Month: June 2012

Dear Friends,

Tangents:

Looking for a place to take a nice day trip this summer? Well, look no further but the beautiful island of Salt Spring; just a short 35 minute ferry ride through the Georgia Straight. Salt Spring Island is an alluring place for visitors with a mild climate, stunning natural beauty and a colourful cast of characters, such as artists, and musicians.  Coastal Living Magazine named the island the top “small arts town in Canada” and one of the top ten such arts colonies in North America.  Not only is Salt Spring known for the talent it holds, but for the passionate farmers and the abundance of local seafood.  Culinary artists are also drawn to the island because of the fresh, locally grown fruits and vegetables.  Salt Spring is a very food and wine-centric island, boasting a serious legion of world-renowned farmers, vintners, cheese-makers, bakers and chefs.   If you happen to be on Salt Spring Island on a Saturday (just announced, there will now be one on Wednesdays), make sure to check out the Farmers Market located Oceanside at Centennial Park in the heart of Ganges.  What makes this market different from others, all vendors must “make it, bake it or, grow it”.  You will find arts & crafts (jewelry & pottery), woodworkers, organic foods and live music. A little fact to leave you with: Salt Spring Island has its own legal, local currency. Each denomination consists of a world renowned Salt Spring artist’s work. It can be used at par with the Canadian dollar on Salt Spring Island and is also a great collector item and/or gift.

photos of the day June 13, 2012

As they await their loved ones who just returned home from deployment, families prance and wave in anticipation in a hangar at the edge of Gray Army Airfield near Tacoma, Wash. The C-17 at rear was the plane they flew in on.

President Barack Obama waves from Air Force One upon his departure from Washington. Obama will travel to Ohio and New York for campaign events.

Market Closes for June 13, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12651.91	+155.53
		+1.24%
S&P 500	1329.09	+14.21
		+1.08%
NASDAQ	2836.33	+17.72
		+0.63%
TSX	11469.65	+-28.22
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	8568.89	-18.95
		-0.22%
HANG SENG	18808.40	-218.12
		-1.15%
SENSEX	16677.88	-202.63
		-1.20%
FTSE 100	5467.05	-16.76
		-0.31%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.794	1.771
CND. 30 Year Bond	2.374	2.348
U.S. 10 Year Bond	1.6369	1.5961
U.S. 30 Year Bond	2.7297	2.7127

Currencies

BOC Close	Today	Previous
Canadian $	1.02354	1.02940
US $	0.97700	0.97144
Euro Rate 1 Euro=		Inverse
Canadian $	1.29214	0.77391
US $	1.26242	0.79213

Commodities

Gold	Close	Previous
London Gold Fix	1625.26	1617.38
Oil	Close	Previous
WTI Crude Future	83.91	82.62
BRENT	98.32	96.82

Market Commentary:

Canada

By Nick Baker

June 14 (Bloomberg) — Canadian stocks resumed losses as a rally fueled by Reuters reporting that central banks are prepared to coordinate actions if needed to boost liquidity in financial markets sputtered.

The Standard & Poor’s/TSX Composite Index declined 60.38 points, or 0.5 percent, to 11,437.49 at 3:27 p.m. Toronto time after slumping 0.6 percent earlier. Following the Reuters report, the index had briefly erased its slump.

Canada faces a “major shock” and global financial conditions could deteriorate significantly if Europe’s crisis worsens, the country’s central bank said. While Canada’s financial system has fared well and conditions in the country remain “very stimulative,” deepening European turmoil may boost funding costs for the nation’s banks and generate losses from assets linked to the euro zone, the Bank of Canada said today in its semi-annual Financial System Review.

US

By Michael P. Regan and Inyoung Hwang

June 14 (Bloomberg) — U.S. stocks rose and the dollar weakened as reports on American inflation and jobless claims fueled speculation the Federal Reserve may loosen monetary policy to spur growth. Treasuries fell and commodities gained.

The Standard & Poor’s 500 Index added 0.7 percent at 3:29 p.m. in New York while the dollar weakened against all 16 major peers, with the euro increasing 0.4 percent to $1.2602. Ten-year Treasury yields climbed three basis points to 1.63 percent, while the rate on Spain’s 10-year bond rose as high as 6.998 percent, a euro-era record, after its credit ratings were cut by Moody’s Investors Service. The S&P GSCI commodities index added 1.2 percent.

Speculation grew that the Fed will discuss stimulus efforts at its meeting next week after reports showed jobless claims unexpectedly climbed by 6,000 to 386,000 and the cost of living fell by the most in more than three years. Investors also awaited Greek elections this weekend, with the nation’s benchmark stock index surging 10 percent on speculation the party that backs terms of a bailout may win elections.

“Economic deceleration puts the Federal Reserve in the driver’s seat,” Chad Morganlander, a Florham Park, New Jersey- based money manager at Stifel Nicolaus & Co., which oversees about $115 billion of assets, said in a telephone interview.

“There’s an improvement within the euro. There’s a modest amount of optimism that the Greek vote will bode well for the markets.”

U.S. stocks briefly pared gains as Egan-Jones Ratings Co. reduced its rating on France’s government debt, fueling concern about contagion from the debt crisis. The rally resumed after Reuters reported that central banks are prepared to coordinate actions if needed to boost liquidity in financial markets. The news service cited officials linked to the Group of 20 nations.

Home Depot Inc., Walt Disney Co. and Cisco Systems Inc. rose at least 2 percent to lead gains in the Dow Jones Industrial Average, which rallied as much as 132 points. All 10 of the main industry groups in the S&P 500 advanced. Kroger Co. rallied 4.9 percent after the largest U.S. grocery-store chain boosted its annual profit forecast and announced a $1 billion share buyback.

International Game Technology, a maker of casino machines, jumped 12 percent for the biggest gain in the S&P 500 after authorizing a share-repurchase plan of as much as $1 billion.

The S&P 500 fell yesterday following a decrease in U.S. retail sales and higher borrowing costs at elections in Italy and Germany. The index tumbled as much as 9.9 percent from a four-year high in April through June 1 amid lower-than-forecast economic data and concern Europe’s debt crisis was spreading.

The index has rebounded almost 4 percent since after the retreat dragged its valuation to 12.9 times reported earnings, the cheapest since November.

Treasuries extended losses after the U.S. sold $13 billion of 30-year bonds at a record low yield. The long bonds yielded 2.720 percent, compared with a forecast of 2.725 percent in a Bloomberg News survey of eight of the Fed’s 21 primary dealers.

The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.40, versus an average of 2.66 at the past 10 sales. Rates on existing 30-year bonds increased two basis points to 2.73 percent.

Italian 10-year yields lost nine basis points to 6.13 percent, halting a six-day increase. Italy sold 4.5 billion euros ($5.6 billion) of debt, with the yield on its benchmark three-year bond rising to 5.3 percent from 3.91 percent at the last auction on May 14.

European shares pared losses triggered by Moody’s Investors Service lowering Spain’s credit rating three steps to Baa3 yesterday. Investors also awaited weekend elections in Greece to gauge prospects of the the nation remaining in the euro bloc.

The Stoxx Europe 600 Index slipped 0.3 percent, recovering most of an early 1.2 percent slide. Credit Suisse slumped 10 percent to its lowest price since 1992. British Sky Broadcasting Group Plc and BT Group Plc tumbled more than 3 percent after winning the rights to show live English Premier League soccer matches by paying an extra 70 percent. Nokia Oyj plunged 18 percent after reducing its outlook for the second quarter.

The rally in Greek stocks pared the Athens Stock Exchange Index’s decline to 19 percent. Greeks will vote for a second time in six weeks after a May 6 ballot failed to result in a government. New Democracy, the largest pro-bailout party, led Syriza, the group opposed to spending cuts, according to the last poll on June 1. Under Greek law, there is a ban on publication of opinion polls two weeks before an election.

Chancellor Angela Merkel rejected quick solutions proposed to fix Europe’s financial crisis such as joint debt sharing, saying Germany can’t save the world economy alone and fellow Group of 20 countries must help. She said the debt crisis and Germany’s role in stemming contagion will be a “central topic” at next week’s G-20 summit.

“Europe is sliding further into a recession and the global and U.S. economies are still slowing down,” said Shane Oliver, the Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “It’s still time for caution on the short-term view.”

Spain’s two-year note yield surged eight basis points to 4.99 percent and the cost of insuring against a Spanish default using credit-default swaps climbed two basis points to 602, compared with an all-time high of 613.5 reached on June 1. A report showed borrowings by the nation’s banks from the European Central Bank rose to a record 287.8 billion euros in May from 263.5 billion euros in April.

The MSCI Emerging Markets Index slid 0.5 percent after closing yesterday at its highest level since May 29. The Hang Seng China Enterprises Index and the Philippine Stock Exchange Index lost at least 1.5 percent. India’s Sensex Index fell 1.2 percent after inflation quickened more than economists estimated.

Have a wonderful evening everyone.

 

“Yesterday is history, tomorrow is a mystery, today is a gift of God, which is why we call it the present.”

? Bil Keane

 

Regards,

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Tangents:

Canada Day is still a while off, but it’s never too early to start feeling patriotic about the ol’ Great White North.  Huffington Post recently published a list of “25 Reasons Why Canada Rocks,” and I have to say it’s pretty entertaining. It covers the gambit of Canadian perks from ketchup chips and cleaner air to our extremely livable cities. I even learned a few things reading the article. Did you know they don’t sell Coffee Crisp chocolate bars in the United States? What a tragedy!

Check out the entire article here and get yourself in the pre-Canada Day mood!

http://www.huffingtonpost.ca/2012/06/12/25-reasons-why-canada-rocks_n_1590325.html?utm_hp_ref=canada#s=1080787

photos of the day June 13, 2012

A visitor shelters under an umbrella while standing in front of the Rhine Falls in the town of Neuhausen, Switzerland. The Rhine Falls are the largest in Europe.

Christian Hartmann/Reuters

Pakistan’s Azhar Ali runs back to the pavilion as a match is stopped due to rain during their third One Day International cricket match against Sri Lanka, in Colombo, Sri Lanka.

Dinuka Liyanawatte/Reuters

Market Closes for June 13, 2012:

North American Markets

Market Index	Close	Change
Dow Jones	12496.38	-77.42
		-0.62%
S&P 500	1314.88	-9.30
		-0.70%
NASDAQ	2818.61	-24.46
		-0.86%
TSX	11497.87	+0.57
		—–

International Markets

Market Index	Close	Change
NIKKEI	8587.84	+51.12
		+0.60%
HANG SENG	19026.52	+153.96
		+0.82%
SENSEX	16880.51	+17.71
		+0.11%
FTSE 100	5483.81	+10.07
		+0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.771	1.803
CND.  30 Year Bond	2.348	2.374
U.S.  10 Year Bond	1.5961	1.6642
U.S.  30 Year Bond	2.7127	2.7693

Currencies

BOC Close	Today	Previous
Canadian $	1.02940	1.02612
US  $	0.97144	0.97455
Euro Rate 1 Euro=		Inverse
Canadian  $	1.29333	0.77320
US $	1.25640	0.79592

Commodities

Gold	Close	Previous
London Gold  Fix	1617.38	1609.88
Oil	Close	Previous
WTI Crude Future	82.62	83.32
BRENT	96.82	98.05

Market Commentary:

Canada

By Steve Chambers

June 13 (Bloomberg) — Most Canadian stocks fell as oil’s slump to an eight-month low dragged down energy companies, while rallies in banks and mining shares helped wipe out a 36-point drop in the Standard & Poor’s/TSX Composite Index in the final 40 minutes of trading.

Energy stocks in the S&P/TSX slumped 0.7 percent, while financial companies advanced 0.6 percent, the most out of 10 industries. Canadian Natural Resources Ltd. fell 1.4 percent, while Paramount Resources Ltd., Bonavista Energy Corp. and Niko Resources Ltd. posted declines of 6 percent or more. Toronto- Dominion Bank rose 1.2 percent, and Great Basin Gold Ltd. surged 11 percent.

Among S&P/TSX stocks, 157 declined and 90 gained. The index added 0.57 point, or less than 0.1 percent, to 11,497.87. It gained as much as 0.7 percent and lost 0.5 percent earlier. The benchmark gauge advanced 0.8 percent yesterday, snapping a three-day losing streak.

“I believe it’s a flight to quality given the serious potential negative of the Greek elections,” said Doug Davis, vice chairman of Davis-Rea Ltd. in Toronto. The firm manages $217 billion.

Alexis Tsipras, whose Syriza party is vying for first place in pre-election polls, said he expects the European Union will do all it can to keep Greece in the euro even if he wins elections and carries out his promise to repeal the austerity measures required to receive emergency loans.

Energy stocks slumped after oil fell to $82.62 a barrel following a report that showed U.S. retail sales weakened, while borrowing costs in Germany and Italy increased.

Dollarama Inc. rose 6.6 percent to C$60.61 after the discount retailer reported first-quarter earnings that beat analysts’ estimates.

US

By Michael P. Regan and Rita Nazareth

June 13 (Bloomberg) — Stocks fell and Treasuries rose after a drop in American retail sales and higher borrowing costs in Italy and Germany fueled concern about the global economy.

The euro gained on speculation Greece will stay in the currency bloc regardless of the results of weekend elections.

The Standard & Poor’s 500 Index decreased 0.7 percent to 1,314.88 at 4 p.m. in New York, wiping out most of yesterday’s rally. The euro appreciated 0.6 percent to $1.2573 as it strengthened against 13 of 16 major peers. Ten-year U.S. note yields lost six basis points to 1.61 percent after the Treasury auctioned debt at a record low yield. Oil slid to an eight-month low after swinging between gains and losses during the day.

U.S. stocks opened the session lower as government data showed U.S. retail sales declined 0.2 percent in May and interest rates increased at auctions in Italy and Germany.

Equities turned higher as JPMorgan Chase & Co. led gains in banks after Chief Executive Officer Jamie Dimon defended his firm’s practices before a Senate committee. The rally faded by the final two hours of trading as a U.S. official said the Group of 20 nations probably won’t announce significant progress on Europe’s debt crisis and Egan-Jones Ratings Co. cut Spain’s debt.

“In a world that still has more uncertainty than we care to count, you keep going back and forth between hope and disappointment,” said Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private- banking unit of KeyCorp in Cleveland. “It’s a process of taking out excessive optimism.”

American Express Co., Home Depot Inc. and Caterpillar Inc. fell more than 2 percent for the biggest declines in the Dow Jones Industrial Average, which slid 77.42 points to 12,496.38.

JPMorgan rose 1.6 percent as Dimon spent much of his time at a hearing firing back at the federal regulatory system that has become “really complex” because of legislation stemming from the 2008 financial crisis. He described a $2 billion loss in the bank’s chief investment office as a hedge that “morphed into something I can’t justify,” and largely blamed subordinates for a trading strategy gone wrong.

Expedia Inc., an online travel service, and Chesapeake Energy Corp. dropped at least 2.7 percent as analysts cut their ratings.

Thirty-year bond yields lost five basis points to 2.72 percent. Treasuries extended gains as a U.S. sale of $21 billion in 10-year notes drew a record-low auction yield of 1.622 percent, compared with a forecast of 1.647 percent in a Bloomberg News survey of eight of the Federal Reserve’s 21 primary dealers.

The S&P GSCI Index of commodities slipped 0.7 percent, erasing an earlier 0.4 percent advance. Corn, cattle and natural gas fell at least 1.7 percent to lead declines in 22 of 24 materials tracked by the gauge.

Gold rose for a fourth straight day, its longest rally since January, amid speculation the Federal Reserve will take further steps to spur growth, boosting the appeal of the metal as an inflation hedge. Oil fell to an eight-month low, dropping

0.8 percent to $82.62 a barrel.

The Stoxx Europe 600 Index retreated from a two-week high.

Sweden’s SKF AB, the world’s largest maker of ball bearings, dropped 7.3 percent after it reported weakening demand for its products in the second quarter. Renault SA led a selloff by carmakers, sliding 4.2 percent. Etablissements Maurel & Prom SA surged 18 percent, the most since 2003, amid takeover speculation.

The G-20 summit next week in Los Cabos, Mexico, will give European leaders a chance to discuss economic concerns with heads of other major economies. European governments are more focused on building a consensus for a meeting of the 17-nation euro zone later in the month, the official told reporters on condition of anonymity.

President Barack Obama will meet with the rest of the G-20 leaders June 18-19. Obama is likely to repeat the message he delivered at the last G-8 summit, that Europe needs to focus on growth and solid firewalls to keep the crisis contained, the official said.

Greece’s ASE Index climbed 2.1 percent following a report in Financial Times Deutschland that said European leaders may consider relaxing Greece’s austerity program after the June 17 election. Alexis Tsipras said he expects the European Union will try to keep Greece in the currency even if his Syriza party wins elections and repeals budget-cutting measures.

The euro rallied the most against the Mexican peso, British pound and Canadian dollar.

“Talk of possible bailout amendments is perceived as positive as it makes an implosion of the euro less likely,”

said Henrik Gullberg, a currency strategist at Deutsche Bank AG in London. “The market is generally very short the euro. Some investors are unwinding those positions ahead of the election.”

Europe is in an intense and crucial phase, Italian Prime Minister Mario Monti said in Rome. Yields on the nation’s 10- year debt rose five basis points to 6.22 percent. Spain’s credit rating was reduced two steps to CCC+ from B by Egan-Jones Ratings Co., the firm said today in an e-mailed statement.

Spain’s 10-year yield, which touched a euro-era record 6.83 percent yesterday before paring gains, added five basis points to 6.75 percent.

Italy sold 6.5 billion euros ($8.1 billion) of bills and Germany issued 4.04 billion euros in the sale of 10-year bonds.

Germany’s 10-year yield increased six basis points to 1.49 percent, adding to yesterday’s 12 point increase. Denmark’s 30- year bond yield advanced 13 basis points to 2.08 percent as the government agreed to ease rules for the country’s pension firms to help reduce their liabilities as record-low bond yields inflate the value of their obligations.

Pension companies and life insurers will be allowed to raise the discount rate they use to calculate their liabilities to better reflect long-term growth and inflation prospects, the Business and Growth Ministry in Copenhagen said in a statement yesterday.

The MSCI Emerging Markets Index rose 0.6 percent, poised for its highest close this month. Russia’s Micex index added 0.6 percent as trading resumed following a two-day holiday, while Hong Kong’s Hang Seng China Enterprises Index rose 1.5 percent.

Have a wonderful evening everyone.

“I am a lover of truth, a worshipper of freedom, a celebrant at the altar of language and purity and tolerance.”

— Stephen Fry

Regards,

Ellora Howie

Assistant to Carolann Steinhoff

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

Dear Friends,

Tangents:

A big night yesterday in Los Angeles, California for the LA Kings as they defeated the New Jersey Devils in a 6-1 victory, to take the 2012 Stanley Cup.  After scoring 3 power play goals in the first period, LA was on fire and ready to claim the cup. The fans started chanting “We want Cup!” early, and kept it up until the clock ran down in a delirious celebration at the Staples Centre. This is the first Stanley Cup for the LA Kings, so you can imagine the excitement from not only the fans, but from the team, coaches and everyone who supported the team through the long haul. “They’ve been waiting longer than I have, this city,” captain Dustin Brown said. “You dream of winning the Cup, and you know what, I’m glad I was the first King to ever lift it.” After being in 11^th place in the Western Conference, this victory caps one of the most remarkable postseason runs in League history. Congratulations to the LA Kings and we will see you in Vancouver next season!

photos of the day June 12, 2012

A rocket fired by a South Korean Multiple Launch Rocket System vehicle, unseen, flies over US Multiple Launch Rocket System vehicles in a live fire drill during joint military exercises by the US and South Korea in Cheorwon, South Korea.

A Pacific white-sided dolphin calf swims along with its mother Piquet, at Chicago’s Shedd Aquarium. The baby male dolphin, which does not have a name, was born on Memorial Day.

Market Closes for June 12, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12573.80	+162.57
		+1.31%
S&P 500	1324.18	+15.25
		+1.17%
NASDAQ	2843.07	+33.34
		+1.19%
TSX	11497.30	+95.52
		+0.84%

International Markets

Market  Index	Close	Change
NIKKEI	8536.72	-88.18
		-1.02%
HANG  SENG	18872.56	-81.07
		-0.43%
SENSEX	16862.80	+194.79
		+1.17%
FTSE 100	5473.74	+41.37
		+0.76%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.803	1.761
CND.   30 Year Bond	2.374	2.336
U.S.   10 Year Bond	1.6642	1.5843
U.S.   30 Year Bond	2.7693	2.7046

Currencies

BOC Close	Today	Previous
Canadian $	1.02612	1.03190
US   $	0.97455	0.96909
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28353	0.77910
US  $	1.25086	0.79945

Commodities

Gold	Close	Previous
London Gold   Fix	1609.88	1598.03
Oil	Close	Previous
WTI Crude Future	83.32	82.70
BRENT	98.05	97.47

Market Commentary:

Canada

By Steve Chambers

June 12 (Bloomberg) — Canadian stocks rose, snapping a three-day losing streak by the Standard & Poor’s/TSX Composite Index, as equities gained worldwide on speculation policy makers will do more to stimulate the economy and an early slump in oil and gold reversed itself.

Bombardier Inc. surged 6 percent after Warren Buffett’s Berkshire Hathaway Inc. placed a record $9.6 billion order for business aircraft with the company and Textron Inc. Raw- materials stocks in the S&P/TSX jumped 1.8 percent as a group as Avion Gold Corp., Nevsun Resources Ltd. and Aurizon Mines Ltd. rallied more than 5.6 percent.

The S&P/TSX rose 95.52 points, or 0.8 percent, to 11,497.30. The benchmark index fell 0.1 percent earlier after Fitch Ratings downgraded 18 Spanish banks, then rebounded. The index, which had fallen 2 percent the previous three days, pared its June loss to 0.1 percent. It fell 6.3 percent in May.

“There was definitely a risk-on trade if you looked at the top performers with gold, energy, commodities and more cyclical names like Bombardier,” Jennifer Radman, a portfolio manager at Caldwell Investment Management in Toronto, said in a phone interview. The firm manages C$1 billion ($974 million). “Our view is the market is going to trade like that with a lot of volatility until we get the fiscal issues addressed” in Europe, she said.

Stocks climbed after Federal Reserve Bank of Chicago President Charles Evans said he would support a variety of measures to generate faster job growth, underscoring his preference for more stimulus. The policy-setting Federal Open Market Committee meets next week. Equities also rallied after the European Central Bank backed a European Commission proposal to guarantee deposits.

Oil rose from an eight-month low after Evans’ comments and expectations that U.S. inventories are dropping. Gold rose for the third straight day on speculation that policy makers will announce additional stimulus measures to boost growth, increasing demand for the metal as a hedge against inflation.

Bombardier, the world’s largest private-jet maker, soared 6 percent to C$3.87. The transaction from Berkshire’s NetJets division covers as many as 275 Bombardier Challenger aircraft, including 100 firm orders. That represents about four years of Challenger production, said Walter Spracklin, an analyst with RBC Capital Markets in Toronto, who has an outperform rating on the planemaker’s stock.

Barrick Gold Corp., the world’s largest producer of the metal, rose less than 0.1 percent to C$39.61. Goldcorp Inc., the second-largest gold producer in the index, advanced 1.4 percent to C$40.46.

Suncor Energy Corp., Canada’s largest energy provider, rose 2.3 percent to 28.97, snapping a two-day losing streak.

Clothing maker Gildan Activewear Inc. rose 8.7 percent to C$27.88 after equity analyst David Glick at Buckingham Research raised his recommendation on the stock to buy from neutral.

US

By Michael P. Regan and Rita Nazareth

June 12 (Bloomberg) — Stocks rebounded from yesterday’s slump amid speculation policy makers will do more to stimulate the economy and protect European banks. Spain’s 10-year bond yield touched a euro-era record high as Fitch Ratings downgraded some Spanish lenders.

The Standard & Poor’s 500 Index added 1.2 percent to 1,324.18 at 4 p.m. in New York after tumbling 1.3 percent yesterday. The Stoxx Europe 600 Index rose 0.6 percent. The 10- year Spanish yield increased as much as 33 basis points to 6.83 percent, before trimming gains and trading at 6.71 percent. The S&P GSCI Index of commodities lost 0.2 percent as wheat and corn tumbled more than 2 percent. Ten-year Treasury yields rose eight basis points to 1.66 percent.

Gains in stocks followed remarks by Federal Reserve Bank of Chicago President Charles Evans that he would support more stimulus. The European Central Bank backed European Commission proposals for a banking union based on three pillars:

Strengthening euro-area supervision of lenders, establishing a deposit guarantee program and “minimizing the risks for taxpayers” through contributions from the financial industry.

“It has been a bit schizophrenic,” said Mark Luschini, chief investment strategist for Philadelphia-based Janney Montgomery Scott LLC, which manages about $54 billion. “What’s taking place in the Spanish bond market is troubling. Yet pessimism is so high that the prospect of any relief would be enough to jump-start a rally in equities.”

Commodity, financial and industrial shares rose at least 1.6 percent to lead gains in all 10 of the main industries in the S&P 500. Boeing Co. jumped 3.5 percent as Sanford C. Bernstein & Co. raised its rating and the company was poised to win the first order by a lessor for its 737 MAX jets. Textron Inc. rallied 4 in New York and Bombardier Inc. surged 6 percent in Toronto as Warren Buffett’s Berkshire Hathaway Inc. agreed to buy planes from the companies.

Boeing led gains in the Dow Jones Industrial Average, followed by advances of at least 2.5 percent in JPMorgan Chase & Co., Bank of America Corp. and DuPont Co. The Dow surged 162.57 points to 12,573.80. JPMorgan advanced before Chief Executive Officer Jamie Dimon is scheduled to testify before Congress tomorrow about his firm’s $2 billion trading loss.

The S&P 500 erased an early rally yesterday and ended the session with its biggest decline in more than a week as early investor optimism over Spain’s request for bailout funds to help its banks was met with skepticism that the rescue will tame the crisis.

Fitch said today that euro-area countries face lower ratings because policy makers are failing to demonstrate they can bring the debt crisis under control and predicted Spain will miss budget-deficit targets. Bond ratings in the euro currency bloc are under “strong downward pressure,” Fitch Managing Director Ed Parker said in Oslo today. The Fed is scheduled to meet next week and announce its rate decision on June 20.

“I’ve been in favor of pretty much any accommodative policy I’ve heard about,” Evans said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu airing today. “Extending the Twist would be useful,” he said, referring to a plan expiring this month that lengthens the average duration of bonds in the Fed’s portfolio.

All but seven of 24 commodities tracked by the S&P GSCI Index declined. Corn fell the most in two weeks, dropping 1.4 percent, as the U.S. Department of Agriculture forecast global inventories will rise to the highest level in 11 years. Wheat slid 2.3 percent after the USDA said stockpiles will be larger than analysts expected. Oil rose 0.8 percent to $83.32 a barrel, rebounding from an eight-month low.

The dollar weakened against 12 of 16 major peers, with the currencies of Australia and New Zealand appreciating about 1 percent to lead gains. The euro climbed 0.2 percent to $1.2505, reversing a 0.3 percent slump in the morning.

Optimism among global asset allocators “collapsed” this month as Europe’s debt crisis prompted money managers to sell equities and hoard cash to the highest level since 2008, a Bank of America Corp. survey showed.

Respondents, who together manage $522 billion, reduced their holdings in stocks to underweight for the first time in seven months, meaning they now own less than are represented in indexes. Cash balances surged to 5.3 percent in June, the third- highest level on record, while an index of risk and liquidity sank to 30, the lowest level since September 2011.

The Stoxx 600 climbed even as three shares retreated for every two that rose in the regional benchmark.

TomTom NV rallied 16 percent after Apple Inc. agreed to use its digital maps. Lafarge SA rose more than 2 percent after announcing plans to increase earnings by 54 percent by 2015.

Lagardere SCA retreated 2.4 percent after the company lowered its advertising-revenue target.

Spain’s 10-year bond yield and the cost of insuring against a default by the nation each rose for a third day, with credit- default swaps increasing 12 basis points to 607. The price was at a record 613.5 basis points on June 1.

Italy’s 10-year yield increased 14 basis points to 6.17 percent after reaching 6.30 percent, the highest since January.

Germany’s 10-year bund yield climbed 12 basis points to 1.42 percent, with France’s yield rising 17 basis points to 2.73 percent.

“We’re going to just keep playing this game until there’s some final outcome of what’s going to happen with the euro,”

Tom Wirth, who helps manage $1.5 billion as senior investment officer for Chemung Canal Trust Co., based in Elmira, New York, said in phone interview. “Europe is a total disaster.”

The European Financial Stability Facility plans to raise at least 1 billion euros through a sale of bonds due April 2037 as banks in Norway and Germany sell relatively safe covered bonds after yesterday’s surge in non-financial deals.

Italy plans to auction at least 9.5 billion euros ($11.9 billion) of debt this week as yields climb for Europe’s most- indebted countries following Spain’s request for a bailout.

Greece holds elections June 17 that may determine the country’s future in the euro.

The MSCI Emerging Markets Index slipped 0.2 percent, after closing yesterday at the highest level since May 29. The Shanghai Composite Index, South Korea’s Kospi and Taiwan’s Taiex Index slid at least 0.7 percent. The ISE National 100 Index advanced 1.2 percent as Tupras Turkiye Petrol Rafinerileri AS jumped 2.7 percent after the U.S. said Turkey was among nations that would be exempt from sanctions for buying Iranian oil.

Poland’s WIG20 Index and India’s Sensex Index climbed more than 1 percent.

Have a wonderful evening everyone.

“Don’t aim for success if you want it; just do what you love and believe in it, and it will come naturally.”
David Frost

Regards,

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

Dear Friends,

Carolann is visiting Amsterdam this week, so our newest team member Amanda and I will be filling in for the newsletter for the next few day!

Tangents:

Columbia is celebrating its sixth annual Tomatina festival this week. Based off the 67 year old festival of the same name from Spain, Tomatina celebrates the end of fall in the Southern hemisphere and the farmers of Columbia. And what better way to celebrate a plentiful harvest then with an all out food fight! Around 18 tons of tomatoes were brought in as the projectile of choice as thousands of fruit-flinging enthusiasts descended on the Columbian city of Sutamarchan. And before you worry about the waste, the festival only happens after a bumper crop of tomatoes and uses only the ones deemed unfit for human consumption.

Market Closes for June 11, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12411.23	-142.97
		-1.14%
S&P 500	1308.93	-16.73
		-1.26%
NASDAQ	2809.73	-48.69
		-1.70%
TSX	11401.78	-98.85
		-0.86%

International Markets

Market  Index	Close	Change
NIKKEI	8624.90	+165.64
		+1.96%
HANG  SENG	18953.63	+451.29
		+2.44%
SENSEX	16668.01	-50.86
		-0.30%
FTSE 100	5432.37	-2.71
		-0.05%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.761	1.809
CND.   30 Year Bond	2.336	2.368
U.S.   10 Year Bond	1.5843	1.6336
U.S.   30 Year Bond	2.7046	2.7484

Currencies

BOC Close	Today	Previous
Canadian $	1.03190	1.02781
US   $	0.96909	0.97294
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28740	0.77676
US  $	1.24760	0.80154

Commodities

Gold	Close	Previous
London Gold   Fix	1598.03	1593.85
Oil	Close	Previous
WTI Crude Future	82.70	83.26
BRENT	97.47	100.53

Market Commentary:

Canada

By Steve Chambers

June 11 (Bloomberg) — Canadian stocks declined for a third day after a rally on commodities in the opening minutes of trading was wiped out by falling oil prices.

Suncor Energy Inc. and Imperial Oil Ltd., the nation’s two largest energy providers, fell at least 1.1 percent. Energy stocks and banks, as groups, contributed most to the decline in the Standard & Poor’s/TSX Composite Index. Industrial and telecom stocks were the lone groups posting gains.

The S&P/TSX lost 67.28 points, or 0.6 percent, to 11,433.35 at 2:57 p.m. Toronto time. The index, which had been up as much as 0.8 percent after Spain requested a 100 billion euros ($125 billion) bailout for its banks, reversed course as oil declined after posting a 3 percent surge.

“This is a Band-Aid on what is a really big gaping gash,” said Gareth Watson, a vice president of investment management and research at Richardson GMP Ltd. in Toronto. The firm manages C$15 billion ($14.5 billion). “You don’t want to put it down, because it’s good news that the Europeans took action without waiting for a terrible crisis to hit them. But it’s one step of many to find the end solution.”

Stocks in Europe and the U.S. pulled back from early- morning highs as optimism over Spain’s bailout plan gave way to skepticism it will succeed in halting the debt crisis. Markets had surged earlier following Spain’s bailout plan and a larger- than-expected increase in China’s exports.

Suncor Energy dropped 1.5 percent to C$28.61. Imperial Oil Ltd., the nation’s second-largest energy producer, fell 1.1 percent to C$42.43. Canadian Natural Resources Ltd., the third- biggest, declined 0.7 percent to C$27.89.

Royal Bank of Canada, the nation’s largest lender, declined 0.3 percent to C$50.14. Bank of Nova Scotia slumped 0.4 percent to C$51.67.

Canadian National Railway Co. rose 0.6 percent to C$84.15.

Telus Corp., the nation’s third-biggest wireless carrier, advanced 1.2 percent to C$59.34.

US

By Rita Nazareth and Michael P. Regan

June 11 (Bloomberg) — U.S. stocks fell, while the euro and commodities erased early rallies, as optimism over Spain’s bailout plan gave way to skepticism that the rescue will succeed in taming the European debt crisis. Treasuries advanced.

The Standard & Poor’s 500 Index lost 1.3 percent to 1,308.93 at 4 p.m. in New York after climbing as much as 0.7 percent in the first minutes of trading. Futures on the gauge surged as much as 1.5 percent before U.S. markets opened. The euro weakened 0.3 percent to $1.2484 after surging 1.2 percent.

Oil fell to an eight-month low, reversing a 3 percent jump, and the S&P GSCI Index of commodities slid 1 percent. Ten-year Treasury note yields decreased five basis points to 1.59 percent after surging nine basis points earlier.

Spain asked euro-region governments over the weekend for as much as 100 billion euros ($126 billion) to help shore up its banking system. Spanish and Italian bonds rallied as European markets opened, only to erase the gains as costs of default swaps to protect Spanish government debt rose. Spain’s benchmark stock index reversed an almost 6 percent gain.

“The Spanish deal is another Band-Aid,” Matt McCormick, who helps oversee $6.2 billion at Bahl & Gaynor Inc. in Cincinnati, said in a telephone interview. “Many investors are viewing this with skepticism. The problem is not going to be fixed by this amount. It’s not a solution, and people know the difference. Expect more volatility not less.”

European officials have failed to control the debt crisis that started in Greece at the end of 2009 and has now required a bailout of the euro area’s fourth-largest economy. Concern about a deepening of the region’s turmoil almost drove the S&P 500 into a bear market last year as the index tumbled more than 19 percent between April 29 and Oct. 3. Since then, the index surged as much as 29 percent to a four-year high in April, then lost 6.6 percent through last week.

Gauges of financial, commodity and technology shares lost more than 1.7 percent to lead declines among the 10 main groups in the S&P 500, while telephone and utility companies performed the best. Hewlett-Packard Co., Bank of America Corp., Caterpillar Inc. and JPMorgan Chase & Co. slid more than 2.5 percent to lead the Dow Jones Industrial Average down 142.97 points to 12,411.23.

Nvidia Corp. rallied 1.2 percent after Apple Inc. said its latest MacBook Pro computer uses a new Nvidia graphics chip.

Apple slid 1.6 percent, erasing a 1.4 percent rally, as it introduced new computers at its developers conference.

Thirty-year U.S. bonds rose for the first time in six sessions, sending yields down three basis points to 2.72 percent. The rate is up from a record low of 2.5089 percent on June 1.

The average yield on bonds issued by the Group of Seven nations has fallen to 1.120 percent from 3 percent in 2007, Bank of America Merrill Lynch index data show. Germany’s two-year note yield fell below zero for the first time on June 1, while Switzerland’s has been negative since April 24, meaning investors are paying for the right to lend the nation money.

The Stoxx Europe 600 Index ended the session little changed after increasing as much as 1.9 percent. Banco Santander SA fell 0.3 percent, erasing a gain of as much as 9.7 percent. Bankinter SA rose 0.5 percent and Banco Bilbao Vizcaya Argentaria SA was little changed after each jumped more than 10 percent earlier.

The IBEX-35 Index of Spanish stocks slipped 0.5 percent, reversing a 5.9 percent rally. Greece’s ASE Index rose 0.8 percent, paring an earlier 4.5 percent jump.

France’s CAC 40 Index lost 0.3 percent. The benchmark gauge surged as much as 2.3 percent earlier as industrial production increased 1.5 percent in April. Economists had predicted a 0.1 percent decline.

The Dollar Index was little changed after earlier slumping as much as 1 percent. Norway’s krone strengthened against 14 of 16 major peers, climbing 0.2 percent versus the dollar, after data showed consumer prices rose more than estimated last month.

Spain’s two-year yield rose 28 basis points to 4.57 percent, after falling to as low as 3.94 percent, on concern investors holding the securities may rank behind official creditors in seniority following the bailout. Italy’s 10-year yield jumped 26 basis points to 6.03 percent, the highest since January.

“We’ve seen these dominoes fall: Greece, Ireland, Portugal, now Spain is getting on the dole and the next big one to be watching is Italy,” Marc Chandler, chief currency strategist at Brown Brothers Harriman & Co. in New York, told Bloomberg Television. “And when Italy comes into pressure, I’m suggesting we have to be careful with France too.”

Nickel, copper and zinc rose at least 1.2 percent to lead gains among 10 of 24 commodities in the S&P GSCI Index, while natural gas and oil fell the most. Oil futures slid 1.7 percent to $82.70 a barrel, the lowest settlement since Oct. 6.

Goldman Sachs Group Inc. said today it expects a 29 percent return for commodities over the next 12 months. Gains for raw materials will be led by a 41 percent jump in energy and 23 percent gain in industrial metals, Goldman Sachs said.

The MSCI Emerging Markets Index rose 1.1 percent. The Hang Seng China Enterprises Index of mainland companies climbed 2.4 percent, the most in two months, after China’s exports grew last month at more than double the pace analysts estimated and crude oil imports rose to a record. Overseas shipments climbed 15.3 percent from a year earlier, exceeding all 29 estimates in a Bloomberg News survey. Benchmark gauges in South Korea, Taiwan, Thailand and Indonesia increased at least 1 percent.

India’s Sensex slipped 0.3 percent, reversing a 1.1 percent gain after S&P said the country may lose its investment-grade rating.

Have a wonderful evening everyone.

“‘I’m bored’ is a useless thing to say. I mean, you live in a great, big, vast world that you’ve seen none percent of. Even the inside of your own mind is endless, it goes on forever, inwardly, do you understand? The fact that you’re alive is amazing, so you don’t get to say ‘I’m bored.’”

—	Louis C.K.

 

Regards,

Ellora Howie

Assistant to Carolann Steinhoff

 

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

Tangents:

It’s commencement time and longform.org gathered its 11 favorite commencement speeches from the past 25 years.  The list includes talks by Jon Stewart, David Foster Wallace, Jon Huntsman Jr., and others.  This year, screenwriter Aaron Sorkin told Syracuse University students, “I wish I could tell you that there was a trick to avoiding the screw-ups, but the screw-ups, they’re a-coming for ya.”

 

GROENENDAAL

-by James Harpur

 

He sits against a trunk and bends

His knees, a lectern for his book;

Thoughts fly and land like birds around

The glade, unless he makes them still,

When, as they say, a glow appears

Above his head and he reaches for

The spirit tree that’s upside down

Its branches fanned towards the earth

Its roots in heaven, so he climbs

Till he can see – above the woods

Of Soignes – the very ends of earth,

Snail weavings of rivers, puddle lakes,

Cities like little castles; and below

A speck of life, a man – himself

His face upturned towards his gaze,

Both paralysed between two worlds

Each one unsure of where he is

Or where he wants to be just then

And waiting for the other to return.

Extract from Angels and Harvesters by James Harpur (Anvil)

And on this day in…

1965 – President Johnson authorizes commanders in Vietnam to commit U.S. ground forces to combat.
1966 – Gemini astronaut Gene Cernan attempts to become the first man to orbit the Earth untethered to a space capsule, but is unable to when he exhausts himself fitting into his rocket pack.
1967 – Israel airplanes attack the USS Liberty, a surveillance ship, in the Mediterranean, killing 34 Navy crewmen.
1968 – James Earl Ray, the alleged assassin of Martin Luther King, Jr., is captured at the London Airport.

photos of the day June 8, 2012

A traveler man rides his horse in the River Eden prior to the Appleby Horse Fair in Appleby, Westmorland, northern England. Appleby Horse Fair has existed under the protection of a charter granted by King James II since 1685.

Scott Heppell/AP

An Indian Myna holds a grasshopper in its beak to feed chicks in a nest built inside the wall of an underpass in Greater Noida on the outskirts of New Delhi.

Parivartan Sharma/Reuters

Market Closes for June 8, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12554.20	+93.24
		+0.75%
S&P 500	1324.82	+9.83
		+0.75%
NASDAQ	2858.42	+27.40
		+0.97%
TSX	11500.62	-91.50
		-0.79%

International Markets

Market  Index	Close	Change
NIKKEI	8459.26	-180.46
		-2.09%
HANG  SENG	18502.34	-175.95
		-0.94%
SENSEX	16718.87	+69.82
		+0.42%
FTSE 100	5435.08	-12.71
		-0.23%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.809	1.815
CND.   30 Year Bond	2.368	2.371
U.S.   10 Year Bond	1.6336	1.6388
U.S.   30 Year Bond	2.7484	2.7402

Currencies

BOC Close	Today	Previous
Canadian $	1.02781	1.02781
US   $	0.97294	0.97295
Euro Rate  1 Euro=		Inverse
Canadian   $	1.28499	0.77822
US  $	1.25022	0.79986

Commodities

Gold	Close	Previous
London Gold   Fix	1593.85	1589.65
Oil	Close	Previous
WTI Crude Future	83.26	84.82
BRENT	100.53	99.95

Market Commentary:

Canada

By Steve Chambers

June 8 (Bloomberg) — Canadian stocks fell for a second day, paring a weekly gain, after plummeting oil prices overwhelmed a rally in mining stocks tied to a recovery in gold.

Financial and energy stocks contributed most to the decline in the Standard & Poor’s/TSX Composite Index, while raw- materials companies rose. Canadian Natural Resources Ltd., the third-largest energy provider, slumped 2.4 percent. Barrick Gold Corp., the world’s largest producer, added 0.9 percent.

The S&P/TSX slid 91.49 points, or 0.8 percent, to 11,500.63. The gauge fell 1.1 percent in the last two days, trimming its weekly gain to 1.2 percent.

“We’re a commodity-oriented exchange, so what happens not only in the U.S. but China affects us a fair bit,” Ian Nakamoto, research director at MacDougall MacDougall & McTier Inc. in Toronto, said in a telephone interview. The firm manages $4 billion. “You would have thought when the Chinese lowered interest rates that would have helped, but people apparently took the glass half empty approach and figured things must be worse than we thought.”

Canadian stocks slumped yesterday even after China cut its borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates.

Canadian government reports today showed a slowing domestic economy. The country recorded its first merchandise trade deficit in six months in April as exports declined and imports rose a fifth straight time. Canada’s unemployment rate was unchanged at 7.3 percent in May as job growth slowed, with 7,700 jobs added following gains of 58,200 and 82,300 in the prior two months that were the biggest back-to-back increases in three decades.

While oil erased losses during the last 20 minutes of floor trading, earlier declines still battered energy stocks. Suncor Energy Inc., the nation’s largest energy producer, dropped 1 percent to C$29.03. Canadian Natural Resources, the third- largest energy provider, slumped 2.4 percent to C$28.09.

Gold stocks gained after the metal erased an earlier decline. Barrick Gold rose 0.9 percent to C$40.13, snapping a three-day slump. Goldcorp Inc., the second-largest gold company in Canada by market value, gained 0.4 percent to C$40.26.

Rubicon Minerals Corp., which is exploring near Goldcorp’s Red Lake mine, rose 5.3 percent to C$2.98.

Financial shares in the S&P/TSX declined 1.1 percent as a group. Royal Bank of Canada fell 1.3 percent to C$50.31, after rising in the previous three sessions. Toronto-Dominion Bank, the nation’s second-largest lender, declined 1.5 percent to C$77.92.

Research In Motion Ltd. rose 1.1 percent to C$11.16, giving it a four-day rally of 11 percent. The shares plunged 24 percent in May. At the end of the month, the BlackBerry maker forecast an operating loss for the first quarter and hiring banks to advise on strategic options.

US

By Lu Wang

June 8 (Bloomberg) — U.S. stocks rallied, driving the Standard & Poor’s 500 Index to its best weekly gain since December, amid speculation European and American central banks will join China in trying to spur economic growth.

All 10 S&P 500 industry groups rose during the week as financial companies jumped the most, adding 4.7 percent.

Chesapeake Energy Corp. soared 18 percent, leading gains in commodity producers amid plans to replace almost half its board and an agreement to sell its pipeline interests. Home Depot Inc.

climbed 9.2 percent after boosting its share repurchase program.

Facebook Inc. slipped 2.2 percent for its third straight weekly loss since it went public in May.

The S&P 500 rose 3.7 percent to 1,325.66, rebounding from a 3 percent slump last week. The Dow Jones Industrial Average climbed 435.63 points, or 3.6 percent, to 12,554.20, the biggest increase since Dec. 23, after dipping below its 2011 closing level on June 1 amid a worse-than-forecast jobs report.

“The optimism comes from the belief that there is going to be some kind of coordinated activity from central banks,” Bill Greiner, who oversees $13 billion as chief investment officer at Mariner Wealth Advisors in Kansas City, Missouri, said in a phone interview. “The question in my mind is how close to the edge do the world of investors have to move before the central banks start to move in the direction that they need to.”

Investors gravitated toward stocks during the week after the S&P 500 retreated 9.9 percent from an April high, pushing its valuation to 12.9 times earnings from the last 12 months.

That’s 21 percent below the average of 16.4 since 1954, according to data compiled by Bloomberg.

Optimism that policy makers would take steps to stimulate economic growth gave benchmark indexes their biggest gains of the year on June 6, with the S&P 500 and Dow advancing at least 2.3 percent. Equities rallied the next day as China cut interest rates for the first time since 2008 and European Central Bank President Mario Draghi said officials stand ready to act. The rally fizzled after Federal Reserve Chairman Ben S. Bernanke said the central bank will assess the economy before deciding if more stimulus is needed.

Economic reports sent out mixed signals, with a measure of service industries showing a surprise increase while factory orders unexpectedly dropped. Optimism grew that Europe was making progress on its debt crisis. Finance officials will hold discussions this weekend on a potential bailout of Spain as the nation is poised to become the fourth of the 17 euro-area countries to require emergency assistance.

“The overriding factor that’s driving the market is really Europe,” Greg Woodard, a portfolio strategist at Manning & Napier in Fairport, New York, which manages about $40 billion, said in a phone interview. “Equities overall are very attractively priced. But over the past several years, equities have not been trading on valuations, they have not been trading on underlying fundamentals. When we get positive news out of Europe, we get a risk-on type of environment. And when we get negative news, it’s risk off.”

Greiner of Mariner Wealth said his firm began selling stocks two months ago and he’s not ready to put the cash back to work.

“I don’t think we’re out of the woods,” he said. “We have some further volatility and potential downside movement in front of us. The probability of the U.S. slipping into some sort of economic contraction in 2013 is building. With that in mind, valuations don’t look particularly cheap, to be frank.”

The Morgan Stanley Cyclical Index of companies most-tied to the economy jumped 4.4 percent for the week, the biggest advance since Dec. 2. A gauge of homebuilders in S&P indexes rallied 4.6 percent, as PulteGroup Inc. climbed 8.7 percent to $8.98 and Lennar Corp. advanced 6.1 percent to $26.55.

The KBW Bank Index added 4 percent, the most since March 16. American International Group Inc. surged 12 percent to $30.48, leading gains among financials. Citigroup Inc. climbed 9.4 percent to $27.77, while Bank of America Corp. advanced 7.7 percent to $7.56.

Chesapeake surged 18 percent to $18.36. The energy explorer, battered by collapsing natural-gas prices and growing investor mistrust, said it will replace almost half its board under pressure from billionaire investor Carl Icahn. The company also agreed to sell its pipeline interests to Global Infrastructure Partners for more than $4 billion.

Home Depot rose 9.2 percent, the most in the Dow, to $52.35. The largest U.S. home-improvement retailer boosted its stock repurchase plan by $500 million for fiscal 2012, bringing the total to $4 billion.

Iron Mountain Inc. soared 19 percent, the most in the S&P 500, to $32.72. The document-storage company approved a plan to convert to a real estate investment trust following pressure from activist investor Elliott Management Corp.

Facebook slipped 2.2 percent to $27.10, extending its loss from its debut to 29 percent. No large U.S. company is attracting more attention from short sellers than the world’s biggest social-networking amid bets the stock will keep falling.

Short interest on Facebook reached 6.8 percent of shares outstanding, according to data compiled by Bloomberg and Data Explorers Ltd., a New York-based research firm. None of the S&P 500 companies with at least $50 billion in market capitalization has short interest higher than 3.1 percent, the data show.

Alpha Natural Resources Inc. had the biggest decline in the S&P 500, sinking 11 percent to $9.32. The second-biggest U.S. coal producer is shutting mines in Kentucky and closing some offices as cheap natural gas and clean-air rules slash demand from electricity generators.

Halliburton Co. slipped 6.7 percent to $27.96. The world’s largest provider of hydraulic-fracturing services said North American profit margins this quarter will shrink more than previously forecast because of higher material costs.

 

Have a wonderful weekend everyone.

Be magnificent!

 

The person who can wear the mantle of a Master

is one who is devoted to the cause of non-violence and non-possession

who is driven by the quest for truth and the right perspective,

who is capable of solving his own emotional and mental problems and

who can show others the way to overcome their emotional and mental problems.

Acharya Mahaprajna, 1920-2010

As ever,

Carolann

 

All that we see or seem is but a dream within a dream.

-Edgar Allen Poe, 1809-1849

Carolann Steinhoff, B.Sc., CFP, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

 

Dear Friends,

Tangents:

Sir David Tang, entrepreneur and founder of ICorrect, offers advice on questions about property, interiors – and modern manners for globetrotters.  This was a question and answer in the Financial Times this past weekend to which we can all relate:

A friend of mine was visiting when her mobile rang in the middle of our conversation.  She answered it and I could hear some of the words from the caller while I was trying to pretend it didn’t matter.  When the call ended, instead of giving me an indication of the importance of the call, she passed on to another subject and soon made for the exit.  What do you think?

It is indeed a sad state of affairs when the telephone/Blackberry/iPhone have now invaded our daily lives so unforgivingly.  There is no airport nor aircraft, no train station nor train, no ferry terminal nor ferry, no park nor street nor alleyway at which zombie-like characters are not listening to, or speaking on, or reading their cyber devices.  Even when I am sitting at a beautiful Parisian café on a beautiful spring morning.   I will see, mon dieu, Parisians doing the same!  The most interesting consequence from this rather depressing observation is that I can now pick out the left-handers without difficulty.  It’s the kind of empiricism that would have pleased even Locke.  I can also imagine Descartes arguing for “Emailo Ergo Sum”!

It is indeed irritating when someone with whom we are having a conversation suddenly switches to an incoming call.  They might say sorry because it’s their sick mother or lie about sympathetic stories.  But they are seldom contrite.  Otherwise, they would not have taken the call in the first place.  Even worse is when you are having lunch or dinner with those who surreptitiously divert their gaze on to their lap, or blatantly carry on reading their messages.

To deal with this new antisocial behavior, I simply walk away without explanation.  This usually rattles them as they half try to continue their conversation, and half try to apologise with some frantic gesticulation.  That’s what you should have done to your friend – in mid-flow of her call, you turn your back on her in silence and disappear into the sunset.

By far the worst behavior is when the phone rings in the middle of an artistic performance.  I saw a marvelous clip on YouTube when, at precisely the critical pause in a concerto, that familiar sugary tune of a mobile rang out in the audience.  The solo violinist was visibly flabbergasted.  But without a moment’s hesitation, he suddenly played on his violin an echo of the appalling tune.  This was a masterstroke of sheer contempt.

And on this day in…

1914 – The first vessel passes through the Panama Canal.
1863 – Mexico City is captured by French troops.
1654 – Louis XIV is crowned king of France.
1942 – Battle of Midway ends

1848 – Paul Gauguin was born

1958 – Prince R. Nelson was born

 

I never meant 2 cause U any sorrow

I never meant 2  cause U any pain…

I only wanted 2 see U laughing in the purple rain… – Prince

We all live with the objective of being happy; our lives are all different and yet the same. -Ann Frank

photos of the day June 7, 2012

A rainbow appears over the New York City skyline as storms roll through Hoboken, N.J.

CX Matiash/AP

A horse enters the track at sunrise for training at Belmont Park, in Elmont, N.Y. Belmont Park hosts the Belmont Stakes on Saturday.

Mark Lennihan/AP

Market Closes for June 7, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12460.96	+46.17
		+0.37%
S&P 500	1314.99	-0.14
		-0.01%
NASDAQ	2831.02	-13.70
		-0.48%
TSX	11592.12	-41.28
		-0.35%

International Markets

Market  Index	Close	Change
NIKKEI	8639.72	+106.19
		+1.24%
HANG  SENG	18678.29	+157.76
		+0.85%
SENSEX	16649.05	+194.75
		+1.18%
FTSE 100	5447.79	+63.68
		+1.18%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.815	1.807
CND.   30 Year Bond	2.371	2.350
U.S.   10 Year Bond	1.6388	1.6592
U.S.   30 Year Bond	2.7402	2.7380

Currencies

BOC Close	Today	Previous
Canadian $	1.02781	1.02756
US   $	0.97295	0.97318
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29155	0.77427
US  $	1.25661	0.79580

Commodities

Gold	Close	Previous
London Gold   Fix	1589.65	1620.75
Oil	Close	Previous
WTI Crude Future	84.82	85.02
BRENT	99.95	101.56

Market Commentary:

Canada

By Steve Chambers

June 7 (Bloomberg) — Canadian stocks fell as gold and oil prices dragged down commodity shares after Federal Reserve Chairman Ben S. Bernanke left unspecified the steps the U.S. central bank could take to bolster the economy.

Raw-materials and energy companies fell the most in the Standard & Poor’s/TSX Composite Index, while financial stocks advanced as China said it would cut interest rates to boost the economy. Barrick Gold Corp. lost 4.1 percent, as gold futures plunged the most in two months, and energy provider Canadian Natural Resources Ltd. dropped 2.2 percent with oil prices falling for the first time in four days.

The S&P/TSX declined 41.28 points, or 0.4 percent, to 11,592.12, reversing an earlier gain of as much as 0.8 percent.

The benchmark index rose 2.6 percent over the previous two days.

“The rest of the market can’t seem to get the job done when precious metals are in the tank,” David Baskin, founder and chief executive officer of Baskin Financial Services in Toronto, said in a telephone interview. The firm manages C$450 million ($439.5 million), and does not own metals stocks.

Bernanke’s comments before a congressional committee initially weighed on gold stocks and then oil reversed its gain.

He warned lawmakers the U.S. economy is at risk from Europe’s debt crisis and fiscal tightening, while not detailing steps the bank might take to stoke growth. Equities rose earlier as China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates.

Canadian Natural Resources, the nation’s third-largest energy provider, fell 2.2 percent to C$28.77. Natural gas provider Encana Corp. fell 2.1 percent to C$20.93 after two days of gains. Suncor Energy Inc., Canada’s largest energy provider, rose 0.1 percent to C$29.32.

Barrick Gold fell 4.1 percent to C$39.79, giving it a two- day decline of 9 percent. Yesterday, the company announced it was replacing Chief Executive Officer Aaron Regent and expressed disappointment with its share price, which has fallen 5.4 percent since he got the job on Jan. 16, 2009, as gold prices soared.

Kinross Gold Corp. fell 6.1 percent to C$8.30. Goldcorp Inc., the second-largest gold company in Canada by market value, dropped 2.9 percent to C$40.12.

Financial stocks in the index rose 0.5 percent. Royal Bank of Canada, the nation’s largest lender, gained 0.7 percent to C$50.99. Toronto-Dominion Bank, the second-largest lender, rose 1 percent to C$79.08.

US

By Rita Nazareth

June 7 (Bloomberg) — Most U.S. stocks declined as a late- day slump in financial and technology shares erased an advance driven by China’s first interest-rate cut since 2008.

The Standard & Poor’s 500 Index began paring a rally in the morning as Federal Reserve Chairman Ben S. Bernanke said the central bank will assess the economy before deciding if more stimulus is needed. The measure erased gains in the final hour of trading after a report that Greece’s upcoming election could be derailed. Bank of America Corp. and Hewlett-Packard Co. dropped at least 1.3 percent. Newmont Mining Corp. slumped 2 percent as gold tumbled amid reduced bets on Fed action.

About seven stocks retreated for every five rising on U.S. exchanges at 4 p.m. New York time. More than 7.2 billion shares changed hands, or 6.3 percent above the three-month average. The S&P 500 declined less than 0.1 percent to 1,314.99, after rallying as much as 1.1 percent earlier today. The Dow Jones Industrial Average advanced 46.17 points, or 0.4 percent, at 12,460.96, after gaining as much as 140.47 points.

“It’s disappointing that the markets were not able to sustain the momentum established by the Chinese action,” said Peter Jankovskis, who helps manage about $2.8 billion at Oakbrook Investments in Lisle, Illinois. “Bernanke’s comments weren’t indicative of a Fed that will take aggressive action in the near future. There’s also concern about the upcoming Greek election. We’ll have to wait and see how all that plays out.”

Earlier gains in equities were driven by optimism that the Chinese rate cut could prompt global policy action. Stocks pared gains as Bernanke said further rounds of stimulus could boost the economy, yet may have “diminishing returns.”

“Sometimes investors look for their Christmas gifts in June,” said Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland. “China’s action helps to calm some of the fears. Yet Bernanke is throwing some cold water on expectations for QE3,” or a third round of asset purchases to stimulate growth. “We’d need to see a lot more deterioration in the economy before that happens.”

The S&P 500 reversed gains as the Associated Press reported that a municipal strike threatens to derail a June 17 Greek election that could determine the nation’s future in the euro.

Concern about a worsening of Europe’s debt crisis and a global slowdown took the S&P 500 down as much as 9.9 percent from this year’s peak in April. The index started the week trading at 12.9 times reported earnings, according to data compiled by Bloomberg, the cheapest valuation in six months. A three day rally through yesterday erased the loss driven by a disappointing jobs report on June 1.

Technology and financial shares, the biggest groups in the S&P 500, retreated. Bank of America slumped 2.9 percent, the most in the Dow, to $7.42. Hewlett-Packard, the largest personal-computer maker, dropped 1.3 percent to $22.06. Newmont Mining lost 2 percent to $50.69.

Best Buy Co. fell 1 percent to $19.70. Founder and Chairman Richard Schulze resigned from the board sooner than planned and will explore options for his 20.1 percent ownership stake in the electronics retailer.

Facebook Inc. dropped 1.9 percent to $26.31, after rallying 3.6 percent yesterday. Earlier this week, the largest social- networking company fell to the lowest price since its initial public offering last month.

Nasdaq OMX Group Inc.’s backlog of IPO’s hasn’t suffered as a result of its mishandling of Facebook’s debut, Chief Executive Officer Robert Greifeld said. Nasdaq OMX’s computer systems used to establish the opening price for Facebook were overwhelmed on May 18 by order cancellations and updates for the IPO.

“Our IPO backlog is stable,” he said today during a Bloomberg Television interview. “Since May 18, nothing has changed. We’ve actually added a few companies.”

Pall Corp. retreated 4.3 percent to $52.29. The maker of filtration and separation products posted third-quarter earnings that lagged behind analysts’ estimates.

Lululemon Athletica Inc. dropped 8.8 percent to $63.84. The Vancouver-based yoga-wear retailer projected full-year earnings and sales that trailed analysts’ estimates.

Navistar International Corp. tumbled 14 percent to $24.11.

The company reported a surprise loss, lowered its forecast for a second time this year and reassigned top managers as it works to develop an engine that meets 2010 emission standards.

Industrial shares in the S&P 500 gained. United Technologies Corp., a jet engine maker, advanced 2.4 percent to $75.40. Boeing Co., the world’s largest aerospace company, rallied 1.4 percent to $69.95.

Baidu Inc., which handles about 80 percent of China’s Internet search queries, jumped 2.8 percent to $122.46. Apple Inc. plans to add the company’s search engine on iPhones in China, part of a push to broaden its services and user base in the most-populous nation, according to two people with knowledge of the matter.

Regions Financial Corp. climbed 2.4 percent to $6.09. The Birmingham, Alabama-based bank was raised to outperform at Macquarie Group Ltd. The 12-month share-price estimate is $7.

CACI International Inc. surged 10 percent to $49.50 after the government technology contractor forecast 2013 profit that was higher than analysts’ estimates.

A five-month low reached last week by the S&P 500 produced a pattern similar to one at last year’s low, indicating equities may be poised to rebound. While the benchmark measure sank June 1 to the lowest level since January, its 14-day relative strength index, which measures the degree to which gains and losses outpace each other, reached 28.5, staying above a low of 23.2 reached on May 18, according to data compiled by Bloomberg.

Last year, the S&P 500 dipped on Oct. 3 to a level not seen since September 2010, with the RSI holding above its August low.

The index then surged by 29 percent over the next six months.

“This divergence highlights that sellers are losing momentum and control,” Joshua Dollinger, chief quantitative and technical strategist at BTIG LLC in New York, wrote in an e- mail. The “signals certainly make a compelling case to be long” over the next six weeks, he said.

Have a wonderful evening everyone.

Be magnificent!

 

Your way is very good for you, but not for me.

My way is good for me, but not for you.

-Swami Vivekananda, 1863-1902

As ever,

Carolann

 

Ninety per cent of all human wisdom is the ability

to mind your own business.

-Robert Heinlein, 1907-1988

Carolann Steinhoff, B.Sc., CFP, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

The Queen’s Jubilee concert last night at Buckingham Palace was so fantastic! If you didn’t get a chance to see it, check it out on CBC.ca or youtube.  CBC did the full coverage and it really was incredible.  The most enchanting moment was when the song was performed that Andrew Lloyd Webber and Gary Barlow wrote especially for the Queen’s Jubilee by a stage full of singers from many different countries in the Commonwealth.   The lyrics in the song, SING, are so beautiful and a fitting tribute to this remarkable woman; the CD was released worldwide on May 28^th from Decca.

And on this day in…

1799 – Alexander Pushkin was born

1944 – D-Day – Operation Overlord lands 400,000 Allied American, British, and Canadian troops on the beaches of Normandy in German-occupied France
1985  – The body of Nazi war criminal Dr. Josef Mengele is located and exhumed near Sao Paolo, Brazil
1934 – President Franklin Roosevelt signs the Securities Exchange Act, establishing the SEC
1949 – George Orwell’s 1984 is published
You grow up the day you have your first real laugh at yourself. – Ethel Barrymore

photos of the day June 6, 2012

A bird comes into land atop one of the domes of the landmark Taj Mahal as Venus (top l.) begins to pass in front of the sun, as visible from Agra, India.

Kevin Frayer/AP

Two Silver-studded Blue butterflies sit on a blade of grass in Lofer, Austrian province of Salzburg, Austria.

Kerstin Joensson/AP

The Nave of York Minster cathedral in northern England is covered in 1,500 square meters of real grass as the church is prepared for the York Minster Rose Dinner to be held later this week.

John Giles/AP

Market Closes for June 6, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12414.79	+286.84
		+2.37%
S&P 500	1315.13	+29.63
		+2.30%
NASDAQ	2844.72	+66.61
		+2.40%
TSX	11633.40	+125.69
		+1.09%

International Markets

Market  Index	Close	Change
NIKKEI	8533.53	+151.53
		+1.81%
HANG  SENG	18520.53	+261.50
		+1.43%
SENSEX	16454.30	+433.66
		+2.71%
FTSE 100	5384.11	+123.92
		+2.36%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.807	1.739
CND.   30 Year Bond	2.350	2.283
U.S.   10 Year Bond	1.6592	1.5727
U.S.   30 Year Bond	2.7380	2.6405

Currencies

BOC Close	Today	Previous
Canadian $	1.02756	1.03787
US   $	0.97318	0.96352
Euro Rate  1 Euro=		Inverse
Canadian   $	1.2951	0.77369
US  $	1.25784	0.79501

Commodities

Gold	Close	Previous
London Gold   Fix	1620.75	1617.93
Oil	Close	Previous
WTI Crude Future	85.02	84.29
BRENT	101.56	99.68

Market Commentary:

Canada

By Steve Chambers

June 6 (Bloomberg) — Canadian stocks rallied, giving the benchmark index its biggest two-day gain since January, as commodities rose amid speculation global policy makers will take steps to spur economic growth.

Suncor Energy Inc. and Canadian Natural Resources Ltd. gained at least 1.1 percent, helping drive energy shares up 2.1 percent in the Standard & Poor’s/TSX Composite Index. Oil rose for a third straight day, copper snapped its longest losing streak since February and gold advanced. Barrick Gold Corp. dropped 5.1 percent after the world’s largest producer of the metal replaced Chief Executive Officer Aaron Regent after it was “disappointed” with its share price.

The S&P/TSX rose 125.69 points, or 1.1 percent, to 11,633.40 at 4 p.m. in Toronto. The benchmark index rose 2.6 percent over two days, paring its 2012 losses to 2.7 percent.

“Canada got very oversold,” said David Cockfield, a managing director at Northland Wealth Management in Toronto. The firm has C$200 million ($194 million) under management. “There was an ‘I want out of equities’ thing going on. People were treating equities as a commodity rather than as individual stocks, and earnings were coming through just fine.”

At the start of trading today, the benchmark index was at a price/earnings ratio of 13.19, its lowest level since May 2009.

The P/E ratio rose to 13.4 at the end of the day.

Stocks rallied as European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s growth outlook worsens. Federal Reserve Bank of Atlanta President Dennis Lockhart said extending Operation Twist, the U.S. central bank’s stimulus program that lengthens maturities of debt on its balance sheet, is an “option on the table.” The Fed said the U.S. economy maintained a moderate pace of growth as factory output rose and the real-estate market improved.

Suncor Energy, Canada’s largest energy provider, jumped 3.5 percent to C$29.30. Canadian Natural Resources, the nation’s third largest energy provider, added 1.1 percent to C$29.41.

Teck Resources Ltd., the country’s biggest base-metals producer, rose 2.9 percent to C$32.31. Potash Corp. of Saskatchewan Inc., the largest fertilizer company, advanced 1.4 percent to C$40.22.

Gabriel Resources Ltd., a gold-exploration company working in Europe, soared 11 percent to C$2.42. A government official in Romania said the country planned to make a decision by the end of the year on whether Gabriel’s gold-mine project could go forward. The Economy Ministry denied a June 1 report by news service Mediafax that quoted Economy Minister Daniel Chitoiu as saying he is convinced the mine project will start this year.

Barrick Gold, which fell 13 percent in 2011, dropped 5.1 percent to C$41.47. The company said Chief Financial Officer Jamie Sokalsky will replace Regent as CEO, effective immediately. Since Regent became chief executive on Jan. 16, 2009, the price of gold traded in London has soared 92 percent while Barrick shares have fallen 1.4 percent.

US

By Rita Nazareth

June 6 (Bloomberg) — U.S. stocks rallied, giving benchmark indexes their biggest gains in 2012, on speculation global policy makers will take steps to stimulate economic growth.

Bank of America Corp. surged 7.6 percent to pace gains among financial shares. Caterpillar Inc. and Exxon Mobil Corp. increased at least 3.3 percent. Home Depot Inc., the largest U.S. home-improvement retailer, climbed 3.4 percent after raising its stock repurchase plan by $500 million for fiscal 2012. Facebook Inc. added 3.6 percent, following a 32 percent decline since the biggest social-networking company went public.

The Standard & Poor’s 500 Index advanced 2.3 percent to 1,315.13 at 4 p.m. New York time. The Dow Jones Industrial Average increased 286.84 points, or 2.4 percent, to 12,414.79.

About 7.3 billion shares changed hands on U.S. exchanges today, or 8.3 percent above the three-month average.

“People are viewing central banks as very aware of the weakness of the global economy and looking for ways to deal with that,” said Michael Holland, chairman of New York-based Holland & Co. His firm oversees more than $4 billion. “In addition to that, we’ve had a major selloff, valuations are low and that certainly helps to lift the market on a day like today.”

The S&P 500 rose 2.9 percent in three days, wiping out the loss driven by a disappointing jobs report on June 1. Earlier this week, the index traded at 12.9 times its companies’ reported earnings, according to data compiled by Bloomberg. That was the cheapest valuation in six months, the data showed.

Concern about Europe’s debt crisis and a global slowdown took the S&P 500 down as much as 9.9 percent from this year’s peak.

Equities rallied today as European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s outlook worsens. Federal Reserve Bank of Atlanta President Dennis Lockhart said extending Operation Twist, the program to lengthen maturities of debt on the U.S. central bank’s balance sheet, is an “option on the table.”

The U.S. economy maintained a moderate pace of growth, according to the Fed’s Beige Book survey of business conditions.

The policy-setting Federal Open Market Committee meets June 19-20 to consider whether more stimulus is needed.

“I would be surprised if the Federal Reserve isn’t already having a contingency plan if everything unravels in Europe,” said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank. His firm manages $169 billion.

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said he expects the U.S. economy to avoid another recession as long as Europe can contain its debt crisis. There won’t be a recession “unless events in Europe develop in some way that spills over here big-time,” Buffett said yesterday at the Economic Club of Washington, D.C.

All 10 groups in the S&P 500 rose today as energy, financial and industrial shares had the biggest gains. The Dow Jones Transportation Average climbed 3 percent. Bank of America increased 7.6 percent, the most in the Dow, to $7.64.

Caterpillar, the largest maker of construction equipment, added 3.6 percent to $86.66. Exxon Mobil jumped 3.3 percent to $80.18.

Home Depot rose 3.4 percent to $50.60. The timing of its share repurchases will not have a material impact on the diluted earnings per share in that period, the retailer said.

Monsanto Co. added 3 percent to $79.20. The largest seed company will repurchase as much as $1 billion of shares as rising profit boosts the company’s cash hoard to a record.

Facebook rallied 3.6 percent to $26.81. No large U.S. company is attracting more attention from short sellers than Facebook amid bets it will keep falling after losing $29 billion since its initial public offering.

Short interest on the Menlo Park, California-based company reached 5.9 percent of shares outstanding, according to data compiled by Bloomberg and Data Explorers Ltd., a New York-based research firm. None of the S&P 500 companies with at least $50 billion in market capitalization has short interest higher than 3 percent, the data show. Facebook, which has a market value of about $61.6 billion, isn’t in the S&P 500.

“Facebook is one of those companies whose future potential is unknown and unknowable,” said Robert Stimpson, a money manager at Akron, Ohio-based Oak Associates Ltd., which oversees about $900 million and doesn’t own Facebook. “The stock is expensive. The short interest might also reflect a bet that there is more bad news to come and Facebook will be punished.”

Nasdaq OMX Group Inc.’s board approved a plan to pay brokers whose orders were mishandled in Facebook Inc.’s initial public offering, earmarking about $40 million to cover losses.

Chesapeake Energy Corp. jumped 7.1 percent, the most since Aug. 11, to $18.21. The company is in advanced talks to sell pipelines to Global Infrastructure Partners for more than $4 billion, said two people with knowledge of the matter.

A measure of homebuilders in S&P indexes gained 3.7 percent. Hovnanian Enterprises Inc. surged 18 percent, the most since Aug. 15, to $2.01. The largest homebuilder in New Jersey reported an unexpected profit for its fiscal second quarter as orders jumped 52 percent amid rising U.S. demand for new houses.

Iron Mountain Inc. surged 14 percent, the biggest gain in the S&P 500, to $32.32. The document-storage company approved a plan to convert to a real-estate investment trust and increased its quarterly dividend by 8 percent.

Lee Enterprises Inc. soared 16 percent, the biggest gain since Jan. 24, to $1.33. Buffett’s Berkshire Hathaway disclosed owning a stake in the owner of newspapers in the U.S. Midwest and West Coast.

Ancestry.com Inc. gained 11 percent to $25.06. The family- history research website is weighing a sale and working with Frank Quattrone’s Qatalyst Partners LLC to find buyers, according to a person with knowledge of the situation.

Halliburton Co. slumped 3.5 percent to $28.10. The world’s largest provider of hydraulic-fracturing services said North American margins will be 500 to 550 basis points lower this quarter than last because of higher material costs.

Tempur-Pedic International Inc. plunged 49 percent, the most ever, to $22.39. The luxury mattress maker cut its full- year profit and revenue forecasts amid lower-than-expected second-quarter sales in North America.

The selloff that erased $1.78 trillion from U.S. equity values has pushed the cost of options to the highest levels of 2012, prompting hedge funds to add to short sales at the fastest rate since October. The Chicago Board Options Exchange Volatility Index surpassed 26 last week, a level not seen since December.

The gain left the gauge near its price just before the S&P 500 slumped 12 percent in August and September 2011, data compiled by Bloomberg show. As the VIX has risen, an International Strategy & Investment Group measure of hedge fund bullishness has retreated by 7.4 percent.

While the cost of hedges and the amount of short selling are increasing, they may have further to go before bearishness is exhausted amid Europe’s credit crisis, according to Wayne Lin of Legg Mason Inc. The VIX would have to gain 45 percent to reach its average price in August and September. The ISI gauge bottomed at 42 last year compared with its level of 45.3 now.

“The concerns about Europe combined with questions about the robustness of global growth are filtering into markets,”

Lin, who helps oversee $639 billion as a money manager at Baltimore-based Legg Mason, said yesterday in a phone interview.

“These risks make people back out of equities, cause the hedge funds to go short and push the VIX up.”

Have a wonderful evening everyone.

Be magnificent!

 

Truth resides in the heart of every man.

And it is there that he must seek it, in order to be guided by it so that,

at the least, it will appear to him.

But we do not have the right to force others to see the Truth in our way.

-Mahatma Gandhi, 1869-1948

As ever,

Carolann

 

But words once spoke

can never be recalled.

-Wentworth Dillon, 1630-1685

Carolann Steinhoff, B.Sc., CFP, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

Learning to look

“Today’s signature move is the head swivel,” writes Holly Finn in The Wall Street Journal.  “It is the age of look-then-look-away.  Our average attention span halved in a decade, from 12 to five minutes, according to a study commissioned by Lloyd’s TSB Insurance.  (And that was in 2008).  We miss almost everything: we text while we walk.  What makes a person stand out now is the ability to look and keep looking.  But as global completion makes us manic about technology…we rush past the humanities, the very fields that teach us how and what to notice… We need an intervention – and not the psychotherapeutic kind.  A ‘museum intervention’ is now mandatory at Yale’s School of Medicine for all first-year medical students.  Called Enhancing Observational Skills, the program asks students to look at and then describe paintings – not Pollocks and Picassos but Victorian pieces, with whole people in them.  The aim?  To improve diagnostic knack.”  -from The Globe & Mail, June 5^th, 2012.

And on this day in…

1968 – Sirhan Sirhan shoots democratic presidential candidate Robert F. Kennedy after his pivotal victory in the California Primary
1967  – The Six Day War between Israel, Egypt, Syria, and Jordan begins
2004 – Ronald Reagan dies at age 93. Reagan was the 40th U.S. President
1933 – FDR Takes the United States off the Gold Standard

photos of the day June 5, 2012

Revelers on the Mall in London watch Queen Elizabeth II appear on the Buckingham Palace balcony as part of the four-day Diamond Jubilee celebrations to mark the 60th anniversary of her accession to the throne.

Sang Tan/AP

Children use cardboard eclipse glasses as they prepare to watch the transit of Venus in Allahabad, India. Stargazers around the world are setting up special telescopes and passing out eclipse glasses to view the once-in-a-lifetime celestial cameo of Venus passing in front of the sun.

Rajesh Kumar Singh/AP

Market Closes for June 5, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12127.95	+26.49
		+0.22%
S&P 500	1285.50	+7.32
		+0.57%
NASDAQ	2778.11	+18.10
		+0.66%
TSX	11507.56	+171.79
		+1.52%

International Markets

Market  Index	Close	Change
NIKKEI	8382.00	+86.37
		+1.04%
HANG  SENG	18259.03	+73.44
		+0.40%
SENSEX	16020.64	+32.24
		+0.20%
FTSE 100	5260.19	CLOSED FOR JUBILEE

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.739	1.679
CND.   30 Year Bond	2.283	2.229
U.S.   10 Year Bond	1.5727	1.5239
U.S.   30 Year Bond	2.6405	2.5652

Currencies

BOC Close	Today	Previous
Canadian $	1.03787	1.03968
US   $	0.96352	0.96184
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29255	0.77366
US  $	1.24539	0.80296

Commodities

Gold	Close	Previous
London Gold   Fix	1617.93	1619.68
Oil	Close	Previous
WTI Crude Future	84.29	83.98
BRENT	99.68	99.97

Market Commentary:

Canada

By Steve Chambers

June 5 (Bloomberg) — Canadian stocks posted their biggest advance in two weeks as rising natural gas futures spurred a rally among energy companies.

Natural gas producers Crew Energy Inc. and Encana Corp. rallied more than 5.5 percent, pushing the Standard & Poor’s/TSX Energy Index up 1.7 percent. Westport Innovations Inc. surged 19 percent after announcing an agreement with Caterpillar Inc. to develop fuel systems for off-road vehicles.

The S&P/TSX Composite Index rose 155.57 points, or 1.4 percent, to 11,491.34 at 2:02 p.m. Toronto time. The benchmark index was headed for its fourth-best day of the year.

“May was an absolute disaster, and we needed to stabilize that,” Greg Taylor, a portfolio manager at Aurion Capital in Toronto, said in a telephone interview. The firm manages C$5 billion. “It feels like we’re getting closer. There is the potential for more people to come off the sidelines.”

The Bank of Canada kept its main interest rate unchanged for a 14th time. Canada’s growth prospects remain “largely consistent with expectations” while the global outlook “has weakened in recent weeks,” the Ottawa-based central bank said today. The unchanged rate of 1 percent was forecast by all 27 economists surveyed by Bloomberg News.

Stocks also rose as a U.S. government report showed better- than-expected growth for the service industry. Finance ministers and central bank governors from the world’s leading economies agreed to coordinate their response to Europe’s fiscal crisis on a conference call that dealt with Spain and Greece.

Natural gas futures rose for a second day as hotter-than- normal weather forecasts raised expectations of greater demand for the fuel at power plants. Encana, the natural-gas producer, jumped 5.5 percent to C$20.76. Crew Energy rallied 13 percent to C$6.15. Suncor Energy Inc., Canada’s largest energy provider, added 1.4 percent to C$28.10.

Westport Innovations, a developer of natural-gas engines, jumped 19 percent to C$27.60. Cooperation with Peoria, Illinois- based Caterpillar will initially focus on development of natural-gas engines used in mining trucks and locomotives and the possible use of Westport’s High Pressure Direct Injection technology, Westport said today in a statement.

Financial stocks rose for the first time in three days.

Royal Bank of Canada advanced 1.4 percent to C$50.25. Toronto- Dominion climbed 1.8 percent to C$77.85.

Goldcorp Inc., the second-largest producer of the metal, gained 1.2 percent to C$41.66, as gold futures advanced for the second time in three sessions. Barrick Gold Corp., the world’s largest producer of the metal, slipped 0.3 percent to C$43.64.

Potash Corp. of Saskatchewan Inc., the biggest fertilizer company, rose 1.9 percent to C$39.62.

US

By Rita Nazareth

June 5 (Bloomberg) — The Standard & Poor’s 500 Index rose, amid the cheapest valuation in six months, after an unexpected increase in a measure of service industries and as a report said Europe’s bailout fund was preparing a credit line for Spain.

Financial, commodity and technology shares had the biggest gains in the S&P 500 among 10 groups. JPMorgan Chase & Co. and Hewlett-Packard Co. climbed at least 2.9 percent. A gauge of homebuilders in S&P indexes rallied 4 percent as Lennar Corp. and PulteGroup Inc. surged more than 5.9 percent. Facebook Inc. retreated 3.8 percent, extending its decline since the company’s initial public offering last month to 32 percent.

The S&P 500 rose 0.6 percent to 1,285.50 at 4 p.m. New York time. The Dow Jones Industrial Average added 26.49 points, or 0.2 percent, to 12,127.95. It snapped a four-day drop. The Russell 2000 Index of small companies gained 1.2 percent to 746.09. About 6.1 billion shares changed hands on U.S. exchanges today, or 9.3 percent below the three-month average.

“I’d be a buyer of stocks,” John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York, said in a telephone interview. His firm oversees $205 billion. “The U.S. economy is doing OK. Obviously, there are lots of things that could go wrong. We’re going to have to see more agreements in Europe. Yet valuation is attractive, the market is cheap.”

The S&P 500 started the day trading at 12.9 times its companies’ reported earnings, the lowest valuation since November, according to data compiled by Bloomberg. Yesterday, the index briefly extended a drop from its April peak to more than 10 percent amid disappointing economic data.

Equities reversed early losses today as the Institute for Supply Management’s index of non-manufacturing businesses, which covers about 90 percent of the economy, unexpectedly rose to 53.7 last month from April’s 53.5. The median forecast of 75 economists surveyed by Bloomberg News projected 53.4. Finance ministers and central bank governors from the world’s leading economies agreed to coordinate their response to Europe’s crisis on a conference call that dealt with Spain and Greece.

Spain called for outside support for the first time to battle the financial crisis as Budget Minister Cristobal Montoro said European institutions should help shore up the nation’s lenders. The country may receive a precautionary credit line from the European Financial Stability Facility, Germany’s Die Welt newspaper reported in a preview of a story that will run tomorrow, citing unidentified people familiar with talks about the possible option.

“We’re going to continue to see a bipolar financial market until the European situation gets sorted out,” said Chad Morganlander, a Florham Park, New Jersey-based money manager at Stifel Nicolaus & Co., which oversees $127 billion of assets.

“The U.S. economy is growing at a glacial pace. This growth rate could sustain market valuations.”

Eight out of 10 groups in the S&P 500 gained. The KBW Bank Index added 1.5 percent. JPMorgan climbed 3.2 percent to $31.99.

Hewlett-Packard, the world’s largest personal-computer maker, rose 2.9 percent to $21.68. Homebuilder Lennar jumped 6.7 percent to $25.27, after slumping 13 percent in two days.

PulteGroup increased 6 percent to $8.16.

Prudential Financial Inc. led a rally of life insurers as investors bet the company’s agreement to handle pension obligations for General Motors Co. may signal more opportunities for the industry. Prudential, the second-largest U.S. life insurer, advanced 2.8 percent to $45.99. No. 1 MetLife Inc. climbed 2.1 percent to $28.39.

SanDisk Corp. surged 5.5 percent to $33.41. The company, which makes memory chips used in mobile devices, was rated outperform in new coverage at Pacific Crest Securities.

Facebook slid 3.8 percent to $25.87, the lowest since it went public last month at $38. A Reuters/Ipsos poll showed sagging interest in the site and a minority of users being influenced by ads and comments when making purchasing decisions.

Starbucks Corp. dropped 2.8 percent to $52.41. The world’s largest coffee-shop operator agreed to buy Bay Bread LLC for $100 million in cash, making its largest acquisition to further expand its offering of food with pastries and sandwiches.

Dollar General Corp. declined 3.6 percent to $46.76. The discount-retail chain said Buck Holdings LP, along with Chief Executive Officer Richard Dreiling and other executives, plans to sell a total of 25 million shares.

W.W. Grainger Inc. dropped 5.1 percent to $177.95. The supplier of industrial goods from tools to paper fell after an MKM Partners analyst said the growth phase of the manufacturing cycle is over.

The S&P 500 may extend its decline from its April peak to 15 percent in a “selling climax” that would deplete bears, according to StockCharts.com Inc. The index dropped 9.9 percent to 1,278.18 through yesterday from its 2012 high on April 2 as concern grew that global economic growth is slowing and Europe’s debt crisis is worsening.

While the gauge will likely be supported at 1,250, further selling may push it as low as 1,200, a level where the S&P 500 would retrace 61.8 percent its advance since October, said Arthur Hill, a technical analyst at Redmond, Washington-based StockCharts.com.

“Economic reports have been largely below expectations the last two months and the stock market is pricing in this information,” Hill wrote in a note yesterday. While the S&P 500 will probably find support at 1,250, “we could even see an overshoot because some sort of selling climax is possible before all selling is exhausted,” he said.

The S&P 500 slumped 6.3 percent in May, the most since September, amid concern Greece would exit the euro area and as data on U.S. jobs and manufacturing missed forecasts. The index on June 1 dropped below its 200-day average for the first time since December after a Labor Department report showed the economy added the fewest jobs in a year.

Have a wonderful evening everyone.

Be magnificent!

 

To go from opinion to perception,

from imagination to fact, from illusion to reality,

from something that is not there,

to something that is;

that is the way forward.

-Swami Prajnanpad, 1891-1974

 

As ever,

Carolann

 

Some things have to be believed to be seen.

-Ralph Hodgson, 1871-1962

Carolann Steinhoff, B.Sc., CFP, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

Went to a restaurant in Kitsilano on the weekend on a recommendation, and I’ll pass that recommendation along.  It is one of Vancouver’s hottest restaurants right now, so book well ahead.  We could only get  a table at 5:30 PM.  The name is La Quercia  and it is located at 3689 West 4^th.  It is run by an Italian family (La Quercia means the oak in Italian).  We opted for the kitchen menu of seven courses, which means you don’t know what you’re getting – the chef decides.   Anyway, worth checking out.

And on this day in…

1989 – Tiananmen Square Massacre, China

1911 – Gold is discovered in Alaska’s Indian Creek

1944 – The U-505 becomes the first enemy submarine captured by the U.S. Navy
1942 – The Battle of Midway begins
1896 – Henry Ford test-drives his “Quadricycle”
470 BC – Socrates was born.

Children today are tyrants.  They contradict their parents, gobble their food, and tyrannize their teachers. –Socrates

Love is the emblem of eternity; it confounds all notion of time; effaces all memory of a beginning, all fear of an end. – Madame de Stael, 1766-1817.

photos of the day June 4, 2012

Peter Jack holds the Olympic torch aloft at the Giant’s Causeway in county Antrim, Northern Ireland. The Olympic Torch is continuing its relay journey around the country, and is scheduled to arrive at the opening ceremony of the London 2012 Olympic Games.

Peter Morrison/AP

Fireworks are seen at the Wat Phra Dhammakaya temple during Vesak Day, an annual celebration of Buddha’s birth, enlightenment and death in Pathum Thani province, on the outskirts of Bangkok. This year marks the 2600th anniversary of Buddha’s enlightenment.

Sukree Sukplang/Reuters

Market Closes for June 4, 2012:

North American Markets

Market  Index	Close	Change
Dow  Jones	12101.46	-17.11
		-0.14%
S&P 500	1278.18	+0.14
		+0.01%
NASDAQ	2760.01	+12.53
		+0.46%
TSX	11335.77	-2.43
		-0.22%

International Markets

Market  Index	Close	Change
NIKKEI	8295.63	-144.62
		-1.71%
HANG  SENG	18785.59	-372.75
		-0.38%
SENSEX	15988.40	+23.24
		-0.15%
FTSE 100	5260.19	CLOSED FOR JUBILEE

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	1.679	1.629
CND.   30 Year Bond	2.229	2.211
U.S.   10 Year Bond	1.5239	1.4570
U.S.   30 Year Bond	2.5652	2.5257

Currencies

BOC Close	Today	Previous
Canadian $	1.03968	1.04087
US   $	0.96184	0.96073
Euro Rate  1 Euro=		Inverse
Canadian   $	1.29889	0.76989
US  $	1.24932	0.80044

Commodities

Gold	Close	Previous
London Gold   Fix	1619.68	1623.95
Oil	Close	Previous
WTI Crude Future	83.98	83.23
BRENT	99.97	99.68

Market Commentary:

Canada

By Steve Chambers

June 4 (Bloomberg) — Canadian stocks declined as financial shares fell to a five-month low and a rebound in commodity producers failed to erase the Standard & Poor’s/TSX Composite Index’s retreat.

Royal Bank of Canada slumped 0.8 percent as financial shares in the S&P/TSX declined 0.7 percent. Research In Motion Ltd. tumbled 6.1 percent, dropping to the lowest level since 2003. Suncor Energy Inc., the nation’s largest energy provider, advanced 0.9 percent after tumbling as much as 1.5 percent.

Commodity companies rebounded as the S&P GSCI Index of raw materials rallied 0.6 percent, reversing a 1.6 percent loss that had driven the measure to a level last seen in 2010.

The S&P/TSX fell 25.43 points, or 0.2 percent, to 11,335.77. The index dropped as much as 1.3 percent intraday.

“The problem with the Canadian market is very simple: the more worries there are about a global economic slowdown, the more problems for countries like ours and Australia that are so tied to commodities,” Sebastian van Berkom, a money manager at Van Berkom & Associates in Montreal, said in a telephone interview. The firm oversees C$1.8 billion ($1.7 billion).

“When commodities go down, we go down more than elsewhere, and when they rally our market is good again.”

The S&P/TSX dropped 1.3 percent on the final day of last week after U.S. job growth slowed to a one-year low.

US

By Rita Nazareth

June 4 (Bloomberg) — U.S. stocks reversed losses as the cheapest price-to-earnings valuation for the Standard & Poor’s 500 Index in six months overshadowed a drop in factory orders.

Amazon.com Inc. and Starbucks Corp. advanced at least 3 percent to pace gains in consumer discretionary companies.

Chesapeake Energy Corp. rallied 6 percent on plans to replace almost half its board under pressure from billionaire investor Carl Icahn. Caterpillar Inc. and JPMorgan Chase & Co. retreated more than 2.6 percent. Facebook Inc. declined 3 percent to the lowest price since the stock began trading at $38 last month.

The S&P 500 rose less than 0.1 percent to 1,278.18 at 4 p.m. New York time, after dropping as much as 0.9 percent. The Dow Jones Industrial Average retreated 17.11 points, 0.1 percent, to 12,101.46. About 7.1 billion shares changed hands on U.S. exchanges, or 5 percent above the three-month average.

“It’s very easy to get depressed,” said Frances Hudson, global thematic strategist who helps manage $256.6 billion at Standard Life Investments in Edinburgh. She spoke in a phone interview. “We’ve been having mixed data signals. If your time horizon is longer, you’re in a better position to work these things out. Then you can step back from the noises.”

The S&P 500 started the session trading at 12.9 times its companies’ reported earnings, the lowest valuation since November. It dropped 9.9 percent from a four-year high on April 2 through last week amid concern Europe’s debt crisis was worsening and global economic growth was slowing.

Earlier losses in U.S. stocks today extended the S&P 500’s drop from its peak to more than 10 percent as government data showed factory orders fell 0.6 percent in April, pointing to a deceleration in manufacturing. China’s non-manufacturing industries expanded at the slowest pace in more than a year.

“It’s a function of things having gotten oversold and due for a rally at some point,” said Michael James, a managing director at Wedbush Securities Inc. in Los Angeles.

Seven out of 10 groups in the S&P 500 advanced as phone, consumer discretionary and technology shares had the biggest gains. Amazon.com, the world’s largest Internet retailer, jumped 3.1 percent to $214.57. Starbucks, the world’s largest coffee- shop chain, added 3.4 percent to $53.90.

Chesapeake Energy rallied 6 percent to $16.52. Four of the company’s eight non-executive directors will be replaced with nominees of the largest shareholders, Southeastern Asset Management Inc. and Icahn. Icahn triggered the overhaul by acquiring a 7.6 percent stake last month to rein in what he saw as Chairman and Chief Executive Officer Aubrey McClendon’s risk- taking and overspending that led to a $22 billion cash crunch and eroded the share price.

An intensifying financial crisis in Spain or elsewhere in Europe has the potential to drive U.S. stocks into a bear market, Goldman Sachs Group Inc.’s chief U.S. equity strategist said. While David Kostin’s mid-year forecast for the S&P 500 calls for a 3.7 percent gain from last week’s close to 1,325, the measure may fall to 1,125 should the situation in Europe worsen. That would give the S&P 500 a more-than 20 percent loss since its 2012 closing peak of 1,419.04.

The June 1 report from Goldman Sachs said the most likely scenario is Greek elections resulting in the nation remaining in the euro zone. Concern it will leave has helped drag the S&P 500 down since April 2, including the biggest monthly decline since September. “Financial contagion or crisis in Spain” could prompt a bear market, according to the report.

Caterpillar, the largest maker of construction and mining equipment, dropped 2.6 percent to $83.26. JPMorgan fell 2.9 percent to $31. Morgan Stanley tumbled 2.9 percent to $12.36, the lowest since 2008.

Facebook slumped 3 percent to $26.90 and went as low as $26.44, after tumbling 13 percent last week. The world’s biggest social network dropped after Sanford C. Bernstein & Co. initiated coverage with an underperform rating and a $25 share- price estimate.

“It is difficult to argue for owning the stock today,” said Carlos Kirjner, an analyst at Bernstein in New York, in a research report today.

The Bloomberg U.S. Airlines Index tumbled 7.5 percent as Delta Air Lines Inc. sank 12 percent to $10.18. The company missed a revenue projection as competitors cut fares just before the start of the peak season for U.S. vacation travel.

Regions Financial Corp. slid 5.6 percent to $5.55, the lowest since February. The Birmingham, Alabama-based bank was downgraded to hold from buy at Deutsche Bank AG on June 1. The 12-month share-price estimate is $6.50 per share.

Have a wonderful weekend everyone.

Be magnificent!

 

Find the Unique and possess the Whole.

This truly is our highest, most sublime privilege.

It is in the law of this unity that is, as long as we understand it,

our immutable force.  Its living principle is the force that resides in truth –

Truth is one.

Swami Prajnanpad, 1891-1974

As ever,

Carolann

 

Business opportunities are like buses;

there’s always another one coming.

-Richard Branson,  1950-

Carolann Steinhoff, B.Sc., CFP, CIM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7