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The 10-Point: My Guide to the Day's Top News

The Wall Street Journal
Good morning,
Party Crasher
When Donald Trump rode down an escalator at Trump Tower to launch his presidential campaign, he began galvanizing a populist version of the Republican Party. But he didn’t create it. We examine how Mr. Trump seized on the GOP’s failure to change enough to accommodate four decades of newcomers. The Republican nominee has opened a deep divide that will be hard to heal, and if he loses, a nasty internal debate about what the GOP stands for is likely to erupt. Meanwhile, we report that two chief fundraisers for the Clinton Foundation pressed corporate donors to steer business opportunities to former President Bill Clinton, according to a hacked memo published Wednesday by WikiLeaks. And our latest poll finds that the presidential race continues to be a dead heat in Nevada, while Hillary Clinton is opening a wider lead over Mr. Trump in New Hampshire.
Explore Some Avenues
Big oil companies have slashed their exploration budgets to focus on lower-risk, lower-return prospects after spending big with mixed results. For years, big oil and gas companies committed ballooning sums to seeking mammoth reserves in difficult locations. But their record was spotty, and a dearth of major finds was followed by the oil-price slump that began in 2014. We report that some in the industry say the decline in exploration spending will eventually contribute to an oil drought—and surging crude prices. Others say it is the new normal, in which giants like BP and Royal Dutch Shell will increasingly focus their exploration on less risky and more easily accessible reserves—and spend some of the money they used to commit to exploration to buy already-discovered resources from smaller companies.
States of Austerity
A sharp pullback in spending by cities and states on infrastructure—from highways to sewage systems to police stations—is weighing on U.S. economic growth. Such government austerity is unusual in the eighth year of an economic expansion, and it is acting as a headwind just as the worst effects of the energy-industry bust, a strong dollar and inventory drawdown are fading. The decline in spending depressed GDP growth this spring and was on track to weigh on growth again in the third quarter. Many state governments have yet to fully recover from the recession and associated steep declines in tax revenue, and the situation doesn’t seem to be improving. Meanwhile, costs for Medicaid, public-employee health care and pension obligations are rising, leaving states with little discretion to deploy tax dollars elsewhere.
Nest Together
A common Sunday night ritual for children whose parents are divorced is packing up the schoolbooks and soccer cleats for the weekly trek to mom or dad’s house. But some divorced couples are trying an approach they call nesting: The parents shuttle back and forth while the children stay in the family home. Nesting makes sense, these couples say, to give the children stability. Some parents rent separate apartments for when they are away from the home, while others rent an apartment together. Nesting can reduce the financial pain of divorce by allowing a couple to wait to sell the home. Therapists, however, often don’t approve. They caution that the arrangement impinges on the parents’ privacy and question whether such close collaboration allows the family to move on.
Sports Antihero Costumes for 2016
That Was Painless
For the seventh year, we offer last-minute suggestions on how to dress your children in costumes inspired by the year’s most infamous sports moments and antiheroes.

Reaction to AT&T-Time Warner Deal Shows Presidency’s Growing Reach

Government’s Push for Solar Power on Federal Lands Stirs Concerns

Russia Drops Bid to Refuel Warships on Spanish Territory as Tensions with NATO Rise

ISIS Failure in Kirkuk Shows Its Loss of Sunni Arab Support

Galaxy Note 7 Recall Sinks Samsung Profit

Detroit Keeps Foot on the Gas When It Comes to Trucks

Blackstone Cashes In on China’s Overseas Shopping Binge

Morgan Stanley Sets Off a Fight Over the Cost of Your Retirement Account
$22 million
The surprise profit Tesla posted in its latest period, buoyed by record sales of its pricey electric cars and boosting CEO Elon Musk’s plan to sharply lift output ahead of its release of a sedan to compete against mass-market rivals.
I’ve been offered bribes.
Paul Nickerson, who runs the Tree House Humane Society’s Cats at Work program, on the high demand for feral cats in rat-plagued Chicago.
Going back to our story above, what are your thoughts on the pullback in infrastructure spending by cities and states? Send your comments, which we may edit before publication, to Please include your name and location.
—Compiled by Margaret Rawson
Responding to yesterday’s question on Apple’s first annual revenue decline in 15 years, Daniel Souza of Connecticut said: “Everyone who wants a cell phone has one. The market is mature, competitive and finite. For Apple to maintain its historically high sales growth rates it must come up with major enhancements to past models, which it hasn’t. As trees do not grow to the sky, Apple iPhone sales do not accelerate indefinitely.” Charlie Kendall of California wrote: “It was inevitable that Apple would find it harder to be the star in the wireless world. Shock and awe features have reached a saturation point and new features don’t quite meet the expectations of the consumer and are giving them pause to look at alternatives.” And Richard Slaughter of Idaho shared: “I never cease to be amazed at the inability of supposedly smart analysts to understand context, particularly the starting points of an analysis. The iPhone 6 was a major format and technical advance that the market wanted; it sold phenomenally well. Why should anyone expect that 6S sales would show the same growth trajectory? The 8 will be another blockbuster. In the meantime, the overall ecosystem and business continues to expand. Apple sells for little over 10X earnings. If it sold at 30X earnings, the nitpicking would make sense.”
This daily briefing is named "The 10-Point" after the nickname conferred by the editors of The Wall Street Journal on the lead column of the legendary "What's News" digest of top stories. Technically, "10-point" referred to the size of the typeface. The type is smaller now but the name lives on.
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Copyright 2016 Dow Jones & Company, Inc. All Rights Reserved.   


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