1
****** THURSDAY, JULY 16, 2020 ~ VOL. CCLXXVI NO. 13 WSJ.com HHHH $4.00 DJIA 26870.10 À 227.51 0.9% NASDAQ 10550.49 À 0.6% STOXX 600 373.87 À 1.8% 10-YR. TREAS. g 5/32 , yield 0.629% OIL $41.20 À $0.91 GOLD $1,811.40 À $0.80 EURO $1.1412 YEN 106.94 China’s Economy Resumes Growth Better-than-expected rise in GDP of 3.2% follows historic drop when virus struck Scrabble Traditionalists Decry Baby Dragons i i i Hoping to draw new players, mobile version now features gems, gnomes One of the hottest new mo- bile games has falling tiles, sparkling jewels and a chat function where players can get to know one another. That game is Scrabble. The new “Scrabble Go” app was pushed out last month, when its red-and-tan decade- old predecessor was decom- missioned. The candy-colored, fast-paced update was meant to interest younger players in an older game. It has alienated many vet- eran Scrabblers in the process. “It’s an obscenity,” said Josh Bernoff, a 61-year-old business author. “It’s like be- ing inside the small intestine of a unicorn that just ate a bunch of rainbow Skittles.” Scrabble Go has spawned thousands of 1-star reviews on Google Play and the App Store Please turn to page A8 BY VALERIE BAUERLEIN phabet Inc.’s Google, and Ama- zon.com Inc. But Wednesday’s setback might at the same time em- bolden Ms. Vestager and other EU leaders in their push to create new regulations for tech companies because they argue that existing rules are insuffi- cient to bring big tech compa- nies to heel in areas ranging from competition to taxes. The case stems from a 2016 decision by the European Commission, the bloc’s top an- titrust enforcer, which said Please turn to page A7A Apple Inc. won a major bat- tle with the European Union when the bloc’s second-high- est court sided with the U.S. company over a €13 billion ($14.8 billion) tax bill EU anti- trust officials had said the company owed to Ireland. The decision was a rebuke to Margrethe Vestager, who is leading the charge at the Eu- ropean Commission to rein in alleged abuses by big tech companies including Apple, Al- BY VALENTINA POP AND SAM SCHECHNER Apple Wins Tax Case, Dealing a Blow to EU work: a packet of practice college-prep ques- tions she printed from the internet. “I’m educating him the best way I can,” said Ms. Bunton, a 41-year-old single mother. “I don’t want him to be behind.” With the next academic year quickly ap- proaching, school districts and parents ev- erywhere are racing to figure out how to re- sume learning during the coronavirus pandemic—with the interruption that up- ended the last school year beginning to look like a longer-term disruption. Los Angeles’s Please turn to page A8 JACKSON, Miss.—After schools shut down in March, LaKenya Bunton would get home around 7 a.m. from an overnight quality-con- trol job at a factory, doze for a few hours, then become teacher to her 16-year-old son, Amarrius. Her son, a rising sophomore, had received no remote-learning materials from his school and didn’t hear from most of his teachers. Ms. Bunton’s method included collecting Am- arrius’s cellphone and handing him the day’s BY TAWNELL D. HOBBS Remote Learning Widens America’s Education Gap A district of mostly Black, low-income students is hard hit ing incident in Twitter’s his- tory, began shortly before 4 p.m. EDT, when compromised accounts—many of them re- lated to the digital currency bitcoin—began posting mes- sages requesting money be sent to cryptocurrency accounts. The attacks quickly spread to more prominent accounts, with the bogus messages sometimes receiving thousands of likes be- fore they were taken down, only to be posted again a short while later, sometimes on the same account. Twitter’s security account posted around 5:45 p.m. EDT that the company was investi- gating the incident and taking steps to fix it. Within roughly a half-hour, the company took the extraordinary step of limit- ing posts from verified ac- counts with blue check marks, which Twitter designates for more prominent users. Twitter later said it believed the hackers perpetrated the at- tack by targeting employees who had access to internal sys- tems and tools. The hackers may have accessed information or engaged in other malicious activity, Twitter said, adding it was still investigating. The company didn’t say how long the hackers had been able to access its internal sys- tems. Twitter said it had lim- ited access to internal systems in response to the hack and locked compromised accounts. “Tough day for us at Twit- Please turn to page A4 Twitter Inc. was hit with a widespread attack Wednesday that allowed hackers to take over an array of accounts in- cluding those of politicians, billionaires and celebrities such as Joe Biden, Barack Obama, Bill Gates, Kanye West and Elon Musk, as well as Ap- ple Inc. and other companies. The attack, which security experts called the worst hack- BY EUIRIM CHOI AND ROBERT MCMILLAN Cyberattack on Twitter Hits Titans of Business, Politics workers to wear masks, but like most retailers, they previ- ously followed local guidelines for shoppers. “We recognize additional precautions are needed to protect our coun- try,” Kroger said. Other chains made similar moves after Walmart’s an- nouncement Wednesday at other chains, including Kohl’s Corp., which operates about 1,000 department stores, and Panera Bread, which has about 2,000 restaurants. Best Buy Co. and Starbucks Corp. had mask rules that kicked in on Wednesday. There is scientific and medi- cal consensus that masks are critical in slowing the virus’s spread. The federal Centers for Disease Control and Prevention recommends everyone wear a face covering in public, espe- cially indoors and when social distancing isn’t possible. Presi- dent Trump, a Republican who wore a mask in public for the Please turn to page A2 Walmart Inc. and Kroger Co. will require customers to wear face coverings inside all their U.S. stores, joining a growing chorus of big busi- nesses and state leaders decid- ing that masks are needed to battle the surge in coronavirus cases and calling for a na- tional policy. The retail giants, which op- erate more than 8,000 stores across the country, said they were adopting their own mask requirements to protect their staff and customers. Walmart said a lack of federal rules had left it with a patchwork of lo- cal regulations. “We know this is a simple step everyone can take for their safety and the safety of others,” it said. They join major U.S. air- lines and a number of gover- nors, even those who were ini- tially hesitant to do so, in adopting mask requirements to stop the spread of the re- spiratory disease, which has killed more than 136,000 in the U.S. Walmart and Kroger have kept their stores open through the pandemic and required BY DAVE SEBASTIAN AND SHARON TERLEP Walmart, Kroger To Require Masks In All U.S. Stores Jamya Eubanks with a math workbook that her mother bought to help with her schoolwork. ANDREA MORALES FOR THE WALL STREET JOURNAL Once spared, Arizona now suffers............................................ A3 Bursting hospitals compound risks of virus.............................. A6 Some fret as offices beckon employees .................................... B1 PERSONAL JOURNAL. BEIJING—China has be- come the first major economy to return to growth since the coronavirus started sweeping the world earlier this year. China on Thursday reported growth of 3.2% for the second quarter from a year earlier, as authorities reaped the benefits of an aggressive campaign to eradicate the virus within its borders. In sequential terms, China’s second-quarter growth in gross domestic product repre- sented an 11.5% rebound from the first three months of the year, according to data re- leased Thursday by Beijing’s National Bureau of Statistics. For the first six months of the year, China’s economy con- tracted by 1.6% compared with the first half of 2019. The strong growth figure for the three months ended June 30 beat economists’ me- dian estimate of 2.6% growth and was at the top end of an unusually wide range of fore- casts, from a contraction of 3.1% to growth of 3.5%. It followed a historic 6.8% year-over-year economic con- traction in the first three months of the year, when Bei- jing shut down the country in late January as the coronavi- rus spread across China from Please turn to page A7 BY JONATHAN CHENG TRAVEL ENTERTAINMENT The Middle Seat: Flying is safer than you think, but risks remain. A9 GIL COHEN-MAGEN/AFP/GETTY IMAGES CONTENTS Arts in Review... A13 Business News B3,5-6 Crossword.............. A14 Heard on Street. B12 Markets..................... B11 Opinion.............. A15-17 Personal Journal A9-12 Sports ....................... A14 Streetwise................ B6 Technology............... B4 U.S. News............. A2-6 Weather................... A14 World News.... A7-7A s 2020 Dow Jones & Company, Inc. All Rights Reserved > What’s News As the pandemic pushes hospitals in the South and West near capacity, the ur- gent need for available beds has stranded patients in emergency rooms, scram- bled ambulances and forced patients to relocate hun- dreds of miles to relieve overcrowded wards. A6 Senior White House trade adviser Navarro criticized Fauci in an opinion column that the White House said wasn’t authorized. A6 Biden’s lead over Trump reached double digits this month as the president’s ap- proval rating declined, ac- cording to a new Wall Street Journal/NBC News poll. A4 The president said he is replacing his campaign man- ager, a move that comes less than four months before the election. Bill Stepien will take over from Brad Parscale. A4 Trump said his adminis- tration has completed its up- date to the National Environ- mental Policy Act, including changes that will mandate deadlines for completing environmental reviews. A3 The president renewed his fight against a New York state grand-jury sub- poena for financial records, including tax returns. A4 The encounter between George Floyd and police esca- lated quickly after an officer drew his weapon, according to police body-cam footage. A5 Justice Ginsburg was released from a Baltimore hospital after an overnight stay for treatment for a possible infection, the Su- preme Court said. A5 C hina has become the first major economy to return to growth since the coro- navirus began sweeping the globe, posting 3.2% growth in GDP for the second quar- ter from a year earlier. A1 Twitter was hit with a widespread attack that al- lowed hackers to take over an array of accounts including those of politicians, billion- aires and celebrities, as well as Apple and other firms. A1 Apple won a major battle with the EU as a court sided with the company over a $14.8 billion tax bill that EU antitrust officials had said was owed to Ireland. A1 Walmart and Kroger will require customers to wear face coverings inside all their U.S. stores amid the surge in coronavirus cases. A1 American Airlines told 25,000 workers that their jobs are at risk after federal aid expires Oct. 1, as air- travel demand falls again. B1 Goldman, buoyed by its Wall Street roots, posted near-record quarterly reve- nue of $13.3 billion, with profit remaining steady. B1 U.S. stocks rose, with the Dow industrials and S&P 500 both gaining 0.9%, while the Nasdaq added 0.6%. B11 Wirecard touted partner- ships in releases that were in some cases misleading or promoted without the agree- ment of the firms named. B1 Chipotle said it is add- ing as many as 10,000 em- ployees as it opens more stores with drive-through lanes for digital orders. B1 Business & Finance World-Wide Sabotage Probed in String of Fires, Explosions in Iran ON ALERT: Tehran is investigating a blaze, shown on Iranian state television, at a port Wednesday, the latest of several fires and explosions that have raised suspicions of coordinated sabotage targeting the nation’s infrastructure. A7A IRIB NEWS AGENCY/AGENCE FRANCE-PRESSE/GETTY IMAGES P2JW198000-6-A00100-17FFFF5178F

DJIA À NASDAQ À STOXX600 10-YR.TREAS. OIL À …tify Mr. Wenig by name. “Weare going to crush this lady,” an unnamed eBayexecu-tivetextedonApril 10,2019, to another unnamed eBay

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Page 1: DJIA À NASDAQ À STOXX600 10-YR.TREAS. OIL À …tify Mr. Wenig by name. “Weare going to crush this lady,” an unnamed eBayexecu-tivetextedonApril 10,2019, to another unnamed eBay

* * * * * * THURSDAY, JULY 16, 2020 ~ VOL. CCLXXVI NO. 13 WSJ.com HHHH $4 .00

DJIA 26870.10 À 227.51 0.9% NASDAQ 10550.49 À 0.6% STOXX600 373.87 À 1.8% 10-YR. TREAS. g 5/32 , yield 0.629% OIL $41.20 À $0.91 GOLD $1,811.40 À $0.80 EURO $1.1412 YEN 106.94

China’sEconomyResumesGrowthBetter-than-expectedrise in GDP of 3.2%follows historic dropwhen virus struck

Scrabble TraditionalistsDecry Baby Dragons

i i i

Hoping to draw new players, mobileversion now features gems, gnomes

One of the hottest new mo-bile games has falling tiles,sparkling jewels and a chatfunction where players can getto know one another.

That game is Scrabble.The new “Scrabble Go” app

was pushed out last month,when its red-and-tan decade-old predecessor was decom-missioned. The candy-colored,fast-paced update was meant

to interest younger players inan older game.

It has alienated many vet-eran Scrabblers in the process.

“It’s an obscenity,” saidJosh Bernoff, a 61-year-oldbusiness author. “It’s like be-ing inside the small intestineof a unicorn that just ate abunch of rainbow Skittles.”

Scrabble Go has spawnedthousands of 1-star reviews onGoogle Play and the App Store

PleaseturntopageA8

BY VALERIE BAUERLEIN

phabet Inc.’s Google, and Ama-zon.com Inc.

But Wednesday’s setbackmight at the same time em-bolden Ms. Vestager and otherEU leaders in their push tocreate new regulations for techcompanies because they arguethat existing rules are insuffi-cient to bring big tech compa-nies to heel in areas rangingfrom competition to taxes.

The case stems from a 2016decision by the EuropeanCommission, the bloc’s top an-titrust enforcer, which said

PleaseturntopageA7A

Apple Inc. won a major bat-tle with the European Unionwhen the bloc’s second-high-est court sided with the U.S.company over a €13 billion($14.8 billion) tax bill EU anti-trust officials had said thecompany owed to Ireland.

The decision was a rebuketo Margrethe Vestager, who isleading the charge at the Eu-ropean Commission to rein inalleged abuses by big techcompanies including Apple, Al-

BY VALENTINA POPAND SAM SCHECHNER

Apple Wins Tax Case,Dealing a Blow to EU

work: a packet of practice college-prep ques-tions she printed from the internet.

“I’m educating him the best way I can,”said Ms. Bunton, a 41-year-old single mother.“I don’t want him to be behind.”

With the next academic year quickly ap-proaching, school districts and parents ev-erywhere are racing to figure out how to re-sume learning during the coronaviruspandemic—with the interruption that up-ended the last school year beginning to looklike a longer-term disruption. Los Angeles’s

PleaseturntopageA8

JACKSON, Miss.—After schools shut downin March, LaKenya Bunton would get homearound 7 a.m. from an overnight quality-con-trol job at a factory, doze for a few hours,then become teacher to her 16-year-old son,Amarrius.

Her son, a rising sophomore, had receivedno remote-learning materials from his schooland didn’t hear from most of his teachers.Ms. Bunton’s method included collecting Am-arrius’s cellphone and handing him the day’s

BY TAWNELL D. HOBBS

Remote LearningWidensAmerica’s Education GapA district of mostly Black, low-income students is hard hit

ing incident in Twitter’s his-tory, began shortly before 4p.m. EDT, when compromisedaccounts—many of them re-lated to the digital currencybitcoin—began posting mes-sages requesting money be sentto cryptocurrency accounts.The attacks quickly spread tomore prominent accounts, withthe bogus messages sometimesreceiving thousands of likes be-fore they were taken down,only to be posted again a shortwhile later, sometimes on the

same account.Twitter’s security account

posted around 5:45 p.m. EDTthat the company was investi-gating the incident and takingsteps to fix it. Within roughly ahalf-hour, the company tookthe extraordinary step of limit-ing posts from verified ac-counts with blue check marks,which Twitter designates formore prominent users.

Twitter later said it believedthe hackers perpetrated the at-tack by targeting employees

who had access to internal sys-tems and tools. The hackersmay have accessed informationor engaged in other maliciousactivity, Twitter said, adding itwas still investigating.

The company didn’t sayhow long the hackers had beenable to access its internal sys-tems. Twitter said it had lim-ited access to internal systemsin response to the hack andlocked compromised accounts.

“Tough day for us at Twit-PleaseturntopageA4

Twitter Inc. was hit with awidespread attack Wednesdaythat allowed hackers to takeover an array of accounts in-cluding those of politicians,billionaires and celebritiessuch as Joe Biden, BarackObama, Bill Gates, Kanye Westand Elon Musk, as well as Ap-ple Inc. and other companies.

The attack, which securityexperts called the worst hack-

BY EUIRIM CHOIAND ROBERT MCMILLAN

Cyberattack on Twitter HitsTitans of Business, Politics

workers to wear masks, butlike most retailers, they previ-ously followed local guidelinesfor shoppers. “We recognizeadditional precautions areneeded to protect our coun-try,” Kroger said.

Other chains made similarmoves after Walmart’s an-nouncement Wednesday atother chains, including Kohl’sCorp., which operates about1,000 department stores, andPanera Bread, which has about2,000 restaurants. Best BuyCo. and Starbucks Corp. hadmask rules that kicked in onWednesday.

There is scientific and medi-cal consensus that masks arecritical in slowing the virus’sspread. The federal Centers forDisease Control and Preventionrecommends everyone wear aface covering in public, espe-cially indoors and when socialdistancing isn’t possible. Presi-dent Trump, a Republican whowore a mask in public for the

PleaseturntopageA2

Walmart Inc. and KrogerCo. will require customers towear face coverings inside alltheir U.S. stores, joining agrowing chorus of big busi-nesses and state leaders decid-ing that masks are needed tobattle the surge in coronaviruscases and calling for a na-tional policy.

The retail giants, which op-erate more than 8,000 storesacross the country, said theywere adopting their own maskrequirements to protect theirstaff and customers. Walmartsaid a lack of federal rules hadleft it with a patchwork of lo-cal regulations. “We know thisis a simple step everyone cantake for their safety and thesafety of others,” it said.

They join major U.S. air-lines and a number of gover-nors, even those who were ini-tially hesitant to do so, inadopting mask requirementsto stop the spread of the re-spiratory disease, which haskilled more than 136,000 inthe U.S.

Walmart and Kroger havekept their stores open throughthe pandemic and required

BY DAVE SEBASTIANAND SHARON TERLEP

Walmart, KrogerTo Require MasksIn All U.S. Stores

Jamya Eubanks with a math workbook that her mother bought to help with her schoolwork.

ANDRE

AMORA

LESFO

RTH

EWALL

STRE

ETJO

URN

AL

Once spared, Arizona nowsuffers............................................ A3

Bursting hospitals compoundrisks of virus.............................. A6

Some fret as offices beckonemployees.................................... B1

PERSONALJOURNAL.

BEIJING—China has be-come the first major economyto return to growth since thecoronavirus started sweepingthe world earlier this year.

China on Thursday reportedgrowth of 3.2% for the secondquarter from a year earlier, asauthorities reaped the benefitsof an aggressive campaign toeradicate the virus within itsborders.

In sequential terms, China’ssecond-quarter growth ingross domestic product repre-sented an 11.5% rebound fromthe first three months of theyear, according to data re-leased Thursday by Beijing’sNational Bureau of Statistics.For the first six months of theyear, China’s economy con-tracted by 1.6% compared withthe first half of 2019.

The strong growth figurefor the three months endedJune 30 beat economists’ me-dian estimate of 2.6% growthand was at the top end of anunusually wide range of fore-casts, from a contraction of3.1% to growth of 3.5%.

It followed a historic 6.8%year-over-year economic con-traction in the first threemonths of the year, when Bei-jing shut down the country inlate January as the coronavi-rus spread across China from

PleaseturntopageA7

BY JONATHAN CHENG

TRAVELENTERTAINMENT

TheMiddle Seat: Flyingis safer than you think,but risks remain. A9

GIL

COHEN

-MAGEN

/AFP

/GET

TYIM

AGES

CONTENTSArts in Review... A13Business News B3,5-6Crossword.............. A14Heard on Street. B12Markets..................... B11Opinion.............. A15-17

Personal Journal A9-12Sports....................... A14Streetwise................ B6Technology............... B4U.S. News............. A2-6Weather................... A14World News.... A7-7A

s 2020 Dow Jones & Company, Inc.All Rights Reserved

>

What’sNews

As the pandemic pusheshospitals in the South andWest near capacity, the ur-gent need for available bedshas stranded patients inemergency rooms, scram-bled ambulances and forcedpatients to relocate hun-dreds of miles to relieveovercrowded wards. A6Senior White House tradeadviser Navarro criticizedFauci in an opinion columnthat the White House saidwasn’t authorized. A6 Biden’s lead over Trumpreached double digits thismonth as the president’s ap-proval rating declined, ac-cording to a newWall StreetJournal/NBC News poll. A4 The president said he isreplacing his campaignman-ager, a move that comes lessthan fourmonths before theelection. Bill Stepienwill takeover from Brad Parscale. A4Trump said his adminis-tration has completed its up-date to the National Environ-mental Policy Act, includingchanges that will mandatedeadlines for completingenvironmental reviews. A3 The president renewedhis fight against a NewYork state grand-jury sub-poena for financial records,including tax returns. A4 The encounter betweenGeorge Floyd and police esca-lated quickly after an officerdrewhisweapon, according topolice body-cam footage. A5 Justice Ginsburg wasreleased from a Baltimorehospital after an overnightstay for treatment for apossible infection, the Su-preme Court said. A5

China has become the firstmajor economy to return

to growth since the coro-navirus began sweeping theglobe, posting 3.2% growthin GDP for the second quar-ter from a year earlier. A1 Twitter was hit with awidespread attack that al-lowed hackers to take over anarray of accounts includingthose of politicians, billion-aires and celebrities, as wellas Apple and other firms. A1Apple won a major battlewith the EU as a court sidedwith the company over a$14.8 billion tax bill that EUantitrust officials had saidwas owed to Ireland. A1Walmart and Krogerwillrequire customers to wearface coverings inside alltheir U.S. stores amid thesurge in coronavirus cases.A1American Airlines told25,000 workers that theirjobs are at risk after federalaid expires Oct. 1, as air-travel demand falls again. B1Goldman, buoyed by itsWall Street roots, postednear-record quarterly reve-nue of $13.3 billion, withprofit remaining steady. B1U.S. stocks rose, with theDow industrials and S&P500 both gaining 0.9%, whilethe Nasdaq added 0.6%. B11Wirecard touted partner-ships in releases that werein some cases misleading orpromoted without the agree-ment of the firms named. B1 Chipotle said it is add-ing as many as 10,000 em-ployees as it opens morestores with drive-throughlanes for digital orders. B1

Business&Finance

World-Wide

Sabotage Probed in String of Fires, Explosions in Iran

ON ALERT: Tehran is investigating a blaze, shown on Iranian state television, at a port Wednesday, the latest of severalfires and explosions that have raised suspicions of coordinated sabotage targeting the nation’s infrastructure. A7A

IRIB

NEW

SAGEN

CY/A

GEN

CEFR

ANCE

-PRE

SSE/GET

TYIM

AGES

P2JW198000-6-A00100-17FFFF5178F