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

The Wall Street Journal
Good morning,
High Hopes
U.S. stocks posted their biggest rally since the election Wednesday, sending major indexes to fresh records as investors increasingly conclude President-elect Donald Trump will be good for business and the economy. Investors are embracing the prospect of tax cuts, regulatory rollbacks and fiscal stimulus under Republican leadership in Washington. These bets have lifted shares of banks and industrial companies and sent government bonds tumbling and their yields surging. The Dow Jones Industrial Average rose nearly 300 points to a record Wednesday and the S&P 500 also hit a new high. Some investors have been wary of the postelection rally, citing mixed signals around Mr. Trump’s policy agenda, but many now expect the gains to continue in 2017. Corporate earnings are on the mend, the rate of U.S. economic growth has accelerated and the labor market has continued to strengthen.

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A Changed Climate
In the latest transition news, Mr. Trump chose Oklahoma Attorney General Scott Pruitt to lead the EPA, turning to a climate-change skeptic and sharp critic of the agency to take its helm. Mr. Pruitt, a Republican, has led legal fights against some of U.S. President Barack Obama’s most significant environmental rules, and one of his major roles as EPA administrator would likely be to try to roll back those regulations. Meanwhile, Mr. Trump has selected Iowa Gov. Terry Branstad to be the next U.S. ambassador to China. Mr. Branstad has a long relationship with Chinese President Xi Jinping, who first visited Iowa as part of a sister-state exchange program in 1985. We report that Mr. Trump is using a freewheeling approach to vetting potential candidates for top jobs, while his choice of generals for his cabinet, including retired Marine Gen. John Kelly to lead the Department of Homeland Security, has raised concerns in some quarters.
Art of the Deal
The CEOs of AT&T and Time Warner on Wednesday defended their proposed $85 billion merger to lawmakers, trying to navigate a tricky political landscape in which Mr. Trump has expressed hostility to the deal. At a hearing on Capitol Hill, the companies portrayed the union as a bulwark against the dominance of Silicon Valley giants such as Google and Facebook. Senators from both parties voiced wide-ranging concerns about the blockbuster deal, but lawmakers focused their inquiries more on the complex policy questions involved in the media business than the fraught politics. Republican Senators shied away from Mr. Trump’s hard-hitting populist tone and his willingness to take aim at specific businesses. Antitrust enforcers in the Trump administration will ultimately decide whether to approve the deal or try to block it.
Into Thin Air
Stop focusing on legroom. It’s the headroom that is shrinking on flights, and making us feel really uncomfortable. Seat density has increased significantly the last couple of years. One passenger’s nose may be 3 inches closer to the back of the head in front of her. The skinny seats installed recently largely preserve knee and legroom, but in rows that are compressed, while installing skinny bathrooms and minimizing galleys have let airlines pack more rows in, too. Psychologists say the eye-level squeeze is a big reason travelers are feeling more anxious on densely packed planes. And it’s only going to get tighter in there.
Hop to It
That Was Painless
Kangaroos roam free at the Anglesea Golf Club near Melbourne, Australia. The marsupials don’t bother the golfers—but the tourists are a different story.

When Presidents Defy Economic Gravity, Gravity Usually Wins

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Shell Signs Preliminary Iran Oil Deal Despite Uncertainty Over Trump

It’s Just No Fun Being a Swiss Banker Anymore
$2 trillion
The total amount of “investment receivables” 32 publicly traded Chinese banks had as of June, up from $334 billion at the end of 2011. The loosely regulated category of assets allows bank officials to set aside little or nothing for potential losses on loans. We report that the accounting sleight of hand is rampant across China.
If we leave, then the entire revolution dies.
Ibrahim Hamo, a military commander with the rebel group Ahrar Syria, on Syria’s foreign ministry saying this week that any truce in Aleppo would need to guarantee the withdrawal of all rebels from the city. Nearing defeat there, the rebels proposed a civilian evacuation and negotiations.
Going back to our story above, what are your thoughts on Mr. Trump’s latest appointments? 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 our “Innovation Paradox” series, Drew Kelley of Nevada said: “Furthering the paradox is the tendency of many segments of society to fight and block anything that may improve the daily lives of society as a whole, which is why it takes so long to do anything anymore and by the time a project is completed the problem it was meant to solve has multiplied to such a scale that even with the improvement conditions are worse.” Stewart D. Cumming of California wrote: “Whether it is science, technology, or some other field, the impetus to innovate has changed drastically over the last 25 years. It has morphed from a desire to enhance our existence into a desire to enrich the innovator.” And Ray Dunaway of Nevada weighed in: “After 30+ years of consulting in Silicon Valley, I am not surprised that the software firms are encountering difficulty with the physical world. Their success has led to a hubris that leads them to believe all others are a bit ‘slow,’ if not dim-witted. They are learning the difficult lesson that success in one business arena does not mean you have the skills or intellect to compete in any arena.”

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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