning toward Mr. Cruz, after voters. He won 20% of the 17
setting up for a more bitter gest. conservatism and his ability to considering Kentucky Sen. to 24-year-olds, while Messrs.
battle to follow. Mr. Trump “These first four races are win a general election. Rand Paul. “Cruz is the only Rubio and Cruz each took 25%
has picked fights with rivals, going to set the playoffs,” said Mr. Trump’s improbable one that’s going to stop of that age group. And he
major media organizations Stuart Stevens, the chief strat- rise already has turned the Trump,” said Mr. Myer. “I feel didn’t eat deeply into the sup-
and party leaders in Washing- egist on Mitt Romney’s 2012 race on its ear. The billionaire a vote for Rand Paul is a port for the winning candidate,
Immortalize Your Anniversary
ton, frequent skirmishes that presidential bid. “To advance, barely registered in public- wasted vote.” Sen. Ted Cruz, among Iowa’s
in Roman Numerals! have allowed him to dominate you need to do well in these opinion surveys last spring —Ben Kesling very conservative voters.
JOHN-CHRISTIAN.COM 888.646.6466 news coverage and drown out first four.” when he started making noise contributed to this article. —Beth Reinhard
THE WALL STREET JOURNAL. * * * * * * Tuesday, February 2, 2016 | A5
Large Turnout but Deep Fissures for Voters

In GOP, conservatives gesting that Mr. Cruz had also
driven new voters to the cau-
coalesce around Cruz; cuses.
generational split is While Mr. Cruz posted out-
size support among voters
seen for Democrats who said they wanted a candi-
date who shared their values,
BY AARON ZITNER the largest chunk of the elec-
torate, Mr. Trump won an
A surge of evangelical overwhelming 67% of the
Christians, along with support much smaller group that
from the Republican Party’s wanted a candidate who “tells
most conservative voters, it like it is.”
combined to give Sen. Ted Democrats who attended
Cruz his victory in Iowa’s GOP their party’s caucuses broke
caucuses. sharply along divisions of age,
Democrats were locked in a ideology and marital status,
close contest, with Sen. Bernie with Mr. Sanders garnering
Sanders drawing overwhelm- overwhelming margins among
ing support from “very liberal’’ young voters and those who
and younger voters, and for- describe themselves as “very
mer Secretary of State Hillary liberal.’’
Clinton winning large margins Mr. Sanders’s pull among
among older and less-liberal younger Democrats was sub-
voters. stantial, the entrance surveys
Mr. Cruz built his campaign showed. He drew 84% of vot-
on opposition to abortion, gay ers under age 30, and he won
DANIEL ACKER/BLOOMBERG NEWS

marriage and compromise by nearly 60% of those age 30 to
Republican leaders in Con- 44.
gress. That message produced Mrs. Clinton, by contrast,
a distinct uptick in evangeli- won nearly 70% of seniors, as
cals and other social conserva- well as a majority of the next-
tives attending Monday’s cau- oldest age group, voters age
cuses. 50-64.
Evangelical Christians ac- Nearly six in 10 voters who
counted for 64% of GOP cau- called themselves “very lib-
cusgoers, up from 57% in the Republican voters sing the national anthem at a caucus in Adel, Iowa, on Monday. Sen. Ted Cruz won among the state’s Republicans. eral’’ backed Mr. Sanders,
2012 caucuses, according to while nearly six in 10 self-de-
surveys conducted as Republi- most conservative voters, car- and other states soon to hold more than 40% of that group, Republicans attending their scribed “moderate’’ voters
cans entered meeting sites rying 43% of them. Mr. Trump, nominating contests will be while Messrs. Cruz and Trump first caucuses played a big role backed Mrs. Clinton. By a nar-
across the state. Mr. Cruz won his next-closest rival, took only closely watched for similar won one-quarter or less. in the results, accounting for rower margin, Mrs. Clinton
a third of them, beating his top 21%. signs of slumping support for In a very crowded Republi- 46% of caucusgoers, a larger also carried “somewhat lib-
rivals, fellow Sen. Marco Rubio Entrance polls suggested Mr. Trump. can field, the contingent of share than the 38% in 2012. eral’’ voters, who make up the
and businessman Donald that Mr. Trump made a signifi- By contrast, Mr. Rubio pro- big-name establishment candi- But the uptick in newcomers party’s largest ideological
Trump. cant mistake last week by skip- pelled himself into the top dates—former Florida Gov. Jeb did not lead to the clear win group.
Mr. Cruz won an even larger ping a televised Republican de- ranks of the GOP contest in Bush, New Jersey Gov. Chris for Mr. Trump that many had Supporters of Mrs. Clinton
share who said they wanted a bate days before the caucuses, part by winning Republicans Christie and Ohio Gov. John predicted. were drawn to her experience
nominee who “shares my val- saying he was being treated who decided which candidate Kasich—drew minuscule sup- Total GOP turnout topped and the belief that she could
ues.’’ Some 40% of GOP cau- unfairly by debate sponsor Fox to back in the past few days. port. 184,000 voters, shattering the beat Republicans in November.
cus-goers said that was the News. Mr. Trump won just 14% Mr. Rubio, who has tried to Mr. Trump’s was strongest previous record of roughly She garnered three-quarters or
most important quality in a support among caucusgoers maintain broad appeal among among non-evangelicals and 121,000 caucusgoers. more support among Demo-
nominee, and Mr. Cruz carried who chose their candidate in the GOP’s various voting blocs, people who lack college de- While Mr. Trump won the crats who said those were the
37% of them, entrance polls the past week, a signal that drew a large share of Republi- grees, reflecting a campaign largest share of first-time at- top attributes they sought in a
showed. Mr. Trump’s shine in the state cans whose top priority was a built largely on speaking to the tendees, surveys showed that nominee.
And Mr. Cruz won a sub- had likely faded in recent days. nominee who could win the economic anxiety of middle- 61% of the newcomers were —Paul Overberg
stantial share of the party’s Polling in New Hampshire general election. He carried and lower-income Republicans. evangelical Christians, sug- contributed to this article.
H H H H H
CAMPAIGN
RACE
WIRE Continued from Page One
are still not known it looks like
H H H H H we are in a virtual tie,” Mr
Sanders told cheering support-
ers. He added, “I think the peo-
EVAN VUCCI/ASSOCIATED PRESS (TOP); WIN MCNAMEE/GETTY IMAGES
VIRGINIA ple of Iowa have sent a very

profound message.” His cheer-
Justices Rebuff GOP ing supporters replied, “Feel
Over Voting Map the Bern!”
The Supreme Court on Mon- Mrs. Clinton, addressing her
day allowed Virginia to imple- own supporters in Des Moines,
ment a new congressional map said, “It is rare that we have the
that could shift one U.S. House opportunity we do now: to have
seat to a Democratic challenger a real contest of ideas, to really
from a Republican incumbent in think hard about what the Dem-
the 2016 elections. ocratic Party stands for.” She
The high court declined a re- added that she was “breathing
quest by current and former a big sigh of relief,” though she
GOP lawmakers who wanted to didn’t declare victory.
block new districts imposed by a The results amounted to a
federal-court panel. That court virtual tie, and mean that Iowa
found the old districts, drawn in will send roughly an equal num-
2012 by Virginia Republicans, vi- ber of delegates for each candi-
olated the Voting Rights Act by date to the party’s national con- Democratic caucusgoers showed support in Des Moines Monday, attending events for Sen. Bernie Sanders, above, and Hillary Clinton below.
discriminating against African- vention this summer, where the
Americans. The plan packed too nominee will be officially se- Moines, Carol Ferrell, 59, de- care, free tuition at public col-
many blacks into one district, re- lected. They also offer a dose of cided at the last minute to sup- leges and more generous Social
ducing their political strength in good news for both campaigns. port Mr. Sanders. “As much as I Security benefits. At a rally Sat-
adjoining districts, the panel said. Mr. Sanders can say that he admire Hillary Clinton, she’s got urday, as Mr. Sanders ticked off
Monday’s order determined battled the prohibitive front- a lot of baggage,” she said. society’s problems, the crowd
which map should be used for runner to a tie, while Mrs. Clin- Mrs. Clinton’s showing was spontaneously began chanting,
the 2016 House elections: the ton avoids what would have an improvement over her third- “Enough is enough!”
districts drawn by Republicans or been an embarrassing defeat. place finish in Iowa eight years “He has an extraordinary
the map imposed by the panel. The upstart Vermont sena- ago, which made clear that her amount of conviction,” said
The new map could help tor, whose entry to the Demo- once-inevitable campaign faced Zachery Love, a 19-year-old
Democrats by adding Demo- cratic presidential race barely a serious threat from another University of Iowa student, one
cratic-leaning black voters to the registered, has both new money challenger, then-Sen. Barack of more than 4,000 people to
Fourth Congressional District, and new momentum. In Janu- Obama. turn out for a Sanders concert
now a safe GOP seat, while leav- ary, Mr. Sanders raised $20 mil- The Clinton campaign said it and rally Saturday night.
ing enough Democrats in the lion, and with most of his dona- was well positioned for a long Mrs. Clinton, for her part,
majority black Third District to tions well below the legal limit, slog, and Mr. Sanders vowed to highlighted her perseverance
retain control. That could narrow he can go back to his donors for press on no matter the results. and qualifications along with
the GOP’s 8-3 advantage in Vir- more. Both candidates were travel- what she describes as a prag-
ginia’s House delegation. “The thing that generally ing overnight to New Hamp- matic, effective approach to
—Jess Bravin ends campaigns is lack of re- shire to begin a weeklong sprint governing. She also portrayed
sources,” said David Axelrod, to the Granite state primary, always won New Hampshire in small discussions and big ral- herself as the most electable
REPUBLICAN PRIMARY who helped steer President Ba- where Mr. Sanders is 18 points recent years. lies, the two leading candidates candidate whose nomination is
rack Obama’s two victories. ahead of Mrs. Clinton, accord- But Mr. Mook said he feels engaged in a vigorous and necessary to block Republican
Bush Super PAC’s “This does not seem to be a ing to a Real Clear Politics aver- optimistic looking ahead. He sometimes sharp debate as Mrs. ideas.
Fundraising Dives problem for the Sanders cam- age of polls. pointed to Mrs. Clinton’s strong Clinton positioned herself as a Her policy platform includes
Fundraising by the super PAC paign, which continues to do Mrs. Clinton, a former sena- position in Nevada and South pragmatic, can-do fighter, while a new program for debt-free tu-
backing Republican presidential prodigious grass-roots fundrais- tor and secretary of state, is Carolina and in the swath of Mr. Sanders appealed to the ition and an increase in solar
contender Jeb Bush nosedived in ing.” ahead in the states that come Southern states that will award party’s most deeply held ideals. panels, as well as change in
the second half of 2015 along Earlier, in a sweltering after that, and nationally. But a quarter of the delegates at She battled reports that clas- health care and Social Security
with his poll numbers, with only school lunchroom in Windsor the Sanders campaign believes stake on March 1. These states, sified material was sent via her that are more modest than her
$15.1 million coming in after the Heights, a suburb of Des a win in New Hampshire on top where the Clinton campaign be- private email system. He bat- rival’s.
group’s record-breaking haul of Moines, Clinton backers wooed of a strong showing in Iowa gan organizing last summer, tled suggestions that he Her supporters, including
$103 million in the first six their neighbors with offers of would compel voters to give his have more nonwhite voters couldn’t win a general election, many older women who grew
months of the year. bottled water. A few miles campaign a second look. than the states in the first two and that he has no real plan to up in a time of outright sex dis-
That means the average away, in Clive, Sanders support- “We’ve done what we came contests. Mrs. Clinton polls implement his agenda. crimination, say they are in-
raised per day by Right to Rise ers ran out of seats so stood to do, which is establish him as strongly among these voters Still, he inspired voters who spired by the idea of electing
USA plunged to less than against the wall, beneath Sand- a serious candidate,” Sanders and would continue to empha- said they were attracted to his the first female president. And
$82,300 from $585,000, accord- ers signs reading, “A Future to strategist Tad Devine said Mon- size matters important to Afri- rejection of big-money politics backers often say she is the
ing to reports filed with the Fed- Believe In.” day, before the caucuses. can-Americans, including her and promise of a “political rev- most qualified candidate for the
eral Election Commission. “She has the experience, she The Clinton campaign was association with Mr. Obama, olution.” He drew crowds to presidency they have ever en-
The super PAC reported hold- has the knowledge, she is quali- bracing for a loss in New Hamp- gun restrictions and the water arenas and a loyal online fol- countered.
ing $58 million as of the end of fied, she will get things done,” shire, the state that rescued Bill crisis in Flint, Mich. lowing, where backers taunted On Monday night, Deidre
December, a potential lifeline to said Vicky Daniel, who caucused Clinton’s 1992 campaign and re- Former Maryland Gov. Mar- detractors to “feel the Bern.” Fudge arrived early to her West
Mr. Bush if he falters in the earli- for Mrs. Clinton in Windsor vived Mrs. Clinton’s 2008 ef- tin O’Malley, who has lagged far In speeches that remained Des Moines caucus to register
est nominating contests. The Heights. She flew back to Iowa fort. behind his competitors and had almost identical across months support for Mrs. Clinton. “I’m
group spent millions of dollars from her winter home in Flor- “There are a lot of head- dwindling resources, suspended of campaigning, Mr. Sanders just a little worried about Ber-
last month on television ads and ida to participate, and when winds in New Hampshire,” Clin- his campaign for the Demo- promised to break up large nie and his naivete,” Ms. Fudge
mailers, but its expenses for the Mrs. Clinton was announced the ton campaign manager Robby cratic nomination after earning banks, said Wall Street is built said. “I appreciate her experi-
month won’t be fully disclosed winner in her caucus, “I said, Mook said, noting that candi- scant support in Iowa. on fraud and unapologetically ence and level-headedness
until late February. `yes, yes, yes.’” dates from neighboring states, Over dozens of trips to Iowa vowed to impose higher taxes about what can actually get
—Rebecca Ballhaus But in Clive, west of Des like Mr. Sanders, have almost high schools and diners, in to provide universal health done.”
A6 | Tuesday, February 2, 2016 * ***** THE WALL STREET JOURNAL.
RubioMaySeeBoostFromEstablishment
Strong showing in For weeks, Mr. Rubio has tan area. Yet most of Mr. Rubio’s
complained about tens of mil- The Conservative Solutions Fundraising Machines 2016 campaign money, 75%,
Iowa caucus follows lions of dollars in attacks by PAC supporting Mr. Rubio al- Hillary Clinton raised the most money during the last quarter of 2015 comes from donations of more
move to senator by the “Republican establish- most matched the super PAC with $37.4 million. Bernie Sanders was close with $33.6 million. than $200. In contrast, Ver-
ment” and vowed to battle behind Mr. Bush by taking in mont Sen. Bernie Sanders,
big GOP donors “Washington special interests” $14.4 million in the last six Money raised by the candidate Outside money who has posed an upstart
in his presidential campaign. months of 2015, for a yearly In 4th quarter Total Super PACs affiliated with the candidates
challenge to Mrs. Clinton,
BY BETH REINHARD While he has been the target total of $30 million. And, in a raised 74% of his 2015 cam-
AND REBECCA BALLHAUS of a blitz of attack ads, mostly sign of how the supersize do- $0 $50m $100m $150m paign cash from donations of
from the super PAC backing a nor class is starting to favor Democrats $200 or less.
Florida Sen. Marco Rubio’s rival, former Florida Gov. Jeb Mr. Rubio over Mr. Bush, the Hillary Clinton $164 As Mr. Rubio rose to third
strong showing in the Iowa Bush, new fundraising reports super PAC received $5 million Bernie Sanders $75 million place in the GOP polls, behind
caucus is expected to consoli- show special interests and from two Wall Street billion- Martin O’Malley $6 celebrity businessman Donald
date backing from the estab- members of the GOP establish- aires, Paul Singer and Ken Trump and Texas Sen. Ted
lishment wing of the Republi- ment were already lining up Griffin. Republicans Cruz, he has increasingly en-
can Party, which had begun behind Mr. Rubio. “When your super PAC Ben Carson $64 dured blows from his rivals.
leaning his way in the last few Mr. Rubio received about raises $30 million and is tak- Ted Cruz $88 “We have taken on more
months. $676,129 in bundled contribu- ing in multimillion-dollar Marco Rubio $70 negative attacks than every
Support is likely to grow tions from federal lobbyists in checks from billionaire inves- Jeb Bush $150 other candidate combined,”
for Mr. Rubio among donors, the last three months of tors, it is pretty hard to claim Donald Trump Mr. Rubio said on NBC
$19
elected officials and other 2015—nearly as much as the you are untouched by special News on Sunday. “Jeb Bush’s
prominent Republicans who $716,981 received by Demo- interests,” said David Vance, a Rand Paul $21 super PAC has basically spent
see the Florida senator as cratic presidential hopeful Hil- spokesman for the nonparti- John Kasich $22 $30 million, a third of its
their best alternative to Ted lary Clinton and much more san Campaign Legal Center in Chris Christie $23 money, attacking me. Yet we
Cruz and Donald Trump. than the $195,795 received by Washington. Carly Fiorina $20 keep growing, and we feel real
These Republicans view Mr. Mr. Bush during the same pe- The dueling sides of the Ru- Mike Huckabee $18 positive about it.”
Cruz as an uncompromising riod, according to reports bio campaign—he is running A spokesman for the Right
Rick Santorum $0.4
ideologue willing to shut down filed Sunday with the Federal against the Washington estab- to Rise super PAC behind Mr.
the government, while they Election Commission. lishment even as big parts of Source: Federal Election Commission filings THE WALL STREET JOURNAL. Bush, Paul Lindsay, said, “Even
question Mr. Trump’s conser- Overall, Mr. Rubio collected it are financing his cam- for a candidate like Marco Ru-
vative principles. Both men $14 million in the last three paign—reflect his efforts to “If you caucus for me and pitch as a scrappy political bio whose biggest supporters
are criticized as too extreme months of the year, twice as position himself as the bridge I’m the nominee, I will unite outsider is his 2010 Senate are inside the Beltway, it’s sur-
to build winning national co- much as Mr. Bush, his onetime between grass-roots activists the conservative movement,” race, when he upset the favor- prising to see a candidate
alitions that would expand the mentor. He also outraised Mr. frustrated with elected offi- Mr. Rubio said Sunday while ite of the Republican estab- complain and whine so much
GOP’s reach to women, minori- Bush among donors in the cials and the business-friendly campaigning in Iowa. lishment, Charlie Crist, then about honest and factual ads
ties and young people. Washington, D.C., metropoli- wing of the Republican Party. A key plank of Mr. Rubio’s Florida’s governor. about his record.”
Crunch Time in Iowa Heard on

the Stump
Cruz Makes a Pledge
On French Fries
Ted Cruz likes to say he isn’t
the kind of politician who panders
to special interests, but in Jeffer-
son, Iowa, he showed he wasn’t
entirely above that kind of thing.
Noticing a crowd of school-
age children filling a section of
his event in a community center
here, he gave a special flourish
to a line that he often delivers
to take a dig at first lady Mi-
chelle Obama’s interest in pro-
moting healthy eating at schools.
After his wife Heidi had spo-
ken, he heaped praise on her,
then turned to the students and
said, “If Heidi Cruz becomes first
lady, french fries are coming
back to the cafeteria.”
The students erupted into ap-
plause and cheers. Of course,
most of them were too young to
T.J. KIRKPATRICK FOR THE WALL STREET JOURNAL
vote.
—Janet Hook
Kasich Issues a Plea
On Negative Ads
Ohio Gov. John Kasich said a
super PAC supporting his presi-
dential bid was right to take
down an ad attacking Sen.
Marco Rubio for voting against
the reauthorization of the Vio-
lence Against Women Act and
called on other candidates to pull
DECISION POINT: Iowans listened to a pitch for Texas Sen. Ted Cruz at the Republican party caucus site in Malcom, Iowa, on Monday. Across the state, the GOP field their negative ads.
was dominated by Mr. Cruz, Donald Trump and Florida Sen. Marco Rubio, while Hillary Clinton and Sen. Bernie Sanders fought a tight race on the Democratic side. “I am thrilled they have not
put that ad on the air and they
have a positive commercial on the
air,” Mr. Kasich said Monday. “My
Next State Contest Is an Unpredictable One

good friend Chris Christie and Jeb
Bush should take their negative
nonsense off the television.”
Tucker Martin, a spokesman
BY PETER NICHOLAS professor at the University for Christie super PAC America
of New Hampshire, said more Leads, said Mr. Kasich’s group
MANCHESTER, N.H.— than one-third of New Hamp- had run “unrelenting attacks” on
New Hampshire doesn’t look shire Democrats are liberals Mr. Christie and that he
all that much like the rest of open to finding an alternative shouldn’t complain. “The award
America. It is whiter, wealth- to mainstream candidates for ‘most selective memory in
ier, more educated and less blessed by the party establish- Campaign 2016’ goes to: Gov.
religious. ment. Republicans are more John Kasich,” said Mr. Martin.
With only 1.3 million peo- centrist and less moved by so- A spokesman for Mr. Bush’s
ple, the state is among the cial issues than GOP voters outside group, Right to Rise,
smallest in the nation. Yet by elsewhere, he said. didn’t immediately respond to
dint of hosting the nation’s “New Hampshire is a state requests for comment.
first primary, New Hamp- where likely GOP primary vot- —Heather Haddon
shire has wielded outsize in- ers are more pro-choice on
fluence in picking presidents, abortion than the entire coun-
vetting candidates and win- try is. It’s not a state where
nowing crowded fields of socially conservative issues
White House hopefuls. resonate,” Mr. Smith said.
That holds true for 2016, One theory that his book
when the primary, coming just tries to debunk: the power
eight days after the Iowa cau- of New Hampshire “indepen-
CHARLES KRUPA/ASSOCIATED PRESS
cuses, could upend the race. dents.” Registration figures

New Hampshire was where show the state has 261,000
Bill Clinton declared himself Republicans and 229,000
the “Comeback Kid” in 1992, Democrats. An additional
regaining his footing at a 384,000 are “undeclared”—so-
rocky stage of his campaign called independents—and free
and getting on a winning to vote in either party’s pri-
path. Sixteen years later, his mary.
wife’s surprise victory over The vast majority of unde-
Barack Obama kept her in the Former Florida Gov. Jeb Bush at a gathering during a campaign stop Monday in Manchester, N.H. clared voters are, for practical
‘I am a
race for an additional five purposes, Republicans or progressive who
months. “fortified the campaign, ener- Journal/NBC News/Marist poll In 2000, the GOP establish- Democrats, Mr. Smith said,
Eric Fehrnstrom, a senior gized our supporters and al- found. ment had coalesced behind adding that true independents
wants to make
adviser to Republican Mitt lowed us to endure future set- New Hampshire voters then-Texas Gov. George W. aren’t as interested in politics progress and
Romney in both 2008 and backs,” he said. aren’t quite in step with the Bush. When the race and typically don’t vote in the
2012, said he has seen how On the Democratic side, rest of the nation, research reached New Hampshire, Mr. primaries.
actually produce
the state can “either destroy a this year’s New Hampshire shows, which makes the state McCain defeated him by a So, as quirky as New Hamp- real results in
campaign or rejuvenate it.” In race has long been tight, with perilous terrain for front-run- hefty 18 points. But Mr. Bush shire may be, in one respect the
the former race, Mr. Romney recent polling showing Sen. ners. In 1984, Democratic Sen. won in South Carolina two same rule applies as every-
people’s lives.
lost New Hampshire and, ulti- Bernie Sanders, who repre- Gary Hart of Colorado put a weeks later and effectively where else: Candidates win by That’s what I’m
mately, the nomination. Four sents the neighboring state of scare into former Vice Presi- wrapped up the nomination wooing their party’s registered
years later, he won the pri- Vermont, holding and even ex- dent Walter Mondale, defeat- by winning Califor- voters.
offering. I’m not
mary and went on to be the panding his lead over Hillary ing him in New Hampshire by nia, New York and other “If you hear a candidate overpromising.’
GOP nominee. Clinton. In the Republican 10 points. states on “Super Tuesday” in saying they’re going to win
“In 2008, after Romney lost race, Donald Trump was lead- The rest of the country March. the New Hampshire primary
in New Hampshire, we just ing the field as the top pick of wasn’t as smitten by Mr. Andrew E. Smith, co-author because they’re going to get HILLARY CLINTON
never recovered,” Mr. Fehrn- 30% of GOP primary voters as Hart; Mr. Mondale went on to of a book on the state’s pri- the ‘independent’ vote, they’ll on CNN Monday
strom said. In 2012, the win of early January, a Wall Street win the nomination. mary and a political-science lose,” Mr. Smith said.
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | A7
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WORLD NEWS
Outbreak of Zika Declared an Emergency
U.N. public-health
agency calls for Brazil Steps Up
research and efforts to Fight Against
control virus’s spread Mosquitoes
BY BETSY MCKAY SÃO PAULO—Brazil’s presi-
dent authorized government
The World Health Organi- health workers eradicating
zation on Monday declared mosquitoes to enter private
that a rise in the number of properties even in the owner’s
birth defects and other neu- absence, as the country inten-
rological conditions possibly sifies its fight against the
linked to the Zika virus con- mosquito-borne Zika virus.
stitutes a global public- President Dilma Rousseff’s
health emergency. emergency decree will mainly
The United Nations public- open doors for state and mu-
health agency, acting on the nicipal health workers sent out
recommendations of an to destroy mosquito breeding
emergency committee, called grounds—stagnant water in
for more surveillance, re- buckets, drains or ditches.
search, and efforts to control Brazilian law requires au-
the virus’s spread. It also thorities to obtain a warrant
pushed for the development from a judge to enter private
of more readily available property if no one is home.
tests to diagnose the virus— The decree could be chal-
none are commercially avail- lenged, but experts said they
able now—as well as drugs don’t expect a wave of law-
and vaccines. suits.
MARIANA BAZO/REUTERS
“The evidence is growing The government is dis-

and it’s getting strong,” WHO patching army troops and
Director-General Margaret other crews to drain water-
Chan said at a news confer- logged areas. It is also beef-
ence, of the suspected link ing up public-education cam-
between Zika and the birth paigns.
defect, known as microceph- A health worker carried out fumigation Monday at a cemetery on the outskirts of Lima, Peru, to prevent the spread of the Zika virus. —Rogerio Jelmayer
aly, in which babies are born
with undersized heads and which the body’s immune which it has warned pregnant cephaly since October, when Brazil, El Salvador, and French victims than the normally mild
brains. “We need a coordi- system attacks nerve cells. women to avoid travel because observations by doctors in the Polynesia. Zika virus.
nated international response “Zika alone would not be a Zika is circulating there. But city of Recife led to the coun- The emergency committee The committee said women
to make sure we get to the public-health emergency of in- those alerts don’t constitute a try mandating the reporting of called for more surveillance for of childbearing age should be
bottom of this.” ternational concern,” said Da- travel ban. suspected cases. Of those, six microcephaly and GBS and re- taught how to reduce exposure
The agency’s decision vid Heymann, the committee’s The WHO’s decision fol- cases have confirmed links to search into whether there is a to Zika, and those who are
shows how a once-obscure vi- chairman and professor of in- lowed a four-hour teleconfer- the Zika virus. The Brazil causal link with the rise in Zika pregnant should be counseled
rus, which generally makes fectious disease epidemiology ence Monday afternoon Ge- health ministry is investigating cases. It also called for more and monitored.
people only mildly ill for a at the London School of Hy- neva time with the 12-member thousands more suspected surveillance for Zika virus it- This is only the fourth time
few days, has become a major giene and Tropical Medicine. emergency committee and a cases of microcephaly. self, and measures to combat the WHO has declared the
global health concern as it “Zika is not a clinically serious team of advisers, including Brazil isn’t alone. Authori- the mosquitoes that spread spread of a disease to be a
has spread first in Brazil and infection. It’s only because of medical experts and represen- ties now say they believe that it—primarily the Aedes aegypti “public-health emergency of
now throughout the Ameri- this association, if it’s proven.” tatives of the tourism and avi- some cases of microcephaly in species, which is common in international concern,” a des-
cas. Brazil health authorities The WHO also said travel ation industries. The govern- babies in French Polynesia may the tropics and subtropics, in- ignation introduced to indicate
believe as many as 1.5 million and trade shouldn’t be re- ments of Brazil, El Salvador, be linked to an outbreak of cluding the southern U.S. international risk and corral
Brazilians may be infected stricted due to Zika. That put France and the U.S. provided Zika that occurred there in The species is considered a support to fight it. Emergen-
with the Zika virus. The WHO it seemingly at odds with the their findings on the possible 2013 and 2014. Brazilian and formidable threat to public- cies were declared for the
said it declared the Zika epi- U.S. Centers for Disease Con- link between Zika and micro- international health authorities health because it is an aggres- H1N1 flu pandemic in 2009, the
demic an emergency only be- trol and Prevention, which cephaly and other neurological also say Zika may be linked to sive biter, hard to eliminate, spread of polio in 2014, and
cause of its possible links to added four more countries and disorders, the WHO said. a rise in the number of cases and it spreads dengue and chi- Ebola later the same year.
microcephaly and Guillain- territories to a growing list, Brazil’s health ministry has of Guillain-Barré syndrome. kungunya, which exact an even —Rogerio Jelmayer
Barré, a rare disorder in now totaling 28, of places to confirmed 270 cases of micro- Cases are being investigated in harsher toll on many of their contributed to this article.
U.S. Is Pressed for Broader Afghan Role U.N. Envoy

BY JESSICA DONATI
AND HABIB KHAN TOTAKHIL
ended their combat mission
and began a new effort consist-
fighters. Additional British and
U.S. forces deployed to assist
Urges Talks
BABAJI, Afghanistan—U.S.
Special Forces soldiers are be-
ing of training, advising and as-
sisting Afghan forces, and con-
ducting counterterrorism
the operation.
“If the foreigners hadn’t as-
sisted, Helmand would have
For Syrian
ing called in more frequently
by Afghan forces to help stop
the Taliban from capturing Hel-
operations when needed.
Under the new rules, the
U.S. military can’t target mili-
fallen by now,” police battalion
commander Mohammad Sar-
war Qudrat said.
Cease-Fire
mand province and its lucrative tants solely because they are The progress, however, was BY SAM DAGHER
heroin trade. But the gains in at identified as members of the short-lived. Weeks later, the AND ASA FITCH
least three recent combat oper- Taliban. U.S. forces can act if Taliban returned. Babaji is once
ations, in which one American the Taliban threaten them or again embattled, as Taliban GENEVA—The United Na-
ABDUL AZIZ SAFDARI/ZUMA PRESS
soldier was killed and at least their NATO allies, but aren’t al- forces have drawn within two tions envoy for Syria called for
three wounded, were later re- lowed to protect Afghan forces miles of its 20,000 inhabitants. discussions about a cease-fire
versed and the Taliban retook except under what command- Since the Babaji operation, to begin immediately as talks
the territory. ers consider extreme cases or U.S. Special Forces troops have aimed at ending the nearly
That dynamic has increased when they are accompanied by frequently come to the aid of five-year conflict kicked off
pressure from Afghan and coali- U.S. forces. Afghan government forces in here on Monday after days of
tion officials for the Obama ad- The change occurred in part strategically important areas of delay.
ministration to change its rules because the U.S. is trying to the province, according to Af- Staffan de Mistura spoke af-
of engagement to give U.S. nurture peace talks between ghan and U.S. officials. ter his first formal meeting
forces a larger role in military the Taliban and the govern- An Afghan security-force member in Helmand in December. “We came to pile on this as- with the Syrian opposition del-
operations and more discretion ment of Afghanistan, while sistance pretty late,” the coali- egation, which he said marked
in calling in air support and us- handing off primary fighting mentalist Islamic movement— about a 10-minute drive from tion adviser in Helmand said. the beginning of this round of
ing regular ground forces. responsibility to Afghan forces. there are growing fears in the the heart of Lashkar Gah, Hel- The U.S. military wouldn’t indirect talks with the regime
U.S. military commanders At a news conference Thurs- U.S. military that the province mand’s capital. The Taliban comment on its operations in of Syrian President Bashar al-
say they have repeatedly put day at the Pentagon, Defense could fall and set off a chain re- suddenly looked poised to seize Afghanistan, but the American Assad.
their troops in harm’s way for Secretary Ash Carter said the action across southwestern Af- the whole province. coalition adviser and U.S. “There was a message in
progress that has proved fleet- rules “allow us to do what we ghanistan. “We didn’t know how bad troops said several have ended the Vienna meeting that when
ing, according to coalition think needs to be done.” Despite winter weather, Helmand was going,” the coali- unsuccessfully. the Geneva talks will actually
members working with the But he said President Barack when fighting normally sub- tion official said. “It was a very U.S. diplomats and military start, in parallel there should
U.S.-led military coalition. Obama has shifted U.S. proce- sides in Afghanistan, the num- unpleasant surprise.” officials, as well as Afghan gov- be the beginning of a serious
“We have the capacity to an- dures in the past in response to ber of U.S. and North Atlantic As the Taliban closed in on ernment officials, also point to discussion about a cease-fire,”
nihilate the Taliban threat. But circumstances. “And you can Treaty Organization troops de- Lashkar Gah, Afghan military battles in which Afghan secu- Mr. de Mistura said, referring
because of the rules of engage- expect that that will occur in ployed to Helmand is expected commanders asked for U.S. rity forces gave up without a to meetings in the Austrian
ment under the new mission, the future as well,” Mr. Carter to rise early this year to 500, help. Special Forces troops, ac- fight. A 13-page, confidential capital last year that laid the
our hands are tied,” said an said. “He’s indicated as much.” up from about 300 in Decem- companied by Afghan comman- Afghan government report seen groundwork for the current
American adviser to the coali- Meanwhile, with the Taliban ber, coalition officials said. dos, arrived in armored trucks by The Wall Street Journal lists negotiations.
tion in Helmand, who described making a concerted effort to The wake-up call in Helmand and broke through Taliban some 20 examples of weaponry Mr. de Mistura is acting as a
the rules as incomprehensible. take control of Helmand and occurred in October, one coali- lines, police and local officials surrendered to the Taliban. go-between for the two dele-
The rules of engagement in secure its stake in the heroin tion official said, when Taliban said. —Gordon Lubold gations, holding separate talks
Afghanistan changed a year trade there—an important fighters overran positions in In a two-day battle, air- in Washington to try to find common ground.
ago, when the U.S. and its allies source of income for the funda- Babaji, a cluster of villages strikes scattered the Taliban contributed to this article. He planned to meet Tuesday
with the regime’s delegation.
He said the opposition was
Survivors Recount Horrors of Boko Haram Attack insisting on seeing an im-

provement in the situation on
the ground before moving to
substantive talks on the future
BY GBENGA AKINGBULE The attack, which targeted insurgency has become in the burned to death today.…I have Boko Haram’s five-year war shape of Syria’s government.
those fleeing Boko Haram’s vi- two years since vigilantes lost my wife,” Mr. Modu said has left more than 27,000 peo- The U.N. framework of the cur-
ABUJA, Nigeria—The death olence, was a gruesome re- helped push the jihadists from over the phone from Maidug- ple dead, according to the rent Geneva negotiations calls
toll climbed from Boko minder of how indiscrimi- urban centers like Dalori, a uri, where he fled with other Council on Foreign Relations for a political consensus on a
Haram’s Saturday night ram- nately violent the Islamist suburb of Maiduguri, which is survivors. in New York. transitional government in six
page through a refugee camp the largest city in northeast Baba Kaka, a 45-year-old Newspapers and television months, followed by the draft-
in northeast Nigeria, as resi- Nigeria. fish trader, escaped to join his stations have instead focused ing of a new constitution and
MALI 200 miles
dents buried bodies and terri- Witnesses described the wife and two daughters, who on issues closer to most Nige- elections within 18 months.
NIGER
CHAD
fied survivors ferried wounded 200 km militants burning down houses were attending a wedding in rians, particularly a crashing Mr. de Mistura’s insistence
to nearby towns for treatment as children screamed inside. Maiduguri. “I was just running economy. A collapse in oil on a cease-fire could pose a
and refuge from another as- Maiduguri
Aisami Modu, a local resi- toward the outskirts of the prices has left the government major obstacle. Suheir Atassi,
sault. dent who lost his wife and town while gunshots cracked cash-strapped. a senior member of the oppo-
BENIN
Government authorities on NIGERIA Dalori daughter in the attack, which in the air. Before the military On Monday, Nigeria’s fi- sition delegation, said the
Monday said the number of ig involved suicide bombers and came to our rescue, I thought nance ministry said it would group was suspicious of at-
N
er Abuja
dead in the town of Dalori had gunmen on motorcycles, said I would be killed.” have to borrow about $9 bil- tempts to tie demands in nego-
R.
risen to 65. Lagos authorities recovered the re- Still, the shocking details of lion to close a widening bud- tiations to a cease-fire by the
An additional 136 wounded mains of his 6-year-old daugh- Saturday’s assault barely re- get deficit, much of that from government because rebels
were taken to local hospitals, C AM E R O O N ter, which he immediately bur- verberated among many of Ni- the World Bank. could still be bombarded by
said Sani Gatti, spokesman for Gulf of Guinea ied in accordance with Islamic geria’s 184 million residents, —Drew Hinshaw Russia. Moscow began air-
the National Emergency Man- rites. who have become inured to in Lagos, Nigeria, strikes in Syria in September
agement Agency. THE WALL STREET JOURNAL. “My daughter was found frequent terrorist attacks. contributed to this article. to support the Assad regime.
THE WALL STREET JOURNAL. * * * * * Tuesday, February 2, 2016 | A9
WORLD NEWS
Venezuela Colleges Struggle Amid Cuts

Tighter budgets have driven professors abroad and left many students scrambling
BY SARA SCHAEFER MUÑOZ
AUNG SHINE OO/ASSOCIATED PRESS
CARACAS, Venezuela—
Until his cash-starved univer-
sity reopened last month,
22-year-old orthodon-
tics student William Saave-
dra and some classmates
spent their time offering free
checkups from a dentist
chair set up on this capital
Aung San Suu Kyi arriving at Myanmar's parliament on Monday. city’s bustling Plaza Brion.
MIGUEL GUTIERREZ FOR THE WALL STREET JOURNAL

His motivation wasn’t
SuuKyi’sParty
purely altruistic; that was
the only way he could keep
logging clinical experience.
Mr. Saavedra was just a year
OpensParliament
away from graduating when
his department at the coun-
try’s biggest public univer-
sity halted classes in Septem-
BY SHIBANI MAHTANI who could be trusted to follow ber in the face of a 70%
her instructions. budget cut, a strike by pro-
NAYPYITAW, Myanmar— Outgoing President Thein fessors, and a lack of sup-
The question of who will offi- Sein and his ministers will re- plies from latex gloves to
cially lead Myanmar hung over main in office until the end of light bulbs. Dentistry student Victoria Betancourt gives a free checkup to a resident of a slum in Caracas.
parliament on Monday as hun- March. Many observers say it “I couldn’t just sit at
dreds of lawmakers from Aung is unlikely that major new laws home or take a vacation,” zuela’s black market. enon. As a result of brain and tension between univer-
San Suu Kyi’s party took their or decisions that require the said Mr. Saavedra, the slight Trying to reverse the drain and the continuing uni- sities and the government,
seats following historic elec- president’s signature will be and boyish son of an ortho- damage is a priority of the versity crisis, economists and Mr. Maduro further tight-
tions in November. passed before then. dontist. “I had to look for country’s opposition, which education experts say, the ened the screws in Au-
Their presence was the next Instead, the new legislature something to do even if I won a majority of seats in country faces a severe gust, demanding that the
step in a slow-moving power will focus on procedural mat- wasn’t in class.” the National Assembly in De- drought of skilled workers, universities accept 50% to
shift after more than a half- ters, such as the selection of Central University, where cember elections. A nine- from business entrepreneurs 75% more incoming students,
century of military rule. Ms. new speakers for the upper Mr. Saavedra studies, is hold- member committee has met to surgeons. many from poor back-
Suu Kyi’s National League for and lower houses. ing classes again, but condi- with students, teachers and “We need educated people grounds. It said the existing
Democracy will hold more than The NLD’s candidate for the tions there show that as Ven- deans and plans to recom- to get us out of the state we merit-based competition for
half of the 664 seats in the leg- more important lower house is ezuela suffers from an mend that money from Vene- are in,” said Ulises Rojas, admission to top public
islature, a majority that would Win Myint, a party executive- economic collapse, it is also zuela’s sizable military bud- schools favored the wealthy.
allow it to pass legislation committee member who has experiencing another, slow- get be funneled to the Yet even as it mandated
with little opposition. been involved in the transition motion crisis: the decay of a universities, said Juan An-
Reversing the higher enrollment, the
Despite her party’s resound- talks. For the upper house, the public-education system once drés Mejía, an opposition damage is a priority state slashed university bud-
ing electoral victory, Ms. Suu party last week announced the regarded as among the best lawmaker and committee gets for the 2016 school year
Kyi is constitutionally barred selection of Mahn Win Khaing in Latin America. member. Whether that will
for the country’s by between 70% and 80%.
from the presidency because Than, an ethnic Karen. The university, founded in happen, however, is unclear, opposition. Public universities saw the
her children, who were born in The NLD was denied the Caracas in 1721 and the flag- with the assembly and the cuts as aimed at driving
Britain and hold U.K. pass- chance to govern after winning ship of Venezuela’s public government of President Ni- them out of existence.
ports, are foreigners. That has elections in 1990 that were ig- university system, has lost colás Maduro at loggerheads. vice chancellor of the Univer- “There’s not enough for
made the choice of head of nored by the junta, who took nearly a quarter of its 4,000 “Right now we are in the sity of Carabobo. anything, not even for the
state a matter of closed-door the country further into politi- professors in the past four middle of a crisis of oil Venezuela’s public univer- light bulbs,” Adelaida Struck,
discussions between the for- cal and economic isolation un- years, administrators say, af- prices, and so the country sities account for eight in 10 dean of Central University’s
mer political prisoner and the til it stepped aside in 2011. ter inflation left many them needs to become more pro- college diplomas in the coun- economic and social sciences
military establishment. The new NLD lawmakers ex- earning daily wages equiva- ductive in other areas,” Mr. try. The rest are from private faculty, said of the budget.
On Sunday, the party an- pressed joy as they took their lent to the price of a can of Mejía said. “But where is this universities and a network of Meanwhile, campus crime
nounced that Ms. Suu Kyi’s places in parliament for the tuna. The monthly budget for talent going to come from if so-called Bolivarian universi- has soared. The University of
chief of staff, Tin Mar Aung, first time, taking selfies and supplies and administration universities can’t function?” ties launched by late Presi- Carabobo has requested
will resign from that role, rais- photos of each other. Party of its largest faculty, which More than a million citi- dent Hugo Chávez’s left-lean- armed police in response to
ing speculation that she could members wearing their signa- teaches social sciences, eco- zens with higher education ing government with the an average of five armed rob-
be a pick for the top job. Other ture burnt-orange jackets nomics and business admin- have already left Venezuela, stated goal of educating stu- beries of students a week.
rumored picks include Ms. Suu dwarfed the military contin- istration to about 7,000 stu- according to Tomás Páez, a dents to support a people’s —Anatoly Kurmanaev
Kyi’s personal physician, Tin gent, which still holds a quar- dents, comes to the Central University sociologist revolution. and Juan Forero
Myo Win, another confidant ter of the seats. equivalent of $186 on Vene- who has studied the phenom- After years of budget cuts contributed to this article.
Chechen Leader Kadyrov

Takes Aim at Putin’s Foes
BY JAMES MARSON
MOSCOW—Chechen leader
think you're in
Ramzan Kadyrov published a
MUSA SADULAYEV/ASSOCIATED PRESS
video showing opponents of

his political patron, President
Vladimir Putin, in what appear
to be the cross hairs of a rifle’s
telescope sight, drawing oppo-
a dead end job?
sition criticism of the Krem-
DID YOU KNOW THAT DUE

lin’s failure to censure his in-
creasingly hostile vilification.
Mr. Kadyrov posted the
TO EXTREME CONDITIONS
video showing former Prime
Minister Mikhail Kasyanov, the Image from a video posted on Ramzan Kadyrov’s Instagram page.
leader of an opposition party,
& A LACK OF WORKER

and Vladimir Kara-Murza, an- opposition in France, an ap- Putin to respond “as guarantor
4,000
other opposition activist, on parent reference to the two ac- of the country’s constitution,”
his Instagram page. tivists’ trip to Strasbourg for a Interfax reported. Mr. Kara-
The Chechen leader has in
recent weeks lashed Russia’s
meeting of a European human-
rights organization.
Murza told the news agency
Mr. Kadyrov’s actions were a PROTECTIONS,
*
opposition movement. Mr. Kasyanov said he con- result of Mr. Putin’s unwilling-
“Whoever didn’t get it will sidered the video “a direct ness to rein him in.
get it now!” read a post ac- threat of murder of a politi- Kremlin spokesman Dmitry
companying the video. The cian” and would consider ap- Peskov said Monday that he
text accused Mr. Kasyanov of pealing to law enforcement to had seen media reports and
seeking money for the Russian investigate. He called on Mr. would look into the matter.
MIDDLE EAST prove an experiment with the

World Israel Reopens genome-editing technique.
Watch West Bank Hub

The decision by the indepen-
dent regulator on fertility treat- MIGRANT WORKERS WILL
The Israeli military reopened ment is a major step toward al-
the main Palestinian city in the
West Bank late Monday after
lowing scientists to use the
technique, known as CRISPR- DIE IN QATAR BEFORE THE
START OF THE WORLD CUP
imposing a rare, daylong partial Cas9. It has generated excite-
closure of surrounding roads fol- ment as a way to possibly eradi-
UNITED KINGDOM lowing a Palestinian shooting at- cate some diseases and as a
IN 2022?
tack on Israeli soldiers the day potential fertility treatment. But
Woman Sentenced for before. Citing a “situation as- it has raised fears that it could
Joining Islamic State sessment,” the military said be used to genetically engineer
The first British woman to be crossings to and from Ramallah babies for desired traits.
convicted of joining Islamic State had returned to normal. The application must be ap-
was sentenced to six years in Ramallah is the seat of the proved by an independent re-
prison on Monday. Palestinian Authority and a com- search ethics committee before
A jury on Friday found 26- mercial center, drawing workers the experiments can begin.
year-old Tareena Shakil guilty of from around the West Bank. Is- —Shirley S. Wang
belonging to a terrorist organiza- rael has struggled to contain a
tion and encouraging support for wave of near-daily Palestinian at- EUROPE
it after she traveled to Syria tacks, which began in Jerusalem
with her toddler son in October in mid-September and later
France, Belgium Vow
2014 and spent three months spread to the West Bank. Intelligence Sharing
with the group. The case under- —Associated Press France and Belgium pledged
scores what Western officials greater intelligence sharing and
say is a troubling rise in the UNITED KINGDOM police cooperation, the prime
number of women traveling from ministers of both countries said
Europe to Syria and Iraq.
Regulator Approves at a summit aimed at smoothing
Judge Melbourne Inman said Genome Editing frictions that emerged after the
that even if Ms. Shakil didn’t A U.K. regulator gave the Paris terrorist attacks.
play a front-line role for Islamic green light to scientists to ge- Officials from both countries LEARN MORE & TAKE ACTION AT
State, she went to Syria intent
on helping the self-declared ca-
netically modify human embryos
as part of fertility research, put-
discussed efforts to halt illegal
weapon trafficking and the pro- ALLIANCEFORWORKERS.ORG
liphate. ting Britain on course to be duction of false travel docu- *SOURCE: INTERNATIONAL TRADE UNION CONFEDERATION
—Alexis Flynn among the first countries to ap- ments. —Matthias Verbergt
FROM PAGE ONE
PROFIT
Continued from Page One
in part to respond to investor
calls for more transparency as
Google branched into new fields
like health care, transportation
and communications.
Monday, Alphabet for the
first time reported revenue, op-
erating income and other met-
rics for both its main Google
business and for a group of
moonshots it calls “Other Bets,”
such as self-driving cars.
The “Other Bets” unit posted
an operating loss, excluding
stock expenses, of $3.1 billion,
nearly double the $1.6 billion
loss in 2014. Revenue at those
units, which includes its Nest
home-automation unit, its Fiber
high-speed Internet service and
its Verily health-care subsidiary,
rose 37%, to $448 million, from
$327 million. In 2013, the moon-
shot units generated just $12
million in revenue.
For the company as a whole,
BLOOMBERG NEWS
Alphabet said fourth-quarter net
income totaled $4.92 billion, or
$7.06 a share, versus $4.68 bil-
lion, or $6.79 a share, in the
same period a year earlier. Rev-
enue rose 18%, to $21.33 billion, Google’s parent reported strong growth and rising profitability at its main Internet business. Above, Alphabet Chairman Eric Schmidt at an event in South Korea in October.
up from $18.1 billion a year ear-
lier. capitalization of $539.7 billion. One reason: The majority of the Ms. Porat said YouTube reve-
Excluding certain expenses, The last time Alphabet’s market cash, 58% as of Sept. 30, is held nue is growing at “a very signif- Core Growth
Alphabet said it would have cap exceeded Apple’s was in overseas and can’t be brought icant rate,” without being more Alphabet quarterly revenue and operating income, by segment
earned $8.67 a share. That ex- January 2010. back to the U.S. without incur- specific.
ceeded the consensus analysts’ The rally extended a long rise ring additional taxes. Capital expenditures for the Operating income/loss* Revenue
estimates of $8.10 a share on in Alphabet shares, which have The strong performance of whole company dropped to $2.1 $10 billion $20 billion Other Bets
that basis, according to Thom- climbed 43% in the past year as the core Google unit reflected billion in the fourth quarter, ver- $151M
son Reuters. The revenue total its Google business improved robust demand for ads for holi- sus $3.55 billion a year earlier. 8 4Q 2015
16
exceeded analysts’ estimates of mobile search ads and cut costs. day shopping and the fast-grow- The finance chief said Alphabet Google Google
$20.8 billion. ing YouTube digital-video ser- is making some “tough calls” to 6 $21B
$8B 12
Like other tech companies, vice. reduce investments in some less
Alphabet said the strong U.S.
Like other tech Revenue from Google’s own promising areas. 4
dollar had damped its growth. firms, Alphabet said online services rose 20% to Still, she warned that the Other Bets 8
The company said currency ef- $14.9 billion in the fourth quar- company will keep spending on 2
fects knocked $1 billion off
the strong U.S. dollar ter. That was up from year-over- its core, not just moonshots. Ar-
–$1.1B
(Includes 4
fourth-quarter revenue, after its had hurt its growth. year revenue growth of 18% in eas of future investment for 0
driverless cars,
hedging programs. Without the final quarter of 2014. Google include virtual reality, smart homes,
that, revenue would have Search marketing firm Ken- cloud computing and artificial –2 health care) 0
climbed 24%, rather than 18%, Apple shares have fallen roughly shoo said clients boosted spend- intelligence, she added. 2014 ’15 2014 ’15
from a year earlier, it added. 18% in the past year, amid slow- ing on Google’s product ads by “Our Q4 results show the *Excludes stock-based compensation, administrative costs and other miscellaneous items
In after-hours trading, Alpha- ing growth in sales of its main 81% in the fourth quarter, com- great momentum and opportu- Source: the company THE WALL STREET JOURNAL.
bet shares rose 4.2%, to product, the iPhone. pared with the same period a nity we have in mobile Search
$803.03, giving the company a On a conference call, Chief year earlier. These ads work and across Google’s range of in the fourth quarter, joining six “We have only scratched the
market capitalization of about Financial Officer Ruth Porat said particularly well on smart- businesses,” said Sundar Pichai, other services with more than a surface of truly being there for
$560 billion. That vaulted Al- Alphabet may borrow more phones, because they show up chief executive of Google. billion users: Search, Android, our users, anytime, anywhere,
phabet past Apple, which closed money, despite having $73 bil- in the top of results pages when Gmail, the company’s email Maps, Chrome, YouTube and the across all devices,” Mr. Pichai
Monday trading with a market lion in cash on its balance sheet. people search for things to buy. service, passed one billion users Google Play app store, he noted. added.
LOANS Who You Calling a Liar? Dubbed ‘liar loans’ after they
were abused during the housing crisis, Alt-A mortgages are making a
comeback at the behest of money managers.
pretty good amount of time”
traveling around the country to
find lenders that aren’t only
willing to make Alt-A loans but
loans were originated in 2014,
compared with $767 billion
for conventional mortgages, ac-
cording to Inside Mortgage Fi-
then package them into bonds
that they sold to investors.
That market shriveled after
the crisis. The Dodd-Frank fi-
Continued from Page One have the right set of borrowers. nance, which estimates that $18 nancial-overhaul law required
rowers. Cval “This is a pretty niche prod- billion to $20 billion were made some packagers of mortgage-
Banks have largely stayed cfg Al-A S bp uct, and the reality is it’s not in 2015. backed securities to hold some
clear of the market, putting easy to do,” Mr. Agarwal said. Some lenders remain reluc- of the loans.
Credit SCore:
745 660
small and medium-size lenders Most mortgages in the U.S. tant to jump in. Quicken Loans In addition, Dodd-Frank cre-
at the forefront of making typically at least are made to prime, A-rated Inc., the second-largest con- ates a harbor for all mortgages
these mortgages. Virtually none
of these Alt-A loans are being
sliced and packaged into secu-
on average 700 or below
buyers, according to strict stan-
dards for down payments, loan
size and income documentation
sumer lender in the U.S. by
mortgage volume, considered
getting into Alt-A mortgages
that meet government guide-
lines. Any mortgages that fall
outside those rules, such as Alt-
rities. Instead, private-equity doCumentAtion: set by Fannie Mae and Freddie but decided against it because A loans, are vulnerable to law-
firms, hedge funds and mutual- pay stubs and Mac, which buy the bulk of of the regulatory environ- suits from borrowers, which
Less than with
fund companies are playing a two years of tax mortgages in the U.S. ment, said Bob Walters, the adds to the risk for lenders.
conventional loans,
larger role as buyers, placing returns Alt-A loans, which don’t re- company’s chief economist. The money managers think
usually some
the loans into private funds combination of quire all those standards be “You put yourself at a higher that risk is manageable with
that are sold to institutional in- proof of assets, met, gained prominence in the level of risk, and we haven’t rigorous underwriting, but it
vestors and wealthy clients. pay stubs and bank statements or years leading up to the finan- gone through this to see how isn’t clear if borrowers are as
Unlike some of the most two years of tax tax returns. cial crisis, with lenders origi- it’s going to work out,” Mr. enthusiastic about the revival
egregious crisis-era loans, the returns nating $400 billion at their Walters said. of Alt-A loans.
new iterations require borrow- peak in 2006, according to To drum up supply, Neu- W.J. Bradley Mortgage Capi-
intereSt
ers to show good credit and trade publication Inside Mort- berger Berman executives have tal LLC, a Denver-based mort-
rAteS:
substantial assets or income, about 4% for a 6% to 10%, plus gage Finance. met with a handful of mortgage gage firm, realized a disconnect
5.5% to
even if they can’t produce veri- 30-year fixed-rate a larger down Derided as “liar loans,” they firms in recent weeks to try to last year when it began offering
8%
fication of annual wages. Still, mortgage payment were often extended to people form a partnership to make Alt- Alt-A mortgages and hard-to-
there are no regulatory guide- who had no proof of income. By A loans, people familiar with finance loans to condo buyers
lines outlining what constitutes February 2010, about 26% of the matter said. for the first time.
an Alt-A—or, officially, an “Al- Alt-A mortgages were 90 or Money managers want After several months, the
ternative A”—mortgage, and corner of the housing market: New York-based Neuberger more days delinquent, up from to bankroll the loans while rely- company had made no loans.
each lender has its own re- Borrowers who have good Berman and Pasadena, Calif.- 2% three years earlier, according on the mortgage firms to Borrowers felt interest rates as
quirements. credit but might be self-em- based Western Asset Manage- ing to CoreLogic, a real-estate handle the process with bor- high as 7% were too high, said
There has also been a re- ployed or report income spo- ment, a division of Legg Mason data and analytics com- rowers, basically acting as a Chief Operating Officer Dan
branding effort: Most lenders radically. In part because more Inc., are planning to roll out pany. That compares with con- lender, “one step removed from Baruch.
prefer to call these products Americans work that way, some new private funds that invest in ventional conforming mort- the process,” one of these peo- The lender is trying again
“nonqualified mortgages” due money managers expect the Alt-A mortgages in coming gages, which saw delinquencies ple said. now that investor demand for
to the stigma attached to the market could increase to hun- months, according to people fa- of 7.2% in February 2010, up The efforts underscore a the product has recently in-
Alt-A category. dreds of billions of dollars each miliar with the plans. Anup from 1.4% three years earlier. shift in how riskier mortgages creased. It is in talks with in-
By backing these loans, year, or more than 10% of the Agarwal, head of asset-backed The generation of Alt-A are made and sold on Wall vestor partners to offer Alt-A
money managers said they total mortgage debt outstand- securities at Western Asset loans has been minimal since Street. Before 2008, large banks mortgages with interest rates
would reach an underserved ing. Management, said he spends “a then. Just $17 billion in Alt-A would generally make the loans of about 5%.
HEADS flower and one that calls for it

to be puréed and mixed with
garlic, Parmesan and goat
cheese.
an online message-board last
month.
Fueling the frenzy among
foodies, they say, is that prices
“I remind people that it
might be a little more at the
grocery store, but you will feel
better in the long-run,” said
Continued from Page One Kellie Deming follows a are often erratic. In a recent Kirstie Brote, a personal
than a single potato, according low-carb diet, but she is steer- sampling, Whole Foods was trainer in Durham, N.H.
to the U.S. Department of Ag- ing clear of cauliflower until charging $2.99 a head in Man- Mellissa Sevigny of Green-
riculture. the price comes down. She re- hattan, while the price jumped wood Lake, N.Y., is less forgiv-
But the intersection of low cently whipped up a soup to $4.49 in Ann Arbor, Mich. ing. After spotting “the tiniest,
supply with booming demand made from roasted sweet po- Debbie Podolsky “coughed most anemic head of cauli-
is causing a cauliflower bub- tatoes, zucchini, onion, red up” $4.99 for a head of cauliflower I had ever seen” for
JOSHUA LOTT/BLOOMBERG NEWS
ble. According to the USDA, peppers and carrots, serving it flower at her local grocery $6.99, she recently wrote a
average retail prices recently to her family with homemade store last month, but is having “breakup” letter to the vegeta-
have been up 30% from last flaxseed bread on the side. a hard time finding her favor- ble on her low-carb food blog.
year. Some shoppers say they “I would have loved to have ite version: bagged bits of the “You have turned into a real
have seen stores charge as included cauliflower, but I’m vegetable called “cauliflower diva lately,” she wrote. “Some-
much as $8 per head in recent just not going to do it,” she rice” that is sold in the frozen- one needs to tell you to get
weeks. said. Ms. Deming lives in On- food section. over yourself and I love you
Cauliflower, part of a cruci- tario, Canada, where she has “You apparently have to get enough to be that person.”
ferous veggie family that in- Cauliflower, low in carbohydrates, is popular with some dieters, seen prices as high as C$7.99 there first thing in the morn- Since then, Ms. Sevigny has
cludes Brussels sprouts, broc- but cold weather in parts of the U.S. has caused a shortage. (US$5.65) for a head. She was ing on delivery day to get a taken her revenge like any bit-
coli and turnips, is not known tempted to cave when she saw bag,” said the pharmaceutical ter former lover: last week she
for its robust flavor. But low- fold it to create a facsimile of to shed a few extra pounds. one for C$3.99 (US$2.80), but account executive who lives in posted a recipe for winter cit-
carb dieters turn that bland- flour tortilla, or break it into The shortage “is just terri- “it was the size of a baseball Maplewood, N.J. She used the rus broccoli salad.
ness to their advantage, small florets as a base for ble,” said Kalyn Denny, a low- so I would have had to buy head she bought to make
smashing cauliflower to create “mac and cheese” without the carb food blogger and recipe two anyway.” cheese cauliflower “bread- VIDEO
a side dish reminiscent of “mac.” developer who lives just out- On low-carb message sticks.”
mashed potatoes or grating it The timing of the cauli- side Salt Lake City. She said boards, the cauliflower conun- Some cauliflower fans ar- See video about
in a food processor to resem-
ble rice. More adventurous
cooks steam it and press it
flower crunch couldn’t be
worse for Ms. Elliott and oth-
ers whose low-carb diet is
that her dishes featuring the
vegetable are among the most
popular among readers, in-
drum is reaching a fever pitch.
“Wish me luck for this week-
end because I’m on a mission
gue that higher prices are a
reasonable price to pay for the
long-term benefits of healthier
WSJ
.COM
the cauliflower
shortage causing
a panic at
into a pizza pan as a crust, part of a New Year’s resolution cluding twice-baked cauli- to get some,” wrote one fan in fare. wsj.com/ahedvideo.
OPINION
Defining Presidential Down BOOKSHELF | By Walter Russell Mead
In 2014 I
wrote a book
that made the
have come to choose this?
That’s been a topic of ear-
nest commentary ever since it
not collapse and tragedy.
The real difference, to
adapt a line from Daniel Pat-
Today’s degraded politics
is partly a result of that
moral accommodation. It’s
The Threats
case that the
United States,
for all of its
problems, was
became clear that Donald
Trump and Bernie Sanders
weren’t just blips on the
political horizon. The domi-
rick Moynihan, is that we’ve
spent the better part of a gen-
eration defining “presiden-
tial” down. There was a time
also the result of an intellec-
tual accommodation. Let’s
face it: If Mr. Clinton brought
dishonor to the Oval Office,
From Within
GLOBAL
not in decline. nant explanations tend to run when some form of military George W. Bush brought shal-
VIEW
Now and to the economic, sociological, experience or outstanding ci- lowness to it. Presidential as-
United States of Jihad
By Bret
again I have technological or generational. vilian service was considered pirants were once expected to By Peter Bergen
Stephens
my doubts. You’re in your 50s, the reces- a prerequisite for the presi- deliver finely tuned debating (Crown, 387 pages, $28)
P
The results sion hits, you lose your mid- dency. Or when first-term points about Quemoy and
of Monday’s Iowa caucus dle-income job and are way- senators did not presume to Matsu. After W, it became pe- eter Bergen has written what in effect are two books
won’t be known until after run for the White House with- dantic to expect candidates to about terrorism. Both are valuable. One is a riveting,
this column goes to print. out putting in time, paying know the names of the lead- thoroughly researched account of the evolving state of
But here’s what we know If this election is so dues, making friends and ers of India and Pakistan. the threat as a growing number of American citizens join the
already about the four top authoring some significant And now we have Mr. ranks of foreign terrorist movements—and of how U.S. intelli-
contenders. No prizes for crucial, why have piece of legislation. Or when Trump, who lived through the gence and law-enforcement agencies are addressing the con-
matching names to descrip- the front-runners conspicuous character flaws entire Cold War without, it stantly shifting threat. The other is a skilled defense of what
tions: or pending legal jeopardies seems, ever hearing of the Mr. Bergen would say is the moderate, middle-of-the-road ap-
1) A compulsive liar with a been so awful? were automatic and irrevoca- nuclear triad, or thinking proach that has characterized the Obama administration’s
persecution complex, a mania ble disqualifications. about it, or being embar- anti-terror effort: one that attempts to steer between the per-
for secrecy, and a bald disdain But all that is in the past rassed by the thought that ceived extremes of panicky overreaction and a failure to ac-
for rules as they apply to laid by debt. You’re not going now, and the moment that he’d never heard or thought knowledge how politically and socially devastating terror at-
lesser people. to be hired to design apps, so happened can be precisely of it. But he thinks he’s fit to tacks can be.
2) A bigoted braggart with you wind up as a limo driver dated. It began with Bubba. It be president, and at this The author, a CNN national-
a laughable grasp of public or restaurant hostess. You’re began when America made its writing a plurality of Republi- security analyst who has writ-
policy and leering manners of one of what columnist Stu first presidential-level accom- can voters seem to agree. Not ten four books on al Qaeda, is a
the kind you would expect Bykofsky has movingly de- modation with the mores of to worry: President Trump skilled and sensitive reporter
from a barroom drunk. scribed as “Throwaway Amer- the 1960s, and when it made will take that triad, add a with unparalleled access to the
3) A glib moralizer who is icans.” a self-conscious choice to re- prong, make it a nuclear fork, law-enforcement and intelli-
personally detested by every The Donald? Why not? define, and demote, the con- and stab our enemies to gence communities. In “United
single senator in his own There’s surely some truth cept of character in the hier- death with it. Just you watch, States of Jihad: Investigating
party, never mind the other to this, borne out by histori- archy of political virtues. people. America’s Homegrown Terror-
one. cal experiences from Weimar Jimmy Carter came to office Now we are at the start of ists,” he takes on the story of the
4) A Sixties radical preach- to Buenos Aires. Except life in promising never to lie; he an electoral season that 330 American citizens who, since
ing warmed-over socialism to today’s America is not re- pledged an American govern- Americans say is of the ut- the attacks of Sept. 11, 2001, have,
people too young to know motely comparable to Ger- ment “as good as its people.” most importance even as they in one way or another, become in-
what it was or too stupid to many in the 1920s or Argen- Bill Clinton lied, flagrantly and make the most flippant choice volved in what he calls “Binlad-
understand what it does. tina in the 1970s. There’s no frequently, and he made us of front-runners. And while a enism,” the ideology that underpins
Such are the character hyperinflation or mass unem- complicit in his lies. With few thousand voters in Iowa both al Qaeda and its more radical Islamic State offshoot and
traits of the candidates now ployment, no underground Bubba we became a nation of may not be tantamount to the that separates both groups from less violent forms of
vying to possess the nation’s armies of left-wing revolu- pseudo-sophisticates, people will of the American people, Salafism and Islamic fundamentalism. These homegrown ter-
nuclear launch codes. This be- tionaries or right-wing reac- who believed that the mark of they aren’t immaterial to it, rorists have an average age of 29; more than one-third of
ing a free country, they are en- tionaries. Nor is the economy the discerning voter was to see either. them are married. Though 12% have served time in prison,
titled to their ambitions. This worse now than it was in the through—and past—the “char- Sober up, America. We’re a Mr. Bergen insists that “they are, on average, as well-educated
also being a democracy, we are 1970s, to say nothing of the acter” issue. What mattered republic only for as long as and emotionally stable as the typical citizen.”
responsible for our political 1930s or 1890s. We live in an were results. In the halcyon we can keep it. American-born jihadists seem to come in three basic types.
choices. So how is it that we era of mediocrity and anxiety, 1990s, that seemed to work. Write [email protected]. The largest group is made up of marginal figures who seem to
stumble into terror plots—often with an assist from under-
cover federal agents. As an example, Mr. Bergen describes the
It’s the Middle Class, Hillary case of Matthew Llaneza, a Californian diagnosed with bipolar
disorder and paranoid schizophrenia. The religious and politi-
cal beliefs of this convert to Islam seemed more an aspect of
Middle-class out of Republican reach. agree with the Reagan line The result was a stimulus that his mental disorders than a conscious embrace of a radical
Americans are It doesn’t look that way to that the federal government is didn’t stimulate, an Obama- ideology. A federal agent, who worked undercover in the of-
angry. And Ed Goeas, who runs the Re- part of the problem, not the Care that has surprised them fice of Llaneza’s probation officer, encouraged Llaneza to
Republicans publican strategy firm the Tar- solution. Nearly as many with more bureaucracy and elaborate his violent delusions and then take steps to carry
are feeling rance Group and was advising (59%) doubt the government nasty premium hikes, a mas- them out until Llaneza was ready to detonate what he
the end of Scott Walker’s presidential is even capable of an effective sive increase in federal spend- thought was a car bomb at a Bank of America office in Oak-
their pitch- campaign until the Wisconsin solution. ing that nonetheless short- land, Calif., in February 2013.
MAIN
forks. governor withdrew from the When asked about their changes our military, and a A significant number of homegrown terrorists are, like
STREET
So at least race. Recently Mr. Goeas car- economic agenda, the prefer- listless economy that has Llaneza, emotionally and mentally unstable individuals. Mr.
By William
runs the cur- ried out a survey for the ences are likewise illuminat- forced a record number of Bergen suggests that without the attention of overzealous
McGurn
rent ortho- Ripon Society zeroing in on ing: in order, the middle-class Americans out of the work- law-enforcement officials, little would come of the fantasies
doxy. Middle- voters who describe them- force entirely. Even more of these lost souls. “Since 9/11 the FBI has organized more ji-
class America, we are told, selves as middle class, which striking, the Ripon survey hadist terror plots in the United States than any other organi-
has lost faith in the classic works out to 70% of the elec- Winning the Obama found that middle-class Afri- zation,” he writes.
Republicanism of limited gov- torate. The survey confirmed can-Americans and Latinos At the other end of the spectrum, a handful of American ji-
ernment, lighter regulation they are unhappy—but it finds coalition could are open to the same bread- hadists have emerged as serious actors at the global level. An-
and lower taxes. The rise of they are specifically unhappy cost Clinton the and-butter Republican appeals war al-Awlaki, the cleric from Falls Church, Va., who was once
Donald Trump and his free- with President Obama and a that work with the white mid-
market heresies (high tariffs, federal government that does November election. dle class.
universal health care, etc.) not provide them value for For Republicans, the in- Somewhere between mentally unstable
only proves it. their tax dollars. tense middle-class dissatisfac- drifters and the superstars of global jihad are
Maybe. Mr. Goeas puts it this way: priorities are jobs, reducing tion represents a tremendous
There’s no doubt middle- “The middle class believes the health-care costs, a govern- opportunity. While it’s true lone wolves like the San Bernardino killers.
class Americans are frustrated rich get the benefits, the poor ment that lives within its that Donald Trump has
these days. Which is what you get the programs and they get means, and tax reform. tapped into it with his talk of
might expect in an economy stuck with the bill.” How different this is from standing up for the Average a go-to source for outlets like the Washington Post, became a
that is growing at an anemic Which points to Mrs. Clin- Mrs. Clinton’s pitch, promising Joe and making America major international force in al Qaeda. He was one of the most
2%. Still, if middle-class anxiet- ton’s dilemma. all manner of new government “great again,” he hasn’t of- dangerous terrorists to focus on attacks in the United States
ies will define this election, the Only 26% of middle-class initiatives—from making col- fered much to back it up until 2011, when he was killed in Yemen in a drone strike.
evidence suggests that Hillary Americans, according to this lege more affordable to build- except to say he’ll be a better Also in this category: David Coleman Headley, a DEA infor-
Clinton, still the presumptive survey, believe their children ing more roads and bridges to deal maker. The GOP would mant and father of four based in Washington, D.C., who con-
Democratic nominee, has the will enjoy a better quality of universal pre-K—that add up do well to appropriate his tacted Lashkar-e-Taiba, a jihadist group allied with al Qaeda,
most to worry about. life than they do, and this has to $1.1 trillion in new spend- rhetoric, but tie it to a policy on a trip to Pakistan in 2000. Headley played a major role in
That’s not the story line, soured them on the direction ing. Bernie Sanders only forces framework that emphasizes planning and orchestrating the 2008 Mumbai attack that
of course. In the dominant President Obama has taken her further down this road. government accountability, killed 166 people, including six Americans.
media narrative, the key to a the country. At the same time, Mrs. Clinton claims she’ll economic opportunity and Somewhere between the underworld of dazed and con-
Hillary victory in November Mr. Obama remains highly pay for it all by soaking the upward mobility—just as fused drifters and the superstars of global jihad is a middle
will be her ability to turn out popular with the Democratic rich. But however disen- House Speaker Paul Ryan is group: lone wolves like Army Maj. Nidal Hasan, who killed 13
the Obama coalition—minor- coalition that elected him. chanted the middle class may trying to do in Congress. people at Fort Hood, Texas, in 2009. Often self-radicalized
ity voters, female voters, Mrs. Clinton’s pickle is that be about the Republican re- If Mr. Goeas is right, the through a combination of embittering personal experiences
young voters—in the same the agenda that works well cord of the past decade, the soft underbelly of Mrs. Clin- and exposure to online jihadist materials, these people pose
numbers that elected our with the Obama coalition Ripon findings suggest they ton’s current campaign for the most complex problem for law enforcement. Mr. Bergen
first African-American presi- turns off the middle class. simply do not believe Big Gov- president is that she has aban- argues that, thanks to improved analytic methods, the FBI is
dent in 2008 and secured a True, the survey finds 69% ernment is the answer. doned the Bill Clinton model getting better at identifying which individuals pose the great-
second term for him in 2012. of the middle class saying the And why not? Over the that was attractive to the mid- est threat. Unfortunately, as he notes, when terrorists main-
In a nation whose electorate federal government is not past seven years, middle-class dle class for the Barack Obama tain “good operational security,” as Tashfeen Malik and Syed
is growing more diverse, the doing enough for them. But Americans have endured a model that is now turning Rizwan Farook did in San Bernardino, Calif., they can escape
thinking goes, the White digging deeper, it finds that president who consciously set them off. detection with horrifying consequences.
House is increasingly moving more than two-in-three voters out to transform the nation. Write to [email protected]. When it comes to thwarting homegrown terrorism, Mr.
Bergen identifies and defends what he sees as the sane mid-
dle ground that, in his view, this White House has mostly oc-
Why I’m Becoming a Psychiatrist cupied. Rash law enforcement, he warns, can undermine civil
liberties and alienate those Muslim communities in the U.S.
who provide many of the most important warnings about po-
By Nathaniel P. Morris dency, its pervasiveness has frustratingly slow, especially health-care providers. Accord- tentially violent individuals. But public perceptions of the
A
astonished me. for chronic mental illnesses ing to the Department of danger from jihadist terrorism have a deeper foundation than
s a fourth-year medical Residency programs assure like schizophrenia and bipolar Health and Human Services, Mr. Bergen seems to acknowledge. As he notes, ill-timed re-
student, I’m often asked applicants that psychiatry is disorder. Still, millions of the U.S. needs at least 2,800 assurances from the Obama administration that jihadist ter-
by friends and family “respected” at their hospitals. Americans live healthier, more more psychiatrists to address rorism had been contained, or that ISIS is a “junior varsity”
what kind of medicine I want It’s “just like any other depart- productive lives due to a new the current shortage. group, have undermined the public’s confidence. Combine
to practice. When I say psychi- ment.” Yet the need to even generation of medicines and There are many ways to fix that concern with the chaos spreading throughout the Middle
atry they struggle to answer say this speaks volumes. Do therapies. And scientific this problem. Congress could East, and the danger seems real enough.
politely. “Really?” is a common orthopedic surgery applicants breakthroughs, like the recent approve federal funding for Yet Mr. Bergen insists that jihadist terror, unlike the exis-
reply. Friends have asked why I worry about being “respected”? discovery of potentially key additional slots in psychiatry tential crises of the Civil War, World War II and the Cold
would “throw away” my medi- Do ophthalmologists’ friends genetic traits behind schizo- residencies. Reimbursement War, is “not such a threat.” Jihadists have not gotten their
cal education. Some ask if I’m and family suggest they do phrenia, promise new treat- incentives might attract clini- hands on WMDs; since 9/11 they have not managed another
going to turn into Freud and something else? ments in the future. cians to the field. The White high-profile attack in the U.S. And improved security mea-
analyze their dreams. Others Too often, the skepticism is So let me make a case for House recently promised $500 sures are making the U.S. safer by the day.
have questioned whether psy- based on the clichéd image of psychiatry. According to NAMI, million to increase access to One hopes that Mr. Bergen is right: Lone wolves will re-
chiatry has a scientific basis. the psychiatrist as a Freudian nearly 44 million Americans mental-health care. Let’s hope main a danger, yet the risk from self-radicalized actors with-
We’ve made great strides analyst listening to a patient suffer from mental illness in a that includes recruiting more out access to the resources of large terror groups is unlikely
against mental-health stigma, during weekly sessions that given year. Suicide is the 10th providers. to rise to the level of strategic threat. But as Americans ob-
largely due to the work of or- continue for years. That psy- leading cause of death in the But money won’t solve ev- serve events like the Paris attacks, as they read about women
ganizations like the National choanalytic model is fading in U.S., killing more than 42,000 erything. If we are serious and children being openly sold in Syrian slave markets and Is-
Alliance on Mental Illness an era when psychiatric prac- people yearly. Depression and about improving mental-health lamic State gleefully burning prisoners alive, they wonder
(NAMI), as well as political ef- tice has shifted toward phar- anxiety are among the top con- care, we need to embrace psy- whether the Obama administration really understands the
forts for mental-health parity. maceutical treatment and lim- tributors to disability. But with chiatry as part of the interdis- convulsions sweeping through the Islamic world and whether
But too much stigma persists. ited therapeutic interventions. proper diagnosis and treat- ciplinary future of medicine, what we are seeing now is the full fury of the storm or merely
And as I’ve learned in medical The mistrust also stems ment, many patients are able rather than look down on it as the first scenes of a drama still to unfold.
school, this stigma doesn’t from our poor understanding, to overcome these illnesses. a relic of the past.
just affect patients. It also even in the 21st century, of Yet as this newspaper has Mr. Mead is a professor at Bard College and a distin-
affects providers. During my how the brain works. Develop- reported, the U.S. suffers from Mr. Morris is a student at guished scholar in American strategy and statesmanship at
interviews for psychiatry resi- ing new treatments has been a severe shortage of mental- Harvard Medical School. the Hudson Institute. Follow him on Twitter @wrmead.
A12 | Tuesday, February 2, 2016 * ***** THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Trumped in Iowa Europe’s Secularism and Response to Islam
T
he American political revolution ap- and soft-spoken style, he faded amid staff tur- William McGurn speaks of attacks to protect us, while telling all new-
pears to be exaggerated. Iowa Republi- moil and unsteady debate performances. on Europeans including Jews and comers that they must accept our way
women and states “increasingly it of life or find someplace else to live.
cans played to their social conserva- No other GOP candidate came close to dou- [Europe] cannot protect its own citi- ANDREW J. MACDONALD
tive form Monday by vaulting ble digits, which means New zens” (“Europe’s Feckless Secularism,” Fanwood, N.J.
Ted Cruz to victory over Don- Cruz and Rubio are the Hampshire will be make-or- Main Street, Jan. 26). The sentence
ald Trump in their first-in- big GOP winners, while break for them. Jeb Bush, should read: “will not.” The ability of American liberalism has instituted
the-nation caucuses, while as Chris Christie and John Ka- any worthwhile police force to stop a a de facto laïcité, in which any dis-
we went to press Democrats Hillary shows weakness. sich will have to climb past mob attack on women is beyond ques- senting discussion or debate about Is-
were narrowly turning back Mr. Rubio or Mr. Cruz to keep tion; the problem is that European lam, including head scarves and
Bernie Sanders’s populist going past the Granite State elites, as in the U.S., have more sym- burqas, ironically applauded by femi-
challenge in favor of Hillary Clinton’s interest- with any credibility. Messrs. Santorum and pathy for criminals and terrorists nists, is disallowed in the public
group machine. Huckabee, with their failure to replicate their than they do for the rest of us. square.
He goes on to speak of America’s VINCE SKOLNY
The night’s biggest loser, to borrow a word, previous Iowa victories, are all but finished
embrace of a “declaration of self-evi- Los Angeles
was Mr. Trump, who in the end couldn’t turn this year. dent truths about man and the divine
his large crowds and polling leads into enough i i i source of his unalienable rights.” It’s Look at Germany: For decades it
caucus voters. There’s no doubt the New York The close Democratic contest shows Mrs. true that a wide spectrum of the has allowed Muslims to live according
businessman helped to generate higher turn- Clinton’s weakness as a candidate, but it also American polity once embraced these to their religion, with the result being
out, which broke recent caucus records for Re- reveals that the Democratic Party’s most “self-evident truths.” Sad to say, we that in Berlin—the largest Turkish
publicans. But perhaps he should have attended powerful interest groups can still unite live in a time when one political city outside of Turkey—large neigh-
that debate last week after all, or maybe there against a progressive populist. The former party has embraced a militant nihil- borhoods (Neukölln) have become no-
are limits to his unconventional media-domi- Secretary of State deployed all of these ism that scorns God, religion and re- go zones for Germans, and are ruled
nated, celebrity politics. forces—the public unions and the women’s ligious believers while precious few by Shariah law. The Germans have
Mr. Trump still leads in the New Hampshire groups—against Bernie Sanders’s youth bri- in the GOP will speak up in defense moved out.
of religious liberty. The result of tolerating “Muslims
polls, but one question is how he will respond gades in a caucus state where organization
Mr. McGurn goes on to say that living according to their faith” is the
to the uncomfortable reality of second place. is paramount. Even President Obama publicly “American secularism does not re- creation of a parallel society that does
His speech on Monday night was, to borrow an- tilted toward her in the final days. quire people to deny their religious everything to not integrate into a so-
other phrase, low-energy. The former first lady will now try to present identities to be good Americans.” Is he ciety they, per their faith, explicitly
Instead Mr. Cruz prevailed like Mike Hucka- an air of inevitability as she attempts to cut into serious? Tell that to Kim Davis and despise. It is outrageous to suggest
bee (2008) and Rick Santorum (2012) by mobi- Mr. Sanders’s big lead in New Hampshire. And countless numbers of small-business that Germans should accept living by
lizing the state’s cultural conservatives into a Mr. Sanders will be hard-pressed to stop her in people who have been fined or driven the Muslim belief that non-Muslims
28% plurality. The first-term Texas Senator had other states unless he can appeal to more core out of business by a dubious “law” as are second-class citizens—in Germany.
the support of Iowa’s conservative pastors, he Democratic constituencies than young people defined by the courts. The author suggests to not obsess
spent months organizing across the state, and and the white gentry left. He’ll need scores of He wraps it up with a reference to on head scarves but to give de
his campaign invested heavily in voter analyt- black support in South Carolina, while Las Ve- Elizabeth Winkler’s proposal for Eu- Tocqueville a try. Yet Germany allows
rope in general, and France in particu- female Muslim teachers in public
ics. The Texan also passed the first test of his gas unions dominate the Nevada caucuses. He lar, to give up the practice of laïcité. schools to wear head scarves, while
theory that he can win the GOP nomination, has the money to compete for many weeks, but By so doing, we are told that the Mus- German female teachers have to toler-
and then the Presidency, with a hard-edged he’ll need victories to stay credible. lims who are doing so much damage ate sexist Muslim male students tell-
conservative message. Iowa shows that Mr. Sanders’s biggest ob- to the fabric of Europe will “feel more ing them: “You can’t tell me anything,
The question going into New Hampshire and stacle is that while many Democrats have accepted and less stigmatized by the you are just a woman.” When a
beyond is whether Mr. Cruz can expand his co- doubts about Mrs. Clinton, as well as the country they have made their home.” I teacher requests a consultation with
alition beyond the most conservative voters. Obama economy, they are also more serious don’t worry about “head scarves and parents, Muslim mothers don’t show
The entrance polls showed he did less well than about holding the White House than they are burqas,” but I do worry about some up and Muslim fathers often refuse to
both Mr. Trump and Marco Rubio among voters about making a statement. Democratic interest disaffected members of one of the talk to female teachers.
who said they were somewhat conservative or groups depend far more than Republicans do world’s religions screaming “Allahu In this sense, Germans gave de
akbar” when I get off the train in New Tocqueville a try and have had to
moderate. Mr. Cruz also trailed both men among on the favors of government, so holding power
York City’s Penn Station. learn the hard way that free religion
voters who said they cared about the economy is paramount. A 74-year-old self-avowed social- The problem isn’t secularism versus can be the enemy of liberty.
and jobs. To win the nomination, Mr. Cruz will ist who thinks ObamaCare didn’t go far enough religion, but an unwillingness of MONIKA REYNER
need to broaden his support beyond the Mark is a political risk many Democrats still don’t America’s and Europe’s ruling classes Seminole, Fla.
Levin-Glenn Beck radio audience. want to take.
Mr. Rubio was arguably the night’s second- Mr. Sanders may also have to make a deci-
biggest winner with his strong third-place fin- sion about how much to mention the FBI inves-
ish at 23%, close behind Mr. Trump’s 24%. He tigation into Mrs. Clinton’s mishandling of clas-
Ted Cruz Values a Lot of the Things We Value
won a plurality of late deciders according to sified information on her private email server. Regarding Bret Stephens’s “What I share some of Mr. Stephens’s pes-
the entrance polls, which suggests that he be- If the FBI recommends a misdemeanor or Ted Cruz Values” (Global View, Jan. simism but given the real state of the
came the choice of mainstream conservatives worse, there will be an uproar even if Attorney 26): I am a very conservative voter, union, Ted Cruz represents a real
and I will vote for the eventual GOP change of direction. Whatever he does
who were looking beyond the Trump-Cruz General Loretta Lynch declines to act on it. Mr.
presidential nominee, whomever it is. can’t be worse than the path we are
slugfest. The first-term Florida Senator did es- Sanders has to let Democrats know that in Mrs. I am tired of the GOP voters who stay on now. To be successful, he must ap-
pecially well among voters who said they are Clinton they could be elevating a very wounded at home on Election Day because the peal to less sophisticated and demand-
looking for someone who can win in November. nominee. nominee isn’t conservative enough, or ing Americans than Mr. Stephens.
His speech Monday almost sounded like a vic- As for Mrs. Clinton, the family pattern has took money from this person or that Among the current candidates one
tory statement, and its inclusive conservatism been to tough these controversies out, dismiss super PAC, or changed his or her posi- doesn’t find the ideal package, so one
was clearly intended as a contrast to Mr. Cruz’s incriminating evidence as GOP partisanship or tion on some issue. Not showing up must decide what one most wants and
explicitly polarizing politics. media malpractice, rally the Democratic inter- on Election Day because the nominee choose from an imperfect group. Play-
Ben Carson finished a distant fourth at est groups to muddy the details, and hope Re- doesn’t fulfill your profile of an ideal ing Diogenes is a cop-out.
about 9% and the neurosurgeon may ask him- publicans nominate a candidate even more candidate is a losing strategy (see JOHN PEGG
self what might have been if he had organized flawed or disliked than she is. On Monday’s evi- Mitt Romney and John McCain). The Spokane, Wash.
object of the entire GOP tent should
his campaign better from the start. Once ahead dence in Iowa, Democrats can’t be sure this be to win the presidency, giving one I am a Ted Cruz supporter. I agree
in the Iowa polls with his non-political appeal year that Republicans will play along. at least four years to convince the that he used one wrong word—he
president and Congress to work on should have called Donald Trump a
Gilead and Biden’s Cancer Campaign laws favorable to your stand on par-
ticular issues.
“New York liberal,” rather than refer-
ring to “New York values.” If he had
J
If folks like Mr. Cruz continue to di- gotten that word right, he would have
oe Biden is leading a White House “moon- side effects. Pharmaceutical list prices are sig- vide the GOP and polarize groups of been accurate. Mr. Trump is at best a
shot” to cure cancer by 2020, and good for nificantly discounted in negotiations between supporters, they will never convince Nelson Rockefeller Republican.
him. Along the way maybe he can warn his private insurers and government, often by more enough independent-minded voters DONALD W. LARGE
fellow politicians to stop un- than half, and the Hep C mar- that the GOP presidential nominee is Green Valley, Ariz.
You can’t make medical ket is highly competitive. capable of leading this country out of
dermining medical advances
the mess that President Obama and Any solid conservative knows Mr.
with price controls. progress by punishing ketSince Sovaldi hit the mar- the progressive left have made for the Cruz, in his dismissal of “New York
The latest offender is in 2013, four other Hep C last seven years. values,” was referring to those in New
Maura Healey, who is threat- medical advances. cures have come to patients, To Mr. Cruz I say: Aim your fury at York City who chased away Wal-Mart
ening to sue Gilead Sciences including Merck’s Zepatier, Hillary and Bernie, play to win the and its hundreds of jobs, and those in
for having all but cured Hepa- which received Food and election with the “most conservative Albany who outlawed fracking and its
titis C. The Democratic Attorney General of Drug Administration approval last week. candidate who can win” (as William F. numerous economic benefits. I, and
Massachusetts claims the prices of the drug Merck’s opening list-price bid for Zepatier is Buckley said), and then try to make millions like me, support Sen. Cruz
maker’s medicines Sovaldi and Harvoni “may about 40% below the competition as it tries to policy changes using the system and and embrace his values and traditional
constitute an unfair trade practice in violation gain market share. our American political process. conservatism.
of Massachusetts law.” Political drive-by shootings like Ms. Healey’s MARK PETRUS PATRICK J. CALLAHAN
Homewood, Ill. Southampton, Pa.
Ms. Healey never cites a specific Massachu- are increasing even as the prices for Hep C
setts statute in her sternly worded Jan. 22 let- drugs plunge. Last month more than 50 House
ter, and she later suggests that Gilead is violat- Democrats demanded that the National Insti-
ing consumer protection laws, so the legal tutes of Health invoke so-called “march-in
risks are probably nonexistent. The intimida- rights” to break drug patents in order “to dis-
Obama Rescues Cuba as Venezuelan Aid Fails
tion tactic is more notable for its political and courage price gouging.” Hillary Clinton and Ber- Regarding Mary Anastasia Obama had not dropped Cuba such a
moral illogic. nie Sanders have made drug prices a dominant O’Grady’s “North Korea’s Cuban timely lifeline, this might have
The AG is careful to praise innovation, which campaign theme, and even Republicans like Friends” (Americas, Jan. 11): She con- brought the Castro brothers’ regime
she calls “incredibly important,” and she says Donald Trump are joining in. nects the dots between Cuba and to an end and done more for the Cu-
companies that develop breakthrough treat- This political assault signals to drug makers North Korea, to which I would like to ban people than anything in the last
ments “should be generously rewarded.” But that the patent rules could change at any mo- add dots between Cuba and Venezu- 90 years. When President Obama is
ela. Think about the condition the adding to his shallow legacy, he is
she adds that “especially in a case like this one ment, adding to investment uncertainty. Suc- Castro regime would be in today if blind to other consequences.
where the breakthrough drug cures, a balance cessful medicines emerge from years of expen- President Obama had not recognized HAL DANTONE
must be struck that allows the drug to achieve sive failure, and “footing the bill” for industry it when he did. Cuba depended on Houston
its intended purpose: the effective treatment— profits is the incentive to keep searching despite money and oil from Venezuela before
and achievable eradication—of a life-threaten- the odds. It’s true that patients don’t benefit the price of oil dropped, but now Ven-
ing infectious disease” (emphasis hers). In- from drugs they can’t afford, but neither can ezuela is struggling and likely not giv- Silence When There Really
stead, “taxpayers across the country have been they benefit from drugs that don’t exist. ing away so many freebies. If Mr.
Is a Major War on Women
footing the bill for Gilead’s record profits.” i i i
In other words, if Gilead had merely created As for Mr. Biden’s cancer moonshot, the aspi- Regarding Bret Stephens’s “The
another incremental treatment, no one would ration is well-meaning and arrives at a rich sci- Mark Twain on the Prospect Cologne Portent” (Global View, Jan.
12): Isn’t it interesting that when
have cared: As recently as 2012, before Sovaldi, entific moment reminiscent of the early days Of Real Government Reform there is a real war on women like the
Hep C was a life sentence to take debilitating of the digital revolution. Fields like immuno- In his review of Trent Lott and brutality in Cologne, Hillary Clinton
but ineffective immune-weakening drugs that therapy, genomics, angiogenesis and computa- Tom Daschle’s “Crisis Point” (Book- and her liberal allies stay silent. Lib-
didn’t prevent liver failure and premature tional biology could be poised to make step- shelf, Jan. 21), Mark Salter points out eral multicultural fantasies always
death. But because Gilead’s medicine can cure change advances. But Mr. Biden would best that the authors, two career politi- win out, and made-up problems al-
the condition for 97% of patients, Ms. Healey serve his goals by bridling his colleagues. cians, argue that what is needed to ways displace real issues in the pro-
says it deserves political harassment. The Apollo program was a triumph of phys- bring about comity and consensus in gressive political agenda.
Ron Wyden, the ranking Democrat on the ics and engineering, and human biology is far Washington is “chemistry, compro- PETER PRASTHOFER
Senate Finance Committee, applauded Ms. Hea- more complex than rocket science. We now mise, leadership, courage and vision.” The Woodlands, Texas
ley “for challenging Gilead’s decision to put know cancer is hundreds of heterogeneous dis- These attributes should thus deliver
profits before the well-being of people with eases defined by the growth and spread of cel- programs, policies and progress for Letters intended for publication should
all the country. Perhaps so, but I be addressed to: The Editor, 1211 Avenue
hepatitis C across the nation.” We wonder if pa- lular mutations, and the study of tumors re-
would rather stick to Mark Twain’s of the Americas, New York, NY 10036,
tients cured by Solvaldi want to return to their mains uncertain, contingent and fragile despite observation: “No man’s life, liberty, or emailed to [email protected]. Please
previous therapy. its potential. Mr. Biden’s moonshot is less likely or property is safe when the legisla- include your city and state. All letters
To repeat for the freshmen, Sovaldi’s to succeed if the political class continues to ture is in session.” are subject to editing, and unpublished
$84,000 list price is comparable to other Hep demonstrate how little they value scientific JOSEPH C. HUNTER letters can be neither acknowledged nor
returned.
C regimens, albeit with better results and few progress. Colorado Springs, Colo.
OPINION
China’s Economic Hinge Point

By Andy Kessler see turbulence and search for waves 50% today. Investment followed a there are ways to change course, “wants insurers to play a greater role
C
they can surf to success. Look closely similar trend. Household consump- hopefully without blowing up the by supplying corporate pensions and
hina sneezed and the world and it’s clear that China’s economy of tion dropped from 70% of GDP in global economy. health insurance, establishing a
caught double pneumonia. 1.4 billion people is undergoing a seis- 1962 to 50% in 1980 to around 35% The first step is crack down on catastrophe insurance system; and
So far in 2016, oil prices and mic shift—from top-down infrastruc- today (it is 70% in the U.S.). That’s corruption, which would help slow improving agriculture and infrastruc-
global markets have taken a ture investment to a more consumer- how you self-fund a build-out. down infrastructure spending. Make ture.”
pounding as China’s econ- driven economy, moving from And it worked. According to Cana- it harder to keep building four-lane This trend toward consumerism is
omy slows. The Dow is down 6%, and concrete to cars, cellphones and other dian analyst Vaclav Smil, China highways to places no one visits. already under way—China’s big cities
the Shanghai Composite lost 24% in consumer goods enjoyed by developed churned out more concrete in three This process has already begun. are plastered with ads for Porsche,
January. Plus, the yuan has plummeted economies. Over the next several years (2011-14) than the U.S. did in Banks are being told not to continue Gucci and Apple products. Some 600
to a five-year low. And now Donald years, investors would be wise to fo- funding dead-end projects. Since million Chinese have smartphones.
Trump wants to whack Chinese ex- cus on Chinese consumers buying 2012, according to the China Daily, Uber and local Didi Kuaidi are bat-
ports with a 45% tariff. Is the Great goods and especially services (insur- Look beyond the unsettling some 270,000 officials have been tling it out to offer rides. Airbnb is
Boom of China finally ending? ance, car rides, vacations). charged with corrupt activities— booking spare rooms. WeChat, Ali-
There’s certainly evidence to say You have to go back to the Asian news out of Beijing lately even a member of the Politburo baba and others are enabling mobile
yes: The Shanghai stock index is currency crisis of 1997-98 to under- and behold the stirring Standing Committee, a position akin purchases as most cities don’t have
down 48% from its June peak. The stand today’s slowdown. China’s lead- to the president’s cabinet. an equivalent of a Wal-Mart or large
World Bank recently cut its forecast ers knew they had to continue of the Chinese consumer. Then there’s trade: China still retail stores. The trick is spreading
for China GDP growth to less than modernizing; even simple things like needs to keep its job-growth engine this desire to spend instead of save to
7%, the lowest since 1990. Corruption roads and sewer systems were still firing on all cylinders. As construc- smaller cities and more remote
is rampant and the authoritarian lacking. They had watched neighbors the entire 20th century. Aging tion employment stagnates, manufac- regions where there is less wealth
instinct to shut down markets when South Korea and Thailand and Malay- Hutong residences are disappearing, turing and logistics—major strengths and old habits die hard.
they falter has spooked investors. sia go under and crash their curren- replaced by 50-story high-rise apart- of the Chinese economy—must con- Transitions are tough and often
Meanwhile, the global commodity- cies trying to pay back massive ments—many of which stand empty. tinue to grow. China may have chosen harsh, and China’s will be no excep-
price bloodbath—with oil at $32 a dollar-denominated debt used to To fund all this, China is 106th glob- to stay out of the Trans-Pacific Part- tion. Government interference will
barrel—has been blamed on China’s upgrade their own infrastructure. So ally in household consumption at nership—largely due to the flurry of surely make matters worse. China’s
slowdown. The recently reached instead of borrowing from abroad, $3,900 per capita, behind Swaziland labor and environmental standards stock prices may fall further, as
Trans-Pacific Partnership trade China’s leaders encouraged workers but ahead of Algeria—and about 10% pushed by the Obama administra- Chinese banks are filled with junk
agreement excludes China, with Pres- to emphasize saving over shopping, of the figure for the U.S. tion—but that doesn’t mean Beijing loans and the economy may be sink-
ident Obama saying last fall that “we which helped build more housing, Chinese leaders are trying desper- can’t ramp up trade and exports while ing into a recession. Many state-
can’t let countries like China write highways, airports and trains. ately to steer spending in a new it waits to see how the TPP pans out owned companies are flailing and
the rules of the global economy.” Sure enough, China’s savings rate direction, but it isn’t easy to turn a for others (assuming the U.S. Con- need to be privatized. But while
Ugly, for sure. But savvy investors rose from 32% of GDP in 1980 to $10 trillion economy on a dime. Yet gress ever gets around to voting on everyone else scours the latest news
the deal). Putting final-assembly proj- over the GDP numbers and the
ects in Vietnam, Malaysia and else- Shanghai stock index, look closer: On
Obama’s Latest Lifeline for Unions where is a good place to start.

The lack of a social safety net is a
big challenge to boosting consumer
Sunday came the announcement that
China’s purchasing managers index
had fallen for the sixth straight
By Diana Furchtgott-Roth it “could seriously undermine both substantial, and failure to comply spending. Most workers lack retire- month—but consumer retail sales in
T
the confidential client-lawyer rela- could lead to criminal sanctions. ment or pension plans. So a good way China were up 10.7% last year. The
he Labor Department is about tionship and the employers’ funda- The larger context of this pro- to spur spending is to assure them Chinese consumer is waking up.
to give organized labor a mental right to counsel.” The report- posal, which was first proposed in that their retirement is secure. The
boost by tilting the law ing requirements “could very well 2011, is plain. As the Labor Depart- powers that be seem to understand Mr. Kessler, a former hedge-fund
against business. It is proposing a discourage many employers from ment reported last week, union this: According to the Asian Insur- manager, is the author of “Eat
new rule, due out in March to take seeking the expert legal representa- membership has declined by 1.3 per- ance Review, the Chinese government People” (Portfolio, 2011).
effect before summer, that will tion that they need,” which “might centage points during President
require companies to make public have the unintended consequence of Obama’s tenure. To reverse the
Notable & Quotable: ‘Downton’

the names of the outside attorneys increasing the number of employers decline of this important political
and consultants that give them who, without advice of counsel, would constituency, the administration
advice on unionization. These attor- engage in unlawful activities.” seeks to cripple the ability of firms
neys and consultants, in turn, would The rule requires three forms to be to present reasons their workers From a recent episode of the tele- consider my duty to resist. . . .
have to make public all the other filled out, one by employers (Form might vote against union representa- vision show “Downton Abbey”: The point of a so-called great
clients they help with union matters, LM-10) and two by lawyers and con- tion. This strategy is unfair to family is to protect our freedoms.
and how much they charged these sultants (LM-20, the agreement with employers and the workers the ad- Dowager Countess of Grantham That is why the barons made King
clients. the employer, and a new, modified ministration purports to represent. (Maggie Smith): For years I’ve John sign Magna Carta. . . .
LM-21, listing their labor-relations watched governments take control Lady Rosamund (Samantha Bond):
clients and all receipts). The Labor Ms. Furchtgott-Roth, a former of our lives, and their argument is Mama, we’re not living in 1215. And
A costly new federal rule Department says the LM-10 and Labor Department chief economist, always the same—fewer costs, the strength of great families like
LM-20 would cost about $826,000 is director of Economics21 at the greater efficiency. But the result is ours is going, that’s just fact.
will hinder firms’ ability annually. This is absurdly low. Manhattan Institute and the author the same, too. Less control by the Dowager Countess of Grantham:
to tell workers about the The Labor Department estimates of the Institute’s report, “The High people, more control by the state, Your great-grandchildren won’t thank
that it would receive forms from 3,414 Costs of Proposed New Labor Law until the individual’s own wishes you when the state is all-powerful
drawbacks of unionizing. employers and 2,601 advisers. Em- Regulations.” count for nothing. That is what I because we didn’t fight.
ployers would spend two hours a year
completing their LM-10, and advisers
The rule would deter many if not would spend one hour completing
most outside attorneys and consul- their LM-20. However, the depart-
tants from offering their services to ment’s estimate of employers repre-
companies facing a unionization sents about half of 1% of the 5.73
drive. The burden will fall heavily on million U.S. firms, and the new rule
small businesses that do not have the applies to any firm that faces a union
in-house staff of large corporations. drive or questions on labor matters.
The rule does not apply to consul- The total number of advising firms
tants offering advice to unions. And estimated by the Labor Department,
the rule overturns more than a half- 2,601, is far below the Census Bu-
century of legal interpretation under reau’s 6,461 human-resource consult-
the Labor-Management Reporting ing firms and 165,435 law firms.
and Disclosure Act of 1959. Law firms and employers might
The broad goal of the LMRDA was spend one or two hours a year filling
transparency. That goal included a in the forms. But an employer would
requirement that employers report need far more time calculating what
the names of consultants who information—such as whether a
directly address their employees, so particular company qualifies as a per-
that these employees know who the suader—to add to the form. Suppose
consultants actually represent. a firm puts in a gym at the same time
But employers never have been as a rival is unionized. The gym could
required to report the names of con- be construed as an attempt to fend
sultants who do not interact with off a union drive and the designer
employees. Section 203(c) of the could qualify as an adviser—and be
LMRDA has an exemption, known forced to declare its other clients.
informally as the “persuader rule,” Using a more realistic number of
which states: “Nothing in this section firms and hours of compliance, I es-
shall be construed to require any timate that costs would be between
employer or other person to file a $7.5 billion and $10.5 billion in the
report covering the services of such first year, and between $4.3 billion
person by reason of his giving or and $6.5 billion in future years. But
agreeing to give advice to such my estimate is too low, because it
employer.” does not include the potential legal
The Labor Department claims the costs if there are reporting errors in
persuader rule needs changing because the forms.
“the distinction between activities The Office of Management and
properly characterized as ‘advice’ and Budget won’t even begin estimating
those that go beyond ‘advice’ has not the cost of the LM-21 until Septem-
been made clear.” Apparently, if an at- ber. But without this estimate the
torney or consultant writes a speech Labor Department cannot calculate—
PORTABLE
for a CEO who delivers it to his work- as it is legally required to do—the to-
ers, this is the same as the attorneys tal costs of the new rule. Before the
or consultants giving the speeches, Labor Department finalizes the new
which somehow pulls the wool over rule, it should wait for OMB to esti-
PERSPECTIVE.
workers’ eyes. mate the costs of the new LM-21
The American Bar Association op- form. The stakes are high. The report-
poses the new rule, commenting that ing obligations of the new rule are
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CITY NEWS A16, A17 | THEATER TUESDAY A18 | HEARD & SCENE A19 | SPORTS A20
Yankees’ Bird
Out for Season A Rat With a View
SPORTS | A20 How animals see New York City ARTS | A19
WSJ.com/NY * * * * THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | A15
Connecticut Deficit Returns

Legislature convenes The deficit has reared its the State address. The gover- than-expected revenues from
head again because a two-year nor will lay out his budget pro- the income and sales tax.”
Wednesday to tackle budget plan approved last posal. He also has called for The coming shortfall isn’t
$560 million shortfall; June, which raised taxes by changes to the state’s criminal- as large as the $3.6 billion def-
$1.17 billion, fell short of ex- justice system and a constitu- icit that Mr. Malloy had to ad-
Malloy nixes tax hikes pectations. Gov. Dannel Mal- tional amendment to protect dress in 2011, his first year in
loy, a Democrat, has ruled out transportation funds. office. And this year’s gap is
BY JOSEPH DE AVILA further tax increases to cut the Democrats in the Legisla- about 3% of the state’s overall
deficit. ture say Connecticut’s econ- $18.7 billion budget.
Another legislative session, “We are in a very difficult omy has been on the mend, “It’s not that large a per-
another looming budget defi- position fiscally,” said Benja- adding 111,600 private-sector centage, but it is a challenge,”
PATRICK RAYCRAFT/ASSOCIATED PRESS
cit. min Barnes, secretary of the jobs since the financial down- said Senate President Martin
As Connecticut lawmakers state’s budget office, at a bud- turn, according to the state La- Looney, a Democrat.
return to Hartford on Wednes- get forum last week. “Our abil- bor Department. Those jobs, Republicans blame state
day, they must contend with a ity to accomplish some of the however, haven’t provided the Democrats, who control both
$560 million budget gap for things that we all would like to same level of compensation as houses in the Legislature, for
the coming fiscal year, which accomplish is extraordinarily those before the recession, the new deficit, citing insuffi-
begins July 1. It was only in limited.” said House Speaker Brendan cient cost-cutting. “It’s no
December, during a special The budget is likely to dom- Sharkey, a Democrat. shocker why we are where we
legislative session, that they inate discussions on Wednes- “We live in a difficult econ- are,” said Senate Minority
eliminated a $350 million defi- day, the day that Mr. Malloy is omy postrecession,” Mr. Shar- Leader Len Fasano, a Republi-
Gov. Dannel Malloy gives his State of the State speech Wednesday. cit for the current fiscal year. scheduled to give his State of key said. “That means lower- Please see SESSION page A16
Keep On Trucking
Broadway Fans
Being Blocked
At Box Office
BY PIA CATTON use of illegal software, the at-
torney general has recom-
It’s a question for theater, mended the imposition of
sports and music fans: “Why is criminal penalties.
it so hard to buy a ticket at On Broadway, the issue is
face value?” pressing when a hit show
STEVE REMICH FOR THE WALL STREET JOURNAL

As a new block of “Hamil- boosts demand, said Charlotte
ton” tickets goes on sale to the St. Martin, president of the
public Tuesday, the question Broadway League, the industry
becomes more urgent to trade group.
would-be buyers who may find The software hurts Broad-
themselves shut out. way because creative teams
The New York attorney gen- are cut out of the profits, she
eral’s office sup- said, and because consumers
THEATER plied some an- are duped into bad seats.
swers last week “[These bots] are the ones
with the release buying $59 rear-mezzanine
of a study, “Obstructed View: tickets and selling them for
What’s Blocking New Yorkers $750,” said Ms. St. Martin. BUSY MORNING: Tractor-trailers jammed the Port of New York and New Jersey early Monday to get into container terminals
from Getting Tickets.” For frequent Broadway-go- that were closed late last week during a walkout by unionized dock workers. Traffic, above, had eased by the afternoon. A17
The report focused primar- ers, the more visible issue is
ily on big-arena sporting that of fees added to ticket
events and pop concerts. While prices. According to the re-
Gap in Student Cost Riles New Jersey

most Broadway shows operate port, “high fees imposed for
on a far smaller scale, there unclear purposes” are imposed
are occasional breakout hits, by the three major online ven-
such as “The Book of Mormon” dors, Ticketmaster, TicketWeb
or “Hamilton.” And those and Tickets.com, averaging BY LESLIE BRODY Municipalities on Long Beach May, Seaside Park and Sea
shows can have theater fans 21% of the face value of tickets. New Bright are among many towns
Island send students in grades NEW York
facing the same struggles as The ticket vendor Broad- Terry Deakyne loves living seven through 12 to the Southern JERSEY City fighting to cut their payments
rock fans trying to see Bruce way.com recently listed a $165 on Long Beach Island, a sum- Regional School District, which to shared districts. Now the
Springsteen. ticket to “The Lion King” with mer haven at the Jersey Shore has schools in Stafford. PA. Trenton town of Oradell, in Bergen
a fee of $61.88, about 38% of where the number of families County, has a case before a
the face value. A $99 ticket to staying year-round has dwin- 72 state appellate court to reduce
Bots are ‘buying $59 “School of Rock” came with a dled over time.
BARNEGAT Area of
what it spends on the River
TOWNSHIP detail
rear-mezzanine $35.64 fee. Two of his children cross Dell Regional School District.
Fees vary according to de- the bridge to the mainland for Its outcome, expected this
tickets and selling mand factors such as the show, public school in Stafford
STAFFORD
year, will influence what other
TOWNSHIP
y.
kw
them for $750.’ seat location and day of the Township, like about 100 other districts do next.
eP
tat
week, said a Broadway.com teenagers on the island. The Southern Disparities in per-pupil
nS
spokesman. price that Long Beach Town- Regional HARVEY costs surge when the local mix
rd e
High School CEDARS

Ga
The most important issue Ticketmaster tacks on a ship shells out annually for of wealth and population
for theater in Attorney General varied percentage fee as well, their education: more than LONG BEACH shifts dramatically. Long
EAGLESWOOD ISLAND
Eric Schneiderman’s report is plus a $3.20 order-processing $200,000 per student. Beach Island is an extreme ex-
TOWNSHIP
the proliferation of bots, the fee. Telecharge, the ticket sys- To Mr. Deakyne, who owns SURF CITY ample. Together, its six munic-
2 miles 9
software used by ticket resell- tem owned by the Shubert Or- a surf shop, that is money well ipalities account for only 10%
ers to snap up tickets in vol- ganization, adds a $9.50 ser- spent, and he says his prop- THE WALL STREET JOURNAL. SHIPS BOTTOM of the students at Southern
ume at high speed, then sell vice fee per ticket and a $2.75 erty taxes aren’t that high. “It Regional School District, but
them at enormous markups. handling fee per order. In addi- takes a village to raise a cover 81% of the nearly $44
Tens of thousands of tickets tion, a $2 facilities fee is now child,” he says. same regional district. on Long Beach Island. “It’s a million raised by local taxes
each year are acquired by bots, standard for Broadway ticket But many island residents “You can educate a kid at huge issue and it’s only going for the district budget.
the report found, with the av- sales, typically included in face balk at what they see as an Harvard cheaper than you can to get worse.” On the mainland, Stafford
erage markup, among six bro- value. unfair burden, especially since across the bridge,” says Debo- New Jersey has seen a wave Mayor John Spodofora backs
kers studied, ranging between The Shubert Organization Stafford Township pays only rah Whitcraft, a former mayor of disputes over how to pay the current system and says
15% and 118%. Targeting the Please see TICKETS page A18 $3,621 per student for the of Beach Haven, another town for regional schools. Cape Please see PUPILS page A16
Winning Complicates 47° TODAY’S

Weather
Real Feel
Devils’ Rebuilding Job HIGH

9 a.m. 39°
5 p.m. 43°
Record High
BY ALEX RASKIN ils have scored just 2.24 goals
59° (1988)
a game, ranking 29th.
NEWARK—Some short- For most New York-area MOSTLY Sunrise/Sunset
sighted New Jersey Devils fans general managers, the math on SUNNY 7:05 a.m./5:15 p.m.
can be forgiven for believing this is simple: Mortgage the
that first-year general man- future for an elite scorer and a Wednesday’s High
ager Ray Shero is on the verge chance to win now.
of acquiring an elite scorer Shero’s legendary predeces-
57°
ahead of the NHL’s Feb. 29 sor, Lou Lamoriello, made
trade deadline. such a move six years ago
Entering Tuesday’s game when he traded three players N.Y. Sports Lineup
against the rival New York and a first-round draft pick to
Rangers, the surprising Devils the Atlanta Thrashers in ex- 7 p.m. Tuesday
were in a virtual tie with the change for superstar winger Rangers
Pittsburgh Penguins, Shero’s Ilya Kovalchuk. Kovalchuk pro- @ Devils
former team, for the final ceeded to sign a staggering 15-
wild-card spot in the Eastern year, $100 million deal with
Conference playoffs. They’ve New Jersey before abruptly 7:30 p.m.
GETTY IMAGES
allowed a paltry 2.28 goals a retiring from the NHL in 2013 Tuesday
game this season, fourth-best and returning to play in his Celtics
in the NHL. But things have native Russia. @ Knicks
been equally quiet at the other Lamoriello wasn’t necessar-
The Devils’ rebuilding process began with the hiring of 40-year-old head coach John Hynes, left. end of the ice, where the Dev- Please turn to the back page For N.Y. sports coverage, see A20
A16 | Tuesday, February 2, 2016 * * THE WALL STREET JOURNAL.
CITY NEWS
SESSION cludes widening Interstate 95,

repairing bridges and improv-
ing rail service.
The Senate approved a lock
Continued from page A15 box in December, but the
can. amendment failed in the House.
On Monday, Republicans The amendment needs a su-
called for a number of mea- permajority in the House to
sures to address long-term pass, requiring at least some
spending, including allowing Republican support. If the
the Legislature more say over amendment passes, it would go
labor contracts and stricter to voters in November.
controls on overtime at state House Minority Leader
agencies. Themis Klarides said she would
Mr. Looney called the Repub- support the legislation only if it
lican recommendations and also protected the revenue
criticisms of Democrats “a streams dedicated to transpor-
gross political stunt.” tation purposes, not just the
To help address the shortfall, money set aside in the lockbox
Mr. Sharkey said he wants mu- account.
nicipalities to find areas where The Malloy administration is
they can share services, such as also advocating for changes to
911 call centers, so they won’t the state’s criminal-justice sys-
be as reliant on state funding. If tem, including raising the mini-
those cities and towns don’t mum age a person can be tried
work out such agreements, Mr. as an adult to 21 from 18 and
Sharkey said he would push to lowering bail fees for people ac-
cut their state aid. cused of low-risk crimes.
Mr. Fasano said he opposed Mr. Looney, the Senate presi-
cutting state aid to cities and dent, said he supports those
SERCAN SEZGIN
towns if they don’t share ser- initiatives. Mr. Sharkey, the
vices. House speaker, said he needs to
Also on Monday, Mr. Malloy learn more about the proposals
renewed his push for a so- before taking a position.
called transportation lock box Mr. Fasano, the Senate mi- Murals by AVAF (Assume Vivid Astro Focus), a 2014 RxArt project, adorn a waiting room at La Clínica del Barrio in New York.
that would protect designated nority leader, said the gover-
funds from being spent on
anything else. He hopes to see
the lock box established before
Connecticut considers a mix of
nor’s bail-bond proposals have
merit. But raising the age for
juvenile offenders “raises a lot
of problems,” he said, by
Prescription for a Less Dreary Hospital
tax increases and highway tolls granting exceptions to those BY MELANIE GRAYCE WEST thropist, art collector and brated with Ms. Moore. Two Foundation. The other grant is
to pay for his $100 billion who are legally considered heiress who is better known days later, Ms. Moore was in support of a new healing
transportation plan, which in- adults in other matters. Is it possible to disguise by her nickname, Bunny. She struck by a van. garden at Children’s National
the sterile dreariness of a hos- had a talent for and love of “She was just a great Medical Center in Washington,
pital with art? horticulture; among her many friend and a great spirit,” said D.C., said Mr. Forger.
This was the problem Di- noteworthy projects, Mrs. Mel- Ms. Brown. Both donations, he said,
ane Brown set out to solve lon redesigned the White Ms. Moore had been essen- are a “natural combination” of
when she founded the non- House Rose Garden. tial in helping to develop the Mrs. Mellon’s interests in art,
profit RxArt 15 years ago and plan to put museum-quality healing and her daughter.
at the urging of her good art into hospitals. She enlisted Mr. Forger, who serves at
friend Eliza Winn Lloyd
A $1 million grant the help of attorney Alexander the co-executor of Mrs. Mel-
Moore. will help RxArt Forger, who represented Mrs. lon’s estate, said the proceeds
Now, with a recent grant of Mellon during her life and now from Mrs. Mellon’s estate will
$1 million from the Gerard B.
expand into more serves as a director of the further fund the Lambert
Lambert Foundation, the pro- pediatric hospitals. Lambert Foundation. Foundation to an estimated
cess of securing artists for It was Mr. Forger who $80 million.
bigger and more ambitious made the inroads with Rocke- In terms of grant-making,
projects—as well as expanding Mrs. Mellon died in 2014 at feller University Hospital, the foundation will hew to a
into more pediatric hospitals— the age of 103. Her daughter, which eventually accepted a road map Mrs. Mellon set with
will be easier. Ms. Moore, died in 2008 after very small exhibit from Rx- her giving to support conser-
“Suddenly, it’s all coming spending eight years in a min- Art—and gave the organiza- vation efforts, historic places
together,” said Ms. Brown. imally conscious state after tion its official start. and charities ranging from le-
“This grant makes a huge dif- being severely injured in a Mr. Forger said the grant gal aid to churches.
ference.” traffic accident. to RxArt, which will create an But, said Mr. Forger, the
The Gerard B. Lambert Ms. Brown recalls that she endowment named in honor of foundation will also “follow a
LIFE DOESN’T Foundation was created by Ra-

chel Lambert Mellon, a philan-
got the papers incorporating
RxArt on a Thursday and cele-
Ms. Moore, is one of only two
given so far by the Lambert
path for the interest of the
family.”
LIFE DOESN’T
PUPILS
Your time is valuable,
...so choose MMU.
Your than
We’re closer timeyou
is valuable,
think
...so choose MMU. Continued from page A15
...minutes to Manhattan. people shouldn’t focus on lines
on maps dividing towns. “We
We’re closer than you think need to work as a community,”
...minutes to Manhattan. he says. “Some of my taxes go
to first aid and the fire de-
partment. Have I used them?
No.”
To be sure, beach erosion
and storm damage loom as
mmuair.com bigger problems, but the fund-
ing issue sticks in many a
mmuair.com
–––––––––– Runway 5/23 6000’ Cat I, ILS –––––– 24hr Index B Aircraft Rescue ––––––––––
craw. Long Beach Island resi-
dents also complain they have
KEVIN COOK FOR THE WALL STREET JOURNAL
––––– User Fee U.S. Customs & Border Protection –––– FAA Air Traffic Control Tower –––––
too little say in how their
school taxes are spent: The is-
land has only three out of 10
Proud provider of Phillips 66® Jet A and 100LL. seats on the regional school
©2014 DM
Morristown
AIRPORTS,
Municipal
LTD. AllAirport.
rights reserved.
All rights reserved.
ww.ad.wsj.12.14
ww.ad.wsj.5.13
board, while Stafford has six.
“It’s what the Revolutionary
War was fought over,” says
Jonathan Oldham, mayor of
Harvey Cedars, on the island.
The funding quirk stems
from a 1975 state law mandat-
ing that the costs of regional Harvey Cedars Taxpayers Association’s Bob Danna and former Beach Haven Mayor Deborah Whitcraft.
districts be apportioned based
on the total value of each abandon or bankrupt the dis-
town’s real estate. In other Doing the Math trict,” he says, but are tired of
words, the formula aims to being “the cash cow.”
Don’t just
Costs of regional school districts in New Jersey are typically
identify each town’s relative billed to towns according to their property wealth. That means State legislators passed a
ability to pay. Over time, in small towns on Long Beach Island bear a high cost per pupil. 1993 law saying regional dis-
towns where property wealth tricts could switch to sharing
climbed especially quickly and Municipality Number of students (2014-15 school year) costs on a per-pupil basis, or
the number of children Harvey Cedars 16 Cost per pupil: $217,625 use a combination of per-pupil
dropped, taxpayers have seen and property values. (Techni-
walk down a huge jump in per-pupil costs.

Vito Gagliardi Jr., a lawyer
representing Oradell in its le-
gal battle, says most of the 66
regional districts statewide
Long Beach Township
Barnegat Light
Surf City
102
12
40 $87,747
$130,017
$200,313 cally the term is “equalized
value,” which adjusts for dif-
ferences in how towns assess
properties.)
Making such a change, how-
the aisle...
are “plagued by an imbalance” ever, requires each town to
in which one community pays Beach Haven 52 $86,397 pass a referendum and the
significantly more per pupil. town that benefits from the
Long Beach Island has seen existing funding formula is un-
Ship Bottom 41 $54,159 Source: Wall Street Journal
many families with children analysis of New Jersey likely to agree.
move to the mainland in Department of Education data Keith Weidenhof, a Stafford
search of year-round jobs and
Stafford Township 2,263 $3,621 THE WALL STREET JOURNAL. resident and head of the re-
cheaper homes. On a recent gional board, calls the current
visit, ice cream shops and main relish the quiet. That in- Beach Island want to negoti- system fair. “We treat all our
minigolf courses were shut for cludes the regional district’s ate, and possibly litigate, for a kids the same,” he says, “and
the season. Residents who re- chief, Craig Henry, who surfs new funding method. While give them the best education
Own it. all winter.

Back when the Southern
owners of expensive second
homes may be able to swallow
we can.”
—Coulter Jones
CORRECTIONS Regional district opened in
1957, there were almost as
the taxes, they say the bills
are hard for local workers and
contributed to this article.
AMPLIFICATIONS many students from Long

Beach Island as Stafford. “I
retirees to stomach.
In Harvey Cedars, for exam- We Want to Hear
Let our Wedding Consultants help you choose don’t think anybody saw the ple, a three-bedroom home From You
Medgar Evers College Pre- demographics would change listed for sale at $899,000 had Have something to say about
the perfect wedding suit or tuxedo paratory School is a public as drastically as they did,” Mr. a $11,859 bill for property an article in Greater New
school in Crown Heights, Henry says. taxes last year. York? Email us, along with
Brooklyn. A Jan. 2 Open House Now 263 students from Bob Danna, a trustee of the your contact information, at
article about Crown Heights Long Beach Island attend the Harvey Cedars Taxpayers As- [email protected]. Your letter
incorrectly said Medgar Evers district for grades seven sociation, says 93% of mem- could be published in our
is a private school. through 12, along with 2,263 bers who responded to a sur- weekly Feedback column on
Custom clothing for the knowing man. from Stafford, according to vey last year want a more Friday. Letters will be edited
Readers can alert The Wall Street data the state uses to calculate equitable arrangement. The
Journal to any errors in news articles for brevity and clarity. Please
Learn more about our complimentary wedding services [email protected] by emailing [email protected] or payments. town pays $217,625 per stu- include your city and state.
by calling 888-410-2667. Many taxpayers in Long dent. “We are not trying to
CITY NEWS
A Brooklyn Man
Is Found Hanged
In an NYPD Cell
BY PERVAIZ SHALLWANI 12:43 p.m., when police re-
sponded to a 911 call involving
Authorities were investigat- Mr. Duthley’s 2016 Toyota
ing how a 28-year-old Brooklyn RAV4, which had sideswiped a
man died in police custody, af- parked car outside 9011 Ave. J,
ter he was found hanged by his police said.
T-shirt in a New York Police Officers and firefighters
Department holding cell on found Mr. Duthley intoxicated,
Sunday evening, officials said. authorities said. Officers deter-
Serge Duthley had been ar- mined that Mr. Duthley had al-

rested around 12:45 p.m. Sun- cohol on his breath, bloodshot
day on a drunken-driving eyes and was “unsteady on his
charge after authorities re- feet,” the official said.
sponded to a 911 call and found He was arrested and taken
that he had crashed his vehicle to NYPD’s 78th precinct, the
into a parked car about four department’s intoxicated-driv-
blocks from his home in the Ca- ing testing center in Brooklyn,
narsie neighborhood of Brook- where he refused to submit to a
lyn, police said. breathalyzer, “which is not un-
Mr. Duthley’s death is being common,” the official said.
investigated by the NYPD’s In- Mr. Duthley was then taken
ternal Affairs Bureau, which au- to NYPD’s 69th precinct, the ju-
tomatically probes all deaths in risdiction where the accident Trucks at Port Newark and Elizabeth-Port Authority Marine Terminal on Monday. Friday’s brief walkout by dock workers slowed traffic.
police custody. occurred, and charged with one
Traffic Delays Dog Port Terminals

A law-enforcement official count of DWI, the official said.
said that a preliminary investi- Investigators determined
gation determined that Mr. that Mr. Duthley was removed
Duthley had been returned to a from his holding cell three
holding cell inside the NYPD’s times during the day, the offi- BY ROBBIE WHELAN container from the docks to a ficials denied the accusation Area terminals had already
69th precinct at around 5:20 cial said. yard or warehouse, he said. and said the walkout was ille- closed for several days last
p.m. after having his photo and After arriving and being The Port of New York and With about 60,000 containers gal under the union’s contract week in the aftermath of a
fingerprints taken. As is proce- held, Mr. Duthley was taken out New Jersey was clogged with passing through the port’s with port management. blizzard that brought trans-
dure, officers had removed twice, the second time to speak unusually high truck traffic terminals each week, even The walkout was resolved portation to a halt across the
items that are prohibited in with police, and a third time at Monday morning, when con- small delays can cost retail- Friday afternoon and union Northeast.
holding cells, including belts, around 5 p.m. to be finger- tainer terminals reopened fol- ers, manufacturers and other members returned to work “Last week you basically
shoelaces or drawstrings on printed and photographed, the lowing a labor stoppage on importers thousands of dol- for shifts starting at 7 p.m. had five days’ worth of work
clothing, the official said. official said. He was returned Friday. lars. that evening. and two days to do it,” Mr.
During a routine check about to his cell about 20 minutes About 200 trucks were Members of the Interna- Adamski said. “Now the back-
20 minutes later, an officer later, the official said, adding waiting in half-mile lines out- tional Longshoremen’s Asso- log has gotten exacerbated
found Mr. Duthley hanged in that it was about 20 minutes side the gates of the Port ciation, the East Coast dock-
It took up to an hour even more…There are hun-
the cell by his T-shirt in what’s after that when officers found Newark Container Terminal workers’ union, walked off longer than usual to dreds of thousands of dollars
being investigated as an appar- him hanged. and Maher terminals, said the job Friday morning in being squandered, because
ent suicide, authorities said. Two neighbors, a couple Tom Adamski, who runs a what a union spokesman de-
move a container to someone has to pay for those
Mr. Duthley was taken to who declined to give their truck depot in Newark for scribed as “a unified action” a yard or warehouse. trucks standing by. Eventu-
Brookdale Hospital, where he names, said they heard the ac- First Coast Logistics Services. against the Waterfront Com- ally the shippers pay for it.”
was pronounced dead, police cident and came out to check By the afternoon the de- mission of New York Harbor, The Port Authority of New
said. It will be up to the city on their cars. They said Mr. lays had cleared up, said Ivo a bistate body that investi- But truck drivers, who are York and New Jersey advised
medical examiner to determine Duthley was telling people it Oliveira, vice president for in- gates corruption and regu- not members of the ILA, had truckers to delay their arrival
an exact cause of death. wasn’t his fault, and bystanders dustrial relations at Maher lates hiring practices at the already lost a full day of at Maher Terminal, the port’s
At Mr. Duthley’s home, a tried to calm him. “He was Terminal. “Things have sub- port. The ILA said that the work, and most terminals busiest and largest, due to
family member declined to talk alert,” a woman said. “I find it sided by now,” he said. commission has interfered in aren’t open to truckers on “severe congestion.” Around
with a reporter. very odd that boy died.” The morning delays were union hiring and harassed weekends. One smaller con- noon they issued a warning
The series of events that led —Thomas MacMillan adding up to an hour to the union officials. tainer terminal in Bayonne of heavy traffic at Port New-
to Mr. Duthley’s death began at contributed to this article. time needed to transport a Waterfront Commission of- did open its gates on Sunday. ark Container Terminal.
Full-Time Legislature Would Curb Graft: Poll Voter-Registration Lawsuit

BY ERICA ORDEN
Is Settled in Unusual Accord
A majority of New York vot- BY JOSEPH DE AVILA that this litigation shouldn’t
ers believe state government have been necessary. “Chasidic
is plagued by malfeasance and The Sullivan County Board Jews have the right to vote
think making lawmakers work of Elections will appoint a and be treated just like anyone
full time on their legislative monitor to review challenges else,” he said.
duties would curb corruption, to voter registrations to settle The plaintiffs said Hasidic
a new poll shows. a lawsuit filed by Hasidic Jew- and Orthodox voters were sin-
The catch: Voters don’t ish residents in what legal ex- gled out when the Board of
want to give those lawmakers perts call an unprecedented Elections attempted to cancel
a raise. agreement in New York state. the registrations of more than
Sixty percent of the respon- A group of 10 Hasidic regis- 150 residents before local elec-
dents in a Siena College poll tered voters from the Catskills tions. All the voters were
released Monday believe turn- village of Bloomingburg sued eventually allowed to vote. The
ing the state Legislature into a the Sullivan County Board of Board of Elections had ques-
full-time body and banning its Elections in 2015, claiming the tioned whether those voters
MIKE GROLL/ASSOCIATED PRESS
members from taking outside board violated the First actually lived in Bloomingburg.
income would help end some Amendment, the 14th Amend- The plaintiffs and the Board
of the foul play that has led ment and the Voting Rights of Elections now must agree
nine of 10 New Yorkers to say Act. The plaintiffs alleged the on who will serve as a moni-
Albany has a serious corrup- Board of Elections engaged in tor. The monitor will review
tion problem. a “discriminatory campaign to any instance where a Bloom-
But more than half of re- deprive Hasidic Jewish resi- ingburg voter’s registration is
spondents, 55%, don’t want to dents of Bloomingburg…of the challenged.
see those changes come with a A majority of New Yorkers surveyed wouldn’t want to give full-time legislators an increase in pay. fundamental right to vote.” Voting-rights attorney Ran-
corresponding pay raise from U.S. District Judge Kather- dolph McLaughlin, a law pro-
lawmakers’ current base sal- wage to $15 an hour, institut- That corresponds with a de- clear how such episodes might ine Forrest approved the set- fessor at Pace Law School, said
ary of $79,500. ing paid family leave, closing a crease in the percentage of re- affect this year’s legislative tlement Monday. a settlement like this between
Such a proposal isn’t on the loophole that allows limited-li- spondents describing him as elections. Sullivan County denied all a county board of elections
table in Albany, though Gov. ability companies to give politically moderate, 42%. Asked how recent corrup- allegations of discrimination in and private individuals is “ex-
Andrew Cuomo has suggested enormous sums to political Mr. Cuomo’s favorability tion scandals might affect the settlement. The main at- tremely unprecedented” in
limiting lawmakers’ outside campaigns and stripping pen- rating has remained virtually their votes in November, 49% torney for the Sullivan County New York state. In most cases
income to 15% of their base sion payments from lawmak- the same, at 52%, and his job- of respondents said the events Board of Elections couldn’t be where monitors are appointed,
pay. ers convicted of a crime. performance rating ticked up would make them less likely to reached for comment. “An ob- the U.S. Justice Department is
It is unclear how much sup- A greater percentage of vot- slightly, to 42% from 39% in re-elect their lawmakers. jective, fair-minded advisory involved, he said.
port Mr. Cuomo’s proposed ers, 39%, see the Democratic December. Forty percent, however, monitor…should be a benefit There have been court-ap-
remedy would receive from governor as liberal than at any Though Albany was up- said the scandals would have to both the county and to any pointed monitors in New York
legislative leaders. That sug- point since he took office in ended last year by two of the no impact on their votes. duly registered, or registering, related to other civil-rights is-
gestion received support from 2011, likely a result of the min- most significant public-cor- The poll, which was con- voter in the village of Bloom- sues, such as New York City’s
59% of respondents. imum-wage plan and some of ruption trials New York has ducted Jan. 24-28, surveyed ingburg,” said another attor- stop-and-frisk program, he
Other matters on Mr. the social issues Mr. Cuomo seen in decades—ones that 805 registered New York state ney for the village. said.
Cuomo’s agenda also earned has championed in recent cast longtime legislative lead- voters. It has a margin of er- Moshe Smilowitz, the lead “What is highly unusual is
strong marks, including rais- months, including those in- ers Sheldon Silver and Dean ror of plus or minus four per- plaintiff in the case, said in a to see this in voting-rights liti-
ing the statewide minimum volving transgender rights. Skelos from office—it is un- centage points. statement from a spokesman gation,” Mr. McLaughlin said.
was convicted in state Supreme NEW JERSEY dent’s chance for a fair trial. He’s He urged the group to call his identity is being withheld pend-
Greater Court in Brooklyn on five counts:
second-degree murder, attempted
Driver in 2014 Crash also seeking to have the charges
thrown out, and officials have
office if they’re worried about
losing a factory or other big em-
ing an autopsy. Officials say he
died from smoke inhalation and
New York murder, attempted assault, reck-
less endangerment and criminal
Pleads Not Guilty
A truck driver accused of
said a hearing on that motion
will likely be heard in April.
ployer: He said early intervention
helped convince Alcoa and Kraft-
that the fire doesn’t appear to
be suspicious.
Watch use of a firearm.
Mr. Anderson’s lawyers had ar-
crashing into a limo van carrying
comedian Tracy Morgan, injuring
—Associated Press Heinz to keep operating upstate
plants once slated to close.
—Associated Press
gued that the boy feared for his him and killing one of his NEW YORK —Associated Press NEW YORK CITY
life and was firing at members of friends, pleaded not guilty on
a local gang who had shot at him Monday to aggravated man-
Schumer Vows Focus NEW JERSEY DA Vance Alleges
that afternoon. “Obviously we are slaughter and other charges. On State if Promoted House Fire Leaves Forgery, Theft Scam
BROOKLYN tremendously disappointed in the Kevin Roper was driving a Sen. Charles Schumer is tell- A New York City prosecutor
Teen Is Convicted verdict,” said Mr. Anderson’s law- Wal-Mart truck when the crash ing county leaders in New York A 90-Year-Old Dead says investigators have uncov-
yer, Frederic Pratt. “It was a very occurred on the New Jersey that he will remain focused on Authorities say a house fire ered a forgery and theft scheme
In Shooting Death difficult case, sad and tragic.” Turnpike in June 2014. his state if he is promoted to has left a man dead in northern that stretched from Manhattan
A 16-year-old boy was con- Mr. Pratt said the appeals bu- Mr. Roper entered his pleas lead the Senate’s Democrats. New Jersey. to Boston.
victed of murder on Monday in reau for the Legal Aid Society during an arraignment hearing in Mr. Schumer is widely ex- A spokesman for the Somer- Manhattan District Attorney
the 2014 shooting death of a would decide how to proceed New Brunswick. He’s also pected to become Senate Minor- set County Prosecutor’s Office Cyrus R. Vance, Jr. said Jeremy
man on a New York City bus. with the appeals process. charged with vehicular homicide ity Leader when Nevada’s Harry said police were dispatched to Wilson was indicted on forgery
Kahton Anderson was 14 Under juvenile sentencing and aggravated assault. Reid steps down this year. the Bridgewater home at around and possession of stolen prop-
when he fired a gun on a Brook- guidelines, Mr. Anderson faces a Mr. Roper’s attorney, David Addressing the New York 6:30 a.m. Sunday after receiving erty and other charges. He
lyn bus during rush hour, fatally maximum range of 15 years to Glassman, has claimed Wal- State Association of Counties in a report of heavy smoke. pleaded not guilty and was held
striking Angel Rojas, a 39-year-old life in prison. His sentencing date Mart’s settlement of Morgan’s Albany, Mr. Schumer said “nothing Authorities said firefighters on $1 million bail. His attorney
father. Brooklyn prosecutors was set for Feb. 18. lawsuit generated publicity that will change” in his relationships found the body of a 90-year-old didn’t immediately comment.
charged him as an adult, and he —Rebecca Davis O’Brien harmed the Jonesboro, Ga., resi- with local leaders and residents. man who lived in the home. His —Associated Press
A18 | Tuesday, February 2, 2016 * **** THE WALL STREET JOURNAL.
THEATER TUESDAY
As the broadcast approached, lion viewers, according to data Hotel Room as Stage
Backstage the winds died down. Instead of
removing the entire structure,
provided by Paramount Televi-
sion. That bested NBC’s “The
Playwright Theresa Rebeck
has written for theater, TV and
Buzz only its canvas walls, there to
protect against rain, were re-
Wiz Live!,” which brought more
than 11 million, though not as
film, but this month she heads
into new territory by directing a
moved to let wind blow through. many as the 18 million who play in an exclusive setting: a ho-
“I think it worked better with- watched “The Sound of Music tel room at le Parker Meridien on
out the walls,” said Mr. Platt, Live!,” also on NBC. West 56th Street, where only 20
noting that there was more of —Pia Catton people can see the show at a
Windswept ‘Grease’ an outdoor feeling. time.
In the end, it wasn’t rain but While the show was able to “A Foreign Body” is a site-
heavy wind that threatened Sun- go on logistically, it suffered an Ticket Sales Return specific play, set to begin perfor-
day night’s broadcast of “Grease: emotional blow when one of its Broadway bounced back this mances next week and run
Live” on Fox, staged on the War- stars, Vanessa Hudgens, who week, with most shows return- through Feb. 28. Written by
ner Bros. lot in Burbank, Calif. played Rizzo, learned her father ing to eight performances in the Neena Beber, it’s about a Polish
Midday on Sunday, engineers had died the night before. wake of the blizzard that shut director modeled on Roman Po-
told producer Marc Platt that Mr. Platt said Ms. Hudgens down matinee and evening per- lanski (played by John Glover)
the large tent-like structure cov- told him her dad would have formances on Jan. 23. who is visited in his hotel room
ering Rydell High and other out- wanted her to go on. “She said, ‘I “Hamilton” again became the by a young woman (Hettienne
door locations might have to be am going to put my feelings in a top-grossing show, bringing in Park, who appeared in Ms. Re-
removed; winds gusting up to 50 box,’ ” he said. “She had an entire $1.7 million last week, edging out beck’s “Seminar” on Broadway)
miles an hour could possibly cast rally around her.” “The Lion King,” which grossed he had assaulted as a teenager.
KEVIN ESTRADA/FOX
bring the entire structure down. Understudies had learned $1.5 million, according to the “It’s an extremely powerful
Around 3 p.m., director multiple leading parts, said pro- Broadway League. and disturbing contemplation on
Thomas Kail and Mr. Platt as- duction designer David Korins, During the same week last all the issues around fame and
sembled the cast to restage the but they weren’t needed: “I don’t season, a winter storm hit, can- power,” Ms. Rebeck said, adding
opening number, much of which think for one second Vanessa celing five performances and that using an actual hotel room
Julianne Hough as Sandy and Aaron Tveit as Danny Zuko in the was to be outside and through- didn’t think about going on.” dampening sales. was “a truly trippy experience.”
finale of ‘Grease: Live.’ The show went on despite wind and rain. out the studio lot. The show averaged 12.2 mil- —Pia Catton —Marshall Heyman

Hundreds lined up on an evening last month, trying to win a
lottery for a $10 ticket to the Broadway smash hit ‘Hamilton.’
TICKETS seats available at a higher

cost. The current top premium
ticket at “The Book of Mor-
mon” is $477.
Continued from page A15 A monster hit like “Hamil-
declined to comment, but a ton” changes the calculation
disclaimer on its website says further, as evidenced by the
fees allow the company to Jan. 23 blizzard, which led to
make a profit, while offering 61 Broadway performances be-
consumers fast, convenient ac- ing canceled across the theater
cess to tickets. district.
Ticketmaster didn’t respond Many ‘Hamilton’ ticket hold-
to a request for comment, but ers, in particular, made pur-
its website says it typically chases months prior on resale
sets and shares fees together sites, often at splurge prices,
with its clients. then vented on social media
Another obstacle cited by and national news outlets.
the study draws attention to Visitors like Bill Pannell, a
“pre-sales,” especially for large lawyer from Atlanta, tweeted
concerts, that result in fewer that he paid $1,500 per ticket
than half of a venue’s tickets to see “Hamilton.” As of Mon-
even being made available for day afternoon, he said he
sale to the general public. hadn’t yet been refunded for
Promoters and industry in- the two tickets via resale on
siders get first dibs on up to Ticketmaster.
one-fifth of the ticket inven-
tory, the study said. Another
third is held back for pre-sales
The current top
through nonpublic fan clubs premium ticket at
and certain credit cards.
It also happens in theater:
‘The Book of
The new block of “Hamilton” Mormon’ is $477.
tickets available to the public
has been accessible to Ameri-
can Express cardholders since A spokeswoman for Ticket-
Jan. 25. Of the roughly 125,000 master said orders for Jan. 23
tickets released, for shows shows will be automatically re-
running in November and De- funded.
cember 2016 and January 2017, But for Broadway, such
it wasn’t clear how many were prices are eye-popping: On pa-
offered for pre-sale. per, the range of standard-
“Hamilton” producer Jeffrey priced tickets across all shows
Seller wasn’t available for is between about $30 and
comment. Ms. St. Martin de- $200, according to the League.
scribed the number of tickets Producer Joey Parnes, who
in these rare deals as minor: had to cancel five nearly sold-
“You’re never looking at many out tour performances of the
tickets.” Tony-winning show “A Gentle-
Over the decades, Broadway man’s Guide to Love and Mur-
has faced various obstacles in der” at the Kennedy Center in
trying to ensure that ticket Washington, D.C., due to the
prices are fair and benefit blizzard, sees the ticket frenzy
those who create the shows. as evidence of at least one
About 15 years ago, to avoid positive.
losing out to scalpers, the in- “People are more aware of
dustry began offering premium everything that is happening
tickets, which make the best on Broadway now,” he said.
YANA PASKOVA/GETTY IMAGES
The blizzard shut down the theater district, canceling shows and
prompting disappointed theatergoers to vent on social media.
ARTS & ENTERTAINMENT
In New York City, Even the Animals Are Neurotic

BY REBECCA ROTHBAUM
The view from the restau-

rant banquette was bleak: The
gray sky was streaked with
rain, the leafless trees a wet
tangle.
“It’s perfect,” said Phil Ma-
tarese, gazing out the window
at Union Square Park. Next to
him, Mike Luciano nodded.
The scene was a real-life
mirror of the gritty, minimally
CLOCKWISE FROM BOTTOM LEFT: HBO (2); KEVIN HAGEN FOR THE WALL STREET JOURNAL
hued New York of “Animals,”
Messrs. Luciano and Mata-
rese’s coming animated HBO
comedy about the adventures
of the city’s nonhuman resi-
dents, from bedbugs and bo-
dega cats to pigeons and po-
lice horses. Humans only
appear briefly, supplying a
slender narrative involving a
corrupt mayor.
More than a year before its
debut, the series made news
when HBO picked it up for two
seasons after its screening at
the 2015 Sundance Film Festi-
val. The deal broke new
ground in the television world
by following the model for in-
dependent films.
Despite the furry and feath-
ered characters, the show,
launching Friday, has more in
common with the network’s
“Girls” than with “Ratatouille” bar to hash out scripts and matter of working with a team
or “Antz.” The first episode screened the results at com-
‘One day we were of professional animators.
centers round a pair of rat pals edy venues like Upright Citi- just hanging out... “They have these art-school
who hit up a booze-filled house zens Brigade. ways of doing it,” Mr. Mata-
party to “make babies”—as A turning point came when
and started voicing rese said. “We had to reteach
many as possible. Throughout they entered the New York these pigeons.’ them, to make it worse.”
the series, creatures channel Television Festival’s pilot com- But the process has had its
human neuroses about every- petition in 2013. Their 12-min- benefits, too.
thing from romance to gender ute submission, “Animals,” email. “And the idea had that The show creators have
identity to aging. won the best-comedy category, perfect blend of being broad tapped the Duplass brothers’
“It’s just me and Mike fol- landing them an agent and in its appeal (talking animals) extensive network of actor and
lowing our id through these eventually the interest of Mark and extremely specific in its comedian friends to cast the
animals in a way,” Mr. Mata- and Jay Duplass. The brothers, delivery and sense of humor.” show. In addition to Mr. An-
rese, 26 years old, said. Obser- whose HBO show “Together- Rather than go the more sari, Wanda Sykes, Kumail
vant viewers might notice each ness” returns for a second typical route of pitching the Nanjiani and Molly Shannon
episode features characters season next month, are inde- concept to networks or pro- have all lent their voices.
named Mike and Phil, be they pendent filmmakers, produc- duction companies, he sug- And reading through each
mice or mites—voiced by the ers, writers and actors. gested another way. Working script—a detailed outline that
show’s writer-and-director pair. “Mike and Phil reminded as executive producers, he and leaves room for improvised di-
The collaborators have been me so much of me and Jay his brother would line up the alogue—with the Duplasses
nurturing the idea for the last when were just starting out,” financing to make an entire has sharpened the humor and
four years, starting with a se- Mark Duplass wrote in an season of “Animals” to shop ensured that none of the ac-
ries of short videos they cre- around, an arrangement that tors find themselves in a nar-
ated as a side project while would allow Messrs. Luciano rative dead end.
working together at a Manhat- and Matarese to retain creative John Cooper, director of
tan advertising agency. control. The risk: Their show the Sundance festival, said the
“One day we were just might never be picked up. independent, dark-edged spirit
hanging out in between stuff The collaborators recalled behind “Animals” especially fit
and started voicing these pi- their Skype call with Mark Du- the festival’s ethos, likely help-
geons we saw,” Mr. Matarese plass, which they took in the Phil Matarese and Mike Luciano, above, creators of the ‘Animals,’ ing to win it a deal.
said. supply closet at their day job. which personifies New York’s nonhuman residents like rats, left, For HBO, it was the combi-
Later they recorded their The offer was a gamble, but it pigeons and police horses, top. The show launches on HBO Friday. nation of the show’s “deadpan
riff at Mr. Luciano’s house us- felt right. “We were willing to humor” and the whimsy of its
ing the software program Ga- bet on ourselves and the show,” apartment. demotion.” hand-drawn animation that
rageBand. Mr. Matarese used said Mr. Luciano, 28. “Aziz Ansari sold out [Mad- The biggest challenge was stood out, said Casey Bloys,
Final Cut Pro to create a kind After moving to Los Ange- ison Square Garden] for two shifting from the short-video president for series, late-night
of crude stop-motion anima- les, they kept things on the nights, and then two days format to a 30-minute TV epi- and specials programming at
tion. They had their first video. cheap, recording voice-overs later he was in our apartment sode, a transition Mr. Mata- the network. “It’s totally dis-
Moving on to other species, for a time in one of the bed- with all the moving blankets,” rese described as “absolute tinctive and that’s what you
they met at a local Bushwick rooms of their Los Feliz Mr. Luciano said. “Definitely a hell.” And then there was the look for.”
HEARD & SCENE
Things Get Flashy at a New Indie Music Venue

After years of relatively Saturday nights. All of the austere environment and you can get from music. It’s
few openings on the club décor was sourced from re- “counter the seriousness of a congregation where every-
scene, New York seems to be claimed materials, “from the the religious elements in body is having that out of
hopping again. wood paneling to the stain here.” body, jungle experience. I
Vandal, the Tao Group’s glass windows to the chan- “But Flash Factory will like making that connec-
mega-restaurant on the Bow- deliers.” Pews, vintage wall- also be a circus on a daily tion.”
ery with a street art-meets- papers and doors have come basis,” he said. Mr. Satsky said he had not
street food concept, was from churches, temples, high There are not the bells opened a club in New York
ANDREW HINDERAKER FOR THE WALL STREET JOURNAL
slammed on Saturday night, school auditoriums and and whistles typical of a since Provocateur in 2009,
not just in its many dining country houses. techno club, however. although he did open a
rooms, but “Everything was bought “I wanted to build a space Dubai location in 2014.
also in its at auction,” said Mr. Satsky, that’s focused on the archi- What’s different in 2016
enormous including a 1920s circus tent tecture rather than confetti at a place like Flash Factory?
downstairs which was purchased in or tricks,” Mr. Satsky ex- “There’s something here
lounge, which Massachusetts. It covers a plained. for everyone. It’s a com-
is notably ab- main barroom, offering a bit As for the iconography, pletely open door. If you’re a
MARSHALL sent of street of levity to the sometimes “there’s a religious sensation fan, there are no judgments.”
HEYMAN art.
Meanwhile,
after a few
years in the works, on Fri-
day, Flash Factory finally
NeueHouse, a community workspace on East 25th Street, offers opened its doors on West
night and weekend access, as well as cultural programming. 28th Street in a space for-
merly known as Shadow.
In truth, Flash Factory is
A Workspace for Night Owls more of a new music venue
than a nightclub. It comes
NeueHouse, the social work- Mr. O’Reilly said NeueHouse complete with a large stage,
space, is expanding its mem- has been working on creating “where you could put on
bership base. In the last few cultural programming for regu- anyone from Paul McCartney
weeks, it has introduced a lar and Noir members to con- to Disclosure,” said co-owner
“Noir” program, which allows nect. “It’s a little more practical Michael Satsky, referring to
members to visit NeueHouse— and participatory,” he said. the British electronic music
with locations in New York and Recent guests have included duo.
Hollywood, and eventually in artist Shantell Martin, part of a He and his partners found
London—after the 5 p.m. work- “mastering your métier” series, the 10,000-square-foot space
day and on weekends. and fashion designer Tamara in 2012 and signed in 2013
“It’s a group of people who Mellon, who spoke as part of with the conceit already in
have no need to reside in an off-the-record industry se- mind: a place for live indie
NeueHouse—they have a place ries where members couldn’t electronic music and rock.
they already go from 9 to 5— bring their smartphones. “I knew I needed to build
but they’re interested in meet- Each club has the capacity something,” he explained.
ing people who are also transi- to take about 300 Noir mem- “It’s the type of music I’ve
tioning in their careers or bers at a cost of $150 a month, been into since I was a kid.”
JON SEVIK/FLASH FACTORY
working on other crazy side said Mr. O’Reilly. Applications Mr. Satsky said that hold-
and passion projects,” said will be considered on “a friend ups with construction and
James O’Reilly, the chief ex- of a friend kind of approach,” permits made this a nearly
pansion officer at NeueHouse. he added. “Nobody enters with- three-year process.
“It’s a great place for second out some sort of referral. We’re The location had to be
acts. We’ve kind of turned the not rushing it, but we love to gutted completely to make
idea of a social club being an meet interesting people.” way for Flash Factory, which
exclusive place on its head.” —Marshall Heyman will be open on Friday and Flash Factory, a 10,000-square-foot space in Chelsea, will feature live electronic music and rock.
SPORTS
Heard On
The Field
Yankees’ Bird to Miss

Entire 2016 Season
The Yankees worked all winter to
infuse their aging roster with youth
and athleticism. Now, with spring
training less than three weeks away,
they must prepare to play without
one of their brightest prospects.
Greg Bird, the 23-year-old first
baseman who showed great prom-
ise in his seven-week cameo with
the Yankees last year, will undergo
surgery to repair a torn labrum in
his right shoulder on Tuesday and
miss the entire 2016 season. Dr. Da-
vid Altchek, the Mets’ head physi-
cian who performed pitcher Zack
Wheeler’s Tommy John elbow pro-
cedure last spring, will operate on
Bird at the Hospital for Special Sur-
gery in Manhattan.
Bird (above) spent about a First-year Devils general manager Ray Shero, center, with first-year head coach John Hynes, who has the team in unexpected playoff contention.
month on the disabled list at Dou-
Early Success Adds Wrinkle to Devils’ Rebuild

ble-A Trenton last May because of a
similar shoulder issue, but returned
to play without incident after a pe-
riod of rest and rehabilitation. The
Yankees promoted Bird to the ma- Continued from page A15 as an assistant coach with Pitts-
jors on Aug. 13, and he hit .261 with ily wrong—the Devils won the Eastern burgh’s minor-league affiliate in
11 home runs in 157 at-bats. Conference with Kovalchuk in 2012 Scranton, Pa. The two never worked
On Monday, general manager before falling in the Stanley Cup Final. closely, but Shero was persuaded to
Brian Cashman said that Bird re- But they haven’t been back to the hand him the Devils’ reins thanks to
ported no problems in his routine playoffs since, and with Lamoriello endorsements by Penguins execu-
exit physical examination following now in Toronto heading up the Maple tives including Tom Fitzgerald, who
the Yankees’ loss to the Houston Leafs, it is Shero’s responsibility to has since joined the Devils as assis-
Astros in the American League wild- put the Devils—the outsider perpetu- tant general manager.
card game in October. ally looking in on the New York mar- In particular, Shero liked the way
About a week after the physical, ket—back on a winning path. Hynes communicated—something he
ASSOCIATED PRESS; (BOTTOM): ZUMAPRESS.COM

Cashman said that Bird’s agent in- “There are no short-term fixes,” thought could convince free agents
formed him of lingering discomfort Shero said in an interview last week to see New Jersey as a player-
in the shoulder, prompting the Yan- before the Devils’ Tuesday night loss friendly environment this summer,
kees to bring Bird to New York for in Pittsburgh, where he won a Stan- when the organization should have
evaluations with Altchek and team ley Cup back in 2009. around $8 million in salary-cap
doctor Chris Ahmad. Cashman said “I don’t know if the fans would be space.
both doctors noticed no significant real happy that we trade a first- “I think that’s the trend that more
change in the condition of Bird’s round pick for a player that might teams are going now,” said Devils
shoulder from May and didn’t rec- help us get in [the playoffs],” he forward Lee Stempniak, who signed
ommend surgery. said. “Maybe he will, maybe he a one-year deal last summer and is
But when Bird ramped up base- won’t. But where is that going to currently second on the team with 36
ball activities in January at the Yan- leave us a year from now? It’s not points. “A lot of successful coaches
kees’ facility in Tampa, Fla., the pain only for this year, but it’s for the have that ability to connect with the Kyle Palmieri, who was acquired in a draft-day deal, has a team-high 20 goals.
worsened, and the team again sent players. John is exceptional at it. He
him to New York for tests. This knows how to approach each guy, importance of having a new identity deadline approaching, other teams
time, Ahmad and Altchek agreed
‘It’s not only for this what motivates them.” more than anything else,” said Pierre are likely to inquire about veterans
that Bird would need surgery. It re- year, but it’s for the According to Hynes, being a McGuire, the NHL analyst for NBC such as the 32-year-old Stempniak,
mains unclear exactly what specific player-friendly organization means Sports. “Lou Lamoriello was such an or the 33-year-old Cammalleri, who
event, if any, led to the deterioration
next three, four years. “doing things that are going to help omnipresent figure in the organiza- has a team-high 24 assists.
of Bird’s shoulder, but in a state- It doesn’t mean we guys’ careers,” like being patient tion, in a good way, but once he left Conventional wisdom would dic-
ment released Monday, the team with player development. they had to do something to change tate that the far-sighted Devils
described the injury as a “reoccur-
don’t want to win.’ It has also meant ending the Dev- it. I think what Ray has done is, he’s should part with experience in favor
rence” of the one from May. ils’ ban on facial hair (during the reg- empowered people to feel like they’re of youth, but Shero’s vision doesn’t
After a final season of seasoning next three, four years. It doesn’t ular season), and giving No. 13 back a big part of the organization. They’re include “age discrimination” as he
at Triple-A Scranton/Wilkes-Barre, mean we don’t want to win.” to Mike Cammalleri, who needed a not afraid to go out and get aggres- put it. “I think it’s important to mix
the Yankees tentatively planned to The son of the late Fred Shero, year to persuade the triskaidekapho- sive offensive players.” your older guys with the younger
install Bird as their everyday first the famed Rangers and Philadelphia bic organization give him his pre- Shero had his eye on offense dur- guys,” he said.
baseman in 2017, replacing Mark Flyers coach, Ray was named the ferred jersey number after he joined ing his first off-season in charge, Whether or not Shero becomes a
Teixeira, whose eight-year, $180 mil- Devils’ general manager in May after the team in 2014. signing Stempniak, drafting forward seller or a buyer at the deadline, he
lion contract expires after 2016. Lamoriello unexpectedly vacated the Changes to the team’s culture Pavel Zacha with the sixth overall says his success will ultimately be
With Bird absent, Cashman said post after 28 years. At that point, aren’t meant as a critique of the Lam- pick, and adding right wing Kyle decided by fans. “Are they apprecia-
that infielder Dustin Ackley will virtually no one gave the Devils a oriello regime. Shero enthusiastically Palmieri in a draft-day deal with tive of the effort and how we play?”
probably emerge as Teixeira’s pri- chance at contending for a playoff praised his predecessor for several Anaheim. The 24-year-old Palmieri, he asked. “And, just as importantly,
mary backup. It appears unlikely spot this season. The team finished personnel moves, especially the 2013 who grew up in Montvale, N.J., has are they sharing the vision I outlined
that the Yankees will pursue an- seventh in the eight-team Metropoli- trade for and subsequent re-signing rewarded Shero with a team-high 20 in the summer?”
other established major-league first tan Division last year, and Shero be- of young goaltender Cory Schneider, goals, and Zacha is shining in the Perhaps to an equal degree, that
ASSOCIATED PRESS
baseman. Instead, Cashman indi- gan the long rebuilding process by who is now an All-Star. But Shero Ontario Hockey League, registering vision will be judged by NHL free
cated that the Yankees will look to making 40-year-old John Hynes, a does do things his own way, and it’s 43 points for the Sarnia Sting in just agents. “Maybe they’ll want to play in
fill the void with additional minor- relative unknown, the youngest head aimed at making the Devils more 35 games. New Jersey,” he said. “Maybe they’ll
league depth. coach in the NHL. popular among players. Both players promise to be in the want to stay in New Jersey because
—Jared Diamond Shero had previously hired Hynes “First of all, he’s brought in the Devils’ future, but with the trade of the way they’re coached.”
The Closer Porzingis Is to the Basket, the Worse He Shoots

Kristaps Porzingis is having an his size—and there’s no reason he
impressive rookie campaign that has can’t be even better given his overall
lifted the spirits of Knicks fans bat-
How Hard Can It Be? shooting touch and athleticism—his
tered by last season’s brutal slog. Here’s a ranking, by field-goal percentage on 2-point shots, of the 28 percentage on 2-pointers would rise
Part of that optimism stems from his NBA rookies 7-feet or taller since the 1979-80 season.* from .453 to .474. That’s about ex-
rare ability to shoot from the outside. PLAYER SEASON AGE HEIGHT 2PT% actly where Patrick Ewing was during
But in order to become the superstar 1. Shaquille O’Neal ORL 1992-93 20 7-1 .563 his rookie season 30 years ago, when
that many project he can be, Porzin- 2. Karl-Anthony Towns MIN 2015-16 20 7-0 .549 the Hall of Fame Knick shot .477 from
3. Bill Cartwright NYK 1979-80 22 7-1 .547 2-point range. Eventually, Ewing im-
Take a Number 4. Hakeem Olajuwon HOU 1984-85 22 7-0 .538
proved that mark to a career-best
.570 in his fourth season, and he aver-
5. Brad Daugherty CLE 1986-87 21 7-0 .538
aged better than 50% (.509) as a
gis is going to have to learn how to 6. Sam Bowie POR 1984-85 23 7-1 .537 Knick.
leverage his extreme height into 7. Andrew Bogut MIL 2005-06 21 7-0 .536 One problem Ewing never had to
making more 2-point field goals, es- 8. Eric Montross BOS 1994-95 23 7-0 .535 face is that current Knicks coach
pecially inside 10 feet from the bas- 9. Brook Lopez NJN 2008-09 20 7-0 .532 Derek Fisher, by his own admission,
ket. 21. Patrick Ewing NYK 1985-86 23 7-0 .477 prefers not to run plays for specific
When it comes to rookies at least players, preferring instead to rely on
25. Kristaps Porzingis NYK 2015-16 20 7-3 .453
7-feet tall making 2-point field goals, his players to find the open man. So
Source: Basketball-Reference The Wall Street Journal.
the 7-foot-3 Porzingis is having one of Porzingis hasn’t yet gotten the repeti-
*played at least 25 minutes a game
the toughest seasons since at least tions to develop a go-to, midrange
1980. Since the 3-point era began in shot like Ewing’s turnaround jumper
1979-80, Porzingis’s .453 rate on two- game is hitting 3-three pointers problem is much closer to the basket. quent, accounting for 18.3% of his total or Kareem Abdul-Jabbar’s sky hook.
point attempts is the fourth-lowest (26.8% of his total attempts, according Porzingis is making just 34.2% of shots shots. Fatigue, especially late in games,
among the 28 rookies at least 7-feet to Basketball-Reference), it would fig- from between 3 and 10 feet from the Over the past three years, players may also be a factor. Porzingis already
tall. (We limited the group to players ure that he is being harmed by taking basket, ranking 102nd among 119 qual- 7-feet or taller have shot .420 when has logged nearly as many NBA min-
who averaged more than 20 minutes an unusually high number of long two- ifying NBA players, according to Stats, close to the basket but still outside of utes, 1,371, as he amassed over the
a game.) point shots that lower his rate. LLC. Making matters worse, his at- dunk or layup range. If Porzingis shot past three years Europe (1,615).
Given that a big part of Porzingis’s But it turns out that his major tempts from this distance aren't infre- at just that average rate for a player —Michael Salfino
AP
WSJ.D B4 | CFO JOURNAL B5 | CROSSWORD B6
BUSINESS & TECH.

Startup Magic Leap Posh U.K. Country Club
Draws More Big Money In Fee War With Owners
TECHNOLOGY | B4 GOLF | B6
© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | B1
NFL Splits Thursday-Night Rights

Yahoo to Unveil Cost Cuts
BY DOUGLAS MACMILLAN plan aimed at slashing the The activist hedge fund has any serious talks for now, peo-
company’s costs, including the called for new management ple familiar with the matter
Marissa Mayer introduced closure of several business and a sale of the business said.
herself as Yahoo Inc.’s chief units and a reduction of up to while threatening to nominate Executives at Verizon Com-
executive on an earnings call 15% of its workforce, said peo- a slate of directors by the munications Inc. have publicly
in October 2012, saying she March 26 deadline for proxy expressed interest in buying
took the job “to grow and to proposals. Yahoo.
help redefine one of the Inter-
15% Ms. Mayer said in October The wireless carrier may
JAMES D. SMITH/ASSOCIATED PRESS
net’s most beloved compa- that she was preparing to nar- seek to combine Yahoo’s on-
nies.” The percentage up to which row the company’s focus to line advertising and media as-
That growth never hap- Yahoo is expected to reduce its fewer areas, without providing sets with those of AOL Inc.,
pened. Thirteen earnings calls current workforce. more details. which it purchased last year
later, Ms. Mayer on Tuesday Since then, the company for $4.4 billion.
plans to shift her focus from has rattled investors by shelv- If nothing else, a round of
taking market share to making ple familiar with the matter. ing a plan to spin off shares in cost-cutting could make Yahoo
drastic cuts. Making Yahoo smaller and Alibaba Group Holding Ltd. more attractive to a potential
Ms. Mayer is expected to more profitable could help Ms. and failing to explore a sale of buyer.
The NFL agreed with CBS and NBC to share its Thursday night appear on video with Chief Fi- Mayer buy time with investors the business. Yahoo’s expenses have risen
games along with the cable channel NFL Network. B2. nancial Officer Ken Goldman and bolster her case in a pos- Though potential suitors while revenue has declined in
after Yahoo announces fourth- sible proxy fight with Star- have already expressed inter- the 3½ years since Ms. Mayer
quarter earnings to unveil a board Value LP. est, Yahoo’s board has put off Please see YAHOO page B4
Medical-Device How Garden & Gun Defies Slump

Southern-focused magazine wins readers and ads, even as spending shifts online
Firms Use Deals BY JEFFREY A. TRACHTENBERG
To Branch Out
When Charleston, S.C., at-
torney J. Edward Bell III in-
vested in Garden & Gun maga-
zine in February 2010, he knew
BY JOSEPH WALKER risk of patients acquiring new the magazine had already lost
infections or conditions while nearly $10 million in less than
Medical-technology firms in the hospital. Sage’s products three years.
Abbott Laboratories and include antiseptic cloths to “My wife said print maga-
Stryker Corp. announced sep- clean patients and an inflatable zines were on the way out,” he
arate acquisitions with a com- device for moving patients be- recalls.
bined value of $8.6 billion, tween beds or surfaces. But Mr. Bell looked beyond
aiming to further expand their Monday’s deals are the lat- the red ink. “The advertising
portfolios beyond implanted est in which medical technol- trends were good,” he said. “I
devices and appeal to hospi- ogy companies have aimed to felt that if it could hang on, the
tals and clinics looking to diversify their businesses out- magazine would break even,
bring down costs. side of expensive medical-de- and we’d be on our way.”
vice implants. Both Stryker, These are rocky times for
which makes replacement hip many magazine publishers as
and knee implants, and Ab- advertisers shift their spending
bott, maker of devices for to digital outlets and readers
heart disease, have faced in- devote ever increasing
creased price pressure from amounts of time to social me-
hospitals looking to cut costs dia services such as Facebook
by negotiating better dis- and Snapchat. Such pressures
counts on implanted devices. can be even greater for stand-
ERIC KELLEY PHOTOGRAPHY
“Device companies are a alone publications such as Gar-

cost that hospitals are manag- den & Gun, yet the glossy pages
ing,” said Raj Denhoy, an ana- of aspirational Southern fare
Abbott, Stryker lyst at Jefferies LLC, in an in- have lured affluent readers and
unveil acquisitions terview. “If you’re just offering helped the title buck industry
an implant that’s used in a trends. Subscriptions and ad-
with combined value one-off procedure, that’s going vertising sales are up, and the
of $8.6 billion to be difficult business over Charleston-based magazine Like rivals trying to generate nonadvertising revenue, Garden & Gun operates an online store, a real-estate
time, and it already is a diffi- now has “real, distributable website and an events business. Above, an event at Pippin Hill Farm & Vineyards in North Garden, Va.
cult business.” profit,” according to Mr. Bell.
Abbott agreed to pay $5.8 Abbott, based outside of “The economics of single-ti-
billion for diagnostic-testing Chicago, already has a diag- tle publishers have been dicey Bucking the Trend in Print
company Alere Inc., whose nostic business that had global for a long while,” says Peter
Total circulation Total ad pages
tests for HIV, malaria and the sales of $4.65 billion in 2015, Kreisky, a media industry con-
1st half 2015: 2015:
flu can deliver results faster representing nearly a quarter sultant. “One of the paths for- 400 thousand 500
357,036 470
than traditional laboratory of the company’s $20.41 billion ward is to be niche, with in-
tests that can take days to pro- in total revenue last year. tense reader engagement and a
400
cess. Abbott said it would pay About 10% of Abbott’s diag- modest cost structure.” 300
$56 a share, a 51% premium to nostics revenue came from the Garden & Gun fits the bill,
Alere’s closing price on Friday. type of testing Alere special- employing 14 editorial staff- 300
Alere has $2.6 billion in debt, izes in—so-called point-of-care ers and largely depending on 200
which Abbott said it would take testing, which is performed at freelancers to produce six is- 200
on or refinance. the doctor’s office or clinic sues a year. It is owned by the
Stryker said on Monday it where the patient is being Allee Group LLC, a closely held 100
would buy closely held Sage treated. Abbott Chief Executive company whose three major 100
Products LLC for $2.78 billion Miles White said he didn’t see investors include Mr. Bell; Re- owned media company primar-
in cash. Sage, whose revenue a “high risk” of antitrust regu- becca Wesson Darwin, its chief ily focused on broadcast televi- 0 0
increased 13% to $430 million lators challenging the deal. executive; and Pierre Mani- sion and newspapers.
2010 ’11 ’12 ’13 ’14 ’15 2010 ’11 ’12 ’13 ’14 ’15
in 2015, makes a broad array of “Demand for point-of-care gault, chairman of Evening Since it made its debut in
products used to reduce the Please see DEALS page B2 Post Industries Inc., a family- Please see GARDEN page B2 Source: the magazine THE WALL STREET JOURNAL.
Alcoa, Activist Agree on Board Slate In Tech Sales, ‘Cloud’

BY JOHN W. MILLER
AND DAVID BENOIT
coa’s need to improve mar-
gins. One of the new directors,
Can Be Nebulous Term
Mr. Schmidt, was until last BY ANGUS LOTEN it to grow nearly 17% to $204
Alcoa Inc. on Monday said month on the board of rival AND KIMBERLY S. JOHNSON billion this year—some provid-
it would expand its board by Precision Castparts Corp., ers use “cloud” in their mar-
three members, gaining the which had higher margins As the business world’s keting materials, sales pitches
support of activist investor El- than Alcoa. While Elliott likes shift to cloud computing picks and earnings reports to in-
liott Management Corp. as Alcoa’s aggressive research up steam, technology compa- clude a range of services, say
the aluminum maker prepares and development spending, nies face mounting pressure senior technology executives
to spin off its aerospace- and which it believes helps take from regulators, customers and industry analysts.
automotive-focused unit. market share from Precision and investors to be more The practice, which critics
JASON ALDEN/BLOOMBERG NEWS
The company said it would Castparts, the activist investor forthcoming about what they call “cloudwashing,” isn’t new.
name Ulrich “Rick” Schmidt, still sees room to cut costs classify as But as more companies con-
John Plant and Sean Mahoney and was encouraged by Alcoa’s CFO “cloud” services. sider shifting key business ap-
as directors, in turn obtaining announcement of comprehen- JOURNAL. Cloud-complications to the cloud, they
the hedge fund’s backing for sive review on cost structures, puting compa- say mixing cloud with other
Alcoa’s board slate at this the people said. nies sell shared services is confusing and
year’s annual meeting. “As we prepare to separate access to software or the pro- raises the risk of getting them
Prices for raw aluminum into two strong companies, we cessing power of their servers, locked into computing-ser-
have fallen sharply since 2011, Alcoa CEO Klaus Kleinfeld will lead the still-unnamed spinoff. have been actively working to which customers can use over vices contracts they don’t
a decline that was partly be- ensure each has a world-class the Internet. want or that don’t measure up
hind Alcoa’s announcement in cause of weaker demand and bumped up to 7.5%. The fund board of directors focused on The arrangement saves cli- to expectations.
late September that it would Chinese exports. The com- has supported Alcoa’s split un- creating shareholder ents some of the cost of run- “Vendors are constantly
spin off its more profitable pany’s stock fell almost 40% der the belief that the various value,” Alcoa Chief Execu- ning their own information- showing up and trying to sell
and diverse parts-making last year, leading some fund businesses are worth far more tive Klaus Kleinfeld said in a technology department, and you everything” as cloud, said
units. Meanwhile, its sprawl- managers to argue the com- apart than together, possibly news release. He said the new pay-as-you go pricing lets Clay Johnson, chief informa-
ing mining and smelting oper- pany was undervalued. as much as double the current directors—which bring the them adjust computing capac- tion officer of General Elec-
ation has struggled amid raw Elliott disclosed a 6.4% stock price, according to peo- board to 15 directors—will add ity quickly as demand changes. tric Co.’s GE Power & Water.
aluminum prices that have stake in the company in No- ple familiar with the matter. “valuable skills highly relevant Trying to stand out in a hot He said it takes “extra work”
dropped to six-year lows be- vember, which it has since Elliott has focused on Al- Please see ALCOA page B2 market—Gartner Inc. expects Please see CLOUD page B5
B2 | Tuesday, February 2, 2016 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abbott Laboratories
...........................B1,C4,C8
Aetna...........................B3
Elio Motors.................B4
Elliott Management ... B1
Exxon Mobil................B5
Ezubo...........................C3
Oracle .......................... B5
OSI Group....................B3
P
Investors Yet to Value GM Changes
Petrobras.....................C8 BY GAUTHAM NAGESH Ms. Barra’s agenda is ambi-
Agility Fuel Systems..B2 F Petronas......................C8
Alcoa............................B1
AND JOANN S. LUBLIN tious: She plans to spend $12
Facebook......................B4 Philip Morris
Alere..................B1,C4,C8 International.............B5
billion to revitalize its Cadillac
Ferguson Enterprises.B5
Alibaba Group.............B4 Phillips 66 ................... C8 General Motors Co. has de- brand, is developing new elec-
G
Allee Group.................B1 Procter & Gamble ....... C4 livered strong results during tric and hybrid vehicles, and
Alphabet...........A1,C4,C8 General Electric ..... B1,C2
General Motors ..... B2,B4 Q the past two years under Chief last month created a new car-
Altmark ....................... C2 Executive Mary Barra, but the sharing brand in the wake of
Amazon.com ............... B5 Goldin Financial Questar ....................... B3
American International Holdings....................C8 Quicken Loans .......... A10 company’s management team the Lyft investment.
Group.........................C1 Google..........................C8 R still doesn’t get much credit Another sign of change: de-
Apple......................A1,C4 H Red Rock Insurance....C2 from investors. cisions are increasingly influ-
B HSBC............................C3 Reynolds American.....B5 The nation’s largest auto enced by newer executives
BancInsure...................C2 I S maker by revenue trades be- with experiences outside of
Barclays..................C1,C3 Impala Platinum Sage Products.............B1 low its $33-a-share 2010 initial GM. To run Cadillac, she
BATS Global Markets.C1 Holdings....................C4 Santander Consumer public offering price amid tapped Johan de Nysschen, the
Berkshire Hathaway...C8 International Business USA Holdings............C3 worries over declining U.S. former head of Infiniti Motor
BHP Billiton................B5 Machines...................B5 SFX Entertainment .... B5 market share and fears that Co. Barry Engle, the former
Blackstone Group..A1,C3 J Stanford......................D1 CEO of Agility Fuel Systems
DANIEL ACKER/BLOOMBERG NEWS

recently strong U.S. auto de-
BP...........................B3,B5 Starboard Value..........B1
Brinker International..C1 Jack in the Box...........C1 mand has peaked. Inc., was picked to run GM’s
Stryker ........................ B1
J.P. Morgan Chase.C1,C3 On Wednesday, the Detroit South American business. Ms.
C T
L giant hopes to show it can Barra also hired an outsider as
CarMax........................B5 Tesla Motors...............B4
CBS..............................B2
Legg Mason .............. A10
21st Century Fox........B6
sustain its momentum while general counsel, a move
LendingClub.................C3 preparing for rapid changes in closely watched after GM’s ig-
Chipotle Mexican Grill U
Lubrizol........................C8 the years ahead. Wall Street nition-switch crisis.
................................B3,C1
Lyft..............................B4 Uber Technologies ...... B4
CIT Group .................... C1
UBS..............................C1
expects GM to post fourth- The shake-up reflects a de-
Comcast.......................B2 M quarter profit of $1.21 a share sire to reshape a notoriously
Comerica......................C1 McDonald's ............ B3,C1 W
on revenue of $38 billion, CEO Mary Barra’s ambitious agenda includes revitalizing Cadillac. insular corporate culture with
ConocoPhillips.............C8 MetLife........................C1 W.J. Bradley Mortgage
CoreLogic...................A10 Microsoft.....................B5 Capital.....................A10
compared with $1.19 a share a tradition of grooming inter-
Credit Suisse..........C1,C3 Mondelez International on sales of $39.6 billion during ecutives rather than wait for what we say we’re going to nal talent, including Ms. Barra,
Y
D-E ..................................... C4 the same period a year ago. the usual monthly meeting. do,” said Ms. Barra. “We have who joined GM as a college in-
Yahoo...........................B1
Dalian Wanda ............. B6
Morgan Stanley .......... C3
YouTube.......................A1
Ms. Barra, now board chair- In November, Mr. Ammann to prove ourselves as a leader- tern some three decades ago.
Deutsche Bank............C3 N-O Yucheng International man, has instilled at GM a new started huddling in San Fran- ship team.” “It’s not like the newcomers
Didi Kuaidi Joint.........B4 Naftogaz......................C8 Holdings Group.........C3 mantra following its 2009 cisco with Lyft’s president. He Ms. Barra also weathered a are steeped in the old culture,
Dominion Resources...B3 Neuberger Berman.....A1 Yum Brands............B3,C1 bankruptcy and safety crisis: quickly came to the conclusion safety crisis that emerged and the old guard hasn’t
put up or shut up. The evi- that three-year-old Lyft could soon after she became CEO in worked in the culture Mary
INDEX TO PEOPLE dence it has become a more

nimble and forward-thinking
company, GM executives say,
help GM prepare for a future
when city residents turn to
self-driving cars to get around.
early 2014. In September, GM
reached a criminal settlement
with the U.S. Justice Depart-
wants to install,’’ noted Paul
Winum, a senior partner at
RHR International, an advisory
A Gibbs, George..............C2 R is its quick decision on a re- “There was desire for both ment, agreeing to pay a $900 firm that hasn’t done work for
Agarwal, Anup..........A10 Guertin, Shawn M......B3 Rice, Peter...................B6 cent partnership with car-hail- [GM and Lyft] to move million penalty and admitting GM. “Large-scale culture
Ammann, Dan.............B2 Gulliver, Stuart........... C3 Rolapp, Brian .............. B2 ing service Lyft Inc. and mar- promptly,” Mr. Ammann said. to misleading regulators and change inside big companies
B H Rostom, Osama .......... C2
Rymer, John................B5
ket share gains in China last “Both saw the world changing consumers about a defective like GM usually takes years to
Barnes, Kevin..............B5 Hartman, Scott W......C2
year amid that country’s eco- quickly.” The investment was ignition switch linked to more take effect,’’ Mr. Winum said.
Barra, Mary.................B2 Hoffman, Jeffrey ........ C2 S
Baruch, Dan..............A10 J nomic turmoil. completed in a matter of than 120 deaths. “In the old GM, everybody
Sacconaghi, Toni.........B5
Bell, J. Edward............B1 Jamil, Aftab................B5 Sadek, Menatalla........C2
GM’s $500 million invest- weeks, a sign Ms. Barra has GM shares, which closed at was promoted from within,’’
Bernstone, Rob...........C4 Johnson, Clay..............B1 Samuelson, Paul.........C2 ment in Lyft came together in cut red tape and delegated big $30.11 on Monday in New York Tim Solso, GM’s lead indepen-
Braunstein, Douglas ... C1 Scanlon, Michael.........C4 a matter of weeks and was decisions. trading, are down more than dent director, said in an inter-
Buffett, Warren..........C8 K
Burke, Steve ............... B2 Kleinfeld, Klaus .......... B1
Scherr, Andrew B........C2 spearheaded by the car Going forward, Ms. Barra, 11% since the start of the year. view last month after relin-
Schmidt, Ulrich...........B1 maker’s president, Dan Am- 54 years old, believes Wall At that price, investors value quishing the chairmanship.
Burns, Alexander L Sillerman, Robert F.X.B5
Chatfield....................C2 Lavin, Sheldon............B3 Staley, Jes...................C3
mann. The old GM culture Street and other constituents the company at $46 billion. The shift means “you get
C M might have dithered on the in- are looking for consistent im- The decline comes amid boom- diversity in thinking,’’ and
T
Caintic, Vincent...........C2 Mahaney, Mark...........A1
vestment, but Ms. Barra held provement from the car ing sales of its pickup trucks things aren’t always done the
Chappell, James..........C3 Thain, John..................C1
Mahoney, Sean...........B1 Turner, Matthew.........C4 informal discussions with ex- maker. “We have to keep doing and sport-utility vehicles. GM way, Mr. Solso said.
D Manigault, Pierre........B1 Tuvey, Jason................C1
Damodaran, Aswath...B5 Mayer, Marissa...........B1
McKay, Lamar.............B3
V
Darwin, Rebecca
Wesson ..................... B1
Denhoy, Raj.................B1
DiBenedetto, David .... B2
Moonves, Leslie..........B2
N
Nash, Bill.....................B5
Venkatakrishnan, C.S. C3
W
Walters, Bob.............A10
NFL in Thursday Pact Non-Device Expansion
In separate acquisitions on Monday, Abbott added to its diagnostics
Ding Ning .................... C3
F
Farmer, Roger..............C2
P
Pavlik, Robert..............C4
Pichai, Sundar...........A10
Wang, Ray...................B5
White, Miles...............B1
Woolery, James .......... C1
With CBS and NBC segment, and Stryker added to its medical and surgical unit. Here's
where those units stacked up in the companies' 2015 revenue.
Revenue segments in 2015, in billions
G Plant, John..................B1 Y BY JOE FLINT voices talking about Thursday
Gianopulos, Jim..........B6 Porat, Ruth..........A10,C8 Yang Liqun .................. B3 Night Football as possible.”
The National Football The network, which also
Abbott Stryker
League is taking a divide-and- carries Sunday Night Foot-
GARDEN
Medical Devices Nutrition Medical and Orthopedics
“Our audiences are very dif- conquer approach to its televi- ball, was aggressive in pursu- $5.04B $6.98B Surgical $4.22B
ferent,” said Sid Evans, the for- sion rights. ing the Thursday games. The $3.90B
mer editor-in-chief of Garden & After two years of CBS high ratings NBC’s Sunday
Gun who now edits Southern having exclusive broadcast coverage generates likely
Continued from the prior page Living. He noted that more rights to Thursday night foot- played a part in the NFL’s de-
April 2007, the publication has than 90% of Southern Living’s ball, the league is splitting cision to cut the network in $20.41B $9.95B
hewed to its own course, focus- subscribers are female. Women the package with CBS and on Thursday. total total
ing on everything Southern account for about 47% of Gar- NBC for the next two seasons, “My sense is this is the NFL
from ham biscuits to bird-dog den & Gun’s subscribers. a move that will increase an- saying NBC has done great job
trainers. Its tone is chatty, The question is how to nual rights fees to $450 mil- on Sunday, and maybe they
Neurotechnology
never preachy. While it has maintain Garden & Gun’s mo- lion from $300 million per can bring some of that magic Pharmaceuticals Diagnostics and Spine
tackled difficult subjects—in- mentum. The magazine’s read- season. Each network is pay- to Thursday,” said NBCUniver- $3.72B $4.65B $1.83B
cluding coverage last year of ers have a median age of 54 ing $225 million, people fa- sal Chief Executive Steve
the shootings at the Emanuel and the niche publication has miliar with the matter said. Burke. Thursday is considered Source: the companies THE WALL STREET JOURNAL.
African Methodist Episcopal only a modest digital presence. Under the terms of the one of the most important ad-
Church in Charleston—it re-
mains tightly focused on food,
drink, the land, travel, and the
sporting life, including bird
It attracted 136,000 unique vis-
itors in December, according to
measurement tracking firm
comScore Inc., up from 116,000
deal, CBS and NBC will each
carry five Thursday games.
As has been the case for the
past two years, the league-
vertising nights of the week,
since movie studios and car
companies spend heavily in
advance of the weekend. NBC
DEALS naed by the U.S. Securities and
Exchange Commission in rela-
tion to its tax strategies and
policies, and its sales practices
hunting and shotguns. Roughly in August. owned cable channel NFL is a unit of Comcast Corp. Continued from the prior page related to government entities
72% of subscribers live in the David DiBenedetto, Garden Network will simulcast the While CBS is losing three testing is accelerating as in Africa. An Alere spokes-
Southeast or Southwest. & Gun’s editor, said other ana- broadcast portion of the games, the lower rights fees health-care providers and con- woman said the company is co-
lytics showed the magazine has package. The NFL Network will be a welcome relief, as it sumers look for better ways to operating with the SEC’s inves-
increased its online readership will also carry eight games had been losing money on the get fast, accurate and action- tigation.
Garden & Gun is steadily since 2013. “Our num- exclusively that will be pro- package. able information,” Abbott’s Mr. Alere shares jumped 45% on
tightly focused on bers aren’t huge, but it mirrors duced by CBS and NBC. “It is a more economically White said during a conference Monday, to $54.11, and Ab-
our circulation in that we Brian Rolapp, the NFL’s ex- feasible package than anything call with analysts on Monday to bott’s shares were up 1.6%.
food, drink, the land aren’t a mass magazine,” he ecutive vice president of me- else would have been,” said discuss the acquisition. Stryker’s deal for Sage is its
and the sporting life. said. dia, said it made sense to split CBS Corp. Chief Executive Les- Point-of-care tests are often latest geared toward reducing
But Garden & Gun isn’t im- up the Thursday package be- lie Moonves. “I really believe more expensive than those infections and medical mis-
mune to increased competition cause, “we want as many everybody won.” done at a central, off-site lab, haps that can cost hospitals
“It’s the essence of what I for marketing dollars. Like Jefferies’s Mr. Denhoy said. money. In December 2013,
remember growing up with for many bigger magazine rivals But the tests are also much Stryker purchased the maker
30 years in the South,” said trying to generate nonadvertis- faster at diagnosing disease of software designed to track
Wallace Gibson, 70 years old, a ing revenue, it operates an on- and infection, which, if treated surgical sponges and prevent
Virginia resident and longtime line store, a website for expen- quickly, can prevent or reduce them from being left in pa-
subscriber. “We love our gar- sive real-estate listings and an even greater costs down the tients’ bodies during surgery.
dens, love our dogs, and love event business. “It’s a chal- road, he said. Stryker is based in Kalamazoo,
all the eccentric people in our lenge,” said Ms. Darwin. Alere, based in Waltham, Mich. Sage is based in Cary, Ill.
lives.” With print readership and Mass., had grown rapidly Stryker Chief Executive
Garden & Gun has the lush ad sales on the rise, Garden & through acquisitions, but more Kevin Lobo said on a confer-
feel of an upscale maga- Gun is committed to staying in- recently sold off some of its ence call with analysts on
MANNY FLORES/CSM/ZUMA PRESS
zine and the affluent reader- dependent, she said. noncore businesses such as its Monday that the acquisition of
ship to match. Subscribers At a time when gun control analytics business for disease Sage shouldn’t be viewed as a
have an average household in- has become a heated topic of management. strategic shift away from or-
come of $332,000, compared debate in the country, Garden Alere struggled in 2015, thopedic devices.
with $66,000 for Time Inc.’s & Gun has never shied away missing analyst estimates in “The next deal we do could
Southern Living and $294,000 from its love of field sports the second half of the year, in very well be in the implant
for Hearst Corp.’s Town & such as bird hunting. The De- part due to challenges in its side of the business or it may
Country. cember/January issue, titled malaria and HIV-testing busi- not,” Mr. Lobo said. Stryker
Despite guaranteed circula- “Best of the Sporting South,” ness in Africa, Mr. Denhoy said. shares were trading flat at
tion of 350,000 that is far out- includes a look at gun dog Under the deal, CBS and NBC will each carry five Thursday games. Last August, Alere was subpoe- Monday’s close.
stripped by 50-year-old South- trainers and a feature story
ern Living’s 2.8 million, Garden about bird shooting in England.
& Gun is luring more advertis-
ers and readers to print at a
time when many are moving
online. Single-copy sales of
The publication’s name was
“initially a hang up, but they’ve
overcome that now,” said Leslie
Tucker, media director for the
ALCOA holders owning all shares out-
standing of both companies.
“They think they can do
better as an aerospace and
Panama 8 Day Tour $1195
Guided Tours Since 1952 +tax,fees
Guatemala, Tikal 10 days $1295
Garden & Gun rose 17% for the Richards Group Inc., an inde- Continued from the prior page auto company than a commod- Costa Rica 9 days $1095
six months ended in June, pendent Dallas-based advertis- to the markets we serve, in- ity company,” said Charles ● Panama & Canal 8 days $1195
while paid and verified sub- ing agency. “They position cluding aerospace and auto- Bradford of Bradford Research Nova Scotia, P�E�I� 10 days $1395
scriptions were up 10%, accord- themselves as a national life- motive.” Inc. Canadian Rockies 9 days $1595
ing to the Alliance for Audited style publication with a fanati- Dave Miller, senior portfo- Roy Harvey, currently exec- Grand Canyon 8 days $1395
Canal Cruise, Rainforests & California Coast
Media. cal readership.” lio manager at Elliott, said in utive vice president and presi- 8 days $1395
Beaches. All Meals Included! Mount Rushmore
Garden & Gun sold 470 print The title is what immedi- the release that Alcoa was tak- dent of global primary prod- 8 days $1295
Caravan makes it so easy and New England
ad pages in 2015, up 6% from a ately appealed to Eric ing the right steps. Represen- ucts at Alcoa, will serve as 8 days $1295
year earlier, compared with a Hunter, an actual hunter, long- tatives of Elliott, a New York chief executive of the new up- affordable to explore Panama.
1.3% increase at Southern Liv- time subscriber and resident of hedge fund founded by Paul stream company, which will 8-Day fully guided vacation “ Brilliant, Affordable Pricing ”
—Arthur Frommer, Travel Editor
ing to 890 pages. Meanwhile, Montgomery, Ala. “I thought it Singer, have been engaging include the raw-metals busi- with two daytime cruises on
marketers spent $17.4 billion on was a cool mix of life in the with senior Alcoa executives, ness and keep the Al- the Panama Canal. Free 28-Page Brochure:
print advertising in consumer South,” said Mr. Hunter, 55. “I and called the talks construc- coa name. Mr. Kleinfeld, mean-
magazines in 2015, down 4.5% enjoy all of it, and when I put it tive in the news release. while, will lead the still-
compared with the prior year, on the table, my wife picks it The Alcoa split is expected unnamed spinoff. He will also
according to research firm up and enjoys it as much as I to close in the second half of serve as temporary chairman
Kantar Media. do.” the year, with Alcoa share- of the raw aluminum business.
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | B3
BUSINESS NEWS
GasDistributors
AgreetoCombine
BY LISA BEILFUSS The combined company
would serve about 2.5 million
Dominion Resources Inc. electric utility customers and
said on Monday it has agreed 2.3 million gas utility custom-
to buy Questar Corp. for ers in seven states, the compa-
about $4.4 billion in cash, in a nies said. Dominion said the
move to expand its natural-gas deal, expected to be completed
operations into the West. by year-end, would add to
Richmond, Va.-based Do- earnings upon closing.
minion will pay $25 a share, If not completed by Feb. 28,
representing a 23% premium 2017, the merger may be ter-
to Questar’s closing stock minated and result in termina-
QILAI SHEN/BLOOMBERG NEWS
price on Friday. The deal in- tion fees of about $154 million
cludes the assumption of Que- for Dominion and about $99
star’s debt; as of Sept. 30, the million for Questar.
company had roughly $1.31 bil- Separately on Monday, Do-
lion in short and long-term minion reported a fourth-
debt on its balance sheet. quarter operating profit of
Questar, which is based in $416 million, or 70 cents a
Salt Lake City, is a natural-gas share, down from $490 mil-
A U.S. poultry supplier is disputing a verdict by a court saying it sold ‘inferior products’ to McDonald’s, KFC and others in China. distributor primarily serving lion, or 84 cents, a year ear-
customers across Utah. Do- lier. The result fell short of the
U.S. Firm Hits China Ruling

minion, which focuses on the company’s expected earnings
Mid-Atlantic, said the deal of 85 cents to 95 cents a share,
would “provide enhanced geo- a miss Dominion attributed to
graphic diversity” to its opera- warmer-than-normal weather.
tions. For this year, Dominion
Food supplier OSI that it fined two of OSI’s Dragon TV, the state-run concert with food-safety Dominion said it expects projects $3.60 to $4 in ad-
units—one in Shanghai and an- broadcaster that aired the watchdogs, the document said, the Questar pipeline system to justed earnings per share, up
fights fine, prison other in Hebei province—2.4 2014 report, saying it “made adding that before the report become more valuable as Utah from $3.44 in 2015 and brack-
sentences over goods million yuan ($365,000) and false and incomplete accusa- finished airing in 2014, author- and other Western states com- eting the $3.85 average ana-
sentenced 10 people to prison, tions that ignored facts and ities closed the plant where ply with the U.S. Environmen- lyst estimate. First-quarter
sold to fast-food chains. including Australian Yang Chinese law,” the statement the reporters worked and or- tal Protection Agency’s Clean per-share earnings will be be-
Liqun, a general manager at said. Dragon TV didn’t respond dered an investigation. Power Plan and meet state- tween 90 cents and $1.05, the
BY LAURIE BURKITT OSI in China, who was sen- to requests for comment on The document said Dragon mandated renewable stan- company said, in line with
tenced to three years, followed OSI’s statement. TV aired the report without ju- dards. Wall Street estimates.
BEIJING—In an unusual by deportation. Mr. Yang OSI’s business in China col- dicial review and confirmation. The deal comes amid a deep Questar shares, which had
move, American food-process- wasn’t reachable to comment. lapsed after the Dragon TV re- Asked about the assertions in rout in energy prices. The fallen 21% in the 12 months
ing company OSI Group LLC The Australian Embassy in port aired in July 2014. Shortly OSI’s internal report, Dragon price of natural gas has fallen through Friday’s close, rose
vehemently disputed a Chinese Beijing didn’t immediately re- afterward, Chinese authorities TV earlier declined to com- 7% since the start of the year nearly 23% to $24.99 on Mon-
court’s ruling that it had sold spond to requests for com- arrested six employees of the ment. Companies that have in- and is down about 15% over day. Dominion shares slipped
“inferior products” to fast- ment. Mr. Yang, a naturalized company’s Shanghai unit and vested millions in the Chinese the past 12 months. 2.8% to $70.18.
food chains in China including Australian citizen from China, launched a probe. market rarely push back
McDonald’s Corp. and KFC was the only non-Chinese citi- The company’s initial re- against government decisions
parent Yum Brands Inc. and zen among the 10 sentenced. sponse to the allegations in or openly dispute legal set-
claimed it had been the subject The other nine defendants the report was swift and re- backs. In its statement on
of a smear campaign. face sentences from 19 months morseful. Within days, Sheldon Monday, OSI said it “can no
Challenging a Chinese court to 32 months, the statement Lavin, OSI’s chief executive, longer accept injustices
verdict is rare for a company said. Shortly after the ruling, apologized for “completely un- against our people and our
trying to regain ground in the the Aurora, Ill., company said acceptable” missteps at the reputation.”
country. China had been OSI’s it planned to appeal: “The ver- company. Since then, however, OSI had poured capital into
key growth market but its dict is inconsistent with the OSI has attempted to question China to build up chicken
business there was decimated facts and evidence that were the veracity of the allegations. farms and meat-processing
after a 2014 television report presented in the court pro- Internal OSI documents re- units to supply fast-food
CLIFF OWEN/ASSOCIATED PRESS

purported to show workers in ceedings.” It said the Chinese viewed by The Wall Street chains—foreign and domes-
its Shanghai plant doctoring authorities unjustly held OSI Journal indicate that a review tic—across the country. In
the production dates of meat employees for 17 months and the company conducted after 2013, it opened its ninth and
to resell chicken nuggets and barred OSI’s senior leaders and the scandal found that a dis- 10th plants in China, part of a
patties that had passed their reporters from attending the gruntled former employee and $750 million investment. The
sell-by dates. trial. Prosecutors weren’t im- two journalists staged the re- plants had been processing
The Shanghai Jiading Peo- mediately available to com- port by Dragon TV. The report- 50,000 tons of food a year.
ple’s Court said in a statement ment. OSI also said it planned ers used fake identifications —Jacob Bunge and Lilian Lin
on its microblog on Monday to take legal action against and the TV station worked in contributed to this article. A Dominion Energy LNG terminal located in Lusby, Md.
Affordable Care Act CDC: Chipotle E. Coli Outbreaks Over

Is Dark Spot for Aetna BY JESSE NEWMAN
AND JULIE JARGON
Chipotle shares were up
about 4.5% on Monday, closing
Communications LLC, said Chi-
potle still has its work cut out
BY ANNA WILDE MATHEWS wants to see more regulatory at $472 at the end of trading. for it. “Consumers care about
AND ANNE STEELE moves to improve the ACA Two E. coli outbreaks that Sales at Chipotle restau- only one thing: Will this hap-
marketplaces for insurers. The sickened 60 customers of Chi- rants and the company’s stock pen again? To regain its credi-
Aetna Inc. became the lat- company said tweaks made so potle Mexican Grill Inc. and price have been sliding since bility, Chipotle needs to make
est health insurer to report far by the Obama administra- contributed to a sharp decline the first E. coli cases linked to certain it doesn’t,” she said.
losses on 2015 Affordable Care tion have been promising, but in traffic at its restaurants ap- the larger outbreak appeared Though many people have
Act business, a dark spot as not enough to affect Aetna’s pear to be over, the U.S. Cen- in the Pacific Northwest in avoided Chipotle in recent
JOE RAEDLE/GETTY IMAGES
the company unveiled sharply financial projections. ters for Disease Control and late October. That outbreak months, teenagers and young
higher profit for the fourth In an interview, Chief Fi- Prevention said Monday. expanded as customers in adults largely have remained
quarter. nancial Officer Shawn M. Federal investigators said other states reported getting loyal to the company, accord-
The company said its over- Guertin said it was too soon to they couldn’t identify a contami- sick after eating at Chipotle ing to market-research firm
all profit leapt 38% in the final say what Aetna’s presence on nated food or ingredient respon- restaurants. NPD Group Inc.
quarter of the year, as a key the ACA exchanges would look sible for the illnesses, which oc- No deaths were reported in The firm said in the quarter
measure of spending on medi- like in 2017, and the company curred late last year in 14 states. either outbreak, but 22 of the ended in December, total visits
cal costs fell. The strong quar- will need to assess the busi- “We are pleased that the A Chipotle restaurant in Miami. 60 total people who became ill to Chipotle were down 5% com-
terly results were fueled ness going forward. “It’s pre- CDC has concluded its investi- were hospitalized. pared with a 19% traffic gain in
largely by its government mature to declare victory or gation,” Chipotle spokesman the larger of the two outbreaks The burrito maker also has the year-ago quarter, though
business, which includes Medi- defeat,” he said. Chris Arnold said in a state- from 53 to 55, according to the been hobbled by salmonella the younger customers in-
care and Medicaid. In earnings calls in recent ment. “We have taken signifi- agency. The most-recent illness cases in Minnesota in August creased their visits by double-
weeks, other insurers have cant steps to improve the safety connected to that outbreak be- that sickened 64, and out- digit percentage points in 2015.
38%
said their ACA plans dragged of all of the food we serve.” gan on Dec. 1. No additional ill- breaks of norovirus linked to Investors will get a better
down overall results. Anthem Since the CDC’s last update nesses were reported in the Chipotles in California and sense of how the E. coli and
Inc. said it saw pressure on its to the public on Dec. 21, two smaller outbreak, which sick- Boston that sickened hundreds. other outbreaks affected Chi-
The company’s overall increase exchange business, where en- more people were reported ill, ened five people in three Eden Gillott Bowe, president potle when the company re-
in profit in the quarter as rollment has come in below in Delaware and Kentucky, states and was associated with of Santa Monica, Calif.-based ports its fourth-quarter earn-
spending on medical costs fell some earlier expectations. The raising the number of cases in a different strain of E. coli. crisis management firm Gillott ings on Tuesday.
company said it roughly broke
even in 2015 on individual
Though individual health
plans are a small share of
Aetna’s overall revenue and
plans, and it expects a profit
in 2016, but below its target
margin of 3% to 5%.
BP Reveals Executive Shuffle Ahead of Results
enrollment, which totaled 23.5 Last month, UnitedHealth BY SARAH KENT
million at the end of 2015, Group Inc. deepened its pro-
they are drawing outsize at- jected losses for 2016 ACA LONDON—BP PLC on Mon-
tention amid questions about plans to more than $500 mil- day announced a management
the future of the marketplaces lion, part of which it booked shake-up, promoting the head
that are at the heart of the as a portion of its 2015 results, of its exploration and produc-
federal health law. and said it had losses of about tion arm, Lamar McKay, to the
Aetna said it ended 2015 $475 million on its 2015 ACA- new position of deputy chief
with about a million custom- plan business. It has said it executive.
ers enrolled in individual would consider withdrawing The company pitched the
health plans—roughly three- from the health-law market- executive reshuffle as part of a
quarters of those through the places, a decision expected to broader plan to reorganize
ACA exchanges—and doesn’t be made later this year. and bolster its executive
expect material growth in the Humana Inc. is also likely to team’s capacity amid one of
F. CARTER SMITH/BLOOMBERG
first quarter. disclose losses on its 2015 ACA the worst price slumps in the
Though the segment’s exchange business when it re- industry’s history. A company
fourth-quarter performance ports earnings on Feb. 10. Last spokesman said the change is
was a bit better than Aetna last month, the company warned it “not about succession.”
projected, the business lost would need to set aside a re- BP and its peers are strug-
money in 2015, with a negative serve at the end of 2015 to ac- gling to contend with a steep
margin of around 3% to 4% for count for losses expected on its fall in oil prices over the last
the year. Aetna said it aims to 2016 ACA business. year-and-a-half that has eroded
get its individual-plan business Overall, for the quarter earnings and forced the world’s Lamar McKay—a 35-year veteran of BP—will focus on the company’s long-term strategy.
to break-even in 2016, helped ended Dec. 31, Aetna reported biggest oil companies to slash
by moves that included with- earnings of $320.8 million, or jobs and delay projects. BP al- fourth-quarter and full-year re- mar’s new role will allow us to company’s long-term strategy.
drawing from some states and 91 cents a share, up from $232 ready has outlined plans to sell sults, which are expected to further concentrate our atten- It is an area where BP has on-
rate increases. million, or 65 cents a share, a as much as $8 billion-worth of show a sharp drop in profit. tion on BP’s highest priorities lybeen able to focus in recent
But Aetna Chief Executive year earlier. assets during the next two “These changes simplify, fo- through this challenging time months after it completed a
Mark T. Bertolini said during a Operating earnings were years, while significantly reduc- cus and better align account- for our whole industry.” $20.8 billion settlement with
call with analysts that the $1.37 a share. Operating reve- ing spending and staff in a bid abilities within our experi- Mr. McKay—a 35-year vet- the U.S. government for its
company has “serious con- nue, which excludes net real- to cover its costs with free cash enced and versatile senior eran of the company—will take 2010 Gulf of Mexico oil spill,
cerns about the sustainability ized capital gains and losses, flow by 2017. The reshuffle team,” said BP Chief Executive on some of Mr. Dudley’s re- removing significant financial
of the public exchanges,” and grew 2.2% to $15.09 billion. comes a day ahead of BP’s Bob Dudley. “In particular La- sponsibilities and focus on the uncertainty.
B4 | Tuesday, February 2, 2016 * * THE WALL STREET JOURNAL.
TECHNOLOGY @wsjd | wsjd.com
Mixed-Reality Firm Taps Fresh Funds Operator

Magic Leap, which is Of Poker One Giant Leap
developing a product
still, says its valuation
Funding for virtual- and
augmented-reality firms,
in millions
Websites
stands at $4.5 billion
BY JACK NICAS
Share of Magic Leap
$800
Gets Bid
$793.5 million BY JUDY MCKINNON
Magic Leap Inc. is an odd-
ity in the tech industry, even 600 Amaya Inc.’s top execu-
by Silicon Valley’s heady stan- tive said he and a group of un-
$542 million
dards. identified investors plan an
Located adjacent to a 400 all-cash takeover offer, valued
trailer park in South Florida, at about 2.3 billion Canadian
Magic Leap has amassed dollars ($1.6 billion), for the
nearly $1.4 billion in funding, 200 online gaming company.
more than 500 employees and $50 million Chairman and Chief Execu-
a dozen big-name investors. tive David Baazov, who owns
Yet the secretive startup 0 24.6 million shares, or nearly
still lacks one major detail: a 2012 ’13 ’14 ’15 ’16 19%, of Amaya, said Monday
product. After nearly four Note: 2016 is year-to-date and includes only that his group intends to offer
years, Magic Leap still hasn’t funding for Magic Leap. C$21 a share in cash for the
publicly shown a head- Sources: CB Insights; the company company, which operates the
mounted gadget it is develop- THE WALL STREET JOURNAL. PokerStars and Full Tilt online
ing that projects images onto poker sites.
users’ eyes so the digital a small screen above users’ The offer would value the
world appears to interact with right eyes—suggests that con- Amaya, including Mr. Baavov’s
real life. sumers are loath to wear com- stake, at about C$2.80 billion.
On Tuesday, the startup puters on their face all day. It represents a 40% premium
confirmed another big step to- Google has revived its Glass to Amaya’s closing price Fri-
ward bringing its so-called project for business applica- day of C$14.99.
mixed-reality device to con- tions, and Microsoft Corp. On Monday, the company’s
sumers, announcing it raised plans to distribute its $3,000 shares surged 20% to C$18.00
MAGIC LEAP
$794 million in new funding HoloLens mixed-reality head- in Toronto trading. Amaya has
from some top firms in tech, set to developers this quarter. about 133.4 million shares out-
finance and entertainment. Neither company has said it’s standing, according to data
Chinese Internet giant Alibaba Magic Leap is working on a gadget to project digital images that seem to interact with reality. developing a consumer device. provider FactSet.
Group Holding Ltd. led the Mr. Abovitz declined to dis- Amaya confirmed Mon-
funding round, which Magic across the country as if they fore,” said Brian Wallace, cuss price but said Magic Leap day that it had been ap-
Leap says values the Dania were in the same living room. Magic Leap’s marketing chief. is building a consumer prod- proached by Mr. Baazov but
Beach, Fla., company at $4.5 This blending of virtual and Even so, Mr. Abovitz claims uct that will also have busi- said no formal offer has been
billion. real worlds is called mixed, or Magic Leap’s product isn’t ness potential. Magic Leap’s received. It said it has formed
Alphabet Inc.’s Google and augmented, reality, different years away. “We are actively website shows an image of a special committee to review
Qualcomm Inc., which backed from the virtual-reality tech- in product development, man- surgeons looking at a three-di- a proposal when it gets one.
Magic Leap’s $542 million nology developed by Facebook ufacturing operations and sup- mensional heart. The specific structure of
round in October 2014, rein- Inc.’s Oculus unit and others ply chain lines,” he said, add- Mr. Abovitz said the device the investor group’s proposed
vested. They were joined by that place people entirely into ing the company will “be in could theoretically translate deal hasn’t been determined,
J.P. Morgan Chase & Co., Fi- a digital space. the market relatively soon.” signs and menus automatically according to a statement re-
MIKE BLAKE/REUTERS
delity Management and Re- “Your brain is the video dis- Magic Leap faces other when users travel abroad, or leased by Mr. Baazo
search Co., Morgan Stanley, play; there’s nothing in the challenges. Virtual-reality even give tips as users study a Amaya, the world’s largest
Wellington Management Co., way anymore,” said Magic headsets harness the energy game of chess. Alibaba Execu- online gambling company, is
funds advised by T. Rowe Leap founder and Chief Execu- and computing power of con- tive Vice Chairman Joe Tsai is under investigation by Que-
Price Associates Inc. and tive Rony Abovitz, a 45-year- nected PCs, game consoles or joining Magic Leap’s board, bec’s securities regulator as
Time Warner Inc. unit Warner old biomedical engineer who smartphones. Mr. Abovitz said which includes Mr. Abovitz, part of a vast insider-trading
Bros. sold his last startup, a robotic Magic Leap’s Rony Abovitz. Magic Leap’s devices will be Google CEO Sundar Pichai, and case that stems from its $4.9
Magic Leap is one of a surgery firm, for $1.7 billion. “beautiful, light,…mobile and Richard Taylor, co-founder of billion acquisition of Poker-
number of startups preparing Virtual-reality headsets from scratch. probably much smaller than Weta Workshop, the New Stars. Amaya bought Poker-
for a future beyond smart- from Oculus, Sony Corp. and Magic Leap said it has de- most people would expect.” Zealand special-effects studio Stars in mid-2014, and late
phones and laptops, where HTC Corp. are hitting stores veloped new computer chips Yet they will also likely behind the “Lord of the Rings” that year said certain trading
people are immersed in digital this year, in part because the that leverage silicon photon- need their own high-grade movies. Alibaba said that it in- activities related to the pur-
worlds. The company is creat- technology is easier to achieve ics, a field of semiconductors computer processors and bat- vests “in forward-thinking, in- chase were under investiga-
ing goggles that can project than mixed reality, which must that essentially involves min- tery life to last a day. novative companies” that it tion. It has said it has found
3-D images onto the viewer’s have sophisticated sensors and iaturizing fiber-optic technol- Consumers generally use “can both provide support to no evidence of wrongdoing by
retina so it appears that, say, a software to constantly inter- ogy onto a chip. These compo- virtual reality in isolated set- and learn from.” The company its employees and executives.
furry monster is walking pret the real-life surroundings. nents can send data far faster tings, such as at home. Magic declined further comment.
around in real life. That is why Magic Leap than conventional silicon Leap wants users to wear its Alibaba was Magic Leap’s
Presumably, in the future, needs so much capital—the chips. “We need to shrink devices in public. The failure “first-choice strategic partner
viewers could have conversa-
tions with family members
company says it is virtually
creating a new technology
components that have never
been shrunk to this size be-
of Google Glass—an eye-
glasses-like device that placed
to enter China,” Mr. Abovitz
said.
Digits
Tesla Seeks License to Sell Cars in Michigan

BY MIKE RAMSEY an independent dealer as an in- it couldn’t come to an arrange-
Facebook’s WhatsApp
Claims a Billion Users
termediary. Tesla has opposed ment with individual states. It WhatsApp, the bare-bones
Tesla Motors Inc. filed an such dealer-franchise laws, call- has fought battles in nearly ev- messaging app owned by Face-
application for a dealership li- ing them anticompetitive. Tesla ery state in the U.S. with asso- book Inc., now boasts a billion
cense in Michigan, setting up allows customers to order vehi- ciations that represent car users a month.
a potential legal fight over the cles directly from the company, dealers. These associations About 42 billion messages
state’s ban on selling cars di- something that other manufac- have supported legislation that and 1.6 billion photos are shared
rectly to consumers. turers are prohibited from doing. aims to prevent Tesla from daily over the seven-year-old
The Palo Alto, Calif., elec- A formal denial of its appli- selling vehicles directly to con- app, the company announced
tric-car maker filed the application by Michigan could sumers. They also have fought Monday. Users also send 250
cation in November for per- prompt Tesla to pursue addi- to keep on the books existing million videos every day and
mission to open a dealership tional legal avenues to fight a laws that prevent Tesla from have created 1 billion groups.
and service center in the state, law it calls “very harmful.” running its own dealerships. Facebook bought WhatsApp
home to top auto makers in- “Tesla is committed to be- Mr. O’Connell said he pre- about two years ago in a deal
cluding General Motors Co. ing able to serve its customers fers the issue to be settled worth about $22 billion. Facebook
and Ford Motor Co. in Michigan, and is working through legislation. He added, founder and CEO Mark Zucker-
Michigan’s office of the Sec- with the legislature to accom- “we are exploring every other berg has previously said he ex-
retary of State, the agency plish that. The existing law in option available to us.” pects WhatsApp to contribute to
that handles dealership li- Michigan is very harmful to Michigan and Texas are the company’s bottom line after
MARIO ANZUONI/REUTERS
censes, has been reviewing the consumers,” a Tesla spokes- among a small group of states it hits roughly a billion users.
application said Fred Wood- woman said. “Tesla will take that have a flat prohibition on Since the Facebook acquisition,
hams, an agency spokesman. all appropriate steps to fix this any direct sales. The laws were the messaging app has largely
Tesla has been busy lobby- broken situation.” created to prevent car makers retained its autonomy. Whats-
ing Michigan legislators to The Federal Trade Commis- from building their own stores App’s co-founder Jan Koum re-
change the law to allow direct sion on Jan. 19 sponsored a that would compete with inde- mains averse to advertising, the
sales of electric vehicles. A bill day-long series of panel dis- pendent dealerships. Such bread and butter for the Face-
is expected to be introduced cussions about automotive re- Tesla lets customers order models like its P85D, above, directly. competition could potentially book and Instagram apps.
Tuesday in Michigan by Rep. tailing, with much of the fo- undercut independent dealer- —Deepa Seetharaman
Aaron Miller, said Diarmuid cus on Tesla and Elio Motors the Boston office of Morgan, argued that such laws run ships’ prices and undermine in-
O’Connell, Tesla’s vice presi- Inc., another company aiming Lewis & Bockius LLP, said at afoul of Congress’s constitu- vestments, according to lawyers
Uber Links With Alipay
dent of business development. to sell cars directly to custom- that meeting dealer-franchise tional power to regulate inter- and economists who have scru- Outside mainland China
About a year ago, Michigan ers. Phoenix-based Elio is de- laws that prohibit direct sales state commerce. tinized dealer-franchise laws. Uber Technologies Inc. is ex-
passed a law prohibiting car veloping a three-wheeled, sin- could potentially be chal- Tesla several years ago said Michigan Automotive Deal- panding its cooperation with Ali-
makers from selling directly to gle-occupant vehicle lenged as unconstitu- it would consider a federal ers Association couldn’t be baba Group Holding Ltd.’s on-
customers in the state without Daniel Goldberg, a lawyer in tional. Tesla previously has lawsuit to resolve the issue if reached for comment. line-payment affiliate, allowing
Chinese users to pay for rides
with Alipay while traveling out-
YAHOO
down from the company’s Analysts expect Yahoo’s least five managers who were side mainland China.
peak of about 14,000 before earnings before interest, taxes, working on Brightroll, the Great Divide Uber and Alipay are working
she started in 2012. depreciation and amortization video ad service it acquired in Change from a year earlier in closely despite the fact that Ali-
The CEO cut 1,800 employ- to total $900 million in 2015, 2014, according to a person fa- revenue and expenses at Yahoo. baba holds a stake in rival Chi-
Continued from page B1 ees in the first nine months of which would be the first time miliar with the matter. nese ride-hailing service Didi
took the reins. last year, mostly workers in that annual figure has fallen Other employees said they 25% Kuaidi Joint Co. as well as
Expenses
In the first nine months of offices outside the U.S., in- were waiting nervously for Uber’s biggest U.S. rival, Lyft Inc.
20
2015, operating expenses to- cluding China, India and Can- news of who would be cut or In China, Uber users can al-
taled $3.9 billion, up 20% from ada.
Expenses are up what areas of the company ready pay for their rides using
15
the same period in 2014. But Yahoo’s organization is after deals were would be shut down. Alipay, China’s most popular on-
During that same time, rev- still massive compared with Ms. Mayer is expected to an- 10 line payment service operated by
enue excluding commissions the size of its business.
made to drive traffic nounce greater focus on Project Alibaba affiliate Ant Financial
paid to search partners In the first nine months of to the search engine. Index, an internal project to 5 Services Group. The new part-
dropped 4% to $3.09 billion. last year, Yahoo generated an build a search engine tailored Revenue* nership extends their coopera-
0
A large part of the recent average $345,000 in revenue to mobile phones, said a person tion beyond mainland China.
increase in expenses is owed from each employee, lower below $1 billion in at least six familiar with the matter. –5 Uber said in a statement that
to costly deals Ms. Mayer than Twitter Inc., which made years. The company has posted the cross-border payment ser-
struck with Mozilla Corp. and about $359,000 per employee Revenue for the fourth listings for at least 190 jobs on –10 vices with Alipay will first start
Oracle Corp. to provide traffic during that period; Alphabet quarter is projected to rise to its website in January, the 2013 ’14 ’15 with Hong Kong, Macau and Tai-
to Yahoo’s search engine. Inc., with $895,000 per em- $1.19 billion, an increase of vast majority of which are for wan this month, and “will be ex-
*Excludes traffic acquisition costs paid
Ms. Mayer has lowered ployee; and Facebook Inc., less than 1% from a year ear- engineers. to search partners tended to more regions around
head count to 10,700 employ- with just over $1 million in lier. —Ryan Knutson Source: the company the world during the year.”
ees in the most recent quarter, sales per employee. Last week, Yahoo cut at contributed to this article. THE WALL STREET JOURNAL. —Juro Osawa
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | B5
CFO JOURNAL.
Big Number
55%
Proportion of
companies whose
returns fell short of
their cost of capital
in 2015
Many economists say compa-

nies aren’t investing enough
money in their businesses. A
new analysis suggests, however,
that such investments might not
be paying off.
More than half—55%—of
nearly 42,000 companies around
the world didn’t generate re-
turns on their invested capital
last year that were high enough
to cover the cost of their bor-
rowings and stock, according to
Aswath Damodaran, a finance
professor at New York Univer-
sity’s Stern School of Business.
Indeed, the companies’ me-
dian return was 3.1% less than
their cost of capital, or the rate
of return required to cover the
riskiness of their investments.
A company’s overall cost of
capital reflects the cost of both
its equity and debt.
The formula also incorporates
PHIL FOSTER
interest rates—which have been

exceptionally low in recent
years—and measures of implied
investment risks, which have
CLOUD fined,” he said.

Many cloud providers in-
corporate older tools, such as
managed hosting services, into
service and maintenance is
“highly complex,” said Aftab
Jamil, leader for the technol-
ogy and life-sciences group at
port Services and Microsoft
Consulting Services. It also in-
cludes tools that don’t always
run in the cloud, such as Win-
cooperate with the probe. The
company didn’t specify the
types of transactions the SEC
was investigating.
risen. Mr. Damodaran said the
combination has been keeping
the overall cost of capital flat.
Tobacco was among the best-
Continued from page B1 their cloud sales numbers. accounting firm BDO USA LLP. dows Server. An IBM spokesman declined performing industries last year,
to determine what are and Though often referred to as Under generally accepted ac- Last week, Microsoft said to comment on the investiga- according to Mr. Damodaran. Af-
aren’t “true” cloud services, or “cloud,” managed hosting and counting practices, a company its cloud businesses are run- tions and directed questions ter costs, Reynolds American
which services will be around other off-premise computing must break out a revenue ning at an annual rate that is to the SEC. The SEC didn’t re- Inc. earned a 139% return on its
for the long haul. The latter services don’t always provide source in its financial disclo- 70% higher than a year earlier. ply to requests for comment. invested capital, and Philip Mor-
has become a growing concern the same flexible or scalable sures once it reaches 10% of A Microsoft spokeswoman In January, IBM reported ris International Inc. earned
as software deals stretch to benefits, said Forrester Re- overall revenue, “so readers can declined to comment on the $10 billion in total cloud reve- 87%.
three years or more. search analyst John Rymer. understand those streams,” Mr. company’s cloud-revenue dis- nue, of which $4.5 billion was The oil-and-gas, coal and
Under current accounting Hosted services often re- Jamil said, adding that inves- closures. generated by “as-a-service” steel industries fared the worst.
rules, tech companies have quire users to pay for a set tors prefer greater visibility to In December, Oracle Corp. tools, the company said. The Exxon Mobil Corp. lost 2.6% on
wide latitude to define their amount of space on a vendor’s so-called “lumpy revenue.” posted $649 million in total rest came from unidentified its invested capital, after costs,
cloud revenue. But it can be physical servers, while run- Amazon.com Inc. began cloud revenue for the fiscal software, hardware and other while BP PLC lost 15.4%.
hard to see how providers ning business applications breaking out the earnings of second quarter, reflecting services related to developing Reynolds American, Philip
stack up if a company’s earn- they own outright or rent for its Amazon Web Services unit sales from its human-capital cloud systems for clients, ac- Morris, Exxon Mobil and BP all
ings report might reflect not last April, reporting more than management cloud, enter- cording to a spokeswoman. declined to comment on the
only sales of software sub- $7 billion in cloud revenue at prise-resource-management Many analysts and inves- findings.
scriptions, but also server
Accounting rules the time. That put pressure on cloud and other software- and tors following IBM have “dis- Mr. Damodaran said about
parts, and maintenance and give tech firms wide other cloud providers to post platform-as-a-service tools. counted the as-a-service num- one-third of the companies that
consulting fees. big numbers, analysts say. Last But that figure rolled in sales ber” in terms of revenue and failed to make back their cost of
“Comparisons are difficult,”
latitude to define week, Amazon said the sales from the company’s Infra- price, because there’s a ques- capital in 2015 have done so re-
Kevin Barnes, chief informa- cloud revenue. of its cloud business rose to structure-as-a-service seg- tion if it is truly cloud or peatedly.
tion officer of plumbing-sup- $2.4 billion in the most recent ment, which includes legacy “something else in there,” “These are bad businesses,
plies company Ferguson En- quarter, up from $1.4 billion a managed-hosting services and Bernstein’s Mr. Sacconaghi yet they continue to try to
terprises Inc., said about a fixed rate. Public cloud com- year earlier. other revenue sources. said. “It’s tricky on many grow,” he said.
sizing up competing cloud ser- puting, by contrast, allows Amazon declined to com- Oracle declined to comment fronts.” The research also shed a light
vices. Often, he relies on talk- them to access applications as ment. on what services it includes in “Cloud is a growing part of on geographical and other vari-
ing with a provider’s other needed and pay only for the Microsoft Corp., its closest its cloud-revenue disclosures. our business,” the IBM spokes- ables.
customers to better determine shared resources they use, rival, reports cloud sales as an In May 2013, the Securities man said. “As it grows we’re The average cost of capital
how much of a vendor’s cloud much like a utility bill, Mr. annualized run rate, projecting and Exchange Commission providing more clarity around for was 11% for companies in
tools reflect “true capabili- Rymer said. a single quarter’s sales over launched an investigation into what comprises it.” Russia and Eastern Europe, 8.7%
ties,” he said. “This is happening at all the entire year, rather than how International Business —Maxwell Murphy for those in China and 7.6% in
For those sifting through fi- levels, because organizations disclosing the actual quarterly Machines Corp. accounted for contributed to this article. the U.S.
nancial statements, under- are rewarded with higher mul- figure. cloud revenue. Although the The figures varied even more
standing sources of growth is tiples for cloud revenue,” said On top of Azure, the com- investigation was dropped a EXPLORE ONLINE by industry. It was 5.2% for real-
increasingly important. “Ana- Ray Wang, founder and princi- pany’s primary cloud service, year later, IBM said this fall estate investment trusts; 11% for
lysts always want more de- pal analyst at Constellation Microsoft’s cloud-business that the SEC had launched a This coverage auto-parts manufacturers; 12%
tail,” said Toni Sacconaghi Jr.,
senior research analyst for
Bernstein. Cloud services are
Research Inc.
Figuring out how to book
revenue for cloud deals that
segment combines public, pri-
vate and hybrid server tools
with more general enterprise
separate probe into its ac-
counting treatment of certain
transactions in the U.S., U.K.
WSJ
.COM
was produced by
CFO Journal. For
more, please
for semiconductor firms; and
nearly 14% for integrated oil-
and-gas companies.
sometimes “nebulously de- include hardware, software, services, such as Premier Sup- and Ireland, and that it would visit wsj.com/cfoj —Alix Stuart
S&P Lowers BHP’s Rating

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Nash is promoted to president the nonexecutive chairman of
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B6 | Tuesday, February 2, 2016 * * THE WALL STREET JOURNAL.
BUSINESS NEWS
Soaring Fees Tee Off British Golfers Fox Offers

Buyouts,
Tensions rise between
members of an elite
country club and its
Cuts Costs
BY JOE FLINT
new Chinese owners AND KEACH HAGEY
BY GILES TURNER 21st Century Fox Inc. is seek-

ing to cut $250 million in ex-
WENTWORTH, England— penses in the next fiscal year,
The world’s finest golfers could primarily through buyouts, ac-
struggle to maintain their con- cording to a person familiar with
centration coming down the the matter, amid challenges in
home stretch at the BMW PGA its core TV and film businesses.
Championship here in May. Employees at the television
The reason: Andrea Tenconi group and movie studio were
plans to throw a party at his notified of the buyouts in
house overlooking the 18th memos on Monday. If the com-
hole. From there, he says he’ll pany doesn’t meet the cost-re-
“blare out Latin music so that duction goal through volun-
nobody gets to finish without tary buyouts, there could be
PETER NICHOLLS/REUTERS
distractions.” job cuts, said the person.

Mr. Tenconi’s is one of sev- “As we position 21CF for
eral members of Wentworth the future, we want to ensure
Club, one of England’s most ex- we remain agile and that we’re
clusive golf and country clubs, structured to enable us to
who are furious with the club’s fully capture the many oppor-
Chinese owners for increasing tunities ahead of us,” the com-
fees and slashing membership. Wentworth, one of England’s most exclusive country clubs, was purchased in 2014 by a Chinese conglomerate for about $195 million. pany said in a statement. (21st
They have hired a law firm to Century Fox was part of the
press their objections. pledged to preserve Went- of the Wentworth Residents’ As- cated in an upmarket suburb $144 million, according to a per- same company as The Wall
Chinese appetite for foreign worth’s “unique culture.” sociation, said in a statement. of London, Wentworth’s cren- son familiar with the situation, Street Journal until mid-2013.)
acquisitions, particularly tro- The honeymoon didn’t last “People are already begin- elated clubhouse originally but this was unsuccessful. Mr. The cuts come as the enter-
phy assets such as Wentworth, long. At a tempestuous meet- ning to look around [at other was the home of the brother- Caring, who remains on the tainment industry tries to nav-
remains high despite China’s ing at the club’s Burma Bar in clubs],” said Michael Fleming, a in-law of the Duke of Welling- Wentworth board, didn’t re- igate a rapidly evolving media
recent slowdown. October 2015, Wentworth’s new recent Wentworth club captain. ton. Considered the birthplace spond to a request for comment. landscape that is changing the
Dalian Wanda Group Co. management announced that “They’re asking, what in God’s of the Ryder Cup, the site was Part of the members’ legal way content is paid for and
bought Hollywood film pro- beginning in April 2017, new name is going on?” planned as an alternative seat challenge hinges on an ob- consumed, because viewers
ducer Legendary Entertain- and existing members would Reignwood has sought legal for the U.K. government dur- scure private act of Parliament have far more options beyond
ment for $3.5 billion last have to pay a joining fee be- advice on its plans. “Based on ing World War II. It is now in 1964, which gave the mem- the small screen and the movie
month. Late last year, a con- tween $111,000 and $143,000, the available evidence [Went- one of the country’s most bers ownership of the laby- theater. New streaming ser-
sortium of Chinese firms in- up from about $22,000. Annual worth] is able to proceed with prestigious golf courses, and rinth of roads that run vices are taking viewers away
vested $400 million for a mi- fees are set to increase from the revised structure,” a com- each May it hosts the BMW through Wentworth’s three from traditional TV, and movie
nority stake in the Manchester $11,549 to $23,000. pany spokeswoman said. PGA Championship, a flagship golf courses. The members are companies have to spend more
City FC soccer franchise. The number of members— While not revealing how European tour event. arguing that any “advertising to attract audiences.
The U.K. and China have who include politicians, business many were eager to rejoin Before Reignwood’s acquisi- signage, erection of tents and “To ensure we make the
been particularly eager to leaders, athletes, media person- Wentworth, Chief Executive tion, Wentworth’s future was grandstands,” vital to the com- most of this new world, we
strengthen ties. Just days be- alities and society types—also Stephen Gibson, said: “We unclear. Its operating profit ing tournament, would need need to adjust, adapt, and orga-
fore Wentworth members were will be cut from 4,000 to 800. have had a very positive re- rarely peaked above roughly their approval. nize for the future,” Peter Rice,
told of their fee hikes, Chinese Sir Stanley Simmons, an 88- sponse” of people seeking to $7 million under the owner- A spokesman for the Euro- the chief executive of Fox Net-
President Xi Jinping sat at a year-old former president of the renew their memberships. ship of Richard Caring, an An- pean Tour, the body in charge works Group, said in a memo.
banquet hosted by the queen Royal College of Obstetricians Mr. Songhua Ni, executive glo-American restaurant of the BMW Championship, A similar memo was sent by
of England, and announced $4 and Gynaecologists and a Went- president of Reignwood, said, owner who bought the club for said it would “be extremely un- Jim Gianopulos, CEO of the 20th
billion worth of cross-border worth member for more than “We are confident that this about $187 million in 2005. fortunate if the current dispute Century Fox film studio, which
deals during a four-day visit. 50 years, said he was “pretty collaboration between China By April 2013, Wentworth’s between Reignwood and the hasn’t cut jobs since at least
Wentworth was bought in upset” about how the new own- and Britain will be a successful bank facilities had expired, Wentworth Residents’ Associa- 2000. Most Hollywood studios
2014 by Reignwood Group, a ers conducted the meeting. example of how the two na- leading the directors to flag a tion had any negative effect on have shrunk their staffs due to
conglomerate that focuses on Talks between Wentworth tions can partner together and “material uncertainty” about the BMW PGA Championship.” falling DVD sales and the effi-
business in China, for about and its members have since achieve great things through the club’s future. “I don’t think our members ciencies that digital technologies
$195 million. At the time of failed. “It is an absolute tragedy cultural exchange.” Before the sale to Reignwood, are the sort of people [to dis- have brought to distribution.
the sale, Reignwood founder that the situation remains so an- Unlike in the U.S., country a group of Wentworth’s mem- rupt the tournament,]” Mr. Fox’s broadcast network has
Chanchai Ruayrungruang tagonistic,” Eric Leon, chairman clubs are rare in the U.K. Lo- bers prepared a bid worth about Gibson noted. been in a slump for a few years.
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d t
Edmonton 0s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 63 Subway map 28 Clear, in a way
0s indications
V
Vancouver 0s 14 15 16 29 Call out to
Calgary 10s 64 Green card,
10s 30 Getaway
ip
Winnipeg 17 18 19 familiarly
ttl
Seattle
20s 20s destination
20s 20 21 22 Down
30s 31 Cry from a deck
P tl d
Portland Helena Ottawa Montreal
Bismarckk 40s 1 Go into a slump
Eugene
Billings A g t
Augusta 23 24 32 In suspense
Boise 20s T t 50s 2 It may be
p /St. Paul
Mpls./St. Toronto A b y
Albany t
Boston
25 26 27 28 29 30 31 33 Eye dropper
k
Milwaukee ff
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Hartford 60s capped
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P Detroit 34 Not oblivious of
Ch
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Chicago Cl l d
Cleve
Cleveland New Yorkk
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Reno Lake
Lake City
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h d lphi
Philadelphia 80s Cooperstown 38 Promising
Pittsburgh
Pitt b gh 37 38 39
Sacramento
Denver p d Indianapolis
Springfield d p occasions?
an Francisco
San hington
hi gton D.C.
Washington DC 90s 4 Change the
C
Colorad
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Charles
Charleston
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Richmond 100+
40 41 42
bit rate of, as 39 Sendai send-off
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Springs Kansas St.. Louis
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Lou LLouisville
Lou ill
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Vegas h
Wichita Cityy igh
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30s Nashville
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Cityy Charlotte
Ch l 5 Sign after grazers
Mem phi
Memphis 46 47 48 49
A b q q
Albuquerque C b
Columbia 42 Jazz great
San Diego
Ph
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Atl t
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i h 50 51 52 53 54
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k
Jackson
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El P
Paso
Jacksonville 55 56 57 58 Wizards player 44 Familiar with
bil
Mobile
0s -0s 60s A ti
Austin Anderson 45 Pair in a
Houston Stationary Snow
ew
w Orleans
New l d
Orlando 59 60 61
80s an Antonio
San Tampa 7 Diana of “The Morse M
Anchorage
A h 80s Showers Flurries 62 63 64 Avengers” 48 Faith with five
10s Honolulu
l l 70s Miami
70s 8 Bubbly Betty pillars
Ice
STATE OF THE ART | By Maxine Cantor 9 Fruit-studded 49 Lowest card in
German loaves many games
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 25 Tom Hanks 46 Direction
50 Marathoner’s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Paparazzi target film set in opposite nord 10 Service piece
Omaha 37 22 sn 26 13 pc Frankfurt 54 39 r 46 36 pc stat
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Geneva 55 44 pc 46 33 sh
Pennsylvania 47 Eschew 11 Bar on a car
Orlando 81 66 pc 82 65 t 5 Outfits
Today Tomorrow Philadelphia 50 39 s 63 44 r Havana 86 70 pc 85 67 pc 32 Bikini, e.g. 51 Estate recipient
City Hi Lo W Hi Lo W Phoenix 56 35 s 58 39 s Hong Kong 54 51 r 60 54 c 10 New Mexico 50 Bruce Willis 12 Medium for
35 Troubling signs film set in Monet 52 Eliminate from
Anchorage 25 15 c 24 19 i Pittsburgh 50 44 pc 60 31 r Istanbul 52 47 s 58 51 s town popular
Atlanta 73 63 c 67 39 t Portland, Maine 41 28 s 48 43 r Jakarta 86 77 t 85 76 sh Pennsylvania a list
with artists 36 Volcano 13 Porker pen
Austin 71 37 s 58 30 s Portland, Ore. 48 38 c 47 43 r Jerusalem 51 36 pc 58 38 s 53 The Furies or
Baltimore 48 40 c 63 39 r Sacramento 51 37 pc 53 42 c Johannesburg 86 64 s 87 61 pc 14 Tops output 55 Piper
21 “James and the the Fates, e.g.
Boise 38 21 pc 40 30 pc St. Louis 64 39 t 42 25 c London 50 37 pc 47 38 pc description
15 “The Love Song 37 Gift from the Giant Peach”
Boston 45 35 s 53 47 r Salt Lake City 29 14 c 29 19 sf Madrid 61 41 pc 58 35 c
56 “Don’t Know 54 Padlocked piece
Burlington 35 27 pc 49 39 r San Francisco 55 44 c 56 49 c Manila 89 79 pc 88 79 r of J. Alfred parents author
Charlotte 63 53 c 72 48 t Santa Fe 35 14 sf 33 10 pc Melbourne 85 63 c 68 60 pc Prufrock” poet Why” singer 55 Candy in a
38 Street urchins 22 Isn’t well
Chicago 44 36 r 37 20 sf Seattle 48 38 c 46 42 r Mexico City 76 46 pc 77 45 pc Jones collectible
Cleveland 51 48 c 54 28 c Sioux Falls 30 16 sn 23 13 pc Milan 52 46 pc 57 35 sh 16 Stage direction 26 Reluctant dispenser
39 Spot for a 57 Contributor
Dallas 65 36 pc 53 30 s Wash., D.C. 51 43 c 62 43 r Moscow 36 34 sn 38 32 i 17 Olympus group
Denver 26 7 sn 29 9 pc Mumbai 90 66 pc 91 64 pc Minuteman or to a school 27 Panamanian pal 58 Guat. neighbor
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Detroit
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46 39 r
82 70 s
48 28 sn
82 68 pc
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55 39 r
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46 37 pc
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18 Visually impaired fundraiser
Previous Puzzle’s Solution
Today Tomorrow cartoon character 40 Word on a 59 Put out
Houston 73 43 t 61 37 s Riyadh 70 49 s 70 43 c M A S H R O D E F
I N D
Indianapolis 59 42 r 46 24 c City Hi Lo W Hi Lo W Rome 60 50 c 58 43 pc 19 Treaty partner Cheerios box I N T O O D E S S A
N E R
Kansas City 55 25 sh 31 20 pc Amsterdam 49 40 pc 45 40 sh San Juan 83 73 pc 81 72 s
60 Outward S N E E R M I S S C R
E M E
Las Vegas 47 30 s 49 34 s Athens 66 49 s 66 50 s Seoul 31 16 s 38 22 pc 20 Eddie Murphy 41 Very beginning appearance T O E Y A N K M O O
C OW
film set in S Y R I A N V I R U
S
Little Rock 71 37 t 51 30 s Bangkok 90 71 pc 90 70 s Shanghai 40 30 pc 43 33 pc 42 Olympic diver 61 Election lead-up S N O O Z E L E T
T E R
Los Angeles 61 42 s 63 44 pc Beijing 40 14 pc 43 18 pc Singapore 90 78 pc 90 78 c Pennsylvania Tom B I T E S B O R E D A S A
Miami 80 72 pc 80 70 pc Berlin 51 38 r 44 36 sh Sydney 77 66 pc 82 69 s 62 Candy bar A C H E G L O B S P S S T
Milwaukee 37 32 sn 35 18 sf Brussels 50 37 r 43 36 sh Taipei 56 54 r 60 57 r 23 Alpha male 43 Bill Murray film covered with a T O R A R OM A K A Y O S
Minneapolis 32 19 sn 23 8 pc Buenos Aires 82 67 s 82 64 c Tokyo 47 37 pc 46 37 pc S N O WM A N S L A N D
24 Lucy of set in layer of white T H O N G V E S P A S
Nashville 73 51 c 55 31 pc Calgary 32 14 pc 32 19 pc Toronto 39 31 c 50 28 r A C T O U T O B O E A L E
New Orleans 77 56 t 63 44 pc Dubai 72 59 s 72 64 c Vancouver 46 37 pc 45 41 r “Elementary” Pennsylvania fudge C O L O N S N A I L F I L E
New York City 47 42 s 57 47 r Dublin 44 35 sh 46 42 pc Warsaw 51 40 sh 45 35 pc A D E P T A C I D A G E D
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 54 28 pc 45 25 s Edinburgh 44 36 sh 43 38 pc Zurich 52 38 pc 43 35 sh D E S I M E T S D E N Y

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GLOBAL FINANCE C3 | IN THE MARKETS C4 | MARKETS DIGEST C6
Google’s Strong
Oil Gives Back Gains Core Business
HEARD ON
Stocks weather drop in crude MONDAY’S MARKETS | C4 THE STREET | C8
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | C1
DJIA 16449.18 g 17.12 0.10% S&P 1939.38 g 0.04% NASDAQ 4620.37 À 0.14% 10–YR. TREAS. g 11/32, yield 1.966% OIL $31.62 g $2.00 EURO $1.0888 YEN 120.99 See more at WSJMarkets.com
ECB Lending Effort Fades Hard to Revive

European issuance of asset-backed securities has failed to take off
despite European Central Bank purchases starting in late 2014.
An attempt to revive ritization market as a crucial heart of the subprime crisis is at Société Générale. “A year
€400 In billions Issuance, annual
way to boost eurozone lend- floundering partly because of ago, we were more hopeful the
asset-backed-securities ing. That year, the ECB the regulation placed on banks ABS program would have an 350 Sales to investors of securities backed by
market shows only launched a program to buy as- and insurers in the aftermath impact, but it’s clear this has
300
loans, mortgages and other assets
set-backed securities, which of that period. become a very minor thing.”
lackluster results bundle loans and mortgages The ECB also is struggling Securitization lets banks 250
into new debt, as part of mea- to boost such capital markets package together assets such
BY CHRISTOPHER WHITTALL sures aimed at injecting about because they were always as loans and mortgages and 200
€1 trillion ($1.08 trillion) into much smaller and more frag- sell them to investors, freeing
150
A multibillion-euro attempt the eurozone’s financial sys- mented than those in the U.S. up space on their balance
by the European Central Bank tem. But for the ECB, the lack- sheets to lend more money. 100
to revive the market in securi- But in 2015, sales of new luster results point to the dif- That is particularly impor-
tized debt has fallen flat, high- European ABS were roughly ficulties it faces in stimulating tant in Europe, where compa- 50
lighting the bank’s struggle to flat and the cost of issuing se- lending to the economy. nies remain heavily reliant on 0
boost stubbornly low levels of curitized debt in southern Eu- “We’re not seeing credit banks, as opposed to public 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
lending in the euro area. rope actually increased. growth taking off as in a nor- markets, to raise money.
In 2014, ECB President Ma- This attempt to revive a mal recovery,” said Anatoli “We are a bank-based econ- Sources: Association for Financial Markets in Europe and
rio Draghi identified the secu- type of debt that was at the Annenkov, a senior economist Please see ECB page C2 the Securities Industry and Financial Markets Association THE WALL STREET JOURNAL.
‘Dark Pool’ Accords

Expose a Dilemma
BY SCOTT PATTERSON links to superfast trading out-
fits have been hit with a series
The latest round of penal- of escalating fines.
ties over “dark pools” high- In 2011, the Securities and
lights how reliant banks and Exchange Commission fined
exchange operators have be- Pipeline Trading Systems LLC
come on business from high- $1 million for failing to dis-
frequency traders—even on close to clients that they were
platforms that promised to often trading with an in-house
blunt their advantage. high-speed firm. BATS Global
Dark pools were advertised Markets Inc. last year agreed
to mutual funds and other tra- to pay $14 million to settle al-
ditional money managers as a legations that two exchanges
KHALED DESOUKI/AGENCE FRANCE-PRESSE/GETTY IMAGES
place where they could trade it ran failed to disclose certain

in secret and avoid giving details about their markets
away their moves to com- that the SEC said gave advan-
puter-driven traders. New set- tages to some high-speed trad-
tlements with two of the big- ers. UBS Group AG a year ago
gest dark-pool operators, agreed to pay $14.4 million to
Credit Suisse Group AG and
Barclays PLC, showed that the
banks were quietly catering to
High-frequency
high-frequency traders at the traders account
same time.
The reality beneath those
for the bulk
practices is that high-fre- of bids and offers.
quency traders account for the
bulk of bids and offers that
Analysts say Egypt risks having to devalue its currency to boost its competitiveness. Above, a foreign-exchange store in Cairo. keep the market running— settle allegations that it failed
about two-thirds of the total— to inform all clients about ad-
Egypt Is Hit by Dollar Shortage

a source of business that can vantages its dark pool gave to
be hard to pass up. Credit Su- some firms, including high-fre-
isse and Barclays catered to quency traders. Pipeline, BATS
them by concealing the role of and UBS didn’t admit or deny
BY DAHLIA KHOLAIF derived revenues are stran- vassing Gulf neighbors such as to boost its competitiveness speedy traders on their plat- the allegations.
gling the country’s capacity to Saudi Arabia for more aid and and bring foreign investors forms and going back on The emergence of dark
Visitors aren’t showing up import essential goods, from investment, though plummet- back. promises to protect clients pools and high-frequency trad-
as before to Egypt’s beaches pharmaceuticals to wheat to ing oil prices may curb their The Egyptian pound’s offi- from predatory trading, ac- ing went hand in hand as trad-
and pyramids. Political unrest fuel. capacity to help. Since October, cial exchange rate is about 7.8 cording to the settlements ing increasingly shifted from
and a string of terror attacks Egypt’s government is Egypt’s new central-bank gov- per U.S. dollar, though it trades with the Securities and Ex- floor-based open outcry mod-
have given investors pause. scrambling to get businesses ernor, Tarek Amer, has relaxed at around 8.6 per dollar in the change Commission and New els to one controlled by com-
And what both groups brought the dollars they need. some restrictions on Egyptian black market, a level that Capi- York Attorney General. puters.
with them, dollars, are in criti- Last month,, Egypt quintu- banks dealing with dollars to tal Economics’s Jason Tuvey The often opaque ties be- Trading on dark pools,
cally short supply. pled monthly limits for dollar free up more foreign exchange. expects the pound to officially tween exchanges, dark pools which, unlike exchanges don’t
President Abdel Fattah Al deposits by importers of essen- As Egypt struggles to cope reach by year-end. and high-speed firms have publish buy and sell orders,
Sisi came to power two years tial goods such as food, capital with the dollar shortage and In recent months, Egypt has been one of the most perplex- took off about 15 years ago.
ago on the promise of restor- machinery, manufacturing keep its economy ticking, ana- signed loan agreements worth ing issues facing investors and Dark pools largely were used
ing economic prosperity and components and medicines. lysts warn the country risks at least $6 billion with the Af- regulators. In recent years, by institutional firms hoping
security, but now weak dollar- The government also is can- having to devalue its currency Please see EGYPT page C2 firms accused of masking their Please see DARK page C4
Will Chipotle Get Diners Back? Fund Joins Push to Break Up CIT BY RACHEL LOUISE ENSIGN pieces given the bank’s recent CIT isn’t the only firm fac-
BY STEVEN RUSSOLILLO years. Investors with an even AND DAVID BENOIT underperformance, people fa- ing concerns about growing
Indigestion longer memory will remem- miliar with the matter said. too large. MetLife Inc. last
Chipotle Mexican Grill Chipotle's same-store sales, ber the E. coli outbreak in A new activist hedge fund A breakup would represent month cited the burden of be-
Inc.’s health-related issues change from a year earlier 1993 that slammed Jack in has taken a stake in CIT a major shift for CIT, a firm ing classified a SIFI in an-
might be over, but the dam- the Box Inc. While those is- Group Inc. and wants the that had bulked up with ac- nouncing that it would seek to
age inflicted on investors 20% sues were much more severe lender to break up, echoing a quisitions under Chief Execu- divest itself of one of its core
likely will linger. Projections than what Chipotle faced, it call that other investors have tive John Thain, pushing its businesses. Fellow insurer
Federal in- 10 still took more than four quietly made in recent assets above $50 billion and American International
AHEAD OF vestigators years before that company’s months. leaving it subject to the Group Inc. has been pressured
THE TAPE declared Mon- 0 shares recovered to their Hudson Executive Capital higher regulatory burden of a by some shareholders to split
day that the E. prior levels. LP, which former J.P. Morgan systemically important finan- into parts to lighten its regu-
Estimate
coli outbreak –10 Furthermore, the halo ef- Chase & Co. deal makers cial institution. That strategy latory load.
linked to Chipotle appears to fect that helped propel Chi- Douglas Braunstein and James already has hit resistance, Activists have turned their
be over. The restaurant potle shares above $750 in Woolery started last year, dis- however. Late last year, CIT attention to financial compa-
–20
chain now is focused on im- October was looking vulnera- closed Monday that it owns announced Mr. Thain’s retire- nies in recent months but
plementing new food-safety ’14 ’15 ’16 ble before the health prob- around 0.5% of CIT. The ment and plans to get smaller largely have avoided the big-
measures. It also is planning Source: FactSet lems. Investors sent Chipotle hedge-fund manager believes again through a potential sale gest banks that face the
an extensive advertising and THE WALL STREET JOURNAL. shares down at least 6% in the best strategy for CIT or spinoff of its commercial- toughest rules. Instead, they
social-media campaign to the trading session following would be to sell off its various air unit. have looked to companies that
bolster its image. That blitz won’t be an easy feat. four of the previous five have a realistic expectation of
will be on display Tues- Even former parent quarterly reports. becoming less regulated and
day when Chipotle reports McDonald’s Corp. is eating Analysts don’t expect Chi- having more lenient capital
fourth-quarter results. Chipotle’s lunch (and break- potle’s earnings to recover to rules, which could boost prof-
After cutting estimates fast) amid its thriving all- prior levels until the third itability.
multiple times, Chipotle ex- day offerings. And Chili’s op- quarter of 2017, according to Hudson Executive, which
pects earnings for the period erator Brinker International FactSet. And trading at 36 also disclosed an 0.8% stake in
ending in December of $1.70 Inc. has been raising its bet times forward earnings, Chi- Dallas-based lender Comerica
to $1.90 a share, down by on higher-end Mexican food. potle still is pricey compared Inc. on Monday, is focusing on
CHRIS GOODNEY/BLOOMBERG NEWS
about half from a year ago. Dining operators histori- with most of its competitors. some of the smaller banks
Wall Street analysts estimate cally don’t strike quick fixes Investors shouldn’t lose that the government has
same-store sales to be down in these situations. Yum sight of Chipotle’s long road deemed systemically signifi-
15%. They also expect three Brands Inc. has been hit by ahead. cant, one of the people said.
quarterly declines in 2016. multiple food-safety con- Bank stocks have suffered
Winning back customers cerns in China in recent Email: [email protected] broadly in recent weeks. CIT’s
have fared especially poorly,
INDEX Dividend News............................................... C3 Futures................................................................. C7 Key Rates........................................................... C8 Mutual Funds........................................... C8 falling about 26% in 2016 be-
Bond Tables............................................... C7 Exchange-Traded Funds......................... C7 Global Finance................................................. C3 Markets Digest.............................................. C6 New Highs & Lows............................... C5 fore The Wall Street Journal
Cash Prices................................................. C7 Finance Watch................................................ C3 Heard on the Street................................... C8 Money Rates................................................... C8 Stock Listings........................................... C4
CIT has bulked up under Chief Executive John Thain. Please see CIT page C2
C2 | Tuesday, February 2, 2016 NY * *** THE WALL STREET JOURNAL.
MONEY & INVESTING
CIT Stocks vs. the Economy: Which Ruins Which?

Continued from the prior page Don’t confuse the market ment rate running back to in Mr. Farmer’s view. The from investing in things like cially enter into a bear mar-
first reported the Hudson Ex- for the economy. Markets 1929 seem to suggest. A per- crash caused the recession. machinery, technology and ket to trigger a rise in unem-
ecutive investment on Mon- have overshot fundamentals. sistent 10% decline in the Mr. Farmer’s view is based factors because they fear the ployment, Mr. Farmer says.
day. The stock rose 1.7% on There are no signs of conta- stock market pushes unem- on data showing that stock value of their existing capital The historical data show that
the day to $29.86, not far gion into the real economy. ployment up 3 percentage market slumps are so highly may fall further. quickly reversed crashes
above the $27 price in Decem- Anyone paying attention points. predictive of rising unemploy- “If you’ve got a 60-year- don’t damage confidence but
ber 2009 when CIT started has heard some version of That, at least, is the find- ment that the latter must be old couple and they lose 20% dogged declines do.
trading again after emerging these senti- ing of University of Califor- causing the former. No other of their wealth in the stock This is why the Black
from bankruptcy. ments lately. nia, Los Angeles, economist explanation fits the data so market, a year later they Monday crash of 1987—when
As CIT looks into jettison- Paul Samuel- Roger Farmer. In a pair of well, Mr. Farmer argues. start thinking about not tak- the Dow Jones Industrial Av-
ing its air business, Hudson son’s famous academic papers written in What’s more, the relation- ing that cruise they planned erage fell by 22.6% in a sin-
Executive wants the lender to quip that the the wake of the financial cri- ship between stock prices for the summer, not paying gle day–didn’t impede eco-
consider selling its rail busi- market has sis, the first published in and unemployment has held for their grandchild’s col- nomic growth, according to
ness and lending operations, ANALYSIS predicted nine 2012 and the second to be steady for 70 years. lege,” Mr. Farmer said in an Mr. Farmer. Stocks quickly
the people said. JOHN of the past five published later this year in So how can a fall in stocks interview. recovered. In just two trad-
Other major shareholders CARNEY recessions is the Journal of Economic Dy- cause rising unemployment? This idea is supported by ing sessions, the majority of
have asked CIT’s top execu- once again on namics and Control, Mr. Mr. Farmer thinks the most the widely observed fact that the Dow’s Black Monday
tives to pursue a sale of the the lips of the Farmer has argued that plausible explanation for the changes in stock prices are losses were reversed.
bank’s rail business, people fa- wise men and women of Wall changes in the value of the connection from the stock linked to changes in national So it isn’t a crash that
miliar with the matter said. Street. stock market cause changes market to the real economy consumption. When stocks hurts. It’s a grinding down.
Mr. Thain, slated to retire But what if the stock mar- in the unemployment rate. is confidence. rise, consumption expands; If the market stays down
at the end of March, said in ket is more than just an indi- The idea will be expanded A lasting decline in stocks when stocks fall, consump- or falls further, the Fed
December that the company cator? What if a stock selloff upon in Mr. Farmer’s coming reduces overall wealth and tion contracts. The standard should step in, in Mr.
doesn’t plan to sell additional actually can cause unemploy- book, “Prosperity for All.” hurts confidence, causing interpretation of this is that Farmer’s view. In a post on
units. ment and recessions? The postcrisis economic households and companies to household wealth drives con- his personal website, Mr.
“The world today doesn’t That is exactly what his- downturn, for example, reduce their own consump- sumption, often referred to Farmer said last week that a
like conglomerates, doesn’t torical data on the stock wasn’t just predicted by the tion, according to Mr. Farmer. as “the wealth effect.” new round of quantitative
like complicated stories,” Mr. market and the unemploy- stock market crash of 2008, It also discourages investors Stocks needn’t even offi- easing may be needed.
Thain said. “We’re obviously
not—given where our stock is
trading—getting a fair valua-
tion for [the air] business.”
CIT, which reports fourth-
Suit Charges Insurer
quarter earnings Tuesday,
didn’t return a request for
comment.
Was Used by Financiers
Investors pushing for a
breakup were encouraged by
the asset sales by General
To Enrich Themselves
Electric Co.’s finance arm last BY MARK MAREMONT originally contributed was
year, the people said. Some of AND LESLIE SCISM backed by bonds from an en-
CIT’s lines of business are tity known as Altmark Ltd.
similar and could be attractive Oklahoma insurance regula- Those bonds were discredited,
to the bidders that lost out on tors allege in a new lawsuit the complaint says, after the
the GE assets, they said. that two New York financiers person who supplied them was
Macquarie Capital analyst took control of a local insurer found guilty of fraud charges
Vincent Caintic projects that using $30 million in counter- tied to selling counterfeit Alt-
CIT shareholders could see feit or worthless assets and mark bonds.
shares reach $70 or more if then used the insurer to en- After the two financiers
SHAWN BALDWIN/BLOOMBERG NEWS
rich themselves and their as- gained control of Red Rock,

sociates. according to the lawsuit, the
Hudson Executive The insurer, Red Rock In- company paid $610,000 for a
wants CIT to surance Co., is being liqui- shell company controlled by
dated by regulators, who al- the two principals that had
consider selling its lege the scheme led to a loss “little or no assets or value”;
rail business. of $23.6 million in the in- provided $4.7 million in unse-
surer’s asset value. Three of cured loans to people and en-
the insurer’s former executives tities; and paid “grossly exces-
the firm were to break up into Egypt’s central-bank governor, Tarek Amer, has relaxed some dollar restrictions on Egyptian banks. also are defendants in the suit, sive fees” to Messrs. Hartman
pieces, according to a note filed Friday in a state court in and Scherr. The insurer also
from November.
The boom in activist in-
vesting has been slow to come
to banking, partly because of
EGYPT fecting Egypt’s businesses as
well. For the first time in four
decades, Egypt’s largest assem-
bler and distributor of passen-
Russia, an important market
for Egypt’s tourism, banned
flights to the popular Red Sea
resorts. Flights to Egypt could
Oklahoma City.
The two defendants, Scott
W. Hartman and Andrew B.
Scherr, were partners in a
bought property adjacent to
land owned by Mr. Hartman in
Pennsylvania and sold part of
it to Mr. Hartman’s sister-in-
the regulatory oversight lend- Continued from the prior page ger vehicles halted production remain suspended for at least small New York company that law, the complaint alleges,
ers face when changing their rican Development Bank and at some of its plants as the a further few months on secu- took control of the insurer in while transferring a partial in-
business operations. But some World Bank as well as with dollar shortage limited its im- rity concerns. terest in the property to a
activists have started to come China and Saudi Arabia—and it ports. Foreign direct investment company co-owned by Messrs.
into the sector recently,
though they are largely avoid-
is in talks for more.
Still, the dollar shortage has
A nearly three-week suspen-
sion of its assembly units in
amounted to $6.37 billion in
the last fiscal year, substan- $23.6 million Hartman and Scherr at no ex-
pense.
ing the biggest banks. hampered the capacity of the September and October cost tially higher than a year ear- Loss in the insurer’s asset The two buyers of Red Rock
Hudson Executive views Arab world’s most populous GB Auto SAE at least 20% of its lier, as Mr. Sisi’s regime rolled value as a result of the scheme had ties to Alexander Chatfield
some smaller SIFI banks as ill- nation to buy essential goods. quarterly sales, said Menatalla out the red carpet for inves- alleged by regulators Burns, a young New York fi-
suited to handle the costs of Several wheat shipments to Sadek, the company’s chief in- tors, but fell well short of a nancier whose insurance em-
increased oversight, making Egypt were held up last month vestment officer. “We just targeted $10 billion. pire collapsed in 2014 after
them attractive targets for as traders reported delays in didn’t have access to the dol- Other potential sources of 2013. hundreds of millions of dollars
bigger banks, one person fa- receiving payment guarantees lars we needed to buy vital foreign exchange also aren’t George Gibbs, an attorney had been siphoned out of in-
miliar with the strategy said. from the Egyptian government. parts to keep the units run- yielding the amount of hard for Mr. Scherr, said his client surers he controlled, replaced
Some trace CIT’s problems The Egyptian state-owned nat- ning,” she said. cash the government antici- denies the allegations, never by worthless or difficult-to-
to its being something of a ural-gas company, Egyptian Egypt’s foreign reserves fell pated. intended to mislead or defraud value assets such as a pur-
hodgepodge unique among Natural Gas Holdings, or Egas, by more than half since the be- An $8.5 billion expansion of anyone and is willing to coop- ported Caravaggio painting,
banks its size. The firm owns missed payment deadlines for ginning of 2011 to about $16.45 the Suez Canal last year hasn’t erate with regulators and oth- according to court filings by
planes and railcars that it liquefied natural gas with two billion at the end of December. produced the dollars the gov- ers to resolve the matter. Delaware insurance regulators.
leases to airlines and railroads suppliers, confirming that all That is just about enough to ernment anticipated. The 120- An attorney for Mr. Hart- Although Mr. Burns wasn’t
around the world. It also does companies with active supply cover about three months of mile waterway is the fastest man couldn’t immediately be involved with the Oklahoma
various types of corporate positions in Egypt have been imports, the International route between Asia and Europe reached. Jeffrey Hoffman, a insurer, Mr. Scherr was an ex-
lending, has an online bank affected by payment delays. Monetary Fund said. and accounts for about 8% of partner at Blank Rome LLP ecutive and minority partner
and operates dozens of One- With nearly 90 million peo- Tourism, an important the world’s sea trade. But in- who represented Mr. Hartman in Mr. Burns’s firm, Southport
West branches in California. ple, the Arab world’s most source of foreign exchange, has come from the canal fell 5% to last year, said at the time that Lane. Mr. Burns, who has said
Hudson Executive has said populous nation procures floundered since the Arab $5.17 billion in 2015, partly re- his client was a victim of a he believes his firm complied
it aims to work with manage- about 10 million tons of wheat Spring uprising five years ago. flecting sluggish global trade. “scam” involving allegedly with all relevant laws, hasn’t
ment teams. Its founders are a year to meet domestic needs But after Islamic State claimed Egypt’s dollar shortage counterfeit assets. been accused of wrongdoing in
longtime Wall Street execu- for subsidized bread, making it the downing of a Russian pas- means that everyone from sell- The lawsuit follows an April any criminal or civil proceed-
tives and deal makers. Mr. the largest buyer of the grain senger aircraft in late October, ers of heart medicine to 2015 article in The Wall Street ing. Mr. Hartman was involved
Braunstein was chief financial globally. The cheap-bread pro- the tourism industry went into kitchen tables are feeling the Journal detailing the collapse in a financing arrangement
officer of J.P. Morgan and gram, for which around three- a free fall. pinch. of the Oklahoma insurer, for- with Mr. Burns’s company that
head of mergers and acquisi- quarters of Egyptians qualify, Tourism receipts fell 15% to At least 1,000 medications, merly known as BancInsure ended in 2012.
tions at the bank before that, has been in place for more $6.1 billion in 2015. That around 200 of which have no Inc. The complaint alleges that A lawyer for Michael Beas-
while Mr. Woolery was its co- than 50 years, but the cash amount could fall as much as generics or alternatives, are Messrs. Hartman and Scherr ley, one of the three other de-
head of North American M&A crunch and a deficit are push- $3.5 billion, or 1.3% of gross out of stock, said Osama Ros- gained control of financially fendants, said his client “is
and then chairman-elect of ing the government to reassess domestic product this year, ac- tom, deputy chairman of the troubled Red Rock by agreeing completely innocent.” The
law firm Cadwalader, Wicker- the allowance. cording to Capital Economics. Pharmaceutical Industry to increase its capital by $30 other two defendants couldn’t
sham & Taft LLP. The dollar shortage is af- Several countries such as Chamber, a trade association. million. But the capital they immediately be reached.
Dividend Notice
The Board of Directors of Canadian
National Railway Company has declared
ECB which bought large amounts
of agency mortgage-backed
securities.
U.S. ABS have made a
tors have criticized the ECB’s
approach and the glacial pace
of its purchases.
The ECB’s buying program
ment and quasi-sovereign
bond-buying program grew
to €530 billion after being
launched in March 2015.
“The Southern European
ABS market hasn’t opened to
the extent people would have
liked,” said Mr. Davies, noting
a quarterly dividend of CDN$ 0.375
per share on the outstanding common
Continued from the prior page stronger comeback from the has been modest, with Investors have criticized there was only one residential
shares. The quarterly dividend is omy,” Mr. Draghi said in 2014. financial crisis that many peo- only €16 billion of ABS bought the ECB for buying too many mortgage-backed securities
payable on March 31, 2016 to Central banks want compa- ple still blame these securities as of Jan. 22, or around 7% of securities in safer, Northern deal last year from southern
shareholders of record at the close
of business on March 10, 2016. nies to borrow more so that for causing. While new ABS is- the market eligible for such European countries, rather Europe.
By order of the Board they invest in their business suance in the U.S. is down purchases, according to Gareth than focusing on lowering The ECB has faced head-
Sean Finn and help the economy grow. In from its precrisis peak, it grew Davies, a strategist at J.P. funding costs in former trou- winds beyond its control as it
Executive Vice-President one sign that the ECB’s recent 12% in 2015 from the year be- Morgan Chase & Co. bled spots of southern Europe, tries to revive the market. For
Corporate Services and
Chief Legal Officer steps have yet to take off, in- fore, according to trade In comparison, its govern- where it is needed the most. a start, the markets on its
Montreal, Quebec vestment growth in the euro- groups the Association for Fi- doorstep are just smaller.
February 2, 2016
zone is trailing that in the nancial Markets in Europe and Mr. Draghi also has said
U.S. during its economic re- the Securities Industry and Fi- that regulation needs to be re-
covery. nancial Markets Association. written if the market is to
www.cn.ca In one measure of how The overall size of the U.S.’s thrive. For its part, the Euro-
much businesses are investing, ABS market expanded 26% to pean Commission is trying to
investment in equipment in about $8.8 billion in the third change these rules and reboot
the euro area was projected to quarter of 2015 from its recent the market. Among other mea-
grow by 4.6% in 2015 from the low in 2013, according to AFME sures, the European Union’s
USD 2,000,000,000 previous year, and a further and Sifma. executive arm is working on
Floating Rate Global Notes
due 2017 4.6% in 2016, according to the Despite the ECB’s efforts, amendments to capital re-
MICHAEL GOTTSCHALK/GETTY IMAGES
- WKN A169LD -
European Commission’s last the overall size of the Euro- quirements for banks and is
ISIN US500769GW89- CUSIP 500769GW8 forecast, made in autumn. pean ABS market was on track expected to act later this year.
We would like to announce that the interest That compares unfavorably to decline for a seventh con- Still, the ECB can at least
rate for the period of January 29, 2016 to to U.S. equipment investment secutive year in 2015. chalk up one success from its
March 29, 2015 has been fixed by the
Calculation Agent at 0.6815 per cent. p.a. in periods after the Federal “There was initial euphoria program. It has been “very
The total interest amount will be USD Reserve had been buying until the program started,” helpful in destigmatizing the
2,271,666.67. The interest payment date
will be March 29, 2016.
bonds: It grew 10.3% in 2011 said Edward Panek, head of market,” Richard Hopkin, a
and 8.8% in 2012, for instance. ABS investment at Henderson managing director at AFME,
FRANKFURT AM MAIN,
FEBRUARY 2016
Analysts say the U.S. ABS Global Investors. “It has had a said of an asset class that has
KFW market benefited from the very limited impact.” suffered from its association
Fed’s bond-buying program, Some analysts and inves- The ECB has had a hard time stimulating lending to the economy. with the subprime crisis.
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | C3
GLOBAL FINANCE
Beijing Alleges $7 Billion Fraud Finance
Watch
Authorities say online against Ezubo Ltd., whose lured investors with promises year from 880 at the start of products and providing guar-
implosion last year touched of high-interest payouts from 2014, as outstanding loans in anteed returns.
peer-to-peer lending off demonstrations in Beijing leasing projects. It quoted the sector rose by a factor of Ezubo was started in July
platform Ezubo and several other cities. Part company officials as saying 14, to 440 billion yuan, ac- 2014 to court investors for
of a boom in peer-to-peer 95% of the advertised invest- cording to data provider Yucheng, which mainly of- J.P. MORGAN CHASE
was a Ponzi scheme platforms, which connect ment projects were falsified Wind Information Co. fered finance leasing, that is,
lenders and borrowers, Ezubo and calling Ezubo “a down- Failed peer-to-peer plat- providing businesses with
Loans Arranged by
BY CHUIN-WEI YAP had expanded quickly, pitch- right Ponzi scheme.” forms have become so com- equipment in return for a LendingClub Bought
ing high-yield investments as The officials, including mon that industry data pro- stream of rental payments. J.P. Morgan Chase & Co.
BEIJING—Chinese authori- the economy slowed. Yucheng Executive Chairman vider Wangdaizhijia Co. Ezubo promised investors agreed to acquire about $900
ties accused an online financ- Police have arrested 21 Ding Ning, are in custody and keeps a data sheet called returns of 9% to 14.6% on million of personal loans ar-
ing platform of defrauding people linked to Ezubo and couldn’t be reached for com- “problematic platforms,” a products whose maturities ranged by LendingClub Corp.,
mostly small investors of its parent, Yucheng Interna- ment. It isn’t known whether list that by the end of last ranged from three months to people familiar with the deal
more than 50 billion yuan tional Holdings Group Ltd., they have engaged lawyers. year had increased to 1,263 a year. said.
($7.6 billion) through a Ponzi on charges that include ille- Calls to Yucheng went unan- platforms from 104 at the Xinhua said Ezubo employ- The portfolio, comprising
scheme, the latest allegation gally soliciting funds from swered. Beijing police and start of 2014. ees sought to conceal evidence loans made to consumers with
of fraud against a loosely the public and fraud, the Xin- the Ministry of Public Secu- Troubles in the sector had as prosecutors closed in, at an average FICO score of about
regulated part of China’s fi- hua report said. It said pros- rity didn’t reply to telephone built up to such an extent that one point burying more than 700, was sold for a premium to
nancial-products market. ecutors are seeking restitu- calls or faxed questions seek- in December, the month Ezubo 1,200 accounting books in 80 the outstanding balance on the
The charges, reported by tion for 900,000 investors. ing comment. was shut down, China’s bank- plastic bags nearly 20 feet un- loans, one of the people said.
the government’s Xinhua The report, which cited in- The number of peer-to- ing regulator proposed ban- derground in the outskirts of The sale was being closely
News Agency on Monday, are formation from Beijing police, peer platforms mushroomed ning peer-to-peer platforms Hefei, the capital of China’s watched by credit markets as an
the first official allegations said Ezubo and Yucheng had to 2,595 at the end of last from selling certain high-yield eastern province of Anhui. indicator of the health of the
market for online personal loans.
The loans had been owned by
Squeezed European Banks Are Freezing Hiring Santander Consumer USA

Holdings Inc., the subprime auto
lender, which had acquired them
as part of an agreement with
BY MARGOT PATRICK have slowed progress in chop- In practice, such bans are LendingClub. But last year, San-
AND MAX COLCHESTER ping staff. Banks also have rarely watertight. For exam- tander Consumer decided to
been reluctant to take the hits ple, Barclays still will make scale back its personal-loan busi-
LONDON—When Barclays to revenue that come from ex- hires in its U.K. retail branch ness and initiated a sale of the
PLC hired a new chief risk of- iting certain businesses. network, a person familiar portfolio.
ficer last week, Chief Execu- At HSBC, this year’s hiring with the matter said. The bank —Telis Demos
tive Jes Staley had to override freeze is aimed at reversing an also is hunting for top execu-
a firmwide ban on adding new increase in employee numbers tives to refresh its manage- BLACKSTONE GROUP
staff to the payroll. that came even as the bank ment team. Last week, the
Pactera Technology
JOE GIDDENS/ZUMA PRESS
Dogged by high costs and tried to cut costs. CEO Stuart British bank said it had hired
the need to cut thousands of Gulliver said last year that the C.S. Venkatakrishnan, head of On Sales Block
staff to improve returns, banks bank’s regulatory and compli- operational risk at J.P. Mor- U.S. private-equity firm Black-
across Europe are instituting ance staff had mushroomed to gan Chase & Co. stone Group LP is shopping one
hiring freezes in key areas or keep up with global rules. Some analysts have taken of its biggest assets in China, in-
across their entire operations. Staff grew to 259,834 at the heart from the banks’ an- formation technology outsourc-
Barclays froze new hiring last end of the third quarter, up by nouncements. ing firm Pactera Technology In-
fall as it and rivals, including HSBC has told its employees they won’t get pay raises this year. 2,231 from the start of 2015. HSBC’s action “is the thing ternational Ltd., for as much as
Deutsche Bank AG and Credit The bank last year outlined you want to see from a bank $1 billion, people familiar with
Suisse Group AG, restructure fines and litigation. Other to slim down this year as low plans to cut up to 50,000 jobs that is trying to deliver on the situation said.
their businesses and try to get measures to save money have oil prices and volatile markets by selling and exiting busi- their promise of flat costs Blackstone has hired Morgan
a grip on costs. included curbing the use of put pressure on earnings. nesses, and wants to shave $5 from 2014 to 2018,” said Stanley to run a sale process
On Friday, HSBC Holdings outside contractors, or cutting At European banks, the billion from its annual costs. James Chappell, a banking an- for the company after receiving
PLC told its roughly 260,000 their pay, and moving jobs to need to scale back and prune Between 2012 and 2014, alyst at Berenberg. “The way unsolicited expressions of inter-
employees that they wouldn’t lower-cost countries. staff has been more pressing Barclays cut nearly 7,000 jobs. to go about that is to take est from buyers, the people said.
get pay raises this year and Big U.S. banks also have because of their relatively To accelerate cost cuts, the tough decisions on pay.” Morgan Stanley has sent out
that no new staff would be been focused on cutting costs, poor health and weak home bank has made it impossible Deutsche Bank has curtailed initial information, known as a
added. including via layoffs. At the economies since the financial for new payroll numbers to be its hiring outside of areas such “teaser,” about the company to
The moves come as all of end of 2015, Morgan Stanley crisis. Yet many have been created in some functions, as technology, compliance and prospective buyers, these people
those banks are trying to cut for example moved to cut slow to reshape. Regulatory helping it cut around 4,400 certain trading desks where it said. It could take several
thousands of jobs in response about 1,200 jobs tied to its pressure to hire compliance jobs since the freeze started, a wants to grow, such as equi- months before a transaction is
to new regulations, tough mar- fixed-income business, and an- staff, negotiations with unions person familiar with the mat- ties trading, bank officials reached.
ket conditions and a wave of alysts expect more U.S. banks and the cost of firing workers ter said. have said. —Rick Carew, Kane Wu
Amount
Dividend Changes Company Symbol Yld % New/Old Frq
Payable /
Record
iSh iBds Mar2023 Cp xFin IBCE 3.2 .23023 M Feb05 /Feb03
Dividend announcements from February 1. iSh iBonds Dec 2016 Corp IBDF 0.5 .01566 M Feb05 /Feb03
Amount Payable / iSh iBonds Dec 2017 Corp IBDJ 0.9 .02424 M Feb05 /Feb03
Company Symbol Yld % New/Old Frq Record iSh iBonds Dec 2018 Corp IBDH 1.2 .0343 M Feb05 /Feb03
iSh iBonds Dec 2019 Corp IBDK 1.4 .04195 M Feb05 /Feb03
Increased iSh iBonds Dec 2020 Corp IBDL 1.5 .0521 M Feb05 /Feb03
BankFinancial BFIN 1.3 .05 /.04 Q Feb26 /Feb10 iSh iBonds Dec 2021 Corp IBDM 1.8 .05115 M Feb05 /Feb03
Cincinnati Financial CINF 3.2 .48 /.46 Q Apr15 /Mar23 iSh iBonds Dec 2022 Corp IBDN 2.0 .06326 M Feb05 /Feb03
Columbia Pipeline Group CPGX 2.8 .1288 /.125 Q Feb19 /Feb08 iSh iBonds Dec 2023 Corp IBDO 2.5 .05933 M Feb05 /Feb03
Columbia Pipeline Ptrs CPPL 4.5 .18 /.1725 Q Feb19 /Feb11 iSh iBonds Dec 2024 Corp IBDP 2.6 .0708 M Feb05 /Feb03
Finish Line Cl A FINL 1.9 .10 /.09 Q Mar14 /Feb26 iSh iBonds Dec 2025 Corp IBDQ 2.4 .06985 M Feb05 /Feb03
GATX GMT 3.7 .40 /.38 Q Mar31 /Feb26 iSh iBonds Mar 2016 Corp IBDA 0.2 .03277 M Feb05 /Feb03
Graham Corp GHM 1.9 .09 /.08 Q Feb25 /Feb11 iSh iBonds Mar 2018 Corp IBDB 1.4 .12909 M Feb05 /Feb03
Heritage Commerce HTBK 3.3 .09 /.08 Q Feb25 /Feb10 iSh iBonds Mar 2020 Corp IBDC 2.2 .19993 M Feb05 /Feb03
Investors Bancorp
Landmark Infr Partners
Neenah Paper
ISBC
LMRK
NP
1.7
9.5
2.0
.06 /.05
.325 /.3175
.33 /.30
Q
Q
Q
Feb25 /Feb10
Feb12 /Feb08
Mar02 /Feb12
iSh iBonds Mar 2023 Corp
iSh iBoxx $ Invt Gr Cp Bd
iSh Interm Govt/Credit Bd
IBDD
LQD
GVI
3.0
3.4
1.8
.25983 M Feb05 /Feb03
.33716 M Feb05 /Feb03
.16408 M Feb05 /Feb03
Xerox to split in two
Praxair PX 2.8 .75 /.715 Q Mar15 /Mar07 iSh Intermediate Cred Bd CIU 2.9 .22245 M Feb05 /Feb03
Xerox XRX 3.0 .0775 /.07 Q Apr29 /Mar31 iSh Intl Preferred Stock IPFF 18.3 .07884 M Feb05 /Feb03
iSh Liquidity Incm ICSH 1.1 .02483 M Feb05 /Feb03
Reduced iSh Natl AMT-Free Muni Bd MUB 2.3 .22377 M Feb05 /Feb03
North Eur Oil Royalty Tr NRT 11.2 .16 /.23 Q Feb24 /Feb12 iSh NY AMT-Fr Muni Bd NYF 2.5 .23223 M Feb05 /Feb03
Funds and investment companies iSh Short Maturity Bd NEAR 0.7 .04155 M Feb05 /Feb03
Apollo Sr Fltg Rate Fd AFT 8.1 .09 M Feb29 /Feb17 iSh Short Maturity Mun Bd MEAR 1.0 .03057 M Feb05 /Feb03
Apollo Tactical Incm Fd AIF 10.5 .117 M Feb29 /Feb17 iSh Short Treasury Bd SHV 0.1 .00909 M Feb05 /Feb03
BulletShares 2016 CB BSCG 1.0 .0162 M Feb05 /Feb03 iSh ST Natl AMT-Fr Mun Bd SUB 0.8 .06468 M Feb05 /Feb03
BulletShares 2017 CB BSCH 1.5 .0231 M Feb05 /Feb03 iSh Trea Floating Rate Bd TFLO 0.7 .01244 M Feb05 /Feb03
Calamos CHI 12.5 .095 M Feb16 /Feb10 iSh US Fixed Incm Bal INC 0.3 .23985 M Feb05 /Feb03
Calamos Conv Hi Inco Fd CHY 12.5 .10 M Feb16 /Feb10 iShares 0-5Y Inv Grd Cp SLQD 1.6 .07226 M Feb05 /Feb03
Calamos Dyn Conv & Incm CCD 12.1 .167 M Feb16 /Feb10 iShares 10+Y Credit Bond CLY 4.8 .21016 M Feb05 /Feb03
Calamos Glbl Dyn Inc CHW 12.8 .07 M Feb16 /Feb10 iShares 1-3Y Credit Bond CSJ 1.5 .11488 M Feb05 /Feb03
Calamos Global Tot Ret Fd CGO 11.4 .10 M Feb16 /Feb10 iShares 1-3Y Treasury Bd SHY 0.6 .04515 M Feb05 /Feb03
Calamos Strat Fd CSQ 11.0 .0825 M Feb16 /Feb10 iShares 20+Y Treasury Bd TLT 2.4 .24103 M Feb05 /Feb03
Columbia Core Bond ETF GMTB 2.1 .06376 M Feb05 /Feb03 iShares 3-7Y Treasury Bd IEI 1.4 .14822 M Feb05 /Feb03
Columbia Inter Mun Bd GMMB 2.3 .13061 M Feb05 /Feb03 iShares Agency Bond ETF AGZ 1.6 .12225 M Feb05 /Feb03
CurrencyShares AUD Tr FXA .07683 M Feb08 /Feb03 iShares CMBS ETF CMBS 1.9 .10623 M Feb05 /Feb03
DBX Emerging Markets Bd EMIH 5.2 .08395 M Feb05 /Feb03 iShares Core 10+Y USD Bd ILTB 4.3 .20187 M Feb05 /Feb03
DBX High Yield Corp Bd HYIH 6.3 .1101 M Feb05 /Feb03 iShares Core 1-5Y USD Bd ISTB 1.3 .15235 M Feb05 /Feb03
DBX Investment Grade Bd IGIH 3.5 .06728 M Feb05 /Feb03 iShares Floating Rate Bd FLOT 0.6 .02587 M Feb05 /Feb03
Deutsche X Muni Rev Bd RVNU 3.1 .06825 M Feb05 /Feb03 iShares GNMA Bond ETF GNMA 1.0 .05998 M Feb05 /Feb03
Flex Credit-Scored US Lg LKOR 4.6 .18936 M Feb05 /Feb03 iShares Govt/Credit Bond GBF 2.5 .17813 M Feb05 /Feb03
FlexShares Discip Dur MBS MBSD 12.4 .04055 M Feb05 /Feb03 iShares iBoxx $ HY Cp Bd HYG 6.5 .39106 M Feb05 /Feb03
FlexShares Ready Access RAVI 0.7 .04185 M Feb05 /Feb03 iShares JPM USD Emg Bd EMB 6.3 .41902 M Feb05 /Feb03
FlexShs Credit-Scored US SKOR 2.5 .0885 M Feb05 /Feb03 iShares MBS ETF MBB 4.3 .19119 M Feb05 /Feb03
Gl X GF China Bd CHNB 4.9 .0925 M Feb10 /Feb03 iShares US Preferred PFF 9.9 .17453 M Feb05 /Feb03
Gl X SuperDivid Alt ALTY 16.4 .1045 M Feb10 /Feb03 iShrs Emg Mkt Hi Yd Bd Fd EMHY 9.0 .24739 M Feb05 /Feb03
Gl X SuperDividend EM SDEM 11.9 .0725 M Feb10 /Feb03 iShrs Globl xUSD HY Cp Bd HYXU 2.8 .10164 M Feb05 /Feb03
Gl X SuperDividend REIT SRET 14.7 .1035 M Feb10 /Feb03 KKR Income Opps Fund KIO 11.5 .125 M Feb29 /Feb16
Gl X SuperDividend US DIV 8.0 .1555 M Feb10 /Feb03 KKR Income Opps Fund KIO 11.5 .125 M Mar31 /Mar14
Gl X SuperIncome Pfd SPFF 7.3 .0775 M Feb10 /Feb03 KKR Income Opps Fund KIO 11.5 .125 M Apr29 /Apr18
Global X SuperDividend SDIV 7.9 .1205 M Feb10 /Feb03 Market Vectors JPM EM LC EMLC 5.9 .086 M Feb05 /Feb03
Guggenheim BS 2016 HY BSJG 2.8 .0617 M Feb05 /Feb03 Mkt Vctrs High Yld Muni HYD 4.5 .1157 M Feb05 /Feb03
Guggenheim BS 2017 HY BSJH 4.0 .0712 M Feb05 /Feb03 Mkt Vctrs Intermed Muni ITM 2.2 .0473 M Feb05 /Feb03
Guggenheim BS 2018 HY BSJI 5.4 .0911 M Feb05 /Feb03 Mkt Vctrs Long Muni Idx MLN 3.2 .0563 M Feb05 /Feb03
Guggenheim BS 2019 HY BSJJ 5.3 .0944 M Feb05 /Feb03 Mkt Vctrs Pre-ReFded Muni PRB 0.9 .0184 M Feb05 /Feb03
Guggenheim BS 2020 HY BSJK 6.1 .0936 M Feb05 /Feb03 Mkt Vector ChinaAMC China CBON 3.0 .0856 M Feb05 /Feb03
Guggenheim BS 2021 HY BSJL 5.1 .0995 M Feb05 /Feb03 Mkt Vectors CEF Mun Incm XMPT 5.7 .1047 M Feb05 /Feb03
Guggenheim BS 2022 HY BSJM 5.4 .0975 M Feb05 /Feb03 Mkt Vectors EM Hi Yd Bd HYEM 8.2 .1353 M Feb05 /Feb03
THE CENTURY-OLD COMPANY WILL

Guggenheim BS 2023 HY BSJN 5.9 .1063 M Feb05 /Feb03 Mkt Vectors Intl Hi Yd Bd IHY 5.9 .1179 M Feb05 /Feb03
Guggenheim BulletShr 2018 BSCI 1.8 .0258 M Feb05 /Feb03 Mkt Vectors Short Muni SMB 1.2 .017 M Feb05 /Feb03
Guggenheim BulletShr 2019 BSCJ 2.1 .0307 M Feb05 /Feb03 Mkt Vectors Sht Hi Yd Mun SHYD 3.1 .0684 M Feb05 /Feb03
Guggenheim BulletShs 2020 3.0 .0365 Feb05 /Feb03 Mkt Vectors Treasury-Hd THHY 5.6 .0905 M Feb05 /Feb03
BREAK UP AND GIVE THREE BOARD

BSCK M
Guggenheim Bulletshs 2021 BSCL 2.8 .0393 M Feb05 /Feb03 MV Emg Mkts Aggregate Bd EMAG 4.9 .0703 M Feb05 /Feb03
Guggenheim BulletShs 2022 BSCM 3.0 .0431 M Feb05 /Feb03 MV Fallen Angel ETF ANGL 6.4 .092 M Feb05 /Feb03
Guggenheim BulletShs 2023 BSCN 4.4 .0471 M Feb05 /Feb03 MV Inv Gd Flt Rt ETF FLTR 0.8 .018 M Feb05 /Feb03
SEATS TO INVESTOR CARL ICAHN.

Guggenheim BulletShs 2024 BSCO 4.7 .0447 M Feb05 /Feb03 MV PREF EX-FIN ETF PFXF 10.1 .0671 M Feb05 /Feb03
Guggenheim BulletShs 2025 BSCP 3.7 .0354 M Feb05 /Feb03 Neuberger Berman HYS NHS 9.8 .08 M Feb29 /Feb16
Guggenheim Enh Short GSY 2.1 .0379 M Feb05 /Feb03 PIMCO 0-5 Hi Yd Corp HYS 5.5 .43 M Feb05 /Feb03
iSh 0-5Y Hi Yd Corp Bd SHYG 5.4 .20852 M Feb05 /Feb03 PIMCO 1-3 US Trea Idx TUZ 0.7 .029 M Feb05 /Feb03
iSh 10-20Y Treasury Bond TLH 2.2 .22088 M Feb05 /Feb03 PIMCO Divers Incm Active DI 7.9 .17 M Feb05 /Feb03
iSh 2016 AMT-Fr Muni Bond IBME 0.7 .01426 M Feb05 /Feb03 PIMCO Enh Shrt Maturity MINT 1.1 .094 M Feb05 /Feb03
iSh 2017 AMT-Fr Muni Bond IBMF 0.8 .02019 M Feb05 /Feb03 PIMCO Intermediate Mun Bd MUNI 2.3 .11 M Feb05 /Feb03
iSh 2018 AMT-Fr Muni Bond IBMG 0.9 .01897 M Feb05 /Feb03 PIMCO Inv Grade Corp Bd CORP 3.2 .26 M Feb05 /Feb03
iSh 2019 AMT-Fr Muni Bond IBMH 1.0 .02204 M Feb05 /Feb03 PIMCO Low Duration Active LDUR 7.4 .21 M Feb05 /Feb03
PIMCO Short Term Mun Bd 0.9 .04 Feb05 /Feb03
WSJ broke the story. Be the first to get exclusive news that
SMMU M
iSh 2020 AMT-Fr Muni Bond IBMI 0.9 .02652 M Feb05 /Feb03
iSh 7-10Y Treasury Bond IEF 1.8 .15917 M Feb05 /Feb03 PIMCO TR Active BOND 4.1 .20 M Feb05 /Feb03
Principal EDGE Active YLD 6.3 .13877 M Feb05 /Feb03
can impact markets. Go to WSJ.com
iSh AAA-A Rated Corp Bd QLTA 5.5 .13114 M Feb05 /Feb03
iSh BAA-BA Corp Bd Fd QLTB 6.7 .15196 M Feb05 /Feb03 ProSh Short USD Emg Bd EMSH 10.2 .56313 M Feb09 /Feb03
iSh B-CA Rated Corp Bd Fd QLTC 9.1 .27071 M Feb05 /Feb03 ProShares HY-Interest Rt HYHG 5.2 .3502 M Feb09 /Feb03
iSh Calif AMT-Free Mun Bd CMF 2.3 .23728 M Feb05 /Feb03 ProShares Inv Grade Int IGHG 3.1 .24114 M Feb09 /Feb03
iSh Convertible Bd ICVT 10.4 .06475 M Feb05 /Feb03 ProShares USD Covered Bd COBO 2.2 .12656 M Feb09 /Feb03
iSh Core Total USD Bd Mkt IUSB 1.1 .21494 M Feb05 /Feb03 Putnam High Income Sec PCF 5.2 .0309 M Mar01 /Feb24
iSh Core U.S. Credit Bd CRED 3.9 .27111 M Feb05 /Feb03 Putnam High Income Sec PCF 5.2 .0309 M Apr01 /Mar24
iSh Core U.S. Treasury Bd GOVT 1.3 .03037 M Feb05 /Feb03 Putnam Mas Inco PIM 7.2 .026 M Mar01 /Feb24
iSh Core US Aggregate Bd AGG 2.4 .22801 M Feb05 /Feb03 Putnam Mas Inco PIM 7.2 .026 M Apr01 /Mar24
iSh Em Mkts Corp Bd Fd CEMB 5.0 .18442 M Feb05 /Feb03 Putnam Muni Opportunities PMO 5.7 .0595 M Mar01 /Feb24
iSh Glbl Hi Corp Bd Fd GHYG 7.2 .14309 M Feb05 /Feb03 Putnam Muni Opportunities PMO 5.7 .0595 M Apr01 /Mar24
iSh iBd Dec 2021 AMTFree IBMJ 0.5 .02937 M Feb05 /Feb03 Putnam Premier Income Tr PPT 6.6 .026 M Mar01 /Feb24
iSh iBds Dec 2022 AMTFree IBMK 0.6 .03374 M Feb05 /Feb03 Putnam Premier Income Tr PPT 6.6 .026 M Apr01 /Mar24
iSh iBds Mar2016 Cp xFin IBCB 0.4 .02984 M Feb05 /Feb03 Putnam Tr PMM 5.9 .0363 M Mar01 /Feb24
iSh iBds Mar2018 Cp xFin IBCC 1.3 .10713 M Feb05 /Feb03 Putnam Tr PMM 5.9 .0363 M Apr01 /Mar24
iSh iBds Mar2020 Cp xFin IBCD 2.2 .17624 M Feb05 /Feb03 Schwab Intm US Trsr SCHR 1.5 .0673 M Feb05 /Feb03
Schwab Short Trm US Trsr SCHO 0.7 .0335 M Feb05 /Feb03 © 2016 Dow Jones & Co., Inc. All rights reserved. 3DJ3160
KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA: Schwab US Aggregate Bond SCHZ 2.1 .0933 M Feb05 /Feb03
semiannual; S2:1: stock split and ratio; SO: spin-off. Continued on Page C7
C4 | Tuesday, February 2, 2016 * *** THE WALL STREET JOURNAL.
IN THE MARKETS
Stocks Weather Oil’s Slide Miners Dig Deeper
Shares push higher
in last hour after
Hole for Platinum
losses most of day; BY ESE ERHERIENE rencies, on metal production
AND ALEXANDRA WEXLER in some developing nations.
‘hanging in there’ Platinum rallied last week,
RUSTENBURG, South Af- but fell 0.3% to $867.20 an
BY SAUMYA VAISHAMPAYAN rica—Miners at Impala Plati- ounce Monday in late London
num Holdings Ltd.’s three-de- trading. Most analysts remain
Stocks paused after major in- cade-old mine drill into a thin negative about prospects for
dexes notched their biggest one- strip of sparkling platinum the metal, which ended Janu-
day gains since the fall. about 2,600 feet underground. ary in the red for the first
The Dow Jones Industrial Av- The sweat-soaked miners time since 2010.
erage slipped 17.12 points, or are producing large amounts Platinum has fallen further
0.1%, to 16449.18, after rising of this precious metal, helping than most precious metals,
nearly 400 points on Friday. to dig a hole for a market in which are often used as a ha-
ANNA HENLY/ZUMA PRESS
Stocks had modest losses for which prices are near a seven- ven when wider markets are
most of the ses- year low. volatile. Since July 2014, plat-
MONDAY’S sion amid a tum- COMMODITIES During inum is down about 40%,
MARKETS ble in oil prices the com- while gold has fallen roughly
and fresh signs modities 15%. Palladium, which also is
of economic boom, platinum became more used in vehicle manufacturing,
weakness in China but pushed expensive than gold, buoyed has fallen about 40%.
higher in the last hour of trad- U.S. crude oil dropped 5.9% to $31.62 a barrel Monday, giving back a big chunk of last week’s gains. by demand from Chinese jew- The sharp decline is turning
ing. elry buyers and the auto in- customers off as they worry
U.S. crude oil fell 5.9% to said Rob Bernstone, managing $81.12, while Mondelez fell 37 45%, to 54.11. dustry. that platinum doesn’t keep its
$31.62 a barrel, giving back a director in equity trading at cents, or 0.9%, to 42.73. Treasurys fell, pushing the Now, those factors have value as well as gold, said
big chunk of last week’s gains. Credit Suisse. Over the longer run, cheap yield on the 10-year note up to turned against it, with China’s Matthew Turner, a precious-
The market surged to a three- While the U.S. economy is ex- gasoline and low interest rates 1.966%, from 1.928% on Friday. fraying economic growth and metals analyst at Macquarie
week high late last week, partly pected to expand this year, in- should bolster the U.S. con- The Stoxx Europe 600 fallout from the Volkswagen Group Ltd.
on hopes of cooperation on out- vestors fear that turmoil over- sumer, said Michael Scanlon, dropped 0.2%. AG emissions scandal threat- Many analysts predict the
put cuts between Russia and seas could depress that growth, who helps oversee $4.5 billion Stocks were mixed in Asia ening to curb demand at a metal has further to fall and
OPEC. Now, many leaders of the which bodes poorly for stocks as a portfolio manager at John early Tuesday. The Shanghai time when supply remains will dip below $800 an ounce
Organization of the Petroleum over a longer period. In that en- Hancock Asset Management. Composite Index was up 2.4% , strong. this year.
Exporting Countries are actively vironment, some investors say “Take somebody that while Australia’s S&P ASX 200 The metal is widely used in Some analysts’ concerns
damping expectations for cuts. they are betting on the more de- doesn’t live and die in the mar- and South Korea’s Kospi were diesel car engines, which are aren’t limited to demand.
Many of the factors that sent fensive parts of the U.S. stock kets everyday. Are they doing down 0.4%. Japan’s Nikkei was at the center of the VW scan- Johnson Matthey PLC,
oil tumbling over the past 19 market. anything differently because all flat at the lunch break. dal, sparking concerns that de- which trades platinum, esti-
months, including a global glut The telecommunications and of a sudden China is growing —Timothy Puko mand for diesel vehicles could mates that supply from South
of oil, haven’t changed, analysts utilities sectors, which include slower?” Mr. Scanlon said. He contributed to this article. decline and have an impact on Africa, the world’s biggest
said Monday. stocks that pay out hefty divi- said he continues to like stocks platinum demand. producer, increased by more
The S&P 500 gave up less dends, have advanced the most in the consumer-finance space AUCTION RESULTS About 29% of total plati- than 20%, to 4.3 million
than one point to end at in the S&P 500 this year. and consumer-discretionary Here are the results of Monday's Treasury auctions. num demand comes from ounces in 2015, a four-year
All bids are awarded at a single price at the market-
1939.38, while the Nasdaq Com- “This is just a slowdown” sector. clearing yield. Rates are determined by the difference China, mainly in jewelry. high, from the previous year.
between that price and the face value.
posite added 6.41 points, or rather than a recession in the Alphabet, the parent of About 43% of platinum is used While the platinum market
13-WEEK AND 26-WEEK BILLS
0.1%, to 4620.37. U.S., said Robert Pavlik, senior Google, reported better-than-ex- in the auto industry for cata- is one of the few widely traded
13-Week 26-Week
Given the large size of Fri- portfolio manager at Boston Pri- pected results after the market Applications $127,463,357,600 $115,832,031,500
lytic converters to reduce en- metals to be technically in a
day’s gains in stocks, Monday’s vate Wealth. “People still spend close. Its shares rose 35.48, or Accepted bids $37,000,357,600 $30,000,153,500 gine emissions. supply deficit, most analysts
" noncomp $399,617,600 $372,361,500
drop in oil and sluggish Chinese money during slowdowns, it’s 4.6%, to 806.25 in after-hours " foreign noncomp $100,000,000 $300,000,000
Miners keep digging up say this is a hard conclusion to
data, traders and investors said just a question of where do they trading. Auction price (rate) 99.911528 99.764917 platinum, because steep falls draw. That is because some
they had expected bigger de- spend it?” he said, adding that (0.350%) (0.465%) producers, such as Russia,
Abbott Laboratories agreed Coupon equivalent 0.356% 0.474%
in the currencies of top pro-
clines in stocks. he likes consumer-staples stocks to acquire diagnostic-test com- Bids at clearing yield accepted 23.74% 98.02% ducers South Africa and Rus- keep stockpiles whose size is
“It’s impressive that despite such as Procter & Gamble and pany Alere for $5.8 billion. Ab- Cusip number 912796HN2 912796JD2 sia are cushioning the blow of hard to estimate and which
Both issues are dated Feb. 4, 2016. The 13-week bills
the large rally on Friday, the Mondelez International. P&G bott rose 60 cents, or 1.6%, to mature on May 5, 2016; the 26-week bills mature on the metal’s falling price in dol- can end up on the market with
market is hanging in there,” slipped 57 cents, or 0.7%, to 38.45. Alere jumped 16.91, or Aug. 4, 2016. lar terms. little warning.
The troubles underscore the That deficit also is being
impact of the strong dollar, winnowed as supply keeps
DARK regulators have found. Worse,

they told clients they would
protect them from predatory
high-speed trading while hid-
keting material describing the
types of clients on LX that
omitted its largest sub-
scriber—a high-frequency
currently around a 13-year
high against a basket of cur-
flowing from mines like those
in Rustenburg.
Losing Its Luster

LUKE MACGREGOR/BLOOMBERG NEWS
Continued from page C1 ing how much of their order trader.

to trade large chunks of stocks flow depended on the firms’ Credit Suisse, meanwhile, The price of platinum has been falling rapidly over the
without alerting the broader frenetic activities. told clients its dark pool past seven months, dropping below the price of gold.
market to their activities. Credit Suisse and Barclays would give predatory traders a
Platinum and gold prices on the London spot market
At about the same time, this week agreed to pay a negative score, a program “in-
trading by high-frequency combined $154.3 million to tended to address certain sub- $2,500 a troy ounce
firms also took off. Large trad- settle allegations that they scriber concerns about inter-
ers such as mutual funds grew misled investors about high- acting with high-frequency
2,000
concerned that high-speed frequency trading activities on trading firms,” the SEC said.
traders were hurting them by their dark pools. Clients could choose not to
detecting their orders on ex- Barclays told clients that its Credit Suisse said its ‘dark trade with firms with a bad 1,500
changes and trading ahead of dark pool, called LX, protected pool’ would give predatory score. But the system didn’t
them. Many of the firms them from predatory trading traders a negative score. perform as Credit Suisse said
turned to dark pools, hoping using its “Liquidity Profiling” it should since it included 1,000 Gold
the opaque venues would pro- system, which it said could de- But Barclays often shifted “significant subjective ele- Platinum
tect them from such activities. tect such activity, according to traders assigned a low ranking ments,” the SEC said.
The problem was that most the SEC. Trades were catego- into a higher ranking, the SEC The Swiss bank also didn’t 500
dark pools also catered to rized in buckets ranked from said. Because of that, certain disclose that it ran a trading
high-frequency firms. Some zero to five, with zero the clients traded with firms system that alerted two high-
0
weren’t entirely forthcoming most predatory, and clients ranked “in the most aggres- frequency firms about the ex-
to their clients about their re- could elect to not trade with sive categories,” the SEC said. istence of orders placed by 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
liance on high-speed traders, low-ranked firms. Barclays also presented mar- other clients, the SEC said. Source: FutureSource THE WALL STREET JOURNAL.
Biggest 1,000 Stocks | WSJ.com/stocks Stock

Net
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How to Read the Stock Tables CRHADR CRH 26.78 -0.14 CrestwoodEquity CEQP 12.91 0.15 FMCTechnologies FTI 24.78 -0.37 HondaMotorADR HMC 27.73 0.71 Level3Comm LVLT 48.87 0.06 NewmontMining NEM 20.55 0.59
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed CSRA CSRA 26.81 0.03 CrownCastl CCI 86.82 0.62 FactSetResearchSys FDS 149.83 -0.87 Honeywell HON 102.88 -0.32 LibertyPropertyTr LPT 29.23 -0.09 s NextEraEnergy NEE 112.98 1.27
securities. Prices are composite quotations that include primary market trades as well as trades CVSHealth CVS 97.32 0.73 CrownHoldings CCK 45.10 -0.78 s FedRlty FRT 151.98 1.15 s HormelFoods HRL 82.02 1.61 EliLilly LLY 78.40 -0.70 Nidec ADR NJ 17.72 0.66
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Cablevision CVC 32.20 0.29 CubeSmart CUBE 31.57 0.28 FedEx FDX 132.31 -0.57 DR Horton DHI 27.03 -0.48 LincolnNational LNC 39.23 -0.23 NielsenHoldings NLSN 48.03 -0.13
Exchange, ISE and BATS. CabotO&G COG 20.56 -0.19 Cummins CMI 91.17 1.28 Ferrari RACE 39.93 0.16 HostHotels&Resorts HST 13.71 -0.14 LinkedInA LNKD 205.76 7.85 NikeClB NKE 63.16 1.15
The list comprises the 1,000 largest companies based on market capitalization.
Underlined quotations are those stocks with large changes in volume compared with the issue’s Calpine CPN 15.26 -0.05 DDR Corp DDR 17.05 -0.06 FiatChryslerAutos FCAU 7.01 -0.03 HuanengPowerADR HNP 33.21 0.17 LiveNationEnt LYV 22.46 -0.24 s NipponTelegraphADR NTT 44.26 1.50
average trading volume. CamdenPropertyTr CPT 76.24 -0.06 DTEEnergy DTE 85.31 0.30 FibriaCelulose ADR FBR 10.50 -0.55 Hubbell HUBB 90.10 -0.33 LloydsBankingADR LYG 3.78 -0.03 s NiSource NI 21.30 0.29
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous Cameco CCJ 12.12 -0.02 Danaher DHR 85.96 -0.69 FidNtlFnl FNF 32.50 0.12 Humana HUM 167.58 4.79 LockheedMartin LMT 209.80 -1.20 NobleEnergy NBL 31.65 -0.72
closing price was $2 or higher. CameronIntl CAM 65.09 -0.57 Darden DRI 63.33 0.27 FNFVGroup FNFV 9.55 0.17 HuntingtonIngalls HII 126.72 -1.16 Loews L 36.98 -0.03 NokiaADR NOK 6.34 -0.86
Footnotes: listing standards vj-In bankruptcy or s CampbellSoup CPB 56.86 0.45 DaVitaHlthcrPtrs DVA 67.41 0.29 FidelityNtlInfo FIS 60.67 0.94 HyattHotels H 38.25 -0.43 Lowe's LOW 72.66 1.00 NomuraHoldingsADR NMR 5.44 0.03
s-New 52-week high. lf-Late filing receivership or being CIBC CM 64.84 -0.01 Deere DE 76.80 -0.21 58.comADR WUBA 56.18 0.08 t ICICIBankADR IBN 6.42 -0.23 LuxotticaGroupADR LUX 59.15 -2.39 Nordstrom JWN 49.93 0.83
t-New 52-week low. q-Temporary exemption from reorganized under the CanNtlRlwy CNI 53.46 -0.03 DelhaizeGroupADR DEG 26.22 0.10 FirstRepublicBank FRC 67.84 -0.16 IHSClA IHS 102.75 -1.87 LyondellBasell LYB 77.25 -0.72 NorfolkSouthern NSC 70.19 -0.31
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities CndNatRes CNQ 20.90 -0.36 DelphiAutomotive DLPH 66.40 1.46 FirstEnergy FE 33.05 -0.01 IMSHealthHoldings IMS 23.06 -0.06 M&T Bnk MTB 108.16 -2.02 NorthropGrumman NOC 188.64 3.58
recent four quarters. t-NYSE bankruptcy assumed by such companies. CanPacRlwy CP 119.53 -0.20 DeltaAir DAL 45.21 0.92 FleetCorTechs FLT 121.76 -1.08 INGGroepADR ING 11.50 -0.09 MGMResortsIntl MGM 20.05 -0.03
FD-First day of trading. v-Trading halted on primary Novartis ADR NVS 77.27 -0.70
h-Does not meet continued market. CanonADR CAJ 27.86 -0.15 DeutscheBank DB 17.84 -0.05 FlwrsFoods FLO 20.57 0.03 Invesco IVZ 29.12 -0.81 MPLX MPLX 30.27 -0.50 NovoNordiskADR NVO 55.84 -0.03
CapOneFnl COF 65.01 -0.61 DevonEnergy DVN 26.06 -1.84 Flowserve FLS 38.37 -0.27 ITCHoldings ITC 40.33 0.43 MSCI MSCI 67.74 -1.10 Nucor NUE 39.18 0.11
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and CardinalHealth CAH 79.80 -1.57 DiageoADR DEO 110.09 2.42 Fluor FLR 44.61 -0.28 IDEX IEX 71.45 -1.06 Macerich MAC 78.57 0.60 NuSTAREnergy NS 32.13 -0.30
changes in the closing prices from 4 p.m. the previous day. Carlisle CSL 83.51 -0.17 DicksSprtgGds DKS 38.93 -0.15 FomentoEconMexADR FMX 95.79 0.97 IllinoisToolWorks ITW 89.92 -0.15 MacquarieInfr MIC 66.20 -0.86 OGEEnergy OGE 26.69 0.46
t CarMax KMX 43.93 -0.25 DigitalRealtyTrust DLR 79.62 -0.46 FootLocker FL 69.10 1.54 InfosysADR INFY 17.77 -0.14 Macys M 40.91 0.50 ONEOK OKE 23.44 -1.47
Monday, February 1, 2016 Net Net Carnival CCL 48.97 0.84 t DiscoverFinSvcs DFS 46.05 0.26 FordMotor F 12.07 0.13 Ingersoll-Rand IR 50.91 -0.56 MagelnPtnrs MMP 63.72 -0.51 ONEOKPartners OKS 26.66 -0.68
Net Stock Sym Close Chg Stock Sym Close Chg s Ingredion INGR 100.82
Carnival ADR CUK 51.38 1.05 Disney DIS 95.15 -0.67 ForestCityRealtyA FCE/A 19.49 -0.21 0.10 MagnaInt MGA 35.12 0.53 OccidentalPetrol OXY 66.56 -2.27
Stock Sym Close Chg Carters CRI 98.41 1.19 DollarGeneral DG 76.35 1.29 FortBrandsHomeSec FBHS 48.13 -0.46 s ICE ICE 266.94 3.14 Mallinckrodt MNK 62.16 4.07
AmericanFinancial AFG 70.58 -0.40 BancoBilbaoVizADR BBVA 6.37 -0.10 Och-ZiffCapMgmt OZM 5.40 0.24
AmericanIntl AIG 56.29 -0.19 BancodeChileADR BCH 61.80 -0.66 Caterpillar CAT 62.70 0.46 DominionResources D 70.18 -1.99 Franco-Nevada FNV 44.99 0.88 InterContinentlADR IHG 34.06 0.92 ManpowerGroup MAN 75.95 -0.40 OldRepublic ORI 18.11 0.03
NYSE AmericanTowerREIT AMT 93.10 -1.24 BcoSantChileADR BSAC 17.40 0.11 Celanese A CE 61.47 -2.20 Dominos DPZ 114.35 0.42 FranklinResources BEN 33.69 -0.97 IBM IBM 124.83 0.04 ManulifeFinancial MFC 13.78 -0.08 OmegaHealthcare OHI 31.63 -0.08
ABBADR ABB 17.22 -0.08 s AmericanWaterWorks AWK 65.03 0.12 BancoSantanderADR SAN 4.12 -0.07 CemexADR CX 4.41 -0.12 DouglasEmmett DEI 29.14 -0.44 Freeport-McMoRan FCX 4.74 0.14 IntFlavor IFF 118.46 1.50 MarathonOil MRO 9.74 0.01 OmnicomGroup OMC 73.95 0.60
ADTCorp. ADT 29.57 -0.01 Amerigas APU 39.03 0.60 BanColombiaADR CIB 29.04 -0.46 CencosudADR CNCO 6.34 0.04 Dover DOV 57.82 -0.63 FreseniusMedADR FMS 45.39 0.90 InternationalPaper IP 34.09 -0.12 MarathonPetroleum MPC 41.77 -0.02 OpkoHealth OPK 7.92 -0.12
AES AES 9.46 -0.04 AmerprsFncl AMP 87.79 -2.86 BankAm BAC 13.96 -0.18 CenovusEnergy CVE 11.94 -0.35 DowChemical DOW 42.58 0.58 Gallagr AJG 37.83 0.19 Interpublic IPG 22.47 0.03 MarineHarvestADR MHG 13.59 0.01 Oracle ORCL 36.32 0.01
Aflac AFL 56.51 -1.45 AmeriSrcBrg ABC 89.00 -0.56 BkMntrl BMO 53.30 -0.22 Centene CNC 63.59 1.53 s DrPepperSnap DPS 95.53 1.69 Gap GPS 24.74 0.02 IronMountain IRM 27.08 -0.46 Markel MKL 851.69 11.23 OrangeADR ORAN 17.83 0.16
AGLResources GAS 64.44 0.88 Ametek AME 46.68 -0.37 BankNY Mellon BK 35.50 -0.72 CenterPointEnergy CNP 18.62 0.75 DrReddysLabADR RDY 45.28 0.35 Gartner IT 88.41 0.52 IsraelChemicals ICL 4.04 -0.07 Marsh&McLennan MMC 53.27 -0.06 OrbitalATK OA 89.55 -0.68
AT&T T 36.18 0.12 AmphenolClA APH 49.87 0.30 BkNovaScotia BNS 40.45 -0.39 CenturyLink CTL 25.90 0.48 DuPont DD 53.30 0.54 Gazit-Globe GZT 7.82 -0.14 ItauUnibancoADR ITUB 6.43 0.14 MrtnMarMat MLM 123.72 -1.86 OrixADR IX 75.14 3.80
AbbottLabs ABT 38.45 AnadarkoPetroleum APC 38.25 -0.84 BarclaysADR BCS 10.66 -0.12 Chevron CVX 85.29 -1.18 DukeEnergy DUK 77.00 1.70 GenDynam GD 133.62 -0.15 JPMorganChase JPM 58.86 -0.64 Masco MAS 26.27 -0.12 OwensCorning OC 44.99 -1.20
0.60
ABBV 54.39 AnheuserBuschADR BUD 126.71 0.87 Bard CR BCR 188.08 4.81 ChinaEasternAirADR CEA 23.40 -0.75 DukeRealty DRE 20.08 -0.05 GenElec GE 28.64 -0.46 JacobsEngineering JEC 39.13 -0.10 MasterCard MA 88.63 -0.40 PG&E PCG 55.46 0.55
AbbVie -0.51 t ChinaLifeInsADR LFC 11.55 -0.55 EMC
AnnalyCap NLY 9.53 0.03 BarrickGold ABX 10.07 0.16 EMC 24.52 -0.25 GeneralGrowthProp GGP 28.08 0.04 JamesHardieADR JHX 11.68 0.25 McCormick MKC 88.17 0.20 PNC FnlSvcs PNC 86.09 -0.56
AccentureClA ACN 106.28 0.74
AnteroResources AR 26.88 -0.29 Baxalta BXLT 40.17 0.16 ChinaMobileADR CHL 54.57 0.04 ENIADR E 28.75 -0.20 GeneralMills GIS 56.67 0.16 Jarden JAH 53.22 0.17 s McCormickVtg MKC/V 88.25 0.62 POSCOADR PKX 36.92 -0.17
AcuityBrands AYI 200.16 -2.27
Anthem ANTM 129.72 -0.77 BaxterIntl BAX 37.28 0.68 ChinaPetroleumADR SNP 54.91 -1.40 EOG Res EOG 69.09 -1.93 GeneralMotors GM 30.11 0.47 JohnsJohns JNJ 104.37 -0.07 s McDonalds MCD 124.61 0.83 PPG Ind PPG 95.59 0.47
AdvanceAuto AAP 154.89 2.84
Aon AON 87.58 -0.25 BectonDickinson BDX 146.02 0.65 ChinaSoAirlinesADR ZNH 29.51 -0.45 EQT EQT 59.88 -1.86 Genpact G 24.50 0.58 JohnsonControls JCI 35.01 -0.86 McGrawHillFin MHFI 84.14 -0.88 s PPL PPL 35.92 0.86
AdvSemiEnggADR ASX 5.27 -0.08
Apache APA 40.82 -1.72 Bemis BMS 47.22 -0.65 ChinaTelecomADR CHA 47.03 0.19 EQTMidstreamPtrs EQM 71.00 2.93 GenuineParts GPC 83.91 -2.26 JonesLangLaSalle JLL 137.98 -2.74 McKesson MCK 159.27 -1.71 PVH Corp. PVH 73.17 -0.21
AegonADR AEG 5.64 -0.04
ApartmtInv AIV 39.61 0.46 Berkley WRB 50.27 0.12 ChinaUnicomADR CHU 10.97 -0.12 EastmanChemical EMN 60.46 -0.75 Gildan t GIL 25.42 0.22 JoyGlobal JOY 10.08 0.11 MeadJohnNutr MJN 71.93 -0.56 PackCpAm PKG 51.01 0.18
AerCapHoldings AER 31.04 0.33 ChipotleMex CMG 472.64 19.67 EatonCorp.PLC ETN 50.22 -0.29 GlaxoSmithKlineADR GSK 41.38 JuniperNetworks JNPR 24.33
ApolloGlobalMgmtA APO 13.58 ... BerkHathwy A BRK/A 194759398.95 0.09 0.73 Mednax MD 69.54 0.08 PaloAltoNetworks PANW 150.55 1.06
Aetna AET 103.37 1.53 CB 113.28 0.21 Ecolab KARAuctionServices KAR 34.25
Aptargroup ATR 72.31 -0.59 BerkHathwy B BRK/B 128.66 -1.11 Chubb ECL 107.42 -0.45 GlblPymts GPN 59.62 0.67 0.83 Medtronic MDT 76.85 0.93 ParkerHannifin PH 96.37 -0.79
AffiliatedManagers AMG 132.20 -1.99 ChunghwaTelecomADR CHT 31.16 0.04 EcopetrolADR EC 6.09 -0.35 GoDaddyClA GDDY 30.67 KBFinancialGrpADR KB 24.70
s AquaAmerica WTR 31.87 0.34 BestBuy BBY 28.57 0.64 0.18 -0.46 Merck MRK 50.75 0.08 PartnerRe PRE 140.40 ...
AgilentTechs A 37.69 0.04 Church&Dwight CHD 85.07 1.07 EdgewellPersonal EPC 73.49 -0.52 Goldcp GG 11.54 0.20 KKR KKR 13.91 0.28 MetLife MET 44.28 -0.37
AgnicoEagleMines AEM 30.07 Aramark ARMK 32.79 0.84 BlackKnightFinSvcs BKFS 30.17 ... PearsonADR PSO 11.31 0.08
0.63 Cigna CI 133.23 -0.37 EdisonInt EIX 62.23 0.43 GoldmanSachs GS 159.65 -1.91 KTADR KT 12.05 -0.27 MettlerToledo MTD 317.32 4.47
ArcelorMittalADR MT 3.73 -0.09 BlackRock BLK 312.25 -2.01 PembinaPipeline PBA 22.48 -0.26
Agrium AGU 85.53 -1.34 CimarexEngy XEC 87.23 -5.77 EdwardsLife EW 78.84 0.63 GraceWR GRA 82.60 1.26 KSCitySo KSU 72.27 1.39 MichaelKorsHldgs KORS 40.44 0.54
ArcherDan ADM 35.46 0.11 BlackstoneGroup BX 27.37 1.10 Pentair PNR 46.63 -0.49
AirProducts&Chems APD131.26 4.55 ArrowElec ARW 52.50 42.48 -0.10 Embraer ADR ERJ 28.86 0.08 Grainger GWW 197.70 1.01 s Kellogg 73.59 0.15 MidAmApt MAA 93.85 0.03
s Airgas
0.90 BlockHR HRB 34.47 0.42 Citigroup C K PepcoHoldings POM 26.74 0.06
ARG 140.22 0.22 ASH 93.53 CitizensFinancial CFG 20.78 -0.47 EmersonElectric EMR 45.50 -0.48 GpoAeroportuarADR PAC 84.17 0.13 KeyCp KEY 11.08 -0.08 MindrayMedADR MR 27.14 0.14
Ashland -1.23 BdwlkPipePtnr BWP 10.64 -0.27 PepsiCo PEP 99.03 -0.27
AlaskaAirGroup ALK 70.29 -0.11 Assurant AIZ 80.98 s Clorox CLX 131.81 2.76 EmpresaNacADR EOC 39.33 0.53 GpoAvalAccionesADR AVAL 6.48 -0.08 KilroyRealty KRC 55.60 -0.27 t MitsubishiUFJADR MTU 4.84 -0.23
-0.33 Boeing BA 121.56 1.43 PerkinElmer PKI 48.23 -0.09
Albemarle ALB 52.82 0.18 AstraZenecaADR AZN 32.53 0.31 BorgWarner BWA 29.77 0.41 Coach COH 37.21 0.16 EnbridgePtnr EEP 18.05 -0.21 GpFinSantandMexADR BSMX 7.55 -0.12 KimberlyClark KMB 129.01 0.59 t MizuhoFinancialADR MFG 3.19 -0.10
AlcatelLucentADR ALU 3.48 -0.46 Perrigo PRGO 143.70 -0.88
s AtmosEnergy ATO 68.59 -0.63 BostonProperties BXP 116.31 0.10 CocaCola KO 43.00 0.08 Enbridge ENB 33.73 -0.87 GrupoTelevisaADR TV 27.19 0.71 KimcoRealty KIM 27.29 0.10 MobileTeleSysADR MBT 7.03 0.03
Alcoa AA 7.21 -0.08 PetroChinaADR PTR 58.53 -2.59
Autoliv ALV 105.48 2.70 BosSci BSX 17.88 0.35 Coca-ColaFemsaADR KOF 70.50 0.36 Encana ECA 4.36 -0.01 HCAHoldings HCA 71.02 1.44 KinderMorgan KMI 15.19 -1.26 MohawkIndustries MHK 167.62 1.21
AlexREEq ARE 78.15 -1.03 PetroleoBrasilADR PBR 3.29 -0.18
AutoNation AN 45.14 1.89 BristolMyers BMY 60.82 -1.34 CocaColaEnt CCE 47.17 0.75 EngyTrnsfrEqty ETE 8.66 -0.02 HCP HCP 36.23 0.29 KingDigitalEnt KING 17.95 0.02 MolsonCoors A TAP/A 91.28 0.03
AlibabaGroupADR BABA 67.03 ... PetroleoBrasilADRA PBR/A 2.37 -0.06
AutoZone AZO 768.55 1.16 BrixmorPropertyGrp BRX 26.70 0.08 ColgatePalmolive CL 66.20 -1.33 EnergyTransfer ETP 28.90 -0.84 HDFCBankADR HDB 59.93 -0.40 Kohl's KSS 49.08 -0.67 MolsonCoors B TAP 91.91 1.43
Alleghany Y 474.34 -3.58 Pfizer PFE 30.17 -0.32
Avalonbay AVB 171.97 0.48 BdridgeFnlSol BR 53.86 0.30 ColumbiaPipeline CPGX 18.11 -0.44 Enerplus ERF 3.08 -0.09 HP HPQ 9.97 0.26 KoninklijkePhilADR PHG 26.57 -0.11 Monsanto MON 90.13 -0.47
Allegion ALLE 60.45 -0.11 s PhilipMorrisIntl PM 89.41 -0.60
Avangrid AGR 38.99 0.54 BrookfieldMgt BAM 29.81 -0.15 Comerica CMA 33.61 -0.69 EnersisAmericasADR ENI 12.14 0.35 HSBCHoldingsADR HSBC 34.95 -0.45 KoreaElcPwrADR KEP 22.15 0.35 Moodys MCO 88.01 -1.13
Allergan AGN 282.70 -1.73 CSC 31.74 -0.33 EnLinkMidstream ENLK 11.52 -0.47 Halliburton HAL 31.62 PhilippineLgDisADR PHI 46.46 -0.46
AveryDennison AVY 61.03 0.14 BrookfieldInfr BIP 35.53 -0.42 CSC -0.17 Kroger KR 40.11 1.30 MorganStanley MS 25.71 -0.17
AllianceData ADS206.56 6.77 ConAgraFoods CAG 41.98 0.34 Entergy Phillips66 PSX 79.48 -0.67
Aviva ADR AV 13.77 -0.03 BrownFormanClA BF/A 104.76 -1.53 ETR 71.60 1.02 Hanesbrands HBI 31.18 0.61 KyoceraADR KYO 40.71 0.76 Mosaic MOS 23.92 -0.18
s PiedmontNaturalGas PNY 59.10 -0.14
AllncBrnstnHldg AB 18.82 0.38 Avnet AVT 40.50 0.58 BrownFormanClB BF/B 96.28 -1.56 ConchoResources CXO 92.01 -3.12 EntPdtsPtnr EPD 23.94 0.03 HarleyDavidson HOG 40.13 0.13 LBrands LB 96.56 0.41 MotorolaSolutions MSI 66.85 0.08
AlliantEnergy LNT 65.96 0.62 ConocoPhillips COP 38.60 -0.48 Equifax s NTTDoCoMoADR DCM 23.84 1.29 PinnacleFoods PF 43.07 0.18
AxaltaCoatingSys AXTA 24.62 0.81 BuckeyePartners BPL 57.39 -0.85 EFX 106.92 1.12 HarmanIntlInds HAR 73.53 -0.86 LGDisplayADR LPL 9.26 0.21
Allstate ALL 60.53 -0.07 s ConEd ED 70.42 1.03 EquityLife ELS 67.42 1.50 Harris HRS 86.72 PinnacleWestCap PNW 67.27 0.96
AxisCapital AXS 54.00 0.09 Bunge BG 61.24 -0.77 -0.25 L-3Communications LLL 117.59 0.75 NVR NVR 1647.67 -3.33
AllyFinancial ALLY 16.05 0.20 s ConstBrands A STZ 154.36 1.88 EqResdntl EQR 76.73 -0.36 HrtfrdFnl HIG 39.89 PioneerNaturalRscs PXD 122.29 -1.66
BB&T BBT 32.29 -0.37 CBRE Group CBG 27.53 -0.44 -0.29 LabCpAm LH 112.27 -0.08 NationalGridADR NGG 72.07 1.26
AltriaGroup MO 60.94 -0.17 s ConstBrands B STZ/B 155.86 5.05 EssexProp ESS 214.23 1.12 HealthNet HNT 67.18 PlainsAllAmPipe PAA 20.39 -0.72
BCE BCE 40.76 0.46 CBSClA CBS/A 52.36 0.11 0.96 LasVegasSands LVS 44.63 -0.47 NtlOilwellVarco NOV 31.99 -0.55
AlumofChinaADR ACH 7.40 -0.13 ContinentalRscs CLR 20.06 -1.05 EsteeLaudr A EL 85.46 0.21 Helmerich&Payne HP 49.93 s NtlRetailProp NNN 43.43 0.49 PlainsGPHldgsClA PAGP 7.92 -0.08
BHPBillitonADR BHP 21.73 -0.18 CBSClB CBS 47.91 0.41 -0.87 Lazard LAZ 36.06 0.07
AmbevADR ABEV 4.63 -0.01 COO 132.05 0.90 EvrstReGrp RE 180.62 1.68 Hershey HSY 89.36 PlumCrk PCL 41.38 0.87
BHPBillitonADR BBL 19.67 0.02 CFIndustries CF 30.24 0.24 Cooper 1.25 LearCorp LEA 105.61 1.78 NetSuite N 70.47 1.10
s Ameren AEE 45.66 0.74 GLW 18.57 -0.04 EversourceEnergy ES 54.57 0.77 Hess HES 41.76 -0.74 Leggett&Platt LEG 41.58 0.07 NewOrientalEducADR EDU 32.01 0.60 PolarisIndustries PII 75.17 1.33
BPADR BP 31.70 -0.67 CGI Gp A GIB 43.31 0.41 Corning
AmericaMovilADR AMX 14.13 -0.01 PotashCp POT 15.88 -0.42
BRFADR BRFS 12.26 0.13 t CIT Grp CIT 29.86 0.51 CotyClA COTY 24.31 -0.30 Exelon EXC 30.00 0.43 HewlettPackardEnt HPE 13.79 0.03 LennarClA LEN 41.62 -0.53 NY CmntyBcp NYCB 15.48 ...
AmCampus ACC 42.42 0.22 BTGroupADR BT 35.85 0.99 s CMSEnergy CMS 39.19 0.31 Credicorp BAP 101.23 -0.13 ExtraSpaceStorage EXR 89.49 -1.20 HiltonWorldwide HLT 17.96 0.15 LennarClB LEN/B 33.85 -0.80 Newell NWL 39.01 0.23 Praxair PX 100.53 0.53
AEP AEP 61.79 0.82 BakerHughes BHI 43.29 -0.22 CNAFinancial CNA 33.18 -0.05 CreditSuisseADR CS 17.34 -0.46 ExxonMobil XOM 76.29 -1.56 HollyFrontier HFC 35.74 0.77 LennoxIntl LII 118.73 -1.09 NewfldExpl NFX 28.17 -0.90 PrincipalFinancial PFG 37.95 -0.05
AmericanExpress AXP 54.70 1.20 Ball BLL 67.20 0.37 CNOOCADR CEO 96.71 -4.86 CrescentPntEnrg CPG 10.53 -0.57 FMC FMC 35.67 -0.05 HomeDepot HD 126.51 0.75 LeucadiaNational LUK 16.55 -0.01 NewMarket NEU 374.93 -4.34 Continued on Page C5
THE WALL STREET JOURNAL. NY Tuesday, February 2, 2016 | C5
BIGGEST 1,000 STOCKS

Continued From Page C4 Net Net Net Net Net Net Net Net
Net Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
Stock Sym Close Chg
SnapOn SNA 161.10 -0.46 TurkcellIletismADR TKC 8.95 0.09 s XcelEnergy XEL 38.56 0.34 ADP ADP 82.97 -0.12 EndoInternational ENDP 56.57 1.10 KraftHeinz KHC 77.01 -1.05 NorthernTrust NTRS 61.25 -0.83 Stericycle SRCL 120.65 0.30
Procter&Gamble PG 81.12 -0.57 SOQUIMICH ADR SQM 16.21 -0.02 TurquoiseHillRscs TRQ 2.05 -0.01 Xerox XRX 9.43 -0.32 BaiduADR BIDU 161.10 -2.17 Equinix EQIX 311.44 0.87 LKQ LKQ 27.34 -0.06 NorwegianCruise NCLH 47.06 1.69 Symantec SYMC 19.75 -0.09
ProgressiveCorp PGR 30.48 0.12 s SolarWinds SWI 59.98 0.03 Twitter TWTR 17.91 1.11 Xylem Inc. XYL 35.62 -0.33 BedBath BBBY 43.66 0.49 EricssonADR ERIC 8.78 -0.12 LamResearch LRCX 72.62 0.83 NuanceComms NUAN 17.76 0.13 Synopsys SNPS 42.58 -0.32
ProgressWasteSol BIN 28.02 -0.15 SonyADR SNE 23.31 -0.57 TycoInternational TYC 34.08 -0.31 YPFADR YPF 16.43 -0.41 Biogen BIIB 273.45 0.39 ErieIndemnityClA ERIE 96.44 0.33 LamarAdvertisingA LAMR 56.21 0.10 NVIDIA NVDA 29.30 0.01 TDAmeritrade AMTD 27.53 0.12
Prologis PLD 39.47 ... Southern SO 49.90 0.98 TylerTechnologies TYL 158.26 1.20 YanzhouCoalADR YZC 3.91 -0.09 BioMarinPharm BMRN 75.65 1.63 Expedia EXPE 102.15 1.11 LibertyBroadbandA LBRDA 48.27 0.67 OReillyAuto ORLY 265.25 4.35 TFSFinancial TFSL 17.60 0.15
PrudentialFin PRU 69.57 -0.51 SoCopper SCCO 25.38 -0.54 s TysonFoodsClA TSN 54.31 0.95 YoukuTudouADR YOKU 27.27 0.04 BlackBerry BBRY 7.07 -0.05 ExpeditorsIntl EXPD 45.16 0.04 LibertyBroadbandC LBRDK 47.85 0.85 OldDominionFreight ODFL 56.67 1.84 T-MobileUS TMUS 40.59 0.44
PrudentialADR PUK 38.45 -0.89 SowestAir LUV 38.31 0.69 UBSGroup UBS 16.52 -0.12 YumBrands YUM 73.10 0.73 Broadcom AVGO 137.68 3.97 ExpressScriptsHldg ESRX 72.28 0.41 LibertyGlobalClA LBTYA 34.95 0.54 OpenText OTEX 48.97 0.11 TRowePrice TROW 70.16 -0.79
PublicServiceEnt PEG 41.38 0.08 s SovranSelfStorage SSS 112.88 0.20 UDR UDR 36.15 0.56 ZayoGroupHoldings ZAYO 25.49 0.47 CA CA 28.46 -0.27 F5Networks FFIV 94.01 0.23 LibertyGlobalClC LBTYK 33.99 0.68 Paccar PCAR 48.54 -0.53 TeslaMotors TSLA 196.94 5.74
s PublicStorage PSA 254.08 0.52 SpectraEnergy SE 26.99 -0.46 UGI UGI 34.11 0.11 ZimmerBiomet ZBH 99.03 -0.23 CBOE Holdings CBOE 66.14 -0.48 s FacebookClA FB 115.09 2.88 LibertyGlbLiLACAWi LILA 36.07 0.87 PacWestBancorp PACW 36.31 -0.40 TexasInstruments TXN 52.83 -0.10
PulteGroup PHM 16.51 -0.25 SpectraEnergyPtrs SEP 41.19 -0.72 UltraparPartADR UGP 14.74 -0.21 Zoetis ZTS 42.96 -0.09 CDKGlobal CDK 44.22 0.17 Fastenal FAST 40.44 -0.12 LibertyGlbLiLACClC LILAK 37.61 0.76 PaneraBreadClA PNRA 194.31 0.31 TractorSupply TSCO 86.72 -1.59
Qihoo360Technology QIHU 71.69 -0.02 SpectrumBrndsHldgs SPB 95.53 0.49 UnderArmour A UA 85.13 -0.30 CDW CDW 38.19 -0.26 FifthThirdBancorp FITB 15.75 -0.05 LibertyInteractQVC QVCA 25.89 -0.17 Paychex PAYX 48.35 0.49 TrimbleNavigation TRMB 19.28 -0.01
QuestDiag DGX 65.86 0.19 SpiritAeroSystemsA SPR 43.23 0.83 UnileverADR UN 44.49 0.08 NASDAQ CH Robinson CHRW 65.21 0.44 FirstSolar FSLR 69.13 0.47 LibertyVenturesA LVNTA 39.51 0.18 PayPalHoldings PYPL 37.08 0.94 TripAdvisor TRIP 67.19 0.43
QuintilesTransnat Q 60.53 -0.30 SpiritRealtyCap SRC 10.49 0.01 UnileverADR UL 44.42 0.15 AMCNetworks A AMCX 71.90 -0.89 CMEGroupClA CME 89.44 -0.41 Fiserv FISV 94.37 -0.19 LibertyMediaA LMCA 36.60 -0.02 People'sUnitedFin PBCT 14.32 -0.04 21stCenturyFoxClA FOXA 26.97 ...
RELXADR RENX 16.94 0.18 Sprint S 3.07 0.05 UnionPacific UNP 73.09 1.09 Ansys ANSS 88.24 0.05
CSX CSX 22.86 -0.16 FlextronInt FLEX 10.40 -0.08 LibertyMediaC LMCK 35.50 -0.09 PilgrimPride PPC 22.69 0.51 21stCenturyFoxClB FOX 27.11 0.01
RELXADR RELX 17.97 0.16 StJudeMedical STJ 53.30 0.44 UnitedContlHldgs UAL 48.86 0.58 ARMHoldingsADR ARMH 43.63 0.55 CadenceDesign CDNS 19.54 -0.02 Fortinet FTNT 28.39 0.25 LinearTechnology LLTC 42.56 -0.17 Premier PINC 32.07 0.13 UltaSalon ULTA 180.57 -0.60
RPM RPM 39.00 -0.25 StanCorpFinancial SFG 114.52 -0.14 UnitedMicroADR UMC 1.99 0.03 ARRISInternational ARRS 25.60 0.13 Carlyle CG 13.38 -0.30 FrontierComms FTR 4.58 0.03 LinnEnergy LINE 1.18 -0.05 PricelineGroup PCLN 1084.87 19.90 UltimateSoftware ULTI 178.78 3.15
RalphLaurenA RL 112.33 -0.17 StanleyBlDck SWK 94.23 -0.11 UtdParcel B UPS 94.08 0.88 ASMLHolding ASML 92.24 0.40 CaseysGenStores CASY 122.18 1.44 Garmin GRMN 35.09 -0.09 lululemonathletica LULU 60.82 Qiagen QGEN 22.54 -0.17 UnitedTherapeutics UTHR 125.61 2.43
-1.25
RangeResources RRC 28.26 -1.30 StarwoodHotels HOT 62.82 0.58 UnitedRentals URI 48.83 0.92 AcadiaHealthcare ACHC 61.87 0.84 Celgene CELG 100.80 0.48 t GileadSciences GILD 84.05 1.05 MarketAxess MKTX 115.76 -0.47
Qorvo QRVO 39.97 0.37 VeriSign VRSN 75.65 0.05
RayJamFnl RJF 44.25 0.44 StarwoodPrTr STWD 18.65 -0.39 US Bcp USB 39.80 -0.26 ActivisionBliz ATVI 34.67 -0.15 Cerner CERN 57.62 -0.39 Goodyear GT 28.96 0.55 Markit MRKT 28.83 0.47
Qualcomm QCOM 46.11 0.77 VeriskAnalytics VRSK 72.11 -0.89
Raytheon RTN 125.55 -2.69 StateSt STT 54.79 -0.94 US Steel X 7.26 0.26 AdobeSystems ADBE 89.61 0.48 CharterComms CHTR 175.75 4.39 Grifols ADR GRFS 14.58 0.06
MarriottInt A MAR 61.42 QunarCaymanIslADR QUNR 40.24 -3.84 VertxPharm VRTX 92.39 1.64
0.14
RealogyHoldings RLGY 33.30 0.50 StatoilADR STO 13.16 -0.44 UnitedTech UTX 87.56 -0.13 AkamaiTechnologies AKAM CheckPointSoftware CHKP 80.63 1.82 HDSupplyHoldings HDS 26.16 -0.11 RandgoldRscsADR GOLD 72.57 1.85 Viacom A VIA 49.01 0.47
45.30 -0.32 MarvellTch MRVL 8.93 0.08
s RealtyIncome O 56.65 0.86 Steris STE 69.83 0.59 UnitedHealthGroup UNH 115.89 0.73 t AlexionPharm ALXN CincinnatiFin CINF 57.80 0.17 Hasbro HAS 73.77 -0.51 RegenPharm REGN 418.27 -1.82 Viacom B VIAB 46.05 0.41
143.50 -2.43 Mattel MAT 26.76 -0.83 s RossStores ROST
RedHat RHT 70.44 0.39 STMicroelectronics STM 6.36 -0.16 UniversalHealthB UHS 115.07 2.43 Cintas CTAS 86.11 0.19 HenrySchein HSIC 153.82 2.38 56.76 0.50 VimpelComADR VIP 3.24 -0.05
AlignTechnology ALGN 67.55 1.41 CiscoSystems CSCO 23.48 HOLX 35.38 1.44 MaximIntProducts MXIM 33.50 0.10 RyanairHoldingsADR RYAAY 81.49 3.14
s RegencyCtrs REG 73.22 0.83 Stryker SYK 99.17 0.02 UnumGroup UNM 28.49 -0.15 -0.31 Hologic VodafoneGroupADR VOD 32.72 0.52
Alkermes ALKS 32.75 0.74 CitrixSystems CTXS 70.90 0.44 JBHunt JBHT 73.30 0.60 Medivation MDVN 33.16 0.46 SBACommunications SBAC 98.14 -1.14
RegionsFinancial RF 7.94 -0.18 t SumitomoMitsADR SMFG 6.08 -0.50 VEREIT VER 7.70 -0.01 MelcoCrownEntADR MPEL 14.84 -0.40 SEIInvestments SEIC 39.15 -0.09 WPPADR WPPGY 109.55 0.75
AlnylamPharm ALNY 69.75 0.81 CognizantTechSolns CTSH 62.33 -0.98 HuntingtonBcshs HBAN 8.64 0.06
ReinsuranceGrp RGA 83.40 -0.83 SunLifeFinancial SLF 28.35 -0.15 VF VFC 63.31 0.71 MercadoLibre MELI 99.00 0.76 SS&CTechs SSNC 64.38 0.09 WalgreensBootsAll WBA 80.07 0.35
AlphabetClA GOOGL 770.77 9.42 Comcast A CMCSA 55.81 0.10 IACInteractv IAC 51.95 0.01
RenaissanceRe RNR 115.05 2.40 SuncorEnergy SU 22.84 -0.71 VISAClA V 74.38 -0.11 MichaelsCos. MIK 22.36 0.56 SVBFinancialGroup SIVB 102.51 1.19 WesternDigital WDC 49.19 1.21
VailResorts MTN 124.52 AlphabetClC GOOG 752.00 9.05 CoStarGroup CSGP 177.26 1.89 IdexxLab IDXX 71.40 1.26
RepublicServices RSG 43.85 0.15 SunocoLogistics SXL 22.44 0.17 -0.48 MicrochipTech MCHP 44.43 -0.38 Sabre WholeFoods WFM 29.96 0.65
ValeADR VALE 2.37 Amazon.com AMZN 574.81-12.19 CostcoWholesale COST 151.25 0.13 IcahnEnterprises IEP 53.55 0.90 SABR 25.46 -0.15
ResMed RMD 57.23 0.53 SunTrustBanks STI 36.11 -0.47 -0.08 MicronTechnology MU 10.96 -0.07 SanDisk WillisTowersWatson WLTW 114.50 0.03
RestaurantBrands QSR 33.96 0.38 Amdocs DOX 55.33 0.59 Ctrip.comIntlADR CTRP 41.97 -0.71 Illumina ILMN 158.94 0.99 SNDK 70.65 -0.05
SynchronyFinancial SYF 28.47 0.05 ValeantPharmIntl VRX 95.65 5.43 Microsoft MSFT 54.71 WynnResorts WYNN 67.10 -0.24
s ReynoldsAmer RAI 49.95 Amerco UHAL 359.31 -7.34 DISHNetworkClA DISH 47.88 -0.39 Incyte INCY 72.58 2.02 -0.38 SeagateTechnology STX 30.41 1.36
... SyngentaADR SYT 73.98 0.10 ValeroEnergy VLO 68.70 0.83 Middleby MIDD 90.25 Xilinx XLNX 49.90 -0.37
AmericaMovilClAADR AMOV 14.06 0.06 Dentsply XRAY 60.03 1.14 Intel INTC 30.82 -0.20 -0.11 SeattleGenetics SGEN 32.83 -0.15
RioTinto ADR RIO 24.50 -0.15 s Sysco SYY 43.15 3.34 Valspar VAL 78.41 0.08 Yahoo YHOO 29.57 0.06
AmerAirlinesGrp AAL 39.38 0.39 Dexcom DXCM 72.03 0.75 InteractiveBrokers IBKR 32.60 0.33 MondelezIntlClA MDLZ 42.73 -0.37 ShireADR SHPG 169.32 1.02
RiteAid RAD 7.92 0.13 TEConnectivity TEL 57.21 0.05 Vantiv VNTV 46.70 -0.35 Yandex YNDX 13.60 0.18
MonsterBeverage MNST 137.43 2.40 SignatureBank SBNY 141.33 1.99
RobHalfIntl RHI 43.38 -0.39 TEGNA TGNA 24.24 0.23 VarianMed VAR 77.20 0.07 AmeriCapAg AGNC 16.90 -0.17 DiamondbackEnergy FANG 72.60 -2.95 Intuit INTU 96.37 0.86
ZionsBancorp ZION 22.50 -0.18
AMGN 152.75 0.02 0.05 IntuitiveSurgical ISRG 543.16 2.31 Mylan MYL 52.35 -0.34 SiliconwareADR SPIL 7.72 0.05
Rockwell ROK 94.47 -1.10 TELUS TU 27.96 0.23 Ventas VTR 55.48 0.16 Amgen DiscoveryCommsA DISCA 27.64
Zynga ZNGA 2.44 -0.02
NXP Semi NXPI 76.34 1.56 SiriusXMHoldings SIRI 3.72 0.02
RockwellCollins COL 81.55 0.67 TERNIUMADR TX 11.66 -0.22 s Verizon VZ 50.76 0.79 AmTrustFinSvcs AFSI 57.20 0.01 DiscoveryCommsC DISCK 27.39 0.18 IonisPharma IONS 39.28 0.35
AnalogDevices ADI 53.17 -0.69 DollarTree DLTR 81.98 0.66 JD.comADR JD 25.59 -0.44 Nasdaq NDAQ 61.74 -0.26 SironaDental SIRO 108.59 2.30
RogerComm B RCI 34.93 0.74 TJX TJX 72.21 0.97 VipshopHldgsADR VIPS 12.45 -0.39
AAPL 96.43 -0.91 DunkinBrands DNKN 40.46 1.10 s JackHenry JKHY 81.34 0.16 NetApp NTAP 21.86 -0.07 SkyworksSolutions SWKS 69.62 0.70 NYSE MKT
RollinsInc ROL 27.28 -0.27 TableauSoftware DATA 80.90 0.66 VMware VMW 45.49 -0.26 Apple
RoperTechnologies ROP 163.73-11.94 TaiwanSemiconADR TSM 22.46 VornadoRealtyTrust VNO 87.84 -0.62 AppliedMaterials AMAT 17.65 ... E Trade ETFC 23.67 0.11 JazzPharma JAZZ 127.24 -1.50 NeteaseADR NTES 156.51 0.37 Splunk SPLK 47.90 1.61 BritishAmTobADR BTI 111.42 0.41
0.11
RoyalBkCanada RY 51.16 -0.08 Target TGT 72.83 0.41 VoyaFinancial VOYA 30.13 -0.45 ArchCapitalGroup ACGL 68.00 0.45 EastWestBancorp EWBC 32.76 0.34 JetBlue JBLU 22.38 1.07 Netflix NFLX 94.09 2.25 Staples SPLS 8.82 -0.10 CheniereEnergy LNG 29.28 -0.77
t RoyalBkScotlandADR RBS 7.25 -0.12 TaroPharm TARO 146.40 0.60 VulcanMaterials VMC 87.07 -1.13 AthenaHealth ATHN 142.59 0.79 eBay EBAY 23.94 0.48 KLA Tencor KLAC 67.12 0.13 NewsCorpClA NWSA 12.70 -0.27 Starbucks SBUX 61.40 0.63 CheniereEngyPtnr CQP 22.93 -0.78
RoyalCaribbean RCL 84.52 2.56 TataMotorsADR TTM 25.50 0.52 WABCO Hldg WBC 90.69 1.04 Autodesk ADSK 47.65 0.83 ElectroArts EA 64.20 -0.34 KeurigGreenMtn GMCR 89.54 0.29 NewsCorpClB NWS 13.12 -0.23 SteelDynamics STLD 17.97 -0.38 ImpOil IMO 29.98 -0.63
RoyalDutchADRA RDS/A 43.38 -0.55 TecoEnergy TE 27.39 0.27 s WECEnergyGroup WEC 56.09 0.86
RoyalDutchADRB RDS/B 43.56 -0.57 TelecomItaliaADR TI/A 8.87 -0.19 W.P.Carey WPC 58.46 0.21
SAPADR SAP 79.70 -0.10 TelecomItaliaADR TI 10.76 -0.39 Wabtec WAB 63.90 -0.05
SINOPECShanghaiADR SHI 39.88 -0.26 Teleflex TFX 138.03 2.34 WalMart WMT 67.50 1.14
SKTelecomADR SKM 19.68 -0.03 TelefonicaBrasADR VIV 8.76 0.04 WasteConnections WCN 59.50 -0.47
SLGreenRealty SLG 92.97 -3.64 TelefonicaADR TEF 10.43 -0.06 WasteMgt WM 53.26 0.31
Salesforce.com CRM 68.44 0.38 s TelekmIndonesiaADR TLK 49.36 0.36 Waters WAT 120.36 -0.85
SanofiADR SNY 41.64 ... TenarisADR TS 20.58 -0.26 WeatherfordIntl WFT 6.33 -0.41
SasolADR SSL 25.82 -0.18 Tesoro TSO 87.76 0.51 WeingartenRealty WRI 34.84 -0.05
s SCANA SCG 64.17 1.22 TesoroLogistics TLLP 46.00 1.67 WellsFargo WFC 49.94 -0.29
Schlumberger SLB 71.46 -0.81 TevaPharmADR TEVA 62.70 1.22 Welltower HCN 62.83 0.61
SchwabC SCHW 25.28 -0.25 Textron TXT 33.19 -1.03 s WestarEnergy WR 44.28 0.72
ScrippsNetA SNI 62.10 1.13 ThermoFisherSci TMO 130.69 -1.37 WesternGasEquity WGP 26.01 -1.03
SealedAir SEE 41.29 0.76 ThomsonReuters TRI 37.49 0.09 WesternGasPartners WES 30.65 -2.04
SempraEnergy SRE 95.67 0.92 3M MMM 148.73 -2.27 WesternUnion WU 17.64 -0.20
ServiceCp SCI 23.99 -0.20 Tiffany TIF 64.73 0.89 WestlakeChemical WLK 45.23 -0.25
ServiceMasterGlb SERV 41.34 -0.87 TimeWarnerCable TWC 184.31 2.30 WestpacBankingADR WBK 21.97 0.02
ServiceNow NOW 61.96 -0.25 TimeWarner TWX 72.35 1.91 WestRock WRK 35.01 -0.27
ShawCom B SJR 17.27 -0.01 Toll Bros TOL 27.03 -0.59 Weyerhaeuser WY 26.09 0.48
SherwinWilliams SHW 254.85 -0.82 Torchmark TMK 54.33 -0.01 Whirlpool WHR 135.42 1.03
ShinhanFinADR SHG 32.23 0.29 TorontoDominionBk TD 37.52 -0.32 WhiteWaveFoods WWAV 37.69 -0.06
SignetJewelers SIG 120.62 4.62
SilverWheaton SLW 12.06 0.30
SimonPropertyGroup SPG 187.93 1.65
TotalADR TOT 43.65
TotalSystemSvcs TSS 40.03
ToyotaMotorADR TM 120.40
-0.67
-0.13
0.37
Williams WMB 19.51
WilliamsPartners WPZ 20.48
WilliamsSonoma WSM 51.66
0.21
-1.54
...
There will be more than nine
SixFlagsEnt SIX 51.08 0.81 TransCanada TRP 34.40 -0.16 WiproADR WIT 11.84 0.12
SkechersUSAClA SKX 28.79 0.60 TransdigmGrp TDG 228.69 3.96 WooriBankADR WF 22.08 0.07
SmithAO AOS 69.73 -0.12
Smith&NephewADR SNN 33.66 0.10
s Smucker SJM 129.13 0.81
TransUnion TRU 24.65
TravelersCos TRV 107.01
TreeHouseFoods THS 79.94
-0.09
-0.03
0.58
Workday WDAY 64.84
WyndhamWorldwide WYN 65.05
XL Group XL 36.35
1.83
0.15
0.09
billion people to feed by 2050.
New Highs and Lows | WSJ.com/stocks Over the next 35 years, it’s estimated that the world’s population
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock will swell by two billion. To keep up, global food production needs to
Market stocks that hit a new 52-week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session. increase by 70%. CME Group is helping farmers, ranchers, processors
Monday, February 1, 2016
52-Wk % 52-Wk % 52-Wk % and producers meet this need by giving them products designed
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
to manage the inherent risks associated with grain and livestock
EveriHoldings EVRI 2.73 5.3 ArrayBioPharma ARRY 2.94 -1.3
NYSE highs - 86 Gildan GIL 24.81 0.9 AscenaRetail ASNA 7.11 3.9 markets. This is how global agribusiness can sustain a hungry world.
AgreeRealty ADC 37.40 0.6 GlobalShipLeaseClA GSL 1.54 -5.7 AssemblyBioscience ASMB 4.83 2.9
Airgas ARG 140.27 0.2 Griffon GFF 14.38 -5.0 AstaFunding ASFI 7.27 -0.8 This is how the world advances.Learn more at cmegroup.com/food.
AlerepfB ALRpB 394.27 50.9 HHGregg HGG 1.72 -4.9 AtlassianClA TEAM 20.07 1.9
AllianceCal AKP 14.54 0.7 ICICIBankADR IBN 6.40 -3.5 aTyrPharma LIFE 4.65 3.8
Ameren AEE 45.81 1.6 Imation IMN 0.75 -1.1 AvalancheBiotechno AAVL 5.07 -13.0
AmStWtr AWR 46.73 1.6 LionsGateEnt LGF 25.25 -0.6 AxionPowerWt AXPWW 0.09 -64.3
AmericanWaterWorks AWK 65.63 0.2 MilacronHoldings MCRN 12.17 -3.5 AxionPwrIntl AXPW 0.31 -25.4
AquaAmerica WTR 31.98 1.1 MitsubishiUFJADR MTU 4.79 -4.5 AxsomeTherapeutics AXSM 7.22 -1.5
AtmosEnergy ATO 69.81 -0.9 MizuhoFinancialADR MFG 3.15 -3.0 BebeStores BEBE 0.29 -17.1
Avista AVA 37.87 1.7 Moog B MOG/B 43.10 -4.3 BoulevardAcqnIIWt BLVDW 0.30 -33.3
BB&TPfd.F BBTpF 25.30 -0.1 Moog A MOG/A 42.83 -7.1 CSICompressco CCLP 5.17 -12.5
BlackHillsUn BKHU 57.35 0.2 OFGBancorp OFG 4.56 -8.5 CaraTherapeutics CARA 8.30 -4.7
BlkRkMuniInco Tr BFK 15.09 0.7 PumaBiotechnology PBYI 40.44 2.7 CelldexTher CLDX 7.75 -1.3
BlkRkMunivestFdII MVT 16.70 -0.5 Quantum QTM 0.40 -8.4 Cepheid CPHD 27.74 -4.9
BrightHorizons BFAM 70.59 -0.8 RivernorthOppsFund RIV 18.73 -1.5 Changyou.comADR CYOU 16.77 -3.8
CMSEnergy CMS 39.44 0.8 RoseRockMidstream RRMS 10.15 -7.0 Chanticleer HOTR 0.68 -1.4
CampbellSoup CPB 57.08 0.8 RoyalBkScotlandADR RBS 7.04 -1.6 ChinaNaturalRscs CHNR 0.60 -1.6
Clorox CLX 132.19 2.1 SantanderCnsmrUSA SC 9.84 -3.3 CidaraTherapeutics CDTX 11.11 -2.4
ConEd ED 70.81 1.5 St.Joe JOE 14.27 -6.4 ClovisOncology CLVS 19.76 -0.1
ConstBrands B STZ/B 156.00 3.3 SumitomoMitsADR SMFG 5.97 -7.6 CogentixMedical CGNT 0.98 3.9
ConstBrands A STZ 155.68 1.2 Team TISI 23.17 -1.2 CoherusBioSciences CHRS 12.34 -0.8
CoreSiteRealty COR 66.08 1.8 Univar UNVR 12.38 -1.1 CombiMatrix CBMX 5.67 4.1
DeanFoods DF 20.01 -0.7 WPGLIMCHERPfdI WPGpI 24.50 -0.2 COPsyncWt COYNW 0.25 -39.2
DrPepperSnap DPS 95.87 1.8 YirendaiADR YRD 6.11 -9.8 Crossroads CRDS 0.26 -22.7
EduRltyTr EDR 39.62 0.3 CryoPort CYRX 1.53 2.9
ElPasoElectric EE 42.66 3.9 NYSE Arca highs - 4 DAVIDsTEA DTEA 8.88 -1.5
Fabrinet FN 25.34 0.7 DBCommodityDblShrt DEE 149.75 11.0 DelcathSystems DCTH 0.25 -1.7
FedRlty FRT 153.32 0.8 MktVctrCEFMuniIncm XMPT 27.69 0.6 Deswell DSWL 1.08 -1.7
FirstRepDepPfdF FRCpF 26.44 0.1 PowerShJapanCurr FXJP 26.13 2.9 DicernaPharma DRNA 6.01 -0.3
GeneralElcCapNts GEK 26.05 -0.1 SPDRNuveenCAMun CXA 24.74 -0.5 DipexiumPharma DPRX 7.58 -6.2
GoldmanSachsPfd.I GSpI 26.90 0.2 DonegalGroupB DGICB 13.61 -11.8
HealthSouthWt HLS/WS 2.25 8.7 NYSE Arca lows - 12 EVINELiveClA EVLV 1.02 -14.8
HormelFoods HRL 82.36 2.0 S&PVEQTOR VQT 129.64 ... EasterlyAcqnWt EACQW 0.32 12.1
ING GrpHybrd ISF 25.99 0.4 CSOPFTSEChinaA50 AFTY 11.33 -3.9 EdgeTherapeutics EDGE 9.26 -10.6
IndependenceHldg IHC 16.20 4.7 CSXLinksComm CSCR 12.38 -0.6 ElectrumSpecialWt ELECW 0.14 -12.8
Ingredion INGR 101.83 0.1 DBXInvGradeBd IGIH 22.78 0.3 ElevenBiotherap EBIO 0.31 1.4
ICE ICE 268.89 1.2 DX DLYBNDMKT1XBR SAGG 32.47 -0.6 EmmComm pfA EMMSP 1.49 -9.1
InvescoMuniOpp VMO 13.52 0.2 iPathPBNickel NINI 14.50 -1.6 Endologix ELGX 6.89 2.1
Kellogg K 74.14 0.2 iShFloatingRateBd FLOT 50.28 0.1 Enteromedics ETRM 0.82 2.4
LacledeGroup LG 64.33 -0.3 iShiBoxx$InvGrCpBd LQD 113.11 -0.3 EntmGmngAsia EGT 1.32 -1.8
MainStayMuniFd MMD 19.28 1.1 iSh2016AMTFrMuniBd IBME 26.40 -0.1 FairPointComms FRP 13.89 -7.0
McCormickVtg MKC/V 88.75 0.7 MVInvG FltRt FLTR 24.54 0.3 FateTherapeutics FATE 2.00 3.0
McDonalds MCD 124.83 0.7 PowerSharesChinaA CHNA 22.96 -2.0 FifthStreetAssetA FSAM 1.96 -4.8
McEwenMining MUX 1.35 8.6 ProShrUSUtil SDP 41.87 -3.2 FlexPharma FLKS 7.62 -6.3
NTTDoCoMoADR DCM 23.89 5.7 Freshpet FRPT 5.77 0.5
NtlRetailProp NNN 43.89 1.1 NYSE MKT highs - 7 GWPharmADR GWPH 48.27 0.9
NewJerseyResources NJR 35.69 0.6 Chase CCF 49.39 4.7 GalenaBiopharma GALE 0.64 -3.0
NextEraEnCapSerH NEEpH 26.09 0.3 EtnVncCA EVM 12.75 0.7 GenoceaBiosciences GNCA 2.97 2.6
NextEraEnergy NEE 113.44 1.1 EtnVncMuni II EIV 13.50 -0.7 GileadSciences GILD 82.28 1.3
NextEraEnergyUn NEEpQ 55.72 1.0 EtnVncNY II NYH 12.74 ... GlbBloodTherap GBT 16.99 1.6
NipponTelegraphADR NTT 44.41 3.5 GigOptix GIG 3.36 6.7 GuidanceSoftware GUID 4.45 -6.3
NiSource NI 21.32 1.4 GoldStandrdVntr GSV 0.75 7.2 HTGMolecularDiagn HTGM 2.45 ...
NowestNG NWN 52.49 0.5 NuveenNYMuni NYV 15.95 1.5 iPathLgBdBear DLBS 16.61 0.3
NuvAZ Prm NAZ 15.99 1.7 JunoTherapeutics JUNO 26.32 -1.3
NuveenQualMuniFd NQI 13.87 0.1 NYSE MKT lows - 9 Kforce KFRC 20.23 -8.3
NuvVA Prm NPV 14.40 0.8 BancorpOfNJ BKJ 10.20 0.1 KuraOncology KURA 4.52 -5.6
ONEGas OGS 57.70 0.6 ChinaPharma CPHI 0.13 -3.4 LPLFinHoldings LPLA 29.46 -1.4
PNMResources PNM 31.99 0.5 CorindusVascular CVRS 1.90 -0.5 Marketo MKTO 18.31 -1.3
PPL PPL 36.10 2.5 ElephantTalk ETAK 0.18 -13.0 MattressFirmHldg MFRM 35.12 0.7
PSBusParksDepPfdV PSBpV 25.35 1.0 MilestoneSci MLSS 1.70 -0.6 MicronetEnertecWt MICTW 0.18 -6.6
PhilipMorrisIntl PM 90.31 -0.7 SL Ind SLI 29.50 -1.7 MirnaTherapeutics MIRN 4.00 -10.9
PiedmontNaturalGas PNY 59.35 -0.2 SunlinkHealth SSY 0.66 -4.9 MokoSocialMediaADR MOKO 0.36 -13.7
PIMCO MuniII PML 13.05 0.6 TasmanMetals TAS 0.14 0.5 MoSys MOSY 0.80 ...
PIMCO NY PNF 12.42 1.5 UniqueFabricating UFAB 10.18 -3.0 MyoKardia MYOK 8.45 -0.9
PitneyBowesNt2043 PBIpB 27.41 0.6 NantKwest NK 9.65 -5.3
PublicStorage PSA 256.46 0.2 Nasdaq highs - 22 NatureSunshine NATR 8.10 -5.6
QTSRealtyTrustClA QTS 47.21 1.6 Affymtrix AFFX 14.05 -0.3 NewLinkGenetics NLNK 22.94 0.2
RealtyIncome O 57.20 1.5 ArtesianRscsClA ARTNA 31.31 2.6 NewStarFinancial NEWS 6.71 -9.4
RegencyCtrs REG 73.75 1.1 BonaFilmGroupADR BONA 13.55 1.0 Novocure NVCR 11.23 -9.5
RenaissanceRePfdE RNRpE 25.35 0.8 ConnecticutWater CTWS 43.94 0.3 Oncothyreon ONTY 1.27 -2.3
ReynoldsAmer RAI 50.42 ... CorVel CRVL 46.92 0.5 ParatekPharma PRTK 13.93 -1.2
SCANA SCG 64.65 1.9 DeltaNaturalGas DGAS 22.48 2.4 ParnellPharmaceutl PARN 2.52 -11.0
Smucker SJM 129.69 0.6 FacebookClA FB 115.72 2.6 PioneerPwrSols PPSI 2.78 -3.6
SolarWinds SWI 60.00 0.1 FrancescasHldgs FRAN 18.77 1.5 PowerSolutions PSIX 11.46 -0.9
SovranSelfStorage SSS 113.99 0.2 GuarFedBcsh GFED 15.89 1.3 ProNAiTherapeutics DNAI 8.00 -1.1
Sysco SYY 43.35 8.4 HutchTch HTCH 3.79 1.9 Proofpoint PFPT 47.11 -1.5
TAL EduADR XRS 49.65 3.5 II-VI IIVI 20.97 -1.4 PureCycle PCYO 3.65 -5.3
TelekmIndonesiaADR TLK 49.43 0.7 IntgtElecSvcs IESC 12.79 2.2 QIWIADR QIWI 12.54 -0.1
TysonFoodsClA TSN 54.59 1.8 JackHenry JKHY 82.16 0.2 RedHillBioADR RDHL 9.10 -6.8
UNITIL UTL 39.89 1.3 MFRI MFRI 8.37 15.9 ReprosThrptcs B Wt RPRXZ 0.06 -4.9
Verizon VZ 51.02 1.6 MGEEnergy MGEE 49.26 1.1 RockwellMedical RMTI 5.90 3.0
VoceraComms VCRA 14.77 1.7 MiddlesexWater MSEX 29.60 0.9 SFXEntertainment SFXE 0.05 -46.9
WECEnergyGroup WEC 56.53 1.6 RetailOppor ROIC 18.78 1.1 SorrentoTherap SRNE 4.98 2.7
WGLHoldings WGL 68.54 -0.4 RossStores ROST 57.19 0.9 Strattec STRT 46.51 -3.0
WestarEnergy WR 44.61 1.7 ShoreBancshares SHBI 11.50 0.7 TearLab TEAR 0.99 -23.5
XcelEnergy XEL 38.74 0.9 SparkEnergy SPKE 27.62 -0.6 TetraLogicPharm TLOG 0.19 -22.3
WintrustFinlPfd. WTFCM 27.15 0.7 TheStreet TST 1.21 -5.3
NYSE lows - 36 YorkWater YORW 26.77 -0.3 TillCapital TIL 3.35 -2.4
Aircastle AYR 16.81 -0.2 TranstnThera TTHI 0.80 -23.1
AspenAerogels ASPN 4.23 1.1 Nasdaq lows - 108 TurtleBeach HEAR 1.19 -7.5
AzureMidstreamPtrs AZUR 1.28 -12.7 Ability ABIL 7.50 -11.0 VOXXInternational VOXX 4.16 -0.5
BitautoHldgsADR BITA 18.13 -2.4 AduroBiotech ADRO 14.06 2.6 Vapor VPCO 0.01 -15.0
CHCGroup HELI 3.67 -8.3 AgiosPharm AGIO 38.85 0.2 VascularBiogenics VBLT 2.76 -9.1
CIT Grp CIT 28.89 1.7 AimmuneTherapeutic AIMT 12.43 4.5 VirtusInvtPartners VRTS 85.75 0.1
CarMax KMX 41.28 -0.6 AlexionPharm ALXN 139.34 -1.7 WaveSystemsClA WAVX 0.09 -88.5
ChinaLifeInsADR LFC 11.41 -4.5 AmericanPubEdu APEI 14.84 -3.9 WheelerREITPfdClB WHLRP 18.63 -0.8
DiscoverFinSvcs DFS 44.65 0.6 ArbutusBiopharma ABUS 2.98 -0.3 XunleiADR XNET 5.91 -2.8
Enersys ENS 46.94 -0.2 AriadPharm ARIA 4.72 -2.2 Zogenix ZGNX 8.90 -2.5
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During the trading day, 52-week highs and lows are updated hourly
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with easy access to charts and headlines.
C6 | Tuesday, February 2, 2016 THE WALL STREET JOURNAL.
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16449.18 t 17.12, or 0.10% Trailing P/E ratio * 16.97 16.60 1939.38 t 0.86, or 0.04% Trailing P/E ratio * 20.93 19.79 4620.37 s 6.41, or 0.14% Trailing P/E ratio * 21.15 23.75
High, low, open and close for each P/E estimate * 15.07 15.83 High, low, open and close for each P/E estimate * 15.89 16.98 High, low, open and close for each P/E estimate * 17.10 17.85
trading day of the past three months. Dividend yield 2.71 2.51 trading day of the past three months. Dividend yield 2.32 2.00 trading day of the past three months. Dividend yield 1.27 1.27
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15
Current divisor 0.14602128057775

18000 2100 5170
17500 2050 5020
17000 2000 4870
Session high
65-day moving average
DOWN UP 16500 1950 4720
t
Session open Close

65-day moving average
65-day moving average Close Open
t
16000 1900 4570
Session low
15500 1850 4420
Bars measure the point change from session's open

15000 1800 4270
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.
Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week Range % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 1,020,708,541 7,513,123
Industrial Average 16510.98 16299.47 16449.18 -17.12 -0.10 18312.39 15666.44 -5.3 -5.6 5.5 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 449,437,713 4,005,896
Transportation Avg 7000.81 6848.93 6968.83 62.07 0.90 9178.48 6625.53 -20.6 -7.2 6.0 Most-active issues in late trading Decl. volume* 557,404,182 3,329,013
Utility Average 619.00 609.42 616.43 5.08 0.83 641.40 541.97 -3.6 6.7 9.1 Volume After Hours Issues traded 3,224 370
Company Symbol (000) Last Net chg % chg High Low Advances 1,539 193
Total Stock Market 19956.24 19671.97 19875.81 -4.97 -0.03 22287.78 19071.84 -5.6 -5.8 8.0
SPDR S&P 500 SPY 13,610.4 193.20 -0.45 -0.23 207.75 183.79 Declines 1,592 158
Barron's 400 481.31 473.05 479.20 0.50 0.10 586.75 460.46 -9.9 -7.2 6.9
Mkt Vectors Gold Miners GDX 7,815.8 14.58 -0.07 -0.48 14.65 14.57 Unchanged 93 19
Nasdaq Stock Market VelocityShares 3x Lg UWTI 5,844.2 2.00 0.02 1.01 4.44 1.52 New highs 86 7
Nasdaq Composite 4636.93 4565.37 4620.37 6.41 0.14 5218.86 4468.17 -1.2 -7.7 13.3 iShares Russell 2000 ETF IWM 2,926.6 102.11 -0.38 -0.37 114.12 96.38 New lows 36 9
Nasdaq 100 4301.63 4238.20 7.39 4719.05 4016.32 -6.7 Closing tick 557 37
4286.56 0.17 2.3 15.8 iShares MSCI Emg Markets EEM 2,803.6 30.25 -0.03 -0.10 30.35 30.18
Closing Arms† 1.19 0.94
Weatherford International WFT 2,656.9 6.28 -0.05 -0.79 6.75 6.19
Standard & Poor's Block trades* 5,579 73
Juniper Networks JNPR 2,572.0 23.85 -0.48 -1.96 26.67 22.40
500 Index 1947.20 1920.30 1939.38 -0.86 -0.04 2130.82 1859.33 -4.0 -5.1 8.6 Nasdaq NYSE Arca
iSh Emg Mkt LC Bond LEMB 2,513.8 39.82 0.15 0.38 39.82 39.78
MidCap 400 1322.82 1304.41 1316.95 -0.79 -0.06 1549.44 1254.93 -9.0 -5.8 6.1 Total volume* 1,964,032,333 355,717,081
SmallCap 600 630.70 621.51 627.84 -2.11 -0.33 742.13 601.59 -7.4 -6.5 7.2 Percentage gainers… Adv. volume* 1,022,830,666 91,145,211
Decl. volume* 914,591,502 261,960,652
Other Indexes Triumph Group TGI 47.6 29.49 4.30 17.07 29.49 25.19
Issues traded 2,951 1,428
Russell 2000 1037.27 1020.59 1032.39 -2.99 -0.29 1295.80 994.87 -12.2 -9.1 4.3 PVH Corp. PVH 67.0 79.07 5.90 8.06 79.07 69.30
Advances 1,435 717
NYSE Composite 9651.20 9514.77 9616.69 -16.01 -0.17 11239.66 9156.84 -9.9 -5.2 2.4 Waddell Reed Financial WDR 34.5 27.99 1.49 5.62 27.99 25.95 Declines 1,436 686
Value Line 414.48 408.20 412.84 -1.14 -0.28 522.42 392.58 -16.1 -7.4 1.5 Mattel Inc MAT 245.5 28.19 1.43 5.34 28.93 26.58 Unchanged 80 25
Alphabet Cl C GOOG 1,296.9 790.90 38.90 5.17 823.74 739.45 New highs 22 4
NYSE Arca Biotech 2923.12 2833.94 2900.61 1.87 0.06 4431.87 2866.32 -21.2 -23.9 19.9
New lows 108 12
NYSE Arca Pharma 511.36 502.18 509.39 -0.72 -0.14 605.94 500.72 -6.4 -5.9 8.6 ...And losers
Closing tick 131 2
KBW Bank 63.69 62.78 63.25 -0.61 -0.96 80.41 60.10 -7.2 -13.5 4.9 Integrated Device Tech IDTI 272.9 21.35 -4.15 -16.27 25.58 21.17 Closing Arms† 0.89 3.00
PHLX§ Gold/Silver 47.67 46.46 47.36 1.40 3.05 81.03 38.84 -41.1 4.6 -32.2 PDL BioPharma PDLI 47.1 2.70 -0.45 -14.29 3.15 2.50 Block trades* 7,651 1,611
PHLX§ Oil Service 146.75 141.67 144.04 -4.01 -2.71 224.32 128.61 -26.1 -8.7 -16.9 Consol Energy CNX 39.5 7.48 -0.91 -10.85 8.49 6.05 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 619.46 607.70 616.60 2.92 0.48 746.08 559.59 -5.9 -7.1 13.6 Spark Therapeutics ONCE 5.3 26.49 -2.87 -9.78 29.36 26.49 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 23.66 19.61 -0.22 -1.09 40.74 11.95 9.7 issues with the volume of shares rising and falling. An
19.98 2.8 15.7 Rent-A-Center RCII 52.5 12.00 -1.28 -9.64 13.68 11.04 Arms of less than 1 indicates buying demand; above 1
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.
International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD Latest Session 52-Week Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2184.23 6.59 0.30 –6.5 Hansen Medical HNSN 3.20 1.05 48.84 12.30 1.28 -63.6 Mechel ADR MTL 1.50 -0.50 -25.00 3.76 1.23 -39.0
The Global Dow Euro 1887.98 –7.00 –0.37 –6.8 Alere ALR 54.11 16.91 45.46 55.99 31.96 32.8 VelocityShares 3x Lg Nat UGAZ 1.78 -0.45 -20.18 18.20 1.29 -87.0
DJ Global Index 289.49 0.87 0.30 –6.0 Questar STR 24.99 4.60 22.56 26.10 18.02 -4.0 Superior Drilling Prods SDPI 1.80 -0.45 -20.00 3.84 0.84 -45.5
World DJ Global ex U.S. 196.71 1.23 0.63 –6.4 Amaya AYA 12.93 2.37 22.44 31.44 9.67 -50.6 Neos Therapeutics NEOS 10.88 -2.70 -19.88 28.99 8.91 ...
VelocityShares 3x DGAZ 14.47 2.61 22.01 29.44 4.45 76.0 VelocityShares 3x Lg UWTI 1.98 -0.48 -19.51 43.20 1.41 -94.2
Americas DJ Americas 460.53 –0.20 –0.04 –5.5
0.41 –6.4 Mimecast MIME 9.21 1.62 21.34 11.99 6.01 ... TimkenSteel TMST 7.36 -1.65 -18.31 33.41 3.69 -73.1
Brazil Sao Paulo Bovespa 40570.04 164.05
–2.6
Seanergy Maritime Hldgs SHIP 4.70 0.80 20.51 7.20 1.10 13.5 Ultra Petroleum UPL 1.87 -0.39 -17.26 18.04 1.27 -85.9
Canada S&P/TSX Comp 12674.37 –147.76 –1.15
Closed VelocityShares 3x Inv DWTI 294.10 50.02 20.49 484.23 56.32 130.8 iPath Global Carbon GRN 6.34 -1.21 -16.02 13.75 6.05 -25.4
Mexico IPC All-Share 43630.77 … 1.5
0.04 Aquinox Pharmaceuticals AQXP 12.57 2.08 19.83 55.75 1.38 11.3 Differential Brands Group DFBG 6.74 -1.26 -15.75 17.10 2.42 -39.3
Chile Santiago IPSA 2957.21 1.04 0.5
Ampliphi Biosciences APHB 3.59 0.59 19.67 16.75 1.92 -60.1 DXN Dly NatGas 3X Bl GASL 3.30 -0.61 -15.60 247.00 1.53 -98.0
Europe Stoxx Europe 600 341.61 –0.66 –0.19 –6.6
Argos Therapeutics ARGS 3.23 0.53 19.63 9.64 1.61 -60.2 ProSh Ult Bloombg Nat Gas BOIL 15.00 -2.52 -14.38 61.16 12.42 -70.3
Euro zone Euro Stoxx 321.42 –1.52 –0.47 –6.9
VirtualScopics VSCP 3.78 0.56 17.39 6.65 1.73 33.4 Vanguard Natural Rscs VNR 2.27 -0.38 -14.34 19.50 1.29 -85.3
Belgium Bel-20 3488.53 2.31 0.07 –5.7
MoneyGram International MGI 6.18 0.88 16.60 11.00 4.99 -28.1 PS Ult Bloomberg Crude UCO 8.21 -1.25 -13.21 53.60 6.44 -80.6
France CAC 40 4392.33 –24.69 –0.56 –5.3 Internet Gold-Golden IGLD 11.63 1.64 16.42 12.30 3.61 173.6 Avalanche Biotechnologies AAVL 5.22 -0.78 -13.00 45.18 5.07 -86.1
Germany DAX 9757.88 –40.23 –0.41 –9.2 MFRI MFRI 7.42 1.02 15.94 8.37 4.48 32.3 Nokia ADR NOK 6.34 -0.86 -11.94 8.37 5.71 -16.6
Israel Tel Aviv 1470.56 –5.29 –0.36 –3.8
Italy FTSE MIB 18485.95 –171.34 –0.92 –13.7
Netherlands AEX 429.68 –1.60 –0.37 –2.7 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8788.50 –27.30 –0.31 –7.9 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Sweden SX All Share 466.52 –2.89 –0.62 –7.6
Switzerland Swiss Market 8310.99 –8.82 –0.11 –5.8 SPDR S&P 500 SPY 122,286 -11.7 193.65 -0.04 213.78 181.02 PwrShs Ex-Tr Tr Dyn Util PUI 3,178 23883 23.61 0.77 24.44 20.54
–2.9 Bank Of America BAC 104,449 8.7 13.96 -1.27 18.48 12.94 PwrShs Dyn Hlthcr Sector PTH 1,660 3862 43.78 ... 67.32 20.91
U.K. FTSE 100 6060.10 –23.69 –0.39
VelocityShares 3x Lg UWTI 103,597 94.1 1.98 -19.51 43.20 1.41 Malvern Bancorp MLVF 255 3664 16.73 -0.39 17.70 11.91
Asia-Pacific DJ Asia-Pacific TSM 1292.59 13.45 1.05 –7.0 Finl Select Sector SPDR XLF 67,787 34.7 21.63 -0.41 25.62 18.52 Alere ALR 31,696 3229 54.11 45.46 55.99 31.96
Australia S&P/ASX 200 5043.60 38.10 0.76 –4.8 iPath SP 500 VIX Sht Tm VXX 60,967 -15.9 23.84 -1.16 37.35 15.48 Victory CEMP US SmCp CSA 164 1932 30.54 0.59 35.20 28.71
China Shanghai Composite 2688.85 –48.75 –1.78 –24.0
Nokia ADR NOK 55,498 343.7 6.34 -11.94 8.37 5.71 First Tr Japan FJP 1,601 1649 45.60 1.12 54.38 40.82
Hong Kong Hang Seng 19595.50 –87.61 –0.45 –10.6
Twitter TWTR 49,775 140.7 17.91 6.61 53.49 15.48 Victory CEMP US SmaCp Hi CSB 138 1557 31.49 0.19 34.63 29.66
India S&P BSE Sensex 24824.83 –45.86 –0.18 –4.9
Freeport-McMoRan FCX 47,731 -3.3 4.74 3.04 23.97 3.52 Victory CEMP Intl Volatil CIL 123 1459 31.64 1.35 35.30 29.84
Japan Nikkei Stock Avg 17865.23 346.93 1.98 –6.1
Ascent Solar Tech ASTI 47,721 403.5 0.11 55.77 2.08 0.06 Victory CEMP US 500 Vol CFA 208 1435 33.96 0.33 37.26 31.75
Singapore Straits Times 2602.41 –26.70 –1.02 –9.7 Pfizer PFE 46,622 21.3 30.17 -1.05 36.46 28.47 PS Russell Top 200 Pure G PXLG 141 1384 31.43 1.09 35.56 26.37
South Korea Kospi 1924.82 12.76 0.67 –1.9
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Taiwan Weighted 8156.96 11.75 0.14 –2.2 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
30-year mortgage, Rate US$vs, US$vs,
A consumer rate against its Mon YTDchg Mon YTDchg
benchmark over the past year 5.00% 10% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg†: 3.68%
4.00 WSJ Dollar
s index Americas Thailand baht .02810 35.590 –1.2
First Cal 3.50% 5 Vietnam dong .00004487 22289 0.6
4.00% Kirkland, WA Argentina peso .0709 14.1020 9.0
t 206-963-4788 3.00 Europe
0 Brazil real .2523 3.9629 0.1
30-year fixed-rate Hills Bank and Trust Company 3.50% Canada dollar .7170 1.3948 0.8 Czech Rep. koruna .04030 24.817 –0.3
3.00 2.00
mortgage Hills, IA 800-445-5725 –5 Chile peso .001407 710.90 0.3 Denmark krone .1459 6.8539 –0.3
s s Colombia peso .0003005 3327.88 4.8 Euro area euro 1.0888 .9185 –0.2
t Pacific Finance Group, LLC 3.50% Monday 1.00
t
2.00 –10 Yen

One year ago Euro Ecuador US dollar 1 1 unch Hungary forint .003508 285.03 –1.9
t
10-year Treasury Bothell, WA 425-354-5602

0.00 Mexico peso .0548 18.2343 6.0 Iceland krona .007702 129.83 –0.3
note yield 1.00 Pinnacle Mortgage Solutions Inc 3.50% –15
Peru new sol .2869 3.485 2.1 Norway krone .1151 8.6887 –1.7
1 3 6 1 2 3 5 710 30 2015 ‘16
Henderson, NV 702-966-8216 Uruguay peso .03221 31.0500 3.8 Poland zloty .2476 4.0385 2.9
0.00 month(s) years Venezuela b. fuerte .158603 6.3051 unch Russia ruble .01293 77.310 7.5
FMAM J J A S ON D JF Kessler Mortgage, LLC. 3.63%
maturity Asia-Pacific Sweden krona .1173 8.5281 1.0
2015 2016 Columbia, KY 888-384-3006 Switzerland franc .9807 1.0197 1.8
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7113 1.4059 2.4
Turkey lira .3395 2.9456 1.0
China yuan .1520 6.5784 1.3
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0391 25.5735 6.6
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1286 7.7774 0.3
UK pound 1.4429 .6930 2.1
India rupee .01474 67.835 2.5
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000734 13628 –1.5 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008265 120.99 0.6 Bahrain dinar 2.6558 .3765 –0.2
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002727 366.71 8.3 Egypt pound .1277 7.8316 unch
Libor, 3-month 0.62 0.62 0.25 l 0.62 0.32
Macau pataca .1248 8.0146 0.1 Israel shekel .2528 3.9557 1.6
Money market, annual yield 0.27 0.27 0.24 l 0.42 -0.23 Treasury, Ryan ALM 1441.535 1.613 1.673 1.957 1.305 –0.609 2.674
Malaysia ringgit .2402 4.1637 –3.2 Kuwait dinar 3.2982 .3032 –0.1
Five-year CD, annual yield 1.29 1.33 1.29 l 1.53 -0.02 10-yr Treasury, Ryan ALM 1736.855 1.966 2.022 2.480 1.669 –2.569 3.009 New Zealand dollar .6547 1.5274 4.4 Oman sul rial 2.5953 .3853 0.1
30-year mortgage, fixed† 3.68 3.78 3.68 l 4.22 -0.07 DJ Corporate n.a. n.a. 3.413 3.462 2.633 n.a. n.a. Pakistan rupee .00954 104.805 –0.1 Qatar rial .2748 3.639 –0.1
15-year mortgage, fixed† 2.94 3.02 2.94 l 3.42 -0.14 Aggregate, Barclays Capital 1847.560 2.390 2.430 2.630 1.930 –0.382 2.098 Philippines peso .0210 47.654 1.7 Saudi Arabia riyal .2668 3.7488 –0.1
Jumbo mortgages, $417,000-plus† 4.36 4.37 4.00 l 4.97 0.12 Singapore dollar .7030 1.4225 0.3 South Africa rand .0629 15.9026 2.8
High Yield 100, Merrill Lynch 2345.402 7.688 8.241 8.696 5.016 –6.414 0.578 South Korea won .0008314 1202.79 2.3
Five-year adj mortgage (ARM)† 3.35 3.28 3.14 l 4.00 0.33 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1928.540 2.480 2.590 2.900 2.280 1.800 2.580 Sri Lanka rupee .0068985 144.96 0.5
New-car loan, 48-month 3.24 3.20 2.71 l 3.33 0.68 Taiwan dollar .02993 33.413 1.5 WSJ Dollar Index 91.30 –0.29–0.31 1.25
Muni Master, Merrill 504.758 1.584 1.609 2.099 1.482 2.375 2.934
HELOC, $30,000 5.01 4.98 4.24 l 5.01 0.40
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 668.142 6.855 6.997 7.128 5.679 0.119 0.285 Sources: Tullett Prebon, WSJ Market Data Group
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Monday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
DJ Commodity 441.46 -7.29 -1.62 584.70 420.23 -18.40 -2.72

ONLINE
WSJ
Reuters-Jefferies CRB 163.49 -3.27 -1.96 231.77 156.32 -25.84 -7.25
Crude oil, $ per barrel 31.62 -2.00 -5.95 61.43 26.55 -36.21 -14.63
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 2.152 -0.146 -6.35 3.02 1.76 -19.70 -7.92
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1127.90 11.50 1.03 1276.20 1050.80 -11.62 6.38
WSJMarkets.com
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | C7
COMMODITIES & CREDIT MARKETS

Futures Contracts | WSJ.com/commodities Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest
Agriculture Futures Canadian Dollar (CME)-CAD 100,000; $ per CAD

Metal & Petroleum Futures March .7149 .7190 .7111 .7177 .0040 154,067
Contract Open Contract Open Corn (CBT)-5,000 bu.; cents per bu.
March 371.00 371.75 367.75 371.25 –.75 603,521 June .7142 .7191 .7114 .7179 .0040 3,876
Open High hi lo Low Settle Chg interest Open High hilo Low Settle Chg interest
May 376.00 376.25 372.50 375.75 –1.00 251,657 British Pound (CME)-£62,500; $ per £
Copper-High (CMX)-25,000 lbs.; $ per lb. Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March 1.4240 1.4446 1.4229 1.4443 .0201 273,445
2.0300 2.0585 2.0270 2.0515 –0.0125 1,430
Oats (CBT)-5,000 bu.; cents per bu.
Feb March 33.83 34.18 31.29 31.62 –2.00 599,412 June 1.4263 1.4448 1.4236 1.4448 .0201 774
March 201.25 202.50 196.00 197.25 –3.50 5,914
March 2.0620 2.0660 2.0285 2.0555 –0.0115 122,574 April 35.46 35.81 33.03 33.36 –1.92 209,585 Swiss Franc (CME)-CHF 125,000; $ per CHF
May 209.00 209.00 204.25 206.00 –2.50 2,763
Gold (CMX)-100 troy oz.; $ per troy oz. May 36.92 37.27 34.61 34.93 –1.85 127,929 March .9780 .9863 .9771 .9825 .0051 58,256
Feb 1116.70 1130.00 s 1115.30 1127.90 11.50 4,194 Soybeans (CBT)-5,000 bu.; cents per bu. .9831 .9904 .9816 .9868 .0050 244
June 38.08 38.46 35.90 36.23 –1.77 175,243 June
April 1118.00 1130.20 s 1115.30 1128.00 11.60 261,834 March 883.00 883.25 876.00 880.75 –1.50 300,555
Dec 41.77 42.06 39.94 40.25 –1.50 182,478 Australian Dollar (CME)-AUD 100,000; $ per AUD
June 1116.20 1130.00 s 1116.20 1128.40 11.60 55,552 May 884.50 885.50 878.25 882.25 –2.25 146,661
Dec'17 44.96 45.33 43.54 43.79 –1.42 91,278 March .7053 .7108 .7029 .7085 .0032 123,719
Aug 1121.00 1130.10 s 1121.00 1128.90 11.60 10,566 Soybean Meal (CBT)-100 tons; $ per ton. June .7011 .7077 .7001 .7056 .0032 732
Dec 1119.50 1131.20 s 1119.40 1130.20 11.60 16,147 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. March 272.70 272.90 269.10 271.00 –1.40 167,719
March 1.0836 1.0865 1.0246 1.0365 –.0422 104,132 May 274.70 274.70 271.30 273.10 –1.30 85,797
Mexican Peso (CME)-MXN 500,000; $ per MXN
June'17 1128.60 1132.10 1126.40 1132.90 11.60 5,306 March .05502 .05506 .05415 .05464 –.00025 113,074
April 1.0880 1.1000 1.0405 1.0508 –.0424 55,774 Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Palladium (NYM) - 50 troy oz.; $ per troy oz. June .05456 .05466 .05382 .05429 –.00025 53,652
Feb 502.00 502.00 502.00 501.60 4.10 1 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. March 30.90 30.98 30.56 30.76 –.12 158,190
Euro (CME)-€125,000; $ per €
March 498.60 506.65 495.20 502.35 3.85 23,928 March 1.1240 1.1311 1.0806 1.0830 –.0493 120,414 May 31.09 31.20 30.77 30.96 –.13 96,824
March 1.0841 1.0925 1.0825 1.0904 .0065 398,989
June 500.20 506.80 498.00 502.85 3.85 1,476 April 1.3400 1.3472 1.3000 1.3026 –.0461 55,194 Rough Rice (CBT)-2,000 cwt.; $ per cwt. June 1.0868 1.0954 1.0857 1.0935 .0065 3,166
Sept 500.20 500.20 500.20 503.65 4.00 132 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. March 1137.00 1143.50 1086.50 1100.50 –34.50 9,116
Platinum (NYM)-50 troy oz.; $ per troy oz. March 2.213 2.228 2.127 2.152 –.146 276,450 May 1164.00 1169.50 1117.00 1128.50 –34.50 2,848
Index Futures
Feb 865.00 865.60 864.70 868.80 –3.50 4 April 2.259 2.279 2.200 2.226 –.106 127,974 Wheat (CBT)-5,000 bu.; cents per bu.
April 870.40 877.60 865.50 870.10 –4.20 60,541
Mini DJ Industrial Average (CBT)-$5 x index
May 2.301 2.320 2.253 2.280 –.088 107,292 March 476.25 477.00 471.25 475.25 –4.00 208,395 March 16367 16426 16209 16340 –16 62,224
Silver (CMX)-5,000 troy oz.; $ per troy oz. July 2.389 2.408 2.355 2.377 –.074 51,998 May 481.25 482.50 476.75 480.50 –4.50 76,836 June 16294 16338 16145 16259 –17 809
Feb 14.245 14.370 14.235 14.329 0.100 111 Sept 2.423 2.432 2.382 2.407 –.065 46,782 Wheat (KC)-5,000 bu.; cents per bu.
March 14.255 14.420 14.200 14.343 0.100 107,319 Oct 2.449 2.462 2.410 2.437 –.064 63,546
S&P 500 Index (CME)-$250 x index
March 469.00 470.75 463.00 466.75 –5.25 105,804 March 1931.50 1940.00 1912.80 1931.30 1.20 107,172
July 488.00 490.50 483.75 487.00 –5.25 49,782 June ... 1928.90 1904.90 1923.00 1.10 2,426
Wheat (MPLS)-5,000 bu.; cents per bu. Mini S&P 500 (CME)-$50 x index
Bonds | WSJ.com/bonds March
May
497.50 499.00
504.75 504.75
493.50 495.00 –5.00
499.00 500.75 –4.75
31,952
16,378
March
June
1929.75 1940.00
1922.25 1931.50
1912.50 1931.25
1904.25 1923.00
1.25 2,878,549
1.00 39,264
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index
Tracking Bond Benchmarks March
May
157.100 158.975
155.325 157.075
154.850 157.775
153.125 155.975
.525
.150
17,094
5,931
March 1312.40 1320.00 1299.90 1310.40 –4.40 102,666
Mini Nasdaq 100 (CME)-$20 x index
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week Cattle-Live (CME)-40,000 lbs.; cents per lb. March 4263.3 4309.3 4228.5 4291.5 28.5 272,813
highs and lows for different types of bonds Feb 135.800 136.225 134.300 135.675 .375 35,607 June 4265.0 4300.8 4226.8 4285.8 28.3 498
Total return Yield (%), 52-Week Range l Latest April 134.475 134.925 133.200 134.425 .425 115,985 Mini Russell 2000 (ICE-US)-$100 x index
close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High Hogs-Lean (CME)-40,000 lbs.; cents per lb. March 1030.50 1034.90 1016.30 1026.30 –5.10 415,758
Feb 66.100 66.100 65.025 65.350 –.450 25,465 June 1028.00 1028.00 s 1028.00 1021.30 –5.10 49
1847.56 1.2 Broad market Barclays Aggregate 2.390 1.930 l 2.630 April 70.875 71.125 s 69.825 70.700 … 74,742 Mini Russell 1000 (ICE-US)-$100 x index
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. March 1062.80 1070.60 1055.40 1066.80 1.60 7,522
2470.03 0.01 U.S. Corporate Barclays Capital 3.690 2.800 l 3.710 241.90 244.40 238.70 240.90 .50 3,991
March U.S. Dollar Index (ICE-US)-$1,000 x index
2424.87 0.3 Intermediate 3.090 2.230 l 3.120 May 239.30 241.40 237.30 238.70 –.60 1,251 March 99.70 99.75 98.95 99.03 –.62 73,306
3127.77 -0.7 Long term 5.120 4.040 l 5.120 Milk (CME)-200,000 lbs., cents per lb. June 99.80 99.80 99.07 99.13 –.61 2,214
Jan 13.74 13.74 13.73 13.73 … 3,200
522.41 0.6 Double-A-rated 2.600 1.990 l 2.700 Feb 13.89 13.97 13.87 13.88 –.01 4,971 Source: SIX Financial Information
608.05 -0.6 Triple-B-rated 4.410 3.290 l 4.410 Cocoa (ICE-US)-10 metric tons; $ per ton.
324.90 -1.8 High Yield Constrained Merrill Lynch 9.269 5.853 l 9.771
March
May
2,765
2,777
2,875
2,876
2,744
2,750
2,868
2,871
107
104
75,508
62,005
Dividend Changes
Coffee (ICE-US)-37,500 lbs.; cents per lb. Continued from Page C3
268.04 -4.0 Triple-C-rated 20.001 10.017 20.001
l
March 115.80 117.95 114.95 117.75 1.40 82,897 Amount Payable /
2345.40 -1.2 High Yield 100 7.688 5.016 l 8.696 May 117.90 120.00 117.10 119.85 1.35 48,902 Company Symbol Yld % New/Old Frq Record
299.12 -1.6 Global High Yield Constrained 8.796 5.894 l 9.295 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. SPDR Barclays Aggregate BNDS 2.6 .12262 M Feb09 /Feb03
March 13.21 13.40 t 12.73 12.83 –.31 293,072 SPDR Barclays Convertible CWB 29.3 .10656 M Feb09 /Feb03
260.29 -1.1 Europe High Yield Constrained 5.498 3.550 l 6.412 May 13.11 13.38 t 12.79 12.88 –.20 222,239 SPDR Barclays Hi Yield Bd JNK 6.9 .17493 M Feb09 /Feb03
1601.56 1.3 U.S Agency Barclays 1.410 1.110 l 1.680
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. SPDR Barclays Interm Trea ITE 1.2 .06684 M Feb09 /Feb03
March 25.25 25.25 t 25.25 25.25 –.05 2,411 SPDR Barclays Lg Trea TLO 2.5 .15538 M Feb09 /Feb03
1443.20 1.0 10-20 years 1.200 0.940 l 1.480 May 25.25 25.25 t 25.25 25.35 –.05 2,679 SPDR Barclays Sh Trm Trea SST 1.0 .0237 M Feb09 /Feb03
3120.47 3.8 20-plus years 3.010 2.490 l 3.370 Cotton (ICE-US)-50,000 lbs.; cents per lb. SPDR Bclys Sh Trm Hi Yd SJNK 6.1 .10848 M Feb09 /Feb03
March 60.85 62.00 60.85 61.79 .66 109,423 SPDR Blackstone Sr Loan SRLN 4.1 .14746 M Feb09 /Feb03
1928.54 1.1 Mortgage-Backed Barclays 2.480 2.280 l 2.900 May 61.51 62.39 61.41 62.20 .60 45,878 SPDR BofA ML CrsOvCp CJNK 5.3 .08972 M Feb09 /Feb03
1906.25 1.0 Ginnie Mae (GNMA) 2.390 2.170 l 2.860
Orange Juice (ICE-US)-15,000 lbs.; cents per lb. SPDR BofA ML EM Corp EMCD 5.0 .1144 M Feb09 /Feb03
March 132.40 135.30 131.95 134.20 1.80 7,898 SPDR Brclys Issuer Score CBND 3.2 .0824 M Feb09 /Feb03
1128.24 1.2 Fannie mae (FNMA) 2.500 2.320 l 2.910 May 134.90 135.35 132.25 134.70 2.15 3,232 SPDR Build Am Bond BABS 3.9 .19945 M Feb09 /Feb03
SPDR DoubleLine TR Tact TOTL 2.9 .1187 M Feb09 /Feb03
1736.26 1.2 Freddie Mac (FHLMC) 2.530 2.320 l 2.930 SPDR Interm Term Corp 2.7 .07646 Feb09 /Feb03
Interest Rate Futures ITR M
504.76 1.0 Muni Master Merrill Lynch 1.584 1.482 l 2.099 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% SPDR Inv Grade Float Rate FLRN 0.7 .02057 M Feb09 /Feb03
March 161-080 161-220 160-150 160-170 –16.0 532,929 SPDR Lg Term Corporate LWC 4.7 .14556 M Feb09 /Feb03
353.58 1.5 7-12 year 1.559 1.500 l 2.144 SPDR Mortgage Backed Bd MBG 3.1 .06367 M Feb09 /Feb03
June 159-290 160-060 159-050 159-060 –17.0 3,195
390.18 1.0 12-22 year 2.021 1.945 l 2.636 SPDR Nuv S&P Hi Yd Mun Bd HYMB 4.5 .21264 M Feb09 /Feb03
Treasury Notes (CBT)-$100,000; pts 32nds of 100% SPDR Nuveen CA Mun CXA 2.5 .04777 M Feb09 /Feb03
370.85 1.0 22-plus year 2.728 2.558 l 3.351 March 129-190 129-255 129-050 129-055 –13.0 2,910,237
SPDR Nuveen Mun Bd TFI 2.2 .04515 M Feb09 /Feb03
June 129-040 129-090 128-210 128-220 –13.0 52,539
SPDR Nuveen NY Mun INY 2.7 .04731 M Feb09 /Feb03
2241.18 0.2 Yankee Barclays 3.050 2.410 l 3.110 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% SPDR Nuveen Sh Term Mun SHM 0.9 .01789 M Feb09 /Feb03
March 120-215 120-247 120-127 120-130 –8.5 2,652,998 SPDR Shrt Term Corporate SCPB 1.5 .03946 M Feb09 /Feb03
531.97 2.0 Global Government J.P. Morgan 1.350 1.240 l 1.780 June 120-130 120-130 120-057 120-045 –8.5 34,951 SPDR SSgA Ultra Shrt ULST 0.4 .01684 M Feb09 /Feb03
762.54 0.9 Canada 1.550 1.380 l 1.970 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Vangrd Intermed-Trm Cp Bd VCIT 3.9 .209 M Feb05 /Feb03
March 109-097 109-102 109-070 109-075 –2.5 1,095,506 Vangrd Intrmd -Trm Gvt Bd VGIT 2.0 .075 M Feb05 /Feb03
363.79 1.7 EMU 1.026 0.724 l 1.609 June 109-060 109-075 109-042 109-042 –2.2 23,252 Vanguard Emg Mkts Govt Bd VWOB 6.0 .26 M Feb05 /Feb03
696.31 2.1 France 0.850 0.490 l 1.360 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Vanguard Intermed-Term Bd BIV 2.7 .1881 M Feb05 /Feb03
Feb 99.633 99.633 t 99.625 99.628 –.008 113,768 Vanguard Lg-Term Govt Bd VGLT 3.1 .144 M Feb05 /Feb03
506.32 2.4 Germany 0.440 0.160 l 1.040
April 99.585 99.595 99.570 99.580 –.010 145,182 Vanguard Long-Term Bond BLV 4.1 .30174 M Feb05 /Feb03
283.45 1.9 Japan 0.480 0.480 l 0.890 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Vanguard Long-Trm Crp Bd VCLT 5.3 .292 M Feb05 /Feb03
555.15 2.3 Netherlands 0.610 0.240 l 1.130 March 106.109 106.156 105.688 105.750 –.297 30,092 Vanguard MBS VMBS 2.3 .073 M Feb05 /Feb03
1 Month Libor (CME)-$3,000,000; pts of 100% Vanguard Short Tm Govt Bd VGSH 1.1 .026 M Feb05 /Feb03
851.32 3.2 U.K. 2.030 1.750 l 2.480 Feb 99.5700 99.5700 s t 99.5700 99.5700 –.0050 1,619 Vanguard Short-Term Bond BSV 1.4 .09414 M Feb05 /Feb03
668.14 -0.4 Emerging Markets ** 6.855 5.679 l 7.128 May 99.5050 99.5050 s 99.5050 99.5050 –.0175 279 Vanguard Shrt-Trm Crp Bnd VCSH 2.5 .111 M Feb05 /Feb03
Eurodollar (CME)-$1,000,000; pts of 100% Vanguard Tax-Exempt Bd VTEB 2.4 .065 M Feb05 /Feb03
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds Feb 99.3950 99.3975 99.3825 99.3825 –.0125 135,010 Vanguard Total Bond Mkt BND 2.6 .17446 M Feb05 /Feb03
March 99.3800 99.3850 99.3550 99.3650 –.0100 1,237,658 Vanguard Total Intl Bd BNDX 3.0 .056 M Feb05 /Feb03
** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan Voya Prime Rate Trust PPR 6.6 .0265 M Feb23 /Feb10
June 99.3250 99.3300 99.2950 99.3050 –.0200 1,304,751
Dec 99.1850 99.1950 99.1400 99.1500 –.0350 1,285,499 Wells Fargo Incm Opps Fd EAD 11.5 .068 M Mar01 /Feb16
Global Government Bonds: Mapping Yields Wells Fargo Multi-Sector
Wells Fargo Utilities Fd
ERC
ERH
10.5
7.6
.0967
.075
M
M
Mar01 /Feb16
Mar01 /Feb16
Currency Futures
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in Japanese Yen (CME)-¥12,500,000; $ per 100¥ Foreign
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session March .8243 .8294 .8237 .8261 –.0003 255,344 Novartis ADR NVS 3.5 2.76187 /Feb26
June .8275 .8316 .8262 .8284 –.0003 1,395 Southern Copper SCCO 0.6 .03 Q Mar01 /Feb16
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
0.750 U.S. 2 0.809 s l 0.778 1.060 0.453
2.250 10 1.965 s l 1.924 2.269 1.644 Cash Prices | WSJ.com/commodities Monday, February 1, 2016
5.500 Australia 2 1.893 t l 1.907 2.030 1.986 108.4 113.0 153.4 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
3.250 10 2.574 t l 2.590 2.825 2.454 60.9 66.7 81.0 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
4.250 France 2 -0.387 s l -0.395 -0.302 -0.093 -119.6 -117.3 -54.6
Monday Monday Monday
1.000 10 0.682 s l 0.646 0.994 0.544 -128.3 -127.7 -110.0
(U.S.$ equivalent) 14.3300 Meat-bonemeal,50% pro Mnpls-u,w n.a.
0.500 Germany 2 -0.458 s l -0.483 -0.339 -0.179 -126.8 -126.1 -63.1 Energy Coins,wholesale $1,000 face-a 12953 Oats,No.2 milling,Mnpls-u 2.5225
Propane,tet,Mont Belvieu-g 0.3456 Other metals Rice, 5% Broken White, Thailand-l,w 367.00
0.500 10 0.353 s l 0.327 0.632 0.270 -161.2 -159.6 -137.4 Butane,normal,Mont Belvieu-g 0.5264 Rice, Long Grain Milled, No. 2 AR-u,w 23.00
LBMA Platinum Price PM *866.0
4.500 Italy 2 0.003 s l -0.016 0.075 0.346 -80.6 -79.4 -10.7 NaturalGas,HenryHub-i 2.180 Platinum,Engelhard industrial 870.0 Sorghum,(Milo) No.2 Gulf-u 7.6563
NaturalGas,TranscoZone3-i 2.100 Platinum,Engelhard fabricated 970.0 SoybeanMeal,Cent IL,rail,ton48%-u 280.00
2.000 10 1.480 s l 1.420 1.596 1.579 -48.5 -50.3 -6.6 NaturalGas,TranscoZone6NY-i 2.090 Soybeans,No.1 yllw IL-bp,u 8.7350
Palladium,Engelhard industrial 506.0
0.100 Japan 2 -0.158 t l -0.075 -0.011 0.007 -96.8 -85.2 -44.6 NaturalGas,PanhandleEast-i 2.040 Palladium,Engelhard fabricated 606.0 Wheat,Spring14%-pro Mnpls-u 5.9000
NaturalGas,Opal-i 2.130 Aluminum, LME, $ per metric ton *1529.5 Wheat,No.2 soft red,St.Louis-bp,u 4.8400
0.300 10 0.064 t l 0.102 0.265 0.283 -190.2 -182.1 -136.2 NaturalGas,MarcellusNE PA-i 1.210 Wheat - Hard - KC (USDA) $ per bu-u 4.4675
Antimony-d 2.6000
0.500 Spain 2 -0.004 s l -0.009 0.006 0.380 -81.3 -78.6 -7.2 NaturalGas,HaynesvilleN.LA-i 2.090 Copper,Comex spot 2.0515 Wheat,No.1soft white,Portld,OR-u 5.3163
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.250 Lead,NA solder-d 106.074
2.150 10 1.574 s l 1.524 1.767 1.451 -39.1 -39.9 -19.3 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.700 Iron Ore, 62% Fe CFR China-s 42.5
Food
Beef,carcass equiv. index
1.000 U.K. 2 0.405 s l 0.319 0.639 0.351 -40.4 -45.9 -10.1 Shredded Scrap, US Midwest-s,w 187
Metals choice 1-3,600-900 lbs.-u 205.19
Stainless steel scrap,US-d 1560
2.000 10 1.625 s l 1.562 1.958 1.336 -34.0 -36.2 -30.8 Gold, per troy oz select 1-3,600-900 lbs.-u 199.90
Steel, HRC USA, FOB Midwest Mill-s 399 Broilers,dressed 'A'-u 1.1175
Engelhard industrial 1125.56 Tin,NA solder-d 919.076
Source: Tullett Prebon Broilers, National comp wghtd-u,w 0.8635
Engelhard fabricated 1209.98 Zinc,NA-d 81.255
Corporate Debt Handy & Harman base 1126.50
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
2.0975
145.00
Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in Handy & Harman fabricated 1250.41 Fibers and Textiles Cheddar cheese,blk,Chicago 146.00
LBMA Gold Price AM *1112.90 Burlap,10-oz,40-inch NY yd-n,w 0.5400
that same company’s share price. Here’s a look at both for two companies in the news. Milk,Nonfat dry,Chicago lb. 71
LBMA Gold Price PM *1111.80 Cotton,1 1/16 std lw-mdMphs-u 0.6204 Cocoa,Ivory Coast-w 3067
Krugerrand,wholesale-e 1173.02
Investment-grade spreads that tightened the most… Maple Leaf-e 1184.30
Cotlook 'A' Index-t *68.20 Coffee,Brazilian,Comp 1.2107
Spread*, in basis points Stock Performance Hides,hvy native steers piece fob-u 72.000 Coffee,Colombian, NY 1.3439
American Eagle-e 1184.30 Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 1.6150
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Mexican peso-e 1367.91 Flour,hard winter KC 13.25
Teck Resources TCKBCN 4.750 Jan. 15, ’22 1535 –144 1781 ... ... Austria crown-e 1108.57 Grains and Feeds Hams,17-20 lbs,Mid-US fob-u 0.64
Austria phil-e 1184.30 Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 61.69
Freeport–McMoRan Oil & Gas FCX 6.500 Nov. 15, ’20 2248 –86 2220 … …
Silver, troy oz. Bran,wheat middlings, KC-u 108 Pork bellies,12-14 lb MidUS-u n.a.
salesforce.com CRM 0.250 April 1, ’18 715 –51 732 68.44 0.56 Engelhard industrial 14.3000 Corn,No. 2 yellow,Cent IL-bp,u 3.6600 Pork loins,13-19 lb MidUS-u 1.0823
ConocoPhillips COP 3.350 Nov. 15, ’24 315 –35 355 38.60 –1.23 Engelhard fabricated 17.1600 Corn gluten feed,Midwest-u,w 105.9 Steers,Tex.-Okla. Choice-u 138.00
Barrick North America Finance 5.700 May 30, ’41 –18 610 ... Handy & Harman base 14.3350 Corn gluten meal,Midwest-u,w 460.3 Steers,feeder,Okla. City-u,w 180.67
ABXCN 612 ...
Handy & Harman fabricated 17.9190 Cottonseed meal-u,w 243
CME CME 3.000 Sept. 15, ’22 108 –18 n.a. 89.44 –0.46 LBMA spot price £10.0385 Hominy feed,Cent IL-u,w 95 Fats and Oils
Perrigo PRGO 2.300 Nov. 8, ’18 190 –18 n.a. 143.70 –0.61 Corn oil,crude wet/dry mill-u 40.0000
Toyota Motor Credit TOYOTA 2.800 July 13, ’22 119 –15 105 ... ... Grease,choice white,Chicago-u 0.2300
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; D=Ryan's Notes;
E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; Lard,Chicago-u n.a.
…And spreads that widened the most n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Soybean oil,crude;Centl IL-u 0.2964
Z=not quoted. *Data as of 1/29. Tallow,bleach;Chicago-u 0.2450
Devon Energy DVN 2.250 Dec. 15, ’18 766 81 588 26.06 –6.59 Source: WSJ Market Data Group Tallow,edible,Chicago-u n.a.
Xerox XRX 3.800 May 15, ’24 394 70 n.a. 9.43 –3.28
JPMorgan Chase JPM 7.900 April 30, ’49 475 63 436 58.86 –1.08
Bhp Billiton Finance USA BHP 6.250 Oct. 19, ’75 515 54 553 … … Exchange-Traded Portfolios | WSJ.com/ETFresearch
Ensco ESV 5.200 March 15, ’25 1098 37 1016 9.39 –3.99 Largest 100 exchange-traded funds, latest session Closing Chg YTD Closing Chg YTD
SESI 6.375 May 1, ’19 35 1515 9.55 ETF Symbol Price (%) (%) ETF Symbol Price (%) (%)
SPN 1716 –7.37 Monday, February 1, 2016
Teck Resources TCKBCN 6.250 July 15, ’41 1152 32 1206 ... ... iSharesMSCIEAFEETF EFA 55.42 –0.11 –5.6 SchwUS BrdMkt SCHB 46.25 0.02 –5.7
Closing Chg YTD
ETF Symbol Price (%) (%) iShMSCIEmgMarkets EEM 30.28 –0.95 –5.9 SchwUS LrgCap SCHX 45.97 0.02 –5.4
Suncor Energy SUCN 6.100 June 1, ’18 358 30 310 ... ... EZU 33.12 DIA 164.34 –0.02 –5.5
iShMSCIEurozoneETF –0.24 –5.5 SPDR DJIA Tr
AlerianMLPETF AMLP 10.21 –1.83–15.3 GLD 108.05
iShMSCIGermanyETF EWG 24.31 –0.08 –7.2 SPDR GldTr 1.03 6.5
High-yield issues with the biggest price increases… CnsmrDiscSelSector XLY 74.56 0.61 –4.6 iShMSCIJapanETF EWJ 11.43 –0.61 –5.7 SPDR S&PMdCpTr MDY 239.61 –0.15 –5.7
Bond Price as % of face value Stock Perfomance CnsStapleSelSector XLP 50.93 0.33 0.9 SPDR S&P 500 SPY 193.65 –0.04 –5.0
iShMSCIUSAMinVol USMV 41.39 0.36 –1.0
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg DBGoldDoubleLgETN DGP 20.54 2.24 13.2 SPDR S&P Div SDY 72.48 0.43 –1.5
iShNasdaqBiotech IBB 268.53 0.55–20.6
DBGoldDoubleShrt DZZ 7.76 –2.14–12.5 TechSelectSector XLK 41.39 0.36 –3.4
iShNatlAMTFrMuniBd MUB 111.08 –0.22 0.3
Constellium NV* CSTM 8.000 Jan. 15, ’23 88.500 2.50 83.500 5.88 –6.07 DeutscheXMSCIEAFE DBEF 25.90 –0.65 –4.6 UtilitiesSelSector XLU 45.85 0.95 5.9
iShRussell1000Gwth IWF 94.19 0.38 –5.3
United Rentals URI 4.625 July 15, ’23 99.595 2.22 97.500 48.83 1.92 EnSelectSectorSPDR XLE 57.23 –1.67 –5.1 iShRussell1000ETF IWB 107.18 0.03 –5.4 VangdInfoTch VGT 102.18 0.25 –5.6
SandRidge Energy 7.500 March 15, ’21 3.125 2.13 0.500 ... ... FinSelSectorSPDR XLF 21.63 –0.41 –9.2 IWD 92.43 VangdHlthCr VHT 120.85 0.28 –9.1
SD iShRussell1000Val –0.28 –5.5
FTDorseyWrightFoc5 FV 20.84 0.97–11.3 iShRussell2000Gwth IWO 124.43 –0.07–10.7 VangdSmCapValue VBR 92.33 –0.16 –6.5
American Gilsonite AMEGIL 11.500 Sept. 1, ’17 53.500 2.00 n.a. ... ... FstTrDJIntrnt FDN 66.85 1.18–10.4 IWM 102.49 VangdDivApp VIG 75.96 –0.03 –2.3
iShRussell2000ETF –0.46 –9.0
Embarq EQ 7.995 June 1, ’36 100.740 1.71 n.a. ... ... GuggenheimSP500EqW RSP 72.35 –0.04 –5.6 VanguardFTSEDevMk VEA 34.62 –0.20 –5.7
iShRussell2000Val IWN 85.38 –0.63 –7.1
HealthCareSelSect XLV 66.57 0.15 –7.6 VanguardFTSEEmgMk VWO 30.52 –1.01 –6.7
BioMarin Pharmaceutical BMRN 0.750 Oct. 15, ’18 109.250 1.63 115.785 75.65 2.20 iShRussell3000ETF IWV 113.44 0.01 –5.7
IndSelSectorSPDR XLI 49.87 –0.24 –5.9 VanguardFTSEEurope VGK 47.07 –0.08 –5.6
Freeport–McMoRan FCX 3.550 March 1, ’22 43.250 1.50 n.a. 4.74 3.04 iShRussellMid-Cap IWR 150.12 0.29 –6.3
iShIntermCredBd CIU 107.41 –0.20 0.1 VangdAllWldxUS VEU 40.88 –0.24 –5.8
iShRussellMCValue IWS 64.84 –0.09 –5.6
P.F. Chang's China Bistro PFCB 10.250 June 30, ’20 82.000 1.50 76.000 ... ... iSh1-3YCreditBond CSJ 104.63 –0.04 0.0 OEF 86.83
VangdGrowth VUG 100.24 0.24 –5.8
iSharesS&P100ETF –0.03 –4.8 VYM 64.71
iSharesTIPSBondETF TIP 111.20 –0.18 1.4 VangdHiDivYld –0.25 –3.1
iShS&PMC400Growth IJK 151.96 0.20 –5.6
…And with the biggest price decreases iSh3-7YTreasuryBd IEI 124.87 –0.18 1.8 iShS&P500Growth IVW 110.05 0.22 –5.0
VngdInter-Term BIV 84.16 –0.27 1.3
VangIntrCorpBd VCIT 84.02 –0.31 –0.1
iShCoreMSCIEAFEETF IEFA 51.25 –0.06 –5.8 iShS&P500ValueETF IVE 84.03 –0.14 –5.1
SUPERVALU SVU 6.750 June 1, ’21 82.500 –3.82 84.250 4.57 0.44 VangdLgCap VV 88.49 0.01 –5.4
iShCoreMSCIEmgMk IEMG 37.02 –0.86 –6.0 iSharesUSPreferred PFF 38.42 0.34 –1.1
Ipayment IPMT 9.500 Dec. 15, ’19 98.750 –2.75 n.a. ... ... VangdMdCap VO 111.36 0.35 –7.3
iShCoreS&P500ETF IVV 194.60 –0.01 –5.0 iSh1-3YTreasuryBd SHY 84.82 –0.05 0.5 VangdReit VNQ 77.12 0.17 –3.3
Ngpl Pipeco NGPLCO 9.625 June 1, ’19 93.000 –2.50 91.500 ... ... iShCoreS&PMdCp IJH 131.41 –0.09 –5.7 iSh7-10YTreasuryBd IEF 108.70 –0.23 2.9 VOO 177.59
VanguardS&P500 –0.09 –5.0
Energy XXI Gulf Coast EXXI 7.500 Dec. 15, ’21 3.830 –2.42 n.a. 0.79 –8.59 iShCoreS&PSmCpETF IJR 102.98 –0.34 –6.5 iSh20+YTreasuryBd TLT 126.67 –0.30 5.1 VangdShrtTrm BSV 80.04 –0.07 0.6
iShCoreUSAggBd AGG 108.99 –0.12 0.9 iShChinaLarge-Cap FXI 30.53 –2.15–13.5 VCSH 78.95
Cliffs Natural Resources CLF 6.250 Oct. 1, ’40 13.250 –2.25 n.a. 1.61 ... VangShrtCorpBd –0.11 –0.1
iShSelectDividend DVY 74.64 0.24 –0.7 iShRussellMCGrowth IWP 85.39 0.42 –7.1 VB 102.20
VangdSmCap –0.09 –7.6
Energy Transfer Equity ETE 5.500 June 1, ’27 69.000 –2.00 65.500 8.66 –0.23 iSharesGold IAU 10.91 1.21 6.6 MktVectorsOilSvcs OIH 23.70 –2.39–10.4 VangdTtlBndMkt BND 81.39 –0.20 0.8
Whiting Petroleum WLL 5.750 March 15, ’21 61.750 –2.00 58.083 6.66 –9.39 iShiBoxx$InvGrCpBd LQD 113.45 –0.32 –0.5 MktVectorsRetail RTH 73.83 0.53 –5.0 VanguardTtlIntlStk VXUS 42.47 –0.42 –5.9
iShiBoxx$HYCpBd HYG 78.43 –0.58 –2.7 MktVectorsSemi SMH 49.94 0.44 –6.3 VangdTtlStock VTI 98.35 0.02 –5.7
Cgg S.A. CGGFP 6.500 June 1, ’21 36.500 –1.89 37.250 ... ...
iSharesJPMUSDEmgBd EMB 104.88 –0.49 –0.9 PwrShrs QQQ QQQ 104.41 0.27 –6.7 VangdTotlWrld VT 54.31 0.13 –5.7
*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. iShMBSETF MBB 108.92 –0.08 1.1 PS SP500LoVoltlPrt SPLV 37.91 0.24 –1.7 VangdValue VTV 77.51 –0.17 –4.9
Note: Data are for the most active issue of bonds with maturities of two years or more iShMSCIACWIETF ACWI 52.76 –0.19 –5.5 SPDRBarclaysHiYdBd JNK 32.82 –0.64 –3.2 WisdomTreeEurope HEDJ 51.59 –0.77 –4.1
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group iSharesMSCIEAFESC SCZ 46.96 0.28 –6.0 SchwIntlEqty SCHF 26.01 –0.23 –5.6 WisdomTreeJapanHdg DXJ 47.33 –0.48 –5.5
C8 | Tuesday, February 2, 2016 THE WALL STREET JOURNAL.
Email: [email protected]
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Abbott Deal
For Alere
What Google’s New View Shows OVERHEARD
Rarely has losing $3.5 bil- revenue last year, compared Warren Buffett is the kind
Click Rate
Passes Test lion felt so good.
Google’s parent company
Alphabet lost that amount
Forward price/earnings multiples
with 32% for the combined
Alphabet business. The ad-
vertising business also is
of driver who keeps an eye
on the price at the gas sta-
tion, not just his fuel gauge,
Alphabet Nasdaq Composite
Abbott Laboratories an- last year in its “other bets” growing at a healthy clip, de- when deciding whether to
nounced Monday that it is segment. Paradoxically, the 24 times spite its heft. Revenue ex- top up the tank.
buying Alere, a specialist in company’s market value rose cluding traffic acquisition Perhaps not this time. Mr.
point-of-care diagnostic about 10 times that amount 22 costs in core Google rose 15% Buffett had a stake in refiner
tests, for $5.8 billion, exclud- after Monday’s closing bell last year to $60.2 billion. Phillips 66 dating back to a
ing debt. Bringing Alere into when Alphabet filed its Still, it isn’t cheap being rare “mistake,” a bet on for-
20
the fold allows Abbott to fourth-quarter earnings re- Google. Capital expenditures mer parent ConocoPhillips.
bulk up its own diagnostics sults. That report beat Wall for the fourth quarter to- But he mitigated it by hang-
business, which accounted Street’s estimates and broke 18 taled $2.1 billion, their lowing onto the right piece, a
for more than one-fifth of out new details that were est level in more than two spinoff, and swapping about
last year’s revenue. flattering to the company’s 16 years. But Ms. Porat said on 17.4 million appreciated
This was something of a core advertising business, Monday’s earnings call that shares for a business he
surprise: Just last week, Ab- once the costs of supporting 2015 ’16 spending is expected to in- folded into Berkshire Hatha-
bott’s chief executive sug- its many other ventures had Source: FactSet; Photo: Frank May/DPA/Zuma crease this year from the way’s Lubrizol in 2014.
gested health-care valuations been broken out. THE WALL STREET JOURNAL. $9.9 billion reported for Now he has bought into
are frothy. And the deal Alphabet stock is now up 2015. And while the hiring Phillips 66 again in its own
comes at a 51% premium to more than 50% since last ers’ many moonshots. generating activity at pace slowed a bit from the right, divulging last week that
Friday’s closing price. summer. Some of that is due In the fourth quarter, op- Google. third quarter, more than he had upped his stake to
Despite that, Alere can to the promise of greater fi- erating income jumped 22% The results also confirmed 1,800 workers were still over 69 million shares worth
fairly be described as a value nancial discipline and trans- year over year to $5.4 bil- something that long has added to the company’s rolls $5.5 billion. The stock has
purchase. Like most health- parency that came with the lion, while revenue excluding been suspected—that the in the December period. held up well relative to peers
care stocks, its shares have hiring of Ruth Porat as CFO. traffic-acquisition costs rose core Google business is more Now that investors have a so maybe it is high-octane
fallen sharply from last sum- But a big part stems from 19%, beating Wall Street’s es- profitable when it isn’t sad- clearer view of the core busi- quality rather than a bargain
mer. Even with the premium, improving growth metrics in timates. The company re- dled with the costs of the ness’s strength, Google will that made him return.
Abbott is paying slightly the core Google advertising ported growth of 31% in paid company’s many other proj- have to keep expense disci- i i i
more than 22 times forward business. And this is what clicks, its best growth in two ects like self-driving cars. pline in focus. So far, that Passive investing is be-
earnings—not excessive. produces the excess cash years. Paid clicks are the Core Google had operating message is clicking. coming safer in Hong Kong.
And the point-of-care necessary to fund its found- main measure of revenue- margins of 39% against net —Dan Gallagher Index maker MSCI will ex-
business within Abbott’s di- clude from its indexes stocks
agnostics portfolio seems that Hong Kong’s securities
like a worthy place to invest.
Sales grew 10% in 2015 from
a year earlier, while sales fell
Question Marks Over Quasi-Sovereign Bonds regulator has given so-called
concentration warnings.
These alert investors to com-
in the core laboratory and In emerging markets, higher than foreseen, and centage point since Septem- backed companies’ missing panies with few shareholders
molecular businesses after quasi-sovereigns have looked massive capital spending ber. Until recently, yields on interest payments in times owning most shares. It be-
adjusting for foreign-ex- a bit too sovereign recently. outlays are being reined in. bonds issued by Mexico’s Pe- of extreme stress aren’t hard came a concern last year
change losses. The deal’s ul- A more realistic assessment The growing recognition mex have been bound within to find. Consider Dubai when leading index providers
timate success will hinge on of risk is in motion. of the risk is reflected in the a tight range of yields on World, Vietnamese ship- inducted shares of sister
attaining Alere’s forecast Stripped of government- widening spread between Mexico’s government debt. builder Vinashin or Ukraine’s companies Goldin Properties
growth rate, as well as affiliate halos, bonds of com- yields on some quasi-sover- But stresses are starting OAO Naftogaz. Quasi-sover- and Goldin Financial into
reaching annual revenue and panies with implicit or ex- eign bonds and benchmark to appear. Credit default eigns were forced to restruc- their benchmarks.
cost synergy targets of $500 plicit state backing suddenly government bonds—for swaps, often a leading indi- ture billions of dollars of These were some of Hong
million. And since Abbott are being viewed with new Petróleo Brasileiro, Brazil’s cator of credit quality, on debt during the financial cri- Kong’s highest-flying stocks
has chosen to finance the eyes. That reflects a potent scandal-plagued oil company, Malaysian and Mexican gov- sis. As investors measure of 2015, yet many suspected
transaction with debt, the mixture of risks they carry: for example, to five percent- ernment debt have soared. them on a fair-value basis, concentrated holdings made
deal is immediately accretive ballooning leverage, falling age points from one. Else- As emerging-market govern- rather than simply against the shares vulnerable to ma-
to Abbott’s earnings per commodity prices and falter- where, quasi bonds are just ments’ fiscal balances deteri- the sovereign, spreads nipulation. FTSE dropped
share. Given Abbott’s A-rated ing economies. starting to detether from orate, the assumption they should continue to widen both Goldins in November.
balance sheet, the company This debt—mostly of com- their sovereigns. Malaysian will make good on the quasi- Credit investors are neck- Now, MSCI index funds will
still is able to pursue other modity producers—has been state oil producer Petronas’s sovereign debt could wobble. deep in these bonds—they sell out of Goldin Properties,
opportunities. seen as a safe play on the 10-year bonds trade at Bonds without explicit guar- represent over one-third of which it had so far main-
As far as deals go, the ac- governments themselves, around 4.6%, implying a antees are weakest, but am- the emerging-markets credit tained in its China index.
quisition of Alere isn’t espe- giving investors more yield yield spread of 0.7 percent- biguity about state backstops market according to Bar- The Goldins both fell over
cially risky. That is a good than government bonds for age point over comparable could put governments on clays. Viewing them for what 10% Monday. At least the in-
formula in a more subdued just a little more risk. Now it government debt, just the hook, affecting both sov- they are really worth could dex makers have reaffirmed
market environment. is looking like a high-stakes slightly wider than the ereign and quasi-sovereign be a painful adjustment. the laws of financial gravity.
—Charley Grant gamble: Debt has risen far monthly average of 0.5 per- yields. Cases of government- —Anjani Trivedi
Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
Net YTD
Fidelity Spartan Adv CoreBond 11.67 -0.02 1.2 PIMCO Funds D ExplrAdml 67.90 -0.02 -9.2 WellsIAdml 59.15 -0.13 -0.4 VANGUARD INDEX FDS
Fund NAV Chg % Ret 500IdxAd 68.21 -0.03 -5.0 JPMorgan Select Cls IncomeFd NA ... NA ExtndAdml 58.01 +0.04 -8.8 WelltnAdml 61.62 -0.16 -3.0 500 179.03 -0.07 -5.0
Explanatory Notes Data provided by
ExtMktAd r 45.82 +0.03 -8.7 CoreBond 11.66 -0.02 1.2 PIMCO Funds Instl GNMAAdml 10.76 -0.01 1.2 WndsrAdml 59.26 -0.13 -8.2 ExtndIstPl 143.14 +0.08 -8.8
Top 250 mutual-funds listings for Nasdaq-published share classes with Income 13.26 -0.02 -0.2 IntAd r 33.81 -0.03 -5.9 USLgCpCorPls 24.88 +0.05 -7.2 IncomeFd NA ... NA GrwthAdml 51.64 +0.11 -5.7 VANGUARD FDS TotIntl 13.65 -0.03 -5.8
net assets of at least $500 million each. NAV is net asset value. Intl Stk 32.82 -0.23-10.0 TotMktAd r 55.33 -0.01 -5.7 PIMCO Funds P HlthCareAdml r 84.80 +0.16 -8.8 DivdGro 21.80 +0.02 -2.8 TotSt 47.88 -0.02 -5.7
Percentage performance figures are total returns, assuming reinvestment
of all distributions and after subtracting annual expenses. Figures don’t
Stock 151.26 -0.34 -7.1
DoubleLine Funds
First Eagle Funds L IncomeP NA ... NA HYCorAdml r 5.46 ... -1.0 GNMA 10.76 -0.01 1.1 VANGUARD INSTL FDS
reflect sales charges (“loads”) or redemption fees. NET CHG is change in GlbA 49.66 +0.06 -3.3 Lazard Instl Price Funds InfProAd 25.54 -0.06 1.3 HlthCare r 201.04 +0.37 -8.8 BalInst 28.38 -0.02 -2.9
TotRetBdI NA ... NA
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR
TotRetBdN NA ... NA
FMI Funds EmgMktEq 13.01 -0.06 -3.2 BlChip 66.21 +0.13 -8.5 IntlGrAdml 61.85 -0.06 -7.8 IntlVal 29.32 -0.08 -5.7 DevMktsIndInst 11.14 -0.01 -5.8
%RET is trailing three-year return annualized. LgCap 17.95 -0.04 -3.5 Loomis Sayles Fds CapApp 24.27 -0.07 -3.1 ITBondAdml 11.42 -0.03 1.7 INSTTRF2025 18.44 -0.02 -3.3 ExtndInst 58.00 +0.03 -8.8
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. F FPA Funds LSBondI 12.53 -0.01 -2.6 EmMktS 26.73 -0.08 -6.2 ITIGradeAdml 9.70 -0.02 0.9 LifeCon 17.58 -0.02 -1.5 GrwthInst 51.64 +0.11 -5.7
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. FPACres 29.40 -0.09 -5.3 Lord Abbett A EqInc 26.89 -0.12 -5.5 LTGradeAdml 9.96 -0.04 1.0 LifeGro 26.09 -0.03 -4.3 InPrSeIn 10.40 -0.03 1.3
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock Fidelity Advisor A FrankTemp/Frank Adv ShtDurIncmA p 4.29 ... -0.1 EqIndex 52.19 -0.02 -5.0 MidCpAdml 137.96 +0.30 -7.2 LifeMod 22.39 -0.03 -2.9 InstIdx 177.28 -0.07 -5.0
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. NwInsghtA p 24.71 +0.08 -5.5 IncomeAdv 1.99 -0.01 -3.4 Lord Abbett F Growth 48.90 +0.14 -8.9 MorgAdml 72.29 +0.24 -6.3 Primcp r 93.21 +0.06 -6.5 InstPlus 177.30 -0.06 -5.0
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to Fidelity Advisor I
incomplete price, performance or cost data. NE-Not released by Lipper; FrankTemp/Franklin A ShtDurIncm 4.29 ... -0.1 HelSci 59.89 +0.40-13.0 MuHYAdml 11.40 -0.01 1.0 PrmcpCor 19.53 +0.01 -6.2 InstTStPlus 43.35 -0.01 -5.7
NwInsghtI 25.17 +0.08 -5.5 CA TF A p 7.55 -0.03 1.0 HiYield 6.06 ... -1.4 MuIntAdml 14.40 ... 1.2 SelValu r 23.77 +0.02 -8.0 MidCpInst 30.48 +0.07 -7.2
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of
period. Fidelity Freedom Fed TF A p 12.42 -0.04 1.0 M InstlCapG 26.13 +0.09 -9.6 MuLTAdml 11.86 ... 1.2 STAR 22.40 -0.02 -3.8 MidCpIstPl 150.31 +0.34 -7.2
FF2020 13.96 -0.01 -3.9 Growth A p 68.86 +0.05 -6.1 Metropolitan West Intl G&I 12.35 ... -5.5 MuLtdAdml 11.08 ... 0.7 STIGrade 10.59 -0.01 0.4 SmCapInst 48.97 -0.02 -7.7
Monday, February 1, 2016 FF2025 11.89 ... -4.4 IncomeA p 2.01 -0.01 -3.3 TotRetBd IntlStk 14.38 +0.03 -5.9 MuShtAdml 15.83 ... 0.3 TgtRe2015 13.93 -0.02 -2.1 STIGradeInst 10.59 -0.01 0.5
FF2030 14.39 ... -5.4 NA ... NA
Net YTD Net YTD RisDv A p 46.54 -0.14 -2.5 TotRetBdI MCapGro 67.44 +0.14 -8.0 PrmcpAdml r 96.55 +0.06 -6.5 TgtRe2020 26.40 -0.03 -2.8 TotBdInst 10.75 -0.02 1.3
FreedomK2020 12.99 -0.01 -3.9 NA ... NA
Fund NAV Chg % Ret Fund NAV Chg % Ret FrankTemp/Franklin C MCapVal 23.91 ... -4.1 REITAdml r 109.33 +0.14 -3.2 TgtRe2025 15.10 -0.02 -3.3 TotBdInstPl 10.75 -0.02 1.3
FreedomK2025 13.48 -0.01 -4.4 TRBdPlan NA ... NA
Income C t 2.03 -0.01 -3.4 MFS Funds Class A N Horiz 38.53 ... -9.3 SmCapAdml 48.97 -0.02 -7.7 TgtRe2030 26.65 -0.03 -3.9 TotIntBdIdxInst 32.12 -0.01 1.5
A B FreedomK2030 13.56 -0.01 -5.4
FrankTemp/Temp A ValueA p 31.40 -0.05 -4.2
N Inc 9.42 -0.01 0.9 STBondAdml 10.50 -0.01 0.8 TgtRe2035 16.09 -0.02 -4.5 TotIntlInstIdx r 91.31 -0.16 -5.8
FreedomK2035 13.88 ... -6.0 OverS SF r 8.47 -0.01 -5.8
American Century Inv BlackRock Funds A GlBond A p 11.47 +0.01 -0.7 MFS Funds Class I STIGradeAdml 10.59 -0.01 0.5 TgtRe2040 27.05 -0.03 -4.9 TotItlInstPlId r 91.33 -0.15 -5.8
FreedomK2040 13.91 ... -5.9 R2015 13.28 -0.01 -2.9
Ultra 32.87 +0.10 -6.1 GlblAlloc p 17.21 -0.02 -3.5 Fidelity Invest
Growth A p 20.16 ... -8.0 ValueI 31.57 -0.05 -4.2 TotBdAdml 10.75 -0.02 1.2 TgtRe2045 16.89 -0.02 -5.0 TotStInst 47.91 -0.01 -5.7
FrankTemp/Temp Adv MFS Funds Instl R2020 18.96 -0.01 -3.7 TotIntBdIdxAdm 21.40 -0.01 1.5 TgtRe2050 27.06 -0.03 -5.0 VirtusFunds Cl I
American Funds Cl A BlackRock Funds C AMgr50% 15.58 -0.01 -2.9
GlBondAdv p 11.42 ... -0.7 IntlEq 19.31 -0.03 -6.1 R2025 14.31 ... -4.3 TotIntlAdmIdx r 22.83 -0.04 -5.8 TgtRetInc 12.34 -0.02 -0.9 EmMktI 8.74 +0.02 -2.5
AmcpA p 24.41 +0.03 -5.9 GlblAlloc t 15.68 -0.01 -3.6 Balanc 20.29 -0.03 -4.4 R2030 20.75 ... -4.9
AMutlA p 32.82 -0.03 -3.0 BlackRock Funds Inst Mutual Series TotStAdml 47.90 -0.02 -5.7 TotIntBdIxInv 10.70 -0.01 1.5
BalA p 23.19 -0.05 -2.7 EqtyDivd 19.99 -0.05 -4.8
BalancedK
BluCh
20.29
63.56
-0.03 -4.4
+0.31 -7.8
G GlbDiscA 27.22 -0.11 -5.7 R2035 14.94 ... -5.4
TxMIn r 11.13 -0.01 -5.8 WellsI 24.42 -0.05 -0.4 W
BondA p 12.69 -0.02 1.0 GlblAlloc 17.31 -0.02 -3.5 GMO Trust Class IV GlbDiscz 27.70 -0.10 -5.6 R2040 21.27 ... -5.8
ValAdml 30.24 -0.07 -5.0 Welltn 35.68 -0.09 -3.0 Western Asset
Contra 93.68 +0.38 -5.3 SmCapStk 35.58 -0.07 -7.8
CapIBA p 55.08 -0.07 -1.4 HiYldBd 7.00 ... -1.3 ContraK 93.62 +0.38 -5.3 IntlEq 18.98 -0.02 -5.5 WdsrllAdml 56.24 -0.09 -5.4 WndsrII 31.70 -0.04 -5.4 CorePlusBdI 11.45 -0.03 0.5
O Value 29.28 -0.04 -6.3
CapWGrA 41.12 -0.08 -5.2 StratIncOpptyIns 9.68 -0.01 -0.7 CpInc r 8.81 -0.01 -3.4
EupacA p 42.64 +0.03 -6.0 DivIntl 32.97 +0.12 -6.0 H Oakmark Funds Cl I S
D DivIntlK r 32.91 +0.12 -5.9 EqtyInc 27.28 -0.01 -4.5
FdInvA p
GwthA p
48.06
38.24
-0.03 -5.2
+0.05 -7.4 Davis Funds A GroCo 122.48 +0.42-10.3
Harbor Funds
CapApInst 55.88 +0.25 -8.1 Oakmark 58.21 -0.24 -7.4 Schwab Funds Key Interest Rates
-0.02 -1.9 NYVen A 28.18 -0.11 -8.8 GrowCoK 122.35 +0.42-10.3 OakmrkInt 19.39 -0.05 -9.2 S&P Sel 29.98 -0.01 -5.0
HI TrA p 9.12 IntlInst r 56.16 +0.01 -5.5
Old Westbury Fds
Data are annualized on a 360-day basis. Treasury yields are per annum,
ICAA p 32.14 -0.04 -3.7 Dimensional Fds InvGrBd 11.07 -0.02 0.6 T
5GlbFxdInc 11.02 -0.01 1.1 LowP r 45.33 +0.13 -5.1 I LrgCpStr 11.85 -0.02 -5.0 on actively traded noninflation and inflation-indexed issues that are
IncoA p 19.74 -0.03 -2.4 Oppenheimer Y TIAA/CREF Funds
N PerA p 33.72 +0.03 -6.4 EmgMktVa 19.15 -0.10 -6.1 LowPriStkK r 45.29 +0.12 -5.1
Invesco Funds A
adjusted to constant maturities. Data are from weekly Federal Reserve
MagIn 83.63 -0.03 -6.5 DevMktY NA ... NA EqIdxInst 14.22 ... -5.6
NEcoA p 32.96 +0.16 -8.3 EmMktCorEq 14.99 -0.04 -4.9
EqIncA 9.11 -0.02 -5.3 IntGrowY NA ... NA Tweedy Browne Fds release H.15.
IntlCoreEq 10.69 ... -6.1 OTC 73.00 +0.20-12.5
NwWrldA 46.98 -0.02 -6.0 GblValue 23.35 -0.04 -4.5 Week Ended 52-Week Week Ended 52-Week
IntSmCo 16.14 +0.05 -6.2 Puritn 19.50 -0.02 -4.1
SmCpA p 39.77 +0.16 -8.8
IntSmVa 17.31 +0.01 -7.3 SrsInvGrdF 11.07 -0.03 0.5
J P Jan 29 Jan 22 High Low Jan 29 Jan 22 High Low
TxExA p 13.18 ... 1.0 Dimensional Fds StratInc 10.02 ... -1.0 John Hancock Class 1 Parnassus Fds V Federal funds (effective) 20-year 2.40 2.44 2.90 2.10
WshA p 36.79 ... -4.3 US CoreEq1 16.15 -0.01 -5.9 TotalBond 10.27 -0.02 0.4 LSBalncd 13.63 -0.01 -4.2 ParnEqFd 35.61 +0.24 -3.7 VANGUARD ADMIRAL
AMG Managers Funds US CoreEq2 15.33 -0.02 -6.2 Fidelity Selects LSGwth 13.99 -0.01 -5.7 PIMCO Fds Instl 500Adml 179.05 -0.07 -5.0
0.38 0.36 0.38 0.09
Treasury yields (secondary market)
YacktmanFd 20.55 +0.03 -1.5 US Small 26.48 -0.08 -6.6 Biotech r 172.33 +1.25-26.9 John Hancock Instl AllAsset NA ... NA BalAdml 28.38 -0.02 -2.9 Commercial paper
AQR Funds
1-month 0.25 0.25 0.25 -0.02
US SmCpVal 28.15 -0.15 -7.7 Health r 186.17 +1.18-10.6 DispValMCI 17.52 -0.02 -8.5 ShortT NA ... NA CAITAdml 11.97 ... 1.2 3-month 0.32 0.28 0.32 0.00
MgdFutStrI NA ... NA USLgVa 28.65 -0.07 -7.0 Fidelity Spartan JPMorgan Inst Class TotRt 10.12 -0.03 0.7 CapOpAdml r 108.40 +0.31 -8.6 Nonfinancial
1-month 0.33 0.34 0.35 0.06 6-month 0.43 0.37 0.54 0.07
Artisan Funds Dodge & Cox 500IdxInv 68.20 -0.03 -5.0 MdCpVal 32.41 +0.08 -4.6 PIMCO Funds A EMAdmr 25.54 -0.15 -6.5
Intl Inv 26.99 +0.15 -5.9 Balanced 89.97 -0.19 -4.7 500IndInst 68.21 -0.03 -5.0 JPMorgan R Class TotRetA 10.12 -0.03 0.7 EqIncAdml 59.83 -0.18 -3.4 2-month 0.40 0.41 0.41 0.07 TIPS
3-month 0.47 0.48 0.48 0.09 5-year 0.24 0.34 0.50 -0.29
Financial 7-year 0.42 0.52 0.63 -0.02
1-month 0.39 0.39 0.40 0.06 10-year 0.71 0.78 0.06
Borrowing Benchmarks | WSJ.com/bonds
0.61
2-month 0.46 0.47 0.49 0.07 20-year 1.01 1.09 1.12 0.40
3-month 0.55 0.56 0.59 0.11 Long-term avg 1.04 1.11 1.12 0.44
CDs (secondary market)
Money Rates February 1, 2016 1-month n.a. n.a. n.a. n.a. Interest rate swaps
3-month n.a. n.a. n.a. n.a. 1-year 0.74 0.74 0.86 0.40
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always 6-month n.a. n.a. n.a. n.a. 2-year 0.91 0.90 1.16 0.72
represent actual transactions. 3-year 1.08 1.07 1.40 0.96
Discount window primary credit 4-year 1.24 1.23 1.64 1.17
Inflation 1.00 1.00 1.00 0.75 5-year 1.38 1.37 1.87 1.36
Week —52-WEEK— Week —52-WEEK— Week —52-WEEK—
Latest ago High Low Latest ago High Low Latest ago High Low
7-year 1.62 1.62 2.21 1.62
Dec. index Chg From (%) Conventional mortgages 10-year 1.87 1.87 2.50 1.87
level Nov. '15 Dec. '14 3.79 3.81 4.09 3.59
High 0.5600 0.5600 0.5900 0.3100 Euro commercial paper 30-year 2.32 2.32 2.96 2.26
Euro interbank offered rate (Euribor)
Low 0.3000 0.3400 0.3500 0.0100
U.S. consumer price index 30 day n.q. n.q. -0.02 -0.12 One month -0.232 -0.231 0.003 -0.232 Treasury yields at constant Corporate bonds, Moody's seasoned
Bid 0.3800 0.3800 0.5500 0.0300
All items 236.525 –0.34 0.7 Two month n.q. n.q. -0.01 -0.09 Three month -0.162 -0.155 0.055 -0.162 maturities Aaa 4.05 4.03 4.26 3.36
Offer 0.5000 0.5000 0.5600 0.0500
Core 243.779 –0.12 2.1 Three month n.q. n.q. 0.01 -0.08 Six month -0.094 -0.077 0.134 -0.094 1-month 0.26 0.25 0.26 0.00 Baa 5.46 5.45 5.51 4.36
Treasury bill auction Four month n.q. n.q. 0.02 0.00 One year 0.010 0.028 0.271 0.010 3-month 0.32 0.28 0.32 0.00
International rates Five month n.q. n.q. 0.03 0.01 6-month 0.44 0.38 0.55 0.07 State and local bonds
4 weeks 0.295 0.250 0.295 0.000 Value 52-Week 0.46 0.71 0.17
Week 52-Week Six month n.q. n.q. 0.04 0.02 1-year 0.47 3.38 3.37 3.87 3.36
13 weeks 0.350 0.305 0.350 0.000 Latest Traded High Low 2-year 0.83 0.86 1.07 0.51
Latest ago High Low 26 weeks 0.465 0.415 0.585 0.065 Eurodollars
Libor 3-year 1.05 1.09 1.35 0.84
DTCC GCF Repo Index 5-year 1.42 1.47 1.78 1.28 1 month 0.48 0.48 0.50 0.19
Prime rates One month 0.42700 0.42550 0.43060 0.16950
Secondary market Three month 0.61860 0.61910 0.62430 0.25210 Treasury 0.485 101.584 0.639 0.059 7-year 1.75 1.79 2.16 1.57 3 month 0.70 0.70 0.70 0.30
U.S. 3.50 3.50 3.50 3.25 MBS 0.494 139.720 0.705 0.075 10-year 2.00 2.04 2.42 1.77 6 month 0.90 0.90 0.90 0.37
Canada 2.70 2.70 2.85 2.70 Fannie Mae Six month 0.86500 0.86500 0.86575 0.35740
Japan 1.475 1.475 1.475 1.475 30-year mortgage yields One year 1.14025 1.15595 1.17800 0.61815 Open Implied Notes on data:
Settle Change Interest Rate
30 days 3.260 3.358 3.750 3.052 Euro Libor Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
Policy Rates 60 days 3.292 3.389 3.788 3.105 One month -0.233 -0.226 -0.004 -0.233 DTCC GCF Repo Index Futures on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
Euro zone 0.05 0.05 0.05 0.05 dealers or direct issuers to investors that are settled by the Depository Trust Company; CD rates are
Switzerland 0.50 0.50 0.50 0.50 Three month -0.181 -0.163 0.032 -0.181 Treasury Feb 99.520 -0.005 7104 0.480
Other short-term rates Six month -0.109 -0.084 0.095 -0.109 Treasury Mar 99.470 unch. 4483 0.530
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
Britain 0.50 0.50 0.50 0.50 primary credit rate is charged for discounts made and advances extended under the Federal
Australia 2.00 2.00 2.50 2.00 Week 52-Week
One year 0.000 0.024 0.237 0.000 Treasury Apr 99.460 unch. 2050 0.540
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Latest ago high low Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
Overnight repurchase Notes on data: yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
U.S. 0.43 0.46 0.51 0.07 Call money U.S. prime rate is effective December 17, 2015. Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
2.25 2.25 2.25 2.00 Discount rate is effective December 17, 2015. return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
U.S. government rates U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Commercial paper Other prime rates aren’t directly comparable; lending practices vary widely by location;
Discount DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
1.00 1.00 1.00 0.75 30 to 270 days n.q. ... ... ... applicable CUSIPs. Value traded is in billions of U.S. dollars. maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. mortgages
Federal funds Commercial paper (AA financial) Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Sources: Federal Reserve; for additional information on these rate data and their derivation,
Effective rate 0.4000 0.4000 0.4000 0.0600 90 days 0.59 0.56 0.64 0.06 General Electric Capital Corp.; Tullett Prebon Information, Ltd. please see, www.federalreserve.gov/releases/h15/data.htm
HEALTH & WELLNESS
A Gripping Discovery Golden State’s

PB&J Gambit
Hand strength and diabetes RESEARCH REPORT | D4 SPORTS | D6
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | D1
Speeding Up Hip Surgery Hospitals

Learn to Say
Same-day hip replacement
promises less pain, faster ‘I’m Sorry’
recovery for outpatients
BY LUCETTE LAGNADO
To Patients
BY LAURA LANDRO
Michael Burk found walking in-
creasingly painful last year. Cross- While operating on Gary Avila’s
ing the street and tying his shoes arm last year, a surgeon at Stan-
became challenges, and colleagues ford Hospital accidentally nicked a
noticed he was limping at work. nerve, causing an injury that af-
On a recent morning, Mr. Burk fected the use of his hand.
reported to the Hospital for Joint Mr. Avila’s injury was resolved
Diseases, part of NYU Langone through a Stanford program
Medical Center in New York City, known as Pearl, short for Process
for hip-replacement surgery. His for Early Assessment, Resolution
surgeon had promised him a better and Learning.
quality of life, and said both the In addition to an apology, an
operation and recovery would be explanation of
quick. THE INFORMED what had gone
About an hour later Mr. Burk PATIENT wrong, and a
was out of surgery. By 4 p.m. that waiver of his
afternoon he was upstairs in a One Hour on This Table medical bill,
ward, walking on crutches down The Hana orthopedic surgical table enables surgeons Mr. Avila received a monetary set-
the hall and going up and down a to move a patient’s legs for anterior hip replacement. tlement that both sides agreed to
small model staircase. At 6 p.m., A surgeon makes an incision at the front instead of keep confidential to compensate
he left the hospital and headed the traditional, posterior approach. for his pain and suffering.
home with his wife to Northern Stanford’s Pearl program is
New Jersey, where he had a bowl serving as a model for more so-
of chicken soup.
Mr. Burk, 54 years old, had
Two Paths to Surgery called communication and resolu-
tion programs that hospitals are
what NYU Langone calls same-day SURGICAL METHOD: adopting to interact with patients
hip-replacement surgery, which ANTERIOR: The surgeon approaches the when things go wrong and avoid
practitioners say offers faster re- hip joint with an incision at the front costly litigation.
covery times and less postopera- and generally avoids cutting muscle While Stanford in Palo Alto, Ca-
tive pain. With traditional hip sur- and tendons. lif., and a handful of other large
gery, patients typically spend days medical centers began adopting
POSTERIOR: The surgeon approaches
recovering in the hospital and may the practice more than a decade
need additional time in a rehabili- the hip joint with an incision at the ago, the approach never caught on
tation center. backside and generally needs to cut widely.
Hip replacement, formally through muscle and tendons. Risk managers at hospitals have
known as total hip arthroplasty, is been leery of making financial of-
considered one of the most effec- PAIN: fers unless they are sure a suit is
tive surgeries in medicine, en- ANTERIOR: Less cutting results in less about to be filed. And doctors and
FROM TOP: TERRY VANDERHEIDEN; ADAM WATT/NYU LANGONE MEDICAL CENTER; RYAN JASLOW/NYU LANGONE MEDICAL CENTER
abling the vast majority of pa- post-operative pain, practitioners say. other medical staff are often reluc-
tients to walk again pain-free. Studies don’t necessarily reflect this. tant to admit errors and apologize
More than 340,000 of the opera- POSTERIOR: Discomfort may be for fear of their own liability and
tions are performed in the U.S. a greater early on but can be handled disciplinary action, says Thomas
year and include a growing num- with pain-management techniques. Gallagher, a professor of medicine
ber of patients in their 40s and at the University of Washington, in
50s who want to maintain an ac- Michael Burk talks with his surgeon Roy Davidovitch at NYU Langone’s EARLY RECOVERY: Seattle.
tive lifestyle. Hospital for Joint Diseases in the morning before his anterior hip replacement. ANTERIOR: Patients have the edge in Hospitals are more receptive to
The procedure replaces an ar- Mr. Burk was walking up a small model staircase by 4 p.m. that afternoon. the first couple of weeks, often walk- the idea now as they come under
thritic or damaged hip joint with ing the same day of their surgery. pressure from accrediting groups,
an artificial joint. In the tradi- patient safety organizations and
POSTERIOR: Patients may have a
tional surgical method, known as lawmakers to be more transparent
the posterior approach, surgeons more difficult couple of weeks, with about errors and analyze them
cut through muscle, tendons and some restrictions on movement. They carefully to prevent them from
tissues in the patient’s backside to catch up within six weeks. happening again.
get to the hip joint. The arthritic Evidence has accumulated that
THREE MONTHS POST SURGERY:
joint is removed and a prosthetic the approach can improve patient
joint akin to a ball and socket is ANTERIOR: Nearly everyone is back to safety and substantially reduce
implanted, enabling the patient to full activity, including golf, tennis and malpractice costs.
move with greater ease. even skiing, says Dr. Roy Davidovitch. At Stanford, for example, from
Roy Davidovitch, who operated POSTERIOR: Nearly everyone is 2009 to 2014, after Pearl was im-
on Mr. Burk, is one of a growing back to full activity, including golf plemented, the frequency of law-
number of surgeons offering the and doubles tennis, says Dr. Joseph suits was 50% lower, and indem-
same-day hip-replacement tech- Zuckerman. nity costs in paid cases were 40%
nique. Dr. Davidovitch, director of lower compared with 2003 to
NYU Langone’s Hip Center, uses a LONG-TERM OUTCOME: 2008.
so-called anterior approach. He ANTERIOR: Patients are generally pain (Last month, Stanford changed
makes a four-inch incision in front free with no limits on activity unless the name of the Pearl program,
of the hip, close to the groin, be- specified by their surgeon. which had been called Process for
fore going in to install the new Early Assessment and Resolution
POSTERIOR: Patients are generally
joint. The procedure is performed of Loss. It says “learning” better
through what he calls a “natural pain free with no limits on activity reflected the process, which in-
Please see HIP page D2 unless specified by their surgeon. Please see ERRORS page D3
Watch for Small Warnings Before a Cardiac Arrest

BY RON WINSLOW tims either failed to recognize the without further symptoms and, af-
symptoms or ignored them—in ter having no further symptoms,
Sue Chlebek was on her regular most cases until it was too late. suffers sudden cardiac arrest three
three-mile walk with a friend one The missed symptoms included weeks later.
spring morning when she told her chest pain, shortness of breath, “Should that person have called
companion she must have been lightheadedness and heart palpita- 911, or sought assistance from his
dominating the conversation, be- tions—classic signs of an impend- or her physician?” asks Roger
cause she was so short of breath. ing or actual heart attack. White, an anesthesiologist and
About two hours later, she went Researchers found evidence of cardiac-arrest expert at Mayo
into sudden car- them in medical records, in inter- Clinic, in Rochester, Minn. “That
HEART BEAT diac arrest. She views with family and witnesses to sort of question is left completely
had arrived at a the arrest, and in the recollections unanswered.”
hospital emer- of those who survived. Ms. Chle- Dr. Chugh agrees, adding that
gency room just seconds earlier. bek wasn’t part of the study, but the findings don’t mean every ap-
CORBIS
Doctors shocked her heart back she now suspects the shortness of parent sign of chest pain should
into rhythm with a defibrillator breath was an early warning. prompt a 911 call. “That would cre-
and then deployed a stent to open The findings reveal a “window ate chaos,” he says.
a blocked artery.
Some 1,000 Americans a day
suffer sudden cardiac arrest, a cat-
of opportunity we didn’t know ex-
isted” for potentially preventing
sudden cardiac arrests, says
1,000 10.6% As part of what is known as the
Oregon Sudden Unexpected Death
Study, Dr. Chugh and his col-
The number of Americans who The percentage of such patients treated
astrophic event that seems to Sumeet S. Chugh, associate direc- suffer sudden cardiac arrest by emergency crews who survive to be leagues also are gathering genetic
come on without warning and al- tor of the Heart Institute at Ce- outside of a hospital each day discharged from the hospital data, autopsy findings and infor-
most always results in death, un- dars-Sinai Medical Center in Los mation from medical records. They
less help is nearby. Ms. Chlebek, a Angeles, and senior author of the aim to develop a clinical profile
Source: Annals of Internal Medicine; American Heart Association
56-year-old mother of three from study. that describes who are most likely
La Porte, Ind., was one of the While previous, smaller studies to benefit from making a 911 call.
lucky ones. When these scares have shown that people have with heart ailments. Even when versity of Pennsylvania, who wasn’t One hope is that such informa-
happen outside the hospital, just symptoms very shortly before an cardiac problems are confirmed, involved with the new research. tion might lead to personal tech-
over 10% of people survive. event, the idea that patients might tests to predict which patients are “This is one of the first studies to nology that people could use to
Now researchers say the events experience precursor signs as likely to end up in cardiac arrest peer inside that black box.” help gauge how to respond to
might not always be so sudden. A much as a month in advance aren’t available. The results don’t address a fun- symptoms. For instance, a smart-
recent study that analyzed 839 hadn’t previously been docu- “The hours before sudden car- damental dilemma concerning phone app that records electrocar-
sudden cardiac arrests found that mented, he says. diac arrest are a large black box,” heart symptoms: When should diograms could advise whether a
in 430 cases, or 51%, patients ex- Millions of patients experience says Benjamin Abella, clinical re- people call 911? Say someone has a patient is at immediate risk.
hibited warning signs in the four chest pain and other symptoms search director of the Center for brief episode of chest pain during Another idea, researchers say, is
weeks before the arrest. The vic- that end up having nothing to do Resuscitation Science at the Uni- exercise for the first time, goes Please see HEART page D2
D2 | Tuesday, February 2, 2016 THE WALL STREET JOURNAL.
HEALTH & WELLNESS
Burning Question How can vegetarians get enough protein?

More than 7 million Americans follow a vegetarian diet, according to a recent While eating a vegetarian diet with
study, whether for health benefits or environmental concerns, and many are a rainbow of colors is healthy, Dr.
concerned about getting enough protein without any animal consumption. Seres notes, protein seekers should be
One expert, David Seres, director of medical nutrition in the Institute of Human aware: “Root and leafy vegetables
Nutrition at Columbia University Medical Center in New York City, explains where generally have very little protein
the best sources of protein can be found in the plant kingdom and why extreme compared with legumes and grains,”
vegetarianism isn’t optimal for human health. —Heidi Mitchell he says. Even kale has only trace
amounts of protein.
All in the Numbers and by some quacks,” he says. He
Dr. Seres says his colleagues believes the federal dietary guidelines— Bar None?
recommend a daily 0.8 to 0.9 grams of which were recently changed to Vegetarians may attempt to boost
protein per kilogram of body weight, recommend that adult and teen males their protein intake by eating packaged
“which in a 150-pound person would consume slightly less protein every day protein bars. Dr. Seres says many of
equal about 55 grams.” The amount from meat, poultry and eggs, and that these products are “glorified candy
would be higher for children. The everyone cut back on sugar—are still bars,” and he hasn’t seen any scientific
amount is recommended for all adult probably higher than necessary. proof that the vitamins and proteins
Americans, though omnivores have an There is some thought that a diet many of them are fortified with can
easier time than vegetarians sourcing too high in protein can stress the actually be used by the body.
protein’s building blocks. kidney or leech calcium from the bones Dr. Seres also cautions that the
“An 8-oz. steak is about 60 grams over time, Dr. Seres says, “but it’s not federal dietary guidelines are
of protein, so if you eat that, you are proven definitively.” themselves imperfect for vegetarians
done for the day,” says Dr. Seres, an On the flip side, there is also some and omnivores alike.
associate professor of medicine. data showing that a protein-restricted “The effect of nutrition over time is
Vegetarians can get their daily 55- diet may prevent kidney stones. Low- subtle, difficult to measure and really
or-so grams by eating varied grains protein diets in certain populations amounts to whether you live longer
and legumes, which together constitute reliant on corn have led to pellagra, a and healthier,” he says. To get real
a “complete” protein, containing the disease with symptoms including data, you’d have to randomly assign
nine essential amino acids the body dermatitis and mental disturbances. similar groups of people to different
requires to function optimally. Dr. Seres “But as soon as you introduce beans, diets and then watch them over
GETTY IMAGES (4)
notes that it isn’t necessary to which have vitamin B3, they’re fine,” Dr. decades, he says—“which is nearly
consume a complete protein at every Seres says. For the general population, Clockwise from top left: Lentils, brown rice and soybeans are plant-based impossible, because we are very
meal, nor even every day. “Your body he says, “it would be very hard to not protein sources; vitamin- and mineral-rich kale doesn’t have lots of protein. inexpert in getting people to change
has a great ability to store these eat enough protein and not be their dietary behavior, even if it’s
proteins for days,” he says. seriously underweight. It’s unlikely to being with legs, wings or shells, and Dr. products, eggs and fish, but no meat or proven to be healthier.”
be a problem in America.” Seres isn’t a fan. “It is my opinion that poultry) for 35 years. To keep things simple, Dr. Seres
Too Much of a Good Thing veganism is not consistent with human Vegans can get all the proteins they doesn’t recommend a hard and fast
People seem to have a dietary bias The Trouble With Veganism life, because all vitamin B12 originated need from grains and legumes, Dr. number of grams of protein a day.
toward protein, Dr. Seres notes. Adherents of an extreme vegetarian in an animal, and we all need B12,” Seres says, “but you still have to Instead he has this advice for
“Carbohydrates and fat have both been diet, often known as veganism, won’t says Dr. Seres, who has been a lacto- supplement with an animal-derived B12 vegetarians: “Go for the bean and the
vilified by people with real credentials eat anything derived from a living ovo-pescetarian (meaning he eats dairy to be healthy.” grain, and you should be fine.”
HIP
Most patients fully recover to the more than three-hour anes-
from hip replacement after about thesia standard for traditional hip
three to six months regardless of surgery.
surgical approach, doctors say. By “At first, there was a lot of anx-
Continued from the prior page then, the bone has largely grown iety,” recalls nurse manager Ella
interval,” or opening between over the implant and it is safely Blot. “But we would see [patients]
muscles, thereby avoiding cutting affixed. going home and we’d say, amaz-
through muscle and tendons as Anterior hip replacement pa- ing.” To Ms. Blot, a 23-year nurs-
with the posterior approach. tients often need less pain medica- ing veteran, “the world has
Dr. Davidovitch has performed tion after surgery, practitioners of changed. They used to stay here
about 100 same-day hip replace- the technique say, although this two weeks, then 10 days, seven
ments in the past year. There have varies by the individual. days, suddenly four days, two
been no complications and only Before getting same-day hip-re- days” after hip-replacement sur-
one hospital readmission for sev- placement surgery at NYU in Janu- gery.
eral hours when a patient reacted ary, Barbara Ross, of Suffern, N.Y., Keith Berend, senior partner at
to the anesthesia, he says. was in near-constant, severe pain, Joint Implant Surgeons in New Al-
Joel Matta, an orthopedic sur- she says. The day after the proce- bany, Ohio, prefers the anterior
geon at Providence Saint John’s dure she took “one or two Vico- approach. “It makes perfect sense
Health Center in Santa Monica, Ca- dins,” a narcotic painkiller, and that cutting no muscles will result
lif., was an early adopter of the since then, “absolutely nothing,” in the fastest recovery,” he says.
method in the U.S. and has per- she says. “I am 100% better than I Still, other partners at the practice
formed more than 4,000 anterior have been in years.” Ms. Ross, 62, occasionally use another tech-
NYU
hip replacements over the past 20 is back at work running her public nique, called the lateral approach,
years. Dr. Matta, who helped train relations firm. in which the surgeon approaches
Dr. Davidovitch, designed a special An x-ray of Barbara Ross’s hip implant. Ms. Ross was operated on by Dr. Roy Multiple departments had to be the hip joint from the side. In all
operating table to help surgeons Davidovitch at NYU Langone in New York and left the hospital the same day. on board when NYU launched its cases, patients at his ambulatory
manipulate the patient’s legs and same-day hip-replacement pro- surgery center, which has per-
body to improve access to the sur- is the best approach,” says Dr. Lie- The answer is, somewhat,” says gram in 2015, including the chair- formed 1,100 same-day hip re-
gical site. berman, who is chairman of ortho- Jose Rodriguez, vice chairman of man of orthopedics, Joseph Zuck- placements since June 2013, go
As many as 26% of member pedics at the Keck School of Medi- orthopedics at Lenox Hill Hospital erman. Dr. Zuckerman says he now home the same day, he says. “The
surgeons performing hip replace- cine at the University of Southern in New York City, a part of North- wants to expand same-day hip re- experience of the surgeon, the effi-
ments in the U.S. use the anterior California in Los Angeles. well Health, who has published placement surgery to other ap- ciency of the team and the pain-
method, according to a survey by Some doctors question whether studies comparing the different proaches and other joints. The management protocols” are key.
the American Association of Hip it is safe for patients to go home surgical approaches. “There is less hospital has spent nearly $200,000 Jeffrey Leeds, a 59-year-old pri-
and Knee Surgeons. The technique after hip surgery without spending muscle injury” and a patient’s over the years on two special op- vate-equity investor in New York
is considered harder to master a night being monitored in a hos- early recovery is “definitely bet- erating tables for the surgery. City, had same-day hip surgery at
partly because the surgeon has pital. “We should be careful,” says ter,” says Dr. Rodriguez, who fa- Dr. Davidovitch says he needed NYU in November. He says he was
less room to maneuver around the Vincent Pellegrini, orthopedics vors the anterior method in his a shorter-lasting anesthesia that in so much pain before the opera-
joint than with the posterior ap- chair at the Medical University of own practice. would let patients get out of bed tion that if he sat on the ground to
proach. But some surgical experts South Carolina in Charleston, cit- Although more patients getting and walk the same afternoon. play with his 2-year-old daughter,
say there isn’t sufficient data to ing risks of pulmonary embolism anterior surgery are able to move Mitchell Marshall, chief of anes- he couldn’t stand up.
assert the technique is superior to and bleeding. “It is still a big oper- freely and perform physical activi- thesiology for the Hospital for Pain after the surgery was min-
traditional methods. ation.” ties more quickly, those receiving Joint Diseases, says his division imal, he says, and Tylenol was all
Jay Lieberman, president of the Some research gives anterior traditional surgery catch up after was enthusiastic, but needed to he needed. Mr. Leeds was back at
American Association of Hip and hip replacement procedures a about six weeks. At that point make sure it could be done safely. work within days. “My colleagues
Knee Surgeons, says more studies slight edge over the traditional “there is no difference” in how pa- The outcome: A spinal anesthetic were hoping for a slower recov-
are needed. “We don’t know which technique. “Is it the cat’s meow? tients fare, Dr. Rodriguez says. that lasts 90 minutes, as opposed ery,” he jokes.
CIGARS HEART
2010, Ms. Chlebek felt pain She never answered the ics in greater Portland.
5
in her chest. She let her dogs question. Just as she was The idea for the study
out, changed out of her exer- put in a wheelchair, she went emerged from his experience
cise clothes and had another into cardiac arrest without as a surgeon who implants
FOR ONLY
Continued from the prior page sharp pain. even giving her name. Her defibrillators in patients con-
a home test to measure tro- “I googled ‘chest pain,’ ” doctor later told her if she sidered at risk of sudden
ponins, which are proteins she recalls. “ ‘Heart attacks’ hadn’t run the red light, she death. A defibrillator “is
5 *
that when detected in ele- popped up.” She didn’t be- likely wouldn’t have sur- your personal paramedic,” he
$ vated levels in the blood can

indicate heart damage.
More research is needed
to develop such tests and
lieve it. She was a few
pounds too heavy, but she
was active, exercised regu-
larly and ate well.
vived.
Heart experts strongly
recommend patients call 911
rather than drive or get
says, firing to shock your
heart back into rhythm
“within a few seconds in-
stead of waiting for the am-
identify patients most likely But after two more pain driven privately. Ms. Chlebek bulance.”
to benefit. Meantime, the spikes, she decided to go the recommends 911 in talks she Thousands of patients
new findings are a reminder emergency room, opting to gives for the patient advo- have been treated with the
that people who experience drive herself instead of call- cacy group WomenHeart. But devices, but fewer than 5%
unusual or repetitive symp- ing 911. A block away from she says she wouldn’t of them fire each year, he
toms of chest pain, shortness the hospital she had another change what she did. “It says, suggesting 95% of pa-
of breath or lightheadedness attack of pain just as she worked out for me, just by tients don’t benefit.
that go away quickly should reached a red light. seconds.” Yet more than 325,000
call a doctor, Dr. White says. “I got a little panicky and Dr. Chugh’s paper, pub- Americans suffer sudden car-
If such signs persist for sev- decided to run the light,” she lished in January in the An- diac arrest outside the hospi-
eral minutes, even if they ha- says. She parked in front of nals of Internal Medicine, is tal each year, according to the
ven’t occurred before, “that the ER door, walked in and the latest of some 75 reports American Heart Association.
is a mandatory moment to said, “I think I’m having a from the Oregon study, “There is no other disease
call 911.” heart attack.” which he started 14 years in man where you have a
Among the 430 patients “What makes you think ago and which involves 16 90% chance of dying in 10
in the study who had experi- that?” an ER staffer asked. hospitals and 300 paramed- minutes,” he says.
enced symptoms, 911 was
called in just 81 cases, or
19%. Of those cases, 32% sur-
CEDARS-SINAI; INDIANA UNIVERSITY HEALTH LA PORTE HOSPITAL
vived to be discharged from

the hospital, compared with
just 6% of cases where no
call was made.
Sudden cardiac arrest is
the result of an electrical
Includes 1 each of:
storm in the heart that
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Bahia ● Arganese
causes it to abruptly stop
beating. It isn’t the same as
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purchaser. Offer expires 3-15-16. Offer available to first-time purchasers. One per customer. From time to time
substitutions may occur. Cigars International does not sell products to anyone under the age of 21. For more
caused by obstructions in the
information please see www.cigarsinternational.com/ageverify. blood vessels that feed the
heart. As Ms. Chlebek’s case
1-888-244-2790 illustrates, a major heart at-
mention code SA1635 tack is a frequent cause of
www.CigarsIntl.com/SA1635 sudden cardiac arrest.
You must enter complete web address for special offer When she got home after Sumeet S. Chugh, left, led the study of pre-cardiac arrest symptoms. Sue Chlebek, right,
that morning walk in March experienced shortness of breath hours before going into sudden cardiac arrest.
THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | D3
HEALTH & WELLNESS
With Skate Skis, a Cross-Country Buff Learns to Fly

BY JEN MURPHY
Temperatures in the double dig-

its below zero don’t stop Seth Col-
ton and his ski buddies from bun-
dling up, donning head lamps and
venturing forth on their Wednes-
day night skate-ski outings.
“I could go to a gym in the win-
ter, but that gets boring,” Mr. Col-
ton says. “Minne-
WHAT’S YOUR sota is cold and
WORKOUT dark in the win-
ter. If you don’t
get outside it can
get depressing. Plus, the faster you
go the warmer you get,” he says.
Mr. Colton, a lawyer in North
Oaks, about 10 miles north of St.
Paul, grew up doing both downhill
and cross-country skiing. Five
years ago, he learned skate skiing,
a cross-country technique that in-
DAVID BOWMAN FOR THE WALL STREET JOURNAL (3)
volves a lateral movement similar

to ice skating and requires the
arms to pole in unison with the
legs.
“I’d be out cross-country skiing
and would see people on skate skis
going 20% faster,” Mr. Colton, 59,
recalls. He decided to try it out
and tagged along with a friend
who skate skied, then took two
group lessons to pick up the tech-
nique. He liked how skate skiing
combined the speed of downhill
skiing with the accessibility of Seth Colton started skate skiing five years ago. He likes how skate ski, top right, mixes downhill’s speed with the accessibility of class cross-country, above.
cross-country.
In winter, Mr. Colton is able to “Skate skis are shorter and skin- knee crunches, bench press and day.” She often makes chicken or S-Lab Classic cross-country skis
skate ski two to four days a week, nier so they’re fast and exciting, tuck jumps, where he jumps up and salmon, and vegetables and salad. and Salomon S-Lab Classic boots.
because his home is a quarter-mile especially on the downhill sections brings his knees to his chest and Wednesday night skate-ski ses- His skate-skis and boots are made
from 10 miles of trails. “I can do it of the trail,” he says. “But classic then lands and repeats. sions end with pizza and beer. by Atomic Sport and he uses an
when I please,” he says. “It doesn’t cross-country is so Zen.” older pair of skate skis for bad
take any planning. I just strap on In March 2014, Mr. Colton blew The Diet Gear & Cost conditions. “Those are my rock
my skis and go.” out his left knee while downhill Mr. Colton has a boiled egg, an A day pass to use the trails at skis. I don’t care if I wreck the bot-
These days, Mr. Colton alter- skiing in Vail and needed ACL re- English muffin, juice and a few Elm Creek Park Reserve costs $8; a toms,” he says. Mr. Colton says
nates between classic cross-coun- construction surgery. His surgeon cups of coffee for breakfast. If he’s season pass, $65. William O’Brien cross-country ski gloves sell for
try, downhill and skate style. “I at TRIA Orthopedic Center, in not working out he just has juice State Park and Interstate State $40 a pair at sporting-goods
love how skiing is always differ- Bloomington, recommended the and coffee. Lunch is a handful of Park charge $15 for a season ski stores, and the work gloves from a
ent,” he says. “There are miles of TRIA Lower Extremity Agility Pro- nuts and fruit. When he’s more ac- pass. Mr. Colton waits for deals on hardware store that he uses cost
trails around Minneapolis, and gram, developed by the center’s tive, he’ll have herring fillets on gear during end-of-season sales $10.
some are lighted at night. If not, a team of physical therapists, ath- crackers with low-fat cottage and has paid around $250 for most
head lamp works. Better yet, on a letic trainers and orthopedic physi- cheese and a pickle. “Whatever my of his sets of skis. “I’m 6’ 4’’ and Playlist
clear night with a full moon, it’s a cians to prevent re-injury. The six- wife cooks for dinner, I eat,” he by the end of season people are “I don’t listen to music when I
wilderness experience in the Twin week program met twice a week says. “She’s a fabulous cook, that’s trying to get rid of skis for taller ski. like to empty my head when I
Cities.” and focused on core strength. After why I eat so little the rest of the people,” he says. He has Salomon exercise, not fill it.”
Mr. Colton says he likes how it ended, he continued to do the
cross-country skiing, whether clas- exercises.
sic or skate, is a full-body activity.
But skate in particular is a killer
“I skied Vail one day short of
eight months postsurgery,” he
A Nordic Workout With Low Impact, High Rewards
upper-body workout, he says. “Pol- says. “I stopped most runs with no Don’t let snow keep you in the trail, tackle gradual hills and get an every two leg pushes. V2 is like a
ing is like doing massive amounts leg burn, skied all day with no fa- gym all winter. Both cross-country awesome workout.” medium gear; for each V your skis
of crunches. A double-pole stroke tigue and wasn’t eating bottles of and skate skiing are whole-body Skate-ski technique involves a lat- make in the snow, your arms stroke
is initiated from the abs, and after ibuprofen by midweek—something workouts that combine cardio and eral movement. To go forward, skiers twice; the pole tips hit the ground
an hour or two, you’re worked.” that hasn’t happened since I was a strength. push to the side with the legs and just before your ski does.
ski bum after college.” Maria Stuber, director of the Nor- use two poles for double-pole Compared with classic cross-coun-
The Workout He now performs exercises dic program for the Aspen Valley Ski strokes. try skis, skate skis are shorter and a
Mr. Colton does a 10-mile loop from the program two to three Club, says classic cross-country skiing “The idea of using your arms to- little stiffer, to give stability when
around the trails near his home as times a week. He warms up with is easier for most people to pick up gether as you move forward is coun- pushing off laterally. Skate poles are
many as four times a week. On high skips, side shuffles, jogging and get started with. “The move- terintuitive, especially for avid run- longer—between chin and nose
Wednesday nights, he and three to with high knees and jogging and ments tend to be more intuitive,” she ners and walkers,” she says. height—and skate boots are stiffer.
six friends meet to skate ski kicking his heels to his rear. He says. In cross-country skiing, the skis “Consequently, skate skiing can seem Ms. Stuber says both techniques
around the trails. “The post-ski holds plank pose while alternating are parallel, and each arm works with really frustrating… but once you pick are worth the time to learn. “A les-
pizza and beer is probably the rea- arm and leg lifts and will balance the opposite leg. it up, you can really get speed.” son can greatly improve your enjoy-
son we do it,” he jokes. “We’ve on a stability ball on his knees. He “It’s like a more dynamic version “V1” and “V2” are the two basic ment and efficiency,” she says. “Both
gone out in blizzards.” then hops on one leg across a of walking, with a glide phase,” says strokes. With V1, used primarily for are low-impact, great for joint health
On weekends, he goes to a room, pausing to hold the landing Ms. Stuber. “With little to no instruc- going uphill, the ski and the pole tips and burn more calories than most
nearby state park and will skate ski of each hop along the way. Other tion, someone can put waxless classic hit the snow at the same time, and self-propelling endurance activities.”
or cross-country ski 10 to 15 miles. exercises include leg lifts, opposite skis on their feet and move down the you use one stroke of the poles for — Jen Murphy
Patients like Mr. Avila at Mr. Avila, a 64-year old compassionate and reaching
Stanford often hear first pastor who lives in Palo Alto, out to a patient who had a
from someone who has been Calif., says that he had suf- difficult time,” he says.
in their shoes—Leilani fered through several diffi- Stanford’s investigation
Schweitzer, assistant vice cult surgeries in the past, found the nerve injury was
president for communication and the new injury was an “unanticipated outcome”
and resolution. “painful beyond words.” of his surgery—one that isn’t
Ms. Schweitzer’s 20- Mr. Avila says he hadn’t intended but not necessarily
month-old son, Gabriel, died considered hiring a lawyer the result of error or negli-
of complications from hydro- because friends warned him gence—and classified the
cephalus, or water on the going up against Stanford nerve injury as “permanent
brain, at Stanford’s children’s would be tough, and he was minor” on its severity scale.
hospital in 2005, when the initially skeptical when ap- Stanford waived Mr.
Pearl program was just get- proached by Ms. Schweitzer. Avila’s bills and offered com-
ting started. But the sincerity of the pensation.
DOUGLAS PECK/TRA STANFORD
An investigation found a apology she gave, expressing The entire process took
nurse turned off an alarm, regret and acknowledging six months, as they dis-
thinking it would be silenced his suffering, “was the first cussed issues including his
only in his room so he and time anyone ever said ‘I’m loss of income from being
his mother could sleep. sorry’ ” after a difficult hos- unable to work.
But because of a problem pital experience, he says. Physical therapy has
with the alarm-system pro- He learned of Ms. helped improve the use of
gramming, it was also Schweitzer’s own loss by his hand and he is back to
Leilani Schweitzer, left, and Abdul Hamamsy, right, risk management officials, met with Gary Avila turned off at the nurses’ sta- looking her up online after work part-time.
after a nerve was nicked during surgery on his arm at Stanford Hospital, in Palo Alto, Calif. tion. As a result, no one their initial conversation. “I’m not fully recovered,
came to Gabriel’s aid when a “I was overwhelmed that but well on the way and very
ERRORS
tion programs through train- nancial compensation to pa- shunt in his brain failed, she had gone through this, happy with the outcome,”
ing seminars. tients who experienced harm leading his heart to stop and now she was so kind and Mr. Avila says.
The federal Agency for or distress, even if an inves- beating.
Healthcare Research and tigation determines the stan- Despite her devastating
Continued from page D1 Quality has funded several dard of care was met. grief, Ms. Schweitzer says
cludes learning from adverse communication and resolu- At Stanford, patients may she was struck that hospital
events, than “loss.”) tion demonstration pro- receive up to $5,000 to cover administrators immediately
More states are adopting grams in recent years and out-of-pocket expenses. admitted the error, apolo-
laws that cap damages in plans to offer a guide to help “Sometimes we recognize gized, answered her ques-
malpractice cases, reducing hospitals create their own. that patients need to heal tions and promised they
incentives for plaintiff’s at- The programs require a and need answers, and even would make sure it never
torneys to file suit. commitment from hospital if we aren’t obligated to pro- happened to another child.
And some state laws al- administrators and physi- vide compensation, it is still She used a financial set-
low doctors to say they are cians to be transparent the right thing to do and we tlement (its amount undis-
sorry without the apology about risks and adverse want to make them as whole closed under their agree-
being used against them in events. Patients can still seek as possible,” says Jeffrey ment) to start a nonprofit to
court as evidence of wrong- legal representation at any Driver, chief executive of the help families with hydro-
doing. time. Risk Authority Stanford, a cephalus and became a vocal
The Collaborative for Ac- Hospital staff are trained subsidiary of Stanford patient safety advocate.
countability and Improve- to report problems as soon Health Care and Stanford After serving as a consul-
ment, which is run by Dr. as they become aware of Children’s Health providing tant to the Pearl team for
Gallagher, is based at the them, without fear of pun- risk-management services to three years, she joined the
University of Washington ishment. Hospitals are ex- Stanford’s health-care insti- Risk Authority in her current
and includes Stanford, Beth pected to use findings from tutions and other clients. role in 2015.
Israel Deaconess Medical investigations to put preven- The Pearl program, which Ms. Schweitzer talks with
Center in Boston and the tive measures in place. he oversees, analyzes ad- patients by phone and meets
University of Michigan, as To encourage participa- verse events and classifies with them in person, often
well as malpractice insur- tion doctors may be offered them on a severity scale to accompanied by Abdul
ance providers and patient a reduction in their malprac- determine fair compensation Hamamsy, interim vice presi-
safety organizations. tice premiums. if needed. Emotional support dent of claims and litigation
It is working to spread Communication and reso- for patients and families is a operations at the Risk Au-
communication and resolu- lution programs can offer fi- big component. thority Stanford.
D4 | Tuesday, February 2, 2016 THE WALL STREET JOURNAL.
HEALTH & WELLNESS
The Self-Styled Healthy May Catch Fewer Colds

BY ANN LUKITS Subjects reporting fair to good research showed. Daytime sleepi-
health were more than twice as ness, and hyperactivity and inat-
Listening to your body could likely to develop a cold as those tentiveness were also reduced in
offer insights into the health of with excellent self-reported children who had surgery.
your immune system, suggests a health, the adjusted results Primary snoring affects about
study in Psychosomatic Medicine. showed. 10% of children and is the most
People who rated their overall Smoking and a high body-mass benign form of sleep-disordered
health as excellent were less index were related to poor health breathing, the researchers said.
likely to become assessments but didn’t affect the But recent studies have linked pri-
RESEARCH sick after being ex- association between self-rated mary snoring to increased blood
REPORT posed to a cold vi- health and susceptibility to colds, pressure, hyperactive behavior and
rus than those the researchers said. Self-rated poor school performance, suggest-
with poorer self- health and colds were also unre- ing it may not be so benign, they
rated health, the study found. A lated to rhinovirus antibody levels said.
history of having colds was unre- before the viral challenge.
lated to illness susceptibility. Caveat: The subjects’ history of
Self-rated health could be a allergy wasn’t assessed and could
Also: Surgery to curb
CHRIS REED FOR THE WALL STREET JOURNAL
marker for immunocompetence, influence their self-rated health snoring in young

or the capacity of a person’s im- and immunity, the researchers
mune system to resist disease, the said.
children may limit sleep
researchers said. It may be possi- disorders later.
ble to detect physical sensations Surgery Bonus: Surgery to
that are actually symptoms of curb snoring in young children
low-grade infections or other dis- may reduce their chances of devel- The current study involved in-
eases, they suggest. oping chronic sleep disorders in terviews with the parents of 248
Previous studies have associ- later years, according to a study in children treated for primary snor-
ated poorer self-rated health with Sleep Medicine. ing at the Tel Aviv Medical Center
higher white blood cell counts, a Surgery for snoring could also from 2006 to 2008. The children
marker for infection, and inflam- reduce children’s risk of hyperac- were 5.4 years old, on average, at
matory proteins called cytokines, tests, personality evaluations and 39, which can cause a cold-like ill- tive and inattentive behaviors, the an initial assessment, which in-
the researchers said. daily assessments of exercise, ness, the researchers said. The study suggests. volved overnight sleep testing,
The latest study, at Carnegie sleep and other health-related subjects’ cold symptoms were Children who snored through- called polysomnography. Over the
Mellon University in Pittsburgh, practices. Twenty percent rated monitored for five days. out the night, called primary snor- next two years, 26% of the chil-
used data from 360 volunteers, their health as excellent, 53% as A third of the participants met ing, had significantly fewer symp- dren underwent surgery to remove
ages 18 to 55, who participated in very good, 25% as good, and 2% the criteria for a clinical head toms of sleep-disordered their adenoids and tonsils, or just
two viral-challenge studies beas fair. cold, including a significant in- breathing five years after under- the adenoids. Surgery was the par-
tween 2000 and 2011. Over a two- The subjects were quarantined crease in nasal mucus, congestion going surgery to remove adenoids, ents’ choice and not recommended
week period, the subjects under- for six days and then given nasal and antibodies to cold viruses tonsils or both, compared with by a sleep specialist, the research-
went physical exams and blood drops containing rhinovirus type compared with pre-study levels. those who didn’t have surgery, the ers said.
Tonsils and adenoids, located in
the back of the throat, are part of
Measuring Hand-Grip Strength May Offer a Handle on Diabetes and Hypertension the body’s immune system, but re-
peated infections can cause swell-
Measuring hand-grip strength abnormal insulin metabolism, or in- Grip strength was measured ing that interferes with breathing.
may help to spot undetected Type 2 sulin resistance, a risk factor for three times in both hands with a About five years after the
diabetes and high blood pressure in cardiovascular disease and diabetes, device called a dynamometer. sleep-lab assessments, parents
people considered at low risk to de- the study suggests. The average strength of subjects were interviewed about their chil-
velop the conditions, says a study in The study, at the University of with undiagnosed diabetes was 114 dren’s snoring habits, daytime
the American Journal of Preventive Florida in Gainesville, used data pounds. This compares with average sleepiness, inattentive or hyperac-
Medicine. from 1,467 people with a normal grip strength of 136 pounds in sub- tive behavior and breathing abnor-
Average grip strength was signif- body-mass index who were enrolled jects with diagnosed diabetes and malities during sleep.
icantly lower in normal-weight peo- in a larger study. Most were be- 154 pounds for those without diabe- Of children who didn’t have
ple with diagnosed or undiagnosed tween 20 and 64 years old and none tes. surgery, 34% tested positive for
diabetes than in those who didn’t had cardiovascular disease. In subjects with undetected hy- sleep-disordered breathing, com-
have the disease, the study found. About 4% had been previously di- pertension, grip strength averaged pared with 19% of those who had
It was also lower among people agnosed with Type 2 diabetes and 140 pounds, 134 pounds in those surgery. Scores for daytime sleepi-
with diagnosed or undiagnosed hy- 14.6% with hypertension. Blood with hypertension, and 158 in those ness and hyperactive and inatten-
pertension compared with those tests for glycosylated hemoglobin, with normal blood pressure. tive behaviors were also signifi-
with normal blood pressure. or HbA1c, a marker of longer-term Caveat: Undiagnosed diabetes cantly lower in children who had
The difference in muscle strength glucose control, indicated that just and hypertension were based on surgery.
between people with and without under 1% had undiagnosed diabetes. one physical exam and blood test. Caveat: Children’s sleep symp-
diabetes and hypertension could re- Multiple blood-pressure readings Grip strength was the only measure toms were reported by parents
ISTOCK
flect lower muscle mass and muscle showed 6.7% had undiagnosed hy- of muscle strength. and not measured objectively at
quality, which have been linked to pertension. —Ann Lukits the follow-up interview.
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THE WALL STREET JOURNAL. Tuesday, February 2, 2016 | D5
ARTS IN REVIEW
FILM ART
Avant-Garde String Theory ended up hap-

A Feast of pily paired
Astonishments: with the vi-
Charlotte Moorman sual artist
and the Avant-Garde, Frank Pileggi.)
1960s-1980s
ANTHOLOGY FILM ARCHIVE
An eccen-
Mary and Leigh Block tric who
Museum of Art never threw
Through July 17, then travels to anything
New York University’s Grey Art away, Moor-
Gallery and Salzburg, Austria man has left
the show’s six
Jean Epstein’s ‘The Fall of the House of Usher’ (1928). BY RICHARD B. WOODWARD curators—one
of whom is
The Mysteries of Cinema

T
Evanston, Ill. Ms. Roth-
he cellist Charlotte fuss—with al-
Moorman (1933-1991) most too
ing through light and shadow was an intrepid per- much material
Young Oceans of before speeding to his death. former who was central to to sift in pre-
Cinema—The Films of Based on two Edgar Allan avant-garde culture in New senting her
Jean Epstein Poe stories—the second is York during the 1960s and flamboyant
Harvard Film Archive “The Oval Portrait”—“The Fall ’70s—the “Jeanne d’Arc of life. (North-
Through March 5 of the House of Usher” con- New Music,” the composer w e s t e r n
tains such unforgettable im- Edgard Varèse dubbed her— bought the
BY KRISTIN M. JONES ages as burning tapers float- even if many weren’t sure artist’s ar-
I
ing over a moody landscape as how to evaluate her talents. chive and has
n his first book, the direc- a coffin is carried to a crypt. It Was she advancing the been organiz-
tor and film theorist Jean also makes powerful use of cause of free expression when ing it since
Epstein (1897-1953), an es- slow motion. As the film she played on stage in the 2001.)
sential figure in the develop- scholar Tom Gunning writes in nude or wore a bra of televi- In addition
ment of French cinema, de- his preface to the 2012 book sions or was attached to a to photo-
scribed how this budding art “Jean Epstein: Critical Essays flight of balloons or let her- graphs of her
form could reveal life “opened and New Translations,” edited self be covered in 20 pounds in many pro-
like a beautiful pomegranate.” by Sarah Keller and Jason N. of chocolate fudge? ductions, the
Famed for films including Paul, “Epstein’s manipulation Or did some of her antics exhibition has
“The Three-Sided Mirror” (“La of time in cinema revealed a become an excuse for men to museum loans
glace à trois faces,” 1927) and different rhythm to the uni- ogle her and for the public to of Paik’s video
“The Fall of the House of verse, a ballet of matter.” dismiss all unconventional sculptures and
Usher” (“La chute de la mai- In the late 1920s, Epstein art as a put-on? Was she, as a program of
son Usher,” 1928), Epstein ex- began an extraordinary series well as being collaborator films and vid-
TAKAHIKO IIMURA
plored cinema’s transforma- of films in Brittany, mostly and muse for Nam June Paik eos that
tive potential throughout his working with nonactors. The in his revolutionary mixed- shows her Charlotte Moorman performs Nam June Paik’s ‘TV
career. first was the starkly poetic media pieces, also his playing works Cello’ wearing ‘TV Glasses’ in New York, 1971.
Epstein’s work has long “End of the World” (“Finis stooge? by Paik (“So-
been neglected in the U.S., but Terrae,” 1929), a simple story These questions were de- nata for
new restorations, critical texts about men who burn seaweed bated in New York’s down- Adults Only”) and others. to add nudity. In 1967 Moor- (Bruce Conner, Jack Smith),
and translations have been al- on a desolate island for part of town artistic circles (espe- There are cellos that Moor- man performed half-naked in performance artists and
lowing renewed appreciation the year, living amid wind, cially by feminists) when she man fashioned, in neon or his “Opera Sextronique” at a dancers (Allan Kaprow, Yoko
for his still-vital films and smoke and fog. When a young was alive. And they are qui- from syringes (used for her theater near Times Square. Ono, Dick Higgins, Lucinda
writing. A substantial series man succumbs to an infection, etly raised again in the cele- cancer treatments), as well as Arrested for indecent expo- Childs) participated because
now at the Harvard Film Ar- his fevered state mirrors that bratory exhibition and cata- the felt-covered instrument sure, she spent the night in Moorman cajoled them.
chive, “Young Oceans of Cin- of the roiling sea. log “A Feast of that Joseph Beuys made for jail. The tabloid reporting on She had “a flair for getting
ema—The Films of Jean Ep- Also remarkable from this Astonishments: Charlotte her to use in one of his her trial, which resulted in a EVERYBODY involved, includ-
stein,” featuring numerous period is “Gold of the Seas” Moorman and the Avant- works. suspended sentence, defined ing the more sophisticated
restored prints, is the latest (“L’Or des mers,” 1932), filmed Garde, 1960s-1980s” at the her ever after in the public’s who think Charlotte is silly;
opportunity to reassess the Mary and Leigh Block Mu- mind as the “Topless Cellist,” and she always somehow
achievements of this visionary seum of Art, Northwestern Cellist Charlotte a label she resented when she pulled it off,” wrote the critic
artist. A filmmaker and University, as well as in Joan Moorman’s work wasn’t capitalizing on it. Jill Johnston in the Village
Raised in Warsaw and Swit- theorist whose Rothfuss’s entertaining new Moorman’s packrat habits Voice after one of these festi-
zerland, Epstein attended biography, “Topless Cellist: divided opinion, but have proved invaluable in re- vals.
medical school in Lyon, talent was as evident The Improbable Life of Char- one thing’s for constructing a less well-docu- Some feminist artists in
France, but abandoned medi- on the screen as it lotte Moorman.” mented phase of her career: the ’60s and ’70s were wary
cine for life in Paris and his According to Ms. Roth- certain: She was her role as an impresario. of Moorman. Carolee Schnee-
passion for literature and film, was on the page. fuss’s research, Moorman deeply serious about In 1963 she founded an an- mann thought her a “narcis-
having already begun his play- could have enjoyed a normal nual Festival of the Avant sist,” and the roster of her
ful and richly suggestive theo- middle-class American life. her artistic projects. Garde in New York. With al- festivals was overwhelmingly
retical writings. These diverse after Epstein had made the Growing up in Little Rock, most no resources except her male.
texts expand on concepts such transition to sound, a fable Ark., an only child who stud- own vivaciousness, she pro- The public was more flum-
as photogénie, explored as an about a box found on the ied music and won the “Miss Annotated scores of music duced it for 15 years, moving moxed. In a clip here from
expression of the mysterious shore by an alcoholic in which City Beautiful” contest at age she performed by New York’s it around the city into non- the Merv Griffin TV show, the
essence of cinema. powerful close-ups suggest 19, she was not a born rebel. avant-garde (John Cage, Or- traditional arenas for art and studio audience laughs ner-
Epstein’s debut film was a that the true treasure is life. Even after her move in 1957 nette Coleman, Paik) are music—Grand Central Termi- vously as she holds a string
documentary on Louis Pasteur. And in the ballad-like “Song of to New York, where she at- here, along with her copy of nal, Shea Stadium, Floyd Ben- down the back of Jerry Lewis
His first feature was the Bal- Armor” (“Chanson d’ar-mor,” tended the Juilliard School Karlheinz Stockhausen’s nett Field, and the World and uses him to perform
zac adaptation “The Red Inn” 1934), a young man in a fish- for a year and married a dou- “Originale (Originals),” a Trade Center. Paik’s “Human Cello.”
(“L’auberge rouge” 1923), fol- ing boat sees a vision of the ble-bassist, she envisioned piece from 1964 in which she The walls and cases in the A comedian in her own
lowed by his breakthrough girl he loves in the waves, a herself playing cello in an or- played the part of the “String exhibition’s second half are right, whose friendly smile
film “The Faithful Heart” (“Co- fantasy echoed at the heart- chestra or string ensemble. Player,” wearing only gauze. papered with her ads and and Southern accent could
eur fidèle,” 1923), which breaking conclusion. But performing the clas- Moorman was a key figure in programs for the festivals, disarm most hostile crowds,
screened on the retrospec- Epstein’s writings also ad- sics, Moorman decided, was a helping these composers to supplemented by the photo- Moorman knew that just be-
tive’s opening weekend. dressed innovations in sound bore compared to the offer- introduce unpredictability, graphs of Peter Moore, one of cause you weren’t afraid to
Throughout his career, Epstein that he pursued in his film- ings in New York’s experi- spectacle, danger and humor the few who attended all of look ridiculous didn’t mean
would work in various modes making. In “The Storm Tamer” mental music and art scene into the rarefied air of the these ephemeral events. Doz- you weren’t serious.
and genres, but with remark- (“Le Tempestaire,” 1947), a during the ’60s. Her marriage classical music concert. ens of composers (Varèse,
ably consistent artistry and spare melodic line is combined annulled, she took up with a One way to liberate the Cage, Morton Feldman, Lu- Mr. Woodward is an arts
originality. His admirers in- with the noise of wind and series of male mentors. (She audience, Paik believed, was ciano Berio), filmmakers critic in New York.
cluded Henri Langlois, co- waves rerecorded at different
founder of the Cinémathèque speeds. In a beautifully edited
Française, who is credited scene, a sorcerer blows on a MUSIC
with saving some of Epstein’s glass globe to calm the ocean
A Rustic Kind of Jazz

films by hiding them from the and save a young woman’s be-
Nazis. Epstein narrowly sur- loved as she watches, trans-
vived the Occupation, making fixed.
one of his most haunting Epstein also made “filmed
works after the war. songs,” such as his hauntingly BY MARTIN JOHNSON Mr. Lloyd led in the ’60s with Saxophonist Charles Lloyd.
I
Epstein made some of his lyrical “The Cradles” (“Les drummer Jack DeJohnette
most electrifying films of the berceaux,” 1932), in which im- n the ’50s and ’60s, jazz and pianist Keith Jarrett as a compelling, but Ms. Jones
1920s during a period when he ages accompanying a song by was shaken by a long run formative influence on his doesn’t quite get her
had his own production com- Gabriel Fauré include under- of premature deaths; development as a musi- song out of the
pany. In the glittering modern- water abstractions, rocking these days, by contrast, cian. And the Marvels’ shadow of Joe
ist enigma “The Three-Sided cradles, and vessels docked many senior musicians are sound—rustic, built Cocker’s early-’70s
Mirror,” a man takes on differ- and at sea. still going strong, not only along the keening lines version.
ent qualities when viewed His final film, the documen- playing but innovating. A of the guitars, and Mr. Lloyd has
from the perspective of three tary “The Fires of the Sea” prime example is the 77- leaning toward a jazz/ had a lifelong af-
lovers, but he feels most ar- (“Les feux de la mer,” 1948) year-old saxophonist Charles Americana fusion—has finity for guitar-
dently about his sleek automo- pays tribute to a network of Lloyd. been Mr. Frisell’s sig- ists; he liked the
bile, which he drives down a lighthouses that speak a uni- In the ’80s, Mr. Lloyd re- nature since he began bands he heard as
spiral ramp, hypnotically pass- versal language, recalling cin- emerged after a long ab- leading bands in the a boy growing up
ema in their use of lenses and sence, and his quartet, which ’80s. He and Mr. Lloyd in Memphis and his
light. A young man shown recalls the solemn intensity met in 2013 and played first bands in the
Pepper ... training to be a lighthouse of John Coltrane’s classic together at UCLA’s Royce ’60s that featured gui-
keeper almost gives in to ter- foursome of the early ’60s, Hall; Mr. Lloyd invited Mr. tarist Gábor Szabó. Mr.
And Salt ror of the stormy waters, but became one of the leading Leisz to perform at that Lloyd first made his mark
THE WALL STREET JOURNAL finds the necessary resolve. bands in jazz. Now, on his show, and the Marvels took with “Forest Flower: Charles
Epstein can be heard de- latest recording, “I Long to shape. Lloyd at Monterey” (Atlan-
D. DARR
scribing his own awareness of See You” (Blue Note), he is “I Long to See You” leads piece, Mr. Lloyd’s spry tic), a 1966 recording that
that danger in an interview ex- featuring a new band, the with Bob Dylan’s classic “Of Course, Of Course,” rides was a substantial pop hit. His
cerpted in James June Schnei- Marvels, and a new sound. “Masters of War,” but rather the sort of limber rhythms crossover success led to
der’s 2011 documentary focus- Through Feb. 20, he will tour found in Ornette Coleman’s guest shots on recordings by
ing on Epstein’s works set in North America and perform early work. It feels like a the Beach Boys, the Byrds
Brittany, “Jean Epstein, Young in several configurations, A musician with a holdover from the quartet, and the Doors. He retreated
Oceans of Cinema.” Asked by mostly with his new ensem- long history teams up while the Dylan work is from jazz recording and per-
an interviewer why he had ble. clearly a Marvel number. The formance and returned with
made so many maritime films, The Marvels has two hold- with a new band to recording goes back and “Fish Out of Water” (ECM), a
Epstein replied that he be- overs from Mr. Lloyd’s quar- create a new sound. forth between the two ex- 1989 recording that marked
lieved he was driven by his tet, drummer Eric Harland tremes before settling into his full-time return to the
own fear of the sea, compar- and bassist Reuben Rogers. the new style with a run of scene. His quartet has be-
ing it to Poe’s “Imp of the Per- But instead of a piano, which four pieces toward the end. come of one of the top
verse.” As his films and writ- was usually played by Jason than reproducing the searing Willie Nelson guests on “Last groups in jazz, but this new
ings reveal, Epstein’s boldness Moran or Gerald Clayton, the tone of the original, Mr. Night I Had the Strangest recording shows him eager to
was a lasting gift to cinema. new band showcases two gui- Lloyd is subdued. It is as if Dream” and Norah Jones tackle new challenges.
“After dinner, you’ll have to tarists, Bill Frisell and pedal- he is treating the song more covers the Billy Preston clas-
come out and see our or- Ms. Jones writes about film steel master Greg Leisz. Mr. as cultural artifact than pro- sic “You Are So Beautiful.” Mr. Johnson writes about
ganic compost heap.” and culture for the Journal. Frisell counts the band that test anthem. The second Both vocal performances are jazz for the Journal.
D6 | Tuesday, February 2, 2016 * * THE WALL STREET JOURNAL.
SPORTS
Has the NFL Become Un-Reffable?
As they try to navigate a slew of changes to the sport,
officials are under more pressure than ever—and it shows
BY KEVIN CLARK past, requires them to make calls
quicker and quicker. As more teams
For most of us, this NFL season try to complete passes over the mid-
was fine enough. There were flashy dle of the field (teams completed
quarterbacks, great coaching mo- 2,784 passes over the middle this
ments and receivers making unfath- season, the highest number in at
omable one-handed catches. But least a decade). Even if the possibil-
there was one group who would ity of pass interference doesn’t exist,
gladly forget 2015 if given the op- there may be controversy from a
portunity: the league’s increasingly complicated rule over what consti-
stressed-out referees. tutes a catch.
Not since 2012, when the NFL So what’s the upshot of all this? If
used under-prepared replacement it seems like the games are stopping
officials, have the zebras had such more frequently as officials discuss
an annus horribilis. penalties, it’s no illusion. They’re
When they weren’t being scruti- throwing a lot of flags.
nized by the NFL for missing calls or Since 2008, penalties are up 24%,
pilloried on social media, they were not counting those that were de-
forced to stand around while some- clined, according to Stats LLC. The
one in New York double-checked combined 30,070 penalty yards as-
their work on video: There were 201 sessed this year is a 31% spike, ac-
coaches’ challenges this year, the cording to Pro Football Reference.
most since 2011. Offensive holding penalties are up
by 21% this season from 2014, while
enforced defensive pass interference
‘Anything less than penalties have jumped by 49% since
perfection is 2008 to 232 this season.
There’s a growing belief it could
unacceptable and that get worse before it gets better.
has impacted officiating.’ Coaches and referees often joke that
there could be multiple penalties on
every play if the game was studied
Mike Pereira, a former vice presi- closely enough.
dent of officiating for the NFL, now It’s entirely possible that this is
an analyst at Fox, said that when he just an off-year for officiating. But
was running officiating in the 2000s, to many football insiders, there is
there was an instance “once a week- another thought crowding their
end” in which a call was blown and minds: As the sport changes rapidly,
nobody noticed outside one part of is it simply becoming too hard to of-
the league office. “Now it takes one ficiate?
mention, one tweet and that mis- Pereira said it’s hard to say if the
take, which wouldn’t have been no- referees are worse than they have
ticed in 2009, runs rampant in been, although he said there’s been
2015.” an uptick in what he calls “critical
GETTY IMAGES
“We are at a point with officiat- misses.” Jim Daopoulos, a longtime
ing that we have never been before,” NFL referee who is now a rules ana-
Pereira said. “I get striving for per- lyst on ESPN, said the instant feed-
fection but we are at a point that back loop is a huge problem because
anything less than perfection is unit’s starting to change the way refer- The number of penalties has risen 24% since 2008, not counting declined penalties, according to Stats LLC.
acceptable and in some ways, that ees make decisions. “Too often I see
has impacted officiating.” officials and the ball will be in the a perfect balance, something the Newton. “I think a lot of times refs said Daopoulos. “Once those big
Just as they become more vulner- air and you can see their minds rac- NFL has not yet found.) Bills coach let guys play and get away with that guys start running, they are consid-
able to public ridicule, the referees ing about what penalties the league Rex Ryan told the Buffalo News that stuff because he’s so big and he’s ered runners and they aren’t pro-
are trying to navigate a slew of fun- wants them to call, when you should “What used to be a catch years ago such a physical specimen. I think it tected like they are in the pocket.”
damental changes to the sport. The be thinking ‘is someone getting an is not a catch anymore.” works against him a lot of times in Players, like Kalil, are increasingly
athletes themselves—like Carolina advantage?’” he said. “They’ve be- The officials will play a big role in that regard because he can take a hit voicing their gripes. Gronkowski, an
Panthers quarterback Cam Newton come more hesitant about making the Super Bowl on Sunday, when and he can get back up,” he said. “It otherworldly 6-foot-6 athlete has
or New England Patriots tight end certain calls.” Newton’s Panthers take on the Den- really, really pisses me off.” tweeted suggesting he’s targeted for
Rob Gronkowski—are often unlike Rules complexities are another ver Broncos. Newton, at 6-foot-5, is Daopoulos said running quarter- offensive pass interference. The de-
any others who’ve played the posi- problem. Players falling to the almost impossible to officiate cor- backs, especially ones who don’t run bate over where to hit him legally is
tion, adding all kinds of complexity ground while completing a catch are rectly, some observers say. That’s out of bounds on runs, can compli- a weekly talking point. Before the
to interpreting plays. seeing their passes ruled incomplete because, according to teammates, he cate things. “With a guy like Cam AFC Championship game, Broncos
The NFL is also cracking down on and no one seems to know what the just may be too big. Center Ryan Ka- Newton, he’s bigger and stronger linebacker Von Miller said it’s “never
rough play to try to make the game answer is. (If you liberalize what a lil complained to an NFL Media pod- and he doesn’t give up the play like been taught” how to tackle a player
safer. And the no-huddle offense, ‘catch’ is, you would have more fum- cast in January that players don’t the other quarterbacks do, so he’s like Gronkowski. It’s apparently as
more popular than it was in eras bles, meaning the rule has to strike get called for enough late hits on always looking for the extra yard,” hard for officials as it is for players.
Heard on The Peanut-Butter-and-Jelly Warriors

BY BEN COHEN bother everyone he could about the
the Field The Golden State Warriors seem
to have everything an NBA team
PB&Js, even though he’s well aware
of the sugar in jelly, fat in peanut
butter and all that awful gluten in
could ever want. Until recently, bread. “I stuck to my guns,” Walton
though, they still felt there was said, “and I kept complaining.”
something missing from another He complained to performance
dream season: peanut-butter-and- coach Lachlan Penfold. He com-
jelly sandwiches. plained to flight attendants. He
In an effort to defend their NBA complained to anyone who would
title, Golden State’s training staff listen. Walton didn’t have to enlist
all but eliminated sugar on the any Warriors in the effort, he said,
team’s private plane this season. because he already knew whose
The idea was to make the Warriors side they were on. “Every player
eat healthier, and the players were loves them,” Walton said.
willing to accept the changes, say- But he wasn’t the only person in
ing goodbye to soda, cookies and a position of power with an opin-
candy while in the air. ion on the matter. Myers, too, is
What they weren’t prepared for picky about his perfect peanut but-
was a PB&J ban. And that began a ter and jelly. He likes homemade
months-long battle by the Warriors bread from a farmers’ market. He
Manchester City Snags
EZRA SHAW/GETTY IMAGES
to save their beloved peanut butter prefers crunchy peanut butter—but

Guardiola From Bayern and jelly. almond butter is better. And he al-
On the final day of European “You gotta fight for your ways eats the crusts. So any policy
soccer’s transfer window, the big- rights,” Warriors assistant coach outlawing PB&Js would be unac-
gest signing turned out not to be a Luke Walton said about bringing ceptable to the NBA’s reigning ex-
player but a coach: Pep Guardiola back the PB&Js. “If you believe in ecutive of the year.
will become Manchester City’s man- something you gotta fight for it.” That left the trainers in a jam.
ager this summer. The loss of PB&Js may have The Warriors won a months-long battle to get PB&Js back on the team plane. Once they learned that some ritu-
Guardiola (pictured), currently in been the most trouble anyone has als are impossible to interrupt, the
charge at Bayern Munich, will join given the Warriors all year. Golden The Warriors, for the record, are a ganic chips made with avocado oil. inevitable occurred last month: the
on a three-year contract, the Eng- State’s 44-4 record makes the War- Skippy team. Golden State’s coaches now drink PB&J embargo was lifted. The War-
lish Premier League club announced riors, at least at the moment, the Warriors players, coaches and black herbal tea when their coffee riors had won yet again.
Monday. He will replace current best team in NBA history. This is executives swear by PB&Js. Ste- runs out. Even the players gave up “Cookies are gone, soda’s gone,
manager Manuel Pellegrini, who will one way to sum up their season: phen Curry left a half-eaten peanut Gatorade and replaced it with bot- all that’s gone,” Walton said as he
leave the team at the end of the Other teams have real problems, butter and jelly sandwich on a tles of water sprinkled with Hima- carried a cupcake into the coaches’
season. and the Warriors have peanut-but- plate in his locker as he warmed up layan rock salt. locker room after a Warriors’ win.
The 45-year-old Guardiola is ter-and-jelly problems. for a recent game. Walton has been Every team in the NBA is trying “But the PB&Js are back.”
widely regarded as one of the The simple American sandwich known to carry several PB&Js with to eat healthier, but the stakes for It’s still a mystery to some War-
game’s best managers and is on has become a significant part of him at once. Warriors general man- the Warriors are higher than they riors players why PB&Js were sud-
course to lead Bayern to a third NBA culture. PB&Js are as much a ager Bob Myers may enjoy them are for anyone else, and not only denly available again. They didn’t
successive league title. In his first part of a player’s daily life as the more than anyone. “It’s my desert- because they’re chasing back-to- know if the pressure from Walton
major coaching role at Barcelona, pre-game nap. Even rookies learn island meal,” Myers says. back championships and the NBA- finally told or if someone else was
Guardiola was the architect of a to subsist on them right away. New The PB&J prohibition that record 72 wins. There’s another pulling strings behind the scenes.
possession-oriented style of play York Knicks sensation Kristaps Por- rocked the Warriors’ came from reason for their added incentive: “Somebody made a call,” Living-
that led the club to 14 trophies in zingis, for one, had never tried a the strength and conditioning staff The Warriors will fly more than ston said. “Probably Steph.”
LUKAS SCHULZE/EUROPEAN PRESSPHOTO AGENCY
four seasons and paved the way PB&J as a child in Latvia. Now he’s that was hired after Golden State 50,000 miles this season—the most Golden State guard Andre Ig-
for its era of dominance. In all, yet another addict. won last season’s title. One of the in the NBA. uodala has a similar theory. Ig-
Guardiola has coached in 239 top- The Warriors are unlike most first things the new trainers did That’s why the Warriors weren’t uodala said the Warriors are smart
flight matches, winning 187 and los- NBA teams in many ways, but was rethink the team menu—which completely opposed to watching to avoid eating sugar—with one ex-
ing just 19. there’s nothing exceptional about meant no more post-game pizza, what they ate while in the sky. ception. “Steph likes peanut butter
Yet the timing of the announce- their consumption of PB&Js. On the no more cookies and, worst of all, They just couldn’t let the PB&J ban and jelly,” he said, “so we’re gonna
ment raised eyebrows. City sits sec- training table in their locker room no more PB&Js on the plane. “They stand. “We had to get those back,” let that slide.”
ond in the Premier League stand- before their games are all the stan- cleaned house,” forward James Mi- Golden State guard Shaun Living- Curry was sitting in the adja-
ings and remains in contention for dard ingredients: bags of whole chael McAdoo said. “Sugar has ston said. cent locker when he overheard Ig-
four trophies this season, but risks wheat and 12-grain bread, a can of been done away with.” The backlash began with Wal- uodala. He immediately looked up
undermining its season with news Smuckers strawberry jam, a jar of The PB&Js weren’t the only ton. When he wasn’t coaching as from his phone and over at his
of Pellegrini’s ouster at the end of extra crunchy peanut butter and a thing to go. A smorgasboard of Steve Kerr’s interim replacement, teammate. And then he nodded
the season. —Jonathan Clegg bigger jar of creamy peanut butter. cheeses was swapped out for or- Walton went out of his way to along in agreement.

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