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DJIA 23883.09 À 133.33 0.6%
What’s
News
Business & Finance
isney said the pandemic
D took a $1.4 billion bite
out of its earnings and de-
tailed how the global eco-
nomic fallout would affect
every part of its business for
the foreseeable future. A1
 Airbnb’s CEO told employ-
ees the firm is slashing 1,900
jobs, a quarter of its work-
force, and cutting investments
in noncore operations. B1
 Wendy’s is limiting menu
items, including hamburgers,
at some locations as closures
of meat plants start to af-
fect restaurant supplies. B1
 AIG, Prudential and All-
state posted first-quarter
earnings revealing the
pandemic’s wide-ranging
effects on the insurers. B1
 California sued Uber
and Lyft for allegedly mis-
classifying their drivers as
independent contractors
instead of employees. A3
 The U.S. trade deficit
widened in March as the
economic shock related to
the pandemic held down
both imports and exports. A2
 U.S. stocks rose, with
the S&P 500, Dow and
Nasdaq gaining 0.9%, 0.6%
and 1.1%, respectively. B11
 Occidental Petroleum is
examining ways to lessen its
debt load following a his-
toric plunge in oil prices and
an ill-timed acquisition. B2
 Fiat Chrysler posted a net
loss of $1.86 billion for the
first quarter, as lockdowns
took a toll on car sales. B3
 AbbVie agreed to divest
several assets to settle the
FTC’s objections to its pro-
posed Allergan acquisition. B5
World-Wide
 The Trump administration
is considering disbanding the
White House’s coronavirus
task force, as the pathogen
continues to spread around the
country and a key model pro-
jected that the current num-
ber of U.S. deaths could nearly
double this summer. A1, A4
 A government vaccine
specialist who was moved out
of his job alleges that HHS re-
sisted his warnings about
the dangers of the virus. A4
 ICE is working with 3M,
Amazon, Pfizer and other
companies to curtail a
flood of counterfeit medical
gear entering the U.S. A6
 The Trump administra-
tion is pressing the EU
to support an international
inquiry into China’s han-
dling of the coronavirus. A7
 French doctors have dis-
covered a case of the corona-
virus dating from late De-
cember in a man who was
hospitalized near Paris. A7
 Researchers have begun
giving healthy U.S. volun-
teers an experimental coro-
navirus vaccine developed
by Pfizer and BioNTech. A6
 Justice Ginsburg was
admitted to the hospital for
nonsurgical treatment of a
gallbladder condition, the
Supreme Court said. A3
 Trump chose the politi-
cally contested state of Ari-
zona for his first trip away
from the East Coast since
the coronavirus outbreak. A4
 Venezuela said it was hold-
ing two Americans among
those captured in what was
called an incursion aimed at
toppling the government. A16
CONTENTS
Business News...... B5
Capital Account.... A2
Crossword.............. A12
Heard on Street. B12
Life & Arts......... A9-11
Markets..................... B11
s 2020 Dow Jones & Company, Inc.
All Rights Reserved
* * * * * * WEDNESDAY, MAY 6, 2020 ~ VOL. CCLXXV NO. 106 WSJ.com HHHH $4.00
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Real Games, Fake Fans Mark South Korea’s Opening Day Trump
Explores
Ending
Pandemic
Panel
Talk of disbanding task
force comes as new
projection sees deaths
doubling across U.S.
BY ANDREW RESTUCCIA
WASHINGTON—The Trump
JEON HEON-KYUN/EPA/SHUTTERSTOCK
administration is considering
disbanding the White House’s
coronavirus task force, adminis-
tration officials said, as the vi-
rus continues to spread around
the country and a key model
projected that the current num-
ber of U.S. deaths could nearly
double this summer.
President Trump confirmed
STANDING ROOM: Images of team supporters were printed on banners displayed in the otherwise empty stadium in the discussions during a trip
Incheon, South Korea, as the country’s baseball season officially opened Tuesday after a delay because of coronavirus. to Arizona on Tuesday, saying
the government was consider-
.
ing setting up a new group fo-
cused on “safety and opening.”
ly
Health Crisis Slams Disney,
The administration’s move
comes amid concerns by some
health experts about a second
on outbreak of the virus as states
increasingly relax economic
But More Bloodletting Ahead restrictions.
“We’re going to put the
flame out,” Mr. Trump said
us ,
about the outbreak, adding
l
that “we can’t keep our coun-
e
al a
BY ERICH SCHWARTZEL how the global economic fall- more widespread globally only try closed.”
The empire Robert Iger built
out would affect every part of
its business for the foreseeable
in the final few weeks of Dis-
ney’s fiscal second quarter. THE Mr. Trump, a Republican,
said he would continue to con-
ci on
at Walt Disney Co. ruled Holly- future. Disney’s net income for the CORONAVIRUS sult with doctors and public-
PANDEMIC
wood last year, with box-office Total operating income for quarter fell 91% to $475 million, health officials in the adminis-
blockbusters, capacity crowds the three months ended March due to both the impact of the tration.
at theme parks and new 28 fell 37% from a year earlier virus and accounting for the Vice President Mike Pence
streaming service with sub- to $2.4 billion, the world’s larg- consolidation of assets acquired said earlier Tuesday that senior
er s
scribers in the millions. est entertainment company in its 2019 deal with 21st Cen- Trade deficit widens as aides are discussing shifting
This year brings an unwel- said Tuesday, while revenue tury Fox. exports, imports are hit, A2 the task force’s responsibilities
m er
come twist. The world’s largest rose 21% to $18 billion. Analysts have downgraded Digital grandparenting to individual departments and
entertainment company said The business impact of the Disney stock, envisioning a fu- becomes essential, A9 agencies. He said officials have
Tuesday the coronavirus pan- pandemic will likely be even ture defined by the highly con- begun talking with the Federal
With fewer flights, air cargo
demic took a $1.4 billion bite more pronounced in the cur- tagious virus, even as stay-at- Emergency Management
out of its earnings, with more rent quarter. Shutdowns that home orders are lifted and costs soar, B1 Agency, which has been leading
m rp
to come as executives detailed first began in Asia became Please turn to page A6 Please turn to page A4
Offices Prepare to Reopen
Justice Ginsburg Is Hospitalized
co Fo
With New Surveillance Tools
Technology will measure staff proximity and track workers’ health
BY KONRAD PUTZIER AND CHIP CUTTER cluding some of the nation’s biggest banks,
manufacturers and energy companies.
Many Americans heading back to the fac- Advertising giant Interpublic Group of
n-
tory and the office as the coronavirus pan- Cos. is exploring dividing its 22,000 U.S. em-
PATRICK SEMANSKY/ASSOCIATED PRESS
demic eases will soon notice that their every ployees into three separate groups, accord-
move is being watched or recorded. ing to perceived health risks, which could in-
In Midtown Manhattan, thermal cameras clude age. Workers could be asked to
no
will measure body temperatures as employ- disclose medical and other personal informa-
ees file into a 32-story office tower at tion about themselves and, in some cases,
Rockefeller Center. The building’s owner, family members.
RXR Realty, said it is also developing a mo- Interpublic hasn’t signed off on the system
bile app for tenants to monitor—and score— yet, but it’s definitely “on the front burner,”
how closely their workers are complying said Eric Ossmann, chief medical officer at
with social distancing. the medical-advisory firm Vigilint Protective
Supreme Court Justice Ruth Bader Ginsburg had nonsurgical PricewaterhouseCoopers LLP said it is Health Services, which is advising Interpublic.
treatment for a gallbladder condition. She plans to take part preparing to launch this month a phone app Interpublic said it has only begun preliminary
in hearings by phone Wednesday from the hospital. A3 for employers that traces contacts by analyz- discussions about the system.
ing workers’ interactions in the office. More “It is a reasonable approach, if you can
than 50 clients have expressed interest, in- Please turn to page A8
Can You Mute That Tuba?
Imprecise Data Muddy INSIDE
Musicians Try to Practice, Quietly
i i i Virus Death Forecasts
Performers stuck at home find ways
BY BRIANNA ABBOTT havior but also because the
to play on without annoying neighbors AND PAUL OVERBERG scientific understanding of the
ISTOCK
virus is still evolving. Re-
The near doubling of coro- searchers have strained to pin
BY ANGUS LOTEN classical opera. navirus death predictions in a down basic bits of information
She says the makeshift closely followed model this about the disease, such as its LIFE & ARTS
Angela Scorese is preparing closet studio is a workaround week underscores a frustrating infectiousness. Undercounted Graduating high
her voice for a breakout role aimed at keeping the peace reality for officials weighing infections and deaths have
as Queen of the Night in a with other residents in her how and when to reopen soci- blinded public-health authori-
schoolers consider a
coming performance of the building. The performance is ety: Many basic facts about the ties and modelers alike to the gap year with college
Magic Flute, Mozart’s set for July. pandemic remain unknown. full scope of the pandemic. plans up in the air. A9
signature opera. The Across the coun- Epidemiologists have cre- That uncertainty plays out
26-year-old soprano, try, lockdown orders ated many computer models to in the range of predictions
an understudy for the to stem the spread of predict surge capacity in the from different modeling
CARLOS BARRIA/REUTERS
Opinion.............. A13-15 part, runs through a the coronavirus have health-care system and guide groups. As of the end of April,
Property Report... B6
Sports........................ A12 daily warm-up rou- performers from op- policy-making. These seek to academic models projected
Technology............... B4 tine in her Jersey era singers to heavy- predict how many people might anywhere from about 70,000 to
U.S. News............. A2-3 City, N.J., apartment. metal drummers be infected, how many will die, nearly 170,000 Covid-19 deaths
Weather................... A12
World News.......... A16
When she’s ready to stuck indoors—prac- and when and how transmis- in the U.S. by mid-May, accord-
sing, she steps into a ticing within earshot sion might slow or speed up. ing to data compiled by the
bedroom closet and of their working- But the models are only as Reich Lab at UMass-Amherst.
> shuts the door. from-home neigh- good as the underlying data On Monday, closely followed BUSINESS & FINANCE
“I have a lot of Soothing sounds bors. Many singers and knowledge about Covid-19, and scrutinized projections by Wendy’s is forced to
clothes in there that and instrumentalists the disease caused by the vi- University of Washington re-
help muffle the sound,” says who no longer have access to rus. Models are based on as- searchers nearly doubled the
cut back on beef
Ms. Scorese, whose part in- outside studio space are find- sumptions and estimates and expected number of Covid-19 because of meat plant
cludes singing a piercing High ing creative ways to make do. shift with new information, of- deaths to about 135,000 by closures. B1
F, one of the highest notes in Please turn to page A2 ten because of changing be- Please turn to page A6
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A2 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip

Risk-Based Distancing Is Key to a Reopen

When sures are delivering benefits co-writers. An official at ble to flu than adults, the perts usually looked only at possible. For example, there’s
French Prime in terms of deaths avoided, or IHME said the models now in- reverse is true with Covid-19. health in evaluating the costs a stronger case for keeping
Minister Éd- their costs. This highlights corporate mobility data to And while there’s no con- of pandemics, not consump- churches closed than schools
ouard Philippe the need for risk-based social project the impacts of differ- sensus on how contagious tion or productivity. because attendees are older
announced distancing that could poten- ent measures. children are, studies from “We…never thought about and churches’ economic con-
plans last tially save lives at less cost to Even detailed models don’t Australia and France suggest physical distancing at the tribution is smaller (their
week to reopen the French the economy. have strong empirical founda- schools may not be a signifi- level we’ve done now. The sit- spiritual contribution, of
economy, he warned: “It is a tions for projected impacts. cant source of transmission. uation we’re in now is un- course, is another matter).

E
fine line that must be fol- pidemiological models Henri Leleu, scientific direc- While the benefits of clos- precedented in a lot of ways. Masks, which cost almost
lowed. A little too much care- assume that social dis- tor at Public Health Expertise, ing schools aren’t clear, the We need to think about what nothing yet significantly re-
lessness, and the epidemic re- tancing saves lives by a French disease-modeling costs are: educators and sup- all the different impacts are.” duce the transmission of re-
starts. A little too much reducing contacts between in- company, said it is easy to port staff have been fur- spiratory viruses, easily pass

D
caution, and the entire coun- fected and susceptible people. project the impact of a total loughed, many parents can’t isease modelers are the test. Canceling elective
try sinks.” But the frequency and risk of lockdown. But with individual work because they are look- striving to craft nu- surgery may not (so long as
The balancing act facing contact varies considerably measures such as wearing ing after children, and many anced solutions using intensive care beds aren’t in
leaders like Mr. Philippe is depending on the age, gender masks, it’s “nobody has real students’ mental health and more granular data. Using a short supply), since it puts
difficult enough, but it’s ag- and health of the population, good data on this, [although] education have suffered. model of New York City with severe financial stress on
gravated by a dearth of es- household structure, and we know it’s effective because A 2008 study co-written by 148 inputs, from hypertension health-care providers and
sential information: Which work patterns. Not all models it’s scientifically sound.” Beate Sander, a health econo- to public-transit contacts, Mr. may discourage seriously ill
social-distancing measures of- capture those distinctions. Finally, epidemiological mist at the Institute of Health Leleu and six co-authors con- people from seeking care.
fer acceptable trade-offs in Early projections by the Uni- models don’t incorporate the Policy, Management and Eval- cluded releasing people under Given uncertainty sur-
terms of lives saved and eco- versity of Washington’s influ- costs of their measures, be- uation at the University of 60 from quarantine eight rounding Covid-19, no restric-
nomic costs incurred? ential Institute for Health cause that isn’t their job. Toronto, estimated a 26-week weeks before older people tions should be lifted lightly.
Thus far, the estimated Metrics and Evaluation as- Some mitigation measures school closure would cost would save far more lives Ms. Sander said schools
value of lives saved by social sumed a common behavioral may have incurred steep costs $2,700 per resident due to than keeping everyone under should only be reopened care-
distancing exceeds the likely response to a single set of so- for questionable benefit. For lost work by parents, teachers quarantine for even longer. fully, starting with the youn-
economic cost. But that may cial-distancing measures, ac- example, many governments and other professionals. For A definitive cost-benefit gest pupils, rotating classes by
not always be true. For one cording to a study of pan- closed schools because that is the U.S., that would translate accounting of every such day of the week. “Watch and
thing, those estimates might demic models by economist part of the tool kit for pan- into roughly $1 trillion in to- measure is probably impossi- see, if infection rates don’t go
change. More important, that Christopher Avery at the Har- demic flu. But whereas chil- day’s dollars. ble. But as evidence grows, up, expand.” And of course,
doesn’t reveal which mea- vard Kennedy School and four dren are much more vulnera- Ms. Sander said health ex- qualitative rankings should be test as much as possible.

U.S. WATCH
TRADE
March Trade Deficit
U.S., U.K. Formally Expanded as Global

.
Begin Negotiations

ly
The U.S. and the United King-
dom formally launched negotia-
tions toward a trade agreement on Crisis Deepened
Tuesday, an effort to draw the
two economies together as the BY DAVID HARRISON the virus spread around the
U.K. exits the European Union world, prompting many busi-
and the coronavirus threatens The U.S. trade deficit wid- nesses to close operations,
us ,

the world economy. ened in March as the eco- which caused job losses, and
l

President Trump and Prime nomic shock related to the many governments to issue
e
al a

Minister Boris Johnson have global coronavirus pandemic stay-at-home orders, which
made the negotiations a priority held down both imports and held down consumer spending.
as Mr. Johnson seeks close trad- exports. The lockdowns likely have
ci on

ing relationships outside Europe The deficit rose 11.6% to a produced a global recession,
and Mr. Trump looks to build a seasonally adjusted $44.4 bil- further reducing demand.
ERIC GAY/ASSOCIATED PRESS

network of two-way deals that lion in March from $39.8 bil- The Tuesday report offered
he feels can offer better advan- lion in February, snapping two an early glimpse at the effect
tages to the U.S. than multina- months of declines, the Com- of those lockdowns on travel
er s

tional or global tie-ups. merce Department said Tues- and trade. Travel into the
Tariffs between the two day. Imports dropped 6.2% to U.S.—counted as an export in
m er

economies are already relatively $232.2 billion in March, the trade statistics—was down
low due to existing agreements lowest figure since October 45.3% in March from the pre-
at the World Trade Organization, COVERED: Anderson High School senior Teyaja Jones was dressed for the times Tuesday in Austin, Texas. 2016. Exports were down 9.6% vious month. Overall services
so talks are expected to focus to $187.7 billion, the lowest
on eliminating most remaining officials who offered similar Bullard also weighed in. He re- term of the late Rep. Elijah Cum- since November 2016.
m rp

tariffs and setting rules of the views in separate appearances.
road for everything from labor “This is not a typical reces-
and the environment to agricul- sion. It’s going to be a very, very
ture and food sanitation. sharp contraction” in the second
—William Mauldin quarter, “but recovery could be-
co Fo
peated his expectation that the
economy will get back into ac-
tion during the second half as
well as his view that the shut-
down of much of the economy
mings. He took the oath of of-
fice with a protective mask in
his left hand.
Mr. Mfume, 71 years old, will
represent a Baltimore-area dis-
The March trade numbers
are likely to be the beginning
U.S. imports and
of a sustained fall in global exports probably
trade, said Brad Setser, a se-
nior fellow at the Council on
will decline in the

gin in the second half of the
FEDERAL RESERVE year, and that today is my fore-
cast,” Mr. Clarida said in an in-
Officials Hopeful for terview on CNBC.
Second-Half Pickup Chicago Fed leader Charles
Evans said Tuesday in a confer-
Federal Reserve Vice Chair- ence call that he was optimistic
man Richard Clarida said Tues- the economy would pick up in
day that he is looking for the the second half. He said that is
economy to begin a recovery slightly more likely than a sce-
from the coronavirus crisis in nario in which the economy suf-
the second half of this year, join- fers an extended downturn.
ing with two other central-bank St. Louis Fed leader James
n-
has a limited window before
even deeper damage starts to
happen.
—Michael S. Derby
WASHINGTON, D.C.
Mfume Takes House
Seat Cummings Held
Democrat Kweisi Mfume re-
joined the House on Tuesday af-
ter being elected to finish the
trict that has been hit hard by
the virus and its near shutdown
of the economy. Mr. Cummings,
who served in the House for
more than two decades, died in
October at age 68.
Mr. Mfume served in the
House from 1987 until 1996,
when he left to become chair-
man of the NAACP. He led the
civil-rights organization until
2004.
—Associated Press
Foreign Relations. The coming
months probably will show a
continuing decline in U.S. im-
ports and exports, he said.
“It’s safe to project that
April will see a much bigger
fall and there’s not likely to be
a significant recovery in May,”
Mr. Setser said.
Separate surveys of pur-
chasing managers found that
U.S. services businesses saw
their steepest drop in activity
coming months.
exports fell 15.3% on the
month to $59.6 billion, the
lowest since December 2013.
The collapse in oil prices
also contributed to slowing
trade volumes in March. Im-
ports of petroleum products
were down 21.9%, while exports
fell 13.2%.

in April since the last reces- Exports of cars and car

sion. parts were down 17.9%, re-

Musicians Mr. Bianchi now spends up

to two hours a day playing clar-
the fifth-floor window of his
uptown Manhattan apartment.
The Institute for Supply
Management’s nonmanufactur-
flecting both closed factories
in the U.S. and a drop in global
no

inet in his 1998 Saturn station He performs every night at 7 ing index fell to 41.8 in April, demand. Imports were down

Play On wagon, parked on Fifth Avenue

near Washington Square Park.
New York state imposed a stay-
p.m., timed to coincide with the
city’s nightly salute to medical
workers, he says. Mr. Ostwald,
down from 52.5 in March and
the lowest reading since
March 2009. And the private
8.9% from the previous month.
The International Monetary
Fund predicted last month

At Home at-home order on March 20.

Mr. Bianchi says he sits be-
hind the steering wheel, be-
cause “sitting alone on the pas-
Continued from Page One senger side is just too weird.”
Though Ms. Scorese hasn’t Masked pedestrians who stop
heard any complaints, she says beside the car snapping their
a singer friend in a nearby West fingers or singing along to
New York, N.J., apartment found scales are “more than a little
a note slipped under her door. distracting,” he says.
Rebecca Benitez, a 31-year-old In Brooklyn, jazz trumpeter
soprano practicing for the role Jason Prover says he has dialed
ANN O’SHEA
who led a weekly Louis Arm-
strong tribute band at Birdland,
the city’s legendary jazz club,
before the lockdown, says he
started doing the impromptu
shows about a week after he
recovered from coronavirus.
He says neighbors gather in
front of the building to hear
him play, and he’s added
“Somewhere Over the Rain-
bow,” “Amazing Grace” and
data firm IHS Markit said its
U.S. services index—a survey-
based measure of activity in
industries such as finance, ho-
tels and transportation—saw
its sharpest one-month decline
since the survey began in Oc-
tober 2009, falling to a sea-
sonally adjusted 26.7 in April
from 39.8 the prior month.
Several factors have de-
pressed global trade in recent
that global trade would fall
11% this year. The World Trade
Organization projects an even
steeper decline of between
13% and 32%, affecting all
global regions but particularly
Asia and North America.
A decline of such magni-
tude would be steeper than
during the global financial cri-
sis of 2008-09, the WTO said.
After that crisis, trade never

of the Queen’s lady in the same back practicing in his apart- other inspirational songs. “I’ve months. First, the emergence returned to its previous level,
production, says the unsigned ment to roughly two hours a received a lot of positive feed- of the new coronavirus in the WTO said. The same could
letter told her to pipe down “in day, from five or six hours. He back,” Mr. Ostwald says. As far China caused factories there happen now if the coronavirus
passive aggressive terms.” David Ostwald plays his tuba also uses a mute, a cone-shaped as he knows, there have been to shut down, disrupting sup- shock ends up being pro-
“I’m sure like us you’ve had out his window in New York. device that fits into the bell of no complaints. ply chains world-wide. Then longed.
to adjust to staying at home brass instruments to muffle the
and working,” the letter writer ing up. “Right when I reached sound, and plays into a pillow.
said, according to a copy pro-
vided by Ms. Benitez. “Indeed
the top of my vocal range I
heard ‘stop singing!’ and just
But the accommodation isn’t
ideal, he says. “I can’t warm up
CORRECTIONS  THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
while we’re uncertain what it is
you do, we imagine it has
froze in place,” he says.
Brian Perry, a 40-year-old
with a mute and you can’t re-
ally practice,” he says, adding
AMPLIFICATIONS (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters:
something to do with singing bass player in the Dallas Sym- that the mute changes the air- 1211 Avenue of the Americas, New York, N.Y. 10036
which we know because, unfor- phony Orchestra, says he and flow through his trumpet. Enterprise Holdings Inc. Published daily except Sundays and general legal holidays.
tunately, the walls in this build- his family perform 20-minute “My first gig back is going has reduced hours for part- Periodicals postage paid at New York, N.Y., and other mailing offices.
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Ms. Benitez says she has home. His wife plays violin and hotbed of noise complaints. nance article Tuesday about
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Samuel Green, a singer and keep their distance, but they neighbors, up 23% from the Notice to readers Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
trombone player in St. Paul, can hear us,” Mr. Perry said. So same period last year, accord- Wall Street Journal staff
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Communities
Try New Tack:
Test Everyone
In Northern California,
pilot programs seek to
track Covid-19 even in
the asymptomatic
BY DEANNA PAUL
Jyri Engestrom stood beside
four white tents recently in the
small seaside California town of
Bolinas as it tried to pull off a
feat few communities in Amer-
ica have accomplished: to test
every single person for the cor-
onavirus, whether they are
symptomatic or not.
A handful of local home-
owners and volunteers had se-
cured supplies and teamed with
researchers from the University
of California, San Francisco to
test everyone they could in four
days in late April. More than
1,800 people have been tested,
including nearly all the town’s
1,600 residents plus hundreds
of first responders.
“There’s no reason why we
couldn’t test everyone in the
California Sues Ride-Hailing Services
BY SEBASTIAN HERRERA
AND TIM HIGGINS
California sued Uber Tech-
nologies Inc. and Lyft Inc. for
allegedly misclassifying their
drivers as independent con-
tractors instead of employees,
a move that intensifies a bat-
tle between the ride-hailing
giants and their home state.
California, which is suing
the companies under authority
granted by a new state law,
said the decision to classify
drivers as contractors has de-
prived them of rights such as
paid sick leave and unemploy-
ment insurance.
“We believe it’s time for all
workers to be treated fairly,”
California Attorney General Xa-
vier Becerra said Tuesday. “In-
novation, regardless of what
Uber and Lyft tell you, doesn’t
require these companies to
* * * *
United States the same way,”
said Mr. Engestrom, a Bolinas
resident who led the initiative.
Due to supply shortages,
early testing efforts in the U.S.
were largely restricted to essen-
tial workers, the gravely ill, and
those who traveled to an inter-
national hotspot or had direct
contact with a known case of
the virus. But now, as supplies
increase and some states start
to reopen their economies, ex-
perts say broader testing is vi-
tal. Learning how many people
in an entire community con-
tracted the coronavirus will help
researchers understand who
needs to be quarantined, how
the virus spreads and where to
focus resources.
“The wildfire is clearly out.
Now, we’re looking for embers,”
said Robert Wachter, chairman
of the Department of Medicine
at UCSF. “If we find them, we
can prevent them from becom-
ing raging wildfires.”
The UCSF researchers are
running two Covid-19 tests on
participants—a viral diagnostic,
San Francisco, where Uber and
Lyft are based, and Los Ange-
les and San Diego.
Uber and Lyft have main-
tained that their drivers are
on
properly classified after the
us ,
state passed the so-called gig
l
economy law last year and
e
al a
Gov. Gavin Newsom signed it.
The law codified a test compa-
nies must pass to classify their
ci on
workers as independent con-
The state claims
er s
Uber and Lyft
misclassified drivers
m er
as contractors.
m rp
tractors, which enables com-
panies to avoid costly benefits
such as health care. Uber and
U.S. NEWS
In the seaside community of Bolinas, Calif., nearly all 1,600 residents have been tested for the coronavirus.
known as a PCR test, and an
antibody test. The former, done
with a swab, identifies who has
an active infection in less than
72 hours. The second is a blood
test done by finger prick that
tests for antibodies to show
who had the infection in the
past. Results of both are shared
with individual participants and
used for research.
The antibody tests are con-
troversial and vary widely in
quality and accuracy.
Experts disagree about
whether testing entire commu-
good jobs with access to af-
fordable health care and other
benefits is more important
than ever,” a spokeswoman for
Lyft said.
An Uber spokesman said
the company would contest
the action in court. “At a time
when California’s economy is
in crisis with four million peo-
ple out of work, we need to
make it easier, not harder, for
people to quickly start earn-
ing,” the spokesman said.
Lyft has said it has 325,000
drivers in California. Uber has
said it has more than 200,000.
The legal battle comes as
the coronavirus pandemic has
raised an unprecedented crisis
for the ride-hailing companies.
Ridership has plummeted as
governments have encouraged
or ordered people to shelter in
homes and closed nonessential
businesses in a bid to stop the
Wednesday, May 6, 2020 | A3
KATE MUNSCH/REUTERS
nities, including many healthy hardware stores, gloves from and took blood samples from
people, is a wise use of Amer- restaurant suppliers and masks more than 4,000 locals and
ica’s limited testing resources. from China. The first $100,000 tested 57% of the neighbor-
Some say it’s important to be- of a $350,000 budget came hood’s households.
gin such efforts now. from Bolinas homeowner Mark All of the 1,845 PCR tests
Mr. Engestrom and biotech Pincus, the founder of mobile taken in Bolinas were negative
entrepreneur Cyrus Harmon gaming company Zynga. for Covid-19, according to UCSF.
began calling local labs and UCSF researchers who were But in the Mission District,
learned that several had unused contemplating a similar project more than 2% of participants
capacity and could run thou- in nearby San Francisco’s Mis- who lived or worked in the
sands of tests per day. “It sion District agreed to collabo- neighborhood were actively in-
didn’t make any sense. The rate. fected with Covid-19. Of those,
story was that no one could get Testing began in the Mission more than half reported no
tested,” said Mr. Engestrom. District soon after it wrapped symptoms.
The organizers collected in Bolinas on April 25. In four —Jim Carlton
protective suits from local days, medical workers swabbed contributed to this article.
.
ly
reporting first-quarter finan-
cial results on Thursday.
Lyft last week announced it
was cutting 17% of its work-
force and instituting unpaid
furloughs and salary cuts for Pus Gms  yu
those who remain. The com-
pany reports first-quarter re- Pus Mm
sults on Wednesday.
The confrontation highlights
the difficulties in the pandemic
for some workers on the front
lines, including those making
deliveries, who may not have
benefits such as sick pay.
Many drivers have talked
about the conundrum they
face: Drive and risk getting
sick, or stay home and don’t
get paid.
“The pandemic highlights
the danger of the work these
essential workers are doing,”
San Francisco City Attorney
Dennis Herrera said.
Gov. Newsom said Tuesday  

 
mistreat their workers.” Lyft have said the law could spread of Covid-19. the issue predates the coronavi-  

The state, which seeks up take away flexibility for driv- Spending on Uber and Lyft rus. “The letter of the law has    
co Fo

to millions of dollars in civil ers and force them to work rides plunged 83% during the to be applied,” he said at a daily
penalties and to force the pre-scheduled shifts. week of April 20 in the U.S. news conference. “We want to
companies by a court order to “We are looking forward to compared with a year ago, ac- be cooperative and collabora-
reclassify their drivers and re- working with the Attorney cording to data from re- tive, but we as a state have to
  
   
store unpaid wages, also said
Uber and Lyft haven’t contrib-
uted state payroll taxes used
 '
to fund general health welfare
programs. The lawsuit was
filed with the city attorneys of
Home Prices Show Resilience Ginsburg
BY NICOLE FRIEDMAN In Hospital
no
The economy is shrinking,
But Will
businesses are closing and jobs
are disappearing due to the
Hear Cases
coronavirus pandemic. But in
the housing market, prices keep
chugging higher.
Home prices plunged during
the last recession after a hous-
ing crash caused millions of
families to lose their homes.
Home values could start to
erode again, especially when
mortgage forbearances end,
some economists warn.
But that hasn’t been the case
so far. The median home price
rose 8% year-over-year to
$280,600 in March, according
to the National Association of
Realtors. While buyer demand
has softened and sales fell 8.5%
that month from the prior
month, the supply of homes on
the market is contracting even
faster, recent preliminary data
shows.
“Demand absolutely just got
a kick in the gut, but at the
same exact time, so did sup-
ply,” said Skylar Olsen, senior
principal economist at Zillow
Group Inc.
Homes typically go under
contract a month or two before
the contract closes, so the
March NAR data largely reflects
purchase decisions made in
February or January.
Even by the end of last
month, many sellers were re-
luctant to cut prices. Only
about 4% of sellers cut their
prices in the week ended April
25, down from 5.7% during the
same week last year, according
to Realtor.com. (News Corp,
parent of The Wall Street Jour-
nal, operates Realtor.com.)
General and mayors across the
state to bring all the benefits
of California’s innovation
economy to as many workers
as possible, especially during
this time when the creation of
n-
Home prices have continued to rise, despite the start of the
pandemic and a decline in sales.
Median sales price of
existing homes, change
from a year earlier
8%
6 5
4 0
2 –5
0 –10
2017 ’18 ’19 ’20
Note: Existing home sales seasonally adjusted
Source: National Association of Realtors
Some sellers say they are
hanging tough because buyers
haven’t viewed their homes in
person or are reluctant to make
offers right now, not because
the asking price is too high.
They are waiting for stay-at-
home orders to ease before de-
ciding whether to lower the
price. “People really aren’t leav-
ing their homes” to go house-
hunting, said Sarah McMurdy,
who listed her Bethesda, Md.,
house in late March and then
opted to temporarily take it off
the market in April due to the
pandemic. “We’re not looking
to fire-sale the house.”
Real-estate brokerage Redfin
Corp. said its measure of home-
buying demand, which tracks
buyer inquiries, was down 15%
in the week ended April 26
compared with before the pan-
demic struck. Mortgage appli-
cations for home purchases
around the same time were
down 20% from a year earlier,
searcher Edison Trends.
Uber drivers have turned to
the food-delivery business
while ride-hailing has lan-
guished. The company has
pulled its guidance ahead of
U.S. existing-home sales,
change from a year earlier
10%
2017 ’18 ’19 ’20
according to the Mortgage
Bankers Association.
Total listings of homes for
sale, meanwhile, have hit a five-
year low, while the median list-
ing price was up 1% from last
year at $308,000, Redfin said.
The housing market has
been undersupplied for years.
During the pandemic it may get
worse. There were 1.5 million
units for sale at the end of
March, NAR said, down 10.2%
from a year earlier. Home-
owners are waiting to list their
houses, real-estate agents say,
because they have decided not
to move or they are worried
about letting buyers into their
homes during a pandemic.
While many economists ex-
pect home sales to tumble this
year, many forecasts call for
prices to climb slightly or hold
flat. Fannie Mae said in April it
expects the median existing-
home price to rise to $275,000
from $272,000 last year.
do what we’re going to do.”
Uber, Lyft and several other  ! "# $"%$
companies have amassed more &
than $110 million to pass a No-
vember ballot initiative to ex-
empt themselves from the law. Handcrafted in New York
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benign. She is expected to be in
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The justices are scheduled to
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Wednesday morning, including
one examining a Trump admin-
istration policy allowing em-
ployers to eliminate contracep-
tive coverage from their health
plans by claiming religious or
moral objections.
Because of the coronavirus
pandemic, the court for the
first time is hearing oral argu-
ments by teleconference—and
letting the public listen in live.
Those proceedings began Mon-
day, and after that session, Jus-
tice Ginsburg underwent outpa-
tient tests, the court said.
Justice Ginsburg, who has
served on the court since 1993, is
a four-time cancer survivor,
most recently being treated for a
tumor on her pancreas last year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Wednesday, May 6, 2020
New York Adult-Care Deaths Top 4,800
As the confirmed U.S. death
toll from the new coronavirus
grew to more than 70,000, new
data showed the pandemic’s
devastating impact on nursing
homes.
By Katie Honan,
Leslie Brody
and Jennifer Calfas
New York state has recorded
at least 4,813 confirmed and
presumed deaths related to the
coronavirus at nursing homes
and adult-care facilities, includ-
ing 71 confirmed fatalities at
one facility, according to state
data released Monday night.
The number has grown
quickly. An April 22 tally
showed 3,505 deaths in the fa-
cilities statewide. The figures
included confirmed cases and
probable cases from some nurs-
ing homes.
Globally, the number of
deaths rose past 257,000, with
EVAN VUCCI/ASSOCIATED PRESS
President Trump didn’t wear a mask at the Honeywell plant. A White House official said the facility told officials that masks weren’t required.
Trump Visits Arizona in First Foray
From East Coast Since Lockdown
BY MICHAEL C. BENDER
WASHINGTON—President
Trump, largely confined to the
White House during the past
two months, on Tuesday chose
the politically contested state
of Arizona for his first trip
away from the East Coast
since the coronavirus out-
break.
Like most Americans, Mr.
Trump has been mostly stuck
at home as the contagion has
swept the country. During that
time, opinion polls have shown
no
him falling so far behind likely
Democratic presidential nomi-
nee Joe Biden that Republican
allies complained he was jeop-
ardizing the party’s chances to
win key Senate races, includ-
ing in Arizona, people familiar
with the matter said.
The president’s political ad-
visers at the campaign and in-
Ousted Expert Says HHS Resisted Warning
A government vaccine spe-
cialist who was moved out of
his job last month alleges that
the U.S. Department of Health
and Human Services resisted
his warnings about the dangers
of the coronavirus and removed
By Stephanie Armour,
Alexandra Berzon
and James V. Grimaldi
him from his position for rais-
ing alarms about an antimalar-
ial drug President Trump had
touted as a potential treatment.
Rick Bright, who had led an
HHS division on biomedical re-
search, portrayed agency lead-
ership as dismissing his con-
cerns about the novel
coronavirus in a complaint filed
Tuesday with the Office of Spe-
cial Counsel, an independent
federal investigative agency.
The complaint alleges that ca-
reer scientists were concerned
the U.S. wasn’t properly prepar-
ing for a potential pandemic.
He also alleged that a con-
sultant representing drugmak-
ers had unusual sway inside
HHS, and that those drugmak-
3.66 million confirmed corona-
virus cases, according to data
from Johns Hopkins University.
Experts caution that reported
infection and death tolls world-
wide underestimate the extent
of the pandemic.
In the U.S., 2,100 people
were reported dead between 8
p.m. Monday and the same
time Tuesday, according to a
Wall Street Journal analysis of
Johns Hopkins data. The na-
tion’s death toll rose to 71,043.
It was the largest number of
daily deaths reported in nearly
a week.
In New York, the state had
previously given data on nurs-
ing-home deaths it acknowl-
edged were inconsistent.
Some nursing homes re-
ported deaths of people pre-
sumed to have the virus as
well as confirmed cases; oth-
ers didn’t. The new numbers
reflect the state’s effort to
have more comprehensive re-
on
us ,
l
e
al a
ci on
er s
m er
m rp
co Fo
side the White House told him
nearly two weeks ago that
data showed the damage was a
result of his combative perfor-
mance at nightly coronavirus-
task-force news conferences,
according to people familiar
with the discussion. Those
news conferences have since
been curtailed, and the White
House is considering disband-
ing the task force.
n-
Recently, the president has
taken a different approach, in-
viting reporters and cameras
into meetings in the Oval Of-
fice and holding events in the
East Room of the White
House. He left Washington Fri-
day to spend the weekend at
the Camp David presidential
retreat. His trip to Arizona to
visit a manufacturing plant
was the first time he has left
the mid-Atlantic region in
more than two months.
ers were awarded contracts for
the U.S. national stockpile over
the objections of internal advi-
sory groups.
Dr. Bright said he was re-
moved in April from his job
heading HHS’s Biomedical Ad-
vanced Research and Develop-
ment Authority, or Barda, and
transferred to the National In-
stitutes of Health in retaliation
for voicing concerns about the
safety of hydroxychloroquine.
Mr. Trump and other gov-
ernment officials have pro-
moted the antimalarial drug as
a possibly effective treatment
for Covid-19. The Food and
Drug Administration has
warned that hydroxychloro-
quine and another malaria
treatment have been linked to
serious heart problems and
should be used only on hospi-
talized patients or as part of
clinical trials.
HHS disputes Dr. Bright’s
characterization of the reasons
for his removal as head of
Barda, and officials said there al-
ready had been plans to remove
him following an outside consul-
tant’s reports in 2018 and 2019
P W L C 10 11 12
THE CORONAVIRUS PANDEMIC
Coronavirus Daily Update
As of 9:32 p.m. EDT May 5
1,203,892 71,043
U.S. cases
3,662,101
World-wide cases
Source: Johns Hopkins University Center for Systems Science and Engineering
porting that includes both
confirmed and presumed
cases.
Advocates for nursing-home
residents have said many facil-
ities were ill-prepared for the
pandemic, and many are
chronically understaffed. Ex-
perts say elderly residents of
facilities are particularly vul-
nerable due to their age and
the congregate nature of the
In Phoenix, Mr. Trump vis-
ited a Honeywell International
factory where the Charlotte,
N.C.-based industrial conglom-
erate has increased its produc-
tion of masks and other pro-
tective gear needed to
confront the virus.
“I’m going to pay my re-
spects to a great company and
a great state,” Mr. Trump told
reporters before leaving the
White House.
The president won Arizona
by 3.6 percentage points in
2016, and both parties view the
state as competitive again this
year. Mr. Trump was trailing
Mr. Biden in Arizona by 9 per-
centage points, according to an
April 7-8 poll from OH Predic-
tive Insights, a Phoenix-based
market-research firm. The
same poll in December showed
Mr. Trump ahead of Mr. Biden
by 2 percentage points.
on problems with the agency.
“Dr. Bright was transferred
to NIH to work on diagnostics
testing—critical to combatting
Covid-19—where he has been
entrusted to spend upwards of
$1 billion to advance that ef-
fort,” Caitlin Oakley, an HHS
spokeswoman, said in a state-
ment. “We are deeply disap-
pointed that he has not shown
up to work on behalf of the
American people and lead on
this critical endeavor.”
A spokeswoman for Dr. Bright
said he has not been given de-
tails on his new assignment and
has been out on sick leave.
The complaint includes
emails among HHS and other
agency staff that provide an in-
side look at the scramble
within the department as it
confronted the growing threat
of Covid-19, which first sur-
faced in China late last year.
Dr. Bright alleges in his com-
plaint that when he pushed on
Jan. 18 for disaster-leadership
group meetings to coordinate
planning for an outbreak, Rob-
ert Kadlec, HHS’s assistant sec-
retary for preparedness and re-
H T G K R F A M 1 2 3 4 5 6
U.S. deaths
257,207
World-wide deaths
living arrangements.
In New Jersey, there have
been 4,151 fatalities at long-
term care facilities. Health of-
ficials are ramping up testing
inside nursing homes to help
curb the spread of the
Covid-19, the disease caused
by the coronavirus.
While the situation in the
nation’s nursing homes re-
mains fraught, there were
Arizona Sen. Martha Mc-
Sally is also considered among
the most vulnerable incum-
bents this year for Republi-
cans, who are defending a slim
majority in the chamber. Mul-
tiple polls during the past
month have shown Ms. Mc-
Sally trailing her Democratic
challenger, former astronaut
Mark Kelly.
Ms. McSally traveled with
the president from Washing-
ton to Arizona on Air Force
One.
Mr. Trump didn’t wear a
mask at the factory despite
saying earlier in the day that
he would do so if required.
Signs at the factory indicated
that masks were required in
some areas the president vis-
ited. A White House official
said the facility told officials
they didn’t have to wear
masks.
sponse, replied by email saying
he wasn’t “sure if that is a time
sensitive urgency.” Dr. Kadlec
and HHS didn’t respond to re-
quests for comment.
The complaint includes a
number of email exchanges in
which Dr. Bright cited an emer-
gency shortage of respiratory
masks. In January, Chinese
mask makers stopped exporting
them to the U.S. to deal with
the Covid-19 crisis there.
He said he alerted Dr. Kadlec
about the potential problem
with the protective gear.
Dr. Kadlec on Jan. 23
“plowed through the abbrevi-
ated meeting, addressing topics
in a perfunctory manner and
paying short shrift to the con-
cerns that Dr. Bright raised,”
the complaint says.
Dr. Bright alleged that HHS
supply-chain officials “pushed
back” on continuing warnings
about mask shortages, accord-
ing to the complaint, “insisting
that there was no indication of
a supply chain shortage or of
issues with masks, and there-
fore there was no need to take
immediate action.”
7 8 9 O I X X **** THE WALL STREET JOURNAL.
189,791
U.S. recoveries
1,198,832
World-wide recoveries
signs of hope emerging from
New York. Gov. Andrew Cuomo
said the daily number of
deaths and new hospitaliza-
tions from the infectious dis-
ease continued to decline early
this week, signaling progress
for the hard-hit state where
19,645 people have died.
But the Democratic gover-
nor cautioned that reopening
too quickly could infect and
Disbanding
Task Force
Is Weighed
Continued from Page One
coordination of the federal gov-
ernment’s Covid-19 response
ly
since mid-March, about a tran-
sition plan. FEMA referred
questions to the White House.
The vice president said the
timeline for disbanding the
task force is still being finalized
but the administration is look-
ing at late May or early June.
Democrats argued on Tues-
day that the task force is an es-
sential part of the administra-
tion’s coronavirus response.
“It is unthinkable that Presi-
dent Trump would shut down
the main task force established
to coordinate our nation’s re-
sponse to the Covid-19 pan-
demic while we are still in the
midst of figuring out the health
and economic implications of
this pandemic,” said House Ma-
jority Leader Steny Hoyer (D.,
Md.), referring to the respira-
tory illness caused by the new
coronavirus. “It is a shameful
abdication of responsibility.”
Mr. Pence didn’t explain
what had prompted the discus-
sions to phase out the task
force, though he pointed to
what he characterized as the
administration’s progress in
mitigating the virus.
Senior administration offi-
cials said the shift is meant to
signal a new phase of the re-
sponse focused on states’ ef-
forts to scale back their lock-
down rules. Mr. Trump has
urged more states to open up.
A senior White House offi-
cial said the task force will
meet less regularly—likely
twice a week—as the adminis-
tration shifts its focus to re-
opening the economy and de-
veloping the vaccines,
therapeutics and testing system
needed to do so.
The shift, the official said, is
also intended to signal that the
country is away from the early
crisis stages. The official added
that the change isn’t intended
as a declaration of victory.
The task force’s physicians
would continue to advise Mr.
Trump, administration offi-
cials said. The task force had
begun meeting less often and
in smaller groups in recent
weeks, the officials said.
Asked whether Deborah
Birx, the White House’s coro-
navirus-response coordinator,
would continue in her role, the
vice president said he planned
to “keep her close every bit as
long as we need to.”
Anthony Fauci, the govern-
ment’s top infectious-disease
expert, would also remain the
director of the National Insti-
Drs. Anthony Fauci and Deborah Birx have played prominent public
roles in explaining the administration’s coronavirus response.
kill more residents. With state-
wide stay-at-home rules set to
expire in mid-May, the gover-
nor has outlined a phases ap-
proach that starts with con-
struction and manufacturing,
and progresses to the opening
of schools and movie theaters.
“There’s a cost of staying
closed,” Mr. Cuomo said.
“There’s also a cost of reopen-
ing quickly.
“A human life is priceless.
Period,” he said. “Our reopen-
ing plan doesn’t have a trade-
off.”
Texas Gov. Greg Abbott, a
Republican, accelerated his
state’s opening Tuesday, say-
ing salons and gyms would be
able to resume operations
within the next two weeks.
Hair, nail and tanning salons
will be allowed to open Friday,
with a limit of one customer
per stylist. Gyms will be al-
lowed to open May 18, at 25%
capacity.
tute of Allergy and Infectious
Diseases, an administration of-
ficial said.
Dr. Birx said the administra-
tion would continue to use data
to track the virus, even if the
task force is disbanded.
Mr. Trump established the
coronavirus task force in late
January. It initially was run by
Health and Human Services Sec-
.
retary Alex Azar. The president
later appointed Mr. Pence to
oversee the group.
Members of the task force,
including Dr. Birx and Dr.
Fauci, became household
names when they appeared
alongside Mr. Trump at daily
coronavirus briefings that of-
ten were televised.
The regular briefings were
largely phased out after Mr.
Trump’s allies warned that
they were hurting the presi-
dent politically. Mr. Pence’s
Tuesday briefing with report-
ers was off-camera.
The administration has
turned more of its attention to
state efforts to reopen, based on
guidelines such as a downward
trajectory in number of illnesses
and a falling rate of positive
coronavirus tests.
A new forecast by University
of Washington researchers
warned that deaths in the U.S.
could approach 135,000, nearly
twice the current confirmed toll,
by early August. Dr. Birx took is-
sue with the projections, saying
she doesn’t think the group fully
took into account mitigation
measures states are adopting.
So far, 41 states have out-
lined plans to reopen partially,
Mr. Pence said, with the other
nine planning to release plans
soon. He said the administra-
tion’s evolving response to the
pandemic had been effective,
despite criticism that the presi-
dent didn’t act soon enough.
The administration is closely
watching increases in cases of
Covid-19 in Chicago and Des
Moines, Iowa, Dr. Birx said.
The federal government is
working with state and local of-
ficials to conduct testing on
nearly 100% of the population in
emerging hot spots around the
country, such as meat-process-
ing plants. Dr. Birx said the ad-
ministration had observed high
levels of asymptomatic cases in
those areas, indicating that the
number of cases around the U.S.
could be much higher than what
is being detected.
Mr. Pence said that the ad-
ministration would send sup-
plies, including gowns, masks
and gloves, for workers in all of
the roughly 15,400 U.S. nursing
homes, which have been hard-
hit by the virus.
The administration is also
stepping up efforts to help com-
panies quickly develop a vaccine
for the virus. Mr. Azar said the
president has set a goal of man-
ufacturing 100 million doses of
coronavirus vaccine by the fall
and 300 million by January.
MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
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A6 | Wednesday, May 6, 2020
Vaccine Human Trials Begin in the U.S.
Healthy volunteers
receive first of four
candidates from Pfizer
and German company
BY JARED S. HOPKINS
Researchers have begun giv-
ing healthy volunteers in the
U.S. an experimental coronavi-
rus vaccine developed by
Pfizer Inc. and partner BioN-
Tech SE, the latest study ex-
ploring a potential defense
against the respiratory disease.
Researchers at the New
York University Grossman
School of Medicine in Manhat-
tan and the University of
Maryland School of Medicine
in Baltimore said Tuesday they
began injecting people with
Predictions
Hinge on
Uncertainty
Continued from Page One
August, based on the early
easing of social-distancing
measures and mathematical
changes to the model from the
university’s Institute for
Health Metrics and Evaluation.
That model has faced in-
creasing criticism from epide-
miologists; modelers said that
some of the critics haven’t been
following all of the updates.
But the many projection
models are valuable to public-
health officials and policy
makers, health experts said,
especially when they are look-
ing at the different projections
collectively. The overall mes-
sage, said epidemiologists: So-
cial distancing has been work-
ing, but the virus likely isn’t
going away soon.
“They are only as good as
the underlying data. And the
underlying data is flawed in a
number of ways,” Jennifer
Nuzzo, a senior scholar at the
Johns Hopkins Center for
Health Security, said last
month. “That said, we can’t
throw out the models. We still
need to make decisions, and
having tools to guide the deci-
sion-making is helpful.”
Models come in a variety of
flavors, but two of the major
methods at the forefront of
mapping Covid-19 involve
techniques called curve-fitting
and SEIR modeling.
Curve-fitting, previously
the method of the frequently
cited IHME model from the
University of Washington,
looks at world-wide data on
Covid-19 deaths and interven-
tions available—whether it is
from Wuhan, China, Italy’s
Lombardy region or New
York—and attempts to match
up the U.S. predictions with
the patterns it sees elsewhere.
When new data come in, or
social-distancing measures
no
Disney
Slammed
By Virus
Continued from Page One
businesses reopen.
Mr. Iger, Disney’s executive
chairman, sounded an upbeat
note for investors, saying the
company’s movies and parks
will be sought out once again
when lockdowns end.
“People find comfort in our
messages of hope and opti-
mism,” he said.
But the coronavirus pan-
demic and the economic shut-
down it triggered have exposed
a vulnerability to Disney’s once-
bulletproof business plan.
Unlike conglomerates that
encompass various holdings
without much functional inter-
connection, Disney is a finely
tuned franchise machine, capa-
ble of absorbing a set of char-
acters like the Marvel Studios
superheroes or the Star Wars
universe and using them to sell
movie tickets, action figures,
streaming-service subscriptions
and theme-park tickets.
The pandemic has caused
practically every part of that
machine to grind to a halt. The
close coordination that made
for lucrative use of characters
and story lines across differ-
ent parts of the company has
now led to a domino-like cas-
cade of problems throughout
the first of four vaccine candi-
dates from Pfizer and Ger-
many’s BioNTech.
The clinical trial will help
the researchers evaluate
whether the candidates are
safe, which produces the
strongest immune response
that could fend off the corona-
virus and what the dose
should be. Pfizer plans to ad-
vance the candidate that
proves most promising. Test-
ing of the vaccine candidates
in Germany began last month.
Results from the 360-person
study in the U.S. could come as
early as next month, but the
vaccine will still need to un-
dergo additional testing in
more patients, said Kathrin
Jansen, Pfizer’s head of vaccine
research and development.
Pfizer will track the prog-
Pandemic Outlook
These forecasts show
cumulative reported Covid-19
deaths since February and
forecasted deaths for the
next four weeks in the U.S.
Institute for Health
Metrics and
Evaluation
Youyang Gu
Model
Columbia
University*
Others
OBSERVED
us ,
al a
March April May June
ci on
*Among three Columbia models, this one assumed a 30% contact reduction. †Includes: Austria, Belgium, Denmark, France, Germany, Italy, Norway, Spain, Sweden, Sweden and United Kingdom
Sources: Centers for Disease Control and Prevention (forecast); Medrxiv, The Lancet, Oxford Academic Journals, Imperial College,
Centers for Disease Control and Prevention, National Center for Biotechnology Information, Eurosurveillance, Science, The New England Journal of Medicine Yan Wu /THE WALL STREET JOURNAL
change, the model adapts.
er s
However, other infectious-
disease experts and epidemiol-
m er
ogists said the IHME model
doesn’t take into account the
dynamics of the disease and
that it is likely too optimistic.
Modelers at the University
m rp
of Washington picked the
curve-fitting model based on
deaths, partially because there
was so little information on
other variables, such as infec-
co Fo
tions and transmissibility, said
Ali Mokdad, a professor of
health metric sciences at
IHME. But on Monday, the
group updated its method and
created a hybrid model, a
combination of curve-fitting
and SEIR, as the focus of pol-
icy makers has shifted from
wanting to understand surge
capacity and the timing of the
peak to questions about loos-
ening lockdown restrictions.
n-
The SEIR method—short for
“Susceptible,” “Exposed,” “In-
fected,” “Recovered”—places
people into those categories
its divisions.
Disney said the $1.4 billion
pandemic-related impact in the
latest quarter reflected not only
movie-release delays and
theme-park closures, but also
lower ad revenue at its TV net-
works and closed productions
on Broadway.
The company has raced to
cut costs, shaving executive sal-
aries and furloughing more
than 100,000 workers. On Tues-
day, Disney finance chief Chris-
tine McCarthy said the com-
pany board had decided not to
pay a semiannual dividend
scheduled for July, a move ex-
pected to preserve about $1.6
billion in cash.
In the quarter reported
Tuesday, the pandemic’s pri-
mary impact was on the theme-
parks division, with interna-
tional operations like Shanghai
Disney Resort closing well be-
fore the mid-March closures of
Disneyland and Walt Disney
World in the U.S.
The division that includes
Disney parks saw its operating
income fall 58% to $639 mil-
lion and revenue drop 10% to
$5.5 billion. Disney estimates
the pandemic eliminated about
$1 billion in operating income
for the division in the fiscal
second quarter.
Disney Chief Executive Bob
Chapek said Shanghai Disney-
land would reopen on May 11,
but in a phased manner that
includes limits on capacity,
mandatory masks for guests
and temperature screenings
before entry.
Performers who portray
THE CORONAVIRUS PANDEMIC
ress of the study to pick the
most promising vaccine candi-
date, Dr. Jansen said. The plan
is to “weed out, weed out,
weed out, focus on what’s
good and move on,” she said.
“It’s a quick elimination.”
A vaccine could be ready for
emergency use as early as the
fall if testing indicates it works
safely, Pfizer Chief Executive Al-
bert Bourla told The Wall Street
Journal last week, though the
company would keep studying
it in clinical trials.
The U.S. government has
the authority to grant limited
use of a vaccine or drug dur-
ing a health emergency, before
testing is complete.
Several potential coronavi-
rus vaccines have entered hu-
man testing, including candi-
dates from Moderna Inc. and
Epidemiologists track the average number of people infected by each person in an epidemic,
a statistic they call R0. Any value over 1 means an epidemic is spreading. In 20 studies reviewed
by The Wall Street Journal, estimates made before social distancing began ranged from 2 to 6.5.
Each study has an R0 estimate ( ) and 95% credible interval (
0 1
300,000 Wuhan, China
Hubei Province
China and other countries
China
200,000 Diamond Princess cruise
Europe†
The 2009 influenza pandemic began in Mexico in the late winter or early spring.
Researchers estimated its R0 variedMEDIAN
widely by region.
on
100,000 Mexico
Australia
Canada
l
China
e
0 Italy
U.S.
and then simulates transmis-
sion based on the biology of
the virus, along with many dif-
ferent variables, such as per-
sonal-interaction rates or po-
tential seasonality.
“People in these different
buckets are interacting with
one another, and every time a
susceptible person bumps into
an infected person, there’s a
probability of transmission,”
said Ron Brookmeyer, a bio-
statistician and dean of the
University California, Los An-
geles Fielding School of Public
Health. “This plays out in this
simulation over time, day by
day, and you can see the infec-
tion spreading.”
But public-health authori-
ties still don’t know how many
people have been infected, a
key number in figuring out fa-
tality and hospitalization rates,
as well as how many people
are still susceptible.
Death and case counts have
often been underreported or
lag behind other data, and
Disney posted a rise in revenue
but a significant drop in
operating income, as theme
parks and theaters closed.
Revenue by segment and
change from previous year
2Q 2020
Direct-to-
consumer &
international*
2Q 2019 $4.1B s260%
Studio
entertainment
$2.5 s18%
Parks,
experiences
and products
$5.5 t10%
Media
networks
$7.3 s28%
*Includes new Disney+ streaming platform
Note: Excludes intercompany eliminations
Source: the company
characters like Snow White
won’t wear masks but will keep
a distance from guests, Mr.
Chapek said.
The Chinese government is
limiting capacity at the park to
30%, or about 24,000 guests,
Mr. Chapek said. The park will
operate at capacities far below
that in its first days of reopen-
ing, he said.
Disney’s parks division had
been among its fastest-grow-
ing, and the company said
guest spending at its domestic
parks was up in the quarter
before the closures. They are
now shut down for the fore-
seeable future, presenting a
huge economic drain on the
the University of Oxford.
The vaccine efforts have ad-
vanced quickly compared with
typical vaccine R&D timelines,
though some experts have ex-
pressed concern over whether
testing will be rigorous enough
to adequately assess if the shots
can safely protect people from
contracting the coronavirus.
“The question is, what steps
are you skipping?” said Paul
Offit, director of the Vaccine
Education Center at Children’s
Hospital of Philadelphia, who
developed a vaccine for a com-
mon disease in young children
called rotavirus that causes di-
arrhea and vomiting.
Adding to the challenges of
deciphering whether a corona-
virus vaccine works, research-
ers say, is uncertainty about
how immunity develops
2 MEDIAN 4
they aren’t measured consis-
tently. Mathematically repre-
senting and predicting human
behavior, such as how well
people adhere to social dis-
tancing, is another challenge.
The modelers at Columbia
University make their projec-
tions with three different so-
cial-distancing scenarios: 20%,
30% or 40% reduction of per-
son-to-person contact in U.S.
counties with at least 10 cases,
and assume that social dis-
tancing increases with more
new cases and remains in
place indefinitely.
Some modeling groups use
mobility data from Google and
Facebook and cellphone pro-
viders.
And because there are still
so many unknowns, even some
of the most basic inputs can
vary, including the estimate of
the virus’s infectiousness. This
number, called “R0” (pro-
nounced “ARE-naught”) by ep-
idemiologists, represents a
simple idea: the average num-
company’s finances.
Other divisions posting year-
over-year declines in operating
income included studio enter-
tainment. The unit released
movies such as Pixar Anima-
tion’s “Onward” that were
forced out of theaters as exhibi-
tors closed.
Studio-entertainment reve-
nue rose 18% to $2.5 billion,
but operating income fell 8% to
$466 million.
The division that includes
the Disney+ streaming service
posted revenue of $4.1 billion
in a quarter that registered a
significant boost in subscribers.
But Disney is still spending
heavily on production and mar-
keting the service, and consoli-
dation of its Hulu holding led to
an operating loss at the divi-
sion of $812 million. Disney
controls Hulu following its
$71.3 billion acquisition of the
entertainment assets of 21st
Century Fox.
Disney+ has been a rare
bright spot for the company
since the pandemic led to
stay-at-home orders around
the world. The streaming ser-
vice had 54.5 million subscrib-
ers as of Monday, Ms. McCar-
thy said, up from 33.5 million
on March 28.
Like its parks division, Dis-
ney’s media networks segment,
which includes ESPN, will likely
take a big hit in the fiscal third
quarter as major sports leagues
stay on the sidelines.
Some ESPN efforts to engage
sports fans in alternative ways
appear to be paying off. A pop-
ular Michael Jordan documen-
* ***
against the virus.
Without that knowledge, re-
searchers are relying on their
understanding of previous cor-
onaviruses and antibodies that
neutralize viruses, said Kirsten
Lyke, a professor of medicine
at the University of Maryland
School of Medicine, who is
helping lead the Pfizer trial.
The Pfizer and BioNTech
vaccine will initially be stud-
ied in adults 18 to 55 years
old, and eventually will enroll
older volunteers, Pfizer said.
After receiving the first
dose, patients will receive a
second dose three weeks later.
Pfizer will test other doses
later on, including a single
shot, Dr. Jansen said.
Four out of every five study
subjects will get the vaccine,
while the remaining subjects
)
6 8
ly
ber of people that each in-
fected person infects if every-
one in a population is
susceptible, as is believed to
be the case with Covid-19.
A value less than 1 means
that an outbreak is headed for
control. Values that are just
slightly higher can indicate
significant spread. Studies
suggest that the 1918-19 influ-
enza pandemic carried a value
of about 1.8, the 1957-1958 in-
fluenza pandemic, about 1.65,
and the 2009 influenza pan-
demic, about 1.46.
For Covid-19, estimates of
this key value before social
distancing ranged from 2 to
6.5 in 20 studies reviewed by
The Wall Street Journal.
Estimates of infectiousness
also vary because the rate it-
self varies by place. Early data
came from Wuhan, China, a
city of 11 million residents that
is in the center of an urban re-
gion of 19 million. By compari-
son, most Americans live in
the suburbs of midsize cities.
tary has set viewership records,
executives said, and a remotely
hosted National Football
League draft was watched by
more than 55 million viewers
over three days.
For Mr. Chapek, the pan-
demic’s impact has been a bap-
tism by fire. He was named
CEO in late February, after run-
ning the company’s parks-and-
resorts division for about five
years, generating routinely
strong earnings via a combina-
tion of cost-cutting and record-
setting attendance at the parks.
Mr. Iger had been CEO for more
than 14 years and delayed his
retirement several times before
finally taking the post of execu-
tive chairman.
Disney shares have fallen
more than 20% from six
months ago, erasing months of
steady gains buoyed by Mr.
Iger’s bold bet to operate three
separate streaming services:
Disney+, ESPN+ and Hulu.
Movie theaters have opened
in a handful of communities,
and no major Disney title is
scheduled for release until a
live-action update of “Mulan”
hits theaters in late July, after
being postponed from March.
Disneyland and Walt Disney
World remain closed, and
workers said they expect the
company will limit capacity
upon reopening.
Disney risks opening “Mu-
lan” at a time when theaters are
operating at limited capacity.
“At that point, we’re hoping
that there’s some return of
semblance to normal,” Mr. Cha-
pek said.
THE WALL STREET JOURNAL.
will take a placebo.
The vaccine uses a gene-
based technology known as
messenger RNA. Messenger
RNA, or mRNA, carries in-
structions from DNA to the
body’s cells to make certain
proteins. An mRNA vaccine
has never been approved to
prevent any infectious disease.
Mark Mulligan, director of
the Vaccine Center at NYU
Langone Health, said he
doesn’t expect challenges en-
rolling patients.
“People, frankly, are sick of
this virus and they want to do
whatever they can to fight
back,” he said. “The public
recognizes that in order to
start returning to normalcy,
we’ve got to get people pro-
tected, and vaccines hold the
greatest hope for that.”
Agency,
Firms Aim
To Halt
10
Fake Gear
BY AUSTEN HUFFORD
U.S. Immigration and Cus-
toms Enforcement and compa-
.
nies including 3M Co., Ama-
zon.com Inc. and Pfizer Inc.
said they are working to cur-
tail the flood of counterfeit
masks, coronavirus tests and
other equipment entering the
country.
The agency’s center for in-
tellectual-property protection
said Tuesday that it was work-
ing with companies to identify
suspicious shipments and take
down suspect online listings
for masks and other gear. The
intellectual-property unit said
the companies have agreed to
share information and best
practices with it to combat
such trade.
“This information-sharing
effort allows the government
to then make more informed
decisions about targeting sus-
picious international ship-
ments,” said Lev Kubiak, chief
security officer for Pfizer,
which is working on an experi-
mental coronavirus vaccine.
As the new coronavirus has
spread across the U.S., govern-
ment officials, health-care ex-
ecutives and private citizens
have increased purchases of
masks and other medical gear.
The demand far outstrips do-
mestic capacity to make many
of those goods, even as 3M
and other companies have
ramped up production.
That has led to a surge in
imports of goods including
masks and protective gear—
some counterfeit or subpar—
from unproven vendors.
U.S. regulators and state of-
ficials have found a significant
number of imported masks are
falling short of certification
standards.
“It poses a serious health
concern to the American pub-
lic when they are wearing face
masks that they think have the
protection of N95 masks but
are really substandard,” Steve
Francis, director of ICE’s Na-
tional Intellectual Property
Rights Coordination Center,
said in an interview. ICE is a
division of the Department of
Homeland Security.
N95 masks are named for
the 95% of very small particles
they are certified to block, in-
cluding droplets containing
the virus.
The agency said it had iden-
tified more than 19,000 sus-
pect Covid-19-related domain
names with the help of the
companies in the partnership
and is working to take many of
them down.
U.S. Customs and Border
Protection has seized nearly
500 shipments of unauthor-
ized products, including pro-
tective equipment and prod-
ucts that purport to test for or
treat the disease, ICE said.
And agents from Homeland Se-
curity Investigations, an arm
of ICE, have opened 315 inves-
tigations and made 11 arrests
of people allegedly selling or
shipping improper goods.
Some companies also are
taking separate action against
counterfeit protective gear.
3M, a major supplier of N95
masks, has filed roughly 10
federal lawsuits in recent
weeks against entities the
company says are price goug-
ing or selling fake products.
“We are going to see a flood
of counterfeits hitting the U.S.
marketplace,” Mr. Francis said.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, May 6, 2020 | A7

THE CORONAVIRUS PANDEMIC

France Identifies Case

From Late December
BY MATTHEW DALTON
PARIS—French doctors have
discovered a case of the new
coronavirus dating from late
December in a man who was
hospitalized near Paris, the ear-
liest publicly identified Covid-19
infection outside China.
The case, in a man with no
history of travel to China,
changes the timeline of the
pandemic, suggesting that the
virus was spreading in Europe
at least weeks earlier than pre-
amining deaths in the months
leading up to the epidemic to
see whether people were dying
of undetected coronavirus
cases. One such effort found
the first known coronavirus
death on Feb. 6 of a 57-year-old
California woman. That death
came nearly three weeks before
one that authorities previously
considered the first in the U.S.
caused by the coronavirus.
Dr. Cohen and other doctors
at two hospitals northeast of
Paris examined samples of pa-

NG HAN GUAN/ASSOCIATED PRESS

viously believed and more than
a month before Italy’s outbreak.
The finding is a crucial step in
a global medical investigation
that is scrutinizing how the vi-
rus originated in China and
then spread to the West, infect-
ing more than 3.6 million peo-
ple and killing at least 252,000.
Doctors in Europe and the
U.S. are beginning to comb
tients who had been hospital-
ized with flulike symptoms in
December and January. After
setting aside samples of pa-
tients who tested positive for
other pathogens or who had
symptoms inconsistent with
Covid-19, the doctors were left
with 14 samples to be tested for
the new coronavirus. One pa- Police officers file past Wuhan Central Hospital, where a doctor was threatened with punishment for publicizing the virus, then died of it.
tient at Jean-Verdier Hospital,

U.S. Urges EU to Back China Probe

through medical records look-
ing for previously undetected
coronavirus cases. Those ef-
forts could help public-health
The case, in a man
with no history of
travel to China,
shifts the timeline.
in the working-class Paris sub-
urb of Bondy, tested positive.
The man, Amirouche Ham-
mar, went to the emergency
room on Dec. 27, after suffering
from cough, fever and headache
over the previous four days.
Mr. Hammar, 43, was coughing
up blood the night before.
“I had more and more trou-
ble breathing,” Mr. Hammar
said. “It was very painful.”
He was admitted to the hos-
pital’s intensive-care unit and
The Trump administration is
pressing the European Union
to support an international in-
quiry into China’s handling of
the new coronavirus, including
the origins of the pandemic, as
Brussels seeks to avoid taking
sides in an increasingly bitter
battle between Beijing and
Washington over responsibility
the U.S., the EU initially pro-
posed an international inquiry
to look into “lessons learnt
from the international health
response to Covid-19” to help
improve future pandemic re-
sponses. The EU proposal was
an early draft of a resolution it
wants adopted at the World
Health Organization’s deci-
the battlefield between China
and the United States, who
blame each other for the
events in a bid that has only
exacerbated their rivalry,” EU
foreign-policy chief Josep Bor-
rell said in a French newspa-
per interview last weekend.
The World Health Assembly,
the WHO’s general assembly, de-
“We count on our allies
and partners joining the
United States to ask the hard
questions that are needed of
China, as well as the WHO, in
order to prevent such an un-
checked outbreak in the fu-
ture,” a State Department
spokesperson said on Tuesday.
The European resolution fol-

.
then released after three days for the crisis. sion-making body this month. termines its policies and is the lows rising criticism by the U.S.
authorities understand when his condition improved. That proposal, however, fell forum for members to call for it and other governments of the

whether the virus spreads
quickly after an initial infec-
tion, or takes time to reach a
magnitude that would result in
significant numbers of deaths.
The French case indicates
that the virus could have been
circulating months before it
Two of the man’s children,
aged 10 and 4, fell ill days af-
ter Mr. Hammar. They too
were taken to the emergency
room and then recovered.
Mr. Hammar and Dr. Cohen
said he likely contracted the
on The U.S. is seeking an inter-
virus from his wife, who fell
us ,
By Laurence Norman
in Brussels and Sha
Hua in Hong Kong
national probe into whether
Beijing mishandled the conta-
gion in its early stages, result-
short of demands by the U.S. to
examine the origins of the con-
tagion—a focus Beijing has de-
nounced as Washington’s bid to
deflect responsibility for its
own handling of the out-
break. The EU proposal seeks
to avoid pinning blame for the
ly
to take action in a specific area.
In recent days, with the assem-
bly convening soon, intensive
negotiations have emerged over
the text of the EU proposal.
On Tuesday, an EU spokes-
woman said “a thorough under-
standing of the epidemiology of
slow reaction of China’s ruling
Communist Party in the early
days of the outbreak. Senior
White House officials have sug-
gested, without providing evi-
dence, that the virus may have
originated in a Chinese lab.
Beijing has responded by

infected enough people to mildly ill around Dec. 20. She ing in a global pandemic that pandemic on any single coun- the coronavirus pandemic is es- rejecting calls for an investiga-
l

start flooding French emer- works at a fish stand at a has killed 250,000 and crip- try and would come only when sential” for authorities to make tion and casting its own
e
al a

gency rooms with patients, large Carrefour supermarket pled the global economy. the immediate crisis has passed. “informed decisions.” People doubts on the virus’s origin,
said Yves Cohen, a French doc- northeast of Paris. Calls by Australian govern- The pressure from Washing- familiar with the negotiations suggesting without evidence
tor who helped lead the study. The World Health Organiza- ment officials starting in mid- ton for a robust international say some of these concerns are that the U.S. military intro-
ci on

“The important thing for us
is to understand how the virus
lives, how it propagates, to
fight it better,” Dr. Cohen said.
“The virus took more time to
tion said Mr. Hammar’s case is
the first publicly reported in-
fection outside China before
January of which the agency is
aware. “It is possible that
er s
April for an independent inquiry
quickly devolved into a testy
back-and-forth. Chinese ambas-
sador to Australia Cheng Jingye
in a local interview accused
inquiry into China’s manage-
ment of the pandemic leaves the
EU in what has become a famil-
iar bind, seeking a middle way
between two global powers.
reflected in the current text.
China hasn’t yet responded to
the new language.
A spokesman for China’s
mission to the EU said Beijing
duced it to China.
The WHO’s representative
in China, Gauden Galea, told
Sky News that China was con-
ducting its own investigations

generate the epidemic than we some infected people traveled Canberra of teaming up with “In my opinion, we need to was aware of the European into the origin of the outbreak
thought previously.” from Wuhan to other coun- Washington to attack China. look independently at what initiative but had no further but hadn’t yet invited the
m er

In the U.S., doctors are ex- tries at that time.” Wary of alienating China or happened, standing aside from comment. WHO to participate.

Fighting Bugs Comes In Handy

m rp

For U.K.’s Cybersecurity Chief

co Fo

As the new
coronavirus
forces big
changes in
how we
work, The Wall Street Journal
is looking at how different
people are coping with the
stresses and risks. For earlier
articles in the series, visit
wsj.com/makingitwork.
one’s security, but it’s not
the sort of external physical
or digital threat that we’re
used to, like terrorism or a
hostile foreign state.”
The 45-year-old chief of
the U.K. National Cyber Secu-
rity Centre is working from
home. He had planned to
leave the agency in late June,
but because of the crisis he is
staying through the end of
n-
ployees separated from safe-
guarded office networks, Mr.
Martin said. More U.K. re-
sources have been redirected
to supplying hospitals and
developing vaccines, raising
the stakes posed by hackers
seeking to disrupt companies
and medical researchers.
Mr. Martin runs the branch
of the country’s GCHQ elec-
tronic-intelligence agency re-

BY JENNY STRASBURG August. He then plans to sponsible for coordinating cy-

start teaching technology and bersecurity as part of broad
LONDON—A week into public policy at a university. counterterrorism and na-
Britain’s coronavirus lock- For now, entities central to tional security efforts. Much
no

down, Ciaran Martin pored
over data about the rising
tide of cyber scams targeting
pandemic fears and adjusted
logistics affecting almost
1,000 government staffers
now largely working from
home. He braced for a period
of rapid change.
The pandemic “isn’t a tra-
ditional national security cri-
sis,” the U.K.’s cybersecurity
boss said in an interview.
“Obviously it affects every-
MICHAEL BUCHER/THE WALL STREET JOURNAL
the virus response, like the
U.K.’s state-funded National
Health Service, are high on
his radar because of the new
vulnerabilities they face; pro-
tecting hospitals and other
critical infrastructure is a pri-
ority. Experts also are map-
ping out the post-pandemic
cybersecurity landscape.
In the near term, the po-
tential for cyberattacks has
risen, with governments and
companies stretched and em-
of his work involves working
with the public; a smaller
proportion is secret.
In week two of the lock-
down, Mr. Martin’s wife de-
veloped telltale coronavirus
symptoms. Her condition
was never critical. As she re-
covered at home, he juggled
meals and schoolwork for
two elementary-school-aged
children, and exercise for an
Irish water spaniel named
Belle with a penchant for in-
terrupting video calls.
The overall pace of pan-
demic cyberattacks has re-
mained mostly steady, Mr.
Martin said. But societal fear
and economic uncertainty
have altered the targets.
Scammers are capitalizing
on people’s need to obtain
face masks or tap financial
pearl perfection
aid. To help tackle the on- south sea pearl necklace
slaught of scams and malware,
Mr. Martin’s agency in April Brilliant luster. Rare beauty. Timeless elegance.
rolled out a central email ad- Twenty-nine white South Sea pearls ranging from 13mm
dress, where anyone can send to 15mm comprise this classically beautiful necklace.
suspicious emails for analysis. These luminous gems are far larger than the average
During the first week of pearl and each is matched perfectly in color, a rarity for
the program, around 25,000 pearls of this size. A white gold and diamond ball clasp
referrals from the public secures this elegant strand. 17” length. #31-0919
helped the agency identify
almost 400 “dodgy web-

sites,” on top of the 400 it

already flags in a typical
week, Mr. Martin said.
State-level espionage has
shifted as well. “The more
elite hackers from hostile
states are more interested in
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vaccines; it’s where sensitive
The pandemic ‘isn’t a traditional national security crisis,’ said [intellectual property] is, in
Ciaran Martin, who is staying in his post for an extra two months. terms of pharmaceuticals.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

THE CORONAVIRUS PANDEMIC

DANIEL NOVAK

A Young ER Doctor Captures

Hospital’s Battle to Save Lives
ABOVE: Dr. Duncan Grossman, an emergency-medicine resident in
Brooklyn, has a stage-one pressure ulcer on his nose from long
hours wearing an N95 mask. He sports a Harry Potter surgical cap
made by his mother-in-law. He was training in another service at
Maimonides Medical Center in Brooklyn when Covid-19 hit the
hospital. Dr. Grossman was soon reassigned to ICU-X, a
cardiothoracic surgical intensive care unit converted to handle
Covid patients. He brought his camera to work to ‘document the
progression of a novel disease in a hospital that couldn’t know
what to expect,’ Dr. Grossman says. ‘I was inspired by these people
who came to work every day to battle a new disease that no one

.
knows how to treat and could kill any of them.’

ly
ABOVE RIGHT: Doctors intubate a patient. Efforts are made to
minimize staff exposure to the coronavirus. Intubations are usually
performed by a team of four or more at Maimonides, which is a
teaching hospital, but now they are often done by teams of two.

FAR RIGHT: A doctor takes a break from his N95 mask. ‘Wearing a
mask all shift is uncomfortable,’ Dr. Grossman says. ‘We ran out of
on
the more comfortable N95s (if you can use that word) and
us ,

switched to one even less comfortable.’ At no time were front-line

l

workers without the recommended level of PPE, said a Maimonides

e
al a

Medical Center spokeswoman.

BOTTOM RIGHT: As the virus spread, protocols changed.

ci on

Triage later moved to a tent outside the hospital.

RIGHT: Dr. Josh Beckhusen, an ER pharmacy resident. ‘Our

pharmacists in the ER are unsung heroes. In addition to checking

DUNCAN GROSSMAN (4)

and correcting countless medication orders, they treat critically ill
er s

patients at the bedside, are actively involved in cardiac arrests, and

are a wealth of resources and knowledge,’ Dr. Grossman says. ‘I
m er

promised I would cook him dinner when this is all over.’

m rp

New Tools this place safe and resilient?’ ”

Massachusetts-based
health-care software company
about how to safely bring back
staffers in early April. After
consultation with Dr. Oss-
Covid-19 antibody testing, in-
cluding that some tests falsely
show people have antibodies
send a daily questionnaire to
workers early every morning,
asking staffers how they feel,
versity, who studies digital
surveillance.
“We’re in a bit of a Wild

Monitor
co Fo

Athenahealth Inc. is consider- mann, the company is explor- to the virus. said Larry Gadea, chief execu- West,” he said. “In the absence
ing checking the temperatures ing options including a system tive of workplace software of federal guidelines in the
of employees but doesn’t want of classifying its U.S. employ- platform Envoy Inc. U.S. or other even kind of less

Workplaces
Continued from Page One
get through the operational
and some of the privacy and
regulatory issues,” Dr. Oss-
mann said.
Many office workers have
to track their movements. “We
trust our employees,” said
Fran Lawler, Athenahealth’s
chief human resources officer.
“I think our employees would
feel like that is a bit invasive.”
Jason M. Schultz, professor
of clinical law at New York
University, who studies work-
place monitoring, predicted
n-
ees in one of three levels.
A worker that tested posi-
tive for coronavirus antibod-
ies, indicating they had the in-
fection in the past, would be
considered a “Level 1” em-
ployee—the lowest risk—and
could return to work when
states and cities lift work-
from-home orders.
Measuring proximity He said at least one large explicit formal regulations, but
Other companies have ex- technology client has asked just norms, it’s a little bit of a
pressed interest in contact- the company to build such a free for all right now in terms
tracing tools so they can pin- tool. Envoy’s software, used to of who’s doing what.”
point which employees may check-in visitors, track pack- Some employees might
have been exposed to the vi- ages and book meeting rooms, push back on contact-tracing
rus, without needing to shut is used in 14,000 offices. efforts, perhaps by turning off
down entire floors of an office Answers to the question- phones when meeting with
or individual manufacturing naire could determine who people, NYU’s Mr. Schultz said.
plants, said Tom Puthiyama- gains access to the office. Existing employment laws

become used to widespread
security cameras and keycards
that register entries and exits.
After the Sept. 11 terrorist at-
no
the tools might remain after Those without antibodies dam, digital products leader at Those feeling ill would be re- that protect against discrimi-
the pandemic. “Employers but who are considered a low PwC. He said he and his col- minded to stay home, while nation by age or disability still
don’t really have any incen- to moderate risk would count leagues host about 15 meet- employees who respond in a apply in a pandemic, and ask-
tives to remove surveillance as “Level 2.” This group would ings a day with current and satisfactory way could be ing all employees to disclose

tacks, buildings installed en-
hanced security measures, in-
cluding logging in visitors and
X-raying briefcases.
The arrival of Covid-19 is
taking surveillance to a higher
level, with some employers
planning to track movements
and gather personal informa-
tion like never before in West-
ern democracies. It marks a
new chapter in the debate
over privacy, and the trade-
offs people are willing to make
once they install it,” he said.
When companies began
sending their employees home
in March, they focused on
keeping productivity high de-
spite the remote setups. In an-
ticipation of workers return-
ing to offices, some added
basic precautions, such as ex-
tra cleaning, markers on the
ground to direct foot traffic
and more space between
desks. Some plan to reduce
overall numbers present by
include employees who are un-
der 65 years old, don’t live
potential clients to explain the given a code to scan in an of-
company’s new tracing app. fice lobby to gain entry.
Access management com-
pany Okta Inc. might require
employees who want to work
in one of their 12 global of-
fices to register a day in ad-
vance and go through a health
and safety check that includes
questions about their temper-
ature and other potential
symptoms, according to the
company’s senior vice presi-
dent of global workplace ser-
LEWIS SURVEILLANCE/REUTERS
health information could open
a company to legal liability,
said Jennifer Merrigan Fay, an
employment-law partner at
Goodwin Procter LLP.
Companies have some addi-
tional leeway in a pandemic,
she said. The White House’s
return-to-work guidelines call
for employers to make accom-
modations for vulnerable
workers, including those who
are elderly or with serious un-
derlying health conditions.

for safety.
Some companies now see
the measures as perhaps the
only way to reopen offices
without risking a spike in in-
fections, at least until a vac-
cine becomes available.
Tracking employees
Building owners said the
systems—similar to measures
used in China that helped slow
the spread of the virus—pro-
mote health and safety, so that
employers can better monitor
and enforce separation be-
tween workers, and quickly
determine which employees
could have come in contact
with an infected colleague.
The pandemic’s “conse-
quences are far-reaching, and
it is going to change the way
all these places work,” said
Amol Sarva, chief executive of
flexible-office company Knotel,
which is adding features to its
app that would allow custom-
ers to track the movements of
employees. “When you design
a workplace, it’s no longer go-
ing to be like ‘Hey, is it cool
and fun for my people?’ A ma-
jor criterion is going to be: ‘Is
keeping some staff working at
home or staggering shifts, and
others plan to set up their
own testing.
Other companies said these
moves don’t go far enough.
RXR, the real-estate com-
pany, is testing new systems
on its own employees. “We are
using ourselves as the guinea
pigs,” RXR’s Chief Executive
Scott Rechler said.
The company aims to have
its social-distancing app ready
at the end of May. Workers’
movements are tracked
through their smartphones—
you get a higher score the
more time in the office you
are farther than 6 feet from
another person. An individual
would see his or her own
score, and the employer would
see aggregate data on how
employees are complying with
social distancing as a whole.
After the pandemic, RXR
said the technology could be
used to ensure the most effi-
cient use of space and “the
overall wellness of our cus-
tomers.”
Interpublic, whose ad agen-
cies employ 9,700 people in
New York City, began to think
Some offices will use thermal cameras, demonstrated above, to
check temperatures. Others will track proximity through apps.
with high-risk people and
don’t have chronic diseases in-
cluding diabetes or hyperten-
sion. This group could poten-
tially return to work in a
second wave.
Employees over 65, or those
who are pregnant, smoke,
have chronic diseases or
health issues would be consid-
ered “Level 3.” These at-risk
employees would have to wait
the longest to return, Dr. Oss-
mann said.
A potential sticking point,
said Casey Tinnesz, Interpub-
lic’s senior director of crisis
management and business
continuity, is that personal
medical information about em-
ployees is private.
Dr. Ossmann has also ad-
vised Interpublic that there
are shortcomings with
vices Armen Vartanian.
Feevr, a thermal imaging
device developed by X.Labs,
said it is launching a precheck
option loosely modeled on the
Transportation Security Ad-
ministration’s precheck system
at airports. The goal is to re-
duce lines at buildings of peo-
ple waiting to have their tem-
peratures checked.
The product, installed on an Employees can log into
employee’s phone, uses Blue- Feevr’s app at home every
tooth and Wi-Fi data, along morning through a facial scan
with other signals, to deter- and take their temperature
mine employees’ proximity to with a digital thermometer.
each other within a company The app sends the tempera-
building. It doesn’t track ture to the employer with a
someone’s location or analyze timestamp. If it is below the
data outside of work, Mr. fever threshold, the employee
Puthiyamadam said. gets a pass for the day.
If an employee tests posi- Envoy’s Mr. Gadea said
tive for the coronavirus, HR many employers plan to ask
administrators can log in to a guests if they are experiencing
web portal to determine which symptoms of Covid-19, and
other employees may be at how they got to the office.
risk based on their proximity Public transit is viewed as
to that worker in a given time riskier than private cars.
period. There are still few agreed
Companies are also doing upon standards on what tools
more to screen arrivals and are effective, and how they
prevent sick people from en- should be used while respect-
tering buildings in the first ing individual privacy, said
place. Some employers are Steven Feldstein, an associate
now evaluating whether to professor at Boise State Uni-
That could include allowing
people to continue doing their
jobs from home.
“If employers are telling
people that they cannot come
back to work, or that they
have to disclose information if
they are asymptomatic about
their health, I think that you’ll
absolutely see challenges to
that,” Ms. Merrigan Fay said.
At his building in Rockefel-
ler Center, RXR’s Mr. Rechler
predicts office workers will
get used to the new proce-
dures, just as they did with se-
curity check-ins for visitors
following 9/11.
Many workers then were
nervous about returning to
their high-rise offices, he re-
called. Turnstiles in office lob-
bies became common, front
desks started asking for ID
cards and garages screened
cars for bombs. These mea-
sures, once deemed extreme,
helped people feel safe, and
many are still in use today.
“Over time some of that
anxiety went away, and I think
the same thing will happen
here,” he said.
—Suzanne Vranica
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * NY Wednesday, May 6, 2020 | A8A

GREATER NEW YORK

N.Y. Nursing Homes Will Get More Help
Cuomo vows aid as homes including probable vi-
rus cases in their reporting.
confirmed, presumed As of Tuesday, New York had
deaths related to the recorded a total of 19,645 con-
firmed coronavirus-related
virus hit at least 4,968 deaths and 321,192 positive
cases, state officials said. The
BY KATIE HONAN number of hospitalizations and
AND LESLIE BRODY the daily death toll have been
trending downward during the
New York Gov. Andrew past two weeks. The daily death
Cuomo says officials are work- count was 230 on Monday,
ing to get more supplies and down from 306 on April 29.
staff to nursing homes and Nursing homes leaders say
adult-care facilities as the health authorities have put a
state has recorded at least far higher priority on supplying
4,968 confirmed and pre- hospitals with personal protec-
sumed deaths related to the tive equipment and staff. Nurs-
novel coronavirus, according ing-home operators also say a
for Health Care and Rehabilita-
tion, a 527-bed facility in New
Hyde Park, had more confirmed
deaths than any other facility
with 71, the data showed. The
facility received an overall
score of “much above average,”
getting five out of five stars
from Medicare’s quality-rating
system. A representative didn’t
provide comment.
Mr. Cuomo announced a
push last month to inspect
nursing homes to verify com-
pliance with standards for
staffing and infection control.
He said if the state Department
of Health finds a violation, a fa-
cility must immediately submit

MIKE SEGAR/REUTERS
to data released Monday night. state mandate to admit patients a plan to correct it and could
“The nursing homes, we known to have the virus has be fined $10,000 per violation
said from day one, are the hobbled efforts to contain it. or possibly lose its license.
most vulnerable place,” Mr. State officials contend they Stephen Hanse, president of
Cuomo said at his Tuesday have sent hundreds of thou- the New York State Health Fa-
news conference. The state A temporary morgue has been set up with refrigerated trucks next to Bellevue Hospital in Manhattan. sands of pieces of protective cilities Association, an Albany-
took measures early to curb equipment to nursing homes. based group that represents
the spread of the virus, includ- tent, with only some nursing to have more comprehensive The number has grown Advocates for nursing-home nursing homes, said the fatali-
ing banning outside visitors at homes reporting deaths of reporting. It lists data on peo- quickly. For example, a tally residents have said many facil- ties echo the high percentages
nursing homes, he said. people who were presumed to ple who were confirmed by April 22 showed 3,505 deaths ities were ill-prepared for the of virus-related deaths in Eu-
New York previously had have the virus as well as con- testing to have the virus and in nursing homes and adult- pandemic, and many are rope that took place in long-
given data on deaths that it firmed cases. The new num- separate data on those pre- care facilities across New chronically understaffed. term-care centers, and its grip
acknowledged were inconsis- bers reflect the state’s effort sumed by facilities to have it. York, with some nursing The Parker Jewish Institute on the elderly overall.

Factories That Stayed Open Share Advice Judge Puts

BY JIMMY VIELKIND Primary
As New York prepares to
Back on

.
reopen its economy, some up-
state factories that have been

ly
operating during the pandemic
have lessons to share on how
to keep workers safe.
Calendar
Although the state ordered
nonessential businesses to close
in late March, a majority of the
upstate factories were classified
on BY JIMMY VIELKIND

New York’s presidential pri-

mary will proceed as planned
as essential and stayed open. on June 23, a federal judge or-
us ,

They include stalwart employ- dered Tuesday.

l

ers in many communities, in- U.S. District Judge Analisa

e
al a

cluding General Electric Co.’s Torres said in a 30-page ruling

factories in Schenectady. All that officials at the state
have taken steps to provide Board of Elections violated the
ci on

protective equipment and to so- constitutional rights of former

HEATHER AINSWORTH FOR THE WALL STREET JOURNAL (2)

cially distance their employees. presidential candidate Andrew

“There is a significant Yang as well as delegates for
amount of manufacturing him and Sen. Bernie Sanders
open, and it’s open safely,” said when they canceled the state’s
er s

Randy Wolken, president and Democratic presidential pri-

chief executive of the Syra- mary last week.
m er

cuse-based Manufacturers As- Democratic commissioners

sociation of Central New York. on the Board of Elections took
Under an order signed by the unprecedented step of
Gov. Andrew Cuomo, unneces- scrapping the primary out of
sary gatherings are banned concern of spreading the new
m rp

and nonessential businesses coronavirus. Commissioner

must remain closed through Douglas Kellner said at the
May 15. The Democratic gover- time that the question of the
nor on Monday said the econ- presidential nomination was
omy would restart by region, An Indium manager screens employees at the Utica, N.Y., firm. Below, Arnela Huskic works in a sterile room hand packing solder at Indium. settled when the other major
co Fo

in phases. Construction and candidates suspended their

manufacturing could reopen in which represents employers. sures” and that a majority of its campaigns and endorsed for-
upstate areas after that date. Matthew Gorton, a spokes- employees in the Capital Region mer Vice President Joe Biden,
The three-day average in the man for Empire State Develop- have been working remotely. the presumptive Democratic
number of people hospitalized ment, a state authority, esti- Globalfoundries Inc. CEO nominee.
for Covid-19 or who died as a mated that a majority of upstate Thomas Caulfield said engineers Supporters of Messrs.
result of the disease would firms fall into one of the exempt at his company’s microchip fab- Sanders and Yang said they
have to decline for 14 consecu- categories. One is Indium Corp., rication plants in Saratoga and wished to remain on the ballot
tive days before restrictions which operates three plants in Dutchess counties have been to influence the Democratic
could be relaxed in each region, the Utica area making solder, spending only half their time on Party’s platform and rules at
Mr. Cuomo said. Additionally, connectors and other compo- site, and that actual manufactur- its coming August convention.
at least 30% of hospital and in- nents used in microprocessors. ing hasn’t seen much change be- Judge Torres ruled that they
tensive-care beds in a region Indium President Ross cause workers already were op- would be irreparably harmed
n-

must be kept unoccupied. Re- Berntson said in an interview erating in a sterile environment. by scrapping the primary and
gions also must increase their that his company, which has Both fabrication plants are issued an injunction prevent-
capacity for testing and tracing. operations in China, began meeting or exceeding produc- ing the cancellation.
Five upstate regions already talking with other manufactur- tion targets, Mr. Caulfield said. Judge Torres wrote: “Pro-
no

have met all the criteria ex- ers about what it was doing “We’ve broken a lot of myths tecting the public from the
cept for testing and tracing. and learning on March 2—the about what can be done and spread of COVID-19 is an impor-
One is Central New York, day after the first person in “We restructured the whole tested positive at GE’s plants what can’t be done,” he said. tant state interest. But the
where Mr. Wolken said 80% of New York state tested positive factory, basically,” Mr. Bernt- in Schenectady County, said Other factories have volun- Court is not convinced that can-
his group’s members said in a for the novel coronavirus. son said. “If we couldn’t sepa- Chris DePoalo, business man- tarily closed. General Motors celing the presidential primary
survey that they were open at Indium has shifted em- rate people because the layout ager for IUE-CWA Local 301, Co. operates plants near Roch- would meaningfully advance
an average of three-fourths ployee schedules so more peo- wouldn’t allow it, we either which represents more than ester and Buffalo that have that interest—at least not to
their normal capacity. ple are working on a second gave them personal protective 800 workers at the facilities. been idled as part of a nation- the degree as would justify the
The state’s closure order and third shift. Anyone who gear or put up barrier walls. Mr. DePoalo said he heard wide shutdown. U.S. auto com- burdensome impingement.”
classified broad swaths of man- can work remotely is doing so, So, there’s plastic hanging at some concerns about the coro- panies are looking to restart Mr. Yang said on Twitter that
ufacturing as essential, includ- and access to buildings is different places.” navirus in March, but they had operations on May 18. he was happy with Judge Tor-
ing food production, facilities tightly controlled. Employees’ Two employees tested posi- mostly subsided. Workers avoid Some firms say they don’t res’s decision and hoped “that
that support military and trans- temperatures are checked upon tive for the virus several being in confined spaces to- know when they will return to the New York Board of Elections
portation infrastructure and entry, and they are required to weeks ago, Mr. Berntson said, gether, and more emphasis has full operations after they re- takes from this ruling a new-
semiconductor development. sign a personal pledge commit- and immediately quarantined been placed on cleaning and open. Business Council of New found appreciation of their role
More than 440,000 people ting to safe practices both in- at home. There was no sec- hand sanitizer. A GE spokesman York State Vice President Ken in safeguarding our democracy.”
worked at New York factories side the workplace and at ondary transmission on site, declined to comment on the Pokalsky said falling consumer Mr. Sanders’s campaign
in 2018, according to a report home. Many of these steps will which he took as validation of number of infections, and said demand was contributing as manager, Faiz Shakir, said he
by an affiliate of the Business be required by the state before Indium’s procedures. the company implemented much to the slowdown as gov- was “glad Judge Torres has re-
Council of New York State, a broader reopening. Several employees also “comprehensive safety mea- ernment restrictions. stored basic democracy in
New York.” George Albro, a
delegate for Mr. Sanders who

Rare Illness, Possibly Tied to Virus, Strikes Children joined the suit as a plaintiff,
said it was time for Democrats
in New York to unify.
Mr. Kellner said the Board of
BY MELANIE GRAYCE WEST the coronavirus, the health de- “When you have a syndrome ble in the face of this infec- mune response in children. Elections would appeal. “Obvi-
partment said. The illness mir- that’s not very common in the tion. There’s a lot that we’re “Maybe the reason we’re ously I’m disappointed that the
New York City health offi- rors symptoms common to Ka- context of a world-wide pan- still learning,” said Jay Varma, not seeing it earlier is it’s a de- decision put so many lives at
cials on Tuesday warned par- wasaki disease or toxic-shock demic, there are situations a physician and senior adviser layed response after the peak risk for the pointless purpose
ents of a serious multisystem syndrome. There have been no to Mr. de Blasio. of acute infections,” he said. of holding a primary where all
inflammatory condition poten- deaths among the group, city Physicians for NYU Langone At Northwell’s Cohen Chil- of the candidates have en-
tially associated with Covid-19 officials said. Health and Northwell Health, dren’s Medical Center in New dorsed Joe Biden,” he said.
that has been observed in 15 The city’s findings echo simi-
If not identified two health-care systems with Hyde Park, N.Y., there are 11 pe- Election officials told the
hospitalized children. lar ones reported in late April early, the condition facilities outside New York diatric patients exhibiting symp- judge during a Monday hearing
Children with the syn- by England’s national health- City, said they are seeing cases toms of Kawasaki syndrome in that canceling the primary
drome, characterized by a high care system, and cases observed
could cause long- of children exhibiting the un- the intensive-care unit, said would mean nearly 1.5 million
fever and symptoms including in Philadelphia and Boston. term heart problems. usual symptoms. James Schneider, chief of pedi- fewer Democrats would need to
rash, abdominal pain, vomiting Speaking Tuesday during a Leonard Krilov, chairman of atric critical care. All of them vote and that more than a
or diarrhea, have required in- news conference with Mayor the department of pediatrics have had Covid-19 or evidence dozen upstate counties wouldn’t
tensive care that includes car- Bill de Blasio, the city’s health at NYU Winthrop Hospital in of having had the virus, he said. need to conduct elections at all.
diac and respiratory support, commissioner, Oxiris Barbot, where pediatricians may not be Long Island, said he treated a “It’s an emerging illness right in New York had originally
according to a health alert to said the strain of the coronavi- thinking, ‘Oh, this could be an boy who presented with the front of our eyes,” he said. scheduled its presidential pri-
physicians issued Monday rus in New York “is behaving atypical manifestation of what’s symptoms, and who had par- The presence of the unusual mary for April 28 and other
night by the city’s Department slightly different than the going on,’ ” Dr. Barbot said. ents that tested positive for illness among children may in- primaries for June 23. Gov.
of Health and Mental Hygiene. strain that was observed in If not identified early, the Covid-19. Dr. Krilov, who is an fluence the way schools reopen Andrew Cuomo moved the
Ten of the 15 patients ulti- China” and so physicians are condition could cause long- expert on Kawasaki, said the in the fall, and decisions around presidential primary to the
mately tested positive for seeing children with Kawasaki term heart problems, she said. virus could be triggering an that will evolve in the coming June date in response to the
Covid-19 or had antibodies to or Kawasaki-like syndromes. “We have to be really hum- aberrant and aggressive im- months, Mr. de Blasio said. pandemic.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8B | Wednesday, May 6, 2020 NY * * THE WALL STREET JOURNAL.

AMAZING
HEROES
WORK
HERE.

.
ly
on
us ,
l
e
al a
ci on
er s
m er
m rp
co Fo

What does amazing look like?

Our nurses.
n-
no

You make us #NYPSTRONG. Thank you for your passion,

commitment and sacrifice. We appreciate you, and the
dedication of nurses everywhere.

Thank you #HealthcareHeroes

Photography by Adelene Egan, NewYork-Presbyterian Emergency Room Nurse
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Hitting Pause
On College
Graduating high schoolers consider a gap year
while questions remain about fall on campus
BY NANCY KEATES
A
few months ago,
Lisa Jackman
was thrilled when
her son Sam was
accepted to
the University of
Pennsylvania.
Now, they’re starting to think
about Plan B for next fall.
As a Penn alumna with a daugh-
ter who is a junior there, Ms. Jack-
man has no doubts about the uni-
versity. Instead, she’s concerned
about what any college might be
like if students can’t return to
campus because of the coronavirus
pandemic.
“We are just looking at options
at this point,” says Ms. Jackman,
of Westfield, N.J.
Never have the words gap year
seemed more appropriate. Typically
taken by a handful of students who
want time to grow and explore be-
fore they start college—and who
can afford to do so—it usually in-
cludes an international travel expe-
rience, an internship or participa-
tion in a wilderness program.
This year, interest in the option
is exploding. There’s been a 60%
increase in searches for the term
“gap year” on Google since the
first week of March in the U.S.,
and the question “What is a gap
year?” shot up 180% in
the last week of April,
according to Google.
College counselors
and gap-year consul-
tants are being flooded
with calls—mostly from
parents anxious about
courses going online
and worried the quality
of the education might
not be worth the price.
Most are still only ex-
ploring the possibility, Audrey MacVicar and her College Consulting,
since colleges haven’t twin brother, Eddie.
yet announced
whether campuses will open in the
fall, or if they will reduce tuition if
classes remain online.
Jason Sarouhan, a gap-year con-
sultant at Northampton, Mass.-
based J2 Guides, says the overrid-
ing question is what a year off
might look like, given current
travel restrictions and the impact
of the pandemic on the economy.
It could just mean taking computer cally could also affect how it an-
coding classes online. While some
international programs have can-
celed, many are only revising their
itineraries. He is suggesting U.S.-
based programs that involve farm-
ing or wilderness adventures,
SARAH CROTHERS has been
no
working nonstop to help her five
children with their online school-
work while managing the house
during the coronavirus pandemic.
But when it became too overwhelm-
ing to provide extra attention to her
10-year-old son, Brady, who was
struggling in math, she
enlisted her dad to be a
virtual tutor.
Dale Rimkus, a re-
tail manager who lives
nearby in the Chicago
suburbs, was happy to
oblige. Before the
shutdown, the 67-year-old got to-
gether with Brady twice a week to
work on math. Now they conduct
daily sessions over FaceTime.
When they first started, Mr.
Rimkus noticed that his grandson
seemed tense. “He didn’t feel con-
fident in his abilities, so a week
into it I decided to start off each
call with something unrelated to
the lesson,” Mr. Rimkus said.
One morning he asked Brady if
he noticed anything different. Mr.
Rimkus was wearing another pair
of glasses. The next day he was
wearing a new pin on his shirt.
“Every day Brady looks forward
to this one-minute game at the
start of the call,” Mr. Rimkus said.
“It relaxes him and puts him in a
more fun mood.”
Mr. Rimkus downloaded math
Battleship grids online. Players have
to solve math problems to deter-
mine the coordinates. He and Brady
each print out the grids and play
over FaceTime. Brady’s siblings,
who range in age from 8 to 18, now
play against their grandpa, too.
“We do a lot with our grandchil-
dren and having that taken away
from us during this time has been
tough,” Mr. Rimkus said, choking
back tears. “It’s been a great gift
LIFE&ARTS
since they likely involve fewer in-
teractions with other people. He is
also helping students look at vol-
unteer opportunities in health care
and online internships.
For now, colleges report no sig-
nificant uptick in requests for de-
ferrals. That could change this
summer, since most require stu-
dents to put down a deposit before
they ask for a deferral and many
have extended the deadline to
June this year. Still, they know
those requests are coming, says
Todd Rinehart, vice chancellor for
enrollment at the University of
Denver and president-elect of the
National Association for College
Admission Counseling.
“I’m crossing my fingers,” says
George Ma, a senior at Princeton
Day School in Princeton, N.J., who
requested a gap year from UCLA.
He had long wanted to take a gap
year before the coronavirus crisis,
but didn’t think it would be possi-
ble because his parents were
against it. They told him he should
go right to college and then imme-
diately get a job.
Now that classes might be on-
on
line, his parents view it as a viable
option instead of as a disappoint-
ment. “It sounds more logical to
them now—not so emotion-based,”
he says. If accepted, he wants to
us ,
work in a restaurant, hike sections
l
of the Appalachian
e
al a
Trail, apply for a
Wilderness First Re-
sponders certifica-
ci on
tion, find an intern-
ship, and, if
international travel
permits, climb peaks
in Mexico, Australia
er s
and Russia.
When George’s
m er
counselor, Thomas
Jaworski of Quest
called UCLA to ask
about the university’s
m rp
deferral policy, he was told the
school is more open to granting
gap years due to the virus. But it
wants to see how many students
accept offers of admissions, in-
co Fo
cluding those now on the wait list,
how many request a gap year, and
whether the campus will open in
the fall. How Covid-19 has affected
families medically and economi-
swers individual deferral requests,
a UCLA spokesman says.
Expect a range of approaches on
gap-year requests. The University
of California, Santa Barbara, which
has seen a small jump in deferral
n-
FAMILY & TECH | JULIE JARGON
Digital Grandparenting Is Now Essential
Dale Rimkus meets daily with grandson Brady over FaceTime. At right, two grandkids and their math Battleship grids.
for me to do this with them.”
“I would not survive without
their virtual help right now,” said
Ms. Crothers, whose husband
works from home during the day.
For all the generational snicker-
ing about older adults’ lack of
technical savvy and tendency to
indulge grandchildren, parents
now are finding that a virtual con-
nection to grandma and grandpa is
key to their sanity. They also are
realizing how creative their own
parents can be and marveling at
how well their kids respond.
Ariel Goltzman, a hospital social
worker in Minneapolis who works
from home part-time, has had dif-
ficulty focusing on work while car-
THERE’S NEVER BEEN A GAP YEAR LIKE THIS
Gap-year programs are adjust-
ing itineraries for this coming
academic year because of the
coronavirus pandemic.
n Omprakash Based in Seattle, this
organization coordinates internships
with vetted grass roots social impact
organizations. Due to the Covid crisis,
it is encouraging remote and online
internships this year. Offers a Gap
Year Grant, which includes free tuition
and up to $2,500 to cover interna-
tional travel and living expenses
when mobility resumes.
Cost: $750 plus travel expenses
n Year On This San Francisco-
based organization is replacing its
requests this year, will still require
every student to reapply for ad-
mission, according to a spokes-
woman. Newly admitted students
at Columbia University have until
May 15 to request deferments,
though others will be handled on a
case-by-case basis after that.
Washington University in St.
Louis vice provost of admissions
and financial aid Ronné Turner
says the college is still trying to
understand what enrollment will
look like this year. She thinks the
uncertainty will last through the
summer.
“I don’t see how you can’t be
flexible given the situation we are
facing,” she says. At the same
time, she acknowledges the fear
many current high school juniors
ing for her 7-year-old son, Cobi,
and 4-year-old daughter, Noa.
“It’s a lot of multitasking and
stopping in the middle of what I’m
doing and trying to engage Noa in
an activity she’ll do for five min-
utes,” she said. “I feel like I work
for five minutes at a time.”
She tried to have her parents
and in-laws do FaceTime calls with
the kids, but it didn’t sustain their
attention. “They were running
around the room,” she said.
Ms. Goltzman looked into apps
that provide more interaction and
came across Together, a subscrip-
tion-based video-calling app that
contains children’s books and such
games as chess, Connect 4 and
Wednesday, May 6, 2020 | A9
ILLUSTRATION BY JON KRAUSE; PHOTO: ERNEST MACVICAR
.
ly
traditional international immersion ex- volvement. The organization offers fi-
periences with service-based learning nancial aid and scholarships.
programs involving volunteer organiza- Cost: $29,400 for the year, $15,450
tions in different regions of the U.S. If
students can’t even travel domesti-
cally this fall, Year On is working on a
completely online program combining
for one semester
n Rustic Pathways This may be one
of the few organizations still planning
virtual volunteer projects, externships, on running three international gap-
skill-building and intensive coaching. year programs this fall. They include a
Cost: $24,000 for the year, $19,000 trip throughout Southeast Asia, a
for one semester Spanish immersion and community
service program in Costa Rica, Peru
n Dynamy A domestic gap-year or- and the Dominican Republic, and an
ganization that helps students arrange ocean skills and community service
internships in fields like health care, expedition in Fiji, New Zealand and
design and environmental services Australia. Financial assistance is deter-
throughout Worcester, Mass. It also mined by need and merit.
includes outdoor challenges, one-on- Cost: $15,000 to $19,000 for the
one mentoring and community in- semester
have that too many gap-year re- However, there are scholarships
quests for this fall could limit for funding a gap year, and work-
space the following year. ing part of the time is an option,
In an unusual step, Wesleyan says Ethan Knight, executive direc-
University, in Middletown, Conn., tor of the Gap Year Association.
emailed accepted students in April “She has been wanting to do
guaranteeing it would grant defer- this for years,” says Janice
rals for the fall if the campus MacVicar about her daughter Au-
doesn’t open, or if students are un- drey’s plans to take a gap year.
able to travel there due to Covid-re- She has been encouraging the idea
lated issues. Those deferring would for years. Audrey, a senior at New
be automatically enrolled in the Trier High School in Winnetka, Ill.,
spring semester, unless they re- is looking at about 10 possibilities,
quest entry in Fall 2021. including a Spanish-immersion
Students who take a gap year program in Peru, an environmental
often must resubmit financial-aid program in Bhutan and sustain-
applications to colleges the follow- ability projects in several African
ing academic year. Colleges gener- countries.
ally don’t give credit for courses If those programs are canceled,
taken at other schools—students she will look into volunteering at a
would have to reapply as transfers. local hospital.
was able to unpack groceries, load
laundry and get some work done.
The catch? The Together app, which
works only on Apple devices, gives
you three free one-hour calls; after
that it’s $6.99 a month.
The Goltzman family and others I
spoke to have used Caribu, a video-
calling app with books and coloring
activities. Caribu is offering free ac-
cess because of the pandemic but
normally charges $6.99 a month.
Alexis Friedman, a learning and
development contractor in North-
brook, Ill., came to rely on her
mother when she became ill and
her husband had to care for their
FROM LEFT: MARLA RIMKUS; SARAH CROTHERS
5-year-old and 16-month-old on his
own. Ms. Friedman’s mother, Rae
Luskin, 69, held virtual art classes
and dance parties with the 5-year-
old over their Echo Show 5 devices.
“One thing that’s been cool for
me, as a parent, to see is that my
mom and daughter have a special
connection; she opens up more to
her grandmother than she does to
me,” Ms. Friedman said.
Mara Markzon, a hospital social
worker in Chicago, was struggling
to keep her 2½-year-old daughter,
Chutes and Ladders, so callers can Shay, occupied when she works
play against each other. “My 4- from home. Zoom play dates were
year-old will play on it for an hour a disaster. “It was like herding
with my parents, which is really cats,” she said. So she turned to
nice when I’m trying to get some the grandparents, who read to
work done,” she said. Shay over Google Hangouts. She
Cheryl Goltzman, Ariel’s 70- still sometimes runs away.
year-old mother-in-law, in Naples, Eileen Markzon, 71, of suburban
Fla., looks forward to daily chess Buffalo, N.Y., had better luck when
matches with Cobi, and likes she and her granddaughter played
knowing she is helping out. “I’m a hide-the-matzo, a Passover game.
filler-inner in their time,” she said. Shay received a prize for finding
I tried this app with my 5-year- the matzo. They played and read
old. My parents had tried reading books online for nearly an hour.
to him over FaceTime, but it didn’t Eileen Markzon said the virtual
engage him much. When they time with her granddaughter is no
played games on Together, though, replacement for seeing her in per-
it kept him busy for 45 minutes, son, but for now it’s the best she
which felt like a blissful eternity. I has. “It’s my fix,” she said.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

LIFE & ARTS

CLOCKWISE FROM TOP: JOHN WITTNEBEL; IAN WITTNEBEL; TIMOTHY EULL; JOHN WITTNEBEL; TIMOTHY EULL

MY RIDE | A.J. BAIME

The Mazda RX-7 That’s a Blast From the Past

After driving the sports car on dates when the model appeared in 1979, this couple bought an identical one decades later

.
John Wittnebel, 59, an say, “Is that a Ferrari?” But Jody, and the day I picked
American Airlines pilot liv- soon the demand was so her up for our first date,

ly
ing in Beloit, Wis., on his crazy, Mazda was building she said, “Wow! You have
1979 Mazda RX-7, as told to these cars as fast as possi- an RX-7.” That impressed
A.J. Baime. ble. It became one of the me because so few people

I was in college at
the University of
Minnesota when
on
knew what the car was. She
did. Turns out, her father
had a Z, so he owned
the car that was my
I saw this new car’s nemesis.
us ,

Mazda in Road Jody and I practi-

l

& Track maga- cally lived in the

e
al a

zine, in the May RX-7. Road trips,

1978 issue. I went camping. The thing
to a Mazda dealer- that made it so fun to
ci on

ship and asked the sales
manager if I could buy one.
He said, “We have 13 com-
ing in and 11 are spoken
for.” I think I wrote a bad
most popular sports cars of
the 1980s. The RX-7’s main
competition was the Nissan
er s
drive was the motor. It had
a rotary engine, which
made it an entirely differ-
ent animal. There were no
pistons going up and down

check for a down payment. Z car, another semi-afford- in cylinders, like in a nor-
To my knowledge, my RX-7 able Japanese sports car. It mal engine. It had twin ro-
m er

was among the first to
reach the Twin Cities.
When I first started driv-
ing it, people had no idea
what it was. They would
was sort of the Hatfields
against the McCoys.
A couple weeks after I
bought my car, I started
seeing a woman named
m rp
tors and was powered by a
spinning motion. You could
rev it to high RPMs.
I drove that car seven or
eight years, year-round, be-

cause I couldn’t afford to

park it in the winter. After
all those Minnesota win-
ters, the car rusted out John and Jody Wittnebel at their home in Beloit, Wis., with their 1979 Mazda RX-7, the same
from under me. I think I model he had when they were dating years ago. The popular sports car featured a rotary engine.
co Fo

gave it away sometime in

the late ’80s.
Jody and I will celebrate
our 35th anniversary this
year. Last fall, I was look-
ing at the car auction site
Bringatrailer.com when I
saw a 1979 RX-7 that
looked identical to the one
I had decades ago. Jody
and I set a top price of
$15,000, and we both
started bidding. There was
n-
didn’t have to. I bid $17,000
and won.
The car arrived last fall
just before winter arrived,
so I put it in storage and
just took it out two weeks
ago. The only difference I
can find between this one
and the one I had years ago
is the switch for the air-
conditioning fan. I imagine
both cars came off the as-

a person bidding against us sembly line the same week.

and we hit our limit. I said, The Wisconsin roads are
“I got to have that car.” finally clear and the sun is
The Wittnebels back in the day. At left is the first Mazda RX-7 Mr. She said, “Bid 17, and be out. It’s time to start driv-
no

Wittnebel bought, when the model first appeared in the late ’70s. ready to walk away!” I ing again.

ADVERTISEMENT
AIR MAIL | SCOTT McCARTNEY
Showroom
To advertise: 800-366-3975 or WSJ.com/classifieds
The Rules on Masks in Flight
PORSCHE Scott McCartney answers Blue was the first to require said a face mask must be
reader questions about travel. masks on passengers for the worn in-flight “throughout

Q
I’ve been working
as a volunteer with
a group of medical
and scientific ex-
perts promoting
face masks as a way to stop
the spread of Covid-19. Why
aren’t the FAA and airlines
mandating that passengers
wear cloth face masks?
—David Keating,
Chevy Chase, Md.
A: They are finally starting
to. Sort of. The FAA tells me
it has limited authority as a
health agency. To airlines, it
has “stressed the impor-
tance of complying” with
Centers for Disease Control
and Prevention guidance,
but not required it.
In many state and local
jurisdictions, face masks are
required in public places.
entire flight. Passengers on
United and Delta are now re-
quired to wear face masks.
American says it will hand
out masks and sanitizing
wipes and gels, and will re-
quire masks be worn start-
ing Monday. Southwest,
Alaska and Spirit also start
requiring masks that day.
Masks on airplanes seem
like a prudent step, but it
may be a difficult one. Take
a six-hour flight—people
will want to eat and drink.
Are masks the end of airline
beverage service? JetBlue
the journey.”
And we all know some
passengers won’t comply—
probably the same ones who
won’t put their phones in
airplane mode. Will other
passengers react when
seated near someone not
wearing a mask? Will crews
be authorized to make un-
scheduled landings to re-
move noncompliant passen-
gers and bill them for the
expensive diversion?
Like many issues, it’s just
more complicated on an air-
plane.
KATHY WILLENS/ASSOCIATED PRESS

But requiring that on com-

mercial airplanes takes a
federal order. And there has
been none from the Trump
administration.
But airlines are starting
to act. Most are requiring
masks for flight attendants
and are phasing in require-
ments for passengers. Jet- A passenger checks in at New York’s JFK Airport on March 14.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, May 6, 2020 | A11

LIFE & ARTS

THE STAYING INSIDE GUIDE—ARCHITECTURE

British Culture, Available Everywhere

Just because museums and architectural sites are closed doesn’t mean you can’t continue your love affair with Britannia
BY BENJAMIN RILEY

AFTER BEING CLOSED for over

three years, the British galleries at
the Metropolitan Museum of Art
reopened in grand style on March
2, only to close again on March 13
along with the rest of the museum.
But there is a consolation prize.
The web has no shortage of mate-
rial on British art and culture,
much of it free.

FROM LEFT: AARON CHOWN/PA WIRE/ZUMA PRESS (2); HULTON ARCHIVE/GETTY IMAGES
Architecturally speaking, you
could date the birth of modern
Britain to the Great Fire of London
in September 1666, which de-
stroyed seven-eighths of the City’s
residents’ houses along with St.
Paul’s Cathedral and 87 parish
churches. So a good place to start
is with “The Fire of London” epi-
sode of the BBC Radio 4 show
“In Our Time,” in which host Mel-
vyn Bragg and three scholars tell
the story of the blaze and its after-
math, offering piquant details such
as Samuel Pepys’s hiding of his
prized Parmesan cheese wheel in
his yard.
The panelists lucidly re-create
London in our minds, contrasting
the “fine houses, wonderfully dec-
orated” with an “increasing num-
ber of spreading slums.” When Mr.
Bragg, curious
about what Chatsworth House, above; Christopher Wren’s baroque-influenced St. Paul’s plan was orchestrated by the gal-
made the fire so Cathedral, left; rendering of London Bridge during the Great Fire of London, below lery’s director, Kenneth Clark. In a

.
destructive, 2019 gallery talk available on
asks, “There’s a YouTube, delivered in front of one

ly
lot of wood in of those pictures, Titian’s “Noli me
those houses, Tangere” (c. 1514), National Gallery
isn’t there?” one researcher Alan Crookham details
of his guests re-
plies: “They’re
all timber-
framed.…Every-
on the complicated logistics of pack-
ing and removing an entire collec-
tion, and the later decision to ex-
hibit a single painting each month
thing is tinder- despite the threat of bombing. As
us ,

dry by the end Mr. Crookham tells us, Clark un-

l

of August.” derstood that in a time of crisis,

e
al a

Architects people were “anxious to contem-

saw the fire as a plate a nobler order of humanity.”
chance to re- The caustic architectural critic
ci on

make London in Ian Nairn believed even more harm

the image of a
classical city
like Rome. Christopher Wren’s
new, baroque-influenced St. Paul’s
had been done to the urban fabric
by postwar town planners and
forts, while imprisoned on the Isle modern architects than the Luft-
of Wight, to build a new palace at waffe. He denounced the new
er s

Cathedral is the most famous re- Whitehall designed by the pioneer- buildings as a “soggy, shoddy mass
sult. But we learn that Wren had ing classical architect Inigo Jones. of half-digested clichés, half-peel-
m er

grander, albeit unrealized ambi-
tions, for example rearranging the
City streets to radiate from the
Royal Exchange, like what Baron
Haussmann would later do in
That he was focused on architec-
ture even then proves how impor-
tant palaces were for British mon-
archs’ projection of power.
Chatsworth House, seat of the
m rp
of the 11th duke. We hear sound
bites from the Devonshires (“If you
like something enough, you should
buy it, acquire it, collect it, what-
working methods, including the
time he famously tied himself to a
ship’s mast to better experience a
storm. Viewers also get a sense of
ing façades, half-comfortable
rooms, [and] untested preconcep-
tions about what people want.” In
a 1972 episode of the travelogue
series “Nairn Across Britain”

Paris.
Wren pops up again as the ren-
ovating architect of Hampton
Court Palace in the three-part tele-
vision series “The Genius of Pal-
Dukes of Devonshire, is one of the
pre-eminent examples of another
type of palace, the so-called
stately home, that was built for
the aristocracy. With its three sto-
co Fo
ever, and disregard other peoples’
opinions,” says the current duke)
and others. And we learn what is
involved in running a stately home
as a public charitable enterprise
the artistic rivalries of the day. In
one memorable scene, Turner glee-
fully disfigures one of his sea-
scapes with a red dot as a taunt to
his rival John Constable, whose
(YouTube), we follow him on the
road from London to Manchester, a
route chosen to demonstrate “the
astonishing variety of landscape,
townscape there is in Britain.”

aces” (Knowledge Network). Writ-
ten, and presented with infectious
enthusiasm, by the celebrated ar-
chitectural historian Dan Cruick-
shank, it demonstrates the variety
of that quintessentially British ar-
chitectural form. We range from
the cells of the Tower of London
to the sumptuous private apart-
ments and gardens at Hampton
Court. Episode 2 is particularly il-
luminating, detailing Charles I’s ef-
ries of columned sandstone over a
rusticated base, the house has an
imperious presence. As a 13-part
video series produced by So-
theby’s last year shows, the De-
vonshires have always been collec-
tors of singular taste. The lavish
interior houses the expected, a hall
full of Antonio Canova’s statuary,
and the unexpected in the form of
Lucian Freud’s 1956-57 portrait of
Deborah “Debo” Devonshire, wife
n-
that takes in some £15 million in
income a year.
In Mike Leigh’s 2014 biopic “Mr.
Turner” (Amazon Prime), Timothy
Spall grunts his way through the
life of the 19th-century artist who
rejected the stilted academicism of
his colleagues to forge a naturalis-
tic, even abstract style all his own,
one centered on land- and sea-
scapes. The film provides a vivid
view of Turner’s idiosyncratic
own work—precious and exact in
comparison to Turner’s—hangs
nearby, before fashioning it into a
buoy that ties the whole composi-
tion together.
At the outbreak of World War
II, the National Gallery’s collection
(including its Turners) was evacu-
ated to Welsh caves, archival foot-
age about which is available as
part of a 1939 newsreel film on
the British Pathé website. The
Along the way we see country
lanes with lonely churches and bus-
tling town centers like Northamp-
ton, with Nairn, on the road out of
London, treating us to a wonderful
summation of what architecture
should strive for: “You can feel a
sense of identity…that’s what the
business is basically all about.”
Mr. Riley is the managing editor of
the New Criterion.

TELEVISION REVIEW | JOHN ANDERSON

no

Questionable Parenting,
Killer Kitchens
IF THE LOCKDOWN has given you
a hankering for imported cheese,
take a dip into “Bad Mothers.”
This soapy Australian suspense se-
ries is being compared with “Des-
perate Housewives,” but it’s also a
lot like “Big Little Lies,” without
the superstar cast or the pearl-
clutching sociology. Which makes
it more fun, of course, especially
when the hungover moms are
dropping their kids off at school,
or forgetting where they left them.
Set in a town called Bedford and
peopled by the kind of deliciously
self-absorbed upper-class wastrels
who have always populated prime-
time soaps, “Bad Mothers” isn’t re-
ally about parenting—who would
want to watch that right now? No,
it’s about dubious humans who
happen to have children. One of
the worst of the bunch is found,
right away, in a pool of her own
blood—a crime scene that, like ev-
erything else in “Bad Mothers”
(Don Hany); and just about every-
one who was irritated by Char-
lotte, which means everyone. Even
the viewer feels complicit after a
few minutes of Charlotte, not that
you want her to be dead (though
you kind of do, and she already is).
But the whodunit aspect of “Bad
Mothers” is, par for the manicured
course, only a vehicle for dysfunc-
tion and misbehavior. “Why do we
have to put the kids first our
whole lives?” someone asks. This
articulates a pattern, not necessar-
ily a philosophy: Neglect is never
intentional, it just happens, be-
tween the flirtations, the affairs,
the drinking, the all-night party-
ing, the leaving the preschooler
home alone and the warring over
custody. No one seems to work
very much, but, again, they do
have spectacular homes. (The
kitchens are incredible, but maybe
they all are in Australia.)
If there’s a hero of this eight-
SUNDANCE NOW

(save for the introductory stripper
music), is very tastefully arranged.
For anyone into real-estate porn,
“Bad Mothers” will be a hotbed of
architectural longing.
The dead mother is/was Char-
lotte (Melissa George), recently
discovered to have been sleeping
with the husband of her best
friend, Dr. Sarah (Tess Haubrich),
who immediately becomes a sus-
pect along with said husband, res-
taurateur Anton (Daniel MacPher-
son); Charlotte’s husband, Kyle
episode series, it’s Sarah, the very
part-time physician whose life is
turned upside down thanks to the
betrayal by her soon-to-be-late
friend and her husband, who, as
she discovers when she tries to
bail him out of jail, hasn’t told her
that they have no money and his
restaurant is on the ropes. Aiding
and abetting her efforts to solve
her problems is a posse of friends
who spend much of their time say-
ing “Excuse me?” to each other
following various insults and out-
A scene from ‘Bad Mothers,’ an Australian series about misbehaving moms in which soap meets suspense
rages and pursuing vendettas as Maddie, a lesbian mom at odds anyone and everyone. “It’s not all
against ex-spouses, sleeping with with her ex; Jessica Tovey as the about you,” she’s told at one point,
the police to get information on bubbly Danielle, who’s married to to which she responds—summing
the Charlotte investigation and an older guy and feeling restless; up the entire show’s sensibility—“I
kidnapping dogs. and the wonderful Shalom Brune- think you’ll find out that it is.”
Ms. Haubrich is highly engaging, Franklin as Bindy, the slinky per-
but so is the rest of the principal sonal trainer, very young single Bad Mothers
cast, including Mandy McElhinney mom and shameless exploiter of Thursday, Sundance Now
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A12 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

SPORTS
The Race for a Vaccine Is Key for Tokyo
Infectious disease experts were asked what it would take to guarantee a normal Games. One word dominated the answers.

A
s the clock ticks on be what takes the threat off the ta-
planning for the post- ble entirely,” said Amesh Adalja, a
poned Tokyo 2020 senior scholar at the Johns Hopkins
Olympics, two vicelike Center for Health Security.
forces are converging. “Without a vaccine? I just don’t
On one side, scientists are racing know,” said Scott Gottlieb, the for-
to find a vaccine for the novel coro- mer Food and Drug Administration
navirus, which caused the pandemic commissioner who has been advis-
that pushed back the Games one ing the U.S. coronavirus response.
year to July 2021. A growing list of A timeline of 12 to 18 months to
medical experts says the typical develop and distribute a coronavi-
rus vaccine is on the extreme end of
By Rachel Bachman, optimistic, most scientists have
Louise Radnofsky said. Research on the new coronavi-
and Alastair Gale rus is moving rapidly, to be sure,
but the current record time for de-
Summer Olympics, simultaneously veloping a vaccine is four years, for
massive and international, can’t the mumps vaccine.
safely occur without a vaccine. And Olympic officials are taking a dif-
yet it is far from certain that such a ferent stance.
vaccine will be identified, proven Last week, John Coates, head of
effective and widely distributed be- the International Olympic Commit-
fore summer 2021. tee’s coordination commission for
On the other side sits a Japanese the Tokyo Games, told the Austra-
organizing committee facing unex- Japanese organizers have said any delay of the Olympic Games beyond summer 2021 is out of the question. lian Associated Press that finding a
pected costs potentially in the bil- vaccine “would be nice” but that
lions of dollars, and a national one member of the Japanese Olym- tion, the Games would be quite dif- surround them with still more tens planning for the Games wasn’t con-
economy confronting stiff head- pic organizing committee. ficult. In that sense, drugs and of thousands of people, all without tingent on it. In the interview,
winds. More than half of the Games’ Japanese organizers have said vaccines are very important.” restrictions on who can come—and Coates offered no details about how
pre-virus $12.6 billion budget was any delay of the Games beyond A spokesman for the Japanese then, after two weeks of prolonged the Olympics could be held without
made up of taxpayer funds. Japan is summer 2021 is out of the question. Olympic organizing committee de- exposure in tight quarters, send a vaccine. The IOC said Coates was
counting on a big tourism boost to Organizers also have said they’re clined to say whether a vaccine was them back home. unavailable for an interview.
justify all the spending and doesn’t unwilling to carry out a drastically a necessary condition for the Games One word dominated the an- Several medical experts raised
want to stage an Olympics without reduced Games, meaning they’re to go ahead, but said the organizers swers: vaccine. the possibility of banning all fans—
fans to minimize the risk of the vi- counting on a resolution, not a miti- were in close contact with the “We are likely to have waves of perhaps the greatest blow to the
rus spreading. gation, of the virus. World Health Organization and Covid-19 well into 2021 and the only Japanese in terms of a return on
In the middle is the very real risk Last week, Japanese Prime Min- other medical authorities. way to safely travel and accommo- their investment. The organizing

.
that Japan could spend additional ister Shinzo Abe responded to a The Journal asked 10 infectious date a huge population of athletes committee has projected $800 mil-
billions to prepare for Olympic question in parliament by saying disease experts what it would take and spectators, we would need to lion in ticket sales, which doesn’t

ly
Games that never take place. the Tokyo Olympics should be held to guarantee a normal Games. The have an effective, widely distributed include concessions and souvenirs,
Japan is already spending $240 only in their complete form, which Olympics represent perhaps the vaccine that created a form of herd hotel stays and other potential ben-
billion on social welfare and eco- he said would be impossible if the most challenging proposition on the immunity,” said Lawrence Gostin, the efits to the wider Japanese econ-
nomic support to counter the im-
pact of the coronavirus. “We know
we have to keep Olympic costs min-
imized as much as possible in order
pandemic has not come to a conclu-
sion. The Games should serve as a
symbol of humankind’s triumph
over the disease, Abe told lawmak-
on planet during a pandemic. They
draw tens of thousands of athletes
and officials from more than 200
countries together, pack them into
director of the World Health Organi-
zation’s center on global health law.
“It really is going to be depen-
dent on what happens with the vac-
omy. Having no fans in attendance
also could affect the $3.3 billion in
local sponsorships sold.
—Peter Landers
to get buy-in from the people,” said ers, “and if we are not in that situa- an arena for an opening ceremony, cine, because that’s really going to contributed to this article.
us ,
l
e
al a

Return Puts Older Staffers at Risk

ci on

BY ANDREW BEATON AND BEN COHEN coaches in the four major American industry. New England Patriots
sports leagues is remarkably con- coach Bill Belichick is 68, which

FROM TOP: PHILIP FONG/AGENCE FRANCE-PRESSE/GETTY IMAGES; BUTCH DILL/ASSOCIATED PRESS

THE EMPLOYEES ARE YOUNG, sistent: NFL (50 years old), NBA makes him even older than Brady,
er s

healthy and in extraordinarily good (52), MLB (52) and NHL (52). There and San Antonio Spurs coach Gregg
shape. There are huge swaths of the are 24 coaches who are older than Popovich is the oldest in the four
m er

country that consider their jobs es- 60, which amounts to nearly 20% of major leagues at 71.
sential to restoring national spirit. them, and nine who have already The age gap between college ath-
And there are so many rewards for celebrated their 65th birthdays. letes and their coaches is even
American sports coming back to life That’s the age linked with the high- wider. These coaches have more in
that every league is trying desper- est risk of severe illness from common with the grandparents of
m rp

ately to end this shutdown. Covid-19, according to the Centers their players. They’re some of the
But the risk is not simply limited for Disease Control and Prevention. only people on Earth who are older
to professional athletes—and that’s Executives from multiple leagues than 60 and required to be fluent in
one of the many problems that say the health and safety of coaches TikTok.
sports officials are trying to solve is a legitimate concern they will The best coach in college football
co Fo

in the greatest crisis of their lives. have to consider as they strategize is Nick Saban. He’s 68. That also Bill Belichick chats with Nick Saban at the Senior Bowl. Both coaches are 68.
They also have to worry about how to return to action. And it isn’t makes him one of the oldest
the health and safety of coaches. just big-name coaches. There are coaches in college football. His ex- State’s Leonard Hamilton (71), Mi- duce the risk of infection, but the
In perhaps no industry is the age other staffers, from assistants to perience has always been a virtue. ami’s Jim Larranaga (70) and North players themselves wouldn’t be the
gap between star employees and executives to referees, who are part Now it’s a potential vulnerability. Carolina’s Roy Williams (69). only people in these protective bub-
their bosses wider than it is in of that older demographic and put- Meanwhile the mighty Atlantic The ages of these recognizable bles. Even if the leagues attempt to
sports. Almost every professional ting themselves at risk by returning Coast Conference is basically a re- figures might seem like random return with skeleton crews and lim-
athlete not named Tom Brady is in to work. tirement community for basketball trivia, but it could be a vital subplot ited staffs, the future of their sports
his or her 20s or 30s. The same What makes this situation even legends. In the ACC alone are five as their respective sports chart a might be tied to this ethical di-
can’t be said for their office col- trickier to navigate is that older coaches above the age of 65: Syra- path back to action. lemma: Is it worth exposing the
leagues. head coaches happen to be among cuse’s Jim Boeheim (75), Duke’s The NBA and MLB have consid- coaches whose jobs don’t let them
The average age of the head the most successful people in their Mike Krzyzewski (73), Florida ered plans to isolate players to re- work from home?
n-

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
20s <0 1 2 3 4 5 6 7 8 9 10 11 12 Down
13 31 Letters on many
no

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50s 60s 50s 40s
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Mpls./St. T t
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Boise 50s 27 28 29 4 Difficult demand 37 Danny formerly
70s 50s ff l
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50s t
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60s Des Cleve d 70s 30 31 32 33 34
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DC 35 36 37 38 39 40 eggs 38 App identifier
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Louisville 60s 7 Grammy winner 40 Garden shop
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Atl t C
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70s Warm Rain
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Jackson
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30s 40s t
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San
Tampa 11 Ferdinand’s wife blackjack
50s Honolulu 90s Showers Flurries 66 67 68 combo
Anchora
A h
Anchorage Miami 12 Made baby food
70s Ice out of 48 Weather app
BARMEN | By David Poole 13 Fragrant
notifications
U.S. Forecasts City
Today Tomorrow
Hi Lo W Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 27 Predators’ 50 Apollo 11 compounds 49 Shot
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
Omaha 63 41 pc 59 38 r Frankfurt 64 40 s 70 46 s 1 Stately steed target astronaut who 18 Texter’s qualifier 51 Air traveler’s
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 89 61 pc 79 56 s Geneva 67 46 pc 72 50 pc 28 Relinquish did not walk on choice
5 P look-alikes 22 Guy with guitar,
Today Tomorrow Philadelphia 55 44 r 66 48 pc Havana 90 70 t 87 68 t the moon 52 Vegged out
City Hi Lo W Hi Lo W 9 Credit card 29 Wanders in slang
Phoenix 107 74 s 105 74 s Hong Kong 87 79 sh 87 79 sh 54 Makeup of many
(about) 53 Head of
Anchorage
Atlanta
57 40 s
70 44 pc 69 49 s
55 41 pc Pittsburgh 50 34 r 60 38 pc
Portland, Maine 56 41 pc 55 41 sh
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Jakarta
70
92
52 pc
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14 Roll along the 30 Contribute joke 24 “Back in Black”
Austin 86 56 pc 88 70 pc Portland, Ore. 64 41 c 75 53 s Jerusalem 65 51 pc 72 53 s 58 Mined find
Baltimore 53 43 r 66 48 pc Sacramento 85 56 s 93 55 s Johannesburg 73 44 pc 71 47 pc runway 31 Scrape reminder 55 Pioneering ISP band
Boise 62 37 pc 66 41 s St. Louis 64 46 c 69 48 pc London 64 43 s 69 49 pc 15 Luxury hotel 33 Call from a 25 Smoothie berry 59 Worker in a
Boston 52 41 pc 54 44 sh Salt Lake City 79 42 pc 63 43 s Madrid 79 53 pc 82 55 pc 56 Figures outside a flower garden
Burlington 59 39 pc 61 35 pc San Francisco 74 51 pc 75 50 pc Manila 98 82 s 96 82 t chain nanny parking garage 26 Co-star of
Charlotte 69 42 pc 68 44 s Santa Fe 82 48 s 83 42 pc Melbourne 68 57 pc 71 55 pc 35 Evening socials, Kudrow and 60 “Ciao!”
16 “The Stranger” 57 Director of
Chicago 62 44 c 64 40 pc Seattle 61 44 c 66 48 pc Mexico City 77 52 t 74 52 t or a punny Schwimmer 61 George’s lyricist
Cleveland 54 38 sh 60 37 pc Sioux Falls 61 38 pc 60 30 sh Milan 70 52 pc 76 54 s
author 2007’s
description of “Halloween” 27 Campaign- brother
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Detroit
Honolulu
61 39 pc 62 36 pc
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Rio de Janeiro
68
85
44 pc
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director 57-Across
63 Staggering
Today Tomorrow 41 Showery mo. Previous Puzzle’s Solution
Houston 85 60 pc 84 71 s Riyadh 99 73 pc 97 74 pc 19 Ward off 64 Ancestry A B C S S AWS B O L O
Indianapolis 60 39 pc 67 46 pc City Hi Lo W Hi Lo W Rome 71 53 pc 72 51 s 42 Aren’t wrong?
20 D’Artagnan, to representation S P E A K C L AW I B I D
Kansas City 62 42 pc 59 44 t Amsterdam 60 40 s 63 46 s San Juan 90 79 pc 91 77 pc A R E N A H I R E G O A D
Las Vegas 99 72 pc 93 69 s Athens 77 60 pc 66 54 t Seoul 80 54 s 80 55 pc Athos 43 Whisper sweet 65 Governess at L I F E T I M E M E M B E R S
Little Rock 73 48 s 70 56 pc Baghdad 85 63 pc 90 64 s Shanghai 75 66 c 76 69 c nothings Thornfield Hall T L C V O N T O E
Los Angeles 91 66 s 96 61 s Bangkok 100 85 pc 99 84 pc Singapore 89 80 t 88 79 t
21 Nazareth A H O Y S P O N S O R
setting 44 Blind as ___ 66 Former second D E T E R WOM E N TWO
Miami 93 71 s 87 69 s Beijing 81 55 pc 64 54 sh Sydney 73 51 pc 74 61 pc E X T R E M E M E A S U R E S
Milwaukee 57 42 c 56 34 pc Berlin 60 43 pc 60 43 s Taipei City 90 75 t 85 76 t 47 Singer Aimee lady Cheney M E L G O R G E E V A D E
23 Seven-time I C E C A V E S T A T
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Nashville 60 43 pc 70 50 pc Buenos Aires 60 50 pc 61 50 pc Toronto 55 37 c 51 31 sh
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for “Seinfeld” farewells 68 “You’re on!” W E L C O M E M E S S A G E S
New Orleans 83 60 pc 79 64 s Dubai 98 82 pc 98 81 pc Vancouver 59 42 r 61 46 s AMO K E V I L A B E T S
New York City 54 45 r 65 47 pc Dublin 56 48 pc 63 46 sh Warsaw 53 37 r 60 36 pc D I K E N E L L D E MO N
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 76 53 s 77 50 pc Edinburgh 62 39 s 64 46 c Zurich 63 37 s 70 44 s S T I R T R E Y A L S O

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
OPINION
Disinfecting Journalistic Ethics
I finally read
the lengthy
transcript of
President
Trump’s
April 23
press confer-
BUSINESS
ence but it
WORLD
turned out to
By Holman W.
be unneces-
Jenkins, Jr.
sary. Under
the heading
of “If your time is short,” the
Poynter Institute’s PolitiFact
website kindly summarized:
“The briefing transcript shows
that Trump did not say people
should inject themselves with
bleach or alcohol to treat the
coronavirus. He was asking of-
ficials on the White House
coronavirus task force
whether they could be used in
potential cures.”
It was a reporter in the au-
dience who asked an accompa-
nying official: “The President
mentioned the idea of clean-
ers, like bleach and isopropyl
alcohol you mentioned.
There’s no scenario that that
could be injected into a per-
son, is there?”
No, was the answer, but the
question was apparently
enough for a few dozen com-
mon-run-of-humanity journal-
ists to create a 99% fake story,
and it’s not hard to guess why:
clicks and page views; cable
channels whose business
model depends on a steady
flow of contempt for Mr.
Trump and his voters.
A New York Daily News
story pointed to a spike in
callers to the city’s poison
control hotline “over fears
that they had ingested bleach
or other household cleaners in
A Bipartisan Plan to Support State Budgets
As the Senate
returned to
Washington
this week, the
debate over
aid to state
POLITICS and local gov-
ernments
& IDEAS
heated up. Al-
By William
though many
A. Galston
Republicans
are loath to
fund what they see as a blue-
state bailout, Majority Leader
Mitch McConnell’s suggestion
that hard-pressed states
should consider bankruptcy
was poorly received on both
sides of the aisle. Federal law
doesn’t allow states to declare
bankruptcy, and it’s probably
unconstitutional. The Con-
tracts Clause prohibits states
from “impairing the obliga-
tion of contracts,” language
that the Supreme Court has
consistently interpreted to
rule out state bankruptcy.
As the 2007-09 recession
devastated the U.S. economy,
state and local revenues fell
from $3.1 trillion in 2007 to
$2.1 trillion in 2009. States
were forced to retrench, re-
ducing payrolls by 600,000
jobs from 2008 to 2013.
no
Over 2008-18, states slashed
support for public higher
education by 13% per stu-
dent while increasing tuition
by 37%, shifting the finan-
cial burden to students and
their families. And they re-
duced spending on public-
health systems—now sorely
needed amid the Covid-19
pandemic.
In the wake of the 2007-09
recession, austerity at the
Phase Out, Don’t Bail Out, the Post Office
By Gary MacDougal
A
small blessing of the
lockdown is that we’ve
been spared the usual
task of throwing half or more
of the day’s mail into the trash.
As advertising dries up, the
junk simply doesn’t get sent.
Meanwhile in Washington,
there are calls to bail out the
post office. “We cannot allow
Donald Trump to use this hor-
rific pandemic as an opportu-
nity to bankrupt and privatize
the Postal Service,” said Sen.
Bernie Sanders in announcing
an April 21 virtual town hall
with postal-union leaders.
Postmaster General Megan
Brennan asked taxpayers for
$75 billion. Mr. Trump declined
to support such funds in the
last stimulus, which included
only a loan. But the president
insists the USPS raise prices on
packages it delivers for Ama-
zon—never mind that package
delivery is an intensely price-
competitive business, and UPS,
FedEx and Amazon itself stand
the 18 hours that followed
President Trump’s bogus
claim that injecting such prod-
ucts could cure coronavirus.”
Notice both the untruthful-
ness and absurdity of this sen-
tence. The callers “feared”
that Mr. Trump’s words some-
how prompted household
cleaners to jump down their
throats? What the city dubbed
its “case management” actu-
ally meant responding to call-
ers saying, “Yuck, yuck, I
drank Lysol because Trump
suggested it.” Not only were
there no poisoning cases.
Pranksters didn’t get the idea
from Mr. Trump but from the
press’s version of what Mr.
Trump said.
Which should remind us
that Jussie Smollett-style fake
stories happen (and happen,
and happen) partly because of
the media’s own complicity.
The Washington Post,
which would later flog the
Lysol story, didn’t mention the
subject in its “3 takeaways
from Thursday’s White House
coronavirus briefing” pub-
lished soon after the event. A
writer at the Atlantic com-
plained that the episode had
made America an overseas
“laughingstock.” She might
have noticed that foreigners
weren’t judging for them-
selves. They were imbibing,
unvetted, the attitudes of the
U.S. media.
Abraham Lincoln waved off
impromptu speaking invita-
tions, saying a president
couldn’t afford to appear fool-
ish. That’s not Donald Trump
but reporters have had four
years to get used to his blurt-
ing out offhand, half-formed
us ,
l
e
al a
state level retarded the pace
of recovery in output and em-
ci on
ployment. States risk repeat-
ing this disaster if they’re
forced to reduce their opera-
tions while Covid-19 devas-
tates their economies.
er s
Yes, some states have
managed their finances better
m er
than others. But no state is
responsible for the huge rev-
enue losses Covid-19 has trig-
gered, and few will be able to
continue unaided. By the end
m rp
of 2019, states had filled their
rainy-day funds to a record
$74.9 billion—an impressive
sum, but only a fraction of
what will be needed in these
co Fo
catastrophic times.
At this critical juncture,
fortunately, a bipartisan solu-
tion is emerging. It has an in-
teresting history. Some years
ago, I helped found No La-
bels, a bipartisan organiza-
tion that seeks to reduce par-
tisan polarization. No Labels
helped start the 50-member
Problem Solvers Caucus in
the House. The Problem Solv-
ers are evenly balanced be-
n-
tween Democrats and Repub-
licans and have scored
impressive victories in recent
years, including changes in
House rules that give biparti-
san coalitions a better chance
of succeeding over the objec-
tions of leaders.
In recent months, No La-
bels has sponsored a series of
bicameral meetings involving
the Problem Solvers and sen-
ators of both parties who
share the goal of breaking
partisan gridlock. These
meetings are now bearing
fruit. Chaired by Reps. Tom
ready to take the business if
the USPS is no longer the low
bidder.
The post office has made
some changes in recent years.
Its package business is more
competitive with UPS and
FedEx and it cooperates with
them by assuming some “last
mile” deliveries in unprofitable
Nostalgia shouldn’t
keep alive an agency
that is obsolete.
remote areas it is required by
law to serve. But first-class
mail, the USPS’s core business,
has been dwindling for years
thanks to email and online bill
paying. The bottom line: 13
straight years of losses, almost
$9 billion in fiscal 2019.
The responsible course is to
set the Postal Service on a
careful path to liquidation.
This can be done in a way that
wisely uses USPS assets, such
thoughts that even his fans
don’t take seriously.
Good journalism does not
consist of lying. It does not
consist of competitive adven-
turism in twisting these epi-
sodes to make them better
stories than they are.
I knew something was up
when, during the 2016 Demo-
cratic convention, the pro-
gressive journalist Cenk Uygur
on ABC News accused Mr.
Trump of comments that took
Donald Trump’s
‘Lysol’ moment says
more about the media
than it does him.
a “fallen U.S. soldier and puts
him in the same camp as radi-
cal Islamic terrorists.”
What Mr. Trump said about
Capt. Humayun Khan, a U.S.
soldier killed in Iraq, was fool-
ish, but it wasn’t that. I knew
then we were off to the races
if the media decided it could
put words in a public figure’s
mouth with impunity.
After this year’s State of
the Union, Sen. Kirsten Gilli-
brand declared the president a
“liar” for saying prescription
drug prices had fallen. How
did she know? Because, she
explained to National Public
Radio’s Brian Lehrer, an un-
identified voter at some un-
specified moment in Ms. Gilli-
brand’s past had complained
about high drug prices. That
on
was the entirety of her rea-
soning.
In fact, the usual fact-
Reed, a New York Republican,
and Josh Gottheimer, a New
Jersey Democrat, the Problem
Solvers are crafting an aid
bill for state and local gov-
ernments that both parties
can support. New Jersey’s
Sen. Robert Menendez, a
solid liberal on domestic pol-
icy, and Louisiana’s Sen. Bill
Cassidy, a conservative with
a strong record of support for
President Trump, are heading
up a parallel effort.
The Problem Solvers
proposal would cost
$500 billion, half of
Pelosi’s favored sum.
The House and Senate
teams are coordinating their
efforts and aim to introduce
identical bills in both cham-
bers as early as Wednesday.
The negotiators have al-
ready agreed on most key
points. New aid for states
and localities will total $500
billion, less than the $1 tril-
lion Speaker Nancy Pelosi
wants but more than three
times the $150 billion that
was appropriated for this
purpose in the Cares Act.
Legislators say the aid will
be allocated in three equal
baskets—on the basis of pop-
ulation, the extent of
Covid-19 infections, and reve-
nue losses attributable to
Covid-19, respectively. Some
aid will go directly to towns
and other substate jurisdic-
tions—an improvement on
as the 31,000 post offices,
most of which are on valuable
property in commercial areas,
to wind the business down.
Crucially important would
be dealing humanely with the
workforce of 600,000—offer-
ing early retirement for senior
employees and assistance for
remaining employees in find-
ing a new job. An experienced
outplacement firm could con-
nect employees with new op-
portunities. In some cases the
USPS could pay moving ex-
penses to those who have to
relocate to take a new job.
Amazon, FedEx, DHL and
UPS would all need to add em-
ployees to accommodate the
delivery volume now handled
by the post office. The govern-
ment can help with their train-
ing. Many would seize the op-
portunity to advance their
careers. Postal-union leaders,
junk-mail purveyors and their
political allies would complain
loudly and keep demanding
taxpayer dollars.
The combination of UPS,
checking sites found Mr.
Trump’s statement to be accu-
rate. What was peculiarly de-
moralizing for the media was
Mr. Lehrer’s failure as a re-
porter to let his audience
know that Ms. Gillibrand’s ar-
gument was completely non-
pertinent to her claim.
It’s not that objective in-
quiry into the facts and logic
of events is even difficult. It
just has become irrelevant to
journalists thriving in today’s
professional milieu. We’ve be-
come more Trumplike than we
care to admit, panting for the
spotlight, desperate to say
something colorful. Or maybe
it would be more accurate to
say Mr. Trump modeled his
own intellectual sloppiness on
the cable TV that he consumes
in such large doses. Nowadays
an insidious rationale has in-
truded: Reporters are actually
praised for “advancing the
narrative”—i.e., finding
“facts” to support a desired
story line.
If this is what our industry
really is coming to, we de-
serve everything the internet
and cord-cutting have done to
us. By the way, an intelligent
public (whatever portion of
the public that description
might represent) does not suf-
fer under the exchange: If any-
thing, they are oversupplied
with interesting, original
thought and knowledge, often
supplied at the provider’s own
expense, by dozens of high-
quality volunteers on blogs
and social media, easily found
amid the dreck. We only suc-
ceed in increasing their rele-
vancy as we decrease our
own.
the Cares Act, which re-
stricted direct assistance to
localities with populations of
at least 500,000.
One concern is that as lo-
cal governments receive aid
directly from Washington,
state governments will cut
their funding, leaving local
governments with no net rev-
enue gain. Negotiators are
working on a mechanism to
discourage this perverse
“shell game.”
During the Covid-19 crisis,
the states have functioned as
independent centers of public
policy, in accordance with
our constitutional design.
Their ability to reflect di-
verse circumstances and po-
litical cultures is a source of
national strength. Some are
reopening businesses and
public areas quickly, others
more incrementally. There is
variation within states as
well as between them. Mea-
sures that are vital in densely
populated cities may be su-
perfluous in small towns and
rural areas, which is why
subordinate jurisdictions
need the ability to chart their
own paths and the funding to
pursue them.
As America’s system of
federalism has evolved, most
state constitutions ban state
governments from running
deficits. Through its power
to borrow in times of need,
the national government can
help states maintain basic
services and become partners
in the economic recovery.
Congress should pass a bi-
partisan bill to do this with-
out delay.
FedEx, DHL, Amazon and
countless local delivery com-
panies would pick up the slack
left by the wind-down of the
post office. Smaller delivery
companies may find an oppor-
tunity to expand to handle
last-mile delivery in remote ar-
eas. If that isn’t enough, Ama-
zon and others could charge
more for deliveries to ex-
tremely remote locations.
Yes, there is nostalgia. I
worked as a temporary Christ-
mas mailman when I was in
college, and the post office is
one of the few government
functions mentioned in
(though not mandated by) the
Constitution. But then many of
us look back fondly at iconic
businesses like Kodak and
Sears, both now shadows of
their former selves. Should the
taxpayers have bailed them
out, too?
Mr. MacDougal has been a
partner of McKinsey & Co., a
CEO of Mark Controls Corp.
and a director of UPS.
Wednesday, May 6, 2020 | A13
BOOKSHELF | By Melanie Kirkpatrick
Winning the
Right to Heal
No Man’s Land
By Wendy Moore
(Basic, 353 pages, $30)
W
hen Britain declared war on Germany in August
1914, politicians set aside their differences to fight
the common enemy. So, too, was a truce declared
between the sexes in the battle for women’s voting rights.
Among the women who stepped forward to serve their
country were two suffragists: Louisa Garrett Anderson, a
surgeon, and Flora Murray, an anesthetist. At a time when
Britain’s few female doctors were not permitted to treat
men, Anderson and Murray established a hospital for
wounded soldiers that was staffed by women—doctors,
nurses, orderlies, administrators, cleaners.
In “No Man’s Land,” British writer Wendy Moore recounts
the story of Endell Street Military Hospital in London and
the trailblazing women who worked there. Based on diaries,
correspondence and newspaper accounts, it’s an absorbing
and powerful narrative of how two determined women
used the crisis of war to create an opportunity to
accomplish goals that they couldn’t achieve in peacetime.
The establishment of a military hospital run by women
was controversial. Such
were the commonplace
assumptions about the
inferiority of women in
general and female doctors
in particular that in the
hospital’s early days wounded
soldiers believed that the
army had deemed their cases
hopeless and sent them to
Endell Street to die.
.
By the time the war ended,
however, Endell Street had
ly
earned a reputation as the finest
military hospital in London. The
doctors—Anderson, Murray and
colleagues they recruited from Britain,
Australia, New Zealand, Canada and the U.S.—
went from being derided as incompetent and unladylike to
winning the respect and admiration of the public, the
military and their own profession. In the words of the head
of British Army medical services, Sir Alfred Keogh, who
risked his career and his reputation to support the women:
“We were watched, but you have silenced all critics.”
While Anderson and Murray aimed to be accepted as
medical professionals whose work was as good as men’s,
they didn’t reject their essential femininity. Operating on
the belief that their patients were wounded mentally as
well as physically, they introduced flowers, music and
cheerful décor into the hospital wards to help with healing.
Ms. Moore applauds the duo’s “nurturing approach to
treating the war wounded.”
In its treatment of severely wounded soldiers, Endell Street
was also at the forefront of medical research. Anderson
became known for her surgical prowess in mending compound
fractures; she wrote about infection control for the esteemed
medical journal the Lancet; and she helped popularize a
treatment with a powerful antiseptic ointment (known by the
acronym Bipp) that saved the lives and limbs of countless
wounded men. Staff and volunteers devised lightweight
splints for upper-arm fractures from papier-mâché, crafted
crutches and prosthetic limbs for amputees, and pioneered
physical therapies to strengthen atrophied muscles.
Ms. Moore has an eye for detail that brings her story to
life. The wounded arrived at Endell Street with “the stink of
the trenches still clinging to their uniforms.” Middle-class
volunteers who “had never seen a man shirtless before were
suddenly having to perform intimate tasks for male patients
as hospital aides.” Describing the privations of wartime
London, she notes that the flower beds at Buckingham Palace
were replanted with potatoes and that bread shortages were
so acute that it was illegal to feed crumbs to pigeons.
In 1915, a time when few female doctors were
allowed to treat men, a military hospital was
opened in London—and staffed entirely by women.
Given the discrimination and injustice they faced as
doctors, Ms. Moore observes, “it was little wonder” that
Anderson and Murray had been drawn to the fight for
women’s rights. The two women became friends during
the course of their work as volunteer doctors to suffragists
who, in the decade before the war, had been injured in
marches or had survived hunger strikes in prison. Anderson
herself did hard time in prison for throwing a rock through
the window of a house during a march.
During the war, the two doctors never stopped
advocating on behalf of women. They argued that women
doctors who worked for the army should be awarded
military ranks equivalent to men’s and issued uniforms
with shoulder pips identifying them as officers. They
lobbied, too, for female doctors to receive the income-tax
exemption granted to male doctors. They condemned a law
that aimed to curtail the spread of venereal disease among
the troops by arresting prostitutes but not the men who
hired them. They objected to the disparities in the 1918
election law that gave voting rights to soldiers at the age
of 19, other men at 21, and women at 30.
Ms. Moore describes Endell Street as “a shining beacon
of the potential of women.” Its success, she says, opened
doors to medical education and jobs for women. Some
doors, however, remained shut, and after the war women
doctors continued to face barriers. “The war had changed
everything, and nothing,” Ms. Moore writes. A few more
medical schools accepted female students while general
hospitals, which had not hired women in the prewar years,
now sometimes took a chance on one. After Endell Street
closed in 1919, Anderson and Murray returned to the
children’s hospital where they had worked before the war.
What did these two women, who had faced so much
hostility and sexism in the course of their careers, think of
men? “No Man’s Land” doesn’t fully answer that question
beyond noting that their exposure to the valor and
suffering of the young soldiers they treated helped them
see men’s best side. It also relates how they advised a
young doctor in their employ not to marry but instead to
focus exclusively on her work.
Anderson and Murray shared living quarters for many
years. In Ms. Moore’s deliberately ambiguous phrase, they
formed a “lifelong loving bond.” She declines to speculate on
whether they had a sexual relationship. Murray died in 1923
while Anderson survived 20 more years. The stone above
their shared grave reads: “We have been gloriously happy.”
Ms. Kirkpatrick, a senior fellow at the Hudson Institute,
is a former deputy editor of the Journal’s editorial page.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Judicial Code of Misconduct Biden: Follow Reagan’s Document Precedent

H
ere’s one for the books: The ethics com- eral judges—a majority of them appointed by Mr. Your editorial “Biden’s #MeToo De- full access to the FBI whose agents
mittee that wants to bar judges from be- Trump—in signing a letter that defends their nial” (May 2) criticizes former Vice searched the entire collection page by
President Joe Biden for setting one page (about 500 boxes). The House
longing to the Federalist Society be- right to be affiliated with the group, the Federal-
standard in the Tara Reade case: “Look committee wanted its own search.
cause it is supposedly too ist Society.” into it. . . . rigorously investigate Understandably, Reagan didn’t want
political is now being used as An ethics advisory The horror. The horror. A claims,” and a different one in the to grant the Democrats the same carte
a political weapon against a ju- committee is used to judge who belongs to the Fed- Brett Kavanaugh case. In fact, he hasn’t blanche access he had given the FBI.
dicial nominee. eralist Society, as dozens of followed either standard. When Mr. Bi- To resolve the problem, the House
Let’s unspool the political defeat a nominee. others do, signed a letter de- den was asked if he would open his pa- committee and the president’s lawyers
skulduggery. In January we told fending membership in the pers at the University of Delaware, he agreed to a second, collaborative
you about the draft advisory group. The story rolls through told Mika Brzezinksi (MSNBC, May 1): search by the Hoover archivist and of-
opinion by the Committee on Codes of Conduct of the usual fantasy political offenses of the Feder- “I don’t know of anybody who’s done ficials of the Government Accountabil-
the U.S. Judicial Conference. The committee, com- alist Society and, inevitably, calls on the Senate’s anything like that.” President Reagan ity Office. The committee got the re-
posed of 15 or so judges, sets ethical guidelines for main antagonist of conservative judges, Sheldon did it in the Carter debategate case. sults of both searches.
In 1983, the Democrats learned that In addition, as the archivist respon-
the judiciary. The committee had circulated a draft Whitehouse (D., R.I.) for an above-the-fray, fair-
a Carter debate briefing book had sible for the collection, I was deposed
that reversed decades of policy by saying judges minded, thoughtful comment. Or not. come into Reagan’s possession before under oath to give assurance that the
shouldn’t belong to the Federalist Society or Reports the Times: “‘The Federalist Society the 1980 presidential debate. The Dem- collection’s integrity had been continu-
American Constitution Society (ACS). has become so significant in the judicial selec- ocratic-controlled House Committee on ously maintained while in Hoover’s
The draft offered a phony political balance tion process,’ Mr. Whitehouse said in an inter- Post Office and Civil Service asked custody. Both sides agreed that the in-
because the Federalist Society leans right and view. ‘That is a particularly noxious role for an President Reagan to open his campaign terests of all were met. In its general
ACS was created as a liberal counter to the Fed- organization that has judges as its members.’” records, then stored in the Hoover In- principles, here is a way for Mr. Biden
eralist Society. But the ACS plays an active role The Times did not report that Mr. White- stitution Archives at Stanford Univer- to meet his new standard.
in political issues while the Federalist Society house has a friend and long-time legal collabora- sity. I was Hoover’s acting archivist at CHARLES G. PALM
avoids taking sides on policy and doesn’t file am- tor who contributed to the Codes of Conduct the time. In response, Reagan granted Palo Alto, Calif.
icus briefs. The Federalist Society is composed draft. His name is John McConnell, a former
of chapters, notably at law schools, that host de- Rhode Island plaintiff lawyer who is now a fed-
bates and panels on legal issues that often in- eral district court judge. The main Senate spon-
clude giants of the legal left. sor of Judge McConnell’s nomination? Sheldon Don’t Be Fooled By the ‘Donor State’ Label
Our editorials echoed in the judicial commu- Whitehouse. I was thinking about Ryan Smith states pay more, and the more, the
nity, which has responded with what we’re told We don’t know who leaked the judges’ letter, describing how Illinois gives more to better?
are more than 70 letters to the Codes of Conduct and many people saw it. But the leaker set up the the federal government than it re- STEPHEN J. HELLEBUSCH
Committee. The vast majority oppose the advi- Times reporters to spin the story as an attack on ceives, about $364 per capita (Letters, Dallas
sory draft. A March 18 letter was signed by 210 Judge Walker days before he is scheduled to ap- April 30) compared with Florida and
judges, including such lions of the judiciary as pear before the Senate Judiciary Committee. Mr. Kentucky which get about $2,000 and Illinois is not a “donor state,” and to
José Cabranes of the Second Circuit Court of Ap- Whitehouse is on Judiciary. $9,000 more per capita, respectively, claim, as Mr. Smith does, that “it’s
from the feds than taxpayers in those about time the rest of the country
peals and district court judges Richard Leon and i i i
states pay in federal taxes. starts giving back” is nonsense. Illinois
Royce Lamberth of the D.C. Circuit. All of this raises even more doubts about the I’m surprised. I thought progres- doesn’t contribute even a penny to
“We believe the exposure draft conflicts with fairness and transparency of the Codes of Con-

.
sives strongly endorsed progressive poorer states. Rather, the “contribu-
the Code of Conduct, misunderstands the Feder- duct Committee’s deliberations and advisory taxation. Though we have one of the tions” are paid by individual taxpayers

ly
alist Society, applies a double standard, and draft. As the letter from the 210 judges puts it: most progressive income-tax struc- directly to the federal government.
leads to troubling consequences,” the judges “Yet reports suggest that no member of the tures in the world, calls to tax “the State government in Illinois doesn’t
write. “The circumstances surrounding the issu- Committee was permitted to dissent, despite rich” more and more are constant. pay federal income taxes.
on
ance of the exposure draft also raise serious some members’ strong disagreement with the
questions about the Committee’s internal proce- exposure draft. Other reports suggest that at
dures and transparency. We strongly urge the least one member of the Committee was barred
Ranked by median household in-
come, Illinois (No. 17), New York (No.
16), New Jersey (No. 3) and California
(No. 10) are rich. Florida and Kentucky
Illinois’s good fortune in having
proportionately more high-income tax-
paying residents than Kentucky thus
undermines, rather than supports, the
Committee to withdraw the exposure draft.” from voting on the draft. And the Committee’s
rank No. 38 and No. 46, respectively rationale for a federal bailout of pen-
us ,

That’s what we call feedback. reversal of its prior, settled interpretation—

are poor, according to the U.S. Cen- sion plans established and grossly mis-
l

But here’s the rub. One of the signers is Justin without any relevant change in the Code—raises sus’s American Community Survey, managed solely by Illinois politicians.
e
Walker, a district court judge in Kentucky whom further concerns.”
al a

2020. So by the progressives’ logic, NICK PRICE

Donald Trump has nominated to fill a vacancy We’ll be blunter. This ethics committee is be- shouldn’t those very fortunate rich Elkins Park, Pa.
on the D.C. Circuit Court of Appeals. The political ing manipulated unethically to stigmatize the
ci on

left is trying to stop Judge Walker’s confirma- Federalist Society and now to defeat a judicial
tion, and his Senate hearing is scheduled for this nominee. Chairman Ralph Erickson, a judge on
week. In what is no coincidence, the letter signed the Eighth Circuit, has let his committee be used.
The Vice President Should Have Worn a Mask
by Judge Walker was leaked Sunday to the New If he lets the draft become formal policy, even In “Unmasking the Vice President” hear his message could have joined
York Times. when it is opposed by so many judges, he will (op-ed, May 1), Matthew Hennessey him, but without the required gear,
er s

talks about the wave of indignation he would not have stepped inside. I
Here’s how the daily diary of the judicial left have turned the committee into precisely the po-
from the media about Vice President am amazed the clinic let him in. It
spins the letter: “As the Senate this week consid- liticized body his draft claims to dislike.
m er

Mike Pence’s failure to wear a mask takes a certain amount of arrogance

ers elevating a politically connected judge to an What an embarrassment—to Judge Erickson, while visiting the Mayo Clinic. He to assume that you can flout the
influential federal appeals court, the judge has to the Judicial Conference, and perhaps to the thinks Mr. Pence should be allowed to rules and get away with it, and the
stepped into a fierce ideological debate about a entire judiciary if the committee accedes to Shel- choose to do as he did. Mr. Hen- reason you can flout them is that you
legal group shaping President Trump’s right- don Whitehouse’s agenda. Chief Justice John nessey totally misses why I am angry. can get a coronavirus test, not just
m rp

ward overhaul of the judiciary. Roberts is the official head of the Judicial Con- As a former head of HR/safety, we once but many times, that has not
“The judge, Justin Walker of the U.S. District ference, and he should call Judge Erickson and had rules about the protective gear been available to most of the rest of
Court in Kentucky, has joined more than 200 fed- tell him to kill this draft forthwith. anyone visiting our plant should the country. Mr. Hennessey, it is
wear. If they wore it, they got a tour. these two reasons that many of us
If not, whoever they were, even the are angry. Mike Pence needs to grow
Lockdowns and Double Standards
co Fo

VP, didn’t get in. We would have al- up and act like an adult.
lowed Mr. Pence to stand in the park- CAROL SCHWARTZ

A
ing lot where anyone who wanted to Chino Hills, Calif.
good sign that a government policy is in Britain for urging the government to impose
misconceived is that its most energetic strict shelter-in-place orders.
promoters can’t abide by it.
The coronavirus outbreak
It appears Mr. Ferguson wasn’t sheltering in
place. Or, rather, he was but his
Helping Homeowners Hurt by the Pandemic
has exposed this sort of hypoc- London’s shelter-in- paramour, Antonia Staats, Allowing homeowners to suspend her mortgage payments, which would
risy more than a few times. wasn’t. The Daily Telegraph re- their mortgage payments for a set pe- then be added (together with accrued
Mayor Bill de Blasio famously
place guru is the latest ports that Ms. Staats had riod provides much needed relief, but interest) onto the borrower’s mort-
visited his favorite YMCA for a to break his own rules. crossed London at least twice such a program should be tailored to gage obligations, like a separate sec-
workout even as his office was since citywide lockdowns were minimize the pain to the homeowner, ond-mortgage loan, but which would
as well as to investors and taxpayers have the same senior claim to the un-
telling the rest of New York imposed in March—a clear vio-
n-

(“Break on Mortgages Offers Limited derlying collateral as the existing first

City to stay home. In Chicago, salons and barber- lation of government rules. He has resigned from Relief,” U.S. News, April 24). A possi- mortgage. The SFM would carry the
shops were shut down while Mayor Lori Light- his position as government adviser. “I deeply re- ble solution could be the creation of a current mortgage interest rate. Three
foot allowed herself a haircut. Beaumont, Texas, gret any undermining of the clear messages program for what can be called the months hence, the borrower would be
Mayor Becky Ames flouted her city’s shelter-in- around the continued need for social distancing
no

second first mortgage (SFM). required to pay the mortgage interest

place order to have her nails done. to control this devastating epidemic,” Mr. Fergu- The SFM program would work as rate on his or her original mortgage
On Tuesday we learned about Neil Ferguson, son said. “The government guidance is unequivo- follows: The homeowner would receive loan together with the rate on the
the epidemiologist at Imperial College, London. cal, and is there to protect all of us.” a three-month suspension of his or SFM. Thus, for example, under the
Mr. Ferguson, readers will remember, led the re- To err is human, including for epidemiologi- SFM program, a homeowner now pay-
searchers who predicted that, absent a forceful cal modelers. But the fact that so many high- ing $2,000 a month on his or her cur-
governmental response on movement and com- ranking officials can’t abide by their own lock- Payroll Tax Holiday Would rent mortgage loan, would restart pay-
ment three months hence with a
merce, Covid-19 could cause more than 500,000 down advice suggests that they ought to be more Threaten the Deep State $2,020 monthly mortgage payment,
deaths. That modeling was soon scaled back, but tolerant of others itching to escape confinement The common sense and intuitive instead of having to pay a $6,000 bal-
Mr. Ferguson has since become a familiar figure and adapt their orders accordingly. appeal of Steve Forbes and Arthur loon payment while retaining the orig-
Laffer’s proposal to “Suspend the inal monthly rate.
Payroll Tax” (op-ed, April 20 and the The government would pay the
California’s Lockdown Liberation letters of April 25 in response) should suspended three months of mortgage

C
not distract us from its disadvan- payments directly to the mortgage
redit to California Gov. Gavin Newsom achieved Mr. Newsom’s goal of biding time to tages. It would be much too easy to loan lender or servicer, for which it
for agreeing Monday to lift the state’s build up the health-care system. The state has write a short two- or three-page bill would be repaid by taking ownership
strict lockdown later this week and let 10,000 spare ventilators and 14 field hospitals that would implement the proposal. of the SFM loans. The government
That would make it incredibly diffi- could bundle these loans into mort-
lower-risk counties further re- to handle flare-ups.
cult for legislators to favor select gage-backed securities, which then
lax their restrictions. This is a Gavin Newsom accedes Many local officials have groups either directly or through could be sold on the secondary mar-
concession to political and to growing local been begging Mr. Newsom to loopholes that might be exploited. ket three months after the date of is-
public-health reality, and we let them reopen. Three counties There is quite a bit of micromanaging sue, when the borrowers resume
hope other Democratic gover- pressure to reopen. near the Oregon border decided expertise in Washington that the pro- payment.
nors follow. on their own Monday to let posal wouldn’t avail itself of. VICTOR CHOLEWICKI
Seven weeks ago Mr. most businesses reopen as long Although the proposal would help Washington
Newsom spurred a wave of state lockdowns by as they comply with hygiene and social-distanc- everyone by speeding up an economic
ordering all citizens to stay home. The state’s ing guidelines. Businesses across the state have recovery, it favors those who work,
initial dire predictions of surging fatalities and also started to defy the Governor’s orders. those who want to work and those Pepper ...
who want to hire those who want to
infections overwhelming hospitals have not So Mr. Newsom is wisely conceding to let
work. Do we really want to encourage
And Salt
come to pass. California’s fatality rate (5.8 per most small retailers (toys, books, athletics
productive activity (look at “Our Res- THE WALL STREET JOURNAL
100,000 people) is much lower than those of New goods, clothing) that pose little health risk re- taurants Can’t Reopen Until August,”
York (127.4), Massachusetts (59.9) and even Col- open for curbside pickup on Friday. He will also op-ed, April 22)? Finally, most em-
orado (15.4), whose Democratic Governor is let- let counties lift other restrictions if they show ployees might not think much about
ting businesses reopen. they have enough testing capacity and hospital their payroll taxes, but they are cer-
Los Angeles County accounts for more than beds. Counties can also choose to continue their tain to notice an additional $800 bil-
half of California deaths, and about half of those total lockdowns. lion in their pockets, and that would
have been in nursing homes or prisons. The fa- Letting local officials respond to local public- be a problem. Once the tax goes away,
tality rates in most counties including San Fran- health conditions and constituents makes sense. how would it ever be reinstated?
cisco (3.6), Sacramento (3.1) and Orange (1.9) County-level experiments can also help guide re- HOWARD LANDIS
Naples, Fla.
rank lower than three-quarters of states. Fifteen opening decisions in higher-risk places like LA.
counties have had no deaths, and four have re- There will inevitably be flare-ups, and vulnera-
Letters intended for publication
ported three or fewer infections. ble communities will have to be closely watched. should be emailed to wsj.ltrs@wsj.com.
Social distancing no doubt has helped limit But businesses in Orange County or Fresno Please include your city, state and
the virus’s spread, though California’s popula- shouldn’t be kept on shutdown merely to as- telephone number. All letters are sub-
tion was likely less vulnerable because it is youn- suage anxieties about coronavirus in places like ject to editing, and unpublished letters “But none of the other CEOs
cannot be acknowledged.
ger and healthier. In any case, the lockdown has San Francisco. have to wear helmets, Mom.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A New Standard for Free Trade
By Phil Gramm
And Pat Toomey
T
he U.S. and Britain open
trade talks this week. It’s
surprising that a free-
trade agreement isn’t al-
ready in place given our
special relationship. Bismarck under-
stood the relationship and predicted:
“The most significant event of the
20th century will be the fact that the
North Americans speak English.” A
common language is only a small
part of it. When Margaret Thatcher
mentioned the special relationship
introducing one of us (Mr. Gramm),
he responded by defining the special
relationship this way: “My people
came to America from Prussia, my
wife’s people came from Korea, but
in our heritage and in our hearts we
are British because it was Britain
that taught us to love law and liberty,
and that love is the tie that binds.”
The U.S. and U.K., united
in their devotion to liberty,
should abolish tariffs,
quotas and set-asides.
Not only did a commitment to
economic liberty make the U.K. and
the U.S. rich and powerful; the love
of liberty spawned the open markets
that made us two of history’s great-
est trading nations. Even without a
special trade agreement, the trade
relationship between the U.S. and the
U.K. is strong. According to the U.S.
Commerce Department, Britain is
America’s largest trading partner in
services, its fifth-largest export des-
tination and its seventh-largest
source of imports.
And the exchange of goods and
services pales when compared with
the relative size of capital flows be-
tween the two countries. The U.K. is
the second-largest destination for
U.S. foreign direct investment and
the largest source of foreign direct
investment coming into America. The
U.K. has held that distinction since
The Covid Recovery Comes Down to Engineering
By Guru Madhavan
R
eopening the country in the
midst of a pandemic is akin to
charging an enemy position at
the top of a hill. Recovery and re-
building will test us at every step
with the risk of losing hard-won
ground. But an old military insight
can provide us with surer footing:
amateurs talk tactics, professionals
discuss logistics. Epidemiology es-
tablished the right methods for
fighting individual battles with
Covid-19, from hand-washing to so-
cial distancing, but now it’s time to
talk recovery logistics.
Much of the conversation will come
back to engineering, which historically
has advanced public health far more
than medical care has. Sanitation, wa-
ter supply, electrification, refrigera-
tion, highways, transportation safety,
body scanning and mass production
are a few examples. It’s easy to over-
look how these technologies improve
health outcomes, so consider one
that’s an obvious part of many Ameri-
no
cans’ lives today: the bandwidth nec-
essary for telework.
In 1917, the Danish-born engineer
Agner Krarup Erlang—a bookish red-
bearded bachelor—published formu-
las to manage “teletraffic” better. Er-
lang worked at the Copenhagen
Telephone Co. and was vexed about
capacity problems from call conges-
tion. Even with centralized switching,
phone calls took around 15 minutes
to be connected during peak load. If
a network had more capacity than
demand, service providers lost
money. With less capacity, the calls
would drop as surely as the patience
of the callers. The queuing conun-
drum had been treated separately as
a physics, economics or psychology
problem, but it became a systems-en-
gineering problem in 1918 when the
global influenza pandemic broke out,
months after Erlang’s publication.
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the first settler stepped ashore at
Jamestown, Va., in 1607. Before
World War I, British investment was
a major funder of the American eco-
nomic colossus. Capital from Britain
and labor from all over the world
met in America, fell in love, and be-
got the most prosperous nation in
history.
A free-trade agreement between
the U.S. and the U.K. would allow us
to build on those substantial founda-
tions and set a new standard for
world trade, seldom equaled since
the fall of Rome. That’s what Presi-
dent Trump says he favors: “You
want tariff-free. No barriers, and you
want no subsidies.”
Trade agreements among nations
with different legal systems require
negotiations on common rules, a dis-
pute-resolution system, and a pro-
cess for adjudicating violations. But
since the U.S. and U.K. already have
the world’s strongest property-rights
on
guarantees, the best and most similar
legal systems, and similar regulatory
processes, our goal should be to
agree to let the British system apply
to all Americans doing business in
us ,
Britain and the U.S. system apply to
l
all Britons doing business in the U.S.
e
al a
Such an agreement would respect
the sovereignty of both nations and
prevent protectionist interests from
ci on
imposing trade restrictions in the
er s
By the early 1920s, about 1 in 8
m er
people in the U.S. had a phone con-
nection. Phones rang with announce-
ments, weather reports, schedules
and even lullabies for babies. Phones
made social distancing possible dur-
m rp
ing the pandemic. People conducted
over-the-phone get-togethers, a habit
being revived now as virtual meet-
ings, hangouts and happy hours pro-
liferate. The logistics became de-
co Fo
pendable, thanks in part to Erlang’s
work.
Today many people take for
granted the systems engineering
needed to maintain our far more
complex internet and mobile net-
works. As with many vital services,
only the malfunctions garner at-
tention.
But this and many other over-
looked engineering systems will be
vital to the logistics of reopening.
Consider the stable supply of water,
n-
phone, groceries and internet. Think
also of electric power grids, servers,
data centers, gas systems, waste pro-
cessing, express product delivery. Re-
sources that are now primarily con-
sumed by residential loads will see
shifts back to the commercial sector
as operations reopen. These demands
will need to be nimbly managed
against Covid-specific needs: how to
mass-produce testing kits, cleaning
supplies, effective vaccines and af-
fordable therapies, as well as how to
deliver them in billions under a tight
schedule. While the Covid-19 episode
is novel in many ways, the engineer-
ing logistics required for recupera-
tion are fairly standard but require
flexible supply chains.
Consider how engineers like Mar-
garet Hutchinson improved penicillin
from a petri-dish discovery in 1928 to
its lifesaving use in World War II.
Feats of manufacturing and logistics
allowed the production of 400 mil-
lion units by spring 1942. By fall of
1945, 650 billion units of the antibi-
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OPINION
AFP/GETTY IMAGES
name of labor rights, the environ-
ment or rule-of-law issues. The U.S.
is in the midst of a massive deregula-
tory process, which has spawned eco-
nomic growth and promoted public
well-being. Britain is leaving the Eu-
ropean Union, which has trampled on
British sovereignty, to escape its
crippling regulatory structure. Ac-
cepting the sovereignty of the rule of
law in both countries with a simple
requirement of equal justice under
law allows us to establish a common
market without imposing a common
regulatory master.
Lowering trade barriers benefits
all nations that engage in the pro-
cess, but like economic growth, trade
brings with it a wave of creative de-
struction. Consumers and competi-
tive producers win, and inefficient
producers are forced to give way to
those that can produce better prod-
ucts at lower prices. If the losers
have political power, they will oppose
the agreement or seek specific pro-
tection by limiting the areas where
trade is opened.
Fortunately, almost half of U.S.-
U.K. trade is in services, where rela-
tively open markets already exist. By
far the largest area of service trade is
in business and finance. During our
Senate careers we have frequently
heard from those seeking protection
from trade, but no one has ever
otic were available every month for
civil and defense purpose. (A dose
consists of thousands of units.) The
production protocols standardized
then are still in use today.
Don’t believe it? Look at
the logistics required for
the broadband everyone
teleworking enjoys.
Sir Ronald Ross, the polymath No-
bel-winning physician who discov-
ered mosquito-borne malaria trans-
mission, once said that it takes at
least a decade to understand a new
idea. The coronavirus pandemic has
compressed that calendar. We are
faced with an evolving microbe, and
it will require a deft response. With
dozens of simultaneous emergencies,
A Covid-Era Wedding,
Small but Not Intimate
By Lou Weiss
M
Pittsburgh
y parents had the ugliest
wedding ever. My father,
newly drafted into the Ko-
rean War, was headed to Fort Sill,
Okla. The ceiling tiles in the rabbi’s
study were stained, and one of the
few photographs shows everyone,
including the rabbi, looking away as
my parents kissed. Fifteen people at-
tended. The marriage lasted 65
years.
Beautiful weddings are a dime a
dozen, but a great wedding story is
something special. Our daughter
Molly is to be married Sunday. Origi-
nally it was a destination wedding
for 65 people, next to a lighthouse
on a North Carolina island. When
the virus hit, it shifted to the same
65 people but in Pittsburgh. Now
we’re down to 13 people in face
masks practicing social distancing in
our backyard overlooking the
Monongahela River. Please don’t tell
anyone we’re exceeding the 10-per-
son limit, though the rabbi and two
grandmothers have said that if ar-
rested, they will go peaceably. The
soon-to-weds have responded with
admirable sangfroid, ordering spe-
cial gloves and masks for everyone
in the wedding party—which hap-
pens to be everyone attending the
wedding.
My own wedding was a bit of a fi-
asco. After the ceremony we couldn’t
locate my father-in-law. He was in
the kitchen chasing the caterer
around with a knife. She had double-
booked that morning and was half
an hour late bringing out the hors
pleaded with us to protect bankers,
lawyers, accountants or business
consultants from foreign competi-
tion.
Often the most difficult negotia-
tions in reaching trade-expansion
agreements occur in agriculture. U.S.-
U.K. agriculture trade is now small,
about 2% of our current trade in ser-
vices. The U.K. has historically al-
lowed open importation of food and
currently imports most agricultural
products from the EU. Under a free-
trade agreement, American agricul-
tural products would be significantly
cheaper in Britain than EU ones, and
American farmers and British con-
sumers would be the largest benefi-
ciaries. Britain is, however, a signifi-
cant producer of animal products,
and American beef, poultry and pork
face trade obstacles in Britain under
the guise of health concerns. Dangers
claimed to arise from the use of
growth hormones and bleached
chicken are already impediments to
trade.
The solution lies in the character-
istic both countries share, the love of
liberty. Label meat products that
have been produced with hormones
or whitened, and let the consumer
decide. Quality and price overwhelm
protectionist barriers when allowed
to work.
How the U.S.-U.K. trade talks end
will be determined primarily by how
they begin. They should begin with a
bold proposal to accept the rule of
law as it exists in both nations and
eliminate all tariffs, quotas and set-
asides. At its root the argument to
limit the U.S.-U.K. trade agreement,
like all protectionist arguments, will
be an effort to seek protection from,
exercise control over and restrain
freedom. A true free-trade agreement
would be worthy of the highest val-
ues of the two greatest and freest na-
tions in history and serve as a tem-
plate for the trade agreements of the
future.
Mr. Gramm is a former chairman
of the Senate Banking Committee.
Mr. Toomey, a Republican, is a U.S.
senator from Pennsylvania. Mike So-
lon contributed to this article.
each with its own tempo and temper,
it’s been a story within a story nested
in another: a narrative of long-dis-
tance relationship between our lives
and livelihoods; a war tale of primi-
tive approaches versus a sophisti-
cated pathogen; a chase sequence in-
volving testing and treatments; a
comedy on conference calls and cloud
computing; a love-hate plot on the fu-
ture of oil-powered commuting; and
a tragedy on the loss of our confi-
dence and competence.
Separated, specialized approaches
to remake our health, economy and
civics will guarantee the next break-
down. Let’s engage engineers and
adapt industry practices for federally
organized logistics to pave the way
out of this pandemic. This is an es-
sential service.
Mr. Madhavan is a biomedical
systems engineer and author of “Ap-
plied Minds: How Engineers Think.”
d’oeuvres. Leaving 250 Jews with
plenty to drink but not a single mini
potato pancake with sour cream and
caviar is playing with fire.
We couldn’t return to our new
home after the wedding because it
was filled with my college room-
mates. In a driving rainstorm my
wife picked up the Sunday paper at
our regular newsstand before we
checked into a roadside motel. The
newsprint came off on her wedding
gown. Next month, unless she kills
me during quarantine, we’ll have
been married for 40 years.
When the Soviet refusenik Natan
Sharansky got married in a friend’s
apartment, he and his bride, Avital,
used a bedsheet for the wedding
canopy. He had been in jail the day
before their July 4 nuptials, and the
very next day she left for Israel,
where he expected to join her in a
few months. But it took Mr. Sharan-
sky 12 years, most of them in a Sibe-
rian gulag, to see his wife again.
The most famous wedding gone
wrong has to be biblical Jacob’s. He
worked seven years only to get the
wrong wife and then had to work
seven more for the right one. But in
one of the more romantic comments
of all time, it is said of Jacob that
the seven years working for Rachel
seemed like only a few days.
Decades from now I’m sure my
daughter and son-in-law will get a
kick out of telling their grandchil-
dren about their wedding, when, in
addition to the bride, everyone in at-
tendance wore veils—and only the
bride and groom held hands.
Mr. Weiss is a carpet salesman.
Wednesday, May 6, 2020 | A15
The FCC’s
Decision Puts
GPS at Risk
By Mark Esper
E
very day, tens of millions of
Americans rely on the Global
Positioning System. We use it
for location features in cellphones,
navigation for vehicles and aircraft,
and financial and commercial trans-
actions, including ATM withdraw-
als. And every day, the Defense De-
partment and our colleagues across
government use GPS to protect and
serve the public by coordinating
global trade, banking and transpor-
tation, as well as tracking terrorists
and other threats to U.S. national
security.
A recent decision by the Federal
Communications Commission, how-
ever, will degrade the effectiveness
and reliability of this critical tech-
nology. On April 20, the FCC an-
nounced its approval of Ligado Net-
works’ application to create a
cellular network by repurposing a
portion of radio spectrum adjacent
to that used by GPS. The power and
Its effect will be to
undermine U.S. national
security and disrupt
commerce and daily life.
.
proximity of Ligado’s ground emis-
sions on this spectrum will drown
ly
out GPS’s space-based signals. If
you’ve ever tried to talk to a friend
while standing next to the speakers
at a rock concert, you get the
point.
In announcing its recent deci-
sion, the FCC rehashed Ligado’s old
arguments, wrapped in new lan-
guage, to say that the company has
made changes and the FCC has set
conditions to ensure GPS won’t be
affected. Don’t be fooled. The sheer
number of cases of interference
combined with the difficulty of at-
tribution will make enforcement
nearly impossible, not to mention
expensive.
Independent testing and analy-
ses conducted by nine federal de-
partments and agencies show that
allowing Ligado’s proposed sys-
tem—including its proposed modi-
fications—to operate in close prox-
imity to the GPS spectrum would
cause harmful interference to mil-
lions of GPS receivers across the
U.S. The FCC’s decision will disrupt
the daily lives and commerce of
millions of Americans and inject
unacceptable risk into systems that
are critical for emergency response,
aviation and missile defense. Fur-
ther, it will stunt innovation in
GPS; people won’t use the system if
they can’t depend on it every-
where, all the time. For these and
many other reasons, 13 federal
agencies, along with leaders from a
range of industries, called on the
FCC to deny the Ligado request.
Ligado claims it is the solution
to America’s 5G woes, but its pro-
posed license modification isn’t re-
ally about 5G. There is no evidence
that the company has a technically
viable 5G solution. This is about
one company changing the rules to
maximize the value of its spectrum,
and the cost to Americans is too
great to justify.
The Defense Department recog-
nizes that 5G technology is vital to
maintaining America’s strategic and
economic advantage over its com-
petitors. We strongly support Presi-
dent Trump’s call for the U.S. pri-
vate sector to lead the way, and
we’re moving quickly to develop
opportunities to share midband
spectrum, a finite resource. As de-
mand outpaces supply, spectrum
sharing holds the key to U.S. domi-
nance in 5G. The Defense Depart-
ment will dedicate millions of dol-
lars to test 5G technologies at
military bases, while promoting col-
laboration among government agen-
cies, academia, and allied countries
to advance a 5G solution.
We need a comprehensive,
whole-of-nation approach to de-
velop technologies that affect so
many. Disregarding the concerns of
industry and government—objec-
tions grounded in hard data—the
FCC’s Ligado decision is a short-
sighted giveaway that will disrupt
our way of life and potentially cost
the American people billions of
dollars.
The first and most sacred re-
sponsibility of government is to
protect and defend its people. GPS
allows us to pinpoint 911 calls,
launch precision airstrikes, prepare
our forces for combat, and other-
wise act to safeguard health and
well-being. Interfering with the ac-
curacy and reliability of GPS risks
the safety of the American people
and undermines national and eco-
nomic security. America deserves a
better alternative.
Mr. Esper is U.S. secretary of
defense.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Wednesday, May 6, 2020 * **** THE WALL STREET JOURNAL.

WORLD NEWS
Pandemic Is Just Putin’s Latest Headache
Coronavirus spike, on structure and create millions kov, has said Mr. Putin is also
of jobs, but the Kremlin has ac- in regular contact with top of-
top of oil price drop, knowledged that falling budget ficials. Russians officials
threatens president’s revenue means it will need to weren’t immediately available
adjust its plans, jeopardizing for further comment on the
bid to cement power Mr. Putin’s economic legacy. challenges facing the country
A national referendum that and Mr. Putin’s standing.
BY ANN M. SIMMONS was scheduled for April and Some government critics say
supposed to endorse constitu- the assistance is too little and
MOSCOW—What was ex- tional changes allowing Mr. has been too slow in coming.
pected to be a banner year for Putin to prolong his stay in With outdoor protests
Russian President Vladimir power, has been postponed. banned because of the corona-
Putin is morphing into one of An extravagant May 9 parade, virus lockdown, dozens of on-

ALEXEI DRUZHININ/KREMLIN/ASSOCIATED PRESS

the toughest challenges to his marking the Soviet defeat of line protests, virtual rallies and
20-year reign. Nazi Germany during World petitions have mushroomed de-
The novel coronavirus pan- War II and offering a highly manding compensation for job
demic, plummeting oil prices prized photo op with foreign losses and greater financial aid.
and a decline of confidence in dignitaries, was canceled. As recently as mid-April, Mr.
Mr. Putin’s leadership are Some analysts agree the set- Putin told Russians the crisis
threatening to erode his efforts backs don’t risk capsizing Mr. was under control. But the
to project himself as the only Putin’s presidency, but they are country has since seen a spike
person who can unite Russia’s enough to test its capacity to in cases. With the lockdown
people and cement the nation’s withstand a powerful jolt. scheduled to run at least until
relevance on the world stage. “The challenge is huge,” said May 11, 20% of employees have
The prime minister Mr. Pu- Alina Polyakova, president and lost jobs or are on unpaid leave,
tin appointed this year to ac- CEO of the Center for European Russian President Vladimir Putin as recently as mid-April said the pandemic was under control. according to an April survey by
celerate a series of national in- Policy Analysis, a nonpartisan, Online Market Intelligence.
frastructure projects, Mikhail public-policy research institute ing refining industry employ But the public-health crisis months and offer small and Mr. Putin appears to be
Mishustin, tested positive for in Washington. “It is a one, an estimated one million peo- has compounded the pressure midsize businesses a six-month leaving some of the less-popu-
the virus and is hospitalized. two, three punch for Russia and ple, around 1.5% of the coun- on Russia’s leadership as it deferral of corporate tax. He lar decisions in managing the
Russians for years have of course the Kremlin is experi- try’s labor force. The ruble has tries to build popular support also proposed a six-month coronavirus crisis to regional
complained about decaying encing that in a profound way.” shed more than a fifth of its for constitutional changes to moratorium on filing bank- and local leaders.
roads and bridges. Soviet-era The fall in oil prices alone value against the dollar this ensure Mr. Putin remains in ruptcy claims against indebted “In the final count, every-
hospitals suffer from a short- would have been a significant year, making it one the world’s power, possibly until 2036. companies, while some families one, including Putin himself,
age of doctors, leading to long blow. Oil and gas is the cor- worst-performing currencies, Mr. Putin has been out in with babies or young children knows the president will be
waiting times, while many nerstone of Russia’s economy, while the International Mone- front instructing the govern- are eligible for an additional made personally responsible
schools are unsafe or poorly making up a third of the na- tary Fund forecasts Russia’s ment to introduce financial- short-term welfare allowance. for the outcome in the people’s
maintained. A $400 billion tional budget. The production gross domestic product to support measures for people Mr. Putin has appeared on mind,” said Dmitri Trenin, di-
spending plan was supposed to and transport of these energy contract 5.5% this year, the hard hit by the pandemic, ex- television nearly every day. rector of the Carnegie Moscow
overhaul the country’s infra- reserves and the accompany- steepest decline since 2009. tend welfare payments for six His spokesman, Dimitri Pes- Center think tank.

.
WORLD WATCH
Venezuela Holds Americans in Botched Coup
ly
BRAZIL
BOGOTÁ, Colombia—Sea-
sick and vomiting aboard fish-
ing boats packed with guns,
ammo and two-way radios, the
on President Accused of
Meddling Over Police
ragtag band of fighters—in- Brazilian President Jair Bol-
us ,

cluding two American veterans sonaro wanted control of the

l

of the Iraq war—made their police in Rio de Janeiro, where

e
al a

way from Colombia to the Ca- his sons are being investigated,
ribbean coast of Venezuela. and in March told his justice
minister, Sergio Moro, to permit
ci on

By John Otis, Kejal him that oversight, according to

Vyas and Jessica testimony made public Tuesday.
Donati “You have 27 police districts, I
just want one, Rio de Janeiro,”
Their plan, hatched by a for- the president allegedly told Mr.
er s

mer U.S. Green Beret, to arrest Moro in a WhatsApp message.

Venezuela’s authoritarian gov- Mr. Moro, who resigned April
m er

ernment and free political pris- 24 after accusing Mr. Bolsonaro

MIRAFLORES PRESIDENTIAL PALACE/EPA/SHUTTERSTOCK

oners, collapsed before they hit of interfering in police investiga-

shore. The two-boat invasion tions, on Saturday gave about
force, made up mostly of Vene- eight hours of testimony that in-
zuelan military defectors, ran cluded details of his relationship
m rp

into helicopter gunships, snip- with the president and the March
ers and even irate fishermen. WhatsApp missive. Mr. Moro de-
The government said it has clined to comment further.
captured 13 “terrorists” and Mr. Bolsonaro denied med-
killed an additional eight. dling in police investigations. “I
co Fo

“They were playing Rambo,” didn’t interfere in anything,” he

crowed President Nicolás Ma- told reporters Tuesday.
duro during a TV address as Mr. Bolsonaro on Monday ap-
he held up the passports of the pointed a new federal police chief,
two detained Americans. On Rolando Alexandre de Souza. He
Twitter, the botched raid was President Nicolás Maduro displayed seized armament and passports in Caracas on Monday, after a botched bid to unseat the government. replaced an ally of Mr. Moro who
quickly dubbed “The Bay of was advancing investigations in
Kids,” a modern-day version of connection to the attempt. serted that Venezuelan sol- said that hours before they dado Cabello, a powerful re- Rio, where Mr. Bolsonaro’s three
the failed 1961 Bay of Pigs “The USA is not going to diers summarily executed were captured, the two Ameri- gime figure, named Mr. Gou- sons, all of whom are public offi-
landing in Cuba. solve this problem. They are not some of the prisoners. cans had uploaded to their so- dreau during a March 28 TV cials, are under investigation.
On Tuesday, questions were going to invade. It’s not their Among the 13 captured were cial-media accounts a photo of appearance. He showed a pic- —Luciana Magalhaes
swirling around the true na- job,” Mr. Goudreau said in the two Americans, Luke Alexander themselves sitting in one of ture of the private security
ture of the amphibious landing online TV interview, kneeling in Denman, 34 years old, and the boats used in the landings. contractor on his smartphone, GERMANY
n-

as soldiers mopped up what an undisclosed location that ap- Airan Berry, 42. Sgt. Berry Asked about her son’s ill- and claimed he was plotting
was left of the tiny invading peared to be a patch of jungle. served as a Special Forces engi- fated mission in a brief tele- against the government. ECB Faces Pressure
force that, according to Presi- “But you have Venezuelans who neer from 1996 to 2013 and had phone interview, Mr. Denman’s Mr. Maduro said the attack Over Bond Purchases
dent Trump, had received no want to fight and are fighting.” been deployed three times to mother, Kay Denman, said she had been planned for March 10
no

U.S. support. Calls to Silvercorp USA’s of-
Speaking to a Spanish-lan- fice went to voice mail.
guage online TV outlet in Mi- Venezuelan Information
ami over the weekend, Jordan Minister Jorge Rodriguez said
Goudreau, a former Special the first boat left Colombia on
Forces soldier who runs a pri- May 1 for a coastal town near
vate-security company called Venezuela’s capital. A second
Silvercorp USA in Melbourne, boat followed but changed
Fla., claimed responsibility for course after eight members of
the raid, which he said in- the first group were killed in a
volved about 60 men. 45-minute shootout, Mr. Rodri-
He said the attackers aimed guez said. Its occupants tried
to strike at the heart of the fleeing to the nearby Dutch is-
Maduro regime. He also land of Bonaire but ended up
claimed the backing of opposi- dropping off men in different
tion leader Juan Guaidó, who locations along the Venezuelan
has been recognized by the coast, where they were being
U.S. as Venezuela’s legitimate rounded up, Mr. Rodríguez said.
leader. Mr. Guaidó denied any Government opponents as-
Iraq. Mr. Denman served as an
Army communications sergeant
for five years through 2011, in-
cluding a tour in Iraq, before
joining the reserves until 2014,
according to the U.S. Army.
The State Department de-
clined to say whether it had
been in contact with Messrs.
Denman and Berry to provide
consular support.
State TV broadcast images
of the two handcuffed and hag-
gard-looking Americans lying
face down with other prisoners
near a beach in Aragua state,
just west of Caracas. Mocking
their indifference to opera-
tional security, Mr. Maduro
had no more information than
presented by the media.
The raiding party, which Mr.
Goudreau said had been train-
ing in desert-like, remote La
Guajira department on the Co-
lombian side of the border for
the past year, appeared to have
been infiltrated by the Venezu-
elan government, said Rocio
San Miguel, director of Citizen
Control, a nonprofit that tracks
Venezuela’s armed forces.
Venezuela’s military works
closely with Cuban counterin-
telligence teams, who have
helped to uncover coup plot-
ters within the armed forces
in recent years. Indeed, Dios-
but was delayed because of Germany’s highest court con-
the coronavirus pandemic. ditionally approved a giant bond-
In a communiqué on Tues- buying program launched five
day, Mr. Guaidó, the opposi- years ago by the European Cen-
tion leader, said: “Nicolás Ma- tral Bank, but demanded more
duro, you are responsible. The information about its economic
regime knew about that opera- justification, in a move that
tion, you infiltrated it and could set limits on the ECB’s
waited to massacre them.” firepower and invite fresh law-
The U.S. government, which suits in Germany.
has issued crippling economic The judgment, which was
sanctions against Venezuela tougher than many analysts had
and has indicted Mr. Maduro expected, comes at a delicate
for drug trafficking, has long time for the ECB. The bank re-
encouraged Venezuelan mili- cently launched a new €750 bil-
tary officers to rise up against lion ($817 billion) bond-buying
the leftist leader. However, program aimed at containing the
U.S. officials denied any in- economic fallout from the coro-
volvement in the raid. navirus pandemic, and ECB offi-
cials have been considering
whether to scale it up further.

Saudi Arabia’s Stimulus Is Squeezing Prince’s Lofty Plans
Saudi Arabia is taking un- 23 countries to cut output.
precedented measures to cush- But the move so far is failing
ion the blow of rock-bottom to boost prices. State-owned oil
oil prices and the new corona- firm Saudi Aramco has further
slashed production, and dozens
By Rory Jones in Dubai of oil-laden supertankers float
and Donna Abdulaziz idly at sea. Smaller oil revenues
in Jeddah, Saudi Arabia mean the world’s top oil ex-
porter will have to draw down
virus pandemic, as the monar- $32 billion from foreign re-
chy seeks to extricate the serves this year and borrow bil-
kingdom from its worst finan- lions more from debt markets.
cial predicament in decades. Businesses that had posi-
Oil prices have crashed since tioned themselves for a new
early March in part because Saudi Arabia under Prince Mo-
Crown Prince Mohammed bin hammed’s social and economic
Salman launched an oil-price overhauls—coffee shops, gyms,
war with Russia, just as the cinemas and travel agencies—
coronavirus locked down the are scrambling for government
Saudi economy and sapped lifelines to stay afloat. The crisis
global demand for crude. also is forcing spending cuts on
Prince Mohammed, the king- the prince’s transformation of
dom’s day-to-day ruler, later the economy away from oil.
walked back the confrontation, “The kingdom has not faced
agreeing April 12 to a deal with such a crisis—neither health-
wise nor financially—for de-
cades,” Finance Minister Mo-
hammed al-Jadaan told
government-owned broad-
caster Al Arabiya on Saturday.
“As long as we do not touch
basic necessities of the people,
all options are open.”
Moody’s Investors Service on
Friday downgraded its assess-
ment of Saudi Arabia’s credit
rating to negative, citing the se-
vere shock to global oil demand
and the pandemic. The kingdom
requires oil prices of $76 a bar-
rel to balance its budget this
year, according to the Interna-
tional Monetary Fund. Brent
crude, the global benchmark,
rose 14% to a three-week high of
$30.97 a barrel Tuesday.
To cushion the economic
blow, Saudi Arabia has launched
unprecedented domestic stimu-
lus. It is helping support wages
of furloughed workers in private
industry and continuing to pay
public-sector salaries. Busi-
nesses have been told to post-
pone sales, excise and income
taxes. The central bank has of-
fered liquidity to banks so they
can restructure debts and offer
deferrals on loan repayments.
Saudi Arabia’s stimulus
might mean its economy suffers
less than other nations. The IMF
forecasts the country’s gross
domestic product will fall 2.3%
this year, compared with 5.9%
for the U.S. and 3% world-wide.
Yet, the kingdom’s budget
deficit is expected to balloon
to nearly 13% of output, and
the government has agreed to
raise a self-imposed debt-to-
GDP ceiling to 50% from 30%.
Saudi Arabia’s reserves
dropped by a record $24 bil-
lion in March to $479 billion.
Analysts said the decision
could put a ceiling on the ECB’s
bond purchases. Lawyers said it
So far there has been little raised thorny questions about the
popular reaction to the eco- legal foundations of the ECB, and
nomic setbacks. But the risks whether national courts have the
of a blowback for the Saudi power to overturn the decisions
monarchy are rising. The gov- of the European Union’s top court.
ernment’s worsening financial —Tom Fairless
position could mean it is
forced to cut public-sector SYRIA
wages. That would threaten
the longstanding social pact in Israeli Strikes Kill 14
Saudi Arabia: The ruling Al Fighters, Group Says
Saud family for decades redis-
tributed oil wealth, via subsi- Israeli airstrikes in eastern
dies and easy government Syria killed 14 Iranian and Iraqi
jobs, in return for a pliant pop- fighters and wounded others,
ulation and absolute power. some seriously, an opposition war
“There is a reckoning,” said monitoring group said Tuesday.
Karen Young, a resident The Britain-based Syrian Ob-
scholar focusing on the Middle servatory for Human Rights said
East at the American Enter- the late Monday strikes in east-
prise Institute, a Washington ern Deir el-Zour province tar-
think tank. “The future looks geted positions of Iranian and
different. Average incomes will Iran-backed fighters. There was
be lower. Young people will not no comment from Israel.
live the way their parents did.” —Associated Press
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
BUSINESS & FINANCE
© 2020 Dow Jones & Company. All Rights Reserved.
S&P 2868.44 À 0.90%
Virus Hurts Profit at Big Insurers
AIG faces rise in
business-interruption
claims, Prudential hit
by market turbulence
BY LESLIE SCISM
Three of the nation’s big-
gest insurers posted first-quar-
ter earnings, revealing wide-
ranging effects of Covid-19.
The insurance companies—
AIG, Prudential and Allstate—
reported a mixed bag of re-
sults that included a surge in
business-interruption claims,
poorer investment results and
LUFTHANSA/REUTERS
A Lufthansa jet is modified to carry cargo instead of passengers. Even with such adaptations, airfreight capacity was down 44% in March on passenger planes world-wide.
With Fewer Flights, Air Cargo Costs Soar
The thousands of flight can-
cellations that have brought
global passenger travel to a
near-standstill are making it
tougher and more expensive to
send fresh food, mail and mer-
chandise around the world.
By Mike Cherney
in Sydney and Lucy
Craymer in Hong Kong
Before the coronavirus pan-
demic, more than half of all air
cargo traveled on passenger
flights, according to data from
the International Air Transport
Association. Fliers essentially
subsidized the cost of many air
shipments, and carriers de-
voted roughly a third of their
cargo space to letters, packages
and commercial goods, accord-
ing to industry newsletter Air-
craft Commerce.
Now, with fewer passenger
planes in the air, airfreight
costs have risen sharply, tri-
pling in some cases, forcing
businesses and individuals to
choose between getting items
to their destination quickly and
getting them there at a price
they are willing to pay.
American Airlines Group
Inc., United Airlines Holdings
Inc. and Qantas Airways Ltd.
INSIDE
ENERGY
Occidental seeks
ways to lessen
roughly $40 billion
debt load. B2
TECHNOLOGY: JUUL MOVES HEADQUARTERS TO WASHINGTON, D.C. B4
S&P FIN g 0.07% S&P IT À 1.42%
an auto-policy windfall.
The insurers’ first-quarter
earnings include fallout from
only the opening weeks of the
world-wide spread of the coro-
navirus, and all cautioned that
the second quarter would be
more revealing of the impact.
Global carrier American In-
ternational Group Inc. posted
a 91% decline in its widely
watched “adjusted pretax in-
come” to $172 million from
$1.85 billion a year earlier.
The company’s earnings were
hurt by lower investment in-
come, weather-related catas-
trophe costs and a boost to re-
serves of $272 million pretax
er s
m er
m rp
co Fo
Costs of airfreight have risen this year while total air-cargo capacity and available freight capacity
on passenger planes are down in March from a year earlier.
Costs of airfreight from China
to the U.S.
$10 per kilogram
8 BY HEATHER HADDON
n-
6 menu items, including its sig-
4
no
2
0
Jan. Feb. March
*Measured in metric ton-kilometers †Boeing 747-400
Sources: TAC Index (costs); International Air Transport Association (capacity); Aircraft Commerce (carrying capacity)
are among commercial carriers
using empty passenger planes
to move cargo internationally.
Deutsche Lufthansa AG is
stripping out passenger seats on
some of its planes to increase
cargo capacity. Airbus SE is de-
veloping a modification for its
A330 and A350 planes that
would allow airlines to install
freight pallets directly onto seat
MEDIA
NBCUniversal to cut
senior management’s
pay by 20% and roll
back some raises. B4
* * * **
DJ TRANS À 0.83%
THE WALL STREET JOURNAL.
WSJ $ IDX À 0.16%
related to Covid-19 costs.
The Covid-19 reserve in-
crease includes already re-
ceived and anticipated claims
from policyholders under poli-
cies covering travel cancella-
tions and business interrup-
tions, among other things.
Business-income claims have
surged at many insurers, stem-
ming from shelter-at-home and
lockdown directives that shut
down or limited the operations
of restaurants, retailers and
many other private-sector op-
erations across the U.S.
Operating income at Pru-
dential, with a $1.3 trillion as-
set-management unit in addi-
on
us ,
l
e
al a
ci on
Total airfreight capacity in March, change from a year earlier*
0
Latin
America
Asia
Pacific
Europe
–0%
–0
–30
–0
April
tracks in passenger cabins.
Available freight capacity on
passenger planes in March was
still down around 44% from a
year ago, according to the air
transport association. While
dedicated air freighters added
more flights, total air-cargo ca-
pacity was down 25% versus
the prior year in March, the
most recent data available.
Fixes Sparked by ‘Flash Crash’
Served Well in Recent Turmoil
BY ALEXANDER OSIPOVICH
A decade ago, the flash crash
of May 6, 2010, rocked markets.
What followed was a broad ef-
fort by regulators and Wall
Street to fix the complex elec-
tronic systems that underpin
the U.S. stock market—moves
that appear to have paid off in
the recent coronavirus-induced
nosedive.
The March turmoil caused
the S&P 500 to suffer its swift-
est-ever decline from a record
into a bear market. Despite the
meltdown and extreme volatil-
LIBOR 3M 0.474
tion to its life-insurance
businesses, declined 25% to
$939 million. Prudential said
“market turbulence related to
the pandemic adversely im-
pacted” the results. Ultralow
interest rates, part of the fall-
out from Covid-19, pressured
profit on some insurance prod-
ucts, the insurer said. Earn-
ings in Prudential’s group-in-
surance unit sank with lower
variable investment income.
Allstate Corp.’s adjusted net
income rose 47% to $1.14 bil-
lion. The insurer benefited
from sharply lower catastrophe
costs from a year earlier. All-
state said underwriting profit
Middle North
East America
Africa
GLOBAL AVERAGE: –25%
Some companies have lost
orders due to higher shipping
costs; some are relying more on
sea freight, which takes much
longer and increases the risk
that perishable products will
expire before reaching store
shelves. Toy maker Hasbro Inc.
recently said it incurred higher
airfreight costs in moving
products out of China, where
ity, the market’s plumbing held
up, a largely unsung success
that drew little notice among
Americans focused on the pan-
demic.
No stock exchange suffered
an outage in March, despite re-
cord trading volume of nearly
16 billion shares a day that
month. Rarely used circuit
breakers halted the entire stock
market four times—pauses
some investors criticized as un-
necessary—but trading re-
sumed smoothly afterward.
And a key data feed run by the
New York Stock Exchange, criti-
NIKKEI Closed (19619.35)
Wednesday, May 6, 2020 | B1
from its car and home policies
jumped 92% to $1.34 billion.
Results also included some
of the impact of reduced driv-
ing from people hunkered
down in their homes under the
stay-at-home directives, but
more of that is expected to be
reflected in the second-quarter
results. Those big drops in
mileage led Allstate, and many
other big insurers, to announce
plans in April for premium re-
funds to policyholders, either
to be dispatched immediately
or as credits on their April and
May bills.
“Miles driven has started to
Please turn to page B10
ly
How much cargo an airplane
can carry†
Other cargo Passengers
and baggage
31.8% 68.2%
Total
carrying capacity
142,652 pounds
they were manufactured.
“The cost of moving that
cargo is almost going up day by
day,” said Paul Golland, owner
of PG Logistics, a freight-for-
warding business in Australia.
“You used to get a quote valid
for 30 days. Now you’re getting
it valid for 24 hours, because
tomorrow the situation may
Please turn to page B5
cized in 2010 for being slow to
broadcast stock prices during
the flash crash, didn’t experi-
ence delays during the selloff,
its performance metrics show.
The main technical glitches
during the market rout in-
volved outages at retail broker-
ages such as Robinhood Finan-
cial, which angered their
customers but didn’t roil the
broader market.
“Amidst high volumes and
volatility, the post-flash crash
upgrades to the trading infra-
structure seem to have
Please turn to page B11
See more at WSJ.com/Markets
Airbnb
To Lay Off
Quarter of
Workforce
BY ROLFE WINKLER
Airbnb Inc. said it is slash-
ing 1,900 jobs, a quarter of its
workforce, and cutting invest-
ments in noncore operations as
the home-sharing giant pre-
dicted the coronavirus pan-
demic would change its busi-
ness even after more people
start traveling again.
Co-founder and Chief Execu-
tive Brian Chesky told employ-
ees about the cuts in a memo
Tuesday, adding that the com-
pany’s revenue forecast for this
year is less than half of last
year’s level.
“We are collectively living
through the most harrowing
crisis of our lifetime, and as it
began to unfold, global travel
.
came to a standstill,” Mr.
Chesky said in the memo.
“Airbnb’s business has been hit
hard.”
This was the year Airbnb,
one of the most successful pri-
vate tech companies of the past
decade, planned to go public,
minting billions for Mr. Chesky
and the company’s early back-
ers. Instead, the pandemic has
ground global travel to a halt
and kept would-be lodgers at
home, forcing Airbnb to re-
trench.
Amid expectations that it
would lose $1 billion through
the first half of the year and its
valuation would crater, it has
raised rescue capital to back-
stop its balance sheet as it con-
tinues to hope that the sector
will recover later this year.
Mr. Chesky also said the
company is reducing invest-
ment in newer areas, pausing
its Transportation and Airbnb
Please turn to page B4
Wendy’s
Cuts Back
Beef Items
On Menu
Wendy’s Co. is limiting
nature fresh-beef hamburgers,
at some locations as closures
of coronavirus-hit meat plants
start to squeeze restaurant
supplies.
A spokeswoman for the
Dublin, Ohio, chain said the
company is continuing to reg-
ularly supply its restaurants
with hamburgers, but that
some menu items may be lim-
ited on a temporary basis
given the meat-supply crunch.
“We’re working diligently
to minimize the impact to our
customers and restaurants,”
she said.
Wendy’s, known for its
“Where’s the Beef?” television
commercials beginning in the
1980s, serves only fresh beef
at its 5,850 U.S. locations,
making it more vulnerable to
supply disruptions because it
can’t rely on frozen stocks
that rivals such as Burger King
and McDonald’s Corp. tap.
An analysis of 185 Wendy’s
restaurants nationwide found
that up to 10% of them had
taken beef off their menus and
only were serving chicken, ac-
cording to Wall Street re-
search firm Stifel.
The beef shortages come as
Covid-19 outbreaks have tem-
porarily closed around 20
meatpacking plants, from
Pennsylvania to Washington
state, reducing the country’s
overall beef production last
week by 35% compared with
last year’s level, according to
U.S. Department of Agriculture
data.
President Trump last week
issued an executive order al-
lowing meat plants to con-
tinue operating at the discre-
tion of the U.S. Department of
Please turn to page B2
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Wednesday, May 6, 2020 * ***** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A Digital Colony Prudential Financial....B1

AbbVie.........................B5
Accenture..................B11
Airbnb .................... B1,B4
Airbus..........................B1
Allergan.......................B5
Allstate ....................... B1
Alphabet......................B6
Altria Group................B4
Amazon.com...............A6
American Airlines.......B1
American International
Group.........................B1
Anchorage Capital Group
.....................................B2
Apollo Global
Management.............B6
E Q
Eaton Vance
Management.............B2
Enterprise Holdings ... A2
EQT..............................B6
Exceed Investments.B10
F-G
Fiat Chrysler...............B3
FTI Consulting.............B3
Global Brands Group .. B5
Gold's Gym..................B6
Gordon Food Service .. B2
H
Pyramid Management B6
Qantas Airways..........B1
R
Restaurant Brands
International.............B2
Robinhood Financial ... B1
Ross Stores.................B6
S
Saudi Aramco ........... A16
Shake Shack................B2
Societe Generale.......B10
Starbucks..................B11

JUSTIN CLEMONS FOR THE WALL STREET JOURNAL

Management...........B12
Apple.........................B11
Avis Budget Group.....B3
B Innovator Capital
Bayerische Motoren
Werke........................B3
BioNTech ............... A4,A6
Blackstone Group B2,B12
BNP Paribas..............B10
Borderfree...................B5
C JPMorgan Chase.......B11
Carlyle Group............B12
Carnival ..................... B11
Chegg.........................B11
Colony Capital.............B6
Comcast.......................B4
Crown Castle
International.............B6
D
Daimler........................B3
Davidson Kempner
Hasbro.........................B1
Hertz Global................B3
I 3M...............................A6
Management...........B10
Innovator's S&P 500
Buffer......................B10
J
JBS USA......................B2
J.Crew Group...............B2
Juul Labs.....................B4
K-L
Knotel..........................A8
Lear..............................B5
Lennox International..B5
Lyft..............................A3
M-O
McDonald's..................B1
Moelis..........................B2
State Street..............B10
Sysco.........................B12
T-U
21st Century Fox........A1
Tyson Foods................B2
Uber Technologies......A3
United Airlines............B1
V
Vanguard Real Estate B6
Volkswagen.................B3
W
Waddell & Reed
Financial..................B11
Walt Disney..............B12 The company has been hobbled by a sharp fall in oil prices, not long after its $38 billion purchase of Anadarko. One of its facilities in New Mexico.
Waukesha Metal
Products....................B5
Wayfair................B5,B11
Wendy's ...................... B1
WeWork ...................... B6
Whirlpool.....................B5
Occidental Seeks Ways to Reduce
Y-Z

Roughly $40 Billion Debt Load

Occidental Petroleum.B2
Capital ManagementB2
Delta Air Lines ......... B11 P Yum! Brands ............... B2
Deutsche Lufthansa...B1 Pfizer.....................A4,A6 Zayo Group..................B6

INDEX TO PEOPLE BY CARA LOMBARDO likely to be on the menu until

B Evans, Warren ............ B5
Bain, Caroline............B11
Barry, Jay..................B11
Bitzer, Marc ................ B5
Bond, Bruce...............B10
Buffett, Warren..........B2
G Lack, Andy...................B4
Garutti, Randy............B2
Gaud, David...............B11
Goldberg, Gennadiy .. B11
Occidental Petroleum Corp.
L is examining ways to lessen its
roughly $40 billion debt load
Lazarus, Mark.............B4 following a historic plunge in
N-R oil prices and an ill-timed ac-
quisition, which have put the
Nathanson, Michael..B12
oil prices recover, some of the
billion of that and the bulk were
recently trading at between 60
people said. cents and 80 cents on the dol-
There is no guarantee the lar, according to MarketAxess,
company will ultimately go for- while those maturing in the
ward with a balance-sheet re- next few years were trading at
vamp. While hiring restructuring an average of roughly 90 cents.
advisers can be a precursor to Occidental’s market value,
the value of its oil and gas as-
sets by about $580 million and
took $1.4 billion in charges tied
to its investment in pipeline
company Western Midstream
Partners LP, acquired as part of
the Anadarko deal.
Moelis is expected to work

.
Golland, Paul...............B1 Roberts, Brian.............B4 Texas energy producer on exploring bankruptcy, that is not meanwhile, has dropped to less hand-in-hand with a newly
C H S shaky footing. the case with Occidental, which than $15 billion from roughly formed advisory committee on

Casper, Nathan...........B2
Cavanagh, Mike .......... B4
Chazen, Stephen.........B2
Chesky, Brian..............B4
Cil, Jose.......................B2
Crosthwaite, K.C.........B4
D-E
Darling, Rick................B5
Halpern, Joseph........B10
Hardman, Lee............B11
Hofer, Stefan............B11
Hollub, Vicki................B2
I
Icahn, Carl...................B2
Iger, Robert...............B12
J-K
Saunders, Brent..........B5
Shell, Jeff....................B4
Sood, Karan...............B10
W-Z
U
Uddin, Mostafiz..........B5
on
Wilson, Tom..............B10
Withrow, Bruce...........B2
us ,
Occidental recently tapped
boutique investment bank Moe-
lis & Co. for advice on how to
ease the burden of its liabilities
when its revenue is under se-
vere pressure, according to peo-
ple familiar with the matter.
Actions under consideration
ly
is seeking Moelis’s help with so- three times that a year ago. Occidental’s recently overhauled
called liabilities management. To finance the Anadarko
board, which is led by Chairman
Occidental has been hobbled deal, Occidental sold $10 billion Stephen Chazen and includes
by the sharp decline in oil
prices, coming just months af-
ter the company completed its
$38 billion purchase of Ana-
of preferred shares to Warren
Buffett that carry annual divi-
dend payments of $800 million.
The company in April opted to
lieutenants of activist investor
Carl Icahn, who owns roughly
10% of the company’s shares.
Companies—particularly in
darko Petroleum Corp. in Au- pay its quarterly obligation of the retail and energy sectors—

Darroch, Jeremy..........B4
Dekate, Chirag ............ B4 Jakob, Olivier............B11 Zaffino, Peter ........... B10 include buying back some of gust. Chief Executive Vicki Hol- $200 million in shares. have in recent weeks been rac-
l

Duperreault, Brian....B10 Jones, Ted...................B2 Zeitsiff, Adam.............B6 the company’s roughly $35 bil- lub had pledged to sell $15 Occidental has taken other ing to hire advisers to help them
e
al a

lion in bonds at a discount, a billion in assets to lighten the measures to conserve cash, manage their debt piles as the
move that could lower its debt company’s debt load, but those slashing capital spending by pandemic crimps business and,

Wendy’s ground beef and premium cuts load, and launching an ex- plans have been stymied by a more than half, trimming in some cases, to prepare for
ci on

like prime beef, meat suppliers change offer that could push drop-off in mergers-and-acqui- salaries and cutting the divi- possible bankruptcy.
are producing fewer items of maturities back, some of the sitions activity due to the coro- dend it pays common share- Moelis has lately been one of

Cuts Back boneless pork and poultry cuts

because they require workers
to process them more by hand,
people said.
Significant asset sales that
have been considered, such as
navirus pandemic.
Occidental had about $39 bil-
lion of debt at year-end, much
holders by 86%.
The company reported a
first-quarter loss of $2.2 billion
the most active of the so-called
boutique banks that specialize
in doling out advice rather than
er s

On Beef said Bruce Withrow, a director

of meat protein in North Amer-
unloading a chemicals business
that accounts for roughly 20%
of it assumed in the Anadarko
deal. Bonds maturing after
Tuesday as it contended with a
decline in oil prices and de-
capital.
—Rebecca Elliott
m er

ica at Gordon Food Service of Occidental’s sales, are un- 2023 make up more than $20 mand. Occidental wrote down contributed to this article.
Inc., one of the biggest food-
Continued from page B1 service distributors in the U.S.
Agriculture, insulating meat- “We’re hoping it’s a six-to-
packers from state and local of- eight-week issue,” Mr. Withrow
m rp

ficials’ calls to close coronavi- said.

rus-hit plants. Wood Fruitticher Foodser-
Meat production remains vice, a distributor for indepen-
below normal levels, however, dent restaurants across the
with many plants still closed southeast, said it was told by its
co Fo

and others forced to slow oper- local Tyson Foods Inc. supplier
ations due to nervous workers last week that ground beef or-
staying home. ders were canceled and custom-
The supply problem is add- ers should expect shortages.
ing to the financial woes of res- Tyson couldn’t accept new
taurants grappling with big orders in its system as it tried
sales losses since the coronavi- to catch up, the representative IBKR
BRYAN THOMAS/GETTY IMAGES

rus forced dine-in closures wrote to Fruitticher. Tyson

across the country. The sales didn’t immediately respond to 1
declines have kept restaurants
more insulated from the short-
a request for comment.
Ted Jones, a meat purchaser MARGIN LOAN
ages that have plagued grocery for Fruitticher, contacted a lo-
stores for weeks. cal supplier and is having them

0.75%
n-

But restaurant sales are be- process whatever beef they can
ginning to improve as some get their hands on. Prices for
states start to reopen busi- ground beef have nearly dou- The retailer struggled through six consecutive years of losses
nesses and some consumers bled from wholesale costs at before the coronavirus pandemic prompted it to close stores.
no

seek meals outside the home. the end of March, he said. “It’s
Restaurants are now ordering
more again, food distributors
say, and some chains are hav-
wild,” Mr. Jones said.
A representative of meat
processing company JBS USA
An analysis found
Holdings Inc. informed food-
service distributor customers
last week that frozen stocks of
hogs had become depleted and
10% of locations had shortages will likely continue
amid disruptions to workers’
no burgers on their availability. JBS didn’t respond
menu, just chicken. to a request for comment.
Nathan Casper, who runs
Araujo’s Mexican Grill in San
Jose, Calif., said his restaurants
ing to shore up their supply go through 3,000 pounds of
chains for meat at the same chuck roll a week. Last week, he
time. called his suppliers and couldn’t
McDonald’s, which started find anyone selling. “How do
putting fresh beef on its menu you run a taqueria without
in 2018 to supplement its fro- carne asada?” Mr. Casper said.
zen patties, said it is monitor- “It’s 65-70% of what I sell.”
ing the situation. A McDonald’s After calling more than 30
spokesman said Tuesday that meat providers, he paid $5.50
fresh beef remains on its U.S. per pound compared with the
menus. price of $2.80 per pound in
Jose Cil, chief executive of
Burger King parent company
February. People had cows, but
nowhere to process them. They
Restaurant Brands Interna- suggested he take the whole
tional Inc., said Friday that the cow and try to sell the bits he
company is working with its couldn’t use himself.
suppliers to devise contingency Wendy’s customers have no-
plans if a disruption occurs. ticed the disruptions.
David Gibbs, chief executive of Lisa Nichols said she and a
Yum Brands Inc., whose friend recently tried to order
brands include KFC and Taco large hamburgers from a loca-
Bell, said last week: “We are tion in Jackson, Miss., for de-
talking about it daily.” livery, but they were out. They
Many other restaurants and switched to smaller patties, but
their distributors are seeing Ms. Nichols said she’s since
shortages and higher prices for found those to be unavailable
a range of meat products. as well.
“Costs have really jumped “We thought it was pretty
over the last few weeks,” funny and made the obvious
Shake Shack Inc. Chief Randy ‘Where’s the beef?’ jokes to
Garutti said of beef prices each other,” Ms. Nichols said.
Monday. “It’s something we are —Julie Wernau
watching literally every hour.” and Jaewon Kang
In addition to fast-selling contributed to this article.
J.Crew Cleared to Tap
Its Bankruptcy Loans
BY SOMA BISWAS
A bankruptcy judge gave
J.Crew Group Inc. permission
to borrow more than $100 mil-
lion under a chapter 11 loan
provided by a group of credi-
tors led by hedge fund Anchor-
age Capital Group LLC.
Judge Keith Phillips of the
U.S. Bankruptcy Court in Rich-
mond, Va., overruled objections
from a rival J.Crew lender to
fees the Anchorage-led group
is charging for providing a loan
of up to $400 million to carry
the clothing retailer through
its planned restructuring.
J.Crew plans to draw on an-
other $145 million of the bank-
ruptcy loan in July and will
have access to a further $110
million after July if lenders
agree, according to its court
filings. It filed for chapter 11
protection Monday with a pro-
posed deal in hand with the
Anchorage-led group to swap
more than $1.6 billion in debt
for all of the reorganized com-
pany’s equity.
Lenders and bondholders
led by Anchorage also agreed
to fund the company’s opera-
tions while under chapter 11
protection and to convert the
bankruptcy financing to an exit
loan when it emerges from
bankruptcy.
J.Crew had struggled for
years with slumping sales and
Amount > $1 million
and not much higher for smaller amounts
a hefty debt load from a lever-
aged buyout by private-equity
firms. It had six consecutive
years of losses before the coro-
navirus pandemic prompted it
to close stores and scrap plans
to raise cash by spinning off its
Madewell chain.
Under J.Crew’s proposed re-
structuring plan, Anchorage,
Blackstone Group Inc.’s GSO
Capital Partners LP and David-
son Kempner Capital Manage-
ment LP will appoint six out of
seven board members. Start Investing Today!
Trade creditors, particularly
suppliers, may not fare as well.
The company is proposing that
its vendors share in $50 mil-
lion in cash, an amount that
ibkr.com/margin
would cover their unpaid bills
at 50 cents on the dollar,
J.Crew lawyer Ray Schrock said
at Tuesday’s hearing.
Mike Fletcher, a lawyer who Interactive Brokers Rated #1
represents J.Crew suppliers Best Online Broker 2020 by Barron’s*
owed $10 million, said he
wasn’t satisfied with the com-
pany’s proposal, which he de-
scribed as an “opening offer.” Trading on margin is only for sophisticated
J.Crew’s proposed restruc- investors with high risk tolerance. You may lose
turing has garnered the sup-
port of 70% of its lenders and more than your initial investment.
holders of 78% of its notes. Member - NYSE, FINRA, SIPC – *Interactive Brokers rated #1, Best Online
Robert Stark, a lawyer rep- Broker according to Barron’s Best Online Brokers Survey of 2020: February
resenting lender Eaton Vance 21, 2020. For more information see, ibkr.com/info - Barron’s is a registered
trademark of Dow Jones & Co. Inc. [1] Margin Loan rate as of 03/18/20. IB
Management, raised concerns calculates the interest charged on margin loans using the applicable rates
about fees that Anchorage and for each interest rate tier listed on its website. Rates shown apply to IBKR Pro
other lenders are charging and clients only. Rates subject to change. For additional information on margin
urged a delay in approving loan rates, see ibkr.com/interest
04-IB20-1329CH1316
those charges.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Fiat Posts Loss, Sets U.S. Reopen Date
Company withdraws
guidance as pandemic
blurs outlook but says
PSA merger proceeds
BY NORA NAUGHTON
Fiat Chrysler Automobiles
NV on Tuesday reported a net
loss of €1.7 billion ($1.86 bil-
lion) for the first quarter, as
lockdowns related to the coro-
navirus pandemic took a toll
on car sales and factory out-
put globally.
Revenue fell nearly 16% to
€20.5 billion compared with
the first quarter of 2019. The
auto maker lost money in
nearly every business unit
with the exception of North
America, where continued
strength in pickup-truck sales
led to an adjusted operating
profit of €548 million for the
January-March period.
Like other car companies,
Fiat Chrysler has withdrawn
its full-year guidance, saying it
is unable to provide more di-
rection given the uncertainties
surrounding the coronavirus
pandemic.
“We recognize the pandemic
and its impacts are here for
the foreseeable future,” said
Chief Executive Mike Manley
on a conference call Tuesday.
Downhill Drive
European car sales fall In pandemic.
Volkswagen
PSA Group
Renault
Hyundai
BMW
Toyota
Daimler
FCA Group
Ford
0 250,000
Note: New registrations in EU, U.K., European Free Trade Association
Source: European Automobile Manufacturers' Association
Germany Opens Talks
On Car-Maker Bailout
BY WILLIAM BOSTON
BERLIN—Talks between Ger-
many’s flagship car companies
and the country’s government
kicked off on Tuesday to dis-
cuss potential state aid for an
industry that was already
struggling when the coronavi-
rus pandemic hit and is now
facing an existential threat.
Hardly any new cars were
sold in Europe last month as
government-ordered lockdowns
shut dealerships around the re-
gion. In the U.K., sales fell 97%
to 4,321 vehicles, the lowest
level since 1946, the Society of
Motor Manufacturers and Trad-
no
ers, an industry lobby group,
said Tuesday. France and Spain,
two of the top five European
car markets, reported drops of
90% and 97%, respectively.
The auto industry is a huge
part of the European economy.
It employs some 14 million peo-
ple in the European Union, ac-
counting for 6% of jobs, accord-
ing to the European Automobile
Manufacturers’ Association. In
the past, European car makers
have produced about 19 million
vehicles a year, around a fifth
of all cars made in the world,
contributing heavily to the re-
gion’s trade balance.
The talks, launched on Tues-
day via videoconference, bring
together German Chancellor
Angela Merkel and top execu-
tives from Volkswagen AG,
Daimler AG, BMW AG, the Ger-
man auto lobby, and the IG
Metall trade union. The discus-
sions are expected to last sev-
eral weeks, Ms. Merkel’s
spokesman said. They are fo-
cusing on aid for auto makers,
including a possible cash-for-
clunkers program modeled on
the measure that helped the in-
dustry overcome the 2007-09
recession by providing tax-
payer-financed discounts to
consumers who traded in old
vehicles for new ones.
The industry, which was
struggling with weakening
global demand and rocketing
costs associated with its transi-
tion to electric vehicles long
before the pandemic, has raised
pressure on the government to
help in recent weeks.
While generous wage subsi-
dies for furloughed workers
mean the sector has seen few
* *
“It will continue to impact our
future results particularly in
the second quarter of this year,
for which we expect to report
a net loss and significant nega-
tive cash flows.”
The company plans to re-
open most of its U.S. factories
the week of May 18, Mr. Man-
ley said, noting that discus-
sions are still continuing with
the United Auto Workers
union about various work-
place-safety protocols.
General Motors Co. and
Ford Motor Co. have also been
targeting May 18 to resume
some U.S. production, a time-
line that all three Detroit auto
makers tentatively settled
upon after talks with UAW
leaders and Michigan Gov.
Gretchen Whitmer’s office,
The Wall Street Journal re-
ported last week.
Fiat Chrysler reported an
adjusted loss of 30 European
cents a share for the quarter,
worse than analysts’ estimates
of a profit of 5 European cents
a share.
Fiat Chrysler has taken
steps in recent months to
build up its cash reserves in
an effort to ride out the health
crisis, ending the first quarter
with about €18.6 billion in
cash and available liquidity.
Fiat Chrysler continues to
press forward with plans to fi-
us ,
New car registrations in
l
e
Europe, by manufacturer
al a
1Q 2020
ci on
1Q 2019
er s
500,000 750,000 1,000,000
m er
m rp
job cuts so far, this could
change if demand doesn’t pick
co Fo
up in coming weeks as the
companies run through their
cash piles.
“April is going to be a month
with the lowest ever number of
new cars sold in Europe, even
worse than after the Lehman
Brothers crisis in 2008,” Emilio
Herrera, the chief of Kia Motors
Europe, said.
Paralyzed by lockdowns, Eu-
rope’s biggest auto makers have
bled billions of euros in liquidity
n-
each week as factories sat idle,
and their profits have plum-
meted. The weakest companies,
some of which may be just
weeks from running out of cash,
have seen their corporate bonds
downgraded to junk status.
And while many auto makers
began switching their factories
back on last month, only a frac-
tion of their workers are re-
turning. It could take months
or years before production in
one of Europe’s most important
industries returns to prepan-
demic levels.
The health crisis has caught
the industry at a sensitive time.
After nearly a decade of growth
and robust profits, global car
sales peaked in 2017, and car
makers have been fighting fall-
ing demand since.
Meanwhile, global efforts to
curb greenhouse-gas emissions
have forced car makers to in-
vest billions of dollars to build
a new generation of electric
cars that car executives doubt
many consumers will be inter-
ested in buying.
In this context, companies
are hoping new incentives for
consumers to buy cars could
act as a bridge over the historic
trough in demand.
In Germany, as in many other
European countries, the govern-
ment already subsidizes pur-
chases of electric vehicles as
part of its efforts to create a
green economy. Now, industry
leaders are calling for pan-
demic-related incentives that
would also apply to purchases of
conventional diesel and gasoline
vehicles as well as used cars.
But the discussion has
turned controversial, especially
in Germany, where Ms. Merkel
is fighting for her legacy as the
world’s leading political advo-
cate for renewable energy.
Wednesday, May 6, 2020 | B3
BUSINESS & FINANCE
its in North America and mak-
ing progress toward paying
down debt.
Looking to bolster its cash
reserves, Fiat Chrysler tapped
nearly €6.5 billion from its ex-
isting credit lines in April,
FIAT CHRYSLER AUTOMOBILES/AGENCE FRANCE-PRESSE/GETTY IMAGES
while adding another, separate
€3.5 billion credit line, which
it can draw down if needed.
Mr. Manley in March said
he would take a 50% reduction
in pay through July. Salaried
workers were asked to defer
portions of their pay in a cost-
cutting move designed to
avoid layoffs.
North America—long one of
the company’s most profitable
markets—continued to carry
results, with Ram-brand truck
sales up 7% in the first quarter
and 90% of its dealerships still
open. Operating margins for
the region were 3.8% for the
An assembly-line worker back on the job April 27 at a Fiat joint venture plant in Atessa, Italy. quarter over the same year-
earlier period.
nalize a $50 billion merger cars, and tougher auto-emis- hard by the pandemic, Fiat In China, where Fiat Chrys-
with France’s PSA Group. It sions restrictions. Chrysler was among the first ler began closing factories in
said Tuesday the deal is still The Italian-American auto auto makers to close plants or January, operating profit
moving forward and should be maker was able to restart reduce production outside of swung to a loss of €59 million
completed by the end of this some production in Italy last China. Stopping production in the first quarter. In Febru-
year or early 2021. month, but it has had to revise has an immediate impact on ary, it began resuming produc-
The two car companies plans multiple times to reopen the bottom line because reve- tion in the country.
have said the combination will North American factories nue is booked when a vehicle In Europe, Chrysler’s net
help to build scale and im- since it idled work in March in leaves the assembly plant. revenue fell 26% to drive a
prove profitability as the response to the widening out- The first-quarter losses €270 million operating loss in
global auto industry confronts break. mark a setback for a company the region.
rising costs related to new With large factory opera- that heading into the health —Eric Sylvers
technologies, such as electric tions in Italy, a country hit crisis was posting strong prof- contributed to this article.
.
Hertz’s Lenders Postpone Reckoning
ly
BY ALEXANDER GLADSTONE to customers. The cars them-
on Hertz Global Holdings Inc.
signed an agreement with lend-
ers to provide a 2 ½-week ex-
selves are financed with $13.4
billion of vehicle-backed debt,
collateralized by claims to own-
ership of the cars, trucks and
tension for debt restructuring vans themselves.
negotiations after the car Certain creditors own vari-
rental company missed a recent ous pieces of the company’s
JUSTIN SULLIVAN/GETTY IMAGES
lease payment. debt simultaneously, making
The Estero, Fla.-based car- negotiations more difficult,
rental company got lenders to people familiar with the matter
waive the potential debt default said. Hertz didn’t respond to
until May 22 to provide addi- requests for comment.
tional time for discussions In addition to monthly lease
“with the goal to develop a fi- payments, Hertz faces additional
nancing strategy and structure financing costs following a de-
that better reflects the eco- cline in the value of the used The company has come under financial pressure as ridership has
nomic impact of the Covid-19 cars that serve as collateral. plunged with curtailed travel. A rental lot in San Francisco last week.
global pandemic and Hertz’ on-
going operating and financing
requirements,” according to a
Tuesday securities filing.
The extension buys the
company time to negotiate with
lenders and bondholders re-
garding a planned chapter 11
filing.
The Wall Street Journal re-
ported Monday that the com-
pany has hired FTI Consulting
Inc. as a restructuring adviser
for the planned bankruptcy, in
addition to other legal and fi-
nancial help.
Hertz’s financial restructur-
ing is expected to be unusually
complex, given the company’s
immense balance sheet with
more than $17 billion in debt, as
well as a complicated capital
structure. Hertz, as well as rival
Avis Budget Group Inc., have
come under intensifying finan-
cial pressure as ridership has
plunged with curtailed travel.
Hertz has $3.7 billion of cor-
Staying home
porate debt backed by the com-
pany’s brand name, intellectual
property and earnings gener-
ated by the business itself. The
more than 770,000 vehicles
saves lives.
that Hertz operates globally are
held at special subsidiaries,
from which Hertz leases the ve-
hicles before renting them out
Part of Your
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Wednesday, May 6, 2020 NY * *** THE WALL STREET JOURNAL.

TECHNOLOGY & BUSINESS WSJ.com/Tech

Juul Moves Base to

Washington in Signal
To Health Regulators
BY JENNIFER MALONEY
Juul Labs Inc. is moving its
headquarters from San Francisco
to Washington, D.C., the com-
pany said, as the e-cigarette
maker seeks to repair its rela-
tionship with regulators and dis-
tance itself from Silicon Valley’s
growth-at-all-costs culture.
The move is part of a
DAVE COLE/THE WALL STREET JOURNAL
wrote. “Rather, it is about set-
ting the company up for long-
term success. We will no longer
scale for the sake of expansion.”
The move of Juul’s corporate
functions to Washington will
put the e-cigarette market
leader closer to lawmakers and
federal regulators at the Food
and Drug Administration who
will soon be deciding whether

broader restructuring plan that Juul’s products—and the prod-

includes a reduction in the
company’s workforce by
roughly one-third, the closure
of some U.S. offices and a scal-
ing back of its footprint in Eu-
rope and Asia, the company
said Tuesday. The relocation
was earlier reported by The
Wall Street Journal.
Pay for those earning over $100,000 would be rolled back 3% under the plan. Network headquarters in New York’s Rockefeller Center. “San Francisco and Silicon
Valley still remain incredibly
ucts of its competitors—can re-
main in the U.S. market.
Juul is moving for that prac-
tical reason and for the sym-
bolic value of a shift from Sili-
con Valley to Washington,
people familiar with the matter
said.
The company will maintain a
large presence in the San Fran-
cisco area, which will remain a

NBCUniversal to Slash Pay 20%

important,” Chief Executive hub for Juul’s product and soft-
K.C. Crosthwaite wrote in an ware development, the people
email to staff Tuesday. “They familiar with the matter said.
capture the technological spirit Juul currently has about

For Executives and Undo Raises

of our company, and we will 3,000 employees and plans to
preserve and grow that spirit.” cut roughly 900 jobs through a
Blamed for a surge in under- combination of buyouts and
age vaping, Juul has been cited layoffs, the company said.
as an example of the Silicon Juul’s U.S. staff of 1,800 will be
BY JOE FLINT down during the pandemic. ing Chief Executive Brian Rob- Separately Tuesday, a person Valley ethos gone awry. The reduced by about one-quarter
“There is no question that erts, finance chief Mike Ca- familiar with the matter said startup raised billions of dollars and its international staff by
NBCUniversal is cutting the the current environment is hav- vanagh, Comcast Cable the New York attorney gen- from investors, promising an about half, one of the people fa-
pay of its senior management ing a significant impact on our President Dave Watson and Sky eral’s office was investigating alternative to cigarette smok- miliar with the matter said.

.
by 20% and rolling back pay by company’s performance,” Mr. Group CEO Jeremy Darroch, the workplace culture at NBC- ing, but ended up beset by reg- Sales of Juul’s vaporizer
3% for employees making more Shell said. Besides the closing said in early April they would Universal’s news division. Rep- ulatory crackdowns, lawsuits surged in 2017, ushering in a

ly
than $100,000 in response to of the theme parks, he cited the donate 100% of their salaries to resentatives from the attorney and federal investigations into new way to consume nicotine.
the financial fallout from the shutdown of television and Covid-19 relief efforts through general’s office have inter- its marketing practices. Juul Tobacco giant Altria Group Inc.,
coronavirus pandemic, Chief movie production, the post- “the duration of the situation.” viewed former employees such has said that it didn’t market to worried about declines in its
Executive Jeff Shell said in a
memo to staff Tuesday.
“In order to deal with the
depth of this crisis and its effect
ponement of the summer Olym-
pics—which NBCUniversal was
slated to broadcast—and skit-
tish advertisers backing away
on Comcast said on April 1 that
it had “committed $500 million
to support our employees
through continued pay and
as former NBC anchors Megyn
Kelly and Linda Vester.
Investigators are looking
into claims of retaliation
teens and that it is working to
regain the public’s trust. Its
U.S. retail-store sales have
fallen 38% since July, according
core cigarette business, paid
$12.8 billion for a 35% stake in
2018. The price valued Juul at
$38 billion, making it one of the
on our company we need to ad- from television. benefits where operations have against employees who criti- to Cowen analyst Vivien Azer. country’s most valuable start-
us ,

dress our cost base,” Mr. Shell “Advertising revenue is been paused or impacted.” cized the network, the person Juul said it plans to exit ups.
l

wrote. Besides pay cuts and starting to fall,” he said. The salary cuts come one said, who added that the inves- from the South Korean market Mr. Crosthwaite, a former
e
al a

raise retractions, Mr. Shell said, The 20% cut applies to the day after Mr. Shell announced tigation has been under way for and is exploring pulling out of Altria executive, put the brakes
travel, entertainment budgets executive leadership committee the restructuring of much of months. Austria, Belgium, Portugal and on Juul’s rapid expansion in
and the use of outside consul- composed of Mr. Shell’s direct NBCUniversal’s operations, a An NBCUniversal spokes- Spain. The company is also September. He laid off 650
ci on

tants will also be reduced. reports, while the 3% rollback
A unit of Comcast Corp., is for the rest of the company.
NBCUniversal owns the NBC On-air talent at NBC News also
broadcast network, the Universal have been asked to take a 3%
Pictures movie studio and cable pay cut, a person familiar with
er s
move that led to the departure
of NBC News Chairman Andy
Lack. Cesar Conde, a fast-rising
executive who currently runs
the company’s Spanish-lan-
woman said the company
wasn’t aware of any investiga-
tion being conducted by the
New York attorney general. The
New York attorney general’s of-
shrinking its presence in
France, where it is considering
moving to online-only sales, ac-
cording to a person familiar
with the matter.
staff, cut about $1 billion in
spending, began scaling back
the international rollout and
halted U.S. sales of the com-
pany’s sweet and fruity flavors

channels MSNBC, CNBC and USA the matter said. guage network Telemundo, was fice declined to comment. “This may feel like a retreat in anticipation of a federal ban.
network. It also owns theme Mr. Shell along with others tapped to lead an expanded —Lillian Rizzo from the international market, Altria as of March held Juul
m er

parks, which have had to shut in Comcast’s top brass, includ- news unit. contributed to this article. but it is not,” Mr. Crosthwaite at a valuation of $12 billion.

ADVERTISEMENT
ON BUSINESS | JOHN D. STOLL
m rp

The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
Stakeholder Capitalism Suffers a Blow
BUSINESS OPPORTUNITIES CAREERS A survey of ability efforts. Auto makers gent issues, however. When a been hit hard.” Revenue this
co Fo

senior execu- spending billions of dollars to company is running short of year is expected to be less
        
 
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during the pandemic were in forts to better the lives of timetable. could be done to bail Airbnb
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 *0 2 1 %'   / “Travel in this new world ously reported. The spokesman private-equity firms Silver Lake so fast and they’re so unprece-
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© 2020 Dow Jones & Company, Inc.
 292 All Rights Reserved. One initiative that Mr. it grew. Its total costs rose to Those investors also get war- nance workers that help make
Chesky didn’t mention in his $5.3 billion last year, from $2.6 rants that can be converted the Airbnb economy function.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Mexico Shutdown Snags U.S. Factories
BY BOB TITA
AND SANTIAGO PÉREZ
U.S. manufacturers prepar-
ing to resume production after
a month of lockdowns are re-
turning to work without a reli-
able supply of parts from
plants in Mexico, a majority of
which remain idled by restric-
tions there to slow the spread
of the coronavirus.
Mexico exported $358 billion
worth of goods to the U.S. last
year, surpassing China as the
nation’s largest trading partner.
But many subsidiaries and sup-
pliers of parts or finished
goods to U.S. manufacturers re-
main closed by the order of
Mexico’s Health Ministry, limit-
ing the flow of goods back
north across the border.
Mexico’s lockdown covers
entire industries that remain in
operation in the U.S. or are
planning to resume production,
including the auto industry.
Auto makers in the U.S. volun-
ISMAIL FERDOUS FOR THE WALL STREET JOURNAL
Jeans are made at the Denim Expert factory in Bangladesh. The owner shipped $400,000 of the clothing to the U.S. but hasn’t been paid as the retail economy has seized up.
Retailers’ Cancellations Vex Clothes Makers
BY JON EMONT
A Bangladeshi manufacturer
expected to be paid shortly af-
ter it shipped in February
more than $400,000 of jeans
to Los Angeles to fulfill an or-
der by a Western apparel com-
pany.
Nearly three months later,
the clothes maker still hasn’t
received its money and doesn’t
know where the jeans are. The
company’s owner expected
payment shortly after ship-
ping, in line with what he said
was the companies’ usual ar-
rangement.
Buying agent Li & Fung Ltd.,
which arranges clothing pur-
chases for companies that own
major fashion brands, declined
to comment on the deal and its
no
relationship with specific sup-
pliers. A Li & Fung spokes-
woman said decisions on pay-
ments and cancellations are
Air Cargo
Squeeze
Lifts Costs
Continued from page B1
change again.”
Warren Evans, co-owner of a
company that makes fitness
equipment in China and sells it
to U.S. customers on Ama-
zon.com, has seen higher de-
mand from locked-down cus-
tomers who can’t go to the
gym. Carriers recently in-
creased airfreight charges three
times over a two-week period
when he was preparing to send
jump ropes from Shanghai to
Chicago, where they would be
picked up and transported to
an Amazon warehouse.
Mr. Evans said he needed to
maintain his high seller rank-
ing, so he went ahead with the
shipment, which cost more
than three times the usual rate.
Mr. Evans said he would
probably send fewer shipments
via air, and instead rely more
on sea freight while costs re-
main high. So far he is absorb-
ing the extra cost, but might
raise prices on the jump ropes
if demand continues.
“It’s going to be a continuing
battle,” he said.
Borderfree Inc., an e-com-
* * * * * *
tarily idled assembly plants but
are expected to resume produc-
tion later this month.
Jeff Clark, chief executive
of Waukesha Metal Products,
a Wisconsin-based metal
stamper and fabricator, pre-
dicted it will be difficult for
auto assembly plants in the
U.S. to reopen without suppli-
ers in Mexico starting produc-
tion as well. Waukesha was
forced to close on April 6 a
plant in Mexico that makes
parts for vehicles assembled in
both Mexico and the U.S.
“We’re essential in the U.S.
and still operating, but in
Mexico we’re completely shut
down,” he said.
Repairing the frayed supply
chains will be an early test for
the revised version of a free-
trade agreement between the
U.S., Mexico and Canada, which
is set to take effect in July.
The supply strains are add-
ing to the uncertainty for man-
ufacturers navigating one of the
on
us ,
l
e
al a
ci on
er s
m er
made by its customers.
m rp
Disputes like these have ex-
ploded across the garment in-
dustry as payments are de-
layed and orders are canceled
by retailers dealing with
co Fo
closed stores and plunging
sales. Factories in Asia that
have paid raw-material, labor
and other costs are reeling,
and many of them are realizing
they have little recourse as ap-
parel contracts have shifted to
give importers more flexibility.
“You may have thousand
problems [sic], I do also have
millions of problems too!”
wrote Mostafiz Uddin, owner
of the jeans maker, Denim Ex-
n-
pert Ltd., in an April email to
Li & Fung that he shared with
The Wall Street Journal.
Letters of credit, a once-
common backstop guarantee-
ing payment through banks,
have faded away in the past
decade. Under that payment
With jets grounded, companies have been forced to pay more to move goods or use slower sea routes.
merce company that helps U.S.
and U.K. retailers including Gap
Inc. and Macy’s Inc. ship online
purchases all over the globe,
has told customers in more
than two dozen countries that
they can’t place orders due to
service interruptions caused by
Covid-19.
International postal services
have been among the hardest
hit. Many have reduced or sus-
pended international mail in re-
cent weeks due to a lack of
flights.
The U.S. Postal Service last
week said it would start ship-
BUSINESS NEWS
steepest drops in demand for
their products in decades. U.S.
factory orders posted a record
drop in March, the Commerce
Department said on Monday.
U.S. companies and some
states have been lobbying for
Mexican plants near the border
to reopen, raising tensions be-
tween border towns where
manufacturing and trade are
tightly linked. Mexican authori-
ties have cited border factories
for contributing to higher rates
of infection in northern Mexico.
A spokesman for Robert
Lighthizer, the U.S. trade repre-
sentative, had no immediate
comment on the agreement or
the impact of the pandemic on
trade between the U.S. and
Mexico.
Mexico’s Economy Ministry
said on April 24 that it was
working with U.S. and Cana-
dian counterparts on a plan to
gradually reopen the automo-
tive industry.
Mexican officials have been
system, the buyer’s bank com-
mitted to pay the supplier
once the goods were shipped,
ensuring factories were paid
without delay or last-minute
haggling.
Even in cases of force ma-
jeure—when retailers say they
can’t pay owing to circum-
stances beyond their control—
banks would generally still be
obligated to pay suppliers if
the goods had shipped, said
Sonja Chapman, a professor of
international trade at the
Fashion Institute of Technol-
ogy and longtime apparel-in-
dustry executive.
Retailers have moved away
from letters of credit, opting
instead for an open-account
system—essentially an honor
system—where factories trust
retailers to pay after shipment.
Factory owners in Bangladesh
said they accepted the shift
because they worried that if
ping mail by sea to 10 Euro-
pean countries. The U.K.’s Royal
Mail said the only other time it
experienced similar disruptions
was a decade ago, when a vol-
cano erupted in Iceland and
spewed a giant ash cloud that
blocked air travel.
Deutsche Post AG, which de-
livers mail in Germany and
owns international courier DHL,
in April said the scarcity of air-
freight capacity could continue
after countries lift lockdown
rules, because it will take time
for passenger traffic to return
to prepandemic levels.
Wednesday, May 6, 2020 | B5
reluctant to deviate from the Mexican supply chain affects
Health Ministry’s guidelines every plant we have,” he said.
on essential businesses. Public Home-appliance manufac-
health authorities say the tra- turers, too, rely heavily on
jectory of the pandemic in plants in Mexico, the second-
Mexico is behind the U.S., re- largest producer of appliances
quiring that more businesses imported to the U.S. behind
there remain closed. China. Appliance companies
“Mexico is going to follow including Whirlpool Corp.
its own calendar,” Marcelo Eb- said some of their suppliers in
rard, Mexico’s foreign minis- Mexico haven’t succeeded in
ter, told reporters last week. securing permission to remain
Lennox International Inc. open. “We’ve had some issues
said its two plants in Mexico of stop and start with certain
remain open as providers of players,” Whirlpool CEO Marc
heating and refrigeration Bitzer said Friday. “They have
equipment to essential busi- not been completely resolved,
nesses. But at least a dozen but we remain confident they
suppliers of components for will be resolved.”
the company’s equipment More than 300 U.S. chief
were closed for a month by lo- executives signed a letter last
cal authorities, who didn’t month from the Washington-
make exceptions for them to based National Association of
fill orders from Lennox, said Manufacturers to Mexican
John Hurst, Lennox’s vice President Andrés Manuel Ló-
president of government af- pez Obrador asking that Mex-
fairs. He said about half of ico recognize the broader set
those suppliers were allowed of guidelines for essential
to reopen this week. “The manufacturing issued by the
ly
they didn’t go along, a compet- speaking about the industry in
itor from India or Latin Amer- general.
ica would. They also are reluc- Global Brands Group Hold-
tant to speak up or take legal ing Ltd., which designs, devel-
action because they don’t want ops, markets and sells prod-
to alienate buyers. ucts under owned and licensed
The shift in terms reflects brands including Jones New
“the increasing leverage of York, sent a note to a supplier
fashion brands and retailers in March that it had decided to
over garment factories, as the cancel spring and summer or-
fashion business is becoming ders without liability, accord-
more buyer-driven,” said ing to a letter shown to The
Sheng Lu, a professor of ap- Wall Street Journal by Mr. Ud-
parel studies at the University din.
of Delaware. Global Brands Chief Execu-
The current plummet in ap- tive Rick Darling said in an
parel demand, caused by the email to the Journal that a
coronavirus pandemic, is rico- dramatic decline in demand
cheting across the supply had led his company to signifi-
chain. Apparel factories often cantly reduce the flow of mer-
pay for labor and material chandise ordered for the rest
costs out of pocket or with of the year. The company “is in
debt. “Big companies don’t pay communication with all our
upfront,” said Florian Schnei- suppliers in an attempt to mit-
der, who works in sourcing igate the resultant financial
and merchandising for major stress this disruption has
apparel companies, and was caused,” he said.
grass-fed beef producer OBE
Organic would mostly use air-
freight to send chilled premium
beef overseas, and use sea
freight for frozen trimmings
that make meatballs and ham-
burgers.
Dalene Wray, the company’s
managing director, said it is
sending more meat by sea due
to higher air-cargo costs.
She said a sea shipment of
chilled beef, worth tens of
thousands of dollars, en route
to Dubai was scheduled to
reach supermarket shelves in
roughly 30 days. That com-
pares to the seven days it
NICK OXFORD/REUTERS
would take by air, including
time for customs clearance and
inspections.
“We just have to be more
agile” to adapt to the situation,
she said.
The cargo crunch is hitting
consumers like Anita Lau, an
In Australia, 80% to 85% of American living in Hong Kong,
air cargo normally arrives and who tried to send a box of face
leaves the country on passen- masks to her elderly parents in
ger flights, according to the Boston early last month. Regu-
Australian Federation of Inter- lar airmail service to the U.S
national Forwarders. was suspended, so she used the
Governments are subsidizing post office’s international cou-
the cost of some cargo flights rier service, which costs
out of New Zealand and Austra- roughly $40 to send a 500-
lia to keep trade routes open. gram parcel.
“There is no book to open Nearly two weeks later, the
up and read what to do in this tracking record showed the
situation because it has never parcel was still at its origin.
happened before,” said Mark Ms. Lau requested it be re-
Coleman, director at ICAL, a lo- turned to her, and said she now
gistics company in Australia. plans to use a private shipping
In normal times, Australian option.
Department of Homeland Se-
curity. That list, which identi-
fies 16 critical industries, has
been widely adopted by state
governments in the U.S.
In Ciudad Juárez, a manu-
facturing hub near El Paso,
Texas, authorities said 13
workers at a plant for car-seat
manufacturer Lear Corp. died
of the virus. Lear said it sus-
pended operations at its 42
plants in Mexico last month.
Javier Corral, the state gov-
ernor of Chihuahua, where
Ciudad Juárez is located, said
he rejected requests from U.S.
governors and executives for
his state to establish a sepa-
rate schedule from the rest of
the country for reopening au-
tomotive and aerospace
plants. “What we’re looking
for from the federal govern-
ment is some alignment, so
that we can reopen at the
same time.” Mr. Corral said.
—Robbie Whelan
contributed to this article.
FTC Backs
AbbVie on
Allergan
Acquisition
.
BY JOHN D. MCKINNON
WASHINGTON—AbbVie Inc.
agreed to divest itself of sev-
eral pharmaceutical assets to
settle the Federal Trade Com-
mission’s antitrust objections
to its proposed $63 billion ac-
quisition of Botox maker Al-
lergan PLC.
The FTC voted 3-2 along
party lines to approve the set-
tlement.
The companies said the set-
tlement “satisfies all required
antitrust clearances needed to
be obtained” for the acquisi-
tion. The AbbVie-Allergan deal
was announced in mid-2019. It
was viewed as giving AbbVie a
dominant position in the lu-
crative market for Botox and
other beauty drugs as AbbVie
prepared for the end of patent
protection for its blockbuster
Humira immunosuppressive
drug.
The companies’ portfolios
were thought to have some po-
tential for overlap in treat-
ments for the brain, women’s
health and other areas. In the
end, the FTC focused on a nar-
rower range of concerns over
competition.
The drugs that would be di-
vested under the proposed set-
tlement with the FTC include a
set of treatments for a pancre-
atic disorder and a class of
drugs used for Crohn’s disease
and ulcerative colitis.
The companies said they
have amended their agreement
to provide that only one Aller-
gan director will join AbbVie’s
board following the closing of
the deal. Allergan Chairman
and Chief Executive Brent
Saunders has elected not to
join AbbVie’s board “to pro-
vide more flexibility to pursue
other opportunities in the sec-
tor,” the companies said.
Democratic FTC members
said the agency’s remedy was
insufficient and raised con-
cerns about the takeover’s po-
tential impact on innovation.
Republicans said the FTC must
have proof a merger is likely
to lessen competition substan-
tially before it can challenge it.
Stay-Home
Orders Boost
Wayfair Sales
BY CHARITY L. SCOTT
Wayfair Inc.’s sales jumped
20% in the quarter that ended in
March, boosted by millions of
Americans buying office furni-
ture, cookware and other items
to shelter in place.
In the midst of a pandemic
that has upended businesses, the
e-commerce company’s opera-
tions, for the moment, are look-
ing comparatively resilient.
First-quarter revenue reached
$2.3 billion, nearly as much as it
pulled in during the holiday
quarter. But Wayfair recorded a
net loss of $286 million, or 43%
deeper than the loss it notched
in last year’s first quarter.
Demand has continued to be
strong in the second quarter,
boosted in part by stimulus pay-
ments Americans have received.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B6 | Wednesday, May 6, 2020
Malls’ Gamble
On Amenities
Poses New Woe
Property upgrades to
tackle online rivals
could leave industry
vulnerable in recovery
BY ESTHER FUNG
A mall owner’s struggles to
pay down debt show that in-
vestments to contend with on-
line shopping risk leaving the
industry more vulnerable dur-
ing the pandemic recovery.
Pyramid Management Cos.
of Syracuse, N.Y., which owns
and operates 14 properties in
New York and Massachusetts,
said it invested hundreds of
millions of dollars in recent
years to make its retail centers
about more than shopping.
The privately held firm in-
stalled an 85-foot-tall indoor
rope course in one mall and a
70-foot one in another. At some
malls it added miniature golf,
popular themed restaurants like
Margaritaville and comedy-and-
dining club Levity Live. It also
developed hotels near its malls
in an effort to appeal to con-
sumers beyond its local base.
These steps, taken from mall
owners’ new playbook for sur-
viving the rise in e-commerce,
have been popular with families
and helped bring in customers
eager for experiences not avail-
able on their computer screens.
Now, due to the pandemic,
all of Pyramid’s mall operations
are closed, except for some
Crisis Spurs Look at Alternatives to Fixed Rent Gold’s Gym
BY KONRAD PUTZIER
With the pandemic under-
mining even profitable busi-
nesses, some companies want
to overhaul a core tenet of the
real-estate industry: steady and
predictable rent payments.
Fixed long-term leases domi-
nate the real-estate market to-
day and have for centuries. But
the economic shutdown ex-
posed a dangerous flaw in the
model: Companies’ revenues
can plummet from one month
to the next, but their rent obli-
gations typically remain con-
stant, putting many firms in
danger of default or even insol-
vency. Lacking sales, many re-
tail and office tenants are ask-
ing for rent relief.
But more companies are
looking beyond short-term
cures. They want to switch
from long-term leases with
fixed monthly or annual pay-
ments to more flexible arrange-
ments that include revenue
sharing.
no
Some property owners say
they are open to the idea.
“The days of being the land-
lord as an overlord to collect
Fiber-Optic Cable Companies Draw Investors
BY KONRAD PUTZIER
Business closures and stay-
at-home orders have hit the
real-estate sector hard. But an
obscure corner of the industry
is benefiting from people stay-
ing at home.
Fiber-optic cables are draw-
ing a interest from investors.
These cables, which transmit
data through light and are a
crucial component of high-
speed internet, aren’t techni-
cally real estate. But they are
often owned by property in-
vestment firms and leased out
to users under long-term deals,
much like office or retail space.
The Internal Revenue Ser-
vice treats income from leasing
out cables as property income,
which has let publicly traded
real-estate investments trusts
build up sizable portfolios.
Now, as the pandemic causes
more people to work remotely,
demand for fiber-optic cables is
increasing. “These are literally
the railroads of the future,”
said Marc Ganzi, chief execu-
tive officer-elect of investment
firm Colony Capital Inc.
While the stocks of most
real-estate investment trusts
are down this year amid con-
cern over plummeting rental
income, share prices of compa-
nies that invest exclusively in
THE WALL STREET JOURNAL.
THE PROPERTY REPORT
stores and restaurants offering
curbside pickup or delivery. But
even when they reopen, these
new attractions look ill-suited
for the period when malls must
abide by social distancing and
health regulations.
Gyms, trampoline parks,
bowling alleys, open-concept
kitchens for cooking classes
LIBBY MARCH FOR THE WALL STREET JOURNAL
and gaming centers rely on
high participation levels to be
profitable, analysts say, but
these amenities will need to
limit the number of customers
for virus-safety reasons. They
may require more cleaning and
sanitation than shopping areas.
The attractions are likely to
rebound even more slowly than
traditional retail, analysts say.
A recent survey of 1,400 people
from Jefferies Equity Research Pyramid Management has invested in attractions at its properties, such as a rope course at the Destiny USA Mall in Syracuse, N.Y.
found 56% of consumers plan to
avoid entertainment areas such they are still an important in- man said. country hardest hit by the cor- things,” said Manus Clancy, se-
as movie theaters, theme parks gredient in the complexion of Pyramid’s debt problems are onavirus, making it likely that nior managing director at
and concerts compared with enclosed malls for the future,” worse than many peers because reopening them would be slow- Trepp. “They need to be doubly
30% for apparel stores. said a Pyramid spokesman. it has a large exposure to loans est. The likelihood of lower rent creative now.”
In areas of the country But the bill for some of Pyra- that are packaged into commer- collection from its mall mer- Pyramid was late on April
where malls have reopened, mid’s investments is coming cial mortgage-backed securi- chants in coming months could mortgage payments for its Pali-
children’s play areas have re- due. The company has $1.6 bil- ties, analysts said. make it tougher for the com- sades Center in West Nyack and
.
mained shut. Skating rinks and lion of debt in commercial Borrowers say it has been pany to secure refinancing. Poughkeepsie Galleria in
escape rooms, where teams fol- mortgage-backed securities in- easier to get relief from direct Last year, Pyramid secured Poughkeepsie, both in New
ly
low clues to find their way out volving 11 malls, according to lenders such as banks or insur- an extension for its $300 million York state.
of a confined area, are likely to real-estate research firm Trepp ers during this crisis. But hold- loan on Destiny USA, a six-story In an April 23 report, Fitch
see slower recovery. LLC. Pyramid was late on mort- ing restructuring talks with complex in Syracuse with ten- Ratings said the temporary clo-
Pyramid said these features
will make their properties
stronger for the longer term.
“Diversity is the answer to the
on gage payments for six of these
properties in April, Trepp said,
including Destiny USA, the larg-
est mall in New York state.
servicers of commercial mort-
gage-backed securities loans
has been difficult. Servicers are
flooded with relief requests,
ants such as Macy’s, J.C. Pen-
ney, Apple and Dave & Buster’s
that draws 26 million visitors a
year. The loan has three one-
sure of Poughkeepsie Galleria
weakened the refinance pros-
pects of its loan, which matures
in November 2021. In its base-
future of our industry and even “Like many in our industry, and some aren’t obliged to re- year extension options subject case analysis, holders of the
us ,
though restaurants and enter- Pyramid has begun the process spond until a default occurs. to certain conditions. mortgage-backed securities
l
tainment venues may lag others of debt restructuring for spe- Pyramid’s properties are “They have been nimble be- could face a 50% loss on this
e
al a
in reopening from this crisis, cific properties,” the spokes- concentrated in locations of the fore with trying new loan, Fitch added.
ci on
Files for
rent are over,” said Michael fering from a downturn in tour- safer investment. shorter-term leases or revenue
er s
Phillips, president of real-estate
investment firm Jamestown.
ism, are also looking to lower
their real-estate bills and are
Although the pandemic has
exposed that perceived safety
sharing last year amid uncer-
tainty over the future of bricks- Chapter 11
m er
As the coronavirus started willing to grant property owners as an illusion in some cases as and-mortar retail, he said.
spreading, the company set up a a share of their profits in return. tenants simply stop paying Some clients in the food-and- BY JONATHAN RANDLES
task force to help its tenants han- Lease alternatives can come rent, landlords and banks still beverage sector are now look-
dle the fallout and later set aside in many forms. Some firms sign prefer leases. And some retail- ing to approach their landlords Gold’s Gym International
$50 million for loans and other deals that include a few years ers are looking to benefit from about revenue sharing, he Inc., which like other gym op-
m rp
aid, Mr. Phillips said. He expects of revenue sharing upfront, fol- the economic crisis by locking added. erators has temporarily closed
to see more short-term leases lowed by a period of fixed rent in long-term leases today at These arrangements aren’t locations across the globe in
and revenue-sharing arrange- low rents. all new. Hotel and mall opera- response to the coronavirus
ments as stores gradually reopen. There are also practical chal- tors have had them for decades. pandemic, filed for chapter 11
A number of retailers are al-
Ross Stores plans to lenges: Opening up the books Neiman Marcus and other lux- bankruptcy to restructure its
co Fo
ready asking landlords to waive to a landlord can be tricky, and ury retailers at New York City’s debt to withstand the eco-
some of their rent in return for pay a rent equivalent some businesses may struggle giant Hudson Yards mall pay nomic fallout.
a share of future revenues.
Ross Stores Inc. said last
of 2% of sales when to show how much revenue is
down to a particular location.
their landlord a percentage of
sales rather than a fixed rent,
The Dallas, Texas, company
said the pandemic has forced it
month that it would pay a rent sites reopen. “There’s just a lot of pitfalls,” brokers said. to permanently close about 30
equivalent to 2% of sales when said Joe Learner, vice chairman But the practice is spreading corporate-owned gyms and re-
its stores reopen. Guesst, a New and Midwest region lead at to new sectors and growing in structure its balance sheet in
York-based technology com- brokerage firm Savills. popularity as economic turmoil chapter 11. Gold’s Gym said it
pany, recently launched soft- payments. Other deals include a But even if leases aren’t go- makes it harder for companies would keep paying its suppliers
ware to help retailers and land- low monthly rent, topped off by ing anywhere, the days when to predict how much money and other vendors while under
lords manage revenue-sharing a share of revenue. Still others they were the only option may they will make in years to come. court protection and it seeks to
arrangements. include no rent at all. be over. “A leased co-working unit is emerge from bankruptcy by
Co-working giant WeWork, Despite the appeal, brokers “Most epidemiologists don’t like putting debt on your house. Aug. 1, if not earlier.
n-
which had been looking to and landlords expect fixed believe this is the last” pan- You owe a certain amount, and During the restructuring, the
switch to more revenue-sharing leases will remain the norm. demic, said Naveen Jaggi, presi- then it magnifies all of the company said that it would still
arrangements before the pan- Mortgage lenders, which put a dent of retail advisory services at swings,” said Jamie Hodari, support its nearly 700 gyms
demic, has accelerated the shift premium on stable income, are brokerage firm JLL. “You better CEO of the co-working com- world-wide and that it is work-
over the past month and hired a big reason why. They tend to build your business plan to ac- pany Industrious, which largely ing with its landlords and fol-
two brokerage firms to renegoti- offer better terms for proper- commodate future disruptions.” switched from leases to man- lowing direction from public-
ate its real-estate deals. Some ties with long-term tenants be- Mr. Jaggi said more retailers agement agreements long be- health officials on which
apartment-hotel operators, suf- cause they are viewed as a had already begun asking for fore the pandemic. locations may reopen.
The chapter 11 filing on
Monday highlights how govern-
ment orders to close nonessen-
tial businesses to fight the
spread of Covid-19 have hit the
fitness industry particularly
Share-price and exchange- owners another boost. hard. Along with Gold’s Gym,
traded fund performance “Working from home has re- the parent company of New
Crown Castle ally shifted how the internet is York Sports Clubs and Lucille
20%
International working,” said David Guarino, Roberts gyms has hired law-
an analyst at Green Street Ad- yers to explore a debt restruc-
10 visors. turing, which could include a
Within large offices, data is bankruptcy filing.
often sent around through in- Gold’s Gym Chief Executive
0 ternal networks. When people Adam Zeitsiff said the purpose
work remotely and do much of of the chapter 11 filing is to en-
it over cloud-based applica- sure the company’s continued
–10 tions, they send more data viability for decades to come.
through fiber cables owned by The company was the first na-
KEITH SRAKOCIC/ASSOCIATED PRESS
investment firms, Mr. Guarino tional gym to temporarily close
–20
said. its locations in March due to
Much of the increase in re- the coronavirus, according to
Vanguard
–30 Real Estate
mote work is likely temporary, Mr. Zeitsiff, who said the
ETF but more companies say they Covid-19 pandemic “has af-
want employees to spend more fected Gold’s Gym deeply and in
–40 time working from home or many ways.”
J F M A M from smaller satellite offices “Gold’s Gym is absolutely
even after the pandemic. not going anywhere,” Mr.
As more people work remotely, more data is sent via fiber cables. Source: FactSet And while government or- Zeitsiff said in a video message.
ders halted construction of of- Mr. Zeitsiff said in an inter-
digital-related real estate have creates the need for more fiber largest leveraged buyouts since fice or apartment buildings in view with The Wall Street
rallied. Shares of Crown Castle and small cell towers, particu- the financial crisis. More than a some cities, Mr. Brown said Journal that Gold’s Gym plans
International Corp., a Houston larly in large, densely popu- quarter of Digital Colony’s $4.1 Crown Castle was deemed an to open locations in Oklahoma
owner of cell towers and fiber- lated cities. billion fund is invested in fiber, essential business and could on Friday and gyms in other
optic cables, are up 11% this Crown Castle and Zayo Mr. Ganzi said, and the com- continue laying cables. states in accordance with local
year, while the Vanguard Real Group Holdings Inc., which pany plans to invest more than Some traditional real-estate guidance in the weeks to come.
Estate ETF is down 21%, ac- was recently acquired by a Col- $1 billion in fiber over the com- investors began shifting to a “We are getting back to
cording to FactSet. Crown Cas- ony affiliate and EQT, are ing year. digital strategy well before the business the best we can in the
tle has invested $14 billion in among the biggest owners of fi- In 2017, Deloitte estimated pandemic. Colony Capital said states that are allowing [it],
fiber over the past five years ber. Tech giants such as Google the U.S. would need to invest last year it planned to sell most Mr. Zeitsiff said.
and plans to invest around $2 parent Alphabet Inc. also in- $130 billion to $150 billion in of its traditional property hold- The bankruptcy filing isn’t
billion annually in the coming vested in the sector. fiber over five to seven years to ings and invest more in data expected to affect the gym’s li-
years, said CEO Jay Brown. The In March, Digital Colony roll out 5G across the country centers, fiber and cell towers censing division, which sells
company is betting the rollout and EQT took Zayo private in a effectively. Now an increase in through its platform Digital Gold’s Gym branded merchan-
of 5G internet across the U.S. $14.3 billion deal—one of the remote work is giving fiber Colony Management. dise, nor franchise gyms.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, May 6, 2020 | B7

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, NYSE s-New 52-week high. Chewy CHWY 42.09 2.85 ENI E 18.55 0.39 GSXTechedu GSX 39.68 2.18 IntlFlavors IFF 128.90 1.00 LasVegasSands LVS 46.39 0.94 MarvellTech MRVL 26.27 0.57
Arca, NYSE American and Nasdaq Stock Market t-New 52-week low. ChinaLifeIns LFC 10.13 0.03 EOG Rscs EOG 46.05 -0.69 Galapagos GLPG 220.87 6.39 IntlPaper IP 33.10 -0.27 Lear LEA 90.15 -0.82 Masco MAS 40.82 0.98
listed securities. Prices are composite quotations dd-Indicates loss in the most recent four ChinaMobile CHL 38.76 0.09 EPAM Systems EPAM 221.89 5.68 Gallagher AJG 83.13 15.79 -0.08 49.83 0.03 s Masimo MASI 234.00 8.27
2.99 Interpublic IPG LeggMason LM
that include primary market trades as well as quarters.
ChinaPetrol SNP 47.27 0.80 E*TRADE ETFC 39.05 -0.12 Gaming&Leisure GLPI 25.70 0.09 Intuit INTU 274.48 6.70 Leggett&Platt LEG 30.34 -3.72 Mastercard MA 273.98 4.72
trades reported by Nasdaq BX (formerly Boston), FD-First day of trading.
Chicago Stock Exchange, Cboe, NYSE National and h-Does not meet continued listing ChinaTelecom CHA 33.30 0.40 EastWestBncp EWBC 33.27 -0.47 Garmin GRMN 80.76 1.04 IntuitiveSurgical ISRG 512.86 10.87 Leidos LDOS 98.44 -0.47 MatchGroup MTCH 80.10 2.92
Nasdaq ISE. standards ChinaUnicom CHU 6.27 0.14 EastmanChem EMN 60.11 -0.54 Gartner IT 115.99 -0.31 InvitatHomes INVH 23.51 0.72 Lennar B LEN.B 38.68 0.95 MaximIntProducts MXIM 52.73 1.12
The list comprises the 1,000 largest companies lf-Late filing Chipotle CMG 870.23 -4.77 Eaton ETN 80.80 1.48 Generac GNRC 99.42 5.01 IonisPharma IONS 57.73 0.08 Lennar A LEN 51.11 1.69 McCormickVtg MKC.V 160.00 0.01
based on market capitalization. q-Temporary exemption from Nasdaq Chubb CB 100.16 0.82 eBay EBAY 40.32 0.49 GeneralDynamics GD 126.36 1.58 iQIYI IQ 16.57 0.14 LennoxIntl LII 190.73 4.65 McCormick MKC 160.21 2.82
Underlined quotations are those stocks with requirements. ChunghwaTel CHT 36.75 ... Ecolab ECL 193.32 1.80 GeneralElec GE 6.20 -0.01 IronMountain IRM 22.54 -0.38 LeviStrauss LEVI 12.04 -0.30 McDonalds MCD 179.24 -2.63
large changes in volume compared with the t-NYSE bankruptcy Church&Dwight CHD 73.43 1.50 Ecopetrol EC 10.07 0.19 GeneralMills GIS 59.81 0.08 ItauUnibanco ITUB 4.08 0.05 LibertyBroadbandA LBRDA 123.85 0.57 McKesson MCK 133.55 -2.13
issue’s average trading volume. v-Trading halted on primary market. Ciena CIEN 47.30 0.47 EdisonInt EIX 56.39 0.06 GeneralMotors GM 21.26 0.51 LibertyBroadbandC LBRDK 126.94 0.22 MedicalProp MPW 16.76 0.22
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being Cigna CI 190.39 5.78 EdwardsLife EW 214.58 7.64 Genmab GMAB 25.01 0.54 J K L LibertyGlobal C LBTYK 20.61 -0.73 Medtronic MDT 97.90 2.64
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, t CincinnatiFin CINF 59.00 -1.15 ElancoAnimal ELAN 24.15 0.18 Genpact G 34.34 -0.07 LibertyGlobal B LBTYB 38.67 -2.43 MelcoResorts MLCO 15.10
previous closing price was $2 or higher. or securities assumed by such companies. JBG SMITH Prop JBGS 32.59 0.20 0.13
Cintas CTAS 210.74 1.10 Elastic ESTC 63.68 0.60 Gentex GNTX 24.56 0.43 LibertyGlobal A LBTYA 21.61 -0.92 MercadoLibre MELI 620.94 13.54
JD.com JD 43.12 0.87
CiscoSystems CSCO 41.46 0.11 ElbitSystems ESLT 135.15 3.26 GenuineParts GPC 75.00 -0.63 LibertyFormOne C FWONK 31.40 -0.43 Merck MRK 78.01 1.15
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and JPMorganChase JPM 92.00 -0.14
Citigroup C 43.95 -1.17 s ElectronicArts EA 119.61 2.78 GileadSciences GILD 79.14 -1.11
s JackHenry JKHY 176.20 LibertyFormOne A FWONA 29.64 -0.12 MercurySystems MRCY 87.12 2.84
changes in the closing prices from 4 p.m. the previous day. 14.17
CitizensFin CFG 21.18 -0.02 EmersonElec EMR 54.70 0.41 GSK GSK 41.99 -0.16 LibertySirius A LSXMA 32.86 -0.28 MetLife MET 34.27 0.09
JacobsEngg J 81.54 0.51
CitrixSystems CTXS 146.58 0.26 Enbridge ENB 30.61 0.50 GlbBloodTherap GBT 79.32 1.62 LibertySirius C LSXMK 32.60 -0.30 MettlerToledo MTD 709.73 18.84
Tuesday, May 5, 2020 Net Net s ClarivateAnaly CCC 24.51 JamesHardie JHX 13.72 0.24
0.57 EncompassHealth EHC 66.03 1.37 GlobalPayments GPN 166.95 4.54 EliLilly LLY 157.89 4.61 MicrochipTech MCHP 83.47 1.45
Stock Sym Close Chg Stock Sym Close Chg Clorox JazzPharma JAZZ 110.41 1.68
Net CLX 203.48 4.21 EnelAmericas ENIA 8.10 0.04 GlobeLife GL 77.54 -1.02 LincolnElectric LECO 77.30 0.84 MicronTech MU 45.41 0.95
J&J JNJ 149.50 1.23
Stock Sym Close Chg Cloudflare NET 24.51 0.84 EnelChile ENIC 3.76 -0.05 GlobusMedical GMED 47.86 2.37 LincolnNational LNC 32.47 -0.24 Microsoft MSFT 180.76 1.92
Aon AON 182.93 5.25 Boeing BA 125.40 -6.06 JohnsonControls JCI 28.65 0.12
Coca-Cola KO 45.40 0.26 EnergyTransfer ET 8.22 0.13 GoDaddy GDDY 68.62 1.81 Linde LIN 182.01 -0.65 MidAmApt MAA 112.41 2.11
Apache APA 11.78 -0.28 BookingHldgs BKNG 1393.20 -20.10 JonesLang JLL 102.41 1.36
A B C ApartmtInv AIV 36.59 0.18 BoozAllen BAH 73.73 0.96
Coca-Cola Euro CCEP 38.00 -0.77 EnphaseEnergy ENPH 44.37 0.39 GoldFields GFI 8.05 -0.08
JuniperNetworks JNPR 22.14 0.58
LiveNationEnt LYV 40.25 -1.58 MitsubishiUFJ MUFG 3.85 0.03
Cognex CGNX 54.41 1.14 Entegris ENTG 51.93 -0.43 GoldmanSachs GS 178.30 2.27 LloydsBanking LYG 1.45 -0.05 MizuhoFin MFG 2.27 0.02
ABB ABB 17.96 -0.15 ApolloGlbMgmt APO 40.90 0.95 BorgWarner BWA 26.96 -0.06 CognizantTech CTSH 57.14 KB Fin KB 26.69 0.08
0.75 Entergy ETR 96.75 1.33 Graco GGG 44.58 0.20 LockheedMartin LMT 390.30 10.14 MobileTeleSys MBT 8.56 0.04
ACADIA Pharm ACAD 47.38 0.79 Apple AAPL 297.56 4.40 s BostonBeer SAM 485.50 15.86 KKR KKR 24.60 0.33
ColgatePalm CL 69.52 0.04 EnterpriseProd EPD 17.15 0.10 Grainger GWW 279.21 7.09 Loews L 30.79 -0.97 Moderna MRNA 49.34 -1.16
AECOM ACM 35.30 0.90 ApplMaterials AMAT 48.85 1.27 BostonProps BXP 87.43 -2.24 Comcast A CMCSA 36.05 KLA KLAC 155.63 3.63
-0.17 Equifax EFX 146.62 4.91 Grifols GRFS 20.05 0.22 LogitechIntl LOGI 48.17 -0.14 MohawkInds MHK 82.43 -2.56
AES AES 13.05 0.24 Aptargroup ATR 105.56 -1.25 BostonSci BSX 36.81 0.98 KT KT 9.65 0.09
Comerica CMA 31.57 -0.58 Equinix EQIX 686.39 10.42 GpoAvalAcc AVAL 4.08 ... Lowe's LOW 110.15 2.80 s MolinaHealthcare MOH 181.08 2.77
Aflac AFL 35.92 0.17 Aptiv APTV 65.64 1.37 BrightHorizons BFAM 121.15 6.08 KSCitySouthern KSU 125.40 1.47
CommerceBcshrs CBSH 58.07 -0.35 Equinor EQNR 13.40 0.24 GuardantHealth GH 77.82 3.96 lululemon LULU 218.21 -0.48 MolsonCoorsA TAP.A 63.42 -0.11
AGNC Invt AGNC 12.78 0.37 Aramark ARMK 25.23 -0.32 Bristol-Myers BMY 61.36 1.19 Kellogg K 63.24 -0.43
SABESP SBS 7.42 0.17 Equitable EQH 16.72 -0.32 Guidewire GWRE 91.68 2.91 Lumentum LITE 82.04 3.70 MolsonCoorsB TAP 37.44 -0.75
Ansys ANSS 262.23 3.43 ArcelorMittal MT 10.60 -0.01 BritishAmTob BTI 37.80 0.45 KeurigDrPepper KDP 26.26 0.24
ConagraBrands CAG 33.39 -0.03 EquityLife ELS 61.19 0.89 HCA Healthcare HCA 106.46 2.85 Lyft LYFT 26.68 -0.35 Mondelez MDLZ 50.32 0.26
ASETech ASX 4.32 0.03 ArchCapital ACGL 23.74 -0.06 Broadcom AVGO 264.87 2.61 ConchoRscs CXO 58.12 KeyCorp KEY 10.63 -0.07
0.40 EquityResdntl EQR 62.41 -0.09 HDFC Bank HDB 40.76 0.06 LyondellBasell LYB 54.85 0.50 MongoDB MDB 167.82 7.87
ASML ASML 288.35 5.17 ArcherDaniels ADM 34.96 0.20 BroadridgeFinl BR 115.35 1.50 ConocoPhillips COP 40.92 KeysightTechs KEYS 96.02 2.53
0.56 ErieIndemnity A ERIE 180.26 3.65 HD Supply HDS 28.82 0.07 MonolithicPower MPWR 196.94 7.17
AT&T T 29.74 0.14 arGEN-X ARGX 143.80 -0.66 BrookfieldMgt BAM 33.12 -0.02 KilroyRealty KRC 59.75 1.25 M N
ConEd ED 77.54 0.48 EssentialUtil WTRG 41.97 0.75 HP HPQ 14.81 -0.09 MonsterBev MNST 60.65 1.44
AbbottLabs ABT 93.03 3.20 AristaNetworks ANET 220.44 9.44 BrookfieldInfr BIP 39.37 0.58 KimberlyClark KMB 137.13 1.40
ConstBrands A STZ 163.01 -0.74 EssexProp ESS 244.52 2.23 HSBC HSBC 24.89 0.13 Moody's MCO 250.47 5.08
AbbVie ABBV 85.37 3.51 ArrowElec ARW 61.39 0.36 Brown&Brown BRO 36.56 0.99 KimcoRealty KIM 10.38 -0.02 M&T Bank MTB 102.64 -1.76
ContinentalRscs CLR 13.66 -0.64 EsteeLauder EL 169.94 -4.44 Haemonetic HAE 106.38 -3.68
37.98 -0.11
Abiomed ABMD 186.22 5.22 AscendisPharma ASND 137.10 6.44 Brown-Forman B BF.B 63.24 1.21 Cooper KinderMorgan KMI 14.95 0.30 MGM Resorts MGM 14.27 -0.51 MorganStanley MS
COO 290.88 3.79 s Etsy ETSY 72.79 5.10 Halliburton HAL 9.86 -0.17
Morningstar MORN 146.79 -1.68
AcceleronPharma XLRN 99.22 2.22 AspenTech AZPN 102.32 2.81 Brown-Forman A BF.A 59.20 1.32 Copart KinrossGold KGC 6.99 0.14 MKS Instrum MKSI 95.17 3.48
CPRT 79.62 1.62 EuronetWorldwide EEFT 88.83 -0.85 HartfordFinl HIG 35.16 -0.23
Accenture ACN 181.62 2.09 Assurant AIZ 102.09 2.09 Bruker BRKR 37.45 1.23 Coresite KirklandLakeGold KL 43.07 0.09 MPLX MPLX 17.01 -0.45 MotorolaSol MSI 140.82 -0.34
COR 120.16 -2.09 EverestRe RE 167.71 4.89 Hasbro HAS 67.21 -1.86
s ActivisionBliz ATVI 68.53 1.83 AstraZeneca AZN 53.47 1.12 Bunge BG 37.94 0.25 Knight-Swift KNX 38.07 0.22 MSA Safety MSA 114.80 2.05 Mylan MYL 16.57 0.05
Corning GLW 20.67 0.28 Evergy EVRG 57.29 0.66 HealthcareAmer HTA 23.87 0.23
KoninklijkePhil PHG 43.15 0.38 MSCI MSCI 337.34 15.88 NICE NICE 169.27 5.76
Adobe ADBE 356.13 7.02 Athene ATH 24.29 -0.68 BurlingtonStrs BURL 178.82 0.47
Corteva CTVA 26.18 0.76 EversourceEner ES 80.99 0.19 HealthpeakProp PEAK 25.20 0.07
9.17 -0.06 MagellanMid MMP 43.10 -0.83 NRG Energy NRG 32.89 -0.06
AdvanceAuto AAP 121.19 1.08 s Atlassian TEAM 169.58 6.45 CACI Intl CACI 251.71 -2.61
CoStar CSGP 641.17 6.11 ExactSciences EXAS 77.95 0.52 Heico A HEI.A 66.85 -1.11
KoreaElcPwr KEP
AdvMicroDevices AMD 52.19 -0.37 AtmosEnergy ATO 101.77 1.02 CBRE Group CBRE 39.59 0.20 Costco KraftHeinz KHC 28.94 0.01 MagnaIntl MGA 36.25 -0.27 NVR NVR 3100.00 37.32
COST 307.92 3.43 Exelixis EXEL 25.29 -0.34 Heico HEI 82.38 -0.09
Aegon AEG 2.36 -0.09 Autodesk ADSK 180.49 2.69 CDK Global CDK 39.28 0.73 Kroger KR 32.81 0.28 ManhattanAssoc MANH 70.02 -0.74 NXP Semi NXPI 99.20 2.64
s CoupaSoftware COUP 189.73 12.52 Exelon EXC 35.87 0.42 HenrySchein HSIC 53.70 1.21
Line LN 49.83 0.53 ManulifeFin MFC 11.69 -0.18 Nasdaq NDAQ 108.83 2.70
AgilentTechs A 76.37 1.81 Autohome ATHM 75.63 -0.34 CDW CDW 109.99 1.80 HLF 33.81 -1.31
Credicorp BAP 142.57 0.77 Expedia EXPE 64.08 -2.94 Herbalife LKQ LKQ 24.98 0.37 MarathonOil MRO 5.53 -0.28 NationalGrid NGG 58.52 0.43
AgnicoEagle AEM 63.76 0.38 Autoliv ALV 57.37 1.09 CF Industries CF 27.31 1.03 HSY 131.36 0.11
CreditAcceptance CACC 305.98 0.14 ExpeditorsIntl EXPD 72.90 1.48 Hershey LPL Financial LPLA 62.17 0.43 MarathonPetrol MPC 31.14 -0.39 NatlInstruments NATI 37.21 1.45
AirProducts APD 224.30 0.95 ADP ADP 145.82 1.34 CGI GIB 64.12 0.78 HES 46.14 -0.15
CreditSuisse CS 8.25 -0.27 ExtraSpaceSt EXR 85.90 0.60 Hess L3HarrisTech LHX 189.00 2.18 Markel MKL 828.36 5.54 NatlOilwell NOV 12.31 -0.02
AkamaiTech AKAM 99.19 1.59 AutoZone AZO 1023.16 13.22 CH Robinson CHRW 71.13 1.19 9.41 0.03
CrowdStrike CRWD 71.59 -1.84 ExxonMobil XOM 44.83 -0.05 HewlettPackard HPE LabCpAm LH 162.75 5.10 s MarketAxess MKTX 483.26 26.19 NatlRetailProp NNN 30.52
Albemarle ALB 58.47 1.21 Avalara AVLR 90.36 1.73 CME Group CME 178.51 5.95 Hill-Rom HRC 105.79 -0.03 0.29
CrownCastle CCI 158.68 0.95 F5Networks FFIV 136.52 1.12 LamResearch LRCX 242.81 8.29 Marriott MAR 83.66 1.08
Alcon ALC 51.47 1.22 Avalonbay AVB 159.34 1.18 CMS Energy CMS 57.16 0.42 HLT 71.74 0.33 Natura&Co NTCO 12.31 -0.03
CrownHoldings CCK 62.53 -0.16 FMC FMC 89.50 -0.14 Hilton LamarAdv LAMR 54.34 -1.46 Marsh&McLen MMC 100.26 1.52
AlexandriaRlEst ARE 152.95 3.37 Avangrid AGR 42.71 1.39 CNA Fin CNA 29.06 -1.52 NetApp NTAP 41.20 0.55
CubeSmart CUBE 24.34 -0.06 FTI Consulting FCN 125.46 -1.54 HollyFrontier HFC 31.34 -1.19
LambWeston LW 58.97 1.27 MartinMarietta MLM 181.51 -9.14
AlexionPharm ALXN 98.25 -5.59 Avantor AVTR 16.97 0.01 CNH Indl CNHI 5.81 -0.05 HOLX 50.28 0.35 Continued on Page B10
Cummins CMI 153.83 -0.13 Facebook FB 207.07 1.81 Hologic
Alibaba BABA 195.02 3.87 AveryDennison AVY 106.49 -0.43 CNOOC CEO 108.62 1.99
CyrusOne CONE 71.15 0.35 FactSet FDS 272.72 3.69 HomeDepot HD 225.61 3.77
AlignTech ALGN 208.61 -1.53 AxaltaCoating AXTA 19.30 0.17 CRH CRH 28.88 -0.86 HondaMotor HMC 22.87 0.16
FairIsaac FICO 353.41 7.58
New Highs and Lows | WSJ.com/newhighs
Alleghany Y 501.04 1.13 BCE BCE 40.25 0.28 CSX CSX 63.77 0.03 D E F HON 134.87 -0.33
Farfetch FTCH 13.60 0.74 Honeywell
Allegion ALLE 96.74 1.98 BHP Group BHP 39.16 0.28 CVS Health CVS 61.21 1.26 Fastenal FAST 36.63 0.78 HorizonTherap HZNP 37.38 1.09
Allergan AGN 192.78 4.08 BHP Group BBL 32.43 0.13 CableOne CABO 1919.53 46.28 DISH Network DISH 24.31 0.71
FederalRealty FRT 77.24 -0.30 HormelFoods HRL 46.29 -0.17
AlliantEnergy LNT 48.02 0.53 BP BP 23.87 0.62 CabotOil COG 20.39 0.13 DTE Energy DTE 102.41 1.58 DHI 47.42 1.29
FedEx FDX 117.67 1.82 DR Horton The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American
Allstate ALL 102.15 1.81 B2Gold BTG 5.43 0.18 CadenceDesign CDNS 79.67 2.03 Danaher DHR 164.45 3.33
Ferrari RACE 156.04 -2.49 HostHotels HST 10.97 -0.14
and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest
AllyFinancial ALLY 14.94 -0.25 BWX Tech BWXT 54.15 3.09 CaesarsEnt CZR 9.40 -0.09 Darden DRI 68.99 -1.63 HowmetAerospace HWM 12.21 0.26
FiatChrysler FCAU 8.23 -0.07 session. % CHG-Daily percentage change from the previous trading session.
AlnylamPharm ALNY 141.23 4.60 Baidu BIDU 95.77 1.01 CamdenProperty CPT 86.01 0.15 Datadog DDOG 46.60 0.77 HTHT 33.80 1.71
FidNatlFin FNF 25.05 -0.53 Huazhu
Alphabet A GOOGL 1349.02 26.12 BakerHughes BKR 13.60 -0.37 CampbellSoup CPB 50.88 0.10 DaVita DVA 78.87 3.75 HUBB 121.58 1.58
FidNatlInfo FIS 131.95 3.37 Hubbell Tuesday, May 5, 2020
Alphabet C GOOG 1351.11 24.31 Ball BLL 66.26 0.11 CIBC CM 58.32 0.38 Deere DE 135.15 2.21 HubSpot HUBS 171.42 11.48
FifthThirdBncp FITB 17.37 -0.27
Alteryx AYX 116.06 5.30 BancoBilbaoViz BBVA 2.98 -0.06 CanNtlRlwy CNI 80.25 0.66 DellTechC DELL 40.19 -0.36 HUM 384.06 6.22 52-Wk % 52-Wk % 52-Wk %
58.com WUBA 51.56 0.56 Humana
AlticeUSA ATUS 23.53 -0.70 BancoBradesco BBDO 3.04 ... CanNaturalRes CNQ 15.78 -0.08 DeltaAir DAL 21.71 -0.86 JBHT 101.04 0.66 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
FirstAmerFin FAF 45.57 0.47 JBHunt
Altria MO 36.80 -1.21 BancodeChile BCH 17.76 0.35 CanPacRlwy CP 217.15 -1.00 DentsplySirona XRAY 40.67 1.07
FirstIndRlty FR 35.93 0.16 HuntingtonBcshs HBAN 8.28 -0.15 GenMarkDiagn GNMK 13.49 -3.1 USAutoPartsNtwk PRTS 3.75 3.7
6.97 -0.08
Amazon.com AMZN 2317.80 1.81 BancSanBrasil BSBR 4.55 -0.11 Canon CAJ 20.33 0.29 DeutscheBank DB
FirstRepBank FRC 99.76 0.76 HuntingIngalls HII 182.67 2.69 Highs HEBT 10.60 6.7

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HebronTech Vermillion VRML 2.24 9.0
Ambev ABEV 2.15 ... BcoSantChile BSAC 16.91 0.38 CanopyGrowth CGC 15.76 0.02 DevonEnergy DVN 11.18 -0.24 51.16 -0.67 Imara IMRA 24.00 31.6 W 181.39 23.7
FirstSolar FSLR 43.10 -0.30 HyattHotels H AXTI 5.91 -7.8
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AMCR 8.58 -0.11 BancoSantander SAN 2.09 -0.03 CapitalOne COF 60.96 -0.63 s DexCom DXCM 364.28 11.77 AXT Immunomedics IMMU 32.83 2.3 WMK 54.61 9.2

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Amcor IAA 37.69 0.73 WeisMarkets
FirstEnergy FE 41.68 0.49 IAA ActivisionBliz ATVI 69.63 2.7 4.55 6.9
Amdocs DOX 62.66 -0.30 BankofAmerica BAC 22.66 -0.27 CardinalHealth CAH 47.45 0.43 Diageo DEO 134.78 -2.62 ImmunovantWt IMVTW WheatonPrecMet WPM 42.79 2.7
Fiserv FISV 103.83 2.29 IAC/InterActive IAC 229.11 5.26 AdverumBiotech ADVM 19.23 38.3 Immunovant IMVT 21.06 2.8 Wingstop WING 123.90 0.6
Amedisys AMED 177.64 3.15 BankofMontreal BMO 48.19 -0.38 Carlisle CSL 114.58 0.93 DiamondbkEner FANG 40.33 -2.19 8.84 -0.12
FiveBelow FIVE 89.33 1.26 ICICI Bank IBN AkebiaTherap AKBA 12.25 38.0 iRhythmTechs IRTC 110.84 -0.1 YamanaGold AUY 5.00 0.8
Amerco UHAL 279.14 2.97 BankNY Mellon BK 35.14 -0.40 Carlyle CG 23.19 1.21 DigitalRealty DLR 148.00 2.23
Five9 FIVN 96.02 0.14 ICU Medical ICUI 217.80 4.46 Atlassian TEAM 173.87 4.0 JackHenry JKHY 177.57 8.7 Zynex ZYXI 21.80 0.9
Ameren AEE 72.15 0.71 BkNovaScotia BNS 37.82 -0.26 CarMax KMX 72.97 1.29 DiscoverFinSvcs DFS 41.10 -0.27 IDA 90.91 1.47 AudioCodes AUDC 33.32 4.4
FleetCorTech FLT 236.07 4.32 IDACORP Luminex LMNX 40.21 6.5
AmericaMovil AMX 12.29 0.08 Barclays BCS 5.03 0.03 Carnival CCL 13.09 -1.25 DiscoveryB DISCB 47.02 -3.67
FLEX 8.91 0.03 IdexxLab IDXX 282.08 8.32 Bandwidth BAND 99.48 4.4 MarketAxess MKTX 488.22 5.7 Lows
AEP AEP 83.31 0.26 BauschHealth BHC 16.78 0.10 Carvana
AmerExpress AXP 86.74 0.36 BaxterIntl
AmericanFin AFG 61.12 -0.54 BectonDicknsn BDX 261.70 6.43 Catalent
AmHomes4Rent AMH 24.65 1.04 BeiGene
AIG AIG 25.06 0.99 Berkley
BGNE 143.50 6.00 Caterpillar
WRB 51.75 0.37 Celanese
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AmCampus ACC 31.92 -0.45 BarrickGold GOLD 28.19 0.81 CarrierGlobal CARR 15.97 -0.43 DiscoveryA DISCA 21.25
CVNA 86.00 5.99 DiscoveryC DISCK 19.36
BAX 88.74 1.47 CaseysGenStores CASY 153.64 0.50 Disney
CTLT 67.89 1.33 s DocuSign
CAT 108.91 1.19 DolbyLab
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IPGP 144.10
IQV 135.49
FTNT 108.56 2.87 IcahnEnterprises IEP 50.66
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FoxA FOXA 24.10 -0.90 Illumina ILMN 310.25 2.05
Cytokinetics CYTK 17.05 8.2 PapaJohn's PZZA 76.21 4.7 GreatWesternBncp GWB 14.91 -5.4
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s Franco-Nevada FNV 145.83 2.80 dMY Tech RegenPharm REGN 581.00 6.0
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FranklinRscs BEN 17.96 -0.37
Amgen AMGN 236.36 5.45 s Bio-Techne TECH 246.06 9.43 CharlesRiverLabs CRL 141.04 2.69 Dow DOW 33.37 0.31 Infosys INFY 8.91 -0.02 DraftKingsWt DKNGW 10.00 5.8 ScottsMiracleGro SMG 131.53 3.0 LexinFintech LX 7.09 -3.5
FreeportMcM FCX 8.80 0.10
Amphenol APH 86.25 2.33 s Bio-RadLab A BIO 443.00 8.96 CharterComms CHTR 513.44 -2.29 DrReddy'sLab RDY 50.62 -1.09 IngersollRand IR 27.59 0.22 ElectronicArts EA 120.19 2.4 Sea SE 59.44 4.9 LyraTherap LYRA 16.50 -6.4
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FreseniusMed FMS 38.70 0.59 Envela ELA 4.32 -2.7 SeattleGenetics SGEN 168.10 6.2 MagalSec MAGS 2.46 -9.1
AnalogDevices ADI 105.94 2.54 Biogen BIIB 304.44 7.92 CheckPoint CHKP 105.15 1.53 Dropbox DBX 20.04 0.16 Ingredion INGR 82.25 3.44
PLAN 39.60 0.13 BioMarinPharm BMRN 93.19 2.83 s Chegg CHGG 57.92 14.13 DukeEnergy DUK 83.14 0.51 Etsy ETSY 76.50 7.5 ServiceNow NOW 376.18 4.5 OptimumBank OPHC 1.68 1.0
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AngloGoldAsh AU 26.07 0.25 BioNTech BNTX 50.00 4.22 Chemed CHE 425.00 9.00 DukeRealty DRE 32.92 0.11
G H I Insulet
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PODD 201.26
INTC 58.75
8.37
0.76
EverQuote EVER 53.87 21.5 Shopify SHOP 704.69 4.1 Qutoutiao QTT 2.20 -5.1
FirstCitizensPfdA FCNCP 25.92 0.3 SocialCapHedIII IPOB.U 10.26 0.2 RothCHAcquisitionI ROCHU 9.89 -0.6
AB InBev BUD 41.49 -0.90 BlackKnight BKI 72.51 2.91 CheniereEnergy LNG 42.13 -1.15 Dunkin' DNKN 62.02 -0.39 GCI LibertyA GLIBA 62.85 0.15 ICE ICE 92.97 3.30 FlyingEagleAcqn FEAC.U 10.50 1.6 SwitchbackEner SBE.U 11.28 13.6 SeacorMarine SMHI 2.54 -8.1
AnnalyCap NLY 6.28 0.16 BlackRock BLK 485.49 3.98 CheniereEnerPtrs CQP 34.56 0.86 DuPont DD 44.69 -0.03 GDS Holdings GDS 58.60 3.52 InterContinentl IHG 43.54 0.84 Franco-Nevada FNV 146.81 2.0 TG Therap TGTX 16.98 33.9 SouthwestAir LUV 26.18 -4.1
Anthem ANTM 275.07 4.07 Blackstone BX 50.66 1.21 Chevron CVX 92.89 1.45 Dynatrace DT 29.30 1.04 GFLEnvironmental GFL 17.05 -0.20 IBM IBM 122.58 0.90 GAN GAN 14.14 55.9 Trex TREX 114.48 9.3 Wealthbridge HHHH 8.90 -6.3
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iShCoreUSAggBd AGG 116.88 –0.08 4.0
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iShSelectDividend DVY 77.94 –0.01 –26.2 (800) 274-5696 (888) 873-3424
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iShJPMUSDEmgBd EMB 100.78 1.09 –12.0 M.Y. Safra Bank, FSB $1,000 0.30 Goldman Sachs Bank USA $500 1.60
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iShMBSETF MBB 110.89 –0.05 2.6 (212) 652-7200 (855) 730-7283

 
iShMSCI ACWI ACWI 67.60 0.70 –14.7
iShMSCI EAFE EFA 55.42 0.18 –20.2 Presidential Bank, FSB $1,000 0.10 Live Oak Bank $2,500 1.60
iShMSCI EAFE SC SCZ 48.28 0.12 –22.5 (800) 383-6266 (866) 656-0286
iShMSCIEmgMarkets EEM 35.90 0.56 –20.0
iShMSCIJapan EWJ 51.09 0.97 –13.8 Two-month CD Two-year CD

  

  
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VangdFTSEAWxUS VEU 42.97 0.44 –20.1
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VangdGrowth VUG 179.54 1.23 –1.4 (800) 383-6266 (888) 873-3424
VangdHlthCr VHT 189.09 2.11 –1.4 Applied Bank 0.05 Goldman Sachs Bank USA 1.60
VangdHiDiv VYM 76.26 0.53 –18.6 (800) 616-4605 (855) 730-7283
VangdIntermBd BIV 91.11 0.02 4.5
VangdIntrCorpBd VCIT 90.89 0.01 –0.5 Three-month CD Five-year CD
VangdLC VV 131.93 0.89 –10.8
VangdMC VO 148.16 0.96 –16.8
First Internet Bank of Indiana 0.85 Comenity Direct 1.80
VangdMBS VMBS 54.61 0.05 2.7 (888) 873-3424 (833) 755-4354
VangdRealEst VNQ 73.54 0.49 –20.7 VirtualBank 0.65 First Internet Bank of Indiana 1.77
VangdS&P500ETF VOO 263.04 0.92 –11.1 (877) 998-2265 (888) 873-3424
VangdST Bond BSV 82.55 –0.02 2.4
VangdSTCpBd VCSH 80.93 0.04 –0.1
Popular Direct 0.55 CIT Bank 1.75
VangdShortTermTrea VGSH 62.20 ... 2.3 (800) 274-5696 (855) 462-2652
VangdSC VB 129.21 0.87 –22.0
VangdTotalBd BND 87.31 –0.09 4.1
Notes: Accounts are federally insured up to $250,000 per person. Yields are based on method of
VangdTotIntlBd BNDX 57.24 0.03 1.2 compounding and rate stated for the lowest required opening deposit to earn interest. CD  
  
  
 
    
VangdTotIntlStk
VangdTotalStk
VXUS
VTI
44.29
143.67
0.36
0.93
–20.5
–12.2
figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of
which may be checks. Rates are subject to change.  


VangdTotlWrld VT 68.19 0.71 –15.8 Source: Bankrate.com, a publication of Bankrate, Inc., Palm Beach Gardens, FL 33410 0 1 2 --(    3 2.& 45 ' -! 67
88
VangdValue VTV 96.11 0.57 –19.8 Internet: www.bankrate.com
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Wednesday, May 6, 2020 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest

Metal & Petroleum Futures Wheat (KC)-5,000 bu.; cents per bu. Canadian Dollar (CME)-CAD 100,000; $ per CAD Sept 23600 23962 23490 23673 183 767
May 479.00 484.00 476.00 483.00 –.75 141 May .7083 .7138 .7096 .7131 .0027 1,025 S&P 500 Index (CME)-$250 x index
Contract Open 2831.70 2865.70 2825.60 2858.30 33.00 101,372
July 484.50 487.25 475.50 484.00 –3.00 130,227 June .7098 .7139 .7095 .7131 .0027 113,511 June
Open High hi lo Low Settle Chg interest
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £ Mini S&P 500 (CME)-$50 x index
Copper-High (CMX)-25,000 lbs.; $ per lb. May 119.575 119.700 116.100 119.600 .525 4,857 May 1.2474 1.2483 1.2422 1.2454 .0013 1,505 June 2827.00 2889.75 2824.50 2858.30 33.00 3,193,697
May 2.3370 2.3415 2.3180 2.3410 0.0170 2,387 June 1.2443 1.2486 1.2422 1.2455 .0013 156,750 Dec 2817.25 2872.75 2811.25 2843.40 32.80 35,898
Aug 129.575 129.700 125.300 128.250 –.725 15,831
July 2.3210 2.3400 2.3070 2.3325 0.0200 89,690 Swiss Franc (CME)-CHF 125,000; $ per CHF Mini S&P Midcap 400 (CME)-$100 x index
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Gold (CMX)-100 troy oz.; $ per troy oz. June 88.775 88.900 85.950 86.475 –1.600 109,739 June 1.0366 1.0378 1.0283 1.0300 –.0069 36,059 June 1584.80 1635.80 1583.20 1603.00 15.40 72,287
May 1701.50 1705.60 1697.10 1704.40 –2.50 5,253 Aug 93.750 93.750 91.200 92.450 –.600 69,663 Sept 1.0357 1.0401 1.0313 1.0328 –.0069 83 Sept 1434.70 1628.20 1591.50 1610.30 15.30 1
June 1711.00 1715.30 1695.40 1710.60 –2.70 322,572 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD Mini Nasdaq 100 (CME)-$20 x index
Aug 1717.50 1722.20 1703.60 1718.90 –1.40 81,093 May 66.500 67.400 65.000 66.150 –1.575 2,633 May .6444 .6475 .6418 .6458 .0033 392 June 8806.25 9020.00 8798.50 8924.25 128.75 182,443
Oct 1720.90 1727.00 1708.80 1723.80 0.30 13,563 June 65.000 66.275 63.750 64.275 –1.225 62,958 June .6426 .6477 .6418 .6459 .0033 126,696 Sept 8796.75 9001.00 8784.00 8908.75 129.25 1,754
Dec 1719.00 1731.00 1710.50 1728.00 2.10 51,238 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Mexican Peso (CME)-MXN 500,000; $ per MXN Mini Russell 2000 (CME)-$50 x index
Feb'21 1730.10 1731.50 1721.90 1731.60 3.20 9,454 May 334.70 339.70 334.70 336.20 6.20 233 May .04144 .04193 .04130 .04178 .00060 1,012 June 1256.50 1303.70 1255.80 1268.10 12.20 518,647
Palladium (NYM) - 50 troy oz.; $ per troy oz. July 340.70 348.60 340.70 345.20 6.60 1,560 June .04119 .04176 .04110 .04159 .00060 100,544 Sept 1268.00 1301.00 1254.10 1266.10 12.00 4,845
May … ... ... 1752.20 –78.80 ... Milk (CME)-200,000 lbs., cents per lb. Euro (CME)-€125,000; $ per € Mini Russell 1000 (CME)-$50 x index
June 1830.90 1837.10 1732.00 1756.50 –78.80 5,491 May 11.59 11.69 11.49 11.54 .04 4,520 May 1.0915 1.0928 1.0829 1.0854 –.0055 1,734 June 1575.10 1589.90 1573.40 1573.60 14.00 7,797
Sept 1810.00 1810.00 1741.70 1754.20 –78.70 1,871 June 13.05 13.69 13.05 13.63 .69 5,006 June 1.0910 1.0935 1.0834 1.0860 –.0055 532,559 U.S. Dollar Index (ICE-US)-$1,000 x index
Dec 1780.00 1780.00 1731.00 1743.50 –78.30 436 Cocoa (ICE-US)-10 metric tons; $ per ton. June 99.58 100.07 99.38 99.76 .20 31,042
Platinum (NYM)-50 troy oz.; $ per troy oz. May 2,396 2,396 2,396 2,396 –9 3 Index Futures Sept 99.52 100.07 99.45 99.79 .21 709
May ... ... ... 780.10 5.90 8 July 2,387 2,421 2,363 2,378 –9 79,952
Mini DJ Industrial Average (CBT)-$5 x index
July 782.20 788.50 769.30 784.70 6.20 41,962 Coffee (ICE-US)-37,500 lbs.; cents per lb. June 23587 24057 23577 23761 190 63,898 Source: FactSet
Silver (CMX)-5,000 troy oz.; $ per troy oz. May 108.30 108.30 108.30 108.85 3.30 500
May 14.780 15.110 14.710 15.057 0.335 3,685 July 107.30 110.95 106.75 110.65 3.45 81,133
July 14.845 15.200 14.760 15.110 0.314 97,858 Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
June 21.24 25.49 21.13 24.56 4.17 258,331
July
Oct
10.42
10.66
10.86
11.09
10.37
10.65
10.78
11.02
.38 354,803
.37 216,365
Bonds | WSJ.com/bonds
July 23.56 27.40 23.38 26.49 3.71 379,900 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Aug 25.25 28.97 25.13 28.09 3.46 193,000 July 26.00 26.00 26.00 26.00 .20 1,687 Tracking Bond Benchmarks
Sept 27.00 30.08 26.50 29.26 3.18 197,789 Sept 26.00 26.00 26.00 26.00 .09 2,624
Oct 27.91 30.77 27.67 30.14 2.94 120,894 Cotton (ICE-US)-50,000 lbs.; cents per lb. Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Dec 29.69 32.30 29.30 31.65 2.57 299,298 May 54.06 54.06 52.15 53.91 –1.09 3 highs and lows for different types of bonds
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. July 54.44 55.33 53.46 53.58 –.75 97,859 Total Total
June .8204 .9066 .8204 .8960 .0929 80,255 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. return YTD total Yield (%) return YTD total Yield (%)
July .8789 .9479 .8683 .9351 .0819 50,870 May 118.00 118.00 118.00 118.45 4.05 111 close return (%) Index Latest Low High close return (%) Index Latest Low High
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. July 116.50 117.60 115.75 117.40 .60 7,316
Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
June .8300 .9195 .8300 .9013 .0798 93,665
July .8496 .9315 .8496 .9147 .0741 58,266 Interest Rate Futures 2230.20 4.7 U.S. Aggregate 1.360 1.310 2.970 2222.33 3.5 Mortgage-Backed 1.070 0.930 3.150
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100%
June 1.991 2.162 1.981 2.134 .141 232,463 U.S. Corporate Indexes Bloomberg Barclays 2177.53 3.6 Ginnie Mae (GNMA) 0.690 0.490 3.090
June 224-120 224-190 221-270 222-110 –1-19.0 1,045,775
July 2.231 2.364 s 2.227 2.312 .082 177,942 1310.09 3.4 Fannie mae (FNMA) 1.210 1.110 3.170
Sept 221-030 222-280 220-110 220-250 –1-18.0 12 3168.12 0.9 U.S. Corporate 2.730 2.220 4.580
Sept 2.388 2.499 s 2.384 2.430 .040 120,705 Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Oct 2.473 2.588 s 2.452 2.498 .019 100,913 June 180-240 180-270 179-210 180-090 –14.0 983,243 2910.11 0.7 Intermediate 2.280 1.760 4.400 2012.54 3.4 Freddie Mac (FHLMC) 1.190 1.080 3.180
Jan'21 3.140 3.208 s 3.067 3.125 –.021 82,215 Sept 178-300 179-080 178-010 178-250 –11.0 358
April 2.625 2.655 s 2.579 2.605 –.022 70,010 4600.37 1.2 Long term 3.500 2.950 4.930 564.19 -0.3 Muni Master 1.791 0.959 3.441
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
June 138-295 138-315 138-200 138-275 –3.5 3,291,269 662.96 3.5 Double-A-rated 1.900 1.670 3.360 396.99 -0.5 7-12 year 1.748 0.924 3.447
Agriculture Futures Sept 138-210 138-235 138-125 138-200 –3.5 76,234
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 815.23 -1.7 Triple-B-rated 3.350 2.570 5.350 450.13 -0.6 12-22 year 2.190 1.224 3.690
Corn (CBT)-5,000 bu.; cents per bu.
May 310.50 314.75 310.50 313.00 2.25 2,839 June 125-122 125-140 125-082 125-122 –1.5 3,537,323 High Yield Bonds ICE BofA 427.72 -3.0 22-plus year 3.111 1.765 4.123
July 315.25 318.50 314.00 317.00 1.50 623,707 Sept 125-077 125-092 125-035 125-075 –1.7 57,063
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 421.79 -9.7 High Yield Constrained 8.046 5.151 11.400 Global Government J.P. Morgan†
Oats (CBT)-5,000 bu.; cents per bu.
315.00 315.00 315.00 315.00 … 2 June 110-066 110-070 110-059 110-069 … 2,369,686 610.79 4.8 Global Government 0.590 0.390 1.390
May 345.12 -21.2 Triple-C-rated 17.944 10.735 19.071
July 293.50 297.50 290.75 296.25 3.50 2,204 Sept 110-105 110-110 110-097 110-109 –.1 39,533
Soybeans (CBT)-5,000 bu.; cents per bu. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 2867.47 -10.2 High Yield 100 6.689 4.516 10.740 862.05 7.3 Canada 0.800 0.590 1.850
May 833.25 838.00 832.50 838.25 4.25 993 May 99.9550 99.9550 99.9525 99.9525 .0000 239,560
July 99.9550 99.9600 s 99.9550 99.9550 .0000 214,905 380.61 -9.7 Global High Yield Constrained 8.086 4.893 11.310 401.13 0.2 EMU§ 0.522 0.109 0.956
July 837.50 841.00 833.75 839.50 3.00 318,668
Soybean Meal (CBT)-100 tons; $ per ton. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 295.31 -10.1 Europe High Yield Constrained 5.884 2.464 8.183 770.39 1.5 France 0.180 -0.160 0.580
May 283.50 285.00 282.00 284.80 1.50 1,181 June 105-265 105-310 105-225 105-280 –7.5 69,481
Eurodollar (CME)-$1,000,000; pts of 100% U.S Agency Bloomberg Barclays 552.12 3.0 Germany -0.450 -0.740 0.090

.
July 287.70 289.70 286.50 289.40 1.00 176,705
Soybean Oil (CBT)-60,000 lbs.; cents per lb. May 99.6125 99.6350 s 99.6125 99.6275 .0100 425,711
1851.66 4.6 U.S Agency 0.680 0.660 2.510 297.69 -0.1 Japan 0.200 -0.070 0.260

ly
May 25.95 26.22 25.83 25.97 .17 778 June 99.6350 99.6500 99.6300 99.6350 –.0100 1,675,809
July 26.18 26.60 26.09 26.31 .16 177,749 Sept 99.7000 99.7050 99.6900 99.6950 –.0100 1,527,524 1613.95 3.3 10-20 years 0.530 0.510 2.400 610.76 2.5 Netherlands -0.250 -0.540 0.210
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Dec 99.6750 99.6800 99.6650 99.6700 –.0100 1,143,983
4240.19 11.1 20-plus years 1.520 1.170 2.980 1113.77 10.8 U.K. 0.410 0.390 1.490
May 1610.00 1620.00 1610.00 1614.50 –5.50 210
1471.00 t 1460.00
1478.00 1473.50 1.50 7,367 Currency Futures 2732.14 0.1 Yankee 2.180 1.920 3.500 801.14 -9.2 Emerging Markets ** 6.214 4.523 7.480
July
Wheat (CBT)-5,000 bu.; cents per bu.
May
July
519.00
518.00
527.00
522.75
519.00
512.25
525.50
520.75
1.25 190
1.25 193,478
May
June
on
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.9385
.9374
.9398
.9403
.9358
.9360
.9392
.9396
.0020 475
.0021 145,649
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan

Global Government Bonds: Mapping Yields

us ,

Borrowing Benchmarks | WSJ.com/bonds

l

Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
e
al a

selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Money Rates May 5, 2020 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
ci on

Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a 0.125 U.S. 2 0.176 t l 0.188 0.225 2.339
guide to general levels but don’t always represent actual transactions. 1.500 10 0.660 s l 0.641 0.596 2.523
Week —52-WEEK— Week —52-WEEK— 2.000 Australia 2 0.227 s l 0.226 0.214 1.324 5.1 3.8 -101.5
Inflation Latest ago High Low Latest ago High Low 2.500 10 0.871 s l 0.839 0.765 1.801 21.2 19.8 -72.2
March index Chg From (%)
High 0.1500 0.1500 3.0000 0.1400 Commercial paper (AA financial) 0.000 France 2 -0.577 s l -0.587 -0.493 -0.537 -77.5 -287.7
level Feb. '20March '19 -75.4
er s

Low 0.0300 0.0300 2.3800 0.0200

Bid 0.0400 0.0400 2.4000 0.0100
90 days n.a. n.a. 2.58 0.58 0.000 10 -0.063 t l -0.057 0.078 0.370 -72.3 -69.7 -215.3
U.S. consumer price index
–0.22 1.5
Offer 0.0800 0.0700 2.5000 0.0500 0.000 Germany 2 -0.801 t l -0.761 -0.671 -0.582 -97.7 -94.9 -292.1
All items 258.115 Libor
m er

Core 267.312 0.02 2.1 Treasury bill auction 0.000 10 -0.577 t l -0.562 -0.439 0.028 -123.6 -120.2 -249.4
One month 0.24725 0.40363 2.46275 0.24725
4 weeks 0.095 0.090 2.390 0.000
International rates Three month 0.47400 0.76013 2.56200 0.47400 1.000 Italy 2 0.567 s l 0.510 0.436 0.438 39.1 32.2 -190.1
13 weeks 0.110 0.120 2.380 0.000
26 weeks 0.130 0.150 2.380 0.080 Six month 0.70013 0.86188 2.59438 0.70013 1.350 10 1.864 s l 1.753 1.531 2.553 120.4 111.2 3.0
Week 52-Week One year 0.83125 0.90975 2.72138 0.74350
Latest ago High Low 0.100 Japan 2 -0.158 -0.158 -0.132 -0.155 -34.6 -249.4
m rp

l -33.5
Secondary market
Prime rates Euro Libor 0.100 10 -0.023 l -0.023 -0.009 -0.047 -68.3 -66.4 -257.0
Fannie Mae
U.S. 3.25 3.25 5.50 3.25 30-year mortgage yields One month -0.426 -0.422 -0.360 -0.621 0.400 Spain 2 -0.161 s l -0.196 -0.131 -0.300 -33.7 -38.4 -263.9
Canada 2.45 2.45 3.95 2.45 Three month -0.205 -0.165 -0.142 -0.539
Japan 1.475 1.475 1.475 1.475 30 days 2.338 2.301 3.713 2.256 0.500 10 0.782 s l 0.767 0.727 0.979 12.3 12.7 -154.4
60 days 2.390 2.355 3.736 2.293 Six month -0.083 -0.088 -0.052 -0.491
One year -0.053 -0.040 0.008 -0.441 0.500 U.K. 2 0.010 t l 0.033 0.090 0.806 -16.7 -15.6 -153.3
Policy Rates
Other short-term rates
co Fo

Euro zone 0.00 0.00 0.00 0.00 4.750 10 0.207 t l 0.232 0.313 1.221 -45.3 -40.9 -130.1
Value 52-Week
Switzerland 0.50 0.50 0.50 0.50 Week 52-Week Latest Traded High Low Source: Tullett Prebon
Britain 0.10 0.10 0.75 0.10 Latest ago high low
Australia 0.25 0.25 1.50 0.25 DTCC GCF Repo Index
Call money Treasury 0.104 29.600 6.007 0.002
Corporate Debt
Overnight repurchase Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
2.00 2.00 4.25 2.00 MBS 0.121 57.700 6.699 0.011
U.S. 0.10 0.08 3.40 -0.07 that same company’s share price.
U.S. government rates Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
Investment-grade spreads that tightened the most…
Discount and is effective March 16, 2020. Other prime rates aren’t directly comparable; lending practices vary Spread*, in basis points Stock Performance
0.25 0.25 3.00 0.25 widely by location; Discount rate is effective March 16, 2020. DTCC GCF Repo Index is Depository Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Marathon Oil MRO 4.400 July 15, ’27 737 –55 849 5.53 –4.82
Federal funds
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet;
Effective rate 0.0600 0.0600 2.4300 0.0600 Tullett Prebon Information, Ltd. Sabine Pass Liquefaction SPLLLC 5.750 May 15, ’24 360 –54 405 ... ...
Cimarex Energy XEC 3.900 May 15, ’27 504 –41 n.a. 23.26 –2.80
n-

TransCanada PipeLines TRPCN 7.625 Jan. 15, ’39 304 –40 n.a. ... ...
ADVERTISEMENT
Schlumberger Investment … 3.650 Dec. 1, ’23 268 –34 286 … …

Business Real Estate & Auctions …And spreads that widened the most
no

To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds Synchrony Financial SYF 3.950 Dec. 1, ’27 454 46 405 18.00 –2.33
JPMorgan Chase JPM 2.776 April 25, ’23 171 44 139 92.00 –0.15
AUCTIONS MISSOURI OHIO Broadcom AVGO 3.875 Jan. 15, ’27 296 35 263 264.87 1.00
Walt Disney DIS 2.000 Sept. 1, ’29 175 34 139 101.06 –2.05
Simon Property SPG 3.500 Sept. 1, ’25 337 30 290 60.55 –3.90
     
 


ViacomCBS VIAC 2.900 June 1, ’23 209 29 219 15.26 –5.19
 
     Kohl's KSS 4.250 July 17, ’25 726 24 678 17.08 –2.79


 

American International AIG 4.750 April 1, ’48 285 17 255 25.06 4.11
    
  


 

         
 High-yield issues with the biggest price increases…
   
     
 
  Bond Price as % of face value Stock Performance

 
    
   
  
    
 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
 
      
   
QEP Resources QEP 5.625 March 1, ’26 46.125 10.13 25.450 0.86 –4.27
  
   
      Western Midstream Operating … 3.950 June 1, ’25 99.621 9.37 84.000 … …
   
 

 
     Occidental Petroleum OXY 4.625 June 15, ’45 69.500 8.50 59.750 15.32 –1.29
 
 
    

      
 

 ! " # $

     
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Parsley Energy 5.625 Oct. 15, ’27 94.750 5.25 84.262 ... ...
 
 PARSLY

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 Hertz … 6.000 Jan. 15, ’28 14.500 4.63 23.000 … …

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  )  #    
   !  Antero Midstream Partners … 5.750 March 1, ’27 79.500 4.00 68.000 … …
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+ ,    
Range Resources RRC 4.875 May 15, ’25 83.000 4.00 73.750 5.91 –4.68
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Ascent Resources Utica Holdings ASCRES 10.000 April 1, ’22 88.530 3.53 74.250 ... ...
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     . $(         

/  -#   0&120312'  -#         
…And with the biggest price decreases
   4(( 5
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L Brands LB 5.250 Feb. 1, ’28 71.010 –3.02 67.350 11.62 –3.49
6-


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   7$ 8(9 Venator Finance SARL … 5.750 July 15, ’25 63.000 –3.00 71.000 … …
Hertz … 7.625 June 1, ’22 35.010 –2.99 42.000 … …
United Airlines Holdings UAL 4.250 Oct. 1, ’22 73.875 –2.50 82.500 24.12 –4.51
#, -  .
 , $ & /
(&!
#&  0,,1
  American Airlines AAL 3.750 March 1, ’25 40.000 –2.25 47.250 9.51 –3.16

 

SOUTH CAROLINA Bombardier BBDBCN 7.875 April 15, ’27 60.875 –2.16 67.250 ... ...

 

  

 
    !" #   !"  $# %%$ Tupperware Brands TUP 4.750 June 1, ’21 32.040 –1.71 42.500 2.90 –2.03
%& '     () * !" 
J. C. Penney JCP 5.875 July 1, ’23 40.970 –1.53 46.750 0.21 –10.91

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

 

 

  COMMERCIAL
 
    PROPERTIES Dividend Changes


  
    EVERY WEDNESDAY
      Dividend announcements from May 5.
 

         Amount Payable / Amount Payable /
(800) 366-3975 Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
 
 
 
 sales.realestate@wsj.com

       Increased Foreign
For more information visit:
  
      PetMed Express PETS 2.8 .28 /.27 Q May22 /May15 Banco Bradesco Ord ADR BBDO 5.0 .00314 Jun08 /May11
wsj.com/classifieds
     Banco Bradesco Pref ADR BBD 6.1 .00346 Jun08 /May11
 
        Reduced China Petroleum ADR SNP 10.6 2.69 SA Jun26 /Jun02
 
  !" © 2020 Dow Jones & Company, Inc. PacWest Bancorp PACW 5.5 .25 /.60 Q May29 /May20 Equinor ADR EQNR 6.3 .27 Q May29 /May15
 
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THE WALL STREET JOURNAL. Wednesday, May 6, 2020 | B9

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23883.09 s 133.33, or 0.56% Trailing P/E ratio 19.59 18.04 2868.44 s 25.70, or 0.90% Trailing P/E ratio * 24.18 21.82 8809.12 s 98.41, or 1.13% Trailing P/E ratio *† 26.75 24.25
High, low, open and close for each P/E estimate * 21.53 16.78 High, low, open and close for each P/E estimate * 21.75 17.72 High, low, open and close for each P/E estimate *† 25.65 21.65
trading day of the past three months. Dividend yield 2.77 2.21 trading day of the past three months. Dividend yield * 2.14 1.89 trading day of the past three months. Dividend yield *† 1.01 0.99
All-time high 29551.42, 02/12/20 All-time high 3386.15, 02/19/20 All-time high: 9817.18, 02/19/20

Current divisor 0.14579812049809

30000 3500 10500

27500 3250 9750

65-day moving average
65-day moving average 65-day moving average

25000 3000 9000

Session high
DOWN UP 22500 2750 8250
t

Session open Close

Close Open
t

20000 2500 7500

Session low
17500 2250 6750

Bars measure the point change from session's open

15000 2000 6000
Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; † Based on Nasdaq-100 Index

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 927,016,993 19,307,355
Industrial Average 24169.72 23868.91 23883.09 133.33 0.56 29551.42 18591.93 -8.0 -16.3 4.4 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 429,978,220 10,804,201
Transportation Avg 8188.48 8027.44 8047.30 66.34 0.83 11304.97 6703.63 -24.6 -26.2 -4.3 Most-active issues in late trading Decl. volume* 484,902,074 8,126,143
Utility Average 783.13 768.59 773.21 5.84 0.76 960.89 610.89 -0.2 -12.1 3.2 Volume After Hours Issues traded 3,010 268
Company Symbol (000) Last Net chg % chg High Low
Total Stock Market 29261.53 28884.01 28937.60 267.29 0.93 34631.28 22462.76 -2.7 -12.4 5.2 Advances 1,644 145
Finl Select Sector SPDR XLF 8,112.3 21.99 0.20 0.92 21.99 21.75
Barron's 400 608.37 597.41 599.00 6.02 1.02 746.64 455.11 -14.8 -18.2 -2.2 Declines 1,306 112
Antero Midstream AM 5,070.0 4.59 0.04 0.88 4.59 4.54
Unchanged 60 11
Nasdaq Stock Market Pinterest PINS 4,967.0 17.37 -3.44 -16.53 21.65 16.70 New highs 23 1
Nasdaq Composite 8909.96 8781.31 8809.12 98.41 1.13 9817.18 6860.67 10.6 -1.8 13.0 SPDR S&P 500 SPY 4,875.1 286.72 0.53 0.19 286.82 285.57 New lows 7 2
Nasdaq 100 9031.00 8900.57 8930.62 96.51 1.09 9718.73 6978.02 16.9 2.3 16.5 Disney DIS 4,787.3 98.68 -2.38 -2.36 103.39 97.52 Closing Arms† 1.57 1.15
Hudbay Minerals HBM 4,153.8 2.35 ... unch. 2.35 2.35 Block trades* 5,553 165
S&P

.
General Electric GE 4,079.9 6.19 -0.01 -0.16 6.24 6.18
500 Index 2898.23 2863.55 2868.44 25.70 0.90 3386.15 2237.40 -0.5 -11.2 6.1 Nasdaq NYSE Arca

ly
Southwest Airlines LUV 3,818.2 26.46 0.04 0.15 26.64 26.30
MidCap 400 1639.07 1603.68 1607.11 15.61 0.98 2106.12 1218.55 -17.1 -22.1 -2.6 Total volume*3,929,398,003 274,121,242
SmallCap 600 759.81 736.73 738.71 2.69 0.37 1041.03 595.67 -23.9 -27.7 -4.5 Percentage gainers… Adv. volume*2,385,589,223 195,288,156
MercadoLibre MELI 183.5 720.06 99.12 15.96 744.00 620.50 Decl. volume*1,521,893,633 76,457,050
Other Indexes
Russell 2000
NYSE Composite
Value Line
1302.45 1269.99
11259.20 11124.69 11135.40
407.06 396.10
1273.51

397.14
9.54
79.12
1.04 0.26
on
0.75
0.72
1705.22
14183.20
562.05
991.16
8777.38
305.71
-19.5
-12.9
-26.6
-23.7
-20.0
-28.1
-3.0
-1.4
-8.8
Vapotherm
Nutanix Cl A
PDL BioPharma
VAPO
NTNX
PDLI
80.6
185.1
143.3
25.50
19.29
3.74
3.20
1.52
0.27
14.35
8.55
7.78
27.50
19.69
3.74
22.30
17.77
3.47
Issues traded
Advances
Declines
Unchanged
3,308
1,743
1,478
87
1,384
1,044
328
12
NYSE Arca Biotech 5302.97 5222.83 5256.03 70.47 1.36 5399.75 3855.67 13.7 3.7 12.9
Clovis Oncology CLVS 411.9 8.30 0.59 7.65 8.72 7.65
New highs 47 8
us ,

NYSE Arca Pharma 649.51 637.66 645.28 10.58 1.67 670.32 494.36 12.0 -1.3 7.6 ...And losers New lows 15 7
l

KBW Bank 72.09 69.07 69.13 -1.04 -1.48 114.12 56.19 -30.9 -39.0 -9.3 4,967.0 17.37 -3.44 21.65 16.70 Closing Arms† 0.75 1.31
e
Pinterest PINS -16.53
al a

PHLX§ Gold/Silver 121.97 117.29 121.37 1.75 1.47 121.37 66.14 74.2 13.5 14.8 Mattel MAT 680.2 7.85 -0.76 -8.77 8.92 7.68 Block trades* 24,652 1,014
PHLX§ Oil Service 30.46 28.31 28.50 -0.48 -1.67 89.29 21.47 -68.1 -63.6 -42.7 Plains GP Holdings PAGP 751.8 7.96 -0.69 -7.98 8.70 7.96 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1719.87 1679.26 1689.50 28.20 1.70 1979.50 1286.84 12.2 -8.7 18.7 Myriad Genetics MYGN 181.7 14.00 -0.82 -5.53 14.82 13.05 †(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Cboe Volatility 36.22 31.95 33.61 -2.36 -6.56 82.69 11.54 74.0 143.9 47.0 Electronic Arts EA 615.9 113.50 -6.11 -5.11 121.00 112.22 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: FactSet; Dow Jones Market Data indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

er s

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
m er

World The Global Dow 2594.32 23.58 0.92 –20.2 Portola Pharmaceuticals PTLA 17.85 10.09 130.03 36.49 5.31 -49.2 DB Crude Oil Double Shrt DTO 99.83 -69.26 -40.96 372.95 42.00 95.4
DJ Global Index 365.59 3.54 0.98 –15.8 GAN GAN 13.25 4.75 55.88 14.14 8.50 ... Fulgent Genetics FLGT 12.61 -3.87 -23.48 20.60 4.71 102.5
DJ Global ex U.S. 210.31 2.13 1.02 –20.2 Genprex GNPX 3.50 1.19 51.52 7.03 0.23 96.6 Norwegian Cruise Line NCLH 11.18 -3.26 -22.58 59.78 7.03 -80.5
Adverum Biotechnologies ADVM 19.00 5.27 38.35 19.23 4.96 179.7 Pyxus International PYX 2.96 -0.74 -20.00 20.55 1.43 -84.6
m rp

Americas DJ Americas 661.48 6.15 0.94 –13.1

Brazil Sao Paulo Bovespa 79470.78 594.56 0.75 –31.3 Akebia Therapeutics AKBA 11.95 3.29 37.99 12.25 2.99 96.9 Allied Healthcare Prods AHPI 10.92 -2.53 -18.81 45.00 0.92 539.2
Canada S&P/TSX Comp 14811.56 66.52 0.45 –13.2 Lightbridge LTBR 6.20 1.70 37.78 13.44 1.71 -40.9 ProSh Ult Bloom Crude Oil SCO 36.64 -8.37 -18.60 67.35 11.17 128.6
Mexico S&P/BMV IPC 36616.06 245.63 0.68 –15.9 TG Therapeutics TGTX 16.69 4.23 33.95 16.98 4.95 109.4 Midatech Pharma ADR MTP 3.28 -0.70 -17.59 13.60 0.86 -68.0
Chile Santiago IPSA 2754.89 48.55 1.79 –17.4 Chegg Inc. CHGG 57.92 14.13 32.27 61.33 25.89 58.9 WestRock WRK 25.06 -5.25 -17.32 44.39 21.50 -34.6
2.15 Imara IMRA 24.00 5.76 31.58 24.00 13.40 ... VelocityShares 3x DGAZ 154.45 -31.65 -17.01 425.20 85.41 21.1
EMEA Stoxx Europe 600 335.50 7.06 –19.3
co Fo

2.21 Intl General Insurance IGIC 7.74 1.74 29.00 11.52 5.48 -23.6 Antares Pharma ATRS 2.74 -0.55 -16.72 5.13 1.60 -8.7
Eurozone Euro Stoxx 317.16 6.85 –21.5
Belgium Bel-20 3006.29 54.06 1.83 –24.0 Siebert Financial SIEB 6.90 1.50 27.78 12.36 5.08 -32.7 Berkshire Hills Bancorp BHLB 13.02 -2.54 -16.32 33.72 11.43 -56.1
Denmark OMX Copenhagen 20 1152.46 8.05 0.70 1.5 Liquidia Technologies LQDA 6.47 1.29 24.90 10.45 2.65 -32.9 Pitney Bowes PBI 2.48 -0.48 -16.22 5.75 1.67 -55.4
France CAC 40 4483.13 104.90 2.40 –25.0 Wayfair Cl A W 165.88 31.77 23.69 181.39 21.70 13.7 Hertz Global Holdings HTZ 3.01 -0.58 -16.16 20.85 2.80 -80.9
Germany DAX 10729.46 262.66 2.51 –19.0 P F Industries Cl A PFIN 5.50 1.04 23.32 8.75 3.75 -31.5 Itron ITRI 56.52 -10.87 -16.12 88.32 40.48 -13.0
2.05 –16.4 Corvus Pharmaceuticals CRVS 3.03 0.56 22.67 8.10 1.01 -25.0 Scorpio Bulkers SALT 20.54 -3.73 -15.37 72.05 16.80 -56.5
Israel Tel Aviv 1407.26 28.31
Italy FTSE MIB 17387.38 351.77 2.06 –26.0
Netherlands AEX 509.83 13.52 2.72 –15.7
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1133.16 33.74 3.07–26.8 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
South Africa FTSE/JSE All-Share 49184.16 –2.44 –0.005 –13.8
Spain IBEX 35 6747.70 74.40 1.11 –29.3 MicroVision MVIS 266,438 3060.5 1.30 18.18 1.82 0.15 Schwab 1-5 Year Corp Bd SCHJ 1,347 7389 50.20 -0.04 52.78 43.87
Sweden OMX Stockholm 587.48 12.68 2.21 –13.7 Ritter Pharmaceuticals RTTR 156,094 1357.1 0.64 87.68 1.27 0.15 Portola Pharmaceuticals PTLA 98,664 5869 17.85 130.03 36.49 5.31
n-

Switzerland Swiss Market 9512.17 121.90 1.30 –10.4 Norwegian Cruise Line NCLH 154,864 593.1 11.18 -22.58 59.78 7.03 Virtus Private Credit VPC 2,989 3298 16.01 -1.37 27.07 11.69
–13.7 General Electric GE 116,480 14.9 6.20 -0.16 13.26 5.90 Delcath Systems DCTH 247 2107 7.95 6.00 102.90 5.15
Turkey BIST 100 98737.52 –104.72 –0.11
1.66 –22.4 Seanergy Maritime Hldgs SHIP 108,151 400.7 0.13 -10.97 3.90 0.12 Chegg Inc. CHGG 38,426 1692 57.92 32.27 61.33 25.89
U.K. FTSE 100 5849.42 95.64
U.K. FTSE 250 16093.14 141.46 0.89 –26.5 Portola Pharmaceuticals PTLA 98,664 5869.0 17.85 130.03 36.49 5.31 iSh Commodities Sel Strat COMT 2,508 1650 22.25 1.41 33.34 21.25
no

Ford Motor F 96,210 -2.9 4.97 2.26 10.56 3.96 Nuveen Enh Yd 1-5Y Agg Bd NUSA 245 1213 25.20 0.04 25.91 22.66
Asia-Pacific
Carnival CCL 88,890 60.8 13.09 -8.72 54.44 7.80 SPDR S&P 400 Mid Cap Gr MDYG 3,271 1152 48.14 1.33 59.55 34.68
Australia S&P/ASX 200 5407.10 87.25 1.64 –19.1
American Airlines Group AAL 86,386 58.0 9.51 -3.16 34.99 9.09 GraniteSh XOUT US LC XOUT 187 1131 26.78 1.63 30.15 19.84
China Shanghai Composite 2860.08 … Closed –6.2
Cleanspark CLSK 80,078 17578.1 3.05 124.26 30.50 0.97 Akebia Therapeutics AKBA 16,241 1075 11.95 37.99 12.25 2.99
Hong Kong Hang Seng 23868.66 254.86 1.08 –15.3
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 31453.51 –261.84 –0.83 –23.8 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 19619.35 … Closed –17.1
Singapore Straits Times 2572.36 8.68 0.34 –20.2 Track the Markets
South Korea Kospi 1895.37 … Closed –13.8 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 10774.61 54.13 0.50 –10.2 global stock indexes, bond ETFs,
Thailand SET 1278.63 –23.03 –1.77 –19.1
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: FactSet; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Tues YTDchg Tues YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004269 23422 1.1
Americas
Argentina peso .0149 66.9374 11.8 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .1793 5.5788 38.8 Czech Rep. koruna .04008 24.949 10.0

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7119 1.4047
.001197 835.20
8.1
13.0
Denmark krone
Euro area euro
.1452 6.8858
1.0838 .9227
3.3
3.5
notes and bonds major U.S. trading partners .000255 3923.67 Hungary forint .003092 323.43
30-year mortgage, Rate Colombiapeso 19.6 9.5
A consumer rate against its
Ecuador US dollar 1 1 unch Iceland krona .006803 147.00 21.4
benchmark over the past year 4.00% Mexico peso .0416 24.0226 26.9 Norway krone .0974 10.2619 16.9
Bankrate.com avg†: 3.57% 8%
Uruguay peso .02366 42.2600 13.8 Poland zloty .2389 4.1863 10.4
Prairie State Bank and Trust 3.00% Russia ruble .01357 73.719 18.8
One year ago 3.00 Yen Asia-Pacific
4.00% Mt Zion, IL 800-597-2977 4 s Sweden krona .1016 9.8386 5.0
t Australian dollar .6433 1.5545 9.1
t Cambridge Savings Bank 3.25% Switzerland franc 1.0280 .9728 0.5
30-year fixed-rate 3.00 2.00 China yuan .1416 7.0625 1.4
0 Turkey lira .1413 7.0750 18.9
mortgage Cambridge, MA 888-418-5626 Hong Kong dollar .1290 7.7537 –0.5
Ukraine hryvnia .0371 26.9707 13.9
Tradeweb ICE Tuesday Close India rupee .01320 75.739 6.1
2.00 First National Bank 3.25% 1.00 –4 s s
UK pound 1.2435 .8042 6.6
t Indonesia rupiah .0000663 15080 8.6
t
Waverly, IA 319-266-2000 WSJ Dollar index Euro Japan yen .009386 106.54 –1.9 Middle East/Africa
10-year Treasury 1.00 0.00 Kazakhstan tenge .002359 423.89 2.6446 .3781 0.3
TBK Bank, SSB 3.50% –8 11.0 Bahrain dinar
note yield Macau pataca .1253 7.9826 Egypt pound .0635 15.7375 –1.9
Dallas, TX 214-365-6900 1 3 6 1 2 3 5 710 30 2019 2020
–0.4
0.00 month(s) years Malaysia ringgit .2324 4.3025 5.2 Israel shekel .2844 3.5161 1.8
MJ J A S O N D J FMA M Atlanta Postal Credit Union 3.63% New Zealand dollar .6055 1.6515 11.2 Kuwait dinar 3.2341 .3092 2.0
Atlanta, GA 800-849-8431 maturity Pakistan rupee .00627 159.550 2.9 Oman sul rial 2.5974 .3850 unch
2019 2020
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data Philippines peso .0198 50.611 –0.2 Qatar rial .2745 3.643 –0.01
Yield/Rate (%) 52-Week Range (%) 3-yr chg Singapore dollar .7067 1.4151 5.1 Saudi Arabia riyal .2663 3.7551 0.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields South Korea won .0008179 1222.57 5.8 South Africa rand .0540 18.5149 32.3
Federal-funds rate target 0.00-0.25 0.00-0.25 0.00 l 2.25 -0.75 Sri Lanka rupee .0052924 188.95 4.2
Yield (%) 52-Week Total Return (%) Taiwan dollar .03347 29.875 –0.1 Close Net Chg % Chg YTD%Chg
Prime rate* 3.25 3.25 3.25 l 5.50 -0.75 Bond total return index Close Last Week ago High Low 52-wk 3-yr Thailand baht .03089 32.370 8.8 WSJ Dollar Index 93.70 0.15 0.16 4.62
Libor, 3-month 0.47 0.76 0.47 l 2.56 -0.71
U.S. Treasury, Barclays 2474.080 0.540 0.520 2.410 0.490 14.11 5.82 Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.31 0.31 0.31 l 0.78 -0.01
1.260 36.24 13.49
Five-year CD, annual yield 0.85 0.85 0.85 l 2.01 -0.45 U.S. Treasury Long, Barclays 4907.810 1.160 2.830 0.980
Commodities
30-year mortgage, fixed† 3.57 3.62 3.52 l 4.22 -0.49 Aggregate, Barclays 2230.200 1.360 1.380 2.970 1.310 10.65 5.17 Tuesday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.05 3.14 2.95 l 3.63 -0.22 Fixed-Rate MBS, Barclays 2222.330 1.070 1.190 3.150 0.930 7.66 4.09
Jumbo mortgages, $510,400-plus† 3.65 3.69 3.54 l 4.71 -0.95 DJ Commodity 489.77 19.76 4.21 647.86 433.70 -19.60 -23.75
High Yield 100, ICE BofA 2867.470 6.689 7.967 10.740 4.516 –5.445 1.094
Five-year adj mortgage (ARM)† 3.21 3.27 3.21 l 4.78 -0.14 TR/CC CRB Index 123.64 5.12 4.32 187.39 106.29 -31.11 -33.45
Muni Master, ICE BofA 564.189 1.791 1.889 3.441 0.959 3.235 3.451 Crude oil, $ per barrel 24.56 4.17 20.45 63.27 -37.63 -60.00 -59.78
New-car loan, 48-month 4.31 4.28 4.26 l 4.81 1.20
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 801.135 6.214 6.604 7.480 4.523 –2.700 0.959 Natural gas, $/MMBtu 2.134 0.141 7.07 2.862 1.552 -15.88 -2.51
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Barclays; ICE Data Services Gold, $ per troy oz. 1704.40 -2.50 -0.15 1756.70 1272.00 32.79 12.17

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B10 | Wednesday, May 6, 2020
ETFs That Cushion Losses Grow
BY MISCHA FRANKL-DUVAL
A small group of exchange-
traded funds that purport to
offer built-in protection
against losses—but cap gains
at a fixed level as well—has
surged in popularity during
this year’s stretch of height-
ened volatility.
“Buffer” ETFs, which seek
to protect investors against a
set percentage of losses over a
fixed period, have taken in
about $1.9 billion so far this
year, FactSet data show. That
is more than the $1.49 billion
they added in all of last year.
These funds, which have to-
tal assets of about $3.6 billion
according to FactSet, allow in-
vestors to track the price of an
underlying index such as the
S&P 500 while using options
to mitigate against losses. In
exchange for that protection,
investors’ gains are capped at
a certain level.
The funds have drawbacks,
though. For starters, the buf-
fers are limited in terms of
loss protection. In some, in-
vestors are protected only
from the first 10% or 15% of a
market drawdown depending
on the fund’s terms. That
means investors could still
lose out if markets fall further.
Investors also forgo divi-
dends—a big disadvantage
with the S&P 500’s dividend
yield at 2.07%. Fees are hefty,
too, especially compared with
standard tracker funds.
Innovator Capital Manage-
ment LLC, for example, offers
Pandemic
Hits Results
Of Insurers
Continued from page B1
pick back up since the middle
of April, but it still isn’t any-
where close to where it was”
before the pandemic, Allstate
Chief Executive Tom Wilson
said. At one point in some
Biggest 1,000 Stocks | WSJ.com/stocks
Continued From Page B7
Net
Stock Sym Close Chg
Netease NTES 339.23
Netflix NFLX 424.68
Neurocrine NBIX 101.78
NewOrientalEduc EDU 123.25
NY CmntyBcp NYCB 10.50
NYTimes A NYT 33.36
NewellBrands NWL 11.93
NewMarket NEU 417.88
s Newmont
NEM 64.91
NewsCorp A NWSA 9.55
NewsCorp B NWS 9.81
NextEraEnergy NEE 230.10
NielsenHoldings NLSN 13.52
Nike NKE 87.20
NiSource NI 24.53
NobleEnergy NBL 8.82
Nokia NOK 3.46
NomuraHoldings NMR 4.07
Nordson NDSN 157.87
NorfolkSouthern NSC 171.36
NorthernTrust NTRS 73.07
NorthropGrum NOC 328.74
NortonLifeLock NLOK 21.53
Novartis NVS 84.75
NovoNordisk NVO 63.13
Novocure NVCR 64.15
NuanceComms NUAN 19.59
Nucor NUE 40.75
Nutrien NTR 35.70
NVIDIA NVDA 293.74
O P Q
OGE Energy OGE 30.32
ONEOK OKE 29.93
OReillyAuto ORLY 390.38
OccidentalPetrol OXY 15.32
s Okta
OKTA 158.73
s OldDomFreight ODFL 153.64
OldRepublic ORI 14.92
OmegaHealthcare OHI 27.09
Omnicom OMC 54.22
ON Semi ON 15.15
OpenText OTEX 38.66
Oracle ORCL 52.05
Orange ORAN 11.87
Orix IX 57.99
OtisWorldwide OTIS 48.09
OwensCorning OC 42.15
PG&E PCG 11.81 0.81
PLDT PHI 24.55 0.14
PNC Fin PNC 99.77 -1.84
POSCO PKX 36.38 0.15
PPD PPD 23.92 0.05
PPG Ind PPG 88.27 1.44
PPL PPL 25.34 0.38
PRA HealthSci PRAH 87.06 0.42
PTC PTC 70.32 3.13
Paccar PCAR 68.06 -0.31
PackagingCpAm PKG 93.48 -2.30
Mutual Funds
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Net YTD
Fund NAV Chg %Ret Fund
American Century Inv
Ultra 52.45 +0.72 0.6
American Funds Cl A
AmcpA p 31.27 +0.37 -6.9
AMutlA p 38.16 +0.35-11.8
BalA p 26.79 +0.11 -5.6
BondA p 13.76 ... 6.0
CapIBA p 55.16 +0.28-12.0
CapWGrA 44.66 +0.35-14.1
EupacA p 46.21 +0.31-17.0
FdInvA p 53.87 +0.42-12.8
GwthA p 49.43 +0.51 -3.3
HI TrA p 8.85 +0.03-10.3
ICAA p 35.16 +0.29-10.7
IncoA p 20.29 +0.10-11.9
IntBdA p 13.99 ... 4.6
N PerA p 42.77 +0.47 -9.5
NEcoA p 42.47 +0.46 -7.1
NwWrldA 59.36 +0.43-15.9
SmCpA p 51.63 +0.61-12.2
TxExA p 12.92 +0.01 -2.2
* * THE WALL STREET JOURNAL.
BANKING & FINANCE
BNP Paribas Braces
Total assets under Change over one-year initially advertised. Both levels
For Wave of Defaults
management in ‘buffer’ ETFs* outcome period are calculated from the start
$4 billion 20% of the outcome period, not BY NOEMIE BISSERBE 15% to 20% as a result of the
Cap from the date investors buy in. AND PIETRO LOMBARDI coronavirus outbreak and the
Those buying in partway lockdowns.
through the yearlong period PARIS—BNP Paribas SA re- “The health crisis has had
3 10 might not get the same degree ported a drop in first-quarter major repercussions on macro-
of buffer, nor the same limit net profit as France’s largest economic outlook and produced
on their gains. bank set aside new provisions to extreme shocks on the financial
2 0 “You’re really protecting prepare for a flood of customers markets,” the bank said.
Innovator
S&P 500 first losses, and taking a lot of to default on their loans because It set aside €657 million to
Buffer ETF - risk thereafter,” said Joseph of the coronavirus pandemic. cover bad loans, raising its to-
Buffer April NAV Halpern, chief executive of Ex- Like crosstown rival Société tal provision to €1.43 billion.
1 –10
ceed Investments LLC, a New Générale SA, BNP Paribas Still, the bank’s earnings and
York-based asset manager suffered a hit in its equity- outlook were slightly above ex-
with mutual funds that offer derivatives unit from companies pectations, underscoring the
0 –20 S&P 500 buffer strategies. “It’s nice to that canceled their dividend pay- resilience of BNP Paribas’s
2019 ’20 2019 ’20 protect from the first 10%, but ments. diversified business model, an-
*Latest figures are as of May 4. from top to bottom, this mar- It is a business where the two alysts said.
Source: FactSet ket dropped about 35%.” French banks have a strong foot- Some analysts, however,
Options-market dynamics hold. The move wiped €184 mil- noted a weaker than expected
a number of buffer ETFs. greater than 5% but below mean the upside cap on buffer lion ($199.4 million) from BNP core Tier 1 capital ratio—a key
These carry a 0.79% manage- 35%, depending on which fund funds can vary depending on Paribas’ structured products measure of capital strength—
ment fee, well above the 0.09% they select. The more buffer when those caps are set. When revenue this quarter. and low provisions.
at State Street’s popular investors want, the lower the markets are more volatile, Banks world-wide have been “The optimistic outlook
SPDR S&P 500 Trust ETF. level at which their gains are caps tend to be higher, making setting aside billions of dollars statement relative to expecta-
Still, many investors were capped. the fund’s terms more attrac- to cover bad loans and have tions may support the shares
prepared to make the trade-off When markets are falling, tive. The terms of the April been shoring up capital by can- initially but we would expect
when fears over the spread of buffer funds can offer some 2020 reset of Innovator’s S&P celing dividends and share buy- this to fade as focus shifts to
the coronavirus ravaged mar- protection. The April 2019 se- 500 Buffer ETF offered inves- backs after lockdowns hit the worse-than-expected capital
kets. “People are really willing ries of Innovator’s S&P 500 tors an initial cap of 22% and global economy. and a lack of provisioning in all
to give up an unknown, which Buffer ETF returned mi- a buffer against their first 9% In Europe, banks came into but the corporate bank and
is where the market will be at nus-0.7%, net of fees, over its of losses. The February ver- the crisis in worse shape than consumer credit,” Barclays ana-
the end of the year, for a initial yearlong outcome pe- sion, launched when markets their U.S. rivals, after struggling lysts wrote in a note.
known, even if they have to riod to March 31. The S&P 500 were calmer, offered the same for years with sluggish growth BNP Paribas shares rose 4.1%
give up, potentially, some of fell 8.8% over that time. buffer, but a cap of just 13%. and persistently low interest to €28.21 in Paris on Tuesday.
their upside,” said Bruce Bond, Some investors argue the “These kind of structures rates that put their core busi- BNP’s core Tier 1 capital ra-
co-founder and chief executive extra protection isn’t worth monetize volatility, so the nesses under severe pressure. tio—that measures a bank’s top
of Innovator Capital. the added cost over the longer higher the volatility, the better The Paris-based lender, the quality capital such as equity
Innovator’s S&P 500 funds, term because history shows the terms, which is another biggest by assets in France, said and retained earnings against
available in monthly series, of- diversified portfolios of stocks reason why they’re selling so net profit fell by 33% to €1.28 risk-weighted assets—stood at
fer different levels of protec- tend to rise over time. well,” said Karan Sood, chief billion in the three months 12% in March from 12.1% in De-
.
tion over a one-year period. Investors also have to be executive and managing direc- ended March 31, while revenue cember, still well above the
Investors can shield them- vigilant about the terms of the tor at Cboe Vest, which serves fell 2% to €10.89 billion. 9.31% threshold set by the Eu-
ly
selves against the first 9% or funds because the buffer and as a portfolio manager to a BNP Paribas warned net ropean Central Bank for the
15% of losses, or against losses cap can differ from what is number of buffer strategies. profit for 2020 might fall by French lender.
states, mileage was down 50%
to 60%, he said.
The insurers’ results come
on today’s dollars, according to
trade group Insurance Infor-
mation Institute.
March, AIG made a partial
drawdown of $1.3 billion from
a revolving-credit facility, the
tion. Industrywide, litigation
over disputed coverage is
mounting in courts, and res-
losses related to viruses” and
have other terms that preclude
Covid-19 business-interruption
as at least one study suggests AIG Chief Executive Brian insurer said. That was one of taurants and other small busi- claims. “We are confident
us ,
the still-unfolding crisis could Duperreault told analysts in an numerous efforts by property- nesses are seeking help from these exclusions and related
l
top Hurricane Katrina in 2005 earnings call Tuesday that casualty and life insurers to state and federal lawmakers to terms and conditions will be
e
al a
as the costliest disaster to in-
surers. Brokerage Willis Tow-
ers Watson said in a May 1 re-
Covid-19 “will be the single
largest [catastrophe] loss the
industry has ever seen.” He
build up funds to potentially
tap into, analysts said.
Shares of AIG, which posted
try to force insurers to pay
out. For their part, most insur-
ers cite pandemic, virus and
upheld should they be chal-
lenged,” he said.
Besides business-interrup-
ci on
port that U.S. and U.K. losses said AIG “was in a strong fi- its results Monday after the other exclusions written into tion and travel claims, AIG’s
to property-casualty insurers nancial position before this market’s close, were down their business-interruption $272 million reserve boost ad-
from Covid-19 could hit $32 crisis began and remains in a slightly in after-hours trading. policies. dresses claims on event-can-
billion in a moderate scenario strong financial position.” For commercial insurers like AIG President Peter Zaffino cellation contracts, trade
and $80 billion in a severe AIG “will continue to be la- AIG, the big question is the po- told analysts in the earnings credit, workers’ compensation
er s
one. Katrina cost insurers and ser focused on actions to fur- tential exposure they face from call that “the overwhelming and policies reinsured for
the U.S. flood-insurance pro- ther strengthen” its capital property policies that include majority” of AIG’s property other carriers by its Validus Re
m er
gram more than $70 billion in and access to cash, he said. In coverage for business interrup- policies “contain exclusions for unit, it said.
Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Cash Prices | WSJ.com/commodities Tuesday, May 5, 2020
m rp
Net Net
Stock Sym Close Chg Stock Sym Close Chg SlackTech WORK 27.29 0.09 Teradyne TER 59.44 0.86 Vipshop VIPS 15.16 0.21 These prices reflect buying and selling of a variety of actual or “physical”
Smartsheet SMAR 54.57 1.04 Tesla TSLA 768.21 7.02 Visa V 178.44 2.29
TevaPharm TEVA VistraEnergy VST 18.72 -0.25
commodities in the marketplace—separate from the futures price on an
PagSeguroDig PAGS 27.18 1.10 s RegenPharm REGN 574.37 32.55 SmithAO AOS 42.16 0.18 10.09 0.28
9.65 PaloAltoNtwks PANW 198.21 6.37 RegionsFin RF 9.98 -0.18 Smith&Nephew SNN 39.90 0.72 TexasInstruments TXN 111.54 1.04 VMware VMW 126.78 0.44 exchange, which reflects what the commodity might be worth in future
-3.47 PanAmerSilver PAAS 22.24 -0.17 ReinsGrp RGA 100.00 -0.97 Smucker SJM 116.02 1.03 Textron TXT 25.30 -0.34 Vodafone VOD 13.92 0.10
months.
2.40 ParkerHannifin PH 153.55 -3.08 RelianceSteel RS 87.08 -0.31 Snap SNAP 17.51 0.41 ThermoFisherSci TMO 336.32 9.60 VornadoRealty VNO 38.85 -1.07
4.90 Paychex PAYX 67.68 0.51 RenaissanceRe RNR 144.49 2.52 SnapOn SNA 121.67 0.27 ThomsonReuters TRI 69.79 -0.01 VoyaFinancial VOYA 43.78 -0.37 Tuesday Tuesday
RGEN 114.52 0.58 SolarEdgeTech SEDG 107.86 0.72 3M MMM 147.43 -0.97 VulcanMatls VMC 108.04 -3.69
-0.02 PaycomSoftware PAYC 256.98 8.86 Repligen Bran,wheat middlings, KC-u 92
co Fo
0.97 Paylocity PCTY 112.77 3.81 RepublicSvcs RSG 77.48 0.28 SolarWinds SWI 17.25 0.35 Tiffany TIF 127.46 0.39 Energy 2.9350
-0.46 s PayPal PYPL 125.43 1.77 ResMed RMD 159.41 4.63 SonocoProducts SON 47.09 -0.62 Toro TTC 62.59 1.43 W X Y Z Corn,No. 2 yellow,Cent IL-bp,u
1.45 TorontoDomBk TD 40.50 -0.27 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 54.650 Corn gluten feed,Midwest-u,w 115.2
3.40 Pegasystems PEGA 85.54 4.10 RestaurantBrands QSR 48.98 -0.01 Sony SNE 63.39 WABCO WBC 134.16 -0.43
RexfordIndlRealty REXR 39.19 0.46 Southern SO 55.63 0.71 Total TOT 35.01 1.45 WEC Energy WEC 89.58 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.500 Corn gluten meal,Midwest-u,w 498.3
2.17 Peloton PTON 36.22 2.32 0.62
ReynoldsCnsmr REYN 33.51 -0.63 SoCopper SCCO 32.34 ... ToyotaMotor TM 121.96 1.26 WEX Cottonseed meal-u,w 250
-0.09 PembinaPipeline PBA 22.36 0.30 WEX 128.01 2.18 Metals Hominy feed,Cent IL-u,w 108
-0.10 Pentair PNR 34.15 -0.33 RingCentral RNG 234.17 0.18 t SouthwestAir LUV 26.42 -1.14 TractorSupply TSCO 105.10 2.66 W.P.Carey WPC 60.77 -0.23
0.01 Penumbra PEN 176.43 5.18 RioTinto RIO 44.25 -0.73 Splunk SPLK 143.62 8.70 TradeDesk TTD 303.64 13.12 WPP WPP 36.73 -0.13 Gold, per troy oz Meat-bonemeal,50% pro Mnpls-u,w 353
-0.63 People'sUtdFin PBCT 11.61 -0.23 RitchieBros RBA 42.35 0.46 Spotify SPOT 145.02 -0.29 Tradeweb TW 54.05 0.35 Wabtec WAB 55.14 2.49 Engelhard industrial 1701.00 Oats,No.2 milling,Mnpls-u 3.3125
1.45 PepsiCo RobertHalf RHI 44.36 0.15 Square SQ 66.69 3.00 TraneTech TT 82.16 -2.99 WalgreensBoots WBA 42.02 -0.43 Rice, Long Grain Milled, No. 2 AR-u,w 28.75
PEP 131.67 0.75
TransDigm TDG 324.59 -17.84
Handy & Harman base 1699.55
0.13 PerkinElmer PKI 90.41 3.41 Rockwell ROK 190.99 3.07 StanleyBlackDck SWK 107.12 3.19 Walmart WMT 124.73 1.03 Sorghum,(Milo) No.2 Gulf-u 7.8925
RogersComm B RCI 40.75 0.21 Starbucks SBUX 72.90 1.01 TransUnion TRU 79.00 2.54 WasteConnections WCN 87.29
Handy & Harman fabricated 1886.50
-0.32 Perrigo PRGO 51.94 0.67 1.95 SoybeanMeal,Cent IL,rail,ton48%-u 290.90
Roku ROKU 123.49 -0.81 StateStreet STT 58.08 -0.32 Travelers TRV 96.85 -0.06 WasteMgt LBMA Gold Price AM *1703.70
-0.09 PetroChina PTR 33.93 0.92 WM 99.02 -0.54
s Rollins ROL 41.44 0.76 SteelDynamics STLD 24.15 -0.17 s Trex TREX 109.21 9.30 Waters LBMA Gold Price PM *1709.10 Soybeans,No.1 yllw IL-bp,u 8.2750
0.06 PetroleoBrasil PBR 6.73 0.19 WAT 181.89 1.46
0.95 PetroleoBrasilA PBR.A 6.45 0.14 RoperTech ROP 345.87 4.79 Steris STE 141.66 2.12 Trimble TRMB 32.83 0.72 Watsco WSO 163.02 5.96 Krugerrand,wholesale-e 1773.82 Wheat,Spring14%-pro Mnpls-u 5.9525
3.35 Pfizer PFE 38.51 0.89 RossStores ROST 88.77 0.38 STMicroelec STM 24.31 -0.94 Trip.com TCOM 24.24 0.20 s Wayfair W 165.88 31.77 Maple Leaf-e 1790.88 Wheat,No.2 soft red,St.Louis-bp,u 5.4200
-1.89 PhilipMorris PM 72.20 -1.11 RoyalBkCanada RY 60.23 -0.10 StoneCo STNE 26.74 0.34 TruistFinl TFC 35.25 -0.31 WellsFargo WFC 26.32 -1.03 American Eagle-e 1790.88 Wheat - Hard - KC (USDA) $ per bu-u 4.9650
6.18 Phillips66 PSX 75.20 1.72 RoyalBkScotland RBS 2.82 ... Stryker SYK 187.93 9.36 Twilio TWLO 116.57 3.32 Welltower WELL 48.20 -0.12 Mexican peso-e 2064.44 Wheat,No.1soft white,Portld,OR-u 6.0400
0.43 PilgrimPride PPC 20.22 0.05 RoyalCaribbean RCL 37.20 -4.17 SumitomoMits SMFG 5.05 0.03 Twitter TWTR 28.07 -0.16 WestPharmSvcs WST 194.80 6.48 Austria crown-e 1674.83
0.75 Pinduoduo PDD 48.72 2.35 RoyalDutchA RDS.A 33.07 0.32 SunComms SUI 131.78 -0.89 TylerTech TYL 322.56 7.82 WesternDigital WDC 40.34 0.66 Austria phil-e 1790.88
Food
n-
-0.49 PinnacleWest PNW 74.64 0.99 RoyalDutchB RDS.B 31.41 0.18 SunLifeFinancial SLF 31.96 -1.18 TysonFoods TSN 56.99 1.67 WesternUnion WU 19.36 0.51
Silver, troy oz. Beef,carcass equiv. index
2.75 Pinterest PINS 20.81 -0.62 RoyalGold RGLD 128.44 3.23 SuncorEnergy SU 16.57 -0.26 UBS Group UBS 9.66 -0.14 WestlakeChem WLK 42.75 1.22
Ryanair RYAAY 57.62 0.29 Suzano SUZ 7.41 0.09 UDR UDR 36.60 0.06 WestpacBanking WBK 10.33 0.18 Engelhard industrial 14.9500 choice 1-3,600-900 lbs.-u 282.80
0.18 PioneerNatRscs PXD 82.48 -0.58
-0.31 PlainsAllAmPipe PAA SAP SAP 116.57 -0.62 SynchronyFin SYF 18.00 -0.43 UGI UGI 29.52 0.26 WestRock WRK 25.06 -5.25 Handy & Harman base 14.9450 select 1-3,600-900 lbs.-u 266.19
8.24 -0.14
0.29 PlanetFitness PLNT 57.08 -0.36 S&P Global SPGI 295.41 9.64 SyneosHealth SYNH 53.88 0.43 US Foods USFD 18.84 -1.10 Weyerhaeuser WY 17.52 -0.26 Handy & Harman fabricated 18.6810 Broilers, National comp wtd. avg.-u,w 0.6063
2.45 Pool POOL 221.86 7.05 SBA Comm SBAC 294.51 6.01 Synnex SNX 87.42 1.30 Uber UBER 28.07 0.65 s WheatonPrecMet WPM 42.57 1.10 LBMA spot price *£12.0300 Butter,AA Chicago 1.1950
no
PostHoldings POST 87.59 0.14 SEI Investments SEIC 49.62 -0.35 Synopsys SNPS 154.24 3.16 Ubiquiti UI 158.21 1.07 Whirlpool WHR 109.26 3.24 (U.S.$ equivalent) *14.9300 Cheddar cheese,bbl,Chicago 124.00
PrincipalFin PFG 34.86 -0.11 SK Telecom SKM 18.72 0.06 Sysco SYY 50.54 -3.29 UltaBeauty ULTA 218.21 2.73 Williams WMB 19.00 -0.13 Coins,wholesale $1,000 face-a 14027 Cheddar cheese,blk,Chicago 125.75
SS&C Tech SSNC 56.56 1.37 UnderArmour A UAA 9.38 -0.31 Williams-Sonoma WSM 65.01 2.40
-0.14 Procter&Gamble PG 116.01 0.24 Other metals Milk,Nonfat dry,Chicago lb. 80.50
0.74 Progressive PGR 78.04 2.19 StoreCapital STOR 18.26 -0.01 T U V Unilever UN 47.97 -0.54 WillisTowers WLTW 189.86 6.32
LBMA Platinum Price PM *765.0 Coffee,Brazilian,Comp 1.0225
SVB Fin SIVB 180.84 -1.51 Unilever UL 50.61 -0.35 Wipro WIT 3.12 -0.09
2.17 Prologis PLD 87.74 0.61
Salesforce.com CRM 163.25 1.78 TAL Education TAL 52.09 2.50 UnionPacific UNP 156.38 1.56 Wix.com WIX 132.35 6.66 Platinum,Engelhard industrial 764.0 Coffee,Colombian, NY 1.5546
-0.20 Proofpoint PFPT 121.86 3.73
Sanofi SNY 49.06 0.69 TC Energy TRP 47.29 1.34 UnitedAirlines UAL 24.12 -1.14 WooriFin WF 19.56 ... Palladium,Engelhard industrial 1780.0 Eggs,large white,Chicago-u 0.9050
ProsperityBcshs PB 58.17 -0.11
4.04
PrudentialFin PRU 58.75 -0.13
SantanderCons SC 15.09 0.01 TD Ameritrade AMTD 36.06 -0.88 UnitedMicro UMC 2.50 -0.01 Workday WDAY 152.18 3.71 Aluminum, LME, $ per metric ton *1437.0 Flour,hard winter KC 14.15
5.57 SareptaTherap SRPT 119.44 1.10 TE Connectivity TEL 70.82 1.36 UPS B UPS 92.71 2.27 WynnResorts WYNN 79.67 -0.78 Copper,Comex spot 2.3410 Hams,17-20 lbs,Mid-US fob-u 0.60
-0.29 Prudential PUK 26.47 0.17
Schlumberger SLB 16.25 0.02 Telus TU 16.17 0.06 UnitedRentals URI 113.87 -2.88 XP 66.31
XP 22.57 -0.36 Iron Ore, 62% Fe CFR China-s 84.0 Hogs,Iowa-So. Minnesota-u
-0.13 PublicServiceEnt PEG 49.84 0.70
SchwabC SCHW 34.90 -0.73 TIM Part TSU 12.36 0.14 US Bancorp USB 33.54 -0.93 XPO Logistics XPO 68.91
PublicStorage PSA 179.44 -1.65 5.12 Shredded Scrap, US Midwest-s,m 236 Pork bellies,12-14 lb MidUS-u n.a.
-0.05 ScienceApplicat SAIC 80.75 0.91 TJX TJX 48.17 0.47 UnitedTherap UTHR 111.56 -0.35 XcelEnergy XEL 63.28 0.88
PulteGroup PHM 27.80 0.53 Steel, HRC USA, FOB Midwest Mill-s 463 Pork loins,13-19 lb MidUS-u 1.7211
0.28 s ScottsMiracleGro SMG 130.43 3.81 T-MobileUS TMUS 88.97 0.01 UnitedHealth UNH 293.04 5.50 Xilinx XLNX 83.50 0.26
Qiagen QGEN 41.77 0.35 Steers,Tex.-Okla. Choice-u n.a.
0.50
Qorvo QRVO 97.71 3.57
s Sea SE 57.93 2.70 TRowePrice TROW 109.67 0.19 UnivDisplay OLED 147.01 -0.22 Xylem XYL 65.05 -3.50 Fibers and Textiles Steers,feeder,Okla. City-u,w 144.31
0.30 Seagate STX 46.75 0.31 TaiwanSemi TSM 51.71 -0.44 UniversalHealthB UHS 101.90 3.47 s YamanaGold AUY 4.93 0.04
Qualcomm QCOM 77.63 1.95
0.16 s SeattleGenetics SGEN 165.43 9.67 TakeTwoSoftware TTWO 125.28 0.37 VEREIT VER 5.27 0.11 Yandex YNDX 38.38 0.38 Burlap,10-oz,40-inch NY yd-n,w 0.5700 Fats and Oils
QuantaServices PWR 34.97 0.24
0.53
QuestDiag DGX 108.31 1.03
SempraEnergy SRE 124.22 0.10 TakedaPharm TAK 17.88 0.12 VF VFC 55.66 -0.06 YumBrands YUM 83.28 0.19 Cotton,1 1/16 std lw-mdMphs-u 0.5058
-1.44
Quidel QDEL 141.19 2.20
SensataTechs ST 34.34 1.09 TandemDiabetes TNDM 84.79 2.66 VICI Prop VICI 16.43 0.05 YumChina YUMC 46.00 0.37 Cotlook 'A' Index-t *65.25 Corn oil,crude wet/dry mill wtd. avg.-u,w 44.0000
1.62 ServiceCorp SCI 37.26 0.88 Target TGT 111.76 0.05 VailResorts MTN 165.11 -4.54 ZTO Express ZTO 28.57 0.99 Hides,hvy native steers piece fob-u n.a. Grease,choice white,Chicago-h 0.2900
R S ServiceMaster SERV 33.14 -0.34 TechData TECD 138.40 -0.98 Vale VALE 7.81 -0.17 ZaiLab ZLAB 61.50 -0.40 Wool,64s,staple,Terr del-u,w n.a. Lard,Chicago-u n.a.
s ServiceNow NOW 370.64 16.00 TeckRscsB TECK 8.56 -0.22 ValeroEnergy VLO 63.02 -0.64 ZebraTech ZBRA 233.15 4.38 Soybean oil,crude;Centl IL-u 0.2491
RELX RELX 22.47 0.05 ShawComm B SJR 16.23 0.12 TeladocHealth TDOC 169.59 -4.71 VarianMed VAR 115.03 0.66 Zendesk ZEN 75.33 2.19 Grains and Feeds Tallow,bleach;Chicago-h 0.3475
RPM RPM 66.69 1.92 SherwinWilliams SHW 532.69 3.85 TeledyneTech TDY 319.17 1.22 VeevaSystems VEEV 192.86 3.72 Zillow C Z 43.60 1.01
RalphLauren RL 72.32 0.45 ShinhanFin SHG 24.15 0.15 Teleflex TFX 340.75 14.97 Ventas VTR 29.89 -0.22 Zillow A ZG 42.86 1.03
Barley,top-quality Mnpls-u n.a. Tallow,edible,Chicago-u 0.4717
RaymondJames RJF 62.77 0.25 s Shopify SHOP 686.11 27.22 Ericsson ERIC 8.30 0.03 VeriSign VRSN 210.55 1.71 ZimmerBiomet ZBH 118.02 3.95
RaytheonTech RTX 59.00 0.15 Sibanye-Stillwater SBSW 7.92 -0.16 TelefonicaBras VIV 8.88 0.02 VeriskAnalytics VRSK 157.49 3.03 ZionsBancorp ZION 30.18 -0.49 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks;
RealPage RP 63.25 0.97 SignatureBank SBNY 100.76 -1.32 Telefonica TEF 4.81 0.05 Verizon VZ 56.51 0.27 Zoetis ZTS 131.30 3.86 G=ICE; H=American Commodities Brokerage Co;
RealtyIncome O 52.05 1.44 SimonProperty SPG 60.55 -2.46 TelekmIndonesia TLK 21.51 0.19 VertxPharm VRTX 272.33 7.64 ZoomVideo ZM 144.82 1.38 M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited;
ReataPharm RETA 157.57 5.29 SiriusXM SIRI 5.74 -0.01 10xGenomics TXG 78.17 0.26 ViacomCBS A VIACA 17.76 -0.97 Zscaler ZS 71.23 2.15 U=USDA; W=weekly, Z=not quoted. *Data as of 5/4
RegencyCtrs REG 40.32 0.09 Skyworks SWKS 104.71 5.10 TencentMusic TME 10.56 -0.11 ViacomCBS B VIAC 15.26 -0.83 Zynga ZNGA 7.62 0.15 Source: Dow Jones Market Data
Data provided by
Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
ExtMktIdxInstPre
52.20 +0.56-18.2 SrsEmrgMkt 16.64 +0.11-19.3 EqInc 15.80 +0.11-18.2 Income 11.13 +0.01 -5.7 DivAppIdxAdm 30.49 +0.30 -9.5 WdsrllAdml 53.87 +0.46-16.6 WndsrII 30.36 +0.26-16.6
IntlIdxInstPrem34.46 +0.17-19.8 SrsGlobal 10.59 +0.05-19.6 JPMorgan R Class PIMCO Funds Instl EMAdmr 29.71 +0.15-19.5 WellsIAdml 63.65 +0.14 -3.0 VANGUARD INDEX FDS
MidCpInxInstPrem
19.34 +0.19-18.2 SrsGroCoRetail 18.76 +0.33 5.7 CoreBond 12.20 ... 4.0 IncomeFd 11.13 +0.01 -5.7 EqIncAdml 65.33 +0.45-17.1 WelltnAdml 68.53 +0.43 -7.8 SmValAdml 41.52 +0.10-29.2
SAIUSLgCpIndxFd15.43 +0.14-10.8 SrsIntlGrw 15.45 +0.13-11.8 CorePlusBd 8.56 ... 2.3 Price Funds ExplrAdml 82.18 +1.33-15.5 WndsrAdml 55.83 +0.13-22.8 TotBd2 11.41 -0.02 4.5
SeriesOverseas 9.20 +0.06-14.7 SrsIntlVal 7.42 +0.06-25.1 Lord Abbett A BlChip 123.54 +1.86 -0.7 ExtndAdml 78.12 +0.85-18.1 VANGUARD FDS TotIntl 14.27 +0.08-19.9
SmCpIdxInstPrem16.13 +0.12-23.3 TotalBond 11.06 +0.01 2.3 ShtDurIncmA p 4.05 +0.01 -2.7 DivGro 46.93 +0.51-11.7 GNMAAdml 10.84 -0.01 3.6 DivdGro 27.08 +0.23-11.3 TotSt 69.94 +0.65-11.8
TMktIdxInstPrem79.58 +0.73-11.9 Fidelity SAI Lord Abbett F EqInc 24.18 +0.13-24.2 GrwthAdml 92.48 +1.15 -1.2 INSTTRF2015 22.19 +0.06 -3.5 VANGUARD INSTL FDS
USBdIdxInstPrem12.42 -0.01 5.2 TotalBd 10.56 ... 1.6 ShtDurIncm 4.04 ... -2.9 EqIndex 76.27 +0.69-10.7 HlthCareAdml r 85.25 +1.67 -0.1 INSTTRF2020 22.67 +0.08 -6.0 BalInst 36.99 +0.19 -5.0
Fidelity Advisor I First Eagle Funds Lord Abbett I Growth 71.09 +0.98 -3.1 HYCorAdml r 5.44 +0.02 -7.1 INSTTRF2025 22.85 +0.10 -7.6 DevMktsIndInst 11.30 +0.06-19.8
NwInsghtI 30.33 +0.33 -7.3 GlbA 50.54 +0.25-12.8 ShtDurInc p 4.04 ... -2.9 HelSci 81.65 +1.72 0.3 InfProAd 27.02 +0.01 4.4 INSTTRF2030 22.85 +0.11 -9.0 DevMktsInxInst 17.67 +0.10-19.8
Tuesday, May 5, 2020
Fidelity Freedom FPA Funds Metropolitan West IntlStk 15.51 +0.08-16.8 IntlGrAdml 94.90 +0.82 -7.7 INSTTRF2035 22.84 +0.13-10.4 ExtndInst 78.12 +0.85-18.1
Net YTD Net YTD
NAV Chg %Ret Fund NAV Chg %Ret FF2020 14.97 +0.07 -7.6 FPACres 28.28 +0.14-16.4 TotRetBd 11.34 ... 4.4 LgCapGow I 43.59 +0.61 -1.0 ITBondAdml 12.33 -0.01 5.3 INSTTRF2040 22.83 +0.15-11.8 GrwthInst 92.49 +1.16 -1.2
FF2025 13.06 +0.06 -8.8 Franklin A1 TotRetBdI 11.34 ... 4.5 MidCap 83.99 +1.24-11.9 ITIGradeAdml 10.19 +0.01 3.0 INSTTRF2045 22.75 +0.16-13.1 InPrSeIn 11.01 +0.01 4.5
WshA p 41.33 +0.38-13.6 IntSmCo 14.41 +0.06-23.8 FF2030 15.96 +0.08-10.5 CA TF A1 p 7.42 +0.01 -2.0 TRBdPlan 10.66 ... 4.4 N Inc 9.58 ... -0.4 LTGradeAdml 11.45 -0.05 6.5 INSTTRF2050 22.78 +0.16-13.1 InstIdx 256.18 +2.29-10.7
Baird Funds IntSmVa 14.00 +0.05-27.6 IncomeA1 p 1.99 +0.01-13.3 MFS Funds Class I NHoriz 61.68 +1.38 3.9 MidCpAdml 183.63 +1.98-16.4 InstPlus 256.20 +2.30-10.6
Freedom2020 K 14.95 +0.06 -7.7 INSTTRF2055 22.87 +0.16-13.1
AggBdInst 11.57 -0.01 4.0 LgCo 22.01 +0.20-10.7 FrankTemp/Frank Adv ValueI 36.73 +0.34-17.3 OverS SF r 8.88 +0.04-20.6 MuHYAdml 11.06 +0.01 -4.7 InstTStPlus 59.86 +0.56-11.8
Freedom2025 K 13.04 +0.06 -8.8 IntlVal 29.04 +0.12-22.6
CorBdInst 11.80 ... 3.0 US CoreEq1 21.71 +0.16-15.8 IncomeAdv 1.97 +0.01-13.4 MFS Funds Instl R2020 20.24 +0.12 -8.4 MuIntAdml 14.21 +0.02 -0.9 MidCpInst 40.57 +0.44-16.3
Freedom2030 K 15.95 +0.09-10.4 LifeCon 20.14 +0.04 -3.8
BlackRock Funds US CoreEq2 19.52 +0.14-17.2 FrankTemp/Franklin A IntlEq 22.97 +0.11-17.6 R2025 16.08 +0.10 -9.6 MuLTAdml 11.58 +0.01 -1.7 MidCpIstPl 200.07 +2.17-16.4
Freedom2035 K 13.11 +0.09-13.0 LifeGro 32.06 +0.19-11.3
HiYldBd Inst 6.89 +0.03 -9.6 US Small 25.77 +0.05-26.2 Growth A p 105.46 +1.52 -6.0 Nuveen Cl I R2030 23.13 +0.16-10.7 MuLtdAdml 10.96 +0.01 -0.5 SmCapInst 61.99 +0.62-21.6
Freedom2040 K 9.06 +0.06-14.4 LifeMod 26.68 +0.11 -7.6
STIGradeInst 10.73 +0.01 0.9
BlackRock Funds A US SmCpVal 22.95 -0.15-33.2 RisDv A p 61.28 +0.80-11.7 HYMunBd 15.80 -0.01-10.6 R2035 16.82 +0.13-11.6
MuShtAdml 15.77 +0.01 ...
GlblAlloc p 18.01 +0.10 -6.2 USLgVa Fidelity Invest
PrmcpAdml r123.16 +1.43-14.6 PrmcpCor 22.96 +0.22-17.8 STIPSIxins 24.80 +0.02 0.4
28.84 +0.14-24.9 AMgr50% 17.44 +0.08 -6.1 FrankTemp/Franklin C Oakmark Funds Invest R2040 23.71 +0.19-12.4 STAR 25.56 +0.15 -6.5 TotBdInst
BlackRock Funds Inst Dodge & Cox Income C t 2.02 +0.01-13.3 OakmrkInt 16.53 +0.01-33.7 RealEstatAdml104.21 +0.49-20.2 11.50 -0.01 5.0
Balanc 23.00 +0.16 -6.0 Value 30.44 +0.28-19.7 TgtRe2015 14.64 +0.03 -3.6 TotBdInst2 11.41 -0.02 4.5
MultiAstIncome 10.03 +0.02 -7.2 Balanced 85.03 +0.05-14.7 SmCapAdml 61.99 +0.62-21.6
BluCh 107.96 +1.54 0.2 FrankTemp/Temp Adv Old Westbury Fds PRIMECAP Odyssey Fds TgtRe2020 30.57 +0.10 -6.0 TotBdInstPl 11.50 -0.01 5.0
StratIncOpptyIns 9.53 ... -3.5 SmGthAdml 61.16 +1.06-12.3
Income 14.20 +0.02 2.2 Contra 13.42 +0.15 -1.5 GlBondAdv p 10.09 ... -3.8 LrgCpStr 13.03 +0.11-13.5 Growth r 34.31 +0.48-16.2 TgtRe2025 18.33 +0.08 -7.6 TotIntBdIdxInst 34.36 -0.01 1.6
Bridge Builder Trust STBondAdml 10.82 ... 3.1
Intl Stk 31.64 +0.16-27.4 ContraK 13.44 +0.15 -1.5 Guggenheim Funds Tru Parnassus Fds Schwab Funds TgtRe2030 33.16 +0.16 -9.0 TotIntlInstIdx r 95.48 +0.53-19.9
CoreBond 10.71 -0.01 3.8 STIGradeAdml 10.73 +0.01 0.9
Stock 148.40 +0.18-21.9 CpInc r 8.88 +0.06-12.1 TotRtnBdFdClInst 28.19 -0.01 4.8 ParnEqFd 42.20 +0.37-10.0 S&P Sel 44.13 +0.40-10.6 TgtRe2035 20.17 +0.11-10.4 TotItlInstPlId r 95.50 +0.53-19.8
CorePlusBond 10.30 ... 2.4 STsryAdml 10.85 ... 3.0
DoubleLine Funds GroCo 22.37 +0.38 4.7 Harbor Funds PGIM Funds Cl Z TSM Sel r 49.30 +0.45-11.9 TgtRe2040 34.51 +0.21-11.8 TotStInst
Intl Eq 9.81 +0.05-18.2 TotBdAdml 11.50 -0.01 5.0 69.98 +0.66-11.8
LargeCapValue 10.95 +0.08-19.6 CoreFxdIncmI 10.82 +0.01 -1.2 GrowCoK 22.42 +0.39 4.8 CapApInst 76.79 +1.01 1.4 TotalReturnBond 14.21 ... -0.3 TIAA/CREF Funds TgtRe2045 21.47 +0.15-13.1 ValueInst
TotIntBdIdxAdm 22.90 -0.01 1.6 37.51 +0.21-19.1
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TotIntlAdmIdx r 23.88 +0.14-19.8
5GlbFxdInc 10.82 +0.01 0.8 Edgewood Growth Instituti LowP r 39.59 +0.01-20.9 IntlEq 19.91 +0.16-16.3 AllAsset 10.39 +0.08-12.2 VANGUARD ADMIRAL TgtRet2055 37.54 +0.26-13.1 WCMFocIntlGrwIns 16.99 +0.20-10.2
TotStAdml 69.97 +0.66-11.8
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TxMCapAdml147.36 +1.45-10.7
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TxMIn r 11.29 +0.07-19.8
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Yields
Rise Before
Financing
Details
BY JULIA-AMBRA VERLAINE
U.S. government-bond
yields rose ahead of the Trea-
sury Department’s announce-
ment about how it will finance
burgeoning deficits as the cor-
onavirus pandemic upends the
U.S. fiscal outlook.
The yield on the benchmark
10-year Treasury note climbed
to 0.656% from
CCREDIT 0.636%, ac-
MARKETS cording to
Tradeweb. The
yield on the 30-year bond in-
creased to 1.33% from 1.296%.
The Treasury said it ex-
pects to issue $2.99 trillion in
net marketable debt in the
second quarter, more than five
times as much as quarterly
borrowing at the height of the
2008 financial crisis. Before
February, it planned to pay
down $56 billion, highlighting
how costly the pandemic has
been and how quickly it has
unhinged the U.S. economy.
While most new borrowing
to fund economic relief efforts
has been funded through
short-term Treasury bills, Wall
Street analysts expect the
Treasury on Wednesday to an-
nounce increased auction sizes
and detail plans around the
auction of 20-year bonds ex-
pected later in the month.
“We look for the Treasury
to use the May 6 refunding to
begin laying out a road map
for the coming years even as
uncertainty about the final
cost of the Covid slowdown
remains uncertain,” said Gen-
nadiy Goldberg, U.S. rates
strategist at TD Securities in
New York.
The centerpiece of Wednes-
day’s refunding announcement
will be the reintroduction of
the 20-year bond, which hasn’t
been issued regularly since
1986. The agency said in Janu-
ary it would revive the bond
as it sought ways to attract
additional investment.
That decision has given the
Treasury more room to oper-
ate as it seeks to borrow more
money. Jay Barry, interest-rate
strategist at JPMorgan Chase,
estimated that gross coupon
issuance will rise $423 billion
in 2020 from last year—with
about 25% of the increased
borrowing capacity coming
from the 20-year bond.
Analysts estimate the 20-
year bond will make its debut
at around $12 billion this
month. Mr. Barry said the
Treasury is expected to adjust
auction sizes of existing secu-
rities over the coming quarter
to respond to borrowing needs
as the pandemic evolves.
The Treasury has relied on
short-dated Treasury bills to
plug the gap.
Investors said there is likely
to be strong demand for
no
shorter-term debt from
money-market funds that
scoop up government bonds.
The amount of U.S. govern-
ment bills outstanding is
about to jump nearly 25% in
coming months, analysts said.
Traders are also keeping an
eye out for other new prod-
ucts aimed at funding pro-
jected growing federal budget
deficits.
Flash Crash
Fixes Help
Markets
Continued from page B1
worked,” said Tyler Gellasch,
executive director of Healthy
Markets Association, an inves-
tor group.
On the afternoon of May 6,
2010, the Dow Jones Industrial
Average plunged nearly 1,000
points in minutes, erasing
about $1 trillion in market
value, only for the index to re-
bound just as quickly—all for
no clear reason.
Regulators eventually identi-
fied a confluence of factors be-
hind the flash crash. These in-
cluded an abnormally huge
trade in stock-market futures
by a firm later identified as as-
set manager Waddell & Reed
Financial Inc.; manipulative fu-
tures trading that exacerbated
the impact of that trade; and
electronic market-making firms
pulling back from quoting
* * * * *
Oil Extends Rally With 20% Gain
BY DAVID HODARI
Oil prices extended their re-
cent recovery, lifted by hopes
for a bounce in fuel consump-
tion with economies hard hit
by the coronavirus pandemic
slowly reopening for business.
Futures that will deliver
U.S. crude in June gained 20%
to $24.56 a barrel, climbing
for the fifth consecutive ses-
sion. The
COMMODITIES price of the
June contract
has nearly doubled during that
stretch, continuing a period of
outsize volatility.
Recent gains have paused a
weekslong crash that was
mainly driven by worries
about North America’s main
hub for oil storage running out
of space. On April 20, U.S.
crude futures for delivery the
following month fell below $0
a barrel for the first time in
history, effectively meaning
holders were paying buyers to
take crude off their hands.
Brent crude, the benchmark
for international energy mar-
kets, rose 14% to a three-week
high of $30.97 a barrel Tues-
day.
Hopes on Reopening Economy Propel Stocks
Stocks rose for the second
straight day, buoyed by opti-
mism about a gradual reopen-
ing of businesses around the
country.
By Anna Isaac,
Joanne Chiu
and Akane Otani
on
us ,
California detailed initial
l
steps to ease restrictions that
e
al a
have been in place for weeks
to stop the spread of the coro-
navirus pandemic.
ci on
Retailers including clothing
stores, bookstores, sporting-
goods stores
TUESDAY’S and florists can
MARKETS reopen for
er s
curbside
pickup as soon as Friday, Gov.
m er
Gavin Newsom said. Other
states including Florida also be-
gan allowing businesses to re-
open or laid out plans to do so.
The moves give “investors
m rp
more confidence that we’re at
the worst point in the down-
turn and that things should
start to improve,” said Lee
Hardman, currency analyst at
co Fo
MUFG Bank.
Still, Mr. Hardman cau-
tioned that a fresh surge in
cases could derail investors’
confidence and lead to a far
more protracted economic re-
covery.
Other analysts said it would
take some time to understand
how effectively various coun-
tries are able to reopen busi-
nesses without risking a
pickup in infections.
n-
“May, June will be the turn-
ing point in terms of restart-
ing global economic activity,
and that’s really what the
market is looking at,” said Ste-
fan Hofer, chief investment
strategist at LGT Bank Asia.
“What we’re all focusing on is
the pace with which you have
successful restarts of these
economies and then also very
important is that there’s no
second wave of Covid-19.”
The Dow Jones Industrial
Average climbed 133.33 points,
or 0.6%, to 23883.09, finishing
prices while stocks were in free
fall.
Caught flat-footed, the Secu-
rities and Exchange Commis-
sion launched a flurry of initia-
tives to prevent a repeat of the
flash crash.
One of its main efforts re-
mains incomplete: the Consoli-
dated Audit Trail, a database of
trading information designed to
help the SEC investigate com-
plex market events, which has
faced repeated delays and criti-
cism that it could endanger the
privacy of U.S. investors.
But other overhauls fared
better. Within months of the
flash crash, the SEC banned
“stub quotes,” a practice in
which electronic market mak-
ers would post extremely low
or high price quotes for stocks
on exchanges that they didn’t
think anyone would actually at-
tempt to trade against. Stub
quotes led to bizarre price
moves during the flash crash,
such as Accenture PLC briefly
trading at a penny and Apple
Inc. rocketing up to $99,999.
The SEC also tried to com-
bat such extreme price moves
by implementing single-stock
circuit breakers, which halt
MARKETS
Oil prices are receiving a
boost on two fronts. Demand
for products such as gasoline
and diesel is ticking up as
parts of the U.S. and Europe
relax restrictions on move-
ment and the Chinese econ-
omy recovers. At the same
time, the production of crude
oil has dropped.
An agreement to limit out-
put among members of the Or-
ganization of the Petroleum
Exporting Countries and Group
of 20 nations, including Rus-
sia, kicked in on May 1. Low
prices have prompted produc-
ers in the U.S., Norway and
elsewhere to pump less oil.
“You have low crude pro-
duction in North America in
reaction to the very low
prices,” said Olivier Jakob,
managing director at consult-
ing firm PetroMatrix. Energy
Department data show “some
improving implied demand in
the U.S. as they soften shelter-
in-place policies,” he added.
Global oil demand has risen
by 2.5 million barrels a day
from its trough in early April,
according to analysts at Gold-
man Sachs Group.
Production is falling at the
Shares rose 1.4% after the coffee company said it plans to reopen more than 85% of its U.S. company-operated stores by the end of this week.
off its high for the session. The
S&P 500 added 25.70 points, or
0.9%, to 2868.44 and the Nas-
daq Composite advanced 98.41
points, or 1.1%, to 8809.12.
Among individual stocks,
Starbucks jumped $1.01, or
1.4%, to $72.90 after the coffee
company said it plans to re-
open more than 85% of its U.S.
company-operated stores by
the end of this week.
Online furniture retailer
Wayfair rose $31.77, or 24%, to
$165.88 and education-technol-
ogy firm Chegg climbed $14.13,
or 32%, to $57.92 after their
earnings reports.
Both companies have seen a
pickup in business as the pan-
demic has forced shoppers to
turn from bricks-and-mortar
stores to e-commerce and
pushed students to take classes
from home.
Average daily trading volume of U.S. equities market, by month
15 billion shares
March 2009
Past record: 12.3B
10
5
0
2010
Source: Rosenblatt Securities
trading in stocks for five or 10
minutes if they rise or fall too
quickly. On some volatile days
in March, such “limit up/limit
down” halts took place hun-
dreds of times, pausing stocks
like Carnival Corp. and Delta
Air Lines Inc. The halts irri-
tated some traders, but others
say they damped volatility at a
time of huge uncertainty in the
markets.
“U.S. regulatory tools have
evolved to address the chal-
Crude-oil futures prices
$80 a barrel
60
40
20
0 nage, potentially making crude
–20
WTI
–40
J F M A
*Now and the day after the price on the contract expiring in April fell below zero.
Note: Front-month contracts
Source: FactSet
same time.
OPEC and its allies agreed
to cut output by 9.7 million
barrels a day, or 13% of global
supply.
Producers elsewhere have
stopped pumping an addi-
tional 3.4 million barrels a day,
said Martijn Rats, a commodi-
ties strategist at Morgan Stan-
ley.
There are other signs that
Share-price and index change, Tuesday
Chegg
Wayfair
Starbucks
S&P 500
0%
Source: FactSet
Elsewhere, the pan-conti-
nental Stoxx Europe 600 rose
2.1%, led higher by German
and French stocks.
In Asia, Hong Kong’s Hang
Seng Index closed up 1.1%,
while stock markets in main-
land China, Japan and South
Korea were closed for holidays.
March 2020
New: 15.6B
’15
lenges that our markets have
confronted since May 2010,”
Brett Redfearn, director of the
SEC’s trading and markets divi-
sion, said. “In March, these
tools reaffirmed their value as
they helped to ensure that, de-
spite significant market volatil-
ity and stress, our markets con-
tinued to function without the
types of glitches or dislocations
that could undermine investor
confidence.”
Wall Street executives say a
WTI futures prices*
$35 a barrel
May 5
30
April 21
Brent 25
20
15
10
M May 2020 ’21
Expiration date
the oil market has turned a
corner. The gap between spot
prices for U.S. crude, or what
it costs to buy a barrel of oil
today, compared with the
price of futures contracts,
which are based on prices
down the road, has narrowed
after a dramatic widening in
April. That has reduced the fi-
nancial incentive for traders to
put oil into storage.
5 10 15
Late morning Wednesday in
Hong Kong, the Hang Seng was
up 0.6%. The Tokyo market re-
mains closed for a holiday. S&P
500 and Dow Jones futures
were down slightly.
Some investors remain
skeptical of global markets’ re-
cent turnaround.
big reason exchange glitches
have become less common in
recent years is a rule called
Regulation SCI, short for Sys-
tems, Compliance and Integrity.
Passed by the SEC in 2014, it
forced exchanges and some
other trading platforms to no-
tify the agency about malfunc-
tions, conduct more system
testing and prepare backup
plans in the event that disas-
ters disrupted operations. The
NYSE implemented such a plan
in March, when Covid-19 infec-
tions forced the closure of its
trading floor.
In the late 2000s, “ex-
’20 changes would go down or have
operational issues all the time,”
Bryan Harkins, an executive
vice president at exchange op-
erator Cboe Global Markets
Inc., said in an interview. “Now,
I’m not saying exchanges don’t
have issues, but they’re fairly
minor and it’s rare to have an
exchange outage that is that
newsworthy.”
Large erroneous trades,
which can inadvertently move
stocks or blow up firms, have
also grown rarer since the flash
crash, said Joe Wald, a manag-
ing director at BMO Capital
Wednesday, May 6, 2020 | B11
Investors are likely to re-
main cautious, analysts say.
Driving activity remains sub-
dued in India, Japan and Saudi
Arabia, according to Mr. Rats,
even as cars return to the
roads in the U.S., Brazil and
Russia.
Many oil funds have also
stopped trading near-dated oil
futures after last month’s car-
prices even more volatile as
the May 20 expiration date for
the June futures draws nearer.
U.S. crude futures for July
rose 16% to $26.49 a barrel
Tuesday.
Oil-storage capacity also re-
mains an issue. Traders were
looking ahead to weekly gov-
ernment data on U.S. crude
stockpiles slated for Wednes-
day.
“The problem of storing
WTI hasn’t gone away and it
will get worse over the next
few weeks,” said Caroline
Bain, commodities economist
at Capital Economics. “I don’t
think we’re out of the woods
yet.”
—Amrith Ramkumar
and Joe Wallace
contributed to this article.
.
ly
GABBY JONES/BLOOMBERG NEWS
20 25 30 35
Stock valuations look ex-
pensive as “the world and the
financial markets have not
priced in a second wave” of in-
fections, according to David
Gaud, Asia chief investment
officer and head of discretion-
ary portfolio management at
Pictet Wealth Management.
Markets. He said much of the
improvement stemmed from a
2010 SEC rule that forced bro-
kers to check for risky or mis-
configured trades before exe-
cuting them.
“Back then you had a lot
more fat-finger errors that hap-
pened,” he said.
Ironically, such an upgrade
caused one of the few trading
hiccups to hit a Wall Street
firm during this year’s corona-
virus-fueled volatility.
On March 12, JPMorgan
Chase & Co. suffered a glitch
around 4 p.m. that caused some
clients who were trying to buy
or sell stocks at the close of the
trading day to experience de-
lays in learning whether the
bank had executed their orders.
The problem stemmed from
new servers that JPMorgan had
just added “to accommodate
the high market volume,” the
bank said in a note to clients
seen by The Wall Street Jour-
nal. Though meant to bolster
JPMorgan’s capacity to handle
trades, the servers hadn’t been
configured properly, causing
the glitch, the March 13 note
said. JPMorgan declined to
comment.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B12 | Wednesday, May 6, 2020
CHRIS O’MEARA/ASSOCIATED PRESS
Business activity, new orders and employment were at their lowest levels in the 24-year history of the data.
Service Economy Slips
Damage to sector will help shape the recovery
When a recession comes, it is
usually manufacturers and other
goods-producing industries that
get kicked in the teeth. This time it
is services’ turn.
The Institute for Supply Man-
agement said that its index for
nonmanufacturing activity fell to
41.8 last month from 52.5 in
March, marking its lowest level
since March 2009. Anything below
50 represents a contraction in ac-
tivity. As with its companion man-
ufacturing gauge that came out
last week, the index was again dis-
torted by a slowdown in supplier
delivery times. Usually when deliv-
eries slow it is a sign that suppli-
ers are struggling to meet rising
demand and business is picking up.
Now it is because the novel corona-
virus crisis has disrupted supply
chains. The other components of
the index—business activity, new
orders and employment—were at
their lowest levels in the 24-year
history of the data.
All but three of the 22 industries
in the nonmanufacturing report are
in the services sector, and the drop
it is showing reflects the hit the
sector has taken from the coronavi-
Private Equity Finds
Promise in Time of Distress
Private-equity firms have put up
some ugly numbers in earnings re-
ports so far. Investors should look
past them.
Apollo Global Management,
Blackstone Group and Carlyle
Group reported huge net losses in
the first quarter—more than $5 bil-
no
lion collectively. Those losses were
mainly driven by declines in marks
of the on-paper value of their in-
vestments. That performance over
the long run is what determines the
value of these firms. If they can’t
realize gains on investments they
earn less, can’t fundraise and don’t
generate fees.
In the meantime, big private-eq-
uity firms are continuing to gener-
ate substantial management fees
that represent actual money in the
pockets of the firms and, via poten-
tial future dividends, investors.
While declines in asset values do af-
fect the base on which management
fees are generated, there are sub-
stantial offsets to that for now.
For one, the firms have ample
“dry powder,” or uninvested capital,
more than $250 billion between the
three firms. That means they can
keep putting money to work. The
firms’ deals with limited partners
can offset the impact of mark-to-
market declines on fees; Apollo’s fee-
generating assets under manage-
ment fell 2% from the prior quarter,
versus a 5% drop in total assets.
As for their investment perfor-
mance, the numbers in the first
quarter certainly weren’t pretty. But
in the context of what the market
has done, they aren’t outsize so far.
Blackstone and Apollo reported
21.6% declines in their corporate
private-equity portfolios in the first
quarter. That was about the same
as the S&P 500, which was down
20% in the quarter. And their other
classes of investments, such as cor-
porate credit and real estate, were
down far less than the S&P 500.
There are some relevant caveats,
too. Energy was responsible for the
bulk of Blackstone’s corporate pri-
vate-equity decline. But much of the
firm’s energy-portfolio investments
HEARD STREET
FINANCIAL ANALYSIS & COMMENTARY
rus crisis. In past recessions it has
always been goods-producing sec-
tors such as manufacturing and
construction that have suffered the
most and that have driven declines
in activity—even during the last re-
cession, which was unusually harsh
for services. Commerce Depart- on
ment figures show the 2.9% decline
in private service-sector activity
back then was dwarfed by an 11.7%
drop in goods-providing activities.
us ,
But one of the things that makes
l
this recession different, and also so
e
al a
severe, is that it is being driven by
losses in the service sector. Shut-
downs and other social-distancing
ci on
measures are walloping areas of
the economy that were better
shielded in previous downturns.
People, feeling pinched in the past,
may have deferred big-ticket pur-
er s
chases like new cars, but they
didn’t entirely stop going to res-
m er
taurants, much less getting their
hair cut.
Part of why that is so bad for
the economy is that the private
service sector is so large, account-
m rp
ing for about 70% of gross domes-
tic product, compared with about
17% for the goods-producing sector.
co Fo
Share-price performance,
past three months
10%
Apollo Global Management
n-
Blackstone Group
0
Carlyle Group
–10
–20
–30
–40
–50
March April May
Source: FactSet
sit in energy funds, which means
the broader limited-partner base
isn’t exposed to losses in the sector.
The biggest hit to distributable
earnings will be from realizing in-
vestments. It will be harder to sell
assets, like taking a private com-
pany public, in this market. But the
decline in firms’ share prices re-
flects this. Over the past three
months, Apollo shares are down
15%, Blackstone’s are down 22% and
Carlyle’s are off by 29%.
What investors should be consid-
ering now is whether returns on
new investments can make up for
any permanent impairment of exist-
ing ones. Times of distress are
when private equity has shined.
The median annual returns on
funds raised in 2009 were 13.9%,
versus 8.1% on 2006 funds, accord-
ing to consulting and advisory firm
EY. EY noted private-equity acquisi-
tions fell by 80% from 2007 to
2009, meaning some funds didn’t
take full advantage of distressed
prices. This time, by contrast, large
private-equity firms are already
making new investments. Apollo
made $40 billion in gross purchases
in the first quarter, mostly in
March, and $10 billion more in April
alone. It helps that the big firms are
so stocked with dry powder.
—Telis Demos
ON
THE
Moreover, more than five times as
many employees work in the pri-
vate service sector as the goods-
producing sector. Friday’s employ-
ment report will reflect how bad
the damage has been. An analysis
of data from scheduling and time-
clock software provider Homebase
conducted by economists André
Kurmann, Etienne Lalé and Lien Ta
suggests it will show two service-
sector industries alone—leisure
and hospitality and retail—shed
about 20 million jobs last month.
The damage to the service sec-
tor will also shape the recovery,
when it comes. After a typical re-
cession ends, there is usually a
bounce-back in spending as people
and businesses catch up on de-
ferred spending. That will certainly
happen to an extent when this re-
cession ends but, as economist Ga-
briel Mathy has pointed out, much
of the business that has been lost
in this recession will be gone for
good. People may flock to restau-
rants but not enough to make up
for all the meals out they didn’t
have. And they will never make up
for the missed haircuts.
—Justin Lahart
Eyeing a rising power across
the Pacific with radically different
values, a U.S. administration aims
to boost economic integration
with friendly nations in the region
as a counterweight. Key partici-
pants include Japan, Australia,
New Zealand and Vietnam.
But we aren’t talking about the
defunct Trans-Pacific Partnership,
or TPP, which was championed by
President Obama and torpedoed
by President Trump.
Last week, Secretary of State
Mike Pompeo said the U.S. was
Disney’s Show Won’t Go On Soon
Walt Disney Co.’s investors may
be finally getting the message.
Its quarterly results, reported
Tuesday for the quarter ended
March 28, were but a taste of the
damage the company faces from the
coronavirus pandemic. Disney’s
theme park segment revenue fell
10% year over year to $5.5 billion.
That alone was notable; combined
revenue from domestic and interna-
tional parks hasn’t fallen on year
over year since at least 2010, ac-
cording to S&P Global Market Intel-
ligence. That was with the com-
pany’s domestic parks remaining
open until mid-March.
Pain was felt in other business
segments, though it was masked
somewhat by the company’s acqui-
sition of 21st Century Fox assets in
last year’s March quarter. Disney
noted that ad revenue and viewer-
ship were down for ESPN as major
sporting events were canceled,
while closure of movie theaters af-
fected films like Pixar’s “Onward”
that was released in March.
Overall, the company estimates
the pandemic sapped about $1.4 bil-
lion from operating income in the
quarter. While the fast-growing Dis-
ney+ streaming service is one busi-
ness doing well in the current envi-
ronment, it is still losing money and
is expected to do so for the next
Sysco Paints Dire
Scene for Restaurants
Food-service company’s earnings suggest many
coronavirus-related closures won’t be temporary
It is no secret that the coronavi-
rus crisis has crushed the restau-
rant business. Earnings from one of
its largest suppliers should dash
hopes for a quick recovery.
Food-service giant Sysco re-
ported sales of $13.7 billion in its
third quarter, which ended on
March 28. That is down 6.5% from a
year earlier and the biggest quar-
terly decline since 2009.
Sysco said that the company ex-
perienced a “dramatic” fall in sales
in the final days of the quarter. Sales
were down about 60% from a year
earlier at the nadir in late March.
More than 60% of Sysco’s sales had
been to restaurants recently, while
the remaining customers were insti-
tutions such as schools, hospitals
and nursing homes.
In response to the sudden drop
in demand, the company has laid
off or furloughed one-third of its
workforce; the company had nearly
70,000 employees last summer.
Shares fell 6.1% to $50.54 in
NYSE trading Tuesday, but unlike
many of its restaurant customers,
Sysco itself is likely to emerge from
the crisis in relatively good shape.
Free cash flow through the first
three fiscal quarters was $500 mil-
lion. While significant cash burn in
the current quarter is likely, it had $6
Sysco share price
$90
80
70
60
50
40
30
Jan. Feb.
Source: FactSet
OVERHEARD
looking at how to restructure supply
chains with the help of friendly na-
tions including Japan, Australia, New
Zealand and Vietnam. On Monday,
Reuters reported the U.S. is pushing
for a new alliance of “trusted part-
ners,” including companies and civil
society groups operating under com-
mon standards, called the Economic
Prosperity Network, as a way to re-
duce dependence on China-centric
supply chains.
A smaller TPP still exists, called
the Comprehensive and Progressive
Agreement for Trans-Pacific Partner-
Daisy Ridley in Disney/Lucasfilm’s ‘Star
Wars: The Rise of Skywalker.’
few years.
There are two schools of thought
on Disney. One is that the storied
company and its brands have sur-
vived numerous economic down-
turns, even a world war. This view
holds that the company’s many fans
will return quickly once the pan-
demic ebbs. Chairman Robert Iger
stressed this, stating on Tuesday’s
call that “we believe people will re-
sume familiar activities once this
pandemic ends.”
Wall Street seems to believe this
THE WALL STREET JOURNAL.
billion in cash and other sources of
liquidity as of Tuesday morning.
Sysco has stopped its share-buyback
program but hasn’t halted dividend
payments. Some of its products can
be sold in new channels, such as gro-
cery stores. It isn’t hard to imagine
Sysco gaining market share as
weaker competitors struggle.
Meanwhile, sales picked up no-
ticeably in April: The comparable
weekly sales decline had improved
by 15 percentage points for the
week ended April 25, and finance
chief Joel Grade told Wall Street
analysts that he expects further im-
provement in May.
That won’t be much comfort for
small businesses that buy from
Sysco. Those sales gains are skewed
toward restaurants with drive-
through operations, which tend to
be larger chains.
At any rate, total sales are still
down sharply from a year earlier, and
profit margins in the food-service
.
business are razor-thin even in nor-
mal times: Sysco earned an operating
ly
margin of less than 4% in the fiscal
second quarter. Margins are even
lower for many of their customers.
Given that reality, the closures
of most small eateries won’t be
temporary.
—Charley Grant
March April May
ship, or CPTPP, which includes all
of the original participants apart
from the U.S. A logical next
step—albeit a difficult one politi-
cally—would be for the Trump ad-
ministration to rejoin it.
Many economists have long ar-
gued that any attempt to con-
front China unilaterally on trade is
doomed to fail.
The TPP is dead and the
CPTPP is old news. Long live the
Comprehensive and Progressive
Network for Trans-Pacific Eco-
nomic Prosperity.
as well. Current analyst projections
tabulated by FactSet have Disney’s
revenue still managing 2% growth
in the current fiscal year ending in
September, with 12% growth pro-
jected for next year. This is also evi-
denced in Disney’s share price
which, while down 30% this year,
has fared much better than peers in
DISNEY/LUCASFILM/ASSOCIATED PRESS
the theme park, cruise ship or
movie theater categories.
The more realistic school of
thought is that a global pandemic is
unlike any challenge the company
has faced. Media analyst Michael
Nathanson noted Monday that the
current situation “creates signifi-
cant and unrivaled earnings risk for
the foreseeable future.”
Much of Disney’s business rides
on the ability to draw people into
crowded spaces like theme parks,
hotels, ships and movie theaters.
The return of such mass-entertain-
ment options at any point this year
remains questionable. Once they do,
companies like Disney will likely
face new limits in terms of how
many people they can serve at any
given time. Disney’s share price
slipped 2.3% Tuesday following the
results, which included suspension
of the next dividend payment pay-
able in July. A happy ending for this
story isn’t coming soon.
—Dan Gallagher