Does a Dash in a Headline Affect the Capitalization of the Next Word?

Thank you to the Wall Street Journal’s always-interesting “Style and Substance” column for clarifying an issue I’ve never been sure about:

Which headline is correct (focus on the word “and”)?

1. Dow Ends Unchanged — and That’s News

2. Dow Ends Unchanged — And That’s News

According to the Journal, #1 is correct:

“We lowercase words after a dash if they are normally lowercased in headlines (but uppercase after a colon).”